SB1721 98TH GENERAL ASSEMBLY

LRB098 07075 EFG 37135 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1721

Introduced 2/15/2013, by Sen. John M. Sullivan

SYNOPSIS AS INTRODUCED:

40 ILCS 5/14-104.6	from Ch. 108 1/2, par. 14-104.6
40 ILCS 5/14-108.2	from Ch. 108 1/2, par. 14-108.2

Amends the Illinois Pension Code. Allows certain teachers employed by the Department of Corrections to transfer their participation and credits from the Teachers' Retirement System to the State Employees' Retirement System, upon payment of a specified contribution. Requires application within 45 days after the effective date. Provides that the transferred employees shall become noncovered employees and that the transferred service shall be deemed noncovered alternative formula service. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Sections 14-104.6 and 14-108.2 as follows:

(40 ILCS 5/14-104.6) (from Ch. 108 1/2, par. 14-104.6)

Sec. 14-104.6. Service transferred from Article 16. Service also includes the following:

(a) Any period as a teacher employed by the Department of Corrections for which credit was established under Article 16 of this Code, subject to the following conditions: (1) the credits accrued for such employment under Article 16 have been transferred to this System; and (2) the participant has contributed to this System an amount equal to (A) employee contributions at the rate in effect for noncoordinated eligible creditable service at the date of membership in this System, based upon the salary in effect during such period of service, plus (B) the employer's share of the normal cost under this System for each year that credit is being established, based on the salary in effect during such period of service, plus (C) regular interest, compounded annually, from July 1, 1987 or the date of first membership in this System, whichever is later, to the date of payment, less (D) the amount transferred on behalf of the participant under Section 16-131.6.

(b) Any period as a security employee of the Department of Human Services, as defined in Section 14-110, for which credit was established under Article 16 of this Code, subject to the following conditions: (1) the credits accrued for that employment under Article 16 have been transferred to this System; and (2) the participant has contributed to this System an amount equal to (A) employee contributions at the rate in effect for noncoordinated eligible creditable service at the date of membership in this System, based upon the salary in effect during the period of service, plus (B) the employer's share of the normal cost under this System for each year that credit is being established, based on the salary in effect during the period of service, plus (C) regular interest, compounded annually, from July 1, 2001 to the date of payment, less (D) the amount transferred on behalf of the participant under Section 16-131.6.

(c) Credit established under this Section shall be deemed noncoordinated eligible creditable service as defined in Section 14-110.

(Source: P.A. 92-14, eff. 6-28-01.)

(40 ILCS 5/14-108.2) (from Ch. 108 1/2, par. 14-108.2)

Sec. 14-108.2. Election to transfer participation from TRS.

(a) Any person employed by the Department of Corrections who is a member of the Teachers' Retirement System established under Article 16 of this Code may elect to become a member of this System on either June 1, 1987 or July 1, 1987, by notifying the board of his election in writing on or before May 31, 1987.

For such persons electing to become covered employees, participation in the Article 16 system shall terminate on June 1, 1987, and membership in this System shall begin on that date.

For such persons electing to become noncovered employees, participation in the Article 16 system shall terminate on July 1, 1987, and membership in this System shall begin on that date.

(b) Any person employed by the Department of Corrections who is a member of the Teachers' Retirement System established under Article 16 of this Code may elect to become a member of this System by notifying the board of his or her election in writing within 30 days after the effective date of this amendatory Act of the 98th General Assembly.

For such persons electing to become members, participation in the Article 16 system shall terminate on the first day of the third month following the month in which this amendatory Act rakes effect, and membership in this System shall begin on that date. Such persons shall become noncovered employees.

(Source: P.A. 84-1472.)

Section 99. Effective date. This Act takes effect upon becoming law.