Full Text of SB1380 95th General Assembly
SB1380 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1380
Introduced 2/9/2007, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-113.6 |
from Ch. 108 1/2, par. 15-113.6 |
40 ILCS 5/15-113.7 |
from Ch. 108 1/2, par. 15-113.7 |
40 ILCS 5/15-141 |
from Ch. 108 1/2, par. 15-141 |
40 ILCS 5/15-158.3 |
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40 ILCS 5/15-178 |
from Ch. 108 1/2, par. 15-178 |
40 ILCS 5/15-167.3 rep. |
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Amends the State Universities Article of the Illinois Pension Code. In provisions concerning service for employment in public schools and other public employment, replaces references to service in the military forces with references to service in a capacity essentially similar or equivalent to that of a teacher. Deletes a provision requiring the Board of Trustees of the State Universities Retirement System to have the System's actuary prepare a report showing the actual rate of participation in the self-managed plan and the extent to which employee optional retirement plan participation has reduced the State's required contributions to the System. Provides that, in addition to warrants and checks, the State Comptroller and payroll officers may use an electronic funds transfer to pay employees. Repeals a provision encouraging the System to use emerging investment managers, minority-owned businesses, female-owned businesses, and business owned by persons with disabilities in managing the system's assets. Makes other changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB1380 |
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LRB095 10799 AMC 31047 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 15-113.6, 15-113.7, 15-141, 15-158.3, and 15-178 as | 6 |
| follows:
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| (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
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| Sec. 15-113.6. Service for employment in public schools. | 9 |
| "Service for
employment in public schools": Includes
those | 10 |
| periods not exceeding the lesser of 10 years or 2/3 of the | 11 |
| service
granted under other Sections of this Article dealing | 12 |
| with service credit,
during which a person who entered the | 13 |
| system after September 1, 1974 was
employed full time by a | 14 |
| public common school, public college and public
university, or | 15 |
| by an agency or instrumentality of any of the foregoing,
of any | 16 |
| state, territory, dependency or possession of the United States | 17 |
| of
America, including the Philippine Islands, or a school
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| operated by or under
the auspices of any agency or department | 19 |
| of any other state, if the person
(1) cannot qualify for a | 20 |
| retirement pension or other benefit based upon
employer
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| contributions from another retirement system, exclusive of | 22 |
| federal social
security, based in whole or in part upon this | 23 |
| employment, and (2) pays the
lesser of (A) an amount equal to |
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| 8% of his or her annual basic compensation
on the date of | 2 |
| becoming a participating employee subsequent to this service
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| multiplied by the number of years of such service, together | 4 |
| with compound
interest from the date participation begins to | 5 |
| the date payment is received
by the board at the rate of 6% per | 6 |
| annum through August 31, 1982, and at
the effective rates after | 7 |
| that date, and (B) 50% of the actuarial value
of the increase | 8 |
| in the retirement annuity provided by this service, and
(3) | 9 |
| contributes for at least 5 years subsequent to this employment | 10 |
| to one
or more of the following systems: the State Universities | 11 |
| Retirement System,
the Teachers' Retirement System of the State | 12 |
| of Illinois, and the Public
School Teachers' Pension and | 13 |
| Retirement Fund of Chicago.
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| The service granted under this Section shall not be | 15 |
| considered in determining
whether the person has the minimum of | 16 |
| 8 years of service required to qualify
for a retirement annuity | 17 |
| at age 55 or the 5 years of service required to
qualify for a | 18 |
| retirement annuity at age 62, as provided in Section 15-135.
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| The maximum allowable service of 10 years for this governmental | 20 |
| employment
shall be reduced by the service credit which is | 21 |
| validated under paragraph
(2) of subsection (b)
(3) of Section | 22 |
| 16-127 and paragraph 1 of Section 17-133.
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| (Source: P.A. 91-357, eff. 7-29-99.)
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| (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
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| Sec. 15-113.7. Service for other public employment. |
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| "Service for
other public employment": Includes those periods | 2 |
| not exceeding the lesser of
10 years or 2/3 of the service | 3 |
| granted under other Sections of this Article
dealing with | 4 |
| service credit, during which a person was employed full time by
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| the United States government, or by the government of a state, | 6 |
| or by a
political subdivision of a state, or by an agency or | 7 |
| instrumentality of any of
the foregoing, if the person (1) | 8 |
| cannot qualify for a retirement pension or
other benefit based | 9 |
| upon employer contributions from another retirement system,
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| exclusive of federal social security, based in whole or in part | 11 |
| upon this
employment, and (2) pays the lesser of (A) an amount | 12 |
| equal to 8% of his or her
annual basic compensation on the date | 13 |
| of becoming a participating employee
subsequent to this service | 14 |
| multiplied by the number of years of such service,
together | 15 |
| with compound interest from the date participation begins to | 16 |
| the date
payment is received by the board at the rate of 6% per | 17 |
| annum through August 31,
1982, and at the effective rates after | 18 |
| that date, and (B) 50% of the actuarial
value of the increase | 19 |
| in the retirement annuity provided by this service, and
(3) | 20 |
| contributes for at least 5 years subsequent to this employment | 21 |
| to one or
more of the following systems: the State Universities | 22 |
| Retirement System, the
Teachers' Retirement System of the State | 23 |
| of Illinois, and the Public School
Teachers' Pension and | 24 |
| Retirement Fund of Chicago. If a function of a
governmental | 25 |
| unit as defined by Section 20-107 is transferred by law, in | 26 |
| whole
or in part to an employer, and an employee transfers |
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| employment from this
governmental unit to such employer within | 2 |
| 6 months of the transfer of the
function, the payment for | 3 |
| service authorized under this Section shall not
exceed the | 4 |
| amount which would have been payable for this service to the
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| retirement system covering the governmental unit from which the | 6 |
| function was
transferred.
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| The service granted under this Section shall not be | 8 |
| considered in determining
whether the person has the minimum of | 9 |
| 8 years of service required to qualify
for a retirement annuity | 10 |
| at age 55 or the 5 years of service required to
qualify for a | 11 |
| retirement annuity at age 62, as provided in Section 15-135.
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| The maximum allowable service of 10 years for this governmental | 13 |
| employment
shall be reduced by the service credit which is | 14 |
| validated under paragraph
(2) of subsection (b)
(3) of Section | 15 |
| 16-127 and paragraph one of Section 17-133.
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| Except as hereinafter provided, this Section shall not | 17 |
| apply to
persons who become participants in the system after | 18 |
| September 1, 1974.
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| (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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| (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
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| Sec. 15-141. Death benefits - Death of participant.
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| (a) The beneficiary of a participant under the traditional | 23 |
| benefit
package is entitled to a death benefit equal to the sum | 24 |
| of (1) the employee's
accumulated normal and additional
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| contributions on the date of death, (2) the employee's |
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| accumulated
survivors insurance contributions on the date of | 2 |
| death, if a survivors
insurance benefit is not payable, (3) an | 3 |
| amount equal to the employee's
final rate of earnings, but not | 4 |
| more than $5,000 , if
(i) the beneficiary, under rules of the | 5 |
| board, was dependent upon the
participant, (ii) the participant | 6 |
| was a participating employee
immediately prior to his or her | 7 |
| death, and (iii) a survivors insurance benefit
is not payable, | 8 |
| and (4) $2,500 if (i) the beneficiary was not dependent
upon | 9 |
| the participant, (ii) the participant was a participating | 10 |
| employee
immediately prior to his or her death, and (iii) a | 11 |
| survivors insurance benefit
is not payable.
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| (b) If the participant has elected to participate in the
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| portable benefit package and has completed the one-year waiting | 14 |
| period
required under subsection (e) of Section 15-134.5, the | 15 |
| death benefit
shall be equal to the employee's accumulated | 16 |
| normal and additional
contributions on the date of death plus, | 17 |
| if the employee died with 1.5 or more years of service for | 18 |
| employment as defined in Section 15-113.1,
employer | 19 |
| contributions in an amount equal to the sum of the accumulated | 20 |
| normal
and additional contributions; except that if a | 21 |
| pre-retirement survivor annuity
is payable under Section | 22 |
| 15-136.4, the death benefit payable under this
paragraph shall | 23 |
| be reduced, but to not less than zero, by the actuarial value
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| of the benefit payable to the surviving spouse. If the | 25 |
| recipient of a
pre-retirement survivor annuity dies before an | 26 |
| amount equal to all accumulated
normal and additional |
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| contributions as of the date of death have been paid out,
the | 2 |
| remaining difference shall be paid to the member's beneficiary. | 3 |
| The
primary beneficiary of the participant must be his or her | 4 |
| spouse unless the
spouse has consented to the designation of | 5 |
| another beneficiary in the manner
described in subsection (d) | 6 |
| of Section 15-136.4.
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| (c) If payments are made under any State or federal | 8 |
| workers'
compensation or occupational diseases law because of | 9 |
| the death of an
employee, the portion of the death benefit | 10 |
| payable from employer
contributions shall be reduced by the | 11 |
| total amount of the payments.
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| (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; | 13 |
| 91-877, eff. 7-6-00.)
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| (40 ILCS 5/15-158.3)
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| Sec. 15-158.3. Reports on cost reduction; effect on | 16 |
| retirement at any age
with 30 years of service.
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| (a) (Blank).
On or before November 15, 2001 and on or | 18 |
| before November 15th of each
year thereafter, the Board shall | 19 |
| have the System's actuary prepare a report
showing, on a fiscal | 20 |
| year by fiscal year basis, the actual rate of
participation in | 21 |
| the self-managed plan
authorized by Section
15-158.2, (i) by | 22 |
| employees of the System's covered higher educational
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| institutions who were hired on or after the implementation date | 24 |
| of the
self-managed plan and (ii) by other System
participants.
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| The actuary's report must also quantify the extent to which |
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| employee optional
retirement plan participation has reduced | 2 |
| the State's required contributions to
the System, expressed | 3 |
| both in dollars and as a percentage of covered payroll,
in | 4 |
| relation to what the State's contributions to the System would | 5 |
| have been
(1) if the self-managed plan had not been
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| implemented, and (2) if
45% of employees of the System's | 7 |
| covered higher educational institutions who
were hired on or | 8 |
| after the implementation date of the self-managed plan had
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| elected to participate in the self-managed plan and 10%
of | 10 |
| other System participants had transferred to the self-managed | 11 |
| plan
following its implementation.
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| (b) On or before November 15th of 2001 and on or before | 13 |
| November 15th of
each year thereafter, the Illinois Board of | 14 |
| Higher Education, in conjunction
with the
Bureau of the
Budget | 15 |
| (now Governor's Office of Management and Budget) shall prepare | 16 |
| a
report showing, on a
fiscal year by fiscal year basis, the | 17 |
| amount by which the costs associated with
compensable sick | 18 |
| leave have been reduced as a result of the termination of
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| compensable sick leave accrual on and after January 1, 1998 by | 20 |
| employees of
higher education institutions who are | 21 |
| participants in the System.
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| (c) On or before November 15 of 2001 and on or before | 23 |
| November 15th of each
year thereafter, the Department of | 24 |
| Central Management Services shall prepare a
report showing, on
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| a fiscal year by fiscal year basis, the amount by which the | 26 |
| State's cost for
health insurance coverage under the State |
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| Employees Group Insurance Act
of 1971 for retirees of the | 2 |
| State's universities and their survivors has
declined as a | 3 |
| result of requiring some of those retirees and survivors to
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| contribute to the cost of their basic health insurance. These | 5 |
| year-by-year
reductions in cost must be quantified both in | 6 |
| dollars and as a level percentage
of payroll covered by the | 7 |
| System.
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| (d) The reports required under subsections (a), (b) , and | 9 |
| (c) shall be
disseminated to the Board, the Pension Laws
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| Commission (until it ceases to exist), the Commission on | 11 |
| Government Forecasting and Accountability, the Illinois Board | 12 |
| of Higher Education, and the
Governor.
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| (e) The reports required under subsections (a), (b) , and | 14 |
| (c) shall be
taken into account by the Pension
Laws Commission | 15 |
| (or its successor, the Commission on Government Forecasting and | 16 |
| Accountability) in
making any recommendation to extend by | 17 |
| legislation beyond
December 31, 2002 the provision that allows | 18 |
| a System participant to retire at
any age with 30 or more years | 19 |
| of service as authorized in Section 15-135.
If that provision | 20 |
| is extended beyond December 31, 2002, and if the most recent
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| report under subsection (a) indicates that actual State | 22 |
| contributions to the
System for the period during which the | 23 |
| self-managed plan has been in
operation have exceeded the | 24 |
| projected State contributions under the assumptions
in clause | 25 |
| (2) of subsection (a), then any extension of the provision | 26 |
| beyond
December 31, 2002 must require that the System's higher |
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| educational
institutions and agencies cover any funding | 2 |
| deficiency through an annual
payment to the System out of | 3 |
| appropriate resources of their own.
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| (Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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| (40 ILCS 5/15-178) (from Ch. 108 1/2, par. 15-178)
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| Sec. 15-178. Duties of the State Comptroller and payroll | 7 |
| officers. The State Comptroller and employer payroll officers, | 8 |
| in drawing warrants
and checks for items of salary on payroll | 9 |
| vouchers certified by
employers, shall draw such warrants and | 10 |
| checks
to participating employees for the amount of salary or | 11 |
| wages specified
for the period, and shall draw a warrant ,
or
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| check , or electronic funds transfer to this system for the
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| total of the contributions required under Section 15-157. All
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| warrants and electronic funds transfers covering such | 15 |
| contributions, and
together with
a deduction register | 16 |
| pertaining to the
payroll supplied by the employer, shall be
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| transmitted immediately to the board.
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| The Comptroller shall draw warrants or prepare direct | 19 |
| deposit transmittals
upon the State Treasurer payable
from | 20 |
| funds appropriated for the purposes specified in this Article | 21 |
| upon
the presentation of vouchers approved by the board.
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| (Source: P.A. 87-8.)
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| (40 ILCS 5/15-167.3 rep.)
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| Section 10. The Illinois Pension Code is amended by |
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| repealing Section 15-167.3.
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.
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