Full Text of SB1687 98th General Assembly
SB1687sam001 98TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 3/15/2013
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| 1 | | AMENDMENT TO SENATE BILL 1687
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1687 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 15-126.1, 15-139, 15-139.5, and 15-168.2 as | 6 | | follows:
| 7 | | (40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
| 8 | | Sec. 15-126.1. Academic year. "Academic year": The | 9 | | 12-month period
beginning on the first day of the fall term as | 10 | | determined
by each employer, or if the employer does not have | 11 | | an academic program
divided into terms, then beginning | 12 | | September 1. For the purposes of Section 15-139.5 and | 13 | | subsection (b) of Section 15-139, however, "academic year" | 14 | | means the 12-month period beginning September 1.
| 15 | | (Source: P.A. 84-1472.)
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| 1 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 2 | | Sec. 15-139. Retirement annuities; cancellation; suspended | 3 | | during
employment. | 4 | | (a) If an annuitant returns to employment for an employer
| 5 | | within 60 days after the beginning of the retirement annuity | 6 | | payment
period, the retirement annuity shall be cancelled, and | 7 | | the annuitant shall
refund to the System the total amount of | 8 | | the retirement annuity payments
which he or she received. If | 9 | | the retirement annuity is cancelled, the
participant shall | 10 | | continue to participate in the System.
| 11 | | (b) If an annuitant retires prior to age 60 and receives or | 12 | | becomes
entitled to receive during any month compensation in | 13 | | excess of the monthly
retirement annuity (including any | 14 | | automatic annual increases) for services
performed after the | 15 | | date of retirement for any employer under this System, that
| 16 | | portion of the monthly
retirement annuity provided by employer | 17 | | contributions shall not be payable.
| 18 | | If an annuitant retires at age 60 or over and receives
or | 19 | | becomes entitled to receive during any academic year | 20 | | compensation in
excess of the difference between his or her | 21 | | highest annual earnings prior
to retirement and his or her | 22 | | annual retirement annuity computed under Rule
1, Rule 2, Rule | 23 | | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| 24 | | 15-136.4,
for services performed after
the date of retirement | 25 | | for any employer under this System, that portion of
the monthly | 26 | | retirement annuity provided by employer contributions shall be
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| 1 | | reduced by an amount equal to the compensation that exceeds | 2 | | such difference.
| 3 | | However, any remuneration received for serving as a member | 4 | | of the
Illinois Educational Labor Relations Board shall be | 5 | | excluded from
"compensation" for the purposes of this | 6 | | subsection (b), and serving as a
member of the Illinois | 7 | | Educational Labor Relations Board shall not be
deemed to be a | 8 | | return to employment for the purposes of this Section.
This | 9 | | provision applies without regard to whether service was | 10 | | terminated
prior to the effective date of this amendatory Act | 11 | | of 1991. | 12 | | "Academic year", as used in this subsection (b), means the | 13 | | 12-month period beginning September 1.
| 14 | | (c) If an employer certifies that an annuitant has been | 15 | | reemployed
on a permanent and continuous basis or in a position
| 16 | | in which the annuitant is expected to serve for at least 9 | 17 | | months, the
annuitant shall resume his or her status as a | 18 | | participating employee
and shall be entitled to all rights | 19 | | applicable to
participating employees upon filing with the | 20 | | board an
election to forgo all annuity payments during the | 21 | | period
of reemployment. Upon subsequent retirement, the | 22 | | retirement
annuity shall consist of the annuity which was | 23 | | terminated by the reemployment,
plus the additional retirement | 24 | | annuity based upon service
granted during the period of | 25 | | reemployment, but the combined retirement
annuity shall not | 26 | | exceed the maximum
annuity applicable on the date of the last |
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| 1 | | retirement.
| 2 | | The total service and earnings credited before and after | 3 | | the initial
date of retirement shall be considered in | 4 | | determining eligibility of the
employee or the employee's | 5 | | beneficiary to benefits under this
Article, and in calculating | 6 | | final rate of earnings.
| 7 | | In determining the death benefit
payable to a beneficiary | 8 | | of an annuitant who again becomes a participating
employee | 9 | | under this Section, accumulated normal and additional
| 10 | | contributions shall be considered as the sum of the accumulated | 11 | | normal and
additional contributions at the date of initial | 12 | | retirement and the
accumulated normal and additional | 13 | | contributions credited after that date,
less the sum of the | 14 | | annuity payments received by the annuitant.
| 15 | | The survivors insurance benefits provided under Section | 16 | | 15-145 shall not
be applicable to an annuitant who resumes his | 17 | | or her status as a
participating employee, unless the | 18 | | annuitant, at the time of initial
retirement, has a survivors | 19 | | insurance beneficiary who could qualify
for such benefits.
| 20 | | If the participant's employment is terminated because of | 21 | | circumstances
other than death before 9 months from the date of | 22 | | reemployment, the
provisions of this Section regarding | 23 | | resumption of status as a
participating employee shall not | 24 | | apply. The normal and survivors insurance
contributions which | 25 | | are deducted during this period shall be refunded to
the | 26 | | annuitant without interest, and subsequent benefits under this |
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| 1 | | Article
shall be the same as those which were applicable prior | 2 | | to the date the
annuitant resumed employment.
| 3 | | The amendments made to this Section by this amendatory Act | 4 | | of the 91st
General Assembly apply without regard to whether | 5 | | the annuitant was in service
on or after the effective date of | 6 | | this amendatory Act.
| 7 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 8 | | (40 ILCS 5/15-139.5) | 9 | | Sec. 15-139.5. Return to work by affected annuitant; notice | 10 | | and contribution by employer. | 11 | | (a) An employer who employs or re-employs a person | 12 | | receiving a retirement annuity from the System in an academic | 13 | | year beginning on or after August 1, 2014 2013 must notify the | 14 | | System of that employment within 60 days after employing the | 15 | | annuitant. The notice must include a summary copy of the | 16 | | contract of employment or ; if no written contract of employment | 17 | | exists, then the notice must specify the rate of compensation | 18 | | and the anticipated length of employment of that annuitant. The | 19 | | notice must specify whether the annuitant will be compensated | 20 | | from federal, corporate, foundation, or trust funds or grants | 21 | | of State funds that identify the principal investigator by | 22 | | name. The notice must include the employer's determination of | 23 | | whether or not the annuitant is an "affected annuitant" as | 24 | | defined in subsection (b). | 25 | | The employer must also record, document, and certify to the |
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| 1 | | System (i) the number of paid days and paid weeks worked by the | 2 | | annuitant in the academic year, (ii) the amount of compensation | 3 | | paid to the annuitant for employment during the academic year, | 4 | | and (ii) (iii) the amount of that compensation, if any, that | 5 | | comes from either federal, corporate, foundation, or trust | 6 | | funds or grants of State funds that identify the principal | 7 | | investigator by name. | 8 | | As used in this Section, "academic year" means the 12-month | 9 | | period beginning September 1. has the meaning ascribed to that | 10 | | term in Section 15-126.1; "paid day" means a day on which a | 11 | | person performs personal services for an employer and for which | 12 | | the person is compensated by the employer; and "paid week" | 13 | | means a calendar week in which a person has at least one paid | 14 | | day. | 15 | | For the purposes of this Section, an annuitant whose | 16 | | employment by an employer extends over more than one academic | 17 | | year shall be deemed to be re-employed by that employer in each | 18 | | of those academic years. | 19 | | The System may specify the time, form, and manner of | 20 | | providing the determinations, notifications, certifications, | 21 | | and documentation required under this Section. | 22 | | (b) A person receiving a retirement annuity from the System | 23 | | becomes an "affected annuitant" on the first day of the | 24 | | academic year following the academic year in which the | 25 | | annuitant first meets both of the following condition | 26 | | conditions : |
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| 1 | | (1) (Blank). While receiving a retirement annuity | 2 | | under this Article, the annuitant has been employed on or | 3 | | after August 1, 2013 by one or more employers under this | 4 | | Article for a total of more than 18 paid weeks (which need | 5 | | not have been with the same employer or in the same | 6 | | academic year); except that any periods of employment for | 7 | | which the annuitant was compensated solely from federal, | 8 | | corporate, foundation, or trust funds or grants of State | 9 | | funds that identify the principal investigator by name are | 10 | | excluded. | 11 | | (2) While receiving a retirement annuity under this | 12 | | Article, the annuitant was employed on or after August 1, | 13 | | 2014 2013 by one or more employers under this Article and | 14 | | received
or became entitled to receive during an academic | 15 | | year compensation for that employment in excess of 40% of | 16 | | his or her highest annual earnings prior
to retirement; | 17 | | except that compensation paid from federal, corporate, | 18 | | foundation, or trust funds or grants of State funds that | 19 | | identify the principal investigator by name is excluded. | 20 | | A person who becomes an affected annuitant remains an | 21 | | affected annuitant, except for any period during which the | 22 | | person returns to active service and does not receive a | 23 | | retirement annuity from the System. | 24 | | (c) It is the obligation of the employer to determine | 25 | | whether an annuitant is an affected annuitant before employing | 26 | | the annuitant. For that purpose the employer may require the |
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| 1 | | annuitant to disclose and document his or her relevant prior | 2 | | employment and earnings history. Failure of the employer to | 3 | | make this determination correctly and in a timely manner or to | 4 | | include this determination with the notification required | 5 | | under subsection (a) does not excuse the employer from making | 6 | | the contribution required under subsection (e). | 7 | | The System may assist the employer in determining whether a | 8 | | person is an affected annuitant. The System shall inform the | 9 | | employer if it discovers that the employer's determination is | 10 | | inconsistent with the employment and earnings information in | 11 | | the System's records. | 12 | | (d) Upon the request of an annuitant, the System shall | 13 | | certify to the annuitant or the employer the following | 14 | | information as reported by the employers, as that information | 15 | | is indicated in the records of the System: (i) the annuitant's | 16 | | highest annual earnings prior
to retirement, (ii) the number of | 17 | | paid weeks worked by the annuitant for an employer on or after | 18 | | August 1, 2013, (iii) the compensation paid for that employment | 19 | | in each academic year, and (iii) (iv) whether any of that | 20 | | employment or compensation has been certified to the System as | 21 | | being paid from federal, corporate, foundation, or trust funds | 22 | | or grants of State funds that identify the principal | 23 | | investigator by name. The System shall only be required to | 24 | | certify information that is received from the employers. | 25 | | (e) In addition to the requirements of subsection (a), an | 26 | | employer who employs an affected annuitant must pay to the |
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| 1 | | System an employer contribution in the amount and manner | 2 | | provided in this Section, unless the annuitant is compensated | 3 | | by that employer solely from federal, corporate, foundation, or | 4 | | trust funds or grants of State funds that identify the | 5 | | principal investigator by name. | 6 | | The employer contribution required under this Section for | 7 | | employment of an affected annuitant in an academic year shall | 8 | | be equal to 12 times the amount of the gross monthly retirement | 9 | | annuity payable to the annuitant for the month in which the | 10 | | first paid day of that employment in that academic year occurs, | 11 | | after any reduction in that annuity that may be imposed under | 12 | | subsection (b) of Section 15-139. | 13 | | If an affected annuitant is employed by more than one | 14 | | employer in an academic year, the employer contribution | 15 | | required under this Section shall be divided among those | 16 | | employers in proportion to their respective portions of the | 17 | | total compensation paid to the affected annuitant for that | 18 | | employment during that academic year. | 19 | | If the System determines that an employer, without | 20 | | reasonable justification, has failed to make the determination | 21 | | of affected annuitant status correctly and in a timely manner, | 22 | | or has failed to notify the System or to correctly document or | 23 | | certify to the System any of the information required by this | 24 | | Section, and that failure results in a delayed determination by | 25 | | the System that a contribution is payable under this Section, | 26 | | then the amount of that employer's contribution otherwise |
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| 1 | | determined under this Section shall be doubled. | 2 | | The System shall deem a failure to correctly determine the | 3 | | annuitant's status to be justified if the employer establishes | 4 | | to the System's satisfaction that the employer, after due | 5 | | diligence, made an erroneous determination that the annuitant | 6 | | was not an affected annuitant due to reasonable reliance on | 7 | | false or misleading information provided by the annuitant or | 8 | | another employer, or an error in the annuitant's official | 9 | | employment or earnings records. | 10 | | (f) Whenever the System determines that an employer is | 11 | | liable for a contribution under this Section, it shall so | 12 | | notify the employer and certify the amount of the contribution. | 13 | | The employer may pay the required contribution without interest | 14 | | at any time within one year after receipt of the certification. | 15 | | If the employer fails to pay within that year, then interest | 16 | | shall be charged at a rate equal to the System's prescribed | 17 | | rate of interest, compounded annually from the 366th day after | 18 | | receipt of the certification from the System. Payment must be | 19 | | concluded within 2 years after receipt of the certification by | 20 | | the employer. If the employer fails to make complete payment, | 21 | | including applicable interest, within 2 years, then the System | 22 | | may, after giving notice to the employer, certify the | 23 | | delinquent amount to the State Comptroller, and the Comptroller | 24 | | shall thereupon deduct the certified delinquent amount from | 25 | | State funds payable to the employer and pay them instead to the | 26 | | System. |
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| 1 | | (g) If an employer is required to make a contribution to | 2 | | the System as a result of employing an affected annuitant and | 3 | | the annuitant later elects to forgo his or her annuity in that | 4 | | same academic year pursuant to subsection (c) of Section | 5 | | 15-139, then the required contribution by the employer shall be | 6 | | waived, and if the contribution has already been paid, it shall | 7 | | be refunded to the employer without interest. | 8 | | (h) Notwithstanding any other provision of this Article, | 9 | | the employer contribution required under this Section shall not | 10 | | be included in the determination of any benefit under this | 11 | | Article or any other Article of this Code, regardless of | 12 | | whether the annuitant returns to active service, and is in | 13 | | addition to any other State or employer contribution required | 14 | | under this Article. | 15 | | (i) Notwithstanding any other provision of this Section to | 16 | | the contrary, if an employer employs an affected annuitant in | 17 | | order to continue critical operations in the event of either an | 18 | | employee's unforeseen illness, accident, or death or a | 19 | | catastrophic incident or disaster, then, for one and only one | 20 | | academic year, the employer is not required to pay the | 21 | | contribution set forth in this Section for that annuitant. The | 22 | | employer shall, however, immediately notify the System upon | 23 | | employing a person subject to this subsection (i). For the | 24 | | purposes of this subsection (i), "critical operations" means | 25 | | teaching services, medical services, student welfare services, | 26 | | and any other services that are critical to the mission of the |
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| 1 | | employer.
| 2 | | (j) This Section shall be applied and coordinated with the | 3 | | regulatory obligations contained in the State Universities | 4 | | Civil Service Act. This Section shall not apply to an annuitant | 5 | | if the employer of that annuitant provides documentation to the | 6 | | System that (1) the annuitant is employed in a status | 7 | | appointment position, as that term is defined in 80 Ill. Adm. | 8 | | Code 250.80, and (2) due to obligations contained under the | 9 | | State Universities Civil Service Act, the employer does not | 10 | | have the ability to limit the earnings or duration of | 11 | | employment for the annuitant while employed in the status | 12 | | appointment position. | 13 | | (Source: P.A. 97-968, eff. 8-16-12.) | 14 | | (40 ILCS 5/15-168.2) | 15 | | Sec. 15-168.2. Audit of employers. Beginning August 1, 2014 | 16 | | 2013 , the System may audit the employment records and payroll | 17 | | records of all employers. When the System audits an employer, | 18 | | it shall specify the exact information it requires, which may | 19 | | include but need not be limited to the names, titles, and | 20 | | earnings history of every individual receiving compensation | 21 | | from the employer. If an employer is audited by the System, | 22 | | then the employer must provide to the System all necessary | 23 | | documents and records within 60 calendar days after receiving | 24 | | notification from the System. When the System audits an | 25 | | employer, it shall send related correspondence by certified |
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| 1 | | mail.
| 2 | | (Source: P.A. 97-968, eff. 8-16-12.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.".
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