Full Text of SB2156 99th General Assembly
SB2156eng 99TH GENERAL ASSEMBLY |
| | SB2156 Engrossed | | LRB099 13062 RPS 36944 b |
|
| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 15-106, 15-107, 15-110, 15-111, 15-168, and 15-168.2 | 6 | | and by adding Section 15-111.5 as follows:
| 7 | | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
| 8 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 9 | | which has been held unconstitutional)
| 10 | | Sec. 15-106. Employer. "Employer": The University of | 11 | | Illinois, Southern
Illinois University, Chicago State | 12 | | University, Eastern Illinois University,
Governors State | 13 | | University, Illinois State University, Northeastern Illinois
| 14 | | University, Northern Illinois University, Western Illinois | 15 | | University, the
State Board of Higher Education, the Illinois | 16 | | Mathematics and Science Academy,
the University Civil Service | 17 | | Merit Board, the Board of
Trustees of the State Universities | 18 | | Retirement System, the Illinois Community
College Board, | 19 | | community college
boards, any association of community college | 20 | | boards organized under Section
3-55 of the Public Community | 21 | | College Act, the Board of Examiners established
under the | 22 | | Illinois Public Accounting Act, and, only during the period for | 23 | | which
employer contributions required under Section 15-155 are |
| | | SB2156 Engrossed | - 2 - | LRB099 13062 RPS 36944 b |
|
| 1 | | paid, the following
organizations: the alumni associations, | 2 | | the foundations and the athletic
associations which are | 3 | | affiliated with the universities and colleges included
in this | 4 | | Section as employers. An
individual that begins employment on | 5 | | or after the effective date of this amendatory Act of the
99th | 6 | | General Assembly with any association of community college | 7 | | boards organized under
Section 3-55 of the Public Community | 8 | | College Act, the Association of Illinois Middle-Grade
Schools, | 9 | | the Illinois Association of School Administrators, the | 10 | | Illinois Association for
Supervision and Curriculum | 11 | | Development, the Illinois Principals Association, the Illinois
| 12 | | Association of School Business Officials, the Illinois Special | 13 | | Olympics, or an entity not defined
as an employer in this | 14 | | Section shall not be deemed an employee for the purposes of | 15 | | this Article
with respect to that employment and shall not be | 16 | | eligible to participate in the System with respect
to that | 17 | | employment; provided, however, that those individuals who are | 18 | | both employed by such
an entity and are participating in the | 19 | | System with respect to that employment on the effective
date of | 20 | | this amendatory Act of the 99th General Assembly shall be | 21 | | allowed to continue as
participants in the System for the | 22 | | duration of that employment. | 23 | | A department as defined in Section 14-103.04 is
an employer | 24 | | for any person appointed by the Governor under the Civil
| 25 | | Administrative Code of Illinois who is a participating employee | 26 | | as defined in
Section 15-109. The Department of Central |
| | | SB2156 Engrossed | - 3 - | LRB099 13062 RPS 36944 b |
|
| 1 | | Management Services is an employer with respect to persons | 2 | | employed by the State Board of Higher Education in positions | 3 | | with the Illinois Century Network as of June 30, 2004 who | 4 | | remain continuously employed after that date by the Department | 5 | | of Central Management Services in positions with the Illinois | 6 | | Century Network, the Bureau of Communication and Computer | 7 | | Services, or, if applicable, any successor bureau.
| 8 | | The cities of Champaign and Urbana shall be considered
| 9 | | employers, but only during the period for which contributions | 10 | | are required to
be made under subsection (b-1) of Section | 11 | | 15-155 and only with respect to
individuals described in | 12 | | subsection (h) of Section 15-107.
| 13 | | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | 14 | | Sec. 999 .)
| 15 | | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| 16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 17 | | which has been held unconstitutional)
| 18 | | Sec. 15-107. Employee.
| 19 | | (a) "Employee" means any member of the educational, | 20 | | administrative,
secretarial, clerical, mechanical, labor or | 21 | | other staff of an employer
whose employment is permanent and | 22 | | continuous or who is employed in a
position in which services | 23 | | are expected to be rendered on a continuous
basis for at least | 24 | | 4 months or one academic term, whichever is less, who
(A) | 25 | | receives payment for personal services on a warrant issued |
| | | SB2156 Engrossed | - 4 - | LRB099 13062 RPS 36944 b |
|
| 1 | | pursuant to
a payroll voucher certified by an employer and | 2 | | drawn by the State
Comptroller upon the State Treasurer or by | 3 | | an employer upon trust, federal
or other funds, or (B) is on a | 4 | | leave of absence without pay. Employment
which is irregular, | 5 | | intermittent or temporary shall not be considered
continuous | 6 | | for purposes of this paragraph.
| 7 | | However, a person is not an "employee" if he or she:
| 8 | | (1) is a student enrolled in and regularly attending | 9 | | classes in a
college or university which is an employer, | 10 | | and is employed on a temporary
basis at less than full | 11 | | time;
| 12 | | (2) is currently receiving a retirement annuity or a | 13 | | disability
retirement annuity under Section 15-153.2 from | 14 | | this System;
| 15 | | (3) is on a military leave of absence;
| 16 | | (4) is eligible to participate in the Federal Civil | 17 | | Service Retirement
System and is currently making | 18 | | contributions to that system based upon
earnings paid by an | 19 | | employer;
| 20 | | (5) is on leave of absence without pay for more than 60 | 21 | | days
immediately following termination of disability | 22 | | benefits under this
Article;
| 23 | | (6) is hired after June 30, 1979 as a public service | 24 | | employment program
participant under the Federal | 25 | | Comprehensive Employment and Training Act
and receives | 26 | | earnings in whole or in part from funds provided under that
|
| | | SB2156 Engrossed | - 5 - | LRB099 13062 RPS 36944 b |
|
| 1 | | Act; or
| 2 | | (7) is employed on or after July 1, 1991 to perform | 3 | | services that
are excluded by subdivision (a)(7)(f) or | 4 | | (a)(19) of Section 210 of the
federal Social Security Act | 5 | | from the definition of employment given in that
Section (42 | 6 | | U.S.C. 410).
| 7 | | (b) Any employer may, by filing a written notice with the | 8 | | board, exclude
from the definition of "employee" all persons | 9 | | employed pursuant to a federally
funded contract entered into | 10 | | after July 1, 1982 with a federal military
department in a | 11 | | program providing training in military courses to federal
| 12 | | military personnel on a military site owned by the United | 13 | | States Government,
if this exclusion is not prohibited by the | 14 | | federally funded contract or
federal laws or rules governing | 15 | | the administration of the contract.
| 16 | | (c) Any person appointed by the Governor under the Civil | 17 | | Administrative
Code of the State is an employee, if he or she | 18 | | is a participant in this
system on the effective date of the | 19 | | appointment.
| 20 | | (d) A participant on lay-off status under civil service | 21 | | rules is
considered an employee for not more than 120 days from | 22 | | the date of the lay-off.
| 23 | | (e) A participant is considered an employee during (1) the | 24 | | first 60 days
of disability leave, (2) the period, not to | 25 | | exceed one year, in which his
or her eligibility for disability | 26 | | benefits is being considered by the board
or reviewed by the |
| | | SB2156 Engrossed | - 6 - | LRB099 13062 RPS 36944 b |
|
| 1 | | courts, and (3) the period he or she receives disability
| 2 | | benefits under the provisions of Section 15-152, workers' | 3 | | compensation or
occupational disease benefits, or disability | 4 | | income under an insurance
contract financed wholly or partially | 5 | | by the employer.
| 6 | | (f) Absences without pay, other than formal leaves of | 7 | | absence, of less
than 30 calendar days, are not considered as | 8 | | an interruption of a person's
status as an employee. If such | 9 | | absences during any period of 12 months
exceed 30 work days, | 10 | | the employee status of the person is considered as
interrupted | 11 | | as of the 31st work day.
| 12 | | (g) A staff member whose employment contract requires | 13 | | services during
an academic term is to be considered an | 14 | | employee during the summer and
other vacation periods, unless | 15 | | he or she declines an employment contract
for the succeeding | 16 | | academic term or his or her employment status is
otherwise | 17 | | terminated, and he or she receives no earnings during these | 18 | | periods.
| 19 | | (h) An individual who was a participating employee employed | 20 | | in the fire
department of the University of Illinois's | 21 | | Champaign-Urbana campus immediately
prior to the elimination | 22 | | of that fire department and who immediately after the
| 23 | | elimination of that fire department became employed by the fire | 24 | | department of
the City of Urbana or the City of Champaign shall | 25 | | continue to be considered as
an employee for purposes of this | 26 | | Article for so long as the individual remains
employed as a |
| | | SB2156 Engrossed | - 7 - | LRB099 13062 RPS 36944 b |
|
| 1 | | firefighter by the City of Urbana or the City of Champaign. The
| 2 | | individual shall cease to be considered an employee under this | 3 | | subsection (h)
upon the first termination of the individual's | 4 | | employment as a firefighter by
the City of Urbana or the City | 5 | | of Champaign.
| 6 | | (i) An individual who is employed on a full-time basis as | 7 | | an officer
or employee of a statewide teacher organization that | 8 | | serves System
participants or an officer of a national teacher | 9 | | organization that serves
System participants may participate | 10 | | in the System and shall be deemed an
employee, provided that | 11 | | (1) the individual has previously earned
creditable service | 12 | | under this Article, (2) the individual files with the
System an | 13 | | irrevocable election to become a participant before the | 14 | | effective date of this amendatory Act of the 97th General | 15 | | Assembly, (3) the
individual does not receive credit for that | 16 | | employment under any other Article
of this Code, and (4) the | 17 | | individual first became a full-time employee of the teacher | 18 | | organization and becomes a participant before the effective | 19 | | date of this amendatory Act of the 97th General Assembly. An | 20 | | employee under this subsection (i) is responsible for paying
to | 21 | | the System both (A) employee contributions based on the actual | 22 | | compensation
received for service with the teacher | 23 | | organization and (B) employer
contributions equal to the normal | 24 | | costs (as defined in Section 15-155)
resulting from that | 25 | | service; all or any part of these contributions may be
paid on | 26 | | the employee's behalf or picked up for tax purposes (if |
| | | SB2156 Engrossed | - 8 - | LRB099 13062 RPS 36944 b |
|
| 1 | | authorized
under federal law) by the teacher organization.
| 2 | | A person who is an employee as defined in this subsection | 3 | | (i) may establish
service credit for similar employment prior | 4 | | to becoming an employee under this
subsection by paying to the | 5 | | System for that employment the contributions
specified in this | 6 | | subsection, plus interest at the effective rate from the
date | 7 | | of service to the date of payment. However, credit shall not be | 8 | | granted
under this subsection for any such prior employment for | 9 | | which the applicant
received credit under any other provision | 10 | | of this Code, or during which
the applicant was on a leave of | 11 | | absence under Section 15-113.2.
| 12 | | (j) A person employed by the State Board of Higher | 13 | | Education in a position with the Illinois Century Network as of | 14 | | June 30, 2004 shall be considered to be an employee for so long | 15 | | as he or she remains continuously employed after that date by | 16 | | the Department of Central Management Services in a position | 17 | | with the Illinois Century Network, the Bureau of Communication | 18 | | and Computer Services, or, if applicable, any successor bureau
| 19 | | and meets the requirements of subsection (a).
| 20 | | (k) In the case of doubt as to whether any person is an | 21 | | employee within the meaning of this
Section or any rule adopted | 22 | | by the Board, the decision of the Board shall be
final. | 23 | | (Source: P.A. 97-651, eff. 1-5-12.)
| 24 | | (40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
| 25 | | Sec. 15-110. Basic compensation. "Basic compensation": |
| | | SB2156 Engrossed | - 9 - | LRB099 13062 RPS 36944 b |
|
| 1 | | Subject to Section 15-111.5, the The gross
basic rate of salary | 2 | | or wages payable by an employer, including : | 3 | | (1) the
value of maintenance, board, living quarters, | 4 | | personal laundry , or other
allowances furnished in lieu of | 5 | | salary which are considered gross income
under the federal | 6 | | Federal Internal Revenue Code of 1986, as amended; , | 7 | | (2) the employee contributions required
under Section | 8 | | 15-157 ; , and | 9 | | (3) the amount paid by any employer
to a custodial | 10 | | account for investment in regulated investment company | 11 | | stocks
for the benefit of the employee pursuant to the | 12 | | University
Employees Custodial Accounts Act; "An Act in | 13 | | relation to payments
to custodial accounts for the benefit | 14 | | of employees of public institutions
of higher education", | 15 | | approved September 9, 1983, and | 16 | | (4) the
amount of the premium payable by any employer | 17 | | to an
insurance company or companies on an annuity | 18 | | contract, pursuant to the
employee's election to accept a | 19 | | reduction in earnings or forego an
increase in earnings | 20 | | under Section 30c of the State Finance Act "An Act in | 21 | | relation to State
Finance," approved June 10, 1919, as | 22 | | amended , or a tax-sheltered annuity
plan approved by any | 23 | | employer ; and | 24 | | (5) the amount of any elective deferral to a deferred | 25 | | compensation plan established under
Article 24 of this Code | 26 | | pursuant to Section 457(b) of the federal Internal Revenue |
| | | SB2156 Engrossed | - 10 - | LRB099 13062 RPS 36944 b |
|
| 1 | | Code of 1986, as amended . | 2 | | Basic compensation does not include (1)
salary or wages for | 3 | | overtime or other extra service; (2) prospective salary
or | 4 | | wages under a summer teaching contract not yet entered upon; | 5 | | and (3)
overseas differential allowances, quarters allowances, | 6 | | post allowances,
educational allowances and transportation | 7 | | allowances paid by an employer
under a contract with the | 8 | | federal government or its agencies for
services rendered in | 9 | | other countries. If an employee elects to receive in
lieu of | 10 | | cash salary or wages, fringe benefits which are not taxable | 11 | | under
the federal Federal Internal Revenue Code of 1986, as | 12 | | amended , the amount of the cash salary or wages
which is waived | 13 | | shall be included in determining basic compensation.
| 14 | | (Source: P.A. 84-1308.)
| 15 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| 16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 17 | | which has been held unconstitutional)
| 18 | | Sec. 15-111. Earnings.
| 19 | | (a) "Earnings": Subject to Section 15-111.5, an An amount | 20 | | paid for personal services equal to the sum of
the basic | 21 | | compensation plus extra compensation for summer teaching,
| 22 | | overtime or other extra service. For periods for which an | 23 | | employee receives
service credit under subsection (c) of | 24 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the | 25 | | basic compensation on which contributions are
paid by the |
| | | SB2156 Engrossed | - 11 - | LRB099 13062 RPS 36944 b |
|
| 1 | | employee during such periods. Compensation for employment | 2 | | which is
irregular, intermittent and temporary shall not be | 3 | | considered earnings, unless
the participant is also receiving | 4 | | earnings from the employer as an employee
under Section 15-107.
| 5 | | With respect to transition pay paid by the University of | 6 | | Illinois to a
person who was a participating employee employed | 7 | | in the fire department of
the University of Illinois's | 8 | | Champaign-Urbana campus immediately prior to
the elimination | 9 | | of that fire department:
| 10 | | (1) "Earnings" includes transition pay paid to the | 11 | | employee on or after
the effective date of this amendatory | 12 | | Act of the 91st General Assembly.
| 13 | | (2) "Earnings" includes transition pay paid to the | 14 | | employee before the
effective date of this amendatory Act | 15 | | of the 91st General Assembly only if (i)
employee | 16 | | contributions under Section 15-157 have been withheld from | 17 | | that
transition pay or (ii) the employee pays to the System | 18 | | before January 1, 2001
an amount representing employee | 19 | | contributions under Section 15-157 on that
transition pay. | 20 | | Employee contributions under item (ii) may be paid in a | 21 | | lump
sum, by withholding from additional transition pay | 22 | | accruing before January 1,
2001, or in any other manner | 23 | | approved by the System. Upon payment of the
employee | 24 | | contributions on transition pay, the corresponding | 25 | | employer
contributions become an obligation of the State.
| 26 | | (b) For a Tier 2 member, the annual earnings shall not |
| | | SB2156 Engrossed | - 12 - | LRB099 13062 RPS 36944 b |
|
| 1 | | exceed $106,800; however, that amount shall annually | 2 | | thereafter be increased by the lesser of (i) 3% of that amount, | 3 | | including all previous adjustments, or (ii) one half the annual | 4 | | unadjusted percentage increase (but not less than zero) in the | 5 | | consumer price index-u for the 12 months ending with the | 6 | | September preceding each November 1, including all previous | 7 | | adjustments. | 8 | | For the purposes of this Section, "consumer price index u" | 9 | | means the index published by the Bureau of Labor Statistics of | 10 | | the United States Department of Labor that measures the average | 11 | | change in prices of goods and services purchased by all urban | 12 | | consumers, United States city average, all items, 1982-84 = | 13 | | 100. The new amount resulting from each annual adjustment shall | 14 | | be determined by the Public Pension Division of the Department | 15 | | of Insurance and made available to the boards of the retirement | 16 | | systems and pension funds by November 1 of each year. | 17 | | (c) With each submission of payroll information in the | 18 | | manner prescribed by the System, the
employer shall certify | 19 | | that the payroll information is correct and complies with all | 20 | | applicable
State and federal laws. | 21 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 22 | | (40 ILCS 5/15-111.5 new) | 23 | | Sec. 15-111.5. Basic compensation and earnings | 24 | | restrictions. For an employee who first
becomes a participant | 25 | | on or after the effective date of this amendatory Act of the |
| | | SB2156 Engrossed | - 13 - | LRB099 13062 RPS 36944 b |
|
| 1 | | 99th General
Assembly, basic compensation under Section 15-110 | 2 | | and earnings under Section 15-111 shall
not include bonuses, | 3 | | housing allowances, vehicle allowances, or club memberships or | 4 | | dues.
| 5 | | (40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
| 6 | | Sec. 15-168. To require information. | 7 | | (a) To require such information as shall be necessary for | 8 | | the proper
operation of the system from any participant or | 9 | | beneficiary or annuitant benefit recipient or from any current | 10 | | or former
employer of a participant or annuitant. Such | 11 | | information may include, but is not limited to, employment
| 12 | | contracts current or former participant .
| 13 | | (b) When the System submits a request for information under | 14 | | subsection (a) of this Section, the
employer shall respond | 15 | | within 90 calendar days of the System's request. Beginning on | 16 | | the 91st
calendar day after the System's request, the System | 17 | | may assess a penalty of $500 per calendar
day until receipt of | 18 | | the information by the System, with a maximum penalty of | 19 | | $50,000. All
payments must be received within one calendar year | 20 | | after receipt of the information by the System or one
calendar | 21 | | year of reaching the maximum penalty of $50,000, whichever | 22 | | occurs earlier. If the
employer fails to make complete payment | 23 | | within the applicable timeframe, then the System may,
after | 24 | | giving notice to the employer, certify the delinquent amount to | 25 | | the State Comptroller, and
the Comptroller shall thereupon |
| | | SB2156 Engrossed | - 14 - | LRB099 13062 RPS 36944 b |
|
| 1 | | deduct the certified delinquent amount from State funds payable
| 2 | | to the employer and pay them instead to the System. | 3 | | (c) If a participant, beneficiary, or annuitant fails to | 4 | | provide any information that is necessary for
the calculation, | 5 | | payment, or finalization of any benefit under this Article | 6 | | within 90 calendar days
of the date of the System's request | 7 | | under subsection (a) of this Section, then the System may
| 8 | | immediately cease processing the benefit and may not pay any | 9 | | additional benefit payment to the participant, beneficiary, or | 10 | | annuitant until
the requested information is provided. | 11 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
| 12 | | (40 ILCS 5/15-168.2) | 13 | | Sec. 15-168.2. Audit of employers. | 14 | | (a) Beginning August 1, 2013, the System may audit the | 15 | | employment records and payroll records of all employers. When | 16 | | the System audits an employer, it shall specify the exact | 17 | | information it requires, which may include but need not be | 18 | | limited to the names, titles, and earnings history of every | 19 | | individual receiving compensation from the employer. If an | 20 | | employer is audited by the System, then the employer must | 21 | | provide to the System all necessary documents and records | 22 | | within 60 calendar days after receiving notification from the | 23 | | System. When the System audits an employer, it shall send | 24 | | related correspondence by certified mail.
| 25 | | (b) When the System submits a request for information under |
| | | SB2156 Engrossed | - 15 - | LRB099 13062 RPS 36944 b |
|
| 1 | | subsection (a) of this Section, the
employer shall respond | 2 | | within 60 calendar days of the System's request. Beginning on | 3 | | the 61st
calendar day after the System's request, the System | 4 | | may assess a penalty of $500 per calendar
day until receipt of | 5 | | the information by the System, with a maximum penalty of | 6 | | $50,000. All
payments must be received by the System within one | 7 | | calendar year after receipt of the
information by the System or | 8 | | one calendar year after reaching the maximum penalty of | 9 | | $50,000, whichever
occurs earlier. If the employer fails to | 10 | | make complete payment within the applicable timeframe,
then the | 11 | | System may, after giving notice to the employer, certify the | 12 | | delinquent amount to the
State Comptroller, and the Comptroller | 13 | | shall thereupon deduct the certified delinquent amount
from | 14 | | State funds payable to the employer and pay them instead to the | 15 | | System. | 16 | | (Source: P.A. 97-968, eff. 8-16-12.)
|
|