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90_SB0003ren
(New Act)
Creates the Public Employee Pension Equity Act.
SRS90S0002PDbm
SB3 Re-enrolled SRS90S0002PDbm
1 AN ACT concerning public employees' pensions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of
5 1971 is amended by changing Sections 3 and 10 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 Sec. 3. Definitions. Unless the context otherwise
8 requires, the following words and phrases as used in this Act
9 shall have the following meanings. The Department may define
10 these and other words and phrases separately for the purpose
11 of implementing specific programs providing benefits under
12 this Act.
13 (a) "Administrative service organization" means any
14 person, firm or corporation experienced in the handling of
15 claims which is fully qualified, financially sound and
16 capable of meeting the service requirements of a contract of
17 administration executed with the Department.
18 (b) "Annuitant" means (1) an employee who retires, or
19 has retired, on or after January 1, 1966 on an immediate
20 annuity under the provisions of Articles 2, 14, 15 (including
21 an employee who has retired under the optional retirement
22 program established under Section 15-158.2), paragraphs (2),
23 (3), or (5) (b) or (c) of Section 16-106, or Article 18 of
24 the Illinois Pension Code; (2) any person who was receiving
25 group insurance coverage under this Act as of March 31, 1978
26 by reason of his status as an annuitant, even though the
27 annuity in relation to which such coverage was provided is a
28 proportional annuity based on less than the minimum period of
29 service required for a retirement annuity in the system
30 involved; (3) any person not otherwise covered by this Act
31 who has retired as a participating member under Article 2 of
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1 the Illinois Pension Code but is ineligible for the
2 retirement annuity under Section 2-119 of the Illinois
3 Pension Code; (4) the spouse of any person who is receiving a
4 retirement annuity under Article 18 of the Illinois Pension
5 Code and who is covered under a group health insurance
6 program sponsored by a governmental employer other than the
7 State of Illinois and who has irrevocably elected to waive
8 his or her coverage under this Act and to have his or her
9 spouse considered as the "annuitant" under this Act and not
10 as a "dependent"; or (5) an employee who retires, or has
11 retired, from a qualified position, as determined according
12 to rules promulgated by the Director, under a qualified local
13 government or a qualified rehabilitation facility or a
14 qualified domestic violence shelter or service. (For
15 definition of "retired employee", see (p) post).
16 (b-5) "New SERS annuitant" means a person who, on or
17 after January 1, 1998, becomes an annuitant, as defined in
18 subsection (b), by virtue of beginning to receive a
19 retirement annuity under Article 14 of the Illinois Pension
20 Code, and is eligible to participate in the basic program of
21 group health benefits provided for annuitants under this Act.
22 (b-6) "New SURS annuitant" means a person who, on or
23 after January 1, 1998, becomes an annuitant, as defined in
24 subsection (b), by virtue of beginning to receive a
25 retirement annuity under Article 15 of the Illinois Pension
26 Code, and is eligible to participate in the basic program of
27 group health benefits provided for annuitants under this Act.
28 (b-7) "New TRS State annuitant" means a person who, on
29 or after July 1, 1998, becomes an annuitant, as defined in
30 subsection (b), by virtue of beginning to receive a
31 retirement annuity under Article 16 of the Illinois Pension
32 Code based on service as a teacher as defined in paragraph
33 (2), (3), or (5) of Section 16-106 of that Code, and is
34 eligible to participate in the basic program of group health
SB3 Re-enrolled -3- SRS90S0002PDbm
1 benefits provided for annuitants under this Act.
2 (c) "Carrier" means (1) an insurance company, a
3 corporation organized under the Limited Health Service
4 Organization Act or the Voluntary Health Services Plan Act, a
5 partnership, or other nongovernmental organization, which is
6 authorized to do group life or group health insurance
7 business in Illinois, or (2) the State of Illinois as a
8 self-insurer.
9 (d) "Compensation" means salary or wages payable on a
10 regular payroll by the State Treasurer on a warrant of the
11 State Comptroller out of any State, trust or federal fund, or
12 by the Governor of the State through a disbursing officer of
13 the State out of a trust or out of federal funds, or by any
14 Department out of State, trust, federal or other funds held
15 by the State Treasurer or the Department, to any person for
16 personal services currently performed, and ordinary or
17 accidental disability benefits under Articles 2, 14, 15
18 (including ordinary or accidental disability benefits under
19 the optional retirement program established under Section
20 15-158.2), paragraphs (2), (3), or (5) (b) or (c) of Section
21 16-106, or Article 18 of the Illinois Pension Code, for
22 disability incurred after January 1, 1966, or benefits
23 payable under the Workers' Compensation or Occupational
24 Diseases Act or benefits payable under a sick pay plan
25 established in accordance with Section 36 of the State
26 Finance Act. "Compensation" also means salary or wages paid
27 to an employee of any qualified local government or qualified
28 rehabilitation facility or a qualified domestic violence
29 shelter or service.
30 (e) "Commission" means the State Employees Group
31 Insurance Advisory Commission authorized by this Act.
32 Commencing July 1, 1984, "Commission" as used in this Act
33 means the Illinois Economic and Fiscal Commission as
34 established by the Legislative Commission Reorganization Act
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1 of 1984.
2 (f) "Contributory", when referred to as contributory
3 coverage, shall mean optional coverages or benefits elected
4 by the member toward the cost of which such member makes
5 contribution, or which are funded in whole or in part through
6 the acceptance of a reduction in earnings or the foregoing of
7 an increase in earnings by an employee, as distinguished from
8 noncontributory coverage or benefits which are paid entirely
9 by the State of Illinois without reduction of the member's
10 salary.
11 (g) "Department" means any department, institution,
12 board, commission, officer, court or any agency of the State
13 government receiving appropriations and having power to
14 certify payrolls to the Comptroller authorizing payments of
15 salary and wages against such appropriations as are made by
16 the General Assembly from any State fund, or against trust
17 funds held by the State Treasurer and includes boards of
18 trustees of the retirement systems created by Articles 2, 14,
19 15, 16 and 18 of the Illinois Pension Code. "Department"
20 also includes the Illinois Comprehensive Health Insurance
21 Board, the Board of Examiners established under the Illinois
22 Public Accounting Act, and the Illinois Rural Bond Bank.
23 (h) "Dependent", when the term is used in the context of
24 the health and life plan, means a member's spouse and any
25 unmarried child (1) from birth to age 19 including an adopted
26 child, a child who lives with the member from the time of the
27 filing of a petition for adoption until entry of an order of
28 adoption, a stepchild or recognized child who lives with the
29 member in a parent-child relationship, or a child who lives
30 with the member if such member is a court appointed guardian
31 of the child, or (2) age 19 to 23 enrolled as a full-time
32 student in any accredited school, financially dependent upon
33 the member, and eligible as a dependent for Illinois State
34 income tax purposes, or (3) age 19 or over who is mentally or
SB3 Re-enrolled -5- SRS90S0002PDbm
1 physically handicapped as defined in the Illinois Insurance
2 Code. For the health plan only, the term "dependent" also
3 includes any person enrolled prior to the effective date of
4 this Section who is dependent upon the member to the extent
5 that the member may claim such person as a dependent for
6 Illinois State income tax deduction purposes; no other such
7 person may be enrolled.
8 (i) "Director" means the Director of the Illinois
9 Department of Central Management Services.
10 (j) "Eligibility period" means the period of time a
11 member has to elect enrollment in programs or to select
12 benefits without regard to age, sex or health.
13 (k) "Employee" means and includes each officer or
14 employee in the service of a department who (1) receives his
15 compensation for service rendered to the department on a
16 warrant issued pursuant to a payroll certified by a
17 department or on a warrant or check issued and drawn by a
18 department upon a trust, federal or other fund or on a
19 warrant issued pursuant to a payroll certified by an elected
20 or duly appointed officer of the State or who receives
21 payment of the performance of personal services on a warrant
22 issued pursuant to a payroll certified by a Department and
23 drawn by the Comptroller upon the State Treasurer against
24 appropriations made by the General Assembly from any fund or
25 against trust funds held by the State Treasurer, and (2) is
26 employed full-time or part-time in a position normally
27 requiring actual performance of duty during not less than 1/2
28 of a normal work period, as established by the Director in
29 cooperation with each department, except that persons elected
30 by popular vote will be considered employees during the
31 entire term for which they are elected regardless of hours
32 devoted to the service of the State, and (3) except that
33 "employee" does not include any person who is not eligible by
34 reason of such person's employment to participate in one of
SB3 Re-enrolled -6- SRS90S0002PDbm
1 the State retirement systems under Articles 2, 14, 15 (either
2 the regular Article 15 system or the optional retirement
3 program established under Section 15-158.2) or 18, or under
4 paragraph (2), (3), or (5) (b) or (c) of Section 16-106, of
5 the Illinois Pension Code, but such term does include persons
6 who are employed during the 6 month qualifying period under
7 Article 14 of the Illinois Pension Code. Such term also
8 includes any person who (1) after January 1, 1966, is
9 receiving ordinary or accidental disability benefits under
10 Articles 2, 14, 15 (including ordinary or accidental
11 disability benefits under the optional retirement program
12 established under Section 15-158.2), paragraphs (2), (3), or
13 (5) (b) or (c) of Section 16-106, or Article 18 of the
14 Illinois Pension Code, for disability incurred after January
15 1, 1966, (2) receives total permanent or total temporary
16 disability under the Workers' Compensation Act or
17 Occupational Disease Act as a result of injuries sustained or
18 illness contracted in the course of employment with the State
19 of Illinois, or (3) is not otherwise covered under this Act
20 and has retired as a participating member under Article 2 of
21 the Illinois Pension Code but is ineligible for the
22 retirement annuity under Section 2-119 of the Illinois
23 Pension Code. However, a person who satisfies the criteria
24 of the foregoing definition of "employee" except that such
25 person is made ineligible to participate in the State
26 Universities Retirement System by clause (4) of subsection
27 (a) of Section 15-107 of the Illinois Pension Code is also an
28 "employee" for the purposes of this Act. "Employee" also
29 includes any person receiving or eligible for benefits under
30 a sick pay plan established in accordance with Section 36 of
31 the State Finance Act. "Employee" also includes each officer
32 or employee in the service of a qualified local government,
33 including persons appointed as trustees of sanitary districts
34 regardless of hours devoted to the service of the sanitary
SB3 Re-enrolled -7- SRS90S0002PDbm
1 district, and each employee in the service of a qualified
2 rehabilitation facility and each full-time employee in the
3 service of a qualified domestic violence shelter or service,
4 as determined according to rules promulgated by the Director.
5 (l) "Member" means an employee, annuitant, retired
6 employee or survivor.
7 (m) "Optional coverages or benefits" means those
8 coverages or benefits available to the member on his or her
9 voluntary election, and at his or her own expense.
10 (n) "Program" means the group life insurance, health
11 benefits and other employee benefits designed and contracted
12 for by the Director under this Act.
13 (o) "Health plan" means a self-insured health insurance
14 program offered by the State of Illinois for the purposes of
15 benefiting employees by means of providing, among others,
16 wellness programs, utilization reviews, second opinions and
17 medical fee reviews, as well as for paying for hospital and
18 medical care up to the maximum coverage provided by the plan,
19 to its members and their dependents.
20 (p) "Retired employee" means any person who would be an
21 annuitant as that term is defined herein but for the fact
22 that such person retired prior to January 1, 1966. Such term
23 also includes any person formerly employed by the University
24 of Illinois in the Cooperative Extension Service who would be
25 an annuitant but for the fact that such person was made
26 ineligible to participate in the State Universities
27 Retirement System by clause (4) of subsection (a) of Section
28 15-107 of the Illinois Pension Code.
29 (p-6) "New SURS retired employee" means a person who, on
30 or after January 1, 1998, becomes a retired employee, as
31 defined in subsection (p), by virtue of being a person
32 formerly employed by the University of Illinois in the
33 Cooperative Extension Service who would be an annuitant but
34 for the fact that he or she was made ineligible to
SB3 Re-enrolled -8- SRS90S0002PDbm
1 participate in the State Universities Retirement System by
2 clause (4) of subsection (a) of Section 15-107 of the
3 Illinois Pension Code, and who is eligible to participate in
4 the basic program of group health benefits provided for
5 retired employees under this Act.
6 (q) "Survivor" means a person receiving an annuity as a
7 survivor of an employee or of an annuitant. "Survivor" also
8 includes: (1) the surviving dependent of a person who
9 satisfies the definition of "employee" except that such
10 person is made ineligible to participate in the State
11 Universities Retirement System by clause (4) of subsection
12 (a) of Section 15-107 of the Illinois Pension Code; and (2)
13 the surviving dependent of any person formerly employed by
14 the University of Illinois in the Cooperative Extension
15 Service who would be an annuitant except for the fact that
16 such person was made ineligible to participate in the State
17 Universities Retirement System by clause (4) of subsection
18 (a) of Section 15-107 of the Illinois Pension Code.
19 (q-5) "New SERS survivor" means a survivor, as defined
20 in subsection (q), whose annuity is paid under Article 14 of
21 the Illinois Pension Code and is based on the death of (i) an
22 employee whose death occurs on or after January 1, 1998, or
23 (ii) a new SERS annuitant as defined in subsection (b-5).
24 (q-6) "New SURS survivor" means a survivor, as defined
25 in subsection (q), whose annuity is paid under Article 15 of
26 the Illinois Pension Code and is based on the death of (i) an
27 employee whose death occurs on or after January 1, 1998, (ii)
28 a new SURS annuitant as defined in subsection (b-6), or (iii)
29 a new SURS retired employee as defined in subsection (p-6).
30 (q-7) "New TRS State survivor" means a survivor, as
31 defined in subsection (q), whose annuity is paid under
32 Article 16 of the Illinois Pension Code and is based on the
33 death of (i) an employee who is a teacher as defined in
34 paragraph (2), (3), or (5) of Section 16-106 of that Code and
SB3 Re-enrolled -9- SRS90S0002PDbm
1 whose death occurs on or after July 1, 1998, or (ii) a new
2 TRS State annuitant as defined in subsection (b-7).
3 (r) "Medical services" means the services provided
4 within the scope of their licenses by practitioners in all
5 categories licensed under the Medical Practice Act of 1987.
6 (s) "Unit of local government" means any county,
7 municipality, township, school district, special district or
8 other unit, designated as a unit of local government by law,
9 which exercises limited governmental powers or powers in
10 respect to limited governmental subjects, any not-for-profit
11 association with a membership that primarily includes
12 townships and township officials, that has duties that
13 include provision of research service, dissemination of
14 information, and other acts for the purpose of improving
15 township government, and that is funded wholly or partly in
16 accordance with Section 85-15 of the Township Code; any
17 not-for-profit corporation or association, with a membership
18 consisting primarily of municipalities, that operates its own
19 utility system, and provides research, training,
20 dissemination of information, or other acts to promote
21 cooperation between and among municipalities that provide
22 utility services and for the advancement of the goals and
23 purposes of its membership; and the Illinois Association of
24 Park Districts. "Qualified local government" means a unit of
25 local government approved by the Director and participating
26 in a program created under subsection (i) of Section 10 of
27 this Act.
28 (t) "Qualified rehabilitation facility" means any
29 not-for-profit organization that is accredited by the
30 Commission on Accreditation of Rehabilitation Facilities or
31 certified by the Department of Human Services (as successor
32 to the Department of Mental Health and Developmental
33 Disabilities) to provide services to persons with
34 disabilities and which receives funds from the State of
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1 Illinois for providing those services, approved by the
2 Director and participating in a program created under
3 subsection (j) of Section 10 of this Act.
4 (u) "Qualified domestic violence shelter or service"
5 means any Illinois domestic violence shelter or service and
6 its administrative offices funded by the Department of Human
7 Services (as successor to the Illinois Department of Public
8 Aid), approved by the Director and participating in a program
9 created under subsection (k) of Section 10.
10 (v) "TRS benefit recipient" means a person who:
11 (1) is not a "member" as defined in this Section;
12 and
13 (2) is receiving a monthly benefit or retirement
14 annuity under Article 16 of the Illinois Pension Code;
15 and
16 (3) either (i) has at least 8 years of creditable
17 service under Article 16 of the Illinois Pension Code, or
18 (ii) was enrolled in the health insurance program offered
19 under that Article on January 1, 1996, or (iii) is the
20 survivor of a benefit recipient who had at least 8 years
21 of creditable service under Article 16 of the Illinois
22 Pension Code or was enrolled in the health insurance
23 program offered under that Article on the effective date
24 of this amendatory Act of 1995, or (iv) is a recipient or
25 survivor of a recipient of a disability benefit under
26 Article 16 of the Illinois Pension Code.
27 (w) "TRS dependent beneficiary" means a person who:
28 (1) is not a "member" or "dependent" as defined in
29 this Section; and
30 (2) is a TRS benefit recipient's: (A) spouse, (B)
31 dependent parent who is receiving at least half of his or
32 her support from the TRS benefit recipient, or (C)
33 unmarried natural or adopted child who is (i) under age
34 19, or (ii) enrolled as a full-time student in an
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1 accredited school, financially dependent upon the TRS
2 benefit recipient, eligible as a dependent for Illinois
3 State income tax purposes, and either is under age 24 or
4 was, on January 1, 1996, participating as a dependent
5 beneficiary in the health insurance program offered under
6 Article 16 of the Illinois Pension Code, or (iii) age 19
7 or over who is mentally or physically handicapped as
8 defined in the Illinois Insurance Code.
9 (x) "Military leave with pay and benefits" refers to
10 individuals in basic training for reserves, special/advanced
11 training, annual training, emergency call up, or activation
12 by the President of the United States with approved pay and
13 benefits.
14 (y) "Military leave without pay and benefits" refers to
15 individuals who enlist for active duty in a regular component
16 of the U.S. Armed Forces or other duty not specified or
17 authorized under military leave with pay and benefits.
18 (z) "Community college benefit recipient" means a person
19 who:
20 (1) is not a "member" as defined in this Section;
21 and
22 (2) is receiving a monthly survivor's annuity or
23 retirement annuity under Article 15 of the Illinois
24 Pension Code; and
25 (3) either (i) was a full-time employee of a
26 community college district or an association of community
27 college boards created under the Public Community College
28 Act (other than an employee whose last employer under
29 Article 15 of the Illinois Pension Code was a community
30 college district subject to Article VII of the Public
31 Community College Act) and was eligible to participate in
32 a group health benefit plan as an employee during the
33 time of employment with a community college district
34 (other than a community college district subject to
SB3 Re-enrolled -12- SRS90S0002PDbm
1 Article VII of the Public Community College Act) or an
2 association of community college boards, or (ii) is the
3 survivor of a person described in item (i).
4 (aa) "Community college dependent beneficiary" means a
5 person who:
6 (1) is not a "member" or "dependent" as defined in
7 this Section; and
8 (2) is a community college benefit recipient's: (A)
9 spouse, (B) dependent parent who is receiving at least
10 half of his or her support from the community college
11 benefit recipient, or (C) unmarried natural or adopted
12 child who is (i) under age 19, or (ii) enrolled as a
13 full-time student in an accredited school, financially
14 dependent upon the community college benefit recipient,
15 eligible as a dependent for Illinois State income tax
16 purposes and under age 23, or (iii) age 19 or over and
17 mentally or physically handicapped as defined in the
18 Illinois Insurance Code.
19 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
20 89-76, eff. 7-1-95; 89-324, eff. 8-13-95; 89-430, eff.
21 12-15-95; 89-502, eff. 7-1-96; 89-507, eff. 7-1-97; 89-628,
22 eff. 8-9-96; 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
23 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97;
24 revised 10-13-97.)
25 (5 ILCS 375/10) (from Ch. 127, par. 530)
26 Sec. 10. Payments by State; premiums.
27 (a) The State shall pay the cost of basic
28 non-contributory group life insurance and, subject to member
29 paid contributions set by the Department or required by this
30 Section, the basic program of group health benefits on each
31 eligible member, except a member, not otherwise covered by
32 this Act, who has retired as a participating member under
33 Article 2 of the Illinois Pension Code but is ineligible for
SB3 Re-enrolled -13- SRS90S0002PDbm
1 the retirement annuity under Section 2-119 of the Illinois
2 Pension Code, and part of each eligible member's and retired
3 member's premiums for health insurance coverage for enrolled
4 dependents as provided by Section 9. The State shall pay the
5 cost of the basic program of group health benefits only after
6 benefits are reduced by the amount of benefits covered by
7 Medicare for all retired members and retired dependents aged
8 65 years or older who are entitled to benefits under Social
9 Security or the Railroad Retirement system or who had
10 sufficient Medicare-covered government employment except that
11 such reduction in benefits shall apply only to those retired
12 members or retired dependents who (1) first become eligible
13 for such Medicare coverage on or after July 1, 1992; or (2)
14 remain eligible for, but no longer receive Medicare coverage
15 which they had been receiving on or after July 1, 1992. The
16 Department may determine the aggregate level of the State's
17 contribution on the basis of actual cost of medical services
18 adjusted for age, sex or geographic or other demographic
19 characteristics which affect the costs of such programs.
20 (a-1) Beginning January 1, 1998, for each person who
21 becomes a new SERS annuitant and participates in the basic
22 program of group health benefits, the State shall contribute
23 toward the cost of the annuitant's coverage under the basic
24 program of group health benefits an amount equal to 5% of
25 that cost for each full year of creditable service upon which
26 the annuitant's retirement annuity is based, up to a maximum
27 of 100% for an annuitant with 20 or more years of creditable
28 service. The remainder of the cost of a new SERS annuitant's
29 coverage under the basic program of group health benefits
30 shall be the responsibility of the annuitant.
31 (a-2) Beginning January 1, 1998, for each person who
32 becomes a new SERS survivor and participates in the basic
33 program of group health benefits, the State shall contribute
34 toward the cost of the survivor's coverage under the basic
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1 program of group health benefits an amount equal to 5% of
2 that cost for each full year of the deceased employee's or
3 deceased annuitant's creditable service in the State
4 Employees' Retirement System of Illinois on the date of
5 death, up to a maximum of 100% for a survivor of an employee
6 or annuitant with 20 or more years of creditable service.
7 The remainder of the cost of the new SERS survivor's coverage
8 under the basic program of group health benefits shall be the
9 responsibility of the survivor.
10 (a-3) Beginning January 1, 1998, for each person who
11 becomes a new SURS annuitant and participates in the basic
12 program of group health benefits, the State shall contribute
13 toward the cost of the annuitant's coverage under the basic
14 program of group health benefits an amount equal to 5% of
15 that cost for each full year of creditable service upon which
16 the annuitant's retirement annuity is based, up to a maximum
17 of 100% for an annuitant with 20 or more years of creditable
18 service. The remainder of the cost of a new SURS annuitant's
19 coverage under the basic program of group health benefits
20 shall be the responsibility of the annuitant.
21 (a-4) Beginning January 1, 1998, for each person who
22 becomes a new SURS retired employee and participates in the
23 basic program of group health benefits, the State shall
24 contribute toward the cost of the retired employee's coverage
25 under the basic program of group health benefits an amount
26 equal to 5% of that cost for each full year that the retired
27 employee was an employee as defined in Section 3, up to a
28 maximum of 100% for a retired employee who was an employee
29 for 20 or more years. The remainder of the cost of a new
30 SURS retired employee's coverage under the basic program of
31 group health benefits shall be the responsibility of the
32 retired employee.
33 (a-5) Beginning January 1, 1998, for each person who
34 becomes a new SURS survivor and participates in the basic
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1 program of group health benefits, the State shall contribute
2 toward the cost of the survivor's coverage under the basic
3 program of group health benefits an amount equal to 5% of
4 that cost for each full year of the deceased employee's or
5 deceased annuitant's creditable service in the State
6 Universities Employees' Retirement System of Illinois on the
7 date of death, up to a maximum of 100% for a survivor of an
8 employee or annuitant with 20 or more years of creditable
9 service. The remainder of the cost of the new SURS
10 survivor's coverage under the basic program of group health
11 benefits shall be the responsibility of the survivor.
12 (a-6) Beginning July 1, 1998, for each person who
13 becomes a new TRS State annuitant and participates in the
14 basic program of group health benefits, the State shall
15 contribute toward the cost of the annuitant's coverage under
16 the basic program of group health benefits an amount equal to
17 5% of that cost for each full year of creditable service as a
18 teacher as defined in paragraph (2), (3), or (5) of Section
19 16-106 of the Illinois Pension Code upon which the
20 annuitant's retirement annuity is based, up to a maximum of
21 100% for an annuitant with 20 or more years of such
22 creditable service. The remainder of the cost of a new TRS
23 State annuitant's coverage under the basic program of group
24 health benefits shall be the responsibility of the annuitant.
25 (a-7) Beginning July 1, 1998, for each person who
26 becomes a new TRS State survivor and participates in the
27 basic program of group health benefits, the State shall
28 contribute toward the cost of the survivor's coverage under
29 the basic program of group health benefits an amount equal to
30 5% of that cost for each full year of the deceased employee's
31 or deceased annuitant's creditable service as a teacher as
32 defined in paragraph (2), (3), or (5) of Section 16-106 of
33 the Illinois Pension Code on the date of death, up to a
34 maximum of 100% for a survivor of an employee or annuitant
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1 with 20 or more years of such creditable service. The
2 remainder of the cost of the new TRS State survivor's
3 coverage under the basic program of group health benefits
4 shall be the responsibility of the survivor.
5 (a-8) (a-6) A new SERS annuitant, new SERS survivor, new
6 SURS annuitant, new SURS retired employee, or new SURS
7 survivor, new TRS State annuitant, or new TRS State survivor
8 may waive or terminate coverage in the program of group
9 health benefits. Any such annuitant, survivor, or retired
10 employee who has waived or terminated coverage may enroll or
11 re-enroll in the program of group health benefits only during
12 the annual benefit choice period, as determined by the
13 Director; except that in the event of termination of coverage
14 due to nonpayment of premiums, the annuitant, survivor, or
15 retired employee may not re-enroll in the program.
16 (a-9) (a-7) No later than May 1 of each calendar year,
17 the Director of Central Management Services shall certify in
18 writing to the Executive Secretary of the State Employee's
19 Retirement System the amounts of the Medicare supplement
20 health care premiums and the amounts of the health care
21 premiums for all other retirees who are not Medicare
22 eligible.
23 A separate calculation of the premiums based upon the
24 actual cost of each health care plan shall be so certified.
25 The Director of Central Management Services shall provide
26 to the Executive Secretary of the State Employee's Retirement
27 System such information, statistics, and other data as he or
28 she he/she may require to review the premium amounts
29 certified by the Director of Central Management Services.
30 (b) State employees who become eligible for this program
31 on or after January 1, 1980 in positions, normally requiring
32 actual performance of duty not less than 1/2 of a normal work
33 period but not equal to that of a normal work period, shall
34 be given the option of participating in the available
SB3 Re-enrolled -17- SRS90S0002PDbm
1 program. If the employee elects coverage, the State shall
2 contribute on behalf of such employee to the cost of the
3 employee's benefit and any applicable dependent supplement,
4 that sum which bears the same percentage as that percentage
5 of time the employee regularly works when compared to normal
6 work period.
7 (c) The basic non-contributory coverage from the basic
8 program of group health benefits shall be continued for each
9 employee not in pay status or on active service by reason of
10 (1) leave of absence due to illness or injury, (2) authorized
11 educational leave of absence or sabbatical leave, or (3)
12 military leave with pay and benefits. This coverage shall
13 continue until expiration of authorized leave and return to
14 active service, but not to exceed 24 months for leaves under
15 item (1) or (2). This 24-month limitation and the requirement
16 of returning to active service shall not apply to persons
17 receiving ordinary or accidental disability benefits or
18 retirement benefits through the appropriate State retirement
19 system or benefits under the Workers' Compensation or
20 Occupational Disease Act.
21 (d) The basic group life insurance coverage shall
22 continue, with full State contribution, where such person is
23 (1) absent from active service by reason of disability
24 arising from any cause other than self-inflicted, (2) on
25 authorized educational leave of absence or sabbatical leave,
26 or (3) on military leave with pay and benefits.
27 (e) Where the person is in non-pay status for a period
28 in excess of 30 days or on leave of absence, other than by
29 reason of disability, educational or sabbatical leave, or
30 military leave with pay and benefits, such person may
31 continue coverage only by making personal payment equal to
32 the amount normally contributed by the State on such person's
33 behalf. Such payments and coverage may be continued: (1)
34 until such time as the person returns to a status eligible
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1 for coverage at State expense, but not to exceed 24 months,
2 (2) until such person's employment or annuitant status with
3 the State is terminated, or (3) for a maximum period of 4
4 years for members on military leave with pay and benefits and
5 military leave without pay and benefits (exclusive of any
6 additional service imposed pursuant to law).
7 (f) The Department shall establish by rule the extent
8 to which other employee benefits will continue for persons in
9 non-pay status or who are not in active service.
10 (g) The State shall not pay the cost of the basic
11 non-contributory group life insurance, program of health
12 benefits and other employee benefits for members who are
13 survivors as defined by paragraphs (1) and (2) of subsection
14 (q) of Section 3 of this Act. The costs of benefits for
15 these survivors shall be paid by the survivors or by the
16 University of Illinois Cooperative Extension Service, or any
17 combination thereof.
18 (h) Those persons occupying positions with any
19 department as a result of emergency appointments pursuant to
20 Section 8b.8 of the Personnel Code who are not considered
21 employees under this Act shall be given the option of
22 participating in the programs of group life insurance, health
23 benefits and other employee benefits. Such persons electing
24 coverage may participate only by making payment equal to the
25 amount normally contributed by the State for similarly
26 situated employees. Such amounts shall be determined by the
27 Director. Such payments and coverage may be continued until
28 such time as the person becomes an employee pursuant to this
29 Act or such person's appointment is terminated.
30 (i) Any unit of local government within the State of
31 Illinois may apply to the Director to have its employees,
32 annuitants, and their dependents provided group health
33 coverage under this Act on a non-insured basis. To
34 participate, a unit of local government must agree to enroll
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1 all of its employees, who may select coverage under either
2 the State group health insurance plan or a health maintenance
3 organization that has contracted with the State to be
4 available as a health care provider for employees as defined
5 in this Act. A unit of local government must remit the
6 entire cost of providing coverage under the State group
7 health insurance plan or, for coverage under a health
8 maintenance organization, an amount determined by the
9 Director based on an analysis of the sex, age, geographic
10 location, or other relevant demographic variables for its
11 employees, except that the unit of local government shall not
12 be required to enroll those of its employees who are covered
13 spouses or dependents under this plan or another group policy
14 or plan providing health benefits as long as (1) an
15 appropriate official from the unit of local government
16 attests that each employee not enrolled is a covered spouse
17 or dependent under this plan or another group policy or plan,
18 and (2) at least 85% of the employees are enrolled and the
19 unit of local government remits the entire cost of providing
20 coverage to those employees. Employees of a participating
21 unit of local government who are not enrolled due to coverage
22 under another group health policy or plan may enroll at a
23 later date subject to submission of satisfactory evidence of
24 insurability and provided that no benefits shall be payable
25 for services incurred during the first 6 months of coverage
26 to the extent the services are in connection with any
27 pre-existing condition. A participating unit of local
28 government may also elect to cover its annuitants. Dependent
29 coverage shall be offered on an optional basis, with the
30 costs paid by the unit of local government, its employees, or
31 some combination of the two as determined by the unit of
32 local government. The unit of local government shall be
33 responsible for timely collection and transmission of
34 dependent premiums.
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1 The Director shall annually determine monthly rates of
2 payment, subject to the following constraints:
3 (1) In the first year of coverage, the rates shall
4 be equal to the amount normally charged to State
5 employees for elected optional coverages or for enrolled
6 dependents coverages or other contributory coverages, or
7 contributed by the State for basic insurance coverages on
8 behalf of its employees, adjusted for differences between
9 State employees and employees of the local government in
10 age, sex, geographic location or other relevant
11 demographic variables, plus an amount sufficient to pay
12 for the additional administrative costs of providing
13 coverage to employees of the unit of local government and
14 their dependents.
15 (2) In subsequent years, a further adjustment shall
16 be made to reflect the actual prior years' claims
17 experience of the employees of the unit of local
18 government.
19 In the case of coverage of local government employees
20 under a health maintenance organization, the Director shall
21 annually determine for each participating unit of local
22 government the maximum monthly amount the unit may contribute
23 toward that coverage, based on an analysis of (i) the age,
24 sex, geographic location, and other relevant demographic
25 variables of the unit's employees and (ii) the cost to cover
26 those employees under the State group health insurance plan.
27 The Director may similarly determine the maximum monthly
28 amount each unit of local government may contribute toward
29 coverage of its employees' dependents under a health
30 maintenance organization.
31 Monthly payments by the unit of local government or its
32 employees for group health insurance or health maintenance
33 organization coverage shall be deposited in the Local
34 Government Health Insurance Reserve Fund. The Local
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1 Government Health Insurance Reserve Fund shall be a
2 continuing fund not subject to fiscal year limitations. All
3 expenditures from this fund shall be used for payments for
4 health care benefits for local government and rehabilitation
5 facility employees, annuitants, and dependents, and to
6 reimburse the Department or its administrative service
7 organization for all expenses incurred in the administration
8 of benefits. No other State funds may be used for these
9 purposes.
10 A local government employer's participation or desire to
11 participate in a program created under this subsection shall
12 not limit that employer's duty to bargain with the
13 representative of any collective bargaining unit of its
14 employees.
15 (j) Any rehabilitation facility within the State of
16 Illinois may apply to the Director to have its employees,
17 annuitants, and their dependents provided group health
18 coverage under this Act on a non-insured basis. To
19 participate, a rehabilitation facility must agree to enroll
20 all of its employees and remit the entire cost of providing
21 such coverage for its employees, except that the
22 rehabilitation facility shall not be required to enroll those
23 of its employees who are covered spouses or dependents under
24 this plan or another group policy or plan providing health
25 benefits as long as (1) an appropriate official from the
26 rehabilitation facility attests that each employee not
27 enrolled is a covered spouse or dependent under this plan or
28 another group policy or plan, and (2) at least 85% of the
29 employees are enrolled and the rehabilitation facility remits
30 the entire cost of providing coverage to those employees.
31 Employees of a participating rehabilitation facility who are
32 not enrolled due to coverage under another group health
33 policy or plan may enroll at a later date subject to
34 submission of satisfactory evidence of insurability and
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1 provided that no benefits shall be payable for services
2 incurred during the first 6 months of coverage to the extent
3 the services are in connection with any pre-existing
4 condition. A participating rehabilitation facility may also
5 elect to cover its annuitants. Dependent coverage shall be
6 offered on an optional basis, with the costs paid by the
7 rehabilitation facility, its employees, or some combination
8 of the 2 as determined by the rehabilitation facility. The
9 rehabilitation facility shall be responsible for timely
10 collection and transmission of dependent premiums.
11 The Director shall annually determine quarterly rates of
12 payment, subject to the following constraints:
13 (1) In the first year of coverage, the rates shall
14 be equal to the amount normally charged to State
15 employees for elected optional coverages or for enrolled
16 dependents coverages or other contributory coverages on
17 behalf of its employees, adjusted for differences between
18 State employees and employees of the rehabilitation
19 facility in age, sex, geographic location or other
20 relevant demographic variables, plus an amount sufficient
21 to pay for the additional administrative costs of
22 providing coverage to employees of the rehabilitation
23 facility and their dependents.
24 (2) In subsequent years, a further adjustment shall
25 be made to reflect the actual prior years' claims
26 experience of the employees of the rehabilitation
27 facility.
28 Monthly payments by the rehabilitation facility or its
29 employees for group health insurance shall be deposited in
30 the Local Government Health Insurance Reserve Fund.
31 (k) Any domestic violence shelter or service within the
32 State of Illinois may apply to the Director to have its
33 employees, annuitants, and their dependents provided group
34 health coverage under this Act on a non-insured basis. To
SB3 Re-enrolled -23- SRS90S0002PDbm
1 participate, a domestic violence shelter or service must
2 agree to enroll all of its employees and pay the entire cost
3 of providing such coverage for its employees. A
4 participating domestic violence shelter may also elect to
5 cover its annuitants. Dependent coverage shall be offered on
6 an optional basis, with employees, or some combination of the
7 2 as determined by the domestic violence shelter or service.
8 The domestic violence shelter or service shall be responsible
9 for timely collection and transmission of dependent premiums.
10 The Director shall annually determine quarterly rates of
11 payment, subject to the following constraints:
12 (1) In the first year of coverage, the rates shall
13 be equal to the amount normally charged to State
14 employees for elected optional coverages or for enrolled
15 dependents coverages or other contributory coverages on
16 behalf of its employees, adjusted for differences between
17 State employees and employees of the domestic violence
18 shelter or service in age, sex, geographic location or
19 other relevant demographic variables, plus an amount
20 sufficient to pay for the additional administrative costs
21 of providing coverage to employees of the domestic
22 violence shelter or service and their dependents.
23 (2) In subsequent years, a further adjustment shall
24 be made to reflect the actual prior years' claims
25 experience of the employees of the domestic violence
26 shelter or service.
27 (3) In no case shall the rate be less than the
28 amount normally charged to State employees or contributed
29 by the State on behalf of its employees.
30 Monthly payments by the domestic violence shelter or
31 service or its employees for group health insurance shall be
32 deposited in the Local Government Health Insurance Reserve
33 Fund.
34 (l) A public community college or entity organized
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1 pursuant to the Public Community College Act may apply to the
2 Director initially to have only annuitants not covered prior
3 to July 1, 1992 by the district's health plan provided health
4 coverage under this Act on a non-insured basis. The
5 community college must execute a 2-year contract to
6 participate in the Local Government Health Plan. Those
7 annuitants enrolled initially under this contract shall have
8 no benefits payable for services incurred during the first 6
9 months of coverage to the extent the services are in
10 connection with any pre-existing condition. Any annuitant
11 who may enroll after this initial enrollment period shall be
12 subject to submission of satisfactory evidence of
13 insurability and to the pre-existing conditions limitation.
14 The Director shall annually determine monthly rates of
15 payment subject to the following constraints: for those
16 community colleges with annuitants only enrolled, first year
17 rates shall be equal to the average cost to cover claims for
18 a State member adjusted for demographics, Medicare
19 participation, and other factors; and in the second year, a
20 further adjustment of rates shall be made to reflect the
21 actual first year's claims experience of the covered
22 annuitants.
23 (m) The Director shall adopt any rules deemed necessary
24 for implementation of this amendatory Act of 1989 (Public Act
25 86-978).
26 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
27 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
28 7-7-97.)
29 Section 10. The Illinois Pension Code is amended by
30 changing Sections 16-132, 16-133, 16-133.2, 16-152, and
31 16-158 and adding Section 16-129.1 as follows:
32 (40 ILCS 5/16-129.1 new)
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1 Sec. 16-129.1. Optional increase in retirement annuity.
2 (a) A member of the System may qualify for the augmented
3 rate under subdivision (a)(B)(1) of Section 16-133 for all
4 years of creditable service earned before July 1, 1998 by
5 making the optional contribution specified in subsection (b).
6 A member may not elect to qualify for the augmented rate for
7 only a portion of his or her creditable service earned before
8 July 1, 1998.
9 (b) The contribution shall be an amount equal to 1.0% of
10 the member's highest salary rate in the 4 consecutive school
11 years immediately prior to but not including the school year
12 in which the application occurs, multiplied by the number of
13 years of creditable service earned by the member before July
14 1, 1998 or 20, whichever is less. This contribution shall be
15 reduced by 1.0% of that salary rate for every 3 full years of
16 creditable service earned by the member after June 30, 1998.
17 The contribution shall not in any event exceed 20% of that
18 salary rate.
19 The member shall pay to the System the amount of the
20 contribution as calculated at the time of application under
21 this Section. The amount of the contribution determined
22 under this subsection shall be recalculated at the time of
23 retirement, and if the System determines that the amount paid
24 by the member exceeds the recalculated amount, the System
25 shall refund the difference to the member with regular
26 interest from the date of payment to the date of refund.
27 The contribution required by this subsection shall be
28 paid in one of the following ways or in a combination of the
29 following ways that does not extend over more than 5 years:
30 (i) in a lump sum on or before the date of
31 retirement;
32 (ii) in substantially equal installments over a
33 period of time not to exceed 5 years, as a deduction from
34 salary in accordance with subsection (b) of Section
SB3 Re-enrolled -26- SRS90S0002PDbm
1 16-154;
2 (iii) if the member becomes an annuitant before
3 June 30, 2003, in substantially equal monthly
4 installments over a 24-month period, by reducing the
5 annuitant's monthly benefit over a 24-month period by the
6 amount of the otherwise applicable contribution. For
7 federal and Illinois tax purposes, the monthly amount by
8 which the annuitant's benefit is reduced shall not be
9 treated as a contribution by the annuitant, but rather as
10 a reduction of the annuitant's monthly benefit.
11 (c) If the member fails to make the full contribution
12 under this Section in a timely fashion, the payments made
13 under this Section shall be refunded to the member, without
14 interest. If the member dies before making the full
15 contribution, the payments made under this Section, together
16 with regular interest thereon, shall be refunded to the
17 member's designated beneficiary for benefits under Section
18 16-138.
19 (d) For purposes of this Section and subdivision
20 (a)(B)(1) of Section 16-133, optional creditable service
21 established by a member shall be deemed to have been earned
22 at the time of the employment or other qualifying event upon
23 which the service is based, rather than at the time the
24 credit was established in this System.
25 (e) The contributions required under this Section are
26 the responsibility of the teacher and not the teacher's
27 employer. However, an employer of teachers may, after the
28 effective date of this amendatory Act of 1998, specifically
29 agree, through collective bargaining or otherwise, to make
30 the contributions required by this Section on behalf of those
31 teachers.
32 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
33 Sec. 16-132. Retirement annuity eligibility. A member
SB3 Re-enrolled -27- SRS90S0002PDbm
1 who has at least 20 years of creditable service is entitled
2 to a retirement annuity upon or after attainment of age 55.
3 A member who has at least 10 but less than 20 years of
4 creditable service is entitled to a retirement annuity upon
5 or after attainment of age 60. A member who has at least 5
6 but less than 10 years of creditable service is entitled to a
7 retirement annuity upon or after attainment of age 62. A
8 member who is eligible to receive a retirement annuity of at
9 least 74.6% of final average salary and will attain age 55 on
10 or before December 31 during the year which commences on July
11 1 shall be deemed to attain age 55 on the preceding June 1.
12 A member meeting the above eligibility conditions is
13 entitled to a retirement annuity upon written application to
14 the board setting forth the date the member wishes the
15 retirement annuity to commence. However, the effective date
16 of the retirement annuity shall be no earlier than the day
17 following the last day of creditable service, regardless of
18 the date of official termination of employment. To be
19 eligible for a retirement annuity, a member shall not be
20 employed as a teacher in the schools included under this
21 System or under Article 17, unless the member is disabled (in
22 which event, eligibility for salary must cease), or unless
23 the System is required by federal law to commence payment due
24 to the member's age; the changes to this sentence made by
25 this amendatory Act of 1991 shall apply without regard to
26 whether the member terminated employment before or after its
27 effective date.
28 (Source: P.A. 85-1008; 86-1488.)
29 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
30 Sec. 16-133. Retirement annuity; amount.
31 (a) The amount of the retirement annuity shall be the
32 larger of the amounts determined under paragraphs (A) and (B)
33 below:
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1 (A) An amount consisting of the sum of the
2 following:
3 (1) An amount that can be provided on an
4 actuarially equivalent basis by the member's
5 accumulated contributions at the time of retirement;
6 and
7 (2) The sum of (i) the amount that can be
8 provided on an actuarially equivalent basis by the
9 member's accumulated contributions representing
10 service prior to July 1, 1947, and (ii) the amount
11 that can be provided on an actuarially equivalent
12 basis by the amount obtained by multiplying 1.4
13 times the member's accumulated contributions
14 covering service subsequent to June 30, 1947; and
15 (3) If there is prior service, 2 times the
16 amount that would have been determined under
17 subparagraph (2) of paragraph (A) above on account
18 of contributions which would have been made during
19 the period of prior service creditable to the member
20 had the System been in operation and had the member
21 made contributions at the contribution rate in
22 effect prior to July 1, 1947.
23 (B) An amount consisting of the greater of the
24 following:
25 (1) For creditable service earned before July
26 1, 1998 that has not been augmented under Section
27 16-129.1: 1.67% of final average salary for each of
28 the first 10 years of creditable service, 1.90% of
29 final average salary for each year in excess of 10
30 but not exceeding 20, 2.10% of final average salary
31 for each year in excess of 20 but not exceeding 30,
32 and 2.30% of final average salary for each year in
33 excess of 30; and
34 For creditable service earned on or after July
SB3 Re-enrolled -29- SRS90S0002PDbm
1 1, 1998 by a member who has at least 30 years of
2 creditable service on July 1, 1998 and who does not
3 elect to augment service under Section 16-129.1:
4 2.3% of final average salary for each year of
5 creditable service earned on or after July 1, 1998;
6 and
7 For all other creditable service: 2.2% of
8 final average salary for each year of creditable
9 service; or
10 (2) 1.5% 1 1/2% of final average salary for
11 each year of creditable service plus the sum $7.50
12 for each of the first 20 years of creditable
13 service.
14 The amount of the retirement annuity determined under
15 this paragraph (B) shall be reduced by 1/2 of 1% for each
16 month that the member is less than age 60 at the time the
17 retirement annuity begins. However, this reduction shall
18 not apply (i) if the member has at least 35 years of
19 creditable service, or (ii) if the member retires on
20 account of disability under Section 16-149.2 of this
21 Article with at least 20 years of creditable service.
22 (b) For purposes of this Section, final average salary
23 shall be the average salary for the highest 4 consecutive
24 years within the last 10 years of creditable service as
25 determined under rules of the board. The minimum final
26 average salary shall be considered to be $2,400 per year.
27 In the determination of final average salary for members
28 other than elected officials and their appointees when such
29 appointees are allowed by statute, that part of a member's
30 salary for any year beginning after June 30, 1979 which
31 exceeds the member's annual full-time salary rate with the
32 same employer for the preceding year by more than 20% shall
33 be excluded.
34 (c) In determining the amount of the retirement annuity
SB3 Re-enrolled -30- SRS90S0002PDbm
1 under paragraph (B) of this Section, a fractional year shall
2 be granted proportional credit.
3 (d) The retirement annuity determined under paragraph
4 (B) of this Section shall be available only to members who
5 render teaching service after July 1, 1947 for which member
6 contributions are required, and to annuitants who re-enter
7 under the provisions of Section 16-150.
8 (e) The maximum retirement annuity provided under
9 paragraph (B) of this Section shall be 75% of final average
10 salary.
11 (f) A member retiring after the effective date of this
12 amendatory Act of 1998 shall receive a pension equal to 75%
13 of final average salary if the member is qualified to receive
14 a retirement annuity equal to at least 74.6% of final average
15 salary under this Article or as proportional annuities under
16 Article 20 of this Code.
17 (Source: P.A. 86-273; 87-794; 87-1265.)
18 (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
19 Sec. 16-133.2. Early retirement without discount. A
20 member retiring after June 1, 1980 and on or before June 30,
21 2000, and applying for a retirement annuity within 6 months
22 of the last day of teaching for which retirement
23 contributions were required, may elect at the time of
24 application for a retirement annuity, to make a one time
25 member contribution to the System and thereby avoid the
26 reduction in the retirement annuity for retirement before age
27 60 specified in paragraph (B) of Section 16-133. The
28 exercise of the election shall also obligate the last
29 employer to make a one time non-refundable contribution to
30 the System. Substitute teachers wishing to exercise this
31 election must teach 85 or more days in one school term with
32 one employer, who shall be deemed the last employer for
33 purposes of this Section. The last day of teaching with that
SB3 Re-enrolled -31- SRS90S0002PDbm
1 employer must be within 6 months of the date of application
2 for retirement. All substitute teaching credit applied
3 toward the required 85 days must be earned after June 30,
4 1990.
5 The one time member and employer contributions shall be a
6 percentage of the retiring member's highest annual salary
7 rate used in the determination of the average salary for
8 retirement annuity purposes. However, when determining the
9 one-time member and employer contributions, that part of a
10 member's salary with the same employer which exceeds the
11 annual salary rate for the preceding year by more than 20%
12 shall be excluded. The member contribution shall be at the
13 rate of 7% for the lesser of the following 2 periods: (1)
14 for each year that the member is less than age 60; or (2) for
15 each year that the member's creditable service is less than
16 35 years. If a member is at least age 55 and has at least 34
17 years of creditable service, no member contribution for the
18 early retirement option shall be required. The employer
19 contribution shall be at the rate of 20% for each year the
20 member is under age 60.
21 Upon receipt of the application and election, the System
22 shall determine the one time employee and employer
23 contributions required. The member contribution shall be
24 credited to the individual account of the member and the
25 employer contribution shall be credited to the Employer's
26 Contribution Reserve. The provisions of this Section shall
27 not be applicable until all the above outlined contributions
28 have been received by the System; however, the date such
29 contributions are received shall not be considered in
30 determining the effective date of retirement.
31 The number of members working for a single employer who
32 may retire under this Section in any year may be limited at
33 the option of the employer to a specified percentage of those
34 eligible, not less than 30%, with the right to participate to
SB3 Re-enrolled -32- SRS90S0002PDbm
1 be allocated among those applying on the basis of seniority
2 in the service of the employer.
3 (Source: P.A. 89-10, eff. 3-31-95.)
4 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
5 Sec. 16-152. Contributions by members.
6 (a) Each member shall make contributions for membership
7 service to this System as follows:
8 (1) Effective July 1, 1998 1971, contributions of 7.50%
9 6 1/2% of salary towards the cost of the retirement annuity.
10 Such contributions shall be deemed "normal contributions".
11 (2) Effective July 1, 1969, contributions of 1/2 of 1%
12 of salary toward the cost of the automatic annual increase in
13 retirement annuity provided under Section 16-133.1.
14 (3) Effective July 24, 1959, contributions of 1% of
15 salary towards the cost of survivor benefits. Such
16 contributions shall not be credited to the individual account
17 of the member and shall not be subject to refund except as
18 provided under Section 16-143.2.
19 (b) The minimum required contribution for any year of
20 full-time teaching service shall be $192.
21 (c) Contributions shall not be required of any annuitant
22 receiving a retirement annuity who is given temporary
23 employment not exceeding that permitted under Section 16-118.
24 (d) A person who (i) was a member before July 1, 1998,
25 (ii) retires with more than 34 years of creditable service,
26 and (iii) does not elect to qualify for the augmented rate
27 under Section 16-129.1 shall be entitled, at the time of
28 retirement, to receive a partial refund of contributions made
29 under this Section for service occurring after the later of
30 June 30, 1998 or attainment of 34 years of creditable
31 service, in an amount equal to 1.00% of the salary upon which
32 those contributions were based.
33 (Source: P.A. 83-1440.)
SB3 Re-enrolled -33- SRS90S0002PDbm
1 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
2 Sec. 16-158. Contributions by State and other employing
3 units.
4 (a) The State shall make contributions to the System by
5 means of appropriations from the Common School Fund and other
6 State funds of amounts which, together with other employer
7 contributions, employee contributions, investment income, and
8 other income, will be sufficient to meet the cost of
9 maintaining and administering the System on a 90% funded
10 basis in accordance with actuarial recommendations.
11 The Board shall determine the amount of State
12 contributions required for each fiscal year on the basis of
13 the actuarial tables and other assumptions adopted by the
14 Board and the recommendations of the actuary, using the
15 formula in subsection (b-3).
16 (a-1) Annually, on or before November 15, the board
17 shall certify to the Governor the amount of the required
18 State contribution for the coming fiscal year. The
19 certification shall include a copy of the actuarial
20 recommendations upon which it is based.
21 (b) Through State fiscal year 1995, the State
22 contributions shall be paid to the System in accordance with
23 Section 18-7 of the School Code.
24 (b-1) Beginning in State fiscal year 1996, on the 15th
25 day of each month, or as soon thereafter as may be
26 practicable, the Board shall submit vouchers for payment of
27 State contributions to the System, in a total monthly amount
28 of one-twelfth of the required annual State contribution
29 certified under subsection (a-1). These vouchers shall be
30 paid by the State Comptroller and Treasurer by warrants drawn
31 on the funds appropriated to the System for that fiscal year.
32 If in any month the amount remaining unexpended from all
33 other appropriations to the System for the applicable fiscal
34 year (including the appropriations to the System under
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1 Section 8.12 of the State Finance Act and Section 1 of the
2 State Pension Funds Continuing Appropriation Act) is less
3 than the amount lawfully vouchered under this subsection, the
4 difference shall be paid from the Common School Fund under
5 the continuing appropriation authority provided in Section
6 1.1 of the State Pension Funds Continuing Appropriation Act.
7 (b-2) Allocations from the Common School Fund
8 apportioned to school districts not coming under this System
9 shall not be diminished or affected by the provisions of this
10 Article.
11 (b-3) For State fiscal years 2011 through 2045, the
12 minimum contribution to the System to be made by the State
13 for each fiscal year shall be an amount determined by the
14 System to be sufficient to bring the total assets of the
15 System up to 90% of the total actuarial liabilities of the
16 System by the end of State fiscal year 2045. In making these
17 determinations, the required State contribution shall be
18 calculated each year as a level percentage of payroll over
19 the years remaining to and including fiscal year 2045 and
20 shall be determined under the projected unit credit actuarial
21 cost method.
22 For State fiscal years 1996 through 2010, the State
23 contribution to the System, as a percentage of the applicable
24 employee payroll, shall be increased in equal annual
25 increments so that by State fiscal year 2011, the State is
26 contributing at the rate required under this Section; except
27 that in the following specified State fiscal years, the State
28 contribution to the System shall not be less than the
29 following indicated percentages of the applicable employee
30 payroll, even if the indicated percentage will produce a
31 State contribution in excess of the amount otherwise required
32 under this subsection and subsection (a), and notwithstanding
33 any contrary certification made under subsection (a-1) before
34 the effective date of this amendatory Act of 1998: 10.02% in
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1 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2 2002; 12.86% in FY 2003; 13.56% in FY 2004; 14.25% in FY
3 2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY
4 2008; 17.04% in FY 2009; and 17.74% in FY 2010.
5 Beginning in State fiscal year 2046, the minimum State
6 contribution for each fiscal year shall be the amount needed
7 to maintain the total assets of the System at 90% of the
8 total actuarial liabilities of the System.
9 (c) Payment of the required State contributions and of
10 all pensions, retirement annuities, death benefits, refunds,
11 and other benefits granted under or assumed by this System,
12 and all expenses in connection with the administration and
13 operation thereof, are obligations of the State.
14 If members are paid from special trust or federal funds
15 which are administered by the employing unit, whether school
16 district or other unit, the employing unit shall pay to the
17 System from such funds the full accruing retirement costs
18 based upon that service, as determined by the System.
19 Employer contributions, based on salary paid to members from
20 federal funds, may be forwarded by the distributing agency of
21 the State of Illinois to the System prior to allocation, in
22 an amount determined in accordance with guidelines
23 established by such agency and the System.
24 (d) Effective July 1, 1986, any employer of a teacher as
25 defined in paragraph (8) of Section 16-106 shall pay the
26 employer's normal cost of benefits based upon the teacher's
27 service, in addition to employee contributions, as determined
28 by the System. Such employer contributions shall be
29 forwarded monthly in accordance with guidelines established
30 by the System.
31 However, with respect to benefits granted under Section
32 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
33 of Section 16-106, the employer's contribution shall be 12%
34 (rather than 20%) of the member's highest annual salary rate
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1 for each year of creditable service granted, and the employer
2 shall also pay the required employee contribution on behalf
3 of the teacher. For the purposes of Sections 16-133.4 and
4 16-133.5, a teacher as defined in paragraph (8) of Section
5 16-106 who is serving in that capacity while on leave of
6 absence from another employer under this Article shall not be
7 considered an employee of the employer from which the teacher
8 is on leave.
9 (e) Beginning July 1, 1998, every employer of a teacher
10 shall pay to the System an employer contribution computed as
11 follows:
12 (1) Beginning July 1, 1998 through June 30, 1999,
13 the employer contribution shall be equal to 0.3% of each
14 teacher's salary.
15 (2) Beginning July 1, 1999 and thereafter, the
16 employer contribution shall be equal to 0.58% of each
17 teacher's salary.
18 The school district or other employing unit may pay these
19 employer contributions out of any source of funding available
20 for that purpose and shall forward the contributions to the
21 System on the schedule established for the payment of member
22 contributions.
23 These employer contributions are intended to offset a
24 portion of the cost to the System of the increases in
25 retirement benefits resulting from this amendatory Act of
26 1998.
27 The additional 1% employee contribution required under
28 Section 16-152 by this amendatory Act of 1998 is the
29 responsibility of the teacher and not the teacher's employer,
30 unless the employer agrees, through collective bargaining or
31 otherwise, to make the contribution on behalf of the teacher.
32 If an employer is required by a contract in effect on May
33 1, 1998 between the employer and an employee organization to
34 pay, on behalf of all its full-time employees covered by this
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1 Article, all mandatory employee contributions required under
2 this Article, then the employer shall be excused from paying
3 the employer contribution required under this subsection (e)
4 for the balance of the term of that contract. The employer
5 and the employee organization shall jointly certify to the
6 System the existence of the contractual requirement, in such
7 form as the System may prescribe. This exclusion shall cease
8 upon the termination, extension, or renewal of the contract
9 at any time after May 1, 1998.
10 (Source: P.A. 87-1265; 88-593, eff. 8-22-94.)
11 Section 15. The Illinois Pension Code is amended by
12 changing Sections 17-116, 17-127, and 17-130 and adding
13 Sections 17-119.1, 17-127.2, and 17-130.2 as follows:
14 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
15 Sec. 17-116. Service retirement pension.
16 (a) Each teacher having 20 years of service upon
17 attainment of age 55, or who thereafter attains age 55 shall
18 be entitled to a service retirement pension upon or after
19 attainment of age 55; and each teacher in service on or after
20 July 1, 1971, with 5 or more but less than 20 years of
21 service shall be entitled to receive a service retirement
22 pension upon or after attainment of age 62. Such pension is
23 to be calculated as follows:
24 (b) Beginning as of June 25, 1971, The service
25 retirement pension for a teacher who retires on or after June
26 25, 1971 such date, at age 60 or over, shall be calculated as
27 follows:
28 (1) For creditable service earned before July 1,
29 1998 that has not been augmented under Section 17-119.1:
30 1.67% for each of the first 10 years of service; 1.90%
31 for each of the next 10 years of service; 2.10% for each
32 year of service in excess of 20 but not exceeding 30; and
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1 2.30% for each year of service in excess of 30, based
2 upon average salary as herein defined.
3 (2) For creditable service earned on or after July
4 1, 1998 by a member who has at least 30 years of
5 creditable service on July 1, 1998 and who does not elect
6 to augment service under Section 17-119.1: 2.3% of
7 average salary for each year of creditable service earned
8 on or after July 1, 1998.
9 (3) For all other creditable service: 2.2% of
10 average salary for each year of creditable service.
11 (c) When computing such service retirement pensions, the
12 following conditions shall apply:
13 1. Average salary shall consist of the average annual
14 rate of salary for the 4 consecutive years of validated
15 service within the last 10 years of service when such average
16 annual rate was highest. In the determination of average
17 salary for retirement allowance purposes, for members who
18 commenced employment after August 31, 1979, that part of the
19 salary for any year shall be excluded which exceeds the
20 annual full-time salary rate for the preceding year by more
21 than 20%. In the case of a member who commenced employment
22 before August 31, 1979 and who receives salary during any
23 year after September 1, 1983 which exceeds the annual full
24 time salary rate for the preceding year by more than 20%, an
25 Employer and other employers of eligible contributors as
26 defined in Section 17-106 shall pay to the Fund an amount
27 equal to the present value of the additional service
28 retirement pension resulting from such excess salary. The
29 present value of the additional service retirement pension
30 shall be computed by the Board on the basis of actuarial
31 tables adopted by the Board. If a member elects to receive a
32 pension from this Fund provided by Section 20-121, his salary
33 under the State Universities Retirement System and the
34 Teachers' Retirement System of the State of Illinois shall be
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1 considered in determining such average salary. Amounts paid
2 after the effective date of this amendatory Act of 1991 for
3 unused vacation time earned after that effective date shall
4 not under any circumstances be included in the calculation of
5 average salary or the annual rate of salary for the purposes
6 of this Article.
7 2. Proportionate credit shall be given for validated
8 service of less than one year.
9 3. For retirement at age 60 or over the pension shall be
10 payable at the full rate.
11 4. For separation from service below age 60 to a minimum
12 age of 55, the pension shall be discounted at the rate of 1/2
13 of one per cent for each month that the age of the
14 contributor is less than 60, but a teacher may elect to defer
15 the effective date of pension in order to eliminate or reduce
16 this discount. This discount shall not be applicable to any
17 participant who has at least 34 35 years of service or a
18 retirement pension of at least 74.6% of average salary on the
19 date the retirement annuity begins.
20 5. No additional pension shall be granted for service
21 exceeding 45 years. Beginning June 26, 1971 no pension shall
22 exceed the greater of $1,500 per month or 75% of average
23 salary as herein defined.
24 6. Service retirement pensions shall begin on the
25 effective date of resignation, retirement, the day following
26 the close of the payroll period for which service credit was
27 validated, or the time the person resigning or retiring
28 attains age 55, or on a date elected by the teacher,
29 whichever shall be latest.
30 7. A member who is eligible to receive a retirement
31 pension of at least 74.6% of average salary and will attain
32 age 55 on or before December 31 during the year which
33 commences on July 1 shall be deemed to attain age 55 on the
34 preceding June 1.
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1 8. A member retiring after the effective date of this
2 amendatory Act of 1998 shall receive a pension equal to 75%
3 of average salary if the member is qualified to receive a
4 retirement pension equal to at least 74.6% of average salary
5 under this Article or as proportional annuities under Article
6 20 of this Code.
7 (Source: P.A. 90-566, eff. 1-2-98.)
8 (40 ILCS 5/17-119.1 new)
9 Sec. 17-119.1. Optional increase in retirement annuity.
10 (a) A member of the Fund may qualify for the augmented
11 rate under subdivision (b)(3) of Section 17-116 for all years
12 of creditable service earned before July 1, 1998 by making
13 the optional contribution specified in subsection (b). A
14 member may not elect to qualify for the augmented rate for
15 only a portion of his or her creditable service earned before
16 July 1, 1998.
17 (b) The contribution shall be an amount equal to 1.0% of
18 the member's highest salary rate in the 4 consecutive school
19 years immediately prior to but not including the school year
20 in which the application occurs, multiplied by the number of
21 years of creditable service earned by the member before July
22 1, 1998 or 20, whichever is less. This contribution shall be
23 reduced by 1.0% of that salary rate for every 3 full years of
24 creditable service earned by the member after June 30, 1998.
25 The contribution shall not in any event exceed 20% of that
26 salary rate.
27 The member shall pay to the Fund the amount of the
28 contribution as calculated at the time of application under
29 this Section. The amount of the contribution determined
30 under this subsection shall be recalculated at the time of
31 retirement, and if the Fund determines that the amount paid
32 by the member exceeds the recalculated amount, the Fund shall
33 refund the difference to the member with regular interest
SB3 Re-enrolled -41- SRS90S0002PDbm
1 from the date of payment to the date of refund.
2 The contribution required by this subsection shall be
3 paid in one of the following ways or in a combination of the
4 following ways that does not extend over more than 5 years:
5 (i) in a lump sum on or before the date of
6 retirement;
7 (ii) in substantially equal installments over a
8 period of time not to exceed 5 years, as a deduction from
9 salary in accordance with Section 17-130.2;
10 (iii) if the member becomes an annuitant before
11 June 30, 2003, in substantially equal monthly
12 installments over a 24-month period, by a deduction from
13 the annuitant's monthly benefit.
14 (c) If the member fails to make the full contribution
15 under this Section in a timely fashion, the payments made
16 under this Section shall be refunded to the member, without
17 interest. If the member dies before making the full
18 contribution, the payments made under this Section shall be
19 refunded to the member's designated beneficiary.
20 (d) For purposes of this Section and subsection (b) of
21 Section 17-116, optional creditable service established by a
22 member shall be deemed to have been earned at the time of the
23 employment or other qualifying event upon which the service
24 is based, rather than at the time the credit was established
25 in this Fund.
26 (e) The contributions required under this Section are
27 the responsibility of the teacher and not the teacher's
28 employer. However, an employer of teachers may, after the
29 effective date of this amendatory Act of 1998, specifically
30 agree, through collective bargaining or otherwise, to make
31 the contributions required by this Section on behalf of those
32 teachers.
33 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
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1 Sec. 17-127. Financing; revenues for the Fund.
2 (a) The revenues for the Fund shall consist of: (1)
3 amounts paid into the Fund by contributors thereto and from
4 employer contributions and State appropriations in accordance
5 with this Article; (2) amounts contributed to the Fund by an
6 Employer; (3) amounts contributed to the Fund pursuant to any
7 law now in force or hereafter to be enacted; (4)
8 contributions from any other source; and (5) the earnings on
9 investments.
10 (b) The General Assembly finds that for many years the
11 State has contributed to the Fund an annual amount that is
12 between 20% and 30% of the amount of the annual State
13 contribution to the Article 16 retirement system, and the
14 General Assembly declares that it is its goal and intention
15 to continue this level of contribution to the Fund in the
16 future.
17 Beginning in State fiscal year 1999, the State shall
18 include in its annual contribution to the Fund an additional
19 amount equal to 0.544% of the Fund's total teacher payroll;
20 except that this additional contribution need not be made in
21 a fiscal year if the Board has certified in the previous
22 fiscal year that the Fund is at least 90% funded, based on
23 actuarial determinations. These additional State
24 contributions are intended to offset a portion of the cost to
25 the Fund of the increases in retirement benefits resulting
26 from this amendatory Act of 1998.
27 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
28 revised 1-8-98.)
29 (40 ILCS 5/17-127.2 new)
30 Sec. 17-127.2. Additional contributions by employer of
31 teachers.
32 (a) Beginning July 1, 1998, the employer of a teacher
33 shall pay to the Fund an employer contribution computed as
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1 follows:
2 (1) Beginning July 1, 1998 through June 30, 1999,
3 the employer contribution shall be equal to 0.3% of each
4 teacher's salary.
5 (2) Beginning July 1, 1999 and thereafter, the
6 employer contribution shall be equal to 0.58% of each
7 teacher's salary.
8 The employer may pay these employer contributions out of any
9 source of funding available for that purpose and shall
10 forward the contributions to the Fund on the schedule
11 established for the payment of member contributions.
12 These employer contributions need not be made in a fiscal
13 year if the Board has certified in the previous fiscal year
14 that the Fund is at least 90% funded, based on actuarial
15 determinations.
16 These employer contributions are intended to offset a
17 portion of the cost to the Fund of the increases in
18 retirement benefits resulting from this amendatory Act of
19 1998.
20 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
21 Sec. 17-130. Participants' contributions by payroll
22 deductions.
23 (a) There shall be deducted from the salary of each
24 teacher 7.50% 6 1/2% of his salary for service or disability
25 retirement pension and 0.5% 1/2 of 1% of salary for the
26 annual increase in base pension.
27 In addition, there shall be deducted from the salary of
28 each teacher 1% of his salary for survivors' and children's
29 pensions.
30 (b) An Employer and any employer of eligible
31 contributors as defined in Section 17-106 is authorized to
32 make the necessary deductions from the salaries of its
33 teachers. Such amounts shall be included as a part of the
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1 Fund. An Employer and any employer of eligible contributors
2 as defined in Section 17-106 shall formulate such rules and
3 regulations as may be necessary to give effect to the
4 provisions of this Section.
5 (c) All persons employed as teachers shall, by such
6 employment, accept the provisions of this Article and of
7 Sections 34-83 to 34-87, inclusive, of "The School Code",
8 approved March 18, 1961, as amended, and thereupon become
9 contributors to the Fund in accordance with the terms
10 thereof. The provisions of this Article and of those
11 Sections shall become a part of the contract of employment.
12 (d) A person who (i) was a member before July 1, 1998,
13 (ii) retires with more than 34 years of creditable service,
14 and (iii) does not elect to qualify for the augmented rate
15 under Section 17-119.1 shall be entitled, at the time of
16 retirement, to receive a partial refund of contributions made
17 under this Section for service occurring after the later of
18 June 30, 1998 or attainment of 34 years of creditable
19 service, in an amount equal to 1.00% of the salary upon which
20 those contributions were based.
21 (Source: P.A. 90-566, eff. 1-2-98.)
22 (40 ILCS 5/17-130.2 new)
23 Sec. 17-130.2. Pickup of optional contributions.
24 (a) For the purposes of this Section, "optional
25 contributions" means contributions that a member elects to
26 make in order to qualify for the augmented service retirement
27 pension rate under Section 17-119.1.
28 (b) Subject to the requirements of federal law and the
29 rules of the Board, beginning July 1, 1998 a member who is
30 employed on a full-time basis may elect to have the Employer
31 pick up optional contributions that the member has elected to
32 pay to the Fund, and the contributions so picked up shall be
33 treated as employer contributions for the purposes of
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1 determining federal tax treatment. The election to have
2 optional contributions picked up is irrevocable. At the time
3 of making the election, the member shall execute a binding,
4 irrevocable payroll deduction authorization. Upon receiving
5 notice of the election, the Employer shall pick up the
6 contributions by a reduction in the cash salary of the member
7 and shall pay the contributions from the same source of funds
8 that is used to pay earnings to the member.
9 (c) Each Employer under this Fund shall take the steps
10 necessary to comply with the requirements of Section 414(h)
11 of the Internal Revenue Code of 1986, as amended, to permit
12 the pickup of optional contributions on a tax-deferred basis.
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.22 as follows:
15 (30 ILCS 805/8.22 new)
16 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of 1998.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.