98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3632

 

Introduced , by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Judges Article of the Illinois Pension Code. Defines terms. Requires Tier I employees to elect (i) to have the amount of their automatic annual increases reduced and to waive their eligibility for automatic annual increases for 2 years, (ii) to make additional employee contributions and to waive their eligibility for automatic annual increases for 3 years, or (iii) to maintain their current benefit package. Specifies that a Tier I employee who has elected either item (i) or (ii) is entitled to have future increases in income treated as pensionable income and remains eligible to participate in the State-sponsored program of health benefits during retirement. Specifies that a Tier I employee who has elected item (iii) is not eligible for any of these benefits. Requires Tier I retirees to elect (i) to delay their eligibility for automatic annual increases or (ii) to maintain their current benefit package. Specifies that a Tier I retiree who elects item (ii) becomes ineligible to participate in the State-sponsored program of health benefits during retirement. Makes conforming changes in the State Employees Group Insurance Act of 1971. Includes an inseverability provision. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public employe benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is amended by adding Section 6.16 as follows:
 
6    (5 ILCS 375/6.16 new)
7    Sec. 6.16. Health benefit election for Tier I employees and
8Tier I retirees.
9    (a) For purposes of this Section:
10    "Eligible Tier I employee" means, except as provided in
11subsection (g) of this Section, an individual who makes or is
12deemed to have made an election under paragraph (1) of
13subsection (a) of Section 18-120.5 of the Illinois Pension
14Code.
15    "Eligible Tier I retiree" means, except as provided in
16subsection (g) of this Section, an individual who makes or is
17deemed to have made an election under paragraph (1) of
18subsection (a-5) of Section 18-120.5 of the Illinois Pension
19Code.
20    "Program of health benefits" means (i) a health plan, as
21defined in subsection (o) of Section 3 of this Act, that is
22designed and contracted for by the Director under this Act or
23any successor Act or (ii) if administration of that health plan

 

 

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1is transferred to a trust established by the State or an
2independent Board in order to provide health benefits to a
3class of a persons that includes eligible Tier I retirees, then
4the plan of health benefits provided through that trust.
5    (b) As adequate and legal consideration for making an
6election under paragraph (1) of subsection (a) or (a-5) of
7Section 18-120.5 of the Illinois Pension Code, as the case may
8be, each eligible Tier I employee and each eligible Tier I
9retiree shall receive a vested and enforceable contractual
10right to participate in a program of health benefits while he
11or she qualifies as an annuitant or retired employee. That
12right also extends to such a person's dependents and survivors
13who are eligible under the applicable program of health
14benefits.
15    (c) Notwithstanding subsection (b), eligible Tier I
16employees and eligible Tier I retirees may be required to make
17contributions toward the cost of coverage under a program of
18health benefits.
19    (d) The vested and enforceable contractual right to a
20program of health benefits is not offered as, and shall not be
21considered, a pension or retirement benefit under Article XIII,
22Section 5 of the Illinois Constitution, the Illinois Pension
23Code, or any subsequent or successor enactment providing
24pension benefits.
25    (e) Notwithstanding any other provision of law, except
26subsection (g) of this Section, a Tier I employee or Tier I

 

 

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1retiree who has made an election under paragraph (2) of
2subsection (a) or (a-5) of Section 18-120.5 of the Illinois
3Pension Code, as the case may be, shall not be entitled to
4participate in any program of health benefits under this Act as
5an annuitant or retired employee receiving a retirement
6annuity, regardless of any contrary election pursuant to any of
7those Sections under any other retirement system.
8    Notwithstanding any other provision of law, except
9subsection (g) of this Section, a Tier I employee who is not
10entitled to participate in the program of health benefits as an
11annuitant or retired employee receiving a retirement annuity,
12due to an election under paragraph (2) of subsection (a) or
13(a-5) of Section 18-120.5 of the Illinois Pension Code, as the
14case may be, shall not be required to make contributions toward
15the program of health benefits while he or she is an employee
16or active contributor. However, an active employee may be
17required to make contributions toward health benefits he or she
18receives during active service.
19    (f) The Department shall coordinate with each retirement
20system administering an election in accordance with this
21amendatory Act of the 98th General Assembly to provide
22information concerning the impact of the election of health
23benefits. Each System shall include information prepared by the
24Department in the required election packet. The Department
25shall make information available to Tier I employees and Tier I
26retirees through video materials, group presentations,

 

 

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1consultation by telephone or other electronic means, or any
2combination of these methods. The information in the election
3packet shall include a notice that states: "YOU ARE HEREBY
4ADVISED THAT THE PROGRAM OF HEALTH BENEFITS OFFERED IS FOR
5ACCESS TO A GROUP HEALTHCARE PLAN ADMINISTERED BY THE
6DEPARTMENT, AND YOU MAY BE REQUIRED TO PAY FOR THE FULL COST OF
7COVERAGE PROVIDED BY THE PLAN, INCLUDING ALL PREMIUM,
8DEDUCTIBLE, AND COPAY AMOUNTS."
9    (g) Nothing in this Section shall be construed as applying
10to a person who is eligible to make or who made the election
11under Section 15-135.1 of the Illinois Pension Code.
 
12    Section 10. The Illinois Pension Code is amended by
13changing Sections 18-111, 18-125.1, 18-132, 18-133, 18-140,
14and 18-169 and adding Sections 18-110.1, 18-110.2, 18-110.9,
15and 18-120.5 as follows:
 
16    "(40 ILCS 5/18-110.1 new)
17    Sec. 18-110.1. Tier I employee. "Tier I employee": A
18participant who first became a participant before January 1,
192011.
 
20    (40 ILCS 5/18-110.2 new)
21    Sec. 18-110.2. Tier I retiree. "Tier I retiree" means a
22former Tier I employee who is receiving a retirement annuity.
 

 

 

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1    (40 ILCS 5/18-110.9 new)
2    Sec. 18-110.9. Future increase in income. "Future increase
3in income": Any increase in income in any form offered for
4service as a judge under this Article after June 30, 2014 that
5would qualify as "salary", as defined in Section 18-111, but
6for the fact that the increase in income was offered to the
7judge on the condition that it not qualify as salary and was
8accepted by the judge subject to that condition.
 
9    (40 ILCS 5/18-111)  (from Ch. 108 1/2, par. 18-111)
10    Sec. 18-111. Salary. "Salary": The total compensation paid
11for personal services as a judge, by the State, or by the State
12and a county as authorized by law. However, in the event that
13federal law results in any judge receiving imputed income based
14on the value of group term life insurance provided by the
15State, such imputed income shall not be included in salary for
16the purposes of this Article.
17    Notwithstanding any other provision of this Section,
18"salary" does not include any future increase in income that is
19offered for service as a judge under this Article pursuant to
20the requirements of subsection (c) of Section 18-120.5 and
21accepted by a Tier I employee, or a Tier I retiree returning to
22active service, who has made the election under paragraph (2)
23of subsection (a) or (a-5) of Section 18-120.5.
24(Source: P.A. 86-273.)
 

 

 

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1    (40 ILCS 5/18-120.5 new)
2    Sec. 18-120.5. Election by Tier I employees and Tier I
3retirees.
4    (a) Each Tier I employee shall make an irrevocable election
5either:
6        (1) to agree to item (i) or (ii) as set forth in this
7    paragraph (1):
8            (i) to have the amount of the automatic annual
9        increases in his or her retirement annuity that are
10        otherwise provided for in this Article calculated,
11        instead, as provided in subsection (a-1) of Section
12        18-125.1, and to waive his or her eligibility for 2
13        automatic annual increases in retirement annuity as
14        provided in subsection (a-2) of Section 18-125.1; or
15            (ii) to waive his or her eligibility for 3
16        automatic annual increases in retirement annuity, as
17        provided in subsection (a-3) of Section 18-125.1, and
18        to make the contributions set forth in subsection (a-5)
19        of Section 18-133; or
20        (2) to not agree to item (i) or (ii) as set forth in
21    paragraph (1) of this subsection.
22    The election required under this subsection (a) shall be
23made by each Tier I employee no earlier than February 1, 2014
24and no later than May 31, 2014, except that:
25        (i) a person who becomes a Tier I employee under this
26    Article on or after February 1, 2014 must make the election

 

 

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1    under this subsection (a) within 60 days after becoming a
2    Tier I employee;
3        (ii) a person who returns to active service as a Tier I
4    employee under this Article on or after February 1, 2014
5    and has not yet made an election under this Section must
6    make the election under this subsection (a) within 60 days
7    after returning to active service as a Tier I employee; and
8        (iii) a person who made the election under subsection
9    (a-5) as a Tier I retiree remains bound by that election
10    and shall not make a later election under this subsection
11    (a).
12    If a Tier I employee fails for any reason to make a
13required election under this subsection within the time
14specified, then the employee shall be deemed to have made the
15election under paragraph (2) of this subsection.
16    (a-5) Each Tier I retiree shall make an irrevocable
17election either:
18        (1) to agree to the following:
19            (i) to have the amount of the automatic annual
20        increases in his or her retirement annuity calculated
21        without regard to subsection (a-1), (a-2), or (a-3) of
22        Section 18-125.1; and
23            (ii) to waive his or her eligibility for 2
24        automatic annual increases in retirement annuity as
25        provided in subsection (a-4) of Section 18-125.1; or
26        (2) to not agree to items (i) and (ii) as set forth in

 

 

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1    paragraph (1) of this subsection.
2    The election required under this subsection (a-5) shall be
3made by each Tier I retiree no earlier than February 1, 2014
4and no later than May 31, 2014, except that:
5        (i) a person who becomes a Tier I retiree under this
6    Article on or after February 1, 2014 must make the election
7    under this subsection (a-5) within 60 days after becoming a
8    Tier I retiree; and
9        (ii) a person who made the election under subsection
10    (a) as a Tier I employee remains bound by that election and
11    shall not make a later election under this subsection
12    (a-5).
13    If a Tier I retiree fails for any reason to make a required
14election under this subsection within the time specified, then
15the Tier I retiree shall be deemed to have made the election
16under paragraph (2) of this subsection.
17    (a-10) All elections under subsection (a) or (a-5) that are
18made or deemed to be made before June 1, 2014 shall take effect
19on July 1, 2014. Elections that are made or deemed to be made
20on or after June 1, 2014 shall take effect on the first day of
21the month following the month in which the election is made or
22deemed to be made.
23    (b) As adequate and legal consideration provided under this
24amendatory Act of the 98th General Assembly for making an
25election under paragraph (1) of subsection (a) of this Section,
26any future increases in income offered for service as a judge

 

 

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1under this Article to a Tier I employee who has made an
2election under paragraph (1) of subsection (a) of this Section
3shall be offered expressly and irrevocably as constituting
4salary under Section 18-111.
5    As adequate and legal consideration provided under this
6amendatory Act of the 98th General Assembly for making an
7election under paragraph (1) of subsection (a-5) of this
8Section, any future increases in income offered for service as
9a judge under this Article to a Tier I retiree who returns to
10active service after having made an election under paragraph
11(1) of subsection (a-5) of this Section shall be offered
12expressly and irrevocably as constituting salary under Section
1318-111.
14    (c) A Tier I employee who makes the election under
15paragraph (2) of subsection (a) of this Section shall not be
16subject to either item (i) or (ii) set forth in paragraph (1)
17of subsection (a) of this Section. However, any future
18increases in income offered for service as a judge under this
19Article to a Tier I employee who has made the election under
20paragraph (2) of subsection (a) of this Section shall be
21offered expressly and irrevocably as not constituting salary
22under Section 18-111, and the judge may not accept any future
23increase in income that is offered in violation of this
24requirement.
25    A Tier I retiree who makes the election under paragraph (2)
26of subsection (a-5) of this Section shall not be subject to

 

 

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1either item (i) or (ii) set forth in paragraph (1) of
2subsection (a-5) of this Section. However, any future increases
3in income offered for service as a judge under this Article to
4a Tier I retiree who returns to active service and has made the
5election under paragraph (2) of subsection (a-5) of this
6Section shall be offered expressly and irrevocably as not
7constituting salary under Section 18-111, and the judge may not
8accept any future increase in income that is offered in
9violation of this requirement.
10    (d) The System shall make a good faith effort to contact
11each Tier I employee and Tier I retiree subject to this
12Section. The System shall mail information describing the
13required election to each Tier I employee and Tier I retiree by
14United States Postal Service mail to his or her last known
15address on file with the System. If the Tier I employee or Tier
16I retiree is not responsive to other means of contact, it is
17sufficient for the System to publish the details of any
18required elections on its website or to publish those details
19in a regularly published newsletter or other existing public
20forum.
21    Tier I employees and Tier I retirees who are subject to
22this Section shall be provided with an election packet
23containing information regarding their options, as well as the
24forms necessary to make the required election. Upon request,
25the System shall offer Tier I employees and Tier I retirees an
26opportunity to receive information from the System before

 

 

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1making the required election. The information may be provided
2through video materials, group presentations, individual
3consultation with a judge by an authorized representative of
4the System in person or by telephone or other electronic means,
5or any combination of those methods. The System shall not
6provide advice or counseling with respect to which election a
7Tier I employee or Tier I retiree should make or specific to
8the legal or tax circumstances of or consequences to the Tier I
9employee or Tier I retiree.
10    The System shall inform Tier I employees and Tier I
11retirees in the election packet required under this subsection
12that the Tier I employee or Tier I retiree may also wish to
13obtain information and counsel relating to the election
14required under this Section from any other available source,
15including but not limited to labor organizations and private
16counsel.
17    In no event shall the System, its staff, or the Board be
18held liable for any information given to a participant,
19beneficiary, or annuitant regarding the elections under this
20Section. The System shall coordinate with the Illinois
21Department of Central Management Services and each other
22retirement system administering an election in accordance with
23this amendatory Act of the 98th General Assembly to provide
24information concerning the impact of the election set forth in
25this Section.
26    (e) Notwithstanding any other provision of law, any future

 

 

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1increases in income offered for service as a judge must be
2offered expressly and irrevocably as not constituting "salary"
3under Section 18-111 to any Tier I employee, or Tier I retiree
4returning to active service, who has made an election under
5paragraph (2) of subsection (a) or (a-5) of this Section
618-120.5. A Tier I employee, or Tier I retiree returning to
7active service, who has made an election under paragraph (2) of
8subsection (a) or (a-5) of this Section 18-120.5 shall not
9accept any future increase in income that is offered for
10service as a judge under this Article in violation of the
11requirement set forth in this subsection.
12    (f) An election under this Section is not a prohibited
13election under subdivision (j)(1) of Section 1-119 of this
14Code.
15    (g) No provision of this Section shall be interpreted in a
16way that would cause the System to cease to be a qualified plan
17under Section 401(a) of the Internal Revenue Code of 1986.
18    (h) If this Section is determined to be unconstitutional or
19otherwise invalid by a final unappealable decision of an
20Illinois court or a court of competent jurisdiction as applied
21to Tier I employees but not as applied to Tier I retirees, then
22this Section and the changes deriving from the election
23required under this Section shall be null and void as applied
24to Tier I employees but shall remain in full effect for Tier I
25retirees.
26    (i) If this Section is determined to be unconstitutional or

 

 

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1otherwise invalid by a final unappealable decision of an
2Illinois court or a court of competent jurisdiction as applied
3to Tier I retirees but not as applied to Tier I employees, then
4this Section and the changes deriving from the election
5required under this Section shall be null and void as applied
6to Tier I retirees but shall remain in full effect for Tier I
7employees.
8    (j) If an election created by this amendatory Act in any
9other Article of this Code or any change deriving from that
10election is determined to be unconstitutional or otherwise
11invalid by a final unappealable decision of an Illinois court
12or a court of competent jurisdiction, the invalidity of that
13provision shall not in any way affect the validity of this
14Section or the changes deriving from the election required
15under this Section.
 
16    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
17    Sec. 18-125.1. Automatic increase in retirement annuity.
18    (a) Except as provided in subsections (a-1), (a-2), (a-3),
19and (a-4), a A participant who retires from service after June
2030, 1969, shall, in January of the year next following the year
21in which the first anniversary of retirement occurs, and in
22January of each year thereafter, have the amount of his or her
23originally granted retirement annuity increased as follows:
24for each year up to and including 1971, 1 1/2%; for each year
25from 1972 through 1979 inclusive, 2%; and for 1980 and each

 

 

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1year thereafter, 3%.
2    (a-1) Notwithstanding any other provision of this Article,
3for a Tier I employee who made the election under item (i) of
4paragraph (1) of subsection (a) of Section 18-120.5, the amount
5of each automatic annual increase in retirement annuity
6occurring on or after the effective date of that election,
7other than the initial increase, shall be 3% of the originally
8granted retirement annuity.
9    (a-2) Notwithstanding any other provision of this Article,
10for a Tier I employee who made the election under item (i) of
11paragraph (1) of subsection (a) of Section 18-120.5, once the
12first annual increase under this Section has been granted, the
13next 2 scheduled annual increases after the effective date of
14that election shall be skipped, and thereafter all annual
15increases shall be granted.
16    (a-3) Notwithstanding any other provision of this Article,
17for a Tier I employee who made the election under item (ii) of
18paragraph (1) of subsection (a) of Section 18-120.5, once the
19first annual increase under this Section has been granted, the
20next 3 scheduled annual increases after the effective date of
21that election shall be skipped, and thereafter all annual
22increases shall be granted.
23    (a-4) Notwithstanding any other provision of this Article,
24for a Tier I retiree who made the election under paragraph (1)
25of subsection (a-5) of Section 18-120.5:
26        (1) if the Tier I retiree has not received the first

 

 

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1    annual increase under this Section as of the effective date
2    of that election, then once the first annual increase under
3    this Section has been granted, the next scheduled annual
4    increase shall be skipped, the following annual increase
5    shall be granted, the next annual increase shall be
6    skipped, and thereafter all annual increases shall be
7    granted; and
8        (2) if the Tier I retiree has received the first annual
9    increase under this Section as of the effective date of
10    that election, then the next annual increase after that
11    effective date shall be skipped, the following annual
12    increase shall be granted, the next annual increase shall
13    be skipped, and thereafter all annual increases shall be
14    granted.
15    (b) Notwithstanding subsections (a) and (e) of this Section
16any other provision of this Article, a retirement annuity for a
17participant who first serves as a judge on or after January 1,
182011 (the effective date of Public Act 96-889) shall be
19increased in January of the year next following the year in
20which the first anniversary of retirement occurs, but in no
21event prior to age 67, and in January of each year thereafter,
22by an amount equal to 3% or the annual percentage increase in
23the consumer price index-u as determined by the Public Pension
24Division of the Department of Insurance under subsection (b-5)
25of Section 18-125, whichever is less, of the retirement annuity
26then being paid.

 

 

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1    (c) This Section is not applicable to a participant who
2retires before he or she has made contributions at the rate
3prescribed in Section 18-133 for automatic increases for not
4less than the equivalent of one full year, unless such a
5participant arranges to pay the system the amount required to
6bring the total contributions for the automatic increase to the
7equivalent of one year's contribution based upon his or her
8last year's salary.
9    This Section is applicable to all participants in service
10after June 30, 1969 unless a participant has elected, prior to
11September 1, 1969, in a written direction filed with the board
12not to be subject to the provisions of this Section. Any
13participant in service on or after July 1, 1992 shall have the
14option of electing prior to April 1, 1993, in a written
15direction filed with the board, to be covered by the provisions
16of the 1969 amendatory Act. Such participant shall be required
17to make the aforesaid additional contributions with compound
18interest at 4% per annum.
19    (d) Except as provided in subsections (a-1), (a-2), (a-3),
20and (a-4), any Any participant who has become eligible to
21receive the maximum rate of annuity and who resumes service as
22a judge after receiving a retirement annuity under this Article
23shall have the amount of his or her retirement annuity
24increased by 3% of the originally granted annuity amount for
25each year of such resumed service, beginning in January of the
26year next following the date of such resumed service, upon

 

 

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1subsequent termination of such resumed service.
2    (e) Beginning January 1, 1990, and except as provided in
3subsections (a-1) and (b), all automatic annual increases
4payable under this Section shall be calculated as a percentage
5of the total annuity payable at the time of the increase,
6including previous increases granted under this Article.
7(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
8    (40 ILCS 5/18-132)  (from Ch. 108 1/2, par. 18-132)
9    Sec. 18-132. Obligations of State; funding guarantee.
10    (a) The payment of (1) the required State contributions,
11(2) all benefits granted under this system and (3) all expenses
12in connection with the administration and operation thereof are
13the obligations of the State to the extent specified in this
14Article.
15    (b) The State shall be contractually obligated to
16contribute to the System in each State fiscal year an amount
17not less than the sum required in Section 18-131 as that
18Section existed prior to the effective date of this amendatory
19Act of the 98th General Assembly.
20    The obligations created under this subsection (b) are
21contractual obligations protected and enforceable under
22Article I, Section 16 and Article XIII, Section 5 of the
23Illinois Constitution.
24    Notwithstanding any other provision of law, if the State
25fails to pay in a State fiscal year the amount guaranteed under

 

 

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1this subsection (b), the System may bring a mandamus action in
2the Circuit Court of Sangamon County to compel the State to
3make that payment, irrespective of other remedies that may be
4available to the System. It shall be the mandatory fiduciary
5obligation of the Board of the System to bring that action if
6the State fails to pay in the fiscal year the amount guaranteed
7under this subsection (b). Before commencing that action, the
8Board shall submit a voucher for contributions required under
9Section 18-140. If the State fails to pay a vouchered amount
10within 90 days after receiving a voucher for that amount, then
11the Board shall submit a written request to the Comptroller
12seeking payment of that amount. A copy of the request shall be
13filed with the Secretary of State, and the Secretary of State
14shall provide copies of the request to the Governor and General
15Assembly. No earlier than the 16th day after filing a request
16with the Secretary, but no later than the 21st day after filing
17that request, the Board may commence such an action in the
18Circuit Court. If the Board fails to commence such action on or
19before the 21st day after filing the request with the Secretary
20of State, then any Tier I employee or Tier I retiree who made
21an election under paragraph (1) of subsection (a) or (a-5) of
22Section 18-120.5 may file a mandamus action against the Board
23to compel the Board to commence its mandamus action against the
24State. This subsection (b) constitutes an express waiver of the
25State's sovereign immunity. In ordering the State to make the
26required payment, the court may order a reasonable payment

 

 

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1schedule to enable the State to make the required payment. The
2obligations and causes of action created under this subsection
3(b) shall be in addition to any other right or remedy otherwise
4accorded by common law, or State or federal law, and nothing in
5this subsection (b) shall be construed to deny, abrogate,
6impair, or waive any such common law or statutory right or
7remedy.
8    Any payments required to be made by the State pursuant to
9this subsection (b) are expressly subordinated to the payment
10of the principal, interest, and premium, if any, on any bonded
11debt obligation of the State or any other State-created entity,
12either currently outstanding or to be issued, for which the
13source of repayment or security thereon is derived directly or
14indirectly from tax revenues collected by the State or any
15other State-created entity. Payments on such bonded
16obligations include any statutory fund transfers or other
17prefunding mechanisms or formulas set forth, now or hereafter,
18in State law or bond indentures, into debt service funds or
19accounts of the State related to such bonded obligations,
20consistent with the payment schedules associated with such
21obligations.
22(Source: P.A. 83-1440.)
 
23    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
24    Sec. 18-133. Financing; employee contributions.
25    (a) Effective July 1, 1967, each participant is required to

 

 

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1contribute 7 1/2% of each payment of salary toward the
2retirement annuity. Such contributions shall continue during
3the entire time the participant is in service, with the
4following exceptions:
5        (1) Contributions for the retirement annuity are not
6    required on salary received after 18 years of service by
7    persons who were participants before January 2, 1954.
8        (2) A participant who continues to serve as a judge
9    after becoming eligible to receive the maximum rate of
10    annuity may elect, through a written direction filed with
11    the Board, to discontinue contributing to the System. Any
12    such option elected by a judge shall be irrevocable unless
13    prior to January 1, 2000, and while continuing to serve as
14    judge, the judge (A) files with the Board a letter
15    cancelling the direction to discontinue contributing to
16    the System and requesting that such contributing resume,
17    and (B) pays into the System an amount equal to the total
18    of the discontinued contributions plus interest thereon at
19    5% per annum. Service credits earned in any other
20    "participating system" as defined in Article 20 of this
21    Code shall be considered for purposes of determining a
22    judge's eligibility to discontinue contributions under
23    this subdivision (a)(2).
24        (3) A participant who (i) has attained age 60, (ii)
25    continues to serve as a judge after becoming eligible to
26    receive the maximum rate of annuity, and (iii) has not

 

 

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1    elected to discontinue contributing to the System under
2    subdivision (a)(2) of this Section (or has revoked any such
3    election) may elect, through a written direction filed with
4    the Board, to make contributions to the System based only
5    on the amount of the increases in salary received by the
6    judge on or after the date of the election, rather than the
7    total salary received. If a judge who is making
8    contributions to the System on the effective date of this
9    amendatory Act of the 91st General Assembly makes an
10    election to limit contributions under this subdivision
11    (a)(3) within 90 days after that effective date, the
12    election shall be deemed to become effective on that
13    effective date and the judge shall be entitled to receive a
14    refund of any excess contributions paid to the System
15    during that 90-day period; any other election under this
16    subdivision (a)(3) becomes effective on the first of the
17    month following the date of the election. An election to
18    limit contributions under this subdivision (a)(3) is
19    irrevocable. Service credits earned in any other
20    participating system as defined in Article 20 of this Code
21    shall be considered for purposes of determining a judge's
22    eligibility to make an election under this subdivision
23    (a)(3).
24    (a-5) In addition to the contributions otherwise required
25under this Article, and notwithstanding the provisions of and
26any election under subsection (a) of this Section, each Tier I

 

 

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1employee who made the election under item (ii) of paragraph (1)
2of subsection (a) of Section 18-120.5 shall also make the
3following contributions toward the cost of his or her
4retirement annuity from each payment of salary received by him
5or her for service as a judge:
6        (1) beginning July 1, 2014 and through June 30, 2015,
7    1% of salary; and
8        (2) beginning on July 1, 2015, 2% of salary.
9    (b) Beginning July 1, 1969, each participant is required to
10contribute 1% of each payment of salary towards the automatic
11increase in annuity provided in Section 18-125.1. However, such
12contributions need not be made by any participant who has
13elected prior to September 15, 1969, not to be subject to the
14automatic increase in annuity provisions.
15    (c) Effective July 13, 1953, each married participant
16subject to the survivor's annuity provisions is required to
17contribute 2 1/2% of each payment of salary, whether or not he
18or she is required to make any other contributions under this
19Section. Such contributions shall be made concurrently with the
20contributions made for annuity purposes.
21    (d) Notwithstanding any other provision of this Article,
22the required contributions for a participant shall not be based
23on any salary in excess of the salary limitation applicable to
24that participant under Section 18-111 or subsection (b-5) of
25Section who first becomes a participant on or after January 1,
262011 shall not exceed the contributions that would be due under

 

 

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1this Article if that participant's highest salary for annuity
2purposes were $106,800, plus any increase in that amount under
3Section 18-125.
4(Source: P.A. 96-1490, eff. 1-1-11.)
 
5    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
6    Sec. 18-140. To certify required State contributions and
7submit vouchers.
8    (a) The Board shall certify to the Governor, on or before
9November 15 of each year through until November 15, 2011, the
10amount of the required State contribution to the System for the
11following fiscal year and shall specifically identify the
12System's projected State normal cost for that fiscal year. The
13certification under this subsection (a) shall include a copy of
14the actuarial recommendations upon which it is based and shall
15specifically identify the System's projected State normal cost
16for that fiscal year.
17    (a-5) On or before November 1 of each year, beginning
18November 1, 2012, the Board shall submit to the State Actuary,
19the Governor, and the General Assembly a proposed certification
20of the amount of the required State contribution to the System
21for the next fiscal year, along with all of the actuarial
22assumptions, calculations, and data upon which that proposed
23certification is based. On or before January 1 of each year,
24beginning January 1, 2013, the State Actuary shall issue a
25preliminary report concerning the proposed certification and

 

 

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1identifying, if necessary, recommended changes in actuarial
2assumptions that the Board must consider before finalizing its
3certification of the required State contributions.
4    On or before January 15, 2013 and every January 15
5thereafter, the Board shall certify to the Governor and the
6General Assembly the amount of the required State contribution
7for the next fiscal year. The certification shall include a
8copy of the actuarial recommendations upon which it is based
9and shall specifically identify the System's projected State
10normal cost for that fiscal year. The Board's certification
11must note any deviations from the State Actuary's recommended
12changes, the reason or reasons for not following the State
13Actuary's recommended changes, and the fiscal impact of not
14following the State Actuary's recommended changes on the
15required State contribution.
16    (a-7) On or before May 1, 2004, the Board shall recalculate
17and recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2005, taking
19into account the amounts appropriated to and received by the
20System under subsection (d) of Section 7.2 of the General
21Obligation Bond Act.
22    On or before July 1, 2005, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2006, taking
25into account the changes in required State contributions made
26by this amendatory Act of the 94th General Assembly.

 

 

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1    On or before April 1, 2011, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2011, applying
4the changes made by Public Act 96-889 to the System's assets
5and liabilities as of June 30, 2009 as though Public Act 96-889
6was approved on that date.
7    (b) Beginning in State fiscal year 1996, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the
11required annual State contribution certified under subsection
12(a). From the effective date of this amendatory Act of the 93rd
13General Assembly through June 30, 2004, the Board shall not
14submit vouchers for the remainder of fiscal year 2004 in excess
15of the fiscal year 2004 certified contribution amount
16determined under this Section after taking into consideration
17the transfer to the System under subsection (c) of Section
186z-61 of the State Finance Act. These vouchers shall be paid by
19the State Comptroller and Treasurer by warrants drawn on the
20funds appropriated to the System for that fiscal year.
21    If in any month the amount remaining unexpended from all
22other appropriations to the System for the applicable fiscal
23year (including the appropriations to the System under Section
248.12 of the State Finance Act and Section 1 of the State
25Pension Funds Continuing Appropriation Act) is less than the
26amount lawfully vouchered under this Section, the difference

 

 

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1shall be paid from the General Revenue Fund under the
2continuing appropriation authority provided in Section 1.1 of
3the State Pension Funds Continuing Appropriation Act.
4(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
597-694, eff. 6-18-12.)
 
6    (40 ILCS 5/18-169)
7    Sec. 18-169. Application and expiration of new benefit
8increases.
9    (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after the effective date of this
14amendatory Act of the 94th General Assembly. "New benefit
15increase", however, does not include any benefit increase
16resulting from the changes made to this Article by this
17amendatory Act of the 98th General Assembly.
18    (b) Notwithstanding any other provision of this Code or any
19subsequent amendment to this Code, every new benefit increase
20is subject to this Section and shall be deemed to be granted
21only in conformance with and contingent upon compliance with
22the provisions of this Section.
23    (c) The Public Act enacting a new benefit increase must
24identify and provide for payment to the System of additional
25funding at least sufficient to fund the resulting annual

 

 

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1increase in cost to the System as it accrues.
2    Every new benefit increase is contingent upon the General
3Assembly providing the additional funding required under this
4subsection. The Commission on Government Forecasting and
5Accountability shall analyze whether adequate additional
6funding has been provided for the new benefit increase and
7shall report its analysis to the Public Pension Division of the
8Department of Financial and Professional Regulation. A new
9benefit increase created by a Public Act that does not include
10the additional funding required under this subsection is null
11and void. If the Public Pension Division determines that the
12additional funding provided for a new benefit increase under
13this subsection is or has become inadequate, it may so certify
14to the Governor and the State Comptroller and, in the absence
15of corrective action by the General Assembly, the new benefit
16increase shall expire at the end of the fiscal year in which
17the certification is made.
18    (d) Every new benefit increase shall expire 5 years after
19its effective date or on such earlier date as may be specified
20in the language enacting the new benefit increase or provided
21under subsection (c). This does not prevent the General
22Assembly from extending or re-creating a new benefit increase
23by law.
24    (e) Except as otherwise provided in the language creating
25the new benefit increase, a new benefit increase that expires
26under this Section continues to apply to persons who applied

 

 

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1and qualified for the affected benefit while the new benefit
2increase was in effect and to the affected beneficiaries and
3alternate payees of such persons, but does not apply to any
4other person, including without limitation a person who
5continues in service after the expiration date and did not
6apply and qualify for the affected benefit while the new
7benefit increase was in effect.
8(Source: P.A. 94-4, eff. 6-1-05.)
 
9    Section 97. Severability.
10    (a) Except as otherwise provided in this Act, and except as
11provided in subsection (b), the provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.
13    (b) If any benefit change made by this amendatory Act
14Article 18 of the Illinois Pension Code is determined to be
15unconstitutional or otherwise invalid by a final unappealable
16decision of an Illinois court or a court of competent
17jurisdiction, then the State funding guarantee provisions
18added to that Article by this amendatory Act shall also be
19invalid, and those funding guarantee provisions shall be
20contingent upon and inseverable from those benefit changes.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 375/6.16 new
4    40 ILCS 5/18-110.1 new
5    40 ILCS 5/18-110.2 new
6    40 ILCS 5/18-110.9 new
7    40 ILCS 5/18-111from Ch. 108 1/2, par. 18-111
8    40 ILCS 5/18-120.5 new
9    40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
10    40 ILCS 5/18-132from Ch. 108 1/2, par. 18-132
11    40 ILCS 5/18-133from Ch. 108 1/2, par. 18-133
12    40 ILCS 5/18-140from Ch. 108 1/2, par. 18-140
13    40 ILCS 5/18-169