Illinois General Assembly - Full Text of HB0315
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB0315  100th General Assembly

HB0315 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0315

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Assembly, State Employee, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. No later than January 1, 2018, requires each System to calculate the net present value of the pension benefits for each eligible person and to offer that eligible person the opportunity to elect to receive an accelerated pension benefit payment equal to 70% of the net present value of his or her pension benefits in lieu of receiving any pension benefit. Provides that the election must be made before July 1, 2018 and if a person elects to receive an accelerated pension benefit payment, his or her credits and creditable service under that Article shall be terminated upon receipt of the accelerated pension benefit payment; except that the terminated service credit shall be used for the purposes of determining participation and benefits under the State Employees Group Insurance Act of 1971. Makes other changes. Amends the State Employees Group Insurance Act of 1971 to make related changes. Amends the Illinois Finance Authority Act. Requires the Authority to issue bonds if the amount of the accelerated pension benefit payments exceed the amount appropriated to each System for those payments. Amends the General Obligation Bond Act. Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to be sold to pay for accelerated pension benefit payments to eligible persons. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Obligation Acceleration Bond Fund. Effective immediately.


LRB100 06229 RPS 16264 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0315LRB100 06229 RPS 16264 b

1    AN ACT concerning public employee 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 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
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2 (including an employee who
21meets the criteria for retirement, but in lieu of receiving an
22annuity under that Article has elected to receive an
23accelerated pension benefit payment under Section 2-154.5 of

 

 

HB0315- 2 -LRB100 06229 RPS 16264 b

1that Article), 14 (including an employee who has elected to
2receive an alternative retirement cancellation payment under
3Section 14-108.5 of the Illinois Pension Code in lieu of an
4annuity or who meets the criteria for retirement, but in lieu
5of receiving an annuity under that Article has elected to
6receive an accelerated pension benefit payment under Section
714-147.5 of that Article), 15 (including an employee who has
8retired under the optional retirement program established
9under Section 15-158.2 or who meets the criteria for retirement
10but in lieu of receiving an annuity under that Article has
11elected to receive an accelerated pension benefit payment under
12Section 15-185.5 of the Article), paragraphs (2), (3), or (5)
13of Section 16-106 (including an employee who meets the criteria
14for retirement, but in lieu of receiving an annuity under that
15Article has elected to receive an accelerated pension benefit
16payment under Section 16-190.5 of the Illinois Pension Code),
17or Article 18 (including an employee who meets the criteria for
18retirement, but in lieu of receiving an annuity under that
19Article, has elected to receive an accelerated pension benefit
20payment under Section 18-161.5 of that Article) of the Illinois
21Pension Code; (2) any person who was receiving group insurance
22coverage under this Act as of March 31, 1978 by reason of his
23status as an annuitant, even though the annuity in relation to
24which such coverage was provided is a proportional annuity
25based on less than the minimum period of service required for a
26retirement annuity in the system involved; (3) any person not

 

 

HB0315- 3 -LRB100 06229 RPS 16264 b

1otherwise covered by this Act who has retired as a
2participating member under Article 2 of the Illinois Pension
3Code but is ineligible for the retirement annuity under Section
42-119 of the Illinois Pension Code; (4) the spouse of any
5person who is receiving a retirement annuity under Article 18
6of the Illinois Pension Code and who is covered under a group
7health insurance program sponsored by a governmental employer
8other than the State of Illinois and who has irrevocably
9elected to waive his or her coverage under this Act and to have
10his or her spouse considered as the "annuitant" under this Act
11and not as a "dependent"; or (5) an employee who retires, or
12has retired, from a qualified position, as determined according
13to rules promulgated by the Director, under a qualified local
14government, a qualified rehabilitation facility, a qualified
15domestic violence shelter or service, or a qualified child
16advocacy center. (For definition of "retired employee", see (p)
17post).
18    (b-5) (Blank).
19    (b-6) (Blank).
20    (b-7) (Blank).
21    (c) "Carrier" means (1) an insurance company, a corporation
22organized under the Limited Health Service Organization Act or
23the Voluntary Health Services Plan Act, a partnership, or other
24nongovernmental organization, which is authorized to do group
25life or group health insurance business in Illinois, or (2) the
26State of Illinois as a self-insurer.

 

 

HB0315- 4 -LRB100 06229 RPS 16264 b

1    (d) "Compensation" means salary or wages payable on a
2regular payroll by the State Treasurer on a warrant of the
3State Comptroller out of any State, trust or federal fund, or
4by the Governor of the State through a disbursing officer of
5the State out of a trust or out of federal funds, or by any
6Department out of State, trust, federal or other funds held by
7the State Treasurer or the Department, to any person for
8personal services currently performed, and ordinary or
9accidental disability benefits under Articles 2, 14, 15
10(including ordinary or accidental disability benefits under
11the optional retirement program established under Section
1215-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
13Article 18 of the Illinois Pension Code, for disability
14incurred after January 1, 1966, or benefits payable under the
15Workers' Compensation or Occupational Diseases Act or benefits
16payable under a sick pay plan established in accordance with
17Section 36 of the State Finance Act. "Compensation" also means
18salary or wages paid to an employee of any qualified local
19government, qualified rehabilitation facility, qualified
20domestic violence shelter or service, or qualified child
21advocacy center.
22    (e) "Commission" means the State Employees Group Insurance
23Advisory Commission authorized by this Act. Commencing July 1,
241984, "Commission" as used in this Act means the Commission on
25Government Forecasting and Accountability as established by
26the Legislative Commission Reorganization Act of 1984.

 

 

HB0315- 5 -LRB100 06229 RPS 16264 b

1    (f) "Contributory", when referred to as contributory
2coverage, shall mean optional coverages or benefits elected by
3the member toward the cost of which such member makes
4contribution, or which are funded in whole or in part through
5the acceptance of a reduction in earnings or the foregoing of
6an increase in earnings by an employee, as distinguished from
7noncontributory coverage or benefits which are paid entirely by
8the State of Illinois without reduction of the member's salary.
9    (g) "Department" means any department, institution, board,
10commission, officer, court or any agency of the State
11government receiving appropriations and having power to
12certify payrolls to the Comptroller authorizing payments of
13salary and wages against such appropriations as are made by the
14General Assembly from any State fund, or against trust funds
15held by the State Treasurer and includes boards of trustees of
16the retirement systems created by Articles 2, 14, 15, 16 and 18
17of the Illinois Pension Code. "Department" also includes the
18Illinois Comprehensive Health Insurance Board, the Board of
19Examiners established under the Illinois Public Accounting
20Act, and the Illinois Finance Authority.
21    (h) "Dependent", when the term is used in the context of
22the health and life plan, means a member's spouse and any child
23(1) from birth to age 26 including an adopted child, a child
24who lives with the member from the time of the filing of a
25petition for adoption until entry of an order of adoption, a
26stepchild or adjudicated child, or a child who lives with the

 

 

HB0315- 6 -LRB100 06229 RPS 16264 b

1member if such member is a court appointed guardian of the
2child or (2) age 19 or over who has a mental or physical
3disability from a cause originating prior to the age of 19 (age
426 if enrolled as an adult child dependent). For the health
5plan only, the term "dependent" also includes (1) any person
6enrolled prior to the effective date of this Section who is
7dependent upon the member to the extent that the member may
8claim such person as a dependent for income tax deduction
9purposes and (2) any person who has received after June 30,
102000 an organ transplant and who is financially dependent upon
11the member and eligible to be claimed as a dependent for income
12tax purposes. A member requesting to cover any dependent must
13provide documentation as requested by the Department of Central
14Management Services and file with the Department any and all
15forms required by the Department.
16    (i) "Director" means the Director of the Illinois
17Department of Central Management Services.
18    (j) "Eligibility period" means the period of time a member
19has to elect enrollment in programs or to select benefits
20without regard to age, sex or health.
21    (k) "Employee" means and includes each officer or employee
22in the service of a department who (1) receives his
23compensation for service rendered to the department on a
24warrant issued pursuant to a payroll certified by a department
25or on a warrant or check issued and drawn by a department upon
26a trust, federal or other fund or on a warrant issued pursuant

 

 

HB0315- 7 -LRB100 06229 RPS 16264 b

1to a payroll certified by an elected or duly appointed officer
2of the State or who receives payment of the performance of
3personal services on a warrant issued pursuant to a payroll
4certified by a Department and drawn by the Comptroller upon the
5State Treasurer against appropriations made by the General
6Assembly from any fund or against trust funds held by the State
7Treasurer, and (2) is employed full-time or part-time in a
8position normally requiring actual performance of duty during
9not less than 1/2 of a normal work period, as established by
10the Director in cooperation with each department, except that
11persons elected by popular vote will be considered employees
12during the entire term for which they are elected regardless of
13hours devoted to the service of the State, and (3) except that
14"employee" does not include any person who is not eligible by
15reason of such person's employment to participate in one of the
16State retirement systems under Articles 2, 14, 15 (either the
17regular Article 15 system or the optional retirement program
18established under Section 15-158.2) or 18, or under paragraph
19(2), (3), or (5) of Section 16-106, of the Illinois Pension
20Code, but such term does include persons who are employed
21during the 6 month qualifying period under Article 14 of the
22Illinois Pension Code. Such term also includes any person who
23(1) after January 1, 1966, is receiving ordinary or accidental
24disability benefits under Articles 2, 14, 15 (including
25ordinary or accidental disability benefits under the optional
26retirement program established under Section 15-158.2),

 

 

HB0315- 8 -LRB100 06229 RPS 16264 b

1paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
2the Illinois Pension Code, for disability incurred after
3January 1, 1966, (2) receives total permanent or total
4temporary disability under the Workers' Compensation Act or
5Occupational Disease Act as a result of injuries sustained or
6illness contracted in the course of employment with the State
7of Illinois, or (3) is not otherwise covered under this Act and
8has retired as a participating member under Article 2 of the
9Illinois Pension Code but is ineligible for the retirement
10annuity under Section 2-119 of the Illinois Pension Code.
11However, a person who satisfies the criteria of the foregoing
12definition of "employee" except that such person is made
13ineligible to participate in the State Universities Retirement
14System by clause (4) of subsection (a) of Section 15-107 of the
15Illinois Pension Code is also an "employee" for the purposes of
16this Act. "Employee" also includes any person receiving or
17eligible for benefits under a sick pay plan established in
18accordance with Section 36 of the State Finance Act. "Employee"
19also includes (i) each officer or employee in the service of a
20qualified local government, including persons appointed as
21trustees of sanitary districts regardless of hours devoted to
22the service of the sanitary district, (ii) each employee in the
23service of a qualified rehabilitation facility, (iii) each
24full-time employee in the service of a qualified domestic
25violence shelter or service, and (iv) each full-time employee
26in the service of a qualified child advocacy center, as

 

 

HB0315- 9 -LRB100 06229 RPS 16264 b

1determined according to rules promulgated by the Director.
2    (l) "Member" means an employee, annuitant, retired
3employee or survivor. In the case of an annuitant or retired
4employee who first becomes an annuitant or retired employee on
5or after the effective date of this amendatory Act of the 97th
6General Assembly, the individual must meet the minimum vesting
7requirements of the applicable retirement system in order to be
8eligible for group insurance benefits under that system. In the
9case of a survivor who first becomes a survivor on or after the
10effective date of this amendatory Act of the 97th General
11Assembly, the deceased employee, annuitant, or retired
12employee upon whom the annuity is based must have been eligible
13to participate in the group insurance system under the
14applicable retirement system in order for the survivor to be
15eligible for group insurance benefits under that system.
16    (m) "Optional coverages or benefits" means those coverages
17or benefits available to the member on his or her voluntary
18election, and at his or her own expense.
19    (n) "Program" means the group life insurance, health
20benefits and other employee benefits designed and contracted
21for by the Director under this Act.
22    (o) "Health plan" means a health benefits program offered
23by the State of Illinois for persons eligible for the plan.
24    (p) "Retired employee" means any person who would be an
25annuitant as that term is defined herein but for the fact that
26such person retired prior to January 1, 1966. Such term also

 

 

HB0315- 10 -LRB100 06229 RPS 16264 b

1includes any person formerly employed by the University of
2Illinois in the Cooperative Extension Service who would be an
3annuitant but for the fact that such person was made ineligible
4to participate in the State Universities Retirement System by
5clause (4) of subsection (a) of Section 15-107 of the Illinois
6Pension Code.
7    (q) "Survivor" means a person receiving an annuity as a
8survivor of an employee or of an annuitant. "Survivor" also
9includes: (1) the surviving dependent of a person who satisfies
10the definition of "employee" except that such person is made
11ineligible to participate in the State Universities Retirement
12System by clause (4) of subsection (a) of Section 15-107 of the
13Illinois Pension Code; (2) the surviving dependent of any
14person formerly employed by the University of Illinois in the
15Cooperative Extension Service who would be an annuitant except
16for the fact that such person was made ineligible to
17participate in the State Universities Retirement System by
18clause (4) of subsection (a) of Section 15-107 of the Illinois
19Pension Code; and (3) the surviving dependent of a person who
20was an annuitant under this Act by virtue of receiving an
21alternative retirement cancellation payment under Section
2214-108.5 of the Illinois Pension Code.
23    (q-2) "SERS" means the State Employees' Retirement System
24of Illinois, created under Article 14 of the Illinois Pension
25Code.
26    (q-3) "SURS" means the State Universities Retirement

 

 

HB0315- 11 -LRB100 06229 RPS 16264 b

1System, created under Article 15 of the Illinois Pension Code.
2    (q-4) "TRS" means the Teachers' Retirement System of the
3State of Illinois, created under Article 16 of the Illinois
4Pension Code.
5    (q-5) (Blank).
6    (q-6) (Blank).
7    (q-7) (Blank).
8    (r) "Medical services" means the services provided within
9the scope of their licenses by practitioners in all categories
10licensed under the Medical Practice Act of 1987.
11    (s) "Unit of local government" means any county,
12municipality, township, school district (including a
13combination of school districts under the Intergovernmental
14Cooperation Act), special district or other unit, designated as
15a unit of local government by law, which exercises limited
16governmental powers or powers in respect to limited
17governmental subjects, any not-for-profit association with a
18membership that primarily includes townships and township
19officials, that has duties that include provision of research
20service, dissemination of information, and other acts for the
21purpose of improving township government, and that is funded
22wholly or partly in accordance with Section 85-15 of the
23Township Code; any not-for-profit corporation or association,
24with a membership consisting primarily of municipalities, that
25operates its own utility system, and provides research,
26training, dissemination of information, or other acts to

 

 

HB0315- 12 -LRB100 06229 RPS 16264 b

1promote cooperation between and among municipalities that
2provide utility services and for the advancement of the goals
3and purposes of its membership; the Southern Illinois
4Collegiate Common Market, which is a consortium of higher
5education institutions in Southern Illinois; the Illinois
6Association of Park Districts; and any hospital provider that
7is owned by a county that has 100 or fewer hospital beds and
8has not already joined the program. "Qualified local
9government" means a unit of local government approved by the
10Director and participating in a program created under
11subsection (i) of Section 10 of this Act.
12    (t) "Qualified rehabilitation facility" means any
13not-for-profit organization that is accredited by the
14Commission on Accreditation of Rehabilitation Facilities or
15certified by the Department of Human Services (as successor to
16the Department of Mental Health and Developmental
17Disabilities) to provide services to persons with disabilities
18and which receives funds from the State of Illinois for
19providing those services, approved by the Director and
20participating in a program created under subsection (j) of
21Section 10 of this Act.
22    (u) "Qualified domestic violence shelter or service" means
23any Illinois domestic violence shelter or service and its
24administrative offices funded by the Department of Human
25Services (as successor to the Illinois Department of Public
26Aid), approved by the Director and participating in a program

 

 

HB0315- 13 -LRB100 06229 RPS 16264 b

1created under subsection (k) of Section 10.
2    (v) "TRS benefit recipient" means a person who:
3        (1) is not a "member" as defined in this Section; and
4        (2) is receiving a monthly benefit or retirement
5    annuity under Article 16 of the Illinois Pension Code; and
6        (3) either (i) has at least 8 years of creditable
7    service under Article 16 of the Illinois Pension Code, or
8    (ii) was enrolled in the health insurance program offered
9    under that Article on January 1, 1996, or (iii) is the
10    survivor of a benefit recipient who had at least 8 years of
11    creditable service under Article 16 of the Illinois Pension
12    Code or was enrolled in the health insurance program
13    offered under that Article on the effective date of this
14    amendatory Act of 1995, or (iv) is a recipient or survivor
15    of a recipient of a disability benefit under Article 16 of
16    the Illinois Pension Code.
17    (w) "TRS dependent beneficiary" means a person who:
18        (1) is not a "member" or "dependent" as defined in this
19    Section; and
20        (2) is a TRS benefit recipient's: (A) spouse, (B)
21    dependent parent who is receiving at least half of his or
22    her support from the TRS benefit recipient, or (C) natural,
23    step, adjudicated, or adopted child who is (i) under age
24    26, (ii) was, on January 1, 1996, participating as a
25    dependent beneficiary in the health insurance program
26    offered under Article 16 of the Illinois Pension Code, or

 

 

HB0315- 14 -LRB100 06229 RPS 16264 b

1    (iii) age 19 or over who has a mental or physical
2    disability from a cause originating prior to the age of 19
3    (age 26 if enrolled as an adult child).
4    "TRS dependent beneficiary" does not include, as indicated
5under paragraph (2) of this subsection (w), a dependent of the
6survivor of a TRS benefit recipient who first becomes a
7dependent of a survivor of a TRS benefit recipient on or after
8the effective date of this amendatory Act of the 97th General
9Assembly unless that dependent would have been eligible for
10coverage as a dependent of the deceased TRS benefit recipient
11upon whom the survivor benefit is based.
12    (x) "Military leave" refers to individuals in basic
13training for reserves, special/advanced training, annual
14training, emergency call up, activation by the President of the
15United States, or any other training or duty in service to the
16United States Armed Forces.
17    (y) (Blank).
18    (z) "Community college benefit recipient" means a person
19who:
20        (1) is not a "member" as defined in this Section; and
21        (2) is receiving a monthly survivor's annuity or
22    retirement annuity under Article 15 of the Illinois Pension
23    Code; and
24        (3) either (i) was a full-time employee of a community
25    college district or an association of community college
26    boards created under the Public Community College Act

 

 

HB0315- 15 -LRB100 06229 RPS 16264 b

1    (other than an employee whose last employer under Article
2    15 of the Illinois Pension Code was a community college
3    district subject to Article VII of the Public Community
4    College Act) and was eligible to participate in a group
5    health benefit plan as an employee during the time of
6    employment with a community college district (other than a
7    community college district subject to Article VII of the
8    Public Community College Act) or an association of
9    community college boards, or (ii) is the survivor of a
10    person described in item (i).
11    (aa) "Community college dependent beneficiary" means a
12person who:
13        (1) is not a "member" or "dependent" as defined in this
14    Section; and
15        (2) is a community college benefit recipient's: (A)
16    spouse, (B) dependent parent who is receiving at least half
17    of his or her support from the community college benefit
18    recipient, or (C) natural, step, adjudicated, or adopted
19    child who is (i) under age 26, or (ii) age 19 or over and
20    has a mental or physical disability from a cause
21    originating prior to the age of 19 (age 26 if enrolled as
22    an adult child).
23    "Community college dependent beneficiary" does not
24include, as indicated under paragraph (2) of this subsection
25(aa), a dependent of the survivor of a community college
26benefit recipient who first becomes a dependent of a survivor

 

 

HB0315- 16 -LRB100 06229 RPS 16264 b

1of a community college benefit recipient on or after the
2effective date of this amendatory Act of the 97th General
3Assembly unless that dependent would have been eligible for
4coverage as a dependent of the deceased community college
5benefit recipient upon whom the survivor annuity is based.
6    (bb) "Qualified child advocacy center" means any Illinois
7child advocacy center and its administrative offices funded by
8the Department of Children and Family Services, as defined by
9the Children's Advocacy Center Act (55 ILCS 80/), approved by
10the Director and participating in a program created under
11subsection (n) of Section 10.
12(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
 
13    (5 ILCS 375/10)  (from Ch. 127, par. 530)
14    Sec. 10. Contributions by the State and members.
15    (a) The State shall pay the cost of basic non-contributory
16group life insurance and, subject to member paid contributions
17set by the Department or required by this Section and except as
18provided in this Section, the basic program of group health
19benefits on each eligible member, except a member, not
20otherwise covered by this Act, who has retired as a
21participating member under Article 2 of the Illinois Pension
22Code but is ineligible for the retirement annuity under Section
232-119 of the Illinois Pension Code, and part of each eligible
24member's and retired member's premiums for health insurance
25coverage for enrolled dependents as provided by Section 9. The

 

 

HB0315- 17 -LRB100 06229 RPS 16264 b

1State shall pay the cost of the basic program of group health
2benefits only after benefits are reduced by the amount of
3benefits covered by Medicare for all members and dependents who
4are eligible for benefits under Social Security or the Railroad
5Retirement system or who had sufficient Medicare-covered
6government employment, except that such reduction in benefits
7shall apply only to those members and dependents who (1) first
8become eligible for such Medicare coverage on or after July 1,
91992; or (2) are Medicare-eligible members or dependents of a
10local government unit which began participation in the program
11on or after July 1, 1992; or (3) remain eligible for, but no
12longer receive Medicare coverage which they had been receiving
13on or after July 1, 1992. The Department may determine the
14aggregate level of the State's contribution on the basis of
15actual cost of medical services adjusted for age, sex or
16geographic or other demographic characteristics which affect
17the costs of such programs.
18    The cost of participation in the basic program of group
19health benefits for the dependent or survivor of a living or
20deceased retired employee who was formerly employed by the
21University of Illinois in the Cooperative Extension Service and
22would be an annuitant but for the fact that he or she was made
23ineligible to participate in the State Universities Retirement
24System by clause (4) of subsection (a) of Section 15-107 of the
25Illinois Pension Code shall not be greater than the cost of
26participation that would otherwise apply to that dependent or

 

 

HB0315- 18 -LRB100 06229 RPS 16264 b

1survivor if he or she were the dependent or survivor of an
2annuitant under the State Universities Retirement System.
3    (a-1) (Blank).
4    (a-2) (Blank).
5    (a-3) (Blank).
6    (a-4) (Blank).
7    (a-5) (Blank).
8    (a-6) (Blank).
9    (a-7) (Blank).
10    (a-8) Any annuitant, survivor, or retired employee may
11waive or terminate coverage in the program of group health
12benefits. Any such annuitant, survivor, or retired employee who
13has waived or terminated coverage may enroll or re-enroll in
14the program of group health benefits only during the annual
15benefit choice period, as determined by the Director; except
16that in the event of termination of coverage due to nonpayment
17of premiums, the annuitant, survivor, or retired employee may
18not re-enroll in the program.
19    (a-8.5) Beginning on the effective date of this amendatory
20Act of the 97th General Assembly, the Director of Central
21Management Services shall, on an annual basis, determine the
22amount that the State shall contribute toward the basic program
23of group health benefits on behalf of annuitants (including
24individuals who (i) participated in the General Assembly
25Retirement System, the State Employees' Retirement System of
26Illinois, the State Universities Retirement System, the

 

 

HB0315- 19 -LRB100 06229 RPS 16264 b

1Teachers' Retirement System of the State of Illinois, or the
2Judges Retirement System of Illinois and (ii) qualify as
3annuitants under subsection (b) of Section 3 of this Act),
4survivors (including individuals who (i) receive an annuity as
5a survivor of an individual who participated in the General
6Assembly Retirement System, the State Employees' Retirement
7System of Illinois, the State Universities Retirement System,
8the Teachers' Retirement System of the State of Illinois, or
9the Judges Retirement System of Illinois and (ii) qualify as
10survivors under subsection (q) of Section 3 of this Act), and
11retired employees (as defined in subsection (p) of Section 3 of
12this Act). The remainder of the cost of coverage for each
13annuitant, survivor, or retired employee, as determined by the
14Director of Central Management Services, shall be the
15responsibility of that annuitant, survivor, or retired
16employee.
17    Contributions required of annuitants, survivors, and
18retired employees shall be the same for all retirement systems
19and shall also be based on whether an individual has made an
20election under Section 15-135.1 of the Illinois Pension Code.
21Contributions may be based on annuitants', survivors', or
22retired employees' Medicare eligibility, but may not be based
23on Social Security eligibility.
24    (a-9) No later than May 1 of each calendar year, the
25Director of Central Management Services shall certify in
26writing to the Executive Secretary of the State Employees'

 

 

HB0315- 20 -LRB100 06229 RPS 16264 b

1Retirement System of Illinois the amounts of the Medicare
2supplement health care premiums and the amounts of the health
3care premiums for all other retirees who are not Medicare
4eligible.
5    A separate calculation of the premiums based upon the
6actual cost of each health care plan shall be so certified.
7    The Director of Central Management Services shall provide
8to the Executive Secretary of the State Employees' Retirement
9System of Illinois such information, statistics, and other data
10as he or she may require to review the premium amounts
11certified by the Director of Central Management Services.
12    The Department of Central Management Services, or any
13successor agency designated to procure healthcare contracts
14pursuant to this Act, is authorized to establish funds,
15separate accounts provided by any bank or banks as defined by
16the Illinois Banking Act, or separate accounts provided by any
17savings and loan association or associations as defined by the
18Illinois Savings and Loan Act of 1985 to be held by the
19Director, outside the State treasury, for the purpose of
20receiving the transfer of moneys from the Local Government
21Health Insurance Reserve Fund. The Department may promulgate
22rules further defining the methodology for the transfers. Any
23interest earned by moneys in the funds or accounts shall inure
24to the Local Government Health Insurance Reserve Fund. The
25transferred moneys, and interest accrued thereon, shall be used
26exclusively for transfers to administrative service

 

 

HB0315- 21 -LRB100 06229 RPS 16264 b

1organizations or their financial institutions for payments of
2claims to claimants and providers under the self-insurance
3health plan. The transferred moneys, and interest accrued
4thereon, shall not be used for any other purpose including, but
5not limited to, reimbursement of administration fees due the
6administrative service organization pursuant to its contract
7or contracts with the Department.
8    (a-10) To the extent that participation, benefits, or
9premiums under this Act are based on a person's service credit
10under an Article of the Illinois Pension Code, service credit
11terminated in exchange for an accelerated pension benefit
12payment under Section 2-154.5, 14-147.5, 15-185.5, 16-190.5,
13or 18-161.5 of that Code shall be included in determining a
14person's service credit for the purposes of this Act.
15    (b) State employees who become eligible for this program on
16or after January 1, 1980 in positions normally requiring actual
17performance of duty not less than 1/2 of a normal work period
18but not equal to that of a normal work period, shall be given
19the option of participating in the available program. If the
20employee elects coverage, the State shall contribute on behalf
21of such employee to the cost of the employee's benefit and any
22applicable dependent supplement, that sum which bears the same
23percentage as that percentage of time the employee regularly
24works when compared to normal work period.
25    (c) The basic non-contributory coverage from the basic
26program of group health benefits shall be continued for each

 

 

HB0315- 22 -LRB100 06229 RPS 16264 b

1employee not in pay status or on active service by reason of
2(1) leave of absence due to illness or injury, (2) authorized
3educational leave of absence or sabbatical leave, or (3)
4military leave. This coverage shall continue until expiration
5of authorized leave and return to active service, but not to
6exceed 24 months for leaves under item (1) or (2). This
724-month limitation and the requirement of returning to active
8service shall not apply to persons receiving ordinary or
9accidental disability benefits or retirement benefits through
10the appropriate State retirement system or benefits under the
11Workers' Compensation or Occupational Disease Act.
12    (d) The basic group life insurance coverage shall continue,
13with full State contribution, where such person is (1) absent
14from active service by reason of disability arising from any
15cause other than self-inflicted, (2) on authorized educational
16leave of absence or sabbatical leave, or (3) on military leave.
17    (e) Where the person is in non-pay status for a period in
18excess of 30 days or on leave of absence, other than by reason
19of disability, educational or sabbatical leave, or military
20leave, such person may continue coverage only by making
21personal payment equal to the amount normally contributed by
22the State on such person's behalf. Such payments and coverage
23may be continued: (1) until such time as the person returns to
24a status eligible for coverage at State expense, but not to
25exceed 24 months or (2) until such person's employment or
26annuitant status with the State is terminated (exclusive of any

 

 

HB0315- 23 -LRB100 06229 RPS 16264 b

1additional service imposed pursuant to law).
2    (f) The Department shall establish by rule the extent to
3which other employee benefits will continue for persons in
4non-pay status or who are not in active service.
5    (g) The State shall not pay the cost of the basic
6non-contributory group life insurance, program of health
7benefits and other employee benefits for members who are
8survivors as defined by paragraphs (1) and (2) of subsection
9(q) of Section 3 of this Act. The costs of benefits for these
10survivors shall be paid by the survivors or by the University
11of Illinois Cooperative Extension Service, or any combination
12thereof. However, the State shall pay the amount of the
13reduction in the cost of participation, if any, resulting from
14the amendment to subsection (a) made by this amendatory Act of
15the 91st General Assembly.
16    (h) Those persons occupying positions with any department
17as a result of emergency appointments pursuant to Section 8b.8
18of the Personnel Code who are not considered employees under
19this Act shall be given the option of participating in the
20programs of group life insurance, health benefits and other
21employee benefits. Such persons electing coverage may
22participate only by making payment equal to the amount normally
23contributed by the State for similarly situated employees. Such
24amounts shall be determined by the Director. Such payments and
25coverage may be continued until such time as the person becomes
26an employee pursuant to this Act or such person's appointment

 

 

HB0315- 24 -LRB100 06229 RPS 16264 b

1is terminated.
2    (i) Any unit of local government within the State of
3Illinois may apply to the Director to have its employees,
4annuitants, and their dependents provided group health
5coverage under this Act on a non-insured basis. To participate,
6a unit of local government must agree to enroll all of its
7employees, who may select coverage under either the State group
8health benefits plan or a health maintenance organization that
9has contracted with the State to be available as a health care
10provider for employees as defined in this Act. A unit of local
11government must remit the entire cost of providing coverage
12under the State group health benefits plan or, for coverage
13under a health maintenance organization, an amount determined
14by the Director based on an analysis of the sex, age,
15geographic location, or other relevant demographic variables
16for its employees, except that the unit of local government
17shall not be required to enroll those of its employees who are
18covered spouses or dependents under this plan or another group
19policy or plan providing health benefits as long as (1) an
20appropriate official from the unit of local government attests
21that each employee not enrolled is a covered spouse or
22dependent under this plan or another group policy or plan, and
23(2) at least 50% of the employees are enrolled and the unit of
24local government remits the entire cost of providing coverage
25to those employees, except that a participating school district
26must have enrolled at least 50% of its full-time employees who

 

 

HB0315- 25 -LRB100 06229 RPS 16264 b

1have not waived coverage under the district's group health plan
2by participating in a component of the district's cafeteria
3plan. A participating school district is not required to enroll
4a full-time employee who has waived coverage under the
5district's health plan, provided that an appropriate official
6from the participating school district attests that the
7full-time employee has waived coverage by participating in a
8component of the district's cafeteria plan. For the purposes of
9this subsection, "participating school district" includes a
10unit of local government whose primary purpose is education as
11defined by the Department's rules.
12    Employees of a participating unit of local government who
13are not enrolled due to coverage under another group health
14policy or plan may enroll in the event of a qualifying change
15in status, special enrollment, special circumstance as defined
16by the Director, or during the annual Benefit Choice Period. A
17participating unit of local government may also elect to cover
18its annuitants. Dependent coverage shall be offered on an
19optional basis, with the costs paid by the unit of local
20government, its employees, or some combination of the two as
21determined by the unit of local government. The unit of local
22government shall be responsible for timely collection and
23transmission of dependent premiums.
24    The Director shall annually determine monthly rates of
25payment, subject to the following constraints:
26        (1) In the first year of coverage, the rates shall be

 

 

HB0315- 26 -LRB100 06229 RPS 16264 b

1    equal to the amount normally charged to State employees for
2    elected optional coverages or for enrolled dependents
3    coverages or other contributory coverages, or contributed
4    by the State for basic insurance coverages on behalf of its
5    employees, adjusted for differences between State
6    employees and employees of the local government in age,
7    sex, geographic location or other relevant demographic
8    variables, plus an amount sufficient to pay for the
9    additional administrative costs of providing coverage to
10    employees of the unit of local government and their
11    dependents.
12        (2) In subsequent years, a further adjustment shall be
13    made to reflect the actual prior years' claims experience
14    of the employees of the unit of local government.
15    In the case of coverage of local government employees under
16a health maintenance organization, the Director shall annually
17determine for each participating unit of local government the
18maximum monthly amount the unit may contribute toward that
19coverage, based on an analysis of (i) the age, sex, geographic
20location, and other relevant demographic variables of the
21unit's employees and (ii) the cost to cover those employees
22under the State group health benefits plan. The Director may
23similarly determine the maximum monthly amount each unit of
24local government may contribute toward coverage of its
25employees' dependents under a health maintenance organization.
26    Monthly payments by the unit of local government or its

 

 

HB0315- 27 -LRB100 06229 RPS 16264 b

1employees for group health benefits plan or health maintenance
2organization coverage shall be deposited in the Local
3Government Health Insurance Reserve Fund.
4    The Local Government Health Insurance Reserve Fund is
5hereby created as a nonappropriated trust fund to be held
6outside the State Treasury, with the State Treasurer as
7custodian. The Local Government Health Insurance Reserve Fund
8shall be a continuing fund not subject to fiscal year
9limitations. The Local Government Health Insurance Reserve
10Fund is not subject to administrative charges or charge-backs,
11including but not limited to those authorized under Section 8h
12of the State Finance Act. All revenues arising from the
13administration of the health benefits program established
14under this Section shall be deposited into the Local Government
15Health Insurance Reserve Fund. Any interest earned on moneys in
16the Local Government Health Insurance Reserve Fund shall be
17deposited into the Fund. All expenditures from this Fund shall
18be used for payments for health care benefits for local
19government and rehabilitation facility employees, annuitants,
20and dependents, and to reimburse the Department or its
21administrative service organization for all expenses incurred
22in the administration of benefits. No other State funds may be
23used for these purposes.
24    A local government employer's participation or desire to
25participate in a program created under this subsection shall
26not limit that employer's duty to bargain with the

 

 

HB0315- 28 -LRB100 06229 RPS 16264 b

1representative of any collective bargaining unit of its
2employees.
3    (j) Any rehabilitation facility within the State of
4Illinois may apply to the Director to have its employees,
5annuitants, and their eligible dependents provided group
6health coverage under this Act on a non-insured basis. To
7participate, a rehabilitation facility must agree to enroll all
8of its employees and remit the entire cost of providing such
9coverage for its employees, except that the rehabilitation
10facility shall not be required to enroll those of its employees
11who are covered spouses or dependents under this plan or
12another group policy or plan providing health benefits as long
13as (1) an appropriate official from the rehabilitation facility
14attests that each employee not enrolled is a covered spouse or
15dependent under this plan or another group policy or plan, and
16(2) at least 50% of the employees are enrolled and the
17rehabilitation facility remits the entire cost of providing
18coverage to those employees. Employees of a participating
19rehabilitation facility who are not enrolled due to coverage
20under another group health policy or plan may enroll in the
21event of a qualifying change in status, special enrollment,
22special circumstance as defined by the Director, or during the
23annual Benefit Choice Period. A participating rehabilitation
24facility may also elect to cover its annuitants. Dependent
25coverage shall be offered on an optional basis, with the costs
26paid by the rehabilitation facility, its employees, or some

 

 

HB0315- 29 -LRB100 06229 RPS 16264 b

1combination of the 2 as determined by the rehabilitation
2facility. The rehabilitation facility shall be responsible for
3timely collection and transmission of dependent premiums.
4    The Director shall annually determine quarterly rates of
5payment, subject to the following constraints:
6        (1) In the first year of coverage, the rates shall be
7    equal to the amount normally charged to State employees for
8    elected optional coverages or for enrolled dependents
9    coverages or other contributory coverages on behalf of its
10    employees, adjusted for differences between State
11    employees and employees of the rehabilitation facility in
12    age, sex, geographic location or other relevant
13    demographic variables, plus an amount sufficient to pay for
14    the additional administrative costs of providing coverage
15    to employees of the rehabilitation facility and their
16    dependents.
17        (2) In subsequent years, a further adjustment shall be
18    made to reflect the actual prior years' claims experience
19    of the employees of the rehabilitation facility.
20    Monthly payments by the rehabilitation facility or its
21employees for group health benefits shall be deposited in the
22Local Government Health Insurance Reserve Fund.
23    (k) Any domestic violence shelter or service within the
24State of Illinois may apply to the Director to have its
25employees, annuitants, and their dependents provided group
26health coverage under this Act on a non-insured basis. To

 

 

HB0315- 30 -LRB100 06229 RPS 16264 b

1participate, a domestic violence shelter or service must agree
2to enroll all of its employees and pay the entire cost of
3providing such coverage for its employees. The domestic
4violence shelter shall not be required to enroll those of its
5employees who are covered spouses or dependents under this plan
6or another group policy or plan providing health benefits as
7long as (1) an appropriate official from the domestic violence
8shelter attests that each employee not enrolled is a covered
9spouse or dependent under this plan or another group policy or
10plan and (2) at least 50% of the employees are enrolled and the
11domestic violence shelter remits the entire cost of providing
12coverage to those employees. Employees of a participating
13domestic violence shelter who are not enrolled due to coverage
14under another group health policy or plan may enroll in the
15event of a qualifying change in status, special enrollment, or
16special circumstance as defined by the Director or during the
17annual Benefit Choice Period. A participating domestic
18violence shelter may also elect to cover its annuitants.
19Dependent coverage shall be offered on an optional basis, with
20employees, or some combination of the 2 as determined by the
21domestic violence shelter or service. The domestic violence
22shelter or service shall be responsible for timely collection
23and transmission of dependent premiums.
24    The Director shall annually determine rates of payment,
25subject to the following constraints:
26        (1) In the first year of coverage, the rates shall be

 

 

HB0315- 31 -LRB100 06229 RPS 16264 b

1    equal to the amount normally charged to State employees for
2    elected optional coverages or for enrolled dependents
3    coverages or other contributory coverages on behalf of its
4    employees, adjusted for differences between State
5    employees and employees of the domestic violence shelter or
6    service in age, sex, geographic location or other relevant
7    demographic variables, plus an amount sufficient to pay for
8    the additional administrative costs of providing coverage
9    to employees of the domestic violence shelter or service
10    and their dependents.
11        (2) In subsequent years, a further adjustment shall be
12    made to reflect the actual prior years' claims experience
13    of the employees of the domestic violence shelter or
14    service.
15    Monthly payments by the domestic violence shelter or
16service or its employees for group health insurance shall be
17deposited in the Local Government Health Insurance Reserve
18Fund.
19    (l) A public community college or entity organized pursuant
20to the Public Community College Act may apply to the Director
21initially to have only annuitants not covered prior to July 1,
221992 by the district's health plan provided health coverage
23under this Act on a non-insured basis. The community college
24must execute a 2-year contract to participate in the Local
25Government Health Plan. Any annuitant may enroll in the event
26of a qualifying change in status, special enrollment, special

 

 

HB0315- 32 -LRB100 06229 RPS 16264 b

1circumstance as defined by the Director, or during the annual
2Benefit Choice Period.
3    The Director shall annually determine monthly rates of
4payment subject to the following constraints: for those
5community colleges with annuitants only enrolled, first year
6rates shall be equal to the average cost to cover claims for a
7State member adjusted for demographics, Medicare
8participation, and other factors; and in the second year, a
9further adjustment of rates shall be made to reflect the actual
10first year's claims experience of the covered annuitants.
11    (l-5) The provisions of subsection (l) become inoperative
12on July 1, 1999.
13    (m) The Director shall adopt any rules deemed necessary for
14implementation of this amendatory Act of 1989 (Public Act
1586-978).
16    (n) Any child advocacy center within the State of Illinois
17may apply to the Director to have its employees, annuitants,
18and their dependents provided group health coverage under this
19Act on a non-insured basis. To participate, a child advocacy
20center must agree to enroll all of its employees and pay the
21entire cost of providing coverage for its employees. The child
22advocacy center shall not be required to enroll those of its
23employees who are covered spouses or dependents under this plan
24or another group policy or plan providing health benefits as
25long as (1) an appropriate official from the child advocacy
26center attests that each employee not enrolled is a covered

 

 

HB0315- 33 -LRB100 06229 RPS 16264 b

1spouse or dependent under this plan or another group policy or
2plan and (2) at least 50% of the employees are enrolled and the
3child advocacy center remits the entire cost of providing
4coverage to those employees. Employees of a participating child
5advocacy center who are not enrolled due to coverage under
6another group health policy or plan may enroll in the event of
7a qualifying change in status, special enrollment, or special
8circumstance as defined by the Director or during the annual
9Benefit Choice Period. A participating child advocacy center
10may also elect to cover its annuitants. Dependent coverage
11shall be offered on an optional basis, with the costs paid by
12the child advocacy center, its employees, or some combination
13of the 2 as determined by the child advocacy center. The child
14advocacy center shall be responsible for timely collection and
15transmission of dependent premiums.
16    The Director shall annually determine rates of payment,
17subject to the following constraints:
18        (1) In the first year of coverage, the rates shall be
19    equal to the amount normally charged to State employees for
20    elected optional coverages or for enrolled dependents
21    coverages or other contributory coverages on behalf of its
22    employees, adjusted for differences between State
23    employees and employees of the child advocacy center in
24    age, sex, geographic location, or other relevant
25    demographic variables, plus an amount sufficient to pay for
26    the additional administrative costs of providing coverage

 

 

HB0315- 34 -LRB100 06229 RPS 16264 b

1    to employees of the child advocacy center and their
2    dependents.
3        (2) In subsequent years, a further adjustment shall be
4    made to reflect the actual prior years' claims experience
5    of the employees of the child advocacy center.
6    Monthly payments by the child advocacy center or its
7employees for group health insurance shall be deposited into
8the Local Government Health Insurance Reserve Fund.
9(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
 
10    Section 10. The Illinois Finance Authority Act is amended
11by changing Section 801-40 as follows:
 
12    (20 ILCS 3501/801-40)
13    Sec. 801-40. In addition to the powers otherwise authorized
14by law and in addition to the foregoing general corporate
15powers, the Authority shall also have the following additional
16specific powers to be exercised in furtherance of the purposes
17of this Act.
18    (a) The Authority shall have power (i) to accept grants,
19loans or appropriations from the federal government or the
20State, or any agency or instrumentality thereof, to be used for
21the operating expenses of the Authority, or for any purposes of
22the Authority, including the making of direct loans of such
23funds with respect to projects, and (ii) to enter into any
24agreement with the federal government or the State, or any

 

 

HB0315- 35 -LRB100 06229 RPS 16264 b

1agency or instrumentality thereof, in relationship to such
2grants, loans or appropriations.
3    (b) The Authority shall have power to procure and enter
4into contracts for any type of insurance and indemnity
5agreements covering loss or damage to property from any cause,
6including loss of use and occupancy, or covering any other
7insurable risk.
8    (c) The Authority shall have the continuing power to issue
9bonds for its corporate purposes. Bonds may be issued by the
10Authority in one or more series and may provide for the payment
11of any interest deemed necessary on such bonds, of the costs of
12issuance of such bonds, of any premium on any insurance, or of
13the cost of any guarantees, letters of credit or other similar
14documents, may provide for the funding of the reserves deemed
15necessary in connection with such bonds, and may provide for
16the refunding or advance refunding of any bonds or for accounts
17deemed necessary in connection with any purpose of the
18Authority. The bonds may bear interest payable at any time or
19times and at any rate or rates, notwithstanding any other
20provision of law to the contrary, and such rate or rates may be
21established by an index or formula which may be implemented or
22established by persons appointed or retained therefor by the
23Authority, or may bear no interest or may bear interest payable
24at maturity or upon redemption prior to maturity, may bear such
25date or dates, may be payable at such time or times and at such
26place or places, may mature at any time or times not later than

 

 

HB0315- 36 -LRB100 06229 RPS 16264 b

140 years from the date of issuance, may be sold at public or
2private sale at such time or times and at such price or prices,
3may be secured by such pledges, reserves, guarantees, letters
4of credit, insurance contracts or other similar credit support
5or liquidity instruments, may be executed in such manner, may
6be subject to redemption prior to maturity, may provide for the
7registration of the bonds, and may be subject to such other
8terms and conditions all as may be provided by the resolution
9or indenture authorizing the issuance of such bonds. The holder
10or holders of any bonds issued by the Authority may bring suits
11at law or proceedings in equity to compel the performance and
12observance by any person or by the Authority or any of its
13agents or employees of any contract or covenant made with the
14holders of such bonds and to compel such person or the
15Authority and any of its agents or employees to perform any
16duties required to be performed for the benefit of the holders
17of any such bonds by the provision of the resolution
18authorizing their issuance, and to enjoin such person or the
19Authority and any of its agents or employees from taking any
20action in conflict with any such contract or covenant.
21Notwithstanding the form and tenor of any such bonds and in the
22absence of any express recital on the face thereof that it is
23non-negotiable, all such bonds shall be negotiable
24instruments. Pending the preparation and execution of any such
25bonds, temporary bonds may be issued as provided by the
26resolution. The bonds shall be sold by the Authority in such

 

 

HB0315- 37 -LRB100 06229 RPS 16264 b

1manner as it shall determine. The bonds may be secured as
2provided in the authorizing resolution by the receipts,
3revenues, income and other available funds of the Authority and
4by any amounts derived by the Authority from the loan agreement
5or lease agreement with respect to the project or projects; and
6bonds may be issued as general obligations of the Authority
7payable from such revenues, funds and obligations of the
8Authority as the bond resolution shall provide, or may be
9issued as limited obligations with a claim for payment solely
10from such revenues, funds and obligations as the bond
11resolution shall provide. The Authority may grant a specific
12pledge or assignment of and lien on or security interest in
13such rights, revenues, income, or amounts and may grant a
14specific pledge or assignment of and lien on or security
15interest in any reserves, funds or accounts established in the
16resolution authorizing the issuance of bonds. Any such pledge,
17assignment, lien or security interest for the benefit of the
18holders of the Authority's bonds shall be valid and binding
19from the time the bonds are issued without any physical
20delivery or further act, and shall be valid and binding as
21against and prior to the claims of all other parties having
22claims against the Authority or any other person irrespective
23of whether the other parties have notice of the pledge,
24assignment, lien or security interest. As evidence of such
25pledge, assignment, lien and security interest, the Authority
26may execute and deliver a mortgage, trust agreement, indenture

 

 

HB0315- 38 -LRB100 06229 RPS 16264 b

1or security agreement or an assignment thereof. A remedy for
2any breach or default of the terms of any such agreement by the
3Authority may be by mandamus proceedings in any court of
4competent jurisdiction to compel the performance and
5compliance therewith, but the agreement may prescribe by whom
6or on whose behalf such action may be instituted. It is
7expressly understood that the Authority may, but need not,
8acquire title to any project with respect to which it exercises
9its authority.
10    (c-5) The Authority shall have the power to issue State
11Pension Obligation Acceleration Bonds if in any fiscal year the
12amount appropriated for all accelerated pension benefit
13payments is less than the amount required for those payments.
14The proceeds from the State Pension Obligation Acceleration
15Bonds issued under this subsection may only be used to pay for
16accelerated pension benefit payments for the fiscal year in
17which the State Pension Obligation Acceleration Bonds are
18issued.
19    The Authority shall not have outstanding at any one time
20State Pension Obligation Acceleration Bonds for any of the
21purposes of this subsection in an aggregate principal amount
22exceeding $250,000,000, excluding bonds issued to refund
23outstanding State Pension Obligation Acceleration Bonds.
24    (d) With respect to the powers granted by this Act, the
25Authority may adopt rules and regulations prescribing the
26procedures by which persons may apply for assistance under this

 

 

HB0315- 39 -LRB100 06229 RPS 16264 b

1Act. Nothing herein shall be deemed to preclude the Authority,
2prior to the filing of any formal application, from conducting
3preliminary discussions and investigations with respect to the
4subject matter of any prospective application.
5    (e) The Authority shall have power to acquire by purchase,
6lease, gift or otherwise any property or rights therein from
7any person useful for its purposes, whether improved for the
8purposes of any prospective project, or unimproved. The
9Authority may also accept any donation of funds for its
10purposes from any such source. The Authority shall have no
11independent power of condemnation but may acquire any property
12or rights therein obtained upon condemnation by any other
13authority, governmental entity or unit of local government with
14such power.
15    (f) The Authority shall have power to develop, construct
16and improve either under its own direction, or through
17collaboration with any approved applicant, or to acquire
18through purchase or otherwise, any project, using for such
19purpose the proceeds derived from the sale of its bonds or from
20governmental loans or grants, and to hold title in the name of
21the Authority to such projects.
22    (g) The Authority shall have power to lease pursuant to a
23lease agreement any project so developed and constructed or
24acquired to the approved tenant on such terms and conditions as
25may be appropriate to further the purposes of this Act and to
26maintain the credit of the Authority. Any such lease may

 

 

HB0315- 40 -LRB100 06229 RPS 16264 b

1provide for either the Authority or the approved tenant to
2assume initially, in whole or in part, the costs of
3maintenance, repair and improvements during the leasehold
4period. In no case, however, shall the total rentals from any
5project during any initial leasehold period or the total loan
6repayments to be made pursuant to any loan agreement, be less
7than an amount necessary to return over such lease or loan
8period (1) all costs incurred in connection with the
9development, construction, acquisition or improvement of the
10project and for repair, maintenance and improvements thereto
11during the period of the lease or loan; provided, however, that
12the rentals or loan repayments need not include costs met
13through the use of funds other than those obtained by the
14Authority through the issuance of its bonds or governmental
15loans; (2) a reasonable percentage additive to be agreed upon
16by the Authority and the borrower or tenant to cover a properly
17allocable portion of the Authority's general expenses,
18including, but not limited to, administrative expenses,
19salaries and general insurance, and (3) an amount sufficient to
20pay when due all principal of, interest and premium, if any on,
21any bonds issued by the Authority with respect to the project.
22The portion of total rentals payable under clause (3) of this
23subsection (g) shall be deposited in such special accounts,
24including all sinking funds, acquisition or construction
25funds, debt service and other funds as provided by any
26resolution, mortgage or trust agreement of the Authority

 

 

HB0315- 41 -LRB100 06229 RPS 16264 b

1pursuant to which any bond is issued.
2    (h) The Authority has the power, upon the termination of
3any leasehold period of any project, to sell or lease for a
4further term or terms such project on such terms and conditions
5as the Authority shall deem reasonable and consistent with the
6purposes of the Act. The net proceeds from all such sales and
7the revenues or income from such leases shall be used to
8satisfy any indebtedness of the Authority with respect to such
9project and any balance may be used to pay any expenses of the
10Authority or be used for the further development, construction,
11acquisition or improvement of projects. In the event any
12project is vacated by a tenant prior to the termination of the
13initial leasehold period, the Authority shall sell or lease the
14facilities of the project on the most advantageous terms
15available. The net proceeds of any such disposition shall be
16treated in the same manner as the proceeds from sales or the
17revenues or income from leases subsequent to the termination of
18any initial leasehold period.
19    (i) The Authority shall have the power to make loans to
20persons to finance a project, to enter into loan agreements
21with respect thereto, and to accept guarantees from persons of
22its loans or the resultant evidences of obligations of the
23Authority.
24    (j) The Authority may fix, determine, charge and collect
25any premiums, fees, charges, costs and expenses, including,
26without limitation, any application fees, commitment fees,

 

 

HB0315- 42 -LRB100 06229 RPS 16264 b

1program fees, financing charges or publication fees from any
2person in connection with its activities under this Act.
3    (k) In addition to the funds established as provided
4herein, the Authority shall have the power to create and
5establish such reserve funds and accounts as may be necessary
6or desirable to accomplish its purposes under this Act and to
7deposit its available monies into the funds and accounts.
8    (l) At the request of the governing body of any unit of
9local government, the Authority is authorized to market such
10local government's revenue bond offerings by preparing bond
11issues for sale, advertising for sealed bids, receiving bids at
12its offices, making the award to the bidder that offers the
13most favorable terms or arranging for negotiated placements or
14underwritings of such securities. The Authority may, at its
15discretion, offer for concurrent sale the revenue bonds of
16several local governments. Sales by the Authority of revenue
17bonds under this Section shall in no way imply State guarantee
18of such debt issue. The Authority may require such financial
19information from participating local governments as it deems
20necessary in order to carry out the purposes of this subsection
21(1).
22    (m) The Authority may make grants to any county to which
23Division 5-37 of the Counties Code is applicable to assist in
24the financing of capital development, construction and
25renovation of new or existing facilities for hospitals and
26health care facilities under that Act. Such grants may only be

 

 

HB0315- 43 -LRB100 06229 RPS 16264 b

1made from funds appropriated for such purposes from the Build
2Illinois Bond Fund.
3    (n) The Authority may establish an urban development action
4grant program for the purpose of assisting municipalities in
5Illinois which are experiencing severe economic distress to
6help stimulate economic development activities needed to aid in
7economic recovery. The Authority shall determine the types of
8activities and projects for which the urban development action
9grants may be used, provided that such projects and activities
10are broadly defined to include all reasonable projects and
11activities the primary objectives of which are the development
12of viable urban communities, including decent housing and a
13suitable living environment, and expansion of economic
14opportunity, principally for persons of low and moderate
15incomes. The Authority shall enter into grant agreements from
16monies appropriated for such purposes from the Build Illinois
17Bond Fund. The Authority shall monitor the use of the grants,
18and shall provide for audits of the funds as well as recovery
19by the Authority of any funds determined to have been spent in
20violation of this subsection (n) or any rule or regulation
21promulgated hereunder. The Authority shall provide technical
22assistance with regard to the effective use of the urban
23development action grants. The Authority shall file an annual
24report to the General Assembly concerning the progress of the
25grant program.
26    (o) The Authority may establish a Housing Partnership

 

 

HB0315- 44 -LRB100 06229 RPS 16264 b

1Program whereby the Authority provides zero-interest loans to
2municipalities for the purpose of assisting in the financing of
3projects for the rehabilitation of affordable multi-family
4housing for low and moderate income residents. The Authority
5may provide such loans only upon a municipality's providing
6evidence that it has obtained private funding for the
7rehabilitation project. The Authority shall provide 3 State
8dollars for every 7 dollars obtained by the municipality from
9sources other than the State of Illinois. The loans shall be
10made from monies appropriated for such purpose from the Build
11Illinois Bond Fund. The total amount of loans available under
12the Housing Partnership Program shall not exceed $30,000,000.
13State loan monies under this subsection shall be used only for
14the acquisition and rehabilitation of existing buildings
15containing 4 or more dwelling units. The terms of any loan made
16by the municipality under this subsection shall require
17repayment of the loan to the municipality upon any sale or
18other transfer of the project.
19    (p) The Authority may award grants to universities and
20research institutions, research consortiums and other
21not-for-profit entities for the purposes of: remodeling or
22otherwise physically altering existing laboratory or research
23facilities, expansion or physical additions to existing
24laboratory or research facilities, construction of new
25laboratory or research facilities or acquisition of modern
26equipment to support laboratory or research operations

 

 

HB0315- 45 -LRB100 06229 RPS 16264 b

1provided that such grants (i) be used solely in support of
2project and equipment acquisitions which enhance technology
3transfer, and (ii) not constitute more than 60 percent of the
4total project or acquisition cost.
5    (q) Grants may be awarded by the Authority to units of
6local government for the purpose of developing the appropriate
7infrastructure or defraying other costs to the local government
8in support of laboratory or research facilities provided that
9such grants may not exceed 40% of the cost to the unit of local
10government.
11    (r) The Authority may establish a Direct Loan Program to
12make loans to individuals, partnerships or corporations for the
13purpose of an industrial project, as defined in Section 801-10
14of this Act. For the purposes of such program and not by way of
15limitation on any other program of the Authority, the Authority
16shall have the power to issue bonds, notes, or other evidences
17of indebtedness including commercial paper for purposes of
18providing a fund of capital from which it may make such loans.
19The Authority shall have the power to use any appropriations
20from the State made especially for the Authority's Direct Loan
21Program for additional capital to make such loans or for the
22purposes of reserve funds or pledged funds which secure the
23Authority's obligations of repayment of any bond, note or other
24form of indebtedness established for the purpose of providing
25capital for which it intends to make such loans under the
26Direct Loan Program. For the purpose of obtaining such capital,

 

 

HB0315- 46 -LRB100 06229 RPS 16264 b

1the Authority may also enter into agreements with financial
2institutions and other persons for the purpose of selling loans
3and developing a secondary market for such loans. Loans made
4under the Direct Loan Program may be in an amount not to exceed
5$300,000 and shall be made for a portion of an industrial
6project which does not exceed 50% of the total project. No loan
7may be made by the Authority unless approved by the affirmative
8vote of at least 8 members of the board. The Authority shall
9establish procedures and publish rules which shall provide for
10the submission, review, and analysis of each direct loan
11application and which shall preserve the ability of each board
12member to reach an individual business judgment regarding the
13propriety of making each direct loan. The collective discretion
14of the board to approve or disapprove each loan shall be
15unencumbered. The Authority may establish and collect such fees
16and charges, determine and enforce such terms and conditions,
17and charge such interest rates as it determines to be necessary
18and appropriate to the successful administration of the Direct
19Loan Program. The Authority may require such interests in
20collateral and such guarantees as it determines are necessary
21to project the Authority's interest in the repayment of the
22principal and interest of each loan made under the Direct Loan
23Program.
24    (s) The Authority may guarantee private loans to third
25parties up to a specified dollar amount in order to promote
26economic development in this State.

 

 

HB0315- 47 -LRB100 06229 RPS 16264 b

1    (t) The Authority may adopt rules and regulations as may be
2necessary or advisable to implement the powers conferred by
3this Act.
4    (u) The Authority shall have the power to issue bonds,
5notes or other evidences of indebtedness, which may be used to
6make loans to units of local government which are authorized to
7enter into loan agreements and other documents and to issue
8bonds, notes and other evidences of indebtedness for the
9purpose of financing the protection of storm sewer outfalls,
10the construction of adequate storm sewer outfalls, and the
11provision for flood protection of sanitary sewage treatment
12plans, in counties that have established a stormwater
13management planning committee in accordance with Section
145-1062 of the Counties Code. Any such loan shall be made by the
15Authority pursuant to the provisions of Section 820-5 to 820-60
16of this Act. The unit of local government shall pay back to the
17Authority the principal amount of the loan, plus annual
18interest as determined by the Authority. The Authority shall
19have the power, subject to appropriations by the General
20Assembly, to subsidize or buy down a portion of the interest on
21such loans, up to 4% per annum.
22    (v) The Authority may accept security interests as provided
23in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
24    (w) Moral Obligation. In the event that the Authority
25determines that monies of the Authority will not be sufficient
26for the payment of the principal of and interest on its bonds

 

 

HB0315- 48 -LRB100 06229 RPS 16264 b

1during the next State fiscal year, the Chairperson, as soon as
2practicable, shall certify to the Governor the amount required
3by the Authority to enable it to pay such principal of and
4interest on the bonds. The Governor shall submit the amount so
5certified to the General Assembly as soon as practicable, but
6no later than the end of the current State fiscal year. This
7subsection shall apply only to any bonds or notes as to which
8the Authority shall have determined, in the resolution
9authorizing the issuance of the bonds or notes, that this
10subsection shall apply. Whenever the Authority makes such a
11determination, that fact shall be plainly stated on the face of
12the bonds or notes and that fact shall also be reported to the
13Governor. In the event of a withdrawal of moneys from a reserve
14fund established with respect to any issue or issues of bonds
15of the Authority to pay principal or interest on those bonds,
16the Chairperson of the Authority, as soon as practicable, shall
17certify to the Governor the amount required to restore the
18reserve fund to the level required in the resolution or
19indenture securing those bonds. The Governor shall submit the
20amount so certified to the General Assembly as soon as
21practicable, but no later than the end of the current State
22fiscal year. The Authority shall obtain written approval from
23the Governor for any bonds and notes to be issued under this
24Section. In addition to any other bonds authorized to be issued
25under Sections 825-60, 825-65(e), 830-25 and 845-5, the
26principal amount of Authority bonds outstanding issued under

 

 

HB0315- 49 -LRB100 06229 RPS 16264 b

1this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
2360/2-6(c), which have been assumed by the Authority, shall not
3exceed $150,000,000. This subsection (w) shall in no way be
4applied to any bonds issued by the Authority on behalf of the
5Illinois Power Agency under Section 825-90 of this Act.
6    (x) The Authority may enter into agreements or contracts
7with any person necessary or appropriate to place the payment
8obligations of the Authority under any of its bonds in whole or
9in part on any interest rate basis, cash flow basis, or other
10basis desired by the Authority, including without limitation
11agreements or contracts commonly known as "interest rate swap
12agreements", "forward payment conversion agreements", and
13"futures", or agreements or contracts to exchange cash flows or
14a series of payments, or agreements or contracts, including
15without limitation agreements or contracts commonly known as
16"options", "puts", or "calls", to hedge payment, rate spread,
17or similar exposure; provided that any such agreement or
18contract shall not constitute an obligation for borrowed money
19and shall not be taken into account under Section 845-5 of this
20Act or any other debt limit of the Authority or the State of
21Illinois.
22    (y) The Authority shall publish summaries of projects and
23actions approved by the members of the Authority on its
24website. These summaries shall include, but not be limited to,
25information regarding the:
26        (1) project;

 

 

HB0315- 50 -LRB100 06229 RPS 16264 b

1        (2) Board's action or actions;
2        (3) purpose of the project;
3        (4) Authority's program and contribution;
4        (5) volume cap;
5        (6) jobs retained;
6        (7) projected new jobs;
7        (8) construction jobs created;
8        (9) estimated sources and uses of funds;
9        (10) financing summary;
10        (11) project summary;
11        (12) business summary;
12        (13) ownership or economic disclosure statement;
13        (14) professional and financial information;
14        (15) service area; and
15        (16) legislative district.
16    The disclosure of information pursuant to this subsection
17shall comply with the Freedom of Information Act.
18(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
1995-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
20P.A. 96-793 for the effective date of changes made by P.A.
2196-795).)
 
22    Section 15. The State Finance Act is amended by adding
23Section 5.878 as follows:
 
24    (30 ILCS 105/5.878 new)

 

 

HB0315- 51 -LRB100 06229 RPS 16264 b

1    Sec. 5.878. The State Pension Obligation Acceleration Bond
2Fund.
 
3    Section 20. The General Obligation Bond Act is amended by
4changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
5Section 7.6 as follows:
 
6    (30 ILCS 330/2)  (from Ch. 127, par. 652)
7    Sec. 2. Authorization for Bonds. The State of Illinois is
8authorized to issue, sell and provide for the retirement of
9General Obligation Bonds of the State of Illinois for the
10categories and specific purposes expressed in Sections 2
11through 8 of this Act, in the total amount of $50,167,925,743
12$49,917,925,743.
13    The bonds authorized in this Section 2 and in Section 16 of
14this Act are herein called "Bonds".
15    Of the total amount of Bonds authorized in this Act, up to
16$2,200,000,000 in aggregate original principal amount may be
17issued and sold in accordance with the Baccalaureate Savings
18Act in the form of General Obligation College Savings Bonds.
19    Of the total amount of Bonds authorized in this Act, up to
20$300,000,000 in aggregate original principal amount may be
21issued and sold in accordance with the Retirement Savings Act
22in the form of General Obligation Retirement Savings Bonds.
23    Of the total amount of Bonds authorized in this Act, the
24additional $10,000,000,000 authorized by Public Act 93-2, the

 

 

HB0315- 52 -LRB100 06229 RPS 16264 b

1$3,466,000,000 authorized by Public Act 96-43, and the
2$4,096,348,300 authorized by Public Act 96-1497 shall be used
3solely as provided in Section 7.2.
4    Of the total amount of Bonds authorized in this Act, the
5additional $250,000,000 authorized by this amendatory Act of
6the 100th General Assembly shall be used solely as provided in
7Section 7.6.
8    The issuance and sale of Bonds pursuant to the General
9Obligation Bond Act is an economical and efficient method of
10financing the long-term capital needs of the State. This Act
11will permit the issuance of a multi-purpose General Obligation
12Bond with uniform terms and features. This will not only lower
13the cost of registration but also reduce the overall cost of
14issuing debt by improving the marketability of Illinois General
15Obligation Bonds.
16(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
1797-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
188-16-13; 98-781, eff. 7-22-14.)
 
19    (30 ILCS 330/2.5)
20    Sec. 2.5. Limitation on issuance of Bonds.
21    (a) Except as provided in subsection (b), no Bonds may be
22issued if, after the issuance, in the next State fiscal year
23after the issuance of the Bonds, the amount of debt service
24(including principal, whether payable at maturity or pursuant
25to mandatory sinking fund installments, and interest) on all

 

 

HB0315- 53 -LRB100 06229 RPS 16264 b

1then-outstanding Bonds, other than (i) Bonds authorized by this
2amendatory Act of the 100th General Assembly, (ii) Bonds
3authorized by Public Act 96-43, and (iii) other than Bonds
4authorized by Public Act 96-1497, would exceed 7% of the
5aggregate appropriations from the general funds (which consist
6of the General Revenue Fund, the Common School Fund, the
7General Revenue Common School Special Account Fund, and the
8Education Assistance Fund) and the Road Fund for the fiscal
9year immediately prior to the fiscal year of the issuance.
10    (b) If the Comptroller and Treasurer each consent in
11writing, Bonds may be issued even if the issuance does not
12comply with subsection (a). In addition, $2,000,000,000 in
13Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
14and $2,000,000,000 in Refunding Bonds under Section 16, may be
15issued during State fiscal year 2017 without complying with
16subsection (a).
17(Source: P.A. 99-523, eff. 6-30-16.)
 
18    (30 ILCS 330/7.6 new)
19    Sec. 7.6. State Pension Obligation Acceleration Bonds.
20    (a) As used in this Act, "State Pension Obligation
21Acceleration Bonds" means Bonds authorized by this amendatory
22Act of the 100th General Assembly and used for the purposes set
23forth in subsection (c-5) of Section 801-40 of the Illinois
24Finance Authority Act.
25    (b) State Pension Obligation Acceleration Bonds in the

 

 

HB0315- 54 -LRB100 06229 RPS 16264 b

1amount of $250,000,000 are hereby authorized to be used for the
2purposes set forth in subsection (c-5) of Section 801-40 of the
3Illinois Finance Authority Act.
4    (c) The proceeds of State Pension Obligation Acceleration
5Bonds authorized in subsection (b) of this Section, less the
6amounts authorized in the Bond Sale Order to be directly paid
7out for bond sale expenses under Section 8, shall be deposited
8directly into the State Pension Obligation Acceleration Bond
9Fund, and the Comptroller and the Treasurer shall, as soon as
10practical, make payments as contemplated by subsection (c-5) of
11Section 801-40 of the Illinois Finance Authority Act.
12    (d) There is created the State Pension Obligation
13Acceleration Bond Fund as a special fund in the State Treasury.
14Funds deposited in the State Pension Obligation Acceleration
15Bond Fund may only be used for the purposes set forth in
16subsection (c-5) of Section 801-40 of the Illinois Finance
17Authority Act or for the payment of principal and interest due
18on State Pension Obligation Acceleration Bonds.
 
19    (30 ILCS 330/9)  (from Ch. 127, par. 659)
20    Sec. 9. Conditions for Issuance and Sale of Bonds -
21Requirements for Bonds.
22    (a) Except as otherwise provided in this subsection and
23subsection (h), Bonds shall be issued and sold from time to
24time, in one or more series, in such amounts and at such prices
25as may be directed by the Governor, upon recommendation by the

 

 

HB0315- 55 -LRB100 06229 RPS 16264 b

1Director of the Governor's Office of Management and Budget.
2Bonds shall be in such form (either coupon, registered or book
3entry), in such denominations, payable within 25 years from
4their date, subject to such terms of redemption with or without
5premium, bear interest payable at such times and at such fixed
6or variable rate or rates, and be dated as shall be fixed and
7determined by the Director of the Governor's Office of
8Management and Budget in the order authorizing the issuance and
9sale of any series of Bonds, which order shall be approved by
10the Governor and is herein called a "Bond Sale Order"; provided
11however, that interest payable at fixed or variable rates shall
12not exceed that permitted in the Bond Authorization Act, as now
13or hereafter amended. Bonds shall be payable at such place or
14places, within or without the State of Illinois, and may be
15made registrable as to either principal or as to both principal
16and interest, as shall be specified in the Bond Sale Order.
17Bonds may be callable or subject to purchase and retirement or
18tender and remarketing as fixed and determined in the Bond Sale
19Order. Bonds, other than Bonds issued under Section 3 of this
20Act for the costs associated with the purchase and
21implementation of information technology, (i) except for
22refunding Bonds satisfying the requirements of Section 16 of
23this Act and sold during fiscal year 2009, 2010, 2011, or 2017
24must be issued with principal or mandatory redemption amounts
25in equal amounts, with the first maturity issued occurring
26within the fiscal year in which the Bonds are issued or within

 

 

HB0315- 56 -LRB100 06229 RPS 16264 b

1the next succeeding fiscal year and (ii) must mature or be
2subject to mandatory redemption each fiscal year thereafter up
3to 25 years, except for refunding Bonds satisfying the
4requirements of Section 16 of this Act and sold during fiscal
5year 2009, 2010, or 2011 which must mature or be subject to
6mandatory redemption each fiscal year thereafter up to 16
7years. Bonds issued under Section 3 of this Act for the costs
8associated with the purchase and implementation of information
9technology must be issued with principal or mandatory
10redemption amounts in equal amounts, with the first maturity
11issued occurring with the fiscal year in which the respective
12bonds are issued or with the next succeeding fiscal year, with
13the respective bonds issued maturing or subject to mandatory
14redemption each fiscal year thereafter up to 10 years.
15Notwithstanding any provision of this Act to the contrary, the
16Bonds authorized by Public Act 96-43 shall be payable within 5
17years from their date and must be issued with principal or
18mandatory redemption amounts in equal amounts, with payment of
19principal or mandatory redemption beginning in the first fiscal
20year following the fiscal year in which the Bonds are issued.
21    Notwithstanding any provision of this Act to the contrary,
22the Bonds authorized by Public Act 96-1497 shall be payable
23within 8 years from their date and shall be issued with payment
24of maturing principal or scheduled mandatory redemptions in
25accordance with the following schedule, except the following
26amounts shall be prorated if less than the total additional

 

 

HB0315- 57 -LRB100 06229 RPS 16264 b

1amount of Bonds authorized by Public Act 96-1497 are issued:
2    Fiscal Year After Issuance    Amount
3        1-2                        $0 
4        3                          $110,712,120
5        4                          $332,136,360
6        5                          $664,272,720
7        6-8                        $996,409,080
8    In the case of any series of Bonds bearing interest at a
9variable interest rate ("Variable Rate Bonds"), in lieu of
10determining the rate or rates at which such series of Variable
11Rate Bonds shall bear interest and the price or prices at which
12such Variable Rate Bonds shall be initially sold or remarketed
13(in the event of purchase and subsequent resale), the Bond Sale
14Order may provide that such interest rates and prices may vary
15from time to time depending on criteria established in such
16Bond Sale Order, which criteria may include, without
17limitation, references to indices or variations in interest
18rates as may, in the judgment of a remarketing agent, be
19necessary to cause Variable Rate Bonds of such series to be
20remarketable from time to time at a price equal to their
21principal amount, and may provide for appointment of a bank,
22trust company, investment bank, or other financial institution
23to serve as remarketing agent in that connection. The Bond Sale
24Order may provide that alternative interest rates or provisions
25for establishing alternative interest rates, different
26security or claim priorities, or different call or amortization

 

 

HB0315- 58 -LRB100 06229 RPS 16264 b

1provisions will apply during such times as Variable Rate Bonds
2of any series are held by a person providing credit or
3liquidity enhancement arrangements for such Bonds as
4authorized in subsection (b) of this Section. The Bond Sale
5Order may also provide for such variable interest rates to be
6established pursuant to a process generally known as an auction
7rate process and may provide for appointment of one or more
8financial institutions to serve as auction agents and
9broker-dealers in connection with the establishment of such
10interest rates and the sale and remarketing of such Bonds.
11    (b) In connection with the issuance of any series of Bonds,
12the State may enter into arrangements to provide additional
13security and liquidity for such Bonds, including, without
14limitation, bond or interest rate insurance or letters of
15credit, lines of credit, bond purchase contracts, or other
16arrangements whereby funds are made available to retire or
17purchase Bonds, thereby assuring the ability of owners of the
18Bonds to sell or redeem their Bonds. The State may enter into
19contracts and may agree to pay fees to persons providing such
20arrangements, but only under circumstances where the Director
21of the Governor's Office of Management and Budget certifies
22that he or she reasonably expects the total interest paid or to
23be paid on the Bonds, together with the fees for the
24arrangements (being treated as if interest), would not, taken
25together, cause the Bonds to bear interest, calculated to their
26stated maturity, at a rate in excess of the rate that the Bonds

 

 

HB0315- 59 -LRB100 06229 RPS 16264 b

1would bear in the absence of such arrangements.
2    The State may, with respect to Bonds issued or anticipated
3to be issued, participate in and enter into arrangements with
4respect to interest rate protection or exchange agreements,
5guarantees, or financial futures contracts for the purpose of
6limiting, reducing, or managing interest rate exposure. The
7authority granted under this paragraph, however, shall not
8increase the principal amount of Bonds authorized to be issued
9by law. The arrangements may be executed and delivered by the
10Director of the Governor's Office of Management and Budget on
11behalf of the State. Net payments for such arrangements shall
12constitute interest on the Bonds and shall be paid from the
13General Obligation Bond Retirement and Interest Fund. The
14Director of the Governor's Office of Management and Budget
15shall at least annually certify to the Governor and the State
16Comptroller his or her estimate of the amounts of such net
17payments to be included in the calculation of interest required
18to be paid by the State.
19    (c) Prior to the issuance of any Variable Rate Bonds
20pursuant to subsection (a), the Director of the Governor's
21Office of Management and Budget shall adopt an interest rate
22risk management policy providing that the amount of the State's
23variable rate exposure with respect to Bonds shall not exceed
2420%. This policy shall remain in effect while any Bonds are
25outstanding and the issuance of Bonds shall be subject to the
26terms of such policy. The terms of this policy may be amended

 

 

HB0315- 60 -LRB100 06229 RPS 16264 b

1from time to time by the Director of the Governor's Office of
2Management and Budget but in no event shall any amendment cause
3the permitted level of the State's variable rate exposure with
4respect to Bonds to exceed 20%.
5    (d) "Build America Bonds" in this Section means Bonds
6authorized by Section 54AA of the Internal Revenue Code of
71986, as amended ("Internal Revenue Code"), and bonds issued
8from time to time to refund or continue to refund "Build
9America Bonds".
10    (e) Notwithstanding any other provision of this Section,
11Qualified School Construction Bonds shall be issued and sold
12from time to time, in one or more series, in such amounts and
13at such prices as may be directed by the Governor, upon
14recommendation by the Director of the Governor's Office of
15Management and Budget. Qualified School Construction Bonds
16shall be in such form (either coupon, registered or book
17entry), in such denominations, payable within 25 years from
18their date, subject to such terms of redemption with or without
19premium, and if the Qualified School Construction Bonds are
20issued with a supplemental coupon, bear interest payable at
21such times and at such fixed or variable rate or rates, and be
22dated as shall be fixed and determined by the Director of the
23Governor's Office of Management and Budget in the order
24authorizing the issuance and sale of any series of Qualified
25School Construction Bonds, which order shall be approved by the
26Governor and is herein called a "Bond Sale Order"; except that

 

 

HB0315- 61 -LRB100 06229 RPS 16264 b

1interest payable at fixed or variable rates, if any, shall not
2exceed that permitted in the Bond Authorization Act, as now or
3hereafter amended. Qualified School Construction Bonds shall
4be payable at such place or places, within or without the State
5of Illinois, and may be made registrable as to either principal
6or as to both principal and interest, as shall be specified in
7the Bond Sale Order. Qualified School Construction Bonds may be
8callable or subject to purchase and retirement or tender and
9remarketing as fixed and determined in the Bond Sale Order.
10Qualified School Construction Bonds must be issued with
11principal or mandatory redemption amounts or sinking fund
12payments into the General Obligation Bond Retirement and
13Interest Fund (or subaccount therefor) in equal amounts, with
14the first maturity issued, mandatory redemption payment or
15sinking fund payment occurring within the fiscal year in which
16the Qualified School Construction Bonds are issued or within
17the next succeeding fiscal year, with Qualified School
18Construction Bonds issued maturing or subject to mandatory
19redemption or with sinking fund payments thereof deposited each
20fiscal year thereafter up to 25 years. Sinking fund payments
21set forth in this subsection shall be permitted only to the
22extent authorized in Section 54F of the Internal Revenue Code
23or as otherwise determined by the Director of the Governor's
24Office of Management and Budget. "Qualified School
25Construction Bonds" in this subsection means Bonds authorized
26by Section 54F of the Internal Revenue Code and for bonds

 

 

HB0315- 62 -LRB100 06229 RPS 16264 b

1issued from time to time to refund or continue to refund such
2"Qualified School Construction Bonds".
3    (f) Beginning with the next issuance by the Governor's
4Office of Management and Budget to the Procurement Policy Board
5of a request for quotation for the purpose of formulating a new
6pool of qualified underwriting banks list, all entities
7responding to such a request for quotation for inclusion on
8that list shall provide a written report to the Governor's
9Office of Management and Budget and the Illinois Comptroller.
10The written report submitted to the Comptroller shall (i) be
11published on the Comptroller's Internet website and (ii) be
12used by the Governor's Office of Management and Budget for the
13purposes of scoring such a request for quotation. The written
14report, at a minimum, shall:
15        (1) disclose whether, within the past 3 months,
16    pursuant to its credit default swap market-making
17    activities, the firm has entered into any State of Illinois
18    credit default swaps ("CDS");
19        (2) include, in the event of State of Illinois CDS
20    activity, disclosure of the firm's cumulative notional
21    volume of State of Illinois CDS trades and the firm's
22    outstanding gross and net notional amount of State of
23    Illinois CDS, as of the end of the current 3-month period;
24        (3) indicate, pursuant to the firm's proprietary
25    trading activities, disclosure of whether the firm, within
26    the past 3 months, has entered into any proprietary trades

 

 

HB0315- 63 -LRB100 06229 RPS 16264 b

1    for its own account in State of Illinois CDS;
2        (4) include, in the event of State of Illinois
3    proprietary trades, disclosure of the firm's outstanding
4    gross and net notional amount of proprietary State of
5    Illinois CDS and whether the net position is short or long
6    credit protection, as of the end of the current 3-month
7    period;
8        (5) list all time periods during the past 3 months
9    during which the firm held net long or net short State of
10    Illinois CDS proprietary credit protection positions, the
11    amount of such positions, and whether those positions were
12    net long or net short credit protection positions; and
13        (6) indicate whether, within the previous 3 months, the
14    firm released any publicly available research or marketing
15    reports that reference State of Illinois CDS and include
16    those research or marketing reports as attachments.
17    (g) All entities included on a Governor's Office of
18Management and Budget's pool of qualified underwriting banks
19list shall, as soon as possible after March 18, 2011 (the
20effective date of Public Act 96-1554), but not later than
21January 21, 2011, and on a quarterly fiscal basis thereafter,
22provide a written report to the Governor's Office of Management
23and Budget and the Illinois Comptroller. The written reports
24submitted to the Comptroller shall be published on the
25Comptroller's Internet website. The written reports, at a
26minimum, shall:

 

 

HB0315- 64 -LRB100 06229 RPS 16264 b

1        (1) disclose whether, within the past 3 months,
2    pursuant to its credit default swap market-making
3    activities, the firm has entered into any State of Illinois
4    credit default swaps ("CDS");
5        (2) include, in the event of State of Illinois CDS
6    activity, disclosure of the firm's cumulative notional
7    volume of State of Illinois CDS trades and the firm's
8    outstanding gross and net notional amount of State of
9    Illinois CDS, as of the end of the current 3-month period;
10        (3) indicate, pursuant to the firm's proprietary
11    trading activities, disclosure of whether the firm, within
12    the past 3 months, has entered into any proprietary trades
13    for its own account in State of Illinois CDS;
14        (4) include, in the event of State of Illinois
15    proprietary trades, disclosure of the firm's outstanding
16    gross and net notional amount of proprietary State of
17    Illinois CDS and whether the net position is short or long
18    credit protection, as of the end of the current 3-month
19    period;
20        (5) list all time periods during the past 3 months
21    during which the firm held net long or net short State of
22    Illinois CDS proprietary credit protection positions, the
23    amount of such positions, and whether those positions were
24    net long or net short credit protection positions; and
25        (6) indicate whether, within the previous 3 months, the
26    firm released any publicly available research or marketing

 

 

HB0315- 65 -LRB100 06229 RPS 16264 b

1    reports that reference State of Illinois CDS and include
2    those research or marketing reports as attachments.
3    (h) Notwithstanding any other provision of this Section,
4for purposes of maximizing market efficiencies and cost
5savings, State Pension Obligation Acceleration Bonds may be
6issued and sold from time to time, in one or more series, in
7such amounts and at such prices as may be directed by the
8Governor, upon recommendation by the Director of the Governor's
9Office of Management and Budget. State Pension Obligation
10Acceleration Bonds shall be in such form, either coupon,
11registered, or book entry, in such denominations, shall bear
12interest payable at such times and at such fixed or variable
13rate or rates, and be dated as shall be fixed and determined by
14the Director of the Governor's Office of Management and Budget
15in the order authorizing the issuance and sale of any series of
16State Pension Obligation Acceleration Bonds, which order shall
17be approved by the Governor and is herein called a "Bond Sale
18Order"; provided, however, that interest payable at fixed or
19variable rates shall not exceed that permitted in the Bond
20Authorization Act. State Pension Obligation Acceleration Bonds
21shall be payable at such place or places, within or without the
22State of Illinois, and may be made registrable as to either
23principal or as to both principal and interest, as shall be
24specified in the Bond Sale Order. State Pension Obligation
25Acceleration Bonds may be callable or subject to purchase and
26retirement or tender and remarketing as fixed and determined in

 

 

HB0315- 66 -LRB100 06229 RPS 16264 b

1the Bond Sale Order.
2(Source: P.A. 99-523, eff. 6-30-16.)
 
3    (30 ILCS 330/11)  (from Ch. 127, par. 661)
4    Sec. 11. Sale of Bonds. Except as otherwise provided in
5this Section, Bonds shall be sold from time to time pursuant to
6notice of sale and public bid or by negotiated sale in such
7amounts and at such times as is directed by the Governor, upon
8recommendation by the Director of the Governor's Office of
9Management and Budget. At least 25%, based on total principal
10amount, of all Bonds issued each fiscal year shall be sold
11pursuant to notice of sale and public bid. At all times during
12each fiscal year, no more than 75%, based on total principal
13amount, of the Bonds issued each fiscal year, shall have been
14sold by negotiated sale. Failure to satisfy the requirements in
15the preceding 2 sentences shall not affect the validity of any
16previously issued Bonds; provided that all Bonds authorized by
17Public Act 96-43 and Public Act 96-1497 shall not be included
18in determining compliance for any fiscal year with the
19requirements of the preceding 2 sentences; and further provided
20that refunding Bonds satisfying the requirements of Section 16
21of this Act and sold during fiscal year 2009, 2010, 2011, or
222017 shall not be subject to the requirements in the preceding
232 sentences.
24    If any Bonds, including refunding Bonds, are to be sold by
25negotiated sale, the Director of the Governor's Office of

 

 

HB0315- 67 -LRB100 06229 RPS 16264 b

1Management and Budget shall comply with the competitive request
2for proposal process set forth in the Illinois Procurement Code
3and all other applicable requirements of that Code.
4    If Bonds are to be sold pursuant to notice of sale and
5public bid, the Director of the Governor's Office of Management
6and Budget may, from time to time, as Bonds are to be sold,
7advertise the sale of the Bonds in at least 2 daily newspapers,
8one of which is published in the City of Springfield and one in
9the City of Chicago. The sale of the Bonds shall also be
10advertised in the volume of the Illinois Procurement Bulletin
11that is published by the Department of Central Management
12Services, and shall be published once at least 10 days prior to
13the date fixed for the opening of the bids. The Director of the
14Governor's Office of Management and Budget may reschedule the
15date of sale upon the giving of such additional notice as the
16Director deems adequate to inform prospective bidders of such
17change; provided, however, that all other conditions of the
18sale shall continue as originally advertised.
19    Executed Bonds shall, upon payment therefor, be delivered
20to the purchaser, and the proceeds of Bonds shall be paid into
21the State Treasury as directed by Section 12 of this Act.
22    All State Pension Obligation Acceleration Bonds shall
23comply with this Section. Notwithstanding anything to the
24contrary, however, for purposes of complying with this Section,
25State Pension Obligation Acceleration Bonds, regardless of the
26number of series or issuances sold thereunder, shall be

 

 

HB0315- 68 -LRB100 06229 RPS 16264 b

1considered a single issue or series. Furthermore, for purposes
2of complying with the competitive bidding requirements of this
3Section, the words "at all times" shall not apply to any such
4sale of the State Pension Obligation Acceleration Bonds. The
5Director of the Governor's Office of Management and Budget
6shall determine the time and manner of any competitive sale of
7the State Pension Obligation Acceleration Bonds; however, that
8sale shall under no circumstances take place later than 60 days
9after the State closes the sale of 75% of the State Pension
10Obligation Acceleration Bonds by negotiated sale.
11(Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)
 
12    (30 ILCS 330/12)  (from Ch. 127, par. 662)
13    Sec. 12. Allocation of Proceeds from Sale of Bonds.
14    (a) Proceeds from the sale of Bonds, authorized by Section
153 of this Act, shall be deposited in the separate fund known as
16the Capital Development Fund.
17    (b) Proceeds from the sale of Bonds, authorized by
18paragraph (a) of Section 4 of this Act, shall be deposited in
19the separate fund known as the Transportation Bond, Series A
20Fund.
21    (c) Proceeds from the sale of Bonds, authorized by
22paragraphs (b) and (c) of Section 4 of this Act, shall be
23deposited in the separate fund known as the Transportation
24Bond, Series B Fund.
25    (c-1) Proceeds from the sale of Bonds, authorized by

 

 

HB0315- 69 -LRB100 06229 RPS 16264 b

1paragraph (d) of Section 4 of this Act, shall be deposited into
2the Transportation Bond Series D Fund, which is hereby created.
3    (d) Proceeds from the sale of Bonds, authorized by Section
45 of this Act, shall be deposited in the separate fund known as
5the School Construction Fund.
6    (e) Proceeds from the sale of Bonds, authorized by Section
76 of this Act, shall be deposited in the separate fund known as
8the Anti-Pollution Fund.
9    (f) Proceeds from the sale of Bonds, authorized by Section
107 of this Act, shall be deposited in the separate fund known as
11the Coal Development Fund.
12    (f-2) Proceeds from the sale of Bonds, authorized by
13Section 7.2 of this Act, shall be deposited as set forth in
14Section 7.2.
15    (f-5) Proceeds from the sale of Bonds, authorized by
16Section 7.5 of this Act, shall be deposited as set forth in
17Section 7.5.
18    (f-7) Proceeds from the sale of Bonds, authorized by
19Section 7.6 of this Act, shall be deposited as set forth in
20Section 7.6.
21    (g) Proceeds from the sale of Bonds, authorized by Section
228 of this Act, shall be deposited in the Capital Development
23Fund.
24    (h) Subsequent to the issuance of any Bonds for the
25purposes described in Sections 2 through 8 of this Act, the
26Governor and the Director of the Governor's Office of

 

 

HB0315- 70 -LRB100 06229 RPS 16264 b

1Management and Budget may provide for the reallocation of
2unspent proceeds of such Bonds to any other purposes authorized
3under said Sections of this Act, subject to the limitations on
4aggregate principal amounts contained therein. Upon any such
5reallocation, such unspent proceeds shall be transferred to the
6appropriate funds as determined by reference to paragraphs (a)
7through (g) of this Section.
8(Source: P.A. 96-36, eff. 7-13-09.)
 
9    (30 ILCS 330/13)  (from Ch. 127, par. 663)
10    Sec. 13. Appropriation of Proceeds from Sale of Bonds.
11    (a) At all times, the proceeds from the sale of Bonds
12issued pursuant to this Act are subject to appropriation by the
13General Assembly and, except as provided in Sections 7.2 and
147.6 Section 7.2, may be obligated or expended only with the
15written approval of the Governor, in such amounts, at such
16times, and for such purposes as the respective State agencies,
17as defined in Section 1-7 of the Illinois State Auditing Act,
18as amended, deem necessary or desirable for the specific
19purposes contemplated in Sections 2 through 8 of this Act.
20Notwithstanding any other provision of this Act, proceeds from
21the sale of Bonds issued pursuant to this Act appropriated by
22the General Assembly to the Architect of the Capitol may be
23obligated or expended by the Architect of the Capitol without
24the written approval of the Governor.
25    (b) Proceeds from the sale of Bonds for the purpose of

 

 

HB0315- 71 -LRB100 06229 RPS 16264 b

1development of coal and alternative forms of energy shall be
2expended in such amounts and at such times as the Department of
3Commerce and Economic Opportunity, with the advice and
4recommendation of the Illinois Coal Development Board for coal
5development projects, may deem necessary and desirable for the
6specific purpose contemplated by Section 7 of this Act. In
7considering the approval of projects to be funded, the
8Department of Commerce and Economic Opportunity shall give
9special consideration to projects designed to remove sulfur and
10other pollutants in the preparation and utilization of coal,
11and in the use and operation of electric utility generating
12plants and industrial facilities which utilize Illinois coal as
13their primary source of fuel.
14    (c) Except as directed in subsection (c-1) or (c-2), any
15monies received by any officer or employee of the state
16representing a reimbursement of expenditures previously paid
17from general obligation bond proceeds shall be deposited into
18the General Obligation Bond Retirement and Interest Fund
19authorized in Section 14 of this Act.
20    (c-1) Any money received by the Department of
21Transportation as reimbursement for expenditures for high
22speed rail purposes pursuant to appropriations from the
23Transportation Bond, Series B Fund for (i) CREATE (Chicago
24Region Environmental and Transportation Efficiency), (ii) High
25Speed Rail, or (iii) AMTRAK projects authorized by the federal
26government under the provisions of the American Recovery and

 

 

HB0315- 72 -LRB100 06229 RPS 16264 b

1Reinvestment Act of 2009 or the Safe Accountable Flexible
2Efficient Transportation Equity Act—A Legacy for Users
3(SAFETEA-LU), or any successor federal transportation
4authorization Act, shall be deposited into the Federal High
5Speed Rail Trust Fund.
6    (c-2) Any money received by the Department of
7Transportation as reimbursement for expenditures for transit
8capital purposes pursuant to appropriations from the
9Transportation Bond, Series B Fund for projects authorized by
10the federal government under the provisions of the American
11Recovery and Reinvestment Act of 2009 or the Safe Accountable
12Flexible Efficient Transportation Equity Act—A Legacy for
13Users (SAFETEA-LU), or any successor federal transportation
14authorization Act, shall be deposited into the Federal Mass
15Transit Trust Fund.
16(Source: P.A. 98-674, eff. 6-30-14.)
 
17    Section 25. The Illinois Pension Code is amended by adding
18Sections 2-154.5, 2-154.6, 14-147.5, 14-147.6, 15-185.5,
1915-185.6, 16-190.5, 16-190.6, 18-161.5, and 18-161.6 and
20amending Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169
21as follows:
 
22    (40 ILCS 5/2-154.5 new)
23    Sec. 2-154.5. Accelerated pension benefit payment.
24    (a) As used in this Section:

 

 

HB0315- 73 -LRB100 06229 RPS 16264 b

1    "Eligible person" means a person who:
2        (1) has terminated service;
3        (2) has accrued sufficient service credit to be
4    eligible to receive a retirement annuity under this
5    Article;
6        (3) has not received any retirement annuity under this
7    Article; and
8        (4) does not have a QILDRO in effect against him or her
9    under this Article.
10    "Pension benefit" means the benefits under this Article, or
11Article 1 as it relates to those benefits, including any
12anticipated annual increases, that an eligible person is
13entitled to upon attainment of the applicable retirement age.
14"Pension benefit" also includes applicable survivor's or
15disability benefits.
16    (b) Before January 1, 2018, the System shall calculate,
17using actuarial tables and other assumptions adopted by the
18Board, the net present value of pension benefits for each
19eligible person and shall offer each eligible person the
20opportunity to irrevocably elect to receive an amount
21determined by the System to be equal to 70% of the net present
22value of his or her pension benefits in lieu of receiving any
23pension benefit. The offer shall specify the dollar amount that
24the eligible person will receive if he or she so elects and
25shall expire when a subsequent offer is made to an eligible
26person. The System shall make a good faith effort to contact

 

 

HB0315- 74 -LRB100 06229 RPS 16264 b

1every eligible person to notify him or her of the election and
2of the amount of the accelerated pension benefit payment.
3    Beginning January 1, 2018 and until July 1, 2018, an
4eligible person may irrevocably elect to receive an accelerated
5pension benefit payment in the amount that the System offers
6under this subsection in lieu of receiving any pension benefit.
7A person who elects to receive an accelerated pension benefit
8payment under this Section may not elect to proceed under the
9Retirement Systems Reciprocal Act with respect to service under
10this Article.
11    (c) A person's credits and creditable service under this
12Article shall be terminated upon the person's receipt of an
13accelerated pension benefit payment under this Section, and no
14other benefit shall be paid under this Article based on those
15terminated credits and creditable service, including any
16retirement, survivor, or other benefit; except that to the
17extent that participation, benefits, or premiums under the
18State Employees Group Insurance Act of 1971 are based on the
19amount of service credit, the terminated service credit shall
20be used for that purpose.
21    (d) If a person who has received an accelerated pension
22benefit payment under this Section returns to active service
23under this Article, then:
24        (1) Any benefits under the System earned as a result of
25    that return to active service shall be based solely on the
26    person's credits and creditable service arising from the

 

 

HB0315- 75 -LRB100 06229 RPS 16264 b

1    return to active service.
2        (2) The accelerated pension benefit payment may not be
3    repaid to the System, and the terminated credits and
4    creditable service may not under any circumstances be
5    reinstated.
6    (e) As a condition of receiving an accelerated pension
7benefit payment, an eligible person must have another
8retirement plan or account qualified under the Internal Revenue
9Code of 1986, as amended, for the accelerated pension benefit
10payment to be rolled into. The accelerated pension benefit
11payment under this Section may be subject to withholding or
12payment of applicable taxes, but to the extent permitted by
13federal law, a person who receives an accelerated pension
14benefit payment under this Section must direct the System to
15pay all of that payment as a rollover into another retirement
16plan or account qualified under the Internal Revenue Code of
171986, as amended.
18    (f) Before January 1, 2019, the Board shall certify to the
19Illinois Finance Authority and the General Assembly the amount
20by which the total amount of accelerated pension benefit
21payments made under this Section exceed the amount appropriated
22to the System for the purpose of making those payments.
23    (g) The Board shall adopt any rules necessary to implement
24this Section.
25    (h) No provision of this Section shall be interpreted in a
26way that would cause the applicable System to cease to be a

 

 

HB0315- 76 -LRB100 06229 RPS 16264 b

1qualified plan under the Internal Revenue Code of 1986.
 
2    (40 ILCS 5/2-162)
3    (Text of Section WITHOUT the changes made by P.A. 98-599,
4which has been held unconstitutional)
5    Sec. 2-162. Application and expiration of new benefit
6increases.
7    (a) As used in this Section, "new benefit increase" means
8an increase in the amount of any benefit provided under this
9Article, or an expansion of the conditions of eligibility for
10any benefit under this Article, that results from an amendment
11to this Code that takes effect after June 1, 2005 (the
12effective date of Public Act 94-4). "New benefit increase",
13however, does not include any benefit increase resulting from
14the changes made to this Article by this amendatory Act of the
15100th General Assembly the effective date of this amendatory
16Act of the 94th General Assembly.
17    (b) Notwithstanding any other provision of this Code or any
18subsequent amendment to this Code, every new benefit increase
19is subject to this Section and shall be deemed to be granted
20only in conformance with and contingent upon compliance with
21the provisions of this Section.
22    (c) The Public Act enacting a new benefit increase must
23identify and provide for payment to the System of additional
24funding at least sufficient to fund the resulting annual
25increase in cost to the System as it accrues.

 

 

HB0315- 77 -LRB100 06229 RPS 16264 b

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

 

 

HB0315- 78 -LRB100 06229 RPS 16264 b

1increase was in effect and to the affected beneficiaries and
2alternate payees of such persons, but does not apply to any
3other person, including without limitation a person who
4continues in service after the expiration date and did not
5apply and qualify for the affected benefit while the new
6benefit increase was in effect.
7(Source: P.A. 94-4, eff. 6-1-05.)
 
8    (40 ILCS 5/14-147.5 new)
9    Sec. 14-147.5. Accelerated pension benefit payment.
10    (a) As used in this Section:
11    "Eligible person" means a person who:
12        (1) has terminated service;
13        (2) has accrued sufficient service credit to be
14    eligible to receive a retirement annuity under this
15    Article;
16        (3) has not received any retirement annuity under this
17    Article; and
18        (4) does not have a QILDRO in effect against him or her
19    under this Article.
20    "Pension benefit" means the benefits under this Article, or
21Article 1 as it relates to those benefits, including any
22anticipated annual increases, that an eligible person is
23entitled to upon attainment of the applicable retirement age.
24"Pension benefit" also includes applicable survivor's or
25disability benefits.

 

 

HB0315- 79 -LRB100 06229 RPS 16264 b

1    (b) Before January 1, 2018, the System shall calculate,
2using actuarial tables and other assumptions adopted by the
3Board, the net present value of pension benefits for each
4eligible person and shall offer each eligible person the
5opportunity to irrevocably elect to receive an amount
6determined by the System to be equal to 70% of the net present
7value of his or her pension benefits in lieu of receiving any
8pension benefit. The offer shall specify the dollar amount that
9the eligible person will receive if he or she so elects and
10shall expire when a subsequent offer is made to an eligible
11person. The System shall make a good faith effort to contact
12every eligible person to notify him or her of the election and
13of the amount of the accelerated pension benefit payment.
14    Beginning January 1, 2018 and until July 1, 2018, an
15eligible person may irrevocably elect to receive an accelerated
16pension benefit payment in the amount that the System offers
17under this subsection in lieu of receiving any pension benefit.
18A person who elects to receive an accelerated pension benefit
19payment under this Section may not elect to proceed under the
20Retirement Systems Reciprocal Act with respect to service under
21this Article.
22    (c) A person's credits and creditable service under this
23Article shall be terminated upon the person's receipt of an
24accelerated pension benefit payment under this Section, and no
25other benefit shall be paid under this Article based on those
26terminated credits and creditable service, including any

 

 

HB0315- 80 -LRB100 06229 RPS 16264 b

1retirement, survivor, or other benefit; except that to the
2extent that participation, benefits, or premiums under the
3State Employees Group Insurance Act of 1971 are based on the
4amount of service credit, the terminated service credit shall
5be used for that purpose.
6    (d) If a person who has received an accelerated pension
7benefit payment under this Section returns to active service
8under this Article, then:
9        (1) Any benefits under the System earned as a result of
10    that return to active service shall be based solely on the
11    person's credits and creditable service arising from the
12    return to active service.
13        (2) The accelerated pension benefit payment may not be
14    repaid to the System, and the terminated credits and
15    creditable service may not under any circumstances be
16    reinstated.
17    (e) As a condition of receiving an accelerated pension
18benefit payment, an eligible person must have another
19retirement plan or account qualified under the Internal Revenue
20Code of 1986, as amended, for the accelerated pension benefit
21payment to be rolled into. The accelerated pension benefit
22payment under this Section may be subject to withholding or
23payment of applicable taxes, but to the extent permitted by
24federal law, a person who receives an accelerated pension
25benefit payment under this Section must direct the System to
26pay all of that payment as a rollover into another retirement

 

 

HB0315- 81 -LRB100 06229 RPS 16264 b

1plan or account qualified under the Internal Revenue Code of
21986, as amended.
3    (f) Before January 1, 2019, the Board shall certify to the
4Illinois Finance Authority and the General Assembly the amount
5by which the total amount of accelerated pension benefit
6payments made under this Section exceed the amount appropriated
7to the System for the purpose of making those payments.
8    (g) The Board shall adopt any rules necessary to implement
9this Section.
10    (h) No provision of this Section shall be interpreted in a
11way that would cause the applicable System to cease to be a
12qualified plan under the Internal Revenue Code of 1986.
 
13    (40 ILCS 5/14-152.1)
14    (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16    Sec. 14-152.1. Application and expiration of new benefit
17increases.
18    (a) As used in this Section, "new benefit increase" means
19an increase in the amount of any benefit provided under this
20Article, or an expansion of the conditions of eligibility for
21any benefit under this Article, that results from an amendment
22to this Code that takes effect after June 1, 2005 (the
23effective date of Public Act 94-4). "New benefit increase",
24however, does not include any benefit increase resulting from
25the changes made to this Article by Public Act 96-37 or by this

 

 

HB0315- 82 -LRB100 06229 RPS 16264 b

1amendatory Act of the 100th General Assembly this amendatory
2Act of the 96th General Assembly.
3    (b) Notwithstanding any other provision of this Code or any
4subsequent amendment to this Code, every new benefit increase
5is subject to this Section and shall be deemed to be granted
6only in conformance with and contingent upon compliance with
7the provisions of this Section.
8    (c) The Public Act enacting a new benefit increase must
9identify and provide for payment to the System of additional
10funding at least sufficient to fund the resulting annual
11increase in cost to the System as it accrues.
12    Every new benefit increase is contingent upon the General
13Assembly providing the additional funding required under this
14subsection. The Commission on Government Forecasting and
15Accountability shall analyze whether adequate additional
16funding has been provided for the new benefit increase and
17shall report its analysis to the Public Pension Division of the
18Department of Financial and Professional Regulation. A new
19benefit increase created by a Public Act that does not include
20the additional funding required under this subsection is null
21and void. If the Public Pension Division determines that the
22additional funding provided for a new benefit increase under
23this subsection is or has become inadequate, it may so certify
24to the Governor and the State Comptroller and, in the absence
25of corrective action by the General Assembly, the new benefit
26increase shall expire at the end of the fiscal year in which

 

 

HB0315- 83 -LRB100 06229 RPS 16264 b

1the certification is made.
2    (d) Every new benefit increase shall expire 5 years after
3its effective date or on such earlier date as may be specified
4in the language enacting the new benefit increase or provided
5under subsection (c). This does not prevent the General
6Assembly from extending or re-creating a new benefit increase
7by law.
8    (e) Except as otherwise provided in the language creating
9the new benefit increase, a new benefit increase that expires
10under this Section continues to apply to persons who applied
11and qualified for the affected benefit while the new benefit
12increase was in effect and to the affected beneficiaries and
13alternate payees of such persons, but does not apply to any
14other person, including without limitation a person who
15continues in service after the expiration date and did not
16apply and qualify for the affected benefit while the new
17benefit increase was in effect.
18(Source: P.A. 96-37, eff. 7-13-09.)
 
19    (40 ILCS 5/15-185.5 new)
20    Sec. 15-185.5. Accelerated pension benefit payment.
21    (a) As used in this Section:
22    "Eligible person" means a person who:
23        (1) has terminated service;
24        (2) has accrued sufficient service credit to be
25    eligible to receive a retirement annuity under this

 

 

HB0315- 84 -LRB100 06229 RPS 16264 b

1    Article;
2        (3) has not received any retirement annuity under this
3    Article;
4        (4) does not have a QILDRO in effect against him or her
5    under this Article; and
6        (5) is not a participant in the self-managed plan under
7    Section 15-158.2.
8    "Pension benefit" means the benefits under this Article, or
9Article 1 as it relates to those benefits, including any
10anticipated annual increases, that an eligible person is
11entitled to upon attainment of the applicable retirement age.
12"Pension benefit" also includes applicable survivor's or
13disability benefits.
14    (b) Before January 1, 2018, the System shall calculate,
15using actuarial tables and other assumptions adopted by the
16Board, the net present value of pension benefits for each
17eligible person and shall offer each eligible person the
18opportunity to irrevocably elect to receive an amount
19determined by the System to be equal to 70% of the net present
20value of his or her pension benefits in lieu of receiving any
21pension benefit. The offer shall specify the dollar amount that
22the eligible person will receive if he or she so elects and
23shall expire when a subsequent offer is made to an eligible
24person. The System shall make a good faith effort to contact
25every eligible person to notify him or her of the election and
26of the amount of the accelerated pension benefit payment.

 

 

HB0315- 85 -LRB100 06229 RPS 16264 b

1    Beginning January 1, 2018 and until July 1, 2018, an
2eligible person may irrevocably elect to receive an accelerated
3pension benefit payment in the amount that the System offers
4under this subsection in lieu of receiving any pension benefit.
5A person who elects to receive an accelerated pension benefit
6payment under this Section may not elect to proceed under the
7Retirement Systems Reciprocal Act with respect to service under
8this Article.
9    (c) A person's credits and creditable service under this
10Article shall be terminated upon the person's receipt of an
11accelerated pension benefit payment under this Section, and no
12other benefit shall be paid under this Article based on those
13terminated credits and creditable service, including any
14retirement, survivor, or other benefit; except that to the
15extent that participation, benefits, or premiums under the
16State Employees Group Insurance Act of 1971 are based on the
17amount of service credit, the terminated service credit shall
18be used for that purpose.
19    (d) If a person who has received an accelerated pension
20benefit payment under this Section returns to active service
21under this Article, then:
22        (1) Any benefits under the System earned as a result of
23    that return to active service shall be based solely on the
24    person's credits and creditable service arising from the
25    return to active service.
26        (2) The accelerated pension benefit payment may not be

 

 

HB0315- 86 -LRB100 06229 RPS 16264 b

1    repaid to the System, and the terminated credits and
2    creditable service may not under any circumstances be
3    reinstated.
4    (e) As a condition of receiving an accelerated pension
5benefit payment, an eligible person must have another
6retirement plan or account qualified under the Internal Revenue
7Code of 1986, as amended, for the accelerated pension benefit
8payment to be rolled into. The accelerated pension benefit
9payment under this Section may be subject to withholding or
10payment of applicable taxes, but to the extent permitted by
11federal law, a person who receives an accelerated pension
12benefit payment under this Section must direct the System to
13pay all of that payment as a rollover into another retirement
14plan or account qualified under the Internal Revenue Code of
151986, as amended.
16    (f) Before January 1, 2019, the Board shall certify to the
17Illinois Finance Authority and the General Assembly the amount
18by which the total amount of accelerated pension benefit
19payments made under this Section exceed the amount appropriated
20to the System for the purpose of making those payments.
21    (g) The Board shall adopt any rules necessary to implement
22this Section.
23    (h) No provision of this Section shall be interpreted in a
24way that would cause the applicable System to cease to be a
25qualified plan under the Internal Revenue Code of 1986.
 

 

 

HB0315- 87 -LRB100 06229 RPS 16264 b

1    (40 ILCS 5/15-198)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 15-198. Application and expiration of new benefit
5increases.
6    (a) As used in this Section, "new benefit increase" means
7an increase in the amount of any benefit provided under this
8Article, or an expansion of the conditions of eligibility for
9any benefit under this Article, that results from an amendment
10to this Code that takes effect after June 1, 2005 (the
11effective date of Public Act 94-4). "New benefit increase",
12however, does not include any benefit increase resulting from
13the changes made to this Article by this amendatory Act of the
14100th General Assembly the effective date of this amendatory
15Act of the 94th General Assembly.
16    (b) Notwithstanding any other provision of this Code or any
17subsequent amendment to this Code, every new benefit increase
18is subject to this Section and shall be deemed to be granted
19only in conformance with and contingent upon compliance with
20the provisions of this Section.
21    (c) The Public Act enacting a new benefit increase must
22identify and provide for payment to the System of additional
23funding at least sufficient to fund the resulting annual
24increase in cost to the System as it accrues.
25    Every new benefit increase is contingent upon the General
26Assembly providing the additional funding required under this

 

 

HB0315- 88 -LRB100 06229 RPS 16264 b

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

 

 

HB0315- 89 -LRB100 06229 RPS 16264 b

1other person, including without limitation a person who
2continues in service after the expiration date and did not
3apply and qualify for the affected benefit while the new
4benefit increase was in effect.
5(Source: P.A. 94-4, eff. 6-1-05.)
 
6    (40 ILCS 5/16-190.5 new)
7    Sec. 16-190.5. Accelerated pension benefit payment.
8    (a) As used in this Section:
9    "Eligible person" means a person who:
10        (1) has terminated service;
11        (2) has accrued sufficient service credit to be
12    eligible to receive a retirement annuity under this
13    Article;
14        (3) has not received any retirement annuity under this
15    Article; and
16        (4) does not have a QILDRO in effect against him or her
17    under this Article.
18    "Pension benefit" means the benefits under this Article, or
19Article 1 as it relates to those benefits, including any
20anticipated annual increases, that an eligible person is
21entitled to upon attainment of the applicable retirement age.
22"Pension benefit" also includes applicable survivor's or
23disability benefits.
24    (b) Before January 1, 2018, the System shall calculate,
25using actuarial tables and other assumptions adopted by the

 

 

HB0315- 90 -LRB100 06229 RPS 16264 b

1Board, the net present value of pension benefits for each
2eligible person and shall offer each eligible person the
3opportunity to irrevocably elect to receive an amount
4determined by the System to be equal to 70% of the net present
5value of his or her pension benefits in lieu of receiving any
6pension benefit. The offer shall specify the dollar amount that
7the eligible person will receive if he or she so elects and
8shall expire when a subsequent offer is made to an eligible
9person. The System shall make a good faith effort to contact
10every eligible person to notify him or her of the election and
11of the amount of the accelerated pension benefit payment.
12    Beginning January 1, 2018 and until July 1, 2018, an
13eligible person may irrevocably elect to receive an accelerated
14pension benefit payment in the amount that the System offers
15under this subsection in lieu of receiving any pension benefit.
16A person who elects to receive an accelerated pension benefit
17payment under this Section may not elect to proceed under the
18Retirement Systems Reciprocal Act with respect to service under
19this Article.
20    (c) A person's credits and creditable service under this
21Article shall be terminated upon the person's receipt of an
22accelerated pension benefit payment under this Section, and no
23other benefit shall be paid under this Article based on those
24terminated credits and creditable service, including any
25retirement, survivor, or other benefit; except that to the
26extent that participation, benefits, or premiums under the

 

 

HB0315- 91 -LRB100 06229 RPS 16264 b

1State Employees Group Insurance Act of 1971 are based on the
2amount of service credit, the terminated service credit shall
3be used for that purpose.
4    (d) If a person who has received an accelerated pension
5benefit payment under this Section returns to active service
6under this Article, then:
7        (1) Any benefits under the System earned as a result of
8    that return to active service shall be based solely on the
9    person's credits and creditable service arising from the
10    return to active service.
11        (2) The accelerated pension benefit payment may not be
12    repaid to the System, and the terminated credits and
13    creditable service may not under any circumstances be
14    reinstated.
15    (e) As a condition of receiving an accelerated pension
16benefit payment, an eligible person must have another
17retirement plan or account qualified under the Internal Revenue
18Code of 1986, as amended, for the accelerated pension benefit
19payment to be rolled into. The accelerated pension benefit
20payment under this Section may be subject to withholding or
21payment of applicable taxes, but to the extent permitted by
22federal law, a person who receives an accelerated pension
23benefit payment under this Section must direct the System to
24pay all of that payment as a rollover into another retirement
25plan or account qualified under the Internal Revenue Code of
261986, as amended.

 

 

HB0315- 92 -LRB100 06229 RPS 16264 b

1    (f) Before January 1, 2019, the Board shall certify to the
2Illinois Finance Authority and the General Assembly the amount
3by which the total amount of accelerated pension benefit
4payments made under this Section exceed the amount appropriated
5to the System for the purpose of making those payments.
6    (g) The Board shall adopt any rules necessary to implement
7this Section.
8    (h) No provision of this Section shall be interpreted in a
9way that would cause the applicable System to cease to be a
10qualified plan under the Internal Revenue Code of 1986.
 
11    (40 ILCS 5/16-203)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 16-203. Application and expiration of new benefit
15increases.
16    (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from
23the changes made to this Article by Public Act 95-910 or by
24this amendatory Act of the 100th General Assembly this
25amendatory Act of the 95th General Assembly.

 

 

HB0315- 93 -LRB100 06229 RPS 16264 b

1    (b) Notwithstanding any other provision of this Code or any
2subsequent amendment to this Code, every new benefit increase
3is subject to this Section and shall be deemed to be granted
4only in conformance with and contingent upon compliance with
5the provisions of this Section.
6    (c) The Public Act enacting a new benefit increase must
7identify and provide for payment to the System of additional
8funding at least sufficient to fund the resulting annual
9increase in cost to the System as it accrues.
10    Every new benefit increase is contingent upon the General
11Assembly providing the additional funding required under this
12subsection. The Commission on Government Forecasting and
13Accountability shall analyze whether adequate additional
14funding has been provided for the new benefit increase and
15shall report its analysis to the Public Pension Division of the
16Department of Financial and Professional Regulation. A new
17benefit increase created by a Public Act that does not include
18the additional funding required under this subsection is null
19and void. If the Public Pension Division determines that the
20additional funding provided for a new benefit increase under
21this subsection is or has become inadequate, it may so certify
22to the Governor and the State Comptroller and, in the absence
23of corrective action by the General Assembly, the new benefit
24increase shall expire at the end of the fiscal year in which
25the certification is made.
26    (d) Every new benefit increase shall expire 5 years after

 

 

HB0315- 94 -LRB100 06229 RPS 16264 b

1its effective date or on such earlier date as may be specified
2in the language enacting the new benefit increase or provided
3under subsection (c). This does not prevent the General
4Assembly from extending or re-creating a new benefit increase
5by law.
6    (e) Except as otherwise provided in the language creating
7the new benefit increase, a new benefit increase that expires
8under this Section continues to apply to persons who applied
9and qualified for the affected benefit while the new benefit
10increase was in effect and to the affected beneficiaries and
11alternate payees of such persons, but does not apply to any
12other person, including without limitation a person who
13continues in service after the expiration date and did not
14apply and qualify for the affected benefit while the new
15benefit increase was in effect.
16(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
17    (40 ILCS 5/18-161.5 new)
18    Sec. 18-161.5. Accelerated pension benefit payment.
19    (a) As used in this Section:
20    "Eligible person" means a person who:
21        (1) has terminated service;
22        (2) has accrued sufficient service credit to be
23    eligible to receive a retirement annuity under this
24    Article;
25        (3) has not received any retirement annuity under this

 

 

HB0315- 95 -LRB100 06229 RPS 16264 b

1    Article; and
2        (4) does not have a QILDRO in effect against him or her
3    under this Article.
4    "Pension benefit" means the benefits under this Article, or
5Article 1 as it relates to those benefits, including any
6anticipated annual increases, that an eligible person is
7entitled to upon attainment of the applicable retirement age.
8"Pension benefit" also includes applicable survivor's or
9disability benefits.
10    (b) Before January 1, 2018, the System shall calculate,
11using actuarial tables and other assumptions adopted by the
12Board, the net present value of pension benefits for each
13eligible person and shall offer each eligible person the
14opportunity to irrevocably elect to receive an amount
15determined by the System to be equal to 70% of the net present
16value of his or her pension benefits in lieu of receiving any
17pension benefit. The offer shall specify the dollar amount that
18the eligible person will receive if he or she so elects and
19shall expire when a subsequent offer is made to an eligible
20person. The System shall make a good faith effort to contact
21every eligible person to notify him or her of the election and
22of the amount of the accelerated pension benefit payment.
23    Beginning January 1, 2018 and until July 1, 2018, an
24eligible person may irrevocably elect to receive an accelerated
25pension benefit payment in the amount that the System offers
26under this subsection in lieu of receiving any pension benefit.

 

 

HB0315- 96 -LRB100 06229 RPS 16264 b

1A person who elects to receive an accelerated pension benefit
2payment under this Section may not elect to proceed under the
3Retirement Systems Reciprocal Act with respect to service under
4this Article.
5    (c) A person's credits and creditable service under this
6Article shall be terminated upon the person's receipt of an
7accelerated pension benefit payment under this Section, and no
8other benefit shall be paid under this Article based on those
9terminated credits and creditable service, including any
10retirement, survivor, or other benefit; except that to the
11extent that participation, benefits, or premiums under the
12State Employees Group Insurance Act of 1971 are based on the
13amount of service credit, the terminated service credit shall
14be used for that purpose.
15    (d) If a person who has received an accelerated pension
16benefit payment under this Section returns to active service
17under this Article, then:
18        (1) Any benefits under the System earned as a result of
19    that return to active service shall be based solely on the
20    person's credits and creditable service arising from the
21    return to active service.
22        (2) The accelerated pension benefit payment may not be
23    repaid to the System, and the terminated credits and
24    creditable service may not under any circumstances be
25    reinstated.
26    (e) As a condition of receiving an accelerated pension

 

 

HB0315- 97 -LRB100 06229 RPS 16264 b

1benefit payment, an eligible person must have another
2retirement plan or account qualified under the Internal Revenue
3Code of 1986, as amended, for the accelerated pension benefit
4payment to be rolled into. The accelerated pension benefit
5payment under this Section may be subject to withholding or
6payment of applicable taxes, but to the extent permitted by
7federal law, a person who receives an accelerated pension
8benefit payment under this Section must direct the System to
9pay all of that payment as a rollover into another retirement
10plan or account qualified under the Internal Revenue Code of
111986, as amended.
12    (f) Before January 1, 2019, the Board shall certify to the
13Illinois Finance Authority and the General Assembly the amount
14by which the total amount of accelerated pension benefit
15payments made under this Section exceed the amount appropriated
16to the System for the purpose of making those payments.
17    (g) The Board shall adopt any rules necessary to implement
18this Section.
19    (h) No provision of this Section shall be interpreted in a
20way that would cause the applicable System to cease to be a
21qualified plan under the Internal Revenue Code of 1986.
 
22    (40 ILCS 5/18-169)
23    Sec. 18-169. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

HB0315- 98 -LRB100 06229 RPS 16264 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to this Article by this amendatory Act of the
8100th General Assembly the effective date of this amendatory
9Act of the 94th General Assembly.
10    (b) Notwithstanding any other provision of this Code or any
11subsequent amendment to this Code, every new benefit increase
12is subject to this Section and shall be deemed to be granted
13only in conformance with and contingent upon compliance with
14the provisions of this Section.
15    (c) The Public Act enacting a new benefit increase must
16identify and provide for payment to the System of additional
17funding at least sufficient to fund the resulting annual
18increase in cost to the System as it accrues.
19    Every new benefit increase is contingent upon the General
20Assembly providing the additional funding required under this
21subsection. The Commission on Government Forecasting and
22Accountability shall analyze whether adequate additional
23funding has been provided for the new benefit increase and
24shall report its analysis to the Public Pension Division of the
25Department of Financial and Professional Regulation. A new
26benefit increase created by a Public Act that does not include

 

 

HB0315- 99 -LRB100 06229 RPS 16264 b

1the additional funding required under this subsection is null
2and void. If the Public Pension Division determines that the
3additional funding provided for a new benefit increase under
4this subsection is or has become inadequate, it may so certify
5to the Governor and the State Comptroller and, in the absence
6of corrective action by the General Assembly, the new benefit
7increase shall expire at the end of the fiscal year in which
8the certification is made.
9    (d) Every new benefit increase shall expire 5 years after
10its effective date or on such earlier date as may be specified
11in the language enacting the new benefit increase or provided
12under subsection (c). This does not prevent the General
13Assembly from extending or re-creating a new benefit increase
14by law.
15    (e) Except as otherwise provided in the language creating
16the new benefit increase, a new benefit increase that expires
17under this Section continues to apply to persons who applied
18and qualified for the affected benefit while the new benefit
19increase was in effect and to the affected beneficiaries and
20alternate payees of such persons, but does not apply to any
21other person, including without limitation a person who
22continues in service after the expiration date and did not
23apply and qualify for the affected benefit while the new
24benefit increase was in effect.
25(Source: P.A. 94-4, eff. 6-1-05.)
 

 

 

HB0315- 100 -LRB100 06229 RPS 16264 b

1    Section 30. The State Pension Funds Continuing
2Appropriation Act is amended by adding Section 1.9 as follows:
 
3    (40 ILCS 15/1.9 new)
4    Sec. 1.9. Appropriations for State Pension Obligation
5Acceleration Bonds. If for any reason the aggregate
6appropriations made available are insufficient to meet the
7levels required for the payment of principal and interest due
8on State Pension Obligation Acceleration Bonds under Section
97.6 of the General Obligation Bond Act, this Section shall
10constitute a continuing appropriation of all amounts necessary
11for those purposes.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.

 

 

HB0315- 101 -LRB100 06229 RPS 16264 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 375/3from Ch. 127, par. 523
4    5 ILCS 375/10from Ch. 127, par. 530
5    20 ILCS 3501/801-40
6    30 ILCS 105/5.878 new
7    30 ILCS 330/2from Ch. 127, par. 652
8    30 ILCS 330/2.5
9    30 ILCS 330/7.6 new
10    30 ILCS 330/9from Ch. 127, par. 659
11    30 ILCS 330/11from Ch. 127, par. 661
12    30 ILCS 330/12from Ch. 127, par. 662
13    30 ILCS 330/13from Ch. 127, par. 663
14    40 ILCS 5/2-154.5 new
15    40 ILCS 5/2-162
16    40 ILCS 5/14-147.5 new
17    40 ILCS 5/14-152.1
18    40 ILCS 5/15-185.5 new
19    40 ILCS 5/15-198
20    40 ILCS 5/16-190.5 new
21    40 ILCS 5/16-203
22    40 ILCS 5/18-161.5 new
23    40 ILCS 5/18-169
24    40 ILCS 15/1.9 new