Public Act 93-0634
HB0810 Enrolled LRB093 05611 WGH 05704 b
AN ACT in relation to unemployment insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Unemployment Insurance Trust Fund Financing Act.
Section 2. Findings and Declaration of Policy. It is
hereby found and declared that:
A. It is an essential governmental function to maintain
funds in an amount sufficient to pay unemployment benefits
when due;
B. At the time of the enactment of this Act,
unemployment benefits payments are made from Illinois'
account in the Unemployment Trust Fund of the United States
Treasury and are funded by employer contributions;
C. At the time of the enactment of this Act, borrowing
from the Federal government is the only option available to
obtain sufficient funds to pay benefits when the balance in
Illinois' account in the Unemployment Trust Fund of the
United States Treasury is insufficient to make necessary
payments;
D. Alternative methods of replenishing Illinois' account
in the Unemployment Trust Fund of the United States Treasury
may reduce the costs of providing unemployment benefits and
employers' cost of doing business in the State;
E. It is in the State's best interests to authorize the
issuance of bonds when appropriate for the purpose of
continuing the unemployment insurance program at the lowest
possible cost to the State and employers in Illinois; and
F. It is the public policy of this State to promote and
encourage the full participation of female- and
minority-owned firms with regard to bonds issued by State
departments, agencies, and authorities. The Director shall,
therefore, ensure that the process for procuring contracts
with regard to Bonds includes outreach to female- and
minority-owned firms and gives due consideration to those
firms in the selection and approval of any contracts with any
parties necessary to issue Bonds.
Section 3. Definitions. For purposes of this Act:
A. "Act" shall mean the Illinois Unemployment Insurance
Trust Fund Financing Act.
B. "Benefits" shall have the meaning provided in the
Unemployment Insurance Act.
C. "Bond" means any type of revenue obligation,
including, without limitation, fixed rate, variable rate,
auction rate or similar bond, note, certificate, or other
instrument, including, without limitation, an interest rate
exchange agreement, an interest rate lock agreement, a
currency exchange agreement, a forward payment conversion
agreement, an agreement to provide payments based on levels
of or changes in interest rates or currency exchange rates,
an agreement to exchange cash flows or a series of payments,
an option, put, or call to hedge payment, currency, interest
rate, or other exposure, payable from and secured by a pledge
of Fund Building Receipts collected pursuant to the
Unemployment Insurance Act, and all interest and other
earnings upon such amounts held in the Master Bond Fund, to
the extent provided in the proceedings authorizing the
obligation.
D. "Bond Administrative Expenses" means expenses and
fees incurred to administer and issue, upon a conversion of
any of the Bonds from one mode to another and from taxable to
tax-exempt, the Bonds issued pursuant to this Act, including
fees for paying agents, trustees, financial advisors,
underwriters, remarketing agents, attorneys and for other
professional services necessary to ensure compliance with
applicable state or federal law.
E. "Bond Obligations" means the principal of a Bond and
any premium and interest on a Bond issued pursuant to this
Act, together with any amount owed under a related Credit
Agreement.
F. "Credit Agreement" means, without limitation, a loan
agreement, a revolving credit agreement, an agreement
establishing a line of credit, a letter of credit, notes,
municipal bond insurance, standby bond purchase agreements,
surety bonds, remarketing agreements and the like, by which
the Department may borrow funds to pay or redeem or purchase
and hold its bonds, agreements for the purchase or
remarketing of bonds or any other agreement that enhances the
marketability, security, or creditworthiness of a Bond issued
under this Act.
1. Such Credit Agreement shall provide the
following:
a. The choice of law for the obligations of a
financial provider may be made for any state of
these United States, but the law which shall apply
to the Bonds shall be the law of the State of
Illinois, and jurisdiction to enforce such Credit
Agreement as against the Department shall be
exclusively in the courts of the State of Illinois
or in the applicable federal court having
jurisdiction and located within the State of
Illinois.
b. Any such Credit Agreement shall be fully
enforceable as a valid and binding contract as and
to the extent provided by applicable law.
2. Without limiting the foregoing, such Credit
Agreement, may include any of the following:
a. Interest rates on the Bonds may vary from
time to time depending upon criteria established by
the Director, which may include, without limitation:
(i) A variation in interest rates as may
be necessary to cause the Bonds to be
remarketed from time to time at a price equal
to their principal amount plus any accrued
interest;
(ii) Rates set by auctions; or
(iii) Rates set by formula.
b. A national banking association, bank, trust
company, investment banker or other financial
institution may be appointed to serve as a
remarketing agent in that connection, and such
remarketing agent may be delegated authority by the
Department to determine interest rates in accordance
with criteria established by the Department.
c. Alternative interest rates or provisions
may apply during such times as the Bonds are held by
the financial providers or similar persons or
entities providing a Credit Agreement for those
Bonds and, during such times, the interest on the
Bonds may be deemed not exempt from income taxation
under the Internal Revenue Code for purposes of
State law, as contained in the Bond Authorization
Act, relating to the permissible rate of interest to
be borne thereon.
d. Fees may be paid to the financial providers
or similar persons or entities providing a Credit
Agreement, including all reasonably related costs,
including therein costs of enforcement and
litigation (all such fees and costs being financial
provider payments) and financial provider payments
may be paid, without limitation, from proceeds of
the Bonds being the subject of such agreements, or
from Bonds issued to refund such Bonds, provided
that such financial provider payments shall be made
subordinate to the payments on the Bonds.
e. The Bonds need not be held in physical form
by the financial providers or similar persons or
entities providing a Credit Agreement when providing
funds to purchase or carry the Bonds from others but
may be represented in uncertificated form in the
Credit Agreement.
f. The debt or obligation of the Department
represented by a Bond tendered for purchase to or
otherwise made available to the Department thereupon
acquired by either the Department or a financial
provider shall not be deemed to be extinguished for
purposes of State law until cancelled by the
Department or its agent.
g. Such Credit Agreement may provide for
acceleration of the principal amounts due on the
Bonds.
G. "Department" means the Illinois Department of
Employment Security.
H. "Director" means the Director of the Illinois
Department of Employment Security.
I. "Fund Building Rates" are those rates imposed
pursuant to Section 1506.3 of the Unemployment Insurance Act.
J. "Fund Building Receipts" shall have the meaning
provided in the Unemployment Insurance Act.
K. "Master Bond Fund" shall mean, for any particular
issuance of Bonds under this Act, the fund established for
the deposit of Fund Building Receipts upon or prior to the
issuance of Bonds under this Act, and during the time that
any Bonds are outstanding under this Act and from which the
payment of Bond Obligations and the related Bond
Administrative Expenses incurred in connection with such
Bonds shall be made. That portion of the Master Bond Fund
containing the Required Fund Building Receipts Amount shall
be irrevocably pledged to the timely payment of Bond
Obligations and Bond Administrative Expenses due on any Bonds
issued pursuant to this Act and any Credit Agreement entered
in connection with the Bonds. The Master Bond Fund shall be
held separate and apart from all other State funds. Moneys in
the Master Bond Fund shall not be commingled with other State
funds, but they shall be deposited as required by law and
maintained in a separate account on the books of a savings
and loan association, bank or other qualified financial
institution. All interest earnings on amounts within the
Master Bond Fund shall accrue to the Master Bond Fund. The
Master Bond Fund may include such funds and accounts as are
necessary for the deposit of bond proceeds, Fund Building
Receipts, payment of principal, interest, administrative
expenses, costs of issuance, in the case of bonds which are
exempt from Federal taxation, rebate payments, and such other
funds and accounts which may be necessary for the
implementation and administration of this Act. The Director
shall be liable on her or his general official bond for the
faithful performance of her or his duties as custodian of the
Master Bond Fund. Such liability on her or his official bond
shall exist in addition to the liability upon any separate
bond given by her or him. All sums recovered for losses
sustained by the Master Bond Fund shall be deposited into the
Fund.
The Director shall report quarterly in writing to the
Employment Security Advisory Board concerning the actual and
anticipated deposits into and expenditures and transfers made
from the Master Bond Fund.
L. "Required Fund Building Receipts Amount" means the
aggregate amount of Fund Building Receipts required to be
maintained in the Master Bond Fund as set forth in Section 4I
of this Act.
Section 4. Authority to Issue Revenue Bonds.
A. The Department shall have the continuing power to
borrow money for the purpose of carrying out the following:
1. To reduce or avoid the need to borrow or obtain
a federal advance under Section 1201, et seq., of the
Social Security Act (42 U.S.C. Section 1321), as amended,
or any similar federal law; or
2. To refinance a previous advance received by the
Department with respect to the payment of Benefits; or
3. To refinance, purchase, redeem, refund, advance
refund or defease (including, any combination of the
foregoing) any outstanding Bonds issued pursuant to this
Act; or
4. To fund a surplus in Illinois' account in the
Unemployment Trust Fund of the United States Treasury.
Paragraphs 1, 2 and 4 are inoperative on and after
January 1, 2010.
B. As evidence of the obligation of the Department to
repay money borrowed for the purposes set forth in Section 4A
above, the Department may issue and dispose of its interest
bearing revenue Bonds and may also, from time-to-time, issue
and dispose of its interest bearing revenue Bonds to
purchase, redeem, refund, advance refund or defease
(including, any combination of the foregoing) any Bonds at
maturity or pursuant to redemption provisions or at any time
before maturity. The Director, in consultation with the
Department's Employment Security Advisory Board, shall have
the power to direct that the Bonds be issued. Bonds may be
issued in one or more series and under terms and conditions
as needed in furtherance of the purposes of this Act. The
Illinois Finance Authority shall provide any technical,
legal, or administrative services if and when requested by
the Director and the Employment Security Advisory Board with
regard to the issuance of Bonds. Such Bonds shall be issued
in the name of the State of Illinois for the benefit of the
Department and shall be executed by the Director. In case any
Director whose signature appears on any Bond ceases (after
attaching his or her signature) to hold that office, her or
his signature shall nevertheless be valid and effective for
all purposes.
C. No Bonds shall be issued without the Director's
written certification that, based upon a reasonable financial
analysis, the issuance of Bonds is reasonably expected to:
(i) Result in a savings to the State as
compared to the cost of borrowing or obtaining an
advance under Section 1201, et seq., Social Security
Act (42 U.S.C. Section 1321), as amended, or any
similar federal law;
(ii) Result in terms which are advantageous to
the State through refunding, advance refunding or
other similar restructuring of outstanding Bonds; or
(iii) Allow the State to avoid an anticipated
deficiency in the State's account in the
Unemployment Trust Fund of the United States
Treasury by funding a surplus in the State's account
in the Unemployment Trust Fund of the United States
Treasury.
D. All such Bonds shall be payable from Fund Building
Receipts. Bonds may also be paid from (i) to the extent
allowable by law, from monies in the State's account in the
Unemployment Trust Fund of the United States Treasury; and
(ii) to the extent allowable by law, a federal advance under
Section 1201, et seq., of the Social Security Act (42 U.S.C.
Section 1321); and (iii) proceeds of Bonds and receipts from
related credit and exchange agreements to the extent allowed
by this Act and applicable legal requirements.
E. The maximum principal amount of the Bonds, when
combined with the outstanding principal of all other Bonds
issued pursuant to this Act, shall not at any time exceed
$1,400,000,000, excluding all of the outstanding principal of
any other Bonds issued pursuant to this Act for which payment
has been irrevocably provided by refunding or other manner of
defeasance. It is the intent of this Act that the outstanding
Bond authorization limits provided for in this Section 4E
shall be revolving in nature, such that the amount of Bonds
outstanding that are not refunded or otherwise defeased shall
be included in determining the maximum amount of Bonds
authorized to be issued pursuant to the Act.
F. Such Bonds and refunding Bonds issued pursuant to
this Act may bear such date or dates, may mature at such time
or times not exceeding 10 years from their respective dates
of issuance, and may bear interest at such rate or rates not
exceeding the maximum rate authorized by the Bond
Authorization Act, as amended and in effect at the time of
the issuance of the Bonds.
G. The Department may enter into a Credit Agreement
pertaining to the issuance of the Bonds, upon terms which are
not inconsistent with this Act and any other laws, provided
that the term of such Credit Agreement shall not exceed the
term of the Bonds, plus any time period necessary to cure any
defaults under such Credit Agreement.
H. Interest earnings paid to holders of the Bonds shall
not be exempt from income taxes imposed by the State.
I. While any Bond Obligations are outstanding or
anticipated to come due as a result of Bonds expected to be
issued in either or both of the 2 immediately succeeding
calendar quarters, the Department shall collect and deposit
Fund Building Receipts into the Master Bond Fund in an amount
necessary to satisfy the Required Fund Building Receipts
Amount prior to expending Fund Building Receipts for any
other purpose. The Required Fund Building Receipts Amount
shall be that amount necessary to ensure the marketability of
the Bonds, which shall be specified in the Bond Sale Order
executed by the Director in connection with the issuance of
the Bonds.
J. Holders of the Bonds shall have a first and priority
claim on all Fund Building Receipts in the Master Bond Fund
in parity with all other holders of the Bonds, provided that
such claim may be subordinated to the provider of any Credit
Agreement for any of the Bonds.
K. To the extent that Fund Building Receipts in the
Master Bond Fund are not otherwise needed to satisfy the
requirements of this Act and the instruments authorizing the
issuance of the Bonds, such monies shall be used by the
Department, in such amounts as determined by the Director to
do either or both of the following:
1. To purchase, refinance, redeem, refund, advance
refund or defease (or any combination of the foregoing)
outstanding Bonds, to the extent such action is legally
available and does not impair the tax exempt status of
any of the Bonds which are, in fact, exempt from Federal
income taxation; or
2. As a deposit in the State's account in the
Unemployment Trust Fund of the United States Treasury.
L. The Director shall determine the method of sale, type
of bond, bond form, redemption provisions and other terms of
the Bonds that, in the Director's judgment, best achieve the
purposes of this Act and effect the borrowing at the lowest
practicable cost, provided that those determinations are not
inconsistent with this Act or other applicable legal
requirements. Those determinations shall be set forth in a
document entitled "Bond Sale Order" acceptable, in form and
substance, to the attorney or attorneys acting as bond
counsel for the Bonds in connection with the rendering of
opinions necessary for the issuance of the Bonds and executed
by the Director.
Section 5. Bond Proceeds.
A. The proceeds of any Bonds issued pursuant to this
Act, including investment income thereon, shall be held in
trust in the Master Bond Fund for the following purpose and
in such amounts as determined by the Director:
1. Paying the principal and interest on any
outstanding federal advance received by the Department
under Section 1201, et seq., of the Social Security Act
(42 U.S.C. Section 1321), as amended, or any similar
federal law;
2. Being deposited into the State's account in the
Unemployment Trust Fund of the United States Treasury for
the purpose of: (i) avoiding anticipated deficiencies in
that account or (ii) funding a surplus in that account,
when doing either (i) or (ii) will result in a savings to
the State or employers or both;
3. Paying the costs of issuing or refinancing any
such Bonds;
4. Providing an appropriate reserve for any such
Bonds to the extent that the Department determines that
an appropriate reserve is warranted; and
5. Paying capitalized interest on the Bonds for the
period determined necessary by the Department, not to
exceed 2 years.
B. Excess Bond proceeds remaining available after the
payments and deposits required pursuant to Section 5A1
through 5A5 above have been made, may be used in the
following manner as determined by the Director:
1. To purchase, redeem or defease outstanding
Bonds, to the extent such action is legally available and
does not impair the tax-exempt status of any of the Bonds
which are, in fact, tax-exempt; or
2. To pay any scheduled interest payment or
payments due on any outstanding Bonds; or
3. Deposited in the State's account in the
Unemployment Trust Fund of the United States Treasury.
Section 6. Bonds Not A Pledge of the State.
A. Any Bonds issued under this Act, and any related
Credit Agreement, are not a pledge of the faith and credit or
moral obligation of the State or any State agency or
political subdivision of the State. All Bonds, Bond
Obligations and payment obligations deriving from any Credit
Agreement are payable solely as provided in Section 4D.
B. Any Bonds and any related Credit Agreement issued
under this Act must contain a conspicuous statement to the
effect that:
1. Neither the State, nor any State agency,
political corporation, or political subdivision of the
State, is obligated to pay the principal of or interest
on the Bonds except as provided by this Act; and
2. Neither the faith and credit of the State or any
State agency, political corporation, or political
subdivision of the State, nor the moral obligation of any
of them, is pledged to the payment of the principal of or
interest on the Bonds.
Section 7. State Not to Impair Bond Obligations. While
Bonds under this Act are outstanding, the State irrevocably
pledges and covenants that it shall not:
A. Take action to limit or restrict the rights of the
Department to fulfill its responsibilities to pay Bond
Obligations, Bond Administrative Expenses or otherwise comply
with instruments entered by the Department pertaining to the
issuance of the Bonds;
B. In any way impair the rights and remedies of the
holders of the Bonds until the Bonds are fully discharged; or
C. Reduce:
1. The Fund Building Rates below the levels in
existence effective January 1, 2004;
2. The maximum amount includable as wages pursuant
to Section 235 of the Unemployment Insurance Act below
the levels in existence effective January 1, 2004; and
3. The Solvency Adjustments imposed pursuant to
Section 1400.1 of the Unemployment Insurance Act below
the levels in existence effective January 1, 2004.
Section 8. Continuing appropriation. This Act shall
constitute an irrevocable and continuing appropriation of all
amounts necessary in respect to use of Fund Building Reciepts
and Bond Proceeds for purposes specified in this Act,
including, without limitation, for the provision for payment
of principal and interest on the Bonds and other amounts due
in connection with the issuance of the Bonds pursuant to this
Act, to the fullest extent such appropriation is required.
Section 9. Director's Supplemental Authority. The
Director, on behalf of the Department, is authorized to enter
into the covenants and agreements required by this Act, make
any determinations, calculations, rules or other
promulgations required by this Act and engage or hire the
necessary attorneys, financial advisors, consultants,
verification agents, trustees, underwriters, remarketing
agents and other professionals necessary to carry out the
purposes and intent of this Act, unless otherwise expressly
specified or required under this Act.
Section 10. No Personal Liability. No director, officer
or employee of the Department or the State shall be
personally liable as a result of exercising the rights and
responsibilities granted under this Act.
Section 11. Omnibus Bonds Acts. With respect to
instruments for the payment of money issued under this Act,
it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have
been supplementary grants of power to issue instruments in
accordance with the Omnibus Bond Acts, regardless of any
provision of this Act that may appear to be or to have been
more restrictive than those Omnibus Bond Acts, (ii) that the
provisions of this Act are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Act within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those
Omnibus Bond Acts.
Section 12. Mandatory Provisions. The provisions of this
Act are mandatory and not directory.
Section 13. Severability and inseverability. If any
provision of this Act or its application to any person or
circumstance is held invalid, the invalidity of that
provision or application does not affect other provisions or
applications of the Act that can be given effect without the
invalid provision or application, except that this Act is
inseverable to the extent that if all or any substantial and
material part of Sections 1 through 12 are held invalid, then
the entire Act (including both new and amendatory provisions)
is invalid.
Section 13.1. The Civil Administrative Code of Illinois
is amended by changing Section 5-540 as follows:
(20 ILCS 5/5-540) (was 20 ILCS 5/6.28 and 5/7.01)
Sec. 5-540. In the Department of Employment Security.
An Employment Security Advisory Board, composed of 12 9
persons. Of the 12 9 members of the Employment Security
Advisory Board, 4 3 members shall be representative citizens
chosen from the employee class, 4 3 members shall be
representative citizens chosen from the employing class, and
4 3 members shall be representative citizens not identified
with either the employing class or the employee class.
(Source: P.A. 90-372, eff. 7-1-98; 91-239, eff. 1-1-00.)
Section 13.2. The Illinois Income Tax Act is amended by
changing Section 701 as follows:
(35 ILCS 5/701) (from Ch. 120, par. 7-701)
Sec. 701. Requirement and Amount of Withholding.
(a) In General. Every employer maintaining an office or
transacting business within this State and required under the
provisions of the Internal Revenue Code to withhold a tax on:
(1) compensation paid in this State (as determined
under Section 304(a)(2)(B) to an individual; or
(2) payments described in subsection (b) shall
deduct and withhold from such compensation for each
payroll period (as defined in Section 3401 of the
Internal Revenue Code) an amount equal to the amount by
which such individual's compensation exceeds the
proportionate part of this withholding exemption
(computed as provided in Section 702) attributable to the
payroll period for which such compensation is payable
multiplied by a percentage equal to the percentage tax
rate for individuals provided in subsection (b) of
Section 201.
(b) Payment to Residents. Any payment (including
compensation) to a resident by a payor maintaining an office
or transacting business within this State (including any
agency, officer, or employee of this State or of any
political subdivision of this State) and on which withholding
of tax is required under the provisions of the Internal
Revenue Code shall be deemed to be compensation paid in this
State by an employer to an employee for the purposes of
Article 7 and Section 601(b)(1) to the extent such payment is
included in the recipient's base income and not subjected to
withholding by another state. Notwithstanding any other
provision to the contrary, no amount shall be withheld from
unemployment insurance benefit payments made to an individual
pursuant to the Unemployment Insurance Act unless the
individual has voluntarily elected the withholding pursuant
to rules promulgated by the Director of Employment Security.
(c) Special Definitions. Withholding shall be
considered required under the provisions of the Internal
Revenue Code to the extent the Internal Revenue Code either
requires withholding or allows for voluntary withholding the
payor and recipient have entered into such a voluntary
withholding agreement. For the purposes of Article 7 and
Section 1002(c) the term "employer" includes any payor who is
required to withhold tax pursuant to this Section.
(d) Reciprocal Exemption. The Director may enter into
an agreement with the taxing authorities of any state which
imposes a tax on or measured by income to provide that
compensation paid in such state to residents of this State
shall be exempt from withholding of such tax; in such case,
any compensation paid in this State to residents of such
state shall be exempt from withholding. All reciprocal
agreements shall be subject to the requirements of Section
2505-575 of the Department of Revenue Law (20 ILCS
2505/2505-575).
(e) Notwithstanding subsection (a)(2) of this Section,
no withholding is required on payments for which withholding
is required under Section 3405 or 3406 of the Internal
Revenue Code of 1954.
(Source: P.A. 91-239, eff. 1-1-00; 92-846, eff. 8-23-02.)
Section 13.3. The Unemployment Insurance Act is amended
by changing Sections 235, 237, 401, 601, 1401, 1502.1, 1505,
1506.3, 1507, and 2100 and adding Sections 240.1, 1400.1,
1511.1, and 2106.1 as follows:
(820 ILCS 405/235) (from Ch. 48, par. 345)
Sec. 235. The term "wages" does not include:
A. That part of the remuneration which, after
remuneration equal to $6,000 with respect to employment has
been paid to an individual by an employer during any calendar
year after 1977 and before 1980, is paid to such individual
by such employer during such calendar year; and that part of
the remuneration which, after remuneration equal to $6,500
with respect to employment has been paid to an individual by
an employer during each calendar year 1980 and 1981, is paid
to such individual by such employer during that calendar
year; and that part of the remuneration which, after
remuneration equal to $7,000 with respect to employment has
been paid to an individual by an employer during the calendar
year 1982 is paid to such individual by such employer during
that calendar year.
With respect to the first calendar quarter of 1983, the
term "wages" shall include only the remuneration paid to an
individual by an employer during such quarter with respect to
employment which does not exceed $7,000. With respect to the
three calendar quarters, beginning April 1, 1983, the term
"wages" shall include only the remuneration paid to an
individual by an employer during such period with respect to
employment which when added to the "wages" (as defined in the
preceding sentence) paid to such individual by such employer
during the first calendar quarter of 1983, does not exceed
$8,000.
With respect to the calendar year 1984, the term "wages"
shall include only the remuneration paid to an individual by
an employer during that period with respect to employment
which does not exceed $8,000; with respect to calendar years
1985, 1986 and 1987, the term "wages" shall include only the
remuneration paid to such individual by such employer during
that calendar year with respect to employment which does not
exceed $8,500.
With respect to the calendar years 1988 through 2003 and
calendar year 2005 and each calendar year thereafter, the
term "wages" shall include only the remuneration paid to an
individual by an employer during that period with respect to
employment which does not exceed $9,000.
With respect to the calendar year 2004, the term "wages"
shall include only the remuneration paid to an individual by
an employer during that period with respect to employment
which does not exceed $9,800 $10,000. With respect to the
calendar years 2005 through 2009, the term "wages" shall
include only the remuneration paid to an individual by an
employer during that period with respect to employment which
does not exceed the following amounts: $10,500 with respect
to the calendar year 2005; $11,000 with respect to the
calendar year 2006; $11,500 with respect to the calendar year
2007; $12,000 with respect to the calendar year 2008; and
$12,300 with respect to the calendar year 2009.
With respect to the calendar year 2010 and each calendar
year thereafter, the term "wages" shall include only the
remuneration paid to an individual by an employer during that
period with respect to employment which does not exceed the
sum of the wage base adjustment applicable to that year
pursuant to Section 1400.1, plus the maximum amount
includable as "wages" pursuant to this subsection with
respect to the immediately preceding calendar year.
Notwithstanding any provision to the contrary, the maximum
amount includable as "wages" pursuant to this Section shall
not be less than $12,300 or greater than $12,960 with respect
to any calendar year after calendar year 2009.
The remuneration paid to an individual by an employer
with respect to employment in another State or States, upon
which contributions were required of such employer under an
unemployment compensation law of such other State or States,
shall be included as a part of the remuneration equal to
$6,000, $6,500, $7,000, $8,000, $8,500, $9,000, or $10,000,
as the case may be, herein referred to. For the purposes of
this subsection, any employing unit which succeeds to the
organization, trade, or business, or to substantially all of
the assets of another employing unit, or to the organization,
trade, or business, or to substantially all of the assets of
a distinct severable portion of another employing unit, shall
be treated as a single unit with its predecessor for the
calendar year in which such succession occurs, and any
employing unit which is owned or controlled by the same
interests which own or control another employing unit shall
be treated as a single unit with the unit so owned or
controlled by such interests for any calendar year throughout
which such ownership or control exists. This subsection
applies only to Sections 1400, 1405A, and 1500.
B. The amount of any payment (including any amount paid
by an employer for insurance or annuities, or into a fund, to
provide for any such payment), made to, or on behalf of, an
individual or any of his dependents under a plan or system
established by an employer which makes provision generally
for individuals performing services for him (or for such
individuals generally and their dependents) or for a class or
classes of such individuals (or for a class or classes of
such individuals and their dependents), on account of (1)
sickness or accident disability (except those sickness or
accident disability payments which would be includable as
"wages" in Section 3306(b)(2)(A) of the Federal Internal
Revenue Code of 1954, in effect on January 1, 1985, such
includable payments to be attributable in such manner as
provided by Section 3306(b) of the Federal Internal Revenue
Code of 1954, in effect on January 1, 1985), or (2) medical
or hospitalization expenses in connection with sickness or
accident disability, or (3) death.
C. Any payment made to, or on behalf of, an employee or
his beneficiary which would be excluded from "wages" by
subparagraph (A), (B), (C), (D), (E), (F) or (G), of Section
3306(b)(5) of the Federal Internal Revenue Code of 1954, in
effect on January 1, 1985.
D. The amount of any payment on account of sickness or
accident disability, or medical or hospitalization expenses
in connection with sickness or accident disability, made by
an employer to, or on behalf of, an individual performing
services for him after the expiration of six calendar months
following the last calendar month in which the individual
performed services for such employer.
E. Remuneration paid in any medium other than cash by an
employing unit to an individual for service in agricultural
labor as defined in Section 214.
F. The amount of any supplemental payment made by an
employer to an individual performing services for him, other
than remuneration for services performed, under a shared work
plan approved by the Director pursuant to Section 407.1.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)
(820 ILCS 405/237) (from Ch. 48, par. 347)
Sec. 237. A. "Base period" means (1) the four
consecutive calendar quarters ended on the preceding December
31, for benefit years beginning in May, June, or July; (2)
the four consecutive calendar quarters ended on the preceding
March 31, for benefit years beginning in August, September,
or October; (3) the four consecutive calendar quarters ended
on the preceding June 30, for benefit years beginning in
November, December, or January; and (4) the four consecutive
calendar quarters ended on the preceding September 30, for
benefit years beginning in February, March, or April. This
paragraph shall apply to benefit years beginning prior to
November 1, 1981.
For each benefit year beginning on or after November 1,
1981, "base period" means the first four of the last five
completed calendar quarters immediately preceding the benefit
year. Further, any wages which had previously been used to
establish a valid claim pursuant to Section 242 and with
respect to which benefits have been paid shall not be
included in the base period provided for in this subsection.
B. Notwithstanding subsection A the foregoing paragraph,
with respect to any benefit year beginning on or after
January 1, 1988, an individual, who has been awarded
temporary total disability under any workers' compensation
act or any occupational diseases act and does not qualify for
the maximum weekly benefit amount under Section 401 because
he was unemployed and awarded temporary total disability
during the base period determined in accordance with
subsection A the preceding paragraph, shall have his weekly
benefit amount, if it is greater than the weekly benefit
amount determined in accordance with subsection A the
preceding paragraph, determined by the base period of a
benefit year which began on the date of the beginning of the
first week for which he was awarded temporary total
disability under any workers' compensation act or
occupational diseases act, provided, however, that such base
period shall not begin more than one year prior to the
individual's base period as determined under subsection A the
preceding paragraph. Further, any wages which had previously
been used to establish a valid claim pursuant to Section 242
and with respect to which benefits have been paid shall not
be included in the base period provided for in this
subsection paragraph.
C. With respect to an individual who is ineligible to
receive benefits under this Act by reason of the provisions
of Section 500E during the base periods determined in
accordance with subsections A and B, "base period" means the
last 4 completed calendar quarters immediately preceding the
benefit year. This subsection shall not apply to establish
any benefit year beginning prior to January 1, 2008.
D. Notwithstanding the foregoing provisions of this
Section, "base period" means the base period as defined in
the unemployment compensation law of any State under which
benefits are payable to an individual on the basis of a
combination of his wages pursuant to an arrangement described
in Section 2700 F.
(Source: P.A. 85-956; 85-1009.)
(820 ILCS 405/240.1 new)
Sec. 240.1. "Fund Building Receipts" means amounts
directed for deposit into the Master Bond Fund pursuant to
Section 1506.3.
(820 ILCS 405/401) (from Ch. 48, par. 401)
Sec. 401. Weekly Benefit Amount - Dependents'
Allowances.
A. With respect to any week beginning prior to April 24,
1983, an individual's weekly benefit amount shall be an
amount equal to the weekly benefit amount as defined in this
Act as in effect on November 30, 1982.
B. 1. With respect to any week beginning on or after
April 24, 1983 and before January 3, 1988, an individual's
weekly benefit amount shall be 48% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar; provided, however, that
the weekly benefit amount cannot exceed the maximum weekly
benefit amount, and cannot be less than 15% of the statewide
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar. However, the weekly
benefit amount for an individual who has established a
benefit year beginning before April 24, 1983, shall be
determined, for weeks beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided under
this Act as in effect on November 30, 1982. With respect to
any week beginning on or after January 3, 1988 and before
January 1, 1993, an individual's weekly benefit amount shall
be 49% of his prior average weekly wage, rounded (if not
already a multiple of one dollar) to the next higher dollar;
provided, however, that the weekly benefit amount cannot
exceed the maximum weekly benefit amount, and cannot be less
than $51. With respect to any week beginning on or after
January 3, 1993 and during a benefit year beginning before
January 4, 2004, an individual's weekly benefit amount shall
be 49.5% of his prior average weekly wage, rounded (if not
already a multiple of one dollar) to the next higher dollar;
provided, however, that the weekly benefit amount cannot
exceed the maximum weekly benefit amount and cannot be less
than $51. With respect to any benefit year beginning on or
after January 4, 2004 and before January 6, 2008, an
individual's weekly benefit amount shall be 48% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar; provided, however,
that the weekly benefit amount cannot exceed the maximum
weekly benefit amount and cannot be less than $51. With
respect to any benefit year beginning on or after January 6,
2008, an individual's weekly benefit amount shall be 47% of
his or her prior average weekly wage, rounded (if not already
a multiple of one dollar) to the next higher dollar;
provided, however, that the weekly benefit amount cannot
exceed the maximum weekly benefit amount and cannot be less
than $51.
2. For the purposes of this subsection:
With respect to any week beginning on or after April 24,
1983, an individual's "prior average weekly wage" means the
total wages for insured work paid to that individual during
the 2 calendar quarters of his base period in which such
total wages were highest, divided by 26. If the quotient is
not already a multiple of one dollar, it shall be rounded to
the nearest dollar; however if the quotient is equally near 2
multiples of one dollar, it shall be rounded to the higher
multiple of one dollar.
"Determination date" means June 1, 1982, December 1, 1982
and December 1 of each succeeding calendar year thereafter.
However, if as of June 30, 1982, or any June 30 thereafter,
the net amount standing to the credit of this State's account
in the unemployment trust fund (less all outstanding advances
to that account, including advances pursuant to Title XII of
the federal Social Security Act) is greater than
$100,000,000, "determination date" shall mean December 1 of
that year and June 1 of the succeeding year. Notwithstanding
the preceding sentence, for the purposes of this Act only,
there shall be no June 1 determination date in any year after
1986.
"Determination period" means, with respect to each June 1
determination date, the 12 consecutive calendar months ending
on the immediately preceding December 31 and, with respect to
each December 1 determination date, the 12 consecutive
calendar months ending on the immediately preceding June 30.
"Benefit period" means the 12 consecutive calendar month
period beginning on the first day of the first calendar month
immediately following a determination date, except that, with
respect to any calendar year in which there is a June 1
determination date, "benefit period" shall mean the 6
consecutive calendar month period beginning on the first day
of the first calendar month immediately following the
preceding December 1 determination date and the 6 consecutive
calendar month period beginning on the first day of the first
calendar month immediately following the June 1 determination
date. Notwithstanding the foregoing sentence, the 6 calendar
months beginning January 1, 1982 and ending June 30, 1982
shall be deemed a benefit period with respect to which the
determination date shall be June 1, 1981.
"Gross wages" means all the wages paid to individuals
during the determination period immediately preceding a
determination date for insured work, and reported to the
Director by employers prior to the first day of the third
calendar month preceding that date.
"Covered employment" for any calendar month means the
total number of individuals, as determined by the Director,
engaged in insured work at mid-month.
"Average monthly covered employment" means one-twelfth of
the sum of the covered employment for the 12 months of a
determination period.
"Statewide average annual wage" means the quotient,
obtained by dividing gross wages by average monthly covered
employment for the same determination period, rounded (if not
already a multiple of one cent) to the nearest cent.
"Statewide average weekly wage" means the quotient,
obtained by dividing the statewide average annual wage by 52,
rounded (if not already a multiple of one cent) to the
nearest cent. Notwithstanding any provisions of this Section
to the contrary, the statewide average weekly wage for the
benefit period beginning July 1, 1982 and ending December 31,
1982 shall be the statewide average weekly wage in effect for
the immediately preceding benefit period plus one-half of the
result obtained by subtracting the statewide average weekly
wage for the immediately preceding benefit period from the
statewide average weekly wage for the benefit period
beginning July 1, 1982 and ending December 31, 1982 as such
statewide average weekly wage would have been determined but
for the provisions of this paragraph. Notwithstanding any
provisions of this Section to the contrary, the statewide
average weekly wage for the benefit period beginning April
24, 1983 and ending January 31, 1984 shall be $321 and for
the benefit period beginning February 1, 1984 and ending
December 31, 1986 shall be $335, and for the benefit period
beginning January 1, 1987, and ending December 31, 1987,
shall be $350, except that for an individual who has
established a benefit year beginning before April 24, 1983,
the statewide average weekly wage used in determining
benefits, for any week beginning on or after April 24, 1983,
claimed with respect to that benefit year, shall be $334.80,
except that, for the purpose of determining the minimum
weekly benefit amount under subsection B(1) for the benefit
period beginning January 1, 1987, and ending December 31,
1987, the statewide average weekly wage shall be $335; for
the benefit periods January 1, 1988 through December 31,
1988, January 1, 1989 through December 31, 1989, and January
1, 1990 through December 31, 1990, the statewide average
weekly wage shall be $359, $381, and $406, respectively.
Notwithstanding the preceding sentences of this paragraph,
for the benefit period of calendar year 1991, the statewide
average weekly wage shall be $406 plus (or minus) an amount
equal to the percentage change in the statewide average
weekly wage, as computed in accordance with the preceding
sentences of this paragraph, between the benefit periods of
calendar years 1989 and 1990, multiplied by $406; and, for
the benefit periods of calendar years 1992 through 2003 and
calendar year 2005 and each calendar year thereafter, the
statewide average weekly wage, shall be the statewide average
weekly wage, as determined in accordance with this sentence,
for the immediately preceding benefit period plus (or minus)
an amount equal to the percentage change in the statewide
average weekly wage, as computed in accordance with the
preceding sentences of this paragraph, between the 2
immediately preceding benefit periods, multiplied by the
statewide average weekly wage, as determined in accordance
with this sentence, for the immediately preceding benefit
period. For the benefit period of 2004, the statewide average
weekly wage shall be $600. Provided however, that for any
benefit period after December 31, 1990, if 2 of the following
3 factors occur, then the statewide average weekly wage shall
be the statewide average weekly wage in effect for the
immediately preceding benefit period: (a) the average
contribution rate for all employers in this State for the
calendar year 2 years prior to the benefit period, as a ratio
of total contribution payments (including payments in lieu of
contributions) to total wages reported by employers in this
State for that same period is 0.2% greater than the national
average of this ratio, the foregoing to be determined in
accordance with rules promulgated by the Director; (b) the
balance in this State's account in the unemployment trust
fund, as of March 31 of the prior calendar year, is less than
$250,000,000; or (c) the number of first payments of initial
claims, as determined in accordance with rules promulgated by
the Director, for the one year period ending on June 30 of
the prior year, has increased more than 25% over the average
number of such payments during the 5 year period ending that
same June 30; and provided further that if (a), (b) and (c)
occur, then the statewide average weekly wage, as determined
in accordance with the preceding sentence, shall be 10% less
than it would have been but for these provisions. If the
reduced amount, computed in accordance with the preceding
sentence, is not already a multiple of one dollar, it shall
be rounded to the nearest dollar. The 10% reduction in the
statewide average weekly wage in the preceding sentence shall
not be in effect for more than 2 benefit periods of any 5
consecutive benefit periods. This 10% reduction shall not be
cumulative from year to year. Neither the freeze nor the
reduction shall be considered in the determination of
subsequent years' calculations of statewide average weekly
wage. However, for purposes of the Workers' Compensation Act,
the statewide average weekly wage will be computed using June
1 and December 1 determination dates of each calendar year
and such determination shall not be subject to the limitation
of $321, $335, $350, $359, $381, $406 or the statewide
average weekly wage as computed in accordance with the
preceding sentence 7 sentences of this paragraph.
With respect to any week beginning on or after April 24,
1983 and before January 3, 1988, "maximum weekly benefit
amount" means 48% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the
nearest dollar, provided however, that the maximum weekly
benefit amount for an individual who has established a
benefit year beginning before April 24, 1983, shall be
determined, for weeks beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided under
this Act as amended and in effect on November 30, 1982,
except that the statewide average weekly wage used in such
determination shall be $334.80.
With respect to any week beginning after January 2, 1988
and before January 1, 1993, "maximum weekly benefit amount"
with respect to each week beginning within a benefit period
means 49% of the statewide average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar.
With respect to any week beginning on or after January 3,
1993 and during a benefit year beginning before January 4,
2004, "maximum weekly benefit amount" with respect to each
week beginning within a benefit period means 49.5% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
With respect to any benefit year beginning on or after
January 4, 2004 and before January 6, 2008, "maximum weekly
benefit amount" with respect to each week beginning within a
benefit period means 48% of the statewide average weekly
wage, rounded (if not already a multiple of one dollar) to
the next higher dollar.
With respect to any benefit year beginning on or after
January 6, 2008, "maximum weekly benefit amount" with respect
to each week beginning within a benefit period means 47% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
C. With respect to any week beginning on or after April
24, 1983 and before January 3, 1988, an individual to whom
benefits are payable with respect to any week shall, in
addition to such benefits, be paid, with respect to such
week, as follows: in the case of an individual with a
nonworking spouse, 7% of his prior average weekly wage,
rounded (if not already a multiple of one dollar) to the
higher dollar; provided, that the total amount payable to the
individual with respect to a week shall not exceed 55% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the nearest dollar; and in the
case of an individual with a dependent child or dependent
children, 14.4% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the higher dollar;
provided, that the total amount payable to the individual
with respect to a week shall not exceed 62.4% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar with
respect to the benefit period beginning January 1, 1987 and
ending December 31, 1987, and otherwise to the nearest
dollar. However, for an individual with a nonworking spouse
or with a dependent child or children who has established a
benefit year beginning before April 24, 1983, the amount of
additional benefits payable on account of the nonworking
spouse or dependent child or children shall be determined,
for weeks beginning on or after April 24, 1983 claimed with
respect to that benefit year, as provided under this Act as
in effect on November 30, 1982, except that the statewide
average weekly wage used in such determination shall be
$334.80.
With respect to any week beginning on or after January 2,
1988 and before January 1, 1991 and any week beginning on or
after January 1, 1992, and before January 1, 1993, an
individual to whom benefits are payable with respect to any
week shall, in addition to those benefits, be paid, with
respect to such week, as follows: in the case of an
individual with a nonworking spouse, 8% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar, provided, that the total
amount payable to the individual with respect to a week
shall not exceed 57% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar; and in the case of an individual with a
dependent child or dependent children, 15% of his prior
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar, provided that the
total amount payable to the individual with respect to a week
shall not exceed 64% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
With respect to any week beginning on or after January 1,
1991 and before January 1, 1992, an individual to whom
benefits are payable with respect to any week shall, in
addition to the benefits, be paid, with respect to such week,
as follows: in the case of an individual with a nonworking
spouse, 8.3% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar, provided, that the total amount payable to the
individual with respect to a week shall not exceed 57.3% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar; and in the
case of an individual with a dependent child or dependent
children, 15.3% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed 64.3% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
With respect to any week beginning on or after January 3,
1993, during a benefit year beginning before January 4, 2004,
an individual to whom benefits are payable with respect to
any week shall, in addition to those benefits, be paid, with
respect to such week, as follows: in the case of an
individual with a nonworking spouse, 9% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar, provided, that the total
amount payable to the individual with respect to a week
shall not exceed 58.5% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar; and in the case of an individual with a
dependent child or dependent children, 16% of his prior
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar, provided that the
total amount payable to the individual with respect to a week
shall not exceed 65.5% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
With respect to any benefit year beginning on or after
January 4, 2004 and before January 6, 2008, an individual to
whom benefits are payable with respect to any week shall, in
addition to those benefits, be paid, with respect to such
week, as follows: in the case of an individual with a
nonworking spouse, 9% of his or her prior average weekly
wage, rounded (if not already a multiple of one dollar) to
the next higher dollar, provided, that the total amount
payable to the individual with respect to a week shall not
exceed 57% of the statewide average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar; and in the case of an individual with a dependent
child or dependent children, 17.2% of his or her prior
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar, provided that the
total amount payable to the individual with respect to a week
shall not exceed 65.2% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
With respect to any benefit year beginning on or after
January 6, 2008, an individual to whom benefits are payable
with respect to any week shall, in addition to those
benefits, be paid, with respect to such week, as follows: in
the case of an individual with a nonworking spouse, 9% of his
or her prior average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar, provided,
that the total amount payable to the individual with respect
to a week shall not exceed 56% of the statewide average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar; and with respect to any
benefit year beginning before January 1, 2010, in the case of
an individual with a dependent child or dependent children,
18.2% of his or her prior average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed 65.2% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar. The
additional amount paid pursuant to this subsection in the
case of an individual with a dependent child or dependent
children shall be referred to as the "dependent child
allowance". With respect to each benefit year beginning in a
calendar year after calendar year 2009, the percentage rate
used to calculate the dependent child allowance shall be the
sum of the allowance adjustment applicable pursuant to
Section 1400.1 to the calendar year in which the benefit year
begins, plus the percentage rate used to calculate the
dependent child allowance with respect to each benefit year
beginning in the immediately preceding calendar year,
provided that the total amount payable to the individual with
respect to a week beginning in such benefit year shall not
exceed the product of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar and the sum of 47% plus the percentage rate
used to calculate the individual's dependent child allowance.
Notwithstanding any provision to the contrary, the percentage
rate used to calculate the dependent child allowance with
respect to any benefit year beginning on or after January 1,
2010, shall not be less than 17.3% or greater than 18.2%.
For the purposes of this subsection:
"Dependent" means a child or a nonworking spouse.
"Child" means a natural child, stepchild, or adopted
child of an individual claiming benefits under this Act or a
child who is in the custody of any such individual by court
order, for whom the individual is supplying and, for at least
90 consecutive days (or for the duration of the parental
relationship if it has existed for less than 90 days)
immediately preceding any week with respect to which the
individual has filed a claim, has supplied more than one-half
the cost of support, or has supplied at least 1/4 of the cost
of support if the individual and the other parent, together,
are supplying and, during the aforesaid period, have supplied
more than one-half the cost of support, and are, and were
during the aforesaid period, members of the same household;
and who, on the first day of such week (a) is under 18 years
of age, or (b) is, and has been during the immediately
preceding 90 days, unable to work because of illness or other
disability: provided, that no person who has been determined
to be a child of an individual who has been allowed benefits
with respect to a week in the individual's benefit year shall
be deemed to be a child of the other parent, and no other
person shall be determined to be a child of such other
parent, during the remainder of that benefit year.
"Nonworking spouse" means the lawful husband or wife of
an individual claiming benefits under this Act, for whom more
than one-half the cost of support has been supplied by the
individual for at least 90 consecutive days (or for the
duration of the marital relationship if it has existed for
less than 90 days) immediately preceding any week with
respect to which the individual has filed a claim, but only
if the nonworking spouse is currently ineligible to receive
benefits under this Act by reason of the provisions of
Section 500E.
An individual who was obligated by law to provide for the
support of a child or of a nonworking spouse for the
aforesaid period of 90 consecutive days, but was prevented by
illness or injury from doing so, shall be deemed to have
provided more than one-half the cost of supporting the child
or nonworking spouse for that period.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)
(820 ILCS 405/601) (from Ch. 48, par. 431)
Sec. 601. Voluntary leaving. A. An individual shall be
ineligible for benefits for the week in which he has left
work voluntarily without good cause attributable to the
employing unit and, thereafter, until he has become
reemployed and has had earnings equal to or in excess of his
current weekly benefit amount in each of four calendar weeks
which are either for services in employment, or have been or
will be reported pursuant to the provisions of the Federal
Insurance Contributions Act by each employing unit for which
such services are performed and which submits a statement
certifying to that fact.
B. The provisions of this Section shall not apply to an
individual who has left work voluntarily:
1. Because he is deemed physically unable to perform his
work by a licensed and practicing physician, or has left work
voluntarily upon the advice of a licensed and practicing
physician that assistance is necessary for the purpose of
caring for his spouse, child, or parent who is in poor
physical health and such assistance will not allow him to
perform the usual and customary duties of his employment, and
he has notified the employing unit of the reasons for his
absence;
2. To accept other bona fide work and, after such
acceptance, the individual is either not unemployed in each
of 2 weeks, or earns remuneration for such work equal to at
least twice his current weekly benefit amount;
3. In lieu of accepting a transfer to other work offered
to the individual by the employing unit under the terms of a
collective bargaining agreement or pursuant to an established
employer plan, program, or policy, if the acceptance of such
other work by the individual would require the separation
from that work of another individual currently performing it;
4. Solely because of the sexual harassment of the
individual by another employee. Sexual harassment means (1)
unwelcome sexual advances, requests for sexual favors,
sexually motivated physical contact or other conduct or
communication which is made a term or condition of the
employment or (2) the employee's submission to or rejection
of such conduct or communication which is the basis for
decisions affecting employment, or (3) when such conduct or
communication has the purpose or effect of substantially
interfering with an individual's work performance or creating
an intimidating, hostile, or offensive working environment
and the employer knows or should know of the existence of the
harassment and fails to take timely and appropriate action;
5. Which he had accepted after separation from other
work, and the work which he left voluntarily would be deemed
unsuitable under the provisions of Section 603;.
6. (a) Because the individual left work due to
circumstances resulting from the individual being a victim of
domestic violence as defined in Section 103 of the Illinois
Domestic Violence Act of 1986; and provided, such individual
has made reasonable efforts to preserve the employment.
For the purposes of this paragraph 6, the individual
shall be treated as being a victim of domestic violence if
the individual provides the following:
(i) written notice to the employing unit of the
reason for the individual's voluntarily leaving; and
(ii) to the Department provides:
(A) an order of protection or other
documentation of equitable relief issued by a court
of competent jurisdiction; or
(B) a police report or criminal charges
documenting the domestic violence; or
(C) medical documentation of the domestic
violence; or
(D) evidence of domestic violence from a
counselor, social worker, health worker or domestic
violence shelter worker.
(b) If the individual does not meet the provisions of
subparagraph (a), the individual shall be held to have
voluntarily terminated employment for the purpose of
determining the individual's eligibility for benefits
pursuant to subsection A.
(c) Notwithstanding any other provision to the contrary,
evidence of domestic violence experienced by an individual,
including the individual's statement and corroborating
evidence, shall not be disclosed by the Department unless
consent for disclosure is given by the individual.
(Source: P.A. 83-197.)
(820 ILCS 405/1400.1 new)
Sec. 1400.1. Solvency Adjustments. As used in this
Section, "prior year's trust fund balance" means the net
amount standing to the credit of this State's account in the
unemployment trust fund (less all outstanding advances to
that account, including but not limited to advances pursuant
to Title XII of the federal Social Security Act) as of June
30 of the immediately preceding calendar year.
The wage base adjustment, rate adjustment, and allowance
adjustment applicable to any calendar year after calendar
year 2009 shall be as follows:
If the prior year's trust fund balance is less than
$300,000,000, the wage base adjustment shall be $220, the
rate adjustment shall be 0.05%, and the allowance adjustment
shall be -0.3% absolute.
If the prior year's trust fund balance is equal to or
greater than $300,000,000 but less than $700,000,000, the
wage base adjustment shall be $150, the rate adjustment shall
be 0.025%, and the allowance adjustment shall be -0.2%
absolute.
If the prior year's trust fund balance is equal to or
greater than $700,000,000 but less than $1,000,000,000, the
wage base adjustment shall be $75, the rate adjustment shall
be 0, and the allowance adjustment shall be -0.1% absolute.
If the prior year's trust fund balance is equal to or
greater than $1,000,000,000 but less than $1,300,000,000, the
wage base adjustment shall be -$75, the rate adjustment shall
be 0, and the allowance adjustment shall be 0.1% absolute.
If the prior year's trust fund balance is equal to or
greater than $1,300,000,000 but less than $1,700,000,000, the
wage base adjustment shall be -$150, the rate adjustment
shall be -0.025%, and the allowance adjustment shall be 0.2%
absolute.
If the prior year's trust fund balance is equal to or
greater than $1,700,000,000, the wage base adjustment shall
be -$220, the rate adjustment shall be -0.05%, and the
allowance adjustment shall be 0.3% absolute.
(820 ILCS 405/1401) (from Ch. 48, par. 551)
Sec. 1401. Interest. Any employer who shall fail to pay
any contributions (including any amounts due pursuant to
Section 1506.3 or Section 1506.4) when required of him by the
provisions of this Act and the rules and regulations of the
Director, whether or not the amount thereof has been
determined and assessed by the Director, shall pay to the
Director, in addition to such contribution, interest thereon
at the rate of one percent (1%) per month and one-thirtieth
(1/30) of one percent (1%) for each day or fraction thereof
computed from the day upon which said contribution became
due. After 1981, such interest shall accrue at the rate of 2%
per month, computed at the rate of 12/365 of 2% for each day
or fraction thereof, upon any unpaid contributions which
become due, provided that, after 1987, for the purposes of
calculating interest due under this Section only, payments
received more than 30 days after such contributions become
due shall be deemed received on the last day of the month
preceding the month in which they were received except that,
if the last day of such preceding month is less than 30 days
after the date that such contributions became due, then such
payments shall be deemed to have been received on the 30th
day after the date such contributions became due.
However, all or part of any interest may be waived by the
Director for good cause shown.
(Source: P.A. 85-956; 86-1367.)
(820 ILCS 405/1502.1) (from Ch. 48, par. 572.1)
Sec. 1502.1. Employer's benefit charges.
A. Benefit charges which result from payments to any
claimant made on or after July 1, 1989 shall be charged:
1. For benefit years beginning prior to July 1,
1989, to each employer who paid wages to the claimant
during his base period;
2. For benefit years beginning on or after July 1,
1989 but before January 1, 1993, to the later of:
a. the last employer prior to the beginning of
the claimant's benefit year:
i. from whom the claimant was separated
or who, by reduction of work offered, caused
the claimant to become unemployed as defined in
Section 239, and,
ii. for whom the claimant performed
services in employment, on each of 30 days
whether or not such days are consecutive,
provided that the wages for such services were
earned during the period from the beginning of
the claimant's base period to the beginning of
the claimant's benefit year; but that employer
shall not be charged if:
(1) the claimant's last separation
from that employer was a voluntary leaving
without good cause, as the term is used in
Section 601A or under the circumstances
described in paragraphs 1 and 2 of Section
601B; or
(2) the claimant's last separation
from that employer was a discharge for
misconduct or a felony or theft connected
with his work from that employer, as these
terms are used in Section 602; or
(3) after his last separation from
that employer, prior to the beginning of
his benefit year, the claimant refused to
accept an offer of or to apply for
suitable work from that employer without
good cause, as these terms are used in
Section 603; or
(4) the claimant, following his last
separation from that employer, prior to
the beginning of his benefit year, is
ineligible or would have been ineligible
under Section 612 if he has or had had
base period wages from the employers to
which that Section applies; or
(5) the claimant subsequently
performed services for at least 30 days
for an individual or organization which
is not an employer subject to this Act; or
b. the single employer who pays wages to the
claimant that allow him to requalify for benefits
after disqualification under Section 601, 602 or
603, if:
i. the disqualifying event occurred prior
to the beginning of the claimant's benefit
year, and
ii. the requalification occurred after
the beginning of the claimant's benefit year,
and
iii. even if the 30 day requirement given
in this paragraph is not satisfied; but
iv. the requalifying employer shall not
be charged if the claimant is held ineligible
with respect to that requalifying employer
under Section 601, 602 or 603.
3. For benefit years beginning on or after January
1, 1993, with respect to each week for which benefits are
paid, to the later of:
a. the last employer:
i. from whom the claimant was separated
or who, by reduction of work offered, caused
the claimant to become unemployed as defined in
Section 239, and
ii. for whom the claimant performed
services in employment, on each of 30 days
whether or not such days are consecutive,
provided that the wages for such services were
earned since the beginning of the claimant's
base period; but that employer shall not be
charged if:
(1) the claimant's separation from
that employer was a voluntary leaving
without good cause, as the term is used in
Section 601A or under the circumstances
described in paragraphs 1, and 2, and 6 of
Section 601B; or
(2) the claimant's separation from
that employer was a discharge for
misconduct or a felony or theft connected
with his work from that employer, as these
terms are used in Section 602; or
(3) the claimant refused to accept
an offer of or to apply for suitable work
from that employer without good cause, as
these terms are used in Section 603 (but
only for weeks following the refusal of
work); or
(4) the claimant subsequently
performed services for at least 30 days
for an individual or organization which is
not an employer subject to this Act; or
(5) the claimant, following his
separation from that employer, is
ineligible or would have been ineligible
under Section 612 if he has or had had
base period wages from the employers to
which that Section applies (but only for
the period of ineligibility or potential
ineligibility); or
b. the single employer who pays wages to the
claimant that allow him to requalify for benefits
after disqualification under Section 601, 602, or
603, even if the 30 day requirement given in this
paragraph is not satisfied; but the requalifying
employer shall not be charged if the claimant is
held ineligible with respect to that requalifying
employer under Section 601, 602, or 603.
B. Whenever a claimant is ineligible pursuant to Section
614 on the basis of wages paid during his base period, any
days on which such wages were earned shall not be counted in
determining whether that claimant performed services during
at least 30 days for the employer that paid such wages as
required by paragraphs 2 and 3 of subsection A.
C. If no employer meets the requirements of paragraph 2
or 3 of subsection A, then no employer will be chargeable for
any benefit charges which result from the payment of benefits
to the claimant for that benefit year.
D. Notwithstanding the preceding provisions of this
Section, no employer shall be chargeable for any benefit
charges which result from the payment of benefits to any
claimant after the effective date of this amendatory Act of
1992 where the claimant's separation from that employer
occurred as a result of his detention, incarceration, or
imprisonment under State, local, or federal law.
E. For the purposes of Sections 302, 409, 701, 1403,
1404, 1405 and 1508.1, last employer means the employer that:
1. is charged for benefit payments which become
benefit charges under this Section, or
2. would have been liable for such benefit charges
if it had not elected to make payments in lieu of
contributions.
(Source: P.A. 86-3; 87-1178.)
(820 ILCS 405/1505) (from Ch. 48, par. 575)
Sec. 1505. Adjustment of state experience factor. The
state experience factor shall be adjusted in accordance with
the following provisions:
A. This subsection shall apply to each calendar year
prior to 1980 for which a state experience factor is being
determined.
For every $7,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in the
unemployment trust fund as of June 30 of the calendar year
immediately preceding the calendar year for which the state
experience factor is being determined falls below
$450,000,000, the state experience factor for the succeeding
calendar year shall be increased 1 percent absolute.
For every $7,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in the
unemployment trust fund as of June 30 of the calendar year
immediately preceding the calendar year for which the state
experience factor is being determined exceeds $450,000,000,
the state experience factor for the succeeding year shall be
reduced 1 percent absolute.
B. This subsection shall apply to the calendar years
1980 through 1987, for which the state experience factor is
being determined.
For every $12,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in the
unemployment trust fund as of June 30 of the calendar year
immediately preceding the calendar year for which the state
experience factor is being determined falls below
$750,000,000, the state experience factor for the succeeding
calendar year shall be increased 1 percent absolute.
For every $12,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in the
unemployment trust fund as of June 30 of the calendar year
immediately preceding the calendar year for which the state
experience factor is being determined exceeds $750,000,000,
the state experience factor for the succeeding year shall be
reduced 1 percent absolute.
C. This subsection shall apply to the calendar year 1988
and each calendar year thereafter, for which the state
experience factor is being determined.
1. For every $50,000,000 (or fraction thereof) by
which the adjusted trust fund balance falls below the
target balance set forth in this subsection $750,000,000,
the state experience factor for the succeeding year shall
be increased one percent absolute.
For every $50,000,000 (or fraction thereof) by which
the adjusted trust fund balance exceeds the target
balance set forth in this subsection $750,000,000, the
state experience factor for the succeeding year shall be
decreased by one percent absolute.
The target balance in each calendar year prior to
2003 is $750,000,000. The target balance in calendar year
2003 is $920,000,000. The target balance in calendar year
2004 is $960,000,000. The target balance in calendar year
2005 and each calendar year thereafter is $1,000,000,000.
2. For the purposes of this subsection:
"Net trust fund balance" is the amount standing to
the credit of this State's account in the unemployment
trust fund as of June 30 of the calendar year immediately
preceding the year for which a state experience factor is
being determined.
"Adjusted trust fund balance" is the net trust fund
balance minus the sum of the benefit reserves for fund
building for July 1, 1987 through June 30 of the year
prior to the year for which the state experience factor
is being determined. The adjusted trust fund balance
shall not be less than zero. If the preceding
calculation results in a number which is less than zero,
the amount by which it is less than zero shall reduce the
sum of the benefit reserves for fund building for
subsequent years.
For the purpose of determining the state experience
factor for 1989 and for each calendar year thereafter,
the following "benefit reserves for fund building" shall
apply for each state experience factor calculation in
which that 12 month period is applicable:
a. For the 12 month period ending on June 30,
1988, the "benefit reserve for fund building" shall
be 8/104th of the total benefits paid from January
1, 1988 through June 30, 1988.
b. For the 12 month period ending on June 30,
1989, the "benefit reserve for fund building" shall
be the sum of:
i. 8/104ths of the total benefits paid
from July 1, 1988 through December 31, 1988,
plus
ii. 4/108ths of the total benefits paid
from January 1, 1989 through June 30, 1989.
c. For the 12 month period ending on June 30,
1990, the "benefit reserve for fund building" shall
be 4/108ths of the total benefits paid from July 1,
1989 through December 31, 1989.
d. For 1992 and for each calendar year
thereafter, the "benefit reserve for fund building"
for the 12 month period ending on June 30, 1991 and
for each subsequent 12 month period shall be zero.
3. Notwithstanding the preceding provisions of this
subsection, for calendar years 1988 through 2003, the
state experience factor shall not be increased or
decreased by more than 15 percent absolute.
D. Notwithstanding the provisions of subsection C, the
adjusted state experience factor:
1. Shall be 111 percent for calendar year 1988;
2. Shall not be less than 75 percent nor greater
than 135 percent for calendar years year 1989 through
2003; and shall not be less than 75% nor greater than
150% for calendar year 2004 and each calendar year
thereafter;
3. Shall not be decreased by more than 5 percent
absolute for any calendar year, beginning in calendar
year 1989 and through calendar year 1992, by more than 6%
absolute for calendar years 1993 through 1995, and by
more than 10% absolute for calendar years year 1999
through 2003 and by more than 12% absolute for calendar
year 2004 and each calendar year thereafter, from the
adjusted state experience factor of the calendar year
preceding the calendar year for which the adjusted state
experience factor is being determined;
4. Shall not be increased by more than 15% absolute
for calendar year 1993, by more than 14% absolute for
calendar years 1994 and 1995, and by more than 10%
absolute for calendar years year 1999 through 2003 and by
more than 16% absolute for calendar year 2004 and each
calendar year thereafter, from the adjusted state
experience factor for the calendar year preceding the
calendar year for which the adjusted state experience
factor is being determined;
5. Shall be 100% for calendar years 1996, 1997, and
1998.
E. The amount standing to the credit of this State's
account in the unemployment trust fund as of June 30 shall be
deemed to include as part thereof (a) any amount receivable
on that date from any Federal governmental agency, or as a
payment in lieu of contributions under the provisions of
Sections 1403 and 1405 B and paragraph 2 of Section 302C, in
reimbursement of benefits paid to individuals, and (b)
amounts credited by the Secretary of the Treasury of the
United States to this State's account in the unemployment
trust fund pursuant to Section 903 of the Federal Social
Security Act, as amended, including any such amounts which
have been appropriated by the General Assembly in accordance
with the provisions of Section 2100 B for expenses of
administration, except any amounts which have been obligated
on or before that date pursuant to such appropriation.
(Source: P.A. 89-446, eff. 2-8-96.)
(820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
Sec. 1506.3. Fund building rates - Temporary
Administrative Funding.
A. Notwithstanding any other provision of this Act, the
following fund building rates shall be in effect for the
following calendar years:
For each employer whose contribution rate for 1988, 1989,
1990, the first, third, and fourth quarters of 1991, 1992,
1993, 1994, 1995, and 1997 through 2003 and any calendar year
thereafter would, in the absence of this Section, be 0.2% or
higher, a contribution rate which is the sum of such rate and
a fund building rate of 0.4%;
For each employer whose contribution rate for the second
quarter of 1991 would, in the absence of this Section, be
0.2% or higher, a contribution rate which is the sum of such
rate and 0.3%;
For each employer whose contribution rate for 1996 would,
in the absence of this Section, be 0.1% or higher, a
contribution rate which is the sum of such rate and 0.4%;
For each employer whose contribution rate for 2004
through 2009 would, in the absence of this Section, be 0.2%
or higher, a contribution rate which is the sum of such rate
and the following: a fund building rate of 0.7% for 2004; a
fund building rate of 0.9% for 2005; a fund building rate of
0.8% for 2006 and 2007; a fund building rate of 0.6% for
2008; a fund building rate of 0.4% for 2009.
For each employer whose contribution rate for 2010 and
any calendar year thereafter would, in the absence of this
Section, be 0.2% or higher, a contribution rate which is the
sum of such rate and a fund building rate equal to the sum of
the rate adjustment applicable to that year pursuant to
Section 1400.1, plus the fund building rate in effect
pursuant to this Section for the immediately preceding
calendar year. Notwithstanding any provision to the contrary,
the fund building rate in effect for any calendar year after
calendar year 2009 shall not be less than 0.4% or greater
than 0.55%.
Notwithstanding the preceding paragraphs of this Section
or any other provision of this Act, except for the provisions
contained in Section 1500 pertaining to rates applicable to
employers classified under the Standard Industrial Code, or
another classification system sanctioned by the United States
Department of Labor and prescribed by the Director by rule,
no employer whose total wages for insured work paid by him
during any calendar quarter in 1988 and any calendar year
thereafter are less than $50,000 shall pay contributions at a
rate with respect to such quarter which exceeds the
following: with respect to calendar year 1988, 5%; with
respect to 1989 and any calendar year thereafter, 5.4%.
Notwithstanding the preceding paragraph of this Section,
or any other provision of this Act, no employer's
contribution rate with respect to calendar years 1993 through
1995 shall exceed 5.4% if the employer ceased operations at
an Illinois manufacturing facility in 1991 and remained
closed at that facility during all of 1992, and the employer
in 1993 commits to invest at least $5,000,000 for the purpose
of resuming operations at that facility, and the employer
rehires during 1993 at least 250 of the individuals employed
by it at that facility during the one year period prior to
the cessation of its operations, provided that, within 30
days after the effective date of this amendatory Act of 1993,
the employer makes application to the Department to have the
provisions of this paragraph apply to it. The immediately
preceding sentence shall be null and void with respect to an
employer which by December 31, 1993 has not satisfied the
rehiring requirement specified by this paragraph or which by
December 31, 1994 has not made the investment specified by
this paragraph. All payments attributable to the fund
building rate established pursuant to this Section with
respect to the fourth quarter of calendar year 2003, the
first quarter of calendar year 2004 and any calendar quarter
thereafter as of the close of which there are either bond
obligations outstanding pursuant to the Illinois Unemployment
Insurance Trust Fund Financing Act, or bond obligations
anticipated to be outstanding as of either or both of the 2
immediately succeeding calendar quarters, shall be directed
for deposit into the Master Bond Fund.
B. Notwithstanding any other provision of this Act, for
the second quarter of 1991, the contribution rate of each
employer as determined in accordance with Sections 1500,
1506.1, and subsection A of this Section shall be equal to
the sum of such rate and 0.1%; provided that this subsection
shall not apply to any employer whose rate computed under
Section 1506.1 for such quarter is between 5.1% and 5.3%,
inclusive, and who qualifies for the 5.4% rate ceiling
imposed by the last paragraph of subsection A for such
quarter. All payments made pursuant to this subsection shall
be deposited in the Employment Security Administrative Fund
established under Section 2103.1 and used for the
administration of this Act.
C. Payments received by the Director which are
insufficient to pay the total contributions due under the Act
shall be first applied to satisfy the amount due pursuant to
subsection B.
C-1. Payments received by the Director with respect to
the fourth quarter of calendar year 2003, the first quarter
of calendar year 2004 and any calendar quarter thereafter as
of the close of which there are either bond obligations
outstanding pursuant to the Illinois Unemployment Insurance
Trust Fund Financing Act, or bond obligations anticipated to
be outstanding as of either or both of the 2 immediately
succeeding calendar quarters, shall, to the extent they are
insufficient to pay the total amount due under the Act with
respect to the quarter, be first applied to satisfy the
amount due with respect to that quarter and attributable to
the fund building rate established pursuant to this Section.
Notwithstanding any other provision to the contrary, with
respect to an employer whose contribution rate with respect
to a quarter subject to this subsection would have exceeded
5.4% but for the 5.4% rate ceiling imposed pursuant to
subsection A, the amount due from the employer with respect
to that quarter and attributable to the fund building rate
established pursuant to subsection A shall equal the amount,
if any, by which the amount due and attributable to the 5.4%
rate exceeds the amount that would have been due and
attributable to the employer's rate determined pursuant to
Sections 1500 and 1506.1, without regard to the fund building
rate established pursuant to subsection A.
D. All provisions of this Act applicable to the
collection or refund of any contribution due under this Act
shall be applicable to the collection or refund of amounts
due pursuant to subsection B and amounts directed pursuant to
this Section for deposit into the Master Bond Fund to the
extent they would not otherwise be considered as
contributions.
(Source: P.A. 91-342, eff. 1-1-00.)
(820 ILCS 405/1507) (from Ch. 48, par. 577)
Sec. 1507. Contribution rates of successor and
predecessor employing units.
A. Whenever any employing unit succeeds to substantially
all of the employing enterprises of another employing unit,
then in determining contribution rates for any calendar year,
the experience rating record of the predecessor prior to the
succession shall be transferred to the successor and
thereafter it shall not be treated as the experience rating
record of the predecessor, except as provided in subsection
B. For the purposes of this Section, such experience rating
record shall consist of all years during which liability for
the payment of contributions was incurred by the predecessor
prior to the succession, all benefit wages based upon wages
paid by the predecessor prior to the succession, all benefit
charges based on separations from, or reductions in work
initiated by, benefits paid by the predecessor prior to the
succession, and all wages for insured work paid by the
predecessor prior to the succession. This amendatory Act of
the 93rd General Assembly is intended to be a continuation of
prior law.
B. The provisions of this subsection shall be applicable
only to the determination of contribution rates for the
calendar year 1956 and for each calendar year thereafter.
Whenever any employing unit has succeeded to substantially
all of the employing enterprises of another employing unit,
but the predecessor employing unit has retained a distinct
severable portion of its employing enterprises or whenever
any employing unit has succeeded to a distinct severable
portion which is less than substantially all of the employing
enterprises of another employing unit, the successor
employing unit shall acquire the experience rating record
attributable to the portion to which it has succeeded, and
the predecessor employing unit shall retain the experience
rating record attributable to the portion which it has
retained, if--
1. It files a written application for such
experience rating record which is joined in by the
employing unit which is then entitled to such experience
rating record; and
2. The joint application contains such information
as the Director shall by regulation prescribe which will
show that such experience rating record is identifiable
and segregable and, therefore, capable of being
transferred; and
3. The joint application is filed prior to
whichever of the following dates is the latest: (a) July
1, 1956; (b) one year after the date of the succession;
or (c) the date that the rate determination of the
employing unit which has applied for such experience
rating record has become final for the calendar year
immediately following the calendar year in which the
succession occurs. The filing of a timely joint
application shall not affect any rate determination which
has become final, as provided by Section 1509.
If all of the foregoing requirements are met, then the
Director shall transfer such experience rating record to the
employing unit which has applied therefor, and it shall not
be treated as the experience rating record of the employing
unit which has joined in the application.
Whenever any employing unit is reorganized into two or
more employing units, and any of such employing units are
owned or controlled by the same interests which owned or
controlled the predecessor prior to the reorganization, and
the provisions of this subsection become applicable thereto,
then such affiliated employing units during the period of
their affiliation shall be treated as a single employing unit
for the purpose of determining their rates of contributions.
C. For the calendar year in which a succession occurs
which results in the total or partial transfer of a
predecessor's experience rating record, the contribution
rates of the parties thereto shall be determined in the
following manner:
1. If any of such parties had a contribution rate
applicable to it for that calendar year, it shall
continue with such contribution rate.
2. If any successor had no contribution rate
applicable to it for that calendar year, and only one
predecessor is involved, then the contribution rate of
the successor shall be the same as that of its
predecessor.
3. If any successor had no contribution rate
applicable to it for that calendar year, and two or more
predecessors are involved, then the contribution rate of
the successor shall be computed, on the combined
experience rating records of the predecessors or on the
appropriate part of such records if any partial transfer
is involved, as provided in Sections 1500 to 1507,
inclusive.
4. Notwithstanding the provisions of paragraphs 2
and 3 of this subsection, if any succession occurs prior
to the calendar year 1956 and the successor acquires part
of the experience rating record of the predecessor as
provided in subsection B of this Section, then the
contribution rate of that successor for the calendar year
in which such succession occurs shall be 2.7 percent.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 1-1-00.)
(820 ILCS 405/1511.1 new)
Sec. 1511.1. Effects of 2004 Solvency Legislation. The
Employment Security Advisory Board shall hold public hearings
on the progress toward meeting the Trust Fund solvency
projections made in accordance with this amendatory Act of
the 93d General Assembly. The hearings shall also consider
issues related to benefit eligibility, benefit levels,
employer contributions, and future trust fund solvency goals.
The Board shall, in accordance with its operating
resolutions, approve and report findings from the hearings to
the Illinois General Assembly by April 1, 2007. A copy of the
findings shall be available to the public on the Department's
website.
(820 ILCS 405/2100) (from Ch. 48, par. 660)
Sec. 2100. Handling of funds - Bond - Accounts.
A. All contributions and payments in lieu of
contributions collected under this Act, including but not
limited to fund building receipts, together with any interest
thereon; all penalties collected pursuant to this Act; any
property or securities acquired through the use thereof; all
moneys advanced to this State's account in the unemployment
trust fund pursuant to the provisions of Title XII of the
Social Security Act, as amended; all moneys directed for
transfer from the Master Bond Fund to this State's account in
the unemployment trust fund received from the federal tax
avoidance surcharge established by Section 1506.4; all moneys
received from the Federal government as reimbursements
pursuant to Section 204 of the Federal-State Extended
Unemployment Compensation Act of 1970, as amended; all moneys
credited to this State's account in the unemployment trust
fund pursuant to Section 903 of the Federal Social Security
Act, as amended; and all earnings of such property or
securities and any interest earned upon any such moneys shall
be paid or turned over to and held by the Director, as
ex-officio custodian of the clearing account, the
unemployment trust fund account and the benefit account, and
by the State Treasurer, as ex-officio custodian of the
special administrative account, separate and apart from all
public moneys or funds of this State, as hereinafter
provided. Such moneys shall be administered by the Director
exclusively for the purposes of this Act.
No such moneys shall be paid or expended except upon the
direction of the Director in accordance with such regulations
as he shall prescribe pursuant to the provisions of this Act.
The State Treasurer shall be liable on his general
official bond for the faithful performance of his duties in
connection with the moneys in the special administrative
account provided for under this Act. Such liability on his
official bond shall exist in addition to the liability upon
any separate bond given by him. All sums recovered for
losses sustained by the account shall be deposited in that
account.
The Director shall be liable on his general official bond
for the faithful performance of his duties in connection with
the moneys in the clearing account, the benefit account and
unemployment trust fund account provided for under this Act.
Such liability on his official bond shall exist in addition
to the liability upon any separate bond given by him. All
sums recovered for losses sustained by any one of the
accounts shall be deposited in the account that sustained
such loss.
The Treasurer shall maintain for such moneys a special
administrative account. The Director shall maintain for
such moneys 3 separate accounts: a clearing account, a
benefit account and an unemployment trust fund account. All
moneys payable under this Act (except moneys requisitioned
from this State's account in the unemployment trust fund and
deposited in the benefit account), including but not limited
to moneys directed for transfer from the Master Bond Fund to
this State's account in the unemployment trust fund, upon
receipt thereof by the Director, shall be immediately
deposited in the clearing account; provided, however, that,
except as is otherwise provided in this Section, interest and
penalties shall not be deemed a part of the clearing account
but shall be transferred immediately upon clearance thereof
to the special administrative account.
After clearance thereof, all other moneys in the clearing
account shall be immediately deposited by the Director with
the Secretary of the Treasury of the United States of America
to the credit of the account of this State in the
unemployment trust fund, established and maintained pursuant
to the Federal Social Security Act, as amended, except fund
building receipts, which shall be deposited into the Master
Bond Fund. The benefit account shall consist of all moneys
requisitioned from this State's account in the unemployment
trust fund. The moneys in the benefit account shall be
expended in accordance with regulations prescribed by the
Director and solely for the payment of benefits, refunds of
contributions, interest and penalties under the provisions of
the Act, the payment of health insurance in accordance with
Section 410 of this Act, and the transfer or payment of funds
to any Federal or State agency pursuant to reciprocal
arrangements entered into by the Director under the
provisions of Section 2700E, except that moneys credited to
this State's account in the unemployment trust fund pursuant
to Section 903 of the Federal Social Security Act, as
amended, shall be used exclusively as provided in subsection
B. For purposes of this Section only, to the extent allowed
by applicable legal requirements, the payment of benefits
includes but is not limited to the payment of principal on
any bonds issued pursuant to the Illinois Unemployment
Insurance Trust Fund Financing Act, exclusive of any interest
or administrative expenses in connection with the bonds. The
Director shall, from time to time, requisition from the
unemployment trust fund such amounts, not exceeding the
amounts standing to the State's account therein, as he deems
necessary solely for the payment of such benefits, refunds,
and funds, for a reasonable future period. The Director, as
ex-officio custodian of the benefit account, which shall be
kept separate and apart from all other public moneys, shall
issue his checks for the payment of such benefits, refunds,
health insurance and funds solely from the moneys so received
into the benefit account. However, after January 1, 1987, no
check shall be drawn on such benefit account unless at the
time of drawing there is sufficient money in the account to
pay the check. The Director shall retain in the clearing
account an amount of interest and penalties equal to the
amount of interest and penalties to be refunded from the
benefit account. After clearance thereof, the amount so
retained shall be immediately deposited by the Director, as
are all other moneys in the clearing account, with the
Secretary of the Treasury of the United States. If, at any
time, an insufficient amount of interest and penalties is
available for retention in the clearing account, no refund of
interest or penalties shall be made from the benefit account
until a sufficient amount is available for retention and is
so retained, or until the State Treasurer, upon the direction
of the Director, transfers to the Director a sufficient
amount from the special administrative account, for immediate
deposit in the benefit account.
Any balance of moneys requisitioned from the unemployment
trust fund which remains unclaimed or unpaid in the benefit
account after the expiration of the period for which such
sums were requisitioned shall either be deducted from
estimates of and may be utilized for authorized expenditures
during succeeding periods, or, in the discretion of the
Director, shall be redeposited with the Secretary of the
Treasury of the United States to the credit of the State's
account in the unemployment trust fund.
Moneys in the clearing, benefit and special
administrative accounts shall not be commingled with other
State funds but they shall be deposited as required by law
and maintained in separate accounts on the books of a savings
and loan association or bank.
No bank or savings and loan association shall receive
public funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as
now or hereafter amended.
B. Moneys credited to the account of this State in the
unemployment trust fund by the Secretary of the Treasury of
the United States pursuant to Section 903 of the Social
Security Act may be requisitioned from this State's account
and used as authorized by Section 903. Any interest required
to be paid on advances under Title XII of the Social Security
Act shall be paid in a timely manner and shall not be paid,
directly or indirectly, by an equivalent reduction in
contributions or payments in lieu of contributions from
amounts in this State's account in the unemployment trust
fund. Such moneys may be requisitioned and used for the
payment of expenses incurred for the administration of this
Act, but only pursuant to a specific appropriation by the
General Assembly and only if the expenses are incurred and
the moneys are requisitioned after the enactment of an
appropriation law which:
1. Specifies the purpose or purposes for which such
moneys are appropriated and the amount or amounts
appropriated therefor;
2. Limits the period within which such moneys may
be obligated to a period ending not more than 2 years
after the date of the enactment of the appropriation law;
and
3. Limits the amount which may be obligated during
any fiscal year to an amount which does not exceed the
amount by which (a) the aggregate of the amounts
transferred to the account of this State pursuant to
Section 903 of the Social Security Act exceeds (b) the
aggregate of the amounts used by this State pursuant to
this Act and charged against the amounts transferred to
the account of this State.
For purposes of paragraph (3) above, amounts obligated
for administrative purposes pursuant to an appropriation
shall be chargeable against transferred amounts at the exact
time the obligation is entered into. The appropriation,
obligation, and expenditure or other disposition of money
appropriated under this subsection shall be accounted for in
accordance with standards established by the United States
Secretary of Labor.
Moneys appropriated as provided herein for the payment of
expenses of administration shall be requisitioned by the
Director as needed for the payment of obligations incurred
under such appropriation. Upon requisition, such moneys shall
be deposited with the State Treasurer, who shall hold such
moneys, as ex-officio custodian thereof, in accordance with
the requirements of Section 2103 and, upon the direction of
the Director, shall make payments therefrom pursuant to such
appropriation. Moneys so deposited shall, until expended,
remain a part of the unemployment trust fund and, if any will
not be expended, shall be returned promptly to the account of
this State in the unemployment trust fund.
C. The Governor is authorized to apply to the United
States Secretary of Labor for an advance or advances to this
State's account in the unemployment trust fund pursuant to
the conditions set forth in Title XII of the Federal Social
Security Act, as amended. The amount of any such advance may
be repaid from this State's account in the unemployment trust
fund provided that if the federal penalty tax avoidance
surcharge established by Section 1506.4 is in effect for that
year, any outstanding advance shall first be repaid from
amounts in this State's account in the unemployment trust
fund which were received from such surcharge by November 9 of
each year.
(Source: P.A. 91-342, eff. 1-1-00.)
(820 ILCS 405/2106.1 new)
Sec. 2106.1. Master Bond Fund. There is hereby
established the Master Bond Fund held by the Director or his
or her designee as ex-officio custodian thereof separate and
apart from all other State funds. The moneys in the Fund
shall be used in accordance with the Illinois Unemployment
Insurance Trust Fund Financing Act.
(820 ILCS 405/1506.4 rep.)
(820 ILCS 405/2104 rep.)
Section 13.4. The Unemployment Insurance Act is amended
by repealing Sections 1506.4 and 2104.
Section 14. Effective Date. This Act takes effect on
January 1, 2004.