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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Public Labor Relations Act is | ||||||
5 | amended by changing Sections 10 and 15 and by adding Section | ||||||
6 | 7.6 as follows: | ||||||
7 | (5 ILCS 315/7.6 new) | ||||||
8 | Sec. 7.6. No collective bargaining or interest arbitration | ||||||
9 | regarding certain changes to the Illinois Pension Code. | ||||||
10 | (a) Notwithstanding any other provision of this Act, | ||||||
11 | employers shall not be required to bargain over matters | ||||||
12 | affected by the changes, the impact of the changes, and the | ||||||
13 | implementation of the changes to Article 14, 15, 16, or 17 of | ||||||
14 | the Illinois Pension Code made by the addition of Section | ||||||
15 | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois | ||||||
16 | Pension Code, which are deemed to be prohibited subjects of | ||||||
17 | bargaining. Notwithstanding any provision of this Act, the | ||||||
18 | changes, impact of the changes, or implementation of the | ||||||
19 | changes to Article 14, 15, 16, or 17 of the Illinois Pension | ||||||
20 | Code made by the addition of Section 14-106.5, 15-132.9, | ||||||
21 | 16-122.9, or 17-115.5 of the Illinois Pension Code shall not be | ||||||
22 | subject to interest arbitration or any award issued pursuant to | ||||||
23 | interest arbitration. The provisions of this Section shall not |
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1 | apply to an employment contract or collective bargaining | ||||||
2 | agreement that is in effect on the effective date of this | ||||||
3 | amendatory Act of the 100th General Assembly. However, any such | ||||||
4 | contract or agreement that is modified, amended, renewed, or | ||||||
5 | superseded after the effective date of this amendatory Act of | ||||||
6 | the 100th General Assembly shall be subject to the provisions | ||||||
7 | of this Section. Each employer with active employees | ||||||
8 | participating in a retirement system or pension fund | ||||||
9 | established under Article 14, 15, 16, or 17 of the Illinois | ||||||
10 | Pension Code shall comply with and be subject to the provisions | ||||||
11 | of this amendatory Act of the 100th General Assembly. The | ||||||
12 | provisions of this Section shall not apply to the ability of | ||||||
13 | any employer and employee representative to bargain | ||||||
14 | collectively with regard to the pick up of employee | ||||||
15 | contributions pursuant to Section 14-133.1, 15-157.1, | ||||||
16 | 16-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code. | ||||||
17 | (b) Subject to and except for the matters set forth in | ||||||
18 | subsection (a) of this Section that are deemed prohibited | ||||||
19 | subjects of bargaining, nothing in this Section shall be | ||||||
20 | construed as otherwise limiting any of the obligations and | ||||||
21 | requirements applicable to employers under any of the | ||||||
22 | provisions of this Act, including, but not limited to, the | ||||||
23 | requirement to bargain collectively with regard to policy | ||||||
24 | matters directly affecting wages, hours, and terms and | ||||||
25 | conditions of employment as well as the impact thereon upon | ||||||
26 | request by employee representatives. Subject to and except for |
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1 | the matters set forth in subsection (a) of this Section that | ||||||
2 | are deemed prohibited subjects of bargaining, nothing in this | ||||||
3 | Section shall be construed as otherwise limiting any of the | ||||||
4 | rights of employees or employee representatives under the | ||||||
5 | provisions of this Act. | ||||||
6 | (c) In case of any conflict between this Section and any | ||||||
7 | other provisions of this Act or any other law, the provisions | ||||||
8 | of this Section shall control.
| ||||||
9 | (5 ILCS 315/10) (from Ch. 48, par. 1610)
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10 | Sec. 10. Unfair labor practices.
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11 | (a) It shall be an unfair labor practice
for an employer or | ||||||
12 | its agents:
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13 | (1) to interfere with, restrain or coerce public | ||||||
14 | employees in the
exercise of the rights guaranteed in this | ||||||
15 | Act or to dominate or interfere
with the formation, | ||||||
16 | existence or administration of any labor organization
or | ||||||
17 | contribute financial or other support to it; provided, an | ||||||
18 | employer shall
not be prohibited from permitting employees | ||||||
19 | to confer with him during
working hours without loss of | ||||||
20 | time or pay;
| ||||||
21 | (2) to discriminate in regard to hire or tenure of | ||||||
22 | employment or any term
or condition of employment in order | ||||||
23 | to encourage or discourage membership
in or other support | ||||||
24 | for any labor organization. Nothing in this Act or any
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25 | other law precludes a public employer from making an |
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1 | agreement with a labor
organization to require as a | ||||||
2 | condition of employment the payment of a fair
share under | ||||||
3 | paragraph (e) of Section 6;
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4 | (3) to discharge or otherwise discriminate against a | ||||||
5 | public employee because
he has signed or filed an | ||||||
6 | affidavit, petition or charge or provided any
information | ||||||
7 | or testimony under this Act;
| ||||||
8 | (4) subject to and except as provided in Section 7.6, | ||||||
9 | to refuse to bargain collectively in good faith with a | ||||||
10 | labor
organization which is the exclusive representative | ||||||
11 | of public employees in
an appropriate unit, including, but | ||||||
12 | not limited to, the discussing of
grievances with the | ||||||
13 | exclusive representative; however, no actions of the | ||||||
14 | employer taken to implement or otherwise comply with the | ||||||
15 | provisions of subsection (a) of Section 7.6 shall | ||||||
16 | constitute or give rise to an unfair labor practice under | ||||||
17 | this Act;
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18 | (5) to violate any of the rules and regulations | ||||||
19 | established by the Board
with jurisdiction over them | ||||||
20 | relating to the conduct of representation elections
or the | ||||||
21 | conduct affecting the representation elections;
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22 | (6) to expend or cause the expenditure of public funds | ||||||
23 | to any external
agent, individual, firm, agency, | ||||||
24 | partnership or association in any attempt
to influence the | ||||||
25 | outcome of representational elections held pursuant to
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26 | Section 9 of this Act; provided, that nothing in this |
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1 | subsection shall be
construed to limit an employer's right | ||||||
2 | to internally communicate with its
employees as provided in | ||||||
3 | subsection (c) of this Section, to be represented
on any | ||||||
4 | matter pertaining to unit determinations, unfair labor | ||||||
5 | practice
charges or pre-election conferences in any formal | ||||||
6 | or informal proceeding
before the Board, or to seek or | ||||||
7 | obtain advice from legal counsel.
Nothing in this paragraph | ||||||
8 | shall be construed to prohibit an employer from
expending | ||||||
9 | or causing the expenditure of public funds on, or seeking | ||||||
10 | or
obtaining services or advice from, any organization, | ||||||
11 | group, or association
established by and including public | ||||||
12 | or educational employers, whether
covered by this Act, the | ||||||
13 | Illinois Educational Labor Relations Act or the
public | ||||||
14 | employment labor relations law of any other state or the | ||||||
15 | federal
government, provided that such services or advice | ||||||
16 | are generally available
to the membership of the | ||||||
17 | organization, group or association, and are not
offered | ||||||
18 | solely in an attempt to influence the outcome of a | ||||||
19 | particular
representational election; or
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20 | (7) to refuse to reduce a collective bargaining | ||||||
21 | agreement to writing
or to refuse to sign such agreement.
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22 | (b) It shall be an unfair labor practice for a labor | ||||||
23 | organization or its agents:
| ||||||
24 | (1) to restrain or coerce public employees in the | ||||||
25 | exercise of the rights
guaranteed in this Act, provided, | ||||||
26 | (i) that this paragraph shall
not impair the right of a |
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1 | labor organization to prescribe its own rules
with respect | ||||||
2 | to the acquisition or retention of membership therein or | ||||||
3 | the
determination of fair share payments and (ii) that a | ||||||
4 | labor organization
or its agents shall commit an unfair | ||||||
5 | labor practice under this paragraph in
duty of fair | ||||||
6 | representation cases only by intentional misconduct in
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7 | representing employees under this Act;
| ||||||
8 | (2) to restrain or coerce a public employer in the | ||||||
9 | selection of his
representatives for the purposes of | ||||||
10 | collective bargaining or the settlement
of grievances; or
| ||||||
11 | (3) to cause, or attempt to cause, an employer to | ||||||
12 | discriminate against
an employee in violation of | ||||||
13 | subsection (a)(2);
| ||||||
14 | (4) to refuse to bargain collectively in good faith | ||||||
15 | with a public employer,
if it has been designated in | ||||||
16 | accordance with the provisions of this Act
as the exclusive | ||||||
17 | representative of public employees in an appropriate unit;
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18 | (5) to violate any of the rules and regulations | ||||||
19 | established by the
boards with jurisdiction over them | ||||||
20 | relating to the conduct of
representation elections or the | ||||||
21 | conduct affecting the representation elections;
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22 | (6) to discriminate against any employee because he has | ||||||
23 | signed or filed
an affidavit, petition or charge or | ||||||
24 | provided any information or testimony
under this Act;
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25 | (7) to picket or cause to be picketed, or threaten to | ||||||
26 | picket or cause
to be picketed, any public employer where |
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1 | an object thereof is forcing or
requiring an employer to | ||||||
2 | recognize or bargain with a labor organization
of the | ||||||
3 | representative of its employees, or forcing or requiring | ||||||
4 | the employees
of an employer to accept or select such labor | ||||||
5 | organization as their collective
bargaining | ||||||
6 | representative, unless such labor organization is | ||||||
7 | currently
certified as the representative of such | ||||||
8 | employees:
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9 | (A) where the employer has lawfully recognized in | ||||||
10 | accordance with this
Act any labor organization and a | ||||||
11 | question concerning representation may
not | ||||||
12 | appropriately be raised under Section 9 of this Act;
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13 | (B) where within the preceding 12 months a valid | ||||||
14 | election under Section
9 of this Act has been | ||||||
15 | conducted; or
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16 | (C) where such picketing has been conducted | ||||||
17 | without a petition under Section
9 being filed within a | ||||||
18 | reasonable period of time not to exceed 30 days from
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19 | the commencement of such picketing; provided that when | ||||||
20 | such a petition has
been filed the Board shall | ||||||
21 | forthwith, without regard to the provisions of
| ||||||
22 | subsection (a) of Section 9 or the absence of a showing | ||||||
23 | of a substantial
interest on the part of the labor | ||||||
24 | organization, direct an election in such
unit as the | ||||||
25 | Board finds to be appropriate and shall certify the | ||||||
26 | results
thereof; provided further, that nothing in |
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1 | this subparagraph shall be construed
to prohibit any | ||||||
2 | picketing or other publicity for the purpose of | ||||||
3 | truthfully
advising the public that an employer does | ||||||
4 | not employ members of, or have a
contract with, a labor | ||||||
5 | organization unless an effect of such picketing is
to | ||||||
6 | induce any individual employed by any other person in | ||||||
7 | the course of his
employment, not to pick up, deliver, | ||||||
8 | or transport any goods or not to
perform any services; | ||||||
9 | or
| ||||||
10 | (8) to refuse to reduce a collective bargaining | ||||||
11 | agreement to writing
or to refuse to sign such agreement.
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12 | (c) The expressing of any views, argument, or opinion or | ||||||
13 | the
dissemination thereof, whether in written, printed, | ||||||
14 | graphic, or visual
form, shall not constitute or be evidence of | ||||||
15 | an unfair labor practice under
any of the provisions of this | ||||||
16 | Act, if such expression contains no threat of
reprisal or force | ||||||
17 | or promise of benefit.
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18 | (Source: P.A. 86-412; 87-736 .)
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19 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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20 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
21 | which has been
held unconstitutional)
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22 | Sec. 15. Act Takes Precedence. | ||||||
23 | (a) In case of any conflict between the
provisions of this | ||||||
24 | Act and any other law (other than Section 5 of the State | ||||||
25 | Employees Group Insurance Act of 1971 and other than the |
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1 | changes made to the Illinois Pension Code by this amendatory | ||||||
2 | Act of the 96th General Assembly), executive order or | ||||||
3 | administrative
regulation relating to wages, hours and | ||||||
4 | conditions of employment and employment
relations, the | ||||||
5 | provisions of this Act or any collective bargaining agreement
| ||||||
6 | negotiated thereunder shall prevail and control.
Nothing in | ||||||
7 | this Act shall be construed to replace or diminish the
rights | ||||||
8 | of employees established by Sections 28 and 28a of the | ||||||
9 | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | ||||||
10 | of the Regional Transportation
Authority Act. The provisions of | ||||||
11 | this Act are subject to Section 5 of the State Employees Group | ||||||
12 | Insurance Act of 1971. Nothing in this Act shall be construed | ||||||
13 | to replace the necessity of complaints against a sworn peace | ||||||
14 | officer, as defined in Section 2(a) of the Uniform Peace | ||||||
15 | Officer Disciplinary Act, from having a complaint supported by | ||||||
16 | a sworn affidavit.
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17 | (b) Except as provided in subsection (a) above, any | ||||||
18 | collective bargaining
contract between a public employer and a | ||||||
19 | labor organization executed pursuant
to this Act shall | ||||||
20 | supersede any contrary statutes, charters, ordinances, rules
| ||||||
21 | or regulations relating to wages, hours and conditions of | ||||||
22 | employment and
employment relations adopted by the public | ||||||
23 | employer or its agents. Any collective
bargaining agreement | ||||||
24 | entered into prior to the effective date of this Act
shall | ||||||
25 | remain in full force during its duration.
| ||||||
26 | (c) It is the public policy of this State, pursuant to |
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| |||||||
1 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
2 | Illinois Constitution, that the
provisions of this Act are the | ||||||
3 | exclusive exercise by the State of powers
and functions which | ||||||
4 | might otherwise be exercised by home rule units. Such
powers | ||||||
5 | and functions may not be exercised concurrently, either | ||||||
6 | directly
or indirectly, by any unit of local government, | ||||||
7 | including any home rule
unit, except as otherwise authorized by | ||||||
8 | this Act. | ||||||
9 | (d) Notwithstanding any other provision of law, no | ||||||
10 | collective bargaining agreement entered into, renewed, or | ||||||
11 | extended after the effective date of this amendatory Act of the | ||||||
12 | 100th General Assembly or any arbitration award issued under | ||||||
13 | such collective bargaining agreement may violate or conflict | ||||||
14 | with the changes made by this amendatory Act of the 100th | ||||||
15 | General Assembly. | ||||||
16 | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .) | ||||||
17 | Section 10. The State Employees Group Insurance Act of 1971 | ||||||
18 | is amended by changing Sections 3 and 10 as follows:
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19 | (5 ILCS 375/3) (from Ch. 127, par. 523)
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20 | Sec. 3. Definitions. Unless the context otherwise | ||||||
21 | requires, the
following words and phrases as used in this Act | ||||||
22 | shall have the following
meanings. The Department may define | ||||||
23 | these and other words and phrases
separately for the purpose of | ||||||
24 | implementing specific programs providing benefits
under this |
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1 | Act.
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2 | (a) "Administrative service organization" means any | ||||||
3 | person, firm or
corporation experienced in the handling of | ||||||
4 | claims which is
fully qualified, financially sound and capable | ||||||
5 | of meeting the service
requirements of a contract of | ||||||
6 | administration executed with the Department.
| ||||||
7 | (b) "Annuitant" means (1) an employee who retires, or has | ||||||
8 | retired,
on or after January 1, 1966 on an immediate annuity | ||||||
9 | under the provisions
of Articles 2, 14 (including an employee | ||||||
10 | who has elected to receive an alternative retirement | ||||||
11 | cancellation payment under Section 14-108.5 of the Illinois | ||||||
12 | Pension Code in lieu of an annuity or who meets the criteria | ||||||
13 | for retirement, but in lieu of receiving an annuity under that | ||||||
14 | Article has elected to receive an accelerated pension benefit | ||||||
15 | payment under Section 14-147.5 of that Article ), 15 (including | ||||||
16 | an employee who has retired under the optional
retirement | ||||||
17 | program established under Section 15-158.2 or who meets the | ||||||
18 | criteria for retirement but in lieu of receiving an annuity | ||||||
19 | under that Article has elected to receive an accelerated | ||||||
20 | pension benefit payment under Section 15-185.5 of the Article ),
| ||||||
21 | paragraphs (2), (3), or (5) of Section 16-106 (including an | ||||||
22 | employee who meets the criteria for retirement, but in lieu of | ||||||
23 | receiving an annuity under that Article has elected to receive | ||||||
24 | an accelerated pension benefit payment under Section 16-190.5 | ||||||
25 | of the Illinois Pension Code) , or
Article 18 of the Illinois | ||||||
26 | Pension Code; (2) any person who was receiving
group insurance |
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1 | coverage under this Act as of March 31, 1978 by
reason of his | ||||||
2 | status as an annuitant, even though the annuity in relation
to | ||||||
3 | which such coverage was provided is a proportional annuity | ||||||
4 | based on less
than the minimum period of service required for a | ||||||
5 | retirement annuity in
the system involved; (3) any person not | ||||||
6 | otherwise covered by this Act
who has retired as a | ||||||
7 | participating member under Article 2 of the Illinois
Pension | ||||||
8 | Code but is ineligible for the retirement annuity under Section
| ||||||
9 | 2-119 of the Illinois Pension Code; (4) the spouse of any | ||||||
10 | person who
is receiving a retirement annuity under Article 18 | ||||||
11 | of the Illinois Pension
Code and who is covered under a group | ||||||
12 | health insurance program sponsored
by a governmental employer | ||||||
13 | other than the State of Illinois and who has
irrevocably | ||||||
14 | elected to waive his or her coverage under this Act and to have
| ||||||
15 | his or her spouse considered as the "annuitant" under this Act | ||||||
16 | and not as
a "dependent"; or (5) an employee who retires, or | ||||||
17 | has retired, from a
qualified position, as determined according | ||||||
18 | to rules promulgated by the
Director, under a qualified local | ||||||
19 | government, a qualified rehabilitation
facility, a qualified | ||||||
20 | domestic violence shelter or service, or a qualified child | ||||||
21 | advocacy center. (For definition
of "retired employee", see (p) | ||||||
22 | post).
| ||||||
23 | (b-5) (Blank).
| ||||||
24 | (b-6) (Blank).
| ||||||
25 | (b-7) (Blank).
| ||||||
26 | (c) "Carrier" means (1) an insurance company, a corporation |
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| |||||||
1 | organized
under the Limited Health Service Organization Act or | ||||||
2 | the Voluntary Health
Services Plan Act, a partnership, or other | ||||||
3 | nongovernmental organization,
which is authorized to do group | ||||||
4 | life or group health insurance business in
Illinois, or (2) the | ||||||
5 | State of Illinois as a self-insurer.
| ||||||
6 | (d) "Compensation" means salary or wages payable on a | ||||||
7 | regular
payroll by the State Treasurer on a warrant of the | ||||||
8 | State Comptroller out
of any State, trust or federal fund, or | ||||||
9 | by the Governor of the State
through a disbursing officer of | ||||||
10 | the State out of a trust or out of
federal funds, or by any | ||||||
11 | Department out of State, trust, federal or
other funds held by | ||||||
12 | the State Treasurer or the Department, to any person
for | ||||||
13 | personal services currently performed, and ordinary or | ||||||
14 | accidental
disability benefits under Articles 2, 14, 15 | ||||||
15 | (including ordinary or accidental
disability benefits under | ||||||
16 | the optional retirement program established under
Section | ||||||
17 | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | ||||||
18 | Article 18 of the Illinois Pension Code, for disability
| ||||||
19 | incurred after January 1, 1966, or benefits payable under the | ||||||
20 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
21 | payable under a sick
pay plan established in accordance with | ||||||
22 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
23 | salary or wages paid to an employee of any
qualified local | ||||||
24 | government, qualified rehabilitation facility,
qualified | ||||||
25 | domestic violence shelter or service, or qualified child | ||||||
26 | advocacy center.
|
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| |||||||
1 | (e) "Commission" means the State Employees Group Insurance | ||||||
2 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
3 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
4 | Government Forecasting and Accountability as
established by | ||||||
5 | the Legislative Commission Reorganization Act of 1984.
| ||||||
6 | (f) "Contributory", when referred to as contributory | ||||||
7 | coverage, shall
mean optional coverages or benefits elected by | ||||||
8 | the member toward the cost of
which such member makes | ||||||
9 | contribution, or which are funded in whole or in part
through | ||||||
10 | the acceptance of a reduction in earnings or the foregoing of | ||||||
11 | an
increase in earnings by an employee, as distinguished from | ||||||
12 | noncontributory
coverage or benefits which are paid entirely by | ||||||
13 | the State of Illinois
without reduction of the member's salary.
| ||||||
14 | (g) "Department" means any department, institution, board,
| ||||||
15 | commission, officer, court or any agency of the State | ||||||
16 | government
receiving appropriations and having power to | ||||||
17 | certify payrolls to the
Comptroller authorizing payments of | ||||||
18 | salary and wages against such
appropriations as are made by the | ||||||
19 | General Assembly from any State fund, or
against trust funds | ||||||
20 | held by the State Treasurer and includes boards of
trustees of | ||||||
21 | the retirement systems created by Articles 2, 14, 15, 16 and
18 | ||||||
22 | of the Illinois Pension Code. "Department" also includes the | ||||||
23 | Illinois
Comprehensive Health Insurance Board, the Board of | ||||||
24 | Examiners established under
the Illinois Public Accounting | ||||||
25 | Act, and the Illinois Finance Authority.
| ||||||
26 | (h) "Dependent", when the term is used in the context of |
| |||||||
| |||||||
1 | the health
and life plan, means a member's spouse and any child | ||||||
2 | (1) from
birth to age 26 including an adopted child, a child | ||||||
3 | who lives with the
member from the time of the filing of a | ||||||
4 | petition for adoption until entry
of an order of adoption, a | ||||||
5 | stepchild or adjudicated child, or a child who lives with the | ||||||
6 | member
if such member is a court appointed guardian of the | ||||||
7 | child or (2)
age 19 or over who has a mental or physical | ||||||
8 | disability from a cause originating prior to the age of 19 (age | ||||||
9 | 26 if enrolled as an adult child dependent). For
the health | ||||||
10 | plan only, the term "dependent" also includes (1) any person
| ||||||
11 | enrolled prior to the effective date of this Section who is | ||||||
12 | dependent upon
the member to the extent that the member may | ||||||
13 | claim such person as a
dependent for income tax deduction | ||||||
14 | purposes and (2) any person who
has received after June 30, | ||||||
15 | 2000 an organ transplant and who is financially
dependent upon | ||||||
16 | the member and eligible to be claimed as a dependent for income
| ||||||
17 | tax purposes. A member requesting to cover any dependent must | ||||||
18 | provide documentation as requested by the Department of Central | ||||||
19 | Management Services and file with the Department any and all | ||||||
20 | forms required by the Department.
| ||||||
21 | (i) "Director" means the Director of the Illinois | ||||||
22 | Department of Central
Management Services.
| ||||||
23 | (j) "Eligibility period" means the period of time a member | ||||||
24 | has to
elect enrollment in programs or to select benefits | ||||||
25 | without regard to
age, sex or health.
| ||||||
26 | (k) "Employee" means and includes each officer or employee |
| |||||||
| |||||||
1 | in the
service of a department who (1) receives his | ||||||
2 | compensation for
service rendered to the department on a | ||||||
3 | warrant issued pursuant to a payroll
certified by a department | ||||||
4 | or on a warrant or check issued and drawn by a
department upon | ||||||
5 | a trust, federal or other fund or on a warrant issued
pursuant | ||||||
6 | to a payroll certified by an elected or duly appointed officer
| ||||||
7 | of the State or who receives payment of the performance of | ||||||
8 | personal
services on a warrant issued pursuant to a payroll | ||||||
9 | certified by a
Department and drawn by the Comptroller upon the | ||||||
10 | State Treasurer against
appropriations made by the General | ||||||
11 | Assembly from any fund or against
trust funds held by the State | ||||||
12 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
13 | position normally requiring actual performance of duty
during | ||||||
14 | not less than 1/2 of a normal work period, as established by | ||||||
15 | the
Director in cooperation with each department, except that | ||||||
16 | persons elected
by popular vote will be considered employees | ||||||
17 | during the entire
term for which they are elected regardless of | ||||||
18 | hours devoted to the
service of the State, and (3) except that | ||||||
19 | "employee" does not include any
person who is not eligible by | ||||||
20 | reason of such person's employment to
participate in one of the | ||||||
21 | State retirement systems under Articles 2, 14, 15
(either the | ||||||
22 | regular Article 15 system or the optional retirement program
| ||||||
23 | established under Section 15-158.2) or 18, or under paragraph | ||||||
24 | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | ||||||
25 | Code, but such term does include persons who are employed | ||||||
26 | during
the 6 month qualifying period under Article 14 of the |
| |||||||
| |||||||
1 | Illinois Pension
Code. Such term also includes any person who | ||||||
2 | (1) after January 1, 1966,
is receiving ordinary or accidental | ||||||
3 | disability benefits under Articles
2, 14, 15 (including | ||||||
4 | ordinary or accidental disability benefits under the
optional | ||||||
5 | retirement program established under Section 15-158.2), | ||||||
6 | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | ||||||
7 | the
Illinois Pension Code, for disability incurred after | ||||||
8 | January 1, 1966, (2)
receives total permanent or total | ||||||
9 | temporary disability under the Workers'
Compensation Act or | ||||||
10 | Occupational Disease Act as a result of injuries
sustained or | ||||||
11 | illness contracted in the course of employment with the
State | ||||||
12 | of Illinois, or (3) is not otherwise covered under this Act and | ||||||
13 | has
retired as a participating member under Article 2 of the | ||||||
14 | Illinois Pension
Code but is ineligible for the retirement | ||||||
15 | annuity under Section 2-119 of
the Illinois Pension Code. | ||||||
16 | However, a person who satisfies the criteria
of the foregoing | ||||||
17 | definition of "employee" except that such person is made
| ||||||
18 | ineligible to participate in the State Universities Retirement | ||||||
19 | System by
clause (4) of subsection (a) of Section 15-107 of the | ||||||
20 | Illinois Pension
Code is also an "employee" for the purposes of | ||||||
21 | this Act. "Employee" also
includes any person receiving or | ||||||
22 | eligible for benefits under a sick pay
plan established in | ||||||
23 | accordance with Section 36 of the State Finance Act.
"Employee" | ||||||
24 | also includes (i) each officer or employee in the service of a
| ||||||
25 | qualified local government, including persons appointed as | ||||||
26 | trustees of
sanitary districts regardless of hours devoted to |
| |||||||
| |||||||
1 | the service of the
sanitary district, (ii) each employee in the | ||||||
2 | service of a qualified
rehabilitation facility, (iii) each | ||||||
3 | full-time employee in the service of a
qualified domestic | ||||||
4 | violence shelter or service, and (iv) each full-time employee | ||||||
5 | in the service of a qualified child advocacy center, as | ||||||
6 | determined according to
rules promulgated by the Director.
| ||||||
7 | (l) "Member" means an employee, annuitant, retired | ||||||
8 | employee or survivor. In the case of an annuitant or retired | ||||||
9 | employee who first becomes an annuitant or retired employee on | ||||||
10 | or after the effective date of this amendatory Act of the 97th | ||||||
11 | General Assembly, the individual must meet the minimum vesting | ||||||
12 | requirements of the applicable retirement system in order to be | ||||||
13 | eligible for group insurance benefits under that system. In the | ||||||
14 | case of a survivor who first becomes a survivor on or after the | ||||||
15 | effective date of this amendatory Act of the 97th General | ||||||
16 | Assembly, the deceased employee, annuitant, or retired | ||||||
17 | employee upon whom the annuity is based must have been eligible | ||||||
18 | to participate in the group insurance system under the | ||||||
19 | applicable retirement system in order for the survivor to be | ||||||
20 | eligible for group insurance benefits under that system.
| ||||||
21 | (m) "Optional coverages or benefits" means those coverages | ||||||
22 | or
benefits available to the member on his or her voluntary | ||||||
23 | election, and at
his or her own expense.
| ||||||
24 | (n) "Program" means the group life insurance, health | ||||||
25 | benefits and other
employee benefits designed and contracted | ||||||
26 | for by the Director under this Act.
|
| |||||||
| |||||||
1 | (o) "Health plan" means a health benefits
program offered
| ||||||
2 | by the State of Illinois for persons eligible for the plan.
| ||||||
3 | (p) "Retired employee" means any person who would be an | ||||||
4 | annuitant as
that term is defined herein but for the fact that | ||||||
5 | such person retired prior to
January 1, 1966. Such term also | ||||||
6 | includes any person formerly employed by
the University of | ||||||
7 | Illinois in the Cooperative Extension Service who would
be an | ||||||
8 | annuitant but for the fact that such person was made ineligible | ||||||
9 | to
participate in the State Universities Retirement System by | ||||||
10 | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| ||||||
11 | Pension Code.
| ||||||
12 | (q) "Survivor" means a person receiving an annuity as a | ||||||
13 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
14 | includes: (1) the surviving
dependent of a person who satisfies | ||||||
15 | the definition of "employee" except that
such person is made | ||||||
16 | ineligible to participate in the State Universities
Retirement | ||||||
17 | System by clause (4) of subsection (a)
of Section 15-107 of the | ||||||
18 | Illinois Pension Code; (2) the surviving
dependent of any | ||||||
19 | person formerly employed by the University of Illinois in
the | ||||||
20 | Cooperative Extension Service who would be an annuitant except | ||||||
21 | for the
fact that such person was made ineligible to | ||||||
22 | participate in the State
Universities Retirement System by | ||||||
23 | clause (4) of subsection (a) of Section
15-107 of the Illinois | ||||||
24 | Pension Code; and (3) the surviving dependent of a person who | ||||||
25 | was an annuitant under this Act by virtue of receiving an | ||||||
26 | alternative retirement cancellation payment under Section |
| |||||||
| |||||||
1 | 14-108.5 of the Illinois Pension Code.
| ||||||
2 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
3 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
4 | Code.
| ||||||
5 | (q-3) "SURS" means the State Universities Retirement | ||||||
6 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
7 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
8 | State of Illinois, created under Article 16 of the Illinois | ||||||
9 | Pension Code.
| ||||||
10 | (q-5) (Blank).
| ||||||
11 | (q-6) (Blank).
| ||||||
12 | (q-7) (Blank).
| ||||||
13 | (r) "Medical services" means the services provided within | ||||||
14 | the scope
of their licenses by practitioners in all categories | ||||||
15 | licensed under the
Medical Practice Act of 1987.
| ||||||
16 | (s) "Unit of local government" means any county, | ||||||
17 | municipality,
township, school district (including a | ||||||
18 | combination of school districts under
the Intergovernmental | ||||||
19 | Cooperation Act), special district or other unit,
designated as | ||||||
20 | a
unit of local government by law, which exercises limited | ||||||
21 | governmental
powers or powers in respect to limited | ||||||
22 | governmental subjects, any
not-for-profit association with a | ||||||
23 | membership that primarily includes
townships and township | ||||||
24 | officials, that has duties that include provision of
research | ||||||
25 | service, dissemination of information, and other acts for the
| ||||||
26 | purpose of improving township government, and that is funded |
| |||||||
| |||||||
1 | wholly or
partly in accordance with Section 85-15 of the | ||||||
2 | Township Code; any
not-for-profit corporation or association, | ||||||
3 | with a membership consisting
primarily of municipalities, that | ||||||
4 | operates its own utility system, and
provides research, | ||||||
5 | training, dissemination of information, or other acts to
| ||||||
6 | promote cooperation between and among municipalities that | ||||||
7 | provide utility
services and for the advancement of the goals | ||||||
8 | and purposes of its
membership;
the Southern Illinois | ||||||
9 | Collegiate Common Market, which is a consortium of higher
| ||||||
10 | education institutions in Southern Illinois; the Illinois | ||||||
11 | Association of
Park Districts; and any hospital provider that | ||||||
12 | is owned by a county that has 100 or fewer hospital beds and | ||||||
13 | has not already joined the program. "Qualified
local | ||||||
14 | government" means a unit of local government approved by the | ||||||
15 | Director and
participating in a program created under | ||||||
16 | subsection (i) of Section 10 of this
Act.
| ||||||
17 | (t) "Qualified rehabilitation facility" means any | ||||||
18 | not-for-profit
organization that is accredited by the | ||||||
19 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
20 | certified by the Department
of Human Services (as successor to | ||||||
21 | the Department of Mental Health
and Developmental | ||||||
22 | Disabilities) to provide services to persons with
disabilities
| ||||||
23 | and which receives funds from the State of Illinois for | ||||||
24 | providing those
services, approved by the Director and | ||||||
25 | participating in a program created
under subsection (j) of | ||||||
26 | Section 10 of this Act.
|
| |||||||
| |||||||
1 | (u) "Qualified domestic violence shelter or service" means | ||||||
2 | any Illinois
domestic violence shelter or service and its | ||||||
3 | administrative offices funded
by the Department of Human | ||||||
4 | Services (as successor to the Illinois Department of
Public | ||||||
5 | Aid),
approved by the Director and
participating in a program | ||||||
6 | created under subsection (k) of Section 10.
| ||||||
7 | (v) "TRS benefit recipient" means a person who:
| ||||||
8 | (1) is not a "member" as defined in this Section; and
| ||||||
9 | (2) is receiving a monthly benefit or retirement | ||||||
10 | annuity
under Article 16 of the Illinois Pension Code; and
| ||||||
11 | (3) either (i) has at least 8 years of creditable | ||||||
12 | service under Article
16 of the Illinois Pension Code, or | ||||||
13 | (ii) was enrolled in the health insurance
program offered | ||||||
14 | under that Article on January 1, 1996, or (iii) is the | ||||||
15 | survivor
of a benefit recipient who had at least 8
years of | ||||||
16 | creditable service under Article 16 of the Illinois Pension | ||||||
17 | Code or
was enrolled in the health insurance program | ||||||
18 | offered under that Article on
the effective date of this | ||||||
19 | amendatory Act of 1995, or (iv) is a recipient or
survivor | ||||||
20 | of a recipient of a disability benefit under Article 16 of | ||||||
21 | the
Illinois Pension Code.
| ||||||
22 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
23 | (1) is not a "member" or "dependent" as defined in this | ||||||
24 | Section; and
| ||||||
25 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
26 | dependent parent who
is receiving at least half of his or |
| |||||||
| |||||||
1 | her support from the TRS benefit
recipient, or (C) natural, | ||||||
2 | step, adjudicated, or adopted child who is (i) under age | ||||||
3 | 26, (ii) was, on January 1, 1996, participating as a | ||||||
4 | dependent
beneficiary in the health insurance program | ||||||
5 | offered under Article 16 of the
Illinois Pension Code, or | ||||||
6 | (iii) age 19 or over who has a mental or physical | ||||||
7 | disability from a cause originating prior to the age of 19 | ||||||
8 | (age 26 if enrolled as an adult child).
| ||||||
9 | "TRS dependent beneficiary" does not include, as indicated | ||||||
10 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
11 | survivor of a TRS benefit recipient who first becomes a | ||||||
12 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
13 | the effective date of this amendatory Act of the 97th General | ||||||
14 | Assembly unless that dependent would have been eligible for | ||||||
15 | coverage as a dependent of the deceased TRS benefit recipient | ||||||
16 | upon whom the survivor benefit is based. | ||||||
17 | (x) "Military leave" refers to individuals in basic
| ||||||
18 | training for reserves, special/advanced training, annual | ||||||
19 | training, emergency
call up, activation by the President of the | ||||||
20 | United States, or any other training or duty in service to the | ||||||
21 | United States Armed Forces.
| ||||||
22 | (y) (Blank).
| ||||||
23 | (z) "Community college benefit recipient" means a person | ||||||
24 | who:
| ||||||
25 | (1) is not a "member" as defined in this Section; and
| ||||||
26 | (2) is receiving a monthly survivor's annuity or |
| |||||||
| |||||||
1 | retirement annuity
under Article 15 of the Illinois Pension | ||||||
2 | Code; and
| ||||||
3 | (3) either (i) was a full-time employee of a community | ||||||
4 | college district or
an association of community college | ||||||
5 | boards created under the Public Community
College Act | ||||||
6 | (other than an employee whose last employer under Article | ||||||
7 | 15 of the
Illinois Pension Code was a community college | ||||||
8 | district subject to Article VII
of the Public Community | ||||||
9 | College Act) and was eligible to participate in a group
| ||||||
10 | health benefit plan as an employee during the time of | ||||||
11 | employment with a
community college district (other than a | ||||||
12 | community college district subject to
Article VII of the | ||||||
13 | Public Community College Act) or an association of | ||||||
14 | community
college boards, or (ii) is the survivor of a | ||||||
15 | person described in item (i).
| ||||||
16 | (aa) "Community college dependent beneficiary" means a | ||||||
17 | person who:
| ||||||
18 | (1) is not a "member" or "dependent" as defined in this | ||||||
19 | Section; and
| ||||||
20 | (2) is a community college benefit recipient's: (A) | ||||||
21 | spouse, (B) dependent
parent who is receiving at least half | ||||||
22 | of his or her support from the community
college benefit | ||||||
23 | recipient, or (C) natural, step, adjudicated, or adopted | ||||||
24 | child who is (i)
under age 26, or (ii)
age 19 or over and | ||||||
25 | has a mental or physical disability from a cause | ||||||
26 | originating prior to the age of 19 (age 26 if enrolled as |
| |||||||
| |||||||
1 | an adult child).
| ||||||
2 | "Community college dependent beneficiary" does not | ||||||
3 | include, as indicated under paragraph (2) of this subsection | ||||||
4 | (aa), a dependent of the survivor of a community college | ||||||
5 | benefit recipient who first becomes a dependent of a survivor | ||||||
6 | of a community college benefit recipient on or after the | ||||||
7 | effective date of this amendatory Act of the 97th General | ||||||
8 | Assembly unless that dependent would have been eligible for | ||||||
9 | coverage as a dependent of the deceased community college | ||||||
10 | benefit recipient upon whom the survivor annuity is based. | ||||||
11 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
12 | child advocacy center and its administrative offices funded by | ||||||
13 | the Department of Children and Family Services, as defined by | ||||||
14 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
15 | the Director and participating in a program created under | ||||||
16 | subsection (n) of Section 10.
| ||||||
17 | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
| ||||||
18 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
19 | Sec. 10. Contributions by the State and members.
| ||||||
20 | (a) The State shall pay the cost of basic non-contributory | ||||||
21 | group life
insurance and, subject to member paid contributions | ||||||
22 | set by the Department or
required by this Section and except as | ||||||
23 | provided in this Section, the basic program of group health | ||||||
24 | benefits on each
eligible member, except a member, not | ||||||
25 | otherwise
covered by this Act, who has retired as a |
| |||||||
| |||||||
1 | participating member under Article 2
of the Illinois Pension | ||||||
2 | Code but is ineligible for the retirement annuity under
Section | ||||||
3 | 2-119 of the Illinois Pension Code, and part of each eligible | ||||||
4 | member's
and retired member's premiums for health insurance | ||||||
5 | coverage for enrolled
dependents as provided by Section 9. The | ||||||
6 | State shall pay the cost of the basic
program of group health | ||||||
7 | benefits only after benefits are reduced by the amount
of | ||||||
8 | benefits covered by Medicare for all members and dependents
who | ||||||
9 | are eligible for benefits under Social Security or
the Railroad | ||||||
10 | Retirement system or who had sufficient Medicare-covered
| ||||||
11 | government employment, except that such reduction in benefits | ||||||
12 | shall apply only
to those members and dependents who (1) first | ||||||
13 | become eligible
for such Medicare coverage on or after July 1, | ||||||
14 | 1992; or (2) are
Medicare-eligible members or dependents of a | ||||||
15 | local government unit which began
participation in the program | ||||||
16 | on or after July 1, 1992; or (3) remain eligible
for, but no | ||||||
17 | longer receive Medicare coverage which they had been receiving | ||||||
18 | on
or after July 1, 1992. The Department may determine the | ||||||
19 | aggregate level of the
State's contribution on the basis of | ||||||
20 | actual cost of medical services adjusted
for age, sex or | ||||||
21 | geographic or other demographic characteristics which affect
| ||||||
22 | the costs of such programs.
| ||||||
23 | The cost of participation in the basic program of group | ||||||
24 | health benefits
for the dependent or survivor of a living or | ||||||
25 | deceased retired employee who was
formerly employed by the | ||||||
26 | University of Illinois in the Cooperative Extension
Service and |
| |||||||
| |||||||
1 | would be an annuitant but for the fact that he or she was made
| ||||||
2 | ineligible to participate in the State Universities Retirement | ||||||
3 | System by clause
(4) of subsection (a) of Section 15-107 of the | ||||||
4 | Illinois Pension Code shall not
be greater than the cost of | ||||||
5 | participation that would otherwise apply to that
dependent or | ||||||
6 | survivor if he or she were the dependent or survivor of an
| ||||||
7 | annuitant under the State Universities Retirement System.
| ||||||
8 | (a-1) (Blank).
| ||||||
9 | (a-2) (Blank).
| ||||||
10 | (a-3) (Blank).
| ||||||
11 | (a-4) (Blank).
| ||||||
12 | (a-5) (Blank).
| ||||||
13 | (a-6) (Blank).
| ||||||
14 | (a-7) (Blank).
| ||||||
15 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
16 | waive or terminate coverage in
the program of group health | ||||||
17 | benefits. Any such annuitant, survivor, or retired employee
who | ||||||
18 | has waived or terminated coverage may enroll or re-enroll in | ||||||
19 | the
program of group health benefits only during the annual | ||||||
20 | benefit choice period,
as determined by the Director; except | ||||||
21 | that in the event of termination of
coverage due to nonpayment | ||||||
22 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
23 | not re-enroll in the program.
| ||||||
24 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
25 | Act of the 97th General Assembly, the Director of Central | ||||||
26 | Management Services shall, on an annual basis, determine the |
| |||||||
| |||||||
1 | amount that the State shall contribute toward the basic program | ||||||
2 | of group health benefits on behalf of annuitants (including | ||||||
3 | individuals who (i) participated in the General Assembly | ||||||
4 | Retirement System, the State Employees' Retirement System of | ||||||
5 | Illinois, the State Universities Retirement System, the | ||||||
6 | Teachers' Retirement System of the State of Illinois, or the | ||||||
7 | Judges Retirement System of Illinois and (ii) qualify as | ||||||
8 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
9 | survivors (including individuals who (i) receive an annuity as | ||||||
10 | a survivor of an individual who participated in the General | ||||||
11 | Assembly Retirement System, the State Employees' Retirement | ||||||
12 | System of Illinois, the State Universities Retirement System, | ||||||
13 | the Teachers' Retirement System of the State of Illinois, or | ||||||
14 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
15 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
16 | retired employees (as defined in subsection (p) of Section 3 of | ||||||
17 | this Act). The remainder of the cost of coverage for each | ||||||
18 | annuitant, survivor, or retired employee, as determined by the | ||||||
19 | Director of Central Management Services, shall be the | ||||||
20 | responsibility of that annuitant, survivor, or retired | ||||||
21 | employee. | ||||||
22 | Contributions required of annuitants, survivors, and | ||||||
23 | retired employees shall be the same for all retirement systems | ||||||
24 | and shall also be based on whether an individual has made an | ||||||
25 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
26 | Contributions may be based on annuitants', survivors', or |
| |||||||
| |||||||
1 | retired employees' Medicare eligibility, but may not be based | ||||||
2 | on Social Security eligibility. | ||||||
3 | (a-9) No later than May 1 of each calendar year, the | ||||||
4 | Director
of Central Management Services shall certify in | ||||||
5 | writing to the Executive
Secretary of the State Employees' | ||||||
6 | Retirement System of Illinois the amounts
of the Medicare | ||||||
7 | supplement health care premiums and the amounts of the
health | ||||||
8 | care premiums for all other retirees who are not Medicare | ||||||
9 | eligible.
| ||||||
10 | A separate calculation of the premiums based upon the | ||||||
11 | actual cost of each
health care plan shall be so certified.
| ||||||
12 | The Director of Central Management Services shall provide | ||||||
13 | to the
Executive Secretary of the State Employees' Retirement | ||||||
14 | System of
Illinois such information, statistics, and other data | ||||||
15 | as he or she
may require to review the premium amounts | ||||||
16 | certified by the Director
of Central Management Services.
| ||||||
17 | The Department of Central Management Services, or any | ||||||
18 | successor agency designated to procure healthcare contracts | ||||||
19 | pursuant to this Act, is authorized to establish funds, | ||||||
20 | separate accounts provided by any bank or banks as defined by | ||||||
21 | the Illinois Banking Act, or separate accounts provided by any | ||||||
22 | savings and loan association or associations as defined by the | ||||||
23 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
24 | Director, outside the State treasury, for the purpose of | ||||||
25 | receiving the transfer of moneys from the Local Government | ||||||
26 | Health Insurance Reserve Fund. The Department may promulgate |
| |||||||
| |||||||
1 | rules further defining the methodology for the transfers. Any | ||||||
2 | interest earned by moneys in the funds or accounts shall inure | ||||||
3 | to the Local Government Health Insurance Reserve Fund. The | ||||||
4 | transferred moneys, and interest accrued thereon, shall be used | ||||||
5 | exclusively for transfers to administrative service | ||||||
6 | organizations or their financial institutions for payments of | ||||||
7 | claims to claimants and providers under the self-insurance | ||||||
8 | health plan. The transferred moneys, and interest accrued | ||||||
9 | thereon, shall not be used for any other purpose including, but | ||||||
10 | not limited to, reimbursement of administration fees due the | ||||||
11 | administrative service organization pursuant to its contract | ||||||
12 | or contracts with the Department.
| ||||||
13 | (a-10) To the extent that participation, benefits, or | ||||||
14 | premiums under this Act are based on a person's service credit | ||||||
15 | under an Article of the Illinois Pension Code, service credit | ||||||
16 | terminated in exchange for an accelerated pension benefit | ||||||
17 | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that | ||||||
18 | Code shall be included in determining a person's service credit | ||||||
19 | for the purposes of this Act. | ||||||
20 | (b) State employees who become eligible for this program on | ||||||
21 | or after January
1, 1980 in positions normally requiring actual | ||||||
22 | performance of duty not less
than 1/2 of a normal work period | ||||||
23 | but not equal to that of a normal work period,
shall be given | ||||||
24 | the option of participating in the available program. If the
| ||||||
25 | employee elects coverage, the State shall contribute on behalf | ||||||
26 | of such employee
to the cost of the employee's benefit and any |
| |||||||
| |||||||
1 | applicable dependent supplement,
that sum which bears the same | ||||||
2 | percentage as that percentage of time the
employee regularly | ||||||
3 | works when compared to normal work period.
| ||||||
4 | (c) The basic non-contributory coverage from the basic | ||||||
5 | program of
group health benefits shall be continued for each | ||||||
6 | employee not in pay status or
on active service by reason of | ||||||
7 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
8 | educational leave of absence or sabbatical leave, or (3)
| ||||||
9 | military leave. This coverage shall continue until
expiration | ||||||
10 | of authorized leave and return to active service, but not to | ||||||
11 | exceed
24 months for leaves under item (1) or (2). This | ||||||
12 | 24-month limitation and the
requirement of returning to active | ||||||
13 | service shall not apply to persons receiving
ordinary or | ||||||
14 | accidental disability benefits or retirement benefits through | ||||||
15 | the
appropriate State retirement system or benefits under the | ||||||
16 | Workers' Compensation
or Occupational Disease Act.
| ||||||
17 | (d) The basic group life insurance coverage shall continue, | ||||||
18 | with
full State contribution, where such person is (1) absent | ||||||
19 | from active
service by reason of disability arising from any | ||||||
20 | cause other than
self-inflicted, (2) on authorized educational | ||||||
21 | leave of absence or
sabbatical leave, or (3) on military leave.
| ||||||
22 | (e) Where the person is in non-pay status for a period in | ||||||
23 | excess of
30 days or on leave of absence, other than by reason | ||||||
24 | of disability,
educational or sabbatical leave, or military | ||||||
25 | leave, such
person may continue coverage only by making | ||||||
26 | personal
payment equal to the amount normally contributed by |
| |||||||
| |||||||
1 | the State on such person's
behalf. Such payments and coverage | ||||||
2 | may be continued: (1) until such time as
the person returns to | ||||||
3 | a status eligible for coverage at State expense, but not
to | ||||||
4 | exceed 24 months or (2) until such person's employment or | ||||||
5 | annuitant status
with the State is terminated (exclusive of any | ||||||
6 | additional service imposed pursuant to law).
| ||||||
7 | (f) The Department shall establish by rule the extent to | ||||||
8 | which other
employee benefits will continue for persons in | ||||||
9 | non-pay status or who are
not in active service.
| ||||||
10 | (g) The State shall not pay the cost of the basic | ||||||
11 | non-contributory
group life insurance, program of health | ||||||
12 | benefits and other employee benefits
for members who are | ||||||
13 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
14 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
15 | survivors shall be paid by the survivors or by the University | ||||||
16 | of Illinois
Cooperative Extension Service, or any combination | ||||||
17 | thereof.
However, the State shall pay the amount of the | ||||||
18 | reduction in the cost of
participation, if any, resulting from | ||||||
19 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
20 | the 91st General Assembly.
| ||||||
21 | (h) Those persons occupying positions with any department | ||||||
22 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
23 | of the Personnel Code
who are not considered employees under | ||||||
24 | this Act shall be given the option
of participating in the | ||||||
25 | programs of group life insurance, health benefits and
other | ||||||
26 | employee benefits. Such persons electing coverage may |
| |||||||
| |||||||
1 | participate only
by making payment equal to the amount normally | ||||||
2 | contributed by the State for
similarly situated employees. Such | ||||||
3 | amounts shall be determined by the
Director. Such payments and | ||||||
4 | coverage may be continued until such time as the
person becomes | ||||||
5 | an employee pursuant to this Act or such person's appointment | ||||||
6 | is
terminated.
| ||||||
7 | (i) Any unit of local government within the State of | ||||||
8 | Illinois
may apply to the Director to have its employees, | ||||||
9 | annuitants, and their
dependents provided group health | ||||||
10 | coverage under this Act on a non-insured
basis. To participate, | ||||||
11 | a unit of local government must agree to enroll
all of its | ||||||
12 | employees, who may select coverage under either the State group
| ||||||
13 | health benefits plan or a health maintenance organization that | ||||||
14 | has
contracted with the State to be available as a health care | ||||||
15 | provider for
employees as defined in this Act. A unit of local | ||||||
16 | government must remit the
entire cost of providing coverage | ||||||
17 | under the State group health benefits plan
or, for coverage | ||||||
18 | under a health maintenance organization, an amount determined
| ||||||
19 | by the Director based on an analysis of the sex, age, | ||||||
20 | geographic location, or
other relevant demographic variables | ||||||
21 | for its employees, except that the unit of
local government | ||||||
22 | shall not be required to enroll those of its employees who are
| ||||||
23 | covered spouses or dependents under this plan or another group | ||||||
24 | policy or plan
providing health benefits as long as (1) an | ||||||
25 | appropriate official from the unit
of local government attests | ||||||
26 | that each employee not enrolled is a covered spouse
or |
| |||||||
| |||||||
1 | dependent under this plan or another group policy or plan, and | ||||||
2 | (2) at least
50% of the employees are enrolled and the unit of | ||||||
3 | local government remits
the entire cost of providing coverage | ||||||
4 | to those employees, except that a
participating school district | ||||||
5 | must have enrolled at least 50% of its full-time
employees who | ||||||
6 | have not waived coverage under the district's group health
plan | ||||||
7 | by participating in a component of the district's cafeteria | ||||||
8 | plan. A
participating school district is not required to enroll | ||||||
9 | a full-time employee
who has waived coverage under the | ||||||
10 | district's health plan, provided that an
appropriate official | ||||||
11 | from the participating school district attests that the
| ||||||
12 | full-time employee has waived coverage by participating in a | ||||||
13 | component of the
district's cafeteria plan. For the purposes of | ||||||
14 | this subsection, "participating
school district" includes a | ||||||
15 | unit of local government whose primary purpose is
education as | ||||||
16 | defined by the Department's rules.
| ||||||
17 | Employees of a participating unit of local government who | ||||||
18 | are not enrolled
due to coverage under another group health | ||||||
19 | policy or plan may enroll in
the event of a qualifying change | ||||||
20 | in status, special enrollment, special
circumstance as defined | ||||||
21 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
22 | participating unit of local government may also elect to cover | ||||||
23 | its
annuitants. Dependent coverage shall be offered on an | ||||||
24 | optional basis, with the
costs paid by the unit of local | ||||||
25 | government, its employees, or some combination
of the two as | ||||||
26 | determined by the unit of local government. The unit of local
|
| |||||||
| |||||||
1 | government shall be responsible for timely collection and | ||||||
2 | transmission of
dependent premiums.
| ||||||
3 | The Director shall annually determine monthly rates of | ||||||
4 | payment, subject
to the following constraints:
| ||||||
5 | (1) In the first year of coverage, the rates shall be | ||||||
6 | equal to the
amount normally charged to State employees for | ||||||
7 | elected optional coverages
or for enrolled dependents | ||||||
8 | coverages or other contributory coverages, or
contributed | ||||||
9 | by the State for basic insurance coverages on behalf of its
| ||||||
10 | employees, adjusted for differences between State | ||||||
11 | employees and employees
of the local government in age, | ||||||
12 | sex, geographic location or other relevant
demographic | ||||||
13 | variables, plus an amount sufficient to pay for the | ||||||
14 | additional
administrative costs of providing coverage to | ||||||
15 | employees of the unit of
local government and their | ||||||
16 | dependents.
| ||||||
17 | (2) In subsequent years, a further adjustment shall be | ||||||
18 | made to reflect
the actual prior years' claims experience | ||||||
19 | of the employees of the unit of
local government.
| ||||||
20 | In the case of coverage of local government employees under | ||||||
21 | a health
maintenance organization, the Director shall annually | ||||||
22 | determine for each
participating unit of local government the | ||||||
23 | maximum monthly amount the unit
may contribute toward that | ||||||
24 | coverage, based on an analysis of (i) the age,
sex, geographic | ||||||
25 | location, and other relevant demographic variables of the
| ||||||
26 | unit's employees and (ii) the cost to cover those employees |
| |||||||
| |||||||
1 | under the State
group health benefits plan. The Director may | ||||||
2 | similarly determine the
maximum monthly amount each unit of | ||||||
3 | local government may contribute toward
coverage of its | ||||||
4 | employees' dependents under a health maintenance organization.
| ||||||
5 | Monthly payments by the unit of local government or its | ||||||
6 | employees for
group health benefits plan or health maintenance | ||||||
7 | organization coverage shall
be deposited in the Local | ||||||
8 | Government Health Insurance Reserve Fund.
| ||||||
9 | The Local Government Health Insurance Reserve Fund is | ||||||
10 | hereby created as a nonappropriated trust fund to be held | ||||||
11 | outside the State Treasury, with the State Treasurer as | ||||||
12 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
13 | shall be a continuing
fund not subject to fiscal year | ||||||
14 | limitations. The Local Government Health Insurance Reserve | ||||||
15 | Fund is not subject to administrative charges or charge-backs, | ||||||
16 | including but not limited to those authorized under Section 8h | ||||||
17 | of the State Finance Act. All revenues arising from the | ||||||
18 | administration of the health benefits program established | ||||||
19 | under this Section shall be deposited into the Local Government | ||||||
20 | Health Insurance Reserve Fund. Any interest earned on moneys in | ||||||
21 | the Local Government Health Insurance Reserve Fund shall be | ||||||
22 | deposited into the Fund. All expenditures from this Fund
shall | ||||||
23 | be used for payments for health care benefits for local | ||||||
24 | government and rehabilitation facility
employees, annuitants, | ||||||
25 | and dependents, and to reimburse the Department or
its | ||||||
26 | administrative service organization for all expenses incurred |
| |||||||
| |||||||
1 | in the
administration of benefits. No other State funds may be | ||||||
2 | used for these
purposes.
| ||||||
3 | A local government employer's participation or desire to | ||||||
4 | participate
in a program created under this subsection shall | ||||||
5 | not limit that employer's
duty to bargain with the | ||||||
6 | representative of any collective bargaining unit
of its | ||||||
7 | employees.
| ||||||
8 | (j) Any rehabilitation facility within the State of | ||||||
9 | Illinois may apply
to the Director to have its employees, | ||||||
10 | annuitants, and their eligible
dependents provided group | ||||||
11 | health coverage under this Act on a non-insured
basis. To | ||||||
12 | participate, a rehabilitation facility must agree to enroll all
| ||||||
13 | of its employees and remit the entire cost of providing such | ||||||
14 | coverage for
its employees, except that the rehabilitation | ||||||
15 | facility shall not be
required to enroll those of its employees | ||||||
16 | who are covered spouses or
dependents under this plan or | ||||||
17 | another group policy or plan providing health
benefits as long | ||||||
18 | as (1) an appropriate official from the rehabilitation
facility | ||||||
19 | attests that each employee not enrolled is a covered spouse or
| ||||||
20 | dependent under this plan or another group policy or plan, and | ||||||
21 | (2) at least
50% of the employees are enrolled and the | ||||||
22 | rehabilitation facility remits
the entire cost of providing | ||||||
23 | coverage to those employees. Employees of a
participating | ||||||
24 | rehabilitation facility who are not enrolled due to coverage
| ||||||
25 | under another group health policy or plan may enroll
in the | ||||||
26 | event of a qualifying change in status, special enrollment, |
| |||||||
| |||||||
1 | special
circumstance as defined by the Director, or during the | ||||||
2 | annual Benefit Choice
Period. A participating rehabilitation | ||||||
3 | facility may also elect
to cover its annuitants. Dependent | ||||||
4 | coverage shall be offered on an optional
basis, with the costs | ||||||
5 | paid by the rehabilitation facility, its employees, or
some | ||||||
6 | combination of the 2 as determined by the rehabilitation | ||||||
7 | facility. The
rehabilitation facility shall be responsible for | ||||||
8 | timely collection and
transmission of dependent premiums.
| ||||||
9 | The Director shall annually determine quarterly rates of | ||||||
10 | payment, subject
to the following constraints:
| ||||||
11 | (1) In the first year of coverage, the rates shall be | ||||||
12 | equal to the amount
normally charged to State employees for | ||||||
13 | elected optional coverages or for
enrolled dependents | ||||||
14 | coverages or other contributory coverages on behalf of
its | ||||||
15 | employees, adjusted for differences between State | ||||||
16 | employees and
employees of the rehabilitation facility in | ||||||
17 | age, sex, geographic location
or other relevant | ||||||
18 | demographic variables, plus an amount sufficient to pay
for | ||||||
19 | the additional administrative costs of providing coverage | ||||||
20 | to employees
of the rehabilitation facility and their | ||||||
21 | dependents.
| ||||||
22 | (2) In subsequent years, a further adjustment shall be | ||||||
23 | made to reflect
the actual prior years' claims experience | ||||||
24 | of the employees of the
rehabilitation facility.
| ||||||
25 | Monthly payments by the rehabilitation facility or its | ||||||
26 | employees for
group health benefits shall be deposited in the |
| |||||||
| |||||||
1 | Local Government Health
Insurance Reserve Fund.
| ||||||
2 | (k) Any domestic violence shelter or service within the | ||||||
3 | State of Illinois
may apply to the Director to have its | ||||||
4 | employees, annuitants, and their
dependents provided group | ||||||
5 | health coverage under this Act on a non-insured
basis. To | ||||||
6 | participate, a domestic violence shelter or service must agree | ||||||
7 | to
enroll all of its employees and pay the entire cost of | ||||||
8 | providing such coverage
for its employees. The domestic | ||||||
9 | violence shelter shall not be required to enroll those of its | ||||||
10 | employees who are covered spouses or dependents under this plan | ||||||
11 | or another group policy or plan providing health benefits as | ||||||
12 | long as (1) an appropriate official from the domestic violence | ||||||
13 | shelter attests that each employee not enrolled is a covered | ||||||
14 | spouse or dependent under this plan or another group policy or | ||||||
15 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
16 | domestic violence shelter remits the entire cost of providing | ||||||
17 | coverage to those employees. Employees of a participating | ||||||
18 | domestic violence shelter who are not enrolled due to coverage | ||||||
19 | under another group health policy or plan may enroll in the | ||||||
20 | event of a qualifying change in status, special enrollment, or | ||||||
21 | special circumstance as defined by the Director or during the | ||||||
22 | annual Benefit Choice Period. A participating domestic | ||||||
23 | violence shelter may also elect
to cover its annuitants. | ||||||
24 | Dependent coverage shall be offered on an optional
basis, with
| ||||||
25 | employees, or some combination of the 2 as determined by the | ||||||
26 | domestic violence
shelter or service. The domestic violence |
| |||||||
| |||||||
1 | shelter or service shall be
responsible for timely collection | ||||||
2 | and transmission of dependent premiums.
| ||||||
3 | The Director shall annually determine rates of payment,
| ||||||
4 | subject to the following constraints:
| ||||||
5 | (1) In the first year of coverage, the rates shall be | ||||||
6 | equal to the
amount normally charged to State employees for | ||||||
7 | elected optional coverages
or for enrolled dependents | ||||||
8 | coverages or other contributory coverages on
behalf of its | ||||||
9 | employees, adjusted for differences between State | ||||||
10 | employees and
employees of the domestic violence shelter or | ||||||
11 | service in age, sex, geographic
location or other relevant | ||||||
12 | demographic variables, plus an amount sufficient
to pay for | ||||||
13 | the additional administrative costs of providing coverage | ||||||
14 | to
employees of the domestic violence shelter or service | ||||||
15 | and their dependents.
| ||||||
16 | (2) In subsequent years, a further adjustment shall be | ||||||
17 | made to reflect
the actual prior years' claims experience | ||||||
18 | of the employees of the domestic
violence shelter or | ||||||
19 | service.
| ||||||
20 | Monthly payments by the domestic violence shelter or | ||||||
21 | service or its employees
for group health insurance shall be | ||||||
22 | deposited in the Local Government Health
Insurance Reserve | ||||||
23 | Fund.
| ||||||
24 | (l) A public community college or entity organized pursuant | ||||||
25 | to the
Public Community College Act may apply to the Director | ||||||
26 | initially to have
only annuitants not covered prior to July 1, |
| |||||||
| |||||||
1 | 1992 by the district's health
plan provided health coverage | ||||||
2 | under this Act on a non-insured basis. The
community college | ||||||
3 | must execute a 2-year contract to participate in the
Local | ||||||
4 | Government Health Plan.
Any annuitant may enroll in the event | ||||||
5 | of a qualifying change in status, special
enrollment, special | ||||||
6 | circumstance as defined by the Director, or during the
annual | ||||||
7 | Benefit Choice Period.
| ||||||
8 | The Director shall annually determine monthly rates of | ||||||
9 | payment subject to
the following constraints: for those | ||||||
10 | community colleges with annuitants
only enrolled, first year | ||||||
11 | rates shall be equal to the average cost to cover
claims for a | ||||||
12 | State member adjusted for demographics, Medicare
| ||||||
13 | participation, and other factors; and in the second year, a | ||||||
14 | further adjustment
of rates shall be made to reflect the actual | ||||||
15 | first year's claims experience
of the covered annuitants.
| ||||||
16 | (l-5) The provisions of subsection (l) become inoperative | ||||||
17 | on July 1, 1999.
| ||||||
18 | (m) The Director shall adopt any rules deemed necessary for
| ||||||
19 | implementation of this amendatory Act of 1989 (Public Act | ||||||
20 | 86-978).
| ||||||
21 | (n) Any child advocacy center within the State of Illinois | ||||||
22 | may apply to the Director to have its employees, annuitants, | ||||||
23 | and their dependents provided group health coverage under this | ||||||
24 | Act on a non-insured basis. To participate, a child advocacy | ||||||
25 | center must agree to enroll all of its employees and pay the | ||||||
26 | entire cost of providing coverage for its employees. The child
|
| |||||||
| |||||||
1 | advocacy center shall not be required to enroll those of its
| ||||||
2 | employees who are covered spouses or dependents under this plan
| ||||||
3 | or another group policy or plan providing health benefits as
| ||||||
4 | long as (1) an appropriate official from the child advocacy
| ||||||
5 | center attests that each employee not enrolled is a covered
| ||||||
6 | spouse or dependent under this plan or another group policy or
| ||||||
7 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
8 | child advocacy center remits the entire cost of providing | ||||||
9 | coverage to those employees. Employees of a participating child | ||||||
10 | advocacy center who are not enrolled due to coverage under | ||||||
11 | another group health policy or plan may enroll in the event of | ||||||
12 | a qualifying change in status, special enrollment, or special | ||||||
13 | circumstance as defined by the Director or during the annual | ||||||
14 | Benefit Choice Period. A participating child advocacy center | ||||||
15 | may also elect to cover its annuitants. Dependent coverage | ||||||
16 | shall be offered on an optional basis, with the costs paid by | ||||||
17 | the child advocacy center, its employees, or some combination | ||||||
18 | of the 2 as determined by the child advocacy center. The child | ||||||
19 | advocacy center shall be responsible for timely collection and | ||||||
20 | transmission of dependent premiums. | ||||||
21 | The Director shall annually determine rates of payment, | ||||||
22 | subject to the following constraints: | ||||||
23 | (1) In the first year of coverage, the rates shall be | ||||||
24 | equal to the amount normally charged to State employees for | ||||||
25 | elected optional coverages or for enrolled dependents | ||||||
26 | coverages or other contributory coverages on behalf of its |
| |||||||
| |||||||
1 | employees, adjusted for differences between State | ||||||
2 | employees and employees of the child advocacy center in | ||||||
3 | age, sex, geographic location, or other relevant | ||||||
4 | demographic variables, plus an amount sufficient to pay for | ||||||
5 | the additional administrative costs of providing coverage | ||||||
6 | to employees of the child advocacy center and their | ||||||
7 | dependents. | ||||||
8 | (2) In subsequent years, a further adjustment shall be | ||||||
9 | made to reflect the actual prior years' claims experience | ||||||
10 | of the employees of the child advocacy center. | ||||||
11 | Monthly payments by the child advocacy center or its | ||||||
12 | employees for group health insurance shall be deposited into | ||||||
13 | the Local Government Health Insurance Reserve Fund. | ||||||
14 | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
| ||||||
15 | Section 15. The Civil Administrative Code of Illinois is | ||||||
16 | amended by adding Section 5-647 as follows: | ||||||
17 | (20 ILCS 5/5-647 new) | ||||||
18 | Sec. 5-647. Future increases in income. A Department must | ||||||
19 | not pay, offer, or agree to pay any future increase in income, | ||||||
20 | as that term is defined in Section 14-103.42, 15-112.1, or | ||||||
21 | 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
22 | manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of | ||||||
23 | the Illinois Pension Code. |
| |||||||
| |||||||
1 | Section 20. The Attorney General Act is amended by adding | ||||||
2 | Section 5 as follows: | ||||||
3 | (15 ILCS 205/5 new) | ||||||
4 | Sec. 5. Future increases in income. The Office of the | ||||||
5 | Attorney General must not pay, offer, or agree to pay any | ||||||
6 | future
increase in income, as that term is defined in Section
| ||||||
7 | 14-103.42 of the Illinois Pension Code,
to any person in a | ||||||
8 | manner that violates Section 14-106.5 of the Illinois Pension | ||||||
9 | Code. | ||||||
10 | Section 25. The Secretary of State Merit Employment Code is | ||||||
11 | amended by adding Section 13a as follows: | ||||||
12 | (15 ILCS 310/13a new) | ||||||
13 | Sec. 13a. Future increases in income. The Office of the | ||||||
14 | Secretary of State must not pay, offer, or agree to pay any | ||||||
15 | future
increase in income, as that term is defined in Section
| ||||||
16 | 14-103.42 of the Illinois Pension Code,
to any person in a | ||||||
17 | manner that violates Section 14-106.5 of the Illinois Pension | ||||||
18 | Code. | ||||||
19 | Section 30. The Comptroller Merit Employment Code is | ||||||
20 | amended by adding Section 13a as follows: | ||||||
21 | (15 ILCS 410/13a new) |
| |||||||
| |||||||
1 | Sec. 13a. Future increases in income. The Office of the | ||||||
2 | Comptroller must not pay, offer, or agree to pay any future
| ||||||
3 | increase in income, as that term is defined in Section
| ||||||
4 | 14-103.42 of the Illinois Pension Code,
to any person in a | ||||||
5 | manner that violates Section 14-106.5 of the Illinois Pension | ||||||
6 | Code. | ||||||
7 | Section 35. The State Treasurer Employment Code is amended | ||||||
8 | by adding Section 12a as follows: | ||||||
9 | (15 ILCS 510/12a new) | ||||||
10 | Sec. 12a. Future increases in income. The Office of the | ||||||
11 | State Treasurer must not pay, offer, or agree to pay any future
| ||||||
12 | increase in income, as that term is defined in Section
| ||||||
13 | 14-103.42 of the Illinois Pension Code,
to any person in a | ||||||
14 | manner that violates Section 14-106.5 of the Illinois Pension | ||||||
15 | Code. | ||||||
16 | Section 40. The Budget Stabilization Act is amended by | ||||||
17 | changing Section 20 as follows: | ||||||
18 | (30 ILCS 122/20) | ||||||
19 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
20 | which has been
held unconstitutional) | ||||||
21 | Sec. 20. Pension Stabilization Fund. | ||||||
22 | (a) The Pension Stabilization Fund is hereby created as a |
| |||||||
| |||||||
1 | special fund in the State treasury. Moneys in the fund shall be | ||||||
2 | used for the sole purpose of making payments to the designated | ||||||
3 | retirement systems as provided in Section 25.
| ||||||
4 | (b) For each fiscal year through State fiscal year 2020, | ||||||
5 | when the General Assembly's
appropriations and transfers or | ||||||
6 | diversions as required by law
from general funds do not exceed | ||||||
7 | 99% of the
estimated general funds revenues pursuant to | ||||||
8 | subsection (a)
of Section 10, the Comptroller shall transfer | ||||||
9 | from the
General Revenue Fund as provided by this Section a | ||||||
10 | total
amount equal to 0.5% of the estimated general funds | ||||||
11 | revenues
to the Pension Stabilization Fund. | ||||||
12 | (c) For each fiscal year through State fiscal year 2020, | ||||||
13 | when the General Assembly's
appropriations and transfers or | ||||||
14 | diversions as required by law
from general funds do not exceed | ||||||
15 | 98% of the
estimated general funds revenues pursuant to | ||||||
16 | subsection (b)
of Section 10, the Comptroller shall transfer | ||||||
17 | from the
General Revenue Fund as provided by this Section a | ||||||
18 | total
amount equal to 1.0% of the estimated general funds | ||||||
19 | revenues
to the Pension Stabilization Fund. | ||||||
20 | (c-5) In addition to any other amounts required to be
| ||||||
21 | transferred under this Section, in State fiscal year 2021 and
| ||||||
22 | each fiscal year thereafter through State fiscal year 2045, or
| ||||||
23 | when each of the designated retirement systems, as defined in
| ||||||
24 | Section 25, has achieved 100% funding, whichever occurs first,
| ||||||
25 | the State Comptroller shall order transferred and the State
| ||||||
26 | Treasurer shall transfer from the General Revenue Fund to the
|
| |||||||
| |||||||
1 | Pension Stabilization Fund an amount equal to (1) the
sum of | ||||||
2 | the amounts certified by the designated retirement
systems | ||||||
3 | under subsection
(a-10) of Section 14-135.08, subsection | ||||||
4 | (a-10) of Section
15-165, and subsection (a-10) of Section | ||||||
5 | 16-158 of this Code for that fiscal year minus (2) the sum of | ||||||
6 | the required State
contributions certified by the retirement | ||||||
7 | systems under subsection (a-5) of Section
14-135.08, | ||||||
8 | subsection (a-5) of Section 15-165, and subsection
(a-5) of | ||||||
9 | Section 16-158 of this Code for that fiscal year. The
| ||||||
10 | transferred amount is intended to represent the
annual savings | ||||||
11 | to the State resulting from the enactment of
Section 1-161 and | ||||||
12 | Section 14-155.2, the enactment of subsection (a-2) of Section | ||||||
13 | 15-155 and subsection (b-4) of Section 16-158, and the changes | ||||||
14 | made to Section 1-160 by this amendatory Act of the 100th | ||||||
15 | General Assembly. | ||||||
16 | (d) The Comptroller shall transfer 1/12 of the total
amount | ||||||
17 | to be transferred each fiscal year under this Section
into the | ||||||
18 | Pension Stabilization Fund on the first day of each
month of | ||||||
19 | that fiscal year or as soon thereafter as possible; except that | ||||||
20 | the final transfer of the fiscal year shall be made as soon as | ||||||
21 | practical after the August 31 following the end of the fiscal | ||||||
22 | year. | ||||||
23 | Until State fiscal year 2021, before Before the final | ||||||
24 | transfer for a fiscal year is made, the Comptroller shall | ||||||
25 | reconcile the estimated general funds revenues used in | ||||||
26 | calculating the other transfers under this Section for that |
| |||||||
| |||||||
1 | fiscal year with the actual general funds revenues for that | ||||||
2 | fiscal year. The
final transfer for the fiscal year shall be | ||||||
3 | adjusted so that the
total amount transferred under this | ||||||
4 | Section for that fiscal year is equal to the percentage | ||||||
5 | specified in subsection
(b) or (c) of this Section, whichever | ||||||
6 | is applicable, of the actual
general funds revenues for that | ||||||
7 | fiscal year. The actual general funds revenues for the fiscal | ||||||
8 | year shall be calculated in a manner consistent with subsection | ||||||
9 | (c) of
Section 10 of this Act.
| ||||||
10 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
11 | Section 45. The Illinois Pension Code is amended by | ||||||
12 | changing Sections 1-160, 2-101, 2-105, 2-107, 2-108, 2-119.1, | ||||||
13 | 2-124, 2-126, 2-134, 2-162, 14-103.10, 14-114, 14-131, 14-133, | ||||||
14 | 14-135.08, 14-152.1, 15-108.1, 15-108.2, 15-111, 15-136, | ||||||
15 | 15-155, 15-157, 15-165, 15-198, 16-121, 16-133.1, 16-136.1, | ||||||
16 | 16-152, 16-158, 16-203, 17-116, 17-119.2, 17-129, 17-130, | ||||||
17 | 18-131, 18-140, 20-121, 20-123, 20-124, and 20-125 and by | ||||||
18 | adding Sections 1-161, 1-162, 2-105.3, 2-107.9, 2-107.10, | ||||||
19 | 2-110.3, 2-165.1, 2-166.1, 14-103.41, 14-103.42, 14-103.43, | ||||||
20 | 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-112.1, | ||||||
21 | 15-112.2, 15-132.9, 15-185.5, 15-200.1, 15-201.1, 16-107.1, | ||||||
22 | 16-121.1, 16-121.2, 16-122.9, 16-190.5, 16-205.1, 16-206.1, | ||||||
23 | 17-106.05, 17-113.4, 17-113.5, 17-113.6, and 17-115.5 as | ||||||
24 | follows:
|
| |||||||
| |||||||
1 | (40 ILCS 5/1-160)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
3 | which has been held unconstitutional) | ||||||
4 | Sec. 1-160. Provisions applicable to new hires. | ||||||
5 | (a) The provisions of this Section apply to a person who, | ||||||
6 | on or after January 1, 2011, first becomes a member or a | ||||||
7 | participant under any reciprocal retirement system or pension | ||||||
8 | fund established under this Code, other than a retirement | ||||||
9 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
10 | 15 or 18 of this Code, notwithstanding any other provision of | ||||||
11 | this Code to the contrary, but do not apply to any self-managed | ||||||
12 | plan established under this Code, to any person with respect to | ||||||
13 | service as a sheriff's law enforcement employee under Article | ||||||
14 | 7, or to any participant of the retirement plan established | ||||||
15 | under Section 22-101. Notwithstanding anything to the contrary | ||||||
16 | in this Section, for purposes of this Section, a person who | ||||||
17 | participated in a retirement system under Article 15 prior to | ||||||
18 | January 1, 2011 shall be deemed a person who first became a | ||||||
19 | member or participant prior to January 1, 2011 under any | ||||||
20 | retirement system or pension fund subject to this Section. The | ||||||
21 | changes made to this Section by Public Act 98-596 this | ||||||
22 | amendatory Act of the 98th General Assembly are a clarification | ||||||
23 | of existing law and are intended to be retroactive to January | ||||||
24 | 1, 2011 ( the effective date of Public Act 96-889 ) , | ||||||
25 | notwithstanding the provisions of Section 1-103.1 of this Code. | ||||||
26 | This Section does not apply to a person who, on or after 6 |
| |||||||
| |||||||
1 | months after the effective date of this amendatory Act of the | ||||||
2 | 100th General Assembly, first becomes a member or participant | ||||||
3 | under Article 14 or 16, unless that person (i) is a covered | ||||||
4 | employee under Article 14 who has not elected to participate in | ||||||
5 | the defined contribution plan under Section 14-155.2 or (ii) | ||||||
6 | elects under subsection (b) of Section 1-161 to receive the | ||||||
7 | benefits provided under this Section and the applicable | ||||||
8 | provisions of the Article under which he or she is a member or | ||||||
9 | participant. This Section also does not apply to a person who | ||||||
10 | first becomes a member or participant of an affected pension | ||||||
11 | fund on or after 6 months after the resolution or ordinance | ||||||
12 | date, as defined in Section 1-162, unless that person elects | ||||||
13 | under subsection (c) of Section 1-162 to receive the benefits | ||||||
14 | provided under this Section and the applicable provisions of | ||||||
15 | the Article under which he or she is a member or participant. | ||||||
16 | (b) "Final average salary" means the average monthly (or | ||||||
17 | annual) salary obtained by dividing the total salary or | ||||||
18 | earnings calculated under the Article applicable to the member | ||||||
19 | or participant during the 96 consecutive months (or 8 | ||||||
20 | consecutive years) of service within the last 120 months (or 10 | ||||||
21 | years) of service in which the total salary or earnings | ||||||
22 | calculated under the applicable Article was the highest by the | ||||||
23 | number of months (or years) of service in that period. For the | ||||||
24 | purposes of a person who first becomes a member or participant | ||||||
25 | of any retirement system or pension fund to which this Section | ||||||
26 | applies on or after January 1, 2011, in this Code, "final |
| |||||||
| |||||||
1 | average salary" shall be substituted for the following: | ||||||
2 | (1) In Article 7 (except for service as sheriff's law | ||||||
3 | enforcement employees), "final rate of earnings". | ||||||
4 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
5 | annual salary for any 4 consecutive years within the last | ||||||
6 | 10 years of service immediately preceding the date of | ||||||
7 | withdrawal". | ||||||
8 | (3) In Article 13, "average final salary". | ||||||
9 | (4) In Article 14, "final average compensation". | ||||||
10 | (5) In Article 17, "average salary". | ||||||
11 | (6) In Section 22-207, "wages or salary received by him | ||||||
12 | at the date of retirement or discharge". | ||||||
13 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
14 | this Code (including without limitation the calculation of | ||||||
15 | benefits and employee contributions), the annual earnings, | ||||||
16 | salary, or wages (based on the plan year) of a member or | ||||||
17 | participant to whom this Section applies shall not exceed | ||||||
18 | $106,800; however, that amount shall annually thereafter be | ||||||
19 | increased by the lesser of (i) 3% of that amount, including all | ||||||
20 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
21 | percentage increase (but not less than zero) in the consumer | ||||||
22 | price index-u
for the 12 months ending with the September | ||||||
23 | preceding each November 1, including all previous adjustments. | ||||||
24 | For the purposes of this Section, "consumer price index-u" | ||||||
25 | means
the index published by the Bureau of Labor Statistics of | ||||||
26 | the United States
Department of Labor that measures the average |
| |||||||
| |||||||
1 | change in prices of goods and
services purchased by all urban | ||||||
2 | consumers, United States city average, all
items, 1982-84 = | ||||||
3 | 100. The new amount resulting from each annual adjustment
shall | ||||||
4 | be determined by the Public Pension Division of the Department | ||||||
5 | of Insurance and made available to the boards of the retirement | ||||||
6 | systems and pension funds by November 1 of each year. | ||||||
7 | (c) A member or participant is entitled to a retirement
| ||||||
8 | annuity upon written application if he or she has attained age | ||||||
9 | 67 (beginning January 1, 2015, age 65 with respect to service | ||||||
10 | under Article 12 of this Code that is subject to this Section) | ||||||
11 | and has at least 10 years of service credit and is otherwise | ||||||
12 | eligible under the requirements of the applicable Article. | ||||||
13 | A member or participant who has attained age 62 (beginning | ||||||
14 | January 1, 2015, age 60 with respect to service under Article | ||||||
15 | 12 of this Code that is subject to this Section) and has at | ||||||
16 | least 10 years of service credit and is otherwise eligible | ||||||
17 | under the requirements of the applicable Article may elect to | ||||||
18 | receive the lower retirement annuity provided
in subsection (d) | ||||||
19 | of this Section. | ||||||
20 | (d) The retirement annuity of a member or participant who | ||||||
21 | is retiring after attaining age 62 (beginning January 1, 2015, | ||||||
22 | age 60 with respect to service under Article 12 of this Code | ||||||
23 | that is subject to this Section) with at least 10 years of | ||||||
24 | service credit shall be reduced by one-half
of 1% for each full | ||||||
25 | month that the member's age is under age 67 (beginning January | ||||||
26 | 1, 2015, age 65 with respect to service under Article 12 of |
| |||||||
| |||||||
1 | this Code that is subject to this Section). | ||||||
2 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
3 | subject to annual increases on the January 1 occurring either | ||||||
4 | on or after the attainment of age 67 (beginning January 1, | ||||||
5 | 2015, age 65 with respect to service under Article 12 of this | ||||||
6 | Code that is subject to this Section) or the first anniversary | ||||||
7 | of the annuity start date, whichever is later. Each annual | ||||||
8 | increase shall be calculated at 3% or one-half the annual | ||||||
9 | unadjusted percentage increase (but not less than zero) in the | ||||||
10 | consumer price index-u for the 12 months ending with the | ||||||
11 | September preceding each November 1, whichever is less, of the | ||||||
12 | originally granted retirement annuity. If the annual | ||||||
13 | unadjusted percentage change in the consumer price index-u for | ||||||
14 | the 12 months ending with the September preceding each November | ||||||
15 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
16 | increased. | ||||||
17 | (f) The initial survivor's or widow's annuity of an | ||||||
18 | otherwise eligible survivor or widow of a retired member or | ||||||
19 | participant who first became a member or participant on or | ||||||
20 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
21 | retired member's or participant's retirement annuity at the | ||||||
22 | date of death. In the case of the death of a member or | ||||||
23 | participant who has not retired and who first became a member | ||||||
24 | or participant on or after January 1, 2011, eligibility for a | ||||||
25 | survivor's or widow's annuity shall be determined by the | ||||||
26 | applicable Article of this Code. The initial benefit shall be |
| |||||||
| |||||||
1 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
2 | child's annuity of an otherwise eligible child shall be in the | ||||||
3 | amount prescribed under each Article if applicable. Any | ||||||
4 | survivor's or widow's annuity shall be increased (1) on each | ||||||
5 | January 1 occurring on or after the commencement of the annuity | ||||||
6 | if
the deceased member died while receiving a retirement | ||||||
7 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
8 | after the first anniversary
of the commencement of the annuity. | ||||||
9 | Each annual increase shall be calculated at 3% or one-half the | ||||||
10 | annual unadjusted percentage increase (but not less than zero) | ||||||
11 | in the consumer price index-u for the 12 months ending with the | ||||||
12 | September preceding each November 1, whichever is less, of the | ||||||
13 | originally granted survivor's annuity. If the annual | ||||||
14 | unadjusted percentage change in the consumer price index-u for | ||||||
15 | the 12 months ending with the September preceding each November | ||||||
16 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
17 | increased. | ||||||
18 | (g) The benefits in Section 14-110 apply only if the person | ||||||
19 | is a State policeman, a fire fighter in the fire protection | ||||||
20 | service of a department, or a security employee of the | ||||||
21 | Department of Corrections or the Department of Juvenile | ||||||
22 | Justice, as those terms are defined in subsection (b) of | ||||||
23 | Section 14-110. A person who meets the requirements of this | ||||||
24 | Section is entitled to an annuity calculated under the | ||||||
25 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
26 | retirement annuity, only if the person has withdrawn from |
| |||||||
| |||||||
1 | service with not less than 20
years of eligible creditable | ||||||
2 | service and has attained age 60, regardless of whether
the | ||||||
3 | attainment of age 60 occurs while the person is
still in | ||||||
4 | service. | ||||||
5 | (h) If a person who first becomes a member or a participant | ||||||
6 | of a retirement system or pension fund subject to this Section | ||||||
7 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
8 | or retirement pension under that system or fund and becomes a | ||||||
9 | member or participant under any other system or fund created by | ||||||
10 | this Code and is employed on a full-time basis, except for | ||||||
11 | those members or participants exempted from the provisions of | ||||||
12 | this Section under subsection (a) of this Section, then the | ||||||
13 | person's retirement annuity or retirement pension under that | ||||||
14 | system or fund shall be suspended during that employment. Upon | ||||||
15 | termination of that employment, the person's retirement | ||||||
16 | annuity or retirement pension payments shall resume and be | ||||||
17 | recalculated if recalculation is provided for under the | ||||||
18 | applicable Article of this Code. | ||||||
19 | If a person who first becomes a member of a retirement | ||||||
20 | system or pension fund subject to this Section on or after | ||||||
21 | January 1, 2012 and is receiving a retirement annuity or | ||||||
22 | retirement pension under that system or fund and accepts on a | ||||||
23 | contractual basis a position to provide services to a | ||||||
24 | governmental entity from which he or she has retired, then that | ||||||
25 | person's annuity or retirement pension earned as an active | ||||||
26 | employee of the employer shall be suspended during that |
| |||||||
| |||||||
1 | contractual service. A person receiving an annuity or | ||||||
2 | retirement pension under this Code shall notify the pension | ||||||
3 | fund or retirement system from which he or she is receiving an | ||||||
4 | annuity or retirement pension, as well as his or her | ||||||
5 | contractual employer, of his or her retirement status before | ||||||
6 | accepting contractual employment. A person who fails to submit | ||||||
7 | such notification shall be guilty of a Class A misdemeanor and | ||||||
8 | required to pay a fine of $1,000. Upon termination of that | ||||||
9 | contractual employment, the person's retirement annuity or | ||||||
10 | retirement pension payments shall resume and, if appropriate, | ||||||
11 | be recalculated under the applicable provisions of this Code. | ||||||
12 | (i) (Blank). | ||||||
13 | (j) Except for Sections 1-161 and 1-162, in In the case of | ||||||
14 | a conflict between the provisions of this Section and any other | ||||||
15 | provision of this Code, the provisions of this Section shall | ||||||
16 | control.
| ||||||
17 | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | ||||||
18 | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.) | ||||||
19 | (40 ILCS 5/1-161 new) | ||||||
20 | Sec. 1-161. Optional benefits for certain Tier 2 members | ||||||
21 | under Articles 14, 15, and 16. | ||||||
22 | (a) Notwithstanding any other provision of this Code to the | ||||||
23 | contrary, the provisions of this Section apply to a person who, | ||||||
24 | on or after 6 months after the effective date of this | ||||||
25 | amendatory Act of the 100th General Assembly, first becomes a |
| |||||||
| |||||||
1 | member or a participant under Article 14, 15, or 16 and who | ||||||
2 | does not make the election under subsection (b) or (c), | ||||||
3 | whichever is applicable. The provisions of this Section do not | ||||||
4 | apply to any participant in a self-managed plan or to a covered | ||||||
5 | employee under Article 14. | ||||||
6 | (b) In lieu of the benefits provided under this Section, a | ||||||
7 | member or participant, except for a participant under Article | ||||||
8 | 15, may irrevocably elect the benefits under Section 1-160 and | ||||||
9 | the benefits otherwise applicable to that member or | ||||||
10 | participant. The election must be made within 30 days after | ||||||
11 | becoming a member or participant. Each retirement system shall | ||||||
12 | establish procedures for making this election. | ||||||
13 | (c) A participant under Article 15 may irrevocably elect | ||||||
14 | the benefits otherwise provided to a Tier 2 participant under | ||||||
15 | Article 15. The election must be made within 30 days after | ||||||
16 | becoming a participant. The retirement system under Article 15 | ||||||
17 | shall establish procedures for making this election. | ||||||
18 | (d) "Final average salary" means the average monthly (or | ||||||
19 | annual) salary obtained by dividing the total salary or | ||||||
20 | earnings calculated under the Article applicable to the member | ||||||
21 | or participant during the last 120 months (or 10 years) of | ||||||
22 | service in which the total salary or earnings calculated under | ||||||
23 | the applicable Article was the highest by the number of months | ||||||
24 | (or years) of service in that period. For the purposes of a | ||||||
25 | person who first becomes a member or participant of any | ||||||
26 | retirement system to which this Section applies on or after 6 |
| |||||||
| |||||||
1 | months after the effective date of this amendatory Act of the | ||||||
2 | 100th General Assembly, in this Code, "final average salary" | ||||||
3 | shall be substituted for "final average compensation" in | ||||||
4 | Article 14. | ||||||
5 | (e) Beginning 6 months after the effective date of this | ||||||
6 | amendatory Act of the 100th General Assembly, for all purposes | ||||||
7 | under this Code (including without limitation the calculation | ||||||
8 | of benefits and employee contributions), the annual earnings, | ||||||
9 | salary, or wages (based on the plan year) of a member or | ||||||
10 | participant to whom this Section applies shall not at any time | ||||||
11 | exceed the federal Social Security Wage Base then in effect. | ||||||
12 | (f) A member or participant is entitled to a retirement
| ||||||
13 | annuity upon written application if he or she has attained the | ||||||
14 | normal retirement age determined by the Social Security | ||||||
15 | Administration for that member or participant's year of birth, | ||||||
16 | but no earlier than 67 years of age, and has at least 10 years | ||||||
17 | of service credit and is otherwise eligible under the | ||||||
18 | requirements of the applicable Article. | ||||||
19 | (g) The amount of the retirement annuity to which a member | ||||||
20 | or participant is entitled shall be computed by multiplying | ||||||
21 | 1.25% for each year of service credit by his or her final | ||||||
22 | average salary. | ||||||
23 | (h) Any retirement annuity or supplemental annuity shall be | ||||||
24 | subject to annual increases on the first anniversary of the | ||||||
25 | annuity start date. Each annual increase shall be one-half the | ||||||
26 | annual unadjusted percentage increase (but not less than zero) |
| |||||||
| |||||||
1 | in the consumer price index-w for the 12 months ending with the | ||||||
2 | September preceding each November 1 of the originally granted | ||||||
3 | retirement annuity. If the annual unadjusted percentage change | ||||||
4 | in the consumer price index-w for the 12 months ending with the | ||||||
5 | September preceding each November 1 is zero or there is a | ||||||
6 | decrease, then the annuity shall not be increased. | ||||||
7 | For the purposes of this Section, "consumer price index-w" | ||||||
8 | means the index published by the Bureau of Labor Statistics of | ||||||
9 | the United States Department of Labor that measures the average | ||||||
10 | change in prices of goods and services purchased by Urban Wage | ||||||
11 | Earners and Clerical Workers, United States city average, all | ||||||
12 | items, 1982-84 = 100. The new amount resulting from each annual | ||||||
13 | adjustment shall be determined by the Public Pension Division | ||||||
14 | of the Department of Insurance and made available to the boards | ||||||
15 | of the retirement systems and pension funds by November 1 of | ||||||
16 | each year. | ||||||
17 | (i) The initial survivor's or widow's annuity of an | ||||||
18 | otherwise eligible survivor or widow of a retired member or | ||||||
19 | participant who first became a member or participant on or | ||||||
20 | after 6 months after the effective date of this amendatory Act | ||||||
21 | of the 100th General Assembly shall be in the amount of 66 2/3% | ||||||
22 | of the retired member's or participant's retirement annuity at | ||||||
23 | the date of death. In the case of the death of a member or | ||||||
24 | participant who has not retired and who first became a member | ||||||
25 | or participant on or after 6 months after the effective date of | ||||||
26 | this amendatory Act of the 100th General Assembly, eligibility |
| |||||||
| |||||||
1 | for a survivor's or widow's annuity shall be determined by the | ||||||
2 | applicable Article of this Code. The benefit shall be 66 2/3% | ||||||
3 | of the earned annuity without a reduction due to age. A child's | ||||||
4 | annuity of an otherwise eligible child shall be in the amount | ||||||
5 | prescribed under each Article if applicable. | ||||||
6 | (j) In lieu of any other employee contributions, except for | ||||||
7 | the contribution to the defined contribution plan under | ||||||
8 | subsection (k) of this Section, each employee shall contribute | ||||||
9 | 6.2% of his her or salary to the retirement system. However, | ||||||
10 | the employee contribution under this subsection shall not | ||||||
11 | exceed the amount of the normal cost of the benefits under this | ||||||
12 | Section (except for the defined contribution plan under | ||||||
13 | subsection (k) of this Section), expressed as a percentage of | ||||||
14 | payroll and determined on or before November 1 of each year by | ||||||
15 | the board of trustees of the retirement system. If the board of | ||||||
16 | trustees of the retirement system determines that the 6.2% | ||||||
17 | employee contribution rate exceeds the normal cost of the | ||||||
18 | benefits under this Section (except for the defined | ||||||
19 | contribution plan under subsection (k) of this Section), then | ||||||
20 | on or before December 1 of that year, the board of trustees | ||||||
21 | shall certify the amount of the normal cost of the benefits | ||||||
22 | under this Section (except for the defined contribution plan | ||||||
23 | under subsection (k) of this Section), expressed as a | ||||||
24 | percentage of payroll, to the State Actuary and the Commission | ||||||
25 | on Government Forecasting and Accountability, and the employee | ||||||
26 | contribution under this subsection shall be reduced to that |
| |||||||
| |||||||
1 | amount beginning January 1 of the following year. Thereafter, | ||||||
2 | if the normal cost of the benefits under this Section (except | ||||||
3 | for the defined contribution plan under subsection (k) of this | ||||||
4 | Section), expressed as a percentage of payroll and determined | ||||||
5 | on or before November 1 of each year by the board of trustees | ||||||
6 | of the retirement system, exceeds 6.2% of salary, then on or | ||||||
7 | before December 1 of that year, the board of trustees shall | ||||||
8 | certify the normal cost to the State Actuary and the Commission | ||||||
9 | on Government Forecasting and Accountability, and the employee | ||||||
10 | contributions shall revert back to 6.2% of salary beginning | ||||||
11 | January 1 of the following year. | ||||||
12 | (k) No later than 5 months after the effective date of this | ||||||
13 | amendatory Act of the 100th General Assembly, each retirement | ||||||
14 | system under Article 14, 15, or 16 shall prepare and implement | ||||||
15 | a defined contribution plan for members or participants who are | ||||||
16 | subject to this Section. The defined contribution plan | ||||||
17 | developed under this subsection shall be a plan that aggregates | ||||||
18 | employer and employee contributions in individual participant | ||||||
19 | accounts which, after meeting any other requirements, are used | ||||||
20 | for payouts after retirement in accordance with this subsection | ||||||
21 | and any other applicable laws. | ||||||
22 | (1) Each member or participant shall contribute a | ||||||
23 | minimum of 4% of his or her salary to the defined | ||||||
24 | contribution plan. | ||||||
25 | (2) For each participant in the defined contribution | ||||||
26 | plan who has been employed with the same employer for at |
| |||||||
| |||||||
1 | least one year, employer contributions shall be paid into | ||||||
2 | that participant's accounts at a rate expressed as a | ||||||
3 | percentage of salary. This rate may be set for individual | ||||||
4 | employees, but shall be no higher than 6% of salary and | ||||||
5 | shall be no lower than 2% of salary. | ||||||
6 | (3) Employer contributions shall vest when those | ||||||
7 | contributions are paid into a member's or participant's | ||||||
8 | account. | ||||||
9 | (4) The defined contribution plan shall provide a | ||||||
10 | variety of options for investments. These options shall | ||||||
11 | include investments handled by the Illinois State Board of | ||||||
12 | Investment as well as private sector investment options. | ||||||
13 | (5) The defined contribution plan shall provide a | ||||||
14 | variety of options for payouts to retirees and their | ||||||
15 | survivors. | ||||||
16 | (6) To the extent authorized under federal law and as | ||||||
17 | authorized by the retirement system, the defined | ||||||
18 | contribution plan shall allow former participants in the | ||||||
19 | plan to transfer or roll over employee and employer | ||||||
20 | contributions, and the earnings thereon, into other | ||||||
21 | qualified retirement plans. | ||||||
22 | (7) Each retirement system shall reduce the employee | ||||||
23 | contributions credited to the member's defined | ||||||
24 | contribution plan account by an amount determined by that | ||||||
25 | retirement system to cover the cost of offering the | ||||||
26 | benefits under this subsection and any applicable |
| |||||||
| |||||||
1 | administrative fees. | ||||||
2 | (8) No person shall begin participating in the defined | ||||||
3 | contribution plan until it has attained qualified plan | ||||||
4 | status and received all necessary approvals from the U.S. | ||||||
5 | Internal Revenue Service. | ||||||
6 | (l) By accepting the benefits under this Section, a member | ||||||
7 | or participant acknowledges and consents that benefits once | ||||||
8 | earned may not be diminished, but that future benefits may be | ||||||
9 | modified, including, but not limited to, changes in the | ||||||
10 | retirement age at which a member or participant becomes | ||||||
11 | eligible to receive future benefits, changes in the amount of | ||||||
12 | the automatic annual increase for those future benefits, or the | ||||||
13 | amount of the retirement annuity. Any increase in benefits | ||||||
14 | under this Section applicable to persons under Article 15 or 16 | ||||||
15 | does not apply unless it is approved by resolution or ordinance | ||||||
16 | of the governing body of the unit of local government with | ||||||
17 | regard to the members or participants under that unit of local | ||||||
18 | government. | ||||||
19 | (m) In the case of a conflict between the provisions of | ||||||
20 | this Section and any other provision of this Code, the | ||||||
21 | provisions of this Section shall control. | ||||||
22 | (40 ILCS 5/1-162 new) | ||||||
23 | Sec. 1-162. Optional benefits for certain Tier 2 members of | ||||||
24 | pension funds under Articles 8, 9, 10, 11, 12, and 17. | ||||||
25 | (a) As used in this Section: |
| |||||||
| |||||||
1 | "Affected pension fund" means a pension fund established | ||||||
2 | under Article 8, 9, 10, 11, 12, or 17 that the governing body | ||||||
3 | of the unit of local government has designated as an affected | ||||||
4 | pension fund by adoption of a resolution or ordinance. | ||||||
5 | "Resolution or ordinance date" means the date on which the | ||||||
6 | governing body of the unit of local government designates a | ||||||
7 | pension fund under Article 8, 9, 10, 11, 12, or 17 as an | ||||||
8 | affected pension fund by adoption of a resolution or ordinance. | ||||||
9 | (b) Notwithstanding any other provision of this Code to the | ||||||
10 | contrary, the provisions of this Section apply to a person who | ||||||
11 | first becomes a member or a participant in an affected pension | ||||||
12 | fund on or after 6 months after the resolution or ordinance | ||||||
13 | date and who does not make the election under subsection (c). | ||||||
14 | (c) In lieu of the benefits provided under this Section, a | ||||||
15 | member or participant may irrevocably elect the benefits under | ||||||
16 | Section 1-160 and the benefits otherwise applicable to that | ||||||
17 | member or participant. The election must be made within 30 days | ||||||
18 | after becoming a member or participant. Each affected pension | ||||||
19 | fund shall establish procedures for making this election. | ||||||
20 | (d) "Final average salary" means the average monthly (or | ||||||
21 | annual) salary obtained by dividing the total salary or | ||||||
22 | earnings calculated under the Article applicable to the member | ||||||
23 | or participant during the last 120 months (or 10 years) of | ||||||
24 | service in which the total salary or earnings calculated under | ||||||
25 | the applicable Article was the highest by the number of months | ||||||
26 | (or years) of service in that period. For the purposes of a |
| |||||||
| |||||||
1 | person who first becomes a member or participant of an affected | ||||||
2 | pension fund on or after 6 months after the ordinance or | ||||||
3 | resolution date, in this Code, "final average salary" shall be | ||||||
4 | substituted for the following: | ||||||
5 | (1) In Articles 8, 9, 10, 11, and 12, "highest
average | ||||||
6 | annual salary for any 4 consecutive years within the last | ||||||
7 | 10 years of service immediately preceding the date of | ||||||
8 | withdrawal". | ||||||
9 | (2) In Article 17, "average salary". | ||||||
10 | (e) Beginning 6 months after the resolution or ordinance | ||||||
11 | date, for all purposes under this Code (including without | ||||||
12 | limitation the calculation of benefits and employee | ||||||
13 | contributions), the annual earnings, salary, or wages (based on | ||||||
14 | the plan year) of a member or participant to whom this Section | ||||||
15 | applies shall not at any time exceed the federal Social | ||||||
16 | Security Wage Base then in effect. | ||||||
17 | (f) A member or participant is entitled to a retirement
| ||||||
18 | annuity upon written application if he or she has attained the | ||||||
19 | normal retirement age determined by the Social Security | ||||||
20 | Administration for that member or participant's year of birth, | ||||||
21 | but no earlier than 67 years of age, and has at least 10 years | ||||||
22 | of service credit and is otherwise eligible under the | ||||||
23 | requirements of the applicable Article. | ||||||
24 | (g) The amount of the retirement annuity to which a member | ||||||
25 | or participant is entitled shall be computed by multiplying | ||||||
26 | 1.25% for each year of service credit by his or her final |
| |||||||
| |||||||
1 | average salary. | ||||||
2 | (h) Any retirement annuity or supplemental annuity shall be | ||||||
3 | subject to annual increases on the first anniversary of the | ||||||
4 | annuity start date. Each annual increase shall be one-half the | ||||||
5 | annual unadjusted percentage increase (but not less than zero) | ||||||
6 | in the consumer price index-w for the 12 months ending with the | ||||||
7 | September preceding each November 1 of the originally granted | ||||||
8 | retirement annuity. If the annual unadjusted percentage change | ||||||
9 | in the consumer price index-w for the 12 months ending with the | ||||||
10 | September preceding each November 1 is zero or there is a | ||||||
11 | decrease, then the annuity shall not be increased. | ||||||
12 | For the purposes of this Section, "consumer price index-w" | ||||||
13 | means the index published by the Bureau of Labor Statistics of | ||||||
14 | the United States Department of Labor that measures the average | ||||||
15 | change in prices of goods and services purchased by Urban Wage | ||||||
16 | Earners and Clerical Workers, United States city average, all | ||||||
17 | items, 1982-84 = 100. The new amount resulting from each annual | ||||||
18 | adjustment shall be determined by the Public Pension Division | ||||||
19 | of the Department of Insurance and made available to the boards | ||||||
20 | of the retirement systems and pension funds by November 1 of | ||||||
21 | each year. | ||||||
22 | (i) The initial survivor's or widow's annuity of an | ||||||
23 | otherwise eligible survivor or widow of a retired member or | ||||||
24 | participant who first became a member or participant on or | ||||||
25 | after 6 months after the resolution or ordinance date shall be | ||||||
26 | in the amount of 66 2/3% of the retired member's or |
| |||||||
| |||||||
1 | participant's retirement annuity at the date of death. In the | ||||||
2 | case of the death of a member or participant who has not | ||||||
3 | retired and who first became a member or participant on or | ||||||
4 | after 6 months after the resolution or ordinance date, | ||||||
5 | eligibility for a survivor's or widow's annuity shall be | ||||||
6 | determined by the applicable Article of this Code. The benefit | ||||||
7 | shall be 66 2/3% of the earned annuity without a reduction due | ||||||
8 | to age. A child's annuity of an otherwise eligible child shall | ||||||
9 | be in the amount prescribed under each Article if applicable. | ||||||
10 | (j) In lieu of any other employee contributions, except for | ||||||
11 | the contribution to the defined contribution plan under | ||||||
12 | subsection (k) of this Section, each employee shall contribute | ||||||
13 | 6.2% of his her or salary to the affected pension fund. | ||||||
14 | However, the employee contribution under this subsection shall | ||||||
15 | not exceed the amount of the normal cost of the benefits under | ||||||
16 | this Section (except for the defined contribution plan under | ||||||
17 | subsection (k) of this Section), expressed as a percentage of | ||||||
18 | payroll and determined on or before November 1 of each year by | ||||||
19 | the board of trustees of the affected pension fund. If the | ||||||
20 | board of trustees of the affected pension fund determines that | ||||||
21 | the 6.2% employee contribution rate exceeds the normal cost of | ||||||
22 | the benefits under this Section (except for the defined | ||||||
23 | contribution plan under subsection (k) of this Section), then | ||||||
24 | on or before December 1 of that year, the board of trustees | ||||||
25 | shall certify the amount of the normal cost of the benefits | ||||||
26 | under this Section (except for the defined contribution plan |
| |||||||
| |||||||
1 | under subsection (k) of this Section), expressed as a | ||||||
2 | percentage of payroll, to the State Actuary and the Commission | ||||||
3 | on Government Forecasting and Accountability, and the employee | ||||||
4 | contribution under this subsection shall be reduced to that | ||||||
5 | amount beginning January 1 of the following year. Thereafter, | ||||||
6 | if the normal cost of the benefits under this Section (except | ||||||
7 | for the defined contribution plan under subsection (k) of this | ||||||
8 | Section), expressed as a percentage of payroll and determined | ||||||
9 | on or before November 1 of each year by the board of trustees | ||||||
10 | of the affected pension fund, exceeds 6.2% of salary, then on | ||||||
11 | or before December 1 of that year, the board of trustees shall | ||||||
12 | certify the normal cost to the State Actuary and the Commission | ||||||
13 | on Government Forecasting and Accountability, and the employee | ||||||
14 | contributions shall revert back to 6.2% of salary beginning | ||||||
15 | January 1 of the following year. | ||||||
16 | (k) No later than 5 months after the resolution or | ||||||
17 | ordinance date, an affected pension fund shall prepare and | ||||||
18 | implement a defined contribution plan for members or | ||||||
19 | participants who are subject to this Section. The defined | ||||||
20 | contribution plan developed under this subsection shall be a | ||||||
21 | plan that aggregates employer and employee contributions in | ||||||
22 | individual participant accounts which, after meeting any other | ||||||
23 | requirements, are used for payouts after retirement in | ||||||
24 | accordance with this subsection and any other applicable laws. | ||||||
25 | (1) Each member or participant shall contribute a | ||||||
26 | minimum of 4% of his or her salary to the defined |
| |||||||
| |||||||
1 | contribution plan. | ||||||
2 | (2) For each participant in the defined contribution | ||||||
3 | plan who has been employed with the same employer for at | ||||||
4 | least one year, employer contributions shall be paid into | ||||||
5 | that participant's accounts at a rate expressed as a | ||||||
6 | percentage of salary. This rate may be set for individual | ||||||
7 | employees, but shall be no higher than 6% of salary and | ||||||
8 | shall be no lower than 2% of salary. | ||||||
9 | (3) Employer contributions shall vest when those | ||||||
10 | contributions are paid into a member's or participant's | ||||||
11 | account. | ||||||
12 | (4) The defined contribution plan shall provide a | ||||||
13 | variety of options for investments. These options shall | ||||||
14 | include investments handled by the Illinois State Board of | ||||||
15 | Investment as well as private sector investment options. | ||||||
16 | (5) The defined contribution plan shall provide a | ||||||
17 | variety of options for payouts to retirees and their | ||||||
18 | survivors. | ||||||
19 | (6) To the extent authorized under federal law and as | ||||||
20 | authorized by the affected pension fund, the defined | ||||||
21 | contribution plan shall allow former participants in the | ||||||
22 | plan to transfer or roll over employee and employer | ||||||
23 | contributions, and the earnings thereon, into other | ||||||
24 | qualified retirement plans. | ||||||
25 | (7) Each affected pension fund shall reduce the | ||||||
26 | employee contributions credited to the member's defined |
| |||||||
| |||||||
1 | contribution plan account by an amount determined by that | ||||||
2 | affected pension fund to cover the cost of offering the | ||||||
3 | benefits under this subsection and any applicable | ||||||
4 | administrative fees. | ||||||
5 | (8) No person shall begin participating in the defined | ||||||
6 | contribution plan until it has attained qualified plan | ||||||
7 | status and received all necessary approvals from the U.S. | ||||||
8 | Internal Revenue Service. | ||||||
9 | (l) By accepting the benefits under this Section, a member | ||||||
10 | or participant acknowledges and consents that benefits once | ||||||
11 | earned may not be diminished, but that future benefits may be | ||||||
12 | modified, including, but not limited to, changes in the | ||||||
13 | retirement age at which a member or participant becomes | ||||||
14 | eligible to receive future benefits, changes in the amount of | ||||||
15 | the automatic annual increase for those future benefits, or the | ||||||
16 | amount of the retirement annuity. Any increase in benefits | ||||||
17 | under this Section does not apply unless it is approved by | ||||||
18 | resolution or ordinance of the governing body of the unit of | ||||||
19 | local government with regard to the members or participants | ||||||
20 | under that unit of local government. | ||||||
21 | (m) In the case of a conflict between the provisions of | ||||||
22 | this Section and any other provision of this Code, the | ||||||
23 | provisions of this Section shall control. | ||||||
24 | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
| ||||||
25 | Sec. 2-101. Creation of system. A retirement system is |
| |||||||
| |||||||
1 | created to provide
retirement annuities, survivor's annuities | ||||||
2 | and other benefits for certain
members of the General Assembly, | ||||||
3 | certain elected state officials , and their
beneficiaries.
| ||||||
4 | The system shall be known as the "General Assembly | ||||||
5 | Retirement System".
All its funds and property shall be a trust | ||||||
6 | separate from all other
entities, maintained for the purpose of | ||||||
7 | securing payment of annuities and
benefits under this Article.
| ||||||
8 | Participation in the retirement system created under this | ||||||
9 | Article is
restricted to persons who became participants before | ||||||
10 | the effective date of this amendatory Act of the 100th General | ||||||
11 | Assembly.
Beginning on that date, the System shall not accept | ||||||
12 | any new participants.
| ||||||
13 | (Source: P.A. 83-1440.)
| ||||||
14 | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
| ||||||
15 | Sec. 2-105. Member. "Member": Members of the General | ||||||
16 | Assembly of this
State , including persons who enter military | ||||||
17 | service while a member of the
General Assembly , and any person | ||||||
18 | serving as Governor, Lieutenant Governor,
Secretary of State, | ||||||
19 | Treasurer, Comptroller, or Attorney General for the period
of | ||||||
20 | service in such office.
| ||||||
21 | Any person who has served for 10 or more years as Clerk or | ||||||
22 | Assistant Clerk
of the House of Representatives, Secretary or | ||||||
23 | Assistant Secretary of the
Senate, or any combination thereof, | ||||||
24 | may elect to become a member
of this system while thenceforth | ||||||
25 | engaged in such service by filing a
written election with the |
| |||||||
| |||||||
1 | board. Any person so electing shall be
deemed an active member | ||||||
2 | of the General Assembly for the purpose of validating
and | ||||||
3 | transferring any service credits earned under any of the funds | ||||||
4 | and systems
established under Articles 3 through 18 of this | ||||||
5 | Code.
| ||||||
6 | However, notwithstanding any other provision of this | ||||||
7 | Article, a person
shall not be deemed a member for the purposes | ||||||
8 | of this Article unless he or she
became a participant of the | ||||||
9 | System before the effective date of this amendatory Act of the | ||||||
10 | 100th General Assembly.
| ||||||
11 | (Source: P.A. 85-1008.)
| ||||||
12 | (40 ILCS 5/2-105.3 new) | ||||||
13 | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A | ||||||
14 | participant who first became a participant before January 1, | ||||||
15 | 2011.
| ||||||
16 | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
| ||||||
17 | Sec. 2-107. Participant. "Participant": Any member who | ||||||
18 | elects to
participate; and any former member who elects to | ||||||
19 | continue participation
under Section 2-117.1, for the duration | ||||||
20 | of such continued participation. However, notwithstanding any | ||||||
21 | other provision of this Article, a person
shall not be deemed a | ||||||
22 | participant for the purposes of this Article unless he or she
| ||||||
23 | became a participant of the System before the effective date of | ||||||
24 | this amendatory Act of the 100th General Assembly.
|
| |||||||
| |||||||
1 | (Source: P.A. 86-1488.)
| ||||||
2 | (40 ILCS 5/2-107.9 new) | ||||||
3 | Sec. 2-107.9. Future increase in income. "Future increase | ||||||
4 | in income" means an increase to a Tier 1 employee's base pay | ||||||
5 | that is offered to the Tier 1 employee for service under this | ||||||
6 | Article after June 30, 2018 that qualifies as "salary", as | ||||||
7 | defined in Section 2-108, or would qualify as "salary" but for | ||||||
8 | the fact that it was offered to and accepted by the Tier 1 | ||||||
9 | employee under the condition set forth in subsection (c) of | ||||||
10 | Section 2-110.3. | ||||||
11 | (40 ILCS 5/2-107.10 new) | ||||||
12 | Sec. 2-107.10. Base pay. As used in Section 2-107.9 of | ||||||
13 | this Code, "base pay" means the Tier 1 employee's annualized | ||||||
14 | rate of salary as of June 30, 2018. For a person returning to | ||||||
15 | active service as a Tier 1 employee after June 30, 2018, | ||||||
16 | however, "base pay" means the employee's annualized rate of | ||||||
17 | salary as of the employee's last date of service prior to July | ||||||
18 | 1, 2018. The System shall calculate the base pay of each Tier 1 | ||||||
19 | employee pursuant to this Section.
| ||||||
20 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been
held unconstitutional)
| ||||||
23 | Sec. 2-108. Salary. "Salary": |
| |||||||
| |||||||
1 | (1) For members of the General Assembly,
the total | ||||||
2 | compensation paid to the member by the State for one
year of | ||||||
3 | service, including the additional amounts, if any, paid to
the | ||||||
4 | member as an officer pursuant to Section 1 of "An Act
in | ||||||
5 | relation to the compensation and emoluments of the members of | ||||||
6 | the
General Assembly", approved December 6, 1907, as now or | ||||||
7 | hereafter
amended.
| ||||||
8 | (2) For the State executive officers specified
in Section | ||||||
9 | 2-105, the total compensation paid to the member for one year
| ||||||
10 | of service.
| ||||||
11 | (3) For members of the System who are participants under | ||||||
12 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
13 | of the House of
Representatives or Secretary or Assistant | ||||||
14 | Secretary of the Senate, the
total compensation paid to the | ||||||
15 | member for one year of service, but not to
exceed the salary of | ||||||
16 | the highest salaried officer of the General Assembly.
| ||||||
17 | However, in the event that federal law results in any | ||||||
18 | participant
receiving imputed income based on the value of | ||||||
19 | group term life insurance
provided by the State, such imputed | ||||||
20 | income shall not be included in salary
for the purposes of this | ||||||
21 | Article.
| ||||||
22 | Notwithstanding any other provision of this Section, | ||||||
23 | "salary" does not include any future increase in income that is | ||||||
24 | offered for service to a Tier 1 employee under this Article | ||||||
25 | pursuant to the condition set forth in subsection (c) of | ||||||
26 | Section 2-110.3 and accepted under that condition by a Tier 1 |
| |||||||
| |||||||
1 | employee who has made the election under paragraph (2) of | ||||||
2 | subsection (a) of Section 2-110.3. | ||||||
3 | Notwithstanding any other provision of this Section, | ||||||
4 | "salary" does not include any consideration payment made to a | ||||||
5 | Tier 1 employee. | ||||||
6 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| ||||||
7 | (40 ILCS 5/2-110.3 new) | ||||||
8 | Sec. 2-110.3. Election by Tier 1 employees. | ||||||
9 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
10 | election either: | ||||||
11 | (1) to agree to delay his or her eligibility for | ||||||
12 | automatic annual increases in retirement annuity as | ||||||
13 | provided in subsection (a-1) of Section 2-119.1 and to have | ||||||
14 | the amount of the automatic annual increases in his or her | ||||||
15 | retirement annuity and survivor's annuity that are | ||||||
16 | otherwise provided for in this Article calculated, | ||||||
17 | instead, as provided in subsection (a-1) of Section | ||||||
18 | 2-119.1; or | ||||||
19 | (2) to not agree to paragraph (1) of this subsection. | ||||||
20 | The election required under this subsection (a) shall be | ||||||
21 | made by each active Tier 1 employee no earlier than January 1, | ||||||
22 | 2018 and no later than March 31, 2018, except that a person who | ||||||
23 | returns to active service as a Tier 1 employee under this | ||||||
24 | Article on or after January 1, 2018 and has not yet made an | ||||||
25 | election under this Section must make the election under this |
| |||||||
| |||||||
1 | subsection (a) within 60 days after returning to active service | ||||||
2 | as a Tier 1 employee. | ||||||
3 | If a Tier 1 employee fails for any reason to make a | ||||||
4 | required election under this subsection within the time | ||||||
5 | specified, then the employee shall be deemed to have made the | ||||||
6 | election under paragraph (2) of this subsection. | ||||||
7 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
8 | court or a court of competent jurisdiction pending the entry of | ||||||
9 | a final and unappealable decision, and this Section is | ||||||
10 | determined to be constitutional or otherwise valid by a final | ||||||
11 | unappealable decision of an Illinois court or a court of | ||||||
12 | competent jurisdiction, then the election procedure set forth | ||||||
13 | in subsection (a) of this Section shall commence on the 180th | ||||||
14 | calendar day after the date of the issuance of the final | ||||||
15 | unappealable decision and shall conclude at the end of the | ||||||
16 | 270th calendar day after that date. | ||||||
17 | (a-10) All elections under subsection (a) that are made or | ||||||
18 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
19 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
20 | after July 1, 2018 shall take effect on the first day of the | ||||||
21 | month following the month in which the election is made or | ||||||
22 | deemed to be made. | ||||||
23 | (b) As adequate and legal consideration provided under this | ||||||
24 | amendatory Act of the 100th General Assembly for making an | ||||||
25 | election under paragraph (1) of subsection (a) of this Section, | ||||||
26 | the State of Illinois shall be expressly and irrevocably |
| |||||||
| |||||||
1 | prohibited from offering any future increases in income to a | ||||||
2 | Tier 1 employee who has made an election under paragraph (1) of | ||||||
3 | subsection (a) of this Section on the condition of not | ||||||
4 | constituting salary under Section 2-108. | ||||||
5 | As adequate and legal consideration provided under this | ||||||
6 | amendatory Act of the 100th General Assembly for making an | ||||||
7 | election under paragraph (1) of subsection (a) of this Section, | ||||||
8 | each Tier 1 employee who has made an election under paragraph | ||||||
9 | (1) of subsection (a) of this Section shall receive a | ||||||
10 | consideration payment equal to 10% of the contributions made by | ||||||
11 | or on behalf of the employee under Section 2-126 before the | ||||||
12 | effective date of that election. The State Comptroller shall | ||||||
13 | pay the consideration payment to the Tier 1 employee out of | ||||||
14 | funds appropriated for that purpose under Section 1.9 of the | ||||||
15 | State Pension Funds Continuing Appropriation Act. The System | ||||||
16 | shall calculate the amount of each consideration payment and, | ||||||
17 | by July 1, 2018, shall certify to the State Comptroller the | ||||||
18 | amount of the consideration payment, together with the name, | ||||||
19 | address, and any other available payment information of the | ||||||
20 | Tier 1 employee as found in the records of the System. The | ||||||
21 | System shall make additional calculations and certifications | ||||||
22 | of consideration payments to the State Comptroller as the | ||||||
23 | System deems necessary. | ||||||
24 | (c) A Tier 1 employee who makes the election under | ||||||
25 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
26 | subject to paragraph (1) of subsection (a) of this Section. |
| |||||||
| |||||||
1 | However, each future increase in income offered for service as | ||||||
2 | a member under this Article to a Tier 1 employee who has made | ||||||
3 | the election under paragraph (2) of subsection (a) of this | ||||||
4 | Section shall be offered expressly and irrevocably on the | ||||||
5 | condition of not constituting salary under Section 2-108 and | ||||||
6 | that the Tier 1 employee's acceptance of the offered future | ||||||
7 | increase in income shall constitute his or her agreement to | ||||||
8 | that condition. | ||||||
9 | (d) The System shall make a good faith effort to contact | ||||||
10 | each Tier 1 employee subject to this Section. The System shall | ||||||
11 | mail information describing the required election to each Tier | ||||||
12 | 1 employee by United States Postal Service mail to his or her | ||||||
13 | last known address on file with the System. If the Tier 1 | ||||||
14 | employee is not responsive to other means of contact, it is | ||||||
15 | sufficient for the System to publish the details of any | ||||||
16 | required elections on its website or to publish those details | ||||||
17 | in a regularly published newsletter or other existing public | ||||||
18 | forum. | ||||||
19 | Tier 1 employees who are subject to this Section shall be | ||||||
20 | provided with an election packet containing information | ||||||
21 | regarding their options, as well as the forms necessary to make | ||||||
22 | the required election. Upon request, the System shall offer | ||||||
23 | Tier 1 employees an opportunity to receive information from the | ||||||
24 | System before making the required election. The information may | ||||||
25 | be provided through video materials, group presentations, | ||||||
26 | individual consultation with a member or authorized |
| |||||||
| |||||||
1 | representative of the System in person or by telephone or other | ||||||
2 | electronic means, or any combination of those methods. The | ||||||
3 | System shall not provide advice or counseling with respect to | ||||||
4 | which election a Tier 1 employee should make or specific to the | ||||||
5 | legal or tax circumstances of or consequences to the Tier 1 | ||||||
6 | employee. | ||||||
7 | The System shall inform Tier 1 employees in the election | ||||||
8 | packet required under this subsection that the Tier 1 employee | ||||||
9 | may also wish to obtain information and counsel relating to the | ||||||
10 | election required under this Section from any other available | ||||||
11 | source, including, but not limited to, labor organizations and | ||||||
12 | private counsel. | ||||||
13 | In no event shall the System, its staff, or the Board be | ||||||
14 | held liable for any information given to a member regarding the | ||||||
15 | elections under this Section. The System shall coordinate with | ||||||
16 | the Illinois Department of Central Management Services and each | ||||||
17 | other retirement system administering an election in | ||||||
18 | accordance with this amendatory Act of the 100th General | ||||||
19 | Assembly to provide information concerning the impact of the | ||||||
20 | election set forth in this Section. | ||||||
21 | (e) Notwithstanding any other provision of law, each future | ||||||
22 | increase in income offered by the State of Illinois for service | ||||||
23 | as a member must be offered expressly and irrevocably on the | ||||||
24 | condition of not constituting "salary" under Section 2-108 to | ||||||
25 | any Tier 1 employee who has made an election under paragraph | ||||||
26 | (2) of subsection (a) of this Section. The offer shall also |
| |||||||
| |||||||
1 | provide that the Tier 1 employee's acceptance of the offered | ||||||
2 | future increase in income shall constitute his or her agreement | ||||||
3 | to the condition set forth in this subsection. | ||||||
4 | For purposes of legislative intent, the condition set forth | ||||||
5 | in this subsection shall be construed in a manner that ensures | ||||||
6 | that the condition is not violated or circumvented through any | ||||||
7 | contrivance of any kind. | ||||||
8 | (f) A member's election under this Section is not a | ||||||
9 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
10 | of this Code. | ||||||
11 | (g) No provision of this Section shall be interpreted in a | ||||||
12 | way that would cause the System to cease to be a qualified plan | ||||||
13 | under Section 401(a) of the Internal Revenue Code of 1986. The | ||||||
14 | provisions of this Section shall be subject to and implemented | ||||||
15 | in a manner that complies with Section 11 of Article IV of the | ||||||
16 | Illinois Constitution. | ||||||
17 | (h) If an election created by this amendatory Act in any | ||||||
18 | other Article of this Code or any change deriving from that | ||||||
19 | election is determined to be unconstitutional or otherwise | ||||||
20 | invalid by a final unappealable decision of an Illinois court | ||||||
21 | or a court of competent jurisdiction, the invalidity of that | ||||||
22 | provision shall not in any way affect the validity of this | ||||||
23 | Section or the changes deriving from the election required | ||||||
24 | under this Section.
| ||||||
25 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
| |||||||
| |||||||
1 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
2 | which has been
held unconstitutional)
| ||||||
3 | Sec. 2-119.1. Automatic increase in retirement annuity.
| ||||||
4 | (a) Except as provided in subsection (a-1), a A participant | ||||||
5 | who retires after June 30, 1967, and who has not
received an | ||||||
6 | initial increase under this Section before the effective date
| ||||||
7 | of this amendatory Act of 1991, shall, in January or July next | ||||||
8 | following
the first anniversary of retirement, whichever | ||||||
9 | occurs first, and in the same
month of each year thereafter, | ||||||
10 | but in no event prior to age 60, have the amount
of the | ||||||
11 | originally granted retirement annuity increased as follows: | ||||||
12 | for each
year through 1971, 1 1/2%; for each year from 1972 | ||||||
13 | through 1979, 2%; and for
1980 and each year thereafter, 3%. | ||||||
14 | Annuitants who have received an initial
increase under this | ||||||
15 | subsection prior to the effective date of this amendatory
Act | ||||||
16 | of 1991 shall continue to receive their annual increases in the | ||||||
17 | same month
as the initial increase.
| ||||||
18 | (a-1) Notwithstanding any other provision of this Article, | ||||||
19 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
20 | of subsection (a) of Section 2-110.3: | ||||||
21 | (1) The initial increase in retirement annuity under | ||||||
22 | this Section shall occur on the January 1 occurring either | ||||||
23 | on or after the attainment of age 67 or the fifth | ||||||
24 | anniversary of the annuity start date, whichever is | ||||||
25 | earlier. | ||||||
26 | (2) The amount of each automatic annual increase in |
| |||||||
| |||||||
1 | retirement annuity or survivor's annuity occurring on or | ||||||
2 | after the effective date of that election shall be | ||||||
3 | calculated as a percentage of the originally granted | ||||||
4 | retirement annuity or survivor's annuity, equal to 3% or | ||||||
5 | one-half the annual unadjusted percentage increase (but | ||||||
6 | not less than zero) in the consumer price index-u for the | ||||||
7 | 12 months ending with the September preceding each November | ||||||
8 | 1, whichever is less. If the annual unadjusted percentage | ||||||
9 | change in the consumer price index-u for the 12 months | ||||||
10 | ending with the September preceding each November 1 is zero | ||||||
11 | or there is a decrease, then the annuity shall not be | ||||||
12 | increased. | ||||||
13 | For the purposes of this Section, "consumer price index-u" | ||||||
14 | means
the index published by the Bureau of Labor Statistics of | ||||||
15 | the United States
Department of Labor that measures the average | ||||||
16 | change in prices of goods and
services purchased by all urban | ||||||
17 | consumers, United States city average, all
items, 1982-84 = | ||||||
18 | 100. The new amount resulting from each annual adjustment
shall | ||||||
19 | be determined by the Public Pension Division of the Department | ||||||
20 | of Insurance and made available to the board of the retirement | ||||||
21 | system by November 1 of each year. | ||||||
22 | (b) Beginning January 1, 1990, for eligible participants | ||||||
23 | who remain
in service after attaining 20 years of creditable | ||||||
24 | service, the 3% increases
provided under subsection (a) shall | ||||||
25 | begin to accrue on the January 1 next
following the date upon | ||||||
26 | which the participant (1) attains age 55, or (2)
attains 20 |
| |||||||
| |||||||
1 | years of creditable service, whichever occurs later, and shall
| ||||||
2 | continue to accrue while the participant remains in service; | ||||||
3 | such increases
shall become payable on January 1 or July 1, | ||||||
4 | whichever occurs first, next
following the first anniversary of | ||||||
5 | retirement. For any person who has service
credit in the System | ||||||
6 | for the entire period from January 15, 1969 through
December | ||||||
7 | 31, 1992, regardless of the date of termination of service, the
| ||||||
8 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
9 | be deemed to
mean age 50.
| ||||||
10 | This subsection (b) does not apply to any person who first | ||||||
11 | becomes a
member of the System after August 8, 2003 ( the | ||||||
12 | effective date of Public Act 93-494) this amendatory Act of
the | ||||||
13 | 93rd General Assembly .
| ||||||
14 | (b-5) Notwithstanding any other provision of this Article, | ||||||
15 | a participant who first becomes a participant on or after | ||||||
16 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
17 | shall, in January or July next following the first anniversary | ||||||
18 | of retirement, whichever occurs first, and in the same month of | ||||||
19 | each year thereafter, but in no event prior to age 67, have the | ||||||
20 | amount of the retirement annuity then being paid increased by | ||||||
21 | 3% or the annual unadjusted percentage increase in the Consumer | ||||||
22 | Price Index for All Urban Consumers as determined by the Public | ||||||
23 | Pension Division of the Department of Insurance under | ||||||
24 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
25 | (c) The foregoing provisions relating to automatic | ||||||
26 | increases are not
applicable to a participant who retires |
| |||||||
| |||||||
1 | before having made contributions
(at the rate prescribed in | ||||||
2 | Section 2-126) for automatic increases for less
than the | ||||||
3 | equivalent of one full year. However, in order to be eligible | ||||||
4 | for
the automatic increases, such a participant may make | ||||||
5 | arrangements to pay
to the system the amount required to bring | ||||||
6 | the total contributions for the
automatic increase to the | ||||||
7 | equivalent of one year's contributions based upon
his or her | ||||||
8 | last salary.
| ||||||
9 | (d) A participant who terminated service prior to July 1, | ||||||
10 | 1967, with at
least 14 years of service is entitled to an | ||||||
11 | increase in retirement annuity
beginning January, 1976, and to | ||||||
12 | additional increases in January of each
year thereafter.
| ||||||
13 | The initial increase shall be 1 1/2% of the originally | ||||||
14 | granted retirement
annuity multiplied by the number of full | ||||||
15 | years that the annuitant was in
receipt of such annuity prior | ||||||
16 | to January 1, 1972, plus 2% of the originally
granted | ||||||
17 | retirement annuity for each year after that date. The | ||||||
18 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
19 | originally granted
retirement annuity for each year through | ||||||
20 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
21 | (e) Beginning January 1, 1990, and except as provided in | ||||||
22 | subsection (a-1), all automatic annual increases payable
under | ||||||
23 | this Section shall be calculated as a percentage of the total | ||||||
24 | annuity
payable at the time of the increase, including previous | ||||||
25 | increases granted
under this Article.
| ||||||
26 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been
held unconstitutional)
| ||||||
4 | Sec. 2-124. Contributions by State.
| ||||||
5 | (a) The State shall make contributions to the System by
| ||||||
6 | appropriations of amounts which, together with the | ||||||
7 | contributions of
participants, interest earned on investments, | ||||||
8 | and other income
will meet the cost of maintaining and | ||||||
9 | administering the System on a 90%
funded basis in accordance | ||||||
10 | with actuarial recommendations.
| ||||||
11 | (b) The Board shall determine the amount of State
| ||||||
12 | contributions required for each fiscal year on the basis of the
| ||||||
13 | actuarial tables and other assumptions adopted by the Board and | ||||||
14 | the
prescribed rate of interest, using the formula in | ||||||
15 | subsection (c).
| ||||||
16 | (c) For State fiscal years 2018 through 2045 (except as | ||||||
17 | otherwise provided for fiscal year 2019), the minimum | ||||||
18 | contribution to the System to be made by the State for each | ||||||
19 | fiscal year shall be an amount determined by the System to be | ||||||
20 | sufficient to bring the total assets of the System up to 90% of | ||||||
21 | the total actuarial liabilities of the System by the end of | ||||||
22 | State fiscal year 2045. In making these determinations, the | ||||||
23 | required State contribution shall be calculated each year as a | ||||||
24 | level percentage of total payroll, including payroll that is | ||||||
25 | not deemed pensionable, but excluding payroll attributable to |
| |||||||
| |||||||
1 | participants in the defined contribution plan under Section | ||||||
2 | 2-165.1, over the years remaining to and including fiscal year | ||||||
3 | 2045 and shall be determined under the projected unit credit | ||||||
4 | actuarial cost method. | ||||||
5 | For State fiscal year 2019: | ||||||
6 | (1) The initial calculation and certification shall be | ||||||
7 | based on the amount determined above. | ||||||
8 | (2) For purposes of the recertification due on or | ||||||
9 | before May 1, 2018, the recalculation of the required State | ||||||
10 | contribution for fiscal year 2019 shall take into account | ||||||
11 | the effect on the System's liabilities of the elections | ||||||
12 | made under Section 2-110.3. | ||||||
13 | (3) For purposes of the recertification due on or | ||||||
14 | before October 1, 2018, the total required State | ||||||
15 | contribution for fiscal year 2019 shall be reduced by the | ||||||
16 | amount of the consideration payments made to Tier 1 | ||||||
17 | employees who made the election under paragraph (1) of | ||||||
18 | subsection (a) of Section 2-110.3. | ||||||
19 | Beginning in State fiscal year 2018, any increase or | ||||||
20 | decrease in State contribution over the prior fiscal year due | ||||||
21 | exclusively to changes in actuarial or investment assumptions | ||||||
22 | adopted by the Board shall be included in the State | ||||||
23 | contribution to the System, as a percentage of the applicable | ||||||
24 | employee payroll, and shall be increased in equal annual | ||||||
25 | increments so that by the State fiscal year occurring 5 years | ||||||
26 | after the adoption of the actuarial or investment assumptions, |
| |||||||
| |||||||
1 | the State is contributing at the rate otherwise required under | ||||||
2 | this Section. | ||||||
3 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
4 | contribution
to the System to be made by the State for each | ||||||
5 | fiscal year shall be an amount
determined by the System to be | ||||||
6 | sufficient to bring the total assets of the
System up to 90% of | ||||||
7 | the total actuarial liabilities of the System by the end of
| ||||||
8 | State fiscal year 2045. In making these determinations, the | ||||||
9 | required State
contribution shall be calculated each year as a | ||||||
10 | level percentage of payroll
over the years remaining to and | ||||||
11 | including fiscal year 2045 and shall be
determined under the | ||||||
12 | projected unit credit actuarial cost method.
| ||||||
13 | For State fiscal years 1996 through 2005, the State | ||||||
14 | contribution to
the System, as a percentage of the applicable | ||||||
15 | employee payroll, shall be
increased in equal annual increments | ||||||
16 | so that by State fiscal year 2011, the
State is contributing at | ||||||
17 | the rate required under this Section.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2006 is | ||||||
20 | $4,157,000.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State
contribution for State fiscal year 2007 is | ||||||
23 | $5,220,300.
| ||||||
24 | For each of State fiscal years 2008 through 2009, the State | ||||||
25 | contribution to
the System, as a percentage of the applicable | ||||||
26 | employee payroll, shall be
increased in equal annual increments |
| |||||||
| |||||||
1 | from the required State contribution for State fiscal year | ||||||
2 | 2007, so that by State fiscal year 2011, the
State is | ||||||
3 | contributing at the rate otherwise required under this Section.
| ||||||
4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State contribution for State fiscal year 2010 is | ||||||
6 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
7 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
8 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
9 | expenses determined by the System's share of total bond | ||||||
10 | proceeds, (ii) any amounts received from the General Revenue | ||||||
11 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
12 | proceeds due to the issuance of discounted bonds, if | ||||||
13 | applicable. | ||||||
14 | Notwithstanding any other provision of this Article, the
| ||||||
15 | total required State contribution for State fiscal year 2011 is
| ||||||
16 | the amount recertified by the System on or before April 1, 2011 | ||||||
17 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
18 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
19 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
20 | bond sale
expenses determined by the System's share of total | ||||||
21 | bond
proceeds, (ii) any amounts received from the General | ||||||
22 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
23 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
24 | applicable. | ||||||
25 | Beginning in State fiscal year 2046, the minimum State | ||||||
26 | contribution for
each fiscal year shall be the amount needed to |
| |||||||
| |||||||
1 | maintain the total assets of
the System at 90% of the total | ||||||
2 | actuarial liabilities of the System.
| ||||||
3 | Amounts received by the System pursuant to Section 25 of | ||||||
4 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
5 | Finance Act in any fiscal year do not reduce and do not | ||||||
6 | constitute payment of any portion of the minimum State | ||||||
7 | contribution required under this Article in that fiscal year. | ||||||
8 | Such amounts shall not reduce, and shall not be included in the | ||||||
9 | calculation of, the required State contributions under this | ||||||
10 | Article in any future year until the System has reached a | ||||||
11 | funding ratio of at least 90%. A reference in this Article to | ||||||
12 | the "required State contribution" or any substantially similar | ||||||
13 | term does not include or apply to any amounts payable to the | ||||||
14 | System under Section 25 of the Budget Stabilization Act.
| ||||||
15 | Notwithstanding any other provision of this Section, the | ||||||
16 | required State
contribution for State fiscal year 2005 and for | ||||||
17 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
18 | under this Section and
certified under Section 2-134, shall not | ||||||
19 | exceed an amount equal to (i) the
amount of the required State | ||||||
20 | contribution that would have been calculated under
this Section | ||||||
21 | for that fiscal year if the System had not received any | ||||||
22 | payments
under subsection (d) of Section 7.2 of the General | ||||||
23 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
24 | total debt service payments for that fiscal
year on the bonds | ||||||
25 | issued in fiscal year 2003 for the purposes of that Section | ||||||
26 | 7.2, as determined
and certified by the Comptroller, that is |
| |||||||
| |||||||
1 | the same as the System's portion of
the total moneys | ||||||
2 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
3 | Obligation Bond Act. In determining this maximum for State | ||||||
4 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
5 | in item (i) shall be increased, as a percentage of the | ||||||
6 | applicable employee payroll, in equal increments calculated | ||||||
7 | from the sum of the required State contribution for State | ||||||
8 | fiscal year 2007 plus the applicable portion of the State's | ||||||
9 | total debt service payments for fiscal year 2007 on the bonds | ||||||
10 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
11 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
12 | 2011, the
State is contributing at the rate otherwise required | ||||||
13 | under this Section.
| ||||||
14 | (d) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (e) For purposes of determining the required State | ||||||
26 | contribution to the system for a particular year, the actuarial |
| |||||||
| |||||||
1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the system's actuarially assumed rate of return. | ||||||
3 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
4 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
5 | 7-13-12.)
| ||||||
6 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| ||||||
7 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
8 | which has been
held unconstitutional)
| ||||||
9 | Sec. 2-126. Contributions by participants.
| ||||||
10 | (a) Each participant shall contribute toward the cost of | ||||||
11 | his or her
retirement annuity a percentage of each payment of | ||||||
12 | salary received by him or
her for service as a member as | ||||||
13 | follows: for service between October 31, 1947
and January 1, | ||||||
14 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
15 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
16 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
17 | service after December 31, 1981, 8 1/2%.
| ||||||
18 | (b) Beginning August 2, 1949, each male participant, and | ||||||
19 | from July 1,
1971, each female participant shall contribute | ||||||
20 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
21 | A participant who has no eligible survivor's annuity | ||||||
22 | beneficiary may elect
to cease making contributions for | ||||||
23 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
24 | shall not be payable upon the death of a person who has
made | ||||||
25 | this election, unless prior to that death the election has been |
| |||||||
| |||||||
1 | revoked
and the amount of the contributions that would have | ||||||
2 | been paid under this
subsection in the absence of the election | ||||||
3 | is paid to the System, together
with interest at the rate of 4% | ||||||
4 | per year from the date the contributions
would have been made | ||||||
5 | to the date of payment.
| ||||||
6 | (c) Beginning July 1, 1967, each participant shall | ||||||
7 | contribute 1% of
salary towards the cost of automatic increase | ||||||
8 | in annuity provided in
Section 2-119.1. These contributions | ||||||
9 | shall be made concurrently with
contributions for retirement | ||||||
10 | annuity purposes.
| ||||||
11 | (d) In addition, each participant serving as an officer of | ||||||
12 | the General
Assembly shall contribute, for the same purposes | ||||||
13 | and at the same rates
as are required of a regular participant, | ||||||
14 | on each additional payment
received as an officer. If the | ||||||
15 | participant serves as an
officer for at least 2 but less than 4 | ||||||
16 | years, he or she shall
contribute an amount equal to the amount | ||||||
17 | that would have been contributed
had the participant served as | ||||||
18 | an officer for 4 years. Persons who serve
as officers in the | ||||||
19 | 87th General Assembly but cannot receive the additional
payment | ||||||
20 | to officers because of the ban on increases in salary during | ||||||
21 | their
terms may nonetheless make contributions based on those | ||||||
22 | additional payments
for the purpose of having the additional | ||||||
23 | payments included in their highest
salary for annuity purposes; | ||||||
24 | however, persons electing to make these
additional | ||||||
25 | contributions must also pay an amount representing the
| ||||||
26 | corresponding employer contributions, as calculated by the |
| |||||||
| |||||||
1 | System.
| ||||||
2 | (e) Notwithstanding any other provision of this Article, | ||||||
3 | the required contribution of a participant who first becomes a | ||||||
4 | participant on or after January 1, 2011 shall not exceed the | ||||||
5 | contribution that would be due under this Article if that | ||||||
6 | participant's highest salary for annuity purposes were | ||||||
7 | $106,800, plus any increases in that amount under Section | ||||||
8 | 2-108.1. | ||||||
9 | (f) Beginning July 1, 2018 or the effective date of the | ||||||
10 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
11 | (a) of Section 2-110.3, whichever is later, in lieu of the | ||||||
12 | contributions otherwise required under this Section, each Tier | ||||||
13 | 1 employee who made the election under paragraph (1) of | ||||||
14 | subsection (a) of Section 2-110.3 shall contribute 8.5% of each | ||||||
15 | payment of salary toward the cost of his or her retirement | ||||||
16 | annuity and 1.85% of each payment of salary toward the cost of | ||||||
17 | the survivor's annuity. | ||||||
18 | (g) Notwithstanding subsection (f) of this Section, | ||||||
19 | beginning July 1, 2018 or the effective date of the Tier 1 | ||||||
20 | employee's election under paragraph (1) of subsection (a) of | ||||||
21 | Section 2-110.3, whichever is later, in lieu of the | ||||||
22 | contributions otherwise required under this Section, each Tier | ||||||
23 | 1 employee who made the election under paragraph (1) of | ||||||
24 | subsection (a) of Section 2-110.3 and has elected to cease | ||||||
25 | making contributions for survivor's annuity under subsection | ||||||
26 | (b) of this Section, shall contribute 8.55% of each payment of |
| |||||||
| |||||||
1 | salary toward the cost of his or her retirement annuity. | ||||||
2 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
3 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
4 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
5 | which has been
held unconstitutional)
| ||||||
6 | Sec. 2-134. To certify required State contributions and | ||||||
7 | submit vouchers.
| ||||||
8 | (a) The Board shall certify to the Governor on or before | ||||||
9 | December 15 of each
year until December 15, 2011 the amount of | ||||||
10 | the required State contribution to the System for the next
| ||||||
11 | fiscal year and shall specifically identify the System's | ||||||
12 | projected State normal cost for that fiscal year. The | ||||||
13 | certification shall include a copy of the actuarial
| ||||||
14 | recommendations upon which it is based and shall specifically | ||||||
15 | identify the System's projected State normal cost for that | ||||||
16 | fiscal year.
| ||||||
17 | On or before November 1 of each year, beginning November 1, | ||||||
18 | 2012, the Board shall submit to the State Actuary, the | ||||||
19 | Governor, and the General Assembly a proposed certification of | ||||||
20 | the amount of the required State contribution to the System for | ||||||
21 | the next fiscal year, along with all of the actuarial | ||||||
22 | assumptions, calculations, and data upon which that proposed | ||||||
23 | certification is based. On or before January 1 of each year | ||||||
24 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
25 | preliminary report concerning the proposed certification and |
| |||||||
| |||||||
1 | identifying, if necessary, recommended changes in actuarial | ||||||
2 | assumptions that the Board must consider before finalizing its | ||||||
3 | certification of the required State contributions. On or before | ||||||
4 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
5 | shall certify to the Governor and the General Assembly the | ||||||
6 | amount of the required State contribution for the next fiscal | ||||||
7 | year. The Board's certification must note any deviations from | ||||||
8 | the State Actuary's recommended changes, the reason or reasons | ||||||
9 | for not following the State Actuary's recommended changes, and | ||||||
10 | the fiscal impact of not following the State Actuary's | ||||||
11 | recommended changes on the required State contribution. | ||||||
12 | On or before May 1, 2004, the Board shall recalculate and | ||||||
13 | recertify to
the Governor the amount of the required State | ||||||
14 | contribution to the System for
State fiscal year 2005, taking | ||||||
15 | into account the amounts appropriated to and
received by the | ||||||
16 | System under subsection (d) of Section 7.2 of the General
| ||||||
17 | Obligation Bond Act.
| ||||||
18 | On or before July 1, 2005, the Board shall recalculate and | ||||||
19 | recertify
to the Governor the amount of the required State
| ||||||
20 | contribution to the System for State fiscal year 2006, taking | ||||||
21 | into account the changes in required State contributions made | ||||||
22 | by this amendatory Act of the 94th General Assembly.
| ||||||
23 | On or before April 1, 2011, the Board shall recalculate and | ||||||
24 | recertify to the Governor the amount of the required State | ||||||
25 | contribution to the System for State fiscal year 2011, applying | ||||||
26 | the changes made by Public Act 96-889 to the System's assets |
| |||||||
| |||||||
1 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
2 | was approved on that date. | ||||||
3 | As soon as practical after the effective date of this | ||||||
4 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
5 | recalculate and recertify to the State Actuary, the Governor, | ||||||
6 | and the General Assembly the amount of the State contribution | ||||||
7 | to the System for State fiscal year 2018, taking into account | ||||||
8 | the changes in required State contributions made by this | ||||||
9 | amendatory Act of the 100th General Assembly. The State Actuary | ||||||
10 | shall review the assumptions and valuations underlying the | ||||||
11 | Board's revised certification and issue a preliminary report | ||||||
12 | concerning the proposed recertification and identifying, if | ||||||
13 | necessary, recommended changes in actuarial assumptions that | ||||||
14 | the Board must consider before finalizing its certification of | ||||||
15 | the required State contributions. The Board's final | ||||||
16 | certification must note any deviations from the State Actuary's | ||||||
17 | recommended changes, the reason or reasons for not following | ||||||
18 | the State Actuary's recommended changes, and the fiscal impact | ||||||
19 | of not following the State Actuary's recommended changes on the | ||||||
20 | required State contribution. | ||||||
21 | On or before May 1, 2018, the Board shall recalculate and | ||||||
22 | recertify
to the Governor and the General Assembly the amount | ||||||
23 | of the required State
contribution to the System for State | ||||||
24 | fiscal year 2019, taking into account the effect on the | ||||||
25 | System's liabilities of the elections made under Section | ||||||
26 | 2-110.3. |
| |||||||
| |||||||
1 | On or before October 1, 2018, the Board shall recalculate | ||||||
2 | and recertify to the Governor and the General Assembly the | ||||||
3 | amount of the required State contribution to the System for | ||||||
4 | State fiscal year 2019, taking into account the reduction | ||||||
5 | specified under item (3) of subsection (c) of Section 2-124. | ||||||
6 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
7 | possible after the
15th day of each month the Board shall | ||||||
8 | submit vouchers for payment of State
contributions to the | ||||||
9 | System, in a total monthly amount of one-twelfth of the
| ||||||
10 | required annual State contribution certified under subsection | ||||||
11 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
12 | General Assembly through June 30, 2004, the Board shall not
| ||||||
13 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
14 | of the
fiscal year 2004 certified contribution amount | ||||||
15 | determined
under this Section after taking into consideration | ||||||
16 | the transfer to the
System under subsection (d) of Section | ||||||
17 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
18 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
19 | funds appropriated to the System for that fiscal year. If in | ||||||
20 | any month
the amount remaining unexpended from all other | ||||||
21 | appropriations to the System for
the applicable fiscal year | ||||||
22 | (including the appropriations to the System under
Section 8.12 | ||||||
23 | of the State Finance Act and Section 1 of the State Pension | ||||||
24 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
25 | lawfully vouchered under
this Section, the difference shall be | ||||||
26 | paid from the General Revenue Fund under
the continuing |
| |||||||
| |||||||
1 | appropriation authority provided in Section 1.1 of the State
| ||||||
2 | Pension Funds Continuing Appropriation Act.
| ||||||
3 | (c) The full amount of any annual appropriation for the | ||||||
4 | System for
State fiscal year 1995 shall be transferred and made | ||||||
5 | available to the System
at the beginning of that fiscal year at | ||||||
6 | the request of the Board.
Any excess funds remaining at the end | ||||||
7 | of any fiscal year from appropriations
shall be retained by the | ||||||
8 | System as a general reserve to meet the System's
accrued | ||||||
9 | liabilities.
| ||||||
10 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
11 | 97-694, eff. 6-18-12.)
| ||||||
12 | (40 ILCS 5/2-162) | ||||||
13 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
14 | which has been
held unconstitutional)
| ||||||
15 | Sec. 2-162. Application and expiration of new benefit | ||||||
16 | increases. | ||||||
17 | (a) As used in this Section, "new benefit increase" means | ||||||
18 | an increase in the amount of any benefit provided under this | ||||||
19 | Article, or an expansion of the conditions of eligibility for | ||||||
20 | any benefit under this Article, that results from an amendment | ||||||
21 | to this Code that takes effect after the effective date of this | ||||||
22 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
23 | increase", however, does not include any benefit increase | ||||||
24 | resulting from the changes made to this Article by this | ||||||
25 | amendatory Act of the 100th General Assembly. |
| |||||||
| |||||||
1 | (b) Notwithstanding any other provision of this Code or any | ||||||
2 | subsequent amendment to this Code, every new benefit increase | ||||||
3 | is subject to this Section and shall be deemed to be granted | ||||||
4 | only in conformance with and contingent upon compliance with | ||||||
5 | the provisions of this Section.
| ||||||
6 | (c) The Public Act enacting a new benefit increase must | ||||||
7 | identify and provide for payment to the System of additional | ||||||
8 | funding at least sufficient to fund the resulting annual | ||||||
9 | increase in cost to the System as it accrues. | ||||||
10 | Every new benefit increase is contingent upon the General | ||||||
11 | Assembly providing the additional funding required under this | ||||||
12 | subsection. The Commission on Government Forecasting and | ||||||
13 | Accountability shall analyze whether adequate additional | ||||||
14 | funding has been provided for the new benefit increase and | ||||||
15 | shall report its analysis to the Public Pension Division of the | ||||||
16 | Department of Insurance Financial and Professional Regulation . | ||||||
17 | A new benefit increase created by a Public Act that does not | ||||||
18 | include the additional funding required under this subsection | ||||||
19 | is null and void. If the Public Pension Division determines | ||||||
20 | that the additional funding provided for a new benefit increase | ||||||
21 | under this subsection is or has become inadequate, it may so | ||||||
22 | certify to the Governor and the State Comptroller and, in the | ||||||
23 | absence of corrective action by the General Assembly, the new | ||||||
24 | benefit increase shall expire at the end of the fiscal year in | ||||||
25 | which the certification is made.
| ||||||
26 | (d) Every new benefit increase shall expire 5 years after |
| |||||||
| |||||||
1 | its effective date or on such earlier date as may be specified | ||||||
2 | in the language enacting the new benefit increase or provided | ||||||
3 | under subsection (c). This does not prevent the General | ||||||
4 | Assembly from extending or re-creating a new benefit increase | ||||||
5 | by law. | ||||||
6 | (e) Except as otherwise provided in the language creating | ||||||
7 | the new benefit increase, a new benefit increase that expires | ||||||
8 | under this Section continues to apply to persons who applied | ||||||
9 | and qualified for the affected benefit while the new benefit | ||||||
10 | increase was in effect and to the affected beneficiaries and | ||||||
11 | alternate payees of such persons, but does not apply to any | ||||||
12 | other person, including without limitation a person who | ||||||
13 | continues in service after the expiration date and did not | ||||||
14 | apply and qualify for the affected benefit while the new | ||||||
15 | benefit increase was in effect.
| ||||||
16 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
17 | (40 ILCS 5/2-165.1 new) | ||||||
18 | Sec. 2-165.1. Defined contribution plan. | ||||||
19 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
20 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
21 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
22 | by the number of active Tier 1 employees on the effective date | ||||||
23 | of this Section. The defined contribution plan developed under | ||||||
24 | this Section shall be a plan that aggregates employer and | ||||||
25 | employee contributions in individual participant accounts |
| |||||||
| |||||||
1 | which, after meeting any other requirements, are used for | ||||||
2 | payouts after retirement in accordance with this Section and | ||||||
3 | any other applicable laws. | ||||||
4 | As used in this Section, "defined benefit plan" means the | ||||||
5 | retirement plan available under this Article to Tier 1 | ||||||
6 | employees who have not made the election authorized under this | ||||||
7 | Section. | ||||||
8 | (1) Under the defined contribution plan, an active
Tier | ||||||
9 | 1 employee of this System could elect to cease accruing | ||||||
10 | benefits in the defined benefit plan under this Article and | ||||||
11 | begin accruing benefits for future service in the defined | ||||||
12 | contribution plan. Service credit under the defined | ||||||
13 | contribution plan may be used for determining retirement | ||||||
14 | eligibility under the defined benefit plan. | ||||||
15 | (2) Participants in the defined contribution plan
| ||||||
16 | shall pay employee contributions at the same rate as Tier 1 | ||||||
17 | employees in this System who do not participate in the | ||||||
18 | defined contribution plan. | ||||||
19 | (3) State contributions shall be paid into the
accounts | ||||||
20 | of all participants in the defined contribution plan at a | ||||||
21 | uniform rate, expressed as a percentage of compensation and | ||||||
22 | determined for each year. This rate shall be no higher than | ||||||
23 | the employer's normal cost for Tier 1 employees in the | ||||||
24 | defined benefit plan for that year, as determined by the | ||||||
25 | System and expressed as a percentage of compensation, and | ||||||
26 | shall be no lower than 3% of compensation. The State shall |
| |||||||
| |||||||
1 | adjust this rate annually. | ||||||
2 | (4) The defined contribution plan shall require 5
years | ||||||
3 | of participation in the defined contribution plan before | ||||||
4 | vesting in State contributions. If the participant fails to | ||||||
5 | vest in them, the State contributions, and the earnings | ||||||
6 | thereon, shall be forfeited. | ||||||
7 | (5) The defined contribution plan may provide for
| ||||||
8 | participants in the plan to be eligible for defined | ||||||
9 | disability benefits. If it does, the System shall reduce | ||||||
10 | the employee contributions credited to the participant's | ||||||
11 | defined contribution plan account by an amount determined | ||||||
12 | by the System to cover the cost of offering such benefits. | ||||||
13 | (6) The defined contribution plan shall provide a
| ||||||
14 | variety of options for investments. These options shall | ||||||
15 | include investments handled by the Illinois State Board of | ||||||
16 | Investment as well as private sector investment options. | ||||||
17 | (7) The defined contribution plan shall provide a
| ||||||
18 | variety of options for payouts to retirees and their | ||||||
19 | survivors. | ||||||
20 | (8) To the extent authorized under federal law and
as | ||||||
21 | authorized by the System, the plan shall allow former | ||||||
22 | participants in the plan to transfer or roll over employee | ||||||
23 | and vested State contributions, and the earnings thereon, | ||||||
24 | into other qualified retirement plans. | ||||||
25 | (9) The System shall reduce the employee
contributions | ||||||
26 | credited to the participant's defined contribution plan |
| |||||||
| |||||||
1 | account by an amount determined by the System to cover the | ||||||
2 | cost of offering these benefits and any applicable | ||||||
3 | administrative fees. | ||||||
4 | (b) Only persons who are active Tier 1 employees of the | ||||||
5 | System on the effective date of this Section are eligible to | ||||||
6 | participate in the defined contribution plan. Participation in | ||||||
7 | the defined contribution plan shall be limited to the first 5% | ||||||
8 | of eligible persons who elect to participate. The election to | ||||||
9 | participate in the defined contribution plan is voluntary and | ||||||
10 | irrevocable. | ||||||
11 | (c) An eligible active Tier 1 employee may irrevocably | ||||||
12 | elect to participate in the defined contribution plan by filing | ||||||
13 | with the System a written application to participate that is | ||||||
14 | received by the System prior to its determination that 5% of | ||||||
15 | eligible persons have elected to participate in the defined | ||||||
16 | contribution plan. | ||||||
17 | When the System first determines that 5% of eligible | ||||||
18 | persons have elected to participate in the defined contribution | ||||||
19 | plan, the System shall provide notice to previously eligible | ||||||
20 | employees that the plan is no longer available and shall cease | ||||||
21 | accepting applications to participate. | ||||||
22 | (d) The System shall make a good faith effort to contact | ||||||
23 | each active Tier 1 employee who is eligible to participate in | ||||||
24 | the defined contribution plan. The System shall mail | ||||||
25 | information describing the option to join the defined | ||||||
26 | contribution plan to each of these employees to his or her last |
| |||||||
| |||||||
1 | known address on file with the System. If the employee is not | ||||||
2 | responsive to other means of contact, it is sufficient for the | ||||||
3 | System to publish the details of the option on its website. | ||||||
4 | Upon request for further information describing the | ||||||
5 | option, the System shall provide employees with information | ||||||
6 | from the System before exercising the option to join the plan, | ||||||
7 | including information on the impact to their vested benefits or | ||||||
8 | non-vested service. The individual consultation shall include | ||||||
9 | projections of the participant's defined benefits at | ||||||
10 | retirement or earlier termination of service and the value of | ||||||
11 | the participant's account at retirement or earlier termination | ||||||
12 | of service. The System shall not provide advice or counseling | ||||||
13 | with respect to whether the employee should exercise the | ||||||
14 | option. The System shall inform Tier 1 employees who are | ||||||
15 | eligible to participate in the defined contribution plan that | ||||||
16 | they may also wish to obtain information and counsel relating | ||||||
17 | to their option from any other available source, including but | ||||||
18 | not limited to labor organizations, private counsel, and | ||||||
19 | financial advisors. | ||||||
20 | (e) In no event shall the System, its staff, its authorized | ||||||
21 | representatives, or the Board be liable for any information | ||||||
22 | given to an employee under this Section. The System may | ||||||
23 | coordinate with the Illinois Department of Central Management | ||||||
24 | Services and other retirement systems administering a defined | ||||||
25 | contribution plan in accordance with this amendatory Act of the | ||||||
26 | 100th General Assembly to provide information concerning the |
| |||||||
| |||||||
1 | impact of the option set forth in this Section. | ||||||
2 | (f) Notwithstanding any other provision of this Section, no | ||||||
3 | person shall begin participating in the defined contribution | ||||||
4 | plan until it has attained qualified plan status and received | ||||||
5 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
6 | (g) The System shall report on its progress under this | ||||||
7 | Section, including the available details of the defined | ||||||
8 | contribution plan and the System's plans for informing eligible | ||||||
9 | Tier 1 employees about the plan, to the Governor and the | ||||||
10 | General Assembly on or before January 15, 2018. | ||||||
11 | (h) The Illinois State Board of Investments shall be the | ||||||
12 | plan sponsor for the defined contribution plan established | ||||||
13 | under this Section. | ||||||
14 | (i) The intent of this amendatory Act of the 100th General | ||||||
15 | Assembly is to ensure that the State's normal cost of | ||||||
16 | participation in the defined contribution plan is similar, and | ||||||
17 | if possible equal, to the State's normal cost of participation | ||||||
18 | in the defined benefit plan, unless a lower State's normal cost | ||||||
19 | is necessary to ensure cost neutrality. | ||||||
20 | (40 ILCS 5/2-166.1 new) | ||||||
21 | Sec. 2-166.1. Defined contribution plan; termination. If | ||||||
22 | the defined contribution plan is terminated or becomes | ||||||
23 | inoperative pursuant to law, then each participant in the plan | ||||||
24 | shall automatically be deemed to have been a contributing Tier | ||||||
25 | 1 employee in the System's defined benefit plan during the time |
| |||||||
| |||||||
1 | in which he or she participated in the defined contribution | ||||||
2 | plan, and for that purpose the System shall be entitled to | ||||||
3 | recover the amounts in the participant's defined contribution | ||||||
4 | accounts.
| ||||||
5 | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
| ||||||
6 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
7 | which has been
held unconstitutional)
| ||||||
8 | Sec. 14-103.10. Compensation.
| ||||||
9 | (a) For periods of service prior to January 1, 1978, the | ||||||
10 | full rate of salary
or wages payable to an employee for | ||||||
11 | personal services performed if he worked
the full normal | ||||||
12 | working period for his position, subject to the following
| ||||||
13 | maximum amounts: (1) prior to July 1, 1951, $400 per month or | ||||||
14 | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 | ||||||
15 | inclusive, $625 per month or $7,500
per year; (3) beginning | ||||||
16 | July 1, 1957, no limitation.
| ||||||
17 | In the case of service of an employee in a position | ||||||
18 | involving
part-time employment, compensation shall be | ||||||
19 | determined according to the
employees' earnings record.
| ||||||
20 | (b) For periods of service on and after January 1, 1978, | ||||||
21 | all
remuneration for personal services performed defined as | ||||||
22 | "wages" under
the Social Security Enabling Act, including that | ||||||
23 | part of such
remuneration which is in excess of any maximum | ||||||
24 | limitation provided in
such Act, and including any benefits | ||||||
25 | received by an employee under a sick
pay plan in effect before |
| |||||||
| |||||||
1 | January 1, 1981, but excluding lump sum salary
payments:
| ||||||
2 | (1) for vacation,
| ||||||
3 | (2) for accumulated unused sick leave,
| ||||||
4 | (3) upon discharge or dismissal,
| ||||||
5 | (4) for approved holidays.
| ||||||
6 | (c) For periods of service on or after December 16, 1978, | ||||||
7 | compensation
also includes any benefits, other than lump sum | ||||||
8 | salary payments made at
termination of employment, which an | ||||||
9 | employee receives or is eligible to
receive under a sick pay | ||||||
10 | plan authorized by law.
| ||||||
11 | (d) For periods of service after September 30, 1985, | ||||||
12 | compensation also
includes any remuneration for personal | ||||||
13 | services not included as "wages"
under the Social Security | ||||||
14 | Enabling Act, which is deducted for purposes of
participation | ||||||
15 | in a program established pursuant to Section 125 of the
| ||||||
16 | Internal Revenue Code or its successor laws.
| ||||||
17 | (e) For members for which Section 1-160 applies for periods | ||||||
18 | of service on and after January 1, 2011, all remuneration for | ||||||
19 | personal services performed defined as "wages" under the Social | ||||||
20 | Security Enabling Act, excluding remuneration that is in excess | ||||||
21 | of the annual earnings, salary, or wages of a member or | ||||||
22 | participant, as provided in subsection (b-5) of Section 1-160, | ||||||
23 | but including any benefits received by an employee under a sick | ||||||
24 | pay plan in effect before January 1, 1981.
Compensation shall | ||||||
25 | exclude lump sum salary payments: | ||||||
26 | (1) for vacation; |
| |||||||
| |||||||
1 | (2) for accumulated unused sick leave; | ||||||
2 | (3) upon discharge or dismissal; and | ||||||
3 | (4) for approved holidays. | ||||||
4 | (f) Notwithstanding the other provisions of this Section, | ||||||
5 | for service on or after July 1, 2013, "compensation"
does not | ||||||
6 | include any stipend payable to an employee for service on a | ||||||
7 | board or commission. | ||||||
8 | (g) Notwithstanding any other provision of this Section, | ||||||
9 | "compensation" does not include any future increase in income | ||||||
10 | that is offered for service by a department to a Tier 1 | ||||||
11 | employee under this Article pursuant to the condition set forth | ||||||
12 | in subsection (c) of Section 14-106.5 and accepted under that | ||||||
13 | condition by a Tier 1 employee who has made the election under | ||||||
14 | paragraph (2) of subsection (a) of Section 14-106.5. | ||||||
15 | (h) Notwithstanding any other provision of this Section, | ||||||
16 | "compensation" does not include any consideration payment made | ||||||
17 | to a Tier 1 employee. | ||||||
18 | (Source: P.A. 98-449, eff. 8-16-13.)
| ||||||
19 | (40 ILCS 5/14-103.41 new) | ||||||
20 | Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An | ||||||
21 | employee under this Article who first became a member or | ||||||
22 | participant before January 1, 2011 under any reciprocal | ||||||
23 | retirement system or pension fund established under this Code | ||||||
24 | other than a retirement system or pension fund established | ||||||
25 | under Article 2, 3, 4, 5, 6, or 18 of this Code. |
| |||||||
| |||||||
1 | (40 ILCS 5/14-103.42 new) | ||||||
2 | Sec. 14-103.42. Future increase in income. "Future | ||||||
3 | increase in income" means an increase to a Tier 1 employee's | ||||||
4 | base pay that is offered by a department to the Tier 1 employee | ||||||
5 | for service under this Article after June 30, 2019 that | ||||||
6 | qualifies as "compensation", as defined in Section 14-103.10, | ||||||
7 | or would qualify as "compensation" but for the fact that it was | ||||||
8 | offered to and accepted by the Tier 1 employee under the | ||||||
9 | condition set forth in subsection (c) of Section 14-106.5. The | ||||||
10 | term "future increase in income" includes an increase to a Tier | ||||||
11 | 1 employee's base pay that is paid to the Tier 1 employee | ||||||
12 | pursuant to an extension, amendment, or renewal of any | ||||||
13 | employment contract or collective bargaining agreement after | ||||||
14 | the effective date of this Section. | ||||||
15 | (40 ILCS 5/14-103.43 new) | ||||||
16 | Sec. 14-103.43. Base pay. As used in Section 14-103.42 of | ||||||
17 | this Code, "base pay" means the greater of either (i) the Tier | ||||||
18 | 1 employee's annualized rate of compensation as of June 30, | ||||||
19 | 2019, or (ii) the Tier 1 employee's annualized rate of | ||||||
20 | compensation immediately preceding the expiration, renewal, or | ||||||
21 | amendment of an employment contract or collective bargaining | ||||||
22 | agreement in effect on the effective date of this Section. For | ||||||
23 | a person returning to active service as a Tier 1 employee after | ||||||
24 | June 30, 2019, however, "base pay" means the employee's |
| |||||||
| |||||||
1 | annualized rate of compensation as of the employee's last date | ||||||
2 | of service prior to July 1, 2019. The System shall calculate | ||||||
3 | the base pay of each Tier 1 employee pursuant to this Section. | ||||||
4 | (40 ILCS 5/14-106.5 new) | ||||||
5 | Sec. 14-106.5. Election by Tier 1 employees. | ||||||
6 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
7 | election either: | ||||||
8 | (1) to agree to delay his or her eligibility for | ||||||
9 | automatic annual increases in retirement annuity as | ||||||
10 | provided in subsection (a-1) of Section 14-114 and to have | ||||||
11 | the amount of the automatic annual increases in his or her | ||||||
12 | retirement annuity and survivors or widow's annuity that | ||||||
13 | are otherwise provided for in this Article calculated, | ||||||
14 | instead, as provided in subsection (a-1) of Section 14-114; | ||||||
15 | or | ||||||
16 | (2) to not agree to paragraph (1) of this subsection. | ||||||
17 | The election required under this subsection (a) shall be | ||||||
18 | made by each active Tier 1 employee no earlier than January 1, | ||||||
19 | 2019 and no later than March 31, 2019, except that: | ||||||
20 | (i) a person who becomes a Tier 1 employee under this | ||||||
21 | Article on or after January 1, 2019 must make the election | ||||||
22 | under this subsection (a) within 60 days after becoming a | ||||||
23 | Tier 1 employee; and | ||||||
24 | (ii) a person who returns to active service as a Tier 1 | ||||||
25 | employee under this Article on or after January 1, 2019 and |
| |||||||
| |||||||
1 | has not yet made an election under this Section must make | ||||||
2 | the election under this subsection (a) within 60 days after | ||||||
3 | returning to active service as a Tier 1 employee. | ||||||
4 | If a Tier 1 employee fails for any reason to make a | ||||||
5 | required election under this subsection within the time | ||||||
6 | specified, then the employee shall be deemed to have made the | ||||||
7 | election under paragraph (2) of this subsection. | ||||||
8 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
9 | court or a court of competent jurisdiction pending the entry of | ||||||
10 | a final and unappealable decision, and this Section is | ||||||
11 | determined to be constitutional or otherwise valid by a final | ||||||
12 | unappealable decision of an Illinois court or a court of | ||||||
13 | competent jurisdiction, then the election procedure set forth | ||||||
14 | in subsection (a) of this Section shall commence on the 180th | ||||||
15 | calendar day after the date of the issuance of the final | ||||||
16 | unappealable decision and shall conclude at the end of the | ||||||
17 | 270th calendar day after that date. | ||||||
18 | (a-10) All elections under subsection (a) that are made or | ||||||
19 | deemed to be made before July 1, 2019 shall take effect on July | ||||||
20 | 1, 2019. Elections that are made or deemed to be made on or | ||||||
21 | after July 1, 2019 shall take effect on the first day of the | ||||||
22 | month following the month in which the election is made or | ||||||
23 | deemed to be made. | ||||||
24 | (b) As adequate and legal consideration provided under this | ||||||
25 | amendatory Act of the 100th General Assembly for making an | ||||||
26 | election under paragraph (1) of subsection (a) of this Section, |
| |||||||
| |||||||
1 | the department shall be expressly and irrevocably prohibited | ||||||
2 | from offering any future increases in income to a Tier 1 | ||||||
3 | employee who has made an election under paragraph (1) of | ||||||
4 | subsection (a) of this Section on the condition of not | ||||||
5 | constituting compensation under Section 14-103.10. | ||||||
6 | As adequate and legal consideration provided under this | ||||||
7 | amendatory Act of the 100th General Assembly for making an | ||||||
8 | election under paragraph (1) of subsection (a) of this Section, | ||||||
9 | each Tier 1 employee who has made an election under paragraph | ||||||
10 | (1) of subsection (a) of this Section shall receive a | ||||||
11 | consideration payment equal to 10% of the contributions made by | ||||||
12 | or on behalf of the employee before the effective date of that | ||||||
13 | election. The State Comptroller shall pay the consideration | ||||||
14 | payment to the Tier 1 employee out of funds appropriated for | ||||||
15 | that purpose under Section 1.9 of the State Pension Funds | ||||||
16 | Continuing Appropriation Act. The System shall calculate the | ||||||
17 | amount of each consideration payment and, by July 1, 2019, | ||||||
18 | shall certify to the State Comptroller the amount of the | ||||||
19 | consideration payment, together with the name, address, and any | ||||||
20 | other available payment information of the Tier 1 employee as | ||||||
21 | found in the records of the System. The System shall make | ||||||
22 | additional calculations and certifications of consideration | ||||||
23 | payments to the State Comptroller as it deems necessary. | ||||||
24 | (c) A Tier 1 employee who makes the election under | ||||||
25 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
26 | subject to paragraph (1) of subsection (a) of this Section. |
| |||||||
| |||||||
1 | However, each future increase in income offered by a department | ||||||
2 | under this Article to a Tier 1 employee who has made the | ||||||
3 | election under paragraph (2) of subsection (a) of this Section | ||||||
4 | shall be offered by the department expressly and irrevocably on | ||||||
5 | the condition of not constituting compensation under Section | ||||||
6 | 14-103.10 and that the Tier 1 employee's acceptance of the | ||||||
7 | offered future increase in income shall constitute his or her | ||||||
8 | agreement to that condition. | ||||||
9 | (d) The System shall make a good faith effort to contact | ||||||
10 | each Tier 1 employee subject to this Section. The System shall | ||||||
11 | mail information describing the required election to each Tier | ||||||
12 | 1 employee by United States Postal Service mail to his or her | ||||||
13 | last known address on file with the System. If the Tier 1 | ||||||
14 | employee is not responsive to other means of contact, it is | ||||||
15 | sufficient for the System to publish the details of any | ||||||
16 | required elections on its website or to publish those details | ||||||
17 | in a regularly published newsletter or other existing public | ||||||
18 | forum. | ||||||
19 | Tier 1 employees who are subject to this Section shall be | ||||||
20 | provided with an election packet containing information | ||||||
21 | regarding their options, as well as the forms necessary to make | ||||||
22 | the required election. Upon request, the System shall offer | ||||||
23 | Tier 1 employees an opportunity to receive information from the | ||||||
24 | System before making the required election. The information may | ||||||
25 | consist of video materials, group presentations, individual | ||||||
26 | consultation with a member or authorized representative of the |
| |||||||
| |||||||
1 | System in person or by telephone or other electronic means, or | ||||||
2 | any combination of those methods. The System shall not provide | ||||||
3 | advice or counseling with respect to which election a Tier 1 | ||||||
4 | employee should make or specific to the legal or tax | ||||||
5 | circumstances of or consequences to the Tier 1 employee. | ||||||
6 | The System shall inform Tier 1 employees in the election | ||||||
7 | packet required under this subsection that the Tier 1 employee | ||||||
8 | may also wish to obtain information and counsel relating to the | ||||||
9 | election required under this Section from any other available | ||||||
10 | source, including, but not limited to, labor organizations and | ||||||
11 | private counsel. | ||||||
12 | In no event shall the System, its staff, or the Board be | ||||||
13 | held liable for any information given to a member regarding the | ||||||
14 | elections under this Section. The System shall coordinate with | ||||||
15 | the Illinois Department of Central Management Services and each | ||||||
16 | other retirement system administering an election in | ||||||
17 | accordance with this amendatory Act of the 100th General | ||||||
18 | Assembly to provide information concerning the impact of the | ||||||
19 | election set forth in this Section. | ||||||
20 | (e) Notwithstanding any other provision of law, a | ||||||
21 | department under this Article is required to offer each future | ||||||
22 | increase in income expressly and irrevocably on the condition | ||||||
23 | of not constituting "compensation" under Section 14-103.10 to | ||||||
24 | any Tier 1 employee who has made an election under paragraph | ||||||
25 | (2) of subsection (a) of this Section. The offer shall also | ||||||
26 | provide that the Tier 1 employee's acceptance of the offered |
| |||||||
| |||||||
1 | future increase in income shall constitute his or her agreement | ||||||
2 | to the condition set forth in this subsection. | ||||||
3 | For purposes of legislative intent, the condition set forth | ||||||
4 | in this subsection shall be construed in a manner that ensures | ||||||
5 | that the condition is not violated or circumvented through any | ||||||
6 | contrivance of any kind. | ||||||
7 | (f) A member's election under this Section is not a | ||||||
8 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
9 | of this Code. | ||||||
10 | (g) No provision of this Section shall be interpreted in a | ||||||
11 | way that would cause the System to cease to be a qualified plan | ||||||
12 | under Section 401(a) of the Internal Revenue Code of 1986. The | ||||||
13 | provisions of this Section shall be subject to and implemented | ||||||
14 | in a manner that complies with Section 21 of Article V of the | ||||||
15 | Illinois Constitution. | ||||||
16 | (h) If an election created by this amendatory Act in any | ||||||
17 | other Article of this Code or any change deriving from that | ||||||
18 | election is determined to be unconstitutional or otherwise | ||||||
19 | invalid by a final unappealable decision of an Illinois court | ||||||
20 | or a court of competent jurisdiction, the invalidity of that | ||||||
21 | provision shall not in any way affect the validity of this | ||||||
22 | Section or the changes deriving from the election required | ||||||
23 | under this Section.
| ||||||
24 | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
| ||||||
25 | (Text of Section WITHOUT the changes made by P.A. 98-599, |
| |||||||
| |||||||
1 | which has been held unconstitutional)
| ||||||
2 | Sec. 14-114. Automatic increase in retirement annuity.
| ||||||
3 | (a) Subject to the provisions of subsections (a-1), any Any | ||||||
4 | person receiving a retirement annuity under this Article who
| ||||||
5 | retires having attained age 60, or who retires before age 60 | ||||||
6 | having at
least 35 years of creditable service, or who retires | ||||||
7 | on or after January
1, 2001 at an age which, when added to the | ||||||
8 | number of years of his or her
creditable service, equals at | ||||||
9 | least 85, shall, on January 1 next
following the first full | ||||||
10 | year of retirement, have the amount of the then fixed
and | ||||||
11 | payable monthly retirement annuity increased 3%. Any person | ||||||
12 | receiving a
retirement annuity under this Article who retires | ||||||
13 | before attainment of age 60
and with less than (i) 35 years of | ||||||
14 | creditable service if retirement
is before January 1, 2001, or | ||||||
15 | (ii) the number of years of creditable service
which, when | ||||||
16 | added to the member's age, would equal 85, if retirement is on
| ||||||
17 | or after January 1, 2001, shall have the amount of the fixed | ||||||
18 | and payable
retirement annuity increased by 3% on the January 1 | ||||||
19 | occurring on or next
following (1) attainment of age 60, or (2) | ||||||
20 | the first anniversary of retirement,
whichever occurs later. | ||||||
21 | However, for persons who receive the alternative
retirement | ||||||
22 | annuity under Section 14-110, references in this subsection (a) | ||||||
23 | to
attainment of age 60 shall be deemed to refer to attainment | ||||||
24 | of age 55. For a
person receiving early retirement incentives | ||||||
25 | under Section 14-108.3 whose
retirement annuity began after | ||||||
26 | January 1, 1992 pursuant to an extension granted
under |
| |||||||
| |||||||
1 | subsection (e) of that Section, the first anniversary of | ||||||
2 | retirement shall
be deemed to be January 1, 1993.
For a person | ||||||
3 | who retires on or after June 28, 2001 and on or before October | ||||||
4 | 1, 2001,
and whose retirement annuity is calculated, in whole | ||||||
5 | or in part, under Section
14-110 or subsection (g) or (h) of | ||||||
6 | Section 14-108, the first anniversary of
retirement shall be | ||||||
7 | deemed to be January 1, 2002.
| ||||||
8 | On each January 1 following the date of the initial | ||||||
9 | increase under this
subsection, the employee's monthly | ||||||
10 | retirement annuity shall be increased
by an additional 3%.
| ||||||
11 | Beginning January 1, 1990 , and except as provided in | ||||||
12 | subsection (a-1) , all automatic annual increases payable under
| ||||||
13 | this Section shall be calculated as a percentage of the total | ||||||
14 | annuity
payable at the time of the increase, including previous | ||||||
15 | increases granted
under this Article.
| ||||||
16 | (a-1) Notwithstanding any other provision of this Article, | ||||||
17 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
18 | of subsection (a) of Section 14-106.5: | ||||||
19 | (1) The initial increase in retirement annuity under | ||||||
20 | this Section shall occur on the January 1 occurring either | ||||||
21 | on or after the attainment of age 67 or the fifth | ||||||
22 | anniversary of the annuity start date, whichever is | ||||||
23 | earlier. | ||||||
24 | (2) The amount of each automatic annual increase in | ||||||
25 | retirement annuity or survivors or widow's annuity | ||||||
26 | occurring on or after the effective date of that election |
| |||||||
| |||||||
1 | shall be calculated as a percentage of the originally | ||||||
2 | granted retirement annuity or survivors or widow's | ||||||
3 | annuity, equal to 3% or one-half the annual unadjusted | ||||||
4 | percentage increase (but not less than zero) in the | ||||||
5 | consumer price index-u for the 12 months ending with the | ||||||
6 | September preceding each November 1, whichever is less. If | ||||||
7 | the annual unadjusted percentage change in the consumer | ||||||
8 | price index-u for the 12 months ending with the September | ||||||
9 | preceding each November 1 is zero or there is a decrease, | ||||||
10 | then the annuity shall not be increased. | ||||||
11 | For the purposes of this Section, "consumer price index-u" | ||||||
12 | means
the index published by the Bureau of Labor Statistics of | ||||||
13 | the United States
Department of Labor that measures the average | ||||||
14 | change in prices of goods and
services purchased by all urban | ||||||
15 | consumers, United States city average, all
items, 1982-84 = | ||||||
16 | 100. The new amount resulting from each annual adjustment
shall | ||||||
17 | be determined by the Public Pension Division of the Department | ||||||
18 | of Insurance and made available to the board of the retirement | ||||||
19 | system by November 1 of each year. | ||||||
20 | (b) The provisions of subsection (a) of this Section shall | ||||||
21 | be
applicable to an employee only if the employee makes the | ||||||
22 | additional
contributions required after December 31, 1969 for | ||||||
23 | the purpose of the
automatic increases for not less than the | ||||||
24 | equivalent of one full year.
If an employee becomes an | ||||||
25 | annuitant before his additional contributions
equal one full | ||||||
26 | year's contributions based on his salary at the date of
|
| |||||||
| |||||||
1 | retirement, the employee may pay the necessary balance of the
| ||||||
2 | contributions to the system, without interest, and be eligible | ||||||
3 | for the
increasing annuity authorized by this Section.
| ||||||
4 | (c) The provisions of subsection (a) of this Section shall | ||||||
5 | not be
applicable to any annuitant who is on retirement on | ||||||
6 | December 31, 1969, and
thereafter returns to State service, | ||||||
7 | unless the member has established at
least one year of | ||||||
8 | additional creditable service following reentry into service.
| ||||||
9 | (d) In addition to other increases which may be provided by | ||||||
10 | this Section,
on January 1, 1981 any annuitant who was | ||||||
11 | receiving a retirement annuity
on or before January 1, 1971 | ||||||
12 | shall have his retirement annuity then being
paid increased $1 | ||||||
13 | per month for each year of creditable service. On January
1, | ||||||
14 | 1982, any annuitant who began receiving a retirement annuity on | ||||||
15 | or
before January 1, 1977, shall have his retirement annuity | ||||||
16 | then being paid
increased $1 per month for each year of | ||||||
17 | creditable service.
| ||||||
18 | On January 1, 1987, any annuitant who began receiving a | ||||||
19 | retirement
annuity on or before January 1, 1977, shall have the | ||||||
20 | monthly retirement annuity
increased by an amount equal to 8¢ | ||||||
21 | per year of creditable service times the
number of years that | ||||||
22 | have elapsed since the annuity began.
| ||||||
23 | (e) Every person who receives the alternative retirement | ||||||
24 | annuity under
Section 14-110 and who is eligible to receive the | ||||||
25 | 3% increase under subsection
(a) on January 1, 1986, shall also | ||||||
26 | receive on that date a one-time increase
in retirement annuity |
| |||||||
| |||||||
1 | equal to the difference between (1) his actual
retirement | ||||||
2 | annuity on that date, including any increases received under
| ||||||
3 | subsection (a), and (2) the amount of retirement annuity he | ||||||
4 | would have
received on that date if the amendments to | ||||||
5 | subsection (a) made by Public
Act 84-162 had been in effect | ||||||
6 | since the date of his retirement.
| ||||||
7 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
| ||||||
8 | 92-651, eff. 7-11-02.)
| ||||||
9 | (40 ILCS 5/14-131)
| ||||||
10 | Sec. 14-131. Contributions by State.
| ||||||
11 | (a) The State shall make contributions to the System by | ||||||
12 | appropriations of
amounts which, together with other employer | ||||||
13 | contributions from trust, federal,
and other funds, employee | ||||||
14 | contributions, investment income, and other income,
will be | ||||||
15 | sufficient to meet the cost of maintaining and administering | ||||||
16 | the System
on a 90% funded basis in accordance with actuarial | ||||||
17 | recommendations.
| ||||||
18 | For the purposes of this Section and Section 14-135.08, | ||||||
19 | references to State
contributions refer only to employer | ||||||
20 | contributions and do not include employee
contributions that | ||||||
21 | are picked up or otherwise paid by the State or a
department on | ||||||
22 | behalf of the employee.
| ||||||
23 | (b) The Board shall determine the total amount of State | ||||||
24 | contributions
required for each fiscal year on the basis of the | ||||||
25 | actuarial tables and other
assumptions adopted by the Board, |
| |||||||
| |||||||
1 | using the formula in subsection (e).
| ||||||
2 | The Board shall also determine a State contribution rate | ||||||
3 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
4 | based on the total required State
contribution for that fiscal | ||||||
5 | year (less the amount received by the System from
| ||||||
6 | appropriations under Section 8.12 of the State Finance Act and | ||||||
7 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
8 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
9 | immediately preceding the applicable November 15
certification | ||||||
10 | deadline), the estimated payroll (including all forms of
| ||||||
11 | compensation) for personal services rendered by eligible | ||||||
12 | employees, and the
recommendations of the actuary.
| ||||||
13 | For the purposes of this Section and Section 14.1 of the | ||||||
14 | State Finance Act,
the term "eligible employees" includes | ||||||
15 | employees who participate in the System,
persons who may elect | ||||||
16 | to participate in the System but have not so elected,
persons | ||||||
17 | who are serving a qualifying period that is required for | ||||||
18 | participation,
and annuitants employed by a department as | ||||||
19 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
20 | (c) Contributions shall be made by the several departments | ||||||
21 | for each pay
period by warrants drawn by the State Comptroller | ||||||
22 | against their respective
funds or appropriations based upon | ||||||
23 | vouchers stating the amount to be so
contributed. These amounts | ||||||
24 | shall be based on the full rate certified by the
Board under | ||||||
25 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
26 | of this amendatory Act of the 93rd General
Assembly through the |
| |||||||
| |||||||
1 | payment of the final payroll from fiscal year 2004
| ||||||
2 | appropriations, the several departments shall not make | ||||||
3 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
4 | instead make payments
as required under subsection (a-1) of | ||||||
5 | Section 14.1 of the State Finance Act.
The several departments | ||||||
6 | shall resume those contributions at the commencement of
fiscal | ||||||
7 | year 2005.
| ||||||
8 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
9 | fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only, | ||||||
10 | contributions by the several departments are not required to be | ||||||
11 | made for General Revenue Funds payrolls processed by the | ||||||
12 | Comptroller. Payrolls paid by the several departments from all | ||||||
13 | other State funds must continue to be processed pursuant to | ||||||
14 | subsection (c) of this Section. | ||||||
15 | (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015, | ||||||
16 | 2016, and 2017 only, on or as soon as possible after the 15th | ||||||
17 | day of each month, the Board shall submit vouchers for payment | ||||||
18 | of State contributions to the System, in a total monthly amount | ||||||
19 | of one-twelfth of the fiscal year General Revenue Fund | ||||||
20 | contribution as certified by the System pursuant to Section | ||||||
21 | 14-135.08 of the Illinois Pension Code. | ||||||
22 | (d) If an employee is paid from trust funds or federal | ||||||
23 | funds, the
department or other employer shall pay employer | ||||||
24 | contributions from those funds
to the System at the certified | ||||||
25 | rate, unless the terms of the trust or the
federal-State | ||||||
26 | agreement preclude the use of the funds for that purpose, in
|
| |||||||
| |||||||
1 | which case the required employer contributions shall be paid by | ||||||
2 | the State.
From the effective date of this amendatory
Act of | ||||||
3 | the 93rd General Assembly through the payment of the final
| ||||||
4 | payroll from fiscal year 2004 appropriations, the department or | ||||||
5 | other
employer shall not pay contributions for the remainder of | ||||||
6 | fiscal year
2004 but shall instead make payments as required | ||||||
7 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
8 | Act. The department or other employer shall
resume payment of
| ||||||
9 | contributions at the commencement of fiscal year 2005.
| ||||||
10 | (e) For State fiscal years 2018 through 2045 (except as | ||||||
11 | otherwise provided for fiscal year 2020), the minimum | ||||||
12 | contribution to the System to be made by the State for each | ||||||
13 | fiscal year shall be an amount determined by the System to be | ||||||
14 | sufficient to bring the total assets of the System up to 90% of | ||||||
15 | the total actuarial liabilities of the System by the end of | ||||||
16 | State fiscal year 2045. In making these determinations, the | ||||||
17 | required State contribution shall be calculated each year as a | ||||||
18 | level percentage of total payroll, including payroll that is | ||||||
19 | not deemed pensionable, over the years remaining to and | ||||||
20 | including fiscal year 2045 and shall be determined under the | ||||||
21 | projected unit credit actuarial cost method. | ||||||
22 | For State fiscal year 2020: | ||||||
23 | (1) The initial calculation and certification shall be | ||||||
24 | based on the amount determined above. | ||||||
25 | (2) For purposes of the recertification due on or | ||||||
26 | before May 1, 2019, the recalculation of the required State |
| |||||||
| |||||||
1 | contribution for fiscal year 2020 shall take into account | ||||||
2 | the effect on the System's liabilities of the elections | ||||||
3 | made under Section 14-106.5. | ||||||
4 | (3) For purposes of the recertification due on or | ||||||
5 | before October 1, 2019, the total required State | ||||||
6 | contribution for fiscal year 2020 shall be reduced by the | ||||||
7 | amount of the consideration payments made to Tier 1 | ||||||
8 | employees who made the election under paragraph (1) of | ||||||
9 | subsection (a) of Section 14-106.5. | ||||||
10 | Beginning in State fiscal year 2018, any increase or | ||||||
11 | decrease in State contribution over the prior fiscal year due | ||||||
12 | exclusively to changes in actuarial or investment assumptions | ||||||
13 | adopted by the Board shall be included in the State | ||||||
14 | contribution to the System, as a percentage of the applicable | ||||||
15 | employee payroll, and shall be increased in equal annual | ||||||
16 | increments so that by the State fiscal year occurring 5 years | ||||||
17 | after the adoption of the actuarial or investment assumptions, | ||||||
18 | the State is contributing at the rate otherwise required under | ||||||
19 | this Section. | ||||||
20 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
21 | contribution
to the System to be made by the State for each | ||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||
23 | sufficient to bring the total assets of the
System up to 90% of | ||||||
24 | the total actuarial liabilities of the System by the end
of | ||||||
25 | State fiscal year 2045. In making these determinations, the | ||||||
26 | required State
contribution shall be calculated each year as a |
| |||||||
| |||||||
1 | level percentage of payroll
over the years remaining to and | ||||||
2 | including fiscal year 2045 and shall be
determined under the | ||||||
3 | projected unit credit actuarial cost method.
| ||||||
4 | For State fiscal years 1996 through 2005, the State | ||||||
5 | contribution to
the System, as a percentage of the applicable | ||||||
6 | employee payroll, shall be
increased in equal annual increments | ||||||
7 | so that by State fiscal year 2011, the
State is contributing at | ||||||
8 | the rate required under this Section; except that
(i) for State | ||||||
9 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
10 | law of this State, the certified percentage of the applicable | ||||||
11 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
12 | creditable service under Section
14-110 and 6.500% for all | ||||||
13 | other employees, notwithstanding any contrary
certification | ||||||
14 | made under Section 14-135.08 before the effective date of this
| ||||||
15 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
16 | State fiscal years, the State contribution to
the System shall | ||||||
17 | not be less than the following indicated percentages of the
| ||||||
18 | applicable employee payroll, even if the indicated percentage | ||||||
19 | will produce a
State contribution in excess of the amount | ||||||
20 | otherwise required under this
subsection and subsection (a):
| ||||||
21 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
22 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State
contribution to the System for State | ||||||
25 | fiscal year 2006 is $203,783,900.
| ||||||
26 | Notwithstanding any other provision of this Article, the |
| |||||||
| |||||||
1 | total required State
contribution to the System for State | ||||||
2 | fiscal year 2007 is $344,164,400.
| ||||||
3 | For each of State fiscal years 2008 through 2009, the State | ||||||
4 | contribution to
the System, as a percentage of the applicable | ||||||
5 | employee payroll, shall be
increased in equal annual increments | ||||||
6 | from the required State contribution for State fiscal year | ||||||
7 | 2007, so that by State fiscal year 2011, the
State is | ||||||
8 | contributing at the rate otherwise required under this Section.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State General Revenue Fund contribution for | ||||||
11 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
12 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
13 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
14 | pro rata share of bond sale expenses determined by the System's | ||||||
15 | share of total bond proceeds, (ii) any amounts received from | ||||||
16 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
17 | reduction in bond proceeds due to the issuance of discounted | ||||||
18 | bonds, if applicable. | ||||||
19 | Notwithstanding any other provision of this Article, the
| ||||||
20 | total required State General Revenue Fund contribution for
| ||||||
21 | State fiscal year 2011 is the amount recertified by the System | ||||||
22 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
23 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
24 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
25 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
26 | determined by the System's
share of total bond proceeds, (ii) |
| |||||||
| |||||||
1 | any amounts received from
the General Revenue Fund in fiscal | ||||||
2 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
3 | issuance of discounted
bonds, if applicable. | ||||||
4 | Beginning in State fiscal year 2046, the minimum State | ||||||
5 | contribution for
each fiscal year shall be the amount needed to | ||||||
6 | maintain the total assets of
the System at 90% of the total | ||||||
7 | actuarial liabilities of the System.
| ||||||
8 | Amounts received by the System pursuant to Section 25 of | ||||||
9 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
10 | Finance Act in any fiscal year do not reduce and do not | ||||||
11 | constitute payment of any portion of the minimum State | ||||||
12 | contribution required under this Article in that fiscal year. | ||||||
13 | Such amounts shall not reduce, and shall not be included in the | ||||||
14 | calculation of, the required State contributions under this | ||||||
15 | Article in any future year until the System has reached a | ||||||
16 | funding ratio of at least 90%. A reference in this Article to | ||||||
17 | the "required State contribution" or any substantially similar | ||||||
18 | term does not include or apply to any amounts payable to the | ||||||
19 | System under Section 25 of the Budget Stabilization Act.
| ||||||
20 | Notwithstanding any other provision of this Section, the | ||||||
21 | required State
contribution for State fiscal year 2005 and for | ||||||
22 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
23 | under this Section and
certified under Section 14-135.08, shall | ||||||
24 | not exceed an amount equal to (i) the
amount of the required | ||||||
25 | State contribution that would have been calculated under
this | ||||||
26 | Section for that fiscal year if the System had not received any |
| |||||||
| |||||||
1 | payments
under subsection (d) of Section 7.2 of the General | ||||||
2 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
3 | total debt service payments for that fiscal
year on the bonds | ||||||
4 | issued in fiscal year 2003 for the purposes of that Section | ||||||
5 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
6 | the same as the System's portion of
the total moneys | ||||||
7 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act. In determining this maximum for State | ||||||
9 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
10 | in item (i) shall be increased, as a percentage of the | ||||||
11 | applicable employee payroll, in equal increments calculated | ||||||
12 | from the sum of the required State contribution for State | ||||||
13 | fiscal year 2007 plus the applicable portion of the State's | ||||||
14 | total debt service payments for fiscal year 2007 on the bonds | ||||||
15 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
16 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
17 | 2011, the
State is contributing at the rate otherwise required | ||||||
18 | under this Section.
| ||||||
19 | (f) After the submission of all payments for eligible | ||||||
20 | employees
from personal services line items in fiscal year 2004 | ||||||
21 | have been made,
the Comptroller shall provide to the System a | ||||||
22 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
23 | for personal services that would
have been covered by payments | ||||||
24 | to the System under this Section if the
provisions of this | ||||||
25 | amendatory Act of the 93rd General Assembly had not been
| ||||||
26 | enacted. Upon
receipt of the certification, the System shall |
| |||||||
| |||||||
1 | determine the amount
due to the System based on the full rate | ||||||
2 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
3 | 2004 in order to meet the State's
obligation under this | ||||||
4 | Section. The System shall compare this amount
due to the amount | ||||||
5 | received by the System in fiscal year 2004 through
payments | ||||||
6 | under this Section and under Section 6z-61 of the State Finance | ||||||
7 | Act.
If the amount
due is more than the amount received, the | ||||||
8 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
9 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
10 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
11 | Continuing Appropriation Act. If the amount due is less than | ||||||
12 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
13 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
14 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
15 | the Pension Contribution Fund as soon as practicable
after the | ||||||
16 | certification.
| ||||||
17 | (g) For purposes of determining the required State | ||||||
18 | contribution to the System, the value of the System's assets | ||||||
19 | shall be equal to the actuarial value of the System's assets, | ||||||
20 | which shall be calculated as follows: | ||||||
21 | As of June 30, 2008, the actuarial value of the System's | ||||||
22 | assets shall be equal to the market value of the assets as of | ||||||
23 | that date. In determining the actuarial value of the System's | ||||||
24 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
25 | gains or losses from investment return incurred in a fiscal | ||||||
26 | year shall be recognized in equal annual amounts over the |
| |||||||
| |||||||
1 | 5-year period following that fiscal year. | ||||||
2 | (h) For purposes of determining the required State | ||||||
3 | contribution to the System for a particular year, the actuarial | ||||||
4 | value of assets shall be assumed to earn a rate of return equal | ||||||
5 | to the System's actuarially assumed rate of return. | ||||||
6 | (i) After the submission of all payments for eligible | ||||||
7 | employees from personal services line items paid from the | ||||||
8 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
9 | Comptroller shall provide to the System a certification of the | ||||||
10 | sum of all fiscal year 2010 expenditures for personal services | ||||||
11 | that would have been covered by payments to the System under | ||||||
12 | this Section if the provisions of this amendatory Act of the | ||||||
13 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
14 | certification, the System shall determine the amount due to the | ||||||
15 | System based on the full rate certified by the Board under | ||||||
16 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
17 | State's obligation under this Section. The System shall compare | ||||||
18 | this amount due to the amount received by the System in fiscal | ||||||
19 | year 2010 through payments under this Section. If the amount | ||||||
20 | due is more than the amount received, the difference shall be | ||||||
21 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
22 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
23 | under Section 1.2 of the State Pension Funds Continuing | ||||||
24 | Appropriation Act. If the amount due is less than the amount | ||||||
25 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
26 | Overpayment" for purposes of this Section, and the Fiscal Year |
| |||||||
| |||||||
1 | 2010 Overpayment shall be repaid by the System to the General | ||||||
2 | Revenue Fund as soon as practicable after the certification. | ||||||
3 | (j) After the submission of all payments for eligible | ||||||
4 | employees from personal services line items paid from the | ||||||
5 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
6 | Comptroller shall provide to the System a certification of the | ||||||
7 | sum of all fiscal year 2011 expenditures for personal services | ||||||
8 | that would have been covered by payments to the System under | ||||||
9 | this Section if the provisions of this amendatory Act of the | ||||||
10 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
11 | certification, the System shall determine the amount due to the | ||||||
12 | System based on the full rate certified by the Board under | ||||||
13 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
14 | State's obligation under this Section. The System shall compare | ||||||
15 | this amount due to the amount received by the System in fiscal | ||||||
16 | year 2011 through payments under this Section. If the amount | ||||||
17 | due is more than the amount received, the difference shall be | ||||||
18 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
19 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
20 | under Section 1.2 of the State Pension Funds Continuing | ||||||
21 | Appropriation Act. If the amount due is less than the amount | ||||||
22 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
23 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
24 | 2011 Overpayment shall be repaid by the System to the General | ||||||
25 | Revenue Fund as soon as practicable after the certification. | ||||||
26 | (k) For fiscal years 2012 through 2017 only, after the |
| |||||||
| |||||||
1 | submission of all payments for eligible employees from personal | ||||||
2 | services line items paid from the General Revenue Fund in the | ||||||
3 | fiscal year have been made, the Comptroller shall provide to | ||||||
4 | the System a certification of the sum of all expenditures in | ||||||
5 | the fiscal year for personal services. Upon receipt of the | ||||||
6 | certification, the System shall determine the amount due to the | ||||||
7 | System based on the full rate certified by the Board under | ||||||
8 | Section 14-135.08 for the fiscal year in order to meet the | ||||||
9 | State's obligation under this Section. The System shall compare | ||||||
10 | this amount due to the amount received by the System for the | ||||||
11 | fiscal year. If the amount due is more than the amount | ||||||
12 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
13 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
14 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
15 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
16 | due is less than the amount received, the difference shall be | ||||||
17 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
18 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
19 | by the System to the General Revenue Fund as soon as | ||||||
20 | practicable after the certification. | ||||||
21 | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, | ||||||
22 | eff. 7-9-15; 99-523, eff. 6-30-16.)
| ||||||
23 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
24 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
25 | which has been held unconstitutional)
|
| |||||||
| |||||||
1 | Sec. 14-133. Contributions on behalf of members.
| ||||||
2 | (a) Except as provided in subsection (a-5), each Each | ||||||
3 | participating employee shall make contributions to the System,
| ||||||
4 | based on the employee's compensation, as follows:
| ||||||
5 | (1) Covered employees, except as indicated below, 3.5% | ||||||
6 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
7 | annuity;
| ||||||
8 | (2) Noncovered employees, except as indicated below, | ||||||
9 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
10 | annuity;
| ||||||
11 | (3) Noncovered employees serving in a position in which | ||||||
12 | "eligible
creditable service" as defined in Section 14-110 | ||||||
13 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
14 | following amount for retirement annuity: 8.5% through | ||||||
15 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
16 | in 2004 and thereafter;
| ||||||
17 | (4) Covered employees serving in a position in which | ||||||
18 | "eligible creditable
service" as defined in Section 14-110 | ||||||
19 | may be earned, 0.5% for a widow or survivors annuity
plus | ||||||
20 | the following amount for retirement annuity: 5% through | ||||||
21 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
22 | and thereafter;
| ||||||
23 | (5) Each security employee of the Department of | ||||||
24 | Corrections
or of the Department of Human Services who is a | ||||||
25 | covered employee, 0.5% for a widow or survivors annuity
| ||||||
26 | plus the following amount for retirement annuity: 5% |
| |||||||
| |||||||
1 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | ||||||
2 | in 2004 and thereafter;
| ||||||
3 | (6) Each security employee of the Department of | ||||||
4 | Corrections
or of the Department of Human Services who is | ||||||
5 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
6 | plus the following amount for retirement annuity: 8.5% | ||||||
7 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | ||||||
8 | 11.5% in 2004 and thereafter.
| ||||||
9 | (a-5) Beginning July 1, 2019 or the effective date of the | ||||||
10 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
11 | (a) of Section 14-106.5, whichever is later, in lieu of the | ||||||
12 | contributions otherwise required under subsection (a), each | ||||||
13 | Tier 1 employee who made the election under paragraph (1) of | ||||||
14 | subsection (a) of Section 14-106.5 who is a participating | ||||||
15 | employee shall make contributions to the System, based on his | ||||||
16 | or her compensation, as follows: | ||||||
17 | (1) Covered employees, except as indicated below,
| ||||||
18 | 3.15% for retirement annuity, and 0.45% for a widow or | ||||||
19 | survivors annuity; | ||||||
20 | (2) Noncovered employees, except as indicated below,
| ||||||
21 | 6.3% for retirement annuity and 0.9% for a widow or | ||||||
22 | survivors annuity; | ||||||
23 | (3) Noncovered employees serving in a position in
which | ||||||
24 | "eligible creditable service" as defined in Section 14-110 | ||||||
25 | may be earned, 10.35% for retirement annuity and 0.9% for a | ||||||
26 | widow or survivors annuity; |
| |||||||
| |||||||
1 | (4) Covered employees serving in a position in which
| ||||||
2 | "eligible creditable service" as defined in Section 14-110 | ||||||
3 | may be earned, 7.2% for retirement annuity and 0.45% for a | ||||||
4 | widow or survivors annuity; | ||||||
5 | (5) Each security employee of the Department of
| ||||||
6 | Corrections or of the Department of Human Services who is a | ||||||
7 | covered employee, 10.8% for retirement annuity and 0.45% | ||||||
8 | for a widow or survivors annuity; | ||||||
9 | (6) Each security employee of the Department of
| ||||||
10 | Corrections or of the Department of Human Services who is | ||||||
11 | not a covered employee, 10.35% for retirement annuity and | ||||||
12 | 0.9% for a widow or survivors annuity. | ||||||
13 | (b) Contributions shall be in the form of a deduction from
| ||||||
14 | compensation and shall be made notwithstanding that the | ||||||
15 | compensation
paid in cash to the employee shall be reduced | ||||||
16 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
17 | member is deemed to consent and
agree to the deductions from | ||||||
18 | compensation provided for in this Article,
and shall receipt in | ||||||
19 | full for salary or compensation.
| ||||||
20 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
21 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
22 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
23 | which has been held unconstitutional)
| ||||||
24 | Sec. 14-135.08. To certify required State contributions. | ||||||
25 | (a)
To certify to the Governor and to each department, on |
| |||||||
| |||||||
1 | or before
November 15 of each year until November 15, 2011, the | ||||||
2 | required rate for State contributions to the
System for the | ||||||
3 | next State fiscal year, as determined under subsection (b) of
| ||||||
4 | Section 14-131. The certification to the Governor under this | ||||||
5 | subsection (a) shall include a copy of the
actuarial | ||||||
6 | recommendations upon which the rate is based and shall | ||||||
7 | specifically identify the System's projected State normal cost | ||||||
8 | for that fiscal year.
| ||||||
9 | (a-5) On or before November 1 of each year, beginning | ||||||
10 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
11 | the Governor, and the General Assembly a proposed certification | ||||||
12 | of the amount of the required State contribution to the System | ||||||
13 | for the next fiscal year, along with all of the actuarial | ||||||
14 | assumptions, calculations, and data upon which that proposed | ||||||
15 | certification is based. On or before January 1 of each year | ||||||
16 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
17 | preliminary report concerning the proposed certification and | ||||||
18 | identifying, if necessary, recommended changes in actuarial | ||||||
19 | assumptions that the Board must consider before finalizing its | ||||||
20 | certification of the required State contributions. On or before | ||||||
21 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
22 | shall certify to the Governor and the General Assembly the | ||||||
23 | amount of the required State contribution for the next fiscal | ||||||
24 | year. The Board's certification must note any deviations from | ||||||
25 | the State Actuary's recommended changes, the reason or reasons | ||||||
26 | for not following the State Actuary's recommended changes, and |
| |||||||
| |||||||
1 | the fiscal impact of not following the State Actuary's | ||||||
2 | recommended changes on the required State contribution. | ||||||
3 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
4 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
5 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
6 | amount of the State contribution to the System that would have
| ||||||
7 | been required for the next fiscal year if Section 1-161, | ||||||
8 | Section 14-155.2, and the changes made to Section 1-160 by this | ||||||
9 | amendatory Act of the 100th General Assembly had not taken | ||||||
10 | effect, using the
best and most recent available data but based | ||||||
11 | on the law in
effect on May 31, 2019. The Board shall submit to | ||||||
12 | the State
Actuary, the Governor, and the General Assembly a | ||||||
13 | proposed
certification, along with the relevant law, actuarial
| ||||||
14 | assumptions, calculations, and data upon which that
| ||||||
15 | certification is based. On or before January 1, 2020 and every | ||||||
16 | January 1 thereafter, the State Actuary shall issue a
| ||||||
17 | preliminary report concerning the proposed certification and
| ||||||
18 | identifying, if necessary, recommended changes in actuarial
| ||||||
19 | assumptions that the Board must consider before finalizing its
| ||||||
20 | certification. On or before January 15, 2020 and every January
| ||||||
21 | 1 thereafter, the Board shall certify to the Governor and the
| ||||||
22 | General Assembly the amount of the State contribution to the
| ||||||
23 | System that would have been required for the next fiscal year
| ||||||
24 | if Section 1-161, Section 14-155.2, and the changes made to | ||||||
25 | Section 1-160 by this amendatory Act of the 100th General | ||||||
26 | Assembly had not taken effect, using the best and most recent |
| |||||||
| |||||||
1 | available data but
based on the law in effect on May 31, 2019. | ||||||
2 | The Board's
certification must note any deviations from the | ||||||
3 | State Actuary's
recommended changes, the reason or reasons for | ||||||
4 | not following
the State Actuary's recommended changes, and the | ||||||
5 | impact of not
following the State Actuary's recommended | ||||||
6 | changes. | ||||||
7 | (b) The certifications under subsections (a) and (a-5) | ||||||
8 | shall include an additional amount necessary to pay all | ||||||
9 | principal of and interest on those general obligation bonds due | ||||||
10 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
11 | General Obligation Bond Act and issued to provide the proceeds | ||||||
12 | deposited by the State with the System in July 2003, | ||||||
13 | representing deposits other than amounts reserved under | ||||||
14 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
15 | fiscal year 2005, the Board shall make a supplemental | ||||||
16 | certification of the additional amount necessary to pay all | ||||||
17 | principal of and interest on those general obligation bonds due | ||||||
18 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
19 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
20 | the proceeds deposited by the State with the System in July | ||||||
21 | 2003, representing deposits other than amounts reserved under | ||||||
22 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
23 | practical after the effective date of this amendatory Act of | ||||||
24 | the 93rd General Assembly.
| ||||||
25 | On or before May 1, 2004, the Board shall recalculate and | ||||||
26 | recertify
to the Governor and to each department the amount of |
| |||||||
| |||||||
1 | the required State
contribution to the System and the required | ||||||
2 | rates for State contributions
to the System for State fiscal | ||||||
3 | year 2005, taking into account the amounts
appropriated to and | ||||||
4 | received by the System under subsection (d) of Section
7.2 of | ||||||
5 | the General Obligation Bond Act.
| ||||||
6 | On or before July 1, 2005, the Board shall recalculate and | ||||||
7 | recertify
to the Governor and to each department the amount of | ||||||
8 | the required State
contribution to the System and the required | ||||||
9 | rates for State contributions
to the System for State fiscal | ||||||
10 | year 2006, taking into account the changes in required State | ||||||
11 | contributions made by this amendatory Act of the 94th General | ||||||
12 | Assembly.
| ||||||
13 | On or before April 1, 2011, the Board shall recalculate and | ||||||
14 | recertify to the Governor and to each department the amount of | ||||||
15 | the required State contribution to the System for State fiscal | ||||||
16 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
17 | the System's assets and liabilities as of June 30, 2009 as | ||||||
18 | though Public Act 96-889 was approved on that date. | ||||||
19 | As soon as practical after the effective date of this | ||||||
20 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
21 | recalculate and recertify to the State Actuary, the Governor, | ||||||
22 | and the General Assembly the amount of the State contribution | ||||||
23 | to the System for State fiscal year 2018, taking into account | ||||||
24 | the changes in required State contributions made by this | ||||||
25 | amendatory Act of the 100th General Assembly. The State Actuary | ||||||
26 | shall review the assumptions and valuations underlying the |
| |||||||
| |||||||
1 | Board's revised certification and issue a preliminary report | ||||||
2 | concerning the proposed recertification and identifying, if | ||||||
3 | necessary, recommended changes in actuarial assumptions that | ||||||
4 | the Board must consider before finalizing its certification of | ||||||
5 | the required State contributions. The Board's final | ||||||
6 | certification must note any deviations from the State Actuary's | ||||||
7 | recommended changes, the reason or reasons for not following | ||||||
8 | the State Actuary's recommended changes, and the fiscal impact | ||||||
9 | of not following the State Actuary's recommended changes on the | ||||||
10 | required State contribution. | ||||||
11 | On or before May 1, 2019, the Board shall recalculate and | ||||||
12 | recertify
to the Governor and the General Assembly the amount | ||||||
13 | of the required State
contribution to the System for State | ||||||
14 | fiscal year 2020, taking into account the effect on the | ||||||
15 | System's liabilities of the elections made under Section | ||||||
16 | 14-106.5. | ||||||
17 | On or before October 1, 2019, the Board shall recalculate | ||||||
18 | and recertify to the Governor and the General Assembly the | ||||||
19 | amount of the required State contribution to the System for | ||||||
20 | State fiscal year 2020, taking into account the reduction | ||||||
21 | specified under item (3) of subsection (e) of Section 14-131. | ||||||
22 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
23 | 97-694, eff. 6-18-12.)
| ||||||
24 | (40 ILCS 5/14-147.5 new) | ||||||
25 | Sec. 14-147.5. Accelerated pension benefit payment. |
| |||||||
| |||||||
1 | (a) As used in this Section: | ||||||
2 | "Eligible person" means a person who: | ||||||
3 | (1) has terminated service; | ||||||
4 | (2) has accrued sufficient service credit to be | ||||||
5 | eligible to receive a retirement annuity under this | ||||||
6 | Article; | ||||||
7 | (3) has not received any retirement annuity under this | ||||||
8 | Article; and | ||||||
9 | (4) does not have a QILDRO in effect against him or her | ||||||
10 | under this Article. | ||||||
11 | "Pension benefit" means the benefits under this Article, or | ||||||
12 | Article 1 as it relates to those benefits, including any | ||||||
13 | anticipated annual increases, that an eligible person is | ||||||
14 | entitled to upon attainment of the applicable retirement age. | ||||||
15 | "Pension benefit" also includes applicable survivor's or | ||||||
16 | disability benefits. | ||||||
17 | (b) Before January 1, 2019, and annually thereafter, the | ||||||
18 | System shall calculate, using actuarial tables and other | ||||||
19 | assumptions adopted by the Board, the net present value of | ||||||
20 | pension benefits for each eligible person and shall offer each | ||||||
21 | eligible person the opportunity to irrevocably elect to receive | ||||||
22 | an amount determined by the System to be equal to 70% of the | ||||||
23 | net present value of his or her pension benefits in lieu of | ||||||
24 | receiving any pension benefit. The offer shall specify the | ||||||
25 | dollar amount that the eligible person will receive if he or | ||||||
26 | she so elects and shall expire when a subsequent offer is made |
| |||||||
| |||||||
1 | to an eligible person or when the System determines that 10% of | ||||||
2 | eligible persons in that year have made the election under this | ||||||
3 | subsection, whichever occurs first. The System shall make a | ||||||
4 | good faith effort to contact every eligible person to notify | ||||||
5 | him or her of the election and of the amount of the accelerated | ||||||
6 | pension benefit payment. | ||||||
7 | Until the System determines that 10% of eligible persons in | ||||||
8 | that year have made the election under this subsection, an | ||||||
9 | eligible person may irrevocably elect to receive an accelerated | ||||||
10 | pension benefit payment in the amount that the System offers | ||||||
11 | under this subsection in lieu of receiving any pension benefit. | ||||||
12 | A person who elects to receive an accelerated pension benefit | ||||||
13 | payment under this Section may not elect to proceed under the | ||||||
14 | Retirement Systems Reciprocal Act with respect to service under | ||||||
15 | this Article. | ||||||
16 | (c) A person's credits and creditable service under this | ||||||
17 | Article shall be terminated upon the person's receipt of an | ||||||
18 | accelerated pension benefit payment under this Section, and no | ||||||
19 | other benefit shall be paid under this Article based on those | ||||||
20 | terminated credits and creditable service, including any | ||||||
21 | retirement, survivor, or other benefit; except that to the | ||||||
22 | extent that participation, benefits, or premiums under the | ||||||
23 | State Employees Group Insurance Act of 1971 are based on the | ||||||
24 | amount of service credit, the terminated service credit shall | ||||||
25 | be used for that purpose. | ||||||
26 | (d) If a person who has received an accelerated pension |
| |||||||
| |||||||
1 | benefit payment under this Section returns to active service | ||||||
2 | under this Article, then: | ||||||
3 | (1) Any benefits under the System earned as a result of | ||||||
4 | that return to active service shall be based solely on the | ||||||
5 | person's credits and creditable service arising from the | ||||||
6 | return to active service. | ||||||
7 | (2) The accelerated pension benefit payment may not be | ||||||
8 | repaid to the System, and the terminated credits and | ||||||
9 | creditable service may not under any circumstances be | ||||||
10 | reinstated. | ||||||
11 | (e) As a condition of receiving an accelerated pension | ||||||
12 | benefit payment, an eligible person must have another | ||||||
13 | retirement plan or account qualified under the Internal Revenue | ||||||
14 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
15 | payment to be rolled into. The accelerated pension benefit | ||||||
16 | payment under this Section may be subject to withholding or | ||||||
17 | payment of applicable taxes, but to the extent permitted by | ||||||
18 | federal law, a person who receives an accelerated pension | ||||||
19 | benefit payment under this Section must direct the System to | ||||||
20 | pay all of that payment as a rollover into another retirement | ||||||
21 | plan or account qualified under the Internal Revenue Code of | ||||||
22 | 1986, as amended. | ||||||
23 | (f) Before January 1, 2020 and every January 1 thereafter, | ||||||
24 | the Board shall certify to the Illinois Finance Authority and | ||||||
25 | the General Assembly the amount by which the total amount of | ||||||
26 | accelerated pension benefit payments made under this Section |
| |||||||
| |||||||
1 | exceed the amount appropriated to the System for the purpose of | ||||||
2 | making those payments. | ||||||
3 | (g) The Board shall adopt any rules necessary to implement | ||||||
4 | this Section. | ||||||
5 | (h) No provision of this Section shall be interpreted in a | ||||||
6 | way that would cause the applicable System to cease to be a | ||||||
7 | qualified plan under the Internal Revenue Code of 1986. | ||||||
8 | (i) Notwithstanding any other provision of this Section, in | ||||||
9 | no case shall the total amount of accelerated pension benefit | ||||||
10 | payments paid under this Section, Section 15-185.5, and Section | ||||||
11 | 16-190.5 cause the Illinois Finance Authority to issue more | ||||||
12 | than the $250,000,000 of State Pension Obligation Acceleration | ||||||
13 | Bonds authorized in subsection (c-5) of Section 801-40 of the | ||||||
14 | Illinois Finance Authority Act. | ||||||
15 | (40 ILCS 5/14-152.1) | ||||||
16 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
17 | which has been held unconstitutional)
| ||||||
18 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
19 | increases. | ||||||
20 | (a) As used in this Section, "new benefit increase" means | ||||||
21 | an increase in the amount of any benefit provided under this | ||||||
22 | Article, or an expansion of the conditions of eligibility for | ||||||
23 | any benefit under this Article, that results from an amendment | ||||||
24 | to this Code that takes effect after June 1, 2005 (the | ||||||
25 | effective date of Public Act 94-4). "New benefit increase", |
| |||||||
| |||||||
1 | however, does not include any benefit increase resulting from | ||||||
2 | the changes made to this Article by Public Act 96-37 or by this | ||||||
3 | amendatory Act of the 100th General Assembly this amendatory | ||||||
4 | Act of the 96th General Assembly .
| ||||||
5 | (b) Notwithstanding any other provision of this Code or any | ||||||
6 | subsequent amendment to this Code, every new benefit increase | ||||||
7 | is subject to this Section and shall be deemed to be granted | ||||||
8 | only in conformance with and contingent upon compliance with | ||||||
9 | the provisions of this Section.
| ||||||
10 | (c) The Public Act enacting a new benefit increase must | ||||||
11 | identify and provide for payment to the System of additional | ||||||
12 | funding at least sufficient to fund the resulting annual | ||||||
13 | increase in cost to the System as it accrues. | ||||||
14 | Every new benefit increase is contingent upon the General | ||||||
15 | Assembly providing the additional funding required under this | ||||||
16 | subsection. The Commission on Government Forecasting and | ||||||
17 | Accountability shall analyze whether adequate additional | ||||||
18 | funding has been provided for the new benefit increase and | ||||||
19 | shall report its analysis to the Public Pension Division of the | ||||||
20 | Department of Insurance Financial and Professional Regulation . | ||||||
21 | A new benefit increase created by a Public Act that does not | ||||||
22 | include the additional funding required under this subsection | ||||||
23 | is null and void. If the Public Pension Division determines | ||||||
24 | that the additional funding provided for a new benefit increase | ||||||
25 | under this subsection is or has become inadequate, it may so | ||||||
26 | certify to the Governor and the State Comptroller and, in the |
| |||||||
| |||||||
1 | absence of corrective action by the General Assembly, the new | ||||||
2 | benefit increase shall expire at the end of the fiscal year in | ||||||
3 | which the certification is made.
| ||||||
4 | (d) Every new benefit increase shall expire 5 years after | ||||||
5 | its effective date or on such earlier date as may be specified | ||||||
6 | in the language enacting the new benefit increase or provided | ||||||
7 | under subsection (c). This does not prevent the General | ||||||
8 | Assembly from extending or re-creating a new benefit increase | ||||||
9 | by law. | ||||||
10 | (e) Except as otherwise provided in the language creating | ||||||
11 | the new benefit increase, a new benefit increase that expires | ||||||
12 | under this Section continues to apply to persons who applied | ||||||
13 | and qualified for the affected benefit while the new benefit | ||||||
14 | increase was in effect and to the affected beneficiaries and | ||||||
15 | alternate payees of such persons, but does not apply to any | ||||||
16 | other person, including without limitation a person who | ||||||
17 | continues in service after the expiration date and did not | ||||||
18 | apply and qualify for the affected benefit while the new | ||||||
19 | benefit increase was in effect.
| ||||||
20 | (Source: P.A. 96-37, eff. 7-13-09.) | ||||||
21 | (40 ILCS 5/14-155.1 new) | ||||||
22 | Sec. 14-155.1. Defined contribution plan. | ||||||
23 | (a) By July 1, 2019, the System shall prepare and implement | ||||||
24 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
25 | active Tier 1 employees. The System shall determine the 5% cap |
| |||||||
| |||||||
1 | by the number of active Tier 1 employees on the effective date | ||||||
2 | of this Section. The defined contribution plan developed under | ||||||
3 | this Section shall be a plan that aggregates employer and | ||||||
4 | employee contributions in individual participant accounts | ||||||
5 | which, after meeting any other requirements, are used for | ||||||
6 | payouts after retirement in accordance with this Section and | ||||||
7 | any other applicable laws. | ||||||
8 | As used in this Section, "defined benefit plan" means the | ||||||
9 | retirement plan available under this Article to Tier 1 | ||||||
10 | employees who have not made the election authorized under this | ||||||
11 | Section. | ||||||
12 | (1) Under the defined contribution plan, an active
Tier | ||||||
13 | 1 employee of this System could elect to cease accruing | ||||||
14 | benefits in the defined benefit plan under this Article and | ||||||
15 | begin accruing benefits for future service in the defined | ||||||
16 | contribution plan. Service credit under the defined | ||||||
17 | contribution plan may be used for determining retirement | ||||||
18 | eligibility under the defined benefit plan. | ||||||
19 | (2) Participants in the defined contribution plan
| ||||||
20 | shall pay employee contributions at the same rate as Tier 1 | ||||||
21 | employees in this System who do not participate in the | ||||||
22 | defined contribution plan. | ||||||
23 | (3) State contributions shall be paid into the
accounts | ||||||
24 | of all participants in the defined contribution plan at a | ||||||
25 | uniform rate, expressed as a percentage of compensation and | ||||||
26 | determined for each year. This rate shall be no higher than |
| |||||||
| |||||||
1 | the employer's normal cost for Tier 1 employees in the | ||||||
2 | defined benefit plan for that year, as determined by the | ||||||
3 | System and expressed as a percentage of compensation, and | ||||||
4 | shall be no lower than 3% of compensation. The State shall | ||||||
5 | adjust this rate annually. | ||||||
6 | (4) The defined contribution plan shall require 5
years | ||||||
7 | of participation in the defined contribution plan before | ||||||
8 | vesting in State contributions. If the participant fails to | ||||||
9 | vest in them, the State contributions, and the earnings | ||||||
10 | thereon, shall be forfeited. | ||||||
11 | (5) The defined contribution plan may provide for
| ||||||
12 | participants in the plan to be eligible for the defined | ||||||
13 | disability benefits available to other participants under | ||||||
14 | this Article. If it does, the System shall reduce the | ||||||
15 | employee contributions credited to the member's defined | ||||||
16 | contribution plan account by an amount determined by the | ||||||
17 | System to cover the cost of offering such benefits. | ||||||
18 | (6) The defined contribution plan shall provide a
| ||||||
19 | variety of options for investments. These options shall | ||||||
20 | include investments handled by the Illinois State Board of | ||||||
21 | Investment as well as private sector investment options. | ||||||
22 | (7) The defined contribution plan shall provide a
| ||||||
23 | variety of options for payouts to retirees and their | ||||||
24 | survivors. | ||||||
25 | (8) To the extent authorized under federal law and
as | ||||||
26 | authorized by the System, the plan shall allow former |
| |||||||
| |||||||
1 | participants in the plan to transfer or roll over employee | ||||||
2 | and vested State contributions, and the earnings thereon, | ||||||
3 | into other qualified retirement plans. | ||||||
4 | (9) The System shall reduce the employee
contributions | ||||||
5 | credited to the member's defined contribution plan account | ||||||
6 | by an amount determined by the System to cover the cost of | ||||||
7 | offering these benefits and any applicable administrative | ||||||
8 | fees. | ||||||
9 | (b) Only persons who are active Tier 1 employees of the | ||||||
10 | System on the effective date of this Section are eligible to | ||||||
11 | participate in the defined contribution plan. Participation in | ||||||
12 | the defined contribution plan shall be limited to the first 5% | ||||||
13 | of eligible persons who elect to participate. The election to | ||||||
14 | participate in the defined contribution plan is voluntary and | ||||||
15 | irrevocable. | ||||||
16 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
17 | participate in the defined contribution plan by filing with the | ||||||
18 | System a written application to participate that is received by | ||||||
19 | the System prior to its determination that 5% of eligible | ||||||
20 | persons have elected to participate in the defined contribution | ||||||
21 | plan. | ||||||
22 | When the System first determines that 5% of eligible | ||||||
23 | persons have elected to participate in the defined contribution | ||||||
24 | plan, the System shall provide notice to previously eligible | ||||||
25 | employees that the plan is no longer available and shall cease | ||||||
26 | accepting applications to participate. |
| |||||||
| |||||||
1 | (d) The System shall make a good faith effort to contact | ||||||
2 | each active Tier 1 employee who is eligible to participate in | ||||||
3 | the defined contribution plan. The System shall mail | ||||||
4 | information describing the option to join the defined | ||||||
5 | contribution plan to each of these employees to his or her last | ||||||
6 | known address on file with the System. If the employee is not | ||||||
7 | responsive to other means of contact, it is sufficient for the | ||||||
8 | System to publish the details of the option on its website. | ||||||
9 | Upon request for further information describing the | ||||||
10 | option, the System shall provide employees with information | ||||||
11 | from the System before exercising the option to join the plan, | ||||||
12 | including information on the impact to their vested benefits or | ||||||
13 | non-vested service. The individual consultation shall include | ||||||
14 | projections of the member's defined benefits at retirement or | ||||||
15 | earlier termination of service and the value of the member's | ||||||
16 | account at retirement or earlier termination of service. The | ||||||
17 | System shall not provide advice or counseling with respect to | ||||||
18 | whether the employee should exercise the option. The System | ||||||
19 | shall inform Tier 1 employees who are eligible to participate | ||||||
20 | in the defined contribution plan that they may also wish to | ||||||
21 | obtain information and counsel relating to their option from | ||||||
22 | any other available source, including, but not limited to, | ||||||
23 | labor organizations, private counsel, and financial advisors. | ||||||
24 | (e) In no event shall the System, its staff, its authorized | ||||||
25 | representatives, or the Board be liable for any information | ||||||
26 | given to an employee under this Section. The System may |
| |||||||
| |||||||
1 | coordinate with the Illinois Department of Central Management | ||||||
2 | Services and other retirement systems administering a defined | ||||||
3 | contribution plan in accordance with this amendatory Act of the | ||||||
4 | 100th General Assembly to provide information concerning the | ||||||
5 | impact of the option set forth in this Section. | ||||||
6 | (f) Notwithstanding any other provision of this Section, no | ||||||
7 | person shall begin participating in the defined contribution | ||||||
8 | plan until it has attained qualified plan status and received | ||||||
9 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
10 | (g) The System shall report on its progress under this | ||||||
11 | Section, including the available details of the defined | ||||||
12 | contribution plan and the System's plans for informing eligible | ||||||
13 | Tier 1 employees about the plan, to the Governor and the | ||||||
14 | General Assembly on or before January 15, 2019. | ||||||
15 | (h) The Illinois State Board of Investment shall be the | ||||||
16 | plan sponsor for the defined contribution plan established | ||||||
17 | under this Section. | ||||||
18 | (i) The intent of this amendatory Act of the 100th General | ||||||
19 | Assembly is to ensure that the State's normal cost of | ||||||
20 | participation in the defined contribution plan is similar, and | ||||||
21 | if possible equal, to the State's normal cost of participation | ||||||
22 | in the defined benefit plan, unless a lower State's normal cost | ||||||
23 | is necessary to ensure cost neutrality. | ||||||
24 | (40 ILCS 5/14-155.2 new) | ||||||
25 | Sec. 14-155.2. Defined contribution plan for certain |
| |||||||
| |||||||
1 | covered employees. | ||||||
2 | (a) As used in this Section: | ||||||
3 | "Defined benefit plan" means the retirement plan available | ||||||
4 | under this Article and Section 1-160 to eligible covered | ||||||
5 | employees who do not make the election authorized under this | ||||||
6 | Section. | ||||||
7 | "Eligible covered employee" means a covered employee who | ||||||
8 | first becomes a participant under this Article on or after 6 | ||||||
9 | months after the effective date of this amendatory Act of the | ||||||
10 | 100th General Assembly. | ||||||
11 | (b) In lieu of the defined benefit plan, an eligible | ||||||
12 | covered employee may irrevocably elect to participate in the | ||||||
13 | defined contribution plan under this Section. The election to | ||||||
14 | participate in the defined contribution plan must be made | ||||||
15 | within 30 days after becoming an eligible covered employee. The | ||||||
16 | election to participate in the defined contribution plan under | ||||||
17 | this Section is voluntary and irrevocable. | ||||||
18 | (c) No later than 5 months after the effective date of this
| ||||||
19 | amendatory Act of the 100th General Assembly, the System shall
| ||||||
20 | prepare and implement a voluntary defined contribution plan for | ||||||
21 | eligible covered employees. The defined
contribution plan | ||||||
22 | developed under this Section shall be a
plan that aggregates | ||||||
23 | employer and employee contributions in
individual participant | ||||||
24 | accounts which, after meeting any other
requirements, are used | ||||||
25 | for payouts after retirement in
accordance with this Section | ||||||
26 | and any other applicable laws. |
| |||||||
| |||||||
1 | (1) A participant in the defined contribution plan | ||||||
2 | shall contribute a minimum of 3% of his or her compensation | ||||||
3 | to the defined contribution plan. | ||||||
4 | (2) For persons who participate in the defined | ||||||
5 | contribution plan for at least one year, employer | ||||||
6 | contributions shall be paid into the accounts of those | ||||||
7 | participants at a rate of 3% of compensation. | ||||||
8 | (3) Employer contributions shall vest when those | ||||||
9 | contributions are paid into a participant's account. | ||||||
10 | (4) The defined contribution plan shall provide a | ||||||
11 | variety of options for investments. These options shall | ||||||
12 | include investments handled by the Illinois State Board of | ||||||
13 | Investment as well as private sector investment options. | ||||||
14 | (5) The defined contribution plan shall provide a | ||||||
15 | variety of options for payouts to retirees and their | ||||||
16 | survivors. | ||||||
17 | (6) To the extent authorized under federal law and as | ||||||
18 | authorized by the affected pension fund, the defined | ||||||
19 | contribution plan shall allow former participants in the | ||||||
20 | plan to transfer or roll over employee and employer | ||||||
21 | contributions, and the earnings thereon, into other | ||||||
22 | qualified retirement plans. | ||||||
23 | (7) The System shall reduce the employee contributions | ||||||
24 | credited to the participant's defined contribution plan | ||||||
25 | account by an amount determined by the System to cover the | ||||||
26 | cost of offering the benefits under this Section and any |
| |||||||
| |||||||
1 | applicable administrative fees. | ||||||
2 | (40 ILCS 5/14-156.1 new) | ||||||
3 | Sec. 14-156.1. Defined contribution plan; termination. If | ||||||
4 | the defined contribution plan under Section 14-155.1 is | ||||||
5 | terminated or becomes inoperative pursuant to law, then each | ||||||
6 | participant in the plan shall automatically be deemed to have | ||||||
7 | been a contributing Tier 1 employee in the System's defined | ||||||
8 | benefit plan during the time in which he or she participated in | ||||||
9 | the defined contribution plan, and for that purpose the System | ||||||
10 | shall be entitled to recover the amounts in the participant's | ||||||
11 | defined contribution accounts. | ||||||
12 | (40 ILCS 5/15-108.1) | ||||||
13 | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . | ||||||
14 | "Tier 1 member": A participant or an annuitant of a | ||||||
15 | retirement annuity under this Article, other than a participant | ||||||
16 | in the self-managed plan under Section 15-158.2, who first | ||||||
17 | became a participant or member before January 1, 2011 under any | ||||||
18 | reciprocal retirement system or pension fund established under | ||||||
19 | this Code, other than a retirement system or pension fund | ||||||
20 | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
21 | "Tier 1 member" includes a person who first became a | ||||||
22 | participant under this System before January 1, 2011 and who | ||||||
23 | accepts a refund and is subsequently reemployed by an employer | ||||||
24 | on or after January 1, 2011.
|
| |||||||
| |||||||
1 | "Tier 1 employee": A Tier 1 member who is a participating | ||||||
2 | employee, unless he or she is a disability benefit recipient | ||||||
3 | under Section 15-150. However, for the purposes of the election | ||||||
4 | under Section 15-132.9, "Tier 1 employee" does not include an | ||||||
5 | individual who has made an irrevocable election on or before | ||||||
6 | June 1, 2017 to retire from service pursuant to the terms of an | ||||||
7 | employment contract or a collective bargaining agreement in | ||||||
8 | effect on June 1, 2017, excluding any extension, amendment, or | ||||||
9 | renewal of that agreement on or after that date, and has | ||||||
10 | notified the System of that election. | ||||||
11 | (Source: P.A. 98-92, eff. 7-16-13.) | ||||||
12 | (40 ILCS 5/15-108.2) | ||||||
13 | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who | ||||||
14 | first becomes a participant under this Article on or after | ||||||
15 | January 1, 2011 and before 6 months after the effective date of | ||||||
16 | this amendatory Act of the 100th General Assembly , other than a | ||||||
17 | person in the self-managed plan established under Section | ||||||
18 | 15-158.2 or a person who makes the election under subsection | ||||||
19 | (c) of Section 1-161 , unless the person is otherwise a Tier 1 | ||||||
20 | member. The changes made to this Section by this amendatory Act | ||||||
21 | of the 98th General Assembly are a correction of existing law | ||||||
22 | and are intended to be retroactive to the effective date of | ||||||
23 | Public Act 96-889, notwithstanding the provisions of Section | ||||||
24 | 1-103.1 of this Code.
| ||||||
25 | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
2 | Sec. 15-111. Earnings.
| ||||||
3 | (a) "Earnings": Subject to Section 15-111.5, an amount paid | ||||||
4 | for personal services equal to the sum of
the basic | ||||||
5 | compensation plus extra compensation for summer teaching,
| ||||||
6 | overtime or other extra service. For periods for which an | ||||||
7 | employee receives
service credit under subsection (c) of | ||||||
8 | Section 15-113.1 or Section 15-113.2,
earnings are equal to the | ||||||
9 | basic compensation on which contributions are
paid by the | ||||||
10 | employee during such periods. Compensation for employment | ||||||
11 | which is
irregular, intermittent and temporary shall not be | ||||||
12 | considered earnings, unless
the participant is also receiving | ||||||
13 | earnings from the employer as an employee
under Section 15-107.
| ||||||
14 | With respect to transition pay paid by the University of | ||||||
15 | Illinois to a
person who was a participating employee employed | ||||||
16 | in the fire department of
the University of Illinois's | ||||||
17 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
18 | of that fire department:
| ||||||
19 | (1) "Earnings" includes transition pay paid to the | ||||||
20 | employee on or after
the effective date of this amendatory | ||||||
21 | Act of the 91st General Assembly.
| ||||||
22 | (2) "Earnings" includes transition pay paid to the | ||||||
23 | employee before the
effective date of this amendatory Act | ||||||
24 | of the 91st General Assembly only if (i)
employee | ||||||
25 | contributions under Section 15-157 have been withheld from |
| |||||||
| |||||||
1 | that
transition pay or (ii) the employee pays to the System | ||||||
2 | before January 1, 2001
an amount representing employee | ||||||
3 | contributions under Section 15-157 on that
transition pay. | ||||||
4 | Employee contributions under item (ii) may be paid in a | ||||||
5 | lump
sum, by withholding from additional transition pay | ||||||
6 | accruing before January 1,
2001, or in any other manner | ||||||
7 | approved by the System. Upon payment of the
employee | ||||||
8 | contributions on transition pay, the corresponding | ||||||
9 | employer
contributions become an obligation of the State.
| ||||||
10 | (a-5) Notwithstanding any other provision of this Section, | ||||||
11 | "earnings" does not include any future increase in income that | ||||||
12 | is offered for service by an employer to a Tier 1 employee | ||||||
13 | under this Article pursuant to the condition set forth in | ||||||
14 | subsection (c) of Section 15-132.9 and accepted under that | ||||||
15 | condition by a Tier 1 employee who has made the election under | ||||||
16 | paragraph (2) of subsection (a) of Section 15-132.9. | ||||||
17 | (a-10) Notwithstanding any other provision of this | ||||||
18 | Section, "earnings" does not include any consideration payment | ||||||
19 | made to a Tier 1 employee. | ||||||
20 | (b) For a Tier 2 member, the annual earnings shall not | ||||||
21 | exceed $106,800; however, that amount shall annually | ||||||
22 | thereafter be increased by the lesser of (i) 3% of that amount, | ||||||
23 | including all previous adjustments, or (ii) one half the annual | ||||||
24 | unadjusted percentage increase (but not less than zero) in the | ||||||
25 | consumer price index-u for the 12 months ending with the | ||||||
26 | September preceding each November 1, including all previous |
| |||||||
| |||||||
1 | adjustments. | ||||||
2 | For the purposes of this Section, "consumer price index u" | ||||||
3 | means the index published by the Bureau of Labor Statistics of | ||||||
4 | the United States Department of Labor that measures the average | ||||||
5 | change in prices of goods and services purchased by all urban | ||||||
6 | consumers, United States city average, all items, 1982-84 = | ||||||
7 | 100. The new amount resulting from each annual adjustment shall | ||||||
8 | be determined by the Public Pension Division of the Department | ||||||
9 | of Insurance and made available to the boards of the retirement | ||||||
10 | systems and pension funds by November 1 of each year. | ||||||
11 | (c) With each submission of payroll information in the | ||||||
12 | manner prescribed by the System, the
employer shall certify | ||||||
13 | that the payroll information is correct and complies with all | ||||||
14 | applicable
State and federal laws. | ||||||
15 | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
| ||||||
16 | (40 ILCS 5/15-112.1 new) | ||||||
17 | Sec. 15-112.1. Future increase in income. "Future increase | ||||||
18 | in income" means an increase to a Tier 1 employee's base pay | ||||||
19 | that is offered by an employer to the Tier 1 employee for | ||||||
20 | service under this Article after June 30, 2018 that qualifies | ||||||
21 | as "earnings", as defined in Section 15-111, or would qualify | ||||||
22 | as "earnings" but for the fact that it was offered to and | ||||||
23 | accepted by the Tier 1 employee under the condition set forth | ||||||
24 | in subsection (c) of Section 15-132.9. The term "future | ||||||
25 | increase in income" includes an increase to a Tier 1 employee's |
| |||||||
| |||||||
1 | base pay that is paid to the Tier 1 employee pursuant to an | ||||||
2 | extension, amendment, or renewal of any such employment | ||||||
3 | contract or collective bargaining agreement after the | ||||||
4 | effective date of this Section. | ||||||
5 | (40 ILCS 5/15-112.2 new) | ||||||
6 | Sec. 15-112.2. Base pay. As used in Section 15-112.1 of | ||||||
7 | this Code, "base pay" means the greater of either (i) the Tier | ||||||
8 | 1 employee's annualized rate of earnings as of June 30, 2018, | ||||||
9 | or (ii) the Tier 1 employee's annualized rate of earnings | ||||||
10 | immediately preceding the expiration, renewal, or amendment of | ||||||
11 | an employment contract or collective bargaining agreement in | ||||||
12 | effect on the effective date of this Section. For a person | ||||||
13 | returning to participating employee status as a Tier 1 employee | ||||||
14 | after June 30, 2018, however, "base pay" means the employee's | ||||||
15 | annualized rate of earnings as of the employee's last date of | ||||||
16 | service prior to July 1, 2018. The System shall calculate the | ||||||
17 | base pay of each Tier 1 employee pursuant to this Section. | ||||||
18 | (40 ILCS 5/15-132.9 new) | ||||||
19 | Sec. 15-132.9. Election by Tier 1 employees. | ||||||
20 | (a) Each Tier 1 employee shall make an irrevocable election | ||||||
21 | either: | ||||||
22 | (1) to agree to delay his or her eligibility for | ||||||
23 | automatic annual increases in retirement annuity as | ||||||
24 | provided in subsection (d-1) of Section 15-136 and to have |
| |||||||
| |||||||
1 | the amount of the automatic annual increases in his or her | ||||||
2 | retirement annuity and survivor annuity that are otherwise | ||||||
3 | provided for in this Article calculated, instead, as | ||||||
4 | provided in subsection (d-1) of Section 15-136; or | ||||||
5 | (2) to not agree to the provisions of paragraph (1) of | ||||||
6 | this subsection. | ||||||
7 | The election required under this subsection (a) shall be | ||||||
8 | made by each Tier 1 employee no earlier than January 1, 2018 | ||||||
9 | and no later than March 31, 2018, except that: | ||||||
10 | (i) a person who becomes a Tier 1 employee under this | ||||||
11 | Article on or after January 1, 2018 must make the election | ||||||
12 | under this subsection (a) within 60 days after becoming a | ||||||
13 | Tier 1 employee; | ||||||
14 | (ii) a person who returns to participating employee | ||||||
15 | status as a Tier 1 employee under this Article on or after | ||||||
16 | January 1, 2018 and has not yet made an election under this | ||||||
17 | Section must make the election under this subsection (a) | ||||||
18 | within 60 days after returning to participating employee | ||||||
19 | status as a Tier 1 employee; and | ||||||
20 | (iii) a person who returns to participating employee | ||||||
21 | status as a Tier 1 employee under this Article but who has | ||||||
22 | not made an election under Section 15-134.5 must make the | ||||||
23 | election under this subsection (a) at the same time as the | ||||||
24 | election under Section 15-134.5 and within the timeframes | ||||||
25 | required by that Section. | ||||||
26 | If a Tier 1 employee fails for any reason to make a |
| |||||||
| |||||||
1 | required election under this subsection within the time | ||||||
2 | specified, then the employee shall be deemed to have made the | ||||||
3 | election under paragraph (2) of this subsection. | ||||||
4 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
5 | court or a court of competent jurisdiction pending the entry of | ||||||
6 | a final and unappealable decision, and this Section is | ||||||
7 | determined to be constitutional or otherwise valid by a final | ||||||
8 | unappealable decision of an Illinois court or a court of | ||||||
9 | competent jurisdiction, then the election procedure set forth | ||||||
10 | in subsection (a) of this Section shall commence on the 180th | ||||||
11 | calendar day after the date of the issuance of the final | ||||||
12 | unappealable decision and shall conclude at the end of the | ||||||
13 | 270th calendar day after that date. | ||||||
14 | (a-10) All elections under subsection (a) that are made or | ||||||
15 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
16 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
17 | after July 1, 2018 shall take effect on the first day of the | ||||||
18 | month following the month in which the election is made or | ||||||
19 | deemed to be made. | ||||||
20 | (b) As adequate and legal consideration provided under this | ||||||
21 | amendatory Act of the 100th General Assembly for making an | ||||||
22 | election under paragraph (1) of subsection (a) of this Section, | ||||||
23 | the employer shall be expressly and irrevocably prohibited from | ||||||
24 | offering any future increases in income to a Tier 1 employee | ||||||
25 | who has made an election under paragraph (1) of subsection (a) | ||||||
26 | of this Section on the condition of not constituting earnings |
| |||||||
| |||||||
1 | under Section 15-111. | ||||||
2 | As adequate and legal consideration provided under this | ||||||
3 | amendatory Act of the 100th General Assembly for making an | ||||||
4 | election under paragraph (1) of subsection (a) of this Section, | ||||||
5 | each Tier 1 employee who has made an election under paragraph | ||||||
6 | (1) of subsection (a) of this Section shall receive a | ||||||
7 | consideration payment equal to 10% of the contributions made by | ||||||
8 | or on behalf of the employee under Section 15-157 before the | ||||||
9 | effective date of that election. The State Comptroller shall | ||||||
10 | pay the consideration payment to the Tier 1 employee out of | ||||||
11 | funds appropriated for that purpose under Section 1.9 of the | ||||||
12 | State Pension Funds Continuing Appropriation Act. The System | ||||||
13 | shall calculate the amount of each consideration payment and, | ||||||
14 | by July 1, 2018, shall certify to the State Comptroller the | ||||||
15 | amount of the consideration payment, together with the name, | ||||||
16 | address, and any other available payment information of the | ||||||
17 | Tier 1 employee as found in the records of the System. The | ||||||
18 | System shall make additional calculations and certifications | ||||||
19 | of consideration payments to the State Comptroller as the | ||||||
20 | System deems necessary. | ||||||
21 | (c) A Tier 1 employee who makes the election under | ||||||
22 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
23 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
24 | However, each future increase in income offered by an employer | ||||||
25 | under this Article to a Tier 1 employee who has made the | ||||||
26 | election under paragraph (2) of subsection (a) of this Section |
| |||||||
| |||||||
1 | shall be offered by the employer expressly and irrevocably on | ||||||
2 | the condition of not constituting earnings under Section 15-111 | ||||||
3 | and that the Tier 1 employee's acceptance of the offered future | ||||||
4 | increase in income shall constitute his or her agreement to | ||||||
5 | that condition. | ||||||
6 | (d) The System shall make a good faith effort to contact | ||||||
7 | each Tier 1 employee subject to this Section. The System shall | ||||||
8 | mail information describing the required election to each Tier | ||||||
9 | 1 employee by United States Postal Service mail to his or her | ||||||
10 | last known address on file with the System. If the Tier 1 | ||||||
11 | employee is not responsive to other means of contact, it is | ||||||
12 | sufficient for the System to publish the details of any | ||||||
13 | required elections on its website or to publish those details | ||||||
14 | in a regularly published newsletter or other existing public | ||||||
15 | forum. | ||||||
16 | Tier 1 employees who are subject to this Section shall be | ||||||
17 | provided with an election packet containing information | ||||||
18 | regarding their options, as well as the forms necessary to make | ||||||
19 | the required election. Upon request, the System shall offer | ||||||
20 | Tier 1 employees an opportunity to receive information from the | ||||||
21 | System before making the required election. The information may | ||||||
22 | consist of video materials, benefit estimators, group | ||||||
23 | presentations, individual consultation with a member or | ||||||
24 | authorized representative of the System in person or by | ||||||
25 | telephone or other electronic means, or any combination of | ||||||
26 | these methods. The System shall not provide advice or |
| |||||||
| |||||||
1 | counseling with respect to which election a Tier 1 employee | ||||||
2 | should make or specific to the legal or tax circumstances of or | ||||||
3 | consequences to the Tier 1 employee. | ||||||
4 | The System shall inform Tier 1 employees in the election | ||||||
5 | packet required under this subsection that the Tier 1 employee | ||||||
6 | may also wish to obtain information and counsel relating to the | ||||||
7 | election required under this Section from any other available | ||||||
8 | source, including, but not limited to, labor organizations and | ||||||
9 | private counsel. | ||||||
10 | In no event shall the System, its staff, or the Board be | ||||||
11 | held liable for any information given to a member regarding the | ||||||
12 | elections under this Section. The System shall coordinate with | ||||||
13 | the Illinois Department of Central Management Services and each | ||||||
14 | other retirement system administering an election in | ||||||
15 | accordance with this amendatory Act of the 100th General | ||||||
16 | Assembly to provide information concerning the impact of the | ||||||
17 | election set forth in this Section. | ||||||
18 | (e) Notwithstanding any other provision of law, an employer | ||||||
19 | under this Article is required to offer each future increase in | ||||||
20 | income expressly and irrevocably on the condition of not | ||||||
21 | constituting "earnings" under Section 15-111 to any Tier 1 | ||||||
22 | employee who has made an election under paragraph (2) of | ||||||
23 | subsection (a) of this Section. The offer shall also provide | ||||||
24 | that the Tier 1 employee's acceptance of the offered future | ||||||
25 | increase in income shall constitute his or her agreement to the | ||||||
26 | condition set forth in this subsection. |
| |||||||
| |||||||
1 | For purposes of legislative intent, the condition set forth | ||||||
2 | in this subsection shall be construed in a manner that ensures | ||||||
3 | that the condition is not violated or circumvented through any | ||||||
4 | contrivance of any kind. | ||||||
5 | (f) A member's election under this Section is not a | ||||||
6 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
7 | of this Code. | ||||||
8 | (g) No provision of this Section shall be interpreted in a | ||||||
9 | way that would cause the System to cease to be a qualified plan | ||||||
10 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
11 | (h) If an election created by this amendatory Act in any | ||||||
12 | other Article of this Code or any change deriving from that | ||||||
13 | election is determined to be unconstitutional or otherwise | ||||||
14 | invalid by a final unappealable decision of an Illinois court | ||||||
15 | or a court of competent jurisdiction, the invalidity of that | ||||||
16 | provision shall not in any way affect the validity of this | ||||||
17 | Section or the changes deriving from the election required | ||||||
18 | under this Section.
| ||||||
19 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
20 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
21 | which has been held unconstitutional)
| ||||||
22 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
23 | of this
Section 15-136 apply only to those participants who are | ||||||
24 | participating in the
traditional benefit package or the | ||||||
25 | portable benefit package and do not
apply to participants who |
| |||||||
| |||||||
1 | are participating in the self-managed plan.
| ||||||
2 | (a) The amount of a participant's retirement annuity, | ||||||
3 | expressed in the form
of a single-life annuity, shall be | ||||||
4 | determined by whichever of the following
rules is applicable | ||||||
5 | and provides the largest annuity:
| ||||||
6 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
7 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
8 | for each of the next 10 years of
service, 2.10% for each year | ||||||
9 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
10 | each year in excess of 30; or for persons who retire on or
| ||||||
11 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
12 | each year of
service.
| ||||||
13 | Rule 2: The retirement annuity shall be the sum of the | ||||||
14 | following,
determined from amounts credited to the participant | ||||||
15 | in accordance with the
actuarial tables and the effective rate | ||||||
16 | of interest in effect at the
time the retirement annuity | ||||||
17 | begins:
| ||||||
18 | (i) the normal annuity which can be provided on an | ||||||
19 | actuarially
equivalent basis, by the accumulated normal | ||||||
20 | contributions as of
the date the annuity begins;
| ||||||
21 | (ii) an annuity from employer contributions of an | ||||||
22 | amount equal to that
which can be provided on an | ||||||
23 | actuarially equivalent basis from the accumulated
normal | ||||||
24 | contributions made by the participant under Section | ||||||
25 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
26 | accumulated normal contributions made by
the participant; |
| |||||||
| |||||||
1 | and
| ||||||
2 | (iii) the annuity that can be provided on an | ||||||
3 | actuarially equivalent basis
from the entire contribution | ||||||
4 | made by the participant under Section 15-113.3.
| ||||||
5 | With respect to a police officer or firefighter who retires | ||||||
6 | on or after
August 14, 1998, the accumulated normal | ||||||
7 | contributions taken into account under
clauses (i) and (ii) of | ||||||
8 | this Rule 2 shall include the additional normal
contributions | ||||||
9 | made by the police officer or firefighter under Section
| ||||||
10 | 15-157(a).
| ||||||
11 | The amount of a retirement annuity calculated under this | ||||||
12 | Rule 2 shall
be computed solely on the basis of the | ||||||
13 | participant's accumulated normal
contributions, as specified | ||||||
14 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
15 | or employer contribution for early retirement under
Section | ||||||
16 | 15-136.2 nor any other employer contribution shall be used in | ||||||
17 | the
calculation of the amount of a retirement annuity under | ||||||
18 | this Rule 2.
| ||||||
19 | This amendatory Act of the 91st General Assembly is a | ||||||
20 | clarification of
existing law and applies to every participant | ||||||
21 | and annuitant without regard to
whether status as an employee | ||||||
22 | terminates before the effective date of this
amendatory Act.
| ||||||
23 | This Rule 2 does not apply to a person who first becomes an | ||||||
24 | employee under this Article on or after July 1, 2005.
| ||||||
25 | Rule 3: The retirement annuity of a participant who is | ||||||
26 | employed
at least one-half time during the period on which his |
| |||||||
| |||||||
1 | or her final rate of
earnings is based, shall be equal to the | ||||||
2 | participant's years of service
not to exceed 30, multiplied by | ||||||
3 | (1) $96 if the participant's final rate
of earnings is less | ||||||
4 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
5 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
6 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
7 | the final rate
of earnings is at least $5,500 but less than | ||||||
8 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
9 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
10 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
11 | the final rate of earnings is at least $8,500 but
less than | ||||||
12 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
13 | more, except that the annuity for those persons having made an | ||||||
14 | election under
Section 15-154(a-1) shall be calculated and | ||||||
15 | payable under the portable
retirement benefit program pursuant | ||||||
16 | to the provisions of Section 15-136.4.
| ||||||
17 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
18 | more years of
service as a police officer or firefighter, and a | ||||||
19 | participant who is age 55 or
over and has at least 20 but less | ||||||
20 | than 25 years of service as a police officer
or firefighter, | ||||||
21 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
22 | final rate of earnings for each of the first 10 years of | ||||||
23 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
24 | the next 10 years of service as a
police officer or | ||||||
25 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
26 | officer or firefighter in excess of 20. The retirement annuity |
| |||||||
| |||||||
1 | for all other
service shall be computed under Rule 1. A Tier 2 | ||||||
2 | member is eligible for a retirement annuity calculated under | ||||||
3 | Rule 4 only if that Tier 2 member meets the service | ||||||
4 | requirements for that benefit calculation as prescribed under | ||||||
5 | this Rule 4 in addition to the applicable age requirement under | ||||||
6 | subsection (a-5) of Section 15-135.
| ||||||
7 | For purposes of this Rule 4, a participant's service as a | ||||||
8 | firefighter
shall also include the following:
| ||||||
9 | (i) service that is performed while the person is an | ||||||
10 | employee under
subsection (h) of Section 15-107; and
| ||||||
11 | (ii) in the case of an individual who was a | ||||||
12 | participating employee
employed in the fire department of | ||||||
13 | the University of Illinois's
Champaign-Urbana campus | ||||||
14 | immediately prior to the elimination of that fire
| ||||||
15 | department and who immediately after the elimination of | ||||||
16 | that fire department
transferred to another job with the | ||||||
17 | University of Illinois, service performed
as an employee of | ||||||
18 | the University of Illinois in a position other than police
| ||||||
19 | officer or firefighter, from the date of that transfer | ||||||
20 | until the employee's
next termination of service with the | ||||||
21 | University of Illinois.
| ||||||
22 | (b) For a Tier 1 member, the retirement annuity provided | ||||||
23 | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | ||||||
24 | month the participant is under age 60 at the
time of | ||||||
25 | retirement. However, this reduction shall not apply in the | ||||||
26 | following
cases:
|
| |||||||
| |||||||
1 | (1) For a disabled participant whose disability | ||||||
2 | benefits have been
discontinued because he or she has | ||||||
3 | exhausted eligibility for disability
benefits under clause | ||||||
4 | (6) of Section 15-152;
| ||||||
5 | (2) For a participant who has at least the number of | ||||||
6 | years of service
required to retire at any age under | ||||||
7 | subsection (a) of Section 15-135; or
| ||||||
8 | (3) For that portion of a retirement annuity which has | ||||||
9 | been provided on
account of service of the participant | ||||||
10 | during periods when he or she performed
the duties of a | ||||||
11 | police officer or firefighter, if these duties were | ||||||
12 | performed
for at least 5 years immediately preceding the | ||||||
13 | date the retirement annuity
is to begin.
| ||||||
14 | (b-5) The retirement annuity of a Tier 2 member who is | ||||||
15 | retiring after attaining age 62 with at least 10 years of | ||||||
16 | service credit shall be reduced by 1/2 of 1% for each full | ||||||
17 | month that the member's age is under age 67. | ||||||
18 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
19 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
20 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
21 | Code of 1986, as such Section may be
amended from time to time | ||||||
22 | and as such benefit limits shall be adjusted by
the | ||||||
23 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
24 | earnings.
| ||||||
25 | (d) Subject to the provisions of subsection (d-1), a A Tier | ||||||
26 | 1 member whose status as an employee terminates after August |
| |||||||
| |||||||
1 | 14,
1969 shall receive automatic increases in his or her | ||||||
2 | retirement annuity as
follows:
| ||||||
3 | Effective January 1 immediately following the date the | ||||||
4 | retirement annuity
begins, the annuitant shall receive an | ||||||
5 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
6 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
7 | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | ||||||
8 | number of full months which elapsed from the date the | ||||||
9 | retirement annuity
payments began to January 1, 1972, plus | ||||||
10 | 0.1667% of such annuity, multiplied by
the number of full | ||||||
11 | months which elapsed from January 1, 1972, or the date the
| ||||||
12 | retirement annuity payments began, whichever is later, to | ||||||
13 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
14 | number of full months which elapsed
from January 1, 1978, or | ||||||
15 | the date the retirement annuity payments began,
whichever is | ||||||
16 | later, to the effective date of the increase.
| ||||||
17 | The annuitant shall receive an increase in his or her | ||||||
18 | monthly retirement
annuity on each January 1 thereafter during | ||||||
19 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
20 | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | ||||||
21 | Section. The change made under this subsection by P.A. 81-970 | ||||||
22 | is
effective January 1, 1980 and applies to each annuitant | ||||||
23 | whose status as
an employee terminates before or after that | ||||||
24 | date.
| ||||||
25 | Beginning January 1, 1990, and except as provided in | ||||||
26 | subsection (d-1), all automatic annual increases payable under
|
| |||||||
| |||||||
1 | this Section shall be calculated as a percentage of the total | ||||||
2 | annuity
payable at the time of the increase, including all | ||||||
3 | increases previously
granted under this Article.
| ||||||
4 | The change made in this subsection by P.A. 85-1008 is | ||||||
5 | effective January
26, 1988, and is applicable without regard to | ||||||
6 | whether status as an employee
terminated before that date.
| ||||||
7 | (d-1) Notwithstanding any other provision of this Article, | ||||||
8 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
9 | of subsection (a) of Section 15-132.9: | ||||||
10 | (1) The initial increase in retirement annuity under | ||||||
11 | this Section shall occur on the January 1 occurring either | ||||||
12 | on or after the attainment of age 67 or the fifth | ||||||
13 | anniversary of the annuity start date, whichever is | ||||||
14 | earlier. | ||||||
15 | (2) The amount of each automatic annual increase in | ||||||
16 | retirement annuity or survivor annuity occurring on or | ||||||
17 | after the effective date of that election shall be | ||||||
18 | calculated as a percentage of the originally granted | ||||||
19 | retirement annuity or survivor annuity, equal to 3% or | ||||||
20 | one-half the annual unadjusted percentage increase (but | ||||||
21 | not less than zero) in the consumer price index-u for the | ||||||
22 | 12 months ending with the September preceding each November | ||||||
23 | 1, whichever is less. If the annual unadjusted percentage | ||||||
24 | change in the consumer price index-u for the 12 months | ||||||
25 | ending with the September preceding each November 1 is zero | ||||||
26 | or there is a decrease, then the annuity shall not be |
| |||||||
| |||||||
1 | increased. | ||||||
2 | For the purposes of this Section, "consumer price index-u" | ||||||
3 | means
the index published by the Bureau of Labor Statistics of | ||||||
4 | the United States
Department of Labor that measures the average | ||||||
5 | change in prices of goods and
services purchased by all urban | ||||||
6 | consumers, United States city average, all
items, 1982-84 = | ||||||
7 | 100. The new amount resulting from each annual adjustment
shall | ||||||
8 | be determined by the Public Pension Division of the Department | ||||||
9 | of Insurance and made available to the board of the retirement | ||||||
10 | system by November 1 of each year. | ||||||
11 | (d-5) A retirement annuity of a Tier 2 member shall receive | ||||||
12 | annual increases on the January 1 occurring either on or after | ||||||
13 | the attainment of age 67 or the first anniversary of the | ||||||
14 | annuity start date, whichever is later. Each annual increase | ||||||
15 | shall be calculated at 3% or one half the annual unadjusted | ||||||
16 | percentage increase (but not less than zero) in the consumer | ||||||
17 | price index-u for the 12 months ending with the September | ||||||
18 | preceding each November 1, whichever is less, of the originally | ||||||
19 | granted retirement annuity. If the annual unadjusted | ||||||
20 | percentage change in the consumer price index-u for the 12 | ||||||
21 | months ending with the September preceding each November 1 is | ||||||
22 | zero or there is a decrease, then the annuity shall not be | ||||||
23 | increased. | ||||||
24 | (e) If, on January 1, 1987, or the date the retirement | ||||||
25 | annuity payment
period begins, whichever is later, the sum of | ||||||
26 | the retirement annuity
provided under Rule 1 or Rule 2 of this |
| |||||||
| |||||||
1 | Section
and the automatic annual increases provided under the | ||||||
2 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
3 | the retirement
annuity which would be provided by Rule 3, the | ||||||
4 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
5 | the date the
retirement annuity payment period begins, | ||||||
6 | whichever is later, to the amount
which would be provided by | ||||||
7 | Rule 3 of this Section. Such increased
amount shall be | ||||||
8 | considered as the retirement annuity in determining
benefits | ||||||
9 | provided under other Sections of this Article. This paragraph
| ||||||
10 | applies without regard to whether status as an employee | ||||||
11 | terminated before the
effective date of this amendatory Act of | ||||||
12 | 1987, provided that the annuitant was
employed at least | ||||||
13 | one-half time during the period on which the final rate of
| ||||||
14 | earnings was based.
| ||||||
15 | (f) A participant is entitled to such additional annuity as | ||||||
16 | may be provided
on an actuarially equivalent basis, by any | ||||||
17 | accumulated
additional contributions to his or her credit. | ||||||
18 | However,
the additional contributions made by the participant | ||||||
19 | toward the automatic
increases in annuity provided under this | ||||||
20 | Section shall not be taken into
account in determining the | ||||||
21 | amount of such additional annuity.
| ||||||
22 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
23 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
24 | or in part to an employer, and (2)
a participant transfers | ||||||
25 | employment from such governmental unit to such employer
within | ||||||
26 | 6 months after the transfer of the function, and (3) the sum of |
| |||||||
| |||||||
1 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
2 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
3 | participant by all other retirement
systems covered by Article | ||||||
4 | 20, and (C) the initial primary insurance amount to
which the | ||||||
5 | participant is entitled under the Social Security Act, is less | ||||||
6 | than
the retirement annuity which would have been payable if | ||||||
7 | all of the
participant's pension credits validated under | ||||||
8 | Section 20-109 had been validated
under this system, a | ||||||
9 | supplemental annuity equal to the difference in such
amounts | ||||||
10 | shall be payable to the participant.
| ||||||
11 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
12 | retirement annuity on or before January 1, 1971 shall have his | ||||||
13 | or her
retirement annuity then being paid increased $1 per | ||||||
14 | month for
each year of creditable service. On January 1, 1982, | ||||||
15 | an annuitant whose
retirement annuity began on or before | ||||||
16 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
17 | being paid increased $1 per month for each year of
creditable | ||||||
18 | service.
| ||||||
19 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
20 | annuity began on or
before January 1, 1977, shall have the | ||||||
21 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
22 | per year of creditable service times the number of years
that | ||||||
23 | have elapsed since the annuity began.
| ||||||
24 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | ||||||
25 | 98-92, eff. 7-16-13.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
2 | Sec. 15-155. Employer contributions.
| ||||||
3 | (a) The State of Illinois shall make contributions by | ||||||
4 | appropriations of
amounts which, together with the other | ||||||
5 | employer contributions from trust,
federal, and other funds, | ||||||
6 | employee contributions, income from investments,
and other | ||||||
7 | income of this System, will be sufficient to meet the cost of
| ||||||
8 | maintaining and administering the System on a 90% funded basis | ||||||
9 | in accordance
with actuarial recommendations.
| ||||||
10 | The Board shall determine the amount of State contributions | ||||||
11 | required for
each fiscal year on the basis of the actuarial | ||||||
12 | tables and other assumptions
adopted by the Board and the | ||||||
13 | recommendations of the actuary, using the formula
in subsection | ||||||
14 | (a-1).
| ||||||
15 | (a-1) For State fiscal years 2018 through 2045 (except as | ||||||
16 | otherwise provided for fiscal year 2019), the minimum | ||||||
17 | contribution to the System to be made by the State for each | ||||||
18 | fiscal year shall be an amount determined by the System to be | ||||||
19 | sufficient to bring the total assets of the System up to 90% of | ||||||
20 | the total actuarial liabilities of the System by the end of | ||||||
21 | State fiscal year 2045. In making these determinations, the | ||||||
22 | required State contribution shall be calculated each year as a | ||||||
23 | level percentage of total payroll, including payroll that is | ||||||
24 | not deemed pensionable, but excluding payroll attributable to | ||||||
25 | participants in the defined contribution plan under Section | ||||||
26 | 15-200.1, over the years remaining to and including fiscal year |
| |||||||
| |||||||
1 | 2045 and shall be determined under the projected unit credit | ||||||
2 | actuarial cost method. | ||||||
3 | For State fiscal year 2019: | ||||||
4 | (1) The initial calculation and certification shall be | ||||||
5 | based on the amount determined above. | ||||||
6 | (2) For purposes of the recertification due on or | ||||||
7 | before May 1, 2018, the recalculation of the required State | ||||||
8 | contribution for fiscal year 2019 shall take into account | ||||||
9 | the effect on the System's liabilities of the elections | ||||||
10 | made under Section 15-132.9. | ||||||
11 | (3) For purposes of the recertification due on or | ||||||
12 | before October 1, 2018, the total required State | ||||||
13 | contribution for fiscal year 2019 shall be reduced by the | ||||||
14 | amount of the consideration payments made to Tier 1 | ||||||
15 | employees who made the election under paragraph (1) of | ||||||
16 | subsection (a) of Section 15-132.9. | ||||||
17 | Beginning in State fiscal year 2018, any increase or
| ||||||
18 | decrease in State contribution over the prior fiscal year due
| ||||||
19 | exclusively to changes in actuarial or investment assumptions
| ||||||
20 | adopted by the Board shall be included in the State
| ||||||
21 | contribution to the System, as a percentage of the applicable
| ||||||
22 | employee payroll, and shall be increased in equal annual
| ||||||
23 | increments so that by the State fiscal year occurring 5 years
| ||||||
24 | after the adoption of the actuarial or investment assumptions,
| ||||||
25 | the State is contributing at the rate otherwise required under
| ||||||
26 | this Section. |
| |||||||
| |||||||
1 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
2 | contribution
to the System to be made by the State for each | ||||||
3 | fiscal year shall be an amount
determined by the System to be | ||||||
4 | sufficient to bring the total assets of the
System up to 90% of | ||||||
5 | the total actuarial liabilities of the System by the end of
| ||||||
6 | State fiscal year 2045. In making these determinations, the | ||||||
7 | required State
contribution shall be calculated each year as a | ||||||
8 | level percentage of payroll
over the years remaining to and | ||||||
9 | including fiscal year 2045 and shall be
determined under the | ||||||
10 | projected unit credit actuarial cost method.
| ||||||
11 | For State fiscal years 1996 through 2005, the State | ||||||
12 | contribution to
the System, as a percentage of the applicable | ||||||
13 | employee payroll, shall be
increased in equal annual increments | ||||||
14 | so that by State fiscal year 2011, the
State is contributing at | ||||||
15 | the rate required under this Section.
| ||||||
16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State
contribution for State fiscal year 2006 is | ||||||
18 | $166,641,900.
| ||||||
19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution for State fiscal year 2007 is | ||||||
21 | $252,064,100.
| ||||||
22 | For each of State fiscal years 2008 through 2009, the State | ||||||
23 | contribution to
the System, as a percentage of the applicable | ||||||
24 | employee payroll, shall be
increased in equal annual increments | ||||||
25 | from the required State contribution for State fiscal year | ||||||
26 | 2007, so that by State fiscal year 2011, the
State is |
| |||||||
| |||||||
1 | contributing at the rate otherwise required under this Section.
| ||||||
2 | Notwithstanding any other provision of this Article, the | ||||||
3 | total required State contribution for State fiscal year 2010 is | ||||||
4 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
5 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
6 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
7 | share of bond sale expenses determined by the System's share of | ||||||
8 | total bond proceeds, (ii) any amounts received from the General | ||||||
9 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
10 | proceeds due to the issuance of discounted bonds, if | ||||||
11 | applicable. | ||||||
12 | Notwithstanding any other provision of this Article, the
| ||||||
13 | total required State contribution for State fiscal year 2011 is
| ||||||
14 | the amount recertified by the System on or before April 1, 2011 | ||||||
15 | pursuant to Section 15-165 and shall be made from the State | ||||||
16 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
17 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
18 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
19 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
20 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
21 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
22 | discounted bonds, if
applicable. | ||||||
23 | Beginning in State fiscal year 2046, the minimum State | ||||||
24 | contribution for
each fiscal year shall be the amount needed to | ||||||
25 | maintain the total assets of
the System at 90% of the total | ||||||
26 | actuarial liabilities of the System.
|
| |||||||
| |||||||
1 | Amounts received by the System pursuant to Section 25 of | ||||||
2 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
3 | Finance Act in any fiscal year do not reduce and do not | ||||||
4 | constitute payment of any portion of the minimum State | ||||||
5 | contribution required under this Article in that fiscal year. | ||||||
6 | Such amounts shall not reduce, and shall not be included in the | ||||||
7 | calculation of, the required State contributions under this | ||||||
8 | Article in any future year until the System has reached a | ||||||
9 | funding ratio of at least 90%. A reference in this Article to | ||||||
10 | the "required State contribution" or any substantially similar | ||||||
11 | term does not include or apply to any amounts payable to the | ||||||
12 | System under Section 25 of the Budget Stabilization Act. | ||||||
13 | Notwithstanding any other provision of this Section, the | ||||||
14 | required State
contribution for State fiscal year 2005 and for | ||||||
15 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
16 | under this Section and
certified under Section 15-165, shall | ||||||
17 | not exceed an amount equal to (i) the
amount of the required | ||||||
18 | State contribution that would have been calculated under
this | ||||||
19 | Section for that fiscal year if the System had not received any | ||||||
20 | payments
under subsection (d) of Section 7.2 of the General | ||||||
21 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
22 | total debt service payments for that fiscal
year on the bonds | ||||||
23 | issued in fiscal year 2003 for the purposes of that Section | ||||||
24 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
25 | the same as the System's portion of
the total moneys | ||||||
26 | distributed under subsection (d) of Section 7.2 of the General
|
| |||||||
| |||||||
1 | Obligation Bond Act. In determining this maximum for State | ||||||
2 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
3 | in item (i) shall be increased, as a percentage of the | ||||||
4 | applicable employee payroll, in equal increments calculated | ||||||
5 | from the sum of the required State contribution for State | ||||||
6 | fiscal year 2007 plus the applicable portion of the State's | ||||||
7 | total debt service payments for fiscal year 2007 on the bonds | ||||||
8 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
9 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
10 | 2011, the
State is contributing at the rate otherwise required | ||||||
11 | under this Section.
| ||||||
12 | (a-2) For employees first hired on or after 6 months after | ||||||
13 | the effective date of this amendatory Act of the 100th General | ||||||
14 | Assembly who have elected the benefits under Section 1-161 of | ||||||
15 | this Code, the employer shall annually contribute an amount, | ||||||
16 | expressed as a percentage of payroll, equal to the defined | ||||||
17 | benefit normal cost of the defined benefit plan, less the | ||||||
18 | employee contribution, plus 2%. On an annual basis, the System | ||||||
19 | shall certify to each employer the amount of unfunded liability | ||||||
20 | accrued in the employer's account to be paid by the employer so | ||||||
21 | that the System is 90% funded by the end of State fiscal year | ||||||
22 | 2045. The contributions shall be divided equally over a | ||||||
23 | 12-month period and made monthly. The employer shall also | ||||||
24 | contribute an amount equal to the employer defined | ||||||
25 | contribution, as set on an individual employee basis, under | ||||||
26 | paragraph (2) of subsection (k) of Section 1-161 during each |
| |||||||
| |||||||
1 | pay period. The System shall have the authority to adopt rules | ||||||
2 | regarding implementation of employer contributions. | ||||||
3 | (b) If an employee is paid from trust or federal funds, the | ||||||
4 | employer
shall pay to the Board contributions from those funds | ||||||
5 | which are
sufficient to cover the accruing normal costs on | ||||||
6 | behalf of the employee.
However, universities having employees | ||||||
7 | who are compensated out of local
auxiliary funds, income funds, | ||||||
8 | or service enterprise funds are not required
to pay such | ||||||
9 | contributions on behalf of those employees. The local auxiliary
| ||||||
10 | funds, income funds, and service enterprise funds of | ||||||
11 | universities shall not be
considered trust funds for the | ||||||
12 | purpose of this Article, but funds of alumni
associations, | ||||||
13 | foundations, and athletic associations which are affiliated | ||||||
14 | with
the universities included as employers under this Article | ||||||
15 | and other employers
which do not receive State appropriations | ||||||
16 | are considered to be trust funds for
the purpose of this | ||||||
17 | Article.
| ||||||
18 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
19 | each make
employer contributions to this System for their | ||||||
20 | respective firefighter
employees who participate in this | ||||||
21 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
22 | of contributions to be made by those municipalities shall
be | ||||||
23 | determined annually by the Board on the basis of the actuarial | ||||||
24 | assumptions
adopted by the Board and the recommendations of the | ||||||
25 | actuary, and shall be
expressed as a percentage of salary for | ||||||
26 | each such employee. The Board shall
certify the rate to the |
| |||||||
| |||||||
1 | affected municipalities as soon as may be practical.
The | ||||||
2 | employer contributions required under this subsection shall be | ||||||
3 | remitted by
the municipality to the System at the same time and | ||||||
4 | in the same manner as
employee contributions.
| ||||||
5 | (c) Through State fiscal year 1995: The total employer | ||||||
6 | contribution shall
be apportioned among the various funds of | ||||||
7 | the State and other employers,
whether trust, federal, or other | ||||||
8 | funds, in accordance with actuarial procedures
approved by the | ||||||
9 | Board. State of Illinois contributions for employers receiving
| ||||||
10 | State appropriations for personal services shall be payable | ||||||
11 | from appropriations
made to the employers or to the System. The | ||||||
12 | contributions for Class I
community colleges covering earnings | ||||||
13 | other than those paid from trust and
federal funds, shall be | ||||||
14 | payable solely from appropriations to the Illinois
Community | ||||||
15 | College Board or the System for employer contributions.
| ||||||
16 | (d) Beginning in State fiscal year 1996, the required State | ||||||
17 | contributions
to the System shall be appropriated directly to | ||||||
18 | the System and shall be payable
through vouchers issued in | ||||||
19 | accordance with subsection (c) of Section 15-165, except as | ||||||
20 | provided in subsection (g).
| ||||||
21 | (e) The State Comptroller shall draw warrants payable to | ||||||
22 | the System upon
proper certification by the System or by the | ||||||
23 | employer in accordance with the
appropriation laws and this | ||||||
24 | Code.
| ||||||
25 | (f) Normal costs under this Section means liability for
| ||||||
26 | pensions and other benefits which accrues to the System because |
| |||||||
| |||||||
1 | of the
credits earned for service rendered by the participants | ||||||
2 | during the
fiscal year and expenses of administering the | ||||||
3 | System, but shall not
include the principal of or any | ||||||
4 | redemption premium or interest on any bonds
issued by the Board | ||||||
5 | or any expenses incurred or deposits required in
connection | ||||||
6 | therewith.
| ||||||
7 | (g) For academic years beginning on or after June 1, 2005 | ||||||
8 | and before July 1, 2018, if If the amount of a participant's | ||||||
9 | earnings for any academic year used to determine the final rate | ||||||
10 | of earnings, determined on a full-time equivalent basis, | ||||||
11 | exceeds the amount of his or her earnings with the same | ||||||
12 | employer for the previous academic year, determined on a | ||||||
13 | full-time equivalent basis, by more than 6%, the participant's | ||||||
14 | employer shall pay to the System, in addition to all other | ||||||
15 | payments required under this Section and in accordance with | ||||||
16 | guidelines established by the System, the present value of the | ||||||
17 | increase in benefits resulting from the portion of the increase | ||||||
18 | in earnings that is in excess of 6%. This present value shall | ||||||
19 | be computed by the System on the basis of the actuarial | ||||||
20 | assumptions and tables used in the most recent actuarial | ||||||
21 | valuation of the System that is available at the time of the | ||||||
22 | computation. The System may require the employer to provide any | ||||||
23 | pertinent information or documentation. | ||||||
24 | Whenever it determines that a payment is or may be required | ||||||
25 | under this subsection (g), the System shall calculate the | ||||||
26 | amount of the payment and bill the employer for that amount. |
| |||||||
| |||||||
1 | The bill shall specify the calculations used to determine the | ||||||
2 | amount due. If the employer disputes the amount of the bill, it | ||||||
3 | may, within 30 days after receipt of the bill, apply to the | ||||||
4 | System in writing for a recalculation. The application must | ||||||
5 | specify in detail the grounds of the dispute and, if the | ||||||
6 | employer asserts that the calculation is subject to subsection | ||||||
7 | (h) or (i) of this Section, must include an affidavit setting | ||||||
8 | forth and attesting to all facts within the employer's | ||||||
9 | knowledge that are pertinent to the applicability of subsection | ||||||
10 | (h) or (i). Upon receiving a timely application for | ||||||
11 | recalculation, the System shall review the application and, if | ||||||
12 | appropriate, recalculate the amount due.
| ||||||
13 | The employer contributions required under this subsection | ||||||
14 | (g) may be paid in the form of a lump sum within 90 days after | ||||||
15 | receipt of the bill. If the employer contributions are not paid | ||||||
16 | within 90 days after receipt of the bill, then interest will be | ||||||
17 | charged at a rate equal to the System's annual actuarially | ||||||
18 | assumed rate of return on investment compounded annually from | ||||||
19 | the 91st day after receipt of the bill. Payments must be | ||||||
20 | concluded within 3 years after the employer's receipt of the | ||||||
21 | bill. | ||||||
22 | When assessing payment for any amount due under this | ||||||
23 | subsection (g), the System shall include earnings, to the | ||||||
24 | extent not established by a participant under Section 15-113.11 | ||||||
25 | or 15-113.12, that would have been paid to the participant had | ||||||
26 | the participant not taken (i) periods of voluntary or |
| |||||||
| |||||||
1 | involuntary furlough occurring on or after July 1, 2015 and on | ||||||
2 | or before June 30, 2017 or (ii) periods of voluntary pay | ||||||
3 | reduction in lieu of furlough occurring on or after July 1, | ||||||
4 | 2015 and on or before June 30, 2017. Determining earnings that | ||||||
5 | would have been paid to a participant had the participant not | ||||||
6 | taken periods of voluntary or involuntary furlough or periods | ||||||
7 | of voluntary pay reduction shall be the responsibility of the | ||||||
8 | employer, and shall be reported in a manner prescribed by the | ||||||
9 | System. | ||||||
10 | (g-1) For academic years beginning on or after July 1, | ||||||
11 | 2018, if the amount of a participant's earnings for any | ||||||
12 | academic year used to determine the final rate of earnings, | ||||||
13 | determined on a full-time equivalent basis, exceeds the amount | ||||||
14 | of his or her earnings with the same employer for the previous | ||||||
15 | academic year, determined on a full-time equivalent basis, by | ||||||
16 | more than the unadjusted percentage increase in the consumer | ||||||
17 | price index-u for the calendar year immediately preceding the | ||||||
18 | beginning of the academic year, published by the Public Pension | ||||||
19 | Division of the Department of Insurance by November 1 of each | ||||||
20 | year, then the participant's employer shall pay to the System, | ||||||
21 | in addition to all other payments required under this Section | ||||||
22 | and in accordance with guidelines established by the System, | ||||||
23 | the present value of the increase in benefits resulting from | ||||||
24 | the portion of the increase in earnings that is in excess of | ||||||
25 | the unadjusted percentage increase in the consumer price | ||||||
26 | index-u for the applicable calendar year. This present value |
| |||||||
| |||||||
1 | shall be computed by the System on the basis of the actuarial | ||||||
2 | assumptions and tables used in the most recent actuarial | ||||||
3 | valuation of the System that is available at the time of the | ||||||
4 | computation. The System may require the employer to provide any | ||||||
5 | pertinent information or documentation. | ||||||
6 | Whenever it determines that a payment is or may be required | ||||||
7 | under this subsection (g-1), the System shall calculate the | ||||||
8 | amount of the payment and bill the employer for that amount. | ||||||
9 | The bill shall specify the calculations used to determine the | ||||||
10 | amount due. If the employer disputes the amount of the bill, it | ||||||
11 | may, within 30 days after receipt of the bill, apply to the | ||||||
12 | System in writing for a recalculation. The application must | ||||||
13 | specify in detail the grounds of the dispute and, if the | ||||||
14 | employer asserts that the calculation is subject to subsection | ||||||
15 | (i-1) of this Section, must include an affidavit setting forth | ||||||
16 | and attesting to all facts within the employer's knowledge that | ||||||
17 | are pertinent to the applicability of subsection (i-1). Upon | ||||||
18 | receiving a timely application for recalculation, the System | ||||||
19 | shall review the application and, if appropriate, recalculate | ||||||
20 | the amount due. | ||||||
21 | The employer contributions required under this subsection | ||||||
22 | (g-1) may be paid in the form of a lump sum within 90 days after | ||||||
23 | receipt of the bill. If the employer contributions are not paid | ||||||
24 | within 90 days after receipt of the bill, then interest shall | ||||||
25 | be charged at a rate equal to the System's annual actuarially | ||||||
26 | assumed rate of return on investment compounded annually from |
| |||||||
| |||||||
1 | the 91st day after receipt of the bill. Payments must be | ||||||
2 | concluded within 3 years after the employer's receipt of the | ||||||
3 | bill. | ||||||
4 | For the purposes of this Section, "consumer price index-u" | ||||||
5 | means the index published by the Bureau of Labor Statistics of | ||||||
6 | the United States Department of Labor that measures the average | ||||||
7 | change in prices of goods and services purchased by all urban | ||||||
8 | consumers, United States city average, all items, 1982-84 = | ||||||
9 | 100. The new amount resulting from each annual adjustment shall | ||||||
10 | be determined by the Public Pension Division of the Department | ||||||
11 | of Insurance and made available to the boards of the retirement | ||||||
12 | systems and pension funds by November 1 of each year. | ||||||
13 | (h) This subsection (h) applies only to payments made or | ||||||
14 | salary increases given on or after June 1, 2005 but before July | ||||||
15 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
16 | require the System to refund any payments received before July | ||||||
17 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
18 | When assessing payment for any amount due under subsection | ||||||
19 | (g), the System shall exclude earnings increases paid to | ||||||
20 | participants under contracts or collective bargaining | ||||||
21 | agreements entered into, amended, or renewed before June 1, | ||||||
22 | 2005.
| ||||||
23 | When assessing payment for any amount due under subsection | ||||||
24 | (g), the System shall exclude earnings increases paid to a | ||||||
25 | participant at a time when the participant is 10 or more years | ||||||
26 | from retirement eligibility under Section 15-135.
|
| |||||||
| |||||||
1 | When assessing payment for any amount due under subsection | ||||||
2 | (g), the System shall exclude earnings increases resulting from | ||||||
3 | overload work, including a contract for summer teaching, or | ||||||
4 | overtime when the employer has certified to the System, and the | ||||||
5 | System has approved the certification, that: (i) in the case of | ||||||
6 | overloads (A) the overload work is for the sole purpose of | ||||||
7 | academic instruction in excess of the standard number of | ||||||
8 | instruction hours for a full-time employee occurring during the | ||||||
9 | academic year that the overload is paid and (B) the earnings | ||||||
10 | increases are equal to or less than the rate of pay for | ||||||
11 | academic instruction computed using the participant's current | ||||||
12 | salary rate and work schedule; and (ii) in the case of | ||||||
13 | overtime, the overtime was necessary for the educational | ||||||
14 | mission. | ||||||
15 | When assessing payment for any amount due under subsection | ||||||
16 | (g), the System shall exclude any earnings increase resulting | ||||||
17 | from (i) a promotion for which the employee moves from one | ||||||
18 | classification to a higher classification under the State | ||||||
19 | Universities Civil Service System, (ii) a promotion in academic | ||||||
20 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
21 | promotion that the Illinois Community College Board has | ||||||
22 | recommended in accordance with subsection (k) of this Section. | ||||||
23 | These earnings increases shall be excluded only if the | ||||||
24 | promotion is to a position that has existed and been filled by | ||||||
25 | a member for no less than one complete academic year and the | ||||||
26 | earnings increase as a result of the promotion is an increase |
| |||||||
| |||||||
1 | that results in an amount no greater than the average salary | ||||||
2 | paid for other similar positions. | ||||||
3 | (i) When assessing payment for any amount due under | ||||||
4 | subsection (g), the System shall exclude any salary increase | ||||||
5 | described in subsection (h) of this Section given on or after | ||||||
6 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
7 | collective bargaining agreement entered into, amended, or | ||||||
8 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
9 | Notwithstanding any other provision of this Section, any | ||||||
10 | payments made or salary increases given after June 30, 2014 | ||||||
11 | shall be used in assessing payment for any amount due under | ||||||
12 | subsection (g) of this Section.
| ||||||
13 | (i-1) When assessing payment for any amount due under | ||||||
14 | subsection (g-1), the System shall exclude salary increases | ||||||
15 | paid to participants under contracts or collective bargaining | ||||||
16 | agreements entered into, amended, or renewed before the | ||||||
17 | effective date of this amendatory Act of the 100th General | ||||||
18 | Assembly. | ||||||
19 | (j) The System shall prepare a report and file copies of | ||||||
20 | the report with the Governor and the General Assembly by | ||||||
21 | January 1, 2007 that contains all of the following information: | ||||||
22 | (1) The number of recalculations required by the | ||||||
23 | changes made to this Section by Public Act 94-1057 for each | ||||||
24 | employer. | ||||||
25 | (2) The dollar amount by which each employer's | ||||||
26 | contribution to the System was changed due to |
| |||||||
| |||||||
1 | recalculations required by Public Act 94-1057. | ||||||
2 | (3) The total amount the System received from each | ||||||
3 | employer as a result of the changes made to this Section by | ||||||
4 | Public Act 94-4. | ||||||
5 | (4) The increase in the required State contribution | ||||||
6 | resulting from the changes made to this Section by Public | ||||||
7 | Act 94-1057. | ||||||
8 | (j-5) For academic years beginning on or after July 1, | ||||||
9 | 2018, if the amount of a participant's earnings for any | ||||||
10 | academic year, determined on a full-time equivalent basis, | ||||||
11 | exceeds $140,000, the participant's employer shall pay to the | ||||||
12 | System, in addition to all other payments required under this | ||||||
13 | Section and in accordance with guidelines established by the | ||||||
14 | System, the amount of the earnings that exceed $140,000 | ||||||
15 | multiplied by the level percentage of payroll used in that | ||||||
16 | fiscal year, as determined by the System, to be sufficient to | ||||||
17 | bring the total assets of the System up to 90% of the total | ||||||
18 | actuarial liabilities of the System by the end of State fiscal | ||||||
19 | year 2045. This amount shall be computed by the System on the | ||||||
20 | basis of the actuarial assumptions and tables used in the most | ||||||
21 | recent actuarial valuation of the System that is available at | ||||||
22 | the time of the computation. The System may require the | ||||||
23 | employer to provide any pertinent information or | ||||||
24 | documentation. | ||||||
25 | Whenever it determines that a payment is or may be required | ||||||
26 | under this subsection, the System shall calculate the amount of |
| |||||||
| |||||||
1 | the payment and bill the employer for that amount. The bill | ||||||
2 | shall specify the calculations used to determine the amount | ||||||
3 | due. If the employer disputes the amount of the bill, it may, | ||||||
4 | within 30 days after receipt of the bill, apply to the System | ||||||
5 | in writing for a recalculation. The application must specify in | ||||||
6 | detail the grounds of the dispute. Upon receiving a timely | ||||||
7 | application for recalculation, the System shall review the | ||||||
8 | application and, if appropriate, recalculate the amount due. | ||||||
9 | The employer contributions required under this subsection | ||||||
10 | may be paid in the form of a lump sum within 90 days after | ||||||
11 | receipt of the bill. If the employer contributions are not paid | ||||||
12 | within 90 days after receipt of the bill, then interest will be | ||||||
13 | charged at a rate equal to the System's annual actuarially | ||||||
14 | assumed rate of return on investment compounded annually from | ||||||
15 | the 91st day after receipt of the bill. Payments must be | ||||||
16 | concluded within 3 years after the employer's receipt of the | ||||||
17 | bill. | ||||||
18 | (k) The Illinois Community College Board shall adopt rules | ||||||
19 | for recommending lists of promotional positions submitted to | ||||||
20 | the Board by community colleges and for reviewing the | ||||||
21 | promotional lists on an annual basis. When recommending | ||||||
22 | promotional lists, the Board shall consider the similarity of | ||||||
23 | the positions submitted to those positions recognized for State | ||||||
24 | universities by the State Universities Civil Service System. | ||||||
25 | The Illinois Community College Board shall file a copy of its | ||||||
26 | findings with the System. The System shall consider the |
| |||||||
| |||||||
1 | findings of the Illinois Community College Board when making | ||||||
2 | determinations under this Section. The System shall not exclude | ||||||
3 | any earnings increases resulting from a promotion when the | ||||||
4 | promotion was not submitted by a community college. Nothing in | ||||||
5 | this subsection (k) shall require any community college to | ||||||
6 | submit any information to the Community College Board.
| ||||||
7 | (l) For purposes of determining the required State | ||||||
8 | contribution to the System, the value of the System's assets | ||||||
9 | shall be equal to the actuarial value of the System's assets, | ||||||
10 | which shall be calculated as follows: | ||||||
11 | As of June 30, 2008, the actuarial value of the System's | ||||||
12 | assets shall be equal to the market value of the assets as of | ||||||
13 | that date. In determining the actuarial value of the System's | ||||||
14 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
15 | gains or losses from investment return incurred in a fiscal | ||||||
16 | year shall be recognized in equal annual amounts over the | ||||||
17 | 5-year period following that fiscal year. | ||||||
18 | (m) For purposes of determining the required State | ||||||
19 | contribution to the system for a particular year, the actuarial | ||||||
20 | value of assets shall be assumed to earn a rate of return equal | ||||||
21 | to the system's actuarially assumed rate of return. | ||||||
22 | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; | ||||||
23 | 99-897, eff. 1-1-17 .)
| ||||||
24 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
25 | Sec. 15-157. Employee Contributions.
|
| |||||||
| |||||||
1 | (a) Each participating employee
shall make contributions | ||||||
2 | towards the retirement
benefits payable under the retirement | ||||||
3 | program applicable to the
employee from each payment
of | ||||||
4 | earnings applicable to employment under this system on and | ||||||
5 | after the
date of becoming a participant as follows: Prior to | ||||||
6 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
7 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
8 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
9 | are to be considered as normal contributions for purposes
of | ||||||
10 | this Article.
| ||||||
11 | Each participant who is a police officer or firefighter | ||||||
12 | shall make normal
contributions of 8% of each payment of | ||||||
13 | earnings applicable to employment as a
police officer or | ||||||
14 | firefighter under this system on or after September 1, 1981,
| ||||||
15 | unless he or she files with the board within 60 days after the | ||||||
16 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
17 | the board receives notice that
he or she is employed as a | ||||||
18 | police officer or firefighter, whichever is later,
a written | ||||||
19 | notice waiving the retirement formula provided by Rule 4 of | ||||||
20 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
21 | participant had met the
conditions set forth in Section | ||||||
22 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
23 | 1991 but failed to make the additional normal contributions
| ||||||
24 | required by this paragraph, he or she may elect to pay the | ||||||
25 | additional
contributions plus compound interest at the | ||||||
26 | effective rate. If such payment
is received by the board, the |
| |||||||
| |||||||
1 | service shall be considered as police officer
service in | ||||||
2 | calculating the retirement annuity under Rule 4 of Section | ||||||
3 | 15-136.
While performing service described in clause (i) or | ||||||
4 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
5 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
6 | of determining the rate of employee contributions
under this | ||||||
7 | Section.
| ||||||
8 | (b) Starting September 1, 1969, each participating | ||||||
9 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
10 | earnings to finance a portion
of the cost of the annual | ||||||
11 | increases in retirement annuity provided under
Section 15-136, | ||||||
12 | except that with respect to participants in the
self-managed | ||||||
13 | plan this additional contribution shall be used to finance the
| ||||||
14 | benefits obtained under that retirement program. Beginning | ||||||
15 | July 1, 2018 or the effective date of the Tier 1 employee's | ||||||
16 | election under paragraph (1) of subsection (a) of Section | ||||||
17 | 15-132.9, whichever is later, each Tier 1 employee who made the | ||||||
18 | election under paragraph (1) of subsection (a) of Section | ||||||
19 | 15-132.9 is no longer required to make contributions under this | ||||||
20 | subsection.
| ||||||
21 | (c) Except as provided in subsection (c-5), in In addition | ||||||
22 | to the amounts described in subsections (a) and (b) of this
| ||||||
23 | Section, each participating employee shall make contributions | ||||||
24 | of 1% of earnings
applicable under this system on and after | ||||||
25 | August 1, 1959. The contributions
made under this subsection | ||||||
26 | (c) shall be considered as survivor's insurance
contributions |
| |||||||
| |||||||
1 | for purposes of this Article if the employee is covered under
| ||||||
2 | the traditional benefit package, and such contributions shall | ||||||
3 | be considered
as additional contributions for purposes of this | ||||||
4 | Article if the employee is
participating in the self-managed | ||||||
5 | plan or has elected to participate in the
portable benefit | ||||||
6 | package and has completed the applicable one-year waiting
| ||||||
7 | period. Contributions in excess of $80 during any fiscal year | ||||||
8 | beginning before
August 31, 1969 and in excess of $120 during | ||||||
9 | any fiscal year thereafter until
September 1, 1971 shall be | ||||||
10 | considered as additional contributions for purposes
of this | ||||||
11 | Article.
| ||||||
12 | (c-5) Beginning July 1, 2018 or the effective date of the | ||||||
13 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
14 | (a) of Section 15-132.9, whichever is later, in lieu of the | ||||||
15 | contributions otherwise required under subsection (c), each | ||||||
16 | Tier 1 employee who made the election under paragraph (1) of | ||||||
17 | subsection (a) of Section 15-132.9 shall make contributions of | ||||||
18 | 0.7% of earnings applicable under this System and each Tier 1 | ||||||
19 | employee who is a police officer or firefighter who makes | ||||||
20 | normal contributions of 8% of each payment of earnings | ||||||
21 | applicable to employment as a police officer or firefighter | ||||||
22 | under this System and who made the election under paragraph (1) | ||||||
23 | of subsection (a) of Section 15-132.9 shall make contributions | ||||||
24 | of 0.55% of earnings applicable under this System. The | ||||||
25 | contributions made under this subsection (c-5) shall be | ||||||
26 | considered as survivor's insurance contributions for purposes |
| |||||||
| |||||||
1 | of this Article and such contributions shall be considered as | ||||||
2 | additional contributions for purposes of this Article if the | ||||||
3 | employee has elected to participate in the portable benefit | ||||||
4 | package and has completed the applicable one-year waiting | ||||||
5 | period. | ||||||
6 | (d) If the board by board rule so permits and subject to | ||||||
7 | such conditions
and limitations as may be specified in its | ||||||
8 | rules, a participant may make
other additional contributions of | ||||||
9 | such percentage of earnings or amounts as
the participant shall | ||||||
10 | elect in a written notice thereof received by the board.
| ||||||
11 | (e) That fraction of a participant's total accumulated | ||||||
12 | normal
contributions, the numerator of which is equal to the | ||||||
13 | number of years of
service in excess of that which is required | ||||||
14 | to qualify for the maximum
retirement annuity, and the | ||||||
15 | denominator of which is equal to the total
service of the | ||||||
16 | participant, shall be considered as accumulated additional
| ||||||
17 | contributions. The determination of the applicable maximum | ||||||
18 | annuity and
the adjustment in contributions required by this | ||||||
19 | provision shall be made
as of the date of the participant's | ||||||
20 | retirement.
| ||||||
21 | (f) Notwithstanding the foregoing, a participating | ||||||
22 | employee shall not
be required to make contributions under this | ||||||
23 | Section after the date upon
which continuance of such | ||||||
24 | contributions would otherwise cause his or her
retirement | ||||||
25 | annuity to exceed the maximum retirement annuity as specified | ||||||
26 | in
clause (1) of subsection (c) of Section 15-136.
|
| |||||||
| |||||||
1 | (g) A participant may make contributions for the purchase | ||||||
2 | of
service credit under this Article; however, only a | ||||||
3 | participating employee may make optional contributions under | ||||||
4 | subsection (b) of Section 15-157.1 of this Article.
| ||||||
5 | (h) A Tier 2 member shall not make contributions on | ||||||
6 | earnings that exceed the limitation as prescribed under | ||||||
7 | subsection (b) of Section 15-111 of this Article. | ||||||
8 | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
| ||||||
9 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
10 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
11 | which has been held unconstitutional)
| ||||||
12 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
13 | (a) The Board shall certify to the Governor on or before | ||||||
14 | November 15 of each
year until November 15, 2011 the | ||||||
15 | appropriation required from State funds for the purposes of | ||||||
16 | this
System for the following fiscal year. The certification | ||||||
17 | under this subsection (a) shall include a copy
of the actuarial | ||||||
18 | recommendations upon which it is based and shall specifically | ||||||
19 | identify the System's projected State normal cost for that | ||||||
20 | fiscal year and the projected State cost for the self-managed | ||||||
21 | plan for that fiscal year.
| ||||||
22 | On or before May 1, 2004, the Board shall recalculate and | ||||||
23 | recertify to
the Governor the amount of the required State | ||||||
24 | contribution to the System for
State fiscal year 2005, taking | ||||||
25 | into account the amounts appropriated to and
received by the |
| |||||||
| |||||||
1 | System under subsection (d) of Section 7.2 of the General
| ||||||
2 | Obligation Bond Act.
| ||||||
3 | On or before July 1, 2005, the Board shall recalculate and | ||||||
4 | recertify
to the Governor the amount of the required State
| ||||||
5 | contribution to the System for State fiscal year 2006, taking | ||||||
6 | into account the changes in required State contributions made | ||||||
7 | by this amendatory Act of the 94th General Assembly.
| ||||||
8 | On or before April 1, 2011, the Board shall recalculate and | ||||||
9 | recertify to the Governor the amount of the required State | ||||||
10 | contribution to the System for State fiscal year 2011, applying | ||||||
11 | the changes made by Public Act 96-889 to the System's assets | ||||||
12 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
13 | was approved on that date. | ||||||
14 | (a-5) On or before November 1 of each year, beginning | ||||||
15 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
16 | the Governor, and the General Assembly a proposed certification | ||||||
17 | of the amount of the required State contribution to the System | ||||||
18 | for the next fiscal year, along with all of the actuarial | ||||||
19 | assumptions, calculations, and data upon which that proposed | ||||||
20 | certification is based. On or before January 1 of each year, | ||||||
21 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
22 | preliminary report concerning the proposed certification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. On or before | ||||||
26 | January 15, 2013 and each January 15 thereafter, the Board |
| |||||||
| |||||||
1 | shall certify to the Governor and the General Assembly the | ||||||
2 | amount of the required State contribution for the next fiscal | ||||||
3 | year. The Board's certification must note, in a written | ||||||
4 | response to the State Actuary, any deviations from the State | ||||||
5 | Actuary's recommended changes, the reason or reasons for not | ||||||
6 | following the State Actuary's recommended changes, and the | ||||||
7 | fiscal impact of not following the State Actuary's recommended | ||||||
8 | changes on the required State contribution. | ||||||
9 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
10 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
11 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
12 | amount of the State contribution to the System that would have
| ||||||
13 | been required for the next fiscal year if Section 1-161, | ||||||
14 | subsection (a-2) of Section 15-155, and the changes made to | ||||||
15 | Section 1-160 by this amendatory Act of the 100th General | ||||||
16 | Assembly had not taken effect, using the
best and most recent | ||||||
17 | available data but based on the law in
effect on May 31, 2019. | ||||||
18 | The Board shall submit to the State
Actuary, the Governor, and | ||||||
19 | the General Assembly a proposed
certification, along with the | ||||||
20 | relevant law, actuarial
assumptions, calculations, and data | ||||||
21 | upon which that
certification is based. On or before January 1, | ||||||
22 | 2020 and every January 1 thereafter, the State Actuary shall | ||||||
23 | issue a
preliminary report concerning the proposed | ||||||
24 | certification and
identifying, if necessary, recommended | ||||||
25 | changes in actuarial
assumptions that the Board must consider | ||||||
26 | before finalizing its
certification. On or before January 15, |
| |||||||
| |||||||
1 | 2020 and every January
1 thereafter, the Board shall certify to | ||||||
2 | the Governor and the
General Assembly the amount of the State | ||||||
3 | contribution to the
System that would have been required for | ||||||
4 | the next fiscal year
if Section 1-161, subsection (a-2) of | ||||||
5 | Section 15-155, and the changes made to Section 1-160 by this | ||||||
6 | amendatory Act of the 100th General Assembly had not taken | ||||||
7 | effect, using the best and most recent available data but
based | ||||||
8 | on the law in effect on May 31, 2019. The Board's
certification | ||||||
9 | must note any deviations from the State Actuary's
recommended | ||||||
10 | changes, the reason or reasons for not following
the State | ||||||
11 | Actuary's recommended changes, and the impact of not
following | ||||||
12 | the State Actuary's recommended changes. | ||||||
13 | (a-15) As soon as practical after the effective date of | ||||||
14 | this amendatory Act of the 100th General Assembly, the Board | ||||||
15 | shall recalculate and recertify to the State Actuary, the | ||||||
16 | Governor, and the General Assembly the amount of the State | ||||||
17 | contribution to the System for State fiscal year 2018, taking | ||||||
18 | into account the changes in required State contributions made | ||||||
19 | by this amendatory Act of the 100th General Assembly. The State | ||||||
20 | Actuary shall review the assumptions and valuations underlying | ||||||
21 | the Board's revised certification and issue a preliminary | ||||||
22 | report concerning the proposed recertification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. The Board's | ||||||
26 | final certification must note any deviations from the State |
| |||||||
| |||||||
1 | Actuary's recommended changes, the reason or reasons for not | ||||||
2 | following the State Actuary's recommended changes, and the | ||||||
3 | fiscal impact of not following the State Actuary's recommended | ||||||
4 | changes on the required State contribution. | ||||||
5 | (a-20) On or before May 1, 2018, the Board shall | ||||||
6 | recalculate and recertify
to the Governor and the General | ||||||
7 | Assembly the amount of the required State
contribution to the | ||||||
8 | System for State fiscal year 2019, taking into account the | ||||||
9 | effect on the System's liabilities of the elections made under | ||||||
10 | Section 15-132.9. | ||||||
11 | On or before October 1, 2018, the Board shall recalculate | ||||||
12 | and recertify to the Governor and the General Assembly the | ||||||
13 | amount of the required State contribution to the System for | ||||||
14 | State fiscal year 2019, taking into account the reduction | ||||||
15 | specified under item (3) of subsection (a-1) of Section 15-155. | ||||||
16 | (b) The Board shall certify to the State Comptroller or | ||||||
17 | employer, as the
case may be, from time to time, by its | ||||||
18 | chairperson and secretary, with its seal
attached, the amounts | ||||||
19 | payable to the System from the various funds.
| ||||||
20 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
21 | possible after the
15th day of each month the Board shall | ||||||
22 | submit vouchers for payment of State
contributions to the | ||||||
23 | System, in a total monthly amount of one-twelfth of the
| ||||||
24 | required annual State contribution certified under subsection | ||||||
25 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
26 | General Assembly through June 30, 2004, the Board shall not
|
| |||||||
| |||||||
1 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
2 | of the
fiscal year 2004 certified contribution amount | ||||||
3 | determined
under this Section after taking into consideration | ||||||
4 | the transfer to the
System under subsection (b) of Section | ||||||
5 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
6 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
7 | funds appropriated to the System for that fiscal year.
| ||||||
8 | If in any month the amount remaining unexpended from all | ||||||
9 | other
appropriations to the System for the applicable fiscal | ||||||
10 | year (including the
appropriations to the System under Section | ||||||
11 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
12 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
13 | amount lawfully vouchered under this Section, the difference | ||||||
14 | shall be paid
from the General Revenue Fund under the | ||||||
15 | continuing appropriation authority
provided in Section 1.1 of | ||||||
16 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
17 | (d) So long as the payments received are the full amount | ||||||
18 | lawfully
vouchered under this Section, payments received by the | ||||||
19 | System under this
Section shall be applied first toward the | ||||||
20 | employer contribution to the
self-managed plan established | ||||||
21 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
22 | the employer's portion of the normal costs of the System,
as | ||||||
23 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
24 | be applied
toward the unfunded actuarial liabilities of the | ||||||
25 | System.
| ||||||
26 | (e) In the event that the System does not receive, as a |
| |||||||
| |||||||
1 | result of
legislative enactment or otherwise, payments | ||||||
2 | sufficient to
fully fund the employer contribution to the | ||||||
3 | self-managed plan
established under Section 15-158.2 and to | ||||||
4 | fully fund that portion of the
employer's portion of the normal | ||||||
5 | costs of the System, as calculated in
accordance with Section | ||||||
6 | 15-155(a-1), then any payments received shall be
applied | ||||||
7 | proportionately to the optional retirement program established | ||||||
8 | under
Section 15-158.2 and to the employer's portion of the | ||||||
9 | normal costs of the
System, as calculated in accordance with | ||||||
10 | Section 15-155(a-1).
| ||||||
11 | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
| ||||||
12 | (40 ILCS 5/15-185.5 new) | ||||||
13 | Sec. 15-185.5. Accelerated pension benefit payment. | ||||||
14 | (a) As used in this Section: | ||||||
15 | "Eligible person" means a person who: | ||||||
16 | (1) has terminated service; | ||||||
17 | (2) has accrued sufficient service credit to be | ||||||
18 | eligible to receive a retirement annuity under this | ||||||
19 | Article; | ||||||
20 | (3) has not received any retirement annuity under this | ||||||
21 | Article; | ||||||
22 | (4) does not have a QILDRO in effect against him or her | ||||||
23 | under this Article; and | ||||||
24 | (5) is not a participant in the self-managed plan under | ||||||
25 | Section 15-158.2. |
| |||||||
| |||||||
1 | "Pension benefit" means the benefits under this Article, or | ||||||
2 | Article 1 as it relates to those benefits, including any | ||||||
3 | anticipated annual increases, that an eligible person is | ||||||
4 | entitled to upon attainment of the applicable retirement age. | ||||||
5 | "Pension benefit" also includes applicable survivor's or | ||||||
6 | disability benefits. | ||||||
7 | (b) Before January 1, 2018, and annually thereafter, the | ||||||
8 | System shall calculate, using actuarial tables and other | ||||||
9 | assumptions adopted by the Board, the net present value of | ||||||
10 | pension benefits for each eligible person and shall offer each | ||||||
11 | eligible person the opportunity to irrevocably elect to receive | ||||||
12 | an amount determined by the System to be equal to 70% of the | ||||||
13 | net present value of his or her pension benefits in lieu of | ||||||
14 | receiving any pension benefit. The offer shall specify the | ||||||
15 | dollar amount that the eligible person will receive if he or | ||||||
16 | she so elects and shall expire when a subsequent offer is made | ||||||
17 | to an eligible person or when the System determines that 10% of | ||||||
18 | eligible persons in that year have made the election under this | ||||||
19 | subsection, whichever occurs first. The System shall make a | ||||||
20 | good faith effort to contact every eligible person to notify | ||||||
21 | him or her of the election and of the amount of the accelerated | ||||||
22 | pension benefit payment. | ||||||
23 | Until the System determines that 10% of eligible persons in | ||||||
24 | that year have made the election under this subsection, an | ||||||
25 | eligible person may irrevocably elect to receive an accelerated | ||||||
26 | pension benefit payment in the amount that the System offers |
| |||||||
| |||||||
1 | under this subsection in lieu of receiving any pension benefit. | ||||||
2 | A person who elects to receive an accelerated pension benefit | ||||||
3 | payment under this Section may not elect to proceed under the | ||||||
4 | Retirement Systems Reciprocal Act with respect to service under | ||||||
5 | this Article. | ||||||
6 | (c) A person's credits and creditable service under this | ||||||
7 | Article shall be terminated upon the person's receipt of an | ||||||
8 | accelerated pension benefit payment under this Section, and no | ||||||
9 | other benefit shall be paid under this Article based on those | ||||||
10 | terminated credits and creditable service, including any | ||||||
11 | retirement, survivor, or other benefit; except that to the | ||||||
12 | extent that participation, benefits, or premiums under the | ||||||
13 | State Employees Group Insurance Act of 1971 are based on the | ||||||
14 | amount of service credit, the terminated service credit shall | ||||||
15 | be used for that purpose. | ||||||
16 | (d) If a person who has received an accelerated pension | ||||||
17 | benefit payment under this Section returns to participating | ||||||
18 | employee status under this Article, then: | ||||||
19 | (1) Any benefits under the System earned as a result of | ||||||
20 | that return to participating employee status shall be based | ||||||
21 | solely on the person's credits and creditable service | ||||||
22 | arising from the return to participating employee status. | ||||||
23 | (2) The accelerated pension benefit payment may not be | ||||||
24 | repaid to the System, and the terminated credits and | ||||||
25 | creditable service may not under any circumstances be | ||||||
26 | reinstated. |
| |||||||
| |||||||
1 | (e) As a condition of receiving an accelerated pension | ||||||
2 | benefit payment, an eligible person must have another | ||||||
3 | retirement plan or account qualified under the Internal Revenue | ||||||
4 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
5 | payment to be rolled into. The accelerated pension benefit | ||||||
6 | payment under this Section may be subject to withholding or | ||||||
7 | payment of applicable taxes, but to the extent permitted by | ||||||
8 | federal law, a person who receives an accelerated pension | ||||||
9 | benefit payment under this Section must direct the System to | ||||||
10 | pay all of that payment as a rollover into another retirement | ||||||
11 | plan or account qualified under the Internal Revenue Code of | ||||||
12 | 1986, as amended. | ||||||
13 | (f) Before January 1, 2019 and every January 1 thereafter, | ||||||
14 | the Board shall certify to the Illinois Finance Authority and | ||||||
15 | the General Assembly the amount by which the total amount of | ||||||
16 | accelerated pension benefit payments made under this Section | ||||||
17 | exceed the amount appropriated to the System for the purpose of | ||||||
18 | making those payments. | ||||||
19 | (g) The Board shall adopt any rules necessary to implement | ||||||
20 | this Section. | ||||||
21 | (h) No provision of this Section shall be interpreted in a | ||||||
22 | way that would cause the applicable System to cease to be a | ||||||
23 | qualified plan under the Internal Revenue Code of 1986. | ||||||
24 | (i) Notwithstanding any other provision of this Section, in | ||||||
25 | no case shall the total amount of accelerated pension benefit | ||||||
26 | payments paid under this Section, Section 14-147.5, and Section |
| |||||||
| |||||||
1 | 16-190.5 cause the Illinois Finance Authority to issue more | ||||||
2 | than the $250,000,000 of State Pension Obligation Acceleration | ||||||
3 | Bonds authorized in subsection (c-5) of Section 801-40 of the | ||||||
4 | Illinois Finance Authority Act. | ||||||
5 | (40 ILCS 5/15-198) | ||||||
6 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
7 | which has been held unconstitutional)
| ||||||
8 | Sec. 15-198. Application and expiration of new benefit | ||||||
9 | increases. | ||||||
10 | (a) As used in this Section, "new benefit increase" means | ||||||
11 | an increase in the amount of any benefit provided under this | ||||||
12 | Article, or an expansion of the conditions of eligibility for | ||||||
13 | any benefit under this Article, that results from an amendment | ||||||
14 | to this Code that takes effect after the effective date of this | ||||||
15 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
16 | increase", however, does not include any benefit increase | ||||||
17 | resulting from the changes made to this Article by this | ||||||
18 | amendatory Act of the 100th General Assembly. | ||||||
19 | (b) Notwithstanding any other provision of this Code or any | ||||||
20 | subsequent amendment to this Code, every new benefit increase | ||||||
21 | is subject to this Section and shall be deemed to be granted | ||||||
22 | only in conformance with and contingent upon compliance with | ||||||
23 | the provisions of this Section.
| ||||||
24 | (c) The Public Act enacting a new benefit increase must | ||||||
25 | identify and provide for payment to the System of additional |
| |||||||
| |||||||
1 | funding at least sufficient to fund the resulting annual | ||||||
2 | increase in cost to the System as it accrues. | ||||||
3 | Every new benefit increase is contingent upon the General | ||||||
4 | Assembly providing the additional funding required under this | ||||||
5 | subsection. The Commission on Government Forecasting and | ||||||
6 | Accountability shall analyze whether adequate additional | ||||||
7 | funding has been provided for the new benefit increase and | ||||||
8 | shall report its analysis to the Public Pension Division of the | ||||||
9 | Department of Insurance Financial and Professional Regulation . | ||||||
10 | A new benefit increase created by a Public Act that does not | ||||||
11 | include the additional funding required under this subsection | ||||||
12 | is null and void. If the Public Pension Division determines | ||||||
13 | that the additional funding provided for a new benefit increase | ||||||
14 | under this subsection is or has become inadequate, it may so | ||||||
15 | certify to the Governor and the State Comptroller and, in the | ||||||
16 | absence of corrective action by the General Assembly, the new | ||||||
17 | benefit increase shall expire at the end of the fiscal year in | ||||||
18 | which the certification is made.
| ||||||
19 | (d) Every new benefit increase shall expire 5 years after | ||||||
20 | its effective date or on such earlier date as may be specified | ||||||
21 | in the language enacting the new benefit increase or provided | ||||||
22 | under subsection (c). This does not prevent the General | ||||||
23 | Assembly from extending or re-creating a new benefit increase | ||||||
24 | by law. | ||||||
25 | (e) Except as otherwise provided in the language creating | ||||||
26 | the new benefit increase, a new benefit increase that expires |
| |||||||
| |||||||
1 | under this Section continues to apply to persons who applied | ||||||
2 | and qualified for the affected benefit while the new benefit | ||||||
3 | increase was in effect and to the affected beneficiaries and | ||||||
4 | alternate payees of such persons, but does not apply to any | ||||||
5 | other person, including without limitation a person who | ||||||
6 | continues in service after the expiration date and did not | ||||||
7 | apply and qualify for the affected benefit while the new | ||||||
8 | benefit increase was in effect.
| ||||||
9 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
10 | (40 ILCS 5/15-200.1 new) | ||||||
11 | Sec. 15-200.1. Defined contribution plan. | ||||||
12 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
13 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
14 | Tier 1 employees. The System shall determine the 5% cap by the | ||||||
15 | number of Tier 1 employees on the effective date of this | ||||||
16 | Section. The defined contribution plan developed under this | ||||||
17 | Section shall be a plan that aggregates employer and employee | ||||||
18 | contributions in individual participant accounts which, after | ||||||
19 | meeting any other requirements, are used for payouts after | ||||||
20 | retirement in accordance with this Section and any other | ||||||
21 | applicable laws. | ||||||
22 | As used in this Section, "defined benefit plan" means the | ||||||
23 | retirement plan available under this Article to Tier 1 | ||||||
24 | employees who have not made the election authorized under this | ||||||
25 | Section. |
| |||||||
| |||||||
1 | (1) Under the defined contribution plan, a
Tier 1 | ||||||
2 | employee of this System could elect to cease accruing | ||||||
3 | benefits in the defined benefit plan under this Article and | ||||||
4 | begin accruing benefits for future service in the defined | ||||||
5 | contribution plan. Service credit under the defined | ||||||
6 | contribution plan may be used for determining retirement | ||||||
7 | eligibility under the defined benefit plan. A Tier 1 | ||||||
8 | employee who elects to cease accruing benefits in his or | ||||||
9 | her defined benefit plan shall be prohibited from | ||||||
10 | purchasing service credit on or after the date of his or | ||||||
11 | her election. A Tier 1 employee making the irrevocable | ||||||
12 | election provided under this Section shall not receive | ||||||
13 | interest accruals to his or her Rule 2 benefit on or after | ||||||
14 | the date of his or her election. | ||||||
15 | (2) Participants in the defined contribution plan
| ||||||
16 | shall pay employee contributions at the same rate as other | ||||||
17 | participants under this Article as determined by the | ||||||
18 | System. | ||||||
19 | (3) State contributions shall be paid into the
accounts | ||||||
20 | of all participants in the defined contribution plan at a | ||||||
21 | uniform rate, expressed as a percentage of earnings and | ||||||
22 | determined for each year. This rate shall be no higher than | ||||||
23 | the employer's normal cost for Tier 1 employees in the | ||||||
24 | defined benefit plan for that year, as determined by the | ||||||
25 | System and expressed as a percentage of earnings, and shall | ||||||
26 | be no lower than 3% of earnings. The State shall adjust |
| |||||||
| |||||||
1 | this rate annually. | ||||||
2 | (4) The defined contribution plan shall require 5
years | ||||||
3 | of participation in the defined contribution plan before | ||||||
4 | vesting in State contributions. If the participant fails to | ||||||
5 | vest in them, the State contributions, and the earnings | ||||||
6 | thereon, shall be forfeited. | ||||||
7 | (5) The defined contribution plan may provide for
| ||||||
8 | participants in the plan to be eligible for the defined | ||||||
9 | disability benefits available to other participants under | ||||||
10 | this Article. If it does, the System shall reduce the | ||||||
11 | employee contributions credited to the member's defined | ||||||
12 | contribution plan account by an amount determined by the | ||||||
13 | System to cover the cost of offering such benefits. | ||||||
14 | (6) The defined contribution plan shall provide a
| ||||||
15 | variety of options for investments. These options shall | ||||||
16 | include investments handled by the System as well as | ||||||
17 | private sector investment options. | ||||||
18 | (7) The defined contribution plan shall provide a
| ||||||
19 | variety of options for payouts to retirees and their | ||||||
20 | survivors. | ||||||
21 | (8) To the extent authorized under federal law and
as | ||||||
22 | authorized by the System, the plan shall allow former | ||||||
23 | participants in the plan to transfer or roll over employee | ||||||
24 | and vested State contributions, and the earnings thereon, | ||||||
25 | into other qualified retirement plans. | ||||||
26 | (9) The System shall reduce the employee
contributions |
| |||||||
| |||||||
1 | credited to the member's defined contribution plan account | ||||||
2 | by an amount determined by the System to cover the cost of | ||||||
3 | offering these benefits and any applicable administrative | ||||||
4 | fees. | ||||||
5 | (b) Only persons who are Tier 1 employees of the System on | ||||||
6 | the effective date of this Section are eligible to participate | ||||||
7 | in the defined contribution plan. Participation in the defined | ||||||
8 | contribution plan shall be limited to the first 5% of eligible | ||||||
9 | persons who elect to participate. The election to participate | ||||||
10 | in the defined contribution plan is voluntary and irrevocable. | ||||||
11 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
12 | participate in the defined contribution plan by filing with the | ||||||
13 | System a written application to participate that is received by | ||||||
14 | the System prior to its determination that 5% of eligible | ||||||
15 | persons have elected to participate in the defined contribution | ||||||
16 | plan. | ||||||
17 | When the System first determines that 5% of eligible | ||||||
18 | persons have elected to participate in the defined contribution | ||||||
19 | plan, the System shall provide notice to previously eligible | ||||||
20 | employees that the plan is no longer available and shall cease | ||||||
21 | accepting applications to participate. | ||||||
22 | (d) The System shall make a good faith effort to contact | ||||||
23 | each Tier 1 employee who is eligible to participate in the | ||||||
24 | defined contribution plan. The System shall mail information | ||||||
25 | describing the option to join the defined contribution plan to | ||||||
26 | each of these employees to his or her last known address on |
| |||||||
| |||||||
1 | file with the System. If the employee is not responsive to | ||||||
2 | other means of contact, it is sufficient for the System to | ||||||
3 | publish the details of the option on its website. | ||||||
4 | Upon request for further information describing the | ||||||
5 | option, the System shall provide employees with information | ||||||
6 | from the System before exercising the option to join the plan, | ||||||
7 | including information on the impact to their vested benefits or | ||||||
8 | non-vested service. The individual consultation shall include | ||||||
9 | projections of the member's defined benefits at retirement or | ||||||
10 | earlier termination of service and the value of the member's | ||||||
11 | account at retirement or earlier termination of service. The | ||||||
12 | System shall not provide advice or counseling with respect to | ||||||
13 | whether the employee should exercise the option. The System | ||||||
14 | shall inform Tier 1 employees who are eligible to participate | ||||||
15 | in the defined contribution plan that they may also wish to | ||||||
16 | obtain information and counsel relating to their option from | ||||||
17 | any other available source, including but not limited to labor | ||||||
18 | organizations, private counsel, and financial advisors. | ||||||
19 | (e) In no event shall the System, its staff, its authorized | ||||||
20 | representatives, or the Board be liable for any information | ||||||
21 | given to an employee under this Section. The System may | ||||||
22 | coordinate with the Illinois Department of Central Management | ||||||
23 | Services and other retirement systems administering a defined | ||||||
24 | contribution plan in accordance with this amendatory Act of the | ||||||
25 | 100th General Assembly to provide information concerning the | ||||||
26 | impact of the option set forth in this Section. |
| |||||||
| |||||||
1 | (f) Notwithstanding any other provision of this Section, no | ||||||
2 | person shall begin participating in the defined contribution | ||||||
3 | plan until it has attained qualified plan status and received | ||||||
4 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
5 | (g) The System shall report on its progress under this | ||||||
6 | Section, including the available details of the defined | ||||||
7 | contribution plan and the System's plans for informing eligible | ||||||
8 | Tier 1 employees about the plan, to the Governor and the | ||||||
9 | General Assembly on or before January 15, 2018. | ||||||
10 | (h) If a Tier 1 employee has not made an election under | ||||||
11 | Section 15-134.5 of this Code, then the plan prescribed under | ||||||
12 | this Section shall not apply to that Tier 1 employee and that | ||||||
13 | Tier 1 employee shall remain eligible to make the election | ||||||
14 | prescribed under Section 15-134.5. | ||||||
15 | (i) The intent of this amendatory Act of the 100th General | ||||||
16 | Assembly is to ensure that the State's normal cost of | ||||||
17 | participation in the defined contribution plan is similar, and | ||||||
18 | if possible equal, to the State's normal cost of participation | ||||||
19 | in the defined benefit plan, unless a lower State's normal cost | ||||||
20 | is necessary to ensure cost neutrality. | ||||||
21 | (40 ILCS 5/15-201.1 new) | ||||||
22 | Sec. 15-201.1. Defined contribution plan; termination. If | ||||||
23 | the defined contribution plan is terminated or becomes | ||||||
24 | inoperative pursuant to law, then each participant in the plan | ||||||
25 | shall automatically be deemed to have been a contributing Tier |
| |||||||
| |||||||
1 | 1 employee participating in the System's defined benefit plan | ||||||
2 | during the time in which he or she participated in the defined | ||||||
3 | contribution plan, and for that purpose the System shall be | ||||||
4 | entitled to recover the amounts in the participant's defined | ||||||
5 | contribution accounts. | ||||||
6 | (40 ILCS 5/16-107.1 new) | ||||||
7 | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A | ||||||
8 | teacher under this Article who first became a member or | ||||||
9 | participant before January 1, 2011 under any reciprocal | ||||||
10 | retirement system or pension fund established under this Code | ||||||
11 | other than a retirement system or pension fund established | ||||||
12 | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for | ||||||
13 | the purposes of the election under Section 16-122.9, "Tier 1 | ||||||
14 | employee" does not include a teacher under this Article who | ||||||
15 | would qualify as a Tier 1 employee but who has made an | ||||||
16 | irrevocable election on or before June 1, 2017 to retire from | ||||||
17 | service pursuant to the terms of an employment contract or a | ||||||
18 | collective bargaining agreement in effect on June 1, 2017, | ||||||
19 | excluding any extension, amendment, or renewal of that | ||||||
20 | agreement after that date, and has notified the System of that | ||||||
21 | election.
| ||||||
22 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
| ||||||
23 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
24 | which has been held unconstitutional)
|
| |||||||
| |||||||
1 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
2 | received by a teacher during any
school year and recognized by | ||||||
3 | the system in accordance with
rules of the board. For purposes | ||||||
4 | of this Section, "school year" includes
the regular school term | ||||||
5 | plus any additional period for which a teacher is
compensated | ||||||
6 | and such compensation is recognized by the rules of the board.
| ||||||
7 | Notwithstanding any other provision of this Section, | ||||||
8 | "salary" does not include any future increase in income that is | ||||||
9 | offered by an employer for service as a Tier 1 employee under | ||||||
10 | this Article pursuant to the condition set forth in subsection | ||||||
11 | (c) of Section 16-122.9 and accepted under that condition by a | ||||||
12 | Tier 1 employee who has made the election under paragraph (2) | ||||||
13 | of subsection (a) of Section 16-122.9. | ||||||
14 | Notwithstanding any other provision of this Section, | ||||||
15 | "salary" does not include any consideration payment made to a | ||||||
16 | Tier 1 employee. | ||||||
17 | (Source: P.A. 84-1028.)
| ||||||
18 | (40 ILCS 5/16-121.1 new) | ||||||
19 | Sec. 16-121.1. Future increase in income. "Future increase | ||||||
20 | in income" means an increase to a Tier 1 employee's base pay | ||||||
21 | that is offered by an employer to the Tier 1 employee for | ||||||
22 | service under this Article after June 30, 2018 that qualifies | ||||||
23 | as "salary", as defined in Section 16-121, or would qualify as | ||||||
24 | "salary" but for the fact that it was offered to and accepted | ||||||
25 | by the Tier 1 employee under the condition set forth in |
| |||||||
| |||||||
1 | subsection (c) of Section 16-122.9. The term "future increase | ||||||
2 | in income" includes an increase to a Tier 1 employee's base pay | ||||||
3 | that is paid to the Tier 1 employee pursuant to an extension, | ||||||
4 | amendment, or renewal of any such employment contract or | ||||||
5 | collective bargaining agreement after the effective date of | ||||||
6 | this Section. | ||||||
7 | (40 ILCS 5/16-121.2 new) | ||||||
8 | Sec. 16-121.2. Base pay. As used in Section 16-121.1 of | ||||||
9 | this Code, "base pay" means the greater of either (i) the Tier | ||||||
10 | 1 employee's annualized rate of salary as of June 30, 2018, or | ||||||
11 | (ii) the Tier 1 employee's annualized rate of salary | ||||||
12 | immediately preceding the expiration, renewal, or amendment of | ||||||
13 | an employment contract or collective bargaining agreement in | ||||||
14 | effect on the effective date of this Section. For a person | ||||||
15 | returning to active service as a Tier 1 employee after June 30, | ||||||
16 | 2018, however, "base pay" means the employee's annualized rate | ||||||
17 | of salary as of the employee's last date of service prior to | ||||||
18 | July 1, 2018. The System shall calculate the base pay of each | ||||||
19 | Tier 1 employee pursuant to this Section. | ||||||
20 | (40 ILCS 5/16-122.9 new) | ||||||
21 | Sec. 16-122.9. Election by Tier 1 employees. | ||||||
22 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
23 | election either: | ||||||
24 | (1) to agree to delay his or her eligibility for |
| |||||||
| |||||||
1 | automatic annual increases in retirement annuity as | ||||||
2 | provided in subsection (a-1) of Section 16-133.1 or | ||||||
3 | subsection (b-1) of Section 16-136.1, whichever is | ||||||
4 | applicable, and to have the amount of the automatic annual | ||||||
5 | increases in his or her retirement annuity and survivor | ||||||
6 | benefit that are otherwise provided for in this Article | ||||||
7 | calculated, instead, as provided in subsection (a-1) of | ||||||
8 | Section 16-133.1 or subsection (b-1) of Section 16-136.1, | ||||||
9 | whichever is applicable; or | ||||||
10 | (2) to not agree to paragraph (1) of this subsection. | ||||||
11 | The election required under this subsection (a) shall be | ||||||
12 | made by each active Tier 1 employee no earlier than January 1, | ||||||
13 | 2018 and no later than March 31, 2018, except that: | ||||||
14 | (i) a person who becomes a Tier 1 employee under this | ||||||
15 | Article on or after February 1, 2018 must make the election | ||||||
16 | under this subsection (a) within 60 days after becoming a | ||||||
17 | Tier 1 employee; and | ||||||
18 | (ii) a person who returns to active service as a Tier 1 | ||||||
19 | employee under this Article on or after February 1, 2018 | ||||||
20 | and has not yet made an election under this Section must | ||||||
21 | make the election under this subsection (a) within 60 days | ||||||
22 | after returning to active service as a Tier 1 employee. | ||||||
23 | If a Tier 1 employee fails for any reason to make a | ||||||
24 | required election under this subsection within the time | ||||||
25 | specified, then the employee shall be deemed to have made the | ||||||
26 | election under paragraph (2) of this subsection. |
| |||||||
| |||||||
1 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
2 | court or a court of competent jurisdiction pending the entry of | ||||||
3 | a final and unappealable decision, and this Section is | ||||||
4 | determined to be constitutional or otherwise valid by a final | ||||||
5 | unappealable decision of an Illinois court or a court of | ||||||
6 | competent jurisdiction, then the election procedure set forth | ||||||
7 | in subsection (a) of this Section shall commence on the 180th | ||||||
8 | calendar day after the date of the issuance of the final | ||||||
9 | unappealable decision and shall conclude at the end of the | ||||||
10 | 270th calendar day after that date. | ||||||
11 | (a-10) All elections under subsection (a) that are made or | ||||||
12 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
13 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
14 | after July 1, 2018 shall take effect on the first day of the | ||||||
15 | month following the month in which the election is made or | ||||||
16 | deemed to be made. | ||||||
17 | (b) As adequate and legal consideration provided under this | ||||||
18 | amendatory Act of the 100th General Assembly for making an | ||||||
19 | election under paragraph (1) of subsection (a) of this Section, | ||||||
20 | an employer shall be expressly and irrevocably prohibited from | ||||||
21 | offering any future increases in income to a Tier 1 employee | ||||||
22 | who has made an election under paragraph (1) of subsection (a) | ||||||
23 | of this Section on the condition of not constituting salary | ||||||
24 | under Section 16-121. | ||||||
25 | As adequate and legal consideration provided under this | ||||||
26 | amendatory Act of the 100th General Assembly for making an |
| |||||||
| |||||||
1 | election under paragraph (1) of subsection (a) of this Section, | ||||||
2 | each Tier 1 employee who has made an election under paragraph | ||||||
3 | (1) of subsection (a) of this Section shall receive a | ||||||
4 | consideration payment equal to 10% of the contributions made by | ||||||
5 | or on behalf of the employee under paragraphs (1), (2), and (3) | ||||||
6 | of subsection (a) of Section 16-152 before the effective date | ||||||
7 | of that election. The State Comptroller shall pay the | ||||||
8 | consideration payment to the Tier 1 employee out of funds | ||||||
9 | appropriated for that purpose under Section 1.9 of the State | ||||||
10 | Pension Funds Continuing Appropriation Act. The System shall | ||||||
11 | calculate the amount of each consideration payment and, by July | ||||||
12 | 1, 2018, shall certify to the State Comptroller the amount of | ||||||
13 | the consideration payment, together with the name, address, and | ||||||
14 | any other available payment information of the Tier 1 employee | ||||||
15 | as found in the records of the System. The System shall make | ||||||
16 | additional calculations and certifications of consideration | ||||||
17 | payments to the State Comptroller as the System deems | ||||||
18 | necessary. | ||||||
19 | (c) A Tier 1 employee who makes the election under | ||||||
20 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
21 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
22 | However, each future increase in income offered by an employer | ||||||
23 | under this Article to a Tier 1 employee who has made the | ||||||
24 | election under paragraph (2) of subsection (a) of this Section | ||||||
25 | shall be offered by the employer expressly and irrevocably on | ||||||
26 | the condition of not constituting salary under Section 16-121 |
| |||||||
| |||||||
1 | and that the Tier 1 employee's acceptance of the offered future | ||||||
2 | increase in income shall constitute his or her agreement to | ||||||
3 | that condition. | ||||||
4 | (d) The System shall make a good faith effort to contact | ||||||
5 | each Tier 1 employee subject to this Section. The System shall | ||||||
6 | mail information describing the required election to each Tier | ||||||
7 | 1 employee by United States Postal Service mail to his or her | ||||||
8 | last known address on file with the System. If the Tier 1 | ||||||
9 | employee is not responsive to other means of contact, it is | ||||||
10 | sufficient for the System to publish the details of any | ||||||
11 | required elections on its website or to publish those details | ||||||
12 | in a regularly published newsletter or other existing public | ||||||
13 | forum. | ||||||
14 | Tier 1 employees who are subject to this Section shall be | ||||||
15 | provided with an election packet containing information | ||||||
16 | regarding their options, as well as the forms necessary to make | ||||||
17 | the required election. Upon request, the System shall offer | ||||||
18 | Tier 1 employees an opportunity to receive information from the | ||||||
19 | System before making the required election. The information may | ||||||
20 | consist of video materials, group presentations, individual | ||||||
21 | consultation with a member or authorized representative of the | ||||||
22 | System in person or by telephone or other electronic means, or | ||||||
23 | any combination of those methods. The System shall not provide | ||||||
24 | advice or counseling with respect to which election a Tier 1 | ||||||
25 | employee should make or specific to the legal or tax | ||||||
26 | circumstances of or consequences to the Tier 1 employee. |
| |||||||
| |||||||
1 | The System shall inform Tier 1 employees in the election | ||||||
2 | packet required under this subsection that the Tier 1 employee | ||||||
3 | may also wish to obtain information and counsel relating to the | ||||||
4 | election required under this Section from any other available | ||||||
5 | source, including, but not limited to, labor organizations and | ||||||
6 | private counsel. | ||||||
7 | In no event shall the System, its staff, or the Board be | ||||||
8 | held liable for any information given to a member regarding the | ||||||
9 | elections under this Section. The System shall coordinate with | ||||||
10 | the Illinois Department of Central Management Services and each | ||||||
11 | other retirement system administering an election in | ||||||
12 | accordance with this amendatory Act of the 100th General | ||||||
13 | Assembly to provide information concerning the impact of the | ||||||
14 | election set forth in this Section. | ||||||
15 | (e) Notwithstanding any other provision of law, an employer | ||||||
16 | under this Article is required to offer each future increase in | ||||||
17 | income expressly and irrevocably on the condition of not | ||||||
18 | constituting "salary" under Section 16-121 to any Tier 1 | ||||||
19 | employee who has made an election under paragraph (2) of | ||||||
20 | subsection (a) of this Section. The offer shall also provide | ||||||
21 | that the Tier 1 employee's acceptance of the offered future | ||||||
22 | increase in income shall constitute his or her agreement to the | ||||||
23 | condition set forth in this subsection. | ||||||
24 | For purposes of legislative intent, the condition set forth | ||||||
25 | in this subsection shall be construed in a manner that ensures | ||||||
26 | that the condition is not violated or circumvented through any |
| |||||||
| |||||||
1 | contrivance of any kind. | ||||||
2 | (f) A member's election under this Section is not a | ||||||
3 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
4 | of this Code. | ||||||
5 | (g) No provision of this Section shall be interpreted in a | ||||||
6 | way that would cause the System to cease to be a qualified plan | ||||||
7 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
8 | (h) If an election created by this amendatory Act in any | ||||||
9 | other Article of this Code or any change deriving from that | ||||||
10 | election is determined to be unconstitutional or otherwise | ||||||
11 | invalid by a final unappealable decision of an Illinois court | ||||||
12 | or a court of competent jurisdiction, the invalidity of that | ||||||
13 | provision shall not in any way affect the validity of this | ||||||
14 | Section or the changes deriving from the election required | ||||||
15 | under this Section.
| ||||||
16 | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| ||||||
17 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
18 | which has been held unconstitutional)
| ||||||
19 | Sec. 16-133.1. Automatic annual increase in annuity.
| ||||||
20 | (a) Each member with creditable service and retiring on or | ||||||
21 | after August 26,
1969 is entitled to the automatic annual | ||||||
22 | increases in annuity provided under
this Section while | ||||||
23 | receiving a retirement annuity or disability retirement
| ||||||
24 | annuity from the system.
| ||||||
25 | Except as otherwise provided in subsection (a-1), an An |
| |||||||
| |||||||
1 | annuitant shall first be entitled to an initial increase under | ||||||
2 | this
Section on the January 1 next following the first | ||||||
3 | anniversary of retirement,
or January 1 of the year next | ||||||
4 | following attainment of age 61, whichever is
later. At such | ||||||
5 | time, the system shall pay an initial increase determined as
| ||||||
6 | follows:
| ||||||
7 | (1) 1.5% of the originally granted retirement annuity | ||||||
8 | or disability
retirement annuity multiplied by the number | ||||||
9 | of years elapsed, if any, from the date of retirement
until | ||||||
10 | January 1, 1972, plus
| ||||||
11 | (2) 2% of the originally granted annuity multiplied by | ||||||
12 | the number of
years elapsed, if any, from the date of | ||||||
13 | retirement or January
1, 1972, whichever is later, until | ||||||
14 | January 1, 1978, plus
| ||||||
15 | (3) 3% of the originally granted annuity multiplied by | ||||||
16 | the number
of years elapsed from the date of retirement or | ||||||
17 | January 1,
1978, whichever is later, until the effective | ||||||
18 | date of the initial
increase.
| ||||||
19 | However, the initial annual increase calculated under this | ||||||
20 | Section for the
recipient of a disability retirement annuity | ||||||
21 | granted under Section 16-149.2
shall be reduced by an amount | ||||||
22 | equal to the total of all increases in that
annuity received | ||||||
23 | under Section 16-149.5 (but not exceeding 100% of the amount
of | ||||||
24 | the initial increase otherwise provided under this Section).
| ||||||
25 | Except as otherwise provided in subsection (a-1), | ||||||
26 | following Following the initial increase, automatic annual |
| |||||||
| |||||||
1 | increases in annuity shall
be payable on each January 1 | ||||||
2 | thereafter during the lifetime of the annuitant,
determined as | ||||||
3 | a percentage of the originally granted retirement annuity
or | ||||||
4 | disability retirement annuity for increases granted prior to | ||||||
5 | January
1, 1990, and calculated as a percentage of the total | ||||||
6 | amount of annuity,
including previous increases under this | ||||||
7 | Section, for increases granted on
or after January 1, 1990, as | ||||||
8 | follows: 1.5% for periods prior to January 1,
1972, 2% for | ||||||
9 | periods after December 31, 1971 and prior to January 1, 1978,
| ||||||
10 | and 3% for periods after December 31, 1977.
| ||||||
11 | (a-1) Notwithstanding any other provision of this Article, | ||||||
12 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
13 | of subsection (a) of Section 16-122.9: | ||||||
14 | (1) The initial increase in retirement annuity under | ||||||
15 | this Section shall occur on the January 1 occurring either | ||||||
16 | on or after the attainment of age 67 or the fifth | ||||||
17 | anniversary of the annuity start date, whichever is | ||||||
18 | earlier. | ||||||
19 | (2) The amount of each automatic annual increase in | ||||||
20 | retirement annuity and survivor benefit occurring on or | ||||||
21 | after the effective date of that election shall be | ||||||
22 | calculated as a percentage of the originally granted | ||||||
23 | retirement annuity or survivor benefit, equal to 3% or | ||||||
24 | one-half the annual unadjusted percentage increase (but | ||||||
25 | not less than zero) in the consumer price index-u for the | ||||||
26 | 12 months ending with the September preceding each November |
| |||||||
| |||||||
1 | 1, whichever is less. If the annual unadjusted percentage | ||||||
2 | change in the consumer price index-u for the 12 months | ||||||
3 | ending with the September preceding each November 1 is zero | ||||||
4 | or there is a decrease, then the annuity shall not be | ||||||
5 | increased. | ||||||
6 | For the purposes of this Section, "consumer price index-u" | ||||||
7 | means
the index published by the Bureau of Labor Statistics of | ||||||
8 | the United States
Department of Labor that measures the average | ||||||
9 | change in prices of goods and
services purchased by all urban | ||||||
10 | consumers, United States city average, all
items, 1982-84 = | ||||||
11 | 100. The new amount resulting from each annual adjustment
shall | ||||||
12 | be determined by the Public Pension Division of the Department | ||||||
13 | of Insurance and made available to the board of the retirement | ||||||
14 | system by November 1 of each year. | ||||||
15 | (b) The automatic annual increases in annuity provided | ||||||
16 | under this Section
shall not be applicable unless a member has | ||||||
17 | made contributions toward such
increases for a period | ||||||
18 | equivalent to one full year of creditable service.
If a member | ||||||
19 | contributes for service performed after August 26, 1969 but
the | ||||||
20 | member becomes an annuitant before such contributions amount to | ||||||
21 | one
full year's contributions based on the salary at the date | ||||||
22 | of retirement,
he or she may pay the necessary balance of the | ||||||
23 | contributions to the system
and be eligible for the automatic | ||||||
24 | annual increases in annuity provided under
this Section.
| ||||||
25 | (c) Each member shall make contributions toward the cost of | ||||||
26 | the automatic
annual increases in annuity as provided under |
| |||||||
| |||||||
1 | Section 16-152.
| ||||||
2 | (d) An annuitant receiving a retirement annuity or | ||||||
3 | disability retirement
annuity on July 1, 1969, who subsequently | ||||||
4 | re-enters service as a teacher
is eligible for the automatic | ||||||
5 | annual increases in annuity provided under
this Section if he | ||||||
6 | or she renders at least one year of creditable service
| ||||||
7 | following the latest re-entry.
| ||||||
8 | (e) In addition to the automatic annual increases in | ||||||
9 | annuity provided
under this Section, an annuitant who meets the | ||||||
10 | service requirements of this
Section and whose retirement | ||||||
11 | annuity or disability retirement annuity began
on or before | ||||||
12 | January 1, 1971 shall receive, on January 1, 1981, an increase
| ||||||
13 | in the annuity then being paid of one dollar per month for each | ||||||
14 | year of
creditable service. On January 1, 1982, an annuitant | ||||||
15 | whose retirement
annuity or disability retirement annuity | ||||||
16 | began on or before January 1, 1977
shall receive an increase in | ||||||
17 | the annuity then being paid of one dollar per
month for each | ||||||
18 | year of creditable service.
| ||||||
19 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
20 | began
on or before January 1, 1977, shall receive an increase | ||||||
21 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
22 | creditable service times the
number of years that have elapsed | ||||||
23 | since the annuity began.
| ||||||
24 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
25 | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
|
| |||||||
| |||||||
1 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
2 | which has been held unconstitutional)
| ||||||
3 | Sec. 16-136.1. Annual increase for certain annuitants. | ||||||
4 | (a) Any annuitant receiving a retirement annuity on June | ||||||
5 | 30, 1969 and
any member retiring after June 30, 1969 shall be | ||||||
6 | eligible for the annual
increases provided under this Section | ||||||
7 | provided the annuitant is ineligible
for the automatic annual | ||||||
8 | increase in annuity provided under Section
16-133.1, and | ||||||
9 | provided further that (1) retirement occurred at age 55 or over
| ||||||
10 | and was based on 5 or more years of creditable service or (2) | ||||||
11 | if
retirement occurred prior to age 55, the retirement annuity
| ||||||
12 | was based on 20 or more years of creditable service.
| ||||||
13 | (b) Except as otherwise provided in subsection (b-1), an An | ||||||
14 | annuitant entitled to increases under this Section shall be | ||||||
15 | entitled
to the initial increase as of the later of: (1) | ||||||
16 | January 1 following
attainment of age 65, (2) January 1 | ||||||
17 | following the first anniversary
of retirement, or (3) the first | ||||||
18 | day of the month following receipt of
the required qualifying | ||||||
19 | contribution from the annuitant. The initial monthly
increase | ||||||
20 | shall be computed on the basis of the period elapsed between
| ||||||
21 | the later of the date of last retirement or attainment of age | ||||||
22 | 50 and the
date of qualification for the initial increase, at | ||||||
23 | the rate of 1 1/2% of
the original monthly retirement annuity | ||||||
24 | per year for periods
prior to September 1, 1971, and at the | ||||||
25 | rate of 2% per year for periods between
September 1, 1971 and | ||||||
26 | September 1, 1978, and at the rate of 3% per year
for periods |
| |||||||
| |||||||
1 | thereafter.
| ||||||
2 | Except as otherwise provided in subsection (b-1), if | ||||||
3 | applicable, an An annuitant who has received an initial | ||||||
4 | increase under this Section ,
shall be entitled, on each January | ||||||
5 | 1 following the granting of the
initial increase, to an | ||||||
6 | increase of 3% of the original monthly retirement
annuity for | ||||||
7 | increases granted prior to January 1, 1990, and equal to 3%
of | ||||||
8 | the total annuity, including previous increases under this | ||||||
9 | Section, for
increases granted on or after January 1, 1990. The | ||||||
10 | original monthly
retirement annuity for computations under | ||||||
11 | this subsection
(b) shall be considered to be $83.34 for any | ||||||
12 | annuitant entitled to benefits
under Section 16-134. The | ||||||
13 | minimum original disability retirement annuity
for | ||||||
14 | computations under this subsection (b) shall be considered to | ||||||
15 | be
$33.34 per month for any annuitant retired on account of | ||||||
16 | disability.
| ||||||
17 | (b-1) Notwithstanding any other provision of this Article, | ||||||
18 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
19 | of subsection (a) of Section 16-122.9: | ||||||
20 | (1) The initial increase in retirement annuity under | ||||||
21 | this Section shall occur on the January 1 occurring either | ||||||
22 | on or after the attainment of age 67 or the fifth | ||||||
23 | anniversary of the annuity start date, whichever is | ||||||
24 | earlier. | ||||||
25 | (2) The amount of each automatic annual increase in | ||||||
26 | retirement annuity or survivor benefit occurring on or |
| |||||||
| |||||||
1 | after the effective date of that election shall be | ||||||
2 | calculated as a percentage of the originally granted | ||||||
3 | retirement annuity or survivor benefit, equal to 3% or | ||||||
4 | one-half the annual unadjusted percentage increase (but | ||||||
5 | not less than zero) in the consumer price index-u for the | ||||||
6 | 12 months ending with the September preceding each November | ||||||
7 | 1, whichever is less. If the annual unadjusted percentage | ||||||
8 | change in the consumer price index-u for the 12 months | ||||||
9 | ending with the September preceding each November 1 is zero | ||||||
10 | or there is a decrease, then the annuity shall not be | ||||||
11 | increased. | ||||||
12 | For the purposes of this Section, "consumer price index-u" | ||||||
13 | means
the index published by the Bureau of Labor Statistics of | ||||||
14 | the United States
Department of Labor that measures the average | ||||||
15 | change in prices of goods and
services purchased by all urban | ||||||
16 | consumers, United States city average, all
items, 1982-84 = | ||||||
17 | 100. The new amount resulting from each annual adjustment
shall | ||||||
18 | be determined by the Public Pension Division of the Department | ||||||
19 | of Insurance and made available to the board of the retirement | ||||||
20 | system by November 1 of each year. | ||||||
21 | (c) An annuitant who otherwise qualifies for annual
| ||||||
22 | increases under this Section must make a one-time payment of
1% | ||||||
23 | of the monthly final average salary for each full year of the | ||||||
24 | creditable
service forming the basis of the retirement annuity | ||||||
25 | or, if the
retirement annuity was not computed using final | ||||||
26 | average salary, 1% of the
original monthly retirement annuity |
| |||||||
| |||||||
1 | for each full year of service
forming the basis of the | ||||||
2 | retirement annuity.
| ||||||
3 | (d) In addition to other increases which may be provided by | ||||||
4 | this Section,
regardless of creditable service, annuitants not | ||||||
5 | meeting
the service requirements of Section 16-133.1 and whose | ||||||
6 | retirement annuity
began on or before January 1, 1971 shall | ||||||
7 | receive, on January
1, 1981, an increase in the retirement | ||||||
8 | annuity then being paid
of one dollar per month for each year | ||||||
9 | of creditable service forming
the basis of the retirement | ||||||
10 | allowance. On January 1, 1982, annuitants
whose retirement | ||||||
11 | annuity began on or before January 1, 1977, shall receive
an | ||||||
12 | increase in the retirement annuity then being paid of one | ||||||
13 | dollar per
month for each year of creditable service.
| ||||||
14 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
15 | began
on or before January 1, 1977, shall receive an increase | ||||||
16 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
17 | creditable service times the
number of years that have elapsed | ||||||
18 | since the annuity began.
| ||||||
19 | (Source: P.A. 86-273.)
| ||||||
20 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been held unconstitutional)
| ||||||
23 | Sec. 16-152. Contributions by members.
| ||||||
24 | (a) Except as otherwise provided in subsection (a-5), each | ||||||
25 | Each member shall make contributions for membership service to |
| |||||||
| |||||||
1 | this
System as follows:
| ||||||
2 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
3 | salary towards the
cost of the retirement annuity. Such | ||||||
4 | contributions shall be deemed "normal
contributions".
| ||||||
5 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
6 | of salary toward
the cost of the automatic annual increase | ||||||
7 | in retirement annuity provided
under Section 16-133.1.
| ||||||
8 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
9 | salary towards the
cost of survivor benefits. Such | ||||||
10 | contributions shall not be credited to
the individual | ||||||
11 | account of the member and shall not be subject to refund
| ||||||
12 | except as provided under Section 16-143.2.
| ||||||
13 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
14 | salary toward the cost of the early retirement without | ||||||
15 | discount option provided under Section 16-133.2. This | ||||||
16 | contribution shall cease upon termination of the early | ||||||
17 | retirement without discount option as provided in Section | ||||||
18 | 16-133.2.
| ||||||
19 | (a-5) Beginning July 1, 2018 or the effective date of the | ||||||
20 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
21 | (a) of Section 16-122.9, whichever is later, in lieu of the | ||||||
22 | contributions otherwise required under subsection (a), each | ||||||
23 | Tier 1 employee who made the election under paragraph (1) of | ||||||
24 | subsection (a) of Section 16-122.9 shall make contributions as | ||||||
25 | follows: | ||||||
26 | (1) Contributions of 7.50% of salary towards the cost |
| |||||||
| |||||||
1 | of the retirement annuity. Such contributions shall be | ||||||
2 | deemed "normal contributions". | ||||||
3 | (2) Contributions of 0.60% towards the cost of survivor | ||||||
4 | benefits. Such contributions shall not be credited to the | ||||||
5 | individual account of the member and shall not be subject | ||||||
6 | to refund except as provided in Section 16-143.2. | ||||||
7 | (3) Contributions of 0.40% of salary toward the cost of | ||||||
8 | the early retirement without discount option provided | ||||||
9 | under Section 16-133.2. This contribution shall cease upon | ||||||
10 | termination of the early retirement without discount | ||||||
11 | option as provided in Section 16-133.2. | ||||||
12 | (b) The minimum required contribution for any year of | ||||||
13 | full-time
teaching service shall be $192.
| ||||||
14 | (c) Contributions shall not be required of any annuitant | ||||||
15 | receiving
a retirement annuity who is given employment as | ||||||
16 | permitted under Section 16-118 or 16-150.1.
| ||||||
17 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
18 | retires with
more than 34 years of creditable service, and | ||||||
19 | (iii) does not elect to qualify
for the augmented rate under | ||||||
20 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
21 | to receive a partial refund of contributions made under this
| ||||||
22 | Section for service occurring after the later of June 30, 1998 | ||||||
23 | or attainment
of 34 years of creditable service, in an amount | ||||||
24 | equal to 1.00% of the salary
upon which those contributions | ||||||
25 | were based.
| ||||||
26 | (e) A member's contributions toward the cost of early |
| |||||||
| |||||||
1 | retirement without discount made under item (a)(4) of this | ||||||
2 | Section shall not be refunded if the member has elected early | ||||||
3 | retirement without discount under Section 16-133.2 and has | ||||||
4 | begun to receive a retirement annuity under this Article | ||||||
5 | calculated in accordance with that election. Otherwise, a | ||||||
6 | member's contributions toward the cost of early retirement | ||||||
7 | without discount made under item (a)(4) of this Section shall | ||||||
8 | be refunded according to whichever one of the following | ||||||
9 | circumstances occurs first: | ||||||
10 | (1) The contributions shall be refunded to the member, | ||||||
11 | without interest, within 120 days after the member's | ||||||
12 | retirement annuity commences, if the member does not elect | ||||||
13 | early retirement without discount under Section 16-133.2. | ||||||
14 | (2) The contributions shall be included, without | ||||||
15 | interest, in any refund claimed by the member under Section | ||||||
16 | 16-151. | ||||||
17 | (3) The contributions shall be refunded to the member's | ||||||
18 | designated beneficiary (or if there is no beneficiary, to | ||||||
19 | the member's estate), without interest, if the member dies | ||||||
20 | without having begun to receive a retirement annuity under | ||||||
21 | this Article. | ||||||
22 | (4) The contributions shall be refunded to the member, | ||||||
23 | without interest, if the early retirement without discount | ||||||
24 | option provided under subsection (d) of Section 16-133.2 is | ||||||
25 | terminated. In that event, the System shall provide to the | ||||||
26 | member, within 120 days after the option is terminated, an |
| |||||||
| |||||||
1 | application for a refund of those contributions. | ||||||
2 | (Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, | ||||||
3 | eff. 7-28-16.)
| ||||||
4 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been held unconstitutional)
| ||||||
7 | Sec. 16-158. Contributions by State and other employing | ||||||
8 | units.
| ||||||
9 | (a) The State shall make contributions to the System by | ||||||
10 | means of
appropriations from the Common School Fund and other | ||||||
11 | State funds of amounts
which, together with other employer | ||||||
12 | contributions, employee contributions,
investment income, and | ||||||
13 | other income, will be sufficient to meet the cost of
| ||||||
14 | maintaining and administering the System on a 90% funded basis | ||||||
15 | in accordance
with actuarial recommendations.
| ||||||
16 | The Board shall determine the amount of State contributions | ||||||
17 | required for
each fiscal year on the basis of the actuarial | ||||||
18 | tables and other assumptions
adopted by the Board and the | ||||||
19 | recommendations of the actuary, using the formula
in subsection | ||||||
20 | (b-3).
| ||||||
21 | (a-1) Annually, on or before November 15 until November 15, | ||||||
22 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
23 | required State contribution for the coming fiscal
year. The | ||||||
24 | certification under this subsection (a-1) shall include a copy | ||||||
25 | of the actuarial recommendations
upon which it is based and |
| |||||||
| |||||||
1 | shall specifically identify the System's projected State | ||||||
2 | normal cost for that fiscal year.
| ||||||
3 | On or before May 1, 2004, the Board shall recalculate and | ||||||
4 | recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
| ||||||
9 | On or before July 1, 2005, the Board shall recalculate and | ||||||
10 | recertify
to the Governor the amount of the required State
| ||||||
11 | contribution to the System for State fiscal year 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by this amendatory Act of the 94th General Assembly.
| ||||||
14 | On or before April 1, 2011, the Board shall recalculate and | ||||||
15 | recertify to the Governor the amount of the required State | ||||||
16 | contribution to the System for State fiscal year 2011, applying | ||||||
17 | the changes made by Public Act 96-889 to the System's assets | ||||||
18 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
19 | was approved on that date. | ||||||
20 | (a-5) On or before November 1 of each year, beginning | ||||||
21 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
22 | the Governor, and the General Assembly a proposed certification | ||||||
23 | of the amount of the required State contribution to the System | ||||||
24 | for the next fiscal year, along with all of the actuarial | ||||||
25 | assumptions, calculations, and data upon which that proposed | ||||||
26 | certification is based. On or before January 1 of each year, |
| |||||||
| |||||||
1 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
2 | preliminary report concerning the proposed certification and | ||||||
3 | identifying, if necessary, recommended changes in actuarial | ||||||
4 | assumptions that the Board must consider before finalizing its | ||||||
5 | certification of the required State contributions. On or before | ||||||
6 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
7 | shall certify to the Governor and the General Assembly the | ||||||
8 | amount of the required State contribution for the next fiscal | ||||||
9 | year. The Board's certification must note any deviations from | ||||||
10 | the State Actuary's recommended changes, the reason or reasons | ||||||
11 | for not following the State Actuary's recommended changes, and | ||||||
12 | the fiscal impact of not following the State Actuary's | ||||||
13 | recommended changes on the required State contribution. | ||||||
14 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
15 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
16 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
17 | amount of the State contribution to the System that would have
| ||||||
18 | been required for the next fiscal year if Section 1-161, | ||||||
19 | subsection (b-4) of Section 16-158, and the changes made to | ||||||
20 | Section 1-160 by this amendatory Act of the 100th General | ||||||
21 | Assembly had not taken effect, using the
best and most recent | ||||||
22 | available data but based on the law in
effect on May 31, 2019. | ||||||
23 | The Board shall submit to the State
Actuary, the Governor, and | ||||||
24 | the General Assembly a proposed
certification, along with the | ||||||
25 | relevant law, actuarial
assumptions, calculations, and data | ||||||
26 | upon which that
certification is based. On or before January 1, |
| |||||||
| |||||||
1 | 2020 and every January 1 thereafter, the State Actuary shall | ||||||
2 | issue a
preliminary report concerning the proposed | ||||||
3 | certification and
identifying, if necessary, recommended | ||||||
4 | changes in actuarial
assumptions that the Board must consider | ||||||
5 | before finalizing its
certification. On or before January 15, | ||||||
6 | 2020 and every January
1 thereafter, the Board shall certify to | ||||||
7 | the Governor and the
General Assembly the amount of the State | ||||||
8 | contribution to the
System that would have been required for | ||||||
9 | the next fiscal year
if if Section 1-161, subsection (b-4) of | ||||||
10 | Section 16-158, and the changes made to Section 1-160 by this | ||||||
11 | amendatory Act of the 100th General Assembly had not taken | ||||||
12 | effect, using the best and most recent available data but
based | ||||||
13 | on the law in effect on May 31, 2019. The Board's
certification | ||||||
14 | must note any deviations from the State Actuary's
recommended | ||||||
15 | changes, the reason or reasons for not following
the State | ||||||
16 | Actuary's recommended changes, and the impact of not
following | ||||||
17 | the State Actuary's recommended changes. | ||||||
18 | (a-15) As soon as practical after the effective date of | ||||||
19 | this amendatory Act of the 100th General Assembly, the Board | ||||||
20 | shall recalculate and recertify to the State Actuary, the | ||||||
21 | Governor, and the General Assembly the amount of the State | ||||||
22 | contribution to the System for State fiscal year 2018, taking | ||||||
23 | into account the changes in required State contributions made | ||||||
24 | by this amendatory Act of the 100th General Assembly. The State | ||||||
25 | Actuary shall review the assumptions and valuations underlying | ||||||
26 | the Board's revised certification and issue a preliminary |
| |||||||
| |||||||
1 | report concerning the proposed recertification and | ||||||
2 | identifying, if necessary, recommended changes in actuarial | ||||||
3 | assumptions that the Board must consider before finalizing its | ||||||
4 | certification of the required State contributions. The Board's | ||||||
5 | final certification must note any deviations from the State | ||||||
6 | Actuary's recommended changes, the reason or reasons for not | ||||||
7 | following the State Actuary's recommended changes, and the | ||||||
8 | fiscal impact of not following the State Actuary's recommended | ||||||
9 | changes on the required State contribution. | ||||||
10 | (a-20) On or before May 1, 2018, the Board shall | ||||||
11 | recalculate and recertify
to the Governor and the General | ||||||
12 | Assembly the amount of the required State
contribution to the | ||||||
13 | System for State fiscal year 2019, taking into account the | ||||||
14 | effect on the System's liabilities of the elections made under | ||||||
15 | Section 16-122.9. | ||||||
16 | On or before October 1, 2018, the Board shall recalculate | ||||||
17 | and recertify to the Governor and the General Assembly the | ||||||
18 | amount of the required State contribution to the System for | ||||||
19 | State fiscal year 2019, taking into account the reduction | ||||||
20 | specified under item (3) of subsection (b-3) of this Section. | ||||||
21 | (b) Through State fiscal year 1995, the State contributions | ||||||
22 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
23 | the School Code.
| ||||||
24 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
25 | of each month,
or as soon thereafter as may be practicable, the | ||||||
26 | Board shall submit vouchers
for payment of State contributions |
| |||||||
| |||||||
1 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
2 | required annual State contribution certified under
subsection | ||||||
3 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
4 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
5 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
6 | excess of the fiscal year 2004
certified contribution amount | ||||||
7 | determined under this Section
after taking into consideration | ||||||
8 | the transfer to the System
under subsection (a) of Section | ||||||
9 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
10 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
11 | funds appropriated to the System for that
fiscal year.
| ||||||
12 | If in any month the amount remaining unexpended from all | ||||||
13 | other appropriations
to the System for the applicable fiscal | ||||||
14 | year (including the appropriations to
the System under Section | ||||||
15 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
16 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
17 | amount
lawfully vouchered under this subsection, the | ||||||
18 | difference shall be paid from the
Common School Fund under the | ||||||
19 | continuing appropriation authority provided in
Section 1.1 of | ||||||
20 | the State Pension Funds Continuing Appropriation Act.
| ||||||
21 | (b-2) Allocations from the Common School Fund apportioned | ||||||
22 | to school
districts not coming under this System shall not be | ||||||
23 | diminished or affected by
the provisions of this Article.
| ||||||
24 | (b-3) For State fiscal years 2018 through 2045 (except as | ||||||
25 | otherwise provided for fiscal year 2019), the minimum | ||||||
26 | contribution to the System to be made by the State for each |
| |||||||
| |||||||
1 | fiscal year shall be an amount determined by the System to be | ||||||
2 | sufficient to bring the total assets of the System up to 90% of | ||||||
3 | the total actuarial liabilities of the System by the end of | ||||||
4 | State fiscal year 2045. In making these determinations, the | ||||||
5 | required State contribution shall be calculated each year as a | ||||||
6 | level percentage of total payroll, including payroll that is | ||||||
7 | not deemed pensionable, but excluding payroll attributable to | ||||||
8 | participants in the defined contribution plan under Section | ||||||
9 | 16-205.1, over the years remaining to and including fiscal year | ||||||
10 | 2045 and shall be determined under the projected unit credit | ||||||
11 | actuarial cost method. | ||||||
12 | For State fiscal year 2019: | ||||||
13 | (1) The initial calculation and certification shall be | ||||||
14 | based on the amount determined above. | ||||||
15 | (2) For purposes of the recertification due on or | ||||||
16 | before May 1, 2018, the recalculation of the required State | ||||||
17 | contribution for fiscal year 2019 shall take into account | ||||||
18 | the effect on the System's liabilities of the elections | ||||||
19 | made under Section 16-122.9. | ||||||
20 | (3) For purposes of the recertification due on or | ||||||
21 | before October 1, 2018, the total required State | ||||||
22 | contribution for fiscal year 2019 shall be reduced by the | ||||||
23 | amount of the consideration payments made to Tier 1 | ||||||
24 | employees who made the election under paragraph (1) of | ||||||
25 | subsection (a) of Section 16-122.9. | ||||||
26 | Beginning in State fiscal year 2018, any increase or |
| |||||||
| |||||||
1 | decrease in State contribution over the prior fiscal year due | ||||||
2 | exclusively to changes in actuarial or investment assumptions | ||||||
3 | adopted by the Board shall be included in the State | ||||||
4 | contribution to the System, as a percentage of the applicable | ||||||
5 | employee payroll, and shall be increased in equal annual | ||||||
6 | increments so that by the State fiscal year occurring 5 years | ||||||
7 | after the adoption of the actuarial or investment assumptions, | ||||||
8 | the State is contributing at the rate otherwise required under | ||||||
9 | this Section. | ||||||
10 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
11 | contribution
to the System to be made by the State for each | ||||||
12 | fiscal year shall be an amount
determined by the System to be | ||||||
13 | sufficient to bring the total assets of the
System up to 90% of | ||||||
14 | the total actuarial liabilities of the System by the end of
| ||||||
15 | State fiscal year 2045. In making these determinations, the | ||||||
16 | required State
contribution shall be calculated each year as a | ||||||
17 | level percentage of payroll
over the years remaining to and | ||||||
18 | including fiscal year 2045 and shall be
determined under the | ||||||
19 | projected unit credit actuarial cost method.
| ||||||
20 | For State fiscal years 1996 through 2005, the State | ||||||
21 | contribution to the
System, as a percentage of the applicable | ||||||
22 | employee payroll, shall be increased
in equal annual increments | ||||||
23 | so that by State fiscal year 2011, the State is
contributing at | ||||||
24 | the rate required under this Section; except that in the
| ||||||
25 | following specified State fiscal years, the State contribution | ||||||
26 | to the System
shall not be less than the following indicated |
| |||||||
| |||||||
1 | percentages of the applicable
employee payroll, even if the | ||||||
2 | indicated percentage will produce a State
contribution in | ||||||
3 | excess of the amount otherwise required under this subsection
| ||||||
4 | and subsection (a), and notwithstanding any contrary | ||||||
5 | certification made under
subsection (a-1) before the effective | ||||||
6 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
7 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
8 | 2003; and
13.56% in FY 2004.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State
contribution for State fiscal year 2006 is | ||||||
11 | $534,627,700.
| ||||||
12 | Notwithstanding any other provision of this Article, the | ||||||
13 | total required State
contribution for State fiscal year 2007 is | ||||||
14 | $738,014,500.
| ||||||
15 | For each of State fiscal years 2008 through 2009, the State | ||||||
16 | contribution to
the System, as a percentage of the applicable | ||||||
17 | employee payroll, shall be
increased in equal annual increments | ||||||
18 | from the required State contribution for State fiscal year | ||||||
19 | 2007, so that by State fiscal year 2011, the
State is | ||||||
20 | contributing at the rate otherwise required under this Section.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State contribution for State fiscal year 2010 is | ||||||
23 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
24 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
25 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
26 | expenses determined by the System's share of total bond |
| |||||||
| |||||||
1 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
2 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
3 | due to the issuance of discounted bonds, if applicable. | ||||||
4 | Notwithstanding any other provision of this Article, the
| ||||||
5 | total required State contribution for State fiscal year 2011 is
| ||||||
6 | the amount recertified by the System on or before April 1, 2011 | ||||||
7 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
8 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
9 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
10 | pro rata share of bond sale
expenses determined by the System's | ||||||
11 | share of total bond
proceeds, (ii) any amounts received from | ||||||
12 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
13 | reduction in bond proceeds
due to the issuance of discounted | ||||||
14 | bonds, if applicable. This amount shall include, in addition to | ||||||
15 | the amount certified by the System, an amount necessary to meet | ||||||
16 | employer contributions required by the State as an employer | ||||||
17 | under paragraph (e) of this Section, which may also be used by | ||||||
18 | the System for contributions required by paragraph (a) of | ||||||
19 | Section 16-127. | ||||||
20 | Beginning in State fiscal year 2046, the minimum State | ||||||
21 | contribution for
each fiscal year shall be the amount needed to | ||||||
22 | maintain the total assets of
the System at 90% of the total | ||||||
23 | actuarial liabilities of the System.
| ||||||
24 | Amounts received by the System pursuant to Section 25 of | ||||||
25 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
26 | Finance Act in any fiscal year do not reduce and do not |
| |||||||
| |||||||
1 | constitute payment of any portion of the minimum State | ||||||
2 | contribution required under this Article in that fiscal year. | ||||||
3 | Such amounts shall not reduce, and shall not be included in the | ||||||
4 | calculation of, the required State contributions under this | ||||||
5 | Article in any future year until the System has reached a | ||||||
6 | funding ratio of at least 90%. A reference in this Article to | ||||||
7 | the "required State contribution" or any substantially similar | ||||||
8 | term does not include or apply to any amounts payable to the | ||||||
9 | System under Section 25 of the Budget Stabilization Act. | ||||||
10 | Notwithstanding any other provision of this Section, the | ||||||
11 | required State
contribution for State fiscal year 2005 and for | ||||||
12 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
13 | under this Section and
certified under subsection (a-1), shall | ||||||
14 | not exceed an amount equal to (i) the
amount of the required | ||||||
15 | State contribution that would have been calculated under
this | ||||||
16 | Section for that fiscal year if the System had not received any | ||||||
17 | payments
under subsection (d) of Section 7.2 of the General | ||||||
18 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
19 | total debt service payments for that fiscal
year on the bonds | ||||||
20 | issued in fiscal year 2003 for the purposes of that Section | ||||||
21 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
22 | the same as the System's portion of
the total moneys | ||||||
23 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
24 | Obligation Bond Act. In determining this maximum for State | ||||||
25 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
26 | in item (i) shall be increased, as a percentage of the |
| |||||||
| |||||||
1 | applicable employee payroll, in equal increments calculated | ||||||
2 | from the sum of the required State contribution for State | ||||||
3 | fiscal year 2007 plus the applicable portion of the State's | ||||||
4 | total debt service payments for fiscal year 2007 on the bonds | ||||||
5 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
6 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
7 | 2011, the
State is contributing at the rate otherwise required | ||||||
8 | under this Section.
| ||||||
9 | (b-4) For employees first hired on or after 6 months after | ||||||
10 | the effective date of this amendatory Act of the 100th General | ||||||
11 | Assembly who have elected the benefits under Section 1-161 of | ||||||
12 | this Code, the employer shall annually contribute an amount, | ||||||
13 | expressed as a percentage of payroll, equal to the defined | ||||||
14 | benefit normal cost of the defined benefit plan, less the | ||||||
15 | employee contribution, plus 2%. On an annual basis, the System | ||||||
16 | shall certify to each employer the amount of unfunded liability | ||||||
17 | accrued in the employer's account to be paid by the employer so | ||||||
18 | that the System is 90% funded by the end of State fiscal year | ||||||
19 | 2045. The contributions shall be divided equally over a | ||||||
20 | 12-month period and made monthly. The employer shall also | ||||||
21 | contribute an amount equal to the employer defined | ||||||
22 | contribution, as set on an individual employee basis, under | ||||||
23 | paragraph (2) of subsection (k) of Section 1-161 during each | ||||||
24 | pay period. The System shall have the authority to adopt rules | ||||||
25 | regarding implementation of employer contributions. | ||||||
26 | (c) Payment of the required State contributions and of all |
| |||||||
| |||||||
1 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
2 | other benefits granted
under or assumed by this System, and all | ||||||
3 | expenses in connection with the
administration and operation | ||||||
4 | thereof, are obligations of the State.
| ||||||
5 | If members are paid from special trust or federal funds | ||||||
6 | which are
administered by the employing unit, whether school | ||||||
7 | district or other
unit, the employing unit shall pay to the | ||||||
8 | System from such
funds the full accruing retirement costs based | ||||||
9 | upon that
service, which, beginning July 1, 2014, shall be at a | ||||||
10 | rate, expressed as a percentage of salary, equal to the total | ||||||
11 | minimum contribution
to the System to be made by the State for | ||||||
12 | that fiscal year, including both normal cost and unfunded | ||||||
13 | liability components, expressed as a percentage of payroll, as | ||||||
14 | determined by the System under subsection (b-3) of this | ||||||
15 | Section. Employer contributions, based on
salary paid to | ||||||
16 | members from federal funds, may be forwarded by the | ||||||
17 | distributing
agency of the State of Illinois to the System | ||||||
18 | prior to allocation, in an
amount determined in accordance with | ||||||
19 | guidelines established by such
agency and the System. Any | ||||||
20 | contribution for fiscal year 2015 collected as a result of the | ||||||
21 | change made by this amendatory Act of the 98th General Assembly | ||||||
22 | shall be considered a State contribution under subsection (b-3) | ||||||
23 | of this Section.
| ||||||
24 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
25 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
26 | employer's normal cost
of benefits based upon the teacher's |
| |||||||
| |||||||
1 | service, in addition to
employee contributions, as determined | ||||||
2 | by the System. Such employer
contributions shall be forwarded | ||||||
3 | monthly in accordance with guidelines
established by the | ||||||
4 | System.
| ||||||
5 | However, with respect to benefits granted under Section | ||||||
6 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
7 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
8 | (rather than 20%) of the member's
highest annual salary rate | ||||||
9 | for each year of creditable service granted, and
the employer | ||||||
10 | shall also pay the required employee contribution on behalf of
| ||||||
11 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
12 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
13 | 16-106 who is serving in that capacity
while on leave of | ||||||
14 | absence from another employer under this Article shall not
be | ||||||
15 | considered an employee of the employer from which the teacher | ||||||
16 | is on leave.
| ||||||
17 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
18 | shall pay to the System an employer contribution computed as | ||||||
19 | follows:
| ||||||
20 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
21 | employer
contribution shall be equal to 0.3% of each | ||||||
22 | teacher's salary.
| ||||||
23 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
24 | contribution shall be equal to 0.58% of each teacher's | ||||||
25 | salary.
| ||||||
26 | The school district or other employing unit may pay these |
| |||||||
| |||||||
1 | employer
contributions out of any source of funding available | ||||||
2 | for that purpose and
shall forward the contributions to the | ||||||
3 | System on the schedule established
for the payment of member | ||||||
4 | contributions.
| ||||||
5 | These employer contributions are intended to offset a | ||||||
6 | portion of the cost
to the System of the increases in | ||||||
7 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
8 | Each employer of teachers is entitled to a credit against | ||||||
9 | the contributions
required under this subsection (e) with | ||||||
10 | respect to salaries paid to teachers
for the period January 1, | ||||||
11 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
12 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
13 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
14 | paid to teachers for that
period.
| ||||||
15 | The additional 1% employee contribution required under | ||||||
16 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
17 | responsibility of the teacher and not the
teacher's employer, | ||||||
18 | unless the employer agrees, through collective bargaining
or | ||||||
19 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
20 | If an employer is required by a contract in effect on May | ||||||
21 | 1, 1998 between the
employer and an employee organization to | ||||||
22 | pay, on behalf of all its full-time
employees
covered by this | ||||||
23 | Article, all mandatory employee contributions required under
| ||||||
24 | this Article, then the employer shall be excused from paying | ||||||
25 | the employer
contribution required under this subsection (e) | ||||||
26 | for the balance of the term
of that contract. The employer and |
| |||||||
| |||||||
1 | the employee organization shall jointly
certify to the System | ||||||
2 | the existence of the contractual requirement, in such
form as | ||||||
3 | the System may prescribe. This exclusion shall cease upon the
| ||||||
4 | termination, extension, or renewal of the contract at any time | ||||||
5 | after May 1,
1998.
| ||||||
6 | (f) For school years beginning on or after June 1, 2005 and | ||||||
7 | before July 1, 2018, if If the amount of a teacher's salary for | ||||||
8 | any school year used to determine final average salary exceeds | ||||||
9 | the member's annual full-time salary rate with the same | ||||||
10 | employer for the previous school year by more than 6%, the | ||||||
11 | teacher's employer shall pay to the System, in addition to all | ||||||
12 | other payments required under this Section and in accordance | ||||||
13 | with guidelines established by the System, the present value of | ||||||
14 | the increase in benefits resulting from the portion of the | ||||||
15 | increase in salary that is in excess of 6%. This present value | ||||||
16 | shall be computed by the System on the basis of the actuarial | ||||||
17 | assumptions and tables used in the most recent actuarial | ||||||
18 | valuation of the System that is available at the time of the | ||||||
19 | computation. If a teacher's salary for the 2005-2006 school | ||||||
20 | year is used to determine final average salary under this | ||||||
21 | subsection (f), then the changes made to this subsection (f) by | ||||||
22 | Public Act 94-1057 shall apply in calculating whether the | ||||||
23 | increase in his or her salary is in excess of 6%. For the | ||||||
24 | purposes of this Section, change in employment under Section | ||||||
25 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
26 | constitute a change in employer. The System may require the |
| |||||||
| |||||||
1 | employer to provide any pertinent information or | ||||||
2 | documentation.
The changes made to this subsection (f) by this | ||||||
3 | amendatory Act of the 94th General Assembly apply without | ||||||
4 | regard to whether the teacher was in service on or after its | ||||||
5 | effective date.
| ||||||
6 | Whenever it determines that a payment is or may be required | ||||||
7 | under this subsection, the System shall calculate the amount of | ||||||
8 | the payment and bill the employer for that amount. The bill | ||||||
9 | shall specify the calculations used to determine the amount | ||||||
10 | due. If the employer disputes the amount of the bill, it may, | ||||||
11 | within 30 days after receipt of the bill, apply to the System | ||||||
12 | in writing for a recalculation. The application must specify in | ||||||
13 | detail the grounds of the dispute and, if the employer asserts | ||||||
14 | that the calculation is subject to subsection (g) or (h) of | ||||||
15 | this Section, must include an affidavit setting forth and | ||||||
16 | attesting to all facts within the employer's knowledge that are | ||||||
17 | pertinent to the applicability of that subsection. Upon | ||||||
18 | receiving a timely application for recalculation, the System | ||||||
19 | shall review the application and, if appropriate, recalculate | ||||||
20 | the amount due.
| ||||||
21 | The employer contributions required under this subsection | ||||||
22 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
23 | receipt of the bill. If the employer contributions are not paid | ||||||
24 | within 90 days after receipt of the bill, then interest will be | ||||||
25 | charged at a rate equal to the System's annual actuarially | ||||||
26 | assumed rate of return on investment compounded annually from |
| |||||||
| |||||||
1 | the 91st day after receipt of the bill. Payments must be | ||||||
2 | concluded within 3 years after the employer's receipt of the | ||||||
3 | bill.
| ||||||
4 | (f-1) For school years beginning on or after July 1, 2018, | ||||||
5 | if the amount of a teacher's salary for any school year used to | ||||||
6 | determine final average salary exceeds the member's annual | ||||||
7 | full-time salary rate with the same employer for the previous | ||||||
8 | school year by more than the unadjusted percentage increase in | ||||||
9 | the consumer price index-u for the calendar year immediately | ||||||
10 | preceding the beginning of the school year, published by the | ||||||
11 | Public Pension Division of the Department of Insurance by | ||||||
12 | November 1 of each year, then the teacher's employer shall pay | ||||||
13 | to the System, in addition to all other payments required under | ||||||
14 | this Section and in accordance with guidelines established by | ||||||
15 | the System, the present value of the increase in benefits | ||||||
16 | resulting from the portion of the increase in salary that is in | ||||||
17 | excess of the unadjusted percentage increase in the consumer | ||||||
18 | price index-u for the applicable calendar year. This present | ||||||
19 | value shall be computed by the System on the basis of the | ||||||
20 | actuarial assumptions and tables used in the most recent | ||||||
21 | actuarial valuation of the System that is available at the time | ||||||
22 | of the computation. The System may require the employer to | ||||||
23 | provide any pertinent information or documentation. | ||||||
24 | Whenever it determines that a payment is or may be required | ||||||
25 | under this subsection (f-1), the System shall calculate the | ||||||
26 | amount of the payment and bill the employer for that amount. |
| |||||||
| |||||||
1 | The bill shall specify the calculations used to determine the | ||||||
2 | amount due. If the employer disputes the amount of the bill, it | ||||||
3 | may, within 30 days after receipt of the bill, apply to the | ||||||
4 | System in writing for a recalculation. The application must | ||||||
5 | specify in detail the grounds of the dispute and, if the | ||||||
6 | employer asserts that the calculation is subject to subsection | ||||||
7 | (h-1) of this Section, must include an affidavit setting forth | ||||||
8 | and attesting to all facts within the employer's knowledge that | ||||||
9 | are pertinent to the applicability of subsection (h-1). Upon | ||||||
10 | receiving a timely application for recalculation, the System | ||||||
11 | shall review the application and, if appropriate, recalculate | ||||||
12 | the amount due. | ||||||
13 | The employer contributions required under this subsection | ||||||
14 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
15 | receipt of the bill. If the employer contributions are not paid | ||||||
16 | within 90 days after receipt of the bill, then interest shall | ||||||
17 | be charged at a rate equal to the System's annual actuarially | ||||||
18 | assumed rate of return on investment compounded annually from | ||||||
19 | the 91st day after receipt of the bill. Payments must be | ||||||
20 | concluded within 3 years after the employer's receipt of the | ||||||
21 | bill. | ||||||
22 | For the purposes of this Section, "consumer price index-u" | ||||||
23 | means the index published by the Bureau of Labor Statistics of | ||||||
24 | the United States Department of Labor that measures the average | ||||||
25 | change in prices of goods and services purchased by all urban | ||||||
26 | consumers, United States city average, all items, 1982-84 = |
| |||||||
| |||||||
1 | 100. The new amount resulting from each annual adjustment shall | ||||||
2 | be determined by the Public Pension Division of the Department | ||||||
3 | of Insurance and made available to the boards of the retirement | ||||||
4 | systems and pension funds by November 1 of each year. | ||||||
5 | (g) This subsection (g) applies only to payments made or | ||||||
6 | salary increases given on or after June 1, 2005 but before July | ||||||
7 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
8 | require the System to refund any payments received before
July | ||||||
9 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases paid to teachers | ||||||
12 | under contracts or collective bargaining agreements entered | ||||||
13 | into, amended, or renewed before June 1, 2005.
| ||||||
14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude salary increases paid to a | ||||||
16 | teacher at a time when the teacher is 10 or more years from | ||||||
17 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
18 | When assessing payment for any amount due under subsection | ||||||
19 | (f), the System shall exclude salary increases resulting from | ||||||
20 | overload work, including summer school, when the school | ||||||
21 | district has certified to the System, and the System has | ||||||
22 | approved the certification, that (i) the overload work is for | ||||||
23 | the sole purpose of classroom instruction in excess of the | ||||||
24 | standard number of classes for a full-time teacher in a school | ||||||
25 | district during a school year and (ii) the salary increases are | ||||||
26 | equal to or less than the rate of pay for classroom instruction |
| |||||||
| |||||||
1 | computed on the teacher's current salary and work schedule.
| ||||||
2 | When assessing payment for any amount due under subsection | ||||||
3 | (f), the System shall exclude a salary increase resulting from | ||||||
4 | a promotion (i) for which the employee is required to hold a | ||||||
5 | certificate or supervisory endorsement issued by the State | ||||||
6 | Teacher Certification Board that is a different certification | ||||||
7 | or supervisory endorsement than is required for the teacher's | ||||||
8 | previous position and (ii) to a position that has existed and | ||||||
9 | been filled by a member for no less than one complete academic | ||||||
10 | year and the salary increase from the promotion is an increase | ||||||
11 | that results in an amount no greater than the lesser of the | ||||||
12 | average salary paid for other similar positions in the district | ||||||
13 | requiring the same certification or the amount stipulated in | ||||||
14 | the collective bargaining agreement for a similar position | ||||||
15 | requiring the same certification.
| ||||||
16 | When assessing payment for any amount due under subsection | ||||||
17 | (f), the System shall exclude any payment to the teacher from | ||||||
18 | the State of Illinois or the State Board of Education over | ||||||
19 | which the employer does not have discretion, notwithstanding | ||||||
20 | that the payment is included in the computation of final | ||||||
21 | average salary.
| ||||||
22 | (h) When assessing payment for any amount due under | ||||||
23 | subsection (f), the System shall exclude any salary increase | ||||||
24 | described in subsection (g) of this Section given on or after | ||||||
25 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
26 | collective bargaining agreement entered into, amended, or |
| |||||||
| |||||||
1 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
2 | Notwithstanding any other provision of this Section, any | ||||||
3 | payments made or salary increases given after June 30, 2014 | ||||||
4 | shall be used in assessing payment for any amount due under | ||||||
5 | subsection (f) of this Section.
| ||||||
6 | (h-1) When assessing payment for any amount due under | ||||||
7 | subsection (f-1), the System shall exclude earnings increases | ||||||
8 | paid to participants under contracts or collective bargaining | ||||||
9 | agreements entered into, amended, or renewed before the | ||||||
10 | effective date of this amendatory Act of the 100th General | ||||||
11 | Assembly. | ||||||
12 | (i) The System shall prepare a report and file copies of | ||||||
13 | the report with the Governor and the General Assembly by | ||||||
14 | January 1, 2007 that contains all of the following information: | ||||||
15 | (1) The number of recalculations required by the | ||||||
16 | changes made to this Section by Public Act 94-1057 for each | ||||||
17 | employer. | ||||||
18 | (2) The dollar amount by which each employer's | ||||||
19 | contribution to the System was changed due to | ||||||
20 | recalculations required by Public Act 94-1057. | ||||||
21 | (3) The total amount the System received from each | ||||||
22 | employer as a result of the changes made to this Section by | ||||||
23 | Public Act 94-4. | ||||||
24 | (4) The increase in the required State contribution | ||||||
25 | resulting from the changes made to this Section by Public | ||||||
26 | Act 94-1057.
|
| |||||||
| |||||||
1 | (i-5) For school years beginning on or after July 1, 2018, | ||||||
2 | if the amount of a participant's salary for any school year, | ||||||
3 | determined on a full-time equivalent basis, exceeds $140,000, | ||||||
4 | the participant's employer shall pay to the System, in addition | ||||||
5 | to all other payments required under this Section and in | ||||||
6 | accordance with guidelines established by the System, the | ||||||
7 | amount of earnings that exceed $140,000 multiplied by the level | ||||||
8 | percentage of payroll used in that fiscal year as determined by | ||||||
9 | the System to be sufficient to bring the total assets of the | ||||||
10 | System up to 90% of the total actuarial liabilities of the | ||||||
11 | System by the end of State fiscal year 2045. This amount shall | ||||||
12 | be computed by the System on the basis of the actuarial | ||||||
13 | assumptions and tables used in the most recent actuarial | ||||||
14 | valuation of the System that is available at the time of the | ||||||
15 | computation. The System may require the employer to provide any | ||||||
16 | pertinent information or documentation. | ||||||
17 | Whenever it determines that a payment is or may be required | ||||||
18 | under this subsection, the System shall calculate the amount of | ||||||
19 | the payment and bill the employer for that amount. The bill | ||||||
20 | shall specify the calculations used to determine the amount | ||||||
21 | due. If the employer disputes the amount of the bill, it may, | ||||||
22 | within 30 days after receipt of the bill, apply to the System | ||||||
23 | in writing for a recalculation. The application must specify in | ||||||
24 | detail the grounds of the dispute. Upon receiving a timely | ||||||
25 | application for recalculation, the System shall review the | ||||||
26 | application and, if appropriate, recalculate the amount due. |
| |||||||
| |||||||
1 | The employer contributions required under this subsection | ||||||
2 | may be paid in the form of a lump sum within 90 days after | ||||||
3 | receipt of the bill. If the employer contributions are not paid | ||||||
4 | within 90 days after receipt of the bill, then interest will be | ||||||
5 | charged at a rate equal to the System's annual actuarially | ||||||
6 | assumed rate of return on investment compounded annually from | ||||||
7 | the 91st day after receipt of the bill. Payments must be | ||||||
8 | concluded within 3 years after the employer's receipt of the | ||||||
9 | bill. | ||||||
10 | (j) For purposes of determining the required State | ||||||
11 | contribution to the System, the value of the System's assets | ||||||
12 | shall be equal to the actuarial value of the System's assets, | ||||||
13 | which shall be calculated as follows: | ||||||
14 | As of June 30, 2008, the actuarial value of the System's | ||||||
15 | assets shall be equal to the market value of the assets as of | ||||||
16 | that date. In determining the actuarial value of the System's | ||||||
17 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
18 | gains or losses from investment return incurred in a fiscal | ||||||
19 | year shall be recognized in equal annual amounts over the | ||||||
20 | 5-year period following that fiscal year. | ||||||
21 | (k) For purposes of determining the required State | ||||||
22 | contribution to the system for a particular year, the actuarial | ||||||
23 | value of assets shall be assumed to earn a rate of return equal | ||||||
24 | to the system's actuarially assumed rate of return. | ||||||
25 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
26 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
| |||||||
| |||||||
1 | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
| ||||||
2 | (40 ILCS 5/16-190.5 new) | ||||||
3 | Sec. 16-190.5. Accelerated pension benefit payment. | ||||||
4 | (a) As used in this Section: | ||||||
5 | "Eligible person" means a person who: | ||||||
6 | (1) has terminated service; | ||||||
7 | (2) has accrued sufficient service credit to be | ||||||
8 | eligible to receive a retirement annuity under this | ||||||
9 | Article; | ||||||
10 | (3) has not received any retirement annuity under this | ||||||
11 | Article; and | ||||||
12 | (4) does not have a QILDRO in effect against him or her | ||||||
13 | under this Article. | ||||||
14 | "Pension benefit" means the benefits under this Article, or | ||||||
15 | Article 1 as it relates to those benefits, including any | ||||||
16 | anticipated annual increases, that an eligible person is | ||||||
17 | entitled to upon attainment of the applicable retirement age. | ||||||
18 | "Pension benefit" also includes applicable survivor's or | ||||||
19 | disability benefits. | ||||||
20 | (b) Before January 1, 2018, and annually thereafter, the | ||||||
21 | System shall calculate, using actuarial tables and other | ||||||
22 | assumptions adopted by the Board, the net present value of | ||||||
23 | pension benefits for each eligible person and shall offer each | ||||||
24 | eligible person the opportunity to irrevocably elect to receive | ||||||
25 | an amount determined by the System to be equal to 70% of the |
| |||||||
| |||||||
1 | net present value of his or her pension benefits in lieu of | ||||||
2 | receiving any pension benefit. The offer shall specify the | ||||||
3 | dollar amount that the eligible person will receive if he or | ||||||
4 | she so elects and shall expire when a subsequent offer is made | ||||||
5 | to an eligible person or when the System determines that 10% of | ||||||
6 | eligible persons in that year have made the election under this | ||||||
7 | subsection, whichever occurs first. The System shall make a | ||||||
8 | good faith effort to contact every eligible person to notify | ||||||
9 | him or her of the election and of the amount of the accelerated | ||||||
10 | pension benefit payment. | ||||||
11 | Until the System determines that 10% of eligible persons in | ||||||
12 | that year have made the election under this subsection, an | ||||||
13 | eligible person may irrevocably elect to receive an accelerated | ||||||
14 | pension benefit payment in the amount that the System offers | ||||||
15 | under this subsection in lieu of receiving any pension benefit. | ||||||
16 | A person who elects to receive an accelerated pension benefit | ||||||
17 | payment under this Section may not elect to proceed under the | ||||||
18 | Retirement Systems Reciprocal Act with respect to service under | ||||||
19 | this Article. | ||||||
20 | (c) A person's credits and creditable service under this | ||||||
21 | Article shall be terminated upon the person's receipt of an | ||||||
22 | accelerated pension benefit payment under this Section, and no | ||||||
23 | other benefit shall be paid under this Article based on those | ||||||
24 | terminated credits and creditable service, including any | ||||||
25 | retirement, survivor, or other benefit; except that to the | ||||||
26 | extent that participation, benefits, or premiums under the |
| |||||||
| |||||||
1 | State Employees Group Insurance Act of 1971 are based on the | ||||||
2 | amount of service credit, the terminated service credit shall | ||||||
3 | be used for that purpose. | ||||||
4 | (d) If a person who has received an accelerated pension | ||||||
5 | benefit payment under this Section returns to active service | ||||||
6 | under this Article, then: | ||||||
7 | (1) Any benefits under the System earned as a result of | ||||||
8 | that return to active service shall be based solely on the | ||||||
9 | person's credits and creditable service arising from the | ||||||
10 | return to active service. | ||||||
11 | (2) The accelerated pension benefit payment may not be | ||||||
12 | repaid to the System, and the terminated credits and | ||||||
13 | creditable service may not under any circumstances be | ||||||
14 | reinstated. | ||||||
15 | (e) As a condition of receiving an accelerated pension | ||||||
16 | benefit payment, an eligible person must have another | ||||||
17 | retirement plan or account qualified under the Internal Revenue | ||||||
18 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
19 | payment to be rolled into. The accelerated pension benefit | ||||||
20 | payment under this Section may be subject to withholding or | ||||||
21 | payment of applicable taxes, but to the extent permitted by | ||||||
22 | federal law, a person who receives an accelerated pension | ||||||
23 | benefit payment under this Section must direct the System to | ||||||
24 | pay all of that payment as a rollover into another retirement | ||||||
25 | plan or account qualified under the Internal Revenue Code of | ||||||
26 | 1986, as amended. |
| |||||||
| |||||||
1 | (f) Before January 1, 2019 and every January 1 thereafter, | ||||||
2 | the Board shall certify to the Illinois Finance Authority and | ||||||
3 | the General Assembly the amount by which the total amount of | ||||||
4 | accelerated pension benefit payments made under this Section | ||||||
5 | exceed the amount appropriated to the System for the purpose of | ||||||
6 | making those payments. | ||||||
7 | (g) The Board shall adopt any rules necessary to implement | ||||||
8 | this Section. | ||||||
9 | (h) No provision of this Section shall be interpreted in a | ||||||
10 | way that would cause the applicable System to cease to be a | ||||||
11 | qualified plan under the Internal Revenue Code of 1986. | ||||||
12 | (i) Notwithstanding any other provision of this Section, in | ||||||
13 | no case shall the total amount of accelerated pension benefit | ||||||
14 | payments paid under this Section, Section 14-147.5, and Section | ||||||
15 | 15-185.5, and Section 16-190.5 cause the Illinois Finance | ||||||
16 | Authority to issue more than the $250,000,000 of State Pension | ||||||
17 | Obligation Acceleration Bonds authorized in subsection (c-5) | ||||||
18 | of Section 801-40 of the Illinois Finance Authority Act. | ||||||
19 | (40 ILCS 5/16-203) | ||||||
20 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
21 | which has been held unconstitutional)
| ||||||
22 | Sec. 16-203. Application and expiration of new benefit | ||||||
23 | increases. | ||||||
24 | (a) As used in this Section, "new benefit increase" means | ||||||
25 | an increase in the amount of any benefit provided under this |
| |||||||
| |||||||
1 | Article, or an expansion of the conditions of eligibility for | ||||||
2 | any benefit under this Article, that results from an amendment | ||||||
3 | to this Code that takes effect after June 1, 2005 (the | ||||||
4 | effective date of Public Act 94-4). "New benefit increase", | ||||||
5 | however, does not include any benefit increase resulting from | ||||||
6 | the changes made to this Article by Public Act 95-910 or this | ||||||
7 | amendatory Act of the 100th 95th General Assembly. | ||||||
8 | (b) Notwithstanding any other provision of this Code or any | ||||||
9 | subsequent amendment to this Code, every new benefit increase | ||||||
10 | is subject to this Section and shall be deemed to be granted | ||||||
11 | only in conformance with and contingent upon compliance with | ||||||
12 | the provisions of this Section.
| ||||||
13 | (c) The Public Act enacting a new benefit increase must | ||||||
14 | identify and provide for payment to the System of additional | ||||||
15 | funding at least sufficient to fund the resulting annual | ||||||
16 | increase in cost to the System as it accrues. | ||||||
17 | Every new benefit increase is contingent upon the General | ||||||
18 | Assembly providing the additional funding required under this | ||||||
19 | subsection. The Commission on Government Forecasting and | ||||||
20 | Accountability shall analyze whether adequate additional | ||||||
21 | funding has been provided for the new benefit increase and | ||||||
22 | shall report its analysis to the Public Pension Division of the | ||||||
23 | Department of Insurance Financial and Professional Regulation . | ||||||
24 | A new benefit increase created by a Public Act that does not | ||||||
25 | include the additional funding required under this subsection | ||||||
26 | is null and void. If the Public Pension Division determines |
| |||||||
| |||||||
1 | that the additional funding provided for a new benefit increase | ||||||
2 | under this subsection is or has become inadequate, it may so | ||||||
3 | certify to the Governor and the State Comptroller and, in the | ||||||
4 | absence of corrective action by the General Assembly, the new | ||||||
5 | benefit increase shall expire at the end of the fiscal year in | ||||||
6 | which the certification is made.
| ||||||
7 | (d) Every new benefit increase shall expire 5 years after | ||||||
8 | its effective date or on such earlier date as may be specified | ||||||
9 | in the language enacting the new benefit increase or provided | ||||||
10 | under subsection (c). This does not prevent the General | ||||||
11 | Assembly from extending or re-creating a new benefit increase | ||||||
12 | by law. | ||||||
13 | (e) Except as otherwise provided in the language creating | ||||||
14 | the new benefit increase, a new benefit increase that expires | ||||||
15 | under this Section continues to apply to persons who applied | ||||||
16 | and qualified for the affected benefit while the new benefit | ||||||
17 | increase was in effect and to the affected beneficiaries and | ||||||
18 | alternate payees of such persons, but does not apply to any | ||||||
19 | other person, including without limitation a person who | ||||||
20 | continues in service after the expiration date and did not | ||||||
21 | apply and qualify for the affected benefit while the new | ||||||
22 | benefit increase was in effect.
| ||||||
23 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) | ||||||
24 | (40 ILCS 5/16-205.1 new) | ||||||
25 | Sec. 16-205.1. Defined contribution plan. |
| |||||||
| |||||||
1 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
2 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
3 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
4 | by the number of active Tier 1 employees on the effective date | ||||||
5 | of this Section. The defined contribution plan developed under | ||||||
6 | this Section shall be a plan that aggregates employer and | ||||||
7 | employee contributions in individual participant accounts | ||||||
8 | which, after meeting any other requirements, are used for | ||||||
9 | payouts after retirement in accordance with this Section and | ||||||
10 | any other applicable laws. | ||||||
11 | As used in this Section, "defined benefit plan" means the | ||||||
12 | retirement plan available under this Article to Tier 1 | ||||||
13 | employees who have not made the election authorized under this | ||||||
14 | Section. | ||||||
15 | (1) Under the defined contribution plan, an active
Tier | ||||||
16 | 1 employee of this System could elect to cease accruing | ||||||
17 | benefits in the defined benefit plan under this Article and | ||||||
18 | begin accruing benefits for future service in the defined | ||||||
19 | contribution plan. Service credit under the defined | ||||||
20 | contribution plan may be used for determining retirement | ||||||
21 | eligibility under the defined benefit plan. An active Tier | ||||||
22 | 1 employee who elects to cease accruing benefits in his or | ||||||
23 | her defined benefit plan shall be prohibited from | ||||||
24 | purchasing service credit on or after the date of his or | ||||||
25 | her election. A Tier 1 employee making the irrevocable | ||||||
26 | election provided under this Section shall not receive |
| |||||||
| |||||||
1 | interest accruals to his or her benefit under paragraph (A) | ||||||
2 | of subsection (a) of Section 16-133 on or after the date of | ||||||
3 | his or her election. | ||||||
4 | (2) Participants in the defined contribution plan
| ||||||
5 | shall pay employee contributions at the same rate as Tier 1 | ||||||
6 | employees in this System who do not participate in the | ||||||
7 | defined contribution plan. | ||||||
8 | (3) State contributions shall be paid into the
accounts | ||||||
9 | of all participants in the defined contribution plan at a | ||||||
10 | uniform rate, expressed as a percentage of salary and | ||||||
11 | determined for each year. This rate shall be no higher than | ||||||
12 | the employer's normal cost for Tier 1 employees in the | ||||||
13 | defined benefit plan for that year, as determined by the | ||||||
14 | System and expressed as a percentage of salary, and shall | ||||||
15 | be no lower than 0% of salary. The State shall adjust this | ||||||
16 | rate annually. | ||||||
17 | (4) The defined contribution plan shall require 5
years | ||||||
18 | of participation in the defined contribution plan before | ||||||
19 | vesting in State contributions. If the participant fails to | ||||||
20 | vest in them, the State contributions, and the earnings | ||||||
21 | thereon, shall be forfeited. | ||||||
22 | (5) The defined contribution plan may provide for
| ||||||
23 | participants in the plan to be eligible for the defined | ||||||
24 | disability benefits available to other participants under | ||||||
25 | this Article. If it does, the System shall reduce the | ||||||
26 | employee contributions credited to the member's defined |
| |||||||
| |||||||
1 | contribution plan account by an amount determined by the | ||||||
2 | System to cover the cost of offering such benefits. | ||||||
3 | (6) The defined contribution plan shall provide a
| ||||||
4 | variety of options for investments. These options shall | ||||||
5 | include investments in a fund created by the System and | ||||||
6 | managed in accordance with legal and fiduciary standards, | ||||||
7 | as well as investment options otherwise available. | ||||||
8 | (7) The defined contribution plan shall provide a
| ||||||
9 | variety of options for payouts to retirees and their | ||||||
10 | survivors. | ||||||
11 | (8) To the extent authorized under federal law and
as | ||||||
12 | authorized by the System, the plan shall allow former | ||||||
13 | participants in the plan to transfer or roll over employee | ||||||
14 | and vested State contributions, and the earnings thereon, | ||||||
15 | into other qualified retirement plans. | ||||||
16 | (9) The System shall reduce the employee
contributions | ||||||
17 | credited to the member's defined contribution plan account | ||||||
18 | by an amount determined by the System to cover the cost of | ||||||
19 | offering these benefits and any applicable administrative | ||||||
20 | fees. | ||||||
21 | (b) Only persons who are active Tier 1 employees of the | ||||||
22 | System on the effective date of this Section are eligible to | ||||||
23 | participate in the defined contribution plan. Participation in | ||||||
24 | the defined contribution plan shall be limited to the first 5% | ||||||
25 | of eligible persons who elect to participate. The election to | ||||||
26 | participate in the defined contribution plan is voluntary and |
| |||||||
| |||||||
1 | irrevocable. | ||||||
2 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
3 | participate in the defined contribution plan by filing with the | ||||||
4 | System a written application to participate that is received by | ||||||
5 | the System prior to its determination that 5% of eligible | ||||||
6 | persons have elected to participate in the defined contribution | ||||||
7 | plan. | ||||||
8 | When the System first determines that 5% of eligible | ||||||
9 | persons have elected to participate in the defined contribution | ||||||
10 | plan, the System shall provide notice to previously eligible | ||||||
11 | employees that the plan is no longer available and shall cease | ||||||
12 | accepting applications to participate. | ||||||
13 | (d) The System shall make a good faith effort to contact | ||||||
14 | each active Tier 1 employee who is eligible to participate in | ||||||
15 | the defined contribution plan. The System shall mail | ||||||
16 | information describing the option to join the defined | ||||||
17 | contribution plan to each of these employees to his or her last | ||||||
18 | known address on file with the System. If the employee is not | ||||||
19 | responsive to other means of contact, it is sufficient for the | ||||||
20 | System to publish the details of the option on its website. | ||||||
21 | Upon request for further information describing the | ||||||
22 | option, the System shall provide employees with information | ||||||
23 | from the System before exercising the option to join the plan, | ||||||
24 | including information on the impact to their vested benefits or | ||||||
25 | non-vested service. The individual consultation shall include | ||||||
26 | projections of the member's defined benefits at retirement or |
| |||||||
| |||||||
1 | earlier termination of service and the value of the member's | ||||||
2 | account at retirement or earlier termination of service. The | ||||||
3 | System shall not provide advice or counseling with respect to | ||||||
4 | whether the employee should exercise the option. The System | ||||||
5 | shall inform Tier 1 employees who are eligible to participate | ||||||
6 | in the defined contribution plan that they may also wish to | ||||||
7 | obtain information and counsel relating to their option from | ||||||
8 | any other available source, including but not limited to labor | ||||||
9 | organizations, private counsel, and financial advisors. | ||||||
10 | (e) In no event shall the System, its staff, its authorized | ||||||
11 | representatives, or the Board be liable for any information | ||||||
12 | given to an employee under this Section. The System may | ||||||
13 | coordinate with the Illinois Department of Central Management | ||||||
14 | Services and other retirement systems administering a defined | ||||||
15 | contribution plan in accordance with this amendatory Act of the | ||||||
16 | 100th General Assembly to provide information concerning the | ||||||
17 | impact of the option set forth in this Section. | ||||||
18 | (f) Notwithstanding any other provision of this Section, no | ||||||
19 | person shall begin participating in the defined contribution | ||||||
20 | plan until it has attained qualified plan status and received | ||||||
21 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
22 | (g) The System shall report on its progress under this | ||||||
23 | Section, including the available details of the defined | ||||||
24 | contribution plan and the System's plans for informing eligible | ||||||
25 | Tier 1 employees about the plan, to the Governor and the | ||||||
26 | General Assembly on or before January 15, 2018. |
| |||||||
| |||||||
1 | (h) The intent of this amendatory Act of the 100th General | ||||||
2 | Assembly is to ensure that the State's normal cost of | ||||||
3 | participation in the defined contribution plan is similar, and | ||||||
4 | if possible equal, to the State's normal cost of participation | ||||||
5 | in the defined benefit plan, unless a lower State's normal cost | ||||||
6 | is necessary to ensure cost neutrality. | ||||||
7 | (40 ILCS 5/16-206.1 new) | ||||||
8 | Sec. 16-206.1. Defined contribution plan; termination. If | ||||||
9 | the defined contribution plan is terminated or becomes | ||||||
10 | inoperative pursuant to law, then each participant in the plan | ||||||
11 | shall automatically be deemed to have been a contributing Tier | ||||||
12 | 1 employee in the System's defined benefit plan during the time | ||||||
13 | in which he or she participated in the defined contribution | ||||||
14 | plan, and for that purpose the System shall be entitled to | ||||||
15 | recover the amounts in the participant's defined contribution | ||||||
16 | accounts. | ||||||
17 | (40 ILCS 5/17-106.05 new) | ||||||
18 | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
| ||||||
19 | teacher under this Article who first became a member or
| ||||||
20 | participant before January 1, 2011 under any reciprocal
| ||||||
21 | retirement system or pension fund established under this Code
| ||||||
22 | other than a retirement system or pension fund established
| ||||||
23 | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
| ||||||
24 | the purposes of the election under Section 17-115.5, "Tier 1 |
| |||||||
| |||||||
1 | employee" does
not include a teacher under this Article who | ||||||
2 | would qualify as a
Tier 1 employee but who has made an | ||||||
3 | irrevocable election on or
before June 1, 2017 to retire from | ||||||
4 | service pursuant to the terms of an employment contract or a | ||||||
5 | collective bargaining agreement in effect on June 1,
2017, | ||||||
6 | excluding any extension, amendment, or renewal of that
| ||||||
7 | agreement after that date, and has notified the Fund of
that | ||||||
8 | election. | ||||||
9 | (40 ILCS 5/17-113.4 new) | ||||||
10 | Sec. 17-113.4. Salary. "Salary" means any income in any | ||||||
11 | form that qualifies as "average salary" or "annual rate of | ||||||
12 | salary" for purposes of paragraph (1) of subsection (c) of | ||||||
13 | Section 17-116 and "salary" for payroll deduction purposes | ||||||
14 | under Sections 17-130, 17-131, and 17-132. | ||||||
15 | Notwithstanding any other provision of this Section, | ||||||
16 | "salary" does not include any future increase in income that is
| ||||||
17 | offered by an employer for service as a Tier 1 employee under
| ||||||
18 | this Article pursuant to the condition set forth in subsection | ||||||
19 | (c) of
Section 17-115.5 and accepted under that condition by a | ||||||
20 | Tier 1 employee who has made
the election under paragraph (2) | ||||||
21 | of subsection (a) of Section
17-115.5. | ||||||
22 | (40 ILCS 5/17-113.5 new) | ||||||
23 | Sec. 17-113.5. Future increase in income. "Future increase | ||||||
24 | in income" means an increase to a Tier 1 employee's base pay |
| |||||||
| |||||||
1 | that is offered by an employer to the Tier 1 employee for | ||||||
2 | service under this Article after June 30, 2018 that qualifies | ||||||
3 | as "salary", as defined in Section 17-113.4, or would qualify | ||||||
4 | as "salary" but for the fact that it was offered to and | ||||||
5 | accepted by the Tier 1 employee under the condition set forth | ||||||
6 | in subsection (c) of Section 17-115.5. The term "future | ||||||
7 | increase in income" includes an increase to a Tier 1 employee's | ||||||
8 | base pay that is paid to the Tier 1 employee pursuant to an | ||||||
9 | extension, amendment, or renewal of any employment contract or | ||||||
10 | collective bargaining agreement after the effective date of | ||||||
11 | this Section. | ||||||
12 | (40 ILCS 5/17-113.6 new) | ||||||
13 | Sec. 17-113.6. Base pay. As used in Section 17-113.5 of | ||||||
14 | this Code, "base pay" means the greater of either (i) the Tier | ||||||
15 | 1 employee's annualized rate of salary as of June 30, 2018, or | ||||||
16 | (ii) the Tier 1 employee's annualized rate of salary | ||||||
17 | immediately preceding the expiration, renewal, or amendment of | ||||||
18 | an employment contract or collective bargaining agreement in | ||||||
19 | effect on the effective date of this Section. For a person | ||||||
20 | returning to active service as a Tier 1 employee after June 30, | ||||||
21 | 2018, however, "base pay" means the employee's annualized rate | ||||||
22 | of salary as of the employee's last date of service prior to | ||||||
23 | July 1, 2018. The Fund shall calculate the base pay of each | ||||||
24 | Tier 1 employee pursuant to this Section. |
| |||||||
| |||||||
1 | (40 ILCS 5/17-115.5 new) | ||||||
2 | Sec. 17-115.5. Election by Tier 1 employees. | ||||||
3 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
4 | election either: | ||||||
5 | (1) to agree to delay his or her eligibility for | ||||||
6 | automatic annual increases in service retirement pension | ||||||
7 | as provided in Section 17-119.2 and to have the amount of | ||||||
8 | the automatic annual increases in his or her service | ||||||
9 | retirement pension and survivor's pension that are | ||||||
10 | otherwise provided for in this Article calculated, | ||||||
11 | instead, as provided in Section 17-119.2; or | ||||||
12 | (2) to not agree to paragraph (1) of this subsection. | ||||||
13 | The election required under this subsection (a) shall be | ||||||
14 | made by each active Tier 1 employee no earlier than January 1, | ||||||
15 | 2018 and no later than March 31, 2018, except that: | ||||||
16 | (i) a person who becomes a Tier 1 employee under this | ||||||
17 | Article on or after January 1, 2018 must make the election | ||||||
18 | under this subsection (a) within 60 days after becoming a | ||||||
19 | Tier 1 employee; and | ||||||
20 | (ii) a person who returns to active service as a Tier 1 | ||||||
21 | employee under this Article on or after January 1, 2018 and | ||||||
22 | has not yet made an election under this Section must make | ||||||
23 | the election under this subsection (a) within 60 days after | ||||||
24 | returning to active service as a Tier 1 employee. | ||||||
25 | If a Tier 1 employee fails for any reason to make a | ||||||
26 | required election under this subsection within the time |
| |||||||
| |||||||
1 | specified, then the employee shall be deemed to have made the | ||||||
2 | election under paragraph (2) of this subsection. | ||||||
3 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
4 | court or a court of competent jurisdiction pending the entry of | ||||||
5 | a final and unappealable decision, and this Section is | ||||||
6 | determined to be constitutional or otherwise valid by a final | ||||||
7 | unappealable decision of an Illinois court or a court of | ||||||
8 | competent jurisdiction, then the election procedure set forth | ||||||
9 | in subsection (a) of this Section shall commence on the 180th | ||||||
10 | calendar day after the date of the issuance of the final | ||||||
11 | unappealable decision and shall conclude at the end of the | ||||||
12 | 270th calendar day after that date. | ||||||
13 | (a-10) All elections under subsection (a) that are made or | ||||||
14 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
15 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
16 | after July 1, 2018 shall take effect on the first day of the | ||||||
17 | month following the month in which the election is made or | ||||||
18 | deemed to be made. | ||||||
19 | (b) As adequate and legal consideration provided under this | ||||||
20 | amendatory Act of the 100th General Assembly for making an | ||||||
21 | election under paragraph (1) of subsection (a) of this Section, | ||||||
22 | an employer shall be expressly and irrevocably prohibited from | ||||||
23 | offering any future increases in income to a Tier 1 employee | ||||||
24 | who has made an election under paragraph (1) of subsection (a) | ||||||
25 | of this Section on the condition of not constituting salary | ||||||
26 | under Section 17-113.4. |
| |||||||
| |||||||
1 | As adequate and legal consideration provided under this | ||||||
2 | amendatory Act of the 100th General Assembly for making an | ||||||
3 | election under paragraph (1) of subsection (a) of this Section, | ||||||
4 | each Tier 1 employee who has made an election under paragraph | ||||||
5 | (1) of subsection (a) of this Section shall receive a | ||||||
6 | consideration payment equal to 10% of the contributions made by | ||||||
7 | or on behalf of the employee under Section 17-130 before the | ||||||
8 | effective date of that election. The State Comptroller shall
| ||||||
9 | pay the consideration payment to the Tier 1 employee out of
| ||||||
10 | funds appropriated for that purpose under Section 1.9 of the
| ||||||
11 | State Pension Funds Continuing Appropriation Act. The Fund | ||||||
12 | shall calculate the amount of each consideration payment and, | ||||||
13 | by July 1, 2018, shall certify to the State Comptroller the | ||||||
14 | amount of the consideration payment, together with the name, | ||||||
15 | address, and any other available payment information of the | ||||||
16 | Tier 1 employee as found in the records of the Fund. The Fund | ||||||
17 | shall make additional calculations and certifications of | ||||||
18 | consideration payments to the State Comptroller as the Fund | ||||||
19 | deems necessary. | ||||||
20 | (c) A Tier 1 employee who makes the election under | ||||||
21 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
22 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
23 | However, each future increase in income offered by an employer | ||||||
24 | under this Article to a Tier 1 employee who has made the | ||||||
25 | election under paragraph (2) of subsection (a) of this Section | ||||||
26 | shall be offered by the employer expressly and irrevocably on |
| |||||||
| |||||||
1 | the condition of not constituting salary under Section 17-113.4 | ||||||
2 | and that the Tier 1 employee's acceptance of the offered future | ||||||
3 | increase in income shall constitute his or her agreement to | ||||||
4 | that condition. | ||||||
5 | (d) The Fund shall make a good faith effort to contact each | ||||||
6 | Tier 1 employee subject to this Section. The Fund shall mail | ||||||
7 | information describing the required election to each Tier 1 | ||||||
8 | employee by United States Postal Service mail to his or her | ||||||
9 | last known address on file with the Fund. If the Tier 1 | ||||||
10 | employee is not responsive to other means of contact, it is | ||||||
11 | sufficient for the Fund to publish the details of any required | ||||||
12 | elections on its website or to publish those details in a | ||||||
13 | regularly published newsletter or other existing public forum. | ||||||
14 | Tier 1 employees who are subject to this Section shall be | ||||||
15 | provided with an election packet containing information | ||||||
16 | regarding their options, as well as the forms necessary to make | ||||||
17 | the required election. Upon request, the Fund shall offer Tier | ||||||
18 | 1 employees an opportunity to receive information from the Fund | ||||||
19 | before making the required election. The information may | ||||||
20 | consist of video materials, group presentations, individual | ||||||
21 | consultation with a member or authorized representative of the | ||||||
22 | Fund in person or by telephone or other electronic means, or | ||||||
23 | any combination of those methods. The Fund shall not provide | ||||||
24 | advice or counseling with respect to which election a Tier 1 | ||||||
25 | employee should make or specific to the legal or tax | ||||||
26 | circumstances of or consequences to the Tier 1 employee. |
| |||||||
| |||||||
1 | The Fund shall inform Tier 1 employees in the election | ||||||
2 | packet required under this subsection that the Tier 1 employee | ||||||
3 | may also wish to obtain information and counsel relating to the | ||||||
4 | election required under this Section from any other available | ||||||
5 | source, including, but not limited to, labor organizations and | ||||||
6 | private counsel. | ||||||
7 | In no event shall the Fund, its staff, or the Board be held | ||||||
8 | liable for any information given to a member regarding the | ||||||
9 | elections under this Section. The Fund shall coordinate with | ||||||
10 | the Illinois Department of Central Management Services and each | ||||||
11 | other retirement system administering an election in | ||||||
12 | accordance with this amendatory Act of the 100th General | ||||||
13 | Assembly to provide information concerning the impact of the | ||||||
14 | election set forth in this Section. | ||||||
15 | (e) Notwithstanding any other provision of law, an employer | ||||||
16 | under this Article is required to offer each future increase in | ||||||
17 | income expressly and irrevocably on the condition of not | ||||||
18 | constituting "salary" under Section 17-113.4 to any Tier 1 | ||||||
19 | employee who has made an election under paragraph (2) of | ||||||
20 | subsection (a) of this Section. The offer shall also provide | ||||||
21 | that the Tier 1 employee's acceptance of the offered future | ||||||
22 | increase in income shall constitute his or her agreement to the | ||||||
23 | condition set forth in this subsection. | ||||||
24 | For purposes of legislative intent, the condition set forth | ||||||
25 | in this subsection shall be construed in a manner that ensures | ||||||
26 | that the condition is not violated or circumvented through any |
| |||||||
| |||||||
1 | contrivance of any kind. | ||||||
2 | (f) A member's election under this Section is not a | ||||||
3 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
4 | of this Code. | ||||||
5 | (g) No provision of this Section shall be interpreted in a | ||||||
6 | way that would cause the Fund to cease to be a qualified plan | ||||||
7 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
8 | (h) If an election created by this amendatory Act in any | ||||||
9 | other Article of this Code or any change deriving from that | ||||||
10 | election is determined to be unconstitutional or otherwise | ||||||
11 | invalid by a final unappealable decision of an Illinois court | ||||||
12 | or a court of competent jurisdiction, the invalidity of that | ||||||
13 | provision shall not in any way affect the validity of this | ||||||
14 | Section or the changes deriving from the election required | ||||||
15 | under this Section.
| ||||||
16 | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
| ||||||
17 | Sec. 17-116. Service retirement pension.
| ||||||
18 | (a) Each teacher having 20 years of service upon attainment | ||||||
19 | of age 55,
or who thereafter attains age 55 shall be entitled | ||||||
20 | to a service retirement
pension upon or after attainment of age | ||||||
21 | 55; and each teacher in service on or
after July 1, 1971, with | ||||||
22 | 5 or more but less than 20 years of service shall be
entitled | ||||||
23 | to receive a service retirement pension upon or after | ||||||
24 | attainment of
age 62.
| ||||||
25 | (b) The service retirement pension
for a teacher who |
| |||||||
| |||||||
1 | retires on or after June 25, 1971, at age
60 or over, shall be | ||||||
2 | calculated as follows:
| ||||||
3 | (1) For creditable service earned before July 1, 1998 | ||||||
4 | that has not been
augmented under Section 17-119.1: 1.67% | ||||||
5 | for each of the first 10 years
of service; 1.90% for each | ||||||
6 | of the next 10 years of service; 2.10% for
each year of | ||||||
7 | service in excess of 20 but not exceeding 30; and 2.30% for
| ||||||
8 | each year of service in excess of 30, based upon average | ||||||
9 | salary as
herein defined.
| ||||||
10 | (2) For creditable service earned on or after July 1, | ||||||
11 | 1998 by a member
who has at least 30 years of creditable | ||||||
12 | service on July 1, 1998 and who does
not elect to augment | ||||||
13 | service under Section 17-119.1: 2.3% of average salary
for | ||||||
14 | each year of creditable service earned on or after July 1, | ||||||
15 | 1998.
| ||||||
16 | (3) For all other creditable service: 2.2% of average | ||||||
17 | salary
for each year of creditable service.
| ||||||
18 | (c) When computing such service retirement pensions, the
| ||||||
19 | following conditions shall apply:
| ||||||
20 | 1. Average salary shall consist of the average annual | ||||||
21 | rate of salary
for the 4 consecutive years of validated | ||||||
22 | service within the last 10 years
of service when such | ||||||
23 | average annual rate was highest. In the determination
of | ||||||
24 | average salary for retirement allowance purposes, for | ||||||
25 | members who
commenced employment after August 31, 1979, | ||||||
26 | that part of the salary for any
year shall be excluded |
| |||||||
| |||||||
1 | which exceeds the annual full-time salary rate for
the | ||||||
2 | preceding year by more than 20%. In the case of a member | ||||||
3 | who commenced
employment before August 31, 1979 and who | ||||||
4 | receives salary during any year
after September 1, 1983 | ||||||
5 | which exceeds the annual full time salary rate for
the | ||||||
6 | preceding year by more than 20%,
an Employer and other | ||||||
7 | employers of
eligible contributors as defined in Section | ||||||
8 | 17-106
shall pay to the Fund an amount equal to the present | ||||||
9 | value of the
additional service retirement pension | ||||||
10 | resulting from such excess salary.
The present value of the | ||||||
11 | additional service retirement pension shall be
computed by | ||||||
12 | the Board on the basis of actuarial tables adopted by the
| ||||||
13 | Board. If a member elects to receive a pension from this | ||||||
14 | Fund
provided by
Section 20-121, his salary under the State | ||||||
15 | Universities Retirement System
and the Teachers' | ||||||
16 | Retirement System of the State of Illinois shall be
| ||||||
17 | considered in determining such average salary. Amounts | ||||||
18 | paid after the
effective date of this amendatory Act of | ||||||
19 | 1991 for unused vacation time
earned after that effective | ||||||
20 | date shall not under any circumstances be
included in the | ||||||
21 | calculation of average salary or the annual rate of salary
| ||||||
22 | for the purposes of this Article.
| ||||||
23 | 2. Proportionate credit shall be given for validated | ||||||
24 | service of less
than one year.
| ||||||
25 | 3. For retirement at age 60 or over the pension shall | ||||||
26 | be payable at
the full rate.
|
| |||||||
| |||||||
1 | 4. For separation from service below age 60 to a | ||||||
2 | minimum age of 55,
the pension shall be discounted at the | ||||||
3 | rate of 1/2 of one per cent for
each month that the age of | ||||||
4 | the contributor is less than 60, but a
teacher may elect to | ||||||
5 | defer the effective date of pension in order to
eliminate | ||||||
6 | or reduce this discount. This discount shall not be | ||||||
7 | applicable
to any participant who has at least 34 years of | ||||||
8 | service or a
retirement pension of at least 74.6% of | ||||||
9 | average salary on the date the
retirement annuity begins.
| ||||||
10 | 5. No additional pension shall be granted for service | ||||||
11 | exceeding 45
years. Beginning June 26, 1971 no pension | ||||||
12 | shall exceed the greater of
$1,500 per month or 75% of | ||||||
13 | average salary as herein defined.
| ||||||
14 | 6. Service retirement pensions shall begin on the | ||||||
15 | effective date of
resignation, retirement, the day | ||||||
16 | following the close of the payroll
period for which service | ||||||
17 | credit was validated, or the time the person
resigning or | ||||||
18 | retiring attains age 55, or on a date elected by the
| ||||||
19 | teacher, whichever shall be latest; provided that, for a | ||||||
20 | person who first becomes a member after the effective date | ||||||
21 | of this amendatory Act of the 99th General Assembly, the | ||||||
22 | benefit shall not commence more than one year prior to the | ||||||
23 | date of the Fund's receipt of an application for the | ||||||
24 | benefit.
| ||||||
25 | 7. A member who is eligible to receive a retirement | ||||||
26 | pension of at least
74.6% of average salary and will attain |
| |||||||
| |||||||
1 | age 55 on or before December 31
during the year which | ||||||
2 | commences on July 1 shall be deemed to attain age 55 on
the | ||||||
3 | preceding June 1.
| ||||||
4 | 8. A member retiring after the effective date of this | ||||||
5 | amendatory Act
of 1998 shall receive a pension equal to 75% | ||||||
6 | of average salary if the
member is qualified to receive a | ||||||
7 | retirement pension equal to at least 74.6%
of average | ||||||
8 | salary under this Article or as proportional annuities | ||||||
9 | under
Article 20 of this Code.
| ||||||
10 | (d) Notwithstanding any other provision of this Section, | ||||||
11 | annual salary does not include any future increase in income | ||||||
12 | that is
offered for service to a Tier 1 employee under this | ||||||
13 | Article pursuant to the condition set forth in subsection (c) | ||||||
14 | of Section
17-115.5 and accepted under that condition by a Tier | ||||||
15 | 1 employee who has made the
election under paragraph (2) of | ||||||
16 | subsection (a) of Section
17-115.5. | ||||||
17 | Notwithstanding any other provision of this Section,
| ||||||
18 | annual salary does not include any consideration payment made | ||||||
19 | to a
Tier 1 employee. | ||||||
20 | (Source: P.A. 99-702, eff. 7-29-16.)
| ||||||
21 | (40 ILCS 5/17-119.2 new) | ||||||
22 | Sec. 17-119.2. Automatic annual increases in service | ||||||
23 | retirement pension and survivor's pension for certain Tier 1 | ||||||
24 | employees. Notwithstanding any other provision of this | ||||||
25 | Article, for a Tier 1 employee who made the election under |
| |||||||
| |||||||
1 | paragraph (1) of subsection (a) of Section 17-115.5: | ||||||
2 | (1) The initial increase in service retirement pension | ||||||
3 | shall occur on the January 1 occurring either on or after | ||||||
4 | the attainment of age 67 or the fifth anniversary of the | ||||||
5 | pension start date, whichever is earlier. | ||||||
6 | (2) The amount of each automatic annual increase in | ||||||
7 | service retirement pension or survivor's pension occurring | ||||||
8 | on or after the effective date of that election shall be | ||||||
9 | calculated as a percentage of the originally granted | ||||||
10 | service retirement pension or survivor's pension, equal to | ||||||
11 | 3% or one-half the annual unadjusted percentage increase | ||||||
12 | (but
not less than zero) in the consumer price index-u for | ||||||
13 | the
12 months ending with the September preceding each | ||||||
14 | November
1, whichever is less. If the annual unadjusted | ||||||
15 | percentage
change in the consumer price index-u for the 12 | ||||||
16 | months ending with the September preceding each November 1 | ||||||
17 | is zero
or there is a decrease, then the annuity shall not | ||||||
18 | be
increased. | ||||||
19 | For the purposes of this Section, "consumer price index-u"
| ||||||
20 | means the index published by the Bureau of Labor Statistics of
| ||||||
21 | the United States Department of Labor that measures the average
| ||||||
22 | change in prices of goods and services purchased by all urban
| ||||||
23 | consumers, United States city average, all items, 1982-84 =
| ||||||
24 | 100. The new amount resulting from each annual adjustment shall
| ||||||
25 | be determined by the Public Pension Division of the Department
| ||||||
26 | of Insurance and made available to the Board by November 1 of |
| |||||||
| |||||||
1 | each year. | ||||||
2 | (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) | ||||||
3 | Sec. 17-129. Employer contributions; deficiency in Fund. | ||||||
4 | (a) If in any fiscal year of the Board of Education ending | ||||||
5 | prior to 1997 the
total amounts paid to the Fund from the Board | ||||||
6 | of Education (other than under
this subsection, and other than | ||||||
7 | amounts used for making or "picking up"
contributions on behalf | ||||||
8 | of teachers) and from the State do not equal the total
| ||||||
9 | contributions made by or on behalf of the teachers for such | ||||||
10 | year, or if the
total income of the Fund in any such fiscal | ||||||
11 | year of the Board of Education from
all sources is less than | ||||||
12 | the total such expenditures by the Fund for such year,
the | ||||||
13 | Board of Education shall, in the next succeeding year, in | ||||||
14 | addition to any
other payment to the Fund set apart and | ||||||
15 | appropriate from moneys from its tax
levy for educational | ||||||
16 | purposes, a sum sufficient to remove such deficiency or
| ||||||
17 | deficiencies, and promptly pay such sum into the Fund in order | ||||||
18 | to restore any
of the reserves of the Fund that may have been | ||||||
19 | so temporarily applied. Any
amounts received by the Fund after | ||||||
20 | December 4, 1997 from State appropriations, including under | ||||||
21 | Section
17-127, shall be a credit against and shall fully | ||||||
22 | satisfy any obligation that
may have arisen, or be claimed to | ||||||
23 | have arisen, under this subsection (a) as a
result of any | ||||||
24 | deficiency or deficiencies in the fiscal year of the Board of
| ||||||
25 | Education ending in calendar year 1997. |
| |||||||
| |||||||
1 | (b) (i) Notwithstanding any other provision of this | ||||||
2 | Section, and notwithstanding any prior certification by the | ||||||
3 | Board under subsection (c) for fiscal year 2011, the Board of | ||||||
4 | Education's total required contribution to the Fund for fiscal | ||||||
5 | year 2011 under this Section is $187,000,000. | ||||||
6 | (ii) Notwithstanding any other provision of this Section, | ||||||
7 | the Board of Education's total required contribution to the | ||||||
8 | Fund for fiscal year 2012 under this Section is $192,000,000. | ||||||
9 | (iii) Notwithstanding any other provision of this Section, | ||||||
10 | the Board of Education's total required contribution to the | ||||||
11 | Fund for fiscal year 2013 under this Section is $196,000,000. | ||||||
12 | (iv) For fiscal years 2014 through 2059, the minimum | ||||||
13 | contribution to the Fund to be made by the Board of Education | ||||||
14 | in each fiscal year shall be an amount determined by the Fund | ||||||
15 | to be sufficient to bring the total assets of the Fund up to | ||||||
16 | 90% of the total actuarial liabilities of the Fund by the end | ||||||
17 | of fiscal year 2059. In making these determinations, the | ||||||
18 | required Board of Education contribution shall be calculated | ||||||
19 | each year as a level percentage of the applicable employee | ||||||
20 | payrolls over the years remaining to and including fiscal year | ||||||
21 | 2059 and shall be determined under the projected unit credit | ||||||
22 | actuarial cost method. | ||||||
23 | (v) Beginning in fiscal year 2060, the minimum Board of | ||||||
24 | Education contribution for each fiscal year shall be the amount | ||||||
25 | needed to maintain the total assets of the Fund at 90% of the | ||||||
26 | total actuarial liabilities of the Fund. |
| |||||||
| |||||||
1 | (vi) Notwithstanding any other provision of this | ||||||
2 | subsection (b), for any fiscal year, the contribution to the | ||||||
3 | Fund from the Board of Education shall not be required to be in | ||||||
4 | excess of the amount calculated as needed to maintain the | ||||||
5 | assets (or cause the assets to be) at the 90% level by the end | ||||||
6 | of the fiscal year. | ||||||
7 | (vii) Any contribution by the State to or for the benefit | ||||||
8 | of the Fund, including, without limitation, as referred to | ||||||
9 | under Section 17-127, shall be a credit against any | ||||||
10 | contribution required to be made by the Board of Education | ||||||
11 | under this subsection (b). | ||||||
12 | (c) The Board shall determine the amount of Board of | ||||||
13 | Education
contributions required for each fiscal year on the | ||||||
14 | basis of the actuarial
tables and other assumptions adopted by | ||||||
15 | the Board and the recommendations of
the actuary, in order to | ||||||
16 | meet the minimum contribution requirements of
subsections (a) | ||||||
17 | and (b). Annually, on or before February 28, the Board shall
| ||||||
18 | certify to the Board of Education the amount of the required | ||||||
19 | Board of Education
contribution for the coming fiscal year. The | ||||||
20 | certification shall include a
copy of the actuarial | ||||||
21 | recommendations upon which it is based. | ||||||
22 | Beginning in fiscal year 2018, any increase or
decrease in | ||||||
23 | the Board of Education's contribution over the prior fiscal | ||||||
24 | year due
exclusively to changes in actuarial or investment | ||||||
25 | assumptions
adopted by the Board shall be included in the Board | ||||||
26 | of Education's
contribution to the Fund, as a percentage of the |
| |||||||
| |||||||
1 | applicable
employee payroll, and shall be increased in equal | ||||||
2 | annual
increments so that by the fiscal year occurring 5 years
| ||||||
3 | after the adoption of the actuarial or investment assumptions,
| ||||||
4 | the Board of Education is contributing at the rate otherwise | ||||||
5 | required under
this Section. | ||||||
6 | (d) As soon as practical after the effective date of this | ||||||
7 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
8 | recalculate and
recertify to the Board of Education the amount | ||||||
9 | of the required Board of Education contribution to the Fund for | ||||||
10 | fiscal year 2019, taking into account the changes in required | ||||||
11 | Board of Education contributions made by this amendatory Act of | ||||||
12 | the 100th General Assembly. | ||||||
13 | On or before May 1, 2018, the Board shall recalculate and
| ||||||
14 | recertify to the Board of Education the amount of the required | ||||||
15 | Board of Education contribution to the Fund for fiscal year | ||||||
16 | 2019, taking into account the effect on the Fund's liabilities | ||||||
17 | of the elections made under Section 17-115.5. | ||||||
18 | (Source: P.A. 96-889, eff. 4-14-10.)
| ||||||
19 | (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
| ||||||
20 | Sec. 17-130. Participants' contributions by payroll | ||||||
21 | deductions.
| ||||||
22 | (a) Except as provided in subsection (a-5), there There | ||||||
23 | shall be deducted from the salary of each teacher 7.50% of his | ||||||
24 | salary for service or disability retirement pension and
0.5% of | ||||||
25 | salary for the annual increase in base pension.
|
| |||||||
| |||||||
1 | In addition, there shall be deducted from the salary of | ||||||
2 | each teacher
1% of his salary for survivors' and children's | ||||||
3 | pensions.
| ||||||
4 | (a-5) Beginning on July 1, 2018 or the effective date of | ||||||
5 | the Tier 1 employee's election under paragraph (1) of Section | ||||||
6 | 17-115.5, whichever is later, in lieu of the contributions | ||||||
7 | otherwise required under subsection (a), each Tier 1 employee | ||||||
8 | who made the election under paragraph (1) of Section 17-115.5 | ||||||
9 | shall make contributions of 7.50% of salary for service or | ||||||
10 | disability retirement pension and 0.6% of salary for survivors' | ||||||
11 | and children's pensions. | ||||||
12 | (b) An Employer and any employer of eligible contributors | ||||||
13 | as defined in
Section 17-106 is authorized to make the | ||||||
14 | necessary deductions from the salaries
of its teachers. Such | ||||||
15 | amounts shall be included as a part of the Fund. An
Employer | ||||||
16 | and any employer of eligible contributors as defined in Section | ||||||
17 | 17-106
shall formulate such rules and regulations as may be | ||||||
18 | necessary to give effect
to the provisions of this Section.
| ||||||
19 | (c) All persons employed as teachers shall, by such | ||||||
20 | employment,
accept the provisions of this Article and of | ||||||
21 | Sections 34-83 to 34-85,
inclusive, of "The School Code", | ||||||
22 | approved March 18, 1961, as amended,
and thereupon become | ||||||
23 | contributors to the Fund in accordance with the
terms thereof. | ||||||
24 | The provisions of this Article and of those Sections
shall | ||||||
25 | become a part of the contract of employment.
| ||||||
26 | (d) A person who (i) was a member before July 1, 1998, (ii) |
| |||||||
| |||||||
1 | retires with
more than 34 years of creditable service, and | ||||||
2 | (iii) does not elect to qualify
for the augmented rate under | ||||||
3 | Section 17-119.1 shall be entitled, at the time of
retirement, | ||||||
4 | to receive a partial refund of contributions made under this
| ||||||
5 | Section for service occurring after the later of June 30, 1998 | ||||||
6 | or attainment of
34 years of creditable service, in an amount | ||||||
7 | equal to 1.00% of the salary upon
which those contributions | ||||||
8 | were based.
| ||||||
9 | (Source: P.A. 97-8, eff. 6-13-11.)
| ||||||
10 | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| ||||||
11 | Sec. 18-131. Financing; employer contributions.
| ||||||
12 | (a) The State of Illinois shall make contributions to this | ||||||
13 | System by
appropriations of the amounts which, together with | ||||||
14 | the contributions of
participants, net earnings on | ||||||
15 | investments, and other income, will meet the
costs of | ||||||
16 | maintaining and administering this System on a 90% funded basis | ||||||
17 | in
accordance with actuarial recommendations.
| ||||||
18 | (b) The Board shall determine the amount of State | ||||||
19 | contributions
required for each fiscal year on the basis of the | ||||||
20 | actuarial tables and other
assumptions adopted by the Board and | ||||||
21 | the prescribed rate of interest, using
the formula in | ||||||
22 | subsection (c).
| ||||||
23 | (c) For State fiscal years 2018 through 2045, the minimum | ||||||
24 | contribution to the System to be made by the State for each | ||||||
25 | fiscal year shall be an amount determined by the System to be |
| |||||||
| |||||||
1 | sufficient to bring the total assets of the System up to 90% of | ||||||
2 | the total actuarial liabilities of the System by the end of | ||||||
3 | State fiscal year 2045. In making these determinations, the | ||||||
4 | required State contribution shall be calculated each year as a | ||||||
5 | level percentage of total payroll, including payroll that is | ||||||
6 | not deemed pensionable, over the years remaining to and | ||||||
7 | including fiscal year 2045 and shall be determined under the | ||||||
8 | projected unit credit actuarial cost method. | ||||||
9 | Beginning in State fiscal year 2018, any increase or | ||||||
10 | decrease in State contribution over the prior fiscal year due | ||||||
11 | exclusively to changes in actuarial or investment assumptions | ||||||
12 | adopted by the Board shall be included in the State | ||||||
13 | contribution to the System, as a percentage of the applicable | ||||||
14 | employee payroll, and shall be increased in equal annual | ||||||
15 | increments so that by the State fiscal year occurring 5 years | ||||||
16 | after the adoption of the actuarial or investment assumptions, | ||||||
17 | the State is contributing at the rate otherwise required under | ||||||
18 | this Section. | ||||||
19 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
20 | contribution
to the System to be made by the State for each | ||||||
21 | fiscal year shall be an amount
determined by the System to be | ||||||
22 | sufficient to bring the total assets of the
System up to 90% of | ||||||
23 | the total actuarial liabilities of the System by the end of
| ||||||
24 | State fiscal year 2045. In making these determinations, the | ||||||
25 | required State
contribution shall be calculated each year as a | ||||||
26 | level percentage of payroll
over the years remaining to and |
| |||||||
| |||||||
1 | including fiscal year 2045 and shall be
determined under the | ||||||
2 | projected unit credit actuarial cost method.
| ||||||
3 | For State fiscal years 1996 through 2005, the State | ||||||
4 | contribution to
the System, as a percentage of the applicable | ||||||
5 | employee payroll, shall be
increased in equal annual increments | ||||||
6 | so that by State fiscal year 2011, the
State is contributing at | ||||||
7 | the rate required under this Section.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State
contribution for State fiscal year 2006 is | ||||||
10 | $29,189,400.
| ||||||
11 | Notwithstanding any other provision of this Article, the | ||||||
12 | total required State
contribution for State fiscal year 2007 is | ||||||
13 | $35,236,800.
| ||||||
14 | For each of State fiscal years 2008 through 2009, the State | ||||||
15 | contribution to
the System, as a percentage of the applicable | ||||||
16 | employee payroll, shall be
increased in equal annual increments | ||||||
17 | from the required State contribution for State fiscal year | ||||||
18 | 2007, so that by State fiscal year 2011, the
State is | ||||||
19 | contributing at the rate otherwise required under this Section.
| ||||||
20 | Notwithstanding any other provision of this Article, the | ||||||
21 | total required State contribution for State fiscal year 2010 is | ||||||
22 | $78,832,000 and shall be made from the proceeds of bonds sold | ||||||
23 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
24 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
25 | expenses determined by the System's share of total bond | ||||||
26 | proceeds, (ii) any amounts received from the General Revenue |
| |||||||
| |||||||
1 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
2 | proceeds due to the issuance of discounted bonds, if | ||||||
3 | applicable. | ||||||
4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State contribution for State fiscal year 2011 is
| ||||||
6 | the amount recertified by the System on or before April 1, 2011 | ||||||
7 | pursuant to Section 18-140 and shall be made from the proceeds | ||||||
8 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
9 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
10 | bond sale
expenses determined by the System's share of total | ||||||
11 | bond
proceeds, (ii) any amounts received from the General | ||||||
12 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
13 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
14 | applicable. | ||||||
15 | Beginning in State fiscal year 2046, the minimum State | ||||||
16 | contribution for
each fiscal year shall be the amount needed to | ||||||
17 | maintain the total assets of
the System at 90% of the total | ||||||
18 | actuarial liabilities of the System.
| ||||||
19 | Amounts received by the System pursuant to Section 25 of | ||||||
20 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
21 | Finance Act in any fiscal year do not reduce and do not | ||||||
22 | constitute payment of any portion of the minimum State | ||||||
23 | contribution required under this Article in that fiscal year. | ||||||
24 | Such amounts shall not reduce, and shall not be included in the | ||||||
25 | calculation of, the required State contributions under this | ||||||
26 | Article in any future year until the System has reached a |
| |||||||
| |||||||
1 | funding ratio of at least 90%. A reference in this Article to | ||||||
2 | the "required State contribution" or any substantially similar | ||||||
3 | term does not include or apply to any amounts payable to the | ||||||
4 | System under Section 25 of the Budget Stabilization Act.
| ||||||
5 | Notwithstanding any other provision of this Section, the | ||||||
6 | required State
contribution for State fiscal year 2005 and for | ||||||
7 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
8 | under this Section and
certified under Section 18-140, shall | ||||||
9 | not exceed an amount equal to (i) the
amount of the required | ||||||
10 | State contribution that would have been calculated under
this | ||||||
11 | Section for that fiscal year if the System had not received any | ||||||
12 | payments
under subsection (d) of Section 7.2 of the General | ||||||
13 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
14 | total debt service payments for that fiscal
year on the bonds | ||||||
15 | issued in fiscal year 2003 for the purposes of that Section | ||||||
16 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
17 | the same as the System's portion of
the total moneys | ||||||
18 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
19 | Obligation Bond Act. In determining this maximum for State | ||||||
20 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
21 | in item (i) shall be increased, as a percentage of the | ||||||
22 | applicable employee payroll, in equal increments calculated | ||||||
23 | from the sum of the required State contribution for State | ||||||
24 | fiscal year 2007 plus the applicable portion of the State's | ||||||
25 | total debt service payments for fiscal year 2007 on the bonds | ||||||
26 | issued in fiscal year 2003 for the purposes of Section 7.2 of |
| |||||||
| |||||||
1 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
2 | 2011, the
State is contributing at the rate otherwise required | ||||||
3 | under this Section.
| ||||||
4 | (d) For purposes of determining the required State | ||||||
5 | contribution to the System, the value of the System's assets | ||||||
6 | shall be equal to the actuarial value of the System's assets, | ||||||
7 | which shall be calculated as follows: | ||||||
8 | As of June 30, 2008, the actuarial value of the System's | ||||||
9 | assets shall be equal to the market value of the assets as of | ||||||
10 | that date. In determining the actuarial value of the System's | ||||||
11 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
12 | gains or losses from investment return incurred in a fiscal | ||||||
13 | year shall be recognized in equal annual amounts over the | ||||||
14 | 5-year period following that fiscal year. | ||||||
15 | (e) For purposes of determining the required State | ||||||
16 | contribution to the system for a particular year, the actuarial | ||||||
17 | value of assets shall be assumed to earn a rate of return equal | ||||||
18 | to the system's actuarially assumed rate of return. | ||||||
19 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
20 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
21 | 7-13-12.)
| ||||||
22 | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| ||||||
23 | Sec. 18-140. To certify required State contributions and | ||||||
24 | submit vouchers.
| ||||||
25 | (a) The Board shall certify to the Governor, on or before |
| |||||||
| |||||||
1 | November 15 of
each year until November 15, 2011, the amount of | ||||||
2 | the required State contribution to the System for the
following | ||||||
3 | fiscal year and shall specifically identify the System's | ||||||
4 | projected State normal cost for that fiscal year. The | ||||||
5 | certification shall include a copy of the actuarial
| ||||||
6 | recommendations upon which it is based and shall specifically | ||||||
7 | identify the System's projected State normal cost for that | ||||||
8 | fiscal year.
| ||||||
9 | On or before November 1 of each year, beginning November 1, | ||||||
10 | 2012, the Board shall submit to the State Actuary, the | ||||||
11 | Governor, and the General Assembly a proposed certification of | ||||||
12 | the amount of the required State contribution to the System for | ||||||
13 | the next fiscal year, along with all of the actuarial | ||||||
14 | assumptions, calculations, and data upon which that proposed | ||||||
15 | certification is based. On or before January 1 of each year | ||||||
16 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
17 | preliminary report concerning the proposed certification and | ||||||
18 | identifying, if necessary, recommended changes in actuarial | ||||||
19 | assumptions that the Board must consider before finalizing its | ||||||
20 | certification of the required State contributions. On or before | ||||||
21 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
22 | shall certify to the Governor and the General Assembly the | ||||||
23 | amount of the required State contribution for the next fiscal | ||||||
24 | year. The Board's certification must note any deviations from | ||||||
25 | the State Actuary's recommended changes, the reason or reasons | ||||||
26 | for not following the State Actuary's recommended changes, and |
| |||||||
| |||||||
1 | the fiscal impact of not following the State Actuary's | ||||||
2 | recommended changes on the required State contribution. | ||||||
3 | On or before May 1, 2004, the Board shall recalculate and | ||||||
4 | recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
| ||||||
9 | On or before July 1, 2005, the Board shall recalculate and | ||||||
10 | recertify
to the Governor the amount of the required State
| ||||||
11 | contribution to the System for State fiscal year 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by this amendatory Act of the 94th General Assembly.
| ||||||
14 | On or before April 1, 2011, the Board shall recalculate and | ||||||
15 | recertify to the Governor the amount of the required State | ||||||
16 | contribution to the System for State fiscal year 2011, applying | ||||||
17 | the changes made by Public Act 96-889 to the System's assets | ||||||
18 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
19 | was approved on that date. | ||||||
20 | As soon as practical after the effective date of this | ||||||
21 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
22 | recalculate and recertify to the State Actuary, the Governor, | ||||||
23 | and the General Assembly the amount of the State contribution | ||||||
24 | to the System for State fiscal year 2018, taking into account | ||||||
25 | the changes in required State contributions made by this | ||||||
26 | amendatory Act of the 100th General Assembly. The State Actuary |
| |||||||
| |||||||
1 | shall review the assumptions and valuations underlying the | ||||||
2 | Board's revised certification and issue a preliminary report | ||||||
3 | concerning the proposed recertification and identifying, if | ||||||
4 | necessary, recommended changes in actuarial assumptions that | ||||||
5 | the Board must consider before finalizing its certification of | ||||||
6 | the required State contributions. The Board's final | ||||||
7 | certification must note any deviations from the State Actuary's | ||||||
8 | recommended changes, the reason or reasons for not following | ||||||
9 | the State Actuary's recommended changes, and the fiscal impact | ||||||
10 | of not following the State Actuary's recommended changes on the | ||||||
11 | required State contribution. | ||||||
12 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
13 | possible after
the 15th day of each month the Board shall | ||||||
14 | submit vouchers for payment of State
contributions to the | ||||||
15 | System, in a total monthly amount of one-twelfth of the
| ||||||
16 | required annual State contribution certified under subsection | ||||||
17 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
18 | General Assembly through June 30, 2004, the Board shall not
| ||||||
19 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
20 | of the
fiscal year 2004 certified contribution amount | ||||||
21 | determined
under this Section after taking into consideration | ||||||
22 | the transfer to the
System under subsection (c) of Section | ||||||
23 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
24 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
25 | funds appropriated to the System for that fiscal year.
| ||||||
26 | If in any month the amount remaining unexpended from all |
| |||||||
| |||||||
1 | other
appropriations to the System for the applicable fiscal | ||||||
2 | year (including the
appropriations to the System under Section | ||||||
3 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
4 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
5 | amount lawfully vouchered under this Section, the difference | ||||||
6 | shall be paid
from the General Revenue Fund under the | ||||||
7 | continuing appropriation authority
provided in Section 1.1 of | ||||||
8 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
9 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
10 | 97-694, eff. 6-18-12.)
| ||||||
11 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
12 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
13 | which has been held unconstitutional)
| ||||||
14 | Sec. 20-121. Calculation of proportional retirement | ||||||
15 | annuities. | ||||||
16 | (a) Upon
retirement of the employee, a proportional | ||||||
17 | retirement annuity shall be computed
by each participating | ||||||
18 | system in which pension credit has been established on
the | ||||||
19 | basis of pension credits under each system. The computation | ||||||
20 | shall be in
accordance with the formula or method prescribed by | ||||||
21 | each participating system
which is in effect at the date of the | ||||||
22 | employee's latest withdrawal from service
covered by any of the | ||||||
23 | systems in which he has pension credits which he elects
to have | ||||||
24 | considered under this Article. However, the amount of any | ||||||
25 | retirement
annuity payable under the self-managed plan |
| |||||||
| |||||||
1 | established under Section 15-158.2
of this Code or under the | ||||||
2 | defined contribution plan established under Article 2, 14, 15, | ||||||
3 | or 16 of this Code depends solely on the value of the | ||||||
4 | participant's vested account
balances and is not subject to any | ||||||
5 | proportional adjustment under this
Section.
| ||||||
6 | (a-5) For persons who participate in a defined contribution | ||||||
7 | plan established under Article 2, 14, 15, or 16 of this Code to | ||||||
8 | whom the provisions of this Article apply, the pension credits | ||||||
9 | established under the defined contribution plan may be | ||||||
10 | considered in
determining eligibility for or the amount of the | ||||||
11 | defined benefit retirement annuity that is
payable by any other | ||||||
12 | participating system. | ||||||
13 | (b) Combined pension credit under all retirement systems | ||||||
14 | subject to this
Article shall be considered in determining | ||||||
15 | whether the minimum qualification
has been met and the formula | ||||||
16 | or method of computation which shall be applied , except as may | ||||||
17 | be otherwise provided with respect to vesting in State or | ||||||
18 | employer contributions in a defined contribution plan .
If a | ||||||
19 | system has a step-rate formula for calculation of the | ||||||
20 | retirement annuity,
pension credits covering previous service | ||||||
21 | which have been established under
another system shall be | ||||||
22 | considered in determining which range or ranges of
the | ||||||
23 | step-rate formula are to be applicable to the employee.
| ||||||
24 | (c) Interest on pension credit shall continue to accumulate | ||||||
25 | in accordance with
the provisions of the law governing the | ||||||
26 | retirement system in which the same
has been established during |
| |||||||
| |||||||
1 | the time an employee is in the service of another
employer, on | ||||||
2 | the assumption such employee, for interest purposes for pension
| ||||||
3 | credit, is continuing in the service covered by such retirement | ||||||
4 | system.
| ||||||
5 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
6 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
7 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
8 | which has been held unconstitutional)
| ||||||
9 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
10 | a retirement
annuity shall be applicable to a survivor's | ||||||
11 | annuity. Appropriate credits shall
be established for | ||||||
12 | survivor's annuity purposes in those participating systems
| ||||||
13 | which provide survivor's annuities, according to the same | ||||||
14 | conditions and
subject to the same limitations and restrictions | ||||||
15 | herein prescribed for a
retirement annuity. If a participating | ||||||
16 | system has no survivor's annuity
benefit, or if the survivor's | ||||||
17 | annuity benefit under that system is waived,
pension credit | ||||||
18 | established in that system shall not be considered
in | ||||||
19 | determining eligibility for or the amount of the survivor's | ||||||
20 | annuity which
may be payable by any other participating system.
| ||||||
21 | For persons who participate in the self-managed plan | ||||||
22 | established under
Section 15-158.2 or the portable benefit | ||||||
23 | package established under Section
15-136.4, pension credit | ||||||
24 | established under Article 15 may be considered in
determining | ||||||
25 | eligibility for or the amount of the survivor's annuity that is
|
| |||||||
| |||||||
1 | payable by any other participating system, but pension credit | ||||||
2 | established in
any other system shall not result in any right | ||||||
3 | to a survivor's annuity under
the Article 15 system.
| ||||||
4 | For persons who participate in a defined contribution plan | ||||||
5 | established under Article 2, 14, 15, or 16 of this Code to whom | ||||||
6 | the provisions of this Article apply, the pension credits | ||||||
7 | established under the defined contribution plan may be | ||||||
8 | considered in
determining eligibility for or the amount of the | ||||||
9 | defined benefit survivor's annuity that is
payable by any other | ||||||
10 | participating system, but pension credits established in
any | ||||||
11 | other system shall not result in any right to or increase in | ||||||
12 | the value of a survivor's annuity under
the defined | ||||||
13 | contribution plan, which depends solely on the options chosen | ||||||
14 | and the value of the participant's vested account
balances and | ||||||
15 | is not subject to any proportional adjustment under this
| ||||||
16 | Section. | ||||||
17 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
18 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
19 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
20 | which has been held unconstitutional)
| ||||||
21 | Sec. 20-124. Maximum benefits. | ||||||
22 | (a) In no event shall the combined retirement
or survivors | ||||||
23 | annuities exceed the highest annuity which would have been | ||||||
24 | payable
by any participating system in which the employee has | ||||||
25 | pension credits, if all
of his pension credits had been |
| |||||||
| |||||||
1 | validated in that system.
| ||||||
2 | If the combined annuities should exceed the highest maximum | ||||||
3 | as determined
in accordance with this Section, the respective | ||||||
4 | annuities shall be reduced
proportionately according to the | ||||||
5 | ratio which the amount of each proportional
annuity bears to | ||||||
6 | the aggregate of all such annuities.
| ||||||
7 | (b) In the case of a participant in the self-managed plan | ||||||
8 | established under
Section 15-158.2 of this Code to whom the | ||||||
9 | provisions of this Article apply:
| ||||||
10 | (i) For purposes of calculating the combined | ||||||
11 | retirement annuity and
the proportionate reduction, if | ||||||
12 | any, in a retirement annuity other than one
payable under | ||||||
13 | the self-managed plan, the amount of the Article 15 | ||||||
14 | retirement
annuity shall be deemed to be the highest | ||||||
15 | annuity to which the annuitant would
have been entitled if | ||||||
16 | he or she had participated in the traditional benefit
| ||||||
17 | package as defined in Section 15-103.1 rather than the | ||||||
18 | self-managed plan.
| ||||||
19 | (ii) For purposes of calculating the combined | ||||||
20 | survivor's annuity and
the proportionate reduction, if | ||||||
21 | any, in a survivor's annuity other than one
payable under | ||||||
22 | the self-managed plan, the amount of the Article 15 | ||||||
23 | survivor's
annuity shall be deemed to be the highest | ||||||
24 | survivor's annuity to which the
survivor would have been | ||||||
25 | entitled if the deceased employee had participated in
the | ||||||
26 | traditional benefit package as defined in Section 15-103.1 |
| |||||||
| |||||||
1 | rather than the
self-managed plan.
| ||||||
2 | (iii) Benefits payable under the self-managed plan are | ||||||
3 | not subject to
proportionate reduction under this Section.
| ||||||
4 | (c) In the case of a participant in a defined contribution | ||||||
5 | plan established under
Article 2, 14, 15, or 16 of this Code to | ||||||
6 | whom the provisions of this Article apply: | ||||||
7 | (i) For purposes of calculating the combined | ||||||
8 | retirement annuity and
the proportionate reduction, if | ||||||
9 | any, in a defined benefit retirement annuity, any benefit | ||||||
10 | payable under the defined contribution plan shall not be | ||||||
11 | considered. | ||||||
12 | (ii) For purposes of calculating the combined | ||||||
13 | survivor's annuity and
the proportionate reduction, if | ||||||
14 | any, in a defined benefit survivor's annuity, any benefit | ||||||
15 | payable under the defined contribution plan shall not be | ||||||
16 | considered. | ||||||
17 | (iii) Benefits payable under a defined contribution | ||||||
18 | plan established under Article 2, 14, 15, or 16 of this | ||||||
19 | Code are not subject to
proportionate reduction under this | ||||||
20 | Section. | ||||||
21 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
22 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
23 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
24 | which has been held unconstitutional)
| ||||||
25 | Sec. 20-125. Return to employment - suspension of benefits. |
| |||||||
| |||||||
1 | If a retired
employee returns to employment which is covered by | ||||||
2 | a system from which he is
receiving a proportional annuity | ||||||
3 | under this Article, his proportional annuity
from all | ||||||
4 | participating systems shall be suspended during the period of
| ||||||
5 | re-employment, except that this suspension does not apply to | ||||||
6 | any
distributions payable under the self-managed plan | ||||||
7 | established under Section
15-158.2 or under a defined | ||||||
8 | contribution plan established under Article 2, 14, 15, or 16 of | ||||||
9 | this Code.
| ||||||
10 | The provisions of the Article under which such employment | ||||||
11 | would be
covered shall govern the determination of whether the | ||||||
12 | employee has returned
to employment, and if applicable the | ||||||
13 | exemption of temporary employment or
employment not exceeding a | ||||||
14 | specified duration or frequency, for all
participating systems | ||||||
15 | from which the retired employee is receiving a
proportional | ||||||
16 | annuity under this Article, notwithstanding any contrary
| ||||||
17 | provisions in the other Articles governing such systems.
| ||||||
18 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
19 | (40 ILCS 5/2-165 rep.) | ||||||
20 | (40 ILCS 5/2-166 rep.) | ||||||
21 | (40 ILCS 5/14-155 rep.) | ||||||
22 | (40 ILCS 5/14-156 rep.) | ||||||
23 | (40 ILCS 5/15-200 rep.) | ||||||
24 | (40 ILCS 5/15-201 rep.) | ||||||
25 | (40 ILCS 5/16-205 rep.) |
| |||||||
| |||||||
1 | (40 ILCS 5/16-206 rep.) | ||||||
2 | Section 50. The Illinois Pension Code is amended by | ||||||
3 | repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200, | ||||||
4 | 15-201, 16-205, and 16-206. | ||||||
5 | Section 55. The State Pension Funds Continuing | ||||||
6 | Appropriation Act is amended by adding Section 1.9 as follows: | ||||||
7 | (40 ILCS 15/1.9 new) | ||||||
8 | Sec. 1.9. Appropriation for consideration payment. There | ||||||
9 | is hereby appropriated from the General Revenue Fund to the | ||||||
10 | State Comptroller, on a continuing basis, all amounts necessary | ||||||
11 | for the payment of consideration payments under subsection (b) | ||||||
12 | of Sections 2-110.3, 14-106.5, 15-132.9, 16-122.9, and | ||||||
13 | 17-115.5 of the Illinois Pension Code, in the amounts certified | ||||||
14 | to the State Comptroller by the respective retirement system or | ||||||
15 | pension fund. | ||||||
16 | Section 60. The School Code is amended by changing Sections | ||||||
17 | 24-1, 24-8, and 34-18.53 as follows:
| ||||||
18 | (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
| ||||||
19 | Sec. 24-1.
Appointment-Salaries-Payment-School | ||||||
20 | month-School term.)
School boards shall appoint all teachers, | ||||||
21 | determine qualifications of
employment
and fix the amount of | ||||||
22 | their
salaries subject to any limitation set forth in this Act |
| |||||||
| |||||||
1 | and subject to any applicable restrictions in Section 16-122.9 | ||||||
2 | of the Illinois Pension Code . They shall pay
the wages of | ||||||
3 | teachers monthly, subject, however, to the provisions of
| ||||||
4 | Section 24-21. The school month shall be the same as the | ||||||
5 | calendar month
but by resolution the school board may adopt for | ||||||
6 | its use a month of 20
days, including holidays. The school term | ||||||
7 | shall consist of at least the
minimum number of pupil | ||||||
8 | attendance days required by Section 10-19, any
additional legal | ||||||
9 | school holidays, days of teachers' institutes, or
equivalent | ||||||
10 | professional educational experiences, and one or two days at
| ||||||
11 | the beginning of the school term when used as a teachers' | ||||||
12 | workshop.
| ||||||
13 | (Source: P.A. 80-249.)
| ||||||
14 | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| ||||||
15 | Sec. 24-8. Minimum salary. In fixing the salaries of | ||||||
16 | teachers, school boards shall pay those who
serve on a | ||||||
17 | full-time basis not less than a rate for the school year that
| ||||||
18 | is based upon training completed in a recognized institution of | ||||||
19 | higher
learning, as follows: for the school year beginning July | ||||||
20 | 1, 1980 and
thereafter, less than a bachelor's degree, $9,000; | ||||||
21 | 120 semester hours or
more and a bachelor's degree, $10,000; | ||||||
22 | 150 semester hours or more and a
master's degree, $11,000.
| ||||||
23 | Based upon previous public school
experience in this State | ||||||
24 | or any other State, territory, dependency or
possession of the | ||||||
25 | United States, or in schools operated by or under the
auspices |
| |||||||
| |||||||
1 | of the United States, teachers who serve on a full-time basis
| ||||||
2 | shall have their salaries increased to at least the following | ||||||
3 | amounts
above the starting salary for a teacher in such | ||||||
4 | district in the same
classification: with less than a | ||||||
5 | bachelor's degree, $750 after 5 years;
with 120 semester hours | ||||||
6 | or more and a bachelor's degree, $1,000 after 5
years and | ||||||
7 | $1,600 after 8 years; with 150 semester hours or more and a | ||||||
8 | master's
degree, $1,250 after 5 years, $2,000 after 8 years and | ||||||
9 | $2,750 after 13 years. However, any salary increase is subject | ||||||
10 | to any applicable restrictions in Section 16-122.9 of the | ||||||
11 | Illinois Pension Code.
| ||||||
12 | For the purpose of this Section a teacher's salary shall | ||||||
13 | include any amount
paid by the school district on behalf of the | ||||||
14 | teacher, as teacher contributions,
to the Teachers' Retirement | ||||||
15 | System of the State of Illinois.
| ||||||
16 | If a school board establishes a schedule for teachers' | ||||||
17 | salaries based
on education and experience, not inconsistent | ||||||
18 | with this Section, all certificated
nurses employed by that | ||||||
19 | board shall be paid in accordance with the provisions
of such | ||||||
20 | schedule (subject to any applicable restrictions in Section | ||||||
21 | 16-122.9 of the Illinois Pension Code) .
| ||||||
22 | For purposes of this Section, a teacher who submits a | ||||||
23 | certificate of
completion to the school office prior to the | ||||||
24 | first day of the school
term shall be considered to have the | ||||||
25 | degree stated in such certificate.
| ||||||
26 | (Source: P.A. 83-913.)
|
| |||||||
| |||||||
1 | (105 ILCS 5/34-18.53 new) | ||||||
2 | Sec. 34-18.53. Future increase in income. The Board of | ||||||
3 | Education must not pay, offer, or agree to pay any future | ||||||
4 | increase in income, as that term is defined in Section 17-113.5 | ||||||
5 | of the Illinois Pension Code, to any person in a manner that | ||||||
6 | violates Section 17-115.5 of the Illinois Pension Code. | ||||||
7 | Section 65. The State Universities Civil Service Act is | ||||||
8 | amended by changing Section 36d as follows:
| ||||||
9 | (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
| ||||||
10 | Sec. 36d. Powers and duties of the Merit Board. The Merit | ||||||
11 | Board shall have the power and duty-
| ||||||
12 | (1) To approve a classification plan prepared under its | ||||||
13 | direction,
assigning to each class positions of | ||||||
14 | substantially similar duties. The
Merit Board shall have | ||||||
15 | power to delegate to its Director the duty of
assigning | ||||||
16 | each position in the classified service to the appropriate
| ||||||
17 | class in the classification plan approved by the Merit | ||||||
18 | Board.
| ||||||
19 | (2) To prescribe the duties of each class of positions | ||||||
20 | and the
qualifications required by employment in that | ||||||
21 | class.
| ||||||
22 | (3) To prescribe the range of compensation for each | ||||||
23 | class or to fix
a single rate of compensation for employees |
| |||||||
| |||||||
1 | in a particular class; and
to establish other conditions of | ||||||
2 | employment which an employer and
employee representatives | ||||||
3 | have agreed upon as fair and equitable. The
Merit Board | ||||||
4 | shall direct the payment of the "prevailing rate of wages"
| ||||||
5 | in those classifications in which, on January 1, 1952, any | ||||||
6 | employer is
paying such prevailing rate and in such other | ||||||
7 | classes as the Merit Board
may thereafter determine. | ||||||
8 | "Prevailing rate of wages" as used herein
shall be the | ||||||
9 | wages paid generally in the locality in which the work is
| ||||||
10 | being performed to employees engaged in work of a similar | ||||||
11 | character.
Subject to any applicable restrictions in | ||||||
12 | Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois | ||||||
13 | Pension Code, each Each employer covered by the University | ||||||
14 | System shall be authorized to
negotiate with | ||||||
15 | representatives of employees to determine appropriate
| ||||||
16 | ranges or rates of compensation or other conditions of | ||||||
17 | employment and
may recommend to the Merit Board for | ||||||
18 | establishment the rates or ranges
or other conditions of | ||||||
19 | employment which the employer and employee
representatives | ||||||
20 | have agreed upon as fair and equitable , but excluding the | ||||||
21 | changes, the impact of changes, and the implementation of | ||||||
22 | the changes set forth in this amendatory Act of the 100th | ||||||
23 | General Assembly . Any rates or
ranges established prior to | ||||||
24 | January 1, 1952, and hereafter, shall not be
changed except | ||||||
25 | in accordance with the procedures herein provided.
| ||||||
26 | (4) To recommend to the institutions and agencies |
| |||||||
| |||||||
1 | specified in
Section 36e standards for hours of work, | ||||||
2 | holidays, sick leave, overtime
compensation and vacation | ||||||
3 | for the purpose of improving conditions of
employment | ||||||
4 | covered therein and for the purpose of insuring conformity
| ||||||
5 | with the prevailing rate principal.
| ||||||
6 | (5) To prescribe standards of examination for each | ||||||
7 | class, the
examinations to be related to the duties of such | ||||||
8 | class. The Merit Board
shall have power to delegate to the | ||||||
9 | Director and his staff the
preparation, conduct and grading | ||||||
10 | of examinations. Examinations may be
written, oral, by | ||||||
11 | statement of training and experience, in the form of
tests | ||||||
12 | of knowledge, skill, capacity, intellect, aptitude; or, by | ||||||
13 | any
other method, which in the judgment of the Merit Board | ||||||
14 | is reasonable and
practical for any particular | ||||||
15 | classification. Different examining
procedures may be | ||||||
16 | determined for the examinations in different
| ||||||
17 | classifications but all examinations in the same | ||||||
18 | classification shall be
uniform.
| ||||||
19 | (6) To authorize the continuous recruitment of | ||||||
20 | personnel and to that
end, to delegate to the Director and | ||||||
21 | his staff the power and the duty to
conduct open and | ||||||
22 | continuous competitive examinations for all
| ||||||
23 | classifications of employment.
| ||||||
24 | (7) To cause to be established from the results of | ||||||
25 | examinations
registers for each class of positions in the | ||||||
26 | classified service of the
State Universities Civil Service |
| |||||||
| |||||||
1 | System, of the persons who shall
attain the minimum mark | ||||||
2 | fixed by the Merit Board for the examination;
and such | ||||||
3 | persons shall take rank upon the registers as candidates in | ||||||
4 | the
order of their relative excellence as determined by | ||||||
5 | examination, without
reference to priority of time of | ||||||
6 | examination.
| ||||||
7 | (8) To provide by its rules for promotions in the | ||||||
8 | classified
service. Vacancies shall be filled by promotion | ||||||
9 | whenever practicable.
For the purpose of this paragraph, an | ||||||
10 | advancement in class shall
constitute a promotion.
| ||||||
11 | (9) To set a probationary period of employment of no | ||||||
12 | less than 6 months
and no longer than 12 months for each | ||||||
13 | class of positions in the classification
plan, the length | ||||||
14 | of the probationary period for each class to be determined
| ||||||
15 | by the Director.
| ||||||
16 | (10) To provide by its rules for employment at regular | ||||||
17 | rates of
compensation of persons with physical | ||||||
18 | disabilities in positions in which the
disability does not | ||||||
19 | prevent the individual from furnishing satisfactory
| ||||||
20 | service.
| ||||||
21 | (11) To make and publish rules, to carry out the | ||||||
22 | purpose of the
State Universities Civil Service System and | ||||||
23 | for examination, appointments,
transfers and removals and | ||||||
24 | for maintaining and keeping records of the
efficiency of | ||||||
25 | officers and employees and groups of officers and
employees | ||||||
26 | in accordance with the provisions of Sections 36b to 36q,
|
| |||||||
| |||||||
1 | inclusive, and said Merit Board may from time to time make | ||||||
2 | changes in
such rules.
| ||||||
3 | (12) To appoint a Director and such assistants and | ||||||
4 | other clerical
and technical help as may be necessary | ||||||
5 | efficiently to administer
Sections 36b to 36q, inclusive. | ||||||
6 | To authorize the Director to appoint an
assistant resident | ||||||
7 | at the place of employment of each employer specified
in | ||||||
8 | Section 36e and this assistant may be authorized to give | ||||||
9 | examinations
and to certify names from the regional | ||||||
10 | registers provided in Section
36k.
| ||||||
11 | (13) To submit to the Governor of this state on or | ||||||
12 | before November 1
of each year prior to the regular session | ||||||
13 | of the General Assembly a
report of the University System's | ||||||
14 | business and an estimate of the amount
of appropriation | ||||||
15 | from state funds required for the purpose of
administering | ||||||
16 | the University System.
| ||||||
17 | (Source: P.A. 99-143, eff. 7-27-15.)
| ||||||
18 | Section 70. The University of Illinois Act is amended by | ||||||
19 | adding Section 100 as follows: | ||||||
20 | (110 ILCS 305/100 new) | ||||||
21 | Sec. 100. Future increases in income. The University of | ||||||
22 | Illinois must not pay, offer, or agree to pay any future | ||||||
23 | increase in income, as that term is defined in Section | ||||||
24 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
| |||||||
| |||||||
1 | to any person in a manner that violates Section 14-106.5, | ||||||
2 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
3 | Section 75. The Southern Illinois University Management | ||||||
4 | Act is amended by adding Section 85 as follows: | ||||||
5 | (110 ILCS 520/85 new) | ||||||
6 | Sec. 85. Future increases in income. Southern Illinois | ||||||
7 | University must not pay, offer, or agree to pay any future | ||||||
8 | increase in income, as that term is defined in Section | ||||||
9 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
10 | to any person in a manner that violates Section 14-106.5, | ||||||
11 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
12 | Section 80. The Chicago State University Law is amended by | ||||||
13 | adding Section 5-195 as follows: | ||||||
14 | (110 ILCS 660/5-195 new) | ||||||
15 | Sec. 5-195. Future increases in income. Chicago State | ||||||
16 | University must not pay, offer, or agree to pay any future | ||||||
17 | increase in income, as that term is defined in Section | ||||||
18 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
19 | to any person in a manner that violates Section 14-106.5, | ||||||
20 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
21 | Section 90. The Eastern Illinois University Law is amended |
| |||||||
| |||||||
1 | by adding Section 10-195 as follows: | ||||||
2 | (110 ILCS 665/10-195 new) | ||||||
3 | Sec. 10-195. Future increases in income. Eastern Illinois | ||||||
4 | University must not pay, offer, or agree to pay any future | ||||||
5 | increase in income, as that term is defined in Section | ||||||
6 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
7 | to any person in a manner that violates Section 14-106.5, | ||||||
8 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
9 | Section 95. The Governors State University Law is amended | ||||||
10 | by adding Section 15-195 as follows: | ||||||
11 | (110 ILCS 670/15-195 new) | ||||||
12 | Sec. 15-195. Future increases in income. Governors State | ||||||
13 | University must not pay, offer, or agree to pay any future | ||||||
14 | increase in income, as that term is defined in Section | ||||||
15 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
16 | to any person in a manner that violates Section 14-106.5, | ||||||
17 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
18 | Section 100. The Illinois State University Law is amended | ||||||
19 | by adding Section 20-200 as follows: | ||||||
20 | (110 ILCS 675/20-200 new) | ||||||
21 | Sec. 20-200. Future increases in income. Illinois State |
| |||||||
| |||||||
1 | University must not pay, offer, or agree to pay any future | ||||||
2 | increase in income, as that term is defined in Section | ||||||
3 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
4 | to any person in a manner that violates Section 14-106.5, | ||||||
5 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
6 | Section 105. The Northeastern Illinois University Law is | ||||||
7 | amended by adding Section 25-195 as follows: | ||||||
8 | (110 ILCS 680/25-195 new) | ||||||
9 | Sec. 25-195. Future increases in income. Northeastern | ||||||
10 | Illinois University must not pay, offer, or agree to pay any | ||||||
11 | future increase in income, as that term is defined in Section | ||||||
12 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
13 | to any person in a manner that violates Section 14-106.5, | ||||||
14 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
15 | Section 110. The Northern Illinois University Law is | ||||||
16 | amended by adding Section 30-205 as follows: | ||||||
17 | (110 ILCS 685/30-205 new) | ||||||
18 | Sec. 30-205. Future increases in income. Northern Illinois | ||||||
19 | University must not pay, offer, or agree to pay any future | ||||||
20 | increase in income, as that term is defined in Section | ||||||
21 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
22 | to any person in a manner that violates Section 14-106.5, |
| |||||||
| |||||||
1 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
2 | Section 115. The Western Illinois University Law is amended | ||||||
3 | by adding Section 35-200 as follows: | ||||||
4 | (110 ILCS 690/35-200 new) | ||||||
5 | Sec. 35-200. Future increases in income. Western Illinois | ||||||
6 | University must not pay, offer, or agree to pay any future | ||||||
7 | increase in income, as that term is defined in Section | ||||||
8 | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, | ||||||
9 | to any person in a manner that violates Section 14-106.5, | ||||||
10 | 15-132.9, or 16-122.9 of the Illinois Pension Code. | ||||||
11 | Section 120. The Public Community College Act is amended by | ||||||
12 | changing Sections 3-26 and 3-42 as follows:
| ||||||
13 | (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
| ||||||
14 | Sec. 3-26.
(a) To make appointments and fix the salaries of | ||||||
15 | a
chief administrative officer, who shall be the executive
| ||||||
16 | officer of the board, other administrative personnel , and all | ||||||
17 | teachers , but subject to any applicable restrictions in Section | ||||||
18 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code .
| ||||||
19 | In making these appointments and fixing the salaries, the board | ||||||
20 | may
make no discrimination on account of sex, race, creed, | ||||||
21 | color or national origin.
| ||||||
22 | (b) Upon the written request of an employee, to
withhold |
| |||||||
| |||||||
1 | from the compensation of that employee the membership
dues of | ||||||
2 | such employee
payable to any specified labor organization
as | ||||||
3 | defined in the Illinois Educational Labor Relations Act. Under | ||||||
4 | such
arrangement, an amount shall be withheld for each regular | ||||||
5 | payroll period
which is equal to the prorata share of the | ||||||
6 | annual membership dues plus
any payments or contributions and | ||||||
7 | the
board shall pay such withholding to the specified labor | ||||||
8 | organization
within 10 working days from the time of the | ||||||
9 | withholding.
| ||||||
10 | (Source: P.A. 83-1014.)
| ||||||
11 | (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
| ||||||
12 | Sec. 3-42.
To employ such personnel as may be needed, to | ||||||
13 | establish policies
governing their employment and dismissal, | ||||||
14 | and to fix the amount of their
compensation , subject to any | ||||||
15 | applicable restrictions in Section 14-106.5, 15-132.9, or | ||||||
16 | 16-122.9 of the Illinois Pension Code . In the employment, | ||||||
17 | establishment of policies and fixing of
compensation the board | ||||||
18 | may make no discrimination on account of sex, race,
creed, | ||||||
19 | color or national origin.
| ||||||
20 | Residence within any community college district or outside | ||||||
21 | any community
college district shall not be considered:
| ||||||
22 | (a) in determining whether to retain or not retain any | ||||||
23 | employee of a community
college employed prior to July 1, | ||||||
24 | 1977 or prior to the adoption by the community
college | ||||||
25 | board of a resolution making residency within the community |
| |||||||
| |||||||
1 | college
district of some or all employees a condition of | ||||||
2 | employment, whichever is later;
| ||||||
3 | (b) in assigning, promoting or transferring any | ||||||
4 | employee of a community
college to an office or position | ||||||
5 | employed prior to July 1, 1977 or prior
to the adoption by | ||||||
6 | the community college board of a resolution making | ||||||
7 | residency
within the community college district of some or | ||||||
8 | all employees a condition
of employment, whichever is | ||||||
9 | later; or
| ||||||
10 | (c) in determining the salary or other compensation of | ||||||
11 | any employee of
a community college.
| ||||||
12 | (Source: P.A. 80-248.)
| ||||||
13 | Section 125. The Illinois Educational Labor Relations Act | ||||||
14 | is amended by changing Sections 4, 14, and 17 and by adding | ||||||
15 | Section 10.6 as follows:
| ||||||
16 | (115 ILCS 5/4) (from Ch. 48, par. 1704)
| ||||||
17 | Sec. 4. Employer rights. Employers shall not be required to | ||||||
18 | bargain over matters of inherent
managerial policy, which shall | ||||||
19 | include such areas of discretion or policy
as the functions of | ||||||
20 | the employer, standards of services, its overall
budget, the | ||||||
21 | organizational structure and selection of new employees and
| ||||||
22 | direction of employees. Employers, however, shall be required | ||||||
23 | to bargain
collectively with regard to policy matters directly | ||||||
24 | affecting wages (but subject to any applicable restrictions in |
| |||||||
| |||||||
1 | Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the | ||||||
2 | Illinois Pension Code) , hours
and terms and conditions of | ||||||
3 | employment as well as the impact thereon upon
request by | ||||||
4 | employee representatives , but excluding the changes, the | ||||||
5 | impact of changes, and the implementation of the changes set | ||||||
6 | forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of | ||||||
7 | the Illinois Pension Code . To preserve the rights of employers
| ||||||
8 | and exclusive representatives which have established | ||||||
9 | collective bargaining
relationships or negotiated collective | ||||||
10 | bargaining agreements prior to the
effective date of this Act, | ||||||
11 | employers shall be required to bargain
collectively with regard | ||||||
12 | to any matter concerning wages (but subject to any applicable | ||||||
13 | restrictions in Section 14-106.5, 15-132.9, 16-122.9, or | ||||||
14 | 17-115.5 of the Illinois Pension Code) , hours or
conditions of | ||||||
15 | employment about which they have bargained for and agreed to
in | ||||||
16 | a collective bargaining agreement prior to the effective date | ||||||
17 | of this Act , but excluding the changes, the impact of changes, | ||||||
18 | and the implementation of the changes set forth in Section | ||||||
19 | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois | ||||||
20 | Pension Code .
| ||||||
21 | (Source: P.A. 83-1014.)
| ||||||
22 | (115 ILCS 5/10.6 new) | ||||||
23 | Sec. 10.6. No collective bargaining or interest | ||||||
24 | arbitration regarding certain changes to the Illinois Pension | ||||||
25 | Code. |
| |||||||
| |||||||
1 | (a) Notwithstanding any other provision of this Act, | ||||||
2 | employers shall not be required to bargain over matters | ||||||
3 | affected by the changes, the impact of the changes, and the | ||||||
4 | implementation of the changes to Article 14, 15, 16, or 17 of | ||||||
5 | the Illinois Pension Code made by the addition of Section | ||||||
6 | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois | ||||||
7 | Pension Code, which are deemed to be prohibited subjects of | ||||||
8 | bargaining. Notwithstanding any provision of this Act, the | ||||||
9 | changes, impact of the changes, or implementation of the | ||||||
10 | changes to Article 14, 15, 16, or 17 of the Illinois Pension | ||||||
11 | Code made by the addition of Section 14-106.5, 15-132.9, | ||||||
12 | 16-122.9, or 17-115.5 of the Illinois Pension Code shall not be | ||||||
13 | subject to interest arbitration or any award issued pursuant to | ||||||
14 | interest arbitration. The provisions of this Section shall not | ||||||
15 | apply to an employment contract or collective bargaining | ||||||
16 | agreement that is in effect on the effective date of this | ||||||
17 | amendatory Act of the 100th General Assembly. However, any such | ||||||
18 | contract or agreement that is modified, amended, renewed, or | ||||||
19 | superseded after the effective date of this amendatory Act of | ||||||
20 | the 100th General Assembly shall be subject to the provisions | ||||||
21 | of this Section. The provisions of this Section shall not apply | ||||||
22 | to the ability of any employer and employee representative to | ||||||
23 | bargain collectively with regard to the pick up of employee | ||||||
24 | contributions pursuant to Section 14-133.1, 15-157.1, | ||||||
25 | 16-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code. | ||||||
26 | (b) Nothing in this Section shall be construed as otherwise |
| |||||||
| |||||||
1 | limiting any of the obligations and requirements applicable to | ||||||
2 | employers under any of the provisions of this Act, including, | ||||||
3 | but not limited to, the requirement to bargain collectively | ||||||
4 | with regard to policy matters directly affecting wages, hours, | ||||||
5 | and terms and conditions of employment as well as the impact | ||||||
6 | thereon upon request by employee representatives, except for | ||||||
7 | the matters set forth in subsection (a) of this Section that | ||||||
8 | are deemed prohibited subjects of bargaining. Nothing in this | ||||||
9 | Section shall be construed as otherwise limiting any of the | ||||||
10 | rights of employees or employee representatives under the | ||||||
11 | provisions of this Act, except for the matters set forth in | ||||||
12 | subsection (a) of this Section that are deemed prohibited | ||||||
13 | subjects of bargaining. | ||||||
14 | (c) In case of any conflict between this Section and any | ||||||
15 | other provisions of this Act or any other law, the provisions | ||||||
16 | of this Section shall control.
| ||||||
17 | (115 ILCS 5/14) (from Ch. 48, par. 1714)
| ||||||
18 | Sec. 14. Unfair labor practices.
| ||||||
19 | (a) Educational employers, their agents
or representatives | ||||||
20 | are prohibited from:
| ||||||
21 | (1) Interfering, restraining or coercing employees in | ||||||
22 | the exercise of
the rights guaranteed under this Act.
| ||||||
23 | (2) Dominating or interfering with the formation, | ||||||
24 | existence or
administration of any employee organization.
| ||||||
25 | (3) Discriminating in regard to hire or tenure of |
| |||||||
| |||||||
1 | employment or any term
or condition of employment to | ||||||
2 | encourage or discourage membership in any
employee | ||||||
3 | organization.
| ||||||
4 | (4) Discharging or otherwise discriminating against an | ||||||
5 | employee because
he or she has signed or filed an | ||||||
6 | affidavit, authorization card, petition or
complaint or | ||||||
7 | given any information or testimony under this Act.
| ||||||
8 | (5) Subject to and except as provided in Section 10.6, | ||||||
9 | refusing Refusing to bargain collectively in good faith | ||||||
10 | with an employee
representative which is the exclusive | ||||||
11 | representative of employees in an
appropriate unit, | ||||||
12 | including but not limited to the discussing of grievances
| ||||||
13 | with the exclusive representative; provided, however, that | ||||||
14 | if an alleged
unfair labor practice involves | ||||||
15 | interpretation or application of the terms
of a collective | ||||||
16 | bargaining agreement and said agreement contains a
| ||||||
17 | grievance and arbitration procedure, the Board may defer | ||||||
18 | the resolution of
such dispute to the grievance and | ||||||
19 | arbitration procedure contained in said
agreement. | ||||||
20 | However, no actions of the employer taken to implement or | ||||||
21 | otherwise comply with the provisions of subsection (a) of | ||||||
22 | Section 10.6 shall constitute or give rise to an unfair | ||||||
23 | labor practice under this Act.
| ||||||
24 | (6) Refusing to reduce a collective bargaining | ||||||
25 | agreement to writing and
signing such agreement.
| ||||||
26 | (7) Violating any of the rules and regulations |
| |||||||
| |||||||
1 | promulgated by the Board
regulating the conduct of | ||||||
2 | representation elections.
| ||||||
3 | (8) Refusing to comply with the provisions of a binding | ||||||
4 | arbitration award.
| ||||||
5 | (9) Expending or causing the expenditure of public | ||||||
6 | funds to any
external agent, individual, firm, agency, | ||||||
7 | partnership or association in any
attempt to influence the | ||||||
8 | outcome of representational elections held
pursuant to | ||||||
9 | paragraph (c) of Section 7 of this Act; provided, that | ||||||
10 | nothing
in this subsection shall be construed to limit an | ||||||
11 | employer's right to be
represented on any matter pertaining | ||||||
12 | to unit determinations, unfair labor
practice charges or | ||||||
13 | pre-election conferences in any formal or informal
| ||||||
14 | proceeding before the Board, or to seek or obtain advice | ||||||
15 | from legal counsel.
Nothing in this paragraph shall be | ||||||
16 | construed to prohibit an employer from
expending or causing | ||||||
17 | the expenditure of public funds on, or seeking or
obtaining | ||||||
18 | services or advice from, any organization, group or | ||||||
19 | association
established by, and including educational or | ||||||
20 | public employers, whether or
not covered by this Act, the | ||||||
21 | Illinois Public Labor Relations Act or the
public | ||||||
22 | employment labor relations law of any other state or the | ||||||
23 | federal
government, provided that such services or advice | ||||||
24 | are generally available
to the membership of the | ||||||
25 | organization, group, or association, and are not
offered | ||||||
26 | solely in an attempt to influence the outcome of a |
| |||||||
| |||||||
1 | particular
representational election.
| ||||||
2 | (b) Employee organizations, their agents or | ||||||
3 | representatives or educational
employees are prohibited from:
| ||||||
4 | (1) Restraining or coercing employees in the exercise | ||||||
5 | of the rights
guaranteed under this Act, provided that a | ||||||
6 | labor organization or its
agents shall commit an unfair | ||||||
7 | labor practice under this paragraph in duty
of fair | ||||||
8 | representation cases only by intentional misconduct in | ||||||
9 | representing
employees under this Act.
| ||||||
10 | (2) Restraining or coercing an educational employer in | ||||||
11 | the selection of
his representative for the purposes of | ||||||
12 | collective bargaining or the adjustment
of grievances.
| ||||||
13 | (3) Refusing to bargain collectively in good faith with | ||||||
14 | an educational
employer, if they have been designated in | ||||||
15 | accordance with the provisions
of this Act as the exclusive | ||||||
16 | representative of employees in an appropriate
unit.
| ||||||
17 | (4) Violating any of the rules and regulations | ||||||
18 | promulgated by the Board
regulating the conduct of | ||||||
19 | representation elections.
| ||||||
20 | (5) Refusing to reduce a collective bargaining | ||||||
21 | agreement to writing and
signing such agreement.
| ||||||
22 | (6) Refusing to comply with the provisions of a binding | ||||||
23 | arbitration award.
| ||||||
24 | (c) The expressing of any views, argument, opinion or the
| ||||||
25 | dissemination thereof, whether in written, printed, graphic or | ||||||
26 | visual form,
shall not constitute or be evidence of an unfair |
| |||||||
| |||||||
1 | labor practice under any
of the provisions of this Act, if such | ||||||
2 | expression contains no threat of
reprisal or force or promise | ||||||
3 | of benefit.
| ||||||
4 | (d) The actions of a Financial Oversight Panel created | ||||||
5 | pursuant to Section
1A-8
of the School Code due to a district | ||||||
6 | violating a financial plan shall not
constitute or be evidence | ||||||
7 | of an unfair labor practice under any of the
provisions of this | ||||||
8 | Act. Such actions include, but are not limited to,
reviewing, | ||||||
9 | approving, or rejecting a school district budget or a | ||||||
10 | collective
bargaining agreement.
| ||||||
11 | (Source: P.A. 89-572, eff. 7-30-96.)
| ||||||
12 | (115 ILCS 5/17) (from Ch. 48, par. 1717)
| ||||||
13 | Sec. 17. Effect on other laws. In case of any conflict | ||||||
14 | between the
provisions of this Act and any other law (other | ||||||
15 | than Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the | ||||||
16 | Illinois Pension Code) , executive order or administrative
| ||||||
17 | regulation, the provisions of this Act shall prevail and | ||||||
18 | control.
The provisions of this Act are subject to any | ||||||
19 | applicable restrictions in Section 14-106.5, 15-132.9, | ||||||
20 | 16-122.9, or 17-115.5 of the Illinois Pension Code, as well as | ||||||
21 | the changes, impact of changes, and implementation of changes | ||||||
22 | set forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 | ||||||
23 | of the Illinois Pension Code. Nothing in this Act shall be | ||||||
24 | construed to replace or diminish the rights
of employees | ||||||
25 | established by Section 36d of "An Act to create the State |
| |||||||
| |||||||
1 | Universities
Civil Service System", approved May 11, 1905, as | ||||||
2 | amended or modified.
| ||||||
3 | (Source: P.A. 83-1014.)
| ||||||
4 | Section 900. The State Mandates Act is amended by adding | ||||||
5 | Section 8.41 as follows: | ||||||
6 | (30 ILCS 805/8.41 new) | ||||||
7 | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
8 | of this Act, no reimbursement by the State is required for the | ||||||
9 | implementation of any mandate created by this amendatory Act of | ||||||
10 | the 100th General Assembly. | ||||||
11 | Section 970. Severability. The provisions of this Act are | ||||||
12 | severable under Section 1.31 of the Statute on Statutes. | ||||||
13 | Section 999. Effective date. This Act takes effect upon | ||||||
14 | becoming law. |