SB4206 102ND GENERAL ASSEMBLY

LRB102 26557 RPS 37237 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4206

Introduced 4/6/2022, by Sen. Scott M. Bennett

SYNOPSIS AS INTRODUCED:

40 ILCS 5/15-103.1
40 ILCS 5/15-103.2
40 ILCS 5/15-103.3
40 ILCS 5/15-107	from Ch. 108 1/2, par. 15-107
40 ILCS 5/15-153.3	from Ch. 108 1/2, par. 15-153.3
40 ILCS 5/15-153.4 new
40 ILCS 5/15-198

Amends the State Universities Article of the Illinois Pension Code. Provides that if a police officer, as the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, is found to be physically or mentally disabled for service as a police officer so as to render necessary his or her suspension or retirement from the police service or is found to be unable to perform his or her duties as a police officer by reason of heart disease, stroke, tuberculosis, or any disease of the lungs or respiratory tract, resulting from service as a police officer, then the police officer shall be entitled to a line of duty disability annuity equal to the greater of: (1) 65% of the salary attached to the rank on the police force held by the officer at the date of suspension of duty or retirement; or (2) the retirement annuity that the police officer would be eligible to receive if he or she retired (but not including any automatic annual increase in that retirement annuity). Provides that a police officer shall be considered to be in the performance of an act of duty while on any assignment approved by the police officer's chief, whether the assignment is on or off the employer's property. Provides that if a police officer who receives a line of duty disability annuity under the provisions dies while still disabled, the line of duty disability retirement annuity shall continue to be paid to his or her survivors. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Contains provisions concerning annual increases; verification of disability; and applicability. Makes conforming and other changes.

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Sections 15-103.1, 15-103.2, 15-103.3, 15-107, 15-153.3, and 15-198 and by adding Section 15-153.4 as follows:

(40 ILCS 5/15-103.1)

Sec. 15-103.1. Traditional Benefit Package. "Traditional benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15-135 through 15-140 (but disregarding Section 15-136.4), disability retirement annuities payable under Section 15-153.2, line of duty disability annuities under Section 15-153.4, death benefits payable directly from the System as provided in Sections 15-141 through 15-144, survivors insurance benefits payable directly from the System as provided in Sections 15-145 through 15-149, and contribution refunds as provided in Section 15-154. The traditional benefit package also includes disability benefits as provided in Sections 15-150 through 15-153.3.

(Source: P.A. 90-766, eff. 8-14-98.)

(40 ILCS 5/15-103.2)

Sec. 15-103.2. Portable Benefit Package. "Portable benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15-135 through 15-139 (specifically including Section 15-136.4), disability retirement annuities payable under Section 15-153.2, line of duty disability annuities under Section 15-153.4, death benefits payable directly from the System as provided in Sections 15-141 through 15-144, and contribution refunds as provided in Section 15-154. The portable benefit package also includes disability benefits as provided in Sections 15-150 through 15-153.3. The portable benefit package does not include the survivors insurance benefits payable directly from the System as provided in Sections 15-145 through 15-149.

(Source: P.A. 90-766, eff. 8-14-98.)

(40 ILCS 5/15-103.3)

Sec. 15-103.3. Self-Managed Plan. "Self-managed plan": The defined contribution retirement program maintained under the System as described in Section 15-158.2. The self-managed plan also includes disability benefits as provided in Sections 15-150 through 15-153.3 (but disregarding disability retirement annuities under Section 15-153.2) and line of duty disability annuities under Section 15-153.4. The self-managed plan does not include retirement annuities, death benefits, or survivors insurance benefits payable directly from the System as provided in Sections 15-135 through 15-149 and Section 15-153.2, or refunds determined under Section 15-154.

(Source: P.A. 90-766, eff. 8-14-98.)

(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)

Sec. 15-107. Employee.

(a) "Employee" means any member of the educational, administrative, secretarial, clerical, mechanical, labor or other staff of an employer whose employment is permanent and continuous or who is employed in a position in which services are expected to be rendered on a continuous basis for at least 4 months or one academic term, whichever is less, who (A) receives payment for personal services on a warrant issued pursuant to a payroll voucher certified by an employer and drawn by the State Comptroller upon the State Treasurer or by an employer upon trust, federal or other funds, or (B) is on a leave of absence without pay. Employment which is irregular, intermittent or temporary shall not be considered continuous for purposes of this paragraph.

However, a person is not an "employee" if he or she:

(1) is a student enrolled in and regularly attending classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;

(2) is currently receiving a retirement annuity or a disability retirement annuity under Section 15-153.2 from this System;

(3) is on a military leave of absence;

(4) is eligible to participate in the Federal Civil Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;

(5) is on leave of absence without pay for more than 60 days immediately following termination of disability benefits under this Article;

(6) is hired after June 30, 1979 as a public service employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or

(7) is employed on or after July 1, 1991 to perform services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410); or .

(8) receives a line of duty disability annuity under Section 15-153.4.

(b) Any employer may, by filing a written notice with the board, exclude from the definition of "employee" all persons employed pursuant to a federally funded contract entered into after July 1, 1982 with a federal military department in a program providing training in military courses to federal military personnel on a military site owned by the United States Government, if this exclusion is not prohibited by the federally funded contract or federal laws or rules governing the administration of the contract.

(c) Any person appointed by the Governor under the Civil Administrative Code of Illinois is an employee, if he or she is a participant in this system on the effective date of the appointment.

(d) A participant on lay-off status under civil service rules is considered an employee for not more than 120 days from the date of the lay-off.

(e) A participant is considered an employee during (1) the first 60 days of disability leave, (2) the period, not to exceed one year, in which his or her eligibility for disability benefits is being considered by the board or reviewed by the courts, and (3) the period he or she receives disability benefits under the provisions of Section 15-152, workers' compensation or occupational disease benefits, or disability income under an insurance contract financed wholly or partially by the employer.

(f) Absences without pay, other than formal leaves of absence, of less than 30 calendar days, are not considered as an interruption of a person's status as an employee. If such absences during any period of 12 months exceed 30 work days, the employee status of the person is considered as interrupted as of the 31st work day.

(g) A staff member whose employment contract requires services during an academic term is to be considered an employee during the summer and other vacation periods, unless he or she declines an employment contract for the succeeding academic term or his or her employment status is otherwise terminated, and he or she receives no earnings during these periods.

(h) An individual who was a participating employee employed in the fire department of the University of Illinois's Champaign-Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department became employed by the fire department of the City of Urbana or the City of Champaign shall continue to be considered as an employee for purposes of this Article for so long as the individual remains employed as a firefighter by the City of Urbana or the City of Champaign. The individual shall cease to be considered an employee under this subsection (h) upon the first termination of the individual's employment as a firefighter by the City of Urbana or the City of Champaign.

(i) An individual who is employed on a full-time basis as an officer or employee of a statewide teacher organization that serves System participants or an officer of a national teacher organization that serves System participants may participate in the System and shall be deemed an employee, provided that (1) the individual has previously earned creditable service under this Article, (2) the individual files with the System an irrevocable election to become a participant before January 5, 2012 (the effective date of Public Act 97-651), (3) the individual does not receive credit for that employment under any other Article of this Code, and (4) the individual first became a full-time employee of the teacher organization and becomes a participant before January 5, 2012 (the effective date of Public Act 97-651). An employee under this subsection (i) is responsible for paying to the System both (A) employee contributions based on the actual compensation received for service with the teacher organization and (B) employer contributions equal to the normal costs (as defined in Section 15-155) resulting from that service; all or any part of these contributions may be paid on the employee's behalf or picked up for tax purposes (if authorized under federal law) by the teacher organization.

A person who is an employee as defined in this subsection (i) may establish service credit for similar employment prior to becoming an employee under this subsection by paying to the System for that employment the contributions specified in this subsection, plus interest at the effective rate from the date of service to the date of payment. However, credit shall not be granted under this subsection for any such prior employment for which the applicant received credit under any other provision of this Code, or during which the applicant was on a leave of absence under Section 15-113.2.

(j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau or the Department of Innovation and Technology and meets the requirements of subsection (a).

(k) The Board shall promulgate rules with respect to determining whether any person is an employee within the meaning of this Section. In the case of doubt as to whether any person is an employee within the meaning of this Section or any rule adopted by the Board, the decision of the Board shall be final.

(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)

(40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)

Sec. 15-153.3. Automatic increase in disability benefit. Each disability benefit payable under Section 15-150 and calculated under Section 15-153 or 15-153.2 and each line of duty disability annuity under Section 15-153.4 that has not yet received an initial increase under this Section shall be increased by 0.25% of the monthly disability benefit multiplied by the number of full months that have elapsed since the benefit began on January 1, 2002 or the January 1 next following the granting of the benefit, whichever occurs later.

On each January 1 following the initial increase under this Section, the disability benefit shall be increased by 3% of the current amount of the benefit, including prior increases under this Article.

The changes made to this Section by this amendatory Act of the 92nd General Assembly apply without regard to whether the benefit recipient was in service on or after the effective date of this amendatory Act.

(Source: P.A. 92-749, eff. 8-2-02.)

(40 ILCS 5/15-153.4 new)

Sec. 15-153.4. Line of duty disability annuity.

(a) This Section applies only to police officers, and the annuities provided under this Section are in lieu of the benefits under Section 15-150, disability retirement annuities, and retirement annuities. If a police officer, as the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, is found to be physically or mentally disabled for service as a police officer so as to render necessary his or her suspension or retirement from the police service or is found to be unable to perform his or her duties as a police officer by reason of heart disease, stroke, tuberculosis, or any disease of the lungs or respiratory tract, resulting from service as a police officer, then the police officer shall be entitled to a line of duty disability annuity under this Section equal to the greater of: (1) 65% of the salary attached to the rank on the police force held by the officer at the date of suspension of duty or retirement; or (2) the retirement annuity that the police officer would be eligible to receive if he or she retired (but not including any automatic annual increase in that retirement annuity). The amount of the benefit shall be subject to the reductions specified in Section 15-153.1.

Any police officer who suffers a heart attack or stroke as a result of the performance and discharge of police duty shall be considered to have been injured in the performance of an act of duty and shall be eligible for the benefits provided under this Section.

A police officer shall be considered to be in the performance of an act of duty while on any assignment approved by the police officer's chief, whether the assignment is on or off the employer's property.

(b) A line of duty disability annuity shall not be paid unless there is filed with the Board certificates of the police officer's disability, subscribed and sworn to by the police officer if he or she is not under legal disability, or by a representative if the police officer is under legal disability, and by the police surgeon (if there is one) and 3 practicing physicians selected by the Board. The Board may require other evidence of disability. Medical examination of a police officer receiving a line of duty disability annuity shall be made at least once each year prior to attainment of age 50, as verification of the continuance of disability for service as a police officer. No examination shall be required after age 50.

(c) The System may take appropriate steps to verify the applicant's disability and earnings status and, for this purpose, may request from the Department of Revenue a certified copy of the applicant's Illinois income tax return for any year for which an annuity under this Section is payable or has been paid.

(d) A disabled police officer who (1) is receiving a line of duty disability annuity, (2) annually files with the System, while the line of duty disability annuity remains payable, a written application for the benefits of this subsection, including an affidavit stating that the applicant has not earned any income from gainful employment during the most recently concluded tax year and a copy of his or her most recent Illinois income tax return, (3) has service credit under this Article for at least 7 years of active duty, and (4) has been receiving the annuity under this Section for a period that, when added to the officer's total service credit under this Article, equals at least 20 years, shall be eligible to receive an annual noncompounded increase in his or her annuity under this Section, equal to 3% of the original annuity. The annual increase shall accrue on each anniversary of the initial payment date of the line of duty disability annuity under this Section for so long as the annuity remains payable to the disabled police officer and the required annual application is made, except that the annual increases under this Section shall cease if the disabled police officer earns income from gainful employment. Within 60 days after accepting an initial application under this Section, the System shall pay to the disabled police officer, in a lump sum without interest, the amounts resulting from the annual increases that have accrued retroactively.

(e) This Section is not limited to persons in active service on or after the effective date of this amendatory Act of the 102nd General Assembly, but it applies only to an annuity that is payable under this Section to a disabled police officer (rather than a survivor). Upon the death of the disabled police officer, the line of duty disability annuity payable under this Section to his or her survivors shall include any annual increases previously received, but no additional increases shall accrue under this subsection.

(f) If a police officer who receives a line of duty disability annuity under this Section dies while still disabled, the line of duty disability annuity under this Section shall continue to be paid to his or her survivors in the sequence provided in Section 15-145 in lieu of the survivors insurance benefits provided in Section 15-145, unless the survivors insurance benefits are greater.

(g) The Board shall adopt rules governing the filing, investigation, control, and supervision of line of duty disability annuity claims.

(40 ILCS 5/15-198)

Sec. 15-198. Application and expiration of new benefit increases.

(a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 100-23, Public Act 100-587, Public Act 100-769, Public Act 101-10, Public Act 101-610, Public Act 102-16, or this amendatory Act of the 102nd General Assembly this amendatory Act of the 102nd General Assembly.

(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.

(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.

Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.

(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.

(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.

(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)