Sen. Don Harmon
Filed: 5/26/2009
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1 | AMENDMENT TO HOUSE BILL 2643
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2 | AMENDMENT NO. ______. Amend House Bill 2643 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Public Labor Relations Act is | ||||||
5 | amended by changing Section 15 and by adding Section 28 as | ||||||
6 | follows:
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7 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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8 | Sec. 15. Act Takes Precedence. | ||||||
9 | (a) In case of any conflict between the
provisions of this | ||||||
10 | Act and any other law (other than Section 5 of the State | ||||||
11 | Employees Group Insurance Act of 1971 and other than the | ||||||
12 | changes made to the Illinois Pension Code by this amendatory | ||||||
13 | Act of the 96th General Assembly ), executive order or | ||||||
14 | administrative
regulation relating to wages, hours and | ||||||
15 | conditions of employment and employment
relations, the | ||||||
16 | provisions of this Act or any collective bargaining agreement
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1 | negotiated thereunder shall prevail and control.
Nothing in | ||||||
2 | this Act shall be construed to replace or diminish the
rights | ||||||
3 | of employees established by Sections 28 and 28a of the | ||||||
4 | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | ||||||
5 | of the Regional Transportation
Authority Act. The provisions of | ||||||
6 | this Act are subject to Section 5 of the State Employees Group | ||||||
7 | Insurance Act of 1971 and the changes made to the Illinois | ||||||
8 | Pension Code by this amendatory Act of the 96th General | ||||||
9 | Assembly . Nothing in this Act shall be construed to replace the | ||||||
10 | necessity of complaints against a sworn peace officer, as | ||||||
11 | defined in Section 2(a) of the Uniform Peace Officer | ||||||
12 | Disciplinary Act, from having a complaint supported by a sworn | ||||||
13 | affidavit.
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14 | (b) Except as provided in subsection (a) above, any | ||||||
15 | collective bargaining
contract between a public employer and a | ||||||
16 | labor organization executed pursuant
to this Act shall | ||||||
17 | supersede any contrary statutes, charters, ordinances, rules
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18 | or regulations relating to wages, hours and conditions of | ||||||
19 | employment and
employment relations adopted by the public | ||||||
20 | employer or its agents. Any collective
bargaining agreement | ||||||
21 | entered into prior to the effective date of this Act
shall | ||||||
22 | remain in full force during its duration.
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23 | (c) It is the public policy of this State, pursuant to | ||||||
24 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
25 | Illinois Constitution, that the
provisions of this Act are the | ||||||
26 | exclusive exercise by the State of powers
and functions which |
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1 | might otherwise be exercised by home rule units. Such
powers | ||||||
2 | and functions may not be exercised concurrently, either | ||||||
3 | directly
or indirectly, by any unit of local government, | ||||||
4 | including any home rule
unit, except as otherwise authorized by | ||||||
5 | this Act.
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6 | (d) Any disputes that are brought on behalf of any employer | ||||||
7 | or employee or exclusive bargaining representative subject to | ||||||
8 | this Act arising from the changes made to the Illinois Pension | ||||||
9 | Code by this amendatory Act of the 96th General Assembly shall | ||||||
10 | be subject to the exclusive jurisdiction of the Illinois Labor | ||||||
11 | Relations Board, and the Circuit Courts shall have no | ||||||
12 | jurisdiction, except to hear disputes arising directly under | ||||||
13 | the Constitution of the United States of America or the | ||||||
14 | Illinois Constitution. | ||||||
15 | (Source: P.A. 95-331, eff. 8-21-07.)
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16 | (5 ILCS 315/28 new)
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17 | Sec. 28. Labor. Notwithstanding the existence of any other | ||||||
18 | provision in this Act or any other law, collective bargaining | ||||||
19 | between any employer whose employees are affected by the | ||||||
20 | changes made to the Illinois Pension Code by this amendatory | ||||||
21 | Act of the 96th General Assembly and the exclusive bargaining | ||||||
22 | representative of such employees may include decisions | ||||||
23 | concerning the changes made to the Illinois Pension Code by | ||||||
24 | this amendatory Act of the 96th General Assembly, including, | ||||||
25 | but not limited to, changes and benefits of retirement systems |
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1 | covered by the Illinois Pension Code. These subjects are | ||||||
2 | permissive subjects of bargaining between an employer and an | ||||||
3 | exclusive representative of its employees and, for the purpose | ||||||
4 | of the this Act, are within the sole discretion of the employer | ||||||
5 | to decide to bargain, provided that the employer is required to | ||||||
6 | bargain over the impact of a decision concerning such subject | ||||||
7 | on the bargaining unit upon request by the exclusive | ||||||
8 | representative. During this bargaining, the employer shall not | ||||||
9 | be precluded from implementing its decision. If, after a | ||||||
10 | reasonable period of bargaining, a dispute or impasse exists | ||||||
11 | between the employer and the exclusive representative, then the | ||||||
12 | dispute or impasse shall be resolved exclusively as set forth | ||||||
13 | in this Act.
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14 | Section 10. The Illinois Pension Code is amended by adding | ||||||
15 | Sections 2-300, 2-305, 2-310, 2-315, 2-320, 2-325, 2-330, | ||||||
16 | 2-335, 2-340, 14-300, 14-305, 14-310, 14-315, 14-320, 14-325, | ||||||
17 | 14-330, 14-335, 14-340, 15-300, 15-305, 15-310, 15-315, | ||||||
18 | 15-320, 15-325, 15-330, 15-335, 15-340, 16-300, 16-305, | ||||||
19 | 16-310, 16-315, 16-320, 16-325, 16-330, 16-335, 16-340, | ||||||
20 | 18-300, 18-305, 18-310, 18-315, 18-320, 18-325, 18-330, | ||||||
21 | 18-335, and 18-340 as follows: | ||||||
22 | (40 ILCS 5/2-300 new)
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23 | Sec. 2-300. Provisions applicable to later entrants. | ||||||
24 | (a) The provisions of this Article following this Section |
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1 | apply only to members who first become members on or after | ||||||
2 | January 1, 2010, who are referred to as "later entrants" or who | ||||||
3 | are otherwise considered "later entrants" in accordance with | ||||||
4 | the following Sections of this Article. | ||||||
5 | (b) Except as provided in subsection (c) of this Section, | ||||||
6 | the Sections of this Article before this Section do not apply | ||||||
7 | to members who first become members on or after January 1, | ||||||
8 | 2010. | ||||||
9 | (c) The following Sections are also applicable to members | ||||||
10 | who first become members on or after January 1, 2010: Sections | ||||||
11 | 2-101, 2-102, 2-103, 2-104, 2-105, 2-106, 2-109, 2-111, 2-112, | ||||||
12 | 2-113, 2-114, 2-116, 2-117, 2-117.3, 2-121.2, 2-121.3, 2-124 | ||||||
13 | through 2-160, and 2-162. | ||||||
14 | (d) To the extent that the Sections enumerated in | ||||||
15 | subsection (c) of this Section conflict with the Sections | ||||||
16 | following this Section, the Sections following this Section | ||||||
17 | shall control. | ||||||
18 | (e) To the extent that the applicable Sections are included | ||||||
19 | under subsection (c) of this Section, later entrants are | ||||||
20 | entitled to disability benefits under this Article. | ||||||
21 | (f) "Participant" shall include later entrants who elect to | ||||||
22 | participate, but shall not include former members who elect to | ||||||
23 | participate under Section 2-117.1. | ||||||
24 | (40 ILCS 5/2-305 new)
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25 | Sec. 2-305. Creditable service for later entrants. |
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1 | (a) A member may only establish creditable service for his | ||||||
2 | or her service as a member under this Article. Except as | ||||||
3 | otherwise provided in this Section, a member may not establish | ||||||
4 | creditable service for any other service. | ||||||
5 | (b) A member may establish creditable service, without | ||||||
6 | making contributions, for periods of military service, as | ||||||
7 | defined in Section 2-109, provided that the person received a | ||||||
8 | discharge other than dishonorable, was a member within 6 months | ||||||
9 | prior to military service, and returned to service as a member | ||||||
10 | under this System within one year after discharge. | ||||||
11 | A member may purchase up to 2 years of military service not | ||||||
12 | immediately following service as a member under this System, by | ||||||
13 | paying to the System (1) employee contributions based on the | ||||||
14 | member's salary upon the first date as a member after the | ||||||
15 | military service, plus (2) an amount determined by the board to | ||||||
16 | be equal to the employer's normal cost of the benefit, plus (3) | ||||||
17 | interest on items (1) and (2) at the actuarially assumed rate, | ||||||
18 | compounded annually, from the first date as a member after such | ||||||
19 | military service to the date of payment. | ||||||
20 | The total amount of creditable military service for any | ||||||
21 | member during his or her entire term of service shall not | ||||||
22 | exceed 5 years. | ||||||
23 | (c) A member may establish service credit for up to 2 years | ||||||
24 | of periods spent on authorized leave of absence from service | ||||||
25 | due to pregnancy or adoption by paying to the System (1) | ||||||
26 | employee contributions based upon the member's salary upon |
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1 | becoming a member under this Article, (2) an amount determined | ||||||
2 | by the board to be equal to the employer's normal cost of the | ||||||
3 | benefit, and (3) interest on items (1) and (2) at the | ||||||
4 | actuarially assumed rate from the date of first membership in | ||||||
5 | the System to the date of payment. | ||||||
6 | (40 ILCS 5/2-310 new)
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7 | Sec. 2-310. Retirement annuity; conditions for | ||||||
8 | eligibility; later entrants. A member may claim his or her | ||||||
9 | retirement annuity upon attainment of (1) the full (normal) | ||||||
10 | retirement age as provided in the federal Social Security Act | ||||||
11 | with at least 10 years of service credit or (2) age 62 with at | ||||||
12 | least 35 years of service credit. | ||||||
13 | A member may claim a reduced retirement annuity under | ||||||
14 | subsection (c) of Section 2-315 if he or she is at least 62 | ||||||
15 | years of age and has at least 10 years of service. | ||||||
16 | The annuity shall begin with the first full calendar month | ||||||
17 | following the date of withdrawal. | ||||||
18 | (40 ILCS 5/2-315 new)
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19 | Sec. 2-315. Retirement life annuity; amount; later | ||||||
20 | entrants. | ||||||
21 | (a) With respect to later entrants: | ||||||
22 | (1) "Final average salary" means the monthly salary | ||||||
23 | obtained by dividing the total salary of a participant | ||||||
24 | during the period of: (A) the 96 consecutive months of |
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1 | service within the last 120 months of service in which the | ||||||
2 | total salary was the highest or (B) the total period of | ||||||
3 | service, if less than 96 months, by the number of months of | ||||||
4 | service in such period; provided that for the purposes of a | ||||||
5 | retirement annuity the average salary for the last 12 | ||||||
6 | months of the 96 months shall not exceed the final average | ||||||
7 | salary by more than 25%. | ||||||
8 | In no event shall the monthly salary used to determine | ||||||
9 | final average salary exceed (i) the Social Security Covered | ||||||
10 | Wage Base for the given month of service or (ii) $12,500, | ||||||
11 | whichever is less; provided, however, that the $12,500 | ||||||
12 | maximum shall be adjusted annually after the effective date | ||||||
13 | of this amendatory Act of the 96th General Assembly, by (1) | ||||||
14 | 3% or (2) one-half of the percentage increase, if any, in | ||||||
15 | the Consumer Price Index for All Urban Consumers, whichever | ||||||
16 | is less. | ||||||
17 | The earnings limitations contained in this item (1) | ||||||
18 | apply to earnings under any other participating system | ||||||
19 | under the Retirement Systems Reciprocal Act that are | ||||||
20 | considered in calculating a proportional annuity under | ||||||
21 | this Article. | ||||||
22 | (2) "Salary" means: | ||||||
23 | (A) For members of the General Assembly, the total | ||||||
24 | salary paid to the member by the State for one year of | ||||||
25 | service, including the additional amounts, if any, | ||||||
26 | paid to the member as an officer, committee chair, or |
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1 | minority spokesperson pursuant to Section 1 of General | ||||||
2 | Assembly Compensation Act. "Salary" shall not include | ||||||
3 | any compensation or allowance for mileage, food, or | ||||||
4 | lodging. | ||||||
5 | (B) For all other members specified in Section | ||||||
6 | 2-105, the total salary paid to the member for one year | ||||||
7 | of service. "Salary" shall not include any | ||||||
8 | compensation or allowance for mileage, food, or | ||||||
9 | lodging. | ||||||
10 | However, in the event that federal tax law results in | ||||||
11 | any participant receiving imputed income, such imputed | ||||||
12 | income shall not be included in salary for the purposes of | ||||||
13 | this Article. | ||||||
14 | (b) The retirement life annuity shall be 2% of final | ||||||
15 | average salary for each year of service, but in no event shall | ||||||
16 | exceed 70% of final average salary. | ||||||
17 | (c) For a member retiring after attaining age 62 with less | ||||||
18 | than 35 years of service credit, the retirement life annuity | ||||||
19 | shall be reduced by one-half of 1% for each month that the | ||||||
20 | member's age is under the full (normal) retirement age as | ||||||
21 | provided in the federal Social Security Act. | ||||||
22 | (40 ILCS 5/2-320 new)
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23 | Sec. 2-320. Alternative forms of annuities for later | ||||||
24 | entrants. A participant may choose any of the following types | ||||||
25 | of annuities in lieu of receiving the full annuity provided in |
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1 | Section 2-315: | ||||||
2 | (1) Joint and 50% survivor annuity. Under this form of | ||||||
3 | payment, the participant receives a reduced monthly | ||||||
4 | payment for his or her lifetime with a payment equal to 50% | ||||||
5 | of the reduced amount payable to the participant paid to | ||||||
6 | the participant's designated beneficiary for the | ||||||
7 | beneficiary's lifetime if the beneficiary survives the | ||||||
8 | participant. | ||||||
9 | (2) Joint and 75% survivor annuity. Under this form of | ||||||
10 | payment, the participant receives a reduced monthly | ||||||
11 | payment for his or her lifetime with a payment equal to 75% | ||||||
12 | of the reduced amount payable to the participant paid to | ||||||
13 | the participant's designated beneficiary for the | ||||||
14 | beneficiary's lifetime if the beneficiary survives the | ||||||
15 | participant. | ||||||
16 | (3) Joint and 100% survivor annuity. Under this form of | ||||||
17 | payment, the participant receives a reduced monthly | ||||||
18 | payment for his or her lifetime with a payment equal to | ||||||
19 | 100% of the reduced amount payable to the participant paid | ||||||
20 | to the participant's designated beneficiary for the | ||||||
21 | beneficiary's lifetime if the beneficiary survives the | ||||||
22 | participant. | ||||||
23 | (4) Single life annuity with 60, 120, or 180 months of | ||||||
24 | guaranteed payments. Under this option, the participant | ||||||
25 | receives a reduced monthly payment for his or her lifetime. | ||||||
26 | If the participant dies before receiving at least the |
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1 | number of guaranteed monthly payments, then the | ||||||
2 | participant's beneficiary or estate receives the remaining | ||||||
3 | guaranteed number of monthly payments. | ||||||
4 | The Board must determine the participant's optional form of | ||||||
5 | annuity provided under this Section by taking into account the | ||||||
6 | appropriate actuarial assumptions, including without | ||||||
7 | limitation the participant's and beneficiary's age; applicable | ||||||
8 | mortality tables; and any other factors that the Board | ||||||
9 | determines to be relevant. For this purpose, the participant's | ||||||
10 | joint and survivor annuity should result in no significant | ||||||
11 | increase to the System's unfunded actuarial accrued liability | ||||||
12 | determined as of the most recent actuarial valuation compared | ||||||
13 | to the System's actuarial liability if the participant opted | ||||||
14 | for a retirement life annuity under Section 2-315, based on the | ||||||
15 | same assumptions and methods used to develop and report the | ||||||
16 | System's actuarial accrued liability and actuarial value of | ||||||
17 | assets under Statement No. 25 of Governmental Accounting | ||||||
18 | Standards Board or any subsequent applicable Statement. | ||||||
19 | (40 ILCS 5/2-325 new)
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20 | Sec. 2-325. Automatic annual increases for later entrants. | ||||||
21 | Notwithstanding any other provision of this Article, a person | ||||||
22 | receiving a retirement or survivor annuity under Section 2-315 | ||||||
23 | or 2-320 shall, on the first anniversary of retirement, but not | ||||||
24 | before attaining age 67, and annually thereafter, have his or | ||||||
25 | her annuity increased by (1) 3% or (2) one-half of the |
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1 | percentage increase, if any, in the Consumer Price Index for | ||||||
2 | All Urban Consumers measured from the July 1 two years prior to | ||||||
3 | the January 1 of the year during which the increase is being | ||||||
4 | granted to the June 30 preceding the year during which the | ||||||
5 | increase is being granted, whichever is less, of the originally | ||||||
6 | granted annuity. | ||||||
7 | (40 ILCS 5/2-330 new)
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8 | Sec. 2-330. Contributions by participants; later entrants. | ||||||
9 | (a) Each participant shall contribute 7% of each payment of | ||||||
10 | salary received by him or her for service as a member toward | ||||||
11 | the cost of his or her retirement annuity. In no event shall | ||||||
12 | contributions be deducted from salary in excess of (1) the | ||||||
13 | Social Security Covered Wage Base for the given calendar year | ||||||
14 | or (2) $150,000, whichever is less. | ||||||
15 | (b) Contributions shall be in the form of a deduction from | ||||||
16 | salary and shall be made notwithstanding that the net salary | ||||||
17 | paid to the member shall be reduced thereby below the minimum | ||||||
18 | prescribed by law or regulation. Each member is deemed to | ||||||
19 | consent and agree to the deductions from compensation provided | ||||||
20 | for in this Article. | ||||||
21 | (c) These contributions shall be picked up in the manner | ||||||
22 | provided in Section 2-126.1. | ||||||
23 | (40 ILCS 5/2-335 new)
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24 | Sec. 2-335. Refunds; later entrants. |
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1 | (a) A participant who ceases to be a member, other than an | ||||||
2 | annuitant, shall, upon written request, receive a refund of his | ||||||
3 | or her total contributions, plus interest at (1) 3% or (2) | ||||||
4 | one-half of the percentage increase, if any, in the Consumer | ||||||
5 | Price Index for All Urban Consumers measured from the July 1 | ||||||
6 | two years prior to the January 1 of the year during which the | ||||||
7 | interest is being credited to the June 30 preceding the year | ||||||
8 | during which the interest is being credited, whichever is less, | ||||||
9 | per year, not compounded. | ||||||
10 | (b) Upon re-entry into service as a member, a former | ||||||
11 | participant may reestablish any creditable service forfeited | ||||||
12 | by acceptance of a refund by paying to the System the full | ||||||
13 | amount refunded, plus interest at the actuarially assumed rate, | ||||||
14 | not compounded, from the date of payment of the refund to the | ||||||
15 | date of repayment. | ||||||
16 | (c) Participants covered by the provisions of this Section | ||||||
17 | shall be deemed later entrants only if the date of their | ||||||
18 | initial participation was on or after January 1, 2010. | ||||||
19 | (40 ILCS 5/2-340 new)
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20 | Sec. 2-340. Re-entry after retirement; later entrants. | ||||||
21 | (a) An annuitant who re-enters service as a member shall | ||||||
22 | become a participant on the date of re-entry, unless he or she | ||||||
23 | elects not to participate under Section 2-117, and retirement | ||||||
24 | annuity payments shall cease at that time. The participant | ||||||
25 | shall resume contributions to the system on the date of |
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1 | re-entry at the rates then in effect and shall begin to accrue | ||||||
2 | additional service credit. | ||||||
3 | (b) Upon subsequent retirement, the participant shall be | ||||||
4 | entitled to a retirement annuity consisting of: (1) the amount | ||||||
5 | of retirement annuity previously granted and terminated by | ||||||
6 | re-entry into service and (2) the amount of additional | ||||||
7 | retirement annuity earned during the additional service. | ||||||
8 | (c) In computing the retirement annuity under subsection | ||||||
9 | (b) of this Section, the time that the member was on retirement | ||||||
10 | shall not interrupt the continuity of service for the | ||||||
11 | computation of final average compensation and the additional | ||||||
12 | membership service shall be considered, together with service | ||||||
13 | rendered before the previous retirement, in establishing final | ||||||
14 | average compensation. | ||||||
15 | (d) Participants covered by the provisions of this Section | ||||||
16 | shall be deemed later entrants only if the date of their | ||||||
17 | initial participation was on or after January 1, 2010. | ||||||
18 | (40 ILCS 5/14-300 new)
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19 | Sec. 14-300. Provisions applicable to later entrants. | ||||||
20 | (a) The provisions of this Article following this Section | ||||||
21 | apply only to members who first become members on or after | ||||||
22 | January 1, 2010, who are referred to as "later entrants" or who | ||||||
23 | are otherwise considered "later entrants" in accordance with | ||||||
24 | the following Sections of this Article. | ||||||
25 | (b) Except as provided in subsection (c) of this Section, |
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1 | the Sections of this Article before this Section do not apply | ||||||
2 | to members who first become members on or after January 1, | ||||||
3 | 2010. | ||||||
4 | (c) The following Sections are also applicable to employees | ||||||
5 | who first become employees on or after January 1, 2010: | ||||||
6 | Sections 14-101, 14-102, 14-103, 14-103.01, 14-103.02, | ||||||
7 | 14-103.03, 14-103.04, 14-103.05, 14-103.06, 14-103.07, | ||||||
8 | 14-103.08, 14-103.09, 14-103.11, 14-103.13, 14-103.15, | ||||||
9 | 14-103.16, 14-103.17, 14-103.18, 14-103.19, 14-103.21, | ||||||
10 | 14-103.22, 14-103.23, 14-103.24, 14-103.25, 14-103.26, | ||||||
11 | 14-103.27, 14-103.28, 14-103.29, 14-103.32, 14-103.33, | ||||||
12 | 14-103.34, 14-103.35, 14-103.36, 14-103.37, 14-103.38, | ||||||
13 | 14-103.39, 14-104.4, 14-104.7, 14-121.1, 14-123, 14-123.1, | ||||||
14 | 14-124, 14-125, 14-125.1, 14-126, 14-127, 14-128, 14-129, | ||||||
15 | 14-131, 14-132, 14-132.2, and 14-133.1 and Sections 14-134 | ||||||
16 | through 14-152.2. | ||||||
17 | (d) To the extent that the Sections enumerated in | ||||||
18 | subsection (c) of this Section conflict with the Sections | ||||||
19 | following this Section, the Sections following this Section | ||||||
20 | shall control. | ||||||
21 | (e) To the extent that the applicable Sections are included | ||||||
22 | under subsection (c) of this Section, later entrants are | ||||||
23 | entitled to disability benefits under this Article. | ||||||
24 | (40 ILCS 5/14-305 new)
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25 | Sec. 14-305. Creditable service for later entrants. |
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1 | (a) Creditable service under this Article is subject to the | ||||||
2 | following conditions: | ||||||
3 | (1) A member may only establish creditable service for | ||||||
4 | his or her membership service, as defined in Section | ||||||
5 | 14-103.13. Except as otherwise provided in this Section, a | ||||||
6 | member may not establish creditable service for any other | ||||||
7 | service. | ||||||
8 | (2) A member may not convert any unused sick leave or | ||||||
9 | vacation into creditable service under this Article. | ||||||
10 | (b) A member may establish creditable service, without | ||||||
11 | making contributions, for periods of military service, as | ||||||
12 | defined in Section 14-103.16, provided that the person received | ||||||
13 | a discharge other than dishonorable, was a member within 6 | ||||||
14 | months prior to military service, and returned to service as a | ||||||
15 | member under this System within one year after discharge. | ||||||
16 | A member may purchase up to 2 years of military service not | ||||||
17 | immediately following service as a member under this System, by | ||||||
18 | paying to the System (1) employee contributions based on the | ||||||
19 | member's salary upon the first date as a member after the | ||||||
20 | military service, plus (2) an amount determined by the board to | ||||||
21 | be equal to the employer's normal cost of the benefit, plus (3) | ||||||
22 | interest on items (1) and (2) at the actuarially assumed rate, | ||||||
23 | compounded annually, from the first date as a member after such | ||||||
24 | military service to the date of payment. | ||||||
25 | The total amount of creditable military service for any | ||||||
26 | member during his or her entire term of service shall not |
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1 | exceed 5 years. | ||||||
2 | (c) A member may establish service credit for up to 2 years | ||||||
3 | of periods spent on authorized leave of absence from service | ||||||
4 | due to pregnancy or adoption by paying to the System (1) | ||||||
5 | employee contributions based upon the member's salary upon | ||||||
6 | becoming a member under this Article, (2) an amount determined | ||||||
7 | by the board to be equal to the employer's normal cost of the | ||||||
8 | benefit, and (3) interest on items (1) and (2) at the | ||||||
9 | actuarially assumed rate from the date of first membership in | ||||||
10 | the System to the date of payment. | ||||||
11 | (40 ILCS 5/14-310 new)
| ||||||
12 | Sec. 14-310. Retirement annuity; conditions for | ||||||
13 | eligibility; later entrants. A member may claim his or her | ||||||
14 | retirement annuity upon attainment of (1) the full (normal) | ||||||
15 | retirement age as provided in the federal Social Security Act | ||||||
16 | with at least 10 years of service credit or (2) age 62 with at | ||||||
17 | least 35 years of service credit. | ||||||
18 | A member may claim a reduced retirement annuity under | ||||||
19 | subsection (c) of Section 14-315 if he or she is at least 62 | ||||||
20 | years of age and has at least 10 years of service. | ||||||
21 | The annuity shall begin with the first full calendar month | ||||||
22 | following the date of withdrawal. | ||||||
23 | (40 ILCS 5/14-315 new)
| ||||||
24 | Sec. 14-315. Retirement life annuity; amount; later |
| |||||||
| |||||||
1 | entrants. | ||||||
2 | (a) With respect to later entrants: | ||||||
3 | (1) "Final average compensation" means the monthly | ||||||
4 | compensation obtained by dividing the total compensation | ||||||
5 | of an employee during the period of: (A) the 96 consecutive | ||||||
6 | months of service within the last 120 months of service in | ||||||
7 | which the total compensation was the highest or (B) the | ||||||
8 | total period of service, if less than 96 months, by the | ||||||
9 | number of months of service in such period; provided that | ||||||
10 | for the purposes of a retirement annuity the average | ||||||
11 | compensation for the last 12 months of the 96 months shall | ||||||
12 | not exceed the final average compensation by more than 25%. | ||||||
13 | In no event shall the monthly compensation used to | ||||||
14 | determined final average compensation exceed (i) the | ||||||
15 | Social Security Covered Wage Base for the given month of | ||||||
16 | service or (ii) $12,500, whichever is less; provided, | ||||||
17 | however, that the $12,500 maximum shall be adjusted | ||||||
18 | annually after the effective date of this amendatory Act of | ||||||
19 | the 96th General Assembly, by (1) 3% or (2) one-half of the | ||||||
20 | percentage increase, if any, in the Consumer Price Index | ||||||
21 | for All Urban Consumers, whichever is less. | ||||||
22 | (2) "Compensation" means a member's base compensation | ||||||
23 | for regularly scheduled services rendered for an employer, | ||||||
24 | but does not include bonuses, expense reimbursements, | ||||||
25 | taxable or non-taxable fringe benefits, imputed income, | ||||||
26 | lump-sum payments for cashouts of vacation, unused sick or |
| |||||||
| |||||||
1 | personal leave, severance pay, deferred compensation, or | ||||||
2 | any other similar amounts. | ||||||
3 | (b) The retirement life annuity shall be (1) 1.5% of final | ||||||
4 | average compensation for each year of service for covered | ||||||
5 | employees up to a maximum of 52.5% of final average | ||||||
6 | compensation or (2) 2% of final average compensation for each | ||||||
7 | year of service for noncovered employees up to a maximum of 70% | ||||||
8 | of final average compensation. | ||||||
9 | (c) For a member retiring after attaining age 62 with less | ||||||
10 | than 35 years of service credit, the retirement life annuity | ||||||
11 | shall be reduced by one-half of 1% for each month that the | ||||||
12 | member's age is under the full (normal) retirement age as | ||||||
13 | provided in the federal Social Security Act. | ||||||
14 | (40 ILCS 5/14-320 new)
| ||||||
15 | Sec. 14-320. Alternative forms of annuities for later | ||||||
16 | entrants. A member may choose any of the following types of | ||||||
17 | annuities in lieu of receiving the full annuity provided in | ||||||
18 | Section 14-315: | ||||||
19 | (1) Joint and 50% survivor annuity. Under this form of | ||||||
20 | payment, the member receives a reduced monthly payment for | ||||||
21 | his or her lifetime with a payment equal to 50% of the | ||||||
22 | reduced amount payable to the member paid to the member's | ||||||
23 | designated beneficiary for the beneficiary's lifetime if | ||||||
24 | the beneficiary survives the member. | ||||||
25 | (2) Joint and 75% survivor annuity. Under this form of |
| |||||||
| |||||||
1 | payment, the member receives a reduced monthly payment for | ||||||
2 | his or her lifetime with a payment equal to 75% of the | ||||||
3 | reduced amount payable to the member paid to the member's | ||||||
4 | designated beneficiary for the beneficiary's lifetime if | ||||||
5 | the beneficiary survives the member. | ||||||
6 | (3) Joint and 100% survivor annuity. Under this form of | ||||||
7 | payment, the member receives a reduced monthly payment for | ||||||
8 | his or her lifetime with a payment equal to 100% of the | ||||||
9 | reduced amount payable to the member paid to the member's | ||||||
10 | designated beneficiary for the beneficiary's lifetime if | ||||||
11 | the beneficiary survives the member. | ||||||
12 | (4) Single life annuity with 60, 120, or 180 months of | ||||||
13 | guaranteed payments. Under this option, the member | ||||||
14 | receives a reduced monthly payment for his or her lifetime. | ||||||
15 | If the member dies before receiving at least the number of | ||||||
16 | guaranteed monthly payments, then the member's beneficiary | ||||||
17 | or estate receives the remaining guaranteed number of | ||||||
18 | monthly payments. | ||||||
19 | The Board must determine the participant's optional form of | ||||||
20 | annuity provided under this Section by taking into account the | ||||||
21 | appropriate actuarial assumptions, including without | ||||||
22 | limitation the participant's and beneficiary's age; applicable | ||||||
23 | mortality tables; and any other factors that the Board | ||||||
24 | determines to be relevant. For this purpose, the participant's | ||||||
25 | joint and survivor annuity should result in no significant | ||||||
26 | increase to the System's unfunded actuarial accrued liability |
| |||||||
| |||||||
1 | determined as of the most recent actuarial valuation compared | ||||||
2 | to the System's actuarial liability if the participant opted | ||||||
3 | for a retirement life annuity under Section 14-315, based on | ||||||
4 | the same assumptions and methods used to develop and report the | ||||||
5 | System's actuarial accrued liability and actuarial value of | ||||||
6 | assets under Statement No. 25 of Governmental Accounting | ||||||
7 | Standards Board or any subsequent applicable Statement. | ||||||
8 | (40 ILCS 5/14-325 new)
| ||||||
9 | Sec. 14-325. Automatic annual increases for later | ||||||
10 | entrants. Notwithstanding any other provision of this Article, | ||||||
11 | a person receiving a retirement or survivor annuity under | ||||||
12 | Section 14-315 or 14-320 shall, on the first anniversary of | ||||||
13 | retirement, but not before attaining age 67, and annually | ||||||
14 | thereafter, have his or her annuity increased by (1) 3% or (2) | ||||||
15 | one-half of the percentage increase, if any, in the Consumer | ||||||
16 | Price Index for All Urban Consumers measured from the July 1 | ||||||
17 | two years prior to the January 1 of the year during which the | ||||||
18 | increase is being granted to the June 30 preceding the year | ||||||
19 | during which the increase is being granted, whichever is less, | ||||||
20 | of the originally granted annuity. | ||||||
21 | (40 ILCS 5/14-330 new)
| ||||||
22 | Sec. 14-330. Contributions by members; later entrants. | ||||||
23 | (a) Each employee shall contribute the following | ||||||
24 | percentage of each payment of salary received by him or her for |
| |||||||
| |||||||
1 | service as an employee toward the cost of his or her retirement | ||||||
2 | annuity: | ||||||
3 | (1) Covered employees, 3%. | ||||||
4 | (2) Noncovered employees, 7%. | ||||||
5 | (b) Contributions shall be in the form of a deduction from | ||||||
6 | compensation and shall be made notwithstanding that the net | ||||||
7 | compensation paid to the employee shall be reduced thereby | ||||||
8 | below the minimum prescribed by law or regulation. Each member | ||||||
9 | is deemed to consent and agree to the deductions from | ||||||
10 | compensation provided for in this Article. | ||||||
11 | (c) These contributions shall be picked up in the manner | ||||||
12 | provided in Section 14-133.1. | ||||||
13 | (d) In no event shall contributions be deducted from salary | ||||||
14 | in excess of (1) the Social Security Covered Wage Base for the | ||||||
15 | given calendar year or (2) $150,000, whichever is less. | ||||||
16 | (40 ILCS 5/14-335 new)
| ||||||
17 | Sec. 14-335. Refunds; later entrants. | ||||||
18 | (a) A member who ceases to be an employee, other than an | ||||||
19 | annuitant, shall, upon written request made at least 30 days | ||||||
20 | following withdrawal as an employee, receive a refund of his or | ||||||
21 | her total contributions, plus interest at (1) 3% or (2) | ||||||
22 | one-half of the percentage increase, if any, in the Consumer | ||||||
23 | Price Index for All Urban Consumers measured from the July 1 | ||||||
24 | two years prior to the January 1 of the year during which the | ||||||
25 | interest is being credited to the June 30 preceding the year |
| |||||||
| |||||||
1 | during which the interest is being credited, whichever is less, | ||||||
2 | per year, not compounded. | ||||||
3 | (b) Upon re-entry into service as a member and completion | ||||||
4 | of 2 years of creditable service, a former member may | ||||||
5 | reestablish any creditable service forfeited by acceptance of a | ||||||
6 | refund by paying to the System the full amount refunded, plus | ||||||
7 | interest at actuarially assumed rate, not compounded, from the | ||||||
8 | date of payment of the refund to the date of repayment. | ||||||
9 | (c) Members covered by the provisions of this Section shall | ||||||
10 | be deemed later entrants only if the date of their initial | ||||||
11 | membership was on or after January 1, 2010. | ||||||
12 | (40 ILCS 5/14-340 new)
| ||||||
13 | Sec. 14-340. Re-entry after retirement; later entrants. | ||||||
14 | (a) An annuitant who re-enters service as a member shall | ||||||
15 | become a member on the date of re-entry and retirement annuity | ||||||
16 | payments shall cease at that time. The employee shall resume | ||||||
17 | contributions to the system on the date of re-entry at the | ||||||
18 | rates then in effect and shall begin to accrue additional | ||||||
19 | service credit. | ||||||
20 | (b) Upon subsequent retirement, the employee shall be | ||||||
21 | entitled to a retirement annuity consisting of: (1) the amount | ||||||
22 | of retirement annuity previously granted and terminated by | ||||||
23 | re-entry into service and (2) the amount of additional | ||||||
24 | retirement annuity earned during the additional service. | ||||||
25 | (c) In computing the retirement annuity under subsection |
| |||||||
| |||||||
1 | (b) of this Section, the time that the member was on retirement | ||||||
2 | shall not interrupt the continuity of service for the | ||||||
3 | computation of final average compensation and the additional | ||||||
4 | membership service shall be considered, together with service | ||||||
5 | rendered before the previous retirement, in establishing final | ||||||
6 | average compensation. | ||||||
7 | (d) Members covered by the provisions of this Section shall | ||||||
8 | be deemed later entrants only if the date of their initial | ||||||
9 | membership was on or after January 1, 2010. | ||||||
10 | (40 ILCS 5/15-300 new)
| ||||||
11 | Sec. 15-300. Provisions applicable to later entrants. | ||||||
12 | (a) The provisions of this Article following this Section | ||||||
13 | apply only to employees who first become employees on or after | ||||||
14 | January 1, 2010, who are referred to as "later entrants" or who | ||||||
15 | are otherwise considered "later entrants" in accordance with | ||||||
16 | the following Sections of this Article. | ||||||
17 | (b) Except as provided in subsection (c) of this Section, | ||||||
18 | the Sections of this Article before this Section do not apply | ||||||
19 | to employees who first become employees on or after January 1, | ||||||
20 | 2010. | ||||||
21 | (c) The following Sections are also applicable to employees | ||||||
22 | who first become employees on or after January 1, 2010: | ||||||
23 | Sections 15-101, 15-102, 15-103, 15-103.2, 15-103.3, 15-104, | ||||||
24 | 15-105, 15-106, 15-107, 15-108, 15-109, 15-110, 15-111, | ||||||
25 | 15-113, 15-113.1, 15-118, 15-119, 15-120, 15-124, 15-126, |
| |||||||
| |||||||
1 | 15-126.1, 15-127, 15-129, 15-130, 15-132.2, 15-133, 15-134, | ||||||
2 | 15-134.5, 15-136.4, 15-150, 15-151, 15-152, 15-153, 15-153.1, | ||||||
3 | 15-153.2, 15-153.3, 15-155, 15-156, 15-157.1, 15-158.2, | ||||||
4 | 15-158.3, and 15-158.4 and Sections 15-159 through 15-198. | ||||||
5 | (d) To the extent that the Sections enumerated in | ||||||
6 | subsection (c) of this Section conflict with the Sections | ||||||
7 | following this Section, the Sections following this Section | ||||||
8 | shall control. | ||||||
9 | (e) To the extent that the applicable Sections are included | ||||||
10 | under subsection (c) of this Section, later entrants are | ||||||
11 | entitled to disability benefits under this Article. | ||||||
12 | (40 ILCS 5/15-305 new)
| ||||||
13 | Sec. 15-305. Creditable service for later entrants. | ||||||
14 | (a) Creditable service under this Article is subject to the | ||||||
15 | following conditions: | ||||||
16 | (1) A participant may only establish creditable | ||||||
17 | service for his or her service for employment with an | ||||||
18 | employer, as defined in Section 15-106. Except as otherwise | ||||||
19 | provided in this Section, a participant may not establish | ||||||
20 | creditable service for any other service. | ||||||
21 | (2) A participant may not convert any unused sick leave | ||||||
22 | or vacation into creditable service under this Article. | ||||||
23 | (3) Creditable service shall not include periods | ||||||
24 | during which a person was employed less than one-half time | ||||||
25 | with an employer, as defined in Section 15-106. |
| |||||||
| |||||||
1 | (b) A participant may establish creditable service, | ||||||
2 | without making contributions, for periods of military service, | ||||||
3 | provided that the person received a discharge other than | ||||||
4 | dishonorable, was a participant within 6 months prior to | ||||||
5 | military service, and returned to service as a participant | ||||||
6 | under this System within one year after discharge. | ||||||
7 | A participant may purchase up to 2 years of military | ||||||
8 | service not immediately following service as a participant | ||||||
9 | under this System, by paying to the System (1) employee | ||||||
10 | contributions based on the participant's salary upon the first | ||||||
11 | date as a participant after the military service, plus (2) an | ||||||
12 | amount determined by the board to be equal to the employer's | ||||||
13 | normal cost of the benefit, plus (3) interest on items (1) and | ||||||
14 | (2) at the actuarially assumed rate, compounded annually, from | ||||||
15 | the first date as a participant after such military service to | ||||||
16 | the date of payment. | ||||||
17 | The total amount of creditable military service for any | ||||||
18 | participant during his or her entire term of service shall not | ||||||
19 | exceed 5 years. | ||||||
20 | For the purposes of this subsection (b), "military service" | ||||||
21 | means periods during which a person served in the armed forces | ||||||
22 | of the United States for which the person received a discharge | ||||||
23 | other than dishonorable. | ||||||
24 | (c) A participant may establish service credit for up to 2 | ||||||
25 | years of periods spent on authorized leave of absence from | ||||||
26 | service due to pregnancy or adoption by paying to the System |
| |||||||
| |||||||
1 | (1) employee contributions based upon the participant's salary | ||||||
2 | upon becoming a participant under this Article, (2) an amount | ||||||
3 | determined by the board to be equal to the employer's normal | ||||||
4 | cost of the benefit, and (3) interest on items (1) and (2) at | ||||||
5 | the actuarially assumed rate from the date of first | ||||||
6 | participation in the System to the date of payment. | ||||||
7 | (40 ILCS 5/15-310 new)
| ||||||
8 | Sec. 15-310. Retirement annuity; conditions for | ||||||
9 | eligibility; later entrants. A participant may claim his or her | ||||||
10 | retirement annuity upon attainment of (1) the full (normal) | ||||||
11 | retirement age as provided in the federal Social Security Act | ||||||
12 | with at least 10 years of service credit or (2) age 62 with at | ||||||
13 | least 35 years of service credit. If the participant who has | ||||||
14 | not yet claimed his or her annuity is not an employee of an | ||||||
15 | employer participating in this System or in a participating | ||||||
16 | System as defined in Article 20 of this Code on April 1 of the | ||||||
17 | calendar year next following the calendar year in which the | ||||||
18 | participant attains age 70 1/2, then the annuity payment period | ||||||
19 | shall begin on that date. | ||||||
20 | A participant may claim a reduced retirement annuity under | ||||||
21 | subsection (c) of Section 15-315 if he or she is at least 62 | ||||||
22 | years of age and has at least 10 years of service. | ||||||
23 | The annuity shall begin with the first full calendar month | ||||||
24 | following the date of withdrawal. |
| |||||||
| |||||||
1 | (40 ILCS 5/15-315 new)
| ||||||
2 | Sec. 15-315. Retirement life annuity; amount; employer | ||||||
3 | contribution; later entrants. | ||||||
4 | (a) With respect to later entrants: | ||||||
5 | (1) "Final average rate of earnings" means the monthly | ||||||
6 | rate of earnings obtained by dividing the total rate of | ||||||
7 | earnings of an employee during the period of: (A) the 96 | ||||||
8 | consecutive months of service within the last 120 months of | ||||||
9 | service in which the total rate of earnings was the highest | ||||||
10 | or (B) the total period of service, if less than 96 months, | ||||||
11 | by the number of months of service in such period; provided | ||||||
12 | that for the purposes of a retirement annuity the average | ||||||
13 | rate of earnings for the last 12 months of the 96 months | ||||||
14 | shall not exceed the final average rate of earnings by more | ||||||
15 | than 25%. | ||||||
16 | In no event shall the monthly rate of earnings used to | ||||||
17 | determined final average rate of earnings exceed (i) the | ||||||
18 | Social Security Covered Wage Base for the given month of | ||||||
19 | service or (ii) $12,500, whichever is less; provided, | ||||||
20 | however, that the $12,500 maximum shall be adjusted | ||||||
21 | annually after the effective date of this amendatory Act of | ||||||
22 | the 96th General Assembly, by (1) 3% or (2) one-half of the | ||||||
23 | percentage increase, if any, in the Consumer Price Index | ||||||
24 | for All Urban Consumers, whichever is less. | ||||||
25 | (2) "Earnings" means a participant's base earnings and | ||||||
26 | does not include any overtime or bonuses. |
| |||||||
| |||||||
1 | (b) The retirement life annuity shall be 2% of final | ||||||
2 | average rate of earnings for each year of service, but in no | ||||||
3 | event shall exceed 70% of final average rate of earnings. | ||||||
4 | (c) For a participant retiring after attaining age 62 with | ||||||
5 | less than 35 years of service credit, the retirement life | ||||||
6 | annuity shall be reduced by one-half of 1% for each month that | ||||||
7 | the participant's age is under the full (normal) retirement age | ||||||
8 | as provided in the federal Social Security Act. | ||||||
9 | (40 ILCS 5/15-320 new)
| ||||||
10 | Sec. 15-320. Alternative forms of annuities for later | ||||||
11 | entrants. | ||||||
12 | (a) A participant may choose any of the following types of | ||||||
13 | annuities in lieu of receiving the full annuity provided in | ||||||
14 | Section 15-315: | ||||||
15 | (1) Joint and 50% survivor annuity. Under this form of | ||||||
16 | payment, the participant receives a reduced monthly | ||||||
17 | payment for his or her lifetime with a payment equal to 50% | ||||||
18 | of the reduced amount payable to the participant paid to | ||||||
19 | the participant's designated beneficiary for the | ||||||
20 | beneficiary's lifetime if the beneficiary survives the | ||||||
21 | participant. | ||||||
22 | (2) Joint and 75% survivor annuity. Under this form of | ||||||
23 | payment, the participant receives a reduced monthly | ||||||
24 | payment for his or her lifetime with a payment equal to 75% | ||||||
25 | of the reduced amount payable to the participant paid to |
| |||||||
| |||||||
1 | the participant's designated beneficiary for the | ||||||
2 | beneficiary's lifetime if the beneficiary survives the | ||||||
3 | participant. | ||||||
4 | (3) Joint and 100% survivor annuity. Under this form of | ||||||
5 | payment, the participant receives a reduced monthly | ||||||
6 | payment for his or her lifetime with a payment equal to | ||||||
7 | 100% of the reduced amount payable to the participant paid | ||||||
8 | to the participant's designated beneficiary for the | ||||||
9 | beneficiary's lifetime if the beneficiary survives the | ||||||
10 | participant. | ||||||
11 | (4) Single life annuity with 60, 120, or 180 months of | ||||||
12 | guaranteed payments. Under this option, the participant | ||||||
13 | receives a reduced monthly payment for his or her lifetime. | ||||||
14 | If the participant dies before receiving at least the | ||||||
15 | number of guaranteed monthly payments, then the | ||||||
16 | participant's beneficiary or estate receives the remaining | ||||||
17 | guaranteed number of monthly payments. | ||||||
18 | (b) In lieu of the annuities under Section 15-315 and | ||||||
19 | subsection (a) of this Section, a participant may choose the | ||||||
20 | portable benefit package under Section 15-136.4 or the | ||||||
21 | self-managed plan under Section 15-158.2. | ||||||
22 | (c) The Board must determine the participant's optional | ||||||
23 | form of annuity provided under this Section by taking into | ||||||
24 | account the appropriate actuarial assumptions, including | ||||||
25 | without limitation the participant's and beneficiary's age; | ||||||
26 | applicable mortality tables; and any other factors that the |
| |||||||
| |||||||
1 | Board determines to be relevant. For this purpose, the | ||||||
2 | participant's joint and survivor annuity should result in no | ||||||
3 | significant increase to the System's unfunded actuarial | ||||||
4 | accrued liability determined as of the most recent actuarial | ||||||
5 | valuation compared to the System's actuarial liability if the | ||||||
6 | participant opted for a retirement life annuity under Section | ||||||
7 | 15-315, based on the same assumptions and methods used to | ||||||
8 | develop and report the System's actuarial accrued liability and | ||||||
9 | actuarial value of assets under Statement No. 25 of | ||||||
10 | Governmental Accounting Standards Board or any subsequent | ||||||
11 | applicable Statement. | ||||||
12 | (40 ILCS 5/15-325 new)
| ||||||
13 | Sec. 15-325. Automatic annual increases for later | ||||||
14 | entrants. Notwithstanding any other provision of this Article, | ||||||
15 | a person receiving a retirement or survivor annuity under | ||||||
16 | Section 15-315 or 15-320 shall, on the first anniversary of | ||||||
17 | retirement, but not before attaining age 67, and annually | ||||||
18 | thereafter, have his or her annuity increased by (1) 3% or (2) | ||||||
19 | one-half of the percentage increase, if any, in the Consumer | ||||||
20 | Price Index for All Urban Consumers measured from the July 1 | ||||||
21 | two years prior to the January 1 of the year during which the | ||||||
22 | increase is being granted to the June 30 preceding the year | ||||||
23 | during which the increase is being granted, whichever is less, | ||||||
24 | of the originally granted annuity. |
| |||||||
| |||||||
1 | (40 ILCS 5/15-330 new)
| ||||||
2 | Sec. 15-330. Contributions by participants; later | ||||||
3 | entrants. | ||||||
4 | (a) Each employee shall contribute 7% of each payment of | ||||||
5 | salary received by him or her for service as an employee toward | ||||||
6 | the cost of his or her retirement annuity. | ||||||
7 | (b) Contributions shall be in the form of a deduction from | ||||||
8 | earnings and shall be made notwithstanding that the net | ||||||
9 | earnings paid to the employee shall be reduced thereby below | ||||||
10 | the minimum prescribed by law or regulation. Each participant | ||||||
11 | is deemed to consent and agree to the deductions from earnings | ||||||
12 | provided for in this Article. | ||||||
13 | (c) These contributions shall be picked up in the manner | ||||||
14 | provided in Section 15-157.1. | ||||||
15 | (d) In no event shall contributions be deducted from salary | ||||||
16 | in excess of (1) the Social Security Covered Wage Base for the | ||||||
17 | given calendar year or (2) $150,000, whichever is less. | ||||||
18 | (40 ILCS 5/15-335 new)
| ||||||
19 | Sec. 15-335. Refunds; later entrants. | ||||||
20 | (a) A participant who ceases to be an employee, other than | ||||||
21 | an annuitant, shall, upon written request made at least 120 | ||||||
22 | days following withdrawal as a member, receive a refund of his | ||||||
23 | or her total contributions, plus interest at (1) 3% or (2) | ||||||
24 | one-half of the percentage increase, if any, in the Consumer | ||||||
25 | Price Index for All Urban Consumers measured from the July 1 |
| |||||||
| |||||||
1 | two years prior to the January 1 of the year during which the | ||||||
2 | interest is being credited to the June 30 preceding the year | ||||||
3 | during which the interest is being credited, whichever is less, | ||||||
4 | per year, not compounded, except that not more than one such | ||||||
5 | refund application may be made during any academic year. | ||||||
6 | (b) Upon re-entry into service as an employee and | ||||||
7 | completion of 2 years of creditable service, a former | ||||||
8 | participant may reestablish any creditable service forfeited | ||||||
9 | by acceptance of a refund by paying to the System the full | ||||||
10 | amount refunded, plus interest at the actuarially assumed rate, | ||||||
11 | not compounded, from the date of payment of the refund to the | ||||||
12 | date of repayment. | ||||||
13 | (c) Participants covered by the provisions of this Section | ||||||
14 | shall be deemed later entrants only if the date of their | ||||||
15 | initial participation was on or after January 1, 2010. | ||||||
16 | (40 ILCS 5/15-340 new)
| ||||||
17 | Sec. 15-340. Re-entry after retirement; later entrants. | ||||||
18 | (a) An annuitant who re-enters service as an employee shall | ||||||
19 | become a participant on the date of re-entry and retirement | ||||||
20 | annuity payments shall cease at that time. The employee shall | ||||||
21 | resume contributions to the system on the date of re-entry at | ||||||
22 | the rates then in effect and shall begin to accrue additional | ||||||
23 | service credit. | ||||||
24 | (b) Upon subsequent retirement, the employee shall be | ||||||
25 | entitled to a retirement annuity consisting of: (1) the amount |
| |||||||
| |||||||
1 | of retirement annuity previously granted and terminated by | ||||||
2 | re-entry into service and (2) the amount of additional | ||||||
3 | retirement annuity earned during the additional service. | ||||||
4 | (c) In computing the retirement annuity under subsection | ||||||
5 | (b) of this Section, the time that the employee was on | ||||||
6 | retirement shall not interrupt the continuity of service for | ||||||
7 | the computation of final average rate of earnings and the | ||||||
8 | additional service shall be considered, together with service | ||||||
9 | rendered before the previous retirement, in establishing final | ||||||
10 | average rate of earnings. | ||||||
11 | (d) Participants covered by the provisions of this Section | ||||||
12 | shall be deemed later entrants only if the date of their | ||||||
13 | initial participation was on or after January 1, 2010. | ||||||
14 | (40 ILCS 5/16-300 new)
| ||||||
15 | Sec. 16-300. Provisions applicable to later entrants. | ||||||
16 | (a) The provisions of this Article following this Section | ||||||
17 | apply only to teachers who first become teachers on or after | ||||||
18 | January 1, 2010, who are referred to as "later entrants" or who | ||||||
19 | are otherwise considered "later entrants" in accordance with | ||||||
20 | the following Sections of this Article.. | ||||||
21 | (b) Except as provided in subsection (c) of this Section, | ||||||
22 | the Sections of this Article before this Section do not apply | ||||||
23 | to teachers who first become teachers on or after January 1, | ||||||
24 | 2010. | ||||||
25 | (c) The following Sections are also applicable to teachers |
| |||||||
| |||||||
1 | who first become teachers on or after January 1, 2010: Sections | ||||||
2 | 16-101, 16-102, 16-103, 16-104, 16-105, 16-106, 16-106.1, | ||||||
3 | 16-106.2, 16-106.3, 16-107, 16-109, 16-110, 16-111.1, 16-113, | ||||||
4 | 16-114, 16-118, 16-121, 16-122, 16-122.1, 16-123, 16-130, | ||||||
5 | 16-142.3, 16-149, 16-149.1, 16-149.2, 16-149.3, 16-149.4, | ||||||
6 | 16-149.5, 16-149.6, 16-150.1, and 16-152.1 and Sections | ||||||
7 | 16-153.5 through 16-203. | ||||||
8 | (d) To the extent that the Sections enumerated in | ||||||
9 | subsection (c) of this Section conflict with the Sections | ||||||
10 | following this Section, the Sections following this Section | ||||||
11 | shall control. | ||||||
12 | (e) To the extent that the applicable Sections are included | ||||||
13 | under subsection (c) of this Section, later entrants are | ||||||
14 | entitled to disability benefits under this Article. | ||||||
15 | (40 ILCS 5/16-305 new)
| ||||||
16 | Sec. 16-305. Creditable service for later entrants. | ||||||
17 | (a) Creditable service under this Article is subject to the | ||||||
18 | following conditions: | ||||||
19 | (1) A member may only establish creditable service for | ||||||
20 | his or her service for employment as a teacher, as defined | ||||||
21 | in Section 16-106. Except as otherwise provided in this | ||||||
22 | Section, a member may not establish creditable service for | ||||||
23 | any other service. | ||||||
24 | (2) A member may not convert any unused sick leave or | ||||||
25 | vacation into creditable service under this Article. |
| |||||||
| |||||||
1 | (b) A member may establish creditable service, without | ||||||
2 | making contributions, for periods of military service, | ||||||
3 | provided that the person received a discharge other than | ||||||
4 | dishonorable, was a member within 6 months prior to military | ||||||
5 | service, and returned to service as a member under this System | ||||||
6 | within one year after discharge. | ||||||
7 | A member may purchase up to 2 years of military service not | ||||||
8 | immediately following service as a member under this System, by | ||||||
9 | paying to the System (1) employee contributions based on the | ||||||
10 | member's salary upon the first date as a member after the | ||||||
11 | military service, plus (2) an amount determined by the board to | ||||||
12 | be equal to the employer's normal cost of the benefit, plus (3) | ||||||
13 | interest on items (1) and (2) at the actuarially assumed rate, | ||||||
14 | compounded annually, from the first date as a member after such | ||||||
15 | military service to the date of payment. | ||||||
16 | The total amount of creditable military service for any | ||||||
17 | member during his or her entire term of service shall not | ||||||
18 | exceed 5 years. | ||||||
19 | For the purposes of this subsection (b), "military service" | ||||||
20 | means periods a person spent in active service with the | ||||||
21 | military forces of the United States for which the person | ||||||
22 | received a discharge other than dishonorable. | ||||||
23 | (c) A member may establish service credit for up to 2 years | ||||||
24 | of periods spent on authorized leave of absence from service | ||||||
25 | due to pregnancy or adoption by paying to the System (1) | ||||||
26 | employee contributions based upon the member's salary upon |
| |||||||
| |||||||
1 | becoming a member under this Article, (2) an amount determined | ||||||
2 | by the board to be equal to the employer's normal cost of the | ||||||
3 | benefit, and (3) interest on items (1) and (2) at the | ||||||
4 | actuarially assumed rate from the date of first membership in | ||||||
5 | the System to the date of payment. | ||||||
6 | (40 ILCS 5/16-310 new)
| ||||||
7 | Sec. 16-310. Retirement annuity; conditions for | ||||||
8 | eligibility; later entrants. A member may claim his or her | ||||||
9 | retirement annuity upon attainment of (1) the full (normal) | ||||||
10 | retirement age as provided in the federal Social Security Act | ||||||
11 | with at least 10 years of service credit or (2) age 62 with at | ||||||
12 | least 35 years of service credit. | ||||||
13 | A member may claim a reduced retirement annuity under | ||||||
14 | subsection (c) of Section 16-315 if he or she is at least 62 | ||||||
15 | years of age and has at least 10 years of service. | ||||||
16 | The annuity shall begin with the first full calendar month | ||||||
17 | following the date of withdrawal. | ||||||
18 | (40 ILCS 5/16-315 new)
| ||||||
19 | Sec. 16-315. Retirement life annuity; amount; employer | ||||||
20 | contribution; later entrants. | ||||||
21 | (a) With respect to later entrants: | ||||||
22 | (1) "Final average salary" means the monthly salary | ||||||
23 | obtained by dividing the total salary of a member during | ||||||
24 | the period of: (A) the 8 years of service within the last |
| |||||||
| |||||||
1 | 10 years of service in which the total salary was the | ||||||
2 | highest or (B) the total period of service, if less than 8 | ||||||
3 | years, by the number of months of service in such period; | ||||||
4 | provided that for the purposes of a retirement annuity the | ||||||
5 | average salary for the last year of the 8 years shall not | ||||||
6 | exceed the final average salary by more than 25%. | ||||||
7 | In no event shall the monthly salary used to determine | ||||||
8 | final average salary exceed (i) the Social Security Covered | ||||||
9 | Wage Base for the given month of service or (ii) $12,500, | ||||||
10 | whichever is less; provided, however, that the $12,500 | ||||||
11 | maximum shall be adjusted annually after the effective date | ||||||
12 | of this amendatory Act of the 96th General Assembly, by (1) | ||||||
13 | 3% or (2) one-half of the percentage increase, if any, in | ||||||
14 | the Consumer Price Index for All Urban Consumers, whichever | ||||||
15 | is less. | ||||||
16 | (2) "Salary" means a member's base salary and does not | ||||||
17 | include any overtime or bonuses. | ||||||
18 | (b) The retirement life annuity shall be 2% of final | ||||||
19 | average salary for each year of service, but in no event shall | ||||||
20 | exceed 70% of final average salary. | ||||||
21 | (c) For a member retiring after attaining age 62 with less | ||||||
22 | than 35 years of service credit, the retirement life annuity | ||||||
23 | shall be reduced by one-half of 1% for each month that the | ||||||
24 | member's age is under the full (normal) retirement age as | ||||||
25 | provided in the federal Social Security Act. |
| |||||||
| |||||||
1 | (40 ILCS 5/16-320 new)
| ||||||
2 | Sec. 16-320. Alternative forms of annuities for later | ||||||
3 | entrants. A member may choose any of the following types of | ||||||
4 | annuities in lieu of receiving the full annuity provided in | ||||||
5 | Section 16-315: | ||||||
6 | (1) Joint and 50% survivor annuity. Under this form of | ||||||
7 | payment, the member receives a reduced monthly payment for | ||||||
8 | his or her lifetime with a payment equal to 50% of the | ||||||
9 | reduced amount payable to the member paid to the member's | ||||||
10 | designated beneficiary for the beneficiary's lifetime if | ||||||
11 | the beneficiary survives the member. | ||||||
12 | (2) Joint and 75% survivor annuity. Under this form of | ||||||
13 | payment, the member receives a reduced monthly payment for | ||||||
14 | his or her lifetime with a payment equal to 75% of the | ||||||
15 | reduced amount payable to the member paid to the member's | ||||||
16 | designated beneficiary for the beneficiary's lifetime if | ||||||
17 | the beneficiary survives the member. | ||||||
18 | (3) Joint and 100% survivor annuity. Under this form of | ||||||
19 | payment, the member receives a reduced monthly payment for | ||||||
20 | his or her lifetime with a payment equal to 100% of the | ||||||
21 | reduced amount payable to the member paid to the member's | ||||||
22 | designated beneficiary for the beneficiary's lifetime if | ||||||
23 | the beneficiary survives the member. | ||||||
24 | (4) Single life annuity with 60, 120, or 180 months of | ||||||
25 | guaranteed payments. Under this option, the member | ||||||
26 | receives a reduced monthly payment for his or her lifetime. |
| |||||||
| |||||||
1 | If the member dies before receiving at least the number of | ||||||
2 | guaranteed monthly payments, then the member's beneficiary | ||||||
3 | or estate receives the remaining guaranteed number of | ||||||
4 | monthly payments. | ||||||
5 | The Board must determine the participant's optional form of | ||||||
6 | annuity provided under this Section by taking into account the | ||||||
7 | appropriate actuarial assumptions, including without | ||||||
8 | limitation the participant's and beneficiary's age and | ||||||
9 | applicable mortality tables. For this purpose, the | ||||||
10 | participant's joint and survivor annuity should result in no | ||||||
11 | significant increase to the System's unfunded actuarial | ||||||
12 | accrued liability determined as of the most recent actuarial | ||||||
13 | valuation compared to the System's actuarial liability if the | ||||||
14 | participant opted for a retirement life annuity under Section | ||||||
15 | 16-315, based on the same assumptions and methods used to | ||||||
16 | develop and report the System's actuarial accrued liability and | ||||||
17 | actuarial value of assets under Statement No. 25 of | ||||||
18 | Governmental Accounting Standards Board or any subsequent | ||||||
19 | applicable Statement. | ||||||
20 | (40 ILCS 5/16-325 new)
| ||||||
21 | Sec. 16-325. Automatic annual increases for later | ||||||
22 | entrants. Notwithstanding any other provision of this Article, | ||||||
23 | a person receiving a retirement or survivor annuity under | ||||||
24 | Section 16-315 or 16-320 shall, on the first anniversary of | ||||||
25 | retirement, but not before attaining age 67, and annually |
| |||||||
| |||||||
1 | thereafter, have his or her annuity increased by (1) 3% or (2) | ||||||
2 | one-half of the percentage increase, if any, in the Consumer | ||||||
3 | Price Index for All Urban Consumers measured from the July 1 | ||||||
4 | two years prior to the January 1 of the year during which the | ||||||
5 | increase is being granted to the June 30 preceding the year | ||||||
6 | during which the increase is being granted, whichever is less, | ||||||
7 | of the originally granted annuity. | ||||||
8 | (40 ILCS 5/16-330 new)
| ||||||
9 | Sec. 16-330. Contributions by teachers; later entrants. | ||||||
10 | (a) Each teacher shall contribute 7% of each payment of | ||||||
11 | salary received by him or her for service as a teacher toward | ||||||
12 | the cost of his or her retirement annuity. | ||||||
13 | (b) Contributions shall be in the form of a deduction from | ||||||
14 | salary and shall be made notwithstanding that the net salary | ||||||
15 | paid to the teacher shall be reduced thereby below the minimum | ||||||
16 | prescribed by law or regulation. Each member is deemed to | ||||||
17 | consent and agree to the deductions from salary provided for in | ||||||
18 | this Article. | ||||||
19 | (c) These contributions shall be picked up in the manner | ||||||
20 | provided in Section 16-152.1. | ||||||
21 | (d) In no event shall contributions be deducted from salary | ||||||
22 | in excess of (1) the Social Security Covered Wage Base for the | ||||||
23 | given calendar year or (2) $150,000, whichever is less. | ||||||
24 | (40 ILCS 5/16-335 new)
|
| |||||||
| |||||||
1 | Sec. 16-335. Refunds; later entrants. | ||||||
2 | (a) A member who ceases to be a teacher, other than an | ||||||
3 | annuitant, shall, upon written request made at least 4 months | ||||||
4 | after ceasing to teach, receive a refund of his or her total | ||||||
5 | contributions, plus interest at (1) 3% or (2) one-half of the | ||||||
6 | percentage increase, if any, in the Consumer Price Index for | ||||||
7 | All Urban Consumers measured from the July 1 two years prior to | ||||||
8 | the January 1 of the year during which the interest is being | ||||||
9 | credited to the June 30 preceding the year during which the | ||||||
10 | interest is being credited, whichever is less, per year, not | ||||||
11 | compounded. | ||||||
12 | (b) Upon re-entry into service as a teacher and completion | ||||||
13 | of one year of creditable service, a former member may | ||||||
14 | reestablish any creditable service forfeited by acceptance of a | ||||||
15 | refund by paying to the System the full amount refunded, plus | ||||||
16 | interest at the actuarially assumed rate, not compounded, from | ||||||
17 | the date of payment of the refund to the date of repayment. | ||||||
18 | (c) Participants covered by the provisions of this Section | ||||||
19 | shall be deemed later entrants only if the date of their | ||||||
20 | initial participation was on or after January 1, 2010. | ||||||
21 | (40 ILCS 5/16-340 new)
| ||||||
22 | Sec. 16-340. Re-entry after retirement; later entrants. | ||||||
23 | (a) An annuitant who re-enters service as a teacher shall | ||||||
24 | become a member on the date of re-entry and retirement annuity | ||||||
25 | payments shall cease at that time. The teacher shall resume |
| |||||||
| |||||||
1 | contributions to the system on the date of re-entry at the | ||||||
2 | rates then in effect and shall begin to accrue additional | ||||||
3 | service credit. | ||||||
4 | (b) Upon subsequent retirement, the teacher shall be | ||||||
5 | entitled to a retirement annuity consisting of: (1) the amount | ||||||
6 | of retirement annuity previously granted and terminated by | ||||||
7 | re-entry into service and (2) the amount of additional | ||||||
8 | retirement annuity earned during the additional service. | ||||||
9 | (c) In computing the retirement annuity under subsection | ||||||
10 | (b) of this Section, the time that the teacher was on | ||||||
11 | retirement shall not interrupt the continuity of service for | ||||||
12 | the computation of final average salary and the additional | ||||||
13 | service shall be considered, together with service rendered | ||||||
14 | before the previous retirement, in establishing final average | ||||||
15 | salary. | ||||||
16 | (d) Participants covered by the provisions of this Section | ||||||
17 | shall be deemed later entrants only if the date of their | ||||||
18 | initial participation was on or after January 1, 2010. | ||||||
19 | (40 ILCS 5/18-300 new)
| ||||||
20 | Sec. 18-300. Provisions applicable to later entrants. | ||||||
21 | (a) The provisions of this Article following this Section | ||||||
22 | apply only to judges who first become judges on or after | ||||||
23 | January 1, 2010, who are referred to as "later entrants" or who | ||||||
24 | are otherwise considered "later entrants" in accordance with | ||||||
25 | the following Sections of this Article. |
| |||||||
| |||||||
1 | (b) Except as provided in subsection (c) of this Section, | ||||||
2 | the Sections of this Article before this Section do not apply | ||||||
3 | to judges who first become judges on or after January 1, 2010. | ||||||
4 | (c) The following Sections are also applicable to judges | ||||||
5 | who first become judges on or after January 1, 2010: Sections | ||||||
6 | 18-101, 18-102, 18-103, 18-104, 18-105, 18-106, 18-107, | ||||||
7 | 18-108, 18-109, 18-110, 18-111, 18-112, 18-112.5, 18-113, | ||||||
8 | 18-114, 18-115, 18-116, 18-118, 18-119, 18-120, 18-120.1, | ||||||
9 | 18-121, 18-126, 18-126.1, 18-127, 18-128.2, 18-128.3, 18-131, | ||||||
10 | and 18-132 and Sections 18-133.1 through 18-169. | ||||||
11 | (d) To the extent that the Sections enumerated in | ||||||
12 | subsection (c) of this Section conflict with the Sections | ||||||
13 | following this Section, the Sections following this Section | ||||||
14 | shall control. | ||||||
15 | (e) To the extent that the applicable Sections are included | ||||||
16 | under subsection (c) of this Section, later entrants are | ||||||
17 | entitled to disability benefits under this Article. | ||||||
18 | (40 ILCS 5/18-305 new)
| ||||||
19 | Sec. 18-305. Creditable service for later entrants. | ||||||
20 | (a) A participant may only establish creditable service for | ||||||
21 | his or her service for employment as a judge, as defined in | ||||||
22 | Section 18-108. Except as otherwise provided in this Section, a | ||||||
23 | participant may not establish creditable service for any other | ||||||
24 | service. | ||||||
25 | (b) A participant may establish creditable service, |
| |||||||
| |||||||
1 | without making contributions, for periods of military service, | ||||||
2 | provided that the person received a discharge other than | ||||||
3 | dishonorable, was a participant within 6 months prior to | ||||||
4 | military service, and returned to service as a participant | ||||||
5 | under this System within one year after discharge. | ||||||
6 | A participant may purchase up to 2 years of military | ||||||
7 | service not immediately following service as a participant | ||||||
8 | under this System, by paying to the System (1) employee | ||||||
9 | contributions based on the participant's salary upon the first | ||||||
10 | date as a participant after the military service, plus (2) an | ||||||
11 | amount determined by the board to be equal to the employer's | ||||||
12 | normal cost of the benefit, plus (3) interest on items (1) and | ||||||
13 | (2) at the actuarially assumed rate, compounded annually, from | ||||||
14 | the first date as a participant after such military service to | ||||||
15 | the date of payment. | ||||||
16 | The total amount of creditable military service for any | ||||||
17 | participant during his or her entire term of service shall not | ||||||
18 | exceed 5 years. | ||||||
19 | For the purposes of this subsection (b), "military service" | ||||||
20 | means periods a person spent in active service with the | ||||||
21 | military forces of the United States for which the person | ||||||
22 | received a discharge other than dishonorable. | ||||||
23 | (c) A participant may establish service credit for up to 2 | ||||||
24 | years of periods spent on authorized leave of absence from | ||||||
25 | service due to pregnancy or adoption by paying to the System | ||||||
26 | (1) employee contributions based upon the participant's salary |
| |||||||
| |||||||
1 | upon becoming a participant under this Article, (2) an amount | ||||||
2 | determined by the board to be equal to the employer's normal | ||||||
3 | cost of the benefit, and (3) interest on items (1) and (2) at | ||||||
4 | the actuarially assumed rate from the date of first | ||||||
5 | participation in the System to the date of payment. | ||||||
6 | (40 ILCS 5/18-310 new)
| ||||||
7 | Sec. 18-310. Retirement annuity; conditions for | ||||||
8 | eligibility; later entrants. A participant may claim his or her | ||||||
9 | retirement annuity upon attainment of (1) the full (normal) | ||||||
10 | retirement age as provided in the federal Social Security Act | ||||||
11 | with at least 10 years of service credit or (2) age 62 with at | ||||||
12 | least 35 years of service credit. | ||||||
13 | A participant may claim a reduced retirement annuity under | ||||||
14 | subsection (c) of Section 18-315 if he or she is at least 62 | ||||||
15 | years of age and has at least 10 years of service. | ||||||
16 | The annuity shall begin with the first full calendar month | ||||||
17 | following the date of withdrawal. | ||||||
18 | (40 ILCS 5/18-315 new)
| ||||||
19 | Sec. 18-315. Retirement life annuity; amount; employer | ||||||
20 | contribution; later entrants. | ||||||
21 | (a) With respect to later entrants: | ||||||
22 | (1) "Final average salary" means the monthly salary | ||||||
23 | obtained by dividing the total salary of a participant | ||||||
24 | during the period of: (A) the 96 consecutive months of |
| |||||||
| |||||||
1 | service within the last 120 months of service in which the | ||||||
2 | total salary was the highest or (B) the total period of | ||||||
3 | service, if less than 96 months, by the number of months of | ||||||
4 | service in such period; provided that for the purposes of a | ||||||
5 | retirement annuity the average salary for the last 12 | ||||||
6 | months of the 96 months shall not exceed the final average | ||||||
7 | salary by more than 25%. | ||||||
8 | In no event shall the monthly salary used to determine | ||||||
9 | final average salary exceed (i) the Social Security Covered | ||||||
10 | Wage Base for the given month of service or (ii) $12,500, | ||||||
11 | whichever is less; provided, however, that the $12,500 | ||||||
12 | maximum shall be adjusted annually after the effective date | ||||||
13 | of this amendatory Act of the 96th General Assembly, by (1) | ||||||
14 | 3% or (2) one-half of the percentage increase, if any, in | ||||||
15 | the Consumer Price Index for All Urban Consumers, whichever | ||||||
16 | is less. | ||||||
17 | (2) "Salary" means a participant's base salary and does | ||||||
18 | not include any overtime or bonuses. | ||||||
19 | (b) The retirement life annuity shall be 2% of final | ||||||
20 | average salary for each year of service, but in no event shall | ||||||
21 | exceed 70% of final average salary. | ||||||
22 | (c) For a participant retiring after attaining age 62 with | ||||||
23 | less than 35 years of service credit, the retirement life | ||||||
24 | annuity shall be reduced by one-half of 1% for each month that | ||||||
25 | the participant's age is under the full (normal) retirement age | ||||||
26 | as provided in the federal Social Security Act. |
| |||||||
| |||||||
1 | (40 ILCS 5/18-320 new)
| ||||||
2 | Sec. 18-320. Alternative forms of annuities for later | ||||||
3 | entrants. A participant may choose any of the following types | ||||||
4 | of annuities in lieu of receiving the full annuity provided in | ||||||
5 | Section 18-315: | ||||||
6 | (1) Joint and 50% survivor annuity. Under this form of | ||||||
7 | payment, the participant receives a reduced monthly | ||||||
8 | payment for his or her lifetime with a payment equal to 50% | ||||||
9 | of the reduced amount payable to the participant paid to | ||||||
10 | the participant's designated beneficiary for the | ||||||
11 | beneficiary's lifetime if the beneficiary survives the | ||||||
12 | participant. | ||||||
13 | (2) Joint and 75% survivor annuity. Under this form of | ||||||
14 | payment, the participant receives a reduced monthly | ||||||
15 | payment for his or her lifetime with a payment equal to 75% | ||||||
16 | of the reduced amount payable to the participant paid to | ||||||
17 | the participant's designated beneficiary for the | ||||||
18 | beneficiary's lifetime if the beneficiary survives the | ||||||
19 | participant. | ||||||
20 | (3) Joint and 100% survivor annuity. Under this form of | ||||||
21 | payment, the participant receives a reduced monthly | ||||||
22 | payment for his or her lifetime with a payment equal to | ||||||
23 | 100% of the reduced amount payable to the participant paid | ||||||
24 | to the participant's designated beneficiary for the | ||||||
25 | beneficiary's lifetime if the beneficiary survives the |
| |||||||
| |||||||
1 | participant. | ||||||
2 | (4) Single life annuity with 60, 120, or 180 months of | ||||||
3 | guaranteed payments. Under this option, the participant | ||||||
4 | receives a reduced monthly payment for his or her lifetime. | ||||||
5 | If the participant dies before receiving at least the | ||||||
6 | number of guaranteed monthly payments, then the | ||||||
7 | participant's beneficiary or estate receives the remaining | ||||||
8 | guaranteed number of monthly payments. | ||||||
9 | The Board must determine the participant's optional form of | ||||||
10 | annuity provided under this Section by taking into account the | ||||||
11 | appropriate actuarial assumptions, including without | ||||||
12 | limitation the participant's and beneficiary's age; applicable | ||||||
13 | mortality tables; and any other factors that the Board | ||||||
14 | determines to be relevant. For this purpose, the participant's | ||||||
15 | joint and survivor annuity should result in no significant | ||||||
16 | increase to the System's unfunded actuarial accrued liability | ||||||
17 | determined as of the most recent actuarial valuation compared | ||||||
18 | to the System's actuarial liability if the participant opted | ||||||
19 | for a retirement life annuity under Section 18-315, based on | ||||||
20 | the same assumptions and methods used to develop and report the | ||||||
21 | System's actuarial accrued liability and actuarial value of | ||||||
22 | assets under Statement No. 25 of Governmental Accounting | ||||||
23 | Standards Board or any subsequent applicable Statement. | ||||||
24 | (40 ILCS 5/18-325 new)
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25 | Sec. 18-325. Automatic annual increases for later |
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1 | entrants. Notwithstanding any other provision of this Article, | ||||||
2 | a person receiving a retirement or survivor annuity under | ||||||
3 | Section 18-315 or 18-320 shall, on the first anniversary of | ||||||
4 | retirement, but not before attaining age 67, and annually | ||||||
5 | thereafter, have his or her annuity increased by (1) 3% or (2) | ||||||
6 | one-half of the percentage increase, if any, in the Consumer | ||||||
7 | Price Index for All Urban Consumers measured from the July 1 | ||||||
8 | two years prior to the January 1 of the year during which the | ||||||
9 | increase is being granted to the June 30 preceding the year | ||||||
10 | during which the increase is being granted, whichever is less, | ||||||
11 | of the originally granted annuity. | ||||||
12 | (40 ILCS 5/18-330 new)
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13 | Sec. 18-330. Contributions by judges; later entrants. | ||||||
14 | (a) Each judge shall contribute 7% of each payment of | ||||||
15 | salary received by him or her for service as a judge toward the | ||||||
16 | cost of his or her retirement annuity. | ||||||
17 | (b) Contributions shall be in the form of a deduction from | ||||||
18 | salary and shall be made notwithstanding that the net salary | ||||||
19 | paid to the judge shall be reduced thereby below the minimum | ||||||
20 | prescribed by law or regulation. Each participant is deemed to | ||||||
21 | consent and agree to the deductions from salary provided for in | ||||||
22 | this Article. | ||||||
23 | (c) These contributions shall be picked up in the manner | ||||||
24 | provided in Section 18-133.1. | ||||||
25 | (d) In no event shall contributions be deducted from salary |
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1 | in excess of (1) the Social Security Covered Wage Base for the | ||||||
2 | given calendar year or (2) $150,000, whichever is less. | ||||||
3 | (40 ILCS 5/18-335 new)
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4 | Sec. 18-335. Refunds; later entrants. | ||||||
5 | (a) A participant who ceases to be a judge, other than an | ||||||
6 | annuitant, shall, upon written request, receive a refund of his | ||||||
7 | or her total contributions, plus interest at (1) 3% or (2) | ||||||
8 | one-half of the percentage increase, if any, in the Consumer | ||||||
9 | Price Index for All Urban Consumers measured from the July 1 | ||||||
10 | two years prior to the January 1 of the year during which the | ||||||
11 | interest is being credited to the June 30 preceding the year | ||||||
12 | during which the interest is being credited, whichever is less, | ||||||
13 | per year, not compounded. | ||||||
14 | (b) Upon re-entry into service as a judge, a former | ||||||
15 | participant may reestablish any creditable service forfeited | ||||||
16 | by acceptance of a refund by paying to the System the full | ||||||
17 | amount refunded, plus interest at the actuarially assumed rate, | ||||||
18 | not compounded, from the date of payment of the refund to the | ||||||
19 | date of repayment. | ||||||
20 | (c) Participants covered by the provisions of this Section | ||||||
21 | shall be deemed later entrants only if the date of their | ||||||
22 | initial participation was on or after January 1, 2010. | ||||||
23 | (40 ILCS 5/18-340 new)
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24 | Sec. 18-340. Re-entry after retirement; later entrants. |
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1 | (a) An annuitant who re-enters service as a judge shall | ||||||
2 | become a participant on the date of re-entry and retirement | ||||||
3 | annuity payments shall cease at that time. The judge shall | ||||||
4 | resume contributions to the system on the date of re-entry at | ||||||
5 | the rates then in effect and shall begin to accrue additional | ||||||
6 | service credit. | ||||||
7 | (b) Upon subsequent retirement, the judge shall be entitled | ||||||
8 | to a retirement annuity consisting of: (1) the amount of | ||||||
9 | retirement annuity previously granted and terminated by | ||||||
10 | re-entry into service and (2) the amount of additional | ||||||
11 | retirement annuity earned during the additional service. | ||||||
12 | (c) In computing the retirement annuity under subsection | ||||||
13 | (b) of this Section, the time that the judge was on retirement | ||||||
14 | shall not interrupt the continuity of service for the | ||||||
15 | computation of final average salary and the additional service | ||||||
16 | shall be considered, together with service rendered before the | ||||||
17 | previous retirement, in establishing final average salary. | ||||||
18 | (d) Participants covered by the provisions of this Section | ||||||
19 | shall be deemed later entrants only if the date of their | ||||||
20 | initial participation was on or after January 1, 2010. | ||||||
21 | Section 15. The Illinois Educational Labor Relations Act is | ||||||
22 | amended by changing Section 17 and by adding Section 22 as | ||||||
23 | follows:
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24 | (115 ILCS 5/17) (from Ch. 48, par. 1717)
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1 | Sec. 17. Effect on other laws. Except as provided in this | ||||||
2 | Section, in In case of any conflict between the
provisions of | ||||||
3 | this Act and any other law, executive order or administrative
| ||||||
4 | regulation, the provisions of this Act shall prevail and | ||||||
5 | control. | ||||||
6 | However, the changes made to the Illinois Pension Code by | ||||||
7 | this amendatory Act of the 96th General Assembly shall prevail | ||||||
8 | and control over any conflicting provision in this Act and any | ||||||
9 | collective bargaining agreement negotiated pursuant thereto, | ||||||
10 | and any other law, executive order, or administrative | ||||||
11 | regulation. Any disputes that are brought on behalf of any | ||||||
12 | employer or employee or exclusive bargaining representative | ||||||
13 | subject to this Act arising from the changes made to the | ||||||
14 | Illinois Pension Code by this amendatory Act of the 96th | ||||||
15 | General Assembly shall be subject to the exclusive jurisdiction | ||||||
16 | of the Illinois Educational Labor Relations Board, and the | ||||||
17 | Circuit Courts shall have no jurisdiction, except to hear | ||||||
18 | disputes arising directly under the Constitution of the United | ||||||
19 | States of America or the Illinois Constitution.
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20 | Nothing in this Act shall be construed to replace or | ||||||
21 | diminish the rights
of employees established by Section 36d of | ||||||
22 | "An Act to create the State Universities
Civil Service System", | ||||||
23 | approved May 11, 1905, as amended or modified.
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24 | (Source: P.A. 83-1014.)
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25 | (115 ILCS 5/22 new)
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1 | Sec. 22. Illinois Pension Code. Notwithstanding the | ||||||
2 | existence of any other provision in this Act or any other law, | ||||||
3 | collective bargaining between any employer whose employees are | ||||||
4 | affected by the changes made to the Illinois Pension Code by | ||||||
5 | this amendatory Act of the 96th General Assembly and the | ||||||
6 | exclusive bargaining representative of such employees may | ||||||
7 | include decisions concerning the changes made to the Illinois | ||||||
8 | Pension Code by this amendatory Act of the 96th General | ||||||
9 | Assembly, including, but not limited to, changes and benefits | ||||||
10 | of retirement systems covered by the Illinois Pension Code. | ||||||
11 | These subjects are permissive subjects of bargaining between an | ||||||
12 | employer and an exclusive representative of its employees and, | ||||||
13 | for the purpose of this Act, are within the sole discretion of | ||||||
14 | the employer to decide to bargain, provided that the employer | ||||||
15 | is required to bargain over the impact of a decision concerning | ||||||
16 | such subject on the bargaining unit upon request by the | ||||||
17 | exclusive representative. During this bargaining, the employer | ||||||
18 | shall not be precluded from implementing its decision. If, | ||||||
19 | after a reasonable period of bargaining, a dispute or impasse | ||||||
20 | exists between the employer and the exclusive representative, | ||||||
21 | then the dispute or impasse shall be resolved exclusively as | ||||||
22 | set forth in this Act.
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23 | Section 97. Severability. The provisions of this Act are | ||||||
24 | severable under Section 1.31 of the Statute on Statutes. |
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
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