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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Employees Group Insurance Act of 1971 | ||||||||||||||||||||||||
5 | is amended by changing Sections 3 and 10 as follows:
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6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
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7 | Sec. 3. Definitions. Unless the context otherwise | ||||||||||||||||||||||||
8 | requires, the
following words and phrases as used in this Act | ||||||||||||||||||||||||
9 | shall have the following
meanings. The Department may define | ||||||||||||||||||||||||
10 | these and other words and phrases
separately for the purpose of | ||||||||||||||||||||||||
11 | implementing specific programs providing benefits
under this | ||||||||||||||||||||||||
12 | Act.
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13 | (a) "Administrative service organization" means any | ||||||||||||||||||||||||
14 | person, firm or
corporation experienced in the handling of | ||||||||||||||||||||||||
15 | claims which is
fully qualified, financially sound and capable | ||||||||||||||||||||||||
16 | of meeting the service
requirements of a contract of | ||||||||||||||||||||||||
17 | administration executed with the Department.
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18 | (b) "Annuitant" means (1) an employee who retires, or has | ||||||||||||||||||||||||
19 | retired,
on or after January 1, 1966 on an immediate annuity | ||||||||||||||||||||||||
20 | under the provisions
of Articles 2 (including an employee who | ||||||||||||||||||||||||
21 | meets the criteria for retirement, but in lieu of receiving an | ||||||||||||||||||||||||
22 | annuity under that Article has elected to receive an | ||||||||||||||||||||||||
23 | accelerated pension benefit payment under Section 2-154.5 of |
| |||||||
| |||||||
1 | that Article) , 14 (including an employee who has elected to | ||||||
2 | receive an alternative retirement cancellation payment under | ||||||
3 | Section 14-108.5 of the Illinois Pension Code in lieu of an | ||||||
4 | annuity or who meets the criteria for retirement, but in lieu | ||||||
5 | of receiving an annuity under that Article has elected to | ||||||
6 | receive an accelerated pension benefit payment under Section | ||||||
7 | 14-147.5 of that Article ), 15 (including an employee who has | ||||||
8 | retired under the optional
retirement program established | ||||||
9 | under Section 15-158.2 or who meets the criteria for retirement | ||||||
10 | but in lieu of receiving an annuity under that Article has | ||||||
11 | elected to receive an accelerated pension benefit payment under | ||||||
12 | Section 15-185.5 of the Article ),
paragraphs (2), (3), or (5) | ||||||
13 | of Section 16-106 (including an employee who meets the criteria | ||||||
14 | for retirement, but in lieu of receiving an annuity under that | ||||||
15 | Article has elected to receive an accelerated pension benefit | ||||||
16 | payment under Section 16-190.5 of the Illinois Pension Code) , | ||||||
17 | or
Article 18 (including an employee who meets the criteria for | ||||||
18 | retirement, but in lieu of receiving an annuity under that | ||||||
19 | Article, has elected to receive an accelerated pension benefit | ||||||
20 | payment under Section 18-161.5 of that Article) of the Illinois | ||||||
21 | Pension Code; (2) any person who was receiving
group insurance | ||||||
22 | coverage under this Act as of March 31, 1978 by
reason of his | ||||||
23 | status as an annuitant, even though the annuity in relation
to | ||||||
24 | which such coverage was provided is a proportional annuity | ||||||
25 | based on less
than the minimum period of service required for a | ||||||
26 | retirement annuity in
the system involved; (3) any person not |
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| |||||||
1 | otherwise covered by this Act
who has retired as a | ||||||
2 | participating member under Article 2 of the Illinois
Pension | ||||||
3 | Code but is ineligible for the retirement annuity under Section
| ||||||
4 | 2-119 of the Illinois Pension Code; (4) the spouse of any | ||||||
5 | person who
is receiving a retirement annuity under Article 18 | ||||||
6 | of the Illinois Pension
Code and who is covered under a group | ||||||
7 | health insurance program sponsored
by a governmental employer | ||||||
8 | other than the State of Illinois and who has
irrevocably | ||||||
9 | elected to waive his or her coverage under this Act and to have
| ||||||
10 | his or her spouse considered as the "annuitant" under this Act | ||||||
11 | and not as
a "dependent"; or (5) an employee who retires, or | ||||||
12 | has retired, from a
qualified position, as determined according | ||||||
13 | to rules promulgated by the
Director, under a qualified local | ||||||
14 | government, a qualified rehabilitation
facility, a qualified | ||||||
15 | domestic violence shelter or service, or a qualified child | ||||||
16 | advocacy center. (For definition
of "retired employee", see (p) | ||||||
17 | post).
| ||||||
18 | (b-5) (Blank).
| ||||||
19 | (b-6) (Blank).
| ||||||
20 | (b-7) (Blank).
| ||||||
21 | (c) "Carrier" means (1) an insurance company, a corporation | ||||||
22 | organized
under the Limited Health Service Organization Act or | ||||||
23 | the Voluntary Health
Services Plan Act, a partnership, or other | ||||||
24 | nongovernmental organization,
which is authorized to do group | ||||||
25 | life or group health insurance business in
Illinois, or (2) the | ||||||
26 | State of Illinois as a self-insurer.
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| |||||||
1 | (d) "Compensation" means salary or wages payable on a | ||||||
2 | regular
payroll by the State Treasurer on a warrant of the | ||||||
3 | State Comptroller out
of any State, trust or federal fund, or | ||||||
4 | by the Governor of the State
through a disbursing officer of | ||||||
5 | the State out of a trust or out of
federal funds, or by any | ||||||
6 | Department out of State, trust, federal or
other funds held by | ||||||
7 | the State Treasurer or the Department, to any person
for | ||||||
8 | personal services currently performed, and ordinary or | ||||||
9 | accidental
disability benefits under Articles 2, 14, 15 | ||||||
10 | (including ordinary or accidental
disability benefits under | ||||||
11 | the optional retirement program established under
Section | ||||||
12 | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | ||||||
13 | Article 18 of the Illinois Pension Code, for disability
| ||||||
14 | incurred after January 1, 1966, or benefits payable under the | ||||||
15 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
16 | payable under a sick
pay plan established in accordance with | ||||||
17 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
18 | salary or wages paid to an employee of any
qualified local | ||||||
19 | government, qualified rehabilitation facility,
qualified | ||||||
20 | domestic violence shelter or service, or qualified child | ||||||
21 | advocacy center.
| ||||||
22 | (e) "Commission" means the State Employees Group Insurance | ||||||
23 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
24 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
25 | Government Forecasting and Accountability as
established by | ||||||
26 | the Legislative Commission Reorganization Act of 1984.
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| |||||||
1 | (f) "Contributory", when referred to as contributory | ||||||
2 | coverage, shall
mean optional coverages or benefits elected by | ||||||
3 | the member toward the cost of
which such member makes | ||||||
4 | contribution, or which are funded in whole or in part
through | ||||||
5 | the acceptance of a reduction in earnings or the foregoing of | ||||||
6 | an
increase in earnings by an employee, as distinguished from | ||||||
7 | noncontributory
coverage or benefits which are paid entirely by | ||||||
8 | the State of Illinois
without reduction of the member's salary.
| ||||||
9 | (g) "Department" means any department, institution, board,
| ||||||
10 | commission, officer, court or any agency of the State | ||||||
11 | government
receiving appropriations and having power to | ||||||
12 | certify payrolls to the
Comptroller authorizing payments of | ||||||
13 | salary and wages against such
appropriations as are made by the | ||||||
14 | General Assembly from any State fund, or
against trust funds | ||||||
15 | held by the State Treasurer and includes boards of
trustees of | ||||||
16 | the retirement systems created by Articles 2, 14, 15, 16 and
18 | ||||||
17 | of the Illinois Pension Code. "Department" also includes the | ||||||
18 | Illinois
Comprehensive Health Insurance Board, the Board of | ||||||
19 | Examiners established under
the Illinois Public Accounting | ||||||
20 | Act, and the Illinois Finance Authority.
| ||||||
21 | (h) "Dependent", when the term is used in the context of | ||||||
22 | the health
and life plan, means a member's spouse and any child | ||||||
23 | (1) from
birth to age 26 including an adopted child, a child | ||||||
24 | who lives with the
member from the time of the filing of a | ||||||
25 | petition for adoption until entry
of an order of adoption, a | ||||||
26 | stepchild or adjudicated child, or a child who lives with the |
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| |||||||
1 | member
if such member is a court appointed guardian of the | ||||||
2 | child or (2)
age 19 or over who has a mental or physical | ||||||
3 | disability from a cause originating prior to the age of 19 (age | ||||||
4 | 26 if enrolled as an adult child dependent). For
the health | ||||||
5 | plan only, the term "dependent" also includes (1) any person
| ||||||
6 | enrolled prior to the effective date of this Section who is | ||||||
7 | dependent upon
the member to the extent that the member may | ||||||
8 | claim such person as a
dependent for income tax deduction | ||||||
9 | purposes and (2) any person who
has received after June 30, | ||||||
10 | 2000 an organ transplant and who is financially
dependent upon | ||||||
11 | the member and eligible to be claimed as a dependent for income
| ||||||
12 | tax purposes. A member requesting to cover any dependent must | ||||||
13 | provide documentation as requested by the Department of Central | ||||||
14 | Management Services and file with the Department any and all | ||||||
15 | forms required by the Department.
| ||||||
16 | (i) "Director" means the Director of the Illinois | ||||||
17 | Department of Central
Management Services.
| ||||||
18 | (j) "Eligibility period" means the period of time a member | ||||||
19 | has to
elect enrollment in programs or to select benefits | ||||||
20 | without regard to
age, sex or health.
| ||||||
21 | (k) "Employee" means and includes each officer or employee | ||||||
22 | in the
service of a department who (1) receives his | ||||||
23 | compensation for
service rendered to the department on a | ||||||
24 | warrant issued pursuant to a payroll
certified by a department | ||||||
25 | or on a warrant or check issued and drawn by a
department upon | ||||||
26 | a trust, federal or other fund or on a warrant issued
pursuant |
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| |||||||
1 | to a payroll certified by an elected or duly appointed officer
| ||||||
2 | of the State or who receives payment of the performance of | ||||||
3 | personal
services on a warrant issued pursuant to a payroll | ||||||
4 | certified by a
Department and drawn by the Comptroller upon the | ||||||
5 | State Treasurer against
appropriations made by the General | ||||||
6 | Assembly from any fund or against
trust funds held by the State | ||||||
7 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
8 | position normally requiring actual performance of duty
during | ||||||
9 | not less than 1/2 of a normal work period, as established by | ||||||
10 | the
Director in cooperation with each department, except that | ||||||
11 | persons elected
by popular vote will be considered employees | ||||||
12 | during the entire
term for which they are elected regardless of | ||||||
13 | hours devoted to the
service of the State, and (3) except that | ||||||
14 | "employee" does not include any
person who is not eligible by | ||||||
15 | reason of such person's employment to
participate in one of the | ||||||
16 | State retirement systems under Articles 2, 14, 15
(either the | ||||||
17 | regular Article 15 system or the optional retirement program
| ||||||
18 | established under Section 15-158.2) or 18, or under paragraph | ||||||
19 | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | ||||||
20 | Code, but such term does include persons who are employed | ||||||
21 | during
the 6 month qualifying period under Article 14 of the | ||||||
22 | Illinois Pension
Code. Such term also includes any person who | ||||||
23 | (1) after January 1, 1966,
is receiving ordinary or accidental | ||||||
24 | disability benefits under Articles
2, 14, 15 (including | ||||||
25 | ordinary or accidental disability benefits under the
optional | ||||||
26 | retirement program established under Section 15-158.2), |
| |||||||
| |||||||
1 | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | ||||||
2 | the
Illinois Pension Code, for disability incurred after | ||||||
3 | January 1, 1966, (2)
receives total permanent or total | ||||||
4 | temporary disability under the Workers'
Compensation Act or | ||||||
5 | Occupational Disease Act as a result of injuries
sustained or | ||||||
6 | illness contracted in the course of employment with the
State | ||||||
7 | of Illinois, or (3) is not otherwise covered under this Act and | ||||||
8 | has
retired as a participating member under Article 2 of the | ||||||
9 | Illinois Pension
Code but is ineligible for the retirement | ||||||
10 | annuity under Section 2-119 of
the Illinois Pension Code. | ||||||
11 | However, a person who satisfies the criteria
of the foregoing | ||||||
12 | definition of "employee" except that such person is made
| ||||||
13 | ineligible to participate in the State Universities Retirement | ||||||
14 | System by
clause (4) of subsection (a) of Section 15-107 of the | ||||||
15 | Illinois Pension
Code is also an "employee" for the purposes of | ||||||
16 | this Act. "Employee" also
includes any person receiving or | ||||||
17 | eligible for benefits under a sick pay
plan established in | ||||||
18 | accordance with Section 36 of the State Finance Act.
"Employee" | ||||||
19 | also includes (i) each officer or employee in the service of a
| ||||||
20 | qualified local government, including persons appointed as | ||||||
21 | trustees of
sanitary districts regardless of hours devoted to | ||||||
22 | the service of the
sanitary district, (ii) each employee in the | ||||||
23 | service of a qualified
rehabilitation facility, (iii) each | ||||||
24 | full-time employee in the service of a
qualified domestic | ||||||
25 | violence shelter or service, and (iv) each full-time employee | ||||||
26 | in the service of a qualified child advocacy center, as |
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| |||||||
1 | determined according to
rules promulgated by the Director.
| ||||||
2 | (l) "Member" means an employee, annuitant, retired | ||||||
3 | employee or survivor. In the case of an annuitant or retired | ||||||
4 | employee who first becomes an annuitant or retired employee on | ||||||
5 | or after the effective date of this amendatory Act of the 97th | ||||||
6 | General Assembly, the individual must meet the minimum vesting | ||||||
7 | requirements of the applicable retirement system in order to be | ||||||
8 | eligible for group insurance benefits under that system. In the | ||||||
9 | case of a survivor who first becomes a survivor on or after the | ||||||
10 | effective date of this amendatory Act of the 97th General | ||||||
11 | Assembly, the deceased employee, annuitant, or retired | ||||||
12 | employee upon whom the annuity is based must have been eligible | ||||||
13 | to participate in the group insurance system under the | ||||||
14 | applicable retirement system in order for the survivor to be | ||||||
15 | eligible for group insurance benefits under that system.
| ||||||
16 | (m) "Optional coverages or benefits" means those coverages | ||||||
17 | or
benefits available to the member on his or her voluntary | ||||||
18 | election, and at
his or her own expense.
| ||||||
19 | (n) "Program" means the group life insurance, health | ||||||
20 | benefits and other
employee benefits designed and contracted | ||||||
21 | for by the Director under this Act.
| ||||||
22 | (o) "Health plan" means a health benefits
program offered
| ||||||
23 | by the State of Illinois for persons eligible for the plan.
| ||||||
24 | (p) "Retired employee" means any person who would be an | ||||||
25 | annuitant as
that term is defined herein but for the fact that | ||||||
26 | such person retired prior to
January 1, 1966. Such term also |
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| |||||||
1 | includes any person formerly employed by
the University of | ||||||
2 | Illinois in the Cooperative Extension Service who would
be an | ||||||
3 | annuitant but for the fact that such person was made ineligible | ||||||
4 | to
participate in the State Universities Retirement System by | ||||||
5 | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| ||||||
6 | Pension Code.
| ||||||
7 | (q) "Survivor" means a person receiving an annuity as a | ||||||
8 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
9 | includes: (1) the surviving
dependent of a person who satisfies | ||||||
10 | the definition of "employee" except that
such person is made | ||||||
11 | ineligible to participate in the State Universities
Retirement | ||||||
12 | System by clause (4) of subsection (a)
of Section 15-107 of the | ||||||
13 | Illinois Pension Code; (2) the surviving
dependent of any | ||||||
14 | person formerly employed by the University of Illinois in
the | ||||||
15 | Cooperative Extension Service who would be an annuitant except | ||||||
16 | for the
fact that such person was made ineligible to | ||||||
17 | participate in the State
Universities Retirement System by | ||||||
18 | clause (4) of subsection (a) of Section
15-107 of the Illinois | ||||||
19 | Pension Code; and (3) the surviving dependent of a person who | ||||||
20 | was an annuitant under this Act by virtue of receiving an | ||||||
21 | alternative retirement cancellation payment under Section | ||||||
22 | 14-108.5 of the Illinois Pension Code.
| ||||||
23 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
24 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
25 | Code.
| ||||||
26 | (q-3) "SURS" means the State Universities Retirement |
| |||||||
| |||||||
1 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
2 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
3 | State of Illinois, created under Article 16 of the Illinois | ||||||
4 | Pension Code.
| ||||||
5 | (q-5) (Blank).
| ||||||
6 | (q-6) (Blank).
| ||||||
7 | (q-7) (Blank).
| ||||||
8 | (r) "Medical services" means the services provided within | ||||||
9 | the scope
of their licenses by practitioners in all categories | ||||||
10 | licensed under the
Medical Practice Act of 1987.
| ||||||
11 | (s) "Unit of local government" means any county, | ||||||
12 | municipality,
township, school district (including a | ||||||
13 | combination of school districts under
the Intergovernmental | ||||||
14 | Cooperation Act), special district or other unit,
designated as | ||||||
15 | a
unit of local government by law, which exercises limited | ||||||
16 | governmental
powers or powers in respect to limited | ||||||
17 | governmental subjects, any
not-for-profit association with a | ||||||
18 | membership that primarily includes
townships and township | ||||||
19 | officials, that has duties that include provision of
research | ||||||
20 | service, dissemination of information, and other acts for the
| ||||||
21 | purpose of improving township government, and that is funded | ||||||
22 | wholly or
partly in accordance with Section 85-15 of the | ||||||
23 | Township Code; any
not-for-profit corporation or association, | ||||||
24 | with a membership consisting
primarily of municipalities, that | ||||||
25 | operates its own utility system, and
provides research, | ||||||
26 | training, dissemination of information, or other acts to
|
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| |||||||
1 | promote cooperation between and among municipalities that | ||||||
2 | provide utility
services and for the advancement of the goals | ||||||
3 | and purposes of its
membership;
the Southern Illinois | ||||||
4 | Collegiate Common Market, which is a consortium of higher
| ||||||
5 | education institutions in Southern Illinois; the Illinois | ||||||
6 | Association of
Park Districts; and any hospital provider that | ||||||
7 | is owned by a county that has 100 or fewer hospital beds and | ||||||
8 | has not already joined the program. "Qualified
local | ||||||
9 | government" means a unit of local government approved by the | ||||||
10 | Director and
participating in a program created under | ||||||
11 | subsection (i) of Section 10 of this
Act.
| ||||||
12 | (t) "Qualified rehabilitation facility" means any | ||||||
13 | not-for-profit
organization that is accredited by the | ||||||
14 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
15 | certified by the Department
of Human Services (as successor to | ||||||
16 | the Department of Mental Health
and Developmental | ||||||
17 | Disabilities) to provide services to persons with
disabilities
| ||||||
18 | and which receives funds from the State of Illinois for | ||||||
19 | providing those
services, approved by the Director and | ||||||
20 | participating in a program created
under subsection (j) of | ||||||
21 | Section 10 of this Act.
| ||||||
22 | (u) "Qualified domestic violence shelter or service" means | ||||||
23 | any Illinois
domestic violence shelter or service and its | ||||||
24 | administrative offices funded
by the Department of Human | ||||||
25 | Services (as successor to the Illinois Department of
Public | ||||||
26 | Aid),
approved by the Director and
participating in a program |
| |||||||
| |||||||
1 | created under subsection (k) of Section 10.
| ||||||
2 | (v) "TRS benefit recipient" means a person who:
| ||||||
3 | (1) is not a "member" as defined in this Section; and
| ||||||
4 | (2) is receiving a monthly benefit or retirement | ||||||
5 | annuity
under Article 16 of the Illinois Pension Code; and
| ||||||
6 | (3) either (i) has at least 8 years of creditable | ||||||
7 | service under Article
16 of the Illinois Pension Code, or | ||||||
8 | (ii) was enrolled in the health insurance
program offered | ||||||
9 | under that Article on January 1, 1996, or (iii) is the | ||||||
10 | survivor
of a benefit recipient who had at least 8
years of | ||||||
11 | creditable service under Article 16 of the Illinois Pension | ||||||
12 | Code or
was enrolled in the health insurance program | ||||||
13 | offered under that Article on
the effective date of this | ||||||
14 | amendatory Act of 1995, or (iv) is a recipient or
survivor | ||||||
15 | of a recipient of a disability benefit under Article 16 of | ||||||
16 | the
Illinois Pension Code.
| ||||||
17 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
18 | (1) is not a "member" or "dependent" as defined in this | ||||||
19 | Section; and
| ||||||
20 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
21 | dependent parent who
is receiving at least half of his or | ||||||
22 | her support from the TRS benefit
recipient, or (C) natural, | ||||||
23 | step, adjudicated, or adopted child who is (i) under age | ||||||
24 | 26, (ii) was, on January 1, 1996, participating as a | ||||||
25 | dependent
beneficiary in the health insurance program | ||||||
26 | offered under Article 16 of the
Illinois Pension Code, or |
| |||||||
| |||||||
1 | (iii) age 19 or over who has a mental or physical | ||||||
2 | disability from a cause originating prior to the age of 19 | ||||||
3 | (age 26 if enrolled as an adult child).
| ||||||
4 | "TRS dependent beneficiary" does not include, as indicated | ||||||
5 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
6 | survivor of a TRS benefit recipient who first becomes a | ||||||
7 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
8 | the effective date of this amendatory Act of the 97th General | ||||||
9 | Assembly unless that dependent would have been eligible for | ||||||
10 | coverage as a dependent of the deceased TRS benefit recipient | ||||||
11 | upon whom the survivor benefit is based. | ||||||
12 | (x) "Military leave" refers to individuals in basic
| ||||||
13 | training for reserves, special/advanced training, annual | ||||||
14 | training, emergency
call up, activation by the President of the | ||||||
15 | United States, or any other training or duty in service to the | ||||||
16 | United States Armed Forces.
| ||||||
17 | (y) (Blank).
| ||||||
18 | (z) "Community college benefit recipient" means a person | ||||||
19 | who:
| ||||||
20 | (1) is not a "member" as defined in this Section; and
| ||||||
21 | (2) is receiving a monthly survivor's annuity or | ||||||
22 | retirement annuity
under Article 15 of the Illinois Pension | ||||||
23 | Code; and
| ||||||
24 | (3) either (i) was a full-time employee of a community | ||||||
25 | college district or
an association of community college | ||||||
26 | boards created under the Public Community
College Act |
| |||||||
| |||||||
1 | (other than an employee whose last employer under Article | ||||||
2 | 15 of the
Illinois Pension Code was a community college | ||||||
3 | district subject to Article VII
of the Public Community | ||||||
4 | College Act) and was eligible to participate in a group
| ||||||
5 | health benefit plan as an employee during the time of | ||||||
6 | employment with a
community college district (other than a | ||||||
7 | community college district subject to
Article VII of the | ||||||
8 | Public Community College Act) or an association of | ||||||
9 | community
college boards, or (ii) is the survivor of a | ||||||
10 | person described in item (i).
| ||||||
11 | (aa) "Community college dependent beneficiary" means a | ||||||
12 | person who:
| ||||||
13 | (1) is not a "member" or "dependent" as defined in this | ||||||
14 | Section; and
| ||||||
15 | (2) is a community college benefit recipient's: (A) | ||||||
16 | spouse, (B) dependent
parent who is receiving at least half | ||||||
17 | of his or her support from the community
college benefit | ||||||
18 | recipient, or (C) natural, step, adjudicated, or adopted | ||||||
19 | child who is (i)
under age 26, or (ii)
age 19 or over and | ||||||
20 | has a mental or physical disability from a cause | ||||||
21 | originating prior to the age of 19 (age 26 if enrolled as | ||||||
22 | an adult child).
| ||||||
23 | "Community college dependent beneficiary" does not | ||||||
24 | include, as indicated under paragraph (2) of this subsection | ||||||
25 | (aa), a dependent of the survivor of a community college | ||||||
26 | benefit recipient who first becomes a dependent of a survivor |
| |||||||
| |||||||
1 | of a community college benefit recipient on or after the | ||||||
2 | effective date of this amendatory Act of the 97th General | ||||||
3 | Assembly unless that dependent would have been eligible for | ||||||
4 | coverage as a dependent of the deceased community college | ||||||
5 | benefit recipient upon whom the survivor annuity is based. | ||||||
6 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
7 | child advocacy center and its administrative offices funded by | ||||||
8 | the Department of Children and Family Services, as defined by | ||||||
9 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
10 | the Director and participating in a program created under | ||||||
11 | subsection (n) of Section 10.
| ||||||
12 | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
| ||||||
13 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
14 | Sec. 10. Contributions by the State and members.
| ||||||
15 | (a) The State shall pay the cost of basic non-contributory | ||||||
16 | group life
insurance and, subject to member paid contributions | ||||||
17 | set by the Department or
required by this Section and except as | ||||||
18 | provided in this Section, the basic program of group health | ||||||
19 | benefits on each
eligible member, except a member, not | ||||||
20 | otherwise
covered by this Act, who has retired as a | ||||||
21 | participating member under Article 2
of the Illinois Pension | ||||||
22 | Code but is ineligible for the retirement annuity under
Section | ||||||
23 | 2-119 of the Illinois Pension Code, and part of each eligible | ||||||
24 | member's
and retired member's premiums for health insurance | ||||||
25 | coverage for enrolled
dependents as provided by Section 9. The |
| |||||||
| |||||||
1 | State shall pay the cost of the basic
program of group health | ||||||
2 | benefits only after benefits are reduced by the amount
of | ||||||
3 | benefits covered by Medicare for all members and dependents
who | ||||||
4 | are eligible for benefits under Social Security or
the Railroad | ||||||
5 | Retirement system or who had sufficient Medicare-covered
| ||||||
6 | government employment, except that such reduction in benefits | ||||||
7 | shall apply only
to those members and dependents who (1) first | ||||||
8 | become eligible
for such Medicare coverage on or after July 1, | ||||||
9 | 1992; or (2) are
Medicare-eligible members or dependents of a | ||||||
10 | local government unit which began
participation in the program | ||||||
11 | on or after July 1, 1992; or (3) remain eligible
for, but no | ||||||
12 | longer receive Medicare coverage which they had been receiving | ||||||
13 | on
or after July 1, 1992. The Department may determine the | ||||||
14 | aggregate level of the
State's contribution on the basis of | ||||||
15 | actual cost of medical services adjusted
for age, sex or | ||||||
16 | geographic or other demographic characteristics which affect
| ||||||
17 | the costs of such programs.
| ||||||
18 | The cost of participation in the basic program of group | ||||||
19 | health benefits
for the dependent or survivor of a living or | ||||||
20 | deceased retired employee who was
formerly employed by the | ||||||
21 | University of Illinois in the Cooperative Extension
Service and | ||||||
22 | would be an annuitant but for the fact that he or she was made
| ||||||
23 | ineligible to participate in the State Universities Retirement | ||||||
24 | System by clause
(4) of subsection (a) of Section 15-107 of the | ||||||
25 | Illinois Pension Code shall not
be greater than the cost of | ||||||
26 | participation that would otherwise apply to that
dependent or |
| |||||||
| |||||||
1 | survivor if he or she were the dependent or survivor of an
| ||||||
2 | annuitant under the State Universities Retirement System.
| ||||||
3 | (a-1) (Blank).
| ||||||
4 | (a-2) (Blank).
| ||||||
5 | (a-3) (Blank).
| ||||||
6 | (a-4) (Blank).
| ||||||
7 | (a-5) (Blank).
| ||||||
8 | (a-6) (Blank).
| ||||||
9 | (a-7) (Blank).
| ||||||
10 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
11 | waive or terminate coverage in
the program of group health | ||||||
12 | benefits. Any such annuitant, survivor, or retired employee
who | ||||||
13 | has waived or terminated coverage may enroll or re-enroll in | ||||||
14 | the
program of group health benefits only during the annual | ||||||
15 | benefit choice period,
as determined by the Director; except | ||||||
16 | that in the event of termination of
coverage due to nonpayment | ||||||
17 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
18 | not re-enroll in the program.
| ||||||
19 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
20 | Act of the 97th General Assembly, the Director of Central | ||||||
21 | Management Services shall, on an annual basis, determine the | ||||||
22 | amount that the State shall contribute toward the basic program | ||||||
23 | of group health benefits on behalf of annuitants (including | ||||||
24 | individuals who (i) participated in the General Assembly | ||||||
25 | Retirement System, the State Employees' Retirement System of | ||||||
26 | Illinois, the State Universities Retirement System, the |
| |||||||
| |||||||
1 | Teachers' Retirement System of the State of Illinois, or the | ||||||
2 | Judges Retirement System of Illinois and (ii) qualify as | ||||||
3 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
4 | survivors (including individuals who (i) receive an annuity as | ||||||
5 | a survivor of an individual who participated in the General | ||||||
6 | Assembly Retirement System, the State Employees' Retirement | ||||||
7 | System of Illinois, the State Universities Retirement System, | ||||||
8 | the Teachers' Retirement System of the State of Illinois, or | ||||||
9 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
10 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
11 | retired employees (as defined in subsection (p) of Section 3 of | ||||||
12 | this Act). The remainder of the cost of coverage for each | ||||||
13 | annuitant, survivor, or retired employee, as determined by the | ||||||
14 | Director of Central Management Services, shall be the | ||||||
15 | responsibility of that annuitant, survivor, or retired | ||||||
16 | employee. | ||||||
17 | Contributions required of annuitants, survivors, and | ||||||
18 | retired employees shall be the same for all retirement systems | ||||||
19 | and shall also be based on whether an individual has made an | ||||||
20 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
21 | Contributions may be based on annuitants', survivors', or | ||||||
22 | retired employees' Medicare eligibility, but may not be based | ||||||
23 | on Social Security eligibility. | ||||||
24 | (a-9) No later than May 1 of each calendar year, the | ||||||
25 | Director
of Central Management Services shall certify in | ||||||
26 | writing to the Executive
Secretary of the State Employees' |
| |||||||
| |||||||
1 | Retirement System of Illinois the amounts
of the Medicare | ||||||
2 | supplement health care premiums and the amounts of the
health | ||||||
3 | care premiums for all other retirees who are not Medicare | ||||||
4 | eligible.
| ||||||
5 | A separate calculation of the premiums based upon the | ||||||
6 | actual cost of each
health care plan shall be so certified.
| ||||||
7 | The Director of Central Management Services shall provide | ||||||
8 | to the
Executive Secretary of the State Employees' Retirement | ||||||
9 | System of
Illinois such information, statistics, and other data | ||||||
10 | as he or she
may require to review the premium amounts | ||||||
11 | certified by the Director
of Central Management Services.
| ||||||
12 | The Department of Central Management Services, or any | ||||||
13 | successor agency designated to procure healthcare contracts | ||||||
14 | pursuant to this Act, is authorized to establish funds, | ||||||
15 | separate accounts provided by any bank or banks as defined by | ||||||
16 | the Illinois Banking Act, or separate accounts provided by any | ||||||
17 | savings and loan association or associations as defined by the | ||||||
18 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
19 | Director, outside the State treasury, for the purpose of | ||||||
20 | receiving the transfer of moneys from the Local Government | ||||||
21 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
22 | rules further defining the methodology for the transfers. Any | ||||||
23 | interest earned by moneys in the funds or accounts shall inure | ||||||
24 | to the Local Government Health Insurance Reserve Fund. The | ||||||
25 | transferred moneys, and interest accrued thereon, shall be used | ||||||
26 | exclusively for transfers to administrative service |
| |||||||
| |||||||
1 | organizations or their financial institutions for payments of | ||||||
2 | claims to claimants and providers under the self-insurance | ||||||
3 | health plan. The transferred moneys, and interest accrued | ||||||
4 | thereon, shall not be used for any other purpose including, but | ||||||
5 | not limited to, reimbursement of administration fees due the | ||||||
6 | administrative service organization pursuant to its contract | ||||||
7 | or contracts with the Department.
| ||||||
8 | (a-10) To the extent that participation, benefits, or | ||||||
9 | premiums under this Act are based on a person's service credit | ||||||
10 | under an Article of the Illinois Pension Code, service credit | ||||||
11 | terminated in exchange for an accelerated pension benefit | ||||||
12 | payment under Section 2-154.5, 14-147.5, 15-185.5, 16-190.5, | ||||||
13 | or 18-161.5 of that Code shall be included in determining a | ||||||
14 | person's service credit for the purposes of this Act. | ||||||
15 | (b) State employees who become eligible for this program on | ||||||
16 | or after January
1, 1980 in positions normally requiring actual | ||||||
17 | performance of duty not less
than 1/2 of a normal work period | ||||||
18 | but not equal to that of a normal work period,
shall be given | ||||||
19 | the option of participating in the available program. If the
| ||||||
20 | employee elects coverage, the State shall contribute on behalf | ||||||
21 | of such employee
to the cost of the employee's benefit and any | ||||||
22 | applicable dependent supplement,
that sum which bears the same | ||||||
23 | percentage as that percentage of time the
employee regularly | ||||||
24 | works when compared to normal work period.
| ||||||
25 | (c) The basic non-contributory coverage from the basic | ||||||
26 | program of
group health benefits shall be continued for each |
| |||||||
| |||||||
1 | employee not in pay status or
on active service by reason of | ||||||
2 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
3 | educational leave of absence or sabbatical leave, or (3)
| ||||||
4 | military leave. This coverage shall continue until
expiration | ||||||
5 | of authorized leave and return to active service, but not to | ||||||
6 | exceed
24 months for leaves under item (1) or (2). This | ||||||
7 | 24-month limitation and the
requirement of returning to active | ||||||
8 | service shall not apply to persons receiving
ordinary or | ||||||
9 | accidental disability benefits or retirement benefits through | ||||||
10 | the
appropriate State retirement system or benefits under the | ||||||
11 | Workers' Compensation
or Occupational Disease Act.
| ||||||
12 | (d) The basic group life insurance coverage shall continue, | ||||||
13 | with
full State contribution, where such person is (1) absent | ||||||
14 | from active
service by reason of disability arising from any | ||||||
15 | cause other than
self-inflicted, (2) on authorized educational | ||||||
16 | leave of absence or
sabbatical leave, or (3) on military leave.
| ||||||
17 | (e) Where the person is in non-pay status for a period in | ||||||
18 | excess of
30 days or on leave of absence, other than by reason | ||||||
19 | of disability,
educational or sabbatical leave, or military | ||||||
20 | leave, such
person may continue coverage only by making | ||||||
21 | personal
payment equal to the amount normally contributed by | ||||||
22 | the State on such person's
behalf. Such payments and coverage | ||||||
23 | may be continued: (1) until such time as
the person returns to | ||||||
24 | a status eligible for coverage at State expense, but not
to | ||||||
25 | exceed 24 months or (2) until such person's employment or | ||||||
26 | annuitant status
with the State is terminated (exclusive of any |
| |||||||
| |||||||
1 | additional service imposed pursuant to law).
| ||||||
2 | (f) The Department shall establish by rule the extent to | ||||||
3 | which other
employee benefits will continue for persons in | ||||||
4 | non-pay status or who are
not in active service.
| ||||||
5 | (g) The State shall not pay the cost of the basic | ||||||
6 | non-contributory
group life insurance, program of health | ||||||
7 | benefits and other employee benefits
for members who are | ||||||
8 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
9 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
10 | survivors shall be paid by the survivors or by the University | ||||||
11 | of Illinois
Cooperative Extension Service, or any combination | ||||||
12 | thereof.
However, the State shall pay the amount of the | ||||||
13 | reduction in the cost of
participation, if any, resulting from | ||||||
14 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
15 | the 91st General Assembly.
| ||||||
16 | (h) Those persons occupying positions with any department | ||||||
17 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
18 | of the Personnel Code
who are not considered employees under | ||||||
19 | this Act shall be given the option
of participating in the | ||||||
20 | programs of group life insurance, health benefits and
other | ||||||
21 | employee benefits. Such persons electing coverage may | ||||||
22 | participate only
by making payment equal to the amount normally | ||||||
23 | contributed by the State for
similarly situated employees. Such | ||||||
24 | amounts shall be determined by the
Director. Such payments and | ||||||
25 | coverage may be continued until such time as the
person becomes | ||||||
26 | an employee pursuant to this Act or such person's appointment |
| |||||||
| |||||||
1 | is
terminated.
| ||||||
2 | (i) Any unit of local government within the State of | ||||||
3 | Illinois
may apply to the Director to have its employees, | ||||||
4 | annuitants, and their
dependents provided group health | ||||||
5 | coverage under this Act on a non-insured
basis. To participate, | ||||||
6 | a unit of local government must agree to enroll
all of its | ||||||
7 | employees, who may select coverage under either the State group
| ||||||
8 | health benefits plan or a health maintenance organization that | ||||||
9 | has
contracted with the State to be available as a health care | ||||||
10 | provider for
employees as defined in this Act. A unit of local | ||||||
11 | government must remit the
entire cost of providing coverage | ||||||
12 | under the State group health benefits plan
or, for coverage | ||||||
13 | under a health maintenance organization, an amount determined
| ||||||
14 | by the Director based on an analysis of the sex, age, | ||||||
15 | geographic location, or
other relevant demographic variables | ||||||
16 | for its employees, except that the unit of
local government | ||||||
17 | shall not be required to enroll those of its employees who are
| ||||||
18 | covered spouses or dependents under this plan or another group | ||||||
19 | policy or plan
providing health benefits as long as (1) an | ||||||
20 | appropriate official from the unit
of local government attests | ||||||
21 | that each employee not enrolled is a covered spouse
or | ||||||
22 | dependent under this plan or another group policy or plan, and | ||||||
23 | (2) at least
50% of the employees are enrolled and the unit of | ||||||
24 | local government remits
the entire cost of providing coverage | ||||||
25 | to those employees, except that a
participating school district | ||||||
26 | must have enrolled at least 50% of its full-time
employees who |
| |||||||
| |||||||
1 | have not waived coverage under the district's group health
plan | ||||||
2 | by participating in a component of the district's cafeteria | ||||||
3 | plan. A
participating school district is not required to enroll | ||||||
4 | a full-time employee
who has waived coverage under the | ||||||
5 | district's health plan, provided that an
appropriate official | ||||||
6 | from the participating school district attests that the
| ||||||
7 | full-time employee has waived coverage by participating in a | ||||||
8 | component of the
district's cafeteria plan. For the purposes of | ||||||
9 | this subsection, "participating
school district" includes a | ||||||
10 | unit of local government whose primary purpose is
education as | ||||||
11 | defined by the Department's rules.
| ||||||
12 | Employees of a participating unit of local government who | ||||||
13 | are not enrolled
due to coverage under another group health | ||||||
14 | policy or plan may enroll in
the event of a qualifying change | ||||||
15 | in status, special enrollment, special
circumstance as defined | ||||||
16 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
17 | participating unit of local government may also elect to cover | ||||||
18 | its
annuitants. Dependent coverage shall be offered on an | ||||||
19 | optional basis, with the
costs paid by the unit of local | ||||||
20 | government, its employees, or some combination
of the two as | ||||||
21 | determined by the unit of local government. The unit of local
| ||||||
22 | government shall be responsible for timely collection and | ||||||
23 | transmission of
dependent premiums.
| ||||||
24 | The Director shall annually determine monthly rates of | ||||||
25 | payment, subject
to the following constraints:
| ||||||
26 | (1) In the first year of coverage, the rates shall be |
| |||||||
| |||||||
1 | equal to the
amount normally charged to State employees for | ||||||
2 | elected optional coverages
or for enrolled dependents | ||||||
3 | coverages or other contributory coverages, or
contributed | ||||||
4 | by the State for basic insurance coverages on behalf of its
| ||||||
5 | employees, adjusted for differences between State | ||||||
6 | employees and employees
of the local government in age, | ||||||
7 | sex, geographic location or other relevant
demographic | ||||||
8 | variables, plus an amount sufficient to pay for the | ||||||
9 | additional
administrative costs of providing coverage to | ||||||
10 | employees of the unit of
local government and their | ||||||
11 | dependents.
| ||||||
12 | (2) In subsequent years, a further adjustment shall be | ||||||
13 | made to reflect
the actual prior years' claims experience | ||||||
14 | of the employees of the unit of
local government.
| ||||||
15 | In the case of coverage of local government employees under | ||||||
16 | a health
maintenance organization, the Director shall annually | ||||||
17 | determine for each
participating unit of local government the | ||||||
18 | maximum monthly amount the unit
may contribute toward that | ||||||
19 | coverage, based on an analysis of (i) the age,
sex, geographic | ||||||
20 | location, and other relevant demographic variables of the
| ||||||
21 | unit's employees and (ii) the cost to cover those employees | ||||||
22 | under the State
group health benefits plan. The Director may | ||||||
23 | similarly determine the
maximum monthly amount each unit of | ||||||
24 | local government may contribute toward
coverage of its | ||||||
25 | employees' dependents under a health maintenance organization.
| ||||||
26 | Monthly payments by the unit of local government or its |
| |||||||
| |||||||
1 | employees for
group health benefits plan or health maintenance | ||||||
2 | organization coverage shall
be deposited in the Local | ||||||
3 | Government Health Insurance Reserve Fund.
| ||||||
4 | The Local Government Health Insurance Reserve Fund is | ||||||
5 | hereby created as a nonappropriated trust fund to be held | ||||||
6 | outside the State Treasury, with the State Treasurer as | ||||||
7 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
8 | shall be a continuing
fund not subject to fiscal year | ||||||
9 | limitations. The Local Government Health Insurance Reserve | ||||||
10 | Fund is not subject to administrative charges or charge-backs, | ||||||
11 | including but not limited to those authorized under Section 8h | ||||||
12 | of the State Finance Act. All revenues arising from the | ||||||
13 | administration of the health benefits program established | ||||||
14 | under this Section shall be deposited into the Local Government | ||||||
15 | Health Insurance Reserve Fund. Any interest earned on moneys in | ||||||
16 | the Local Government Health Insurance Reserve Fund shall be | ||||||
17 | deposited into the Fund. All expenditures from this Fund
shall | ||||||
18 | be used for payments for health care benefits for local | ||||||
19 | government and rehabilitation facility
employees, annuitants, | ||||||
20 | and dependents, and to reimburse the Department or
its | ||||||
21 | administrative service organization for all expenses incurred | ||||||
22 | in the
administration of benefits. No other State funds may be | ||||||
23 | used for these
purposes.
| ||||||
24 | A local government employer's participation or desire to | ||||||
25 | participate
in a program created under this subsection shall | ||||||
26 | not limit that employer's
duty to bargain with the |
| |||||||
| |||||||
1 | representative of any collective bargaining unit
of its | ||||||
2 | employees.
| ||||||
3 | (j) Any rehabilitation facility within the State of | ||||||
4 | Illinois may apply
to the Director to have its employees, | ||||||
5 | annuitants, and their eligible
dependents provided group | ||||||
6 | health coverage under this Act on a non-insured
basis. To | ||||||
7 | participate, a rehabilitation facility must agree to enroll all
| ||||||
8 | of its employees and remit the entire cost of providing such | ||||||
9 | coverage for
its employees, except that the rehabilitation | ||||||
10 | facility shall not be
required to enroll those of its employees | ||||||
11 | who are covered spouses or
dependents under this plan or | ||||||
12 | another group policy or plan providing health
benefits as long | ||||||
13 | as (1) an appropriate official from the rehabilitation
facility | ||||||
14 | attests that each employee not enrolled is a covered spouse or
| ||||||
15 | dependent under this plan or another group policy or plan, and | ||||||
16 | (2) at least
50% of the employees are enrolled and the | ||||||
17 | rehabilitation facility remits
the entire cost of providing | ||||||
18 | coverage to those employees. Employees of a
participating | ||||||
19 | rehabilitation facility who are not enrolled due to coverage
| ||||||
20 | under another group health policy or plan may enroll
in the | ||||||
21 | event of a qualifying change in status, special enrollment, | ||||||
22 | special
circumstance as defined by the Director, or during the | ||||||
23 | annual Benefit Choice
Period. A participating rehabilitation | ||||||
24 | facility may also elect
to cover its annuitants. Dependent | ||||||
25 | coverage shall be offered on an optional
basis, with the costs | ||||||
26 | paid by the rehabilitation facility, its employees, or
some |
| |||||||
| |||||||
1 | combination of the 2 as determined by the rehabilitation | ||||||
2 | facility. The
rehabilitation facility shall be responsible for | ||||||
3 | timely collection and
transmission of dependent premiums.
| ||||||
4 | The Director shall annually determine quarterly rates of | ||||||
5 | payment, subject
to the following constraints:
| ||||||
6 | (1) In the first year of coverage, the rates shall be | ||||||
7 | equal to the amount
normally charged to State employees for | ||||||
8 | elected optional coverages or for
enrolled dependents | ||||||
9 | coverages or other contributory coverages on behalf of
its | ||||||
10 | employees, adjusted for differences between State | ||||||
11 | employees and
employees of the rehabilitation facility in | ||||||
12 | age, sex, geographic location
or other relevant | ||||||
13 | demographic variables, plus an amount sufficient to pay
for | ||||||
14 | the additional administrative costs of providing coverage | ||||||
15 | to employees
of the rehabilitation facility and their | ||||||
16 | dependents.
| ||||||
17 | (2) In subsequent years, a further adjustment shall be | ||||||
18 | made to reflect
the actual prior years' claims experience | ||||||
19 | of the employees of the
rehabilitation facility.
| ||||||
20 | Monthly payments by the rehabilitation facility or its | ||||||
21 | employees for
group health benefits shall be deposited in the | ||||||
22 | Local Government Health
Insurance Reserve Fund.
| ||||||
23 | (k) Any domestic violence shelter or service within the | ||||||
24 | State of Illinois
may apply to the Director to have its | ||||||
25 | employees, annuitants, and their
dependents provided group | ||||||
26 | health coverage under this Act on a non-insured
basis. To |
| |||||||
| |||||||
1 | participate, a domestic violence shelter or service must agree | ||||||
2 | to
enroll all of its employees and pay the entire cost of | ||||||
3 | providing such coverage
for its employees. The domestic | ||||||
4 | violence shelter shall not be required to enroll those of its | ||||||
5 | employees who are covered spouses or dependents under this plan | ||||||
6 | or another group policy or plan providing health benefits as | ||||||
7 | long as (1) an appropriate official from the domestic violence | ||||||
8 | shelter attests that each employee not enrolled is a covered | ||||||
9 | spouse or dependent under this plan or another group policy or | ||||||
10 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
11 | domestic violence shelter remits the entire cost of providing | ||||||
12 | coverage to those employees. Employees of a participating | ||||||
13 | domestic violence shelter who are not enrolled due to coverage | ||||||
14 | under another group health policy or plan may enroll in the | ||||||
15 | event of a qualifying change in status, special enrollment, or | ||||||
16 | special circumstance as defined by the Director or during the | ||||||
17 | annual Benefit Choice Period. A participating domestic | ||||||
18 | violence shelter may also elect
to cover its annuitants. | ||||||
19 | Dependent coverage shall be offered on an optional
basis, with
| ||||||
20 | employees, or some combination of the 2 as determined by the | ||||||
21 | domestic violence
shelter or service. The domestic violence | ||||||
22 | shelter or service shall be
responsible for timely collection | ||||||
23 | and transmission of dependent premiums.
| ||||||
24 | The Director shall annually determine rates of payment,
| ||||||
25 | subject to the following constraints:
| ||||||
26 | (1) In the first year of coverage, the rates shall be |
| |||||||
| |||||||
1 | equal to the
amount normally charged to State employees for | ||||||
2 | elected optional coverages
or for enrolled dependents | ||||||
3 | coverages or other contributory coverages on
behalf of its | ||||||
4 | employees, adjusted for differences between State | ||||||
5 | employees and
employees of the domestic violence shelter or | ||||||
6 | service in age, sex, geographic
location or other relevant | ||||||
7 | demographic variables, plus an amount sufficient
to pay for | ||||||
8 | the additional administrative costs of providing coverage | ||||||
9 | to
employees of the domestic violence shelter or service | ||||||
10 | and their dependents.
| ||||||
11 | (2) In subsequent years, a further adjustment shall be | ||||||
12 | made to reflect
the actual prior years' claims experience | ||||||
13 | of the employees of the domestic
violence shelter or | ||||||
14 | service.
| ||||||
15 | Monthly payments by the domestic violence shelter or | ||||||
16 | service or its employees
for group health insurance shall be | ||||||
17 | deposited in the Local Government Health
Insurance Reserve | ||||||
18 | Fund.
| ||||||
19 | (l) A public community college or entity organized pursuant | ||||||
20 | to the
Public Community College Act may apply to the Director | ||||||
21 | initially to have
only annuitants not covered prior to July 1, | ||||||
22 | 1992 by the district's health
plan provided health coverage | ||||||
23 | under this Act on a non-insured basis. The
community college | ||||||
24 | must execute a 2-year contract to participate in the
Local | ||||||
25 | Government Health Plan.
Any annuitant may enroll in the event | ||||||
26 | of a qualifying change in status, special
enrollment, special |
| |||||||
| |||||||
1 | circumstance as defined by the Director, or during the
annual | ||||||
2 | Benefit Choice Period.
| ||||||
3 | The Director shall annually determine monthly rates of | ||||||
4 | payment subject to
the following constraints: for those | ||||||
5 | community colleges with annuitants
only enrolled, first year | ||||||
6 | rates shall be equal to the average cost to cover
claims for a | ||||||
7 | State member adjusted for demographics, Medicare
| ||||||
8 | participation, and other factors; and in the second year, a | ||||||
9 | further adjustment
of rates shall be made to reflect the actual | ||||||
10 | first year's claims experience
of the covered annuitants.
| ||||||
11 | (l-5) The provisions of subsection (l) become inoperative | ||||||
12 | on July 1, 1999.
| ||||||
13 | (m) The Director shall adopt any rules deemed necessary for
| ||||||
14 | implementation of this amendatory Act of 1989 (Public Act | ||||||
15 | 86-978).
| ||||||
16 | (n) Any child advocacy center within the State of Illinois | ||||||
17 | may apply to the Director to have its employees, annuitants, | ||||||
18 | and their dependents provided group health coverage under this | ||||||
19 | Act on a non-insured basis. To participate, a child advocacy | ||||||
20 | center must agree to enroll all of its employees and pay the | ||||||
21 | entire cost of providing coverage for its employees. The child
| ||||||
22 | advocacy center shall not be required to enroll those of its
| ||||||
23 | employees who are covered spouses or dependents under this plan
| ||||||
24 | or another group policy or plan providing health benefits as
| ||||||
25 | long as (1) an appropriate official from the child advocacy
| ||||||
26 | center attests that each employee not enrolled is a covered
|
| |||||||
| |||||||
1 | spouse or dependent under this plan or another group policy or
| ||||||
2 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
3 | child advocacy center remits the entire cost of providing | ||||||
4 | coverage to those employees. Employees of a participating child | ||||||
5 | advocacy center who are not enrolled due to coverage under | ||||||
6 | another group health policy or plan may enroll in the event of | ||||||
7 | a qualifying change in status, special enrollment, or special | ||||||
8 | circumstance as defined by the Director or during the annual | ||||||
9 | Benefit Choice Period. A participating child advocacy center | ||||||
10 | may also elect to cover its annuitants. Dependent coverage | ||||||
11 | shall be offered on an optional basis, with the costs paid by | ||||||
12 | the child advocacy center, its employees, or some combination | ||||||
13 | of the 2 as determined by the child advocacy center. The child | ||||||
14 | advocacy center shall be responsible for timely collection and | ||||||
15 | transmission of dependent premiums. | ||||||
16 | The Director shall annually determine rates of payment, | ||||||
17 | subject to the following constraints: | ||||||
18 | (1) In the first year of coverage, the rates shall be | ||||||
19 | equal to the amount normally charged to State employees for | ||||||
20 | elected optional coverages or for enrolled dependents | ||||||
21 | coverages or other contributory coverages on behalf of its | ||||||
22 | employees, adjusted for differences between State | ||||||
23 | employees and employees of the child advocacy center in | ||||||
24 | age, sex, geographic location, or other relevant | ||||||
25 | demographic variables, plus an amount sufficient to pay for | ||||||
26 | the additional administrative costs of providing coverage |
| |||||||
| |||||||
1 | to employees of the child advocacy center and their | ||||||
2 | dependents. | ||||||
3 | (2) In subsequent years, a further adjustment shall be | ||||||
4 | made to reflect the actual prior years' claims experience | ||||||
5 | of the employees of the child advocacy center. | ||||||
6 | Monthly payments by the child advocacy center or its | ||||||
7 | employees for group health insurance shall be deposited into | ||||||
8 | the Local Government Health Insurance Reserve Fund. | ||||||
9 | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
| ||||||
10 | Section 10. The Illinois Finance Authority Act is amended | ||||||
11 | by changing Section 801-40 as follows:
| ||||||
12 | (20 ILCS 3501/801-40)
| ||||||
13 | Sec. 801-40. In addition to the powers otherwise authorized | ||||||
14 | by law and in
addition to the foregoing general corporate | ||||||
15 | powers, the Authority shall also
have the following additional | ||||||
16 | specific powers to be exercised in furtherance of
the purposes | ||||||
17 | of this Act.
| ||||||
18 | (a) The Authority shall have power (i) to accept grants, | ||||||
19 | loans or
appropriations from the federal government or the | ||||||
20 | State, or any agency or
instrumentality thereof, to be used for | ||||||
21 | the operating expenses of the
Authority,
or for any purposes of | ||||||
22 | the Authority, including the making of direct loans of
such | ||||||
23 | funds with respect to projects, and (ii) to enter into any | ||||||
24 | agreement with
the federal government or the State, or any |
| |||||||
| |||||||
1 | agency or instrumentality thereof,
in relationship to such | ||||||
2 | grants, loans or appropriations.
| ||||||
3 | (b) The Authority shall have power to procure and enter | ||||||
4 | into contracts for
any
type of insurance and indemnity | ||||||
5 | agreements covering loss or damage to property
from any cause, | ||||||
6 | including loss of use and occupancy, or covering any other
| ||||||
7 | insurable risk.
| ||||||
8 | (c) The Authority shall have the continuing power to issue | ||||||
9 | bonds for its
corporate purposes. Bonds may be issued by the | ||||||
10 | Authority in one or more series
and may provide for the payment | ||||||
11 | of any interest deemed necessary on such bonds,
of the costs of | ||||||
12 | issuance of such bonds, of any premium on any insurance, or of
| ||||||
13 | the cost of any guarantees, letters of credit or other similar | ||||||
14 | documents, may
provide for the funding of the reserves deemed | ||||||
15 | necessary in connection with
such bonds, and may provide for | ||||||
16 | the refunding or advance refunding of any bonds
or
for accounts | ||||||
17 | deemed necessary in connection with any purpose of the | ||||||
18 | Authority.
The bonds may bear interest payable at any time or | ||||||
19 | times and at any rate or
rates, notwithstanding any other | ||||||
20 | provision of law to the contrary, and such
rate or rates may be | ||||||
21 | established by an index or formula which may be
implemented or
| ||||||
22 | established by persons appointed or retained therefor by the | ||||||
23 | Authority, or may
bear no interest or may bear interest payable | ||||||
24 | at maturity or upon redemption
prior to maturity, may bear such | ||||||
25 | date or dates, may be payable at such time or
times and at such | ||||||
26 | place or places, may mature at any time or times not later
than |
| |||||||
| |||||||
1 | 40 years from the date of issuance, may be sold at public or | ||||||
2 | private sale
at such time or times and at such price or prices, | ||||||
3 | may be secured by such
pledges, reserves, guarantees, letters | ||||||
4 | of credit, insurance contracts or other
similar credit support | ||||||
5 | or liquidity instruments, may be executed in such
manner, may | ||||||
6 | be subject to redemption prior to maturity, may provide for the
| ||||||
7 | registration of the bonds, and may be subject to such other | ||||||
8 | terms and
conditions all as may
be provided by the resolution | ||||||
9 | or indenture authorizing the issuance of such
bonds. The holder | ||||||
10 | or holders of any bonds issued by the Authority may bring
suits | ||||||
11 | at law or proceedings in equity to compel the performance and | ||||||
12 | observance
by any person or by the Authority or any of its | ||||||
13 | agents or employees of any
contract or covenant made with the | ||||||
14 | holders of such bonds and to compel such
person or the | ||||||
15 | Authority and any of its agents or employees to perform any
| ||||||
16 | duties
required to be performed for the benefit of the holders | ||||||
17 | of any such bonds by
the provision of the resolution | ||||||
18 | authorizing their issuance, and to enjoin such
person or the | ||||||
19 | Authority and any of its agents or employees from taking any
| ||||||
20 | action in conflict with any such contract or covenant.
| ||||||
21 | Notwithstanding the form and tenor of any such bonds and in the | ||||||
22 | absence of any
express recital on the face thereof that it is | ||||||
23 | non-negotiable, all such bonds
shall be negotiable | ||||||
24 | instruments. Pending the preparation and execution of any
such | ||||||
25 | bonds, temporary bonds may be issued as provided by the | ||||||
26 | resolution.
The bonds shall be sold by the Authority in such |
| |||||||
| |||||||
1 | manner as it shall determine.
The bonds may be secured as | ||||||
2 | provided in the authorizing resolution by the
receipts, | ||||||
3 | revenues, income and other available funds of the Authority and | ||||||
4 | by
any amounts derived by the Authority from the loan agreement | ||||||
5 | or lease agreement
with respect to the project or projects; and | ||||||
6 | bonds may be issued as general
obligations of the Authority | ||||||
7 | payable from such revenues, funds and obligations
of the | ||||||
8 | Authority as the bond resolution shall provide, or may be | ||||||
9 | issued as
limited obligations with a claim for payment solely | ||||||
10 | from such revenues, funds
and obligations as the bond | ||||||
11 | resolution shall provide. The Authority may grant a
specific | ||||||
12 | pledge or assignment of and lien on or security interest in | ||||||
13 | such
rights, revenues, income, or amounts and may grant a | ||||||
14 | specific pledge or
assignment of and lien on or security | ||||||
15 | interest in any reserves, funds or
accounts established in the | ||||||
16 | resolution authorizing the issuance of bonds. Any
such pledge, | ||||||
17 | assignment, lien or security interest for the benefit of the
| ||||||
18 | holders of the Authority's bonds shall be valid and binding | ||||||
19 | from the time the
bonds are issued without any physical | ||||||
20 | delivery or further act, and shall be
valid and binding as | ||||||
21 | against and prior to the claims of all other parties
having | ||||||
22 | claims against the Authority or any other person irrespective | ||||||
23 | of whether
the
other parties have notice of the pledge, | ||||||
24 | assignment, lien or security interest.
As evidence of such | ||||||
25 | pledge, assignment, lien and security interest, the
Authority | ||||||
26 | may execute and deliver a mortgage, trust agreement, indenture |
| |||||||
| |||||||
1 | or
security agreement or an assignment thereof.
A remedy for | ||||||
2 | any breach or default of the terms of any such agreement by the
| ||||||
3 | Authority may be by mandamus proceedings in any court of | ||||||
4 | competent jurisdiction
to compel the performance and | ||||||
5 | compliance therewith, but the agreement may
prescribe by whom | ||||||
6 | or on whose behalf such action may be instituted.
It is | ||||||
7 | expressly understood that the Authority may, but need not, | ||||||
8 | acquire title
to any project with respect to which it exercises | ||||||
9 | its authority.
| ||||||
10 | (c-5) The Authority shall have the power to issue State | ||||||
11 | Pension Obligation Acceleration Bonds if in any fiscal year the | ||||||
12 | amount appropriated for all accelerated pension benefit | ||||||
13 | payments is less than the amount required for those payments. | ||||||
14 | The proceeds from the State Pension Obligation Acceleration | ||||||
15 | Bonds issued under this subsection may only be used to pay for | ||||||
16 | accelerated pension benefit payments for the fiscal year in | ||||||
17 | which the State Pension Obligation Acceleration Bonds are | ||||||
18 | issued. | ||||||
19 | The Authority shall not
have outstanding at any one time | ||||||
20 | State Pension Obligation Acceleration Bonds for any of the | ||||||
21 | purposes
of this subsection in an aggregate principal amount | ||||||
22 | exceeding
$250,000,000, excluding bonds issued to refund | ||||||
23 | outstanding
State Pension Obligation Acceleration Bonds. | ||||||
24 | (d) With respect to the powers granted by this Act, the | ||||||
25 | Authority may adopt
rules and regulations prescribing the | ||||||
26 | procedures by which persons may apply for
assistance under this |
| |||||||
| |||||||
1 | Act. Nothing herein shall be deemed to preclude the
Authority, | ||||||
2 | prior to the filing of any formal application, from conducting
| ||||||
3 | preliminary discussions and investigations with respect to the | ||||||
4 | subject matter
of any prospective application.
| ||||||
5 | (e) The Authority shall have power to acquire by purchase, | ||||||
6 | lease, gift or
otherwise any property or rights therein from | ||||||
7 | any person useful for its
purposes, whether improved for the | ||||||
8 | purposes of any prospective project, or
unimproved. The | ||||||
9 | Authority may also accept any donation of funds for its
| ||||||
10 | purposes from any such source. The Authority shall have no | ||||||
11 | independent power of
condemnation but may acquire any property | ||||||
12 | or rights therein obtained upon
condemnation by any other | ||||||
13 | authority, governmental entity or unit of local
government with | ||||||
14 | such power.
| ||||||
15 | (f) The Authority shall have power to develop, construct | ||||||
16 | and improve either
under its own direction, or through | ||||||
17 | collaboration with any approved applicant,
or to acquire | ||||||
18 | through purchase or otherwise, any project, using for such
| ||||||
19 | purpose the proceeds derived from the sale of its bonds or from | ||||||
20 | governmental
loans or
grants, and to hold title in the name of | ||||||
21 | the Authority to such projects.
| ||||||
22 | (g) The Authority shall have power to lease pursuant to a | ||||||
23 | lease agreement
any
project so developed and constructed or | ||||||
24 | acquired to the approved tenant on such
terms and conditions as | ||||||
25 | may be appropriate to further the purposes of this Act
and to | ||||||
26 | maintain the credit of the Authority. Any such lease may |
| |||||||
| |||||||
1 | provide for
either the Authority or the approved tenant to | ||||||
2 | assume initially, in whole or in
part, the costs of | ||||||
3 | maintenance, repair and improvements during the leasehold
| ||||||
4 | period. In no case, however, shall the total rentals from any | ||||||
5 | project during
any initial leasehold period or the total loan | ||||||
6 | repayments to be made pursuant
to any loan agreement, be less | ||||||
7 | than an amount necessary to return over such
lease
or loan | ||||||
8 | period (1) all costs incurred in connection with the | ||||||
9 | development,
construction, acquisition or improvement of the | ||||||
10 | project and for repair,
maintenance and improvements thereto | ||||||
11 | during the period of the lease or loan;
provided, however, that | ||||||
12 | the rentals or loan repayments need not include costs
met | ||||||
13 | through the use of funds other than those obtained by the | ||||||
14 | Authority through
the issuance of its bonds or governmental | ||||||
15 | loans; (2) a reasonable percentage
additive to be agreed upon | ||||||
16 | by the Authority and the borrower or tenant to cover
a properly | ||||||
17 | allocable portion of the Authority's general expenses, | ||||||
18 | including,
but not limited to, administrative expenses, | ||||||
19 | salaries and general insurance,
and
(3) an amount sufficient to | ||||||
20 | pay when due all principal of, interest and
premium, if
any on, | ||||||
21 | any bonds issued by the Authority with respect to the project. | ||||||
22 | The
portion of total rentals payable under clause (3) of this | ||||||
23 | subsection (g) shall
be deposited in such special accounts, | ||||||
24 | including all sinking funds, acquisition
or construction | ||||||
25 | funds, debt service and other funds as provided by any
| ||||||
26 | resolution, mortgage or trust agreement of the Authority |
| |||||||
| |||||||
1 | pursuant to which any
bond is issued.
| ||||||
2 | (h) The Authority has the power, upon the termination of | ||||||
3 | any leasehold
period
of any project, to sell or lease for a | ||||||
4 | further term or terms such project on
such terms and conditions | ||||||
5 | as the Authority shall deem reasonable and consistent
with the | ||||||
6 | purposes of the Act. The net proceeds from all such sales and | ||||||
7 | the
revenues or income from such leases shall be used to | ||||||
8 | satisfy any indebtedness
of
the Authority with respect to such | ||||||
9 | project and any balance may be used to pay
any expenses of the | ||||||
10 | Authority or be used for the further development,
construction, | ||||||
11 | acquisition or improvement of projects.
In the event any | ||||||
12 | project is vacated by a tenant prior to the termination of the
| ||||||
13 | initial leasehold period, the Authority shall sell or lease the | ||||||
14 | facilities of
the project on the most advantageous terms | ||||||
15 | available. The net proceeds of any
such disposition shall be | ||||||
16 | treated in the same manner as the proceeds from sales
or the | ||||||
17 | revenues or income from leases subsequent to the termination of | ||||||
18 | any
initial leasehold period.
| ||||||
19 | (i) The Authority shall have the power to make loans to | ||||||
20 | persons to finance a
project, to enter into loan agreements | ||||||
21 | with respect thereto, and to accept
guarantees from persons of | ||||||
22 | its loans or the resultant evidences of obligations
of the | ||||||
23 | Authority.
| ||||||
24 | (j) The Authority may fix, determine, charge and collect | ||||||
25 | any premiums, fees,
charges, costs and expenses, including, | ||||||
26 | without limitation, any application
fees, commitment fees, |
| |||||||
| |||||||
1 | program fees, financing charges or publication fees from
any | ||||||
2 | person in connection with its activities under this Act.
| ||||||
3 | (k) In addition to the funds established as provided | ||||||
4 | herein, the Authority
shall have the power to create and | ||||||
5 | establish such reserve funds and accounts as
may be necessary | ||||||
6 | or desirable to accomplish its purposes under this Act and to
| ||||||
7 | deposit its available monies into the funds and accounts.
| ||||||
8 | (l) At the request of the governing body of any unit of | ||||||
9 | local government,
the
Authority is authorized to market such | ||||||
10 | local government's revenue bond
offerings by preparing bond | ||||||
11 | issues for sale, advertising for sealed bids,
receiving bids
at | ||||||
12 | its offices, making the award to the bidder that offers the | ||||||
13 | most favorable
terms or arranging for negotiated placements or | ||||||
14 | underwritings of such
securities. The Authority may, at its | ||||||
15 | discretion, offer for concurrent sale the
revenue bonds of | ||||||
16 | several local governments. Sales by the Authority of revenue
| ||||||
17 | bonds under this Section shall in no way imply State guarantee | ||||||
18 | of such debt
issue. The Authority may require such financial | ||||||
19 | information from participating
local governments as it deems | ||||||
20 | necessary in order to carry out the purposes of
this subsection | ||||||
21 | (1).
| ||||||
22 | (m) The Authority may make grants to any county to which | ||||||
23 | Division 5-37 of
the
Counties Code is applicable to assist in | ||||||
24 | the financing of capital development,
construction and | ||||||
25 | renovation of new or existing facilities for hospitals and
| ||||||
26 | health care facilities under that Act. Such grants may only be |
| |||||||
| |||||||
1 | made from funds
appropriated for such purposes from the Build | ||||||
2 | Illinois Bond Fund.
| ||||||
3 | (n) The Authority may establish an urban development action | ||||||
4 | grant program
for
the purpose of assisting municipalities in | ||||||
5 | Illinois which are experiencing
severe economic distress to | ||||||
6 | help stimulate economic development activities
needed to aid in | ||||||
7 | economic recovery. The Authority shall determine the types of
| ||||||
8 | activities and projects for which the urban development action | ||||||
9 | grants may be
used, provided that such projects and activities | ||||||
10 | are broadly defined to include
all reasonable projects and | ||||||
11 | activities the primary objectives of which are the
development | ||||||
12 | of viable urban communities, including decent housing and a
| ||||||
13 | suitable living environment, and expansion of economic | ||||||
14 | opportunity, principally
for
persons of low and moderate | ||||||
15 | incomes. The Authority shall enter into grant
agreements from | ||||||
16 | monies appropriated for such purposes from the Build Illinois
| ||||||
17 | Bond Fund. The Authority shall monitor the
use of the grants, | ||||||
18 | and shall provide for audits of the funds as well as
recovery | ||||||
19 | by the Authority of any funds determined to have been spent in
| ||||||
20 | violation of this
subsection (n) or any rule or regulation | ||||||
21 | promulgated hereunder. The Authority
shall provide technical | ||||||
22 | assistance with regard to the effective use of the
urban | ||||||
23 | development action grants. The Authority shall file an annual | ||||||
24 | report to
the
General Assembly concerning the progress of the | ||||||
25 | grant program.
| ||||||
26 | (o) The Authority may establish a Housing Partnership |
| |||||||
| |||||||
1 | Program whereby the
Authority provides zero-interest loans to | ||||||
2 | municipalities for the purpose of
assisting in the financing of | ||||||
3 | projects for the rehabilitation of affordable
multi-family | ||||||
4 | housing for low and moderate income residents. The Authority | ||||||
5 | may
provide such loans only upon a municipality's providing | ||||||
6 | evidence that it has
obtained private funding for the | ||||||
7 | rehabilitation project. The Authority shall
provide 3 State | ||||||
8 | dollars for every 7 dollars obtained by the municipality from
| ||||||
9 | sources other than the State of Illinois. The loans shall be | ||||||
10 | made from monies
appropriated for such purpose from the Build | ||||||
11 | Illinois Bond Fund. The total amount of loans available under | ||||||
12 | the Housing
Partnership Program shall not exceed $30,000,000. | ||||||
13 | State loan monies under this
subsection shall be used only for | ||||||
14 | the acquisition and rehabilitation of
existing
buildings | ||||||
15 | containing 4 or more dwelling units. The terms of any loan made | ||||||
16 | by
the municipality under this subsection shall require | ||||||
17 | repayment of the loan to
the municipality upon any sale or | ||||||
18 | other transfer of the project.
| ||||||
19 | (p) The Authority may award grants to universities and | ||||||
20 | research
institutions,
research consortiums and other | ||||||
21 | not-for-profit entities for the purposes of:
remodeling or | ||||||
22 | otherwise physically altering existing laboratory or research
| ||||||
23 | facilities, expansion or physical additions to existing | ||||||
24 | laboratory or research
facilities, construction of new | ||||||
25 | laboratory or research facilities or
acquisition of modern | ||||||
26 | equipment to support laboratory or research operations
|
| |||||||
| |||||||
1 | provided that
such grants (i) be used solely in support of | ||||||
2 | project and equipment acquisitions
which enhance technology | ||||||
3 | transfer, and (ii) not constitute more than 60 percent
of the | ||||||
4 | total project or acquisition cost.
| ||||||
5 | (q) Grants may be awarded by the Authority to units of | ||||||
6 | local government for
the
purpose of developing the appropriate | ||||||
7 | infrastructure or defraying other costs
to
the local government | ||||||
8 | in support of laboratory or research facilities provided
that | ||||||
9 | such grants may not exceed 40% of the cost to the unit of local
| ||||||
10 | government.
| ||||||
11 | (r) The Authority may establish a Direct Loan Program to | ||||||
12 | make loans to
individuals, partnerships or corporations for the | ||||||
13 | purpose of an industrial
project, as defined in
Section 801-10 | ||||||
14 | of this Act. For the purposes of such program
and not by way of | ||||||
15 | limitation on any other program of the Authority, the
Authority | ||||||
16 | shall have the power to issue bonds, notes, or other evidences | ||||||
17 | of
indebtedness including commercial paper for purposes of | ||||||
18 | providing a fund of
capital from which it may make such loans. | ||||||
19 | The Authority shall have the power
to use any appropriations | ||||||
20 | from the State made especially for the Authority's
Direct Loan | ||||||
21 | Program for additional capital to make such loans or for the
| ||||||
22 | purposes of reserve funds or pledged funds which secure the | ||||||
23 | Authority's
obligations of repayment of any bond, note or other | ||||||
24 | form of indebtedness
established for the purpose of providing | ||||||
25 | capital for which it intends to make
such loans under the | ||||||
26 | Direct Loan Program. For the purpose of obtaining such
capital, |
| |||||||
| |||||||
1 | the Authority may also enter into agreements with financial
| ||||||
2 | institutions and other persons for the purpose of selling loans | ||||||
3 | and developing
a secondary market for such loans.
Loans made | ||||||
4 | under the Direct Loan Program may be in an amount not to exceed
| ||||||
5 | $300,000 and shall be made for a portion of an industrial | ||||||
6 | project which does
not exceed 50% of the total project. No loan | ||||||
7 | may be made by the Authority
unless
approved by the affirmative | ||||||
8 | vote of at least 8 members of the board. The
Authority shall | ||||||
9 | establish procedures and publish rules which shall provide for
| ||||||
10 | the submission, review, and analysis of each direct loan | ||||||
11 | application and which
shall preserve the ability of each board | ||||||
12 | member to reach an individual business
judgment regarding the | ||||||
13 | propriety of making each direct loan. The collective
discretion | ||||||
14 | of the board to approve or disapprove each loan shall be
| ||||||
15 | unencumbered.
The Authority may establish and collect such fees | ||||||
16 | and charges, determine and
enforce such terms and conditions, | ||||||
17 | and charge such interest rates as it
determines to be necessary | ||||||
18 | and appropriate to the successful administration of
the Direct | ||||||
19 | Loan Program. The Authority may require such interests in | ||||||
20 | collateral
and such guarantees as it determines are necessary | ||||||
21 | to project the Authority's
interest in the repayment of the | ||||||
22 | principal and interest of each loan made under
the Direct Loan | ||||||
23 | Program.
| ||||||
24 | (s) The Authority may guarantee private loans to third | ||||||
25 | parties up to a
specified dollar amount in order to promote | ||||||
26 | economic development in this State.
|
| |||||||
| |||||||
1 | (t) The Authority may adopt rules and regulations as may be | ||||||
2 | necessary or
advisable to implement the powers conferred by | ||||||
3 | this Act.
| ||||||
4 | (u) The Authority shall have the power to issue bonds, | ||||||
5 | notes or other
evidences
of indebtedness, which may be used to | ||||||
6 | make loans to units of local government
which are authorized to | ||||||
7 | enter into loan agreements and other documents and to
issue | ||||||
8 | bonds, notes and other evidences of indebtedness for the | ||||||
9 | purpose of
financing the protection of storm sewer outfalls, | ||||||
10 | the construction of adequate
storm sewer outfalls, and the | ||||||
11 | provision for flood protection of sanitary sewage
treatment | ||||||
12 | plans, in counties that have established a stormwater | ||||||
13 | management
planning committee in accordance with
Section | ||||||
14 | 5-1062 of the Counties Code. Any
such loan shall be made by the | ||||||
15 | Authority pursuant to the provisions of
Section
820-5 to 820-60 | ||||||
16 | of this Act. The unit of local government shall pay back to the
| ||||||
17 | Authority the principal amount of the loan, plus annual | ||||||
18 | interest as determined
by the Authority. The Authority shall | ||||||
19 | have the power, subject to appropriations
by the General | ||||||
20 | Assembly, to subsidize or buy down a portion of the interest on
| ||||||
21 | such loans, up to 4% per annum.
| ||||||
22 | (v) The Authority may accept security interests as provided | ||||||
23 | in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
| ||||||
24 | (w) Moral Obligation. In the event that the Authority | ||||||
25 | determines that monies
of the Authority will not be sufficient | ||||||
26 | for the payment of the principal of and
interest on its bonds |
| |||||||
| |||||||
1 | during the next State fiscal year, the Chairperson, as
soon as | ||||||
2 | practicable, shall certify to the Governor the amount required | ||||||
3 | by the
Authority to enable it to pay such principal of and | ||||||
4 | interest on the bonds. The
Governor shall submit the amount so | ||||||
5 | certified to the General Assembly as soon
as
practicable, but | ||||||
6 | no later than the end of the current State fiscal year. This
| ||||||
7 | subsection shall apply only to any bonds or notes as to which | ||||||
8 | the Authority
shall have determined, in the resolution | ||||||
9 | authorizing the issuance of the bonds
or notes, that this | ||||||
10 | subsection shall apply. Whenever the Authority makes such a
| ||||||
11 | determination, that fact shall be plainly stated on the face of | ||||||
12 | the bonds or
notes and that fact shall also be reported to the | ||||||
13 | Governor. In the event of a
withdrawal of moneys from a reserve | ||||||
14 | fund established with respect to any issue
or issues of bonds | ||||||
15 | of the Authority to pay principal or interest on those
bonds,
| ||||||
16 | the Chairperson of the Authority, as soon as practicable, shall | ||||||
17 | certify to the
Governor the amount required to restore the | ||||||
18 | reserve fund to the level required
in the resolution or | ||||||
19 | indenture securing those bonds. The Governor shall submit
the | ||||||
20 | amount so certified to the General Assembly as soon as | ||||||
21 | practicable, but no
later than the end of the current State | ||||||
22 | fiscal year. The Authority shall obtain
written approval from | ||||||
23 | the Governor for any bonds and notes to be issued under
this | ||||||
24 | Section.
In addition to any other bonds authorized to be issued | ||||||
25 | under
Sections 825-60, 825-65(e), 830-25 and 845-5, the | ||||||
26 | principal amount of Authority
bonds outstanding
issued under |
| |||||||
| |||||||
1 | this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS | ||||||
2 | 360/2-6(c), which have
been
assumed by the Authority, shall not | ||||||
3 | exceed $150,000,000. This subsection (w) shall in no way be | ||||||
4 | applied to any bonds issued by the Authority on behalf of the | ||||||
5 | Illinois Power Agency under Section 825-90 of this Act.
| ||||||
6 | (x) The Authority may enter into agreements or contracts | ||||||
7 | with any person necessary or appropriate to place the payment | ||||||
8 | obligations of the Authority under any of its bonds in whole or | ||||||
9 | in part on any interest rate basis, cash flow basis, or other | ||||||
10 | basis desired by the Authority, including without limitation | ||||||
11 | agreements or contracts commonly known as "interest rate swap | ||||||
12 | agreements", "forward payment conversion agreements", and | ||||||
13 | "futures", or agreements or contracts to exchange cash flows or | ||||||
14 | a series of payments, or agreements or contracts, including | ||||||
15 | without limitation agreements or contracts commonly known as | ||||||
16 | "options", "puts", or "calls", to hedge payment, rate spread, | ||||||
17 | or similar exposure; provided that any such agreement or | ||||||
18 | contract shall not constitute an obligation for borrowed money | ||||||
19 | and shall not be taken into account under Section 845-5 of this | ||||||
20 | Act or any other debt limit of the Authority or the State of | ||||||
21 | Illinois.
| ||||||
22 | (y) The Authority shall publish summaries of projects and | ||||||
23 | actions approved by the members of the Authority on its | ||||||
24 | website. These summaries shall include, but not be limited to, | ||||||
25 | information regarding the: | ||||||
26 | (1) project; |
| |||||||
| |||||||
1 | (2) Board's action or actions; | ||||||
2 | (3) purpose of the project; | ||||||
3 | (4) Authority's program and contribution; | ||||||
4 | (5) volume cap; | ||||||
5 | (6) jobs retained; | ||||||
6 | (7) projected new jobs; | ||||||
7 | (8) construction jobs created; | ||||||
8 | (9) estimated sources and uses of funds; | ||||||
9 | (10) financing summary; | ||||||
10 | (11) project summary; | ||||||
11 | (12) business summary; | ||||||
12 | (13) ownership or economic disclosure statement; | ||||||
13 | (14) professional and financial information; | ||||||
14 | (15) service area; and | ||||||
15 | (16) legislative district. | ||||||
16 | The disclosure of information pursuant to this subsection | ||||||
17 | shall comply with the Freedom of Information Act. | ||||||
18 | (Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07; | ||||||
19 | 95-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of | ||||||
20 | P.A. 96-793 for the effective date of changes made by P.A. | ||||||
21 | 96-795) .)
| ||||||
22 | Section 15. The State Finance Act is amended by adding | ||||||
23 | Section 5.878 as follows: | ||||||
24 | (30 ILCS 105/5.878 new) |
| |||||||
| |||||||
1 | Sec. 5.878. The State Pension Obligation Acceleration Bond | ||||||
2 | Fund. | ||||||
3 | Section 20. The General Obligation Bond Act is amended by | ||||||
4 | changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding | ||||||
5 | Section 7.6 as follows: | ||||||
6 | (30 ILCS 330/2) (from Ch. 127, par. 652) | ||||||
7 | Sec. 2. Authorization for Bonds. The State of Illinois is | ||||||
8 | authorized to
issue, sell and provide for the retirement of | ||||||
9 | General Obligation Bonds of
the State of Illinois for the | ||||||
10 | categories and specific purposes expressed in
Sections 2 | ||||||
11 | through 8 of this Act, in the total amount of $50,167,925,743 | ||||||
12 | $49,917,925,743 . | ||||||
13 | The bonds authorized in this Section 2 and in Section 16 of | ||||||
14 | this Act are
herein called "Bonds". | ||||||
15 | Of the total amount of Bonds authorized in this Act, up to | ||||||
16 | $2,200,000,000
in aggregate original principal amount may be | ||||||
17 | issued and sold in accordance
with the Baccalaureate Savings | ||||||
18 | Act in the form of General Obligation
College Savings Bonds. | ||||||
19 | Of the total amount of Bonds authorized in this Act, up to | ||||||
20 | $300,000,000 in
aggregate original principal amount may be | ||||||
21 | issued and sold in accordance
with the Retirement Savings Act | ||||||
22 | in the form of General Obligation
Retirement Savings Bonds. | ||||||
23 | Of the total amount of Bonds authorized in this Act, the | ||||||
24 | additional
$10,000,000,000 authorized by Public Act 93-2, the |
| |||||||
| |||||||
1 | $3,466,000,000 authorized by Public Act 96-43, and the | ||||||
2 | $4,096,348,300 authorized by Public Act 96-1497 shall be used | ||||||
3 | solely as provided in Section 7.2. | ||||||
4 | Of the total amount of Bonds authorized in this Act, the | ||||||
5 | additional $250,000,000 authorized by this amendatory Act of | ||||||
6 | the 100th General Assembly shall be used solely as provided in | ||||||
7 | Section 7.6. | ||||||
8 | The issuance and sale of Bonds pursuant to the General | ||||||
9 | Obligation Bond
Act is an economical and efficient method of | ||||||
10 | financing the long-term capital needs of
the State. This Act | ||||||
11 | will permit the issuance of a multi-purpose General
Obligation | ||||||
12 | Bond with uniform terms and features. This will not only lower
| ||||||
13 | the cost of registration but also reduce the overall cost of | ||||||
14 | issuing debt
by improving the marketability of Illinois General | ||||||
15 | Obligation Bonds. | ||||||
16 | (Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12; | ||||||
17 | 97-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff. | ||||||
18 | 8-16-13; 98-781, eff. 7-22-14.) | ||||||
19 | (30 ILCS 330/2.5) | ||||||
20 | Sec. 2.5. Limitation on issuance of Bonds. | ||||||
21 | (a) Except as provided in subsection (b), no Bonds may be | ||||||
22 | issued if, after the issuance, in the next State fiscal year | ||||||
23 | after the issuance of the Bonds, the amount of debt service | ||||||
24 | (including principal, whether payable at maturity or pursuant | ||||||
25 | to mandatory sinking fund installments, and interest) on all |
| |||||||
| |||||||
1 | then-outstanding Bonds, other than (i) Bonds authorized by this | ||||||
2 | amendatory Act of the 100th General Assembly, (ii) Bonds | ||||||
3 | authorized by Public Act 96-43 , and (iii) other than Bonds | ||||||
4 | authorized by Public Act 96-1497, would exceed 7% of the | ||||||
5 | aggregate appropriations from the general funds (which consist | ||||||
6 | of the General Revenue Fund, the Common School Fund, the | ||||||
7 | General Revenue Common School Special Account Fund, and the | ||||||
8 | Education Assistance Fund) and the Road Fund for the fiscal | ||||||
9 | year immediately prior to the fiscal year of the issuance. | ||||||
10 | (b) If the Comptroller and Treasurer each consent in | ||||||
11 | writing, Bonds may be issued even if the issuance does not | ||||||
12 | comply with subsection (a). In addition, $2,000,000,000 in | ||||||
13 | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | ||||||
14 | and $2,000,000,000 in Refunding Bonds under Section 16, may be | ||||||
15 | issued during State fiscal year 2017 without complying with | ||||||
16 | subsection (a).
| ||||||
17 | (Source: P.A. 99-523, eff. 6-30-16.) | ||||||
18 | (30 ILCS 330/7.6 new) | ||||||
19 | Sec. 7.6. State Pension Obligation Acceleration Bonds. | ||||||
20 | (a) As used in this Act, "State Pension Obligation | ||||||
21 | Acceleration Bonds" means Bonds authorized by this amendatory | ||||||
22 | Act of the 100th General Assembly and used for the purposes set | ||||||
23 | forth in subsection (c-5) of Section 801-40 of the Illinois | ||||||
24 | Finance Authority Act. | ||||||
25 | (b) State Pension Obligation Acceleration Bonds in the |
| |||||||
| |||||||
1 | amount of $250,000,000 are hereby authorized to be used for the | ||||||
2 | purposes set forth in subsection (c-5) of Section 801-40 of the | ||||||
3 | Illinois Finance Authority Act. | ||||||
4 | (c) The proceeds of State Pension Obligation Acceleration | ||||||
5 | Bonds authorized in subsection (b) of this Section, less the | ||||||
6 | amounts authorized in the Bond Sale Order to be directly paid | ||||||
7 | out for bond sale expenses under Section 8, shall be deposited | ||||||
8 | directly into the State Pension Obligation Acceleration Bond | ||||||
9 | Fund, and the Comptroller and the Treasurer shall, as soon as | ||||||
10 | practical, make payments as contemplated by subsection (c-5) of | ||||||
11 | Section 801-40 of the Illinois Finance Authority Act. | ||||||
12 | (d) There is created the State Pension Obligation | ||||||
13 | Acceleration Bond Fund as a special fund in the State Treasury. | ||||||
14 | Funds deposited in the State Pension Obligation Acceleration | ||||||
15 | Bond Fund may only be used for the purposes set forth in | ||||||
16 | subsection (c-5) of Section 801-40 of the Illinois Finance | ||||||
17 | Authority Act or for the payment of principal and interest due | ||||||
18 | on State Pension Obligation Acceleration Bonds.
| ||||||
19 | (30 ILCS 330/9) (from Ch. 127, par. 659)
| ||||||
20 | Sec. 9. Conditions for Issuance and Sale of Bonds - | ||||||
21 | Requirements for
Bonds. | ||||||
22 | (a) Except as otherwise provided in this subsection and | ||||||
23 | subsection (h) , Bonds shall be issued and sold from time to | ||||||
24 | time, in one or
more series, in such amounts and at such prices | ||||||
25 | as may be directed by the
Governor, upon recommendation by the |
| |||||||
| |||||||
1 | Director of the
Governor's Office of Management and Budget.
| ||||||
2 | Bonds shall be in such form (either coupon, registered or book | ||||||
3 | entry), in
such denominations, payable within 25 years from | ||||||
4 | their date, subject to such
terms of redemption with or without | ||||||
5 | premium, bear interest payable at
such times and at such fixed | ||||||
6 | or variable rate or rates, and be dated
as shall be fixed and | ||||||
7 | determined by the Director of
the
Governor's Office of | ||||||
8 | Management and Budget
in the order authorizing the issuance and | ||||||
9 | sale
of any series of Bonds, which order shall be approved by | ||||||
10 | the Governor
and is herein called a "Bond Sale Order"; provided | ||||||
11 | however, that interest
payable at fixed or variable rates shall | ||||||
12 | not exceed that permitted in the
Bond Authorization Act, as now | ||||||
13 | or hereafter amended. Bonds shall be
payable at such place or | ||||||
14 | places, within or without the State of Illinois, and
may be | ||||||
15 | made registrable as to either principal or as to both principal | ||||||
16 | and
interest, as shall be specified in the Bond Sale Order. | ||||||
17 | Bonds may be callable
or subject to purchase and retirement or | ||||||
18 | tender and remarketing as fixed
and determined in the Bond Sale | ||||||
19 | Order. Bonds, other than Bonds issued under Section 3 of this | ||||||
20 | Act for the costs associated with the purchase and | ||||||
21 | implementation of information technology, (i) except for | ||||||
22 | refunding Bonds satisfying the requirements of Section 16 of | ||||||
23 | this Act and sold during fiscal year 2009, 2010, 2011, or 2017 | ||||||
24 | must be issued with principal or mandatory redemption amounts | ||||||
25 | in equal amounts, with the first maturity issued occurring | ||||||
26 | within the fiscal year in which the Bonds are issued or within |
| |||||||
| |||||||
1 | the next succeeding fiscal year and (ii) must mature or be | ||||||
2 | subject to mandatory redemption each fiscal year thereafter up | ||||||
3 | to 25 years, except for refunding Bonds satisfying the | ||||||
4 | requirements of Section 16 of this Act and sold during fiscal | ||||||
5 | year 2009, 2010, or 2011 which must mature or be subject to | ||||||
6 | mandatory redemption each fiscal year thereafter up to 16 | ||||||
7 | years. Bonds issued under Section 3 of this Act for the costs | ||||||
8 | associated with the purchase and implementation of information | ||||||
9 | technology must be issued with principal or mandatory | ||||||
10 | redemption amounts in equal amounts, with the first maturity | ||||||
11 | issued occurring with the fiscal year in which the respective | ||||||
12 | bonds are issued or with the next succeeding fiscal year, with | ||||||
13 | the respective bonds issued maturing or subject to mandatory | ||||||
14 | redemption each fiscal year thereafter up to 10 years. | ||||||
15 | Notwithstanding any provision of this Act to the contrary, the | ||||||
16 | Bonds authorized by Public Act 96-43 shall be payable within 5 | ||||||
17 | years from their date and must be issued with principal or | ||||||
18 | mandatory redemption amounts in equal amounts, with payment of | ||||||
19 | principal or mandatory redemption beginning in the first fiscal | ||||||
20 | year following the fiscal year in which the Bonds are issued.
| ||||||
21 | Notwithstanding any provision of this Act to the contrary, | ||||||
22 | the Bonds authorized by Public Act 96-1497 shall be payable | ||||||
23 | within 8 years from their date and shall be issued with payment | ||||||
24 | of maturing principal or scheduled mandatory redemptions in | ||||||
25 | accordance with the following schedule, except the following | ||||||
26 | amounts shall be prorated if less than the total additional |
| |||||||
| |||||||
1 | amount of Bonds authorized by Public Act 96-1497 are issued: | ||||||
2 | Fiscal Year After Issuance Amount | ||||||
3 | 1-2 $0 | ||||||
4 | 3 $110,712,120 | ||||||
5 | 4 $332,136,360 | ||||||
6 | 5 $664,272,720 | ||||||
7 | 6-8 $996,409,080 | ||||||
8 | In the case of any series of Bonds bearing interest at a | ||||||
9 | variable interest
rate ("Variable Rate Bonds"), in lieu of | ||||||
10 | determining the rate or rates at which
such series of Variable | ||||||
11 | Rate Bonds shall bear interest and the price or prices
at which | ||||||
12 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
13 | (in the
event of purchase and subsequent resale), the Bond Sale | ||||||
14 | Order may provide that
such interest rates and prices may vary | ||||||
15 | from time to time depending on criteria
established in such | ||||||
16 | Bond Sale Order, which criteria may include, without
| ||||||
17 | limitation, references to indices or variations in interest | ||||||
18 | rates as may, in
the judgment of a remarketing agent, be | ||||||
19 | necessary to cause Variable Rate Bonds
of such series to be | ||||||
20 | remarketable from time to time at a price equal to their
| ||||||
21 | principal amount, and may provide for appointment of a bank, | ||||||
22 | trust company,
investment bank, or other financial institution | ||||||
23 | to serve as remarketing agent
in that connection.
The Bond Sale | ||||||
24 | Order may provide that alternative interest rates or provisions
| ||||||
25 | for establishing alternative interest rates, different | ||||||
26 | security or claim
priorities, or different call or amortization |
| |||||||
| |||||||
1 | provisions will apply during
such times as Variable Rate Bonds | ||||||
2 | of any series are held by a person providing
credit or | ||||||
3 | liquidity enhancement arrangements for such Bonds as | ||||||
4 | authorized in
subsection (b) of this Section.
The Bond Sale | ||||||
5 | Order may also provide for such variable interest rates to be
| ||||||
6 | established pursuant to a process generally known as an auction | ||||||
7 | rate process
and may provide for appointment of one or more | ||||||
8 | financial institutions to serve
as auction agents and | ||||||
9 | broker-dealers in connection with the establishment of
such | ||||||
10 | interest rates and the sale and remarketing of such Bonds.
| ||||||
11 | (b) In connection with the issuance of any series of Bonds, | ||||||
12 | the State may
enter into arrangements to provide additional | ||||||
13 | security and liquidity for such
Bonds, including, without | ||||||
14 | limitation, bond or interest rate insurance or
letters of | ||||||
15 | credit, lines of credit, bond purchase contracts, or other
| ||||||
16 | arrangements whereby funds are made available to retire or | ||||||
17 | purchase Bonds,
thereby assuring the ability of owners of the | ||||||
18 | Bonds to sell or redeem their
Bonds. The State may enter into | ||||||
19 | contracts and may agree to pay fees to persons
providing such | ||||||
20 | arrangements, but only under circumstances where the Director | ||||||
21 | of
the
Governor's Office of Management and Budget certifies | ||||||
22 | that he or she reasonably expects the total
interest paid or to | ||||||
23 | be paid on the Bonds, together with the fees for the
| ||||||
24 | arrangements (being treated as if interest), would not, taken | ||||||
25 | together, cause
the Bonds to bear interest, calculated to their | ||||||
26 | stated maturity, at a rate in
excess of the rate that the Bonds |
| |||||||
| |||||||
1 | would bear in the absence of such
arrangements.
| ||||||
2 | The State may, with respect to Bonds issued or anticipated | ||||||
3 | to be issued,
participate in and enter into arrangements with | ||||||
4 | respect to interest rate
protection or exchange agreements, | ||||||
5 | guarantees, or financial futures contracts
for the purpose of | ||||||
6 | limiting, reducing, or managing interest rate exposure.
The | ||||||
7 | authority granted under this paragraph, however, shall not | ||||||
8 | increase the principal amount of Bonds authorized to be issued | ||||||
9 | by law. The arrangements may be executed and delivered by the | ||||||
10 | Director
of the
Governor's Office of Management and Budget on | ||||||
11 | behalf of the State. Net payments for such
arrangements shall | ||||||
12 | constitute interest on the Bonds and shall be paid from the
| ||||||
13 | General Obligation Bond Retirement and Interest Fund. The | ||||||
14 | Director of the
Governor's Office of Management and Budget | ||||||
15 | shall at least annually certify to the Governor and
the
State | ||||||
16 | Comptroller his or her estimate of the amounts of such net | ||||||
17 | payments to
be included in the calculation of interest required | ||||||
18 | to be paid by the State.
| ||||||
19 | (c) Prior to the issuance of any Variable Rate Bonds | ||||||
20 | pursuant to
subsection (a), the Director of the
Governor's | ||||||
21 | Office of Management and Budget shall adopt an
interest rate | ||||||
22 | risk management policy providing that the amount of the State's
| ||||||
23 | variable rate exposure with respect to Bonds shall not exceed | ||||||
24 | 20%. This policy
shall remain in effect while any Bonds are | ||||||
25 | outstanding and the issuance of
Bonds
shall be subject to the | ||||||
26 | terms of such policy. The terms of this policy may be
amended |
| |||||||
| |||||||
1 | from time to time by the Director of the
Governor's Office of | ||||||
2 | Management and Budget but in no
event shall any amendment cause | ||||||
3 | the permitted level of the State's variable
rate exposure with | ||||||
4 | respect to Bonds to exceed 20%.
| ||||||
5 | (d) "Build America Bonds" in this Section means Bonds | ||||||
6 | authorized by Section 54AA of the Internal Revenue Code of | ||||||
7 | 1986, as amended ("Internal Revenue Code"), and bonds issued | ||||||
8 | from time to time to refund or continue to refund "Build | ||||||
9 | America Bonds". | ||||||
10 | (e) Notwithstanding any other provision of this Section, | ||||||
11 | Qualified School Construction Bonds shall be issued and sold | ||||||
12 | from time to time, in one or more series, in such amounts and | ||||||
13 | at such prices as may be directed by the Governor, upon | ||||||
14 | recommendation by the Director of the Governor's Office of | ||||||
15 | Management and Budget. Qualified School Construction Bonds | ||||||
16 | shall be in such form (either coupon, registered or book | ||||||
17 | entry), in such denominations, payable within 25 years from | ||||||
18 | their date, subject to such terms of redemption with or without | ||||||
19 | premium, and if the Qualified School Construction Bonds are | ||||||
20 | issued with a supplemental coupon, bear interest payable at | ||||||
21 | such times and at such fixed or variable rate or rates, and be | ||||||
22 | dated as shall be fixed and determined by the Director of the | ||||||
23 | Governor's Office of Management and Budget in the order | ||||||
24 | authorizing the issuance and sale of any series of Qualified | ||||||
25 | School Construction Bonds, which order shall be approved by the | ||||||
26 | Governor and is herein called a "Bond Sale Order"; except that |
| |||||||
| |||||||
1 | interest payable at fixed or variable rates, if any, shall not | ||||||
2 | exceed that permitted in the Bond Authorization Act, as now or | ||||||
3 | hereafter amended. Qualified School Construction Bonds shall | ||||||
4 | be payable at such place or places, within or without the State | ||||||
5 | of Illinois, and may be made registrable as to either principal | ||||||
6 | or as to both principal and interest, as shall be specified in | ||||||
7 | the Bond Sale Order. Qualified School Construction Bonds may be | ||||||
8 | callable or subject to purchase and retirement or tender and | ||||||
9 | remarketing as fixed and determined in the Bond Sale Order. | ||||||
10 | Qualified School Construction Bonds must be issued with | ||||||
11 | principal or mandatory redemption amounts or sinking fund | ||||||
12 | payments into the General Obligation Bond Retirement and | ||||||
13 | Interest Fund (or subaccount therefor) in equal amounts, with | ||||||
14 | the first maturity issued, mandatory redemption payment or | ||||||
15 | sinking fund payment occurring within the fiscal year in which | ||||||
16 | the Qualified School Construction Bonds are issued or within | ||||||
17 | the next succeeding fiscal year, with Qualified School | ||||||
18 | Construction Bonds issued maturing or subject to mandatory | ||||||
19 | redemption or with sinking fund payments thereof deposited each | ||||||
20 | fiscal year thereafter up to 25 years. Sinking fund payments | ||||||
21 | set forth in this subsection shall be permitted only to the | ||||||
22 | extent authorized in Section 54F of the Internal Revenue Code | ||||||
23 | or as otherwise determined by the Director of the Governor's | ||||||
24 | Office of Management and Budget. "Qualified School | ||||||
25 | Construction Bonds" in this subsection means Bonds authorized | ||||||
26 | by Section 54F of the Internal Revenue Code and for bonds |
| |||||||
| |||||||
1 | issued from time to time to refund or continue to refund such | ||||||
2 | "Qualified School Construction Bonds". | ||||||
3 | (f) Beginning with the next issuance by the Governor's | ||||||
4 | Office of Management and Budget to the Procurement Policy Board | ||||||
5 | of a request for quotation for the purpose of formulating a new | ||||||
6 | pool of qualified underwriting banks list, all entities | ||||||
7 | responding to such a request for quotation for inclusion on | ||||||
8 | that list shall provide a written report to the Governor's | ||||||
9 | Office of Management and Budget and the Illinois Comptroller. | ||||||
10 | The written report submitted to the Comptroller shall (i) be | ||||||
11 | published on the Comptroller's Internet website and (ii) be | ||||||
12 | used by the Governor's Office of Management and Budget for the | ||||||
13 | purposes of scoring such a request for quotation. The written | ||||||
14 | report, at a minimum, shall: | ||||||
15 | (1) disclose whether, within the past 3 months, | ||||||
16 | pursuant to its credit default swap market-making | ||||||
17 | activities, the firm has entered into any State of Illinois | ||||||
18 | credit default swaps ("CDS"); | ||||||
19 | (2) include, in the event of State of Illinois CDS | ||||||
20 | activity, disclosure of the firm's cumulative notional | ||||||
21 | volume of State of Illinois CDS trades and the firm's | ||||||
22 | outstanding gross and net notional amount of State of | ||||||
23 | Illinois CDS, as of the end of the current 3-month period; | ||||||
24 | (3) indicate, pursuant to the firm's proprietary | ||||||
25 | trading activities, disclosure of whether the firm, within | ||||||
26 | the past 3 months, has entered into any proprietary trades |
| |||||||
| |||||||
1 | for its own account in State of Illinois CDS; | ||||||
2 | (4) include, in the event of State of Illinois | ||||||
3 | proprietary trades, disclosure of the firm's outstanding | ||||||
4 | gross and net notional amount of proprietary State of | ||||||
5 | Illinois CDS and whether the net position is short or long | ||||||
6 | credit protection, as of the end of the current 3-month | ||||||
7 | period; | ||||||
8 | (5) list all time periods during the past 3 months | ||||||
9 | during which the firm held net long or net short State of | ||||||
10 | Illinois CDS proprietary credit protection positions, the | ||||||
11 | amount of such positions, and whether those positions were | ||||||
12 | net long or net short credit protection positions; and | ||||||
13 | (6) indicate whether, within the previous 3 months, the | ||||||
14 | firm released any publicly available research or marketing | ||||||
15 | reports that reference State of Illinois CDS and include | ||||||
16 | those research or marketing reports as attachments. | ||||||
17 | (g) All entities included on a Governor's Office of | ||||||
18 | Management and Budget's pool of qualified underwriting banks | ||||||
19 | list shall, as soon as possible after March 18, 2011 (the | ||||||
20 | effective date of Public Act 96-1554), but not later than | ||||||
21 | January 21, 2011, and on a quarterly fiscal basis thereafter, | ||||||
22 | provide a written report to the Governor's Office of Management | ||||||
23 | and Budget and the Illinois Comptroller. The written reports | ||||||
24 | submitted to the Comptroller shall be published on the | ||||||
25 | Comptroller's Internet website. The written reports, at a | ||||||
26 | minimum, shall: |
| |||||||
| |||||||
1 | (1) disclose whether, within the past 3 months, | ||||||
2 | pursuant to its credit default swap market-making | ||||||
3 | activities, the firm has entered into any State of Illinois | ||||||
4 | credit default swaps ("CDS"); | ||||||
5 | (2) include, in the event of State of Illinois CDS | ||||||
6 | activity, disclosure of the firm's cumulative notional | ||||||
7 | volume of State of Illinois CDS trades and the firm's | ||||||
8 | outstanding gross and net notional amount of State of | ||||||
9 | Illinois CDS, as of the end of the current 3-month period; | ||||||
10 | (3) indicate, pursuant to the firm's proprietary | ||||||
11 | trading activities, disclosure of whether the firm, within | ||||||
12 | the past 3 months, has entered into any proprietary trades | ||||||
13 | for its own account in State of Illinois CDS; | ||||||
14 | (4) include, in the event of State of Illinois | ||||||
15 | proprietary trades, disclosure of the firm's outstanding | ||||||
16 | gross and net notional amount of proprietary State of | ||||||
17 | Illinois CDS and whether the net position is short or long | ||||||
18 | credit protection, as of the end of the current 3-month | ||||||
19 | period; | ||||||
20 | (5) list all time periods during the past 3 months | ||||||
21 | during which the firm held net long or net short State of | ||||||
22 | Illinois CDS proprietary credit protection positions, the | ||||||
23 | amount of such positions, and whether those positions were | ||||||
24 | net long or net short credit protection positions; and | ||||||
25 | (6) indicate whether, within the previous 3 months, the | ||||||
26 | firm released any publicly available research or marketing |
| |||||||
| |||||||
1 | reports that reference State of Illinois CDS and include | ||||||
2 | those research or marketing reports as attachments. | ||||||
3 | (h) Notwithstanding any other provision of this Section, | ||||||
4 | for purposes of maximizing market efficiencies and cost | ||||||
5 | savings, State Pension Obligation Acceleration Bonds may be | ||||||
6 | issued and sold from time to time, in one or more series, in | ||||||
7 | such amounts and at such prices as may be directed by the | ||||||
8 | Governor, upon recommendation by the Director of the Governor's | ||||||
9 | Office of Management and Budget. State Pension Obligation | ||||||
10 | Acceleration Bonds shall be in such form, either coupon, | ||||||
11 | registered, or book entry, in such denominations, shall bear | ||||||
12 | interest payable at such times and at such fixed or variable | ||||||
13 | rate or rates, and be dated as shall be fixed and determined by | ||||||
14 | the Director of the Governor's Office of Management and Budget | ||||||
15 | in the order authorizing the issuance and sale of any series of | ||||||
16 | State Pension Obligation Acceleration Bonds, which order shall | ||||||
17 | be approved by the Governor and is herein called a "Bond Sale | ||||||
18 | Order"; provided, however, that interest payable at fixed or | ||||||
19 | variable rates shall not exceed that permitted in the Bond | ||||||
20 | Authorization Act. State Pension Obligation Acceleration Bonds | ||||||
21 | shall be payable at such place or places, within or without the | ||||||
22 | State of Illinois, and may be made registrable as to either | ||||||
23 | principal or as to both principal and interest, as shall be | ||||||
24 | specified in the Bond Sale Order.
State Pension Obligation | ||||||
25 | Acceleration Bonds may be callable or subject to purchase and | ||||||
26 | retirement or tender and remarketing as fixed and determined in |
| |||||||
| |||||||
1 | the Bond Sale Order. | ||||||
2 | (Source: P.A. 99-523, eff. 6-30-16.)
| ||||||
3 | (30 ILCS 330/11) (from Ch. 127, par. 661)
| ||||||
4 | Sec. 11. Sale of Bonds. Except as otherwise provided in | ||||||
5 | this Section,
Bonds shall be sold from time to time pursuant to
| ||||||
6 | notice of sale and public bid or by negotiated sale
in such | ||||||
7 | amounts and at such
times as is directed by the Governor, upon | ||||||
8 | recommendation by the Director of
the
Governor's Office of | ||||||
9 | Management and Budget. At least 25%, based on total principal | ||||||
10 | amount, of all Bonds issued each fiscal year shall be sold | ||||||
11 | pursuant to notice of sale and public bid. At all times during | ||||||
12 | each fiscal year, no more than 75%, based on total principal | ||||||
13 | amount, of the Bonds issued each fiscal year, shall have been | ||||||
14 | sold by negotiated sale. Failure to satisfy the requirements in | ||||||
15 | the preceding 2 sentences shall not affect the validity of any | ||||||
16 | previously issued Bonds; provided that all Bonds authorized by | ||||||
17 | Public Act 96-43 and Public Act 96-1497 shall not be included | ||||||
18 | in determining compliance for any fiscal year with the | ||||||
19 | requirements of the preceding 2 sentences; and further provided | ||||||
20 | that refunding Bonds satisfying the requirements of Section 16 | ||||||
21 | of this Act and sold during fiscal year 2009, 2010, 2011, or | ||||||
22 | 2017 shall not be subject to the requirements in the preceding | ||||||
23 | 2 sentences.
| ||||||
24 | If
any Bonds, including refunding Bonds, are to be sold by | ||||||
25 | negotiated
sale, the
Director of the
Governor's Office of |
| |||||||
| |||||||
1 | Management and Budget
shall comply with the
competitive request | ||||||
2 | for proposal process set forth in the Illinois
Procurement Code | ||||||
3 | and all other applicable requirements of that Code.
| ||||||
4 | If Bonds are to be sold pursuant to notice of sale and | ||||||
5 | public bid, the
Director of the
Governor's Office of Management | ||||||
6 | and Budget may, from time to time, as Bonds are to be sold, | ||||||
7 | advertise
the sale of the Bonds in at least 2 daily newspapers, | ||||||
8 | one of which is
published in the City of Springfield and one in | ||||||
9 | the City of Chicago. The sale
of the Bonds shall also be
| ||||||
10 | advertised in the volume of the Illinois Procurement Bulletin | ||||||
11 | that is
published by the Department of Central Management | ||||||
12 | Services, and shall be published once at least
10 days prior to | ||||||
13 | the date fixed
for the opening of the bids. The Director of the
| ||||||
14 | Governor's Office of Management and Budget may
reschedule the | ||||||
15 | date of sale upon the giving of such additional notice as the
| ||||||
16 | Director deems adequate to inform prospective bidders of
such | ||||||
17 | change; provided, however, that all other conditions of the | ||||||
18 | sale shall
continue as originally advertised.
| ||||||
19 | Executed Bonds shall, upon payment therefor, be delivered | ||||||
20 | to the purchaser,
and the proceeds of Bonds shall be paid into | ||||||
21 | the State Treasury as directed by
Section 12 of this Act. | ||||||
22 | All State Pension Obligation Acceleration Bonds shall | ||||||
23 | comply with this Section. Notwithstanding anything to the | ||||||
24 | contrary, however, for purposes of complying with this Section, | ||||||
25 | State Pension Obligation Acceleration Bonds, regardless of the | ||||||
26 | number of series or issuances sold thereunder, shall be
|
| |||||||
| |||||||
1 | considered a single issue or series. Furthermore, for purposes | ||||||
2 | of complying with the competitive bidding requirements of this | ||||||
3 | Section, the words "at all times" shall not apply to any such | ||||||
4 | sale of the State Pension Obligation Acceleration Bonds. The | ||||||
5 | Director of the Governor's Office of Management and Budget | ||||||
6 | shall determine the time and manner of any competitive sale of | ||||||
7 | the State Pension Obligation Acceleration Bonds; however, that | ||||||
8 | sale shall under no circumstances take place later than 60 days | ||||||
9 | after the State closes the sale of 75% of the State Pension | ||||||
10 | Obligation Acceleration Bonds by negotiated sale.
| ||||||
11 | (Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)
| ||||||
12 | (30 ILCS 330/12) (from Ch. 127, par. 662)
| ||||||
13 | Sec. 12. Allocation of Proceeds from Sale of Bonds.
| ||||||
14 | (a) Proceeds from the sale of Bonds, authorized by Section | ||||||
15 | 3 of this Act,
shall be deposited in the separate fund known as | ||||||
16 | the Capital Development Fund.
| ||||||
17 | (b) Proceeds from the sale of Bonds, authorized by | ||||||
18 | paragraph (a) of Section
4 of this Act, shall be deposited in | ||||||
19 | the separate fund known as the
Transportation Bond, Series A | ||||||
20 | Fund.
| ||||||
21 | (c) Proceeds from the sale of Bonds, authorized by | ||||||
22 | paragraphs (b) and (c)
of Section 4 of this Act, shall be | ||||||
23 | deposited in the separate fund known
as the Transportation | ||||||
24 | Bond, Series B Fund.
| ||||||
25 | (c-1) Proceeds from the sale of Bonds, authorized by |
| |||||||
| |||||||
1 | paragraph (d) of Section 4 of this Act, shall be deposited into | ||||||
2 | the Transportation Bond Series D Fund, which is hereby created. | ||||||
3 | (d) Proceeds from the sale of Bonds, authorized by Section | ||||||
4 | 5 of this
Act, shall be deposited in the separate fund known as | ||||||
5 | the School Construction
Fund.
| ||||||
6 | (e) Proceeds from the sale of Bonds, authorized by Section | ||||||
7 | 6 of this Act,
shall be deposited in the separate fund known as | ||||||
8 | the Anti-Pollution Fund.
| ||||||
9 | (f) Proceeds from the sale of Bonds, authorized by Section | ||||||
10 | 7 of this Act,
shall be deposited in the separate fund known as | ||||||
11 | the Coal Development Fund.
| ||||||
12 | (f-2) Proceeds from the sale of Bonds, authorized by | ||||||
13 | Section 7.2 of this
Act, shall be deposited as set forth in | ||||||
14 | Section 7.2.
| ||||||
15 | (f-5) Proceeds from the sale of Bonds, authorized by | ||||||
16 | Section 7.5 of this
Act, shall be deposited as set forth in | ||||||
17 | Section 7.5. | ||||||
18 | (f-7) Proceeds from the sale of Bonds, authorized by | ||||||
19 | Section 7.6 of this Act, shall be deposited as set forth in | ||||||
20 | Section 7.6.
| ||||||
21 | (g) Proceeds from the sale of Bonds, authorized by Section | ||||||
22 | 8 of this Act,
shall be deposited in
the Capital Development | ||||||
23 | Fund.
| ||||||
24 | (h) Subsequent to the issuance of any Bonds for the | ||||||
25 | purposes described
in Sections 2 through 8 of this Act, the | ||||||
26 | Governor and the Director of the
Governor's Office of |
| |||||||
| |||||||
1 | Management and Budget may provide for the reallocation of | ||||||
2 | unspent proceeds
of such Bonds to any other purposes authorized | ||||||
3 | under said Sections of this
Act, subject to the limitations on | ||||||
4 | aggregate principal amounts contained
therein. Upon any such | ||||||
5 | reallocation, such unspent proceeds shall be
transferred to the | ||||||
6 | appropriate funds as determined by reference to
paragraphs (a) | ||||||
7 | through (g) of this Section.
| ||||||
8 | (Source: P.A. 96-36, eff. 7-13-09.)
| ||||||
9 | (30 ILCS 330/13) (from Ch. 127, par. 663)
| ||||||
10 | Sec. 13. Appropriation of Proceeds from Sale of Bonds.
| ||||||
11 | (a) At all times, the proceeds from the sale of Bonds | ||||||
12 | issued pursuant
to this Act are subject to appropriation by the | ||||||
13 | General Assembly and,
except as provided in Sections 7.2 and | ||||||
14 | 7.6 Section 7.2 , may be obligated or expended only
with the | ||||||
15 | written approval of the Governor, in such amounts, at such | ||||||
16 | times,
and for such purposes as the respective
State agencies, | ||||||
17 | as defined in Section 1-7 of the Illinois State Auditing
Act, | ||||||
18 | as amended, deem necessary or desirable for the specific | ||||||
19 | purposes
contemplated in Sections 2 through 8 of this Act. | ||||||
20 | Notwithstanding any other provision of this Act, proceeds from | ||||||
21 | the sale of Bonds issued pursuant to this Act appropriated by | ||||||
22 | the General Assembly to the Architect of the Capitol may be | ||||||
23 | obligated or expended by the Architect of the Capitol without | ||||||
24 | the written approval of the Governor.
| ||||||
25 | (b) Proceeds from the sale of Bonds for the purpose of |
| |||||||
| |||||||
1 | development of
coal and alternative forms of energy shall be | ||||||
2 | expended in such amounts and
at such times as the Department of | ||||||
3 | Commerce and Economic Opportunity, with the
advice and | ||||||
4 | recommendation of the Illinois Coal Development Board for coal
| ||||||
5 | development projects, may deem necessary and desirable for the | ||||||
6 | specific
purpose contemplated by Section 7 of this Act. In | ||||||
7 | considering the approval
of projects to be funded, the | ||||||
8 | Department of Commerce and
Economic Opportunity shall give
| ||||||
9 | special
consideration to projects designed to remove sulfur and | ||||||
10 | other pollutants in
the preparation and utilization of coal, | ||||||
11 | and in the use and operation of
electric utility generating | ||||||
12 | plants and industrial facilities which utilize
Illinois coal as | ||||||
13 | their primary source of fuel.
| ||||||
14 | (c) Except as directed in subsection (c-1) or (c-2), any | ||||||
15 | monies received by any officer or employee of the state
| ||||||
16 | representing a reimbursement of expenditures previously paid | ||||||
17 | from general
obligation bond proceeds shall be deposited into | ||||||
18 | the General Obligation
Bond Retirement and Interest Fund | ||||||
19 | authorized in Section 14 of this Act.
| ||||||
20 | (c-1) Any money received by the Department of | ||||||
21 | Transportation as reimbursement for expenditures for high | ||||||
22 | speed rail purposes pursuant to appropriations from the | ||||||
23 | Transportation Bond, Series B Fund for (i) CREATE (Chicago | ||||||
24 | Region Environmental and Transportation Efficiency), (ii) High | ||||||
25 | Speed Rail, or (iii) AMTRAK projects authorized by the federal | ||||||
26 | government under the provisions of the American Recovery and |
| |||||||
| |||||||
1 | Reinvestment Act of 2009 or the Safe Accountable Flexible | ||||||
2 | Efficient Transportation Equity Act—A Legacy for Users | ||||||
3 | (SAFETEA-LU), or any successor federal transportation | ||||||
4 | authorization Act, shall be deposited into the Federal High | ||||||
5 | Speed Rail Trust Fund. | ||||||
6 | (c-2) Any money received by the Department of | ||||||
7 | Transportation as reimbursement for expenditures for transit | ||||||
8 | capital purposes pursuant to appropriations from the | ||||||
9 | Transportation Bond, Series B Fund for projects authorized by | ||||||
10 | the federal government under the provisions of the American | ||||||
11 | Recovery and Reinvestment Act of 2009 or the Safe Accountable | ||||||
12 | Flexible Efficient Transportation Equity Act—A Legacy for | ||||||
13 | Users (SAFETEA-LU), or any successor federal transportation | ||||||
14 | authorization Act, shall be deposited into the Federal Mass | ||||||
15 | Transit Trust Fund. | ||||||
16 | (Source: P.A. 98-674, eff. 6-30-14.)
| ||||||
17 | Section 25. The Illinois Pension Code is amended by adding | ||||||
18 | Sections 2-154.5, 2-154.6, 14-147.5, 14-147.6, 15-185.5, | ||||||
19 | 15-185.6, 16-190.5, 16-190.6, 18-161.5, and 18-161.6 and | ||||||
20 | amending Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169 | ||||||
21 | as follows: | ||||||
22 | (40 ILCS 5/2-154.5 new) | ||||||
23 | Sec. 2-154.5. Accelerated pension benefit payment. | ||||||
24 | (a) As used in this Section: |
| |||||||
| |||||||
1 | "Eligible person" means a person who: | ||||||
2 | (1) has terminated service; | ||||||
3 | (2) has accrued sufficient service credit to be | ||||||
4 | eligible to receive a retirement annuity under this | ||||||
5 | Article; | ||||||
6 | (3) has not received any retirement annuity under this | ||||||
7 | Article; and | ||||||
8 | (4) does not have a QILDRO in effect against him or her | ||||||
9 | under this Article. | ||||||
10 | "Pension benefit" means the benefits under this Article, or | ||||||
11 | Article 1 as it relates to those benefits, including any | ||||||
12 | anticipated annual increases, that an eligible person is | ||||||
13 | entitled to upon attainment of the applicable retirement age. | ||||||
14 | "Pension benefit" also includes applicable survivor's or | ||||||
15 | disability benefits. | ||||||
16 | (b) Before January 1, 2018, the System shall calculate, | ||||||
17 | using actuarial tables and other assumptions adopted by the | ||||||
18 | Board, the net present value of pension benefits for each | ||||||
19 | eligible person and shall offer each eligible person the | ||||||
20 | opportunity to irrevocably elect to receive an amount | ||||||
21 | determined by the System to be equal to 70% of the net present | ||||||
22 | value of his or her pension benefits in lieu of receiving any | ||||||
23 | pension benefit. The offer shall specify the dollar amount that | ||||||
24 | the eligible person will receive if he or she so elects and | ||||||
25 | shall expire when a subsequent offer is made to an eligible | ||||||
26 | person. The System shall make a good faith effort to contact |
| |||||||
| |||||||
1 | every eligible person to notify him or her of the election and | ||||||
2 | of the amount of the accelerated pension benefit payment. | ||||||
3 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
4 | eligible person may irrevocably elect to receive an accelerated | ||||||
5 | pension benefit payment in the amount that the System offers | ||||||
6 | under this subsection in lieu of receiving any pension benefit. | ||||||
7 | A person who elects to receive an accelerated pension benefit | ||||||
8 | payment under this Section may not elect to proceed under the | ||||||
9 | Retirement Systems Reciprocal Act with respect to service under | ||||||
10 | this Article. | ||||||
11 | (c) A person's credits and creditable service under this | ||||||
12 | Article shall be terminated upon the person's receipt of an | ||||||
13 | accelerated pension benefit payment under this Section, and no | ||||||
14 | other benefit shall be paid under this Article based on those | ||||||
15 | terminated credits and creditable service, including any | ||||||
16 | retirement, survivor, or other benefit; except that to the | ||||||
17 | extent that participation, benefits, or premiums under the | ||||||
18 | State Employees Group Insurance Act of 1971 are based on the | ||||||
19 | amount of service credit, the terminated service credit shall | ||||||
20 | be used for that purpose. | ||||||
21 | (d) If a person who has received an accelerated pension | ||||||
22 | benefit payment under this Section returns to active service | ||||||
23 | under this Article, then: | ||||||
24 | (1) Any benefits under the System earned as a result of | ||||||
25 | that return to active service shall be based solely on the | ||||||
26 | person's credits and creditable service arising from the |
| |||||||
| |||||||
1 | return to active service. | ||||||
2 | (2) The accelerated pension benefit payment may not be | ||||||
3 | repaid to the System, and the terminated credits and | ||||||
4 | creditable service may not under any circumstances be | ||||||
5 | reinstated. | ||||||
6 | (e) As a condition of receiving an accelerated pension | ||||||
7 | benefit payment, an eligible person must have another | ||||||
8 | retirement plan or account qualified under the Internal Revenue | ||||||
9 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
10 | payment to be rolled into. The accelerated pension benefit | ||||||
11 | payment under this Section may be subject to withholding or | ||||||
12 | payment of applicable taxes, but to the extent permitted by | ||||||
13 | federal law, a person who receives an accelerated pension | ||||||
14 | benefit payment under this Section must direct the System to | ||||||
15 | pay all of that payment as a rollover into another retirement | ||||||
16 | plan or account qualified under the Internal Revenue Code of | ||||||
17 | 1986, as amended. | ||||||
18 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
19 | Illinois Finance Authority and the General Assembly the amount | ||||||
20 | by which the total amount of accelerated pension benefit | ||||||
21 | payments made under this Section exceed the amount appropriated | ||||||
22 | to the System for the purpose of making those payments. | ||||||
23 | (g) The Board shall adopt any rules necessary to implement | ||||||
24 | this Section. | ||||||
25 | (h) No provision of this Section shall be interpreted in a | ||||||
26 | way that would cause the applicable System to cease to be a |
| |||||||
| |||||||
1 | qualified plan under the Internal Revenue Code of 1986. | ||||||
2 | (40 ILCS 5/2-162) | ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been
held unconstitutional)
| ||||||
5 | Sec. 2-162. Application and expiration of new benefit | ||||||
6 | increases. | ||||||
7 | (a) As used in this Section, "new benefit increase" means | ||||||
8 | an increase in the amount of any benefit provided under this | ||||||
9 | Article, or an expansion of the conditions of eligibility for | ||||||
10 | any benefit under this Article, that results from an amendment | ||||||
11 | to this Code that takes effect after June 1, 2005 (the | ||||||
12 | effective date of Public Act 94-4). "New benefit increase", | ||||||
13 | however, does not include any benefit increase resulting from | ||||||
14 | the changes made to this Article by this amendatory Act of the | ||||||
15 | 100th General Assembly the effective date of this amendatory | ||||||
16 | Act of the 94th General Assembly . | ||||||
17 | (b) Notwithstanding any other provision of this Code or any | ||||||
18 | subsequent amendment to this Code, every new benefit increase | ||||||
19 | is subject to this Section and shall be deemed to be granted | ||||||
20 | only in conformance with and contingent upon compliance with | ||||||
21 | the provisions of this Section.
| ||||||
22 | (c) The Public Act enacting a new benefit increase must | ||||||
23 | identify and provide for payment to the System of additional | ||||||
24 | funding at least sufficient to fund the resulting annual | ||||||
25 | increase in cost to the System as it accrues. |
| |||||||
| |||||||
1 | Every new benefit increase is contingent upon the General | ||||||
2 | Assembly providing the additional funding required under this | ||||||
3 | subsection. The Commission on Government Forecasting and | ||||||
4 | Accountability shall analyze whether adequate additional | ||||||
5 | funding has been provided for the new benefit increase and | ||||||
6 | shall report its analysis to the Public Pension Division of the | ||||||
7 | Department of Financial and Professional Regulation. A new | ||||||
8 | benefit increase created by a Public Act that does not include | ||||||
9 | the additional funding required under this subsection is null | ||||||
10 | and void. If the Public Pension Division determines that the | ||||||
11 | additional funding provided for a new benefit increase under | ||||||
12 | this subsection is or has become inadequate, it may so certify | ||||||
13 | to the Governor and the State Comptroller and, in the absence | ||||||
14 | of corrective action by the General Assembly, the new benefit | ||||||
15 | increase shall expire at the end of the fiscal year in which | ||||||
16 | the certification is made.
| ||||||
17 | (d) Every new benefit increase shall expire 5 years after | ||||||
18 | its effective date or on such earlier date as may be specified | ||||||
19 | in the language enacting the new benefit increase or provided | ||||||
20 | under subsection (c). This does not prevent the General | ||||||
21 | Assembly from extending or re-creating a new benefit increase | ||||||
22 | by law. | ||||||
23 | (e) Except as otherwise provided in the language creating | ||||||
24 | the new benefit increase, a new benefit increase that expires | ||||||
25 | under this Section continues to apply to persons who applied | ||||||
26 | and qualified for the affected benefit while the new benefit |
| |||||||
| |||||||
1 | increase was in effect and to the affected beneficiaries and | ||||||
2 | alternate payees of such persons, but does not apply to any | ||||||
3 | other person, including without limitation a person who | ||||||
4 | continues in service after the expiration date and did not | ||||||
5 | apply and qualify for the affected benefit while the new | ||||||
6 | benefit increase was in effect.
| ||||||
7 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
8 | (40 ILCS 5/14-147.5 new) | ||||||
9 | Sec. 14-147.5. Accelerated pension benefit payment. | ||||||
10 | (a) As used in this Section: | ||||||
11 | "Eligible person" means a person who: | ||||||
12 | (1) has terminated service; | ||||||
13 | (2) has accrued sufficient service credit to be | ||||||
14 | eligible to receive a retirement annuity under this | ||||||
15 | Article; | ||||||
16 | (3) has not received any retirement annuity under this | ||||||
17 | Article; and | ||||||
18 | (4) does not have a QILDRO in effect against him or her | ||||||
19 | under this Article. | ||||||
20 | "Pension benefit" means the benefits under this Article, or | ||||||
21 | Article 1 as it relates to those benefits, including any | ||||||
22 | anticipated annual increases, that an eligible person is | ||||||
23 | entitled to upon attainment of the applicable retirement age. | ||||||
24 | "Pension benefit" also includes applicable survivor's or | ||||||
25 | disability benefits. |
| |||||||
| |||||||
1 | (b) Before January 1, 2018, the System shall calculate, | ||||||
2 | using actuarial tables and other assumptions adopted by the | ||||||
3 | Board, the net present value of pension benefits for each | ||||||
4 | eligible person and shall offer each eligible person the | ||||||
5 | opportunity to irrevocably elect to receive an amount | ||||||
6 | determined by the System to be equal to 70% of the net present | ||||||
7 | value of his or her pension benefits in lieu of receiving any | ||||||
8 | pension benefit. The offer shall specify the dollar amount that | ||||||
9 | the eligible person will receive if he or she so elects and | ||||||
10 | shall expire when a subsequent offer is made to an eligible | ||||||
11 | person. The System shall make a good faith effort to contact | ||||||
12 | every eligible person to notify him or her of the election and | ||||||
13 | of the amount of the accelerated pension benefit payment. | ||||||
14 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
15 | eligible person may irrevocably elect to receive an accelerated | ||||||
16 | pension benefit payment in the amount that the System offers | ||||||
17 | under this subsection in lieu of receiving any pension benefit. | ||||||
18 | A person who elects to receive an accelerated pension benefit | ||||||
19 | payment under this Section may not elect to proceed under the | ||||||
20 | Retirement Systems Reciprocal Act with respect to service under | ||||||
21 | this Article. | ||||||
22 | (c) A person's credits and creditable service under this | ||||||
23 | Article shall be terminated upon the person's receipt of an | ||||||
24 | accelerated pension benefit payment under this Section, and no | ||||||
25 | other benefit shall be paid under this Article based on those | ||||||
26 | terminated credits and creditable service, including any |
| |||||||
| |||||||
1 | retirement, survivor, or other benefit; except that to the | ||||||
2 | extent that participation, benefits, or premiums under the | ||||||
3 | State Employees Group Insurance Act of 1971 are based on the | ||||||
4 | amount of service credit, the terminated service credit shall | ||||||
5 | be used for that purpose. | ||||||
6 | (d) If a person who has received an accelerated pension | ||||||
7 | benefit payment under this Section returns to active service | ||||||
8 | under this Article, then: | ||||||
9 | (1) Any benefits under the System earned as a result of | ||||||
10 | that return to active service shall be based solely on the | ||||||
11 | person's credits and creditable service arising from the | ||||||
12 | return to active service. | ||||||
13 | (2) The accelerated pension benefit payment may not be | ||||||
14 | repaid to the System, and the terminated credits and | ||||||
15 | creditable service may not under any circumstances be | ||||||
16 | reinstated. | ||||||
17 | (e) As a condition of receiving an accelerated pension | ||||||
18 | benefit payment, an eligible person must have another | ||||||
19 | retirement plan or account qualified under the Internal Revenue | ||||||
20 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
21 | payment to be rolled into. The accelerated pension benefit | ||||||
22 | payment under this Section may be subject to withholding or | ||||||
23 | payment of applicable taxes, but to the extent permitted by | ||||||
24 | federal law, a person who receives an accelerated pension | ||||||
25 | benefit payment under this Section must direct the System to | ||||||
26 | pay all of that payment as a rollover into another retirement |
| |||||||
| |||||||
1 | plan or account qualified under the Internal Revenue Code of | ||||||
2 | 1986, as amended. | ||||||
3 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
4 | Illinois Finance Authority and the General Assembly the amount | ||||||
5 | by which the total amount of accelerated pension benefit | ||||||
6 | payments made under this Section exceed the amount appropriated | ||||||
7 | to the System for the purpose of making those payments. | ||||||
8 | (g) The Board shall adopt any rules necessary to implement | ||||||
9 | this Section. | ||||||
10 | (h) No provision of this Section shall be interpreted in a | ||||||
11 | way that would cause the applicable System to cease to be a | ||||||
12 | qualified plan under the Internal Revenue Code of 1986. | ||||||
13 | (40 ILCS 5/14-152.1) | ||||||
14 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
15 | which has been held unconstitutional)
| ||||||
16 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
17 | increases. | ||||||
18 | (a) As used in this Section, "new benefit increase" means | ||||||
19 | an increase in the amount of any benefit provided under this | ||||||
20 | Article, or an expansion of the conditions of eligibility for | ||||||
21 | any benefit under this Article, that results from an amendment | ||||||
22 | to this Code that takes effect after June 1, 2005 (the | ||||||
23 | effective date of Public Act 94-4). "New benefit increase", | ||||||
24 | however, does not include any benefit increase resulting from | ||||||
25 | the changes made to this Article by Public Act 96-37 or by this |
| |||||||
| |||||||
1 | amendatory Act of the 100th General Assembly this amendatory | ||||||
2 | Act of the 96th General Assembly .
| ||||||
3 | (b) Notwithstanding any other provision of this Code or any | ||||||
4 | subsequent amendment to this Code, every new benefit increase | ||||||
5 | is subject to this Section and shall be deemed to be granted | ||||||
6 | only in conformance with and contingent upon compliance with | ||||||
7 | the provisions of this Section.
| ||||||
8 | (c) The Public Act enacting a new benefit increase must | ||||||
9 | identify and provide for payment to the System of additional | ||||||
10 | funding at least sufficient to fund the resulting annual | ||||||
11 | increase in cost to the System as it accrues. | ||||||
12 | Every new benefit increase is contingent upon the General | ||||||
13 | Assembly providing the additional funding required under this | ||||||
14 | subsection. The Commission on Government Forecasting and | ||||||
15 | Accountability shall analyze whether adequate additional | ||||||
16 | funding has been provided for the new benefit increase and | ||||||
17 | shall report its analysis to the Public Pension Division of the | ||||||
18 | Department of Financial and Professional Regulation. A new | ||||||
19 | benefit increase created by a Public Act that does not include | ||||||
20 | the additional funding required under this subsection is null | ||||||
21 | and void. If the Public Pension Division determines that the | ||||||
22 | additional funding provided for a new benefit increase under | ||||||
23 | this subsection is or has become inadequate, it may so certify | ||||||
24 | to the Governor and the State Comptroller and, in the absence | ||||||
25 | of corrective action by the General Assembly, the new benefit | ||||||
26 | increase shall expire at the end of the fiscal year in which |
| |||||||
| |||||||
1 | the certification is made.
| ||||||
2 | (d) Every new benefit increase shall expire 5 years after | ||||||
3 | its effective date or on such earlier date as may be specified | ||||||
4 | in the language enacting the new benefit increase or provided | ||||||
5 | under subsection (c). This does not prevent the General | ||||||
6 | Assembly from extending or re-creating a new benefit increase | ||||||
7 | by law. | ||||||
8 | (e) Except as otherwise provided in the language creating | ||||||
9 | the new benefit increase, a new benefit increase that expires | ||||||
10 | under this Section continues to apply to persons who applied | ||||||
11 | and qualified for the affected benefit while the new benefit | ||||||
12 | increase was in effect and to the affected beneficiaries and | ||||||
13 | alternate payees of such persons, but does not apply to any | ||||||
14 | other person, including without limitation a person who | ||||||
15 | continues in service after the expiration date and did not | ||||||
16 | apply and qualify for the affected benefit while the new | ||||||
17 | benefit increase was in effect.
| ||||||
18 | (Source: P.A. 96-37, eff. 7-13-09.) | ||||||
19 | (40 ILCS 5/15-185.5 new) | ||||||
20 | Sec. 15-185.5. Accelerated pension benefit payment. | ||||||
21 | (a) As used in this Section: | ||||||
22 | "Eligible person" means a person who: | ||||||
23 | (1) has terminated service; | ||||||
24 | (2) has accrued sufficient service credit to be | ||||||
25 | eligible to receive a retirement annuity under this |
| |||||||
| |||||||
1 | Article; | ||||||
2 | (3) has not received any retirement annuity under this | ||||||
3 | Article; | ||||||
4 | (4) does not have a QILDRO in effect against him or her | ||||||
5 | under this Article; and | ||||||
6 | (5) is not a participant in the self-managed plan under | ||||||
7 | Section 15-158.2. | ||||||
8 | "Pension benefit" means the benefits under this Article, or | ||||||
9 | Article 1 as it relates to those benefits, including any | ||||||
10 | anticipated annual increases, that an eligible person is | ||||||
11 | entitled to upon attainment of the applicable retirement age. | ||||||
12 | "Pension benefit" also includes applicable survivor's or | ||||||
13 | disability benefits. | ||||||
14 | (b) Before January 1, 2018, the System shall calculate, | ||||||
15 | using actuarial tables and other assumptions adopted by the | ||||||
16 | Board, the net present value of pension benefits for each | ||||||
17 | eligible person and shall offer each eligible person the | ||||||
18 | opportunity to irrevocably elect to receive an amount | ||||||
19 | determined by the System to be equal to 70% of the net present | ||||||
20 | value of his or her pension benefits in lieu of receiving any | ||||||
21 | pension benefit. The offer shall specify the dollar amount that | ||||||
22 | the eligible person will receive if he or she so elects and | ||||||
23 | shall expire when a subsequent offer is made to an eligible | ||||||
24 | person. The System shall make a good faith effort to contact | ||||||
25 | every eligible person to notify him or her of the election and | ||||||
26 | of the amount of the accelerated pension benefit payment. |
| |||||||
| |||||||
1 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
2 | eligible person may irrevocably elect to receive an accelerated | ||||||
3 | pension benefit payment in the amount that the System offers | ||||||
4 | under this subsection in lieu of receiving any pension benefit. | ||||||
5 | A person who elects to receive an accelerated pension benefit | ||||||
6 | payment under this Section may not elect to proceed under the | ||||||
7 | Retirement Systems Reciprocal Act with respect to service under | ||||||
8 | this Article. | ||||||
9 | (c) A person's credits and creditable service under this | ||||||
10 | Article shall be terminated upon the person's receipt of an | ||||||
11 | accelerated pension benefit payment under this Section, and no | ||||||
12 | other benefit shall be paid under this Article based on those | ||||||
13 | terminated credits and creditable service, including any | ||||||
14 | retirement, survivor, or other benefit; except that to the | ||||||
15 | extent that participation, benefits, or premiums under the | ||||||
16 | State Employees Group Insurance Act of 1971 are based on the | ||||||
17 | amount of service credit, the terminated service credit shall | ||||||
18 | be used for that purpose. | ||||||
19 | (d) If a person who has received an accelerated pension | ||||||
20 | benefit payment under this Section returns to active service | ||||||
21 | under this Article, then: | ||||||
22 | (1) Any benefits under the System earned as a result of | ||||||
23 | that return to active service shall be based solely on the | ||||||
24 | person's credits and creditable service arising from the | ||||||
25 | return to active service. | ||||||
26 | (2) The accelerated pension benefit payment may not be |
| |||||||
| |||||||
1 | repaid to the System, and the terminated credits and | ||||||
2 | creditable service may not under any circumstances be | ||||||
3 | reinstated. | ||||||
4 | (e) As a condition of receiving an accelerated pension | ||||||
5 | benefit payment, an eligible person must have another | ||||||
6 | retirement plan or account qualified under the Internal Revenue | ||||||
7 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
8 | payment to be rolled into. The accelerated pension benefit | ||||||
9 | payment under this Section may be subject to withholding or | ||||||
10 | payment of applicable taxes, but to the extent permitted by | ||||||
11 | federal law, a person who receives an accelerated pension | ||||||
12 | benefit payment under this Section must direct the System to | ||||||
13 | pay all of that payment as a rollover into another retirement | ||||||
14 | plan or account qualified under the Internal Revenue Code of | ||||||
15 | 1986, as amended. | ||||||
16 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
17 | Illinois Finance Authority and the General Assembly the amount | ||||||
18 | by which the total amount of accelerated pension benefit | ||||||
19 | payments made under this Section exceed the amount appropriated | ||||||
20 | to the System for the purpose of making those payments. | ||||||
21 | (g) The Board shall adopt any rules necessary to implement | ||||||
22 | this Section. | ||||||
23 | (h) No provision of this Section shall be interpreted in a | ||||||
24 | way that would cause the applicable System to cease to be a | ||||||
25 | qualified plan under the Internal Revenue Code of 1986. |
| |||||||
| |||||||
1 | (40 ILCS 5/15-198) | ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been held unconstitutional)
| ||||||
4 | Sec. 15-198. Application and expiration of new benefit | ||||||
5 | increases. | ||||||
6 | (a) As used in this Section, "new benefit increase" means | ||||||
7 | an increase in the amount of any benefit provided under this | ||||||
8 | Article, or an expansion of the conditions of eligibility for | ||||||
9 | any benefit under this Article, that results from an amendment | ||||||
10 | to this Code that takes effect after June 1, 2005 (the | ||||||
11 | effective date of Public Act 94-4). "New benefit increase", | ||||||
12 | however, does not include any benefit increase resulting from | ||||||
13 | the changes made to this Article by this amendatory Act of the | ||||||
14 | 100th General Assembly the effective date of this amendatory | ||||||
15 | Act of the 94th General Assembly . | ||||||
16 | (b) Notwithstanding any other provision of this Code or any | ||||||
17 | subsequent amendment to this Code, every new benefit increase | ||||||
18 | is subject to this Section and shall be deemed to be granted | ||||||
19 | only in conformance with and contingent upon compliance with | ||||||
20 | the provisions of this Section.
| ||||||
21 | (c) The Public Act enacting a new benefit increase must | ||||||
22 | identify and provide for payment to the System of additional | ||||||
23 | funding at least sufficient to fund the resulting annual | ||||||
24 | increase in cost to the System as it accrues. | ||||||
25 | Every new benefit increase is contingent upon the General | ||||||
26 | Assembly providing the additional funding required under this |
| |||||||
| |||||||
1 | subsection. The Commission on Government Forecasting and | ||||||
2 | Accountability shall analyze whether adequate additional | ||||||
3 | funding has been provided for the new benefit increase and | ||||||
4 | shall report its analysis to the Public Pension Division of the | ||||||
5 | Department of Financial and Professional Regulation. A new | ||||||
6 | benefit increase created by a Public Act that does not include | ||||||
7 | the additional funding required under this subsection is null | ||||||
8 | and void. If the Public Pension Division determines that the | ||||||
9 | additional funding provided for a new benefit increase under | ||||||
10 | this subsection is or has become inadequate, it may so certify | ||||||
11 | to the Governor and the State Comptroller and, in the absence | ||||||
12 | of corrective action by the General Assembly, the new benefit | ||||||
13 | increase shall expire at the end of the fiscal year in which | ||||||
14 | the certification is made.
| ||||||
15 | (d) Every new benefit increase shall expire 5 years after | ||||||
16 | its effective date or on such earlier date as may be specified | ||||||
17 | in the language enacting the new benefit increase or provided | ||||||
18 | under subsection (c). This does not prevent the General | ||||||
19 | Assembly from extending or re-creating a new benefit increase | ||||||
20 | by law. | ||||||
21 | (e) Except as otherwise provided in the language creating | ||||||
22 | the new benefit increase, a new benefit increase that expires | ||||||
23 | under this Section continues to apply to persons who applied | ||||||
24 | and qualified for the affected benefit while the new benefit | ||||||
25 | increase was in effect and to the affected beneficiaries and | ||||||
26 | alternate payees of such persons, but does not apply to any |
| |||||||
| |||||||
1 | other person, including without limitation a person who | ||||||
2 | continues in service after the expiration date and did not | ||||||
3 | apply and qualify for the affected benefit while the new | ||||||
4 | benefit increase was in effect.
| ||||||
5 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
6 | (40 ILCS 5/16-190.5 new) | ||||||
7 | Sec. 16-190.5. Accelerated pension benefit payment. | ||||||
8 | (a) As used in this Section: | ||||||
9 | "Eligible person" means a person who: | ||||||
10 | (1) has terminated service; | ||||||
11 | (2) has accrued sufficient service credit to be | ||||||
12 | eligible to receive a retirement annuity under this | ||||||
13 | Article; | ||||||
14 | (3) has not received any retirement annuity under this | ||||||
15 | Article; and | ||||||
16 | (4) does not have a QILDRO in effect against him or her | ||||||
17 | under this Article. | ||||||
18 | "Pension benefit" means the benefits under this Article, or | ||||||
19 | Article 1 as it relates to those benefits, including any | ||||||
20 | anticipated annual increases, that an eligible person is | ||||||
21 | entitled to upon attainment of the applicable retirement age. | ||||||
22 | "Pension benefit" also includes applicable survivor's or | ||||||
23 | disability benefits. | ||||||
24 | (b) Before January 1, 2018, the System shall calculate, | ||||||
25 | using actuarial tables and other assumptions adopted by the |
| |||||||
| |||||||
1 | Board, the net present value of pension benefits for each | ||||||
2 | eligible person and shall offer each eligible person the | ||||||
3 | opportunity to irrevocably elect to receive an amount | ||||||
4 | determined by the System to be equal to 70% of the net present | ||||||
5 | value of his or her pension benefits in lieu of receiving any | ||||||
6 | pension benefit. The offer shall specify the dollar amount that | ||||||
7 | the eligible person will receive if he or she so elects and | ||||||
8 | shall expire when a subsequent offer is made to an eligible | ||||||
9 | person. The System shall make a good faith effort to contact | ||||||
10 | every eligible person to notify him or her of the election and | ||||||
11 | of the amount of the accelerated pension benefit payment. | ||||||
12 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
13 | eligible person may irrevocably elect to receive an accelerated | ||||||
14 | pension benefit payment in the amount that the System offers | ||||||
15 | under this subsection in lieu of receiving any pension benefit. | ||||||
16 | A person who elects to receive an accelerated pension benefit | ||||||
17 | payment under this Section may not elect to proceed under the | ||||||
18 | Retirement Systems Reciprocal Act with respect to service under | ||||||
19 | this Article. | ||||||
20 | (c) A person's credits and creditable service under this | ||||||
21 | Article shall be terminated upon the person's receipt of an | ||||||
22 | accelerated pension benefit payment under this Section, and no | ||||||
23 | other benefit shall be paid under this Article based on those | ||||||
24 | terminated credits and creditable service, including any | ||||||
25 | retirement, survivor, or other benefit; except that to the | ||||||
26 | extent that participation, benefits, or premiums under the |
| |||||||
| |||||||
1 | State Employees Group Insurance Act of 1971 are based on the | ||||||
2 | amount of service credit, the terminated service credit shall | ||||||
3 | be used for that purpose. | ||||||
4 | (d) If a person who has received an accelerated pension | ||||||
5 | benefit payment under this Section returns to active service | ||||||
6 | under this Article, then: | ||||||
7 | (1) Any benefits under the System earned as a result of | ||||||
8 | that return to active service shall be based solely on the | ||||||
9 | person's credits and creditable service arising from the | ||||||
10 | return to active service. | ||||||
11 | (2) The accelerated pension benefit payment may not be | ||||||
12 | repaid to the System, and the terminated credits and | ||||||
13 | creditable service may not under any circumstances be | ||||||
14 | reinstated. | ||||||
15 | (e) As a condition of receiving an accelerated pension | ||||||
16 | benefit payment, an eligible person must have another | ||||||
17 | retirement plan or account qualified under the Internal Revenue | ||||||
18 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
19 | payment to be rolled into. The accelerated pension benefit | ||||||
20 | payment under this Section may be subject to withholding or | ||||||
21 | payment of applicable taxes, but to the extent permitted by | ||||||
22 | federal law, a person who receives an accelerated pension | ||||||
23 | benefit payment under this Section must direct the System to | ||||||
24 | pay all of that payment as a rollover into another retirement | ||||||
25 | plan or account qualified under the Internal Revenue Code of | ||||||
26 | 1986, as amended. |
| |||||||
| |||||||
1 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
2 | Illinois Finance Authority and the General Assembly the amount | ||||||
3 | by which the total amount of accelerated pension benefit | ||||||
4 | payments made under this Section exceed the amount appropriated | ||||||
5 | to the System for the purpose of making those payments. | ||||||
6 | (g) The Board shall adopt any rules necessary to implement | ||||||
7 | this Section. | ||||||
8 | (h) No provision of this Section shall be interpreted in a | ||||||
9 | way that would cause the applicable System to cease to be a | ||||||
10 | qualified plan under the Internal Revenue Code of 1986. | ||||||
11 | (40 ILCS 5/16-203) | ||||||
12 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
13 | which has been held unconstitutional)
| ||||||
14 | Sec. 16-203. Application and expiration of new benefit | ||||||
15 | increases. | ||||||
16 | (a) As used in this Section, "new benefit increase" means | ||||||
17 | an increase in the amount of any benefit provided under this | ||||||
18 | Article, or an expansion of the conditions of eligibility for | ||||||
19 | any benefit under this Article, that results from an amendment | ||||||
20 | to this Code that takes effect after June 1, 2005 (the | ||||||
21 | effective date of Public Act 94-4). "New benefit increase", | ||||||
22 | however, does not include any benefit increase resulting from | ||||||
23 | the changes made to this Article by Public Act 95-910 or by | ||||||
24 | this amendatory Act of the 100th General Assembly this | ||||||
25 | amendatory Act of the 95th General Assembly . |
| |||||||
| |||||||
1 | (b) Notwithstanding any other provision of this Code or any | ||||||
2 | subsequent amendment to this Code, every new benefit increase | ||||||
3 | is subject to this Section and shall be deemed to be granted | ||||||
4 | only in conformance with and contingent upon compliance with | ||||||
5 | the provisions of this Section.
| ||||||
6 | (c) The Public Act enacting a new benefit increase must | ||||||
7 | identify and provide for payment to the System of additional | ||||||
8 | funding at least sufficient to fund the resulting annual | ||||||
9 | increase in cost to the System as it accrues. | ||||||
10 | Every new benefit increase is contingent upon the General | ||||||
11 | Assembly providing the additional funding required under this | ||||||
12 | subsection. The Commission on Government Forecasting and | ||||||
13 | Accountability shall analyze whether adequate additional | ||||||
14 | funding has been provided for the new benefit increase and | ||||||
15 | shall report its analysis to the Public Pension Division of the | ||||||
16 | Department of Financial and Professional Regulation. A new | ||||||
17 | benefit increase created by a Public Act that does not include | ||||||
18 | the additional funding required under this subsection is null | ||||||
19 | and void. If the Public Pension Division determines that the | ||||||
20 | additional funding provided for a new benefit increase under | ||||||
21 | this subsection is or has become inadequate, it may so certify | ||||||
22 | to the Governor and the State Comptroller and, in the absence | ||||||
23 | of corrective action by the General Assembly, the new benefit | ||||||
24 | increase shall expire at the end of the fiscal year in which | ||||||
25 | the certification is made.
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26 | (d) Every new benefit increase shall expire 5 years after |
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1 | its effective date or on such earlier date as may be specified | ||||||
2 | in the language enacting the new benefit increase or provided | ||||||
3 | under subsection (c). This does not prevent the General | ||||||
4 | Assembly from extending or re-creating a new benefit increase | ||||||
5 | by law. | ||||||
6 | (e) Except as otherwise provided in the language creating | ||||||
7 | the new benefit increase, a new benefit increase that expires | ||||||
8 | under this Section continues to apply to persons who applied | ||||||
9 | and qualified for the affected benefit while the new benefit | ||||||
10 | increase was in effect and to the affected beneficiaries and | ||||||
11 | alternate payees of such persons, but does not apply to any | ||||||
12 | other person, including without limitation a person who | ||||||
13 | continues in service after the expiration date and did not | ||||||
14 | apply and qualify for the affected benefit while the new | ||||||
15 | benefit increase was in effect.
| ||||||
16 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) | ||||||
17 | (40 ILCS 5/18-161.5 new) | ||||||
18 | Sec. 18-161.5. Accelerated pension benefit payment. | ||||||
19 | (a) As used in this Section: | ||||||
20 | "Eligible person" means a person who: | ||||||
21 | (1) has terminated service; | ||||||
22 | (2) has accrued sufficient service credit to be | ||||||
23 | eligible to receive a retirement annuity under this | ||||||
24 | Article; | ||||||
25 | (3) has not received any retirement annuity under this |
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1 | Article; and | ||||||
2 | (4) does not have a QILDRO in effect against him or her | ||||||
3 | under this Article. | ||||||
4 | "Pension benefit" means the benefits under this Article, or | ||||||
5 | Article 1 as it relates to those benefits, including any | ||||||
6 | anticipated annual increases, that an eligible person is | ||||||
7 | entitled to upon attainment of the applicable retirement age. | ||||||
8 | "Pension benefit" also includes applicable survivor's or | ||||||
9 | disability benefits. | ||||||
10 | (b) Before January 1, 2018, the System shall calculate, | ||||||
11 | using actuarial tables and other assumptions adopted by the | ||||||
12 | Board, the net present value of pension benefits for each | ||||||
13 | eligible person and shall offer each eligible person the | ||||||
14 | opportunity to irrevocably elect to receive an amount | ||||||
15 | determined by the System to be equal to 70% of the net present | ||||||
16 | value of his or her pension benefits in lieu of receiving any | ||||||
17 | pension benefit. The offer shall specify the dollar amount that | ||||||
18 | the eligible person will receive if he or she so elects and | ||||||
19 | shall expire when a subsequent offer is made to an eligible | ||||||
20 | person. The System shall make a good faith effort to contact | ||||||
21 | every eligible person to notify him or her of the election and | ||||||
22 | of the amount of the accelerated pension benefit payment. | ||||||
23 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
24 | eligible person may irrevocably elect to receive an accelerated | ||||||
25 | pension benefit payment in the amount that the System offers | ||||||
26 | under this subsection in lieu of receiving any pension benefit. |
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1 | A person who elects to receive an accelerated pension benefit | ||||||
2 | payment under this Section may not elect to proceed under the | ||||||
3 | Retirement Systems Reciprocal Act with respect to service under | ||||||
4 | this Article. | ||||||
5 | (c) A person's credits and creditable service under this | ||||||
6 | Article shall be terminated upon the person's receipt of an | ||||||
7 | accelerated pension benefit payment under this Section, and no | ||||||
8 | other benefit shall be paid under this Article based on those | ||||||
9 | terminated credits and creditable service, including any | ||||||
10 | retirement, survivor, or other benefit; except that to the | ||||||
11 | extent that participation, benefits, or premiums under the | ||||||
12 | State Employees Group Insurance Act of 1971 are based on the | ||||||
13 | amount of service credit, the terminated service credit shall | ||||||
14 | be used for that purpose. | ||||||
15 | (d) If a person who has received an accelerated pension | ||||||
16 | benefit payment under this Section returns to active service | ||||||
17 | under this Article, then: | ||||||
18 | (1) Any benefits under the System earned as a result of | ||||||
19 | that return to active service shall be based solely on the | ||||||
20 | person's credits and creditable service arising from the | ||||||
21 | return to active service. | ||||||
22 | (2) The accelerated pension benefit payment may not be | ||||||
23 | repaid to the System, and the terminated credits and | ||||||
24 | creditable service may not under any circumstances be | ||||||
25 | reinstated. | ||||||
26 | (e) As a condition of receiving an accelerated pension |
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| |||||||
1 | benefit payment, an eligible person must have another | ||||||
2 | retirement plan or account qualified under the Internal Revenue | ||||||
3 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
4 | payment to be rolled into. The accelerated pension benefit | ||||||
5 | payment under this Section may be subject to withholding or | ||||||
6 | payment of applicable taxes, but to the extent permitted by | ||||||
7 | federal law, a person who receives an accelerated pension | ||||||
8 | benefit payment under this Section must direct the System to | ||||||
9 | pay all of that payment as a rollover into another retirement | ||||||
10 | plan or account qualified under the Internal Revenue Code of | ||||||
11 | 1986, as amended. | ||||||
12 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
13 | Illinois Finance Authority and the General Assembly the amount | ||||||
14 | by which the total amount of accelerated pension benefit | ||||||
15 | payments made under this Section exceed the amount appropriated | ||||||
16 | to the System for the purpose of making those payments. | ||||||
17 | (g) The Board shall adopt any rules necessary to implement | ||||||
18 | this Section. | ||||||
19 | (h) No provision of this Section shall be interpreted in a | ||||||
20 | way that would cause the applicable System to cease to be a | ||||||
21 | qualified plan under the Internal Revenue Code of 1986. | ||||||
22 | (40 ILCS 5/18-169)
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23 | Sec. 18-169. Application and expiration of new benefit | ||||||
24 | increases. | ||||||
25 | (a) As used in this Section, "new benefit increase" means |
| |||||||
| |||||||
1 | an increase in the amount of any benefit provided under this | ||||||
2 | Article, or an expansion of the conditions of eligibility for | ||||||
3 | any benefit under this Article, that results from an amendment | ||||||
4 | to this Code that takes effect after June 1, 2005 (the | ||||||
5 | effective date of Public Act 94-4). "New benefit increase", | ||||||
6 | however, does not include any benefit increase resulting from | ||||||
7 | the changes made to this Article by this amendatory Act of the | ||||||
8 | 100th General Assembly the effective date of this amendatory | ||||||
9 | Act of the 94th General Assembly . | ||||||
10 | (b) Notwithstanding any other provision of this Code or any | ||||||
11 | subsequent amendment to this Code, every new benefit increase | ||||||
12 | is subject to this Section and shall be deemed to be granted | ||||||
13 | only in conformance with and contingent upon compliance with | ||||||
14 | the provisions of this Section.
| ||||||
15 | (c) The Public Act enacting a new benefit increase must | ||||||
16 | identify and provide for payment to the System of additional | ||||||
17 | funding at least sufficient to fund the resulting annual | ||||||
18 | increase in cost to the System as it accrues. | ||||||
19 | Every new benefit increase is contingent upon the General | ||||||
20 | Assembly providing the additional funding required under this | ||||||
21 | subsection. The Commission on Government Forecasting and | ||||||
22 | Accountability shall analyze whether adequate additional | ||||||
23 | funding has been provided for the new benefit increase and | ||||||
24 | shall report its analysis to the Public Pension Division of the | ||||||
25 | Department of Financial and Professional Regulation. A new | ||||||
26 | benefit increase created by a Public Act that does not include |
| |||||||
| |||||||
1 | the additional funding required under this subsection is null | ||||||
2 | and void. If the Public Pension Division determines that the | ||||||
3 | additional funding provided for a new benefit increase under | ||||||
4 | this subsection is or has become inadequate, it may so certify | ||||||
5 | to the Governor and the State Comptroller and, in the absence | ||||||
6 | of corrective action by the General Assembly, the new benefit | ||||||
7 | increase shall expire at the end of the fiscal year in which | ||||||
8 | the certification is made.
| ||||||
9 | (d) Every new benefit increase shall expire 5 years after | ||||||
10 | its effective date or on such earlier date as may be specified | ||||||
11 | in the language enacting the new benefit increase or provided | ||||||
12 | under subsection (c). This does not prevent the General | ||||||
13 | Assembly from extending or re-creating a new benefit increase | ||||||
14 | by law. | ||||||
15 | (e) Except as otherwise provided in the language creating | ||||||
16 | the new benefit increase, a new benefit increase that expires | ||||||
17 | under this Section continues to apply to persons who applied | ||||||
18 | and qualified for the affected benefit while the new benefit | ||||||
19 | increase was in effect and to the affected beneficiaries and | ||||||
20 | alternate payees of such persons, but does not apply to any | ||||||
21 | other person, including without limitation a person who | ||||||
22 | continues in service after the expiration date and did not | ||||||
23 | apply and qualify for the affected benefit while the new | ||||||
24 | benefit increase was in effect.
| ||||||
25 | (Source: P.A. 94-4, eff. 6-1-05.)
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1 | Section 30. The State Pension Funds Continuing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Appropriation Act is amended by adding Section 1.9 as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (40 ILCS 15/1.9 new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Sec. 1.9. Appropriations for State Pension Obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Acceleration Bonds. If for any reason the aggregate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | appropriations made available are insufficient to meet the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | levels required for the payment of principal and interest due | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | on State Pension Obligation Acceleration Bonds under Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | 7.6 of the General Obligation Bond Act, this Section shall | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | constitute a continuing appropriation of all amounts necessary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | for those purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | becoming law.
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