|
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4045 Introduced , by Rep. Barbara Flynn Currie SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Pension Code. In Articles 2, 14, 15, 16, and 17, requires active Tier 1 employees to elect either (i) to have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) to maintain current benefits except for additional limits on pensionable salary; provides additional benefits to persons electing item (i). Makes funding changes, including shifting certain costs to employers under Articles 15 and 16. Restricts participation in the General Assembly Retirement System to persons who became participants before the effective date. In Articles 14, 15, and 16, requires those Systems to offer an optional accelerated benefit payment to certain members in lieu of receiving a pension. Provides separate benefits for certain persons who become participants under Article 14, 15, or 16. Requires those retirement systems to establish a defined contribution plan for certain members; in Articles 7, 8, 9, 10, 11, 12, 13, and 17, establishes similar benefits if the governing body of the unit of local government adopts those benefits. In Article 17, requires the State to contribute $215,200,000 for fiscal year 2017. Provides a continuing appropriation for the Article 17 State contribution and for certain consideration payments. Amends various Acts to make conforming changes. Provides for the transfer of certain amounts to the Pension Stabilization Fund. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act; exempts certain existing agreements. Makes other changes. Includes severability provisions. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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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 Illinois Public Labor Relations Act is |
5 | | amended by changing Sections 10 and 15 and by adding Section |
6 | | 7.6 as follows: |
7 | | (5 ILCS 315/7.6 new) |
8 | | Sec. 7.6. No collective bargaining or interest arbitration |
9 | | regarding certain changes to the Illinois Pension Code. |
10 | | (a) Notwithstanding any other provision of this Act, |
11 | | employers shall not be required to bargain over matters |
12 | | affected by the changes, the impact of the changes, and the |
13 | | implementation of the changes to Article 14, 15, 16, or 17 of |
14 | | the Illinois Pension Code made by the addition of Section |
15 | | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois |
16 | | Pension Code, which are deemed to be prohibited subjects of |
17 | | bargaining. Notwithstanding any provision of this Act, the |
18 | | changes, impact of the changes, or implementation of the |
19 | | changes to Article 14, 15, 16, or 17 of the Illinois Pension |
20 | | Code made by the addition of Section 14-106.5, 15-132.9, |
21 | | 16-122.9, or 17-115.5 of the Illinois Pension Code shall not be |
22 | | subject to interest arbitration or any award issued pursuant to |
23 | | interest arbitration. The provisions of this Section shall not |
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1 | | apply to an employment contract or collective bargaining |
2 | | agreement that is in effect on the effective date of this |
3 | | amendatory Act of the 100th General Assembly. However, any such |
4 | | contract or agreement that is modified, amended, renewed, or |
5 | | superseded after the effective date of this amendatory Act of |
6 | | the 100th General Assembly shall be subject to the provisions |
7 | | of this Section. Each employer with active employees |
8 | | participating in a retirement system or pension fund |
9 | | established under Article 14, 15, 16, or 17 of the Illinois |
10 | | Pension Code shall comply with and be subject to the provisions |
11 | | of this amendatory Act of the 100th General Assembly. The |
12 | | provisions of this Section shall not apply to the ability of |
13 | | any employer and employee representative to bargain |
14 | | collectively with regard to the pick up of employee |
15 | | contributions pursuant to Section 14-133.1, 15-157.1, |
16 | | 16-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code. |
17 | | (b) Subject to and except for the matters set forth in |
18 | | subsection (a) of this Section that are deemed prohibited |
19 | | subjects of bargaining, nothing in this Section shall be |
20 | | construed as otherwise limiting any of the obligations and |
21 | | requirements applicable to employers under any of the |
22 | | provisions of this Act, including, but not limited to, the |
23 | | requirement to bargain collectively with regard to policy |
24 | | matters directly affecting wages, hours, and terms and |
25 | | conditions of employment as well as the impact thereon upon |
26 | | request by employee representatives. Subject to and except for |
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1 | | the matters set forth in subsection (a) of this Section that |
2 | | are deemed prohibited subjects of bargaining, nothing in this |
3 | | Section shall be construed as otherwise limiting any of the |
4 | | rights of employees or employee representatives under the |
5 | | provisions of this Act. |
6 | | (c) In case of any conflict between this Section and any |
7 | | other provisions of this Act or any other law, the provisions |
8 | | of this Section shall control.
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9 | | (5 ILCS 315/10) (from Ch. 48, par. 1610)
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10 | | Sec. 10. Unfair labor practices.
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11 | | (a) It shall be an unfair labor practice
for an employer or |
12 | | its agents:
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13 | | (1) to interfere with, restrain or coerce public |
14 | | employees in the
exercise of the rights guaranteed in this |
15 | | Act or to dominate or interfere
with the formation, |
16 | | existence or administration of any labor organization
or |
17 | | contribute financial or other support to it; provided, an |
18 | | employer shall
not be prohibited from permitting employees |
19 | | to confer with him during
working hours without loss of |
20 | | time or pay;
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21 | | (2) to discriminate in regard to hire or tenure of |
22 | | employment or any term
or condition of employment in order |
23 | | to encourage or discourage membership
in or other support |
24 | | for any labor organization. Nothing in this Act or any
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25 | | other law precludes a public employer from making an |
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1 | | agreement with a labor
organization to require as a |
2 | | condition of employment the payment of a fair
share under |
3 | | paragraph (e) of Section 6;
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4 | | (3) to discharge or otherwise discriminate against a |
5 | | public employee because
he has signed or filed an |
6 | | affidavit, petition or charge or provided any
information |
7 | | or testimony under this Act;
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8 | | (4) subject to and except as provided in Section 7.6, |
9 | | to refuse to bargain collectively in good faith with a |
10 | | labor
organization which is the exclusive representative |
11 | | of public employees in
an appropriate unit, including, but |
12 | | not limited to, the discussing of
grievances with the |
13 | | exclusive representative; however, no actions of the |
14 | | employer taken to implement or otherwise comply with the |
15 | | provisions of subsection (a) of Section 7.6 shall |
16 | | constitute or give rise to an unfair labor practice under |
17 | | this Act;
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18 | | (5) to violate any of the rules and regulations |
19 | | established by the Board
with jurisdiction over them |
20 | | relating to the conduct of representation elections
or the |
21 | | conduct affecting the representation elections;
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22 | | (6) to expend or cause the expenditure of public funds |
23 | | to any external
agent, individual, firm, agency, |
24 | | partnership or association in any attempt
to influence the |
25 | | outcome of representational elections held pursuant to
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26 | | Section 9 of this Act; provided, that nothing in this |
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1 | | subsection shall be
construed to limit an employer's right |
2 | | to internally communicate with its
employees as provided in |
3 | | subsection (c) of this Section, to be represented
on any |
4 | | matter pertaining to unit determinations, unfair labor |
5 | | practice
charges or pre-election conferences in any formal |
6 | | or informal proceeding
before the Board, or to seek or |
7 | | obtain advice from legal counsel.
Nothing in this paragraph |
8 | | shall be construed to prohibit an employer from
expending |
9 | | or causing the expenditure of public funds on, or seeking |
10 | | or
obtaining services or advice from, any organization, |
11 | | group, or association
established by and including public |
12 | | or educational employers, whether
covered by this Act, the |
13 | | Illinois Educational Labor Relations Act or the
public |
14 | | employment labor relations law of any other state or the |
15 | | federal
government, provided that such services or advice |
16 | | are generally available
to the membership of the |
17 | | organization, group or association, and are not
offered |
18 | | solely in an attempt to influence the outcome of a |
19 | | particular
representational election; or
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20 | | (7) to refuse to reduce a collective bargaining |
21 | | agreement to writing
or to refuse to sign such agreement.
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22 | | (b) It shall be an unfair labor practice for a labor |
23 | | organization or its agents:
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24 | | (1) to restrain or coerce public employees in the |
25 | | exercise of the rights
guaranteed in this Act, provided, |
26 | | (i) that this paragraph shall
not impair the right of a |
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1 | | labor organization to prescribe its own rules
with respect |
2 | | to the acquisition or retention of membership therein or |
3 | | the
determination of fair share payments and (ii) that a |
4 | | labor organization
or its agents shall commit an unfair |
5 | | labor practice under this paragraph in
duty of fair |
6 | | representation cases only by intentional misconduct in
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7 | | representing employees under this Act;
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8 | | (2) to restrain or coerce a public employer in the |
9 | | selection of his
representatives for the purposes of |
10 | | collective bargaining or the settlement
of grievances; or
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11 | | (3) to cause, or attempt to cause, an employer to |
12 | | discriminate against
an employee in violation of |
13 | | subsection (a)(2);
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14 | | (4) to refuse to bargain collectively in good faith |
15 | | with a public employer,
if it has been designated in |
16 | | accordance with the provisions of this Act
as the exclusive |
17 | | representative of public employees in an appropriate unit;
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18 | | (5) to violate any of the rules and regulations |
19 | | established by the
boards with jurisdiction over them |
20 | | relating to the conduct of
representation elections or the |
21 | | conduct affecting the representation elections;
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22 | | (6) to discriminate against any employee because he has |
23 | | signed or filed
an affidavit, petition or charge or |
24 | | provided any information or testimony
under this Act;
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25 | | (7) to picket or cause to be picketed, or threaten to |
26 | | picket or cause
to be picketed, any public employer where |
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1 | | an object thereof is forcing or
requiring an employer to |
2 | | recognize or bargain with a labor organization
of the |
3 | | representative of its employees, or forcing or requiring |
4 | | the employees
of an employer to accept or select such labor |
5 | | organization as their collective
bargaining |
6 | | representative, unless such labor organization is |
7 | | currently
certified as the representative of such |
8 | | employees:
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9 | | (A) where the employer has lawfully recognized in |
10 | | accordance with this
Act any labor organization and a |
11 | | question concerning representation may
not |
12 | | appropriately be raised under Section 9 of this Act;
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13 | | (B) where within the preceding 12 months a valid |
14 | | election under Section
9 of this Act has been |
15 | | conducted; or
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16 | | (C) where such picketing has been conducted |
17 | | without a petition under Section
9 being filed within a |
18 | | reasonable period of time not to exceed 30 days from
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19 | | the commencement of such picketing; provided that when |
20 | | such a petition has
been filed the Board shall |
21 | | forthwith, without regard to the provisions of
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22 | | subsection (a) of Section 9 or the absence of a showing |
23 | | of a substantial
interest on the part of the labor |
24 | | organization, direct an election in such
unit as the |
25 | | Board finds to be appropriate and shall certify the |
26 | | results
thereof; provided further, that nothing in |
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1 | | this subparagraph shall be construed
to prohibit any |
2 | | picketing or other publicity for the purpose of |
3 | | truthfully
advising the public that an employer does |
4 | | not employ members of, or have a
contract with, a labor |
5 | | organization unless an effect of such picketing is
to |
6 | | induce any individual employed by any other person in |
7 | | the course of his
employment, not to pick up, deliver, |
8 | | or transport any goods or not to
perform any services; |
9 | | or
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10 | | (8) to refuse to reduce a collective bargaining |
11 | | agreement to writing
or to refuse to sign such agreement.
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12 | | (c) The expressing of any views, argument, or opinion or |
13 | | the
dissemination thereof, whether in written, printed, |
14 | | graphic, or visual
form, shall not constitute or be evidence of |
15 | | an unfair labor practice under
any of the provisions of this |
16 | | Act, if such expression contains no threat of
reprisal or force |
17 | | or promise of benefit.
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18 | | (Source: P.A. 86-412; 87-736 .)
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19 | | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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20 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
21 | | which has been
held unconstitutional)
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22 | | Sec. 15. Act Takes Precedence. |
23 | | (a) In case of any conflict between the
provisions of this |
24 | | Act and any other law (other than Section 5 of the State |
25 | | Employees Group Insurance Act of 1971 and other than the |
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1 | | changes made to the Illinois Pension Code by this amendatory |
2 | | Act of the 96th General Assembly), executive order or |
3 | | administrative
regulation relating to wages, hours and |
4 | | conditions of employment and employment
relations, the |
5 | | provisions of this Act or any collective bargaining agreement
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6 | | negotiated thereunder shall prevail and control.
Nothing in |
7 | | this Act shall be construed to replace or diminish the
rights |
8 | | of employees established by Sections 28 and 28a of the |
9 | | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 |
10 | | of the Regional Transportation
Authority Act. The provisions of |
11 | | this Act are subject to Section 5 of the State Employees Group |
12 | | Insurance Act of 1971. Nothing in this Act shall be construed |
13 | | to replace the necessity of complaints against a sworn peace |
14 | | officer, as defined in Section 2(a) of the Uniform Peace |
15 | | Officer Disciplinary Act, from having a complaint supported by |
16 | | a sworn affidavit.
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17 | | (b) Except as provided in subsection (a) above, any |
18 | | collective bargaining
contract between a public employer and a |
19 | | labor organization executed pursuant
to this Act shall |
20 | | supersede any contrary statutes, charters, ordinances, rules
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21 | | or regulations relating to wages, hours and conditions of |
22 | | employment and
employment relations adopted by the public |
23 | | employer or its agents. Any collective
bargaining agreement |
24 | | entered into prior to the effective date of this Act
shall |
25 | | remain in full force during its duration.
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26 | | (c) It is the public policy of this State, pursuant to |
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1 | | paragraphs (h)
and (i) of Section 6 of Article VII of the |
2 | | Illinois Constitution, that the
provisions of this Act are the |
3 | | exclusive exercise by the State of powers
and functions which |
4 | | might otherwise be exercised by home rule units. Such
powers |
5 | | and functions may not be exercised concurrently, either |
6 | | directly
or indirectly, by any unit of local government, |
7 | | including any home rule
unit, except as otherwise authorized by |
8 | | this Act. |
9 | | (d) Notwithstanding any other provision of law, no |
10 | | collective bargaining agreement entered into, renewed, or |
11 | | extended after the effective date of this amendatory Act of the |
12 | | 100th General Assembly or any arbitration award issued under |
13 | | such collective bargaining agreement may violate or conflict |
14 | | with the changes made by this amendatory Act of the 100th |
15 | | General Assembly. |
16 | | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .) |
17 | | Section 10. The State Employees Group Insurance Act of 1971 |
18 | | is amended by changing Sections 3 and 10 as follows:
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19 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
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20 | | Sec. 3. Definitions. Unless the context otherwise |
21 | | requires, the
following words and phrases as used in this Act |
22 | | shall have the following
meanings. The Department may define |
23 | | these and other words and phrases
separately for the purpose of |
24 | | implementing specific programs providing benefits
under this |
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1 | | Act.
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2 | | (a) "Administrative service organization" means any |
3 | | person, firm or
corporation experienced in the handling of |
4 | | claims which is
fully qualified, financially sound and capable |
5 | | of meeting the service
requirements of a contract of |
6 | | administration executed with the Department.
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7 | | (b) "Annuitant" means (1) an employee who retires, or has |
8 | | retired,
on or after January 1, 1966 on an immediate annuity |
9 | | under the provisions
of Articles 2, 14 (including an employee |
10 | | who has elected to receive an alternative retirement |
11 | | cancellation payment under Section 14-108.5 of the Illinois |
12 | | Pension Code in lieu of an annuity or who meets the criteria |
13 | | for retirement, but in lieu of receiving an annuity under that |
14 | | Article has elected to receive an accelerated pension benefit |
15 | | payment under Section 14-147.5 of that Article ), 15 (including |
16 | | an employee who has retired under the optional
retirement |
17 | | program established under Section 15-158.2 or who meets the |
18 | | criteria for retirement but in lieu of receiving an annuity |
19 | | under that Article has elected to receive an accelerated |
20 | | pension benefit payment under Section 15-185.5 of the Article ),
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21 | | paragraphs (2), (3), or (5) of Section 16-106 (including an |
22 | | employee who meets the criteria for retirement, but in lieu of |
23 | | receiving an annuity under that Article has elected to receive |
24 | | an accelerated pension benefit payment under Section 16-190.5 |
25 | | of the Illinois Pension Code) , or
Article 18 of the Illinois |
26 | | Pension Code; (2) any person who was receiving
group insurance |
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1 | | coverage under this Act as of March 31, 1978 by
reason of his |
2 | | status as an annuitant, even though the annuity in relation
to |
3 | | which such coverage was provided is a proportional annuity |
4 | | based on less
than the minimum period of service required for a |
5 | | retirement annuity in
the system involved; (3) any person not |
6 | | otherwise covered by this Act
who has retired as a |
7 | | participating member under Article 2 of the Illinois
Pension |
8 | | Code but is ineligible for the retirement annuity under Section
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9 | | 2-119 of the Illinois Pension Code; (4) the spouse of any |
10 | | person who
is receiving a retirement annuity under Article 18 |
11 | | of the Illinois Pension
Code and who is covered under a group |
12 | | health insurance program sponsored
by a governmental employer |
13 | | other than the State of Illinois and who has
irrevocably |
14 | | elected to waive his or her coverage under this Act and to have
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15 | | his or her spouse considered as the "annuitant" under this Act |
16 | | and not as
a "dependent"; or (5) an employee who retires, or |
17 | | has retired, from a
qualified position, as determined according |
18 | | to rules promulgated by the
Director, under a qualified local |
19 | | government, a qualified rehabilitation
facility, a qualified |
20 | | domestic violence shelter or service, or a qualified child |
21 | | advocacy center. (For definition
of "retired employee", see (p) |
22 | | post).
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23 | | (b-5) (Blank).
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24 | | (b-6) (Blank).
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25 | | (b-7) (Blank).
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26 | | (c) "Carrier" means (1) an insurance company, a corporation |
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1 | | organized
under the Limited Health Service Organization Act or |
2 | | the Voluntary Health
Services Plan Act, a partnership, or other |
3 | | nongovernmental organization,
which is authorized to do group |
4 | | life or group health insurance business in
Illinois, or (2) the |
5 | | State of Illinois as a self-insurer.
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6 | | (d) "Compensation" means salary or wages payable on a |
7 | | regular
payroll by the State Treasurer on a warrant of the |
8 | | State Comptroller out
of any State, trust or federal fund, or |
9 | | by the Governor of the State
through a disbursing officer of |
10 | | the State out of a trust or out of
federal funds, or by any |
11 | | Department out of State, trust, federal or
other funds held by |
12 | | the State Treasurer or the Department, to any person
for |
13 | | personal services currently performed, and ordinary or |
14 | | accidental
disability benefits under Articles 2, 14, 15 |
15 | | (including ordinary or accidental
disability benefits under |
16 | | the optional retirement program established under
Section |
17 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
18 | | Article 18 of the Illinois Pension Code, for disability
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19 | | incurred after January 1, 1966, or benefits payable under the |
20 | | Workers'
Compensation or Occupational Diseases Act or benefits |
21 | | payable under a sick
pay plan established in accordance with |
22 | | Section 36 of the State Finance Act.
"Compensation" also means |
23 | | salary or wages paid to an employee of any
qualified local |
24 | | government, qualified rehabilitation facility,
qualified |
25 | | domestic violence shelter or service, or qualified child |
26 | | advocacy center.
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1 | | (e) "Commission" means the State Employees Group Insurance |
2 | | Advisory
Commission authorized by this Act. Commencing July 1, |
3 | | 1984, "Commission"
as used in this Act means the Commission on |
4 | | Government Forecasting and Accountability as
established by |
5 | | the Legislative Commission Reorganization Act of 1984.
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6 | | (f) "Contributory", when referred to as contributory |
7 | | coverage, shall
mean optional coverages or benefits elected by |
8 | | the member toward the cost of
which such member makes |
9 | | contribution, or which are funded in whole or in part
through |
10 | | the acceptance of a reduction in earnings or the foregoing of |
11 | | an
increase in earnings by an employee, as distinguished from |
12 | | noncontributory
coverage or benefits which are paid entirely by |
13 | | the State of Illinois
without reduction of the member's salary.
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14 | | (g) "Department" means any department, institution, board,
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15 | | commission, officer, court or any agency of the State |
16 | | government
receiving appropriations and having power to |
17 | | certify payrolls to the
Comptroller authorizing payments of |
18 | | salary and wages against such
appropriations as are made by the |
19 | | General Assembly from any State fund, or
against trust funds |
20 | | held by the State Treasurer and includes boards of
trustees of |
21 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 |
22 | | of the Illinois Pension Code. "Department" also includes the |
23 | | Illinois
Comprehensive Health Insurance Board, the Board of |
24 | | Examiners established under
the Illinois Public Accounting |
25 | | Act, and the Illinois Finance Authority.
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26 | | (h) "Dependent", when the term is used in the context of |
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1 | | the health
and life plan, means a member's spouse and any child |
2 | | (1) from
birth to age 26 including an adopted child, a child |
3 | | who lives with the
member from the time of the filing of a |
4 | | petition for adoption until entry
of an order of adoption, a |
5 | | stepchild or adjudicated child, or a child who lives with the |
6 | | member
if such member is a court appointed guardian of the |
7 | | child or (2)
age 19 or over who has a mental or physical |
8 | | disability from a cause originating prior to the age of 19 (age |
9 | | 26 if enrolled as an adult child dependent). For
the health |
10 | | plan only, the term "dependent" also includes (1) any person
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11 | | enrolled prior to the effective date of this Section who is |
12 | | dependent upon
the member to the extent that the member may |
13 | | claim such person as a
dependent for income tax deduction |
14 | | purposes and (2) any person who
has received after June 30, |
15 | | 2000 an organ transplant and who is financially
dependent upon |
16 | | the member and eligible to be claimed as a dependent for income
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17 | | tax purposes. A member requesting to cover any dependent must |
18 | | provide documentation as requested by the Department of Central |
19 | | Management Services and file with the Department any and all |
20 | | forms required by the Department.
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21 | | (i) "Director" means the Director of the Illinois |
22 | | Department of Central
Management Services.
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23 | | (j) "Eligibility period" means the period of time a member |
24 | | has to
elect enrollment in programs or to select benefits |
25 | | without regard to
age, sex or health.
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26 | | (k) "Employee" means and includes each officer or employee |
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1 | | in the
service of a department who (1) receives his |
2 | | compensation for
service rendered to the department on a |
3 | | warrant issued pursuant to a payroll
certified by a department |
4 | | or on a warrant or check issued and drawn by a
department upon |
5 | | a trust, federal or other fund or on a warrant issued
pursuant |
6 | | to a payroll certified by an elected or duly appointed officer
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7 | | of the State or who receives payment of the performance of |
8 | | personal
services on a warrant issued pursuant to a payroll |
9 | | certified by a
Department and drawn by the Comptroller upon the |
10 | | State Treasurer against
appropriations made by the General |
11 | | Assembly from any fund or against
trust funds held by the State |
12 | | Treasurer, and (2) is employed full-time or
part-time in a |
13 | | position normally requiring actual performance of duty
during |
14 | | not less than 1/2 of a normal work period, as established by |
15 | | the
Director in cooperation with each department, except that |
16 | | persons elected
by popular vote will be considered employees |
17 | | during the entire
term for which they are elected regardless of |
18 | | hours devoted to the
service of the State, and (3) except that |
19 | | "employee" does not include any
person who is not eligible by |
20 | | reason of such person's employment to
participate in one of the |
21 | | State retirement systems under Articles 2, 14, 15
(either the |
22 | | regular Article 15 system or the optional retirement program
|
23 | | established under Section 15-158.2) or 18, or under paragraph |
24 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
25 | | Code, but such term does include persons who are employed |
26 | | during
the 6 month qualifying period under Article 14 of the |
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1 | | Illinois Pension
Code. Such term also includes any person who |
2 | | (1) after January 1, 1966,
is receiving ordinary or accidental |
3 | | disability benefits under Articles
2, 14, 15 (including |
4 | | ordinary or accidental disability benefits under the
optional |
5 | | retirement program established under Section 15-158.2), |
6 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
7 | | the
Illinois Pension Code, for disability incurred after |
8 | | January 1, 1966, (2)
receives total permanent or total |
9 | | temporary disability under the Workers'
Compensation Act or |
10 | | Occupational Disease Act as a result of injuries
sustained or |
11 | | illness contracted in the course of employment with the
State |
12 | | of Illinois, or (3) is not otherwise covered under this Act and |
13 | | has
retired as a participating member under Article 2 of the |
14 | | Illinois Pension
Code but is ineligible for the retirement |
15 | | annuity under Section 2-119 of
the Illinois Pension Code. |
16 | | However, a person who satisfies the criteria
of the foregoing |
17 | | definition of "employee" except that such person is made
|
18 | | ineligible to participate in the State Universities Retirement |
19 | | System by
clause (4) of subsection (a) of Section 15-107 of the |
20 | | Illinois Pension
Code is also an "employee" for the purposes of |
21 | | this Act. "Employee" also
includes any person receiving or |
22 | | eligible for benefits under a sick pay
plan established in |
23 | | accordance with Section 36 of the State Finance Act.
"Employee" |
24 | | also includes (i) each officer or employee in the service of a
|
25 | | qualified local government, including persons appointed as |
26 | | trustees of
sanitary districts regardless of hours devoted to |
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1 | | the service of the
sanitary district, (ii) each employee in the |
2 | | service of a qualified
rehabilitation facility, (iii) each |
3 | | full-time employee in the service of a
qualified domestic |
4 | | violence shelter or service, and (iv) each full-time employee |
5 | | in the service of a qualified child advocacy center, as |
6 | | determined according to
rules promulgated by the Director.
|
7 | | (l) "Member" means an employee, annuitant, retired |
8 | | employee or survivor. In the case of an annuitant or retired |
9 | | employee who first becomes an annuitant or retired employee on |
10 | | or after the effective date of this amendatory Act of the 97th |
11 | | General Assembly, the individual must meet the minimum vesting |
12 | | requirements of the applicable retirement system in order to be |
13 | | eligible for group insurance benefits under that system. In the |
14 | | case of a survivor who first becomes a survivor on or after the |
15 | | effective date of this amendatory Act of the 97th General |
16 | | Assembly, the deceased employee, annuitant, or retired |
17 | | employee upon whom the annuity is based must have been eligible |
18 | | to participate in the group insurance system under the |
19 | | applicable retirement system in order for the survivor to be |
20 | | eligible for group insurance benefits under that system.
|
21 | | (m) "Optional coverages or benefits" means those coverages |
22 | | or
benefits available to the member on his or her voluntary |
23 | | election, and at
his or her own expense.
|
24 | | (n) "Program" means the group life insurance, health |
25 | | benefits and other
employee benefits designed and contracted |
26 | | for by the Director under this Act.
|
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| | HB4045 | - 19 - | LRB100 12674 RPS 26063 b |
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1 | | (o) "Health plan" means a health benefits
program offered
|
2 | | by the State of Illinois for persons eligible for the plan.
|
3 | | (p) "Retired employee" means any person who would be an |
4 | | annuitant as
that term is defined herein but for the fact that |
5 | | such person retired prior to
January 1, 1966. Such term also |
6 | | includes any person formerly employed by
the University of |
7 | | Illinois in the Cooperative Extension Service who would
be an |
8 | | annuitant but for the fact that such person was made ineligible |
9 | | to
participate in the State Universities Retirement System by |
10 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
|
11 | | Pension Code.
|
12 | | (q) "Survivor" means a person receiving an annuity as a |
13 | | survivor of an
employee or of an annuitant. "Survivor" also |
14 | | includes: (1) the surviving
dependent of a person who satisfies |
15 | | the definition of "employee" except that
such person is made |
16 | | ineligible to participate in the State Universities
Retirement |
17 | | System by clause (4) of subsection (a)
of Section 15-107 of the |
18 | | Illinois Pension Code; (2) the surviving
dependent of any |
19 | | person formerly employed by the University of Illinois in
the |
20 | | Cooperative Extension Service who would be an annuitant except |
21 | | for the
fact that such person was made ineligible to |
22 | | participate in the State
Universities Retirement System by |
23 | | clause (4) of subsection (a) of Section
15-107 of the Illinois |
24 | | Pension Code; and (3) the surviving dependent of a person who |
25 | | was an annuitant under this Act by virtue of receiving an |
26 | | alternative retirement cancellation payment under Section |
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1 | | 14-108.5 of the Illinois Pension Code.
|
2 | | (q-2) "SERS" means the State Employees' Retirement System |
3 | | of Illinois, created under Article 14 of the Illinois Pension |
4 | | Code.
|
5 | | (q-3) "SURS" means the State Universities Retirement |
6 | | System, created under Article 15 of the Illinois Pension Code.
|
7 | | (q-4) "TRS" means the Teachers' Retirement System of the |
8 | | State of Illinois, created under Article 16 of the Illinois |
9 | | Pension Code.
|
10 | | (q-5) (Blank).
|
11 | | (q-6) (Blank).
|
12 | | (q-7) (Blank).
|
13 | | (r) "Medical services" means the services provided within |
14 | | the scope
of their licenses by practitioners in all categories |
15 | | licensed under the
Medical Practice Act of 1987.
|
16 | | (s) "Unit of local government" means any county, |
17 | | municipality,
township, school district (including a |
18 | | combination of school districts under
the Intergovernmental |
19 | | Cooperation Act), special district or other unit,
designated as |
20 | | a
unit of local government by law, which exercises limited |
21 | | governmental
powers or powers in respect to limited |
22 | | governmental subjects, any
not-for-profit association with a |
23 | | membership that primarily includes
townships and township |
24 | | officials, that has duties that include provision of
research |
25 | | service, dissemination of information, and other acts for the
|
26 | | purpose of improving township government, and that is funded |
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1 | | wholly or
partly in accordance with Section 85-15 of the |
2 | | Township Code; any
not-for-profit corporation or association, |
3 | | with a membership consisting
primarily of municipalities, that |
4 | | operates its own utility system, and
provides research, |
5 | | training, dissemination of information, or other acts to
|
6 | | promote cooperation between and among municipalities that |
7 | | provide utility
services and for the advancement of the goals |
8 | | and purposes of its
membership;
the Southern Illinois |
9 | | Collegiate Common Market, which is a consortium of higher
|
10 | | education institutions in Southern Illinois; the Illinois |
11 | | Association of
Park Districts; and any hospital provider that |
12 | | is owned by a county that has 100 or fewer hospital beds and |
13 | | has not already joined the program. "Qualified
local |
14 | | government" means a unit of local government approved by the |
15 | | Director and
participating in a program created under |
16 | | subsection (i) of Section 10 of this
Act.
|
17 | | (t) "Qualified rehabilitation facility" means any |
18 | | not-for-profit
organization that is accredited by the |
19 | | Commission on Accreditation of
Rehabilitation Facilities or |
20 | | certified by the Department
of Human Services (as successor to |
21 | | the Department of Mental Health
and Developmental |
22 | | Disabilities) to provide services to persons with
disabilities
|
23 | | and which receives funds from the State of Illinois for |
24 | | providing those
services, approved by the Director and |
25 | | participating in a program created
under subsection (j) of |
26 | | Section 10 of this Act.
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1 | | (u) "Qualified domestic violence shelter or service" means |
2 | | any Illinois
domestic violence shelter or service and its |
3 | | administrative offices funded
by the Department of Human |
4 | | Services (as successor to the Illinois Department of
Public |
5 | | Aid),
approved by the Director and
participating in a program |
6 | | created under subsection (k) of Section 10.
|
7 | | (v) "TRS benefit recipient" means a person who:
|
8 | | (1) is not a "member" as defined in this Section; and
|
9 | | (2) is receiving a monthly benefit or retirement |
10 | | annuity
under Article 16 of the Illinois Pension Code; and
|
11 | | (3) either (i) has at least 8 years of creditable |
12 | | service under Article
16 of the Illinois Pension Code, or |
13 | | (ii) was enrolled in the health insurance
program offered |
14 | | under that Article on January 1, 1996, or (iii) is the |
15 | | survivor
of a benefit recipient who had at least 8
years of |
16 | | creditable service under Article 16 of the Illinois Pension |
17 | | Code or
was enrolled in the health insurance program |
18 | | offered under that Article on
the effective date of this |
19 | | amendatory Act of 1995, or (iv) is a recipient or
survivor |
20 | | of a recipient of a disability benefit under Article 16 of |
21 | | the
Illinois Pension Code.
|
22 | | (w) "TRS dependent beneficiary" means a person who:
|
23 | | (1) is not a "member" or "dependent" as defined in this |
24 | | Section; and
|
25 | | (2) is a TRS benefit recipient's: (A) spouse, (B) |
26 | | dependent parent who
is receiving at least half of his or |
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1 | | her support from the TRS benefit
recipient, or (C) natural, |
2 | | step, adjudicated, or adopted child who is (i) under age |
3 | | 26, (ii) was, on January 1, 1996, participating as a |
4 | | dependent
beneficiary in the health insurance program |
5 | | offered under Article 16 of the
Illinois Pension Code, or |
6 | | (iii) age 19 or over who has a mental or physical |
7 | | disability from a cause originating prior to the age of 19 |
8 | | (age 26 if enrolled as an adult child).
|
9 | | "TRS dependent beneficiary" does not include, as indicated |
10 | | under paragraph (2) of this subsection (w), a dependent of the |
11 | | survivor of a TRS benefit recipient who first becomes a |
12 | | dependent of a survivor of a TRS benefit recipient on or after |
13 | | the effective date of this amendatory Act of the 97th General |
14 | | Assembly unless that dependent would have been eligible for |
15 | | coverage as a dependent of the deceased TRS benefit recipient |
16 | | upon whom the survivor benefit is based. |
17 | | (x) "Military leave" refers to individuals in basic
|
18 | | training for reserves, special/advanced training, annual |
19 | | training, emergency
call up, activation by the President of the |
20 | | United States, or any other training or duty in service to the |
21 | | United States Armed Forces.
|
22 | | (y) (Blank).
|
23 | | (z) "Community college benefit recipient" means a person |
24 | | who:
|
25 | | (1) is not a "member" as defined in this Section; and
|
26 | | (2) is receiving a monthly survivor's annuity or |
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1 | | retirement annuity
under Article 15 of the Illinois Pension |
2 | | Code; and
|
3 | | (3) either (i) was a full-time employee of a community |
4 | | college district or
an association of community college |
5 | | boards created under the Public Community
College Act |
6 | | (other than an employee whose last employer under Article |
7 | | 15 of the
Illinois Pension Code was a community college |
8 | | district subject to Article VII
of the Public Community |
9 | | College Act) and was eligible to participate in a group
|
10 | | health benefit plan as an employee during the time of |
11 | | employment with a
community college district (other than a |
12 | | community college district subject to
Article VII of the |
13 | | Public Community College Act) or an association of |
14 | | community
college boards, or (ii) is the survivor of a |
15 | | person described in item (i).
|
16 | | (aa) "Community college dependent beneficiary" means a |
17 | | person who:
|
18 | | (1) is not a "member" or "dependent" as defined in this |
19 | | Section; and
|
20 | | (2) is a community college benefit recipient's: (A) |
21 | | spouse, (B) dependent
parent who is receiving at least half |
22 | | of his or her support from the community
college benefit |
23 | | recipient, or (C) natural, step, adjudicated, or adopted |
24 | | child who is (i)
under age 26, or (ii)
age 19 or over and |
25 | | has a mental or physical disability from a cause |
26 | | originating prior to the age of 19 (age 26 if enrolled as |
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1 | | an adult child).
|
2 | | "Community college dependent beneficiary" does not |
3 | | include, as indicated under paragraph (2) of this subsection |
4 | | (aa), a dependent of the survivor of a community college |
5 | | benefit recipient who first becomes a dependent of a survivor |
6 | | of a community college benefit recipient on or after the |
7 | | effective date of this amendatory Act of the 97th General |
8 | | Assembly unless that dependent would have been eligible for |
9 | | coverage as a dependent of the deceased community college |
10 | | benefit recipient upon whom the survivor annuity is based. |
11 | | (bb) "Qualified child advocacy center" means any Illinois |
12 | | child advocacy center and its administrative offices funded by |
13 | | the Department of Children and Family Services, as defined by |
14 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by |
15 | | the Director and participating in a program created under |
16 | | subsection (n) of Section 10.
|
17 | | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
|
18 | | (5 ILCS 375/10) (from Ch. 127, par. 530)
|
19 | | Sec. 10. Contributions by the State and members.
|
20 | | (a) The State shall pay the cost of basic non-contributory |
21 | | group life
insurance and, subject to member paid contributions |
22 | | set by the Department or
required by this Section and except as |
23 | | provided in this Section, the basic program of group health |
24 | | benefits on each
eligible member, except a member, not |
25 | | otherwise
covered by this Act, who has retired as a |
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1 | | participating member under Article 2
of the Illinois Pension |
2 | | Code but is ineligible for the retirement annuity under
Section |
3 | | 2-119 of the Illinois Pension Code, and part of each eligible |
4 | | member's
and retired member's premiums for health insurance |
5 | | coverage for enrolled
dependents as provided by Section 9. The |
6 | | State shall pay the cost of the basic
program of group health |
7 | | benefits only after benefits are reduced by the amount
of |
8 | | benefits covered by Medicare for all members and dependents
who |
9 | | are eligible for benefits under Social Security or
the Railroad |
10 | | Retirement system or who had sufficient Medicare-covered
|
11 | | government employment, except that such reduction in benefits |
12 | | shall apply only
to those members and dependents who (1) first |
13 | | become eligible
for such Medicare coverage on or after July 1, |
14 | | 1992; or (2) are
Medicare-eligible members or dependents of a |
15 | | local government unit which began
participation in the program |
16 | | on or after July 1, 1992; or (3) remain eligible
for, but no |
17 | | longer receive Medicare coverage which they had been receiving |
18 | | on
or after July 1, 1992. The Department may determine the |
19 | | aggregate level of the
State's contribution on the basis of |
20 | | actual cost of medical services adjusted
for age, sex or |
21 | | geographic or other demographic characteristics which affect
|
22 | | the costs of such programs.
|
23 | | The cost of participation in the basic program of group |
24 | | health benefits
for the dependent or survivor of a living or |
25 | | deceased retired employee who was
formerly employed by the |
26 | | University of Illinois in the Cooperative Extension
Service and |
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1 | | would be an annuitant but for the fact that he or she was made
|
2 | | ineligible to participate in the State Universities Retirement |
3 | | System by clause
(4) of subsection (a) of Section 15-107 of the |
4 | | Illinois Pension Code shall not
be greater than the cost of |
5 | | participation that would otherwise apply to that
dependent or |
6 | | survivor if he or she were the dependent or survivor of an
|
7 | | annuitant under the State Universities Retirement System.
|
8 | | (a-1) (Blank).
|
9 | | (a-2) (Blank).
|
10 | | (a-3) (Blank).
|
11 | | (a-4) (Blank).
|
12 | | (a-5) (Blank).
|
13 | | (a-6) (Blank).
|
14 | | (a-7) (Blank).
|
15 | | (a-8) Any annuitant, survivor, or retired employee may |
16 | | waive or terminate coverage in
the program of group health |
17 | | benefits. Any such annuitant, survivor, or retired employee
who |
18 | | has waived or terminated coverage may enroll or re-enroll in |
19 | | the
program of group health benefits only during the annual |
20 | | benefit choice period,
as determined by the Director; except |
21 | | that in the event of termination of
coverage due to nonpayment |
22 | | of premiums, the annuitant, survivor, or retired employee
may |
23 | | not re-enroll in the program.
|
24 | | (a-8.5) Beginning on the effective date of this amendatory |
25 | | Act of the 97th General Assembly, the Director of Central |
26 | | Management Services shall, on an annual basis, determine the |
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1 | | amount that the State shall contribute toward the basic program |
2 | | of group health benefits on behalf of annuitants (including |
3 | | individuals who (i) participated in the General Assembly |
4 | | Retirement System, the State Employees' Retirement System of |
5 | | Illinois, the State Universities Retirement System, the |
6 | | Teachers' Retirement System of the State of Illinois, or the |
7 | | Judges Retirement System of Illinois and (ii) qualify as |
8 | | annuitants under subsection (b) of Section 3 of this Act), |
9 | | survivors (including individuals who (i) receive an annuity as |
10 | | a survivor of an individual who participated in the General |
11 | | Assembly Retirement System, the State Employees' Retirement |
12 | | System of Illinois, the State Universities Retirement System, |
13 | | the Teachers' Retirement System of the State of Illinois, or |
14 | | the Judges Retirement System of Illinois and (ii) qualify as |
15 | | survivors under subsection (q) of Section 3 of this Act), and |
16 | | retired employees (as defined in subsection (p) of Section 3 of |
17 | | this Act). The remainder of the cost of coverage for each |
18 | | annuitant, survivor, or retired employee, as determined by the |
19 | | Director of Central Management Services, shall be the |
20 | | responsibility of that annuitant, survivor, or retired |
21 | | employee. |
22 | | Contributions required of annuitants, survivors, and |
23 | | retired employees shall be the same for all retirement systems |
24 | | and shall also be based on whether an individual has made an |
25 | | election under Section 15-135.1 of the Illinois Pension Code. |
26 | | Contributions may be based on annuitants', survivors', or |
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1 | | retired employees' Medicare eligibility, but may not be based |
2 | | on Social Security eligibility. |
3 | | (a-9) No later than May 1 of each calendar year, the |
4 | | Director
of Central Management Services shall certify in |
5 | | writing to the Executive
Secretary of the State Employees' |
6 | | Retirement System of Illinois the amounts
of the Medicare |
7 | | supplement health care premiums and the amounts of the
health |
8 | | care premiums for all other retirees who are not Medicare |
9 | | eligible.
|
10 | | A separate calculation of the premiums based upon the |
11 | | actual cost of each
health care plan shall be so certified.
|
12 | | The Director of Central Management Services shall provide |
13 | | to the
Executive Secretary of the State Employees' Retirement |
14 | | System of
Illinois such information, statistics, and other data |
15 | | as he or she
may require to review the premium amounts |
16 | | certified by the Director
of Central Management Services.
|
17 | | The Department of Central Management Services, or any |
18 | | successor agency designated to procure healthcare contracts |
19 | | pursuant to this Act, is authorized to establish funds, |
20 | | separate accounts provided by any bank or banks as defined by |
21 | | the Illinois Banking Act, or separate accounts provided by any |
22 | | savings and loan association or associations as defined by the |
23 | | Illinois Savings and Loan Act of 1985 to be held by the |
24 | | Director, outside the State treasury, for the purpose of |
25 | | receiving the transfer of moneys from the Local Government |
26 | | Health Insurance Reserve Fund. The Department may promulgate |
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1 | | rules further defining the methodology for the transfers. Any |
2 | | interest earned by moneys in the funds or accounts shall inure |
3 | | to the Local Government Health Insurance Reserve Fund. The |
4 | | transferred moneys, and interest accrued thereon, shall be used |
5 | | exclusively for transfers to administrative service |
6 | | organizations or their financial institutions for payments of |
7 | | claims to claimants and providers under the self-insurance |
8 | | health plan. The transferred moneys, and interest accrued |
9 | | thereon, shall not be used for any other purpose including, but |
10 | | not limited to, reimbursement of administration fees due the |
11 | | administrative service organization pursuant to its contract |
12 | | or contracts with the Department.
|
13 | | (a-10) To the extent that participation, benefits, or |
14 | | premiums under this Act are based on a person's service credit |
15 | | under an Article of the Illinois Pension Code, service credit |
16 | | terminated in exchange for an accelerated pension benefit |
17 | | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that |
18 | | Code shall be included in determining a person's service credit |
19 | | for the purposes of this Act. |
20 | | (b) State employees who become eligible for this program on |
21 | | or after January
1, 1980 in positions normally requiring actual |
22 | | performance of duty not less
than 1/2 of a normal work period |
23 | | but not equal to that of a normal work period,
shall be given |
24 | | the option of participating in the available program. If the
|
25 | | employee elects coverage, the State shall contribute on behalf |
26 | | of such employee
to the cost of the employee's benefit and any |
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1 | | applicable dependent supplement,
that sum which bears the same |
2 | | percentage as that percentage of time the
employee regularly |
3 | | works when compared to normal work period.
|
4 | | (c) The basic non-contributory coverage from the basic |
5 | | program of
group health benefits shall be continued for each |
6 | | employee not in pay status or
on active service by reason of |
7 | | (1) leave of absence due to illness or injury,
(2) authorized |
8 | | educational leave of absence or sabbatical leave, or (3)
|
9 | | military leave. This coverage shall continue until
expiration |
10 | | of authorized leave and return to active service, but not to |
11 | | exceed
24 months for leaves under item (1) or (2). This |
12 | | 24-month limitation and the
requirement of returning to active |
13 | | service shall not apply to persons receiving
ordinary or |
14 | | accidental disability benefits or retirement benefits through |
15 | | the
appropriate State retirement system or benefits under the |
16 | | Workers' Compensation
or Occupational Disease Act.
|
17 | | (d) The basic group life insurance coverage shall continue, |
18 | | with
full State contribution, where such person is (1) absent |
19 | | from active
service by reason of disability arising from any |
20 | | cause other than
self-inflicted, (2) on authorized educational |
21 | | leave of absence or
sabbatical leave, or (3) on military leave.
|
22 | | (e) Where the person is in non-pay status for a period in |
23 | | excess of
30 days or on leave of absence, other than by reason |
24 | | of disability,
educational or sabbatical leave, or military |
25 | | leave, such
person may continue coverage only by making |
26 | | personal
payment equal to the amount normally contributed by |
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1 | | the State on such person's
behalf. Such payments and coverage |
2 | | may be continued: (1) until such time as
the person returns to |
3 | | a status eligible for coverage at State expense, but not
to |
4 | | exceed 24 months or (2) until such person's employment or |
5 | | annuitant status
with the State is terminated (exclusive of any |
6 | | additional service imposed pursuant to law).
|
7 | | (f) The Department shall establish by rule the extent to |
8 | | which other
employee benefits will continue for persons in |
9 | | non-pay status or who are
not in active service.
|
10 | | (g) The State shall not pay the cost of the basic |
11 | | non-contributory
group life insurance, program of health |
12 | | benefits and other employee benefits
for members who are |
13 | | survivors as defined by paragraphs (1) and (2) of
subsection |
14 | | (q) of Section 3 of this Act. The costs of benefits for these
|
15 | | survivors shall be paid by the survivors or by the University |
16 | | of Illinois
Cooperative Extension Service, or any combination |
17 | | thereof.
However, the State shall pay the amount of the |
18 | | reduction in the cost of
participation, if any, resulting from |
19 | | the amendment to subsection (a) made
by this amendatory Act of |
20 | | the 91st General Assembly.
|
21 | | (h) Those persons occupying positions with any department |
22 | | as a result
of emergency appointments pursuant to Section 8b.8 |
23 | | of the Personnel Code
who are not considered employees under |
24 | | this Act shall be given the option
of participating in the |
25 | | programs of group life insurance, health benefits and
other |
26 | | employee benefits. Such persons electing coverage may |
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1 | | participate only
by making payment equal to the amount normally |
2 | | contributed by the State for
similarly situated employees. Such |
3 | | amounts shall be determined by the
Director. Such payments and |
4 | | coverage may be continued until such time as the
person becomes |
5 | | an employee pursuant to this Act or such person's appointment |
6 | | is
terminated.
|
7 | | (i) Any unit of local government within the State of |
8 | | Illinois
may apply to the Director to have its employees, |
9 | | annuitants, and their
dependents provided group health |
10 | | coverage under this Act on a non-insured
basis. To participate, |
11 | | a unit of local government must agree to enroll
all of its |
12 | | employees, who may select coverage under either the State group
|
13 | | health benefits plan or a health maintenance organization that |
14 | | has
contracted with the State to be available as a health care |
15 | | provider for
employees as defined in this Act. A unit of local |
16 | | government must remit the
entire cost of providing coverage |
17 | | under the State group health benefits plan
or, for coverage |
18 | | under a health maintenance organization, an amount determined
|
19 | | by the Director based on an analysis of the sex, age, |
20 | | geographic location, or
other relevant demographic variables |
21 | | for its employees, except that the unit of
local government |
22 | | shall not be required to enroll those of its employees who are
|
23 | | covered spouses or dependents under this plan or another group |
24 | | policy or plan
providing health benefits as long as (1) an |
25 | | appropriate official from the unit
of local government attests |
26 | | that each employee not enrolled is a covered spouse
or |
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1 | | dependent under this plan or another group policy or plan, and |
2 | | (2) at least
50% of the employees are enrolled and the unit of |
3 | | local government remits
the entire cost of providing coverage |
4 | | to those employees, except that a
participating school district |
5 | | must have enrolled at least 50% of its full-time
employees who |
6 | | have not waived coverage under the district's group health
plan |
7 | | by participating in a component of the district's cafeteria |
8 | | plan. A
participating school district is not required to enroll |
9 | | a full-time employee
who has waived coverage under the |
10 | | district's health plan, provided that an
appropriate official |
11 | | from the participating school district attests that the
|
12 | | full-time employee has waived coverage by participating in a |
13 | | component of the
district's cafeteria plan. For the purposes of |
14 | | this subsection, "participating
school district" includes a |
15 | | unit of local government whose primary purpose is
education as |
16 | | defined by the Department's rules.
|
17 | | Employees of a participating unit of local government who |
18 | | are not enrolled
due to coverage under another group health |
19 | | policy or plan may enroll in
the event of a qualifying change |
20 | | in status, special enrollment, special
circumstance as defined |
21 | | by the Director, or during the annual Benefit Choice
Period. A |
22 | | participating unit of local government may also elect to cover |
23 | | its
annuitants. Dependent coverage shall be offered on an |
24 | | optional basis, with the
costs paid by the unit of local |
25 | | government, its employees, or some combination
of the two as |
26 | | determined by the unit of local government. The unit of local
|
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1 | | government shall be responsible for timely collection and |
2 | | transmission of
dependent premiums.
|
3 | | The Director shall annually determine monthly rates of |
4 | | payment, subject
to the following constraints:
|
5 | | (1) In the first year of coverage, the rates shall be |
6 | | equal to the
amount normally charged to State employees for |
7 | | elected optional coverages
or for enrolled dependents |
8 | | coverages or other contributory coverages, or
contributed |
9 | | by the State for basic insurance coverages on behalf of its
|
10 | | employees, adjusted for differences between State |
11 | | employees and employees
of the local government in age, |
12 | | sex, geographic location or other relevant
demographic |
13 | | variables, plus an amount sufficient to pay for the |
14 | | additional
administrative costs of providing coverage to |
15 | | employees of the unit of
local government and their |
16 | | dependents.
|
17 | | (2) In subsequent years, a further adjustment shall be |
18 | | made to reflect
the actual prior years' claims experience |
19 | | of the employees of the unit of
local government.
|
20 | | In the case of coverage of local government employees under |
21 | | a health
maintenance organization, the Director shall annually |
22 | | determine for each
participating unit of local government the |
23 | | maximum monthly amount the unit
may contribute toward that |
24 | | coverage, based on an analysis of (i) the age,
sex, geographic |
25 | | location, and other relevant demographic variables of the
|
26 | | unit's employees and (ii) the cost to cover those employees |
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1 | | under the State
group health benefits plan. The Director may |
2 | | similarly determine the
maximum monthly amount each unit of |
3 | | local government may contribute toward
coverage of its |
4 | | employees' dependents under a health maintenance organization.
|
5 | | Monthly payments by the unit of local government or its |
6 | | employees for
group health benefits plan or health maintenance |
7 | | organization coverage shall
be deposited in the Local |
8 | | Government Health Insurance Reserve Fund.
|
9 | | The Local Government Health Insurance Reserve Fund is |
10 | | hereby created as a nonappropriated trust fund to be held |
11 | | outside the State Treasury, with the State Treasurer as |
12 | | custodian. The Local Government Health Insurance Reserve Fund |
13 | | shall be a continuing
fund not subject to fiscal year |
14 | | limitations. The Local Government Health Insurance Reserve |
15 | | Fund is not subject to administrative charges or charge-backs, |
16 | | including but not limited to those authorized under Section 8h |
17 | | of the State Finance Act. All revenues arising from the |
18 | | administration of the health benefits program established |
19 | | under this Section shall be deposited into the Local Government |
20 | | Health Insurance Reserve Fund. Any interest earned on moneys in |
21 | | the Local Government Health Insurance Reserve Fund shall be |
22 | | deposited into the Fund. All expenditures from this Fund
shall |
23 | | be used for payments for health care benefits for local |
24 | | government and rehabilitation facility
employees, annuitants, |
25 | | and dependents, and to reimburse the Department or
its |
26 | | administrative service organization for all expenses incurred |
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1 | | in the
administration of benefits. No other State funds may be |
2 | | used for these
purposes.
|
3 | | A local government employer's participation or desire to |
4 | | participate
in a program created under this subsection shall |
5 | | not limit that employer's
duty to bargain with the |
6 | | representative of any collective bargaining unit
of its |
7 | | employees.
|
8 | | (j) Any rehabilitation facility within the State of |
9 | | Illinois may apply
to the Director to have its employees, |
10 | | annuitants, and their eligible
dependents provided group |
11 | | health coverage under this Act on a non-insured
basis. To |
12 | | participate, a rehabilitation facility must agree to enroll all
|
13 | | of its employees and remit the entire cost of providing such |
14 | | coverage for
its employees, except that the rehabilitation |
15 | | facility shall not be
required to enroll those of its employees |
16 | | who are covered spouses or
dependents under this plan or |
17 | | another group policy or plan providing health
benefits as long |
18 | | as (1) an appropriate official from the rehabilitation
facility |
19 | | attests that each employee not enrolled is a covered spouse or
|
20 | | dependent under this plan or another group policy or plan, and |
21 | | (2) at least
50% of the employees are enrolled and the |
22 | | rehabilitation facility remits
the entire cost of providing |
23 | | coverage to those employees. Employees of a
participating |
24 | | rehabilitation facility who are not enrolled due to coverage
|
25 | | under another group health policy or plan may enroll
in the |
26 | | event of a qualifying change in status, special enrollment, |
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1 | | special
circumstance as defined by the Director, or during the |
2 | | annual Benefit Choice
Period. A participating rehabilitation |
3 | | facility may also elect
to cover its annuitants. Dependent |
4 | | coverage shall be offered on an optional
basis, with the costs |
5 | | paid by the rehabilitation facility, its employees, or
some |
6 | | combination of the 2 as determined by the rehabilitation |
7 | | facility. The
rehabilitation facility shall be responsible for |
8 | | timely collection and
transmission of dependent premiums.
|
9 | | The Director shall annually determine quarterly rates of |
10 | | payment, subject
to the following constraints:
|
11 | | (1) In the first year of coverage, the rates shall be |
12 | | equal to the amount
normally charged to State employees for |
13 | | elected optional coverages or for
enrolled dependents |
14 | | coverages or other contributory coverages on behalf of
its |
15 | | employees, adjusted for differences between State |
16 | | employees and
employees of the rehabilitation facility in |
17 | | age, sex, geographic location
or other relevant |
18 | | demographic variables, plus an amount sufficient to pay
for |
19 | | the additional administrative costs of providing coverage |
20 | | to employees
of the rehabilitation facility and their |
21 | | dependents.
|
22 | | (2) In subsequent years, a further adjustment shall be |
23 | | made to reflect
the actual prior years' claims experience |
24 | | of the employees of the
rehabilitation facility.
|
25 | | Monthly payments by the rehabilitation facility or its |
26 | | employees for
group health benefits shall be deposited in the |
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1 | | Local Government Health
Insurance Reserve Fund.
|
2 | | (k) Any domestic violence shelter or service within the |
3 | | State of Illinois
may apply to the Director to have its |
4 | | employees, annuitants, and their
dependents provided group |
5 | | health coverage under this Act on a non-insured
basis. To |
6 | | participate, a domestic violence shelter or service must agree |
7 | | to
enroll all of its employees and pay the entire cost of |
8 | | providing such coverage
for its employees. The domestic |
9 | | violence shelter shall not be required to enroll those of its |
10 | | employees who are covered spouses or dependents under this plan |
11 | | or another group policy or plan providing health benefits as |
12 | | long as (1) an appropriate official from the domestic violence |
13 | | shelter attests that each employee not enrolled is a covered |
14 | | spouse or dependent under this plan or another group policy or |
15 | | plan and (2) at least 50% of the employees are enrolled and the |
16 | | domestic violence shelter remits the entire cost of providing |
17 | | coverage to those employees. Employees of a participating |
18 | | domestic violence shelter who are not enrolled due to coverage |
19 | | under another group health policy or plan may enroll in the |
20 | | event of a qualifying change in status, special enrollment, or |
21 | | special circumstance as defined by the Director or during the |
22 | | annual Benefit Choice Period. A participating domestic |
23 | | violence shelter may also elect
to cover its annuitants. |
24 | | Dependent coverage shall be offered on an optional
basis, with
|
25 | | employees, or some combination of the 2 as determined by the |
26 | | domestic violence
shelter or service. The domestic violence |
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1 | | shelter or service shall be
responsible for timely collection |
2 | | and transmission of dependent premiums.
|
3 | | The Director shall annually determine rates of payment,
|
4 | | subject to the following constraints:
|
5 | | (1) In the first year of coverage, the rates shall be |
6 | | equal to the
amount normally charged to State employees for |
7 | | elected optional coverages
or for enrolled dependents |
8 | | coverages or other contributory coverages on
behalf of its |
9 | | employees, adjusted for differences between State |
10 | | employees and
employees of the domestic violence shelter or |
11 | | service in age, sex, geographic
location or other relevant |
12 | | demographic variables, plus an amount sufficient
to pay for |
13 | | the additional administrative costs of providing coverage |
14 | | to
employees of the domestic violence shelter or service |
15 | | and their dependents.
|
16 | | (2) In subsequent years, a further adjustment shall be |
17 | | made to reflect
the actual prior years' claims experience |
18 | | of the employees of the domestic
violence shelter or |
19 | | service.
|
20 | | Monthly payments by the domestic violence shelter or |
21 | | service or its employees
for group health insurance shall be |
22 | | deposited in the Local Government Health
Insurance Reserve |
23 | | Fund.
|
24 | | (l) A public community college or entity organized pursuant |
25 | | to the
Public Community College Act may apply to the Director |
26 | | initially to have
only annuitants not covered prior to July 1, |
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1 | | 1992 by the district's health
plan provided health coverage |
2 | | under this Act on a non-insured basis. The
community college |
3 | | must execute a 2-year contract to participate in the
Local |
4 | | Government Health Plan.
Any annuitant may enroll in the event |
5 | | of a qualifying change in status, special
enrollment, special |
6 | | circumstance as defined by the Director, or during the
annual |
7 | | Benefit Choice Period.
|
8 | | The Director shall annually determine monthly rates of |
9 | | payment subject to
the following constraints: for those |
10 | | community colleges with annuitants
only enrolled, first year |
11 | | rates shall be equal to the average cost to cover
claims for a |
12 | | State member adjusted for demographics, Medicare
|
13 | | participation, and other factors; and in the second year, a |
14 | | further adjustment
of rates shall be made to reflect the actual |
15 | | first year's claims experience
of the covered annuitants.
|
16 | | (l-5) The provisions of subsection (l) become inoperative |
17 | | on July 1, 1999.
|
18 | | (m) The Director shall adopt any rules deemed necessary for
|
19 | | implementation of this amendatory Act of 1989 (Public Act |
20 | | 86-978).
|
21 | | (n) Any child advocacy center within the State of Illinois |
22 | | may apply to the Director to have its employees, annuitants, |
23 | | and their dependents provided group health coverage under this |
24 | | Act on a non-insured basis. To participate, a child advocacy |
25 | | center must agree to enroll all of its employees and pay the |
26 | | entire cost of providing coverage for its employees. The child
|
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1 | | advocacy center shall not be required to enroll those of its
|
2 | | employees who are covered spouses or dependents under this plan
|
3 | | or another group policy or plan providing health benefits as
|
4 | | long as (1) an appropriate official from the child advocacy
|
5 | | center attests that each employee not enrolled is a covered
|
6 | | spouse or dependent under this plan or another group policy or
|
7 | | plan and (2) at least 50% of the employees are enrolled and the |
8 | | child advocacy center remits the entire cost of providing |
9 | | coverage to those employees. Employees of a participating child |
10 | | advocacy center who are not enrolled due to coverage under |
11 | | another group health policy or plan may enroll in the event of |
12 | | a qualifying change in status, special enrollment, or special |
13 | | circumstance as defined by the Director or during the annual |
14 | | Benefit Choice Period. A participating child advocacy center |
15 | | may also elect to cover its annuitants. Dependent coverage |
16 | | shall be offered on an optional basis, with the costs paid by |
17 | | the child advocacy center, its employees, or some combination |
18 | | of the 2 as determined by the child advocacy center. The child |
19 | | advocacy center shall be responsible for timely collection and |
20 | | transmission of dependent premiums. |
21 | | The Director shall annually determine rates of payment, |
22 | | subject to the following constraints: |
23 | | (1) In the first year of coverage, the rates shall be |
24 | | equal to the amount normally charged to State employees for |
25 | | elected optional coverages or for enrolled dependents |
26 | | coverages or other contributory coverages on behalf of its |
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1 | | employees, adjusted for differences between State |
2 | | employees and employees of the child advocacy center in |
3 | | age, sex, geographic location, or other relevant |
4 | | demographic variables, plus an amount sufficient to pay for |
5 | | the additional administrative costs of providing coverage |
6 | | to employees of the child advocacy center and their |
7 | | dependents. |
8 | | (2) In subsequent years, a further adjustment shall be |
9 | | made to reflect the actual prior years' claims experience |
10 | | of the employees of the child advocacy center. |
11 | | Monthly payments by the child advocacy center or its |
12 | | employees for group health insurance shall be deposited into |
13 | | the Local Government Health Insurance Reserve Fund. |
14 | | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
|
15 | | Section 15. The Attorney General Act is amended by adding |
16 | | Section 5 as follows: |
17 | | (15 ILCS 205/5 new) |
18 | | Sec. 5. Future increases in income. The Office of the |
19 | | Attorney General must not pay, offer, or agree to pay any |
20 | | future
increase in income, as that term is defined in Section
|
21 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
22 | | manner that violates Section 14-106.5 of the Illinois Pension |
23 | | Code. |
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1 | | Section 20. The Secretary of State Merit Employment Code is |
2 | | amended by adding Section 13a as follows: |
3 | | (15 ILCS 310/13a new) |
4 | | Sec. 13a. Future increases in income. The Office of the |
5 | | Secretary of State must not pay, offer, or agree to pay any |
6 | | future
increase in income, as that term is defined in Section
|
7 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
8 | | manner that violates Section 14-106.5 of the Illinois Pension |
9 | | Code. |
10 | | Section 25. The Comptroller Merit Employment Code is |
11 | | amended by adding Section 13a as follows: |
12 | | (15 ILCS 410/13a new) |
13 | | Sec. 13a. Future increases in income. The Office of the |
14 | | Comptroller must not pay, offer, or agree to pay any future
|
15 | | increase in income, as that term is defined in Section
|
16 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
17 | | manner that violates Section 14-106.5 of the Illinois Pension |
18 | | Code. |
19 | | Section 30. The State Treasurer Employment Code is amended |
20 | | by adding Section 12a as follows: |
21 | | (15 ILCS 510/12a new) |
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1 | | Sec. 12a. Future increases in income. The Office of the |
2 | | State Treasurer must not pay, offer, or agree to pay any future
|
3 | | increase in income, as that term is defined in Section
|
4 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
5 | | manner that violates Section 14-106.5 of the Illinois Pension |
6 | | Code. |
7 | | Section 35. The Civil Administrative Code of Illinois is |
8 | | amended by adding Section 5-647 as follows: |
9 | | (20 ILCS 5/5-647 new) |
10 | | Sec. 5-647. Future increases in income. A Department must |
11 | | not pay, offer, or agree to pay any future increase in income, |
12 | | as that term is defined in Section 14-103.42, 15-112.1, or |
13 | | 16-121.1 of the Illinois Pension Code, to any person in a |
14 | | manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of |
15 | | the Illinois Pension Code. |
16 | | Section 40. The Budget Stabilization Act is amended by |
17 | | changing Section 20 as follows: |
18 | | (30 ILCS 122/20) |
19 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
20 | | which has been
held unconstitutional) |
21 | | Sec. 20. Pension Stabilization Fund. |
22 | | (a) The Pension Stabilization Fund is hereby created as a |
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1 | | special fund in the State treasury. Moneys in the fund shall be |
2 | | used for the sole purpose of making payments to the designated |
3 | | retirement systems as provided in Section 25.
|
4 | | (b) For each fiscal year through State fiscal year 2020, |
5 | | when the General Assembly's
appropriations and transfers or |
6 | | diversions as required by law
from general funds do not exceed |
7 | | 99% of the
estimated general funds revenues pursuant to |
8 | | subsection (a)
of Section 10, the Comptroller shall transfer |
9 | | from the
General Revenue Fund as provided by this Section a |
10 | | total
amount equal to 0.5% of the estimated general funds |
11 | | revenues
to the Pension Stabilization Fund. |
12 | | (c) For each fiscal year through State fiscal year 2020, |
13 | | when the General Assembly's
appropriations and transfers or |
14 | | diversions as required by law
from general funds do not exceed |
15 | | 98% of the
estimated general funds revenues pursuant to |
16 | | subsection (b)
of Section 10, the Comptroller shall transfer |
17 | | from the
General Revenue Fund as provided by this Section a |
18 | | total
amount equal to 1.0% of the estimated general funds |
19 | | revenues
to the Pension Stabilization Fund. |
20 | | (c-5) In addition to any other amounts required to be
|
21 | | transferred under this Section, in State fiscal year 2021 and
|
22 | | each fiscal year thereafter through State fiscal year 2045, or
|
23 | | when each of the designated retirement systems, as defined in
|
24 | | Section 25, has achieved 100% funding, whichever occurs first,
|
25 | | the State Comptroller shall order transferred and the State
|
26 | | Treasurer shall transfer from the General Revenue Fund to the
|
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1 | | Pension Stabilization Fund an amount equal to (1) the
sum of |
2 | | the amounts certified by the designated retirement
systems |
3 | | under subsection
(a-10) of Section 14-135.08, subsection |
4 | | (a-10) of Section
15-165, and subsection (a-10) of Section |
5 | | 16-158 of this Code for that fiscal year minus (2) the sum of |
6 | | the required State
contributions certified by the retirement |
7 | | systems under subsection (a-5) of Section
14-135.08, |
8 | | subsection (a-5) of Section 15-165, and subsection
(a-5) of |
9 | | Section 16-158 of this Code for that fiscal year. The
|
10 | | transferred amount is intended to represent the
annual savings |
11 | | to the State resulting from the enactment of
Section 1-161 and |
12 | | Section 14-155.2, the enactment of subsection (a-2) of Section |
13 | | 15-155 and subsection (b-4) of Section 16-158, and the changes |
14 | | made to Section 1-160 by this amendatory Act of the 100th |
15 | | General Assembly. |
16 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
17 | | to be transferred each fiscal year under this Section
into the |
18 | | Pension Stabilization Fund on the first day of each
month of |
19 | | that fiscal year or as soon thereafter as possible; except that |
20 | | the final transfer of the fiscal year shall be made as soon as |
21 | | practical after the August 31 following the end of the fiscal |
22 | | year. |
23 | | Until State fiscal year 2021, before Before the final |
24 | | transfer for a fiscal year is made, the Comptroller shall |
25 | | reconcile the estimated general funds revenues used in |
26 | | calculating the other transfers under this Section for that |
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1 | | fiscal year with the actual general funds revenues for that |
2 | | fiscal year. The
final transfer for the fiscal year shall be |
3 | | adjusted so that the
total amount transferred under this |
4 | | Section for that fiscal year is equal to the percentage |
5 | | specified in subsection
(b) or (c) of this Section, whichever |
6 | | is applicable, of the actual
general funds revenues for that |
7 | | fiscal year. The actual general funds revenues for the fiscal |
8 | | year shall be calculated in a manner consistent with subsection |
9 | | (c) of
Section 10 of this Act.
|
10 | | (Source: P.A. 94-839, eff. 6-6-06.) |
11 | | Section 45. The Illinois Pension Code is amended by |
12 | | changing Sections 1-160, 2-101, 2-105, 2-107, 2-108, 2-119.1, |
13 | | 2-124, 2-126, 2-134, 2-162, 14-103.10, 14-114, 14-131, 14-133, |
14 | | 14-135.08, 14-152.1, 15-108.1, 15-108.2, 15-111, 15-136, |
15 | | 15-155, 15-157, 15-165, 15-198, 16-121, 16-133.1, 16-136.1, |
16 | | 16-152, 16-158, 16-203, 17-116, 17-127, 17-129, 17-130, |
17 | | 18-131, 18-140, 20-121, 20-123, 20-124, and 20-125 and by |
18 | | adding Sections 1-161, 1-162, 2-105.3, 2-107.9, 2-107.10, |
19 | | 2-110.3, 2-165.1, 2-166.1, 14-103.41, 14-103.42, 14-103.43, |
20 | | 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-112.1, |
21 | | 15-112.2, 15-132.9, 15-185.5, 15-200.1, 15-201.1, 16-107.1, |
22 | | 16-121.1, 16-121.2, 16-122.9, 16-190.5, 16-205.1, 16-206.1, |
23 | | 17-106.05, 17-113.4, 17-113.5, 17-113.6, 17-115.5, and |
24 | | 17-119.2 as follows:
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1 | | (40 ILCS 5/1-160)
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2 | | (Text of Section WITHOUT the changes made by P.A. 98-641, |
3 | | which has been held unconstitutional) |
4 | | Sec. 1-160. Provisions applicable to new hires. |
5 | | (a) The provisions of this Section apply to a person who, |
6 | | on or after January 1, 2011, first becomes a member or a |
7 | | participant under any reciprocal retirement system or pension |
8 | | fund established under this Code, other than a retirement |
9 | | system or pension fund established under Article 2, 3, 4, 5, 6, |
10 | | 15 or 18 of this Code, notwithstanding any other provision of |
11 | | this Code to the contrary, but do not apply to any self-managed |
12 | | plan established under this Code, to any person with respect to |
13 | | service as a sheriff's law enforcement employee under Article |
14 | | 7, or to any participant of the retirement plan established |
15 | | under Section 22-101. Notwithstanding anything to the contrary |
16 | | in this Section, for purposes of this Section, a person who |
17 | | participated in a retirement system under Article 15 prior to |
18 | | January 1, 2011 shall be deemed a person who first became a |
19 | | member or participant prior to January 1, 2011 under any |
20 | | retirement system or pension fund subject to this Section. The |
21 | | changes made to this Section by Public Act 98-596 this |
22 | | amendatory Act of the 98th General Assembly are a clarification |
23 | | of existing law and are intended to be retroactive to January |
24 | | 1, 2011 ( the effective date of Public Act 96-889 ) , |
25 | | notwithstanding the provisions of Section 1-103.1 of this Code. |
26 | | This Section does not apply to a person who, on or after 6 |
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1 | | months after the effective date of this amendatory Act of the |
2 | | 100th General Assembly, first becomes a member or participant |
3 | | under Article 14 or 16, unless that person (i) is a covered |
4 | | employee under Article 14 who has not elected to participate in |
5 | | the defined contribution plan under Section 14-155.2 or (ii) |
6 | | elects under subsection (b) of Section 1-161 to receive the |
7 | | benefits provided under this Section and the applicable |
8 | | provisions of the Article under which he or she is a member or |
9 | | participant. This Section also does not apply to a person who |
10 | | first becomes a member or participant of an affected pension |
11 | | fund on or after 6 months after the resolution or ordinance |
12 | | date, as defined in Section 1-162, unless that person elects |
13 | | under subsection (c) of Section 1-162 to receive the benefits |
14 | | provided under this Section and the applicable provisions of |
15 | | the Article under which he or she is a member or participant. |
16 | | (b) "Final average salary" means the average monthly (or |
17 | | annual) salary obtained by dividing the total salary or |
18 | | earnings calculated under the Article applicable to the member |
19 | | or participant during the 96 consecutive months (or 8 |
20 | | consecutive years) of service within the last 120 months (or 10 |
21 | | years) of service in which the total salary or earnings |
22 | | calculated under the applicable Article was the highest by the |
23 | | number of months (or years) of service in that period. For the |
24 | | purposes of a person who first becomes a member or participant |
25 | | of any retirement system or pension fund to which this Section |
26 | | applies on or after January 1, 2011, in this Code, "final |
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1 | | average salary" shall be substituted for the following: |
2 | | (1) In Article 7 (except for service as sheriff's law |
3 | | enforcement employees), "final rate of earnings". |
4 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
5 | | annual salary for any 4 consecutive years within the last |
6 | | 10 years of service immediately preceding the date of |
7 | | withdrawal". |
8 | | (3) In Article 13, "average final salary". |
9 | | (4) In Article 14, "final average compensation". |
10 | | (5) In Article 17, "average salary". |
11 | | (6) In Section 22-207, "wages or salary received by him |
12 | | at the date of retirement or discharge". |
13 | | (b-5) Beginning on January 1, 2011, for all purposes under |
14 | | this Code (including without limitation the calculation of |
15 | | benefits and employee contributions), the annual earnings, |
16 | | salary, or wages (based on the plan year) of a member or |
17 | | participant to whom this Section applies shall not exceed |
18 | | $106,800; however, that amount shall annually thereafter be |
19 | | increased by the lesser of (i) 3% of that amount, including all |
20 | | previous adjustments, or (ii) one-half the annual unadjusted |
21 | | percentage increase (but not less than zero) in the consumer |
22 | | price index-u
for the 12 months ending with the September |
23 | | preceding each November 1, including all previous adjustments. |
24 | | For the purposes of this Section, "consumer price index-u" |
25 | | means
the index published by the Bureau of Labor Statistics of |
26 | | the United States
Department of Labor that measures the average |
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1 | | change in prices of goods and
services purchased by all urban |
2 | | consumers, United States city average, all
items, 1982-84 = |
3 | | 100. The new amount resulting from each annual adjustment
shall |
4 | | be determined by the Public Pension Division of the Department |
5 | | of Insurance and made available to the boards of the retirement |
6 | | systems and pension funds by November 1 of each year. |
7 | | (c) A member or participant is entitled to a retirement
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8 | | annuity upon written application if he or she has attained age |
9 | | 67 (beginning January 1, 2015, age 65 with respect to service |
10 | | under Article 12 of this Code that is subject to this Section) |
11 | | and has at least 10 years of service credit and is otherwise |
12 | | eligible under the requirements of the applicable Article. |
13 | | A member or participant who has attained age 62 (beginning |
14 | | January 1, 2015, age 60 with respect to service under Article |
15 | | 12 of this Code that is subject to this Section) and has at |
16 | | least 10 years of service credit and is otherwise eligible |
17 | | under the requirements of the applicable Article may elect to |
18 | | receive the lower retirement annuity provided
in subsection (d) |
19 | | of this Section. |
20 | | (d) The retirement annuity of a member or participant who |
21 | | is retiring after attaining age 62 (beginning January 1, 2015, |
22 | | age 60 with respect to service under Article 12 of this Code |
23 | | that is subject to this Section) with at least 10 years of |
24 | | service credit shall be reduced by one-half
of 1% for each full |
25 | | month that the member's age is under age 67 (beginning January |
26 | | 1, 2015, age 65 with respect to service under Article 12 of |
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1 | | this Code that is subject to this Section). |
2 | | (e) Any retirement annuity or supplemental annuity shall be |
3 | | subject to annual increases on the January 1 occurring either |
4 | | on or after the attainment of age 67 (beginning January 1, |
5 | | 2015, age 65 with respect to service under Article 12 of this |
6 | | Code that is subject to this Section) or the first anniversary |
7 | | of the annuity start date, whichever is later. Each annual |
8 | | increase shall be calculated at 3% or one-half the annual |
9 | | unadjusted percentage increase (but not less than zero) in the |
10 | | consumer price index-u for the 12 months ending with the |
11 | | September preceding each November 1, whichever is less, of the |
12 | | originally granted retirement annuity. If the annual |
13 | | unadjusted percentage change in the consumer price index-u for |
14 | | the 12 months ending with the September preceding each November |
15 | | 1 is zero or there is a decrease, then the annuity shall not be |
16 | | increased. |
17 | | (f) The initial survivor's or widow's annuity of an |
18 | | otherwise eligible survivor or widow of a retired member or |
19 | | participant who first became a member or participant on or |
20 | | after January 1, 2011 shall be in the amount of 66 2/3% of the |
21 | | retired member's or participant's retirement annuity at the |
22 | | date of death. In the case of the death of a member or |
23 | | participant who has not retired and who first became a member |
24 | | or participant on or after January 1, 2011, eligibility for a |
25 | | survivor's or widow's annuity shall be determined by the |
26 | | applicable Article of this Code. The initial benefit shall be |
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1 | | 66 2/3% of the earned annuity without a reduction due to age. A |
2 | | child's annuity of an otherwise eligible child shall be in the |
3 | | amount prescribed under each Article if applicable. Any |
4 | | survivor's or widow's annuity shall be increased (1) on each |
5 | | January 1 occurring on or after the commencement of the annuity |
6 | | if
the deceased member died while receiving a retirement |
7 | | annuity or (2) in
other cases, on each January 1 occurring |
8 | | after the first anniversary
of the commencement of the annuity. |
9 | | Each annual increase shall be calculated at 3% or one-half the |
10 | | annual unadjusted percentage increase (but not less than zero) |
11 | | in the consumer price index-u for the 12 months ending with the |
12 | | September preceding each November 1, whichever is less, of the |
13 | | originally granted survivor's annuity. If the annual |
14 | | unadjusted percentage change in the consumer price index-u for |
15 | | the 12 months ending with the September preceding each November |
16 | | 1 is zero or there is a decrease, then the annuity shall not be |
17 | | increased. |
18 | | (g) The benefits in Section 14-110 apply only if the person |
19 | | is a State policeman, a fire fighter in the fire protection |
20 | | service of a department, or a security employee of the |
21 | | Department of Corrections or the Department of Juvenile |
22 | | Justice, as those terms are defined in subsection (b) of |
23 | | Section 14-110. A person who meets the requirements of this |
24 | | Section is entitled to an annuity calculated under the |
25 | | provisions of Section 14-110, in lieu of the regular or minimum |
26 | | retirement annuity, only if the person has withdrawn from |
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1 | | service with not less than 20
years of eligible creditable |
2 | | service and has attained age 60, regardless of whether
the |
3 | | attainment of age 60 occurs while the person is
still in |
4 | | service. |
5 | | (h) If a person who first becomes a member or a participant |
6 | | of a retirement system or pension fund subject to this Section |
7 | | on or after January 1, 2011 is receiving a retirement annuity |
8 | | or retirement pension under that system or fund and becomes a |
9 | | member or participant under any other system or fund created by |
10 | | this Code and is employed on a full-time basis, except for |
11 | | those members or participants exempted from the provisions of |
12 | | this Section under subsection (a) of this Section, then the |
13 | | person's retirement annuity or retirement pension under that |
14 | | system or fund shall be suspended during that employment. Upon |
15 | | termination of that employment, the person's retirement |
16 | | annuity or retirement pension payments shall resume and be |
17 | | recalculated if recalculation is provided for under the |
18 | | applicable Article of this Code. |
19 | | If a person who first becomes a member of a retirement |
20 | | system or pension fund subject to this Section on or after |
21 | | January 1, 2012 and is receiving a retirement annuity or |
22 | | retirement pension under that system or fund and accepts on a |
23 | | contractual basis a position to provide services to a |
24 | | governmental entity from which he or she has retired, then that |
25 | | person's annuity or retirement pension earned as an active |
26 | | employee of the employer shall be suspended during that |
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1 | | contractual service. A person receiving an annuity or |
2 | | retirement pension under this Code shall notify the pension |
3 | | fund or retirement system from which he or she is receiving an |
4 | | annuity or retirement pension, as well as his or her |
5 | | contractual employer, of his or her retirement status before |
6 | | accepting contractual employment. A person who fails to submit |
7 | | such notification shall be guilty of a Class A misdemeanor and |
8 | | required to pay a fine of $1,000. Upon termination of that |
9 | | contractual employment, the person's retirement annuity or |
10 | | retirement pension payments shall resume and, if appropriate, |
11 | | be recalculated under the applicable provisions of this Code. |
12 | | (i) (Blank). |
13 | | (j) Except for Sections 1-161 and 1-162, in In the case of |
14 | | a conflict between the provisions of this Section and any other |
15 | | provision of this Code, the provisions of this Section shall |
16 | | control.
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17 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, |
18 | | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.) |
19 | | (40 ILCS 5/1-161 new) |
20 | | Sec. 1-161. Optional benefits for certain Tier 2 members |
21 | | under Articles 14, 15, and 16. |
22 | | (a) Notwithstanding any other provision of this Code to the |
23 | | contrary, the provisions of this Section apply to a person who, |
24 | | on or after 6 months after the effective date of this |
25 | | amendatory Act of the 100th General Assembly, first becomes a |
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1 | | member or a participant under Article 14, 15, or 16 and who |
2 | | does not make the election under subsection (b) or (c), |
3 | | whichever is applicable. The provisions of this Section do not |
4 | | apply to any participant in a self-managed plan or to a covered |
5 | | employee under Article 14. |
6 | | (b) In lieu of the benefits provided under this Section, a |
7 | | member or participant, except for a participant under Article |
8 | | 15, may irrevocably elect the benefits under Section 1-160 and |
9 | | the benefits otherwise applicable to that member or |
10 | | participant. The election must be made within 30 days after |
11 | | becoming a member or participant. Each retirement system shall |
12 | | establish procedures for making this election. |
13 | | (c) A participant under Article 15 may irrevocably elect |
14 | | the benefits otherwise provided to a Tier 2 participant under |
15 | | Article 15. The election must be made within 30 days after |
16 | | becoming a participant. The retirement system under Article 15 |
17 | | shall establish procedures for making this election. |
18 | | (d) "Final average salary" means the average monthly (or |
19 | | annual) salary obtained by dividing the total salary or |
20 | | earnings calculated under the Article applicable to the member |
21 | | or participant during the last 120 months (or 10 years) of |
22 | | service in which the total salary or earnings calculated under |
23 | | the applicable Article was the highest by the number of months |
24 | | (or years) of service in that period. For the purposes of a |
25 | | person who first becomes a member or participant of any |
26 | | retirement system to which this Section applies on or after 6 |
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1 | | months after the effective date of this amendatory Act of the |
2 | | 100th General Assembly, in this Code, "final average salary" |
3 | | shall be substituted for "final average compensation" in |
4 | | Article 14. |
5 | | (e) Beginning 6 months after the effective date of this |
6 | | amendatory Act of the 100th General Assembly, for all purposes |
7 | | under this Code (including without limitation the calculation |
8 | | of benefits and employee contributions), the annual earnings, |
9 | | salary, or wages (based on the plan year) of a member or |
10 | | participant to whom this Section applies shall not at any time |
11 | | exceed the federal Social Security Wage Base then in effect. |
12 | | (f) A member or participant is entitled to a retirement
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13 | | annuity upon written application if he or she has attained the |
14 | | normal retirement age determined by the Social Security |
15 | | Administration for that member or participant's year of birth, |
16 | | but no earlier than 67 years of age, and has at least 10 years |
17 | | of service credit and is otherwise eligible under the |
18 | | requirements of the applicable Article. |
19 | | (g) The amount of the retirement annuity to which a member |
20 | | or participant is entitled shall be computed by multiplying |
21 | | 1.25% for each year of service credit by his or her final |
22 | | average salary. |
23 | | (h) Any retirement annuity or supplemental annuity shall be |
24 | | subject to annual increases on the first anniversary of the |
25 | | annuity start date. Each annual increase shall be one-half the |
26 | | annual unadjusted percentage increase (but not less than zero) |
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1 | | in the consumer price index-w for the 12 months ending with the |
2 | | September preceding each November 1 of the originally granted |
3 | | retirement annuity. If the annual unadjusted percentage change |
4 | | in the consumer price index-w for the 12 months ending with the |
5 | | September preceding each November 1 is zero or there is a |
6 | | decrease, then the annuity shall not be increased. |
7 | | For the purposes of this Section, "consumer price index-w" |
8 | | means the index published by the Bureau of Labor Statistics of |
9 | | the United States Department of Labor that measures the average |
10 | | change in prices of goods and services purchased by Urban Wage |
11 | | Earners and Clerical Workers, United States city average, all |
12 | | items, 1982-84 = 100. The new amount resulting from each annual |
13 | | adjustment shall be determined by the Public Pension Division |
14 | | of the Department of Insurance and made available to the boards |
15 | | of the retirement systems and pension funds by November 1 of |
16 | | each year. |
17 | | (i) The initial survivor's or widow's annuity of an |
18 | | otherwise eligible survivor or widow of a retired member or |
19 | | participant who first became a member or participant on or |
20 | | after 6 months after the effective date of this amendatory Act |
21 | | of the 100th General Assembly shall be in the amount of 66 2/3% |
22 | | of the retired member's or participant's retirement annuity at |
23 | | the date of death. In the case of the death of a member or |
24 | | participant who has not retired and who first became a member |
25 | | or participant on or after 6 months after the effective date of |
26 | | this amendatory Act of the 100th General Assembly, eligibility |
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1 | | for a survivor's or widow's annuity shall be determined by the |
2 | | applicable Article of this Code. The benefit shall be 66 2/3% |
3 | | of the earned annuity without a reduction due to age. A child's |
4 | | annuity of an otherwise eligible child shall be in the amount |
5 | | prescribed under each Article if applicable. |
6 | | (j) In lieu of any other employee contributions, except for |
7 | | the contribution to the defined contribution plan under |
8 | | subsection (k) of this Section, each employee shall contribute |
9 | | 6.2% of his her or salary to the retirement system. However, |
10 | | the employee contribution under this subsection shall not |
11 | | exceed the amount of the normal cost of the benefits under this |
12 | | Section (except for the defined contribution plan under |
13 | | subsection (k) of this Section), expressed as a percentage of |
14 | | payroll and determined on or before November 1 of each year by |
15 | | the board of trustees of the retirement system. If the board of |
16 | | trustees of the retirement system determines that the 6.2% |
17 | | employee contribution rate exceeds the normal cost of the |
18 | | benefits under this Section (except for the defined |
19 | | contribution plan under subsection (k) of this Section), then |
20 | | on or before December 1 of that year, the board of trustees |
21 | | shall certify the amount of the normal cost of the benefits |
22 | | under this Section (except for the defined contribution plan |
23 | | under subsection (k) of this Section), expressed as a |
24 | | percentage of payroll, to the State Actuary and the Commission |
25 | | on Government Forecasting and Accountability, and the employee |
26 | | contribution under this subsection shall be reduced to that |
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1 | | amount beginning January 1 of the following year. Thereafter, |
2 | | if the normal cost of the benefits under this Section (except |
3 | | for the defined contribution plan under subsection (k) of this |
4 | | Section), expressed as a percentage of payroll and determined |
5 | | on or before November 1 of each year by the board of trustees |
6 | | of the retirement system, exceeds 6.2% of salary, then on or |
7 | | before December 1 of that year, the board of trustees shall |
8 | | certify the normal cost to the State Actuary and the Commission |
9 | | on Government Forecasting and Accountability, and the employee |
10 | | contributions shall revert back to 6.2% of salary beginning |
11 | | January 1 of the following year. |
12 | | (k) No later than 5 months after the effective date of this |
13 | | amendatory Act of the 100th General Assembly, each retirement |
14 | | system under Article 14, 15, or 16 shall prepare and implement |
15 | | a defined contribution plan for members or participants who are |
16 | | subject to this Section. The defined contribution plan |
17 | | developed under this subsection shall be a plan that aggregates |
18 | | employer and employee contributions in individual participant |
19 | | accounts which, after meeting any other requirements, are used |
20 | | for payouts after retirement in accordance with this subsection |
21 | | and any other applicable laws. |
22 | | (1) Each member or participant shall contribute a |
23 | | minimum of 4% of his or her salary to the defined |
24 | | contribution plan. |
25 | | (2) For each participant in the defined contribution |
26 | | plan who has been employed with the same employer for at |
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1 | | least one year, employer contributions shall be paid into |
2 | | that participant's accounts at a rate expressed as a |
3 | | percentage of salary. This rate may be set for individual |
4 | | employees, but shall be no higher than 6% of salary and |
5 | | shall be no lower than 2% of salary. |
6 | | (3) Employer contributions shall vest when those |
7 | | contributions are paid into a member's or participant's |
8 | | account. |
9 | | (4) The defined contribution plan shall provide a |
10 | | variety of options for investments. These options shall |
11 | | include investments handled by the Illinois State Board of |
12 | | Investment as well as private sector investment options. |
13 | | (5) The defined contribution plan shall provide a |
14 | | variety of options for payouts to retirees and their |
15 | | survivors. |
16 | | (6) To the extent authorized under federal law and as |
17 | | authorized by the retirement system, the defined |
18 | | contribution plan shall allow former participants in the |
19 | | plan to transfer or roll over employee and employer |
20 | | contributions, and the earnings thereon, into other |
21 | | qualified retirement plans. |
22 | | (7) Each retirement system shall reduce the employee |
23 | | contributions credited to the member's defined |
24 | | contribution plan account by an amount determined by that |
25 | | retirement system to cover the cost of offering the |
26 | | benefits under this subsection and any applicable |
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1 | | administrative fees. |
2 | | (8) No person shall begin participating in the defined |
3 | | contribution plan until it has attained qualified plan |
4 | | status and received all necessary approvals from the U.S. |
5 | | Internal Revenue Service. |
6 | | (l) By accepting the benefits under this Section, a member |
7 | | or participant acknowledges and consents that benefits once |
8 | | earned may not be diminished, but that future benefits may be |
9 | | modified, including, but not limited to, changes in the |
10 | | retirement age at which a member or participant becomes |
11 | | eligible to receive future benefits, changes in the amount of |
12 | | the automatic annual increase for those future benefits, or the |
13 | | amount of the retirement annuity. Any increase in benefits |
14 | | under this Section applicable to persons under Article 15 or 16 |
15 | | does not apply unless it is approved by resolution or ordinance |
16 | | of the governing body of the unit of local government with |
17 | | regard to the members or participants under that unit of local |
18 | | government. |
19 | | (m) In the case of a conflict between the provisions of |
20 | | this Section and any other provision of this Code, the |
21 | | provisions of this Section shall control. |
22 | | (40 ILCS 5/1-162 new) |
23 | | Sec. 1-162. Optional benefits for certain Tier 2 members of |
24 | | pension funds under Articles 7, 8, 9, 10, 11, 12, 13, and 17. |
25 | | (a) As used in this Section: |
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1 | | "Affected pension fund" means a pension fund established |
2 | | under Article 7, 8, 9, 10, 11, 12, 13, or 17 that the governing |
3 | | body of the unit of local government has designated as an |
4 | | affected pension fund by adoption of a resolution or ordinance. |
5 | | "Resolution or ordinance date" means the date on which the |
6 | | governing body of the unit of local government designates a |
7 | | pension fund under Article 7, 8, 9, 10, 11, 12, 13, or 17 as an |
8 | | affected pension fund by adoption of a resolution or ordinance. |
9 | | (b) Notwithstanding any other provision of this Code to the |
10 | | contrary, the provisions of this Section apply to a person who |
11 | | first becomes a member or a participant in an affected pension |
12 | | fund on or after 6 months after the resolution or ordinance |
13 | | date and who does not make the election under subsection (c). |
14 | | The provisions of this Section do not apply to a sheriff's law |
15 | | enforcement employee under Article 7. |
16 | | (c) In lieu of the benefits provided under this Section, a |
17 | | member or participant may irrevocably elect the benefits under |
18 | | Section 1-160 and the benefits otherwise applicable to that |
19 | | member or participant. The election must be made within 30 days |
20 | | after becoming a member or participant. Each affected pension |
21 | | fund shall establish procedures for making this election. |
22 | | (d) "Final average salary" means the average monthly (or |
23 | | annual) salary obtained by dividing the total salary or |
24 | | earnings calculated under the Article applicable to the member |
25 | | or participant during the last 120 months (or 10 years) of |
26 | | service in which the total salary or earnings calculated under |
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1 | | the applicable Article was the highest by the number of months |
2 | | (or years) of service in that period. For the purposes of a |
3 | | person who first becomes a member or participant of an affected |
4 | | pension fund on or after 6 months after the ordinance or |
5 | | resolution date, in this Code, "final average salary" shall be |
6 | | substituted for the following: |
7 | | (1) In Article 7, (except for service as sheriff's law
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8 | | enforcement employees), "final rate of earnings". |
9 | | (2) In Articles 8, 9, 10, 11, and 12, "highest
average |
10 | | annual salary for any 4 consecutive years within the last |
11 | | 10 years of service immediately preceding the date of |
12 | | withdrawal". |
13 | | (3) In Article 13, "average final salary". |
14 | | (4) In Article 17, "average salary". |
15 | | (e) Beginning 6 months after the resolution or ordinance |
16 | | date, for all purposes under this Code (including without |
17 | | limitation the calculation of benefits and employee |
18 | | contributions), the annual earnings, salary, or wages (based on |
19 | | the plan year) of a member or participant to whom this Section |
20 | | applies shall not at any time exceed the federal Social |
21 | | Security Wage Base then in effect. |
22 | | (f) A member or participant is entitled to a retirement
|
23 | | annuity upon written application if he or she has attained the |
24 | | normal retirement age determined by the Social Security |
25 | | Administration for that member or participant's year of birth, |
26 | | but no earlier than 67 years of age, and has at least 10 years |
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1 | | of service credit and is otherwise eligible under the |
2 | | requirements of the applicable Article. |
3 | | (g) The amount of the retirement annuity to which a member |
4 | | or participant is entitled shall be computed by multiplying |
5 | | 1.25% for each year of service credit by his or her final |
6 | | average salary. |
7 | | (h) Any retirement annuity or supplemental annuity shall be |
8 | | subject to annual increases on the first anniversary of the |
9 | | annuity start date. Each annual increase shall be one-half the |
10 | | annual unadjusted percentage increase (but not less than zero) |
11 | | in the consumer price index-w for the 12 months ending with the |
12 | | September preceding each November 1 of the originally granted |
13 | | retirement annuity. If the annual unadjusted percentage change |
14 | | in the consumer price index-w for the 12 months ending with the |
15 | | September preceding each November 1 is zero or there is a |
16 | | decrease, then the annuity shall not be increased. |
17 | | For the purposes of this Section, "consumer price index-w" |
18 | | means the index published by the Bureau of Labor Statistics of |
19 | | the United States Department of Labor that measures the average |
20 | | change in prices of goods and services purchased by Urban Wage |
21 | | Earners and Clerical Workers, United States city average, all |
22 | | items, 1982-84 = 100. The new amount resulting from each annual |
23 | | adjustment shall be determined by the Public Pension Division |
24 | | of the Department of Insurance and made available to the boards |
25 | | of the retirement systems and pension funds by November 1 of |
26 | | each year. |
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1 | | (i) The initial survivor's or widow's annuity of an |
2 | | otherwise eligible survivor or widow of a retired member or |
3 | | participant who first became a member or participant on or |
4 | | after 6 months after the resolution or ordinance date shall be |
5 | | in the amount of 66 2/3% of the retired member's or |
6 | | participant's retirement annuity at the date of death. In the |
7 | | case of the death of a member or participant who has not |
8 | | retired and who first became a member or participant on or |
9 | | after 6 months after the resolution or ordinance date, |
10 | | eligibility for a survivor's or widow's annuity shall be |
11 | | determined by the applicable Article of this Code. The benefit |
12 | | shall be 66 2/3% of the earned annuity without a reduction due |
13 | | to age. A child's annuity of an otherwise eligible child shall |
14 | | be in the amount prescribed under each Article if applicable. |
15 | | (j) In lieu of any other employee contributions, except for |
16 | | the contribution to the defined contribution plan under |
17 | | subsection (k) of this Section, each employee shall contribute |
18 | | 6.2% of his her or salary to the affected pension fund. |
19 | | However, the employee contribution under this subsection shall |
20 | | not exceed the amount of the normal cost of the benefits under |
21 | | this Section (except for the defined contribution plan under |
22 | | subsection (k) of this Section), expressed as a percentage of |
23 | | payroll and determined on or before November 1 of each year by |
24 | | the board of trustees of the affected pension fund. If the |
25 | | board of trustees of the affected pension fund determines that |
26 | | the 6.2% employee contribution rate exceeds the normal cost of |
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1 | | the benefits under this Section (except for the defined |
2 | | contribution plan under subsection (k) of this Section), then |
3 | | on or before December 1 of that year, the board of trustees |
4 | | shall certify the amount of the normal cost of the benefits |
5 | | under this Section (except for the defined contribution plan |
6 | | under subsection (k) of this Section), expressed as a |
7 | | percentage of payroll, to the State Actuary and the Commission |
8 | | on Government Forecasting and Accountability, and the employee |
9 | | contribution under this subsection shall be reduced to that |
10 | | amount beginning January 1 of the following year. Thereafter, |
11 | | if the normal cost of the benefits under this Section (except |
12 | | for the defined contribution plan under subsection (k) of this |
13 | | Section), expressed as a percentage of payroll and determined |
14 | | on or before November 1 of each year by the board of trustees |
15 | | of the affected pension fund, exceeds 6.2% of salary, then on |
16 | | or before December 1 of that year, the board of trustees shall |
17 | | certify the normal cost to the State Actuary and the Commission |
18 | | on Government Forecasting and Accountability, and the employee |
19 | | contributions shall revert back to 6.2% of salary beginning |
20 | | January 1 of the following year. |
21 | | (k) No later than 5 months after the resolution or |
22 | | ordinance date, an affected pension fund shall prepare and |
23 | | implement a defined contribution plan for members or |
24 | | participants who are subject to this Section. The defined |
25 | | contribution plan developed under this subsection shall be a |
26 | | plan that aggregates employer and employee contributions in |
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1 | | individual participant accounts which, after meeting any other |
2 | | requirements, are used for payouts after retirement in |
3 | | accordance with this subsection and any other applicable laws. |
4 | | (1) Each member or participant shall contribute a |
5 | | minimum of 4% of his or her salary to the defined |
6 | | contribution plan. |
7 | | (2) For each participant in the defined contribution |
8 | | plan who has been employed with the same employer for at |
9 | | least one year, employer contributions shall be paid into |
10 | | that participant's accounts at a rate expressed as a |
11 | | percentage of salary. This rate may be set for individual |
12 | | employees, but shall be no higher than 6% of salary and |
13 | | shall be no lower than 2% of salary. |
14 | | (3) Employer contributions shall vest when those |
15 | | contributions are paid into a member's or participant's |
16 | | account. |
17 | | (4) The defined contribution plan shall provide a |
18 | | variety of options for investments. These options shall |
19 | | include investments handled by the Illinois State Board of |
20 | | Investment as well as private sector investment options. |
21 | | (5) The defined contribution plan shall provide a |
22 | | variety of options for payouts to retirees and their |
23 | | survivors. |
24 | | (6) To the extent authorized under federal law and as |
25 | | authorized by the affected pension fund, the defined |
26 | | contribution plan shall allow former participants in the |
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1 | | plan to transfer or roll over employee and employer |
2 | | contributions, and the earnings thereon, into other |
3 | | qualified retirement plans. |
4 | | (7) Each affected pension fund shall reduce the |
5 | | employee contributions credited to the member's defined |
6 | | contribution plan account by an amount determined by that |
7 | | affected pension fund to cover the cost of offering the |
8 | | benefits under this subsection and any applicable |
9 | | administrative fees. |
10 | | (8) No person shall begin participating in the defined |
11 | | contribution plan until it has attained qualified plan |
12 | | status and received all necessary approvals from the U.S. |
13 | | Internal Revenue Service. |
14 | | (l) By accepting the benefits under this Section, a member |
15 | | or participant acknowledges and consents that benefits once |
16 | | earned may not be diminished, but that future benefits may be |
17 | | modified, including, but not limited to, changes in the |
18 | | retirement age at which a member or participant becomes |
19 | | eligible to receive future benefits, changes in the amount of |
20 | | the automatic annual increase for those future benefits, or the |
21 | | amount of the retirement annuity. Any increase in benefits |
22 | | under this Section does not apply unless it is approved by |
23 | | resolution or ordinance of the governing body of the unit of |
24 | | local government with regard to the members or participants |
25 | | under that unit of local government. |
26 | | (m) In the case of a conflict between the provisions of |
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1 | | this Section and any other provision of this Code, the |
2 | | provisions of this Section shall control. |
3 | | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
|
4 | | Sec. 2-101. Creation of system. A retirement system is |
5 | | created to provide
retirement annuities, survivor's annuities |
6 | | and other benefits for certain
members of the General Assembly, |
7 | | certain elected state officials , and their
beneficiaries.
|
8 | | The system shall be known as the "General Assembly |
9 | | Retirement System".
All its funds and property shall be a trust |
10 | | separate from all other
entities, maintained for the purpose of |
11 | | securing payment of annuities and
benefits under this Article.
|
12 | | Participation in the retirement system created under this |
13 | | Article is
restricted to persons who became participants before |
14 | | the effective date of this amendatory Act of the 100th General |
15 | | Assembly.
Beginning on that date, the System shall not accept |
16 | | any new participants.
|
17 | | (Source: P.A. 83-1440.)
|
18 | | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
|
19 | | Sec. 2-105. Member. "Member": Members of the General |
20 | | Assembly of this
State , including persons who enter military |
21 | | service while a member of the
General Assembly , and any person |
22 | | serving as Governor, Lieutenant Governor,
Secretary of State, |
23 | | Treasurer, Comptroller, or Attorney General for the period
of |
24 | | service in such office.
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1 | | Any person who has served for 10 or more years as Clerk or |
2 | | Assistant Clerk
of the House of Representatives, Secretary or |
3 | | Assistant Secretary of the
Senate, or any combination thereof, |
4 | | may elect to become a member
of this system while thenceforth |
5 | | engaged in such service by filing a
written election with the |
6 | | board. Any person so electing shall be
deemed an active member |
7 | | of the General Assembly for the purpose of validating
and |
8 | | transferring any service credits earned under any of the funds |
9 | | and systems
established under Articles 3 through 18 of this |
10 | | Code.
|
11 | | However, notwithstanding any other provision of this |
12 | | Article, a person
shall not be deemed a member for the purposes |
13 | | of this Article unless he or she
became a participant of the |
14 | | System before the effective date of this amendatory Act of the |
15 | | 100th General Assembly.
|
16 | | (Source: P.A. 85-1008.)
|
17 | | (40 ILCS 5/2-105.3 new) |
18 | | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A |
19 | | participant who first became a participant before January 1, |
20 | | 2011.
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21 | | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
|
22 | | Sec. 2-107. Participant. "Participant": Any member who |
23 | | elects to
participate; and any former member who elects to |
24 | | continue participation
under Section 2-117.1, for the duration |
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1 | | of such continued participation. However, notwithstanding any |
2 | | other provision of this Article, a person
shall not be deemed a |
3 | | participant for the purposes of this Article unless he or she
|
4 | | became a participant of the System before the effective date of |
5 | | this amendatory Act of the 100th General Assembly.
|
6 | | (Source: P.A. 86-1488.)
|
7 | | (40 ILCS 5/2-107.9 new) |
8 | | Sec. 2-107.9. Future increase in income. "Future increase |
9 | | in income" means an increase to a Tier 1 employee's base pay |
10 | | that is offered to the Tier 1 employee for service under this |
11 | | Article after June 30, 2018 that qualifies as "salary", as |
12 | | defined in Section 2-108, or would qualify as "salary" but for |
13 | | the fact that it was offered to and accepted by the Tier 1 |
14 | | employee under the condition set forth in subsection (c) of |
15 | | Section 2-110.3. |
16 | | (40 ILCS 5/2-107.10 new) |
17 | | Sec. 2-107.10. Base pay. As used in Section 2-107.9 of |
18 | | this Code, "base pay" means the Tier 1 employee's annualized |
19 | | rate of salary as of June 30, 2018. For a person returning to |
20 | | active service as a Tier 1 employee after June 30, 2018, |
21 | | however, "base pay" means the employee's annualized rate of |
22 | | salary as of the employee's last date of service prior to July |
23 | | 1, 2018. The System shall calculate the base pay of each Tier 1 |
24 | | employee pursuant to this Section.
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1 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
|
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been
held unconstitutional)
|
4 | | Sec. 2-108. Salary. "Salary": |
5 | | (1) For members of the General Assembly,
the total |
6 | | compensation paid to the member by the State for one
year of |
7 | | service, including the additional amounts, if any, paid to
the |
8 | | member as an officer pursuant to Section 1 of "An Act
in |
9 | | relation to the compensation and emoluments of the members of |
10 | | the
General Assembly", approved December 6, 1907, as now or |
11 | | hereafter
amended.
|
12 | | (2) For the State executive officers specified
in Section |
13 | | 2-105, the total compensation paid to the member for one year
|
14 | | of service.
|
15 | | (3) For members of the System who are participants under |
16 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
17 | | of the House of
Representatives or Secretary or Assistant |
18 | | Secretary of the Senate, the
total compensation paid to the |
19 | | member for one year of service, but not to
exceed the salary of |
20 | | the highest salaried officer of the General Assembly.
|
21 | | However, in the event that federal law results in any |
22 | | participant
receiving imputed income based on the value of |
23 | | group term life insurance
provided by the State, such imputed |
24 | | income shall not be included in salary
for the purposes of this |
25 | | Article.
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1 | | Notwithstanding any other provision of this Section, |
2 | | "salary" does not include any future increase in income that is |
3 | | offered for service to a Tier 1 employee under this Article |
4 | | pursuant to the condition set forth in subsection (c) of |
5 | | Section 2-110.3 and accepted under that condition by a Tier 1 |
6 | | employee who has made the election under paragraph (2) of |
7 | | subsection (a) of Section 2-110.3. |
8 | | Notwithstanding any other provision of this Section, |
9 | | "salary" does not include any consideration payment made to a |
10 | | Tier 1 employee. |
11 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
12 | | (40 ILCS 5/2-110.3 new) |
13 | | Sec. 2-110.3. Election by Tier 1 employees. |
14 | | (a) Each active Tier 1 employee shall make an irrevocable |
15 | | election either: |
16 | | (1) to agree to delay his or her eligibility for |
17 | | automatic annual increases in retirement annuity as |
18 | | provided in subsection (a-1) of Section 2-119.1 and to have |
19 | | the amount of the automatic annual increases in his or her |
20 | | retirement annuity and survivor's annuity that are |
21 | | otherwise provided for in this Article calculated, |
22 | | instead, as provided in subsection (a-1) of Section |
23 | | 2-119.1; or |
24 | | (2) to not agree to paragraph (1) of this subsection. |
25 | | The election required under this subsection (a) shall be |
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1 | | made by each active Tier 1 employee no earlier than January 1, |
2 | | 2018 and no later than March 31, 2018, except that a person who |
3 | | returns to active service as a Tier 1 employee under this |
4 | | Article on or after January 1, 2018 and has not yet made an |
5 | | election under this Section must make the election under this |
6 | | subsection (a) within 60 days after returning to active service |
7 | | as a Tier 1 employee. |
8 | | If a Tier 1 employee fails for any reason to make a |
9 | | required election under this subsection within the time |
10 | | specified, then the employee shall be deemed to have made the |
11 | | election under paragraph (2) of this subsection. |
12 | | (a-5) If this Section is enjoined or stayed by an Illinois |
13 | | court or a court of competent jurisdiction pending the entry of |
14 | | a final and unappealable decision, and this Section is |
15 | | determined to be constitutional or otherwise valid by a final |
16 | | unappealable decision of an Illinois court or a court of |
17 | | competent jurisdiction, then the election procedure set forth |
18 | | in subsection (a) of this Section shall commence on the 180th |
19 | | calendar day after the date of the issuance of the final |
20 | | unappealable decision and shall conclude at the end of the |
21 | | 270th calendar day after that date. |
22 | | (a-10) All elections under subsection (a) that are made or |
23 | | deemed to be made before July 1, 2018 shall take effect on July |
24 | | 1, 2018. Elections that are made or deemed to be made on or |
25 | | after July 1, 2018 shall take effect on the first day of the |
26 | | month following the month in which the election is made or |
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1 | | deemed to be made. |
2 | | (b) As adequate and legal consideration provided under this |
3 | | amendatory Act of the 100th General Assembly for making an |
4 | | election under paragraph (1) of subsection (a) of this Section, |
5 | | the State of Illinois shall be expressly and irrevocably |
6 | | prohibited from offering any future increases in income to a |
7 | | Tier 1 employee who has made an election under paragraph (1) of |
8 | | subsection (a) of this Section on the condition of not |
9 | | constituting salary under Section 2-108. |
10 | | As adequate and legal consideration provided under this |
11 | | amendatory Act of the 100th General Assembly for making an |
12 | | election under paragraph (1) of subsection (a) of this Section, |
13 | | each Tier 1 employee who has made an election under paragraph |
14 | | (1) of subsection (a) of this Section shall receive a |
15 | | consideration payment equal to 10% of the contributions made by |
16 | | or on behalf of the employee under Section 2-126 before the |
17 | | effective date of that election. The State Comptroller shall |
18 | | pay the consideration payment to the Tier 1 employee out of |
19 | | funds appropriated for that purpose under Section 1.9 of the |
20 | | State Pension Funds Continuing Appropriation Act. The System |
21 | | shall calculate the amount of each consideration payment and, |
22 | | by July 1, 2018, shall certify to the State Comptroller the |
23 | | amount of the consideration payment, together with the name, |
24 | | address, and any other available payment information of the |
25 | | Tier 1 employee as found in the records of the System. The |
26 | | System shall make additional calculations and certifications |
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1 | | of consideration payments to the State Comptroller as the |
2 | | System deems necessary. |
3 | | (c) A Tier 1 employee who makes the election under |
4 | | paragraph (2) of subsection (a) of this Section shall not be |
5 | | subject to paragraph (1) of subsection (a) of this Section. |
6 | | However, each future increase in income offered for service as |
7 | | a member under this Article to a Tier 1 employee who has made |
8 | | the election under paragraph (2) of subsection (a) of this |
9 | | Section shall be offered expressly and irrevocably on the |
10 | | condition of not constituting salary under Section 2-108 and |
11 | | that the Tier 1 employee's acceptance of the offered future |
12 | | increase in income shall constitute his or her agreement to |
13 | | that condition. |
14 | | (d) The System shall make a good faith effort to contact |
15 | | each Tier 1 employee subject to this Section. The System shall |
16 | | mail information describing the required election to each Tier |
17 | | 1 employee by United States Postal Service mail to his or her |
18 | | last known address on file with the System. If the Tier 1 |
19 | | employee is not responsive to other means of contact, it is |
20 | | sufficient for the System to publish the details of any |
21 | | required elections on its website or to publish those details |
22 | | in a regularly published newsletter or other existing public |
23 | | forum. |
24 | | Tier 1 employees who are subject to this Section shall be |
25 | | provided with an election packet containing information |
26 | | regarding their options, as well as the forms necessary to make |
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1 | | the required election. Upon request, the System shall offer |
2 | | Tier 1 employees an opportunity to receive information from the |
3 | | System before making the required election. The information may |
4 | | be provided through video materials, group presentations, |
5 | | individual consultation with a member or authorized |
6 | | representative of the System in person or by telephone or other |
7 | | electronic means, or any combination of those methods. The |
8 | | System shall not provide advice or counseling with respect to |
9 | | which election a Tier 1 employee should make or specific to the |
10 | | legal or tax circumstances of or consequences to the Tier 1 |
11 | | employee. |
12 | | The System shall inform Tier 1 employees in the election |
13 | | packet required under this subsection that the Tier 1 employee |
14 | | may also wish to obtain information and counsel relating to the |
15 | | election required under this Section from any other available |
16 | | source, including, but not limited to, labor organizations and |
17 | | private counsel. |
18 | | In no event shall the System, its staff, or the Board be |
19 | | held liable for any information given to a member regarding the |
20 | | elections under this Section. The System shall coordinate with |
21 | | the Illinois Department of Central Management Services and each |
22 | | other retirement system administering an election in |
23 | | accordance with this amendatory Act of the 100th General |
24 | | Assembly to provide information concerning the impact of the |
25 | | election set forth in this Section. |
26 | | (e) Notwithstanding any other provision of law, each future |
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1 | | increase in income offered by the State of Illinois for service |
2 | | as a member must be offered expressly and irrevocably on the |
3 | | condition of not constituting "salary" under Section 2-108 to |
4 | | any Tier 1 employee who has made an election under paragraph |
5 | | (2) of subsection (a) of this Section. The offer shall also |
6 | | provide that the Tier 1 employee's acceptance of the offered |
7 | | future increase in income shall constitute his or her agreement |
8 | | to the condition set forth in this subsection. |
9 | | For purposes of legislative intent, the condition set forth |
10 | | in this subsection shall be construed in a manner that ensures |
11 | | that the condition is not violated or circumvented through any |
12 | | contrivance of any kind. |
13 | | (f) A member's election under this Section is not a |
14 | | prohibited election under subdivision (j)(1) of Section 1-119 |
15 | | of this Code. |
16 | | (g) No provision of this Section shall be interpreted in a |
17 | | way that would cause the System to cease to be a qualified plan |
18 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
19 | | provisions of this Section shall be subject to and implemented |
20 | | in a manner that complies with Section 11 of Article IV of the |
21 | | Illinois Constitution. |
22 | | (h) If an election created by this amendatory Act in any |
23 | | other Article of this Code or any change deriving from that |
24 | | election is determined to be unconstitutional or otherwise |
25 | | invalid by a final unappealable decision of an Illinois court |
26 | | or a court of competent jurisdiction, the invalidity of that |
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1 | | provision shall not in any way affect the validity of this |
2 | | Section or the changes deriving from the election required |
3 | | under this Section.
|
4 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
5 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
6 | | which has been
held unconstitutional)
|
7 | | Sec. 2-119.1. Automatic increase in retirement annuity.
|
8 | | (a) Except as provided in subsection (a-1), a A participant |
9 | | who retires after June 30, 1967, and who has not
received an |
10 | | initial increase under this Section before the effective date
|
11 | | of this amendatory Act of 1991, shall, in January or July next |
12 | | following
the first anniversary of retirement, whichever |
13 | | occurs first, and in the same
month of each year thereafter, |
14 | | but in no event prior to age 60, have the amount
of the |
15 | | originally granted retirement annuity increased as follows: |
16 | | for each
year through 1971, 1 1/2%; for each year from 1972 |
17 | | through 1979, 2%; and for
1980 and each year thereafter, 3%. |
18 | | Annuitants who have received an initial
increase under this |
19 | | subsection prior to the effective date of this amendatory
Act |
20 | | of 1991 shall continue to receive their annual increases in the |
21 | | same month
as the initial increase.
|
22 | | (a-1) Notwithstanding any other provision of this Article, |
23 | | for a Tier 1 employee who made the election under paragraph (1) |
24 | | of subsection (a) of Section 2-110.3: |
25 | | (1) The initial increase in retirement annuity under |
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1 | | this Section shall occur on the January 1 occurring either |
2 | | on or after the attainment of age 67 or the fifth |
3 | | anniversary of the annuity start date, whichever is |
4 | | earlier. |
5 | | (2) The amount of each automatic annual increase in |
6 | | retirement annuity or survivor's annuity occurring on or |
7 | | after the effective date of that election shall be |
8 | | calculated as a percentage of the originally granted |
9 | | retirement annuity or survivor's annuity, equal to 3% or |
10 | | one-half the annual unadjusted percentage increase (but |
11 | | not less than zero) in the consumer price index-u for the |
12 | | 12 months ending with the September preceding each November |
13 | | 1, whichever is less. If the annual unadjusted percentage |
14 | | change in the consumer price index-u for the 12 months |
15 | | ending with the September preceding each November 1 is zero |
16 | | or there is a decrease, then the annuity shall not be |
17 | | increased. |
18 | | For the purposes of this Section, "consumer price index-u" |
19 | | means
the index published by the Bureau of Labor Statistics of |
20 | | the United States
Department of Labor that measures the average |
21 | | change in prices of goods and
services purchased by all urban |
22 | | consumers, United States city average, all
items, 1982-84 = |
23 | | 100. The new amount resulting from each annual adjustment
shall |
24 | | be determined by the Public Pension Division of the Department |
25 | | of Insurance and made available to the board of the retirement |
26 | | system by November 1 of each year. |
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1 | | (b) Beginning January 1, 1990, for eligible participants |
2 | | who remain
in service after attaining 20 years of creditable |
3 | | service, the 3% increases
provided under subsection (a) shall |
4 | | begin to accrue on the January 1 next
following the date upon |
5 | | which the participant (1) attains age 55, or (2)
attains 20 |
6 | | years of creditable service, whichever occurs later, and shall
|
7 | | continue to accrue while the participant remains in service; |
8 | | such increases
shall become payable on January 1 or July 1, |
9 | | whichever occurs first, next
following the first anniversary of |
10 | | retirement. For any person who has service
credit in the System |
11 | | for the entire period from January 15, 1969 through
December |
12 | | 31, 1992, regardless of the date of termination of service, the
|
13 | | reference to age 55 in clause (1) of this subsection (b) shall |
14 | | be deemed to
mean age 50.
|
15 | | This subsection (b) does not apply to any person who first |
16 | | becomes a
member of the System after August 8, 2003 ( the |
17 | | effective date of Public Act 93-494) this amendatory Act of
the |
18 | | 93rd General Assembly .
|
19 | | (b-5) Notwithstanding any other provision of this Article, |
20 | | a participant who first becomes a participant on or after |
21 | | January 1, 2011 (the effective date of Public Act 96-889) |
22 | | shall, in January or July next following the first anniversary |
23 | | of retirement, whichever occurs first, and in the same month of |
24 | | each year thereafter, but in no event prior to age 67, have the |
25 | | amount of the retirement annuity then being paid increased by |
26 | | 3% or the annual unadjusted percentage increase in the Consumer |
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1 | | Price Index for All Urban Consumers as determined by the Public |
2 | | Pension Division of the Department of Insurance under |
3 | | subsection (a) of Section 2-108.1, whichever is less. |
4 | | (c) The foregoing provisions relating to automatic |
5 | | increases are not
applicable to a participant who retires |
6 | | before having made contributions
(at the rate prescribed in |
7 | | Section 2-126) for automatic increases for less
than the |
8 | | equivalent of one full year. However, in order to be eligible |
9 | | for
the automatic increases, such a participant may make |
10 | | arrangements to pay
to the system the amount required to bring |
11 | | the total contributions for the
automatic increase to the |
12 | | equivalent of one year's contributions based upon
his or her |
13 | | last salary.
|
14 | | (d) A participant who terminated service prior to July 1, |
15 | | 1967, with at
least 14 years of service is entitled to an |
16 | | increase in retirement annuity
beginning January, 1976, and to |
17 | | additional increases in January of each
year thereafter.
|
18 | | The initial increase shall be 1 1/2% of the originally |
19 | | granted retirement
annuity multiplied by the number of full |
20 | | years that the annuitant was in
receipt of such annuity prior |
21 | | to January 1, 1972, plus 2% of the originally
granted |
22 | | retirement annuity for each year after that date. The |
23 | | subsequent
annual increases shall be at the rate of 2% of the |
24 | | originally granted
retirement annuity for each year through |
25 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
26 | | (e) Beginning January 1, 1990, and except as provided in |
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1 | | subsection (a-1), all automatic annual increases payable
under |
2 | | this Section shall be calculated as a percentage of the total |
3 | | annuity
payable at the time of the increase, including previous |
4 | | increases granted
under this Article.
|
5 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
6 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
|
7 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
8 | | which has been
held unconstitutional)
|
9 | | Sec. 2-124. Contributions by State.
|
10 | | (a) The State shall make contributions to the System by
|
11 | | appropriations of amounts which, together with the |
12 | | contributions of
participants, interest earned on investments, |
13 | | and other income
will meet the cost of maintaining and |
14 | | administering the System on a 90%
funded basis in accordance |
15 | | with actuarial recommendations.
|
16 | | (b) The Board shall determine the amount of State
|
17 | | contributions required for each fiscal year on the basis of the
|
18 | | actuarial tables and other assumptions adopted by the Board and |
19 | | the
prescribed rate of interest, using the formula in |
20 | | subsection (c).
|
21 | | (c) For State fiscal years 2018 through 2045 (except as |
22 | | otherwise provided for fiscal year 2019), the minimum |
23 | | contribution to the System to be made by the State for each |
24 | | fiscal year shall be an amount determined by the System to be |
25 | | sufficient to bring the total assets of the System up to 90% of |
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1 | | the total actuarial liabilities of the System by the end of |
2 | | State fiscal year 2045. In making these determinations, the |
3 | | required State contribution shall be calculated each year as a |
4 | | level percentage of total payroll, including payroll that is |
5 | | not deemed pensionable, but excluding payroll attributable to |
6 | | participants in the defined contribution plan under Section |
7 | | 2-165.1, over the years remaining to and including fiscal year |
8 | | 2045 and shall be determined under the projected unit credit |
9 | | actuarial cost method. |
10 | | For State fiscal year 2019: |
11 | | (1) The initial calculation and certification shall be |
12 | | based on the amount determined above. |
13 | | (2) For purposes of the recertification due on or |
14 | | before May 1, 2018, the recalculation of the required State |
15 | | contribution for fiscal year 2019 shall take into account |
16 | | the effect on the System's liabilities of the elections |
17 | | made under Section 2-110.3. |
18 | | (3) For purposes of the recertification due on or |
19 | | before October 1, 2018, the total required State |
20 | | contribution for fiscal year 2019 shall be reduced by the |
21 | | amount of the consideration payments made to Tier 1 |
22 | | employees who made the election under paragraph (1) of |
23 | | subsection (a) of Section 2-110.3. |
24 | | Beginning in State fiscal year 2018, any increase or |
25 | | decrease in State contribution over the prior fiscal year due |
26 | | exclusively to changes in actuarial or investment assumptions |
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1 | | adopted by the Board shall be included in the State |
2 | | contribution to the System, as a percentage of the applicable |
3 | | employee payroll, and shall be increased in equal annual |
4 | | increments so that by the State fiscal year occurring 5 years |
5 | | after the adoption of the actuarial or investment assumptions, |
6 | | the State is contributing at the rate otherwise required under |
7 | | this Section. |
8 | | If Section 2-110.3 is determined to be unconstitutional or |
9 | | otherwise invalid by a final unappealable decision of an |
10 | | Illinois court
or a court of competent jurisdiction, then the |
11 | | changes made to this Section by this amendatory Act of the |
12 | | 100th General Assembly shall not take effect and are repealed |
13 | | by operation of law. |
14 | | For State fiscal years 2012 through 2017 2045 , the minimum |
15 | | contribution
to the System to be made by the State for each |
16 | | fiscal year shall be an amount
determined by the System to be |
17 | | sufficient to bring the total assets of the
System up to 90% of |
18 | | the total actuarial liabilities of the System by the end of
|
19 | | State fiscal year 2045. In making these determinations, the |
20 | | required State
contribution shall be calculated each year as a |
21 | | level percentage of payroll
over the years remaining to and |
22 | | including fiscal year 2045 and shall be
determined under the |
23 | | projected unit credit actuarial cost method.
|
24 | | For State fiscal years 1996 through 2005, the State |
25 | | contribution to
the System, as a percentage of the applicable |
26 | | employee payroll, shall be
increased in equal annual increments |
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1 | | so that by State fiscal year 2011, the
State is contributing at |
2 | | the rate required under this Section.
|
3 | | Notwithstanding any other provision of this Article, the |
4 | | total required State
contribution for State fiscal year 2006 is |
5 | | $4,157,000.
|
6 | | Notwithstanding any other provision of this Article, the |
7 | | total required State
contribution for State fiscal year 2007 is |
8 | | $5,220,300.
|
9 | | For each of State fiscal years 2008 through 2009, the State |
10 | | contribution to
the System, as a percentage of the applicable |
11 | | employee payroll, shall be
increased in equal annual increments |
12 | | from the required State contribution for State fiscal year |
13 | | 2007, so that by State fiscal year 2011, the
State is |
14 | | contributing at the rate otherwise required under this Section.
|
15 | | Notwithstanding any other provision of this Article, the |
16 | | total required State contribution for State fiscal year 2010 is |
17 | | $10,454,000 and shall be made from the proceeds of bonds sold |
18 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
19 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
20 | | expenses determined by the System's share of total bond |
21 | | proceeds, (ii) any amounts received from the General Revenue |
22 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
23 | | proceeds due to the issuance of discounted bonds, if |
24 | | applicable. |
25 | | Notwithstanding any other provision of this Article, the
|
26 | | total required State contribution for State fiscal year 2011 is
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1 | | the amount recertified by the System on or before April 1, 2011 |
2 | | pursuant to Section 2-134 and shall be made from the proceeds |
3 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
4 | | the General
Obligation Bond Act, less (i) the pro rata share of |
5 | | bond sale
expenses determined by the System's share of total |
6 | | bond
proceeds, (ii) any amounts received from the General |
7 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
8 | | bond
proceeds due to the issuance of discounted bonds, if
|
9 | | applicable. |
10 | | Beginning in State fiscal year 2046, the minimum State |
11 | | contribution for
each fiscal year shall be the amount needed to |
12 | | maintain the total assets of
the System at 90% of the total |
13 | | actuarial liabilities of the System.
|
14 | | Amounts received by the System pursuant to Section 25 of |
15 | | the Budget Stabilization Act or Section 8.12 of the State |
16 | | Finance Act in any fiscal year do not reduce and do not |
17 | | constitute payment of any portion of the minimum State |
18 | | contribution required under this Article in that fiscal year. |
19 | | Such amounts shall not reduce, and shall not be included in the |
20 | | calculation of, the required State contributions under this |
21 | | Article in any future year until the System has reached a |
22 | | funding ratio of at least 90%. A reference in this Article to |
23 | | the "required State contribution" or any substantially similar |
24 | | term does not include or apply to any amounts payable to the |
25 | | System under Section 25 of the Budget Stabilization Act.
|
26 | | Notwithstanding any other provision of this Section, the |
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1 | | required State
contribution for State fiscal year 2005 and for |
2 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
3 | | under this Section and
certified under Section 2-134, shall not |
4 | | exceed an amount equal to (i) the
amount of the required State |
5 | | contribution that would have been calculated under
this Section |
6 | | for that fiscal year if the System had not received any |
7 | | payments
under subsection (d) of Section 7.2 of the General |
8 | | Obligation Bond Act, minus
(ii) the portion of the State's |
9 | | total debt service payments for that fiscal
year on the bonds |
10 | | issued in fiscal year 2003 for the purposes of that Section |
11 | | 7.2, as determined
and certified by the Comptroller, that is |
12 | | the same as the System's portion of
the total moneys |
13 | | distributed under subsection (d) of Section 7.2 of the General
|
14 | | Obligation Bond Act. In determining this maximum for State |
15 | | fiscal years 2008 through 2010, however, the amount referred to |
16 | | in item (i) shall be increased, as a percentage of the |
17 | | applicable employee payroll, in equal increments calculated |
18 | | from the sum of the required State contribution for State |
19 | | fiscal year 2007 plus the applicable portion of the State's |
20 | | total debt service payments for fiscal year 2007 on the bonds |
21 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
22 | | the General
Obligation Bond Act, so that, by State fiscal year |
23 | | 2011, the
State is contributing at the rate otherwise required |
24 | | under this Section.
|
25 | | (d) For purposes of determining the required State |
26 | | contribution to the System, the value of the System's assets |
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1 | | shall be equal to the actuarial value of the System's assets, |
2 | | which shall be calculated as follows: |
3 | | As of June 30, 2008, the actuarial value of the System's |
4 | | assets shall be equal to the market value of the assets as of |
5 | | that date. In determining the actuarial value of the System's |
6 | | assets for fiscal years after June 30, 2008, any actuarial |
7 | | gains or losses from investment return incurred in a fiscal |
8 | | year shall be recognized in equal annual amounts over the |
9 | | 5-year period following that fiscal year. |
10 | | (e) For purposes of determining the required State |
11 | | contribution to the system for a particular year, the actuarial |
12 | | value of assets shall be assumed to earn a rate of return equal |
13 | | to the system's actuarially assumed rate of return. |
14 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
15 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
16 | | 7-13-12.)
|
17 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
18 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
19 | | which has been
held unconstitutional)
|
20 | | Sec. 2-126. Contributions by participants.
|
21 | | (a) Each participant shall contribute toward the cost of |
22 | | his or her
retirement annuity a percentage of each payment of |
23 | | salary received by him or
her for service as a member as |
24 | | follows: for service between October 31, 1947
and January 1, |
25 | | 1959, 5%; for service between January 1, 1959 and June 30, |
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1 | | 1969,
6%; for service between July 1, 1969 and January 10, |
2 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
3 | | service after December 31, 1981, 8 1/2%.
|
4 | | (b) Beginning August 2, 1949, each male participant, and |
5 | | from July 1,
1971, each female participant shall contribute |
6 | | towards the cost of the
survivor's annuity 2% of salary.
|
7 | | A participant who has no eligible survivor's annuity |
8 | | beneficiary may elect
to cease making contributions for |
9 | | survivor's annuity under this subsection.
A survivor's annuity |
10 | | shall not be payable upon the death of a person who has
made |
11 | | this election, unless prior to that death the election has been |
12 | | revoked
and the amount of the contributions that would have |
13 | | been paid under this
subsection in the absence of the election |
14 | | is paid to the System, together
with interest at the rate of 4% |
15 | | per year from the date the contributions
would have been made |
16 | | to the date of payment.
|
17 | | (c) Beginning July 1, 1967, each participant shall |
18 | | contribute 1% of
salary towards the cost of automatic increase |
19 | | in annuity provided in
Section 2-119.1. These contributions |
20 | | shall be made concurrently with
contributions for retirement |
21 | | annuity purposes.
|
22 | | (d) In addition, each participant serving as an officer of |
23 | | the General
Assembly shall contribute, for the same purposes |
24 | | and at the same rates
as are required of a regular participant, |
25 | | on each additional payment
received as an officer. If the |
26 | | participant serves as an
officer for at least 2 but less than 4 |
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1 | | years, he or she shall
contribute an amount equal to the amount |
2 | | that would have been contributed
had the participant served as |
3 | | an officer for 4 years. Persons who serve
as officers in the |
4 | | 87th General Assembly but cannot receive the additional
payment |
5 | | to officers because of the ban on increases in salary during |
6 | | their
terms may nonetheless make contributions based on those |
7 | | additional payments
for the purpose of having the additional |
8 | | payments included in their highest
salary for annuity purposes; |
9 | | however, persons electing to make these
additional |
10 | | contributions must also pay an amount representing the
|
11 | | corresponding employer contributions, as calculated by the |
12 | | System.
|
13 | | (e) Notwithstanding any other provision of this Article, |
14 | | the required contribution of a participant who first becomes a |
15 | | participant on or after January 1, 2011 shall not exceed the |
16 | | contribution that would be due under this Article if that |
17 | | participant's highest salary for annuity purposes were |
18 | | $106,800, plus any increases in that amount under Section |
19 | | 2-108.1. |
20 | | (f) Beginning July 1, 2018 or the effective date of the |
21 | | Tier 1 employee's election under paragraph (1) of subsection |
22 | | (a) of Section 2-110.3, whichever is later, in lieu of the |
23 | | contributions otherwise required under this Section, each Tier |
24 | | 1 employee who made the election under paragraph (1) of |
25 | | subsection (a) of Section 2-110.3 shall contribute 8.5% of each |
26 | | payment of salary toward the cost of his or her retirement |
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1 | | annuity and 1.85% of each payment of salary toward the cost of |
2 | | the survivor's annuity. |
3 | | (g) Notwithstanding subsection (f) of this Section, |
4 | | beginning July 1, 2018 or the effective date of the Tier 1 |
5 | | employee's election under paragraph (1) of subsection (a) of |
6 | | Section 2-110.3, whichever is later, in lieu of the |
7 | | contributions otherwise required under this Section, each Tier |
8 | | 1 employee who made the election under paragraph (1) of |
9 | | subsection (a) of Section 2-110.3 and has elected to cease |
10 | | making contributions for survivor's annuity under subsection |
11 | | (b) of this Section, shall contribute 8.55% of each payment of |
12 | | salary toward the cost of his or her retirement annuity. |
13 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
14 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
|
15 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
16 | | which has been
held unconstitutional)
|
17 | | Sec. 2-134. To certify required State contributions and |
18 | | submit vouchers.
|
19 | | (a) The Board shall certify to the Governor on or before |
20 | | December 15 of each
year until December 15, 2011 the amount of |
21 | | the required State contribution to the System for the next
|
22 | | fiscal year and shall specifically identify the System's |
23 | | projected State normal cost for that fiscal year. The |
24 | | certification shall include a copy of the actuarial
|
25 | | recommendations upon which it is based and shall specifically |
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1 | | identify the System's projected State normal cost for that |
2 | | fiscal year.
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3 | | On or before November 1 of each year, beginning November 1, |
4 | | 2012, the Board shall submit to the State Actuary, the |
5 | | Governor, and the General Assembly a proposed certification of |
6 | | the amount of the required State contribution to the System for |
7 | | the next fiscal year, along with all of the actuarial |
8 | | assumptions, calculations, and data upon which that proposed |
9 | | certification is based. On or before January 1 of each year |
10 | | beginning January 1, 2013, the State Actuary shall issue a |
11 | | preliminary report concerning the proposed certification and |
12 | | identifying, if necessary, recommended changes in actuarial |
13 | | assumptions that the Board must consider before finalizing its |
14 | | certification of the required State contributions. On or before |
15 | | January 15, 2013 and every January 15 thereafter, the Board |
16 | | shall certify to the Governor and the General Assembly the |
17 | | amount of the required State contribution for the next fiscal |
18 | | year. The Board's certification must note any deviations from |
19 | | the State Actuary's recommended changes, the reason or reasons |
20 | | for not following the State Actuary's recommended changes, and |
21 | | the fiscal impact of not following the State Actuary's |
22 | | recommended changes on the required State contribution. |
23 | | On or before May 1, 2004, the Board shall recalculate and |
24 | | recertify to
the Governor the amount of the required State |
25 | | contribution to the System for
State fiscal year 2005, taking |
26 | | into account the amounts appropriated to and
received by the |
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1 | | System under subsection (d) of Section 7.2 of the General
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2 | | Obligation Bond Act.
|
3 | | On or before July 1, 2005, the Board shall recalculate and |
4 | | recertify
to the Governor the amount of the required State
|
5 | | contribution to the System for State fiscal year 2006, taking |
6 | | into account the changes in required State contributions made |
7 | | by this amendatory Act of the 94th General Assembly.
|
8 | | On or before April 1, 2011, the Board shall recalculate and |
9 | | recertify to the Governor the amount of the required State |
10 | | contribution to the System for State fiscal year 2011, applying |
11 | | the changes made by Public Act 96-889 to the System's assets |
12 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
13 | | was approved on that date. |
14 | | As soon as practical after the effective date of this |
15 | | amendatory Act of the 100th General Assembly, the Board shall |
16 | | recalculate and recertify to the State Actuary, the Governor, |
17 | | and the General Assembly the amount of the State contribution |
18 | | to the System for State fiscal year 2018, taking into account |
19 | | the changes in required State contributions made by this |
20 | | amendatory Act of the 100th General Assembly. The State Actuary |
21 | | shall review the assumptions and valuations underlying the |
22 | | Board's revised certification and issue a preliminary report |
23 | | concerning the proposed recertification and identifying, if |
24 | | necessary, recommended changes in actuarial assumptions that |
25 | | the Board must consider before finalizing its certification of |
26 | | the required State contributions. The Board's final |
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1 | | certification must note any deviations from the State Actuary's |
2 | | recommended changes, the reason or reasons for not following |
3 | | the State Actuary's recommended changes, and the fiscal impact |
4 | | of not following the State Actuary's recommended changes on the |
5 | | required State contribution. |
6 | | On or before May 1, 2018, the Board shall recalculate and |
7 | | recertify
to the Governor and the General Assembly the amount |
8 | | of the required State
contribution to the System for State |
9 | | fiscal year 2019, taking into account the effect on the |
10 | | System's liabilities of the elections made under Section |
11 | | 2-110.3. |
12 | | On or before October 1, 2018, the Board shall recalculate |
13 | | and recertify to the Governor and the General Assembly the |
14 | | amount of the required State contribution to the System for |
15 | | State fiscal year 2019, taking into account the reduction |
16 | | specified under item (3) of subsection (c) of Section 2-124. |
17 | | (b) Beginning in State fiscal year 1996, on or as soon as |
18 | | possible after the
15th day of each month the Board shall |
19 | | submit vouchers for payment of State
contributions to the |
20 | | System, in a total monthly amount of one-twelfth of the
|
21 | | required annual State contribution certified under subsection |
22 | | (a).
From the effective date of this amendatory Act
of the 93rd |
23 | | General Assembly through June 30, 2004, the Board shall not
|
24 | | submit vouchers for the remainder of fiscal year 2004 in excess |
25 | | of the
fiscal year 2004 certified contribution amount |
26 | | determined
under this Section after taking into consideration |
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1 | | the transfer to the
System under subsection (d) of Section |
2 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
3 | | the State Comptroller and Treasurer by warrants drawn
on the |
4 | | funds appropriated to the System for that fiscal year. If in |
5 | | any month
the amount remaining unexpended from all other |
6 | | appropriations to the System for
the applicable fiscal year |
7 | | (including the appropriations to the System under
Section 8.12 |
8 | | of the State Finance Act and Section 1 of the State Pension |
9 | | Funds
Continuing Appropriation Act) is less than the amount |
10 | | lawfully vouchered under
this Section, the difference shall be |
11 | | paid from the General Revenue Fund under
the continuing |
12 | | appropriation authority provided in Section 1.1 of the State
|
13 | | Pension Funds Continuing Appropriation Act.
|
14 | | (c) The full amount of any annual appropriation for the |
15 | | System for
State fiscal year 1995 shall be transferred and made |
16 | | available to the System
at the beginning of that fiscal year at |
17 | | the request of the Board.
Any excess funds remaining at the end |
18 | | of any fiscal year from appropriations
shall be retained by the |
19 | | System as a general reserve to meet the System's
accrued |
20 | | liabilities.
|
21 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
22 | | 97-694, eff. 6-18-12.)
|
23 | | (40 ILCS 5/2-162) |
24 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
25 | | which has been
held unconstitutional)
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1 | | Sec. 2-162. Application and expiration of new benefit |
2 | | increases. |
3 | | (a) As used in this Section, "new benefit increase" means |
4 | | an increase in the amount of any benefit provided under this |
5 | | Article, or an expansion of the conditions of eligibility for |
6 | | any benefit under this Article, that results from an amendment |
7 | | to this Code that takes effect after the effective date of this |
8 | | amendatory Act of the 94th General Assembly. "New benefit |
9 | | increase", however, does not include any benefit increase |
10 | | resulting from the changes made to this Article by this |
11 | | amendatory Act of the 100th General Assembly. |
12 | | (b) Notwithstanding any other provision of this Code or any |
13 | | subsequent amendment to this Code, every new benefit increase |
14 | | is subject to this Section and shall be deemed to be granted |
15 | | only in conformance with and contingent upon compliance with |
16 | | the provisions of this Section.
|
17 | | (c) The Public Act enacting a new benefit increase must |
18 | | identify and provide for payment to the System of additional |
19 | | funding at least sufficient to fund the resulting annual |
20 | | increase in cost to the System as it accrues. |
21 | | Every new benefit increase is contingent upon the General |
22 | | Assembly providing the additional funding required under this |
23 | | subsection. The Commission on Government Forecasting and |
24 | | Accountability shall analyze whether adequate additional |
25 | | funding has been provided for the new benefit increase and |
26 | | shall report its analysis to the Public Pension Division of the |
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1 | | Department of Insurance Financial and Professional Regulation . |
2 | | A new benefit increase created by a Public Act that does not |
3 | | include the additional funding required under this subsection |
4 | | is null and void. If the Public Pension Division determines |
5 | | that the additional funding provided for a new benefit increase |
6 | | under this subsection is or has become inadequate, it may so |
7 | | certify to the Governor and the State Comptroller and, in the |
8 | | absence of corrective action by the General Assembly, the new |
9 | | benefit increase shall expire at the end of the fiscal year in |
10 | | which the certification is made.
|
11 | | (d) Every new benefit increase shall expire 5 years after |
12 | | its effective date or on such earlier date as may be specified |
13 | | in the language enacting the new benefit increase or provided |
14 | | under subsection (c). This does not prevent the General |
15 | | Assembly from extending or re-creating a new benefit increase |
16 | | by law. |
17 | | (e) Except as otherwise provided in the language creating |
18 | | the new benefit increase, a new benefit increase that expires |
19 | | under this Section continues to apply to persons who applied |
20 | | and qualified for the affected benefit while the new benefit |
21 | | increase was in effect and to the affected beneficiaries and |
22 | | alternate payees of such persons, but does not apply to any |
23 | | other person, including without limitation a person who |
24 | | continues in service after the expiration date and did not |
25 | | apply and qualify for the affected benefit while the new |
26 | | benefit increase was in effect.
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1 | | (Source: P.A. 94-4, eff. 6-1-05.) |
2 | | (40 ILCS 5/2-165.1 new) |
3 | | Sec. 2-165.1. Defined contribution plan. |
4 | | (a) By July 1, 2018, the System shall prepare and implement |
5 | | a voluntary defined contribution plan for up to 5% of eligible |
6 | | active Tier 1 employees. The System shall determine the 5% cap |
7 | | by the number of active Tier 1 employees on the effective date |
8 | | of this Section. The defined contribution plan developed under |
9 | | this Section shall be a plan that aggregates employer and |
10 | | employee contributions in individual participant accounts |
11 | | which, after meeting any other requirements, are used for |
12 | | payouts after retirement in accordance with this Section and |
13 | | any other applicable laws. |
14 | | As used in this Section, "defined benefit plan" means the |
15 | | retirement plan available under this Article to Tier 1 |
16 | | employees who have not made the election authorized under this |
17 | | Section. |
18 | | (1) Under the defined contribution plan, an active
Tier |
19 | | 1 employee of this System could elect to cease accruing |
20 | | benefits in the defined benefit plan under this Article and |
21 | | begin accruing benefits for future service in the defined |
22 | | contribution plan. Service credit under the defined |
23 | | contribution plan may be used for determining retirement |
24 | | eligibility under the defined benefit plan. |
25 | | (2) Participants in the defined contribution plan
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1 | | shall pay employee contributions at the same rate as Tier 1 |
2 | | employees in this System who do not participate in the |
3 | | defined contribution plan. |
4 | | (3) State contributions shall be paid into the
accounts |
5 | | of all participants in the defined contribution plan at a |
6 | | uniform rate, expressed as a percentage of compensation and |
7 | | determined for each year. This rate shall be no higher than |
8 | | the employer's normal cost for Tier 1 employees in the |
9 | | defined benefit plan for that year, as determined by the |
10 | | System and expressed as a percentage of compensation, and |
11 | | shall be no lower than 3% of compensation. The State shall |
12 | | adjust this rate annually. |
13 | | (4) The defined contribution plan shall require 5
years |
14 | | of participation in the defined contribution plan before |
15 | | vesting in State contributions. If the participant fails to |
16 | | vest in them, the State contributions, and the earnings |
17 | | thereon, shall be forfeited. |
18 | | (5) The defined contribution plan may provide for
|
19 | | participants in the plan to be eligible for defined |
20 | | disability benefits. If it does, the System shall reduce |
21 | | the employee contributions credited to the participant's |
22 | | defined contribution plan account by an amount determined |
23 | | by the System to cover the cost of offering such benefits. |
24 | | (6) The defined contribution plan shall provide a
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25 | | variety of options for investments. These options shall |
26 | | include investments handled by the Illinois State Board of |
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1 | | Investment as well as private sector investment options. |
2 | | (7) The defined contribution plan shall provide a
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3 | | variety of options for payouts to retirees and their |
4 | | survivors. |
5 | | (8) To the extent authorized under federal law and
as |
6 | | authorized by the System, the plan shall allow former |
7 | | participants in the plan to transfer or roll over employee |
8 | | and vested State contributions, and the earnings thereon, |
9 | | into other qualified retirement plans. |
10 | | (9) The System shall reduce the employee
contributions |
11 | | credited to the participant's defined contribution plan |
12 | | account by an amount determined by the System to cover the |
13 | | cost of offering these benefits and any applicable |
14 | | administrative fees. |
15 | | (b) Only persons who are active Tier 1 employees of the |
16 | | System on the effective date of this Section are eligible to |
17 | | participate in the defined contribution plan. Participation in |
18 | | the defined contribution plan shall be limited to the first 5% |
19 | | of eligible persons who elect to participate. The election to |
20 | | participate in the defined contribution plan is voluntary and |
21 | | irrevocable. |
22 | | (c) An eligible active Tier 1 employee may irrevocably |
23 | | elect to participate in the defined contribution plan by filing |
24 | | with the System a written application to participate that is |
25 | | received by the System prior to its determination that 5% of |
26 | | eligible persons have elected to participate in the defined |
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1 | | contribution plan. |
2 | | When the System first determines that 5% of eligible |
3 | | persons have elected to participate in the defined contribution |
4 | | plan, the System shall provide notice to previously eligible |
5 | | employees that the plan is no longer available and shall cease |
6 | | accepting applications to participate. |
7 | | (d) The System shall make a good faith effort to contact |
8 | | each active Tier 1 employee who is eligible to participate in |
9 | | the defined contribution plan. The System shall mail |
10 | | information describing the option to join the defined |
11 | | contribution plan to each of these employees to his or her last |
12 | | known address on file with the System. If the employee is not |
13 | | responsive to other means of contact, it is sufficient for the |
14 | | System to publish the details of the option on its website. |
15 | | Upon request for further information describing the |
16 | | option, the System shall provide employees with information |
17 | | from the System before exercising the option to join the plan, |
18 | | including information on the impact to their vested benefits or |
19 | | non-vested service. The individual consultation shall include |
20 | | projections of the participant's defined benefits at |
21 | | retirement or earlier termination of service and the value of |
22 | | the participant's account at retirement or earlier termination |
23 | | of service. The System shall not provide advice or counseling |
24 | | with respect to whether the employee should exercise the |
25 | | option. The System shall inform Tier 1 employees who are |
26 | | eligible to participate in the defined contribution plan that |
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1 | | they may also wish to obtain information and counsel relating |
2 | | to their option from any other available source, including but |
3 | | not limited to labor organizations, private counsel, and |
4 | | financial advisors. |
5 | | (e) In no event shall the System, its staff, its authorized |
6 | | representatives, or the Board be liable for any information |
7 | | given to an employee under this Section. The System may |
8 | | coordinate with the Illinois Department of Central Management |
9 | | Services and other retirement systems administering a defined |
10 | | contribution plan in accordance with this amendatory Act of the |
11 | | 100th General Assembly to provide information concerning the |
12 | | impact of the option set forth in this Section. |
13 | | (f) Notwithstanding any other provision of this Section, no |
14 | | person shall begin participating in the defined contribution |
15 | | plan until it has attained qualified plan status and received |
16 | | all necessary approvals from the U.S. Internal Revenue Service. |
17 | | (g) The System shall report on its progress under this |
18 | | Section, including the available details of the defined |
19 | | contribution plan and the System's plans for informing eligible |
20 | | Tier 1 employees about the plan, to the Governor and the |
21 | | General Assembly on or before January 15, 2018. |
22 | | (h) The Illinois State Board of Investments shall be the |
23 | | plan sponsor for the defined contribution plan established |
24 | | under this Section. |
25 | | (i) The intent of this amendatory Act of the 100th General |
26 | | Assembly is to ensure that the State's normal cost of |
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1 | | participation in the defined contribution plan is similar, and |
2 | | if possible equal, to the State's normal cost of participation |
3 | | in the defined benefit plan, unless a lower State's normal cost |
4 | | is necessary to ensure cost neutrality. |
5 | | (40 ILCS 5/2-166.1 new) |
6 | | Sec. 2-166.1. Defined contribution plan; termination. If |
7 | | the defined contribution plan is terminated or becomes |
8 | | inoperative pursuant to law, then each participant in the plan |
9 | | shall automatically be deemed to have been a contributing Tier |
10 | | 1 employee in the System's defined benefit plan during the time |
11 | | in which he or she participated in the defined contribution |
12 | | plan, and for that purpose the System shall be entitled to |
13 | | recover the amounts in the participant's defined contribution |
14 | | accounts.
|
15 | | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
|
16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
17 | | which has been
held unconstitutional)
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18 | | Sec. 14-103.10. Compensation.
|
19 | | (a) For periods of service prior to January 1, 1978, the |
20 | | full rate of salary
or wages payable to an employee for |
21 | | personal services performed if he worked
the full normal |
22 | | working period for his position, subject to the following
|
23 | | maximum amounts: (1) prior to July 1, 1951, $400 per month or |
24 | | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
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1 | | inclusive, $625 per month or $7,500
per year; (3) beginning |
2 | | July 1, 1957, no limitation.
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3 | | In the case of service of an employee in a position |
4 | | involving
part-time employment, compensation shall be |
5 | | determined according to the
employees' earnings record.
|
6 | | (b) For periods of service on and after January 1, 1978, |
7 | | all
remuneration for personal services performed defined as |
8 | | "wages" under
the Social Security Enabling Act, including that |
9 | | part of such
remuneration which is in excess of any maximum |
10 | | limitation provided in
such Act, and including any benefits |
11 | | received by an employee under a sick
pay plan in effect before |
12 | | January 1, 1981, but excluding lump sum salary
payments:
|
13 | | (1) for vacation,
|
14 | | (2) for accumulated unused sick leave,
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15 | | (3) upon discharge or dismissal,
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16 | | (4) for approved holidays.
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17 | | (c) For periods of service on or after December 16, 1978, |
18 | | compensation
also includes any benefits, other than lump sum |
19 | | salary payments made at
termination of employment, which an |
20 | | employee receives or is eligible to
receive under a sick pay |
21 | | plan authorized by law.
|
22 | | (d) For periods of service after September 30, 1985, |
23 | | compensation also
includes any remuneration for personal |
24 | | services not included as "wages"
under the Social Security |
25 | | Enabling Act, which is deducted for purposes of
participation |
26 | | in a program established pursuant to Section 125 of the
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1 | | Internal Revenue Code or its successor laws.
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2 | | (e) For members for which Section 1-160 applies for periods |
3 | | of service on and after January 1, 2011, all remuneration for |
4 | | personal services performed defined as "wages" under the Social |
5 | | Security Enabling Act, excluding remuneration that is in excess |
6 | | of the annual earnings, salary, or wages of a member or |
7 | | participant, as provided in subsection (b-5) of Section 1-160, |
8 | | but including any benefits received by an employee under a sick |
9 | | pay plan in effect before January 1, 1981.
Compensation shall |
10 | | exclude lump sum salary payments: |
11 | | (1) for vacation; |
12 | | (2) for accumulated unused sick leave; |
13 | | (3) upon discharge or dismissal; and |
14 | | (4) for approved holidays. |
15 | | (f) Notwithstanding the other provisions of this Section, |
16 | | for service on or after July 1, 2013, "compensation"
does not |
17 | | include any stipend payable to an employee for service on a |
18 | | board or commission. |
19 | | (g) Notwithstanding any other provision of this Section, |
20 | | "compensation" does not include any future increase in income |
21 | | that is offered for service by a department to a Tier 1 |
22 | | employee under this Article pursuant to the condition set forth |
23 | | in subsection (c) of Section 14-106.5 and accepted under that |
24 | | condition by a Tier 1 employee who has made the election under |
25 | | paragraph (2) of subsection (a) of Section 14-106.5. |
26 | | (h) Notwithstanding any other provision of this Section, |
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1 | | "compensation" does not include any consideration payment made |
2 | | to a Tier 1 employee. |
3 | | (Source: P.A. 98-449, eff. 8-16-13.)
|
4 | | (40 ILCS 5/14-103.41 new) |
5 | | Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An |
6 | | employee under this Article who first became a member or |
7 | | participant before January 1, 2011 under any reciprocal |
8 | | retirement system or pension fund established under this Code |
9 | | other than a retirement system or pension fund established |
10 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. |
11 | | (40 ILCS 5/14-103.42 new) |
12 | | Sec. 14-103.42. Future increase in income. "Future |
13 | | increase in income" means an increase to a Tier 1 employee's |
14 | | base pay that is offered by a department to the Tier 1 employee |
15 | | for service under this Article after June 30, 2019 that |
16 | | qualifies as "compensation", as defined in Section 14-103.10, |
17 | | or would qualify as "compensation" but for the fact that it was |
18 | | offered to and accepted by the Tier 1 employee under the |
19 | | condition set forth in subsection (c) of Section 14-106.5. The |
20 | | term "future increase in income" includes an increase to a Tier |
21 | | 1 employee's base pay that is paid to the Tier 1 employee |
22 | | pursuant to an extension, amendment, or renewal of any |
23 | | employment contract or collective bargaining agreement after |
24 | | the effective date of this Section. |
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1 | | (40 ILCS 5/14-103.43 new) |
2 | | Sec. 14-103.43. Base pay. As used in Section 14-103.42 of |
3 | | this Code, "base pay" means the greater of either (i) the Tier |
4 | | 1 employee's annualized rate of compensation as of June 30, |
5 | | 2019, or (ii) the Tier 1 employee's annualized rate of |
6 | | compensation immediately preceding the expiration, renewal, or |
7 | | amendment of an employment contract or collective bargaining |
8 | | agreement in effect on the effective date of this Section. For |
9 | | a person returning to active service as a Tier 1 employee after |
10 | | June 30, 2019, however, "base pay" means the employee's |
11 | | annualized rate of compensation as of the employee's last date |
12 | | of service prior to July 1, 2019. The System shall calculate |
13 | | the base pay of each Tier 1 employee pursuant to this Section. |
14 | | (40 ILCS 5/14-106.5 new) |
15 | | Sec. 14-106.5. Election by Tier 1 employees. |
16 | | (a) Each active Tier 1 employee shall make an irrevocable |
17 | | election either: |
18 | | (1) to agree to delay his or her eligibility for |
19 | | automatic annual increases in retirement annuity as |
20 | | provided in subsection (a-1) of Section 14-114 and to have |
21 | | the amount of the automatic annual increases in his or her |
22 | | retirement annuity and survivors or widow's annuity that |
23 | | are otherwise provided for in this Article calculated, |
24 | | instead, as provided in subsection (a-1) of Section 14-114; |
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1 | | or |
2 | | (2) to not agree to paragraph (1) of this subsection. |
3 | | The election required under this subsection (a) shall be |
4 | | made by each active Tier 1 employee no earlier than January 1, |
5 | | 2019 and no later than March 31, 2019, except that: |
6 | | (i) a person who becomes a Tier 1 employee under this |
7 | | Article on or after January 1, 2019 must make the election |
8 | | under this subsection (a) within 60 days after becoming a |
9 | | Tier 1 employee; and |
10 | | (ii) a person who returns to active service as a Tier 1 |
11 | | employee under this Article on or after January 1, 2019 and |
12 | | has not yet made an election under this Section must make |
13 | | the election under this subsection (a) within 60 days after |
14 | | returning to active service as a Tier 1 employee. |
15 | | If a Tier 1 employee fails for any reason to make a |
16 | | required election under this subsection within the time |
17 | | specified, then the employee shall be deemed to have made the |
18 | | election under paragraph (2) of this subsection. |
19 | | (a-5) If this Section is enjoined or stayed by an Illinois |
20 | | court or a court of competent jurisdiction pending the entry of |
21 | | a final and unappealable decision, and this Section is |
22 | | determined to be constitutional or otherwise valid by a final |
23 | | unappealable decision of an Illinois court or a court of |
24 | | competent jurisdiction, then the election procedure set forth |
25 | | in subsection (a) of this Section shall commence on the 180th |
26 | | calendar day after the date of the issuance of the final |
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1 | | unappealable decision and shall conclude at the end of the |
2 | | 270th calendar day after that date. |
3 | | (a-10) All elections under subsection (a) that are made or |
4 | | deemed to be made before July 1, 2019 shall take effect on July |
5 | | 1, 2019. Elections that are made or deemed to be made on or |
6 | | after July 1, 2019 shall take effect on the first day of the |
7 | | month following the month in which the election is made or |
8 | | deemed to be made. |
9 | | (b) As adequate and legal consideration provided under this |
10 | | amendatory Act of the 100th General Assembly for making an |
11 | | election under paragraph (1) of subsection (a) of this Section, |
12 | | the department shall be expressly and irrevocably prohibited |
13 | | from offering any future increases in income to a Tier 1 |
14 | | employee who has made an election under paragraph (1) of |
15 | | subsection (a) of this Section on the condition of not |
16 | | constituting compensation under Section 14-103.10. |
17 | | As adequate and legal consideration provided under this |
18 | | amendatory Act of the 100th General Assembly for making an |
19 | | election under paragraph (1) of subsection (a) of this Section, |
20 | | each Tier 1 employee who has made an election under paragraph |
21 | | (1) of subsection (a) of this Section shall receive a |
22 | | consideration payment equal to 10% of the contributions made by |
23 | | or on behalf of the employee before the effective date of that |
24 | | election. The State Comptroller shall pay the consideration |
25 | | payment to the Tier 1 employee out of funds appropriated for |
26 | | that purpose under Section 1.9 of the State Pension Funds |
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1 | | Continuing Appropriation Act. The System shall calculate the |
2 | | amount of each consideration payment and, by July 1, 2019, |
3 | | shall certify to the State Comptroller the amount of the |
4 | | consideration payment, together with the name, address, and any |
5 | | other available payment information of the Tier 1 employee as |
6 | | found in the records of the System. The System shall make |
7 | | additional calculations and certifications of consideration |
8 | | payments to the State Comptroller as it deems necessary. |
9 | | (c) A Tier 1 employee who makes the election under |
10 | | paragraph (2) of subsection (a) of this Section shall not be |
11 | | subject to paragraph (1) of subsection (a) of this Section. |
12 | | However, each future increase in income offered by a department |
13 | | under this Article to a Tier 1 employee who has made the |
14 | | election under paragraph (2) of subsection (a) of this Section |
15 | | shall be offered by the department expressly and irrevocably on |
16 | | the condition of not constituting compensation under Section |
17 | | 14-103.10 and that the Tier 1 employee's acceptance of the |
18 | | offered future increase in income shall constitute his or her |
19 | | agreement to that condition. |
20 | | (d) The System shall make a good faith effort to contact |
21 | | each Tier 1 employee subject to this Section. The System shall |
22 | | mail information describing the required election to each Tier |
23 | | 1 employee by United States Postal Service mail to his or her |
24 | | last known address on file with the System. If the Tier 1 |
25 | | employee is not responsive to other means of contact, it is |
26 | | sufficient for the System to publish the details of any |
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1 | | required elections on its website or to publish those details |
2 | | in a regularly published newsletter or other existing public |
3 | | forum. |
4 | | Tier 1 employees who are subject to this Section shall be |
5 | | provided with an election packet containing information |
6 | | regarding their options, as well as the forms necessary to make |
7 | | the required election. Upon request, the System shall offer |
8 | | Tier 1 employees an opportunity to receive information from the |
9 | | System before making the required election. The information may |
10 | | consist of video materials, group presentations, individual |
11 | | consultation with a member or authorized representative of the |
12 | | System in person or by telephone or other electronic means, or |
13 | | any combination of those methods. The System shall not provide |
14 | | advice or counseling with respect to which election a Tier 1 |
15 | | employee should make or specific to the legal or tax |
16 | | circumstances of or consequences to the Tier 1 employee. |
17 | | The System shall inform Tier 1 employees in the election |
18 | | packet required under this subsection that the Tier 1 employee |
19 | | may also wish to obtain information and counsel relating to the |
20 | | election required under this Section from any other available |
21 | | source, including, but not limited to, labor organizations and |
22 | | private counsel. |
23 | | In no event shall the System, its staff, or the Board be |
24 | | held liable for any information given to a member regarding the |
25 | | elections under this Section. The System shall coordinate with |
26 | | the Illinois Department of Central Management Services and each |
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1 | | other retirement system administering an election in |
2 | | accordance with this amendatory Act of the 100th General |
3 | | Assembly to provide information concerning the impact of the |
4 | | election set forth in this Section. |
5 | | (e) Notwithstanding any other provision of law, a |
6 | | department under this Article is required to offer each future |
7 | | increase in income expressly and irrevocably on the condition |
8 | | of not constituting "compensation" under Section 14-103.10 to |
9 | | any Tier 1 employee who has made an election under paragraph |
10 | | (2) of subsection (a) of this Section. The offer shall also |
11 | | provide that the Tier 1 employee's acceptance of the offered |
12 | | future increase in income shall constitute his or her agreement |
13 | | to the condition set forth in this subsection. |
14 | | For purposes of legislative intent, the condition set forth |
15 | | in this subsection shall be construed in a manner that ensures |
16 | | that the condition is not violated or circumvented through any |
17 | | contrivance of any kind. |
18 | | (f) A member's election under this Section is not a |
19 | | prohibited election under subdivision (j)(1) of Section 1-119 |
20 | | of this Code. |
21 | | (g) No provision of this Section shall be interpreted in a |
22 | | way that would cause the System to cease to be a qualified plan |
23 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
24 | | provisions of this Section shall be subject to and implemented |
25 | | in a manner that complies with Section 21 of Article V of the |
26 | | Illinois Constitution. |
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1 | | (h) If an election created by this amendatory Act in any |
2 | | other Article of this Code or any change deriving from that |
3 | | election is determined to be unconstitutional or otherwise |
4 | | invalid by a final unappealable decision of an Illinois court |
5 | | or a court of competent jurisdiction, the invalidity of that |
6 | | provision shall not in any way affect the validity of this |
7 | | Section or the changes deriving from the election required |
8 | | under this Section.
|
9 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
|
10 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
11 | | which has been held unconstitutional)
|
12 | | Sec. 14-114. Automatic increase in retirement annuity.
|
13 | | (a) Subject to the provisions of subsections (a-1), any Any |
14 | | person receiving a retirement annuity under this Article who
|
15 | | retires having attained age 60, or who retires before age 60 |
16 | | having at
least 35 years of creditable service, or who retires |
17 | | on or after January
1, 2001 at an age which, when added to the |
18 | | number of years of his or her
creditable service, equals at |
19 | | least 85, shall, on January 1 next
following the first full |
20 | | year of retirement, have the amount of the then fixed
and |
21 | | payable monthly retirement annuity increased 3%. Any person |
22 | | receiving a
retirement annuity under this Article who retires |
23 | | before attainment of age 60
and with less than (i) 35 years of |
24 | | creditable service if retirement
is before January 1, 2001, or |
25 | | (ii) the number of years of creditable service
which, when |
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1 | | added to the member's age, would equal 85, if retirement is on
|
2 | | or after January 1, 2001, shall have the amount of the fixed |
3 | | and payable
retirement annuity increased by 3% on the January 1 |
4 | | occurring on or next
following (1) attainment of age 60, or (2) |
5 | | the first anniversary of retirement,
whichever occurs later. |
6 | | However, for persons who receive the alternative
retirement |
7 | | annuity under Section 14-110, references in this subsection (a) |
8 | | to
attainment of age 60 shall be deemed to refer to attainment |
9 | | of age 55. For a
person receiving early retirement incentives |
10 | | under Section 14-108.3 whose
retirement annuity began after |
11 | | January 1, 1992 pursuant to an extension granted
under |
12 | | subsection (e) of that Section, the first anniversary of |
13 | | retirement shall
be deemed to be January 1, 1993.
For a person |
14 | | who retires on or after June 28, 2001 and on or before October |
15 | | 1, 2001,
and whose retirement annuity is calculated, in whole |
16 | | or in part, under Section
14-110 or subsection (g) or (h) of |
17 | | Section 14-108, the first anniversary of
retirement shall be |
18 | | deemed to be January 1, 2002.
|
19 | | On each January 1 following the date of the initial |
20 | | increase under this
subsection, the employee's monthly |
21 | | retirement annuity shall be increased
by an additional 3%.
|
22 | | Beginning January 1, 1990 , and except as provided in |
23 | | subsection (a-1) , all automatic annual increases payable under
|
24 | | this Section shall be calculated as a percentage of the total |
25 | | annuity
payable at the time of the increase, including previous |
26 | | increases granted
under this Article.
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1 | | (a-1) Notwithstanding any other provision of this Article, |
2 | | for a Tier 1 employee who made the election under paragraph (1) |
3 | | of subsection (a) of Section 14-106.5: |
4 | | (1) The initial increase in retirement annuity under |
5 | | this Section shall occur on the January 1 occurring either |
6 | | on or after the attainment of age 67 or the fifth |
7 | | anniversary of the annuity start date, whichever is |
8 | | earlier. |
9 | | (2) The amount of each automatic annual increase in |
10 | | retirement annuity or survivors or widow's annuity |
11 | | occurring on or after the effective date of that election |
12 | | shall be calculated as a percentage of the originally |
13 | | granted retirement annuity or survivors or widow's |
14 | | annuity, equal to 3% or one-half the annual unadjusted |
15 | | percentage increase (but not less than zero) in the |
16 | | consumer price index-u for the 12 months ending with the |
17 | | September preceding each November 1, whichever is less. If |
18 | | the annual unadjusted percentage change in the consumer |
19 | | price index-u for the 12 months ending with the September |
20 | | preceding each November 1 is zero or there is a decrease, |
21 | | then the annuity shall not be increased. |
22 | | For the purposes of this Section, "consumer price index-u" |
23 | | means
the index published by the Bureau of Labor Statistics of |
24 | | the United States
Department of Labor that measures the average |
25 | | change in prices of goods and
services purchased by all urban |
26 | | consumers, United States city average, all
items, 1982-84 = |
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1 | | 100. The new amount resulting from each annual adjustment
shall |
2 | | be determined by the Public Pension Division of the Department |
3 | | of Insurance and made available to the board of the retirement |
4 | | system by November 1 of each year. |
5 | | (b) The provisions of subsection (a) of this Section shall |
6 | | be
applicable to an employee only if the employee makes the |
7 | | additional
contributions required after December 31, 1969 for |
8 | | the purpose of the
automatic increases for not less than the |
9 | | equivalent of one full year.
If an employee becomes an |
10 | | annuitant before his additional contributions
equal one full |
11 | | year's contributions based on his salary at the date of
|
12 | | retirement, the employee may pay the necessary balance of the
|
13 | | contributions to the system, without interest, and be eligible |
14 | | for the
increasing annuity authorized by this Section.
|
15 | | (c) The provisions of subsection (a) of this Section shall |
16 | | not be
applicable to any annuitant who is on retirement on |
17 | | December 31, 1969, and
thereafter returns to State service, |
18 | | unless the member has established at
least one year of |
19 | | additional creditable service following reentry into service.
|
20 | | (d) In addition to other increases which may be provided by |
21 | | this Section,
on January 1, 1981 any annuitant who was |
22 | | receiving a retirement annuity
on or before January 1, 1971 |
23 | | shall have his retirement annuity then being
paid increased $1 |
24 | | per month for each year of creditable service. On January
1, |
25 | | 1982, any annuitant who began receiving a retirement annuity on |
26 | | or
before January 1, 1977, shall have his retirement annuity |
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1 | | then being paid
increased $1 per month for each year of |
2 | | creditable service.
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3 | | On January 1, 1987, any annuitant who began receiving a |
4 | | retirement
annuity on or before January 1, 1977, shall have the |
5 | | monthly retirement annuity
increased by an amount equal to 8¢ |
6 | | per year of creditable service times the
number of years that |
7 | | have elapsed since the annuity began.
|
8 | | (e) Every person who receives the alternative retirement |
9 | | annuity under
Section 14-110 and who is eligible to receive the |
10 | | 3% increase under subsection
(a) on January 1, 1986, shall also |
11 | | receive on that date a one-time increase
in retirement annuity |
12 | | equal to the difference between (1) his actual
retirement |
13 | | annuity on that date, including any increases received under
|
14 | | subsection (a), and (2) the amount of retirement annuity he |
15 | | would have
received on that date if the amendments to |
16 | | subsection (a) made by Public
Act 84-162 had been in effect |
17 | | since the date of his retirement.
|
18 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
|
19 | | 92-651, eff. 7-11-02.)
|
20 | | (40 ILCS 5/14-131)
|
21 | | Sec. 14-131. Contributions by State.
|
22 | | (a) The State shall make contributions to the System by |
23 | | appropriations of
amounts which, together with other employer |
24 | | contributions from trust, federal,
and other funds, employee |
25 | | contributions, investment income, and other income,
will be |
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1 | | sufficient to meet the cost of maintaining and administering |
2 | | the System
on a 90% funded basis in accordance with actuarial |
3 | | recommendations.
|
4 | | For the purposes of this Section and Section 14-135.08, |
5 | | references to State
contributions refer only to employer |
6 | | contributions and do not include employee
contributions that |
7 | | are picked up or otherwise paid by the State or a
department on |
8 | | behalf of the employee.
|
9 | | (b) The Board shall determine the total amount of State |
10 | | contributions
required for each fiscal year on the basis of the |
11 | | actuarial tables and other
assumptions adopted by the Board, |
12 | | using the formula in subsection (e).
|
13 | | The Board shall also determine a State contribution rate |
14 | | for each fiscal
year, expressed as a percentage of payroll, |
15 | | based on the total required State
contribution for that fiscal |
16 | | year (less the amount received by the System from
|
17 | | appropriations under Section 8.12 of the State Finance Act and |
18 | | Section 1 of the
State Pension Funds Continuing Appropriation |
19 | | Act, if any, for the fiscal year
ending on the June 30 |
20 | | immediately preceding the applicable November 15
certification |
21 | | deadline), the estimated payroll (including all forms of
|
22 | | compensation) for personal services rendered by eligible |
23 | | employees, and the
recommendations of the actuary.
|
24 | | For the purposes of this Section and Section 14.1 of the |
25 | | State Finance Act,
the term "eligible employees" includes |
26 | | employees who participate in the System,
persons who may elect |
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1 | | to participate in the System but have not so elected,
persons |
2 | | who are serving a qualifying period that is required for |
3 | | participation,
and annuitants employed by a department as |
4 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
5 | | (c) Contributions shall be made by the several departments |
6 | | for each pay
period by warrants drawn by the State Comptroller |
7 | | against their respective
funds or appropriations based upon |
8 | | vouchers stating the amount to be so
contributed. These amounts |
9 | | shall be based on the full rate certified by the
Board under |
10 | | Section 14-135.08 for that fiscal year.
From the effective date |
11 | | of this amendatory Act of the 93rd General
Assembly through the |
12 | | payment of the final payroll from fiscal year 2004
|
13 | | appropriations, the several departments shall not make |
14 | | contributions
for the remainder of fiscal year 2004 but shall |
15 | | instead make payments
as required under subsection (a-1) of |
16 | | Section 14.1 of the State Finance Act.
The several departments |
17 | | shall resume those contributions at the commencement of
fiscal |
18 | | year 2005.
|
19 | | (c-1) Notwithstanding subsection (c) of this Section, for |
20 | | fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only, |
21 | | contributions by the several departments are not required to be |
22 | | made for General Revenue Funds payrolls processed by the |
23 | | Comptroller. Payrolls paid by the several departments from all |
24 | | other State funds must continue to be processed pursuant to |
25 | | subsection (c) of this Section. |
26 | | (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015, |
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1 | | 2016, and 2017 only, on or as soon as possible after the 15th |
2 | | day of each month, the Board shall submit vouchers for payment |
3 | | of State contributions to the System, in a total monthly amount |
4 | | of one-twelfth of the fiscal year General Revenue Fund |
5 | | contribution as certified by the System pursuant to Section |
6 | | 14-135.08 of the Illinois Pension Code. |
7 | | (d) If an employee is paid from trust funds or federal |
8 | | funds, the
department or other employer shall pay employer |
9 | | contributions from those funds
to the System at the certified |
10 | | rate, unless the terms of the trust or the
federal-State |
11 | | agreement preclude the use of the funds for that purpose, in
|
12 | | which case the required employer contributions shall be paid by |
13 | | the State.
From the effective date of this amendatory
Act of |
14 | | the 93rd General Assembly through the payment of the final
|
15 | | payroll from fiscal year 2004 appropriations, the department or |
16 | | other
employer shall not pay contributions for the remainder of |
17 | | fiscal year
2004 but shall instead make payments as required |
18 | | under subsection (a-1) of
Section 14.1 of the State Finance |
19 | | Act. The department or other employer shall
resume payment of
|
20 | | contributions at the commencement of fiscal year 2005.
|
21 | | (e) For State fiscal years 2018 through 2045 (except as |
22 | | otherwise provided for fiscal year 2020), the minimum |
23 | | contribution to the System to be made by the State for each |
24 | | fiscal year shall be an amount determined by the System to be |
25 | | sufficient to bring the total assets of the System up to 90% of |
26 | | the total actuarial liabilities of the System by the end of |
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1 | | State fiscal year 2045. In making these determinations, the |
2 | | required State contribution shall be calculated each year as a |
3 | | level percentage of total payroll, including payroll that is |
4 | | not deemed pensionable, over the years remaining to and |
5 | | including fiscal year 2045 and shall be determined under the |
6 | | projected unit credit actuarial cost method. |
7 | | For State fiscal year 2020: |
8 | | (1) The initial calculation and certification shall be |
9 | | based on the amount determined above. |
10 | | (2) For purposes of the recertification due on or |
11 | | before May 1, 2019, the recalculation of the required State |
12 | | contribution for fiscal year 2020 shall take into account |
13 | | the effect on the System's liabilities of the elections |
14 | | made under Section 14-106.5. |
15 | | (3) For purposes of the recertification due on or |
16 | | before October 1, 2019, the total required State |
17 | | contribution for fiscal year 2020 shall be reduced by the |
18 | | amount of the consideration payments made to Tier 1 |
19 | | employees who made the election under paragraph (1) of |
20 | | subsection (a) of Section 14-106.5. |
21 | | Beginning in State fiscal year 2018, any increase or |
22 | | decrease in State contribution over the prior fiscal year due |
23 | | exclusively to changes in actuarial or investment assumptions |
24 | | adopted by the Board shall be included in the State |
25 | | contribution to the System, as a percentage of the applicable |
26 | | employee payroll, and shall be increased in equal annual |
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1 | | increments so that by the State fiscal year occurring 5 years |
2 | | after the adoption of the actuarial or investment assumptions, |
3 | | the State is contributing at the rate otherwise required under |
4 | | this Section. |
5 | | For State fiscal years 2012 through 2017 2045 , the minimum |
6 | | contribution
to the System to be made by the State for each |
7 | | fiscal year shall be an amount
determined by the System to be |
8 | | sufficient to bring the total assets of the
System up to 90% of |
9 | | the total actuarial liabilities of the System by the end
of |
10 | | State fiscal year 2045. In making these determinations, the |
11 | | required State
contribution shall be calculated each year as a |
12 | | level percentage of payroll
over the years remaining to and |
13 | | including fiscal year 2045 and shall be
determined under the |
14 | | projected unit credit actuarial cost method.
|
15 | | For State fiscal years 1996 through 2005, the State |
16 | | contribution to
the System, as a percentage of the applicable |
17 | | employee payroll, shall be
increased in equal annual increments |
18 | | so that by State fiscal year 2011, the
State is contributing at |
19 | | the rate required under this Section; except that
(i) for State |
20 | | fiscal year 1998, for all purposes of this Code and any other
|
21 | | law of this State, the certified percentage of the applicable |
22 | | employee payroll
shall be 5.052% for employees earning eligible |
23 | | creditable service under Section
14-110 and 6.500% for all |
24 | | other employees, notwithstanding any contrary
certification |
25 | | made under Section 14-135.08 before the effective date of this
|
26 | | amendatory Act of 1997, and (ii)
in the following specified |
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1 | | State fiscal years, the State contribution to
the System shall |
2 | | not be less than the following indicated percentages of the
|
3 | | applicable employee payroll, even if the indicated percentage |
4 | | will produce a
State contribution in excess of the amount |
5 | | otherwise required under this
subsection and subsection (a):
|
6 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
7 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
8 | | Notwithstanding any other provision of this Article, the |
9 | | total required State
contribution to the System for State |
10 | | fiscal year 2006 is $203,783,900.
|
11 | | Notwithstanding any other provision of this Article, the |
12 | | total required State
contribution to the System for State |
13 | | fiscal year 2007 is $344,164,400.
|
14 | | For each of State fiscal years 2008 through 2009, the State |
15 | | contribution to
the System, as a percentage of the applicable |
16 | | employee payroll, shall be
increased in equal annual increments |
17 | | from the required State contribution for State fiscal year |
18 | | 2007, so that by State fiscal year 2011, the
State is |
19 | | contributing at the rate otherwise required under this Section.
|
20 | | Notwithstanding any other provision of this Article, the |
21 | | total required State General Revenue Fund contribution for |
22 | | State fiscal year 2010 is $723,703,100 and shall be made from |
23 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
24 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
25 | | pro rata share of bond sale expenses determined by the System's |
26 | | share of total bond proceeds, (ii) any amounts received from |
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1 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
2 | | reduction in bond proceeds due to the issuance of discounted |
3 | | bonds, if applicable. |
4 | | Notwithstanding any other provision of this Article, the
|
5 | | total required State General Revenue Fund contribution for
|
6 | | State fiscal year 2011 is the amount recertified by the System |
7 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
8 | | shall be made from
the proceeds of bonds sold in fiscal year |
9 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
10 | | Act, less (i) the
pro rata share of bond sale expenses |
11 | | determined by the System's
share of total bond proceeds, (ii) |
12 | | any amounts received from
the General Revenue Fund in fiscal |
13 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
14 | | issuance of discounted
bonds, if applicable. |
15 | | Beginning in State fiscal year 2046, the minimum State |
16 | | contribution for
each fiscal year shall be the amount needed to |
17 | | maintain the total assets of
the System at 90% of the total |
18 | | actuarial liabilities of the System.
|
19 | | Amounts received by the System pursuant to Section 25 of |
20 | | the Budget Stabilization Act or Section 8.12 of the State |
21 | | Finance Act in any fiscal year do not reduce and do not |
22 | | constitute payment of any portion of the minimum State |
23 | | contribution required under this Article in that fiscal year. |
24 | | Such amounts shall not reduce, and shall not be included in the |
25 | | calculation of, the required State contributions under this |
26 | | Article in any future year until the System has reached a |
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1 | | funding ratio of at least 90%. A reference in this Article to |
2 | | the "required State contribution" or any substantially similar |
3 | | term does not include or apply to any amounts payable to the |
4 | | System under Section 25 of the Budget Stabilization Act.
|
5 | | Notwithstanding any other provision of this Section, the |
6 | | required State
contribution for State fiscal year 2005 and for |
7 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
8 | | under this Section and
certified under Section 14-135.08, shall |
9 | | not exceed an amount equal to (i) the
amount of the required |
10 | | State contribution that would have been calculated under
this |
11 | | Section for that fiscal year if the System had not received any |
12 | | payments
under subsection (d) of Section 7.2 of the General |
13 | | Obligation Bond Act, minus
(ii) the portion of the State's |
14 | | total debt service payments for that fiscal
year on the bonds |
15 | | issued in fiscal year 2003 for the purposes of that Section |
16 | | 7.2, as determined
and certified by the Comptroller, that is |
17 | | the same as the System's portion of
the total moneys |
18 | | distributed under subsection (d) of Section 7.2 of the General
|
19 | | Obligation Bond Act. In determining this maximum for State |
20 | | fiscal years 2008 through 2010, however, the amount referred to |
21 | | in item (i) shall be increased, as a percentage of the |
22 | | applicable employee payroll, in equal increments calculated |
23 | | from the sum of the required State contribution for State |
24 | | fiscal year 2007 plus the applicable portion of the State's |
25 | | total debt service payments for fiscal year 2007 on the bonds |
26 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
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1 | | the General
Obligation Bond Act, so that, by State fiscal year |
2 | | 2011, the
State is contributing at the rate otherwise required |
3 | | under this Section.
|
4 | | (f) After the submission of all payments for eligible |
5 | | employees
from personal services line items in fiscal year 2004 |
6 | | have been made,
the Comptroller shall provide to the System a |
7 | | certification of the sum
of all fiscal year 2004 expenditures |
8 | | for personal services that would
have been covered by payments |
9 | | to the System under this Section if the
provisions of this |
10 | | amendatory Act of the 93rd General Assembly had not been
|
11 | | enacted. Upon
receipt of the certification, the System shall |
12 | | determine the amount
due to the System based on the full rate |
13 | | certified by the Board under
Section 14-135.08 for fiscal year |
14 | | 2004 in order to meet the State's
obligation under this |
15 | | Section. The System shall compare this amount
due to the amount |
16 | | received by the System in fiscal year 2004 through
payments |
17 | | under this Section and under Section 6z-61 of the State Finance |
18 | | Act.
If the amount
due is more than the amount received, the |
19 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
20 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
21 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
22 | | Continuing Appropriation Act. If the amount due is less than |
23 | | the
amount received, the
difference shall be termed the "Fiscal |
24 | | Year 2004 Overpayment" for purposes of
this Section, and the |
25 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
26 | | the Pension Contribution Fund as soon as practicable
after the |
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1 | | certification.
|
2 | | (g) For purposes of determining the required State |
3 | | contribution to the System, the value of the System's assets |
4 | | shall be equal to the actuarial value of the System's assets, |
5 | | which shall be calculated as follows: |
6 | | As of June 30, 2008, the actuarial value of the System's |
7 | | assets shall be equal to the market value of the assets as of |
8 | | that date. In determining the actuarial value of the System's |
9 | | assets for fiscal years after June 30, 2008, any actuarial |
10 | | gains or losses from investment return incurred in a fiscal |
11 | | year shall be recognized in equal annual amounts over the |
12 | | 5-year period following that fiscal year. |
13 | | (h) For purposes of determining the required State |
14 | | contribution to the System for a particular year, the actuarial |
15 | | value of assets shall be assumed to earn a rate of return equal |
16 | | to the System's actuarially assumed rate of return. |
17 | | (i) After the submission of all payments for eligible |
18 | | employees from personal services line items paid from the |
19 | | General Revenue Fund in fiscal year 2010 have been made, the |
20 | | Comptroller shall provide to the System a certification of the |
21 | | sum of all fiscal year 2010 expenditures for personal services |
22 | | that would have been covered by payments to the System under |
23 | | this Section if the provisions of this amendatory Act of the |
24 | | 96th General Assembly had not been enacted. Upon receipt of the |
25 | | certification, the System shall determine the amount due to the |
26 | | System based on the full rate certified by the Board under |
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1 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
2 | | State's obligation under this Section. The System shall compare |
3 | | this amount due to the amount received by the System in fiscal |
4 | | year 2010 through payments under this Section. If the amount |
5 | | due is more than the amount received, the difference shall be |
6 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
7 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
8 | | under Section 1.2 of the State Pension Funds Continuing |
9 | | Appropriation Act. If the amount due is less than the amount |
10 | | received, the difference shall be termed the "Fiscal Year 2010 |
11 | | Overpayment" for purposes of this Section, and the Fiscal Year |
12 | | 2010 Overpayment shall be repaid by the System to the General |
13 | | Revenue Fund as soon as practicable after the certification. |
14 | | (j) After the submission of all payments for eligible |
15 | | employees from personal services line items paid from the |
16 | | General Revenue Fund in fiscal year 2011 have been made, the |
17 | | Comptroller shall provide to the System a certification of the |
18 | | sum of all fiscal year 2011 expenditures for personal services |
19 | | that would have been covered by payments to the System under |
20 | | this Section if the provisions of this amendatory Act of the |
21 | | 96th General Assembly had not been enacted. Upon receipt of the |
22 | | certification, the System shall determine the amount due to the |
23 | | System based on the full rate certified by the Board under |
24 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
25 | | State's obligation under this Section. The System shall compare |
26 | | this amount due to the amount received by the System in fiscal |
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1 | | year 2011 through payments under this Section. If the amount |
2 | | due is more than the amount received, the difference shall be |
3 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
4 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
5 | | under Section 1.2 of the State Pension Funds Continuing |
6 | | Appropriation Act. If the amount due is less than the amount |
7 | | received, the difference shall be termed the "Fiscal Year 2011 |
8 | | Overpayment" for purposes of this Section, and the Fiscal Year |
9 | | 2011 Overpayment shall be repaid by the System to the General |
10 | | Revenue Fund as soon as practicable after the certification. |
11 | | (k) For fiscal years 2012 through 2017 only, after the |
12 | | submission of all payments for eligible employees from personal |
13 | | services line items paid from the General Revenue Fund in the |
14 | | fiscal year have been made, the Comptroller shall provide to |
15 | | the System a certification of the sum of all expenditures in |
16 | | the fiscal year for personal services. Upon receipt of the |
17 | | certification, the System shall determine the amount due to the |
18 | | System based on the full rate certified by the Board under |
19 | | Section 14-135.08 for the fiscal year in order to meet the |
20 | | State's obligation under this Section. The System shall compare |
21 | | this amount due to the amount received by the System for the |
22 | | fiscal year. If the amount due is more than the amount |
23 | | received, the difference shall be termed the "Prior Fiscal Year |
24 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
25 | | Year Shortfall shall be satisfied under Section 1.2 of the |
26 | | State Pension Funds Continuing Appropriation Act. If the amount |
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1 | | due is less than the amount received, the difference shall be |
2 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
3 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
4 | | by the System to the General Revenue Fund as soon as |
5 | | practicable after the certification. |
6 | | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, |
7 | | eff. 7-9-15; 99-523, eff. 6-30-16.)
|
8 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
9 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
10 | | which has been held unconstitutional)
|
11 | | Sec. 14-133. Contributions on behalf of members.
|
12 | | (a) Except as provided in subsection (a-5), each Each |
13 | | participating employee shall make contributions to the System,
|
14 | | based on the employee's compensation, as follows:
|
15 | | (1) Covered employees, except as indicated below, 3.5% |
16 | | for
retirement annuity, and 0.5% for a widow or survivors
|
17 | | annuity;
|
18 | | (2) Noncovered employees, except as indicated below, |
19 | | 7% for retirement
annuity and 1% for a widow or survivors |
20 | | annuity;
|
21 | | (3) Noncovered employees serving in a position in which |
22 | | "eligible
creditable service" as defined in Section 14-110 |
23 | | may be earned, 1% for a widow
or survivors annuity
plus the |
24 | | following amount for retirement annuity: 8.5% through |
25 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
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1 | | in 2004 and thereafter;
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2 | | (4) Covered employees serving in a position in which |
3 | | "eligible creditable
service" as defined in Section 14-110 |
4 | | may be earned, 0.5% for a widow or survivors annuity
plus |
5 | | the following amount for retirement annuity: 5% through |
6 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
7 | | and thereafter;
|
8 | | (5) Each security employee of the Department of |
9 | | Corrections
or of the Department of Human Services who is a |
10 | | covered employee, 0.5% for a widow or survivors annuity
|
11 | | plus the following amount for retirement annuity: 5% |
12 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
13 | | in 2004 and thereafter;
|
14 | | (6) Each security employee of the Department of |
15 | | Corrections
or of the Department of Human Services who is |
16 | | not a covered employee, 1% for a widow or survivors annuity
|
17 | | plus the following amount for retirement annuity: 8.5% |
18 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
19 | | 11.5% in 2004 and thereafter.
|
20 | | (a-5) Beginning July 1, 2019 or the effective date of the |
21 | | Tier 1 employee's election under paragraph (1) of subsection |
22 | | (a) of Section 14-106.5, whichever is later, in lieu of the |
23 | | contributions otherwise required under subsection (a), each |
24 | | Tier 1 employee who made the election under paragraph (1) of |
25 | | subsection (a) of Section 14-106.5 who is a participating |
26 | | employee shall make contributions to the System, based on his |
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1 | | or her compensation, as follows: |
2 | | (1) Covered employees, except as indicated below,
|
3 | | 3.15% for retirement annuity, and 0.45% for a widow or |
4 | | survivors annuity; |
5 | | (2) Noncovered employees, except as indicated below,
|
6 | | 6.3% for retirement annuity and 0.9% for a widow or |
7 | | survivors annuity; |
8 | | (3) Noncovered employees serving in a position in
which |
9 | | "eligible creditable service" as defined in Section 14-110 |
10 | | may be earned, 10.35% for retirement annuity and 0.9% for a |
11 | | widow or survivors annuity; |
12 | | (4) Covered employees serving in a position in which
|
13 | | "eligible creditable service" as defined in Section 14-110 |
14 | | may be earned, 7.2% for retirement annuity and 0.45% for a |
15 | | widow or survivors annuity; |
16 | | (5) Each security employee of the Department of
|
17 | | Corrections or of the Department of Human Services who is a |
18 | | covered employee, 10.8% for retirement annuity and 0.45% |
19 | | for a widow or survivors annuity; |
20 | | (6) Each security employee of the Department of
|
21 | | Corrections or of the Department of Human Services who is |
22 | | not a covered employee, 10.35% for retirement annuity and |
23 | | 0.9% for a widow or survivors annuity. |
24 | | (b) Contributions shall be in the form of a deduction from
|
25 | | compensation and shall be made notwithstanding that the |
26 | | compensation
paid in cash to the employee shall be reduced |
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1 | | thereby below the minimum
prescribed by law or regulation. Each |
2 | | member is deemed to consent and
agree to the deductions from |
3 | | compensation provided for in this Article,
and shall receipt in |
4 | | full for salary or compensation.
|
5 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
6 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
|
7 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
8 | | which has been held unconstitutional)
|
9 | | Sec. 14-135.08. To certify required State contributions. |
10 | | (a)
To certify to the Governor and to each department, on |
11 | | or before
November 15 of each year until November 15, 2011, the |
12 | | required rate for State contributions to the
System for the |
13 | | next State fiscal year, as determined under subsection (b) of
|
14 | | Section 14-131. The certification to the Governor under this |
15 | | subsection (a) shall include a copy of the
actuarial |
16 | | recommendations upon which the rate is based and shall |
17 | | specifically identify the System's projected State normal cost |
18 | | for that fiscal year.
|
19 | | (a-5) On or before November 1 of each year, beginning |
20 | | November 1, 2012, the Board shall submit to the State Actuary, |
21 | | the Governor, and the General Assembly a proposed certification |
22 | | of the amount of the required State contribution to the System |
23 | | for the next fiscal year, along with all of the actuarial |
24 | | assumptions, calculations, and data upon which that proposed |
25 | | certification is based. On or before January 1 of each year |
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1 | | beginning January 1, 2013, the State Actuary shall issue a |
2 | | preliminary report concerning the proposed certification and |
3 | | identifying, if necessary, recommended changes in actuarial |
4 | | assumptions that the Board must consider before finalizing its |
5 | | certification of the required State contributions. On or before |
6 | | January 15, 2013 and each January 15 thereafter, the Board |
7 | | shall certify to the Governor and the General Assembly the |
8 | | amount of the required State contribution for the next fiscal |
9 | | year. The Board's certification must note any deviations from |
10 | | the State Actuary's recommended changes, the reason or reasons |
11 | | for not following the State Actuary's recommended changes, and |
12 | | the fiscal impact of not following the State Actuary's |
13 | | recommended changes on the required State contribution. |
14 | | (a-10) For purposes of subsection (c-5) of Section 20 of |
15 | | the
Budget Stabilization Act, on or before November 1 of each |
16 | | year
beginning November 1, 2019, the Board shall determine the
|
17 | | amount of the State contribution to the System that would have
|
18 | | been required for the next fiscal year if Section 1-161, |
19 | | Section 14-155.2, and the changes made to Section 1-160 by this |
20 | | amendatory Act of the 100th General Assembly had not taken |
21 | | effect, using the
best and most recent available data but based |
22 | | on the law in
effect on May 31, 2019. The Board shall submit to |
23 | | the State
Actuary, the Governor, and the General Assembly a |
24 | | proposed
certification, along with the relevant law, actuarial
|
25 | | assumptions, calculations, and data upon which that
|
26 | | certification is based. On or before January 1, 2020 and every |
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1 | | January 1 thereafter, the State Actuary shall issue a
|
2 | | preliminary report concerning the proposed certification and
|
3 | | identifying, if necessary, recommended changes in actuarial
|
4 | | assumptions that the Board must consider before finalizing its
|
5 | | certification. On or before January 15, 2020 and every January
|
6 | | 1 thereafter, the Board shall certify to the Governor and the
|
7 | | General Assembly the amount of the State contribution to the
|
8 | | System that would have been required for the next fiscal year
|
9 | | if Section 1-161, Section 14-155.2, and the changes made to |
10 | | Section 1-160 by this amendatory Act of the 100th General |
11 | | Assembly had not taken effect, using the best and most recent |
12 | | available data but
based on the law in effect on May 31, 2019. |
13 | | The Board's
certification must note any deviations from the |
14 | | State Actuary's
recommended changes, the reason or reasons for |
15 | | not following
the State Actuary's recommended changes, and the |
16 | | impact of not
following the State Actuary's recommended |
17 | | changes. |
18 | | (b) The certifications under subsections (a) and (a-5) |
19 | | shall include an additional amount necessary to pay all |
20 | | principal of and interest on those general obligation bonds due |
21 | | the next fiscal year authorized by Section 7.2(a) of the |
22 | | General Obligation Bond Act and issued to provide the proceeds |
23 | | deposited by the State with the System in July 2003, |
24 | | representing deposits other than amounts reserved under |
25 | | Section 7.2(c) of the General Obligation Bond Act. For State |
26 | | fiscal year 2005, the Board shall make a supplemental |
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1 | | certification of the additional amount necessary to pay all |
2 | | principal of and interest on those general obligation bonds due |
3 | | in State fiscal years 2004 and 2005 authorized by Section |
4 | | 7.2(a) of the General Obligation Bond Act and issued to provide |
5 | | the proceeds deposited by the State with the System in July |
6 | | 2003, representing deposits other than amounts reserved under |
7 | | Section 7.2(c) of the General Obligation Bond Act, as soon as |
8 | | practical after the effective date of this amendatory Act of |
9 | | the 93rd General Assembly.
|
10 | | On or before May 1, 2004, the Board shall recalculate and |
11 | | recertify
to the Governor and to each department the amount of |
12 | | the required State
contribution to the System and the required |
13 | | rates for State contributions
to the System for State fiscal |
14 | | year 2005, taking into account the amounts
appropriated to and |
15 | | received by the System under subsection (d) of Section
7.2 of |
16 | | the General Obligation Bond Act.
|
17 | | On or before July 1, 2005, the Board shall recalculate and |
18 | | recertify
to the Governor and to each department the amount of |
19 | | the required State
contribution to the System and the required |
20 | | rates for State contributions
to the System for State fiscal |
21 | | year 2006, taking into account the changes in required State |
22 | | contributions made by this amendatory Act of the 94th General |
23 | | Assembly.
|
24 | | On or before April 1, 2011, the Board shall recalculate and |
25 | | recertify to the Governor and to each department the amount of |
26 | | the required State contribution to the System for State fiscal |
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1 | | year 2011, applying the changes made by Public Act 96-889 to |
2 | | the System's assets and liabilities as of June 30, 2009 as |
3 | | though Public Act 96-889 was approved on that date. |
4 | | As soon as practical after the effective date of this |
5 | | amendatory Act of the 100th General Assembly, the Board shall |
6 | | recalculate and recertify to the State Actuary, the Governor, |
7 | | and the General Assembly the amount of the State contribution |
8 | | to the System for State fiscal year 2018, taking into account |
9 | | the changes in required State contributions made by this |
10 | | amendatory Act of the 100th General Assembly. The State Actuary |
11 | | shall review the assumptions and valuations underlying the |
12 | | Board's revised certification and issue a preliminary report |
13 | | concerning the proposed recertification and identifying, if |
14 | | necessary, recommended changes in actuarial assumptions that |
15 | | the Board must consider before finalizing its certification of |
16 | | the required State contributions. The Board's final |
17 | | certification must note any deviations from the State Actuary's |
18 | | recommended changes, the reason or reasons for not following |
19 | | the State Actuary's recommended changes, and the fiscal impact |
20 | | of not following the State Actuary's recommended changes on the |
21 | | required State contribution. |
22 | | On or before May 1, 2019, the Board shall recalculate and |
23 | | recertify
to the Governor and the General Assembly the amount |
24 | | of the required State
contribution to the System for State |
25 | | fiscal year 2020, taking into account the effect on the |
26 | | System's liabilities of the elections made under Section |
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1 | | 14-106.5. |
2 | | On or before October 1, 2019, the Board shall recalculate |
3 | | and recertify to the Governor and the General Assembly the |
4 | | amount of the required State contribution to the System for |
5 | | State fiscal year 2020, taking into account the reduction |
6 | | specified under item (3) of subsection (e) of Section 14-131. |
7 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
8 | | 97-694, eff. 6-18-12.)
|
9 | | (40 ILCS 5/14-147.5 new) |
10 | | Sec. 14-147.5. Accelerated pension benefit payment. |
11 | | (a) As used in this Section: |
12 | | "Eligible person" means a person who: |
13 | | (1) has terminated service; |
14 | | (2) has accrued sufficient service credit to be |
15 | | eligible to receive a retirement annuity under this |
16 | | Article; |
17 | | (3) has not received any retirement annuity under this |
18 | | Article; and |
19 | | (4) does not have a QILDRO in effect against him or her |
20 | | under this Article. |
21 | | "Pension benefit" means the benefits under this Article, or |
22 | | Article 1 as it relates to those benefits, including any |
23 | | anticipated annual increases, that an eligible person is |
24 | | entitled to upon attainment of the applicable retirement age. |
25 | | "Pension benefit" also includes applicable survivor's or |
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1 | | disability benefits. |
2 | | (b) Before January 1, 2019, and annually thereafter, the |
3 | | System shall calculate, using actuarial tables and other |
4 | | assumptions adopted by the Board, the net present value of |
5 | | pension benefits for each eligible person and shall offer each |
6 | | eligible person the opportunity to irrevocably elect to receive |
7 | | an amount determined by the System to be equal to 70% of the |
8 | | net present value of his or her pension benefits in lieu of |
9 | | receiving any pension benefit. The offer shall specify the |
10 | | dollar amount that the eligible person will receive if he or |
11 | | she so elects and shall expire when a subsequent offer is made |
12 | | to an eligible person or when the System determines that 10% of |
13 | | eligible persons in that year have made the election under this |
14 | | subsection, whichever occurs first. The System shall make a |
15 | | good faith effort to contact every eligible person to notify |
16 | | him or her of the election and of the amount of the accelerated |
17 | | pension benefit payment. |
18 | | Until the System determines that 10% of eligible persons in |
19 | | that year have made the election under this subsection, an |
20 | | eligible person may irrevocably elect to receive an accelerated |
21 | | pension benefit payment in the amount that the System offers |
22 | | under this subsection in lieu of receiving any pension benefit. |
23 | | A person who elects to receive an accelerated pension benefit |
24 | | payment under this Section may not elect to proceed under the |
25 | | Retirement Systems Reciprocal Act with respect to service under |
26 | | this Article. |
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1 | | (c) A person's credits and creditable service under this |
2 | | Article shall be terminated upon the person's receipt of an |
3 | | accelerated pension benefit payment under this Section, and no |
4 | | other benefit shall be paid under this Article based on those |
5 | | terminated credits and creditable service, including any |
6 | | retirement, survivor, or other benefit; except that to the |
7 | | extent that participation, benefits, or premiums under the |
8 | | State Employees Group Insurance Act of 1971 are based on the |
9 | | amount of service credit, the terminated service credit shall |
10 | | be used for that purpose. |
11 | | (d) If a person who has received an accelerated pension |
12 | | benefit payment under this Section returns to active service |
13 | | under this Article, then: |
14 | | (1) Any benefits under the System earned as a result of |
15 | | that return to active service shall be based solely on the |
16 | | person's credits and creditable service arising from the |
17 | | return to active service. |
18 | | (2) The accelerated pension benefit payment may not be |
19 | | repaid to the System, and the terminated credits and |
20 | | creditable service may not under any circumstances be |
21 | | reinstated. |
22 | | (e) As a condition of receiving an accelerated pension |
23 | | benefit payment, an eligible person must have another |
24 | | retirement plan or account qualified under the Internal Revenue |
25 | | Code of 1986, as amended, for the accelerated pension benefit |
26 | | payment to be rolled into. The accelerated pension benefit |
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1 | | payment under this Section may be subject to withholding or |
2 | | payment of applicable taxes, but to the extent permitted by |
3 | | federal law, a person who receives an accelerated pension |
4 | | benefit payment under this Section must direct the System to |
5 | | pay all of that payment as a rollover into another retirement |
6 | | plan or account qualified under the Internal Revenue Code of |
7 | | 1986, as amended. |
8 | | (f) Before January 1, 2020 and every January 1 thereafter, |
9 | | the Board shall certify to the Illinois Finance Authority and |
10 | | the General Assembly the amount by which the total amount of |
11 | | accelerated pension benefit payments made under this Section |
12 | | exceed the amount appropriated to the System for the purpose of |
13 | | making those payments. |
14 | | (g) The Board shall adopt any rules necessary to implement |
15 | | this Section. |
16 | | (h) No provision of this Section shall be interpreted in a |
17 | | way that would cause the applicable System to cease to be a |
18 | | qualified plan under the Internal Revenue Code of 1986. |
19 | | (i) Notwithstanding any other provision of this Section, in |
20 | | no case shall the total amount of accelerated pension benefit |
21 | | payments paid under this Section, Section 15-185.5, and Section |
22 | | 16-190.5 cause the Illinois Finance Authority to issue more |
23 | | than the $250,000,000 of State Pension Obligation Acceleration |
24 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
25 | | Illinois Finance Authority Act. |
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1 | | (40 ILCS 5/14-152.1) |
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been held unconstitutional)
|
4 | | Sec. 14-152.1. 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 Public Act 96-37 or by this |
14 | | amendatory Act of the 100th General Assembly this amendatory |
15 | | Act of the 96th 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 |
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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 Insurance Financial and Professional Regulation . |
6 | | A new benefit increase created by a Public Act that does not |
7 | | include the additional funding required under this subsection |
8 | | is null and void. If the Public Pension Division determines |
9 | | that the additional funding provided for a new benefit increase |
10 | | under this subsection is or has become inadequate, it may so |
11 | | certify to the Governor and the State Comptroller and, in the |
12 | | absence of corrective action by the General Assembly, the new |
13 | | benefit increase shall expire at the end of the fiscal year in |
14 | | which 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 |
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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. 96-37, eff. 7-13-09.) |
6 | | (40 ILCS 5/14-155.1 new) |
7 | | Sec. 14-155.1. Defined contribution plan. |
8 | | (a) By July 1, 2019, the System shall prepare and implement |
9 | | a voluntary defined contribution plan for up to 5% of eligible |
10 | | active Tier 1 employees. The System shall determine the 5% cap |
11 | | by the number of active Tier 1 employees on the effective date |
12 | | of this Section. The defined contribution plan developed under |
13 | | this Section shall be a plan that aggregates employer and |
14 | | employee contributions in individual participant accounts |
15 | | which, after meeting any other requirements, are used for |
16 | | payouts after retirement in accordance with this Section and |
17 | | any other applicable laws. |
18 | | As used in this Section, "defined benefit plan" means the |
19 | | retirement plan available under this Article to Tier 1 |
20 | | employees who have not made the election authorized under this |
21 | | Section. |
22 | | (1) Under the defined contribution plan, an active
Tier |
23 | | 1 employee of this System could elect to cease accruing |
24 | | benefits in the defined benefit plan under this Article and |
25 | | begin accruing benefits for future service in the defined |
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1 | | contribution plan. Service credit under the defined |
2 | | contribution plan may be used for determining retirement |
3 | | eligibility under the defined benefit plan. |
4 | | (2) Participants in the defined contribution plan
|
5 | | shall pay employee contributions at the same rate as Tier 1 |
6 | | employees in this System who do not participate in the |
7 | | defined contribution plan. |
8 | | (3) State contributions shall be paid into the
accounts |
9 | | of all participants in the defined contribution plan at a |
10 | | uniform rate, expressed as a percentage of compensation and |
11 | | determined for each year. This rate shall be no higher than |
12 | | the employer's normal cost for Tier 1 employees in the |
13 | | defined benefit plan for that year, as determined by the |
14 | | System and expressed as a percentage of compensation, and |
15 | | shall be no lower than 3% of compensation. The State shall |
16 | | adjust this rate annually. |
17 | | (4) The defined contribution plan shall require 5
years |
18 | | of participation in the defined contribution plan before |
19 | | vesting in State contributions. If the participant fails to |
20 | | vest in them, the State contributions, and the earnings |
21 | | thereon, shall be forfeited. |
22 | | (5) The defined contribution plan may provide for
|
23 | | participants in the plan to be eligible for the defined |
24 | | disability benefits available to other participants under |
25 | | this Article. If it does, the System shall reduce the |
26 | | employee contributions credited to the member's defined |
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1 | | contribution plan account by an amount determined by the |
2 | | System to cover the cost of offering such benefits. |
3 | | (6) The defined contribution plan shall provide a
|
4 | | variety of options for investments. These options shall |
5 | | include investments handled by the Illinois State Board of |
6 | | Investment as well as private sector investment options. |
7 | | (7) The defined contribution plan shall provide a
|
8 | | variety of options for payouts to retirees and their |
9 | | survivors. |
10 | | (8) To the extent authorized under federal law and
as |
11 | | authorized by the System, the plan shall allow former |
12 | | participants in the plan to transfer or roll over employee |
13 | | and vested State contributions, and the earnings thereon, |
14 | | into other qualified retirement plans. |
15 | | (9) The System shall reduce the employee
contributions |
16 | | credited to the member's defined contribution plan account |
17 | | by an amount determined by the System to cover the cost of |
18 | | offering these benefits and any applicable administrative |
19 | | fees. |
20 | | (b) Only persons who are active Tier 1 employees of the |
21 | | System on the effective date of this Section are eligible to |
22 | | participate in the defined contribution plan. Participation in |
23 | | the defined contribution plan shall be limited to the first 5% |
24 | | of eligible persons who elect to participate. The election to |
25 | | participate in the defined contribution plan is voluntary and |
26 | | irrevocable. |
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1 | | (c) An eligible Tier 1 employee may irrevocably elect to |
2 | | participate in the defined contribution plan by filing with the |
3 | | System a written application to participate that is received by |
4 | | the System prior to its determination that 5% of eligible |
5 | | persons have elected to participate in the defined contribution |
6 | | plan. |
7 | | When the System first determines that 5% of eligible |
8 | | persons have elected to participate in the defined contribution |
9 | | plan, the System shall provide notice to previously eligible |
10 | | employees that the plan is no longer available and shall cease |
11 | | accepting applications to participate. |
12 | | (d) The System shall make a good faith effort to contact |
13 | | each active Tier 1 employee who is eligible to participate in |
14 | | the defined contribution plan. The System shall mail |
15 | | information describing the option to join the defined |
16 | | contribution plan to each of these employees to his or her last |
17 | | known address on file with the System. If the employee is not |
18 | | responsive to other means of contact, it is sufficient for the |
19 | | System to publish the details of the option on its website. |
20 | | Upon request for further information describing the |
21 | | option, the System shall provide employees with information |
22 | | from the System before exercising the option to join the plan, |
23 | | including information on the impact to their vested benefits or |
24 | | non-vested service. The individual consultation shall include |
25 | | projections of the member's defined benefits at retirement or |
26 | | earlier termination of service and the value of the member's |
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1 | | account at retirement or earlier termination of service. The |
2 | | System shall not provide advice or counseling with respect to |
3 | | whether the employee should exercise the option. The System |
4 | | shall inform Tier 1 employees who are eligible to participate |
5 | | in the defined contribution plan that they may also wish to |
6 | | obtain information and counsel relating to their option from |
7 | | any other available source, including, but not limited to, |
8 | | labor organizations, private counsel, and financial advisors. |
9 | | (e) In no event shall the System, its staff, its authorized |
10 | | representatives, or the Board be liable for any information |
11 | | given to an employee under this Section. The System may |
12 | | coordinate with the Illinois Department of Central Management |
13 | | Services and other retirement systems administering a defined |
14 | | contribution plan in accordance with this amendatory Act of the |
15 | | 100th General Assembly to provide information concerning the |
16 | | impact of the option set forth in this Section. |
17 | | (f) Notwithstanding any other provision of this Section, no |
18 | | person shall begin participating in the defined contribution |
19 | | plan until it has attained qualified plan status and received |
20 | | all necessary approvals from the U.S. Internal Revenue Service. |
21 | | (g) The System shall report on its progress under this |
22 | | Section, including the available details of the defined |
23 | | contribution plan and the System's plans for informing eligible |
24 | | Tier 1 employees about the plan, to the Governor and the |
25 | | General Assembly on or before January 15, 2019. |
26 | | (h) The Illinois State Board of Investment shall be the |
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1 | | plan sponsor for the defined contribution plan established |
2 | | under this Section. |
3 | | (i) The intent of this amendatory Act of the 100th General |
4 | | Assembly is to ensure that the State's normal cost of |
5 | | participation in the defined contribution plan is similar, and |
6 | | if possible equal, to the State's normal cost of participation |
7 | | in the defined benefit plan, unless a lower State's normal cost |
8 | | is necessary to ensure cost neutrality. |
9 | | (40 ILCS 5/14-155.2 new) |
10 | | Sec. 14-155.2. Defined contribution plan for certain |
11 | | covered employees. |
12 | | (a) As used in this Section: |
13 | | "Defined benefit plan" means the retirement plan available |
14 | | under this Article and Section 1-160 to eligible covered |
15 | | employees who do not make the election authorized under this |
16 | | Section. |
17 | | "Eligible covered employee" means a covered employee who |
18 | | first becomes a participant under this Article on or after 6 |
19 | | months after the effective date of this amendatory Act of the |
20 | | 100th General Assembly. |
21 | | (b) In lieu of the defined benefit plan, an eligible |
22 | | covered employee may irrevocably elect to participate in the |
23 | | defined contribution plan under this Section. The election to |
24 | | participate in the defined contribution plan must be made |
25 | | within 30 days after becoming an eligible covered employee. The |
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1 | | election to participate in the defined contribution plan under |
2 | | this Section is voluntary and irrevocable. |
3 | | (c) No later than 5 months after the effective date of this
|
4 | | amendatory Act of the 100th General Assembly, the System shall
|
5 | | prepare and implement a voluntary defined contribution plan for |
6 | | eligible covered employees. The defined
contribution plan |
7 | | developed under this Section shall be a
plan that aggregates |
8 | | employer and employee contributions in
individual participant |
9 | | accounts which, after meeting any other
requirements, are used |
10 | | for payouts after retirement in
accordance with this Section |
11 | | and any other applicable laws. |
12 | | (1) A participant in the defined contribution plan |
13 | | shall contribute a minimum of 3% of his or her compensation |
14 | | to the defined contribution plan. |
15 | | (2) For persons who participate in the defined |
16 | | contribution plan for at least one year, employer |
17 | | contributions shall be paid into the accounts of those |
18 | | participants at a rate of 3% of compensation. |
19 | | (3) Employer contributions shall vest when those |
20 | | contributions are paid into a participant's account. |
21 | | (4) The defined contribution plan shall provide a |
22 | | variety of options for investments. These options shall |
23 | | include investments handled by the Illinois State Board of |
24 | | Investment as well as private sector investment options. |
25 | | (5) The defined contribution plan shall provide a |
26 | | variety of options for payouts to retirees and their |
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1 | | survivors. |
2 | | (6) To the extent authorized under federal law and as |
3 | | authorized by the affected pension fund, the defined |
4 | | contribution plan shall allow former participants in the |
5 | | plan to transfer or roll over employee and employer |
6 | | contributions, and the earnings thereon, into other |
7 | | qualified retirement plans. |
8 | | (7) The System shall reduce the employee contributions |
9 | | credited to the participant's defined contribution plan |
10 | | account by an amount determined by the System to cover the |
11 | | cost of offering the benefits under this Section and any |
12 | | applicable administrative fees. |
13 | | (40 ILCS 5/14-156.1 new) |
14 | | Sec. 14-156.1. Defined contribution plan; termination. If |
15 | | the defined contribution plan under Section 14-155.1 is |
16 | | terminated or becomes inoperative pursuant to law, then each |
17 | | participant in the plan shall automatically be deemed to have |
18 | | been a contributing Tier 1 employee in the System's defined |
19 | | benefit plan during the time in which he or she participated in |
20 | | the defined contribution plan, and for that purpose the System |
21 | | shall be entitled to recover the amounts in the participant's |
22 | | defined contribution accounts. |
23 | | (40 ILCS 5/15-108.1) |
24 | | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . |
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1 | | "Tier 1 member": A participant or an annuitant of a |
2 | | retirement annuity under this Article, other than a participant |
3 | | in the self-managed plan under Section 15-158.2, who first |
4 | | became a participant or member before January 1, 2011 under any |
5 | | reciprocal retirement system or pension fund established under |
6 | | this Code, other than a retirement system or pension fund |
7 | | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. |
8 | | "Tier 1 member" includes a person who first became a |
9 | | participant under this System before January 1, 2011 and who |
10 | | accepts a refund and is subsequently reemployed by an employer |
11 | | on or after January 1, 2011.
|
12 | | "Tier 1 employee": A Tier 1 member who is a participating |
13 | | employee, unless he or she is a disability benefit recipient |
14 | | under Section 15-150. However, for the purposes of the election |
15 | | under Section 15-132.9, "Tier 1 employee" does not include an |
16 | | individual who has made an irrevocable election on or before |
17 | | June 1, 2017 to retire from service pursuant to the terms of an |
18 | | employment contract or a collective bargaining agreement in |
19 | | effect on June 1, 2017, excluding any extension, amendment, or |
20 | | renewal of that agreement on or after that date, and has |
21 | | notified the System of that election. |
22 | | (Source: P.A. 98-92, eff. 7-16-13.) |
23 | | (40 ILCS 5/15-108.2) |
24 | | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who |
25 | | first becomes a participant under this Article on or after |
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1 | | January 1, 2011 and before 6 months after the effective date of |
2 | | this amendatory Act of the 100th General Assembly , other than a |
3 | | person in the self-managed plan established under Section |
4 | | 15-158.2 or a person who makes the election under subsection |
5 | | (c) of Section 1-161 , unless the person is otherwise a Tier 1 |
6 | | member. The changes made to this Section by this amendatory Act |
7 | | of the 98th General Assembly are a correction of existing law |
8 | | and are intended to be retroactive to the effective date of |
9 | | Public Act 96-889, notwithstanding the provisions of Section |
10 | | 1-103.1 of this Code.
|
11 | | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
|
12 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
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13 | | Sec. 15-111. Earnings.
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14 | | (a) "Earnings": Subject to Section 15-111.5, an amount paid |
15 | | for personal services equal to the sum of
the basic |
16 | | compensation plus extra compensation for summer teaching,
|
17 | | overtime or other extra service. For periods for which an |
18 | | employee receives
service credit under subsection (c) of |
19 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the |
20 | | basic compensation on which contributions are
paid by the |
21 | | employee during such periods. Compensation for employment |
22 | | which is
irregular, intermittent and temporary shall not be |
23 | | considered earnings, unless
the participant is also receiving |
24 | | earnings from the employer as an employee
under Section 15-107.
|
25 | | With respect to transition pay paid by the University of |
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1 | | Illinois to a
person who was a participating employee employed |
2 | | in the fire department of
the University of Illinois's |
3 | | Champaign-Urbana campus immediately prior to
the elimination |
4 | | of that fire department:
|
5 | | (1) "Earnings" includes transition pay paid to the |
6 | | employee on or after
the effective date of this amendatory |
7 | | Act of the 91st General Assembly.
|
8 | | (2) "Earnings" includes transition pay paid to the |
9 | | employee before the
effective date of this amendatory Act |
10 | | of the 91st General Assembly only if (i)
employee |
11 | | contributions under Section 15-157 have been withheld from |
12 | | that
transition pay or (ii) the employee pays to the System |
13 | | before January 1, 2001
an amount representing employee |
14 | | contributions under Section 15-157 on that
transition pay. |
15 | | Employee contributions under item (ii) may be paid in a |
16 | | lump
sum, by withholding from additional transition pay |
17 | | accruing before January 1,
2001, or in any other manner |
18 | | approved by the System. Upon payment of the
employee |
19 | | contributions on transition pay, the corresponding |
20 | | employer
contributions become an obligation of the State.
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21 | | (a-5) Notwithstanding any other provision of this Section, |
22 | | "earnings" does not include any future increase in income that |
23 | | is offered for service by an employer to a Tier 1 employee |
24 | | under this Article pursuant to the condition set forth in |
25 | | subsection (c) of Section 15-132.9 and accepted under that |
26 | | condition by a Tier 1 employee who has made the election under |
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1 | | paragraph (2) of subsection (a) of Section 15-132.9. |
2 | | (a-10) Notwithstanding any other provision of this |
3 | | Section, "earnings" does not include any consideration payment |
4 | | made to a Tier 1 employee. |
5 | | (b) For a Tier 2 member, the annual earnings shall not |
6 | | exceed $106,800; however, that amount shall annually |
7 | | thereafter be increased by the lesser of (i) 3% of that amount, |
8 | | including all previous adjustments, or (ii) one half the annual |
9 | | unadjusted percentage increase (but not less than zero) in the |
10 | | consumer price index-u for the 12 months ending with the |
11 | | September preceding each November 1, including all previous |
12 | | adjustments. |
13 | | For the purposes of this Section, "consumer price index u" |
14 | | means the index published by the Bureau of Labor Statistics of |
15 | | the United States Department of Labor that measures the average |
16 | | change in prices of goods and services purchased by all urban |
17 | | consumers, United States city average, all items, 1982-84 = |
18 | | 100. The new amount resulting from each annual adjustment shall |
19 | | be determined by the Public Pension Division of the Department |
20 | | of Insurance and made available to the boards of the retirement |
21 | | systems and pension funds by November 1 of each year. |
22 | | (c) With each submission of payroll information in the |
23 | | manner prescribed by the System, the
employer shall certify |
24 | | that the payroll information is correct and complies with all |
25 | | applicable
State and federal laws. |
26 | | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
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1 | | (40 ILCS 5/15-112.1 new) |
2 | | Sec. 15-112.1. Future increase in income. "Future increase |
3 | | in income" means an increase to a Tier 1 employee's base pay |
4 | | that is offered by an employer to the Tier 1 employee for |
5 | | service under this Article after June 30, 2018 that qualifies |
6 | | as "earnings", as defined in Section 15-111, or would qualify |
7 | | as "earnings" but for the fact that it was offered to and |
8 | | accepted by the Tier 1 employee under the condition set forth |
9 | | in subsection (c) of Section 15-132.9. The term "future |
10 | | increase in income" includes an increase to a Tier 1 employee's |
11 | | base pay that is paid to the Tier 1 employee pursuant to an |
12 | | extension, amendment, or renewal of any such employment |
13 | | contract or collective bargaining agreement after the |
14 | | effective date of this Section. |
15 | | (40 ILCS 5/15-112.2 new) |
16 | | Sec. 15-112.2. Base pay. As used in Section 15-112.1 of |
17 | | this Code, "base pay" means the greater of either (i) the Tier |
18 | | 1 employee's annualized rate of earnings as of June 30, 2018, |
19 | | or (ii) the Tier 1 employee's annualized rate of earnings |
20 | | immediately preceding the expiration, renewal, or amendment of |
21 | | an employment contract or collective bargaining agreement in |
22 | | effect on the effective date of this Section. For a person |
23 | | returning to participating employee status as a Tier 1 employee |
24 | | after June 30, 2018, however, "base pay" means the employee's |
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1 | | annualized rate of earnings as of the employee's last date of |
2 | | service prior to July 1, 2018. The System shall calculate the |
3 | | base pay of each Tier 1 employee pursuant to this Section. |
4 | | (40 ILCS 5/15-132.9 new) |
5 | | Sec. 15-132.9. Election by Tier 1 employees. |
6 | | (a) Each Tier 1 employee shall make an irrevocable election |
7 | | either: |
8 | | (1) to agree to delay his or her eligibility for |
9 | | automatic annual increases in retirement annuity as |
10 | | provided in subsection (d-1) of Section 15-136 and to have |
11 | | the amount of the automatic annual increases in his or her |
12 | | retirement annuity and survivor annuity that are otherwise |
13 | | provided for in this Article calculated, instead, as |
14 | | provided in subsection (d-1) of Section 15-136; or |
15 | | (2) to not agree to the provisions of paragraph (1) of |
16 | | this subsection. |
17 | | The election required under this subsection (a) shall be |
18 | | made by each Tier 1 employee no earlier than January 1, 2018 |
19 | | and no later than March 31, 2018, except that: |
20 | | (i) a person who becomes a Tier 1 employee under this |
21 | | Article on or after January 1, 2018 must make the election |
22 | | under this subsection (a) within 60 days after becoming a |
23 | | Tier 1 employee; |
24 | | (ii) a person who returns to participating employee |
25 | | status as a Tier 1 employee under this Article on or after |
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1 | | January 1, 2018 and has not yet made an election under this |
2 | | Section must make the election under this subsection (a) |
3 | | within 60 days after returning to participating employee |
4 | | status as a Tier 1 employee; and |
5 | | (iii) a person who returns to participating employee |
6 | | status as a Tier 1 employee under this Article but who has |
7 | | not made an election under Section 15-134.5 must make the |
8 | | election under this subsection (a) at the same time as the |
9 | | election under Section 15-134.5 and within the timeframes |
10 | | required by that Section. |
11 | | If a Tier 1 employee fails for any reason to make a |
12 | | required election under this subsection within the time |
13 | | specified, then the employee shall be deemed to have made the |
14 | | election under paragraph (2) of this subsection. |
15 | | (a-5) If this Section is enjoined or stayed by an Illinois |
16 | | court or a court of competent jurisdiction pending the entry of |
17 | | a final and unappealable decision, and this Section is |
18 | | determined to be constitutional or otherwise valid by a final |
19 | | unappealable decision of an Illinois court or a court of |
20 | | competent jurisdiction, then the election procedure set forth |
21 | | in subsection (a) of this Section shall commence on the 180th |
22 | | calendar day after the date of the issuance of the final |
23 | | unappealable decision and shall conclude at the end of the |
24 | | 270th calendar day after that date. |
25 | | (a-10) All elections under subsection (a) that are made or |
26 | | deemed to be made before July 1, 2018 shall take effect on July |
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1 | | 1, 2018. Elections that are made or deemed to be made on or |
2 | | after July 1, 2018 shall take effect on the first day of the |
3 | | month following the month in which the election is made or |
4 | | deemed to be made. |
5 | | (b) As adequate and legal consideration provided under this |
6 | | amendatory Act of the 100th General Assembly for making an |
7 | | election under paragraph (1) of subsection (a) of this Section, |
8 | | the employer shall be expressly and irrevocably prohibited from |
9 | | offering any future increases in income to a Tier 1 employee |
10 | | who has made an election under paragraph (1) of subsection (a) |
11 | | of this Section on the condition of not constituting earnings |
12 | | under Section 15-111. |
13 | | As adequate and legal consideration provided under this |
14 | | amendatory Act of the 100th General Assembly for making an |
15 | | election under paragraph (1) of subsection (a) of this Section, |
16 | | each Tier 1 employee who has made an election under paragraph |
17 | | (1) of subsection (a) of this Section shall receive a |
18 | | consideration payment equal to 10% of the contributions made by |
19 | | or on behalf of the employee under Section 15-157 before the |
20 | | effective date of that election. The State Comptroller shall |
21 | | pay the consideration payment to the Tier 1 employee out of |
22 | | funds appropriated for that purpose under Section 1.9 of the |
23 | | State Pension Funds Continuing Appropriation Act. The System |
24 | | shall calculate the amount of each consideration payment and, |
25 | | by July 1, 2018, shall certify to the State Comptroller the |
26 | | amount of the consideration payment, together with the name, |
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1 | | address, and any other available payment information of the |
2 | | Tier 1 employee as found in the records of the System. The |
3 | | System shall make additional calculations and certifications |
4 | | of consideration payments to the State Comptroller as the |
5 | | System deems necessary. |
6 | | (c) A Tier 1 employee who makes the election under |
7 | | paragraph (2) of subsection (a) of this Section shall not be |
8 | | subject to paragraph (1) of subsection (a) of this Section. |
9 | | However, each future increase in income offered by an employer |
10 | | under this Article to a Tier 1 employee who has made the |
11 | | election under paragraph (2) of subsection (a) of this Section |
12 | | shall be offered by the employer expressly and irrevocably on |
13 | | the condition of not constituting earnings under Section 15-111 |
14 | | and that the Tier 1 employee's acceptance of the offered future |
15 | | increase in income shall constitute his or her agreement to |
16 | | that condition. |
17 | | (d) The System shall make a good faith effort to contact |
18 | | each Tier 1 employee subject to this Section. The System shall |
19 | | mail information describing the required election to each Tier |
20 | | 1 employee by United States Postal Service mail to his or her |
21 | | last known address on file with the System. If the Tier 1 |
22 | | employee is not responsive to other means of contact, it is |
23 | | sufficient for the System to publish the details of any |
24 | | required elections on its website or to publish those details |
25 | | in a regularly published newsletter or other existing public |
26 | | forum. |
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1 | | Tier 1 employees who are subject to this Section shall be |
2 | | provided with an election packet containing information |
3 | | regarding their options, as well as the forms necessary to make |
4 | | the required election. Upon request, the System shall offer |
5 | | Tier 1 employees an opportunity to receive information from the |
6 | | System before making the required election. The information may |
7 | | consist of video materials, benefit estimators, group |
8 | | presentations, individual consultation with a member or |
9 | | authorized representative of the System in person or by |
10 | | telephone or other electronic means, or any combination of |
11 | | these methods. The System shall not provide advice or |
12 | | counseling with respect to which election a Tier 1 employee |
13 | | should make or specific to the legal or tax circumstances of or |
14 | | consequences to the Tier 1 employee. |
15 | | The System shall inform Tier 1 employees in the election |
16 | | packet required under this subsection that the Tier 1 employee |
17 | | may also wish to obtain information and counsel relating to the |
18 | | election required under this Section from any other available |
19 | | source, including, but not limited to, labor organizations and |
20 | | private counsel. |
21 | | In no event shall the System, its staff, or the Board be |
22 | | held liable for any information given to a member regarding the |
23 | | elections under this Section. The System shall coordinate with |
24 | | the Illinois Department of Central Management Services and each |
25 | | other retirement system administering an election in |
26 | | accordance with this amendatory Act of the 100th General |
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1 | | Assembly to provide information concerning the impact of the |
2 | | election set forth in this Section. |
3 | | (e) Notwithstanding any other provision of law, an employer |
4 | | under this Article is required to offer each future increase in |
5 | | income expressly and irrevocably on the condition of not |
6 | | constituting "earnings" under Section 15-111 to any Tier 1 |
7 | | employee who has made an election under paragraph (2) of |
8 | | subsection (a) of this Section. The offer shall also provide |
9 | | that the Tier 1 employee's acceptance of the offered future |
10 | | increase in income shall constitute his or her agreement to the |
11 | | condition set forth in this subsection. |
12 | | For purposes of legislative intent, the condition set forth |
13 | | in this subsection shall be construed in a manner that ensures |
14 | | that the condition is not violated or circumvented through any |
15 | | contrivance of any kind. |
16 | | (f) A member's election under this Section is not a |
17 | | prohibited election under subdivision (j)(1) of Section 1-119 |
18 | | of this Code. |
19 | | (g) No provision of this Section shall be interpreted in a |
20 | | way that would cause the System to cease to be a qualified plan |
21 | | under Section 401(a) of the Internal Revenue Code of 1986. |
22 | | (h) If an election created by this amendatory Act in any |
23 | | other Article of this Code or any change deriving from that |
24 | | election is determined to be unconstitutional or otherwise |
25 | | invalid by a final unappealable decision of an Illinois court |
26 | | or a court of competent jurisdiction, the invalidity of that |
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1 | | provision shall not in any way affect the validity of this |
2 | | Section or the changes deriving from the election required |
3 | | under this Section.
|
4 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
5 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
6 | | which has been held unconstitutional)
|
7 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
8 | | of this
Section 15-136 apply only to those participants who are |
9 | | participating in the
traditional benefit package or the |
10 | | portable benefit package and do not
apply to participants who |
11 | | are participating in the self-managed plan.
|
12 | | (a) The amount of a participant's retirement annuity, |
13 | | expressed in the form
of a single-life annuity, shall be |
14 | | determined by whichever of the following
rules is applicable |
15 | | and provides the largest annuity:
|
16 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
17 | | of earnings for
each of the first 10 years of service, 1.90% |
18 | | for each of the next 10 years of
service, 2.10% for each year |
19 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
20 | | each year in excess of 30; or for persons who retire on or
|
21 | | after January 1, 1998, 2.2% of the final rate of earnings for |
22 | | each year of
service.
|
23 | | Rule 2: The retirement annuity shall be the sum of the |
24 | | following,
determined from amounts credited to the participant |
25 | | in accordance with the
actuarial tables and the effective rate |
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1 | | of interest in effect at the
time the retirement annuity |
2 | | begins:
|
3 | | (i) the normal annuity which can be provided on an |
4 | | actuarially
equivalent basis, by the accumulated normal |
5 | | contributions as of
the date the annuity begins;
|
6 | | (ii) an annuity from employer contributions of an |
7 | | amount equal to that
which can be provided on an |
8 | | actuarially equivalent basis from the accumulated
normal |
9 | | contributions made by the participant under Section |
10 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
11 | | accumulated normal contributions made by
the participant; |
12 | | and
|
13 | | (iii) the annuity that can be provided on an |
14 | | actuarially equivalent basis
from the entire contribution |
15 | | made by the participant under Section 15-113.3.
|
16 | | With respect to a police officer or firefighter who retires |
17 | | on or after
August 14, 1998, the accumulated normal |
18 | | contributions taken into account under
clauses (i) and (ii) of |
19 | | this Rule 2 shall include the additional normal
contributions |
20 | | made by the police officer or firefighter under Section
|
21 | | 15-157(a).
|
22 | | The amount of a retirement annuity calculated under this |
23 | | Rule 2 shall
be computed solely on the basis of the |
24 | | participant's accumulated normal
contributions, as specified |
25 | | in this Rule and defined in Section 15-116.
Neither an employee |
26 | | or employer contribution for early retirement under
Section |
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1 | | 15-136.2 nor any other employer contribution shall be used in |
2 | | the
calculation of the amount of a retirement annuity under |
3 | | this Rule 2.
|
4 | | This amendatory Act of the 91st General Assembly is a |
5 | | clarification of
existing law and applies to every participant |
6 | | and annuitant without regard to
whether status as an employee |
7 | | terminates before the effective date of this
amendatory Act.
|
8 | | This Rule 2 does not apply to a person who first becomes an |
9 | | employee under this Article on or after July 1, 2005.
|
10 | | Rule 3: The retirement annuity of a participant who is |
11 | | employed
at least one-half time during the period on which his |
12 | | or her final rate of
earnings is based, shall be equal to the |
13 | | participant's years of service
not to exceed 30, multiplied by |
14 | | (1) $96 if the participant's final rate
of earnings is less |
15 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
16 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
17 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
18 | | the final rate
of earnings is at least $5,500 but less than |
19 | | $6,500, (5)
$144 if the final rate of earnings is at least |
20 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
21 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
22 | | the final rate of earnings is at least $8,500 but
less than |
23 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
|
24 | | more, except that the annuity for those persons having made an |
25 | | election under
Section 15-154(a-1) shall be calculated and |
26 | | payable under the portable
retirement benefit program pursuant |
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1 | | to the provisions of Section 15-136.4.
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2 | | Rule 4: A participant who is at least age 50 and has 25 or |
3 | | more years of
service as a police officer or firefighter, and a |
4 | | participant who is age 55 or
over and has at least 20 but less |
5 | | than 25 years of service as a police officer
or firefighter, |
6 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
7 | | final rate of earnings for each of the first 10 years of |
8 | | service as a police
officer or firefighter, 2 1/2% for each of |
9 | | the next 10 years of service as a
police officer or |
10 | | firefighter, and 2 3/4% for each year of service as a police
|
11 | | officer or firefighter in excess of 20. The retirement annuity |
12 | | for all other
service shall be computed under Rule 1. A Tier 2 |
13 | | member is eligible for a retirement annuity calculated under |
14 | | Rule 4 only if that Tier 2 member meets the service |
15 | | requirements for that benefit calculation as prescribed under |
16 | | this Rule 4 in addition to the applicable age requirement under |
17 | | subsection (a-5) of Section 15-135.
|
18 | | For purposes of this Rule 4, a participant's service as a |
19 | | firefighter
shall also include the following:
|
20 | | (i) service that is performed while the person is an |
21 | | employee under
subsection (h) of Section 15-107; and
|
22 | | (ii) in the case of an individual who was a |
23 | | participating employee
employed in the fire department of |
24 | | the University of Illinois's
Champaign-Urbana campus |
25 | | immediately prior to the elimination of that fire
|
26 | | department and who immediately after the elimination of |
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1 | | that fire department
transferred to another job with the |
2 | | University of Illinois, service performed
as an employee of |
3 | | the University of Illinois in a position other than police
|
4 | | officer or firefighter, from the date of that transfer |
5 | | until the employee's
next termination of service with the |
6 | | University of Illinois.
|
7 | | (b) For a Tier 1 member, the retirement annuity provided |
8 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each |
9 | | month the participant is under age 60 at the
time of |
10 | | retirement. However, this reduction shall not apply in the |
11 | | following
cases:
|
12 | | (1) For a disabled participant whose disability |
13 | | benefits have been
discontinued because he or she has |
14 | | exhausted eligibility for disability
benefits under clause |
15 | | (6) of Section 15-152;
|
16 | | (2) For a participant who has at least the number of |
17 | | years of service
required to retire at any age under |
18 | | subsection (a) of Section 15-135; or
|
19 | | (3) For that portion of a retirement annuity which has |
20 | | been provided on
account of service of the participant |
21 | | during periods when he or she performed
the duties of a |
22 | | police officer or firefighter, if these duties were |
23 | | performed
for at least 5 years immediately preceding the |
24 | | date the retirement annuity
is to begin.
|
25 | | (b-5) The retirement annuity of a Tier 2 member who is |
26 | | retiring after attaining age 62 with at least 10 years of |
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1 | | service credit shall be reduced by 1/2 of 1% for each full |
2 | | month that the member's age is under age 67. |
3 | | (c) The maximum retirement annuity provided under Rules 1, |
4 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
5 | | benefits as specified in
Section 415 of the Internal Revenue |
6 | | Code of 1986, as such Section may be
amended from time to time |
7 | | and as such benefit limits shall be adjusted by
the |
8 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
9 | | earnings.
|
10 | | (d) Subject to the provisions of subsection (d-1), a A Tier |
11 | | 1 member whose status as an employee terminates after August |
12 | | 14,
1969 shall receive automatic increases in his or her |
13 | | retirement annuity as
follows:
|
14 | | Effective January 1 immediately following the date the |
15 | | retirement annuity
begins, the annuitant shall receive an |
16 | | increase in his or her monthly
retirement annuity of 0.125% of |
17 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
18 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the |
19 | | number of full months which elapsed from the date the |
20 | | retirement annuity
payments began to January 1, 1972, plus |
21 | | 0.1667% of such annuity, multiplied by
the number of full |
22 | | months which elapsed from January 1, 1972, or the date the
|
23 | | retirement annuity payments began, whichever is later, to |
24 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
25 | | number of full months which elapsed
from January 1, 1978, or |
26 | | the date the retirement annuity payments began,
whichever is |
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1 | | later, to the effective date of the increase.
|
2 | | The annuitant shall receive an increase in his or her |
3 | | monthly retirement
annuity on each January 1 thereafter during |
4 | | the annuitant's life of 3% of
the monthly annuity provided |
5 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this |
6 | | Section. The change made under this subsection by P.A. 81-970 |
7 | | is
effective January 1, 1980 and applies to each annuitant |
8 | | whose status as
an employee terminates before or after that |
9 | | date.
|
10 | | Beginning January 1, 1990, and except as provided in |
11 | | subsection (d-1), all automatic annual increases payable under
|
12 | | this Section shall be calculated as a percentage of the total |
13 | | annuity
payable at the time of the increase, including all |
14 | | increases previously
granted under this Article.
|
15 | | The change made in this subsection by P.A. 85-1008 is |
16 | | effective January
26, 1988, and is applicable without regard to |
17 | | whether status as an employee
terminated before that date.
|
18 | | (d-1) Notwithstanding any other provision of this Article, |
19 | | for a Tier 1 employee who made the election under paragraph (1) |
20 | | of subsection (a) of Section 15-132.9: |
21 | | (1) The initial increase in retirement annuity under |
22 | | this Section shall occur on the January 1 occurring either |
23 | | on or after the attainment of age 67 or the fifth |
24 | | anniversary of the annuity start date, whichever is |
25 | | earlier. |
26 | | (2) The amount of each automatic annual increase in |
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1 | | retirement annuity or survivor annuity occurring on or |
2 | | after the effective date of that election shall be |
3 | | calculated as a percentage of the originally granted |
4 | | retirement annuity or survivor annuity, equal to 3% or |
5 | | one-half the annual unadjusted percentage increase (but |
6 | | not less than zero) in the consumer price index-u for the |
7 | | 12 months ending with the September preceding each November |
8 | | 1, whichever is less. If the annual unadjusted percentage |
9 | | change in the consumer price index-u for the 12 months |
10 | | ending with the September preceding each November 1 is zero |
11 | | or there is a decrease, then the annuity shall not be |
12 | | increased. |
13 | | For the purposes of this Section, "consumer price index-u" |
14 | | means
the index published by the Bureau of Labor Statistics of |
15 | | the United States
Department of Labor that measures the average |
16 | | change in prices of goods and
services purchased by all urban |
17 | | consumers, United States city average, all
items, 1982-84 = |
18 | | 100. The new amount resulting from each annual adjustment
shall |
19 | | be determined by the Public Pension Division of the Department |
20 | | of Insurance and made available to the board of the retirement |
21 | | system by November 1 of each year. |
22 | | (d-5) A retirement annuity of a Tier 2 member shall receive |
23 | | annual increases on the January 1 occurring either on or after |
24 | | the attainment of age 67 or the first anniversary of the |
25 | | annuity start date, whichever is later. Each annual increase |
26 | | shall be calculated at 3% or one half the annual unadjusted |
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1 | | percentage increase (but not less than zero) in the consumer |
2 | | price index-u for the 12 months ending with the September |
3 | | preceding each November 1, whichever is less, of the originally |
4 | | granted retirement annuity. If the annual unadjusted |
5 | | percentage change in the consumer price index-u for the 12 |
6 | | months ending with the September preceding each November 1 is |
7 | | zero or there is a decrease, then the annuity shall not be |
8 | | increased. |
9 | | (e) If, on January 1, 1987, or the date the retirement |
10 | | annuity payment
period begins, whichever is later, the sum of |
11 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
12 | | Section
and the automatic annual increases provided under the |
13 | | preceding subsection
or Section 15-136.1, amounts to less than |
14 | | the retirement
annuity which would be provided by Rule 3, the |
15 | | retirement
annuity shall be increased as of January 1, 1987, or |
16 | | the date the
retirement annuity payment period begins, |
17 | | whichever is later, to the amount
which would be provided by |
18 | | Rule 3 of this Section. Such increased
amount shall be |
19 | | considered as the retirement annuity in determining
benefits |
20 | | provided under other Sections of this Article. This paragraph
|
21 | | applies without regard to whether status as an employee |
22 | | terminated before the
effective date of this amendatory Act of |
23 | | 1987, provided that the annuitant was
employed at least |
24 | | one-half time during the period on which the final rate of
|
25 | | earnings was based.
|
26 | | (f) A participant is entitled to such additional annuity as |
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1 | | may be provided
on an actuarially equivalent basis, by any |
2 | | accumulated
additional contributions to his or her credit. |
3 | | However,
the additional contributions made by the participant |
4 | | toward the automatic
increases in annuity provided under this |
5 | | Section shall not be taken into
account in determining the |
6 | | amount of such additional annuity.
|
7 | | (g) If, (1) by law, a function of a governmental unit, as |
8 | | defined by Section
20-107 of this Code, is transferred in whole |
9 | | or in part to an employer, and (2)
a participant transfers |
10 | | employment from such governmental unit to such employer
within |
11 | | 6 months after the transfer of the function, and (3) the sum of |
12 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
13 | | 3 of this Section (B)
all proportional annuities payable to the |
14 | | participant by all other retirement
systems covered by Article |
15 | | 20, and (C) the initial primary insurance amount to
which the |
16 | | participant is entitled under the Social Security Act, is less |
17 | | than
the retirement annuity which would have been payable if |
18 | | all of the
participant's pension credits validated under |
19 | | Section 20-109 had been validated
under this system, a |
20 | | supplemental annuity equal to the difference in such
amounts |
21 | | shall be payable to the participant.
|
22 | | (h) On January 1, 1981, an annuitant who was receiving
a |
23 | | retirement annuity on or before January 1, 1971 shall have his |
24 | | or her
retirement annuity then being paid increased $1 per |
25 | | month for
each year of creditable service. On January 1, 1982, |
26 | | an annuitant whose
retirement annuity began on or before |
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1 | | January 1, 1977, shall have his or her
retirement annuity then |
2 | | being paid increased $1 per month for each year of
creditable |
3 | | service.
|
4 | | (i) On January 1, 1987, any annuitant whose retirement |
5 | | annuity began on or
before January 1, 1977, shall have the |
6 | | monthly retirement annuity increased by
an amount equal to 8¢ |
7 | | per year of creditable service times the number of years
that |
8 | | have elapsed since the annuity began.
|
9 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
10 | | 98-92, eff. 7-16-13.)
|
11 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
12 | | Sec. 15-155. Employer contributions.
|
13 | | (a) The State of Illinois shall make contributions by |
14 | | appropriations of
amounts which, together with the other |
15 | | employer contributions from trust,
federal, and other funds, |
16 | | employee contributions, income from investments,
and other |
17 | | income of this System, will be sufficient to meet the cost of
|
18 | | maintaining and administering the System on a 90% funded basis |
19 | | in accordance
with actuarial recommendations.
|
20 | | The Board shall determine the amount of State contributions |
21 | | required for
each fiscal year on the basis of the actuarial |
22 | | tables and other assumptions
adopted by the Board and the |
23 | | recommendations of the actuary, using the formula
in subsection |
24 | | (a-1).
|
25 | | (a-1) For State fiscal years 2018 through 2045 (except as |
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1 | | otherwise provided for fiscal year 2019), the minimum |
2 | | contribution to the System to be made by the State for each |
3 | | fiscal year shall be an amount determined by the System to be |
4 | | sufficient to bring the total assets of the System up to 90% of |
5 | | the total actuarial liabilities of the System by the end of |
6 | | State fiscal year 2045. In making these determinations, the |
7 | | required State contribution shall be calculated each year as a |
8 | | level percentage of total payroll, including payroll that is |
9 | | not deemed pensionable, but excluding payroll attributable to |
10 | | participants in the defined contribution plan under Section |
11 | | 15-200.1, over the years remaining to and including fiscal year |
12 | | 2045 and shall be determined under the projected unit credit |
13 | | actuarial cost method. |
14 | | For State fiscal year 2019: |
15 | | (1) The initial calculation and certification shall be |
16 | | based on the amount determined above. |
17 | | (2) For purposes of the recertification due on or |
18 | | before May 1, 2018, the recalculation of the required State |
19 | | contribution for fiscal year 2019 shall take into account |
20 | | the effect on the System's liabilities of the elections |
21 | | made under Section 15-132.9. |
22 | | (3) For purposes of the recertification due on or |
23 | | before October 1, 2018, the total required State |
24 | | contribution for fiscal year 2019 shall be reduced by the |
25 | | amount of the consideration payments made to Tier 1 |
26 | | employees who made the election under paragraph (1) of |
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1 | | subsection (a) of Section 15-132.9. |
2 | | Beginning in State fiscal year 2018, any increase or
|
3 | | decrease in State contribution over the prior fiscal year due
|
4 | | exclusively to changes in actuarial or investment assumptions
|
5 | | adopted by the Board shall be included in the State
|
6 | | contribution to the System, as a percentage of the applicable
|
7 | | employee payroll, and shall be increased in equal annual
|
8 | | increments so that by the State fiscal year occurring 5 years
|
9 | | after the adoption of the actuarial or investment assumptions,
|
10 | | the State is contributing at the rate otherwise required under
|
11 | | this Section. |
12 | | For State fiscal years 2012 through 2017 2045 , the minimum |
13 | | contribution
to the System to be made by the State for each |
14 | | fiscal year shall be an amount
determined by the System to be |
15 | | sufficient to bring the total assets of the
System up to 90% of |
16 | | the total actuarial liabilities of the System by the end of
|
17 | | State fiscal year 2045. In making these determinations, the |
18 | | required State
contribution shall be calculated each year as a |
19 | | level percentage of payroll
over the years remaining to and |
20 | | including fiscal year 2045 and shall be
determined under the |
21 | | projected unit credit actuarial cost method.
|
22 | | For State fiscal years 1996 through 2005, the State |
23 | | contribution to
the System, as a percentage of the applicable |
24 | | employee payroll, shall be
increased in equal annual increments |
25 | | so that by State fiscal year 2011, the
State is contributing at |
26 | | the rate required under this Section.
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1 | | Notwithstanding any other provision of this Article, the |
2 | | total required State
contribution for State fiscal year 2006 is |
3 | | $166,641,900.
|
4 | | Notwithstanding any other provision of this Article, the |
5 | | total required State
contribution for State fiscal year 2007 is |
6 | | $252,064,100.
|
7 | | For each of State fiscal years 2008 through 2009, the State |
8 | | contribution to
the System, as a percentage of the applicable |
9 | | employee payroll, shall be
increased in equal annual increments |
10 | | from the required State contribution for State fiscal year |
11 | | 2007, so that by State fiscal year 2011, the
State is |
12 | | contributing at the rate otherwise required under this Section.
|
13 | | Notwithstanding any other provision of this Article, the |
14 | | total required State contribution for State fiscal year 2010 is |
15 | | $702,514,000 and shall be made from the State Pensions Fund and |
16 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
17 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
18 | | share of bond sale expenses determined by the System's share of |
19 | | total bond proceeds, (ii) any amounts received from the General |
20 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
21 | | proceeds due to the issuance of discounted bonds, if |
22 | | applicable. |
23 | | Notwithstanding any other provision of this Article, the
|
24 | | total required State contribution for State fiscal year 2011 is
|
25 | | the amount recertified by the System on or before April 1, 2011 |
26 | | pursuant to Section 15-165 and shall be made from the State |
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1 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
2 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
3 | | less (i) the pro rata
share of bond sale expenses determined by |
4 | | the System's share of
total bond proceeds, (ii) any amounts |
5 | | received from the General
Revenue Fund in fiscal year 2011, and |
6 | | (iii) any reduction in bond
proceeds due to the issuance of |
7 | | discounted bonds, if
applicable. |
8 | | Beginning in State fiscal year 2046, the minimum State |
9 | | contribution for
each fiscal year shall be the amount needed to |
10 | | maintain the total assets of
the System at 90% of the total |
11 | | actuarial liabilities of the System.
|
12 | | Amounts received by the System pursuant to Section 25 of |
13 | | the Budget Stabilization Act or Section 8.12 of the State |
14 | | Finance Act in any fiscal year do not reduce and do not |
15 | | constitute payment of any portion of the minimum State |
16 | | contribution required under this Article in that fiscal year. |
17 | | Such amounts shall not reduce, and shall not be included in the |
18 | | calculation of, the required State contributions under this |
19 | | Article in any future year until the System has reached a |
20 | | funding ratio of at least 90%. A reference in this Article to |
21 | | the "required State contribution" or any substantially similar |
22 | | term does not include or apply to any amounts payable to the |
23 | | System under Section 25 of the Budget Stabilization Act. |
24 | | Notwithstanding any other provision of this Section, the |
25 | | required State
contribution for State fiscal year 2005 and for |
26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
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1 | | under this Section and
certified under Section 15-165, shall |
2 | | not exceed an amount equal to (i) the
amount of the required |
3 | | State contribution that would have been calculated under
this |
4 | | Section for that fiscal year if the System had not received any |
5 | | payments
under subsection (d) of Section 7.2 of the General |
6 | | Obligation Bond Act, minus
(ii) the portion of the State's |
7 | | total debt service payments for that fiscal
year on the bonds |
8 | | issued in fiscal year 2003 for the purposes of that Section |
9 | | 7.2, as determined
and certified by the Comptroller, that is |
10 | | the same as the System's portion of
the total moneys |
11 | | distributed under subsection (d) of Section 7.2 of the General
|
12 | | Obligation Bond Act. In determining this maximum for State |
13 | | fiscal years 2008 through 2010, however, the amount referred to |
14 | | in item (i) shall be increased, as a percentage of the |
15 | | applicable employee payroll, in equal increments calculated |
16 | | from the sum of the required State contribution for State |
17 | | fiscal year 2007 plus the applicable portion of the State's |
18 | | total debt service payments for fiscal year 2007 on the bonds |
19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
20 | | the General
Obligation Bond Act, so that, by State fiscal year |
21 | | 2011, the
State is contributing at the rate otherwise required |
22 | | under this Section.
|
23 | | (a-2) For employees first hired on or after 6 months after |
24 | | the effective date of this amendatory Act of the 100th General |
25 | | Assembly who have elected the benefits under Section 1-161 of |
26 | | this Code, the employer shall annually contribute an amount, |
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1 | | expressed as a percentage of payroll, equal to the defined |
2 | | benefit normal cost of the defined benefit plan, less the |
3 | | employee contribution, plus 2%. On an annual basis, the System |
4 | | shall certify to each employer the amount of unfunded liability |
5 | | accrued in the employer's account to be paid by the employer so |
6 | | that the System is 90% funded by the end of State fiscal year |
7 | | 2045. The contributions shall be divided equally over a |
8 | | 12-month period and made monthly. The employer shall also |
9 | | contribute an amount equal to the employer defined |
10 | | contribution, as set on an individual employee basis, under |
11 | | paragraph (2) of subsection (k) of Section 1-161 during each |
12 | | pay period. The System shall have the authority to adopt rules |
13 | | regarding implementation of employer contributions. |
14 | | (b) If an employee is paid from trust or federal funds, the |
15 | | employer
shall pay to the Board contributions from those funds |
16 | | which are
sufficient to cover the accruing normal costs on |
17 | | behalf of the employee.
However, universities having employees |
18 | | who are compensated out of local
auxiliary funds, income funds, |
19 | | or service enterprise funds are not required
to pay such |
20 | | contributions on behalf of those employees. The local auxiliary
|
21 | | funds, income funds, and service enterprise funds of |
22 | | universities shall not be
considered trust funds for the |
23 | | purpose of this Article, but funds of alumni
associations, |
24 | | foundations, and athletic associations which are affiliated |
25 | | with
the universities included as employers under this Article |
26 | | and other employers
which do not receive State appropriations |
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1 | | are considered to be trust funds for
the purpose of this |
2 | | Article.
|
3 | | (b-1) The City of Urbana and the City of Champaign shall |
4 | | each make
employer contributions to this System for their |
5 | | respective firefighter
employees who participate in this |
6 | | System pursuant to subsection (h) of Section
15-107. The rate |
7 | | of contributions to be made by those municipalities shall
be |
8 | | determined annually by the Board on the basis of the actuarial |
9 | | assumptions
adopted by the Board and the recommendations of the |
10 | | actuary, and shall be
expressed as a percentage of salary for |
11 | | each such employee. The Board shall
certify the rate to the |
12 | | affected municipalities as soon as may be practical.
The |
13 | | employer contributions required under this subsection shall be |
14 | | remitted by
the municipality to the System at the same time and |
15 | | in the same manner as
employee contributions.
|
16 | | (c) Through State fiscal year 1995: The total employer |
17 | | contribution shall
be apportioned among the various funds of |
18 | | the State and other employers,
whether trust, federal, or other |
19 | | funds, in accordance with actuarial procedures
approved by the |
20 | | Board. State of Illinois contributions for employers receiving
|
21 | | State appropriations for personal services shall be payable |
22 | | from appropriations
made to the employers or to the System. The |
23 | | contributions for Class I
community colleges covering earnings |
24 | | other than those paid from trust and
federal funds, shall be |
25 | | payable solely from appropriations to the Illinois
Community |
26 | | College Board or the System for employer contributions.
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1 | | (d) Beginning in State fiscal year 1996, the required State |
2 | | contributions
to the System shall be appropriated directly to |
3 | | the System and shall be payable
through vouchers issued in |
4 | | accordance with subsection (c) of Section 15-165, except as |
5 | | provided in subsection (g).
|
6 | | (e) The State Comptroller shall draw warrants payable to |
7 | | the System upon
proper certification by the System or by the |
8 | | employer in accordance with the
appropriation laws and this |
9 | | Code.
|
10 | | (f) Normal costs under this Section means liability for
|
11 | | pensions and other benefits which accrues to the System because |
12 | | of the
credits earned for service rendered by the participants |
13 | | during the
fiscal year and expenses of administering the |
14 | | System, but shall not
include the principal of or any |
15 | | redemption premium or interest on any bonds
issued by the Board |
16 | | or any expenses incurred or deposits required in
connection |
17 | | therewith.
|
18 | | (g) For academic years beginning on or after June 1, 2005 |
19 | | and before July 1, 2018, if If the amount of a participant's |
20 | | earnings for any academic year used to determine the final rate |
21 | | of earnings, determined on a full-time equivalent basis, |
22 | | exceeds the amount of his or her earnings with the same |
23 | | employer for the previous academic year, determined on a |
24 | | full-time equivalent basis, by more than 6%, the participant's |
25 | | employer shall pay to the System, in addition to all other |
26 | | payments required under this Section and in accordance with |
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1 | | guidelines established by the System, the present value of the |
2 | | increase in benefits resulting from the portion of the increase |
3 | | in earnings that is in excess of 6%. This present value shall |
4 | | be computed by the System on the basis of the actuarial |
5 | | assumptions and tables used in the most recent actuarial |
6 | | valuation of the System that is available at the time of the |
7 | | computation. The System may require the employer to provide any |
8 | | pertinent information or documentation. |
9 | | Whenever it determines that a payment is or may be required |
10 | | under this subsection (g), the System shall calculate the |
11 | | amount of the payment and bill the employer for that amount. |
12 | | The bill shall specify the calculations used to determine the |
13 | | amount due. If the employer disputes the amount of the bill, it |
14 | | may, within 30 days after receipt of the bill, apply to the |
15 | | System in writing for a recalculation. The application must |
16 | | specify in detail the grounds of the dispute and, if the |
17 | | employer asserts that the calculation is subject to subsection |
18 | | (h) or (i) of this Section, must include an affidavit setting |
19 | | forth and attesting to all facts within the employer's |
20 | | knowledge that are pertinent to the applicability of subsection |
21 | | (h) or (i). Upon receiving a timely application for |
22 | | recalculation, the System shall review the application and, if |
23 | | appropriate, recalculate the amount due.
|
24 | | The employer contributions required under this subsection |
25 | | (g) may be paid in the form of a lump sum within 90 days after |
26 | | receipt of the bill. If the employer contributions are not paid |
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1 | | within 90 days after receipt of the bill, then interest will be |
2 | | charged at a rate equal to the System's annual actuarially |
3 | | assumed rate of return on investment compounded annually from |
4 | | the 91st day after receipt of the bill. Payments must be |
5 | | concluded within 3 years after the employer's receipt of the |
6 | | bill. |
7 | | When assessing payment for any amount due under this |
8 | | subsection (g), the System shall include earnings, to the |
9 | | extent not established by a participant under Section 15-113.11 |
10 | | or 15-113.12, that would have been paid to the participant had |
11 | | the participant not taken (i) periods of voluntary or |
12 | | involuntary furlough occurring on or after July 1, 2015 and on |
13 | | or before June 30, 2017 or (ii) periods of voluntary pay |
14 | | reduction in lieu of furlough occurring on or after July 1, |
15 | | 2015 and on or before June 30, 2017. Determining earnings that |
16 | | would have been paid to a participant had the participant not |
17 | | taken periods of voluntary or involuntary furlough or periods |
18 | | of voluntary pay reduction shall be the responsibility of the |
19 | | employer, and shall be reported in a manner prescribed by the |
20 | | System. |
21 | | (g-1) For academic years beginning on or after July 1, |
22 | | 2018, if the amount of a participant's earnings for any |
23 | | academic year used to determine the final rate of earnings, |
24 | | determined on a full-time equivalent basis, exceeds the amount |
25 | | of his or her earnings with the same employer for the previous |
26 | | academic year, determined on a full-time equivalent basis, by |
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1 | | more than the unadjusted percentage increase in the consumer |
2 | | price index-u for the calendar year immediately preceding the |
3 | | beginning of the academic year, published by the Public Pension |
4 | | Division of the Department of Insurance by November 1 of each |
5 | | year, then the participant's employer shall pay to the System, |
6 | | in addition to all other payments required under this Section |
7 | | and in accordance with guidelines established by the System, |
8 | | the present value of the increase in benefits resulting from |
9 | | the portion of the increase in earnings that is in excess of |
10 | | the unadjusted percentage increase in the consumer price |
11 | | index-u for the applicable calendar year. This present value |
12 | | shall be computed by the System on the basis of the actuarial |
13 | | assumptions and tables used in the most recent actuarial |
14 | | valuation of the System that is available at the time of the |
15 | | computation. The System may require the employer to provide any |
16 | | pertinent information or documentation. |
17 | | Whenever it determines that a payment is or may be required |
18 | | under this subsection (g-1), the System shall calculate the |
19 | | amount of the payment and bill the employer for that amount. |
20 | | The bill shall specify the calculations used to determine the |
21 | | amount due. If the employer disputes the amount of the bill, it |
22 | | may, within 30 days after receipt of the bill, apply to the |
23 | | System in writing for a recalculation. The application must |
24 | | specify in detail the grounds of the dispute and, if the |
25 | | employer asserts that the calculation is subject to subsection |
26 | | (i-1) of this Section, must include an affidavit setting forth |
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1 | | and attesting to all facts within the employer's knowledge that |
2 | | are pertinent to the applicability of subsection (i-1). Upon |
3 | | receiving a timely application for recalculation, the System |
4 | | shall review the application and, if appropriate, recalculate |
5 | | the amount due. |
6 | | The employer contributions required under this subsection |
7 | | (g-1) may be paid in the form of a lump sum within 90 days after |
8 | | receipt of the bill. If the employer contributions are not paid |
9 | | within 90 days after receipt of the bill, then interest shall |
10 | | be charged at a rate equal to the System's annual actuarially |
11 | | assumed rate of return on investment compounded annually from |
12 | | the 91st day after receipt of the bill. Payments must be |
13 | | concluded within 3 years after the employer's receipt of the |
14 | | bill. |
15 | | For the purposes of this Section, "consumer price index-u" |
16 | | means the index published by the Bureau of Labor Statistics of |
17 | | the United States Department of Labor that measures the average |
18 | | change in prices of goods and services purchased by all urban |
19 | | consumers, United States city average, all items, 1982-84 = |
20 | | 100. The new amount resulting from each annual adjustment shall |
21 | | be determined by the Public Pension Division of the Department |
22 | | of Insurance and made available to the boards of the retirement |
23 | | systems and pension funds by November 1 of each year. |
24 | | (h) This subsection (h) applies only to payments made or |
25 | | salary increases given on or after June 1, 2005 but before July |
26 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
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1 | | require the System to refund any payments received before July |
2 | | 31, 2006 (the effective date of Public Act 94-1057). |
3 | | When assessing payment for any amount due under subsection |
4 | | (g), the System shall exclude earnings increases paid to |
5 | | participants under contracts or collective bargaining |
6 | | agreements entered into, amended, or renewed before June 1, |
7 | | 2005.
|
8 | | When assessing payment for any amount due under subsection |
9 | | (g), the System shall exclude earnings increases paid to a |
10 | | participant at a time when the participant is 10 or more years |
11 | | from retirement eligibility under Section 15-135.
|
12 | | When assessing payment for any amount due under subsection |
13 | | (g), the System shall exclude earnings increases resulting from |
14 | | overload work, including a contract for summer teaching, or |
15 | | overtime when the employer has certified to the System, and the |
16 | | System has approved the certification, that: (i) in the case of |
17 | | overloads (A) the overload work is for the sole purpose of |
18 | | academic instruction in excess of the standard number of |
19 | | instruction hours for a full-time employee occurring during the |
20 | | academic year that the overload is paid and (B) the earnings |
21 | | increases are equal to or less than the rate of pay for |
22 | | academic instruction computed using the participant's current |
23 | | salary rate and work schedule; and (ii) in the case of |
24 | | overtime, the overtime was necessary for the educational |
25 | | mission. |
26 | | When assessing payment for any amount due under subsection |
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1 | | (g), the System shall exclude any earnings increase resulting |
2 | | from (i) a promotion for which the employee moves from one |
3 | | classification to a higher classification under the State |
4 | | Universities Civil Service System, (ii) a promotion in academic |
5 | | rank for a tenured or tenure-track faculty position, or (iii) a |
6 | | promotion that the Illinois Community College Board has |
7 | | recommended in accordance with subsection (k) of this Section. |
8 | | These earnings increases shall be excluded only if the |
9 | | promotion is to a position that has existed and been filled by |
10 | | a member for no less than one complete academic year and the |
11 | | earnings increase as a result of the promotion is an increase |
12 | | that results in an amount no greater than the average salary |
13 | | paid for other similar positions. |
14 | | (i) When assessing payment for any amount due under |
15 | | subsection (g), the System shall exclude any salary increase |
16 | | described in subsection (h) of this Section given on or after |
17 | | July 1, 2011 but before July 1, 2014 under a contract or |
18 | | collective bargaining agreement entered into, amended, or |
19 | | renewed on or after June 1, 2005 but before July 1, 2011. |
20 | | Notwithstanding any other provision of this Section, any |
21 | | payments made or salary increases given after June 30, 2014 |
22 | | shall be used in assessing payment for any amount due under |
23 | | subsection (g) of this Section.
|
24 | | (i-1) When assessing payment for any amount due under |
25 | | subsection (g-1), the System shall exclude salary increases |
26 | | paid to participants under contracts or collective bargaining |
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1 | | agreements entered into, amended, or renewed before the |
2 | | effective date of this amendatory Act of the 100th General |
3 | | Assembly. |
4 | | (j) The System shall prepare a report and file copies of |
5 | | the report with the Governor and the General Assembly by |
6 | | January 1, 2007 that contains all of the following information: |
7 | | (1) The number of recalculations required by the |
8 | | changes made to this Section by Public Act 94-1057 for each |
9 | | employer. |
10 | | (2) The dollar amount by which each employer's |
11 | | contribution to the System was changed due to |
12 | | recalculations required by Public Act 94-1057. |
13 | | (3) The total amount the System received from each |
14 | | employer as a result of the changes made to this Section by |
15 | | Public Act 94-4. |
16 | | (4) The increase in the required State contribution |
17 | | resulting from the changes made to this Section by Public |
18 | | Act 94-1057. |
19 | | (j-5) For academic years beginning on or after July 1, |
20 | | 2018, if the amount of a participant's earnings for any |
21 | | academic year, determined on a full-time equivalent basis, |
22 | | exceeds $140,000, the participant's employer shall pay to the |
23 | | System, in addition to all other payments required under this |
24 | | Section and in accordance with guidelines established by the |
25 | | System, the amount of the earnings that exceed $140,000 |
26 | | multiplied by the level percentage of payroll used in that |
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1 | | fiscal year, as determined by the System, to be sufficient to |
2 | | bring the total assets of the System up to 90% of the total |
3 | | actuarial liabilities of the System by the end of State fiscal |
4 | | year 2045. This amount shall be computed by the System on the |
5 | | basis of the actuarial assumptions and tables used in the most |
6 | | recent actuarial valuation of the System that is available at |
7 | | the time of the computation. The System may require the |
8 | | employer to provide any pertinent information or |
9 | | documentation. |
10 | | Whenever it determines that a payment is or may be required |
11 | | under this subsection, the System shall calculate the amount of |
12 | | the payment and bill the employer for that amount. The bill |
13 | | shall specify the calculations used to determine the amount |
14 | | due. If the employer disputes the amount of the bill, it may, |
15 | | within 30 days after receipt of the bill, apply to the System |
16 | | in writing for a recalculation. The application must specify in |
17 | | detail the grounds of the dispute. Upon receiving a timely |
18 | | application for recalculation, the System shall review the |
19 | | application and, if appropriate, recalculate the amount due. |
20 | | The employer contributions required under this subsection |
21 | | may be paid in the form of a lump sum within 90 days after |
22 | | receipt of the bill. If the employer contributions are not paid |
23 | | within 90 days after receipt of the bill, then interest will be |
24 | | charged at a rate equal to the System's annual actuarially |
25 | | assumed rate of return on investment compounded annually from |
26 | | the 91st day after receipt of the bill. Payments must be |
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1 | | concluded within 3 years after the employer's receipt of the |
2 | | bill. |
3 | | (k) The Illinois Community College Board shall adopt rules |
4 | | for recommending lists of promotional positions submitted to |
5 | | the Board by community colleges and for reviewing the |
6 | | promotional lists on an annual basis. When recommending |
7 | | promotional lists, the Board shall consider the similarity of |
8 | | the positions submitted to those positions recognized for State |
9 | | universities by the State Universities Civil Service System. |
10 | | The Illinois Community College Board shall file a copy of its |
11 | | findings with the System. The System shall consider the |
12 | | findings of the Illinois Community College Board when making |
13 | | determinations under this Section. The System shall not exclude |
14 | | any earnings increases resulting from a promotion when the |
15 | | promotion was not submitted by a community college. Nothing in |
16 | | this subsection (k) shall require any community college to |
17 | | submit any information to the Community College Board.
|
18 | | (l) For purposes of determining the required State |
19 | | contribution to the System, the value of the System's assets |
20 | | shall be equal to the actuarial value of the System's assets, |
21 | | which shall be calculated as follows: |
22 | | As of June 30, 2008, the actuarial value of the System's |
23 | | assets shall be equal to the market value of the assets as of |
24 | | that date. In determining the actuarial value of the System's |
25 | | assets for fiscal years after June 30, 2008, any actuarial |
26 | | gains or losses from investment return incurred in a fiscal |
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1 | | year shall be recognized in equal annual amounts over the |
2 | | 5-year period following that fiscal year. |
3 | | (m) For purposes of determining the required State |
4 | | contribution to the system for a particular year, the actuarial |
5 | | value of assets shall be assumed to earn a rate of return equal |
6 | | to the system's actuarially assumed rate of return. |
7 | | (n) If Section 15-132.9 is determined to be |
8 | | unconstitutional or otherwise invalid by a final unappealable |
9 | | decision of an Illinois court or a court of competent |
10 | | jurisdiction, then the changes made to this Section by this |
11 | | amendatory Act of the 100th General Assembly shall not take |
12 | | effect and are repealed by operation of law. |
13 | | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; |
14 | | 99-897, eff. 1-1-17 .)
|
15 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
16 | | Sec. 15-157. Employee Contributions.
|
17 | | (a) Each participating employee
shall make contributions |
18 | | towards the retirement
benefits payable under the retirement |
19 | | program applicable to the
employee from each payment
of |
20 | | earnings applicable to employment under this system on and |
21 | | after the
date of becoming a participant as follows: Prior to |
22 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
23 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
24 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
25 | | are to be considered as normal contributions for purposes
of |
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1 | | this Article.
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2 | | Each participant who is a police officer or firefighter |
3 | | shall make normal
contributions of 8% of each payment of |
4 | | earnings applicable to employment as a
police officer or |
5 | | firefighter under this system on or after September 1, 1981,
|
6 | | unless he or she files with the board within 60 days after the |
7 | | effective date
of this amendatory Act of 1991 or 60 days after |
8 | | the board receives notice that
he or she is employed as a |
9 | | police officer or firefighter, whichever is later,
a written |
10 | | notice waiving the retirement formula provided by Rule 4 of |
11 | | Section
15-136. This waiver shall be irrevocable. If a |
12 | | participant had met the
conditions set forth in Section |
13 | | 15-132.1 prior to the effective date of this
amendatory Act of |
14 | | 1991 but failed to make the additional normal contributions
|
15 | | required by this paragraph, he or she may elect to pay the |
16 | | additional
contributions plus compound interest at the |
17 | | effective rate. If such payment
is received by the board, the |
18 | | service shall be considered as police officer
service in |
19 | | calculating the retirement annuity under Rule 4 of Section |
20 | | 15-136.
While performing service described in clause (i) or |
21 | | (ii) of Rule 4 of Section
15-136, a participating employee |
22 | | shall be deemed to be employed as a
firefighter for the purpose |
23 | | of determining the rate of employee contributions
under this |
24 | | Section.
|
25 | | (b) Starting September 1, 1969, each participating |
26 | | employee shall make
additional contributions of 1/2 of 1% of |
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1 | | earnings to finance a portion
of the cost of the annual |
2 | | increases in retirement annuity provided under
Section 15-136, |
3 | | except that with respect to participants in the
self-managed |
4 | | plan this additional contribution shall be used to finance the
|
5 | | benefits obtained under that retirement program. Beginning |
6 | | July 1, 2018 or the effective date of the Tier 1 employee's |
7 | | election under paragraph (1) of subsection (a) of Section |
8 | | 15-132.9, whichever is later, each Tier 1 employee who made the |
9 | | election under paragraph (1) of subsection (a) of Section |
10 | | 15-132.9 is no longer required to make contributions under this |
11 | | subsection.
|
12 | | (c) Except as provided in subsection (c-5), in In addition |
13 | | to the amounts described in subsections (a) and (b) of this
|
14 | | Section, each participating employee shall make contributions |
15 | | of 1% of earnings
applicable under this system on and after |
16 | | August 1, 1959. The contributions
made under this subsection |
17 | | (c) shall be considered as survivor's insurance
contributions |
18 | | for purposes of this Article if the employee is covered under
|
19 | | the traditional benefit package, and such contributions shall |
20 | | be considered
as additional contributions for purposes of this |
21 | | Article if the employee is
participating in the self-managed |
22 | | plan or has elected to participate in the
portable benefit |
23 | | package and has completed the applicable one-year waiting
|
24 | | period. Contributions in excess of $80 during any fiscal year |
25 | | beginning before
August 31, 1969 and in excess of $120 during |
26 | | any fiscal year thereafter until
September 1, 1971 shall be |
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1 | | considered as additional contributions for purposes
of this |
2 | | Article.
|
3 | | (c-5) Beginning July 1, 2018 or the effective date of the |
4 | | Tier 1 employee's election under paragraph (1) of subsection |
5 | | (a) of Section 15-132.9, whichever is later, in lieu of the |
6 | | contributions otherwise required under subsection (c), each |
7 | | Tier 1 employee who made the election under paragraph (1) of |
8 | | subsection (a) of Section 15-132.9 shall make contributions of |
9 | | 0.7% of earnings applicable under this System and each Tier 1 |
10 | | employee who is a police officer or firefighter who makes |
11 | | normal contributions of 8% of each payment of earnings |
12 | | applicable to employment as a police officer or firefighter |
13 | | under this System and who made the election under paragraph (1) |
14 | | of subsection (a) of Section 15-132.9 shall make contributions |
15 | | of 0.55% of earnings applicable under this System. The |
16 | | contributions made under this subsection (c-5) shall be |
17 | | considered as survivor's insurance contributions for purposes |
18 | | of this Article and such contributions shall be considered as |
19 | | additional contributions for purposes of this Article if the |
20 | | employee has elected to participate in the portable benefit |
21 | | package and has completed the applicable one-year waiting |
22 | | period. |
23 | | (d) If the board by board rule so permits and subject to |
24 | | such conditions
and limitations as may be specified in its |
25 | | rules, a participant may make
other additional contributions of |
26 | | such percentage of earnings or amounts as
the participant shall |
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1 | | elect in a written notice thereof received by the board.
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2 | | (e) That fraction of a participant's total accumulated |
3 | | normal
contributions, the numerator of which is equal to the |
4 | | number of years of
service in excess of that which is required |
5 | | to qualify for the maximum
retirement annuity, and the |
6 | | denominator of which is equal to the total
service of the |
7 | | participant, shall be considered as accumulated additional
|
8 | | contributions. The determination of the applicable maximum |
9 | | annuity and
the adjustment in contributions required by this |
10 | | provision shall be made
as of the date of the participant's |
11 | | retirement.
|
12 | | (f) Notwithstanding the foregoing, a participating |
13 | | employee shall not
be required to make contributions under this |
14 | | Section after the date upon
which continuance of such |
15 | | contributions would otherwise cause his or her
retirement |
16 | | annuity to exceed the maximum retirement annuity as specified |
17 | | in
clause (1) of subsection (c) of Section 15-136.
|
18 | | (g) A participant may make contributions for the purchase |
19 | | of
service credit under this Article; however, only a |
20 | | participating employee may make optional contributions under |
21 | | subsection (b) of Section 15-157.1 of this Article.
|
22 | | (h) A Tier 2 member shall not make contributions on |
23 | | earnings that exceed the limitation as prescribed under |
24 | | subsection (b) of Section 15-111 of this Article. |
25 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
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1 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been held unconstitutional)
|
4 | | Sec. 15-165. To certify amounts and submit vouchers.
|
5 | | (a) The Board shall certify to the Governor on or before |
6 | | November 15 of each
year until November 15, 2011 the |
7 | | appropriation required from State funds for the purposes of |
8 | | this
System for the following fiscal year. The certification |
9 | | under this subsection (a) shall include a copy
of the actuarial |
10 | | recommendations upon which it is based and shall specifically |
11 | | identify the System's projected State normal cost for that |
12 | | fiscal year and the projected State cost for the self-managed |
13 | | plan for that fiscal year.
|
14 | | On or before May 1, 2004, the Board shall recalculate and |
15 | | recertify to
the Governor the amount of the required State |
16 | | contribution to the System for
State fiscal year 2005, taking |
17 | | into account the amounts appropriated to and
received by the |
18 | | System under subsection (d) of Section 7.2 of the General
|
19 | | Obligation Bond Act.
|
20 | | On or before July 1, 2005, the Board shall recalculate and |
21 | | recertify
to the Governor the amount of the required State
|
22 | | contribution to the System for State fiscal year 2006, taking |
23 | | into account the changes in required State contributions made |
24 | | by this amendatory Act of the 94th General Assembly.
|
25 | | On or before April 1, 2011, the Board shall recalculate and |
26 | | recertify to the Governor the amount of the required State |
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1 | | contribution to the System for State fiscal year 2011, applying |
2 | | the changes made by Public Act 96-889 to the System's assets |
3 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
4 | | was approved on that date. |
5 | | (a-5) On or before November 1 of each year, beginning |
6 | | November 1, 2012, the Board shall submit to the State Actuary, |
7 | | the Governor, and the General Assembly a proposed certification |
8 | | of the amount of the required State contribution to the System |
9 | | for the next fiscal year, along with all of the actuarial |
10 | | assumptions, calculations, and data upon which that proposed |
11 | | certification is based. On or before January 1 of each year, |
12 | | beginning January 1, 2013, the State Actuary shall issue a |
13 | | preliminary report concerning the proposed certification and |
14 | | identifying, if necessary, recommended changes in actuarial |
15 | | assumptions that the Board must consider before finalizing its |
16 | | certification of the required State contributions. On or before |
17 | | January 15, 2013 and each January 15 thereafter, the Board |
18 | | shall certify to the Governor and the General Assembly the |
19 | | amount of the required State contribution for the next fiscal |
20 | | year. The Board's certification must note, in a written |
21 | | response to the State Actuary, any deviations from the State |
22 | | Actuary's recommended changes, the reason or reasons for not |
23 | | following the State Actuary's recommended changes, and the |
24 | | fiscal impact of not following the State Actuary's recommended |
25 | | changes on the required State contribution. |
26 | | On or before May 1, 2018, the Board shall recalculate and |
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1 | | recertify
to the Governor and the General Assembly the amount |
2 | | of the required State
contribution to the System for State |
3 | | fiscal year 2019, taking into account the effect on the |
4 | | System's liabilities of the elections made under Section |
5 | | 15-132.9. |
6 | | On or before October 1, 2018, the Board shall recalculate |
7 | | and recertify to the Governor and the General Assembly the |
8 | | amount of the required State contribution to the System for |
9 | | State fiscal year 2019, taking into account the reduction |
10 | | specified under item (3) of subsection (a-1) of Section 15-155. |
11 | | (a-10) For purposes of subsection (c-5) of Section 20 of |
12 | | the
Budget Stabilization Act, on or before November 1 of each |
13 | | year
beginning November 1, 2019, the Board shall determine the
|
14 | | amount of the State contribution to the System that would have
|
15 | | been required for the next fiscal year if Section 1-161, |
16 | | subsection (a-2) of Section 15-155, and the changes made to |
17 | | Section 1-160 by this amendatory Act of the 100th General |
18 | | Assembly had not taken effect, using the
best and most recent |
19 | | available data but based on the law in
effect on May 31, 2019. |
20 | | The Board shall submit to the State
Actuary, the Governor, and |
21 | | the General Assembly a proposed
certification, along with the |
22 | | relevant law, actuarial
assumptions, calculations, and data |
23 | | upon which that
certification is based. On or before January 1, |
24 | | 2020 and every January 1 thereafter, the State Actuary shall |
25 | | issue a
preliminary report concerning the proposed |
26 | | certification and
identifying, if necessary, recommended |
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1 | | changes in actuarial
assumptions that the Board must consider |
2 | | before finalizing its
certification. On or before January 15, |
3 | | 2020 and every January
1 thereafter, the Board shall certify to |
4 | | the Governor and the
General Assembly the amount of the State |
5 | | contribution to the
System that would have been required for |
6 | | the next fiscal year
if Section 1-161, subsection (a-2) of |
7 | | Section 15-155, and the changes made to Section 1-160 by this |
8 | | amendatory Act of the 100th General Assembly had not taken |
9 | | effect, using the best and most recent available data but
based |
10 | | on the law in effect on May 31, 2019. The Board's
certification |
11 | | must note any deviations from the State Actuary's
recommended |
12 | | changes, the reason or reasons for not following
the State |
13 | | Actuary's recommended changes, and the impact of not
following |
14 | | the State Actuary's recommended changes. |
15 | | (a-15) As soon as practical after the effective date of |
16 | | this amendatory Act of the 100th General Assembly, the Board |
17 | | shall recalculate and recertify to the State Actuary, the |
18 | | Governor, and the General Assembly the amount of the State |
19 | | contribution to the System for State fiscal year 2018, taking |
20 | | into account the changes in required State contributions made |
21 | | by this amendatory Act of the 100th General Assembly. The State |
22 | | Actuary shall review the assumptions and valuations underlying |
23 | | the Board's revised certification and issue a preliminary |
24 | | report concerning the proposed recertification and |
25 | | identifying, if necessary, recommended changes in actuarial |
26 | | assumptions that the Board must consider before finalizing its |
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1 | | certification of the required State contributions. The Board's |
2 | | final certification must note any deviations from the State |
3 | | Actuary's recommended changes, the reason or reasons for not |
4 | | following the State Actuary's recommended changes, and the |
5 | | fiscal impact of not following the State Actuary's recommended |
6 | | changes on the required State contribution. |
7 | | (b) The Board shall certify to the State Comptroller or |
8 | | employer, as the
case may be, from time to time, by its |
9 | | chairperson and secretary, with its seal
attached, the amounts |
10 | | payable to the System from the various funds.
|
11 | | (c) Beginning in State fiscal year 1996, on or as soon as |
12 | | possible after the
15th day of each month the Board shall |
13 | | submit vouchers for payment of State
contributions to the |
14 | | System, in a total monthly amount of one-twelfth of the
|
15 | | required annual State contribution certified under subsection |
16 | | (a).
From the effective date of this amendatory Act
of the 93rd |
17 | | General Assembly through June 30, 2004, the Board shall not
|
18 | | submit vouchers for the remainder of fiscal year 2004 in excess |
19 | | of the
fiscal year 2004 certified contribution amount |
20 | | determined
under this Section after taking into consideration |
21 | | the transfer to the
System under subsection (b) of Section |
22 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
23 | | the State Comptroller and Treasurer by warrants drawn
on the |
24 | | funds appropriated to the System for that fiscal year.
|
25 | | If in any month the amount remaining unexpended from all |
26 | | other
appropriations to the System for the applicable fiscal |
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1 | | year (including the
appropriations to the System under Section |
2 | | 8.12 of the State Finance Act and
Section 1 of the State |
3 | | Pension Funds Continuing Appropriation Act) is less than
the |
4 | | amount lawfully vouchered under this Section, the difference |
5 | | shall be paid
from the General Revenue Fund under the |
6 | | continuing appropriation authority
provided in Section 1.1 of |
7 | | the State Pension Funds Continuing Appropriation
Act.
|
8 | | (d) So long as the payments received are the full amount |
9 | | lawfully
vouchered under this Section, payments received by the |
10 | | System under this
Section shall be applied first toward the |
11 | | employer contribution to the
self-managed plan established |
12 | | under Section 15-158.2. Payments shall be
applied second toward |
13 | | the employer's portion of the normal costs of the System,
as |
14 | | defined in subsection (f) of Section 15-155. The balance shall |
15 | | be applied
toward the unfunded actuarial liabilities of the |
16 | | System.
|
17 | | (e) In the event that the System does not receive, as a |
18 | | result of
legislative enactment or otherwise, payments |
19 | | sufficient to
fully fund the employer contribution to the |
20 | | self-managed plan
established under Section 15-158.2 and to |
21 | | fully fund that portion of the
employer's portion of the normal |
22 | | costs of the System, as calculated in
accordance with Section |
23 | | 15-155(a-1), then any payments received shall be
applied |
24 | | proportionately to the optional retirement program established |
25 | | under
Section 15-158.2 and to the employer's portion of the |
26 | | normal costs of the
System, as calculated in accordance with |
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1 | | Section 15-155(a-1).
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2 | | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
|
3 | | (40 ILCS 5/15-185.5 new) |
4 | | Sec. 15-185.5. Accelerated pension benefit payment. |
5 | | (a) As used in this Section: |
6 | | "Eligible person" means a person who: |
7 | | (1) has terminated service; |
8 | | (2) has accrued sufficient service credit to be |
9 | | eligible to receive a retirement annuity under this |
10 | | Article; |
11 | | (3) has not received any retirement annuity under this |
12 | | Article; |
13 | | (4) does not have a QILDRO in effect against him or her |
14 | | under this Article; and |
15 | | (5) is not a participant in the self-managed plan under |
16 | | Section 15-158.2. |
17 | | "Pension benefit" means the benefits under this Article, or |
18 | | Article 1 as it relates to those benefits, including any |
19 | | anticipated annual increases, that an eligible person is |
20 | | entitled to upon attainment of the applicable retirement age. |
21 | | "Pension benefit" also includes applicable survivor's or |
22 | | disability benefits. |
23 | | (b) Before January 1, 2018, and annually thereafter, the |
24 | | System shall calculate, using actuarial tables and other |
25 | | assumptions adopted by the Board, the net present value of |
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1 | | pension benefits for each eligible person and shall offer each |
2 | | eligible person the opportunity to irrevocably elect to receive |
3 | | an amount determined by the System to be equal to 70% of the |
4 | | net present value of his or her pension benefits in lieu of |
5 | | receiving any pension benefit. The offer shall specify the |
6 | | dollar amount that the eligible person will receive if he or |
7 | | she so elects and shall expire when a subsequent offer is made |
8 | | to an eligible person or when the System determines that 10% of |
9 | | eligible persons in that year have made the election under this |
10 | | subsection, whichever occurs first. The System shall make a |
11 | | good faith effort to contact every eligible person to notify |
12 | | him or her of the election and of the amount of the accelerated |
13 | | pension benefit payment. |
14 | | Until the System determines that 10% of eligible persons in |
15 | | that year have made the election under this subsection, an |
16 | | eligible person may irrevocably elect to receive an accelerated |
17 | | pension benefit payment in the amount that the System offers |
18 | | under this subsection in lieu of receiving any pension benefit. |
19 | | A person who elects to receive an accelerated pension benefit |
20 | | payment under this Section may not elect to proceed under the |
21 | | Retirement Systems Reciprocal Act with respect to service under |
22 | | this Article. |
23 | | (c) A person's credits and creditable service under this |
24 | | Article shall be terminated upon the person's receipt of an |
25 | | accelerated pension benefit payment under this Section, and no |
26 | | other benefit shall be paid under this Article based on those |
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1 | | terminated credits and creditable service, including any |
2 | | retirement, survivor, or other benefit; except that to the |
3 | | extent that participation, benefits, or premiums under the |
4 | | State Employees Group Insurance Act of 1971 are based on the |
5 | | amount of service credit, the terminated service credit shall |
6 | | be used for that purpose. |
7 | | (d) If a person who has received an accelerated pension |
8 | | benefit payment under this Section returns to participating |
9 | | employee status under this Article, then: |
10 | | (1) Any benefits under the System earned as a result of |
11 | | that return to participating employee status shall be based |
12 | | solely on the person's credits and creditable service |
13 | | arising from the return to participating employee status. |
14 | | (2) The accelerated pension benefit payment may not be |
15 | | repaid to the System, and the terminated credits and |
16 | | creditable service may not under any circumstances be |
17 | | reinstated. |
18 | | (e) As a condition of receiving an accelerated pension |
19 | | benefit payment, an eligible person must have another |
20 | | retirement plan or account qualified under the Internal Revenue |
21 | | Code of 1986, as amended, for the accelerated pension benefit |
22 | | payment to be rolled into. The accelerated pension benefit |
23 | | payment under this Section may be subject to withholding or |
24 | | payment of applicable taxes, but to the extent permitted by |
25 | | federal law, a person who receives an accelerated pension |
26 | | benefit payment under this Section must direct the System to |
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1 | | pay all of that payment as a rollover into another retirement |
2 | | plan or account qualified under the Internal Revenue Code of |
3 | | 1986, as amended. |
4 | | (f) Before January 1, 2019 and every January 1 thereafter, |
5 | | the Board shall certify to the Illinois Finance Authority and |
6 | | the General Assembly the amount by which the total amount of |
7 | | accelerated pension benefit payments made under this Section |
8 | | exceed the amount appropriated to the System for the purpose of |
9 | | making those payments. |
10 | | (g) The Board shall adopt any rules necessary to implement |
11 | | this Section. |
12 | | (h) No provision of this Section shall be interpreted in a |
13 | | way that would cause the applicable System to cease to be a |
14 | | qualified plan under the Internal Revenue Code of 1986. |
15 | | (i) Notwithstanding any other provision of this Section, in |
16 | | no case shall the total amount of accelerated pension benefit |
17 | | payments paid under this Section, Section 14-147.5, and Section |
18 | | 16-190.5 cause the Illinois Finance Authority to issue more |
19 | | than the $250,000,000 of State Pension Obligation Acceleration |
20 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
21 | | Illinois Finance Authority Act. |
22 | | (40 ILCS 5/15-198) |
23 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
24 | | which has been held unconstitutional)
|
25 | | Sec. 15-198. Application and expiration of new benefit |
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1 | | increases. |
2 | | (a) As used in this Section, "new benefit increase" means |
3 | | an increase in the amount of any benefit provided under this |
4 | | Article, or an expansion of the conditions of eligibility for |
5 | | any benefit under this Article, that results from an amendment |
6 | | to this Code that takes effect after the effective date of this |
7 | | amendatory Act of the 94th General Assembly. "New benefit |
8 | | increase", however, does not include any benefit increase |
9 | | resulting from the changes made to this Article by this |
10 | | amendatory Act of the 100th General Assembly. |
11 | | (b) Notwithstanding any other provision of this Code or any |
12 | | subsequent amendment to this Code, every new benefit increase |
13 | | is subject to this Section and shall be deemed to be granted |
14 | | only in conformance with and contingent upon compliance with |
15 | | the provisions of this Section.
|
16 | | (c) The Public Act enacting a new benefit increase must |
17 | | identify and provide for payment to the System of additional |
18 | | funding at least sufficient to fund the resulting annual |
19 | | increase in cost to the System as it accrues. |
20 | | Every new benefit increase is contingent upon the General |
21 | | Assembly providing the additional funding required under this |
22 | | subsection. The Commission on Government Forecasting and |
23 | | Accountability shall analyze whether adequate additional |
24 | | funding has been provided for the new benefit increase and |
25 | | shall report its analysis to the Public Pension Division of the |
26 | | Department of Insurance Financial and Professional Regulation . |
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1 | | A new benefit increase created by a Public Act that does not |
2 | | include the additional funding required under this subsection |
3 | | is null and void. If the Public Pension Division determines |
4 | | that the additional funding provided for a new benefit increase |
5 | | under this subsection is or has become inadequate, it may so |
6 | | certify to the Governor and the State Comptroller and, in the |
7 | | absence of corrective action by the General Assembly, the new |
8 | | benefit increase shall expire at the end of the fiscal year in |
9 | | which the certification is made.
|
10 | | (d) Every new benefit increase shall expire 5 years after |
11 | | its effective date or on such earlier date as may be specified |
12 | | in the language enacting the new benefit increase or provided |
13 | | under subsection (c). This does not prevent the General |
14 | | Assembly from extending or re-creating a new benefit increase |
15 | | by law. |
16 | | (e) Except as otherwise provided in the language creating |
17 | | the new benefit increase, a new benefit increase that expires |
18 | | under this Section continues to apply to persons who applied |
19 | | and qualified for the affected benefit while the new benefit |
20 | | increase was in effect and to the affected beneficiaries and |
21 | | alternate payees of such persons, but does not apply to any |
22 | | other person, including without limitation a person who |
23 | | continues in service after the expiration date and did not |
24 | | apply and qualify for the affected benefit while the new |
25 | | benefit increase was in effect.
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26 | | (Source: P.A. 94-4, eff. 6-1-05.) |
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1 | | (40 ILCS 5/15-200.1 new) |
2 | | Sec. 15-200.1. Defined contribution plan. |
3 | | (a) By July 1, 2018, the System shall prepare and implement |
4 | | a voluntary defined contribution plan for up to 5% of eligible |
5 | | Tier 1 employees. The System shall determine the 5% cap by the |
6 | | number of Tier 1 employees on the effective date of this |
7 | | Section. The defined contribution plan developed under this |
8 | | Section shall be a plan that aggregates employer and employee |
9 | | contributions in individual participant accounts which, after |
10 | | meeting any other requirements, are used for payouts after |
11 | | retirement in accordance with this Section and any other |
12 | | applicable laws. |
13 | | As used in this Section, "defined benefit plan" means the |
14 | | retirement plan available under this Article to Tier 1 |
15 | | employees who have not made the election authorized under this |
16 | | Section. |
17 | | (1) Under the defined contribution plan, a
Tier 1 |
18 | | employee of this System could elect to cease accruing |
19 | | benefits in the defined benefit plan under this Article and |
20 | | begin accruing benefits for future service in the defined |
21 | | contribution plan. Service credit under the defined |
22 | | contribution plan may be used for determining retirement |
23 | | eligibility under the defined benefit plan. A Tier 1 |
24 | | employee who elects to cease accruing benefits in his or |
25 | | her defined benefit plan shall be prohibited from |
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1 | | purchasing service credit on or after the date of his or |
2 | | her election. A Tier 1 employee making the irrevocable |
3 | | election provided under this Section shall not receive |
4 | | interest accruals to his or her Rule 2 benefit on or after |
5 | | the date of his or her election. |
6 | | (2) Participants in the defined contribution plan
|
7 | | shall pay employee contributions at the same rate as other |
8 | | participants under this Article as determined by the |
9 | | System. |
10 | | (3) State contributions shall be paid into the
accounts |
11 | | of all participants in the defined contribution plan at a |
12 | | uniform rate, expressed as a percentage of earnings and |
13 | | determined for each year. This rate shall be no higher than |
14 | | the employer's normal cost for Tier 1 employees in the |
15 | | defined benefit plan for that year, as determined by the |
16 | | System and expressed as a percentage of earnings, and shall |
17 | | be no lower than 3% of earnings. The State shall adjust |
18 | | this rate annually. |
19 | | (4) The defined contribution plan shall require 5
years |
20 | | of participation in the defined contribution plan before |
21 | | vesting in State contributions. If the participant fails to |
22 | | vest in them, the State contributions, and the earnings |
23 | | thereon, shall be forfeited. |
24 | | (5) The defined contribution plan may provide for
|
25 | | participants in the plan to be eligible for the defined |
26 | | disability benefits available to other participants under |
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1 | | this Article. If it does, the System shall reduce the |
2 | | employee contributions credited to the member's defined |
3 | | contribution plan account by an amount determined by the |
4 | | System to cover the cost of offering such benefits. |
5 | | (6) The defined contribution plan shall provide a
|
6 | | variety of options for investments. These options shall |
7 | | include investments handled by the System as well as |
8 | | private sector investment options. |
9 | | (7) The defined contribution plan shall provide a
|
10 | | variety of options for payouts to retirees and their |
11 | | survivors. |
12 | | (8) To the extent authorized under federal law and
as |
13 | | authorized by the System, the plan shall allow former |
14 | | participants in the plan to transfer or roll over employee |
15 | | and vested State contributions, and the earnings thereon, |
16 | | into other qualified retirement plans. |
17 | | (9) The System shall reduce the employee
contributions |
18 | | credited to the member's defined contribution plan account |
19 | | by an amount determined by the System to cover the cost of |
20 | | offering these benefits and any applicable administrative |
21 | | fees. |
22 | | (b) Only persons who are Tier 1 employees of the System on |
23 | | the effective date of this Section are eligible to participate |
24 | | in the defined contribution plan. Participation in the defined |
25 | | contribution plan shall be limited to the first 5% of eligible |
26 | | persons who elect to participate. The election to participate |
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1 | | in the defined contribution plan is voluntary and irrevocable. |
2 | | (c) An eligible Tier 1 employee may irrevocably elect to |
3 | | participate in the defined contribution plan by filing with the |
4 | | System a written application to participate that is received by |
5 | | the System prior to its determination that 5% of eligible |
6 | | persons have elected to participate in the defined contribution |
7 | | plan. |
8 | | When the System first determines that 5% of eligible |
9 | | persons have elected to participate in the defined contribution |
10 | | plan, the System shall provide notice to previously eligible |
11 | | employees that the plan is no longer available and shall cease |
12 | | accepting applications to participate. |
13 | | (d) The System shall make a good faith effort to contact |
14 | | each Tier 1 employee who is eligible to participate in the |
15 | | defined contribution plan. The System shall mail information |
16 | | describing the option to join the defined contribution plan to |
17 | | each of these employees to his or her last known address on |
18 | | file with the System. If the employee is not responsive to |
19 | | other means of contact, it is sufficient for the System to |
20 | | publish the details of the option on its website. |
21 | | Upon request for further information describing the |
22 | | option, the System shall provide employees with information |
23 | | from the System before exercising the option to join the plan, |
24 | | including information on the impact to their vested benefits or |
25 | | non-vested service. The individual consultation shall include |
26 | | projections of the member's defined benefits at retirement or |
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1 | | earlier termination of service and the value of the member's |
2 | | account at retirement or earlier termination of service. The |
3 | | System shall not provide advice or counseling with respect to |
4 | | whether the employee should exercise the option. The System |
5 | | shall inform Tier 1 employees who are eligible to participate |
6 | | in the defined contribution plan that they may also wish to |
7 | | obtain information and counsel relating to their option from |
8 | | any other available source, including but not limited to labor |
9 | | organizations, private counsel, and financial advisors. |
10 | | (e) In no event shall the System, its staff, its authorized |
11 | | representatives, or the Board be liable for any information |
12 | | given to an employee under this Section. The System may |
13 | | coordinate with the Illinois Department of Central Management |
14 | | Services and other retirement systems administering a defined |
15 | | contribution plan in accordance with this amendatory Act of the |
16 | | 100th General Assembly to provide information concerning the |
17 | | impact of the option set forth in this Section. |
18 | | (f) Notwithstanding any other provision of this Section, no |
19 | | person shall begin participating in the defined contribution |
20 | | plan until it has attained qualified plan status and received |
21 | | all necessary approvals from the U.S. Internal Revenue Service. |
22 | | (g) The System shall report on its progress under this |
23 | | Section, including the available details of the defined |
24 | | contribution plan and the System's plans for informing eligible |
25 | | Tier 1 employees about the plan, to the Governor and the |
26 | | General Assembly on or before January 15, 2018. |
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1 | | (h) If a Tier 1 employee has not made an election under |
2 | | Section 15-134.5 of this Code, then the plan prescribed under |
3 | | this Section shall not apply to that Tier 1 employee and that |
4 | | Tier 1 employee shall remain eligible to make the election |
5 | | prescribed under Section 15-134.5. |
6 | | (i) The intent of this amendatory Act of the 100th General |
7 | | Assembly is to ensure that the State's normal cost of |
8 | | participation in the defined contribution plan is similar, and |
9 | | if possible equal, to the State's normal cost of participation |
10 | | in the defined benefit plan, unless a lower State's normal cost |
11 | | is necessary to ensure cost neutrality. |
12 | | (40 ILCS 5/15-201.1 new) |
13 | | Sec. 15-201.1. Defined contribution plan; termination. If |
14 | | the defined contribution plan is terminated or becomes |
15 | | inoperative pursuant to law, then each participant in the plan |
16 | | shall automatically be deemed to have been a contributing Tier |
17 | | 1 employee participating in the System's defined benefit plan |
18 | | during the time in which he or she participated in the defined |
19 | | contribution plan, and for that purpose the System shall be |
20 | | entitled to recover the amounts in the participant's defined |
21 | | contribution accounts. |
22 | | (40 ILCS 5/16-107.1 new) |
23 | | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A |
24 | | teacher under this Article who first became a member or |
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1 | | participant before January 1, 2011 under any reciprocal |
2 | | retirement system or pension fund established under this Code |
3 | | other than a retirement system or pension fund established |
4 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for |
5 | | the purposes of the election under Section 16-122.9, "Tier 1 |
6 | | employee" does not include a teacher under this Article who |
7 | | would qualify as a Tier 1 employee but who has made an |
8 | | irrevocable election on or before June 1, 2017 to retire from |
9 | | service pursuant to the terms of an employment contract or a |
10 | | collective bargaining agreement in effect on June 1, 2017, |
11 | | excluding any extension, amendment, or renewal of that |
12 | | agreement after that date, and has notified the System of that |
13 | | election.
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14 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
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15 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
16 | | which has been held unconstitutional)
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17 | | Sec. 16-121. Salary. "Salary": The actual compensation |
18 | | received by a teacher during any
school year and recognized by |
19 | | the system in accordance with
rules of the board. For purposes |
20 | | of this Section, "school year" includes
the regular school term |
21 | | plus any additional period for which a teacher is
compensated |
22 | | and such compensation is recognized by the rules of the board.
|
23 | | Notwithstanding any other provision of this Section, |
24 | | "salary" does not include any future increase in income that is |
25 | | offered by an employer for service as a Tier 1 employee under |
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1 | | this Article pursuant to the condition set forth in subsection |
2 | | (c) of Section 16-122.9 and accepted under that condition by a |
3 | | Tier 1 employee who has made the election under paragraph (2) |
4 | | of subsection (a) of Section 16-122.9. |
5 | | Notwithstanding any other provision of this Section, |
6 | | "salary" does not include any consideration payment made to a |
7 | | Tier 1 employee. |
8 | | (Source: P.A. 84-1028.)
|
9 | | (40 ILCS 5/16-121.1 new) |
10 | | Sec. 16-121.1. Future increase in income. "Future increase |
11 | | in income" means an increase to a Tier 1 employee's base pay |
12 | | that is offered by an employer to the Tier 1 employee for |
13 | | service under this Article after June 30, 2018 that qualifies |
14 | | as "salary", as defined in Section 16-121, or would qualify as |
15 | | "salary" but for the fact that it was offered to and accepted |
16 | | by the Tier 1 employee under the condition set forth in |
17 | | subsection (c) of Section 16-122.9. The term "future increase |
18 | | in income" includes an increase to a Tier 1 employee's base pay |
19 | | that is paid to the Tier 1 employee pursuant to an extension, |
20 | | amendment, or renewal of any such employment contract or |
21 | | collective bargaining agreement after the effective date of |
22 | | this Section. |
23 | | (40 ILCS 5/16-121.2 new) |
24 | | Sec. 16-121.2. Base pay. As used in Section 16-121.1 of |
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1 | | this Code, "base pay" means the greater of either (i) the Tier |
2 | | 1 employee's annualized rate of salary as of June 30, 2018, or |
3 | | (ii) the Tier 1 employee's annualized rate of salary |
4 | | immediately preceding the expiration, renewal, or amendment of |
5 | | an employment contract or collective bargaining agreement in |
6 | | effect on the effective date of this Section. For a person |
7 | | returning to active service as a Tier 1 employee after June 30, |
8 | | 2018, however, "base pay" means the employee's annualized rate |
9 | | of salary as of the employee's last date of service prior to |
10 | | July 1, 2018. The System shall calculate the base pay of each |
11 | | Tier 1 employee pursuant to this Section. |
12 | | (40 ILCS 5/16-122.9 new) |
13 | | Sec. 16-122.9. Election by Tier 1 employees. |
14 | | (a) Each active Tier 1 employee shall make an irrevocable |
15 | | election either: |
16 | | (1) to agree to delay his or her eligibility for |
17 | | automatic annual increases in retirement annuity as |
18 | | provided in subsection (a-1) of Section 16-133.1 or |
19 | | subsection (b-1) of Section 16-136.1, whichever is |
20 | | applicable, and to have the amount of the automatic annual |
21 | | increases in his or her retirement annuity and survivor |
22 | | benefit that are otherwise provided for in this Article |
23 | | calculated, instead, as provided in subsection (a-1) of |
24 | | Section 16-133.1 or subsection (b-1) of Section 16-136.1, |
25 | | whichever is applicable; or |
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1 | | (2) to not agree to paragraph (1) of this subsection. |
2 | | The election required under this subsection (a) shall be |
3 | | made by each active Tier 1 employee no earlier than January 1, |
4 | | 2018 and no later than March 31, 2018, except that: |
5 | | (i) a person who becomes a Tier 1 employee under this |
6 | | Article on or after February 1, 2018 must make the election |
7 | | under this subsection (a) within 60 days after becoming a |
8 | | Tier 1 employee; and |
9 | | (ii) a person who returns to active service as a Tier 1 |
10 | | employee under this Article on or after February 1, 2018 |
11 | | and has not yet made an election under this Section must |
12 | | make the election under this subsection (a) within 60 days |
13 | | after returning to active service as a Tier 1 employee. |
14 | | If a Tier 1 employee fails for any reason to make a |
15 | | required election under this subsection within the time |
16 | | specified, then the employee shall be deemed to have made the |
17 | | election under paragraph (2) of this subsection. |
18 | | (a-5) If this Section is enjoined or stayed by an Illinois |
19 | | court or a court of competent jurisdiction pending the entry of |
20 | | a final and unappealable decision, and this Section is |
21 | | determined to be constitutional or otherwise valid by a final |
22 | | unappealable decision of an Illinois court or a court of |
23 | | competent jurisdiction, then the election procedure set forth |
24 | | in subsection (a) of this Section shall commence on the 180th |
25 | | calendar day after the date of the issuance of the final |
26 | | unappealable decision and shall conclude at the end of the |
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1 | | 270th calendar day after that date. |
2 | | (a-10) All elections under subsection (a) that are made or |
3 | | deemed to be made before July 1, 2018 shall take effect on July |
4 | | 1, 2018. Elections that are made or deemed to be made on or |
5 | | after July 1, 2018 shall take effect on the first day of the |
6 | | month following the month in which the election is made or |
7 | | deemed to be made. |
8 | | (b) As adequate and legal consideration provided under this |
9 | | amendatory Act of the 100th General Assembly for making an |
10 | | election under paragraph (1) of subsection (a) of this Section, |
11 | | an employer shall be expressly and irrevocably prohibited from |
12 | | offering any future increases in income to a Tier 1 employee |
13 | | who has made an election under paragraph (1) of subsection (a) |
14 | | of this Section on the condition of not constituting salary |
15 | | under Section 16-121. |
16 | | As adequate and legal consideration provided under this |
17 | | amendatory Act of the 100th General Assembly for making an |
18 | | election under paragraph (1) of subsection (a) of this Section, |
19 | | each Tier 1 employee who has made an election under paragraph |
20 | | (1) of subsection (a) of this Section shall receive a |
21 | | consideration payment equal to 10% of the contributions made by |
22 | | or on behalf of the employee under paragraphs (1), (2), and (3) |
23 | | of subsection (a) of Section 16-152 before the effective date |
24 | | of that election. The State Comptroller shall pay the |
25 | | consideration payment to the Tier 1 employee out of funds |
26 | | appropriated for that purpose under Section 1.9 of the State |
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1 | | Pension Funds Continuing Appropriation Act. The System shall |
2 | | calculate the amount of each consideration payment and, by July |
3 | | 1, 2018, shall certify to the State Comptroller the amount of |
4 | | the consideration payment, together with the name, address, and |
5 | | any other available payment information of the Tier 1 employee |
6 | | as found in the records of the System. The System shall make |
7 | | additional calculations and certifications of consideration |
8 | | payments to the State Comptroller as the System deems |
9 | | necessary. |
10 | | (c) A Tier 1 employee who makes the election under |
11 | | paragraph (2) of subsection (a) of this Section shall not be |
12 | | subject to paragraph (1) of subsection (a) of this Section. |
13 | | However, each future increase in income offered by an employer |
14 | | under this Article to a Tier 1 employee who has made the |
15 | | election under paragraph (2) of subsection (a) of this Section |
16 | | shall be offered by the employer expressly and irrevocably on |
17 | | the condition of not constituting salary under Section 16-121 |
18 | | and that the Tier 1 employee's acceptance of the offered future |
19 | | increase in income shall constitute his or her agreement to |
20 | | that condition. |
21 | | (d) The System shall make a good faith effort to contact |
22 | | each Tier 1 employee subject to this Section. The System shall |
23 | | mail information describing the required election to each Tier |
24 | | 1 employee by United States Postal Service mail to his or her |
25 | | last known address on file with the System. If the Tier 1 |
26 | | employee is not responsive to other means of contact, it is |
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1 | | sufficient for the System to publish the details of any |
2 | | required elections on its website or to publish those details |
3 | | in a regularly published newsletter or other existing public |
4 | | forum. |
5 | | Tier 1 employees who are subject to this Section shall be |
6 | | provided with an election packet containing information |
7 | | regarding their options, as well as the forms necessary to make |
8 | | the required election. Upon request, the System shall offer |
9 | | Tier 1 employees an opportunity to receive information from the |
10 | | System before making the required election. The information may |
11 | | consist of video materials, group presentations, individual |
12 | | consultation with a member or authorized representative of the |
13 | | System in person or by telephone or other electronic means, or |
14 | | any combination of those methods. The System shall not provide |
15 | | advice or counseling with respect to which election a Tier 1 |
16 | | employee should make or specific to the legal or tax |
17 | | circumstances of or consequences to the Tier 1 employee. |
18 | | The System shall inform Tier 1 employees in the election |
19 | | packet required under this subsection that the Tier 1 employee |
20 | | may also wish to obtain information and counsel relating to the |
21 | | election required under this Section from any other available |
22 | | source, including, but not limited to, labor organizations and |
23 | | private counsel. |
24 | | In no event shall the System, its staff, or the Board be |
25 | | held liable for any information given to a member regarding the |
26 | | elections under this Section. The System shall coordinate with |
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1 | | the Illinois Department of Central Management Services and each |
2 | | other retirement system administering an election in |
3 | | accordance with this amendatory Act of the 100th General |
4 | | Assembly to provide information concerning the impact of the |
5 | | election set forth in this Section. |
6 | | (e) Notwithstanding any other provision of law, an employer |
7 | | under this Article is required to offer each future increase in |
8 | | income expressly and irrevocably on the condition of not |
9 | | constituting "salary" under Section 16-121 to any Tier 1 |
10 | | employee who has made an election under paragraph (2) of |
11 | | subsection (a) of this Section. The offer shall also provide |
12 | | that the Tier 1 employee's acceptance of the offered future |
13 | | increase in income shall constitute his or her agreement to the |
14 | | condition set forth in this subsection. |
15 | | For purposes of legislative intent, the condition set forth |
16 | | in this subsection shall be construed in a manner that ensures |
17 | | that the condition is not violated or circumvented through any |
18 | | contrivance of any kind. |
19 | | (f) A member's election under this Section is not a |
20 | | prohibited election under subdivision (j)(1) of Section 1-119 |
21 | | of this Code. |
22 | | (g) No provision of this Section shall be interpreted in a |
23 | | way that would cause the System to cease to be a qualified plan |
24 | | under Section 401(a) of the Internal Revenue Code of 1986. |
25 | | (h) If an election created by this amendatory Act in any |
26 | | other Article of this Code or any change deriving from that |
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1 | | election is determined to be unconstitutional or otherwise |
2 | | invalid by a final unappealable decision of an Illinois court |
3 | | or a court of competent jurisdiction, the invalidity of that |
4 | | provision shall not in any way affect the validity of this |
5 | | Section or the changes deriving from the election required |
6 | | under this Section.
|
7 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
|
8 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
9 | | which has been held unconstitutional)
|
10 | | Sec. 16-133.1. Automatic annual increase in annuity.
|
11 | | (a) Each member with creditable service and retiring on or |
12 | | after August 26,
1969 is entitled to the automatic annual |
13 | | increases in annuity provided under
this Section while |
14 | | receiving a retirement annuity or disability retirement
|
15 | | annuity from the system.
|
16 | | Except as otherwise provided in subsection (a-1), an An |
17 | | annuitant shall first be entitled to an initial increase under |
18 | | this
Section on the January 1 next following the first |
19 | | anniversary of retirement,
or January 1 of the year next |
20 | | following attainment of age 61, whichever is
later. At such |
21 | | time, the system shall pay an initial increase determined as
|
22 | | follows:
|
23 | | (1) 1.5% of the originally granted retirement annuity |
24 | | or disability
retirement annuity multiplied by the number |
25 | | of years elapsed, if any, from the date of retirement
until |
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1 | | January 1, 1972, plus
|
2 | | (2) 2% of the originally granted annuity multiplied by |
3 | | the number of
years elapsed, if any, from the date of |
4 | | retirement or January
1, 1972, whichever is later, until |
5 | | January 1, 1978, plus
|
6 | | (3) 3% of the originally granted annuity multiplied by |
7 | | the number
of years elapsed from the date of retirement or |
8 | | January 1,
1978, whichever is later, until the effective |
9 | | date of the initial
increase.
|
10 | | However, the initial annual increase calculated under this |
11 | | Section for the
recipient of a disability retirement annuity |
12 | | granted under Section 16-149.2
shall be reduced by an amount |
13 | | equal to the total of all increases in that
annuity received |
14 | | under Section 16-149.5 (but not exceeding 100% of the amount
of |
15 | | the initial increase otherwise provided under this Section).
|
16 | | Except as otherwise provided in subsection (a-1), |
17 | | following Following the initial increase, automatic annual |
18 | | increases in annuity shall
be payable on each January 1 |
19 | | thereafter during the lifetime of the annuitant,
determined as |
20 | | a percentage of the originally granted retirement annuity
or |
21 | | disability retirement annuity for increases granted prior to |
22 | | January
1, 1990, and calculated as a percentage of the total |
23 | | amount of annuity,
including previous increases under this |
24 | | Section, for increases granted on
or after January 1, 1990, as |
25 | | follows: 1.5% for periods prior to January 1,
1972, 2% for |
26 | | periods after December 31, 1971 and prior to January 1, 1978,
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1 | | and 3% for periods after December 31, 1977.
|
2 | | (a-1) Notwithstanding any other provision of this Article, |
3 | | for a Tier 1 employee who made the election under paragraph (1) |
4 | | of subsection (a) of Section 16-122.9: |
5 | | (1) The initial increase in retirement annuity under |
6 | | this Section shall occur on the January 1 occurring either |
7 | | on or after the attainment of age 67 or the fifth |
8 | | anniversary of the annuity start date, whichever is |
9 | | earlier. |
10 | | (2) The amount of each automatic annual increase in |
11 | | retirement annuity and survivor benefit occurring on or |
12 | | after the effective date of that election shall be |
13 | | calculated as a percentage of the originally granted |
14 | | retirement annuity or survivor benefit, equal to 3% or |
15 | | one-half the annual unadjusted percentage increase (but |
16 | | not less than zero) in the consumer price index-u for the |
17 | | 12 months ending with the September preceding each November |
18 | | 1, whichever is less. If the annual unadjusted percentage |
19 | | change in the consumer price index-u for the 12 months |
20 | | ending with the September preceding each November 1 is zero |
21 | | or there is a decrease, then the annuity shall not be |
22 | | increased. |
23 | | For the purposes of this Section, "consumer price index-u" |
24 | | means
the index published by the Bureau of Labor Statistics of |
25 | | the United States
Department of Labor that measures the average |
26 | | change in prices of goods and
services purchased by all urban |
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1 | | consumers, United States city average, all
items, 1982-84 = |
2 | | 100. The new amount resulting from each annual adjustment
shall |
3 | | be determined by the Public Pension Division of the Department |
4 | | of Insurance and made available to the board of the retirement |
5 | | system by November 1 of each year. |
6 | | (b) The automatic annual increases in annuity provided |
7 | | under this Section
shall not be applicable unless a member has |
8 | | made contributions toward such
increases for a period |
9 | | equivalent to one full year of creditable service.
If a member |
10 | | contributes for service performed after August 26, 1969 but
the |
11 | | member becomes an annuitant before such contributions amount to |
12 | | one
full year's contributions based on the salary at the date |
13 | | of retirement,
he or she may pay the necessary balance of the |
14 | | contributions to the system
and be eligible for the automatic |
15 | | annual increases in annuity provided under
this Section.
|
16 | | (c) Each member shall make contributions toward the cost of |
17 | | the automatic
annual increases in annuity as provided under |
18 | | Section 16-152.
|
19 | | (d) An annuitant receiving a retirement annuity or |
20 | | disability retirement
annuity on July 1, 1969, who subsequently |
21 | | re-enters service as a teacher
is eligible for the automatic |
22 | | annual increases in annuity provided under
this Section if he |
23 | | or she renders at least one year of creditable service
|
24 | | following the latest re-entry.
|
25 | | (e) In addition to the automatic annual increases in |
26 | | annuity provided
under this Section, an annuitant who meets the |
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1 | | service requirements of this
Section and whose retirement |
2 | | annuity or disability retirement annuity began
on or before |
3 | | January 1, 1971 shall receive, on January 1, 1981, an increase
|
4 | | in the annuity then being paid of one dollar per month for each |
5 | | year of
creditable service. On January 1, 1982, an annuitant |
6 | | whose retirement
annuity or disability retirement annuity |
7 | | began on or before January 1, 1977
shall receive an increase in |
8 | | the annuity then being paid of one dollar per
month for each |
9 | | year of creditable service.
|
10 | | On January 1, 1987, any annuitant whose retirement annuity |
11 | | began
on or before January 1, 1977, shall receive an increase |
12 | | in the monthly
retirement annuity equal to 8¢ per year of |
13 | | creditable service times the
number of years that have elapsed |
14 | | since the annuity began.
|
15 | | (Source: P.A. 91-927, eff. 12-14-00.)
|
16 | | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
|
17 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
18 | | which has been held unconstitutional)
|
19 | | Sec. 16-136.1. Annual increase for certain annuitants. |
20 | | (a) Any annuitant receiving a retirement annuity on June |
21 | | 30, 1969 and
any member retiring after June 30, 1969 shall be |
22 | | eligible for the annual
increases provided under this Section |
23 | | provided the annuitant is ineligible
for the automatic annual |
24 | | increase in annuity provided under Section
16-133.1, and |
25 | | provided further that (1) retirement occurred at age 55 or over
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1 | | and was based on 5 or more years of creditable service or (2) |
2 | | if
retirement occurred prior to age 55, the retirement annuity
|
3 | | was based on 20 or more years of creditable service.
|
4 | | (b) Except as otherwise provided in subsection (b-1), an An |
5 | | annuitant entitled to increases under this Section shall be |
6 | | entitled
to the initial increase as of the later of: (1) |
7 | | January 1 following
attainment of age 65, (2) January 1 |
8 | | following the first anniversary
of retirement, or (3) the first |
9 | | day of the month following receipt of
the required qualifying |
10 | | contribution from the annuitant. The initial monthly
increase |
11 | | shall be computed on the basis of the period elapsed between
|
12 | | the later of the date of last retirement or attainment of age |
13 | | 50 and the
date of qualification for the initial increase, at |
14 | | the rate of 1 1/2% of
the original monthly retirement annuity |
15 | | per year for periods
prior to September 1, 1971, and at the |
16 | | rate of 2% per year for periods between
September 1, 1971 and |
17 | | September 1, 1978, and at the rate of 3% per year
for periods |
18 | | thereafter.
|
19 | | Except as otherwise provided in subsection (b-1), if |
20 | | applicable, an An annuitant who has received an initial |
21 | | increase under this Section ,
shall be entitled, on each January |
22 | | 1 following the granting of the
initial increase, to an |
23 | | increase of 3% of the original monthly retirement
annuity for |
24 | | increases granted prior to January 1, 1990, and equal to 3%
of |
25 | | the total annuity, including previous increases under this |
26 | | Section, for
increases granted on or after January 1, 1990. The |
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1 | | original monthly
retirement annuity for computations under |
2 | | this subsection
(b) shall be considered to be $83.34 for any |
3 | | annuitant entitled to benefits
under Section 16-134. The |
4 | | minimum original disability retirement annuity
for |
5 | | computations under this subsection (b) shall be considered to |
6 | | be
$33.34 per month for any annuitant retired on account of |
7 | | disability.
|
8 | | (b-1) Notwithstanding any other provision of this Article, |
9 | | for a Tier 1 employee who made the election under paragraph (1) |
10 | | of subsection (a) of Section 16-122.9: |
11 | | (1) The initial increase in retirement annuity under |
12 | | this Section shall occur on the January 1 occurring either |
13 | | on or after the attainment of age 67 or the fifth |
14 | | anniversary of the annuity start date, whichever is |
15 | | earlier. |
16 | | (2) The amount of each automatic annual increase in |
17 | | retirement annuity or survivor benefit occurring on or |
18 | | after the effective date of that election shall be |
19 | | calculated as a percentage of the originally granted |
20 | | retirement annuity or survivor benefit, equal to 3% or |
21 | | one-half the annual unadjusted percentage increase (but |
22 | | not less than zero) in the consumer price index-u for the |
23 | | 12 months ending with the September preceding each November |
24 | | 1, whichever is less. If the annual unadjusted percentage |
25 | | change in the consumer price index-u for the 12 months |
26 | | ending with the September preceding each November 1 is zero |
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1 | | or there is a decrease, then the annuity shall not be |
2 | | increased. |
3 | | For the purposes of this Section, "consumer price index-u" |
4 | | means
the index published by the Bureau of Labor Statistics of |
5 | | the United States
Department of Labor that measures the average |
6 | | change in prices of goods and
services purchased by all urban |
7 | | consumers, United States city average, all
items, 1982-84 = |
8 | | 100. The new amount resulting from each annual adjustment
shall |
9 | | be determined by the Public Pension Division of the Department |
10 | | of Insurance and made available to the board of the retirement |
11 | | system by November 1 of each year. |
12 | | (c) An annuitant who otherwise qualifies for annual
|
13 | | increases under this Section must make a one-time payment of
1% |
14 | | of the monthly final average salary for each full year of the |
15 | | creditable
service forming the basis of the retirement annuity |
16 | | or, if the
retirement annuity was not computed using final |
17 | | average salary, 1% of the
original monthly retirement annuity |
18 | | for each full year of service
forming the basis of the |
19 | | retirement annuity.
|
20 | | (d) In addition to other increases which may be provided by |
21 | | this Section,
regardless of creditable service, annuitants not |
22 | | meeting
the service requirements of Section 16-133.1 and whose |
23 | | retirement annuity
began on or before January 1, 1971 shall |
24 | | receive, on January
1, 1981, an increase in the retirement |
25 | | annuity then being paid
of one dollar per month for each year |
26 | | of creditable service forming
the basis of the retirement |
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1 | | allowance. On January 1, 1982, annuitants
whose retirement |
2 | | annuity began on or before January 1, 1977, shall receive
an |
3 | | increase in the retirement annuity then being paid of one |
4 | | dollar per
month for each year of creditable service.
|
5 | | On January 1, 1987, any annuitant whose retirement annuity |
6 | | began
on or before January 1, 1977, shall receive an increase |
7 | | in the monthly
retirement annuity equal to 8¢ per year of |
8 | | creditable service times the
number of years that have elapsed |
9 | | since the annuity began.
|
10 | | (Source: P.A. 86-273.)
|
11 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
|
12 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
13 | | which has been held unconstitutional)
|
14 | | Sec. 16-152. Contributions by members.
|
15 | | (a) Except as otherwise provided in subsection (a-5), each |
16 | | Each member shall make contributions for membership service to |
17 | | this
System as follows:
|
18 | | (1) Effective July 1, 1998, contributions of 7.50% of |
19 | | salary towards the
cost of the retirement annuity. Such |
20 | | contributions shall be deemed "normal
contributions".
|
21 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% |
22 | | of salary toward
the cost of the automatic annual increase |
23 | | in retirement annuity provided
under Section 16-133.1.
|
24 | | (3) Effective July 24, 1959, contributions of 1% of |
25 | | salary towards the
cost of survivor benefits. Such |
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1 | | contributions shall not be credited to
the individual |
2 | | account of the member and shall not be subject to refund
|
3 | | except as provided under Section 16-143.2.
|
4 | | (4) Effective July 1, 2005, contributions of 0.40% of |
5 | | salary toward the cost of the early retirement without |
6 | | discount option provided under Section 16-133.2. This |
7 | | contribution shall cease upon termination of the early |
8 | | retirement without discount option as provided in Section |
9 | | 16-133.2.
|
10 | | (a-5) Beginning July 1, 2018 or the effective date of the |
11 | | Tier 1 employee's election under paragraph (1) of subsection |
12 | | (a) of Section 16-122.9, whichever is later, in lieu of the |
13 | | contributions otherwise required under subsection (a), each |
14 | | Tier 1 employee who made the election under paragraph (1) of |
15 | | subsection (a) of Section 16-122.9 shall make contributions as |
16 | | follows: |
17 | | (1) Contributions of 7.50% of salary towards the cost |
18 | | of the retirement annuity. Such contributions shall be |
19 | | deemed "normal contributions". |
20 | | (2) Contributions of 0.60% towards the cost of survivor |
21 | | benefits. Such contributions shall not be credited to the |
22 | | individual account of the member and shall not be subject |
23 | | to refund except as provided in Section 16-143.2. |
24 | | (3) Contributions of 0.40% of salary toward the cost of |
25 | | the early retirement without discount option provided |
26 | | under Section 16-133.2. This contribution shall cease upon |
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1 | | termination of the early retirement without discount |
2 | | option as provided in Section 16-133.2. |
3 | | (b) The minimum required contribution for any year of |
4 | | full-time
teaching service shall be $192.
|
5 | | (c) Contributions shall not be required of any annuitant |
6 | | receiving
a retirement annuity who is given employment as |
7 | | permitted under Section 16-118 or 16-150.1.
|
8 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
9 | | retires with
more than 34 years of creditable service, and |
10 | | (iii) does not elect to qualify
for the augmented rate under |
11 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
12 | | to receive a partial refund of contributions made under this
|
13 | | Section for service occurring after the later of June 30, 1998 |
14 | | or attainment
of 34 years of creditable service, in an amount |
15 | | equal to 1.00% of the salary
upon which those contributions |
16 | | were based.
|
17 | | (e) A member's contributions toward the cost of early |
18 | | retirement without discount made under item (a)(4) of this |
19 | | Section shall not be refunded if the member has elected early |
20 | | retirement without discount under Section 16-133.2 and has |
21 | | begun to receive a retirement annuity under this Article |
22 | | calculated in accordance with that election. Otherwise, a |
23 | | member's contributions toward the cost of early retirement |
24 | | without discount made under item (a)(4) of this Section shall |
25 | | be refunded according to whichever one of the following |
26 | | circumstances occurs first: |
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1 | | (1) The contributions shall be refunded to the member, |
2 | | without interest, within 120 days after the member's |
3 | | retirement annuity commences, if the member does not elect |
4 | | early retirement without discount under Section 16-133.2. |
5 | | (2) The contributions shall be included, without |
6 | | interest, in any refund claimed by the member under Section |
7 | | 16-151. |
8 | | (3) The contributions shall be refunded to the member's |
9 | | designated beneficiary (or if there is no beneficiary, to |
10 | | the member's estate), without interest, if the member dies |
11 | | without having begun to receive a retirement annuity under |
12 | | this Article. |
13 | | (4) The contributions shall be refunded to the member, |
14 | | without interest, if the early retirement without discount |
15 | | option provided under subsection (d) of Section 16-133.2 is |
16 | | terminated. In that event, the System shall provide to the |
17 | | member, within 120 days after the option is terminated, an |
18 | | application for a refund of those contributions. |
19 | | (Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, |
20 | | eff. 7-28-16.)
|
21 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
|
22 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
23 | | which has been held unconstitutional)
|
24 | | Sec. 16-158. Contributions by State and other employing |
25 | | units.
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1 | | (a) The State shall make contributions to the System by |
2 | | means of
appropriations from the Common School Fund and other |
3 | | State funds of amounts
which, together with other employer |
4 | | contributions, employee contributions,
investment income, and |
5 | | other income, will be sufficient to meet the cost of
|
6 | | maintaining and administering the System on a 90% funded basis |
7 | | in accordance
with actuarial recommendations.
|
8 | | The Board shall determine the amount of State contributions |
9 | | required for
each fiscal year on the basis of the actuarial |
10 | | tables and other assumptions
adopted by the Board and the |
11 | | recommendations of the actuary, using the formula
in subsection |
12 | | (b-3).
|
13 | | (a-1) Annually, on or before November 15 until November 15, |
14 | | 2011, the Board shall certify to the
Governor the amount of the |
15 | | required State contribution for the coming fiscal
year. The |
16 | | certification under this subsection (a-1) shall include a copy |
17 | | of the actuarial recommendations
upon which it is based and |
18 | | shall specifically identify the System's projected State |
19 | | normal cost for that fiscal year.
|
20 | | On or before May 1, 2004, the Board shall recalculate and |
21 | | recertify to
the Governor the amount of the required State |
22 | | contribution to the System for
State fiscal year 2005, taking |
23 | | into account the amounts appropriated to and
received by the |
24 | | System under subsection (d) of Section 7.2 of the General
|
25 | | Obligation Bond Act.
|
26 | | On or before July 1, 2005, the Board shall recalculate and |
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1 | | recertify
to the Governor the amount of the required State
|
2 | | contribution to the System for State fiscal year 2006, taking |
3 | | into account the changes in required State contributions made |
4 | | by this amendatory Act of the 94th General Assembly.
|
5 | | On or before April 1, 2011, the Board shall recalculate and |
6 | | recertify to the Governor the amount of the required State |
7 | | contribution to the System for State fiscal year 2011, applying |
8 | | the changes made by Public Act 96-889 to the System's assets |
9 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
10 | | was approved on that date. |
11 | | (a-5) On or before November 1 of each year, beginning |
12 | | November 1, 2012, the Board shall submit to the State Actuary, |
13 | | the Governor, and the General Assembly a proposed certification |
14 | | of the amount of the required State contribution to the System |
15 | | for the next fiscal year, along with all of the actuarial |
16 | | assumptions, calculations, and data upon which that proposed |
17 | | certification is based. On or before January 1 of each year, |
18 | | beginning January 1, 2013, the State Actuary shall issue a |
19 | | preliminary report concerning the proposed certification and |
20 | | identifying, if necessary, recommended changes in actuarial |
21 | | assumptions that the Board must consider before finalizing its |
22 | | certification of the required State contributions. On or before |
23 | | January 15, 2013 and each January 15 thereafter, the Board |
24 | | shall certify to the Governor and the General Assembly the |
25 | | amount of the required State contribution for the next fiscal |
26 | | year. The Board's certification must note any deviations from |
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1 | | the State Actuary's recommended changes, the reason or reasons |
2 | | for not following the State Actuary's recommended changes, and |
3 | | the fiscal impact of not following the State Actuary's |
4 | | recommended changes on the required State contribution. |
5 | | On or before May 1, 2018, the Board shall recalculate and |
6 | | recertify
to the Governor and the General Assembly the amount |
7 | | of the required State
contribution to the System for State |
8 | | fiscal year 2019, taking into account the effect on the |
9 | | System's liabilities of the elections made under Section |
10 | | 16-122.9. |
11 | | On or before October 1, 2018, the Board shall recalculate |
12 | | and recertify to the Governor and the General Assembly the |
13 | | amount of the required State contribution to the System for |
14 | | State fiscal year 2019, taking into account the reduction |
15 | | specified under item (3) of subsection (b-3) of this Section. |
16 | | (a-10) For purposes of subsection (c-5) of Section 20 of |
17 | | the
Budget Stabilization Act, on or before November 1 of each |
18 | | year
beginning November 1, 2019, the Board shall determine the
|
19 | | amount of the State contribution to the System that would have
|
20 | | been required for the next fiscal year if Section 1-161, |
21 | | subsection (b-4) of Section 16-158, and the changes made to |
22 | | Section 1-160 by this amendatory Act of the 100th General |
23 | | Assembly had not taken effect, using the
best and most recent |
24 | | available data but based on the law in
effect on May 31, 2019. |
25 | | The Board shall submit to the State
Actuary, the Governor, and |
26 | | the General Assembly a proposed
certification, along with the |
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1 | | relevant law, actuarial
assumptions, calculations, and data |
2 | | upon which that
certification is based. On or before January 1, |
3 | | 2020 and every January 1 thereafter, the State Actuary shall |
4 | | issue a
preliminary report concerning the proposed |
5 | | certification and
identifying, if necessary, recommended |
6 | | changes in actuarial
assumptions that the Board must consider |
7 | | before finalizing its
certification. On or before January 15, |
8 | | 2020 and every January
1 thereafter, the Board shall certify to |
9 | | the Governor and the
General Assembly the amount of the State |
10 | | contribution to the
System that would have been required for |
11 | | the next fiscal year
if if Section 1-161, subsection (b-4) of |
12 | | Section 16-158, and the changes made to Section 1-160 by this |
13 | | amendatory Act of the 100th General Assembly had not taken |
14 | | effect, using the best and most recent available data but
based |
15 | | on the law in effect on May 31, 2019. The Board's
certification |
16 | | must note any deviations from the State Actuary's
recommended |
17 | | changes, the reason or reasons for not following
the State |
18 | | Actuary's recommended changes, and the impact of not
following |
19 | | the State Actuary's recommended changes. |
20 | | (a-15) As soon as practical after the effective date of |
21 | | this amendatory Act of the 100th General Assembly, the Board |
22 | | shall recalculate and recertify to the State Actuary, the |
23 | | Governor, and the General Assembly the amount of the State |
24 | | contribution to the System for State fiscal year 2018, taking |
25 | | into account the changes in required State contributions made |
26 | | by this amendatory Act of the 100th General Assembly. The State |
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1 | | Actuary shall review the assumptions and valuations underlying |
2 | | the Board's revised certification and issue a preliminary |
3 | | report concerning the proposed recertification and |
4 | | identifying, if necessary, recommended changes in actuarial |
5 | | assumptions that the Board must consider before finalizing its |
6 | | certification of the required State contributions. The Board's |
7 | | final certification must note any deviations from the State |
8 | | Actuary's recommended changes, the reason or reasons for not |
9 | | following the State Actuary's recommended changes, and the |
10 | | fiscal impact of not following the State Actuary's recommended |
11 | | changes on the required State contribution. |
12 | | (b) Through State fiscal year 1995, the State contributions |
13 | | shall be
paid to the System in accordance with Section 18-7 of |
14 | | the School Code.
|
15 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
16 | | of each month,
or as soon thereafter as may be practicable, the |
17 | | Board shall submit vouchers
for payment of State contributions |
18 | | to the System, in a total monthly amount of
one-twelfth of the |
19 | | required annual State contribution certified under
subsection |
20 | | (a-1).
From the
effective date of this amendatory Act of the |
21 | | 93rd General Assembly
through June 30, 2004, the Board shall |
22 | | not submit vouchers for the
remainder of fiscal year 2004 in |
23 | | excess of the fiscal year 2004
certified contribution amount |
24 | | determined under this Section
after taking into consideration |
25 | | the transfer to the System
under subsection (a) of Section |
26 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
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1 | | the State Comptroller and
Treasurer by warrants drawn on the |
2 | | funds appropriated to the System for that
fiscal year.
|
3 | | If in any month the amount remaining unexpended from all |
4 | | other appropriations
to the System for the applicable fiscal |
5 | | year (including the appropriations to
the System under Section |
6 | | 8.12 of the State Finance Act and Section 1 of the
State |
7 | | Pension Funds Continuing Appropriation Act) is less than the |
8 | | amount
lawfully vouchered under this subsection, the |
9 | | difference shall be paid from the
Common School Fund under the |
10 | | continuing appropriation authority provided in
Section 1.1 of |
11 | | the State Pension Funds Continuing Appropriation Act.
|
12 | | (b-2) Allocations from the Common School Fund apportioned |
13 | | to school
districts not coming under this System shall not be |
14 | | diminished or affected by
the provisions of this Article.
|
15 | | (b-3) For State fiscal years 2018 through 2045 (except as |
16 | | otherwise provided for fiscal year 2019), the minimum |
17 | | contribution to the System to be made by the State for each |
18 | | fiscal year shall be an amount determined by the System to be |
19 | | sufficient to bring the total assets of the System up to 90% of |
20 | | the total actuarial liabilities of the System by the end of |
21 | | State fiscal year 2045. In making these determinations, the |
22 | | required State contribution shall be calculated each year as a |
23 | | level percentage of total payroll, including payroll that is |
24 | | not deemed pensionable, but excluding payroll attributable to |
25 | | participants in the defined contribution plan under Section |
26 | | 16-205.1, over the years remaining to and including fiscal year |
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1 | | 2045 and shall be determined under the projected unit credit |
2 | | actuarial cost method. |
3 | | For State fiscal year 2019: |
4 | | (1) The initial calculation and certification shall be |
5 | | based on the amount determined above. |
6 | | (2) For purposes of the recertification due on or |
7 | | before May 1, 2018, the recalculation of the required State |
8 | | contribution for fiscal year 2019 shall take into account |
9 | | the effect on the System's liabilities of the elections |
10 | | made under Section 16-122.9. |
11 | | (3) For purposes of the recertification due on or |
12 | | before October 1, 2018, the total required State |
13 | | contribution for fiscal year 2019 shall be reduced by the |
14 | | amount of the consideration payments made to Tier 1 |
15 | | employees who made the election under paragraph (1) of |
16 | | subsection (a) of Section 16-122.9. |
17 | | Beginning in State fiscal year 2018, any increase or |
18 | | decrease in State contribution over the prior fiscal year due |
19 | | exclusively to changes in actuarial or investment assumptions |
20 | | adopted by the Board shall be included in the State |
21 | | contribution to the System, as a percentage of the applicable |
22 | | employee payroll, and shall be increased in equal annual |
23 | | increments so that by the State fiscal year occurring 5 years |
24 | | after the adoption of the actuarial or investment assumptions, |
25 | | the State is contributing at the rate otherwise required under |
26 | | this Section. |
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1 | | For State fiscal years 2012 through 2017 2045 , the minimum |
2 | | contribution
to the System to be made by the State for each |
3 | | fiscal year shall be an amount
determined by the System to be |
4 | | sufficient to bring the total assets of the
System up to 90% of |
5 | | the total actuarial liabilities of the System by the end of
|
6 | | State fiscal year 2045. In making these determinations, the |
7 | | required State
contribution shall be calculated each year as a |
8 | | level percentage of payroll
over the years remaining to and |
9 | | including fiscal year 2045 and shall be
determined under the |
10 | | projected unit credit actuarial cost method.
|
11 | | For State fiscal years 1996 through 2005, the State |
12 | | contribution to the
System, as a percentage of the applicable |
13 | | employee payroll, shall be increased
in equal annual increments |
14 | | so that by State fiscal year 2011, the State is
contributing at |
15 | | the rate required under this Section; except that in the
|
16 | | following specified State fiscal years, the State contribution |
17 | | to the System
shall not be less than the following indicated |
18 | | percentages of the applicable
employee payroll, even if the |
19 | | indicated percentage will produce a State
contribution in |
20 | | excess of the amount otherwise required under this subsection
|
21 | | and subsection (a), and notwithstanding any contrary |
22 | | certification made under
subsection (a-1) before the effective |
23 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
24 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
25 | | 2003; and
13.56% in FY 2004.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State
contribution for State fiscal year 2006 is |
2 | | $534,627,700.
|
3 | | Notwithstanding any other provision of this Article, the |
4 | | total required State
contribution for State fiscal year 2007 is |
5 | | $738,014,500.
|
6 | | For each of State fiscal years 2008 through 2009, the State |
7 | | contribution to
the System, as a percentage of the applicable |
8 | | employee payroll, shall be
increased in equal annual increments |
9 | | from the required State contribution for State fiscal year |
10 | | 2007, so that by State fiscal year 2011, the
State is |
11 | | contributing at the rate otherwise required under this Section.
|
12 | | Notwithstanding any other provision of this Article, the |
13 | | total required State contribution for State fiscal year 2010 is |
14 | | $2,089,268,000 and shall be made from the proceeds of bonds |
15 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
16 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
17 | | expenses determined by the System's share of total bond |
18 | | proceeds, (ii) any amounts received from the Common School Fund |
19 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
20 | | due to the issuance of discounted bonds, if applicable. |
21 | | Notwithstanding any other provision of this Article, the
|
22 | | total required State contribution for State fiscal year 2011 is
|
23 | | the amount recertified by the System on or before April 1, 2011 |
24 | | pursuant to subsection (a-1) of this Section and shall be made |
25 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
26 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
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1 | | pro rata share of bond sale
expenses determined by the System's |
2 | | share of total bond
proceeds, (ii) any amounts received from |
3 | | the Common School Fund
in fiscal year 2011, and (iii) any |
4 | | reduction in bond proceeds
due to the issuance of discounted |
5 | | bonds, if applicable. This amount shall include, in addition to |
6 | | the amount certified by the System, an amount necessary to meet |
7 | | employer contributions required by the State as an employer |
8 | | under paragraph (e) of this Section, which may also be used by |
9 | | the System for contributions required by paragraph (a) of |
10 | | Section 16-127. |
11 | | Beginning in State fiscal year 2046, the minimum State |
12 | | contribution for
each fiscal year shall be the amount needed to |
13 | | maintain the total assets of
the System at 90% of the total |
14 | | actuarial liabilities of the System.
|
15 | | Amounts received by the System pursuant to Section 25 of |
16 | | the Budget Stabilization Act or Section 8.12 of the State |
17 | | Finance Act in any fiscal year do not reduce and do not |
18 | | constitute payment of any portion of the minimum State |
19 | | contribution required under this Article in that fiscal year. |
20 | | Such amounts shall not reduce, and shall not be included in the |
21 | | calculation of, the required State contributions under this |
22 | | Article in any future year until the System has reached a |
23 | | funding ratio of at least 90%. A reference in this Article to |
24 | | the "required State contribution" or any substantially similar |
25 | | term does not include or apply to any amounts payable to the |
26 | | System under Section 25 of the Budget Stabilization Act. |
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1 | | Notwithstanding any other provision of this Section, the |
2 | | required State
contribution for State fiscal year 2005 and for |
3 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
4 | | under this Section and
certified under subsection (a-1), shall |
5 | | not exceed an amount equal to (i) the
amount of the required |
6 | | State contribution that would have been calculated under
this |
7 | | Section for that fiscal year if the System had not received any |
8 | | payments
under subsection (d) of Section 7.2 of the General |
9 | | Obligation Bond Act, minus
(ii) the portion of the State's |
10 | | total debt service payments for that fiscal
year on the bonds |
11 | | issued in fiscal year 2003 for the purposes of that Section |
12 | | 7.2, as determined
and certified by the Comptroller, that is |
13 | | the same as the System's portion of
the total moneys |
14 | | distributed under subsection (d) of Section 7.2 of the General
|
15 | | Obligation Bond Act. In determining this maximum for State |
16 | | fiscal years 2008 through 2010, however, the amount referred to |
17 | | in item (i) shall be increased, as a percentage of the |
18 | | applicable employee payroll, in equal increments calculated |
19 | | from the sum of the required State contribution for State |
20 | | fiscal year 2007 plus the applicable portion of the State's |
21 | | total debt service payments for fiscal year 2007 on the bonds |
22 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
23 | | the General
Obligation Bond Act, so that, by State fiscal year |
24 | | 2011, the
State is contributing at the rate otherwise required |
25 | | under this Section.
|
26 | | (b-4) For employees first hired on or after 6 months after |
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1 | | the effective date of this amendatory Act of the 100th General |
2 | | Assembly who have elected the benefits under Section 1-161 of |
3 | | this Code, the employer shall annually contribute an amount, |
4 | | expressed as a percentage of payroll, equal to the defined |
5 | | benefit normal cost of the defined benefit plan, less the |
6 | | employee contribution, plus 2%. On an annual basis, the System |
7 | | shall certify to each employer the amount of unfunded liability |
8 | | accrued in the employer's account to be paid by the employer so |
9 | | that the System is 90% funded by the end of State fiscal year |
10 | | 2045. The contributions shall be divided equally over a |
11 | | 12-month period and made monthly. The employer shall also |
12 | | contribute an amount equal to the employer defined |
13 | | contribution, as set on an individual employee basis, under |
14 | | paragraph (2) of subsection (k) of Section 1-161 during each |
15 | | pay period. The System shall have the authority to adopt rules |
16 | | regarding implementation of employer contributions. |
17 | | (c) Payment of the required State contributions and of all |
18 | | pensions,
retirement annuities, death benefits, refunds, and |
19 | | other benefits granted
under or assumed by this System, and all |
20 | | expenses in connection with the
administration and operation |
21 | | thereof, are obligations of the State.
|
22 | | If members are paid from special trust or federal funds |
23 | | which are
administered by the employing unit, whether school |
24 | | district or other
unit, the employing unit shall pay to the |
25 | | System from such
funds the full accruing retirement costs based |
26 | | upon that
service, which, beginning July 1, 2014, shall be at a |
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1 | | rate, expressed as a percentage of salary, equal to the total |
2 | | minimum contribution
to the System to be made by the State for |
3 | | that fiscal year, including both normal cost and unfunded |
4 | | liability components, expressed as a percentage of payroll, as |
5 | | determined by the System under subsection (b-3) of this |
6 | | Section. Employer contributions, based on
salary paid to |
7 | | members from federal funds, may be forwarded by the |
8 | | distributing
agency of the State of Illinois to the System |
9 | | prior to allocation, in an
amount determined in accordance with |
10 | | guidelines established by such
agency and the System. Any |
11 | | contribution for fiscal year 2015 collected as a result of the |
12 | | change made by this amendatory Act of the 98th General Assembly |
13 | | shall be considered a State contribution under subsection (b-3) |
14 | | of this Section.
|
15 | | (d) Effective July 1, 1986, any employer of a teacher as |
16 | | defined in
paragraph (8) of Section 16-106 shall pay the |
17 | | employer's normal cost
of benefits based upon the teacher's |
18 | | service, in addition to
employee contributions, as determined |
19 | | by the System. Such employer
contributions shall be forwarded |
20 | | monthly in accordance with guidelines
established by the |
21 | | System.
|
22 | | However, with respect to benefits granted under Section |
23 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
24 | | of Section 16-106, the
employer's contribution shall be 12% |
25 | | (rather than 20%) of the member's
highest annual salary rate |
26 | | for each year of creditable service granted, and
the employer |
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1 | | shall also pay the required employee contribution on behalf of
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2 | | the teacher. For the purposes of Sections 16-133.4 and |
3 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
4 | | 16-106 who is serving in that capacity
while on leave of |
5 | | absence from another employer under this Article shall not
be |
6 | | considered an employee of the employer from which the teacher |
7 | | is on leave.
|
8 | | (e) Beginning July 1, 1998, every employer of a teacher
|
9 | | shall pay to the System an employer contribution computed as |
10 | | follows:
|
11 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
12 | | employer
contribution shall be equal to 0.3% of each |
13 | | teacher's salary.
|
14 | | (2) Beginning July 1, 1999 and thereafter, the employer
|
15 | | contribution shall be equal to 0.58% of each teacher's |
16 | | salary.
|
17 | | The school district or other employing unit may pay these |
18 | | employer
contributions out of any source of funding available |
19 | | for that purpose and
shall forward the contributions to the |
20 | | System on the schedule established
for the payment of member |
21 | | contributions.
|
22 | | These employer contributions are intended to offset a |
23 | | portion of the cost
to the System of the increases in |
24 | | retirement benefits resulting from this
amendatory Act of 1998.
|
25 | | Each employer of teachers is entitled to a credit against |
26 | | the contributions
required under this subsection (e) with |
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1 | | respect to salaries paid to teachers
for the period January 1, |
2 | | 2002 through June 30, 2003, equal to the amount paid
by that |
3 | | employer under subsection (a-5) of Section 6.6 of the State |
4 | | Employees
Group Insurance Act of 1971 with respect to salaries |
5 | | paid to teachers for that
period.
|
6 | | The additional 1% employee contribution required under |
7 | | Section 16-152 by
this amendatory Act of 1998 is the |
8 | | responsibility of the teacher and not the
teacher's employer, |
9 | | unless the employer agrees, through collective bargaining
or |
10 | | otherwise, to make the contribution on behalf of the teacher.
|
11 | | If an employer is required by a contract in effect on May |
12 | | 1, 1998 between the
employer and an employee organization to |
13 | | pay, on behalf of all its full-time
employees
covered by this |
14 | | Article, all mandatory employee contributions required under
|
15 | | this Article, then the employer shall be excused from paying |
16 | | the employer
contribution required under this subsection (e) |
17 | | for the balance of the term
of that contract. The employer and |
18 | | the employee organization shall jointly
certify to the System |
19 | | the existence of the contractual requirement, in such
form as |
20 | | the System may prescribe. This exclusion shall cease upon the
|
21 | | termination, extension, or renewal of the contract at any time |
22 | | after May 1,
1998.
|
23 | | (f) For school years beginning on or after June 1, 2005 and |
24 | | before July 1, 2018, if If the amount of a teacher's salary for |
25 | | any school year used to determine final average salary exceeds |
26 | | the member's annual full-time salary rate with the same |
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1 | | employer for the previous school year by more than 6%, the |
2 | | teacher's employer shall pay to the System, in addition to all |
3 | | other payments required under this Section and in accordance |
4 | | with guidelines established by the System, the present value of |
5 | | the increase in benefits resulting from the portion of the |
6 | | increase in salary that is in excess of 6%. This present value |
7 | | shall be computed by the System on the basis of the actuarial |
8 | | assumptions and tables used in the most recent actuarial |
9 | | valuation of the System that is available at the time of the |
10 | | computation. If a teacher's salary for the 2005-2006 school |
11 | | year is used to determine final average salary under this |
12 | | subsection (f), then the changes made to this subsection (f) by |
13 | | Public Act 94-1057 shall apply in calculating whether the |
14 | | increase in his or her salary is in excess of 6%. For the |
15 | | purposes of this Section, change in employment under Section |
16 | | 10-21.12 of the School Code on or after June 1, 2005 shall |
17 | | constitute a change in employer. The System may require the |
18 | | employer to provide any pertinent information or |
19 | | documentation.
The changes made to this subsection (f) by this |
20 | | amendatory Act of the 94th General Assembly apply without |
21 | | regard to whether the teacher was in service on or after its |
22 | | effective date.
|
23 | | Whenever it determines that a payment is or may be required |
24 | | under this subsection, the System shall calculate the amount of |
25 | | the payment and bill the employer for that amount. The bill |
26 | | shall specify the calculations used to determine the amount |
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1 | | due. If the employer disputes the amount of the bill, it may, |
2 | | within 30 days after receipt of the bill, apply to the System |
3 | | in writing for a recalculation. The application must specify in |
4 | | detail the grounds of the dispute and, if the employer asserts |
5 | | that the calculation is subject to subsection (g) or (h) of |
6 | | this Section, must include an affidavit setting forth and |
7 | | attesting to all facts within the employer's knowledge that are |
8 | | pertinent to the applicability of that subsection. Upon |
9 | | receiving a timely application for recalculation, the System |
10 | | shall review the application and, if appropriate, recalculate |
11 | | the amount due.
|
12 | | The employer contributions required under this subsection |
13 | | (f) may be paid in the form of a lump sum within 90 days after |
14 | | receipt of the bill. If the employer contributions are not paid |
15 | | within 90 days after receipt of the bill, then interest will be |
16 | | charged at a rate equal to the System's annual actuarially |
17 | | assumed rate of return on investment compounded annually from |
18 | | the 91st day after receipt of the bill. Payments must be |
19 | | concluded within 3 years after the employer's receipt of the |
20 | | bill.
|
21 | | (f-1) For school years beginning on or after July 1, 2018, |
22 | | if the amount of a teacher's salary for any school year used to |
23 | | determine final average salary exceeds the member's annual |
24 | | full-time salary rate with the same employer for the previous |
25 | | school year by more than the unadjusted percentage increase in |
26 | | the consumer price index-u for the calendar year immediately |
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1 | | preceding the beginning of the school year, published by the |
2 | | Public Pension Division of the Department of Insurance by |
3 | | November 1 of each year, then the teacher's employer shall pay |
4 | | to the System, in addition to all other payments required under |
5 | | this Section and in accordance with guidelines established by |
6 | | the System, the present value of the increase in benefits |
7 | | resulting from the portion of the increase in salary that is in |
8 | | excess of the unadjusted percentage increase in the consumer |
9 | | price index-u for the applicable calendar year. This present |
10 | | value shall be computed by the System on the basis of the |
11 | | actuarial assumptions and tables used in the most recent |
12 | | actuarial valuation of the System that is available at the time |
13 | | of the computation. The System may require the employer to |
14 | | provide any pertinent information or documentation. |
15 | | Whenever it determines that a payment is or may be required |
16 | | under this subsection (f-1), the System shall calculate the |
17 | | amount of the payment and bill the employer for that amount. |
18 | | The bill shall specify the calculations used to determine the |
19 | | amount due. If the employer disputes the amount of the bill, it |
20 | | may, within 30 days after receipt of the bill, apply to the |
21 | | System in writing for a recalculation. The application must |
22 | | specify in detail the grounds of the dispute and, if the |
23 | | employer asserts that the calculation is subject to subsection |
24 | | (h-1) of this Section, must include an affidavit setting forth |
25 | | and attesting to all facts within the employer's knowledge that |
26 | | are pertinent to the applicability of subsection (h-1). Upon |
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1 | | receiving a timely application for recalculation, the System |
2 | | shall review the application and, if appropriate, recalculate |
3 | | the amount due. |
4 | | The employer contributions required under this subsection |
5 | | (f-1) may be paid in the form of a lump sum within 90 days after |
6 | | receipt of the bill. If the employer contributions are not paid |
7 | | within 90 days after receipt of the bill, then interest shall |
8 | | be charged at a rate equal to the System's annual actuarially |
9 | | assumed rate of return on investment compounded annually from |
10 | | the 91st day after receipt of the bill. Payments must be |
11 | | concluded within 3 years after the employer's receipt of the |
12 | | bill. |
13 | | For the purposes of this Section, "consumer price index-u" |
14 | | means the index published by the Bureau of Labor Statistics of |
15 | | the United States Department of Labor that measures the average |
16 | | change in prices of goods and services purchased by all urban |
17 | | consumers, United States city average, all items, 1982-84 = |
18 | | 100. The new amount resulting from each annual adjustment shall |
19 | | be determined by the Public Pension Division of the Department |
20 | | of Insurance and made available to the boards of the retirement |
21 | | systems and pension funds by November 1 of each year. |
22 | | (g) This subsection (g) applies only to payments made or |
23 | | salary increases given on or after June 1, 2005 but before July |
24 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
25 | | require the System to refund any payments received before
July |
26 | | 31, 2006 (the effective date of Public Act 94-1057). |
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1 | | When assessing payment for any amount due under subsection |
2 | | (f), the System shall exclude salary increases paid to teachers |
3 | | under contracts or collective bargaining agreements entered |
4 | | into, amended, or renewed before June 1, 2005.
|
5 | | When assessing payment for any amount due under subsection |
6 | | (f), the System shall exclude salary increases paid to a |
7 | | teacher at a time when the teacher is 10 or more years from |
8 | | retirement eligibility under Section 16-132 or 16-133.2.
|
9 | | When assessing payment for any amount due under subsection |
10 | | (f), the System shall exclude salary increases resulting from |
11 | | overload work, including summer school, when the school |
12 | | district has certified to the System, and the System has |
13 | | approved the certification, that (i) the overload work is for |
14 | | the sole purpose of classroom instruction in excess of the |
15 | | standard number of classes for a full-time teacher in a school |
16 | | district during a school year and (ii) the salary increases are |
17 | | equal to or less than the rate of pay for classroom instruction |
18 | | computed on the teacher's current salary and work schedule.
|
19 | | When assessing payment for any amount due under subsection |
20 | | (f), the System shall exclude a salary increase resulting from |
21 | | a promotion (i) for which the employee is required to hold a |
22 | | certificate or supervisory endorsement issued by the State |
23 | | Teacher Certification Board that is a different certification |
24 | | or supervisory endorsement than is required for the teacher's |
25 | | previous position and (ii) to a position that has existed and |
26 | | been filled by a member for no less than one complete academic |
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1 | | year and the salary increase from the promotion is an increase |
2 | | that results in an amount no greater than the lesser of the |
3 | | average salary paid for other similar positions in the district |
4 | | requiring the same certification or the amount stipulated in |
5 | | the collective bargaining agreement for a similar position |
6 | | requiring the same certification.
|
7 | | When assessing payment for any amount due under subsection |
8 | | (f), the System shall exclude any payment to the teacher from |
9 | | the State of Illinois or the State Board of Education over |
10 | | which the employer does not have discretion, notwithstanding |
11 | | that the payment is included in the computation of final |
12 | | average salary.
|
13 | | (h) When assessing payment for any amount due under |
14 | | subsection (f), the System shall exclude any salary increase |
15 | | described in subsection (g) of this Section given on or after |
16 | | July 1, 2011 but before July 1, 2014 under a contract or |
17 | | collective bargaining agreement entered into, amended, or |
18 | | renewed on or after June 1, 2005 but before July 1, 2011. |
19 | | Notwithstanding any other provision of this Section, any |
20 | | payments made or salary increases given after June 30, 2014 |
21 | | shall be used in assessing payment for any amount due under |
22 | | subsection (f) of this Section.
|
23 | | (h-1) When assessing payment for any amount due under |
24 | | subsection (f-1), the System shall exclude earnings increases |
25 | | paid to participants under contracts or collective bargaining |
26 | | agreements entered into, amended, or renewed before the |
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1 | | effective date of this amendatory Act of the 100th General |
2 | | Assembly. |
3 | | (i) The System shall prepare a report and file copies of |
4 | | the report with the Governor and the General Assembly by |
5 | | January 1, 2007 that contains all of the following information: |
6 | | (1) The number of recalculations required by the |
7 | | changes made to this Section by Public Act 94-1057 for each |
8 | | employer. |
9 | | (2) The dollar amount by which each employer's |
10 | | contribution to the System was changed due to |
11 | | recalculations required by Public Act 94-1057. |
12 | | (3) The total amount the System received from each |
13 | | employer as a result of the changes made to this Section by |
14 | | Public Act 94-4. |
15 | | (4) The increase in the required State contribution |
16 | | resulting from the changes made to this Section by Public |
17 | | Act 94-1057.
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18 | | (i-5) For school years beginning on or after July 1, 2018, |
19 | | if the amount of a participant's salary for any school year, |
20 | | determined on a full-time equivalent basis, exceeds $140,000, |
21 | | the participant's employer shall pay to the System, in addition |
22 | | to all other payments required under this Section and in |
23 | | accordance with guidelines established by the System, the |
24 | | amount of earnings that exceed $140,000 multiplied by the level |
25 | | percentage of payroll used in that fiscal year as determined by |
26 | | the System to be sufficient to bring the total assets of the |
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1 | | System up to 90% of the total actuarial liabilities of the |
2 | | System by the end of State fiscal year 2045. This amount shall |
3 | | be computed by the System on the basis of the actuarial |
4 | | assumptions and tables used in the most recent actuarial |
5 | | valuation of the System that is available at the time of the |
6 | | computation. The System may require the employer to provide any |
7 | | pertinent information or documentation. |
8 | | Whenever it determines that a payment is or may be required |
9 | | under this subsection, the System shall calculate the amount of |
10 | | the payment and bill the employer for that amount. The bill |
11 | | shall specify the calculations used to determine the amount |
12 | | due. If the employer disputes the amount of the bill, it may, |
13 | | within 30 days after receipt of the bill, apply to the System |
14 | | in writing for a recalculation. The application must specify in |
15 | | detail the grounds of the dispute. Upon receiving a timely |
16 | | application for recalculation, the System shall review the |
17 | | application and, if appropriate, recalculate the amount due. |
18 | | The employer contributions required under this subsection |
19 | | may be paid in the form of a lump sum within 90 days after |
20 | | receipt of the bill. If the employer contributions are not paid |
21 | | within 90 days after receipt of the bill, then interest will be |
22 | | charged at a rate equal to the System's annual actuarially |
23 | | assumed rate of return on investment compounded annually from |
24 | | the 91st day after receipt of the bill. Payments must be |
25 | | concluded within 3 years after the employer's receipt of the |
26 | | bill. |
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1 | | (j) For purposes of determining the required State |
2 | | contribution to the System, the value of the System's assets |
3 | | shall be equal to the actuarial value of the System's assets, |
4 | | which shall be calculated as follows: |
5 | | As of June 30, 2008, the actuarial value of the System's |
6 | | assets shall be equal to the market value of the assets as of |
7 | | that date. In determining the actuarial value of the System's |
8 | | assets for fiscal years after June 30, 2008, any actuarial |
9 | | gains or losses from investment return incurred in a fiscal |
10 | | year shall be recognized in equal annual amounts over the |
11 | | 5-year period following that fiscal year. |
12 | | (k) For purposes of determining the required State |
13 | | contribution to the system for a particular year, the actuarial |
14 | | value of assets shall be assumed to earn a rate of return equal |
15 | | to the system's actuarially assumed rate of return. |
16 | | (l) If Section 16-122.9 is determined to be |
17 | | unconstitutional or otherwise invalid by a final unappealable |
18 | | decision of an Illinois court or a court of competent |
19 | | jurisdiction, then the changes made to this Section by this |
20 | | amendatory Act of the 100th General Assembly shall not take |
21 | | effect and are repealed by operation of law. |
22 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
23 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
24 | | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
|
25 | | (40 ILCS 5/16-190.5 new) |
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1 | | Sec. 16-190.5. Accelerated pension benefit payment. |
2 | | (a) As used in this Section: |
3 | | "Eligible person" means a person who: |
4 | | (1) has terminated service; |
5 | | (2) has accrued sufficient service credit to be |
6 | | eligible to receive a retirement annuity under this |
7 | | Article; |
8 | | (3) has not received any retirement annuity under this |
9 | | Article; and |
10 | | (4) does not have a QILDRO in effect against him or her |
11 | | under this Article. |
12 | | "Pension benefit" means the benefits under this Article, or |
13 | | Article 1 as it relates to those benefits, including any |
14 | | anticipated annual increases, that an eligible person is |
15 | | entitled to upon attainment of the applicable retirement age. |
16 | | "Pension benefit" also includes applicable survivor's or |
17 | | disability benefits. |
18 | | (b) Before January 1, 2018, and annually thereafter, the |
19 | | System shall calculate, using actuarial tables and other |
20 | | assumptions adopted by the Board, the net present value of |
21 | | pension benefits for each eligible person and shall offer each |
22 | | eligible person the opportunity to irrevocably elect to receive |
23 | | an amount determined by the System to be equal to 70% of the |
24 | | net present value of his or her pension benefits in lieu of |
25 | | receiving any pension benefit. The offer shall specify the |
26 | | dollar amount that the eligible person will receive if he or |
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1 | | she so elects and shall expire when a subsequent offer is made |
2 | | to an eligible person or when the System determines that 10% of |
3 | | eligible persons in that year have made the election under this |
4 | | subsection, whichever occurs first. The System shall make a |
5 | | good faith effort to contact every eligible person to notify |
6 | | him or her of the election and of the amount of the accelerated |
7 | | pension benefit payment. |
8 | | Until the System determines that 10% of eligible persons in |
9 | | that year have made the election under this subsection, an |
10 | | eligible person may irrevocably elect to receive an accelerated |
11 | | pension benefit payment in the amount that the System offers |
12 | | under this subsection in lieu of receiving any pension benefit. |
13 | | A person who elects to receive an accelerated pension benefit |
14 | | payment under this Section may not elect to proceed under the |
15 | | Retirement Systems Reciprocal Act with respect to service under |
16 | | this Article. |
17 | | (c) A person's credits and creditable service under this |
18 | | Article shall be terminated upon the person's receipt of an |
19 | | accelerated pension benefit payment under this Section, and no |
20 | | other benefit shall be paid under this Article based on those |
21 | | terminated credits and creditable service, including any |
22 | | retirement, survivor, or other benefit; except that to the |
23 | | extent that participation, benefits, or premiums under the |
24 | | State Employees Group Insurance Act of 1971 are based on the |
25 | | amount of service credit, the terminated service credit shall |
26 | | be used for that purpose. |
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1 | | (d) If a person who has received an accelerated pension |
2 | | benefit payment under this Section returns to active service |
3 | | under this Article, then: |
4 | | (1) Any benefits under the System earned as a result of |
5 | | that return to active service shall be based solely on the |
6 | | person's credits and creditable service arising from the |
7 | | return to active service. |
8 | | (2) The accelerated pension benefit payment may not be |
9 | | repaid to the System, and the terminated credits and |
10 | | creditable service may not under any circumstances be |
11 | | reinstated. |
12 | | (e) As a condition of receiving an accelerated pension |
13 | | benefit payment, an eligible person must have another |
14 | | retirement plan or account qualified under the Internal Revenue |
15 | | Code of 1986, as amended, for the accelerated pension benefit |
16 | | payment to be rolled into. The accelerated pension benefit |
17 | | payment under this Section may be subject to withholding or |
18 | | payment of applicable taxes, but to the extent permitted by |
19 | | federal law, a person who receives an accelerated pension |
20 | | benefit payment under this Section must direct the System to |
21 | | pay all of that payment as a rollover into another retirement |
22 | | plan or account qualified under the Internal Revenue Code of |
23 | | 1986, as amended. |
24 | | (f) Before January 1, 2019 and every January 1 thereafter, |
25 | | the Board shall certify to the Illinois Finance Authority and |
26 | | the General Assembly the amount by which the total amount of |
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1 | | accelerated pension benefit payments made under this Section |
2 | | exceed the amount appropriated to the System for the purpose of |
3 | | making those payments. |
4 | | (g) The Board shall adopt any rules necessary to implement |
5 | | this Section. |
6 | | (h) No provision of this Section shall be interpreted in a |
7 | | way that would cause the applicable System to cease to be a |
8 | | qualified plan under the Internal Revenue Code of 1986. |
9 | | (i) Notwithstanding any other provision of this Section, in |
10 | | no case shall the total amount of accelerated pension benefit |
11 | | payments paid under this Section, Section 14-147.5, and Section |
12 | | 15-185.5, and Section 16-190.5 cause the Illinois Finance |
13 | | Authority to issue more than the $250,000,000 of State Pension |
14 | | Obligation Acceleration Bonds authorized in subsection (c-5) |
15 | | of Section 801-40 of the Illinois Finance Authority Act. |
16 | | (40 ILCS 5/16-203) |
17 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
18 | | which has been held unconstitutional)
|
19 | | Sec. 16-203. Application and expiration of new benefit |
20 | | increases. |
21 | | (a) As used in this Section, "new benefit increase" means |
22 | | an increase in the amount of any benefit provided under this |
23 | | Article, or an expansion of the conditions of eligibility for |
24 | | any benefit under this Article, that results from an amendment |
25 | | to this Code that takes effect after June 1, 2005 (the |
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1 | | effective date of Public Act 94-4). "New benefit increase", |
2 | | however, does not include any benefit increase resulting from |
3 | | the changes made to this Article by Public Act 95-910 or this |
4 | | amendatory Act of the 100th General Assembly this amendatory |
5 | | Act of the 95th General Assembly . |
6 | | (b) Notwithstanding any other provision of this Code or any |
7 | | subsequent amendment to this Code, every new benefit increase |
8 | | is subject to this Section and shall be deemed to be granted |
9 | | only in conformance with and contingent upon compliance with |
10 | | the provisions of this Section.
|
11 | | (c) The Public Act enacting a new benefit increase must |
12 | | identify and provide for payment to the System of additional |
13 | | funding at least sufficient to fund the resulting annual |
14 | | increase in cost to the System as it accrues. |
15 | | Every new benefit increase is contingent upon the General |
16 | | Assembly providing the additional funding required under this |
17 | | subsection. The Commission on Government Forecasting and |
18 | | Accountability shall analyze whether adequate additional |
19 | | funding has been provided for the new benefit increase and |
20 | | shall report its analysis to the Public Pension Division of the |
21 | | Department of Insurance Financial and Professional Regulation . |
22 | | A new benefit increase created by a Public Act that does not |
23 | | include the additional funding required under this subsection |
24 | | is null and void. If the Public Pension Division determines |
25 | | that the additional funding provided for a new benefit increase |
26 | | under this subsection is or has become inadequate, it may so |
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1 | | certify to the Governor and the State Comptroller and, in the |
2 | | absence of corrective action by the General Assembly, the new |
3 | | benefit increase shall expire at the end of the fiscal year in |
4 | | which the certification is made.
|
5 | | (d) Every new benefit increase shall expire 5 years after |
6 | | its effective date or on such earlier date as may be specified |
7 | | in the language enacting the new benefit increase or provided |
8 | | under subsection (c). This does not prevent the General |
9 | | Assembly from extending or re-creating a new benefit increase |
10 | | by law. |
11 | | (e) Except as otherwise provided in the language creating |
12 | | the new benefit increase, a new benefit increase that expires |
13 | | under this Section continues to apply to persons who applied |
14 | | and qualified for the affected benefit while the new benefit |
15 | | increase was in effect and to the affected beneficiaries and |
16 | | alternate payees of such persons, but does not apply to any |
17 | | other person, including without limitation a person who |
18 | | continues in service after the expiration date and did not |
19 | | apply and qualify for the affected benefit while the new |
20 | | benefit increase was in effect.
|
21 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) |
22 | | (40 ILCS 5/16-205.1 new) |
23 | | Sec. 16-205.1. Defined contribution plan. |
24 | | (a) By July 1, 2018, the System shall prepare and implement |
25 | | a voluntary defined contribution plan for up to 5% of eligible |
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1 | | active Tier 1 employees. The System shall determine the 5% cap |
2 | | by the number of active Tier 1 employees on the effective date |
3 | | of this Section. The defined contribution plan developed under |
4 | | this Section shall be a plan that aggregates employer and |
5 | | employee contributions in individual participant accounts |
6 | | which, after meeting any other requirements, are used for |
7 | | payouts after retirement in accordance with this Section and |
8 | | any other applicable laws. |
9 | | As used in this Section, "defined benefit plan" means the |
10 | | retirement plan available under this Article to Tier 1 |
11 | | employees who have not made the election authorized under this |
12 | | Section. |
13 | | (1) Under the defined contribution plan, an active
Tier |
14 | | 1 employee of this System could elect to cease accruing |
15 | | benefits in the defined benefit plan under this Article and |
16 | | begin accruing benefits for future service in the defined |
17 | | contribution plan. Service credit under the defined |
18 | | contribution plan may be used for determining retirement |
19 | | eligibility under the defined benefit plan. An active Tier |
20 | | 1 employee who elects to cease accruing benefits in his or |
21 | | her defined benefit plan shall be prohibited from |
22 | | purchasing service credit on or after the date of his or |
23 | | her election. A Tier 1 employee making the irrevocable |
24 | | election provided under this Section shall not receive |
25 | | interest accruals to his or her benefit under paragraph (A) |
26 | | of subsection (a) of Section 16-133 on or after the date of |
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1 | | his or her election. |
2 | | (2) Participants in the defined contribution plan
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3 | | shall pay employee contributions at the same rate as Tier 1 |
4 | | employees in this System who do not participate in the |
5 | | defined contribution plan. |
6 | | (3) State contributions shall be paid into the
accounts |
7 | | of all participants in the defined contribution plan at a |
8 | | uniform rate, expressed as a percentage of salary and |
9 | | determined for each year. This rate shall be no higher than |
10 | | the employer's normal cost for Tier 1 employees in the |
11 | | defined benefit plan for that year, as determined by the |
12 | | System and expressed as a percentage of salary, and shall |
13 | | be no lower than 0% of salary. The State shall adjust this |
14 | | rate annually. |
15 | | (4) The defined contribution plan shall require 5
years |
16 | | of participation in the defined contribution plan before |
17 | | vesting in State contributions. If the participant fails to |
18 | | vest in them, the State contributions, and the earnings |
19 | | thereon, shall be forfeited. |
20 | | (5) The defined contribution plan may provide for
|
21 | | participants in the plan to be eligible for the defined |
22 | | disability benefits available to other participants under |
23 | | this Article. If it does, the System shall reduce the |
24 | | employee contributions credited to the member's defined |
25 | | contribution plan account by an amount determined by the |
26 | | System to cover the cost of offering such benefits. |
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1 | | (6) The defined contribution plan shall provide a
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2 | | variety of options for investments. These options shall |
3 | | include investments in a fund created by the System and |
4 | | managed in accordance with legal and fiduciary standards, |
5 | | as well as investment options otherwise available. |
6 | | (7) The defined contribution plan shall provide a
|
7 | | variety of options for payouts to retirees and their |
8 | | survivors. |
9 | | (8) To the extent authorized under federal law and
as |
10 | | authorized by the System, the plan shall allow former |
11 | | participants in the plan to transfer or roll over employee |
12 | | and vested State contributions, and the earnings thereon, |
13 | | into other qualified retirement plans. |
14 | | (9) The System shall reduce the employee
contributions |
15 | | credited to the member's defined contribution plan account |
16 | | by an amount determined by the System to cover the cost of |
17 | | offering these benefits and any applicable administrative |
18 | | fees. |
19 | | (b) Only persons who are active Tier 1 employees of the |
20 | | System on the effective date of this Section are eligible to |
21 | | participate in the defined contribution plan. Participation in |
22 | | the defined contribution plan shall be limited to the first 5% |
23 | | of eligible persons who elect to participate. The election to |
24 | | participate in the defined contribution plan is voluntary and |
25 | | irrevocable. |
26 | | (c) An eligible Tier 1 employee may irrevocably elect to |
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1 | | participate in the defined contribution plan by filing with the |
2 | | System a written application to participate that is received by |
3 | | the System prior to its determination that 5% of eligible |
4 | | persons have elected to participate in the defined contribution |
5 | | plan. |
6 | | When the System first determines that 5% of eligible |
7 | | persons have elected to participate in the defined contribution |
8 | | plan, the System shall provide notice to previously eligible |
9 | | employees that the plan is no longer available and shall cease |
10 | | accepting applications to participate. |
11 | | (d) The System shall make a good faith effort to contact |
12 | | each active Tier 1 employee who is eligible to participate in |
13 | | the defined contribution plan. The System shall mail |
14 | | information describing the option to join the defined |
15 | | contribution plan to each of these employees to his or her last |
16 | | known address on file with the System. If the employee is not |
17 | | responsive to other means of contact, it is sufficient for the |
18 | | System to publish the details of the option on its website. |
19 | | Upon request for further information describing the |
20 | | option, the System shall provide employees with information |
21 | | from the System before exercising the option to join the plan, |
22 | | including information on the impact to their vested benefits or |
23 | | non-vested service. The individual consultation shall include |
24 | | projections of the member's defined benefits at retirement or |
25 | | earlier termination of service and the value of the member's |
26 | | account at retirement or earlier termination of service. The |
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1 | | System shall not provide advice or counseling with respect to |
2 | | whether the employee should exercise the option. The System |
3 | | shall inform Tier 1 employees who are eligible to participate |
4 | | in the defined contribution plan that they may also wish to |
5 | | obtain information and counsel relating to their option from |
6 | | any other available source, including but not limited to labor |
7 | | organizations, private counsel, and financial advisors. |
8 | | (e) In no event shall the System, its staff, its authorized |
9 | | representatives, or the Board be liable for any information |
10 | | given to an employee under this Section. The System may |
11 | | coordinate with the Illinois Department of Central Management |
12 | | Services and other retirement systems administering a defined |
13 | | contribution plan in accordance with this amendatory Act of the |
14 | | 100th General Assembly to provide information concerning the |
15 | | impact of the option set forth in this Section. |
16 | | (f) Notwithstanding any other provision of this Section, no |
17 | | person shall begin participating in the defined contribution |
18 | | plan until it has attained qualified plan status and received |
19 | | all necessary approvals from the U.S. Internal Revenue Service. |
20 | | (g) The System shall report on its progress under this |
21 | | Section, including the available details of the defined |
22 | | contribution plan and the System's plans for informing eligible |
23 | | Tier 1 employees about the plan, to the Governor and the |
24 | | General Assembly on or before January 15, 2018. |
25 | | (h) The intent of this amendatory Act of the 100th General |
26 | | Assembly is to ensure that the State's normal cost of |
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1 | | participation in the defined contribution plan is similar, and |
2 | | if possible equal, to the State's normal cost of participation |
3 | | in the defined benefit plan, unless a lower State's normal cost |
4 | | is necessary to ensure cost neutrality. |
5 | | (40 ILCS 5/16-206.1 new) |
6 | | Sec. 16-206.1. Defined contribution plan; termination. If |
7 | | the defined contribution plan is terminated or becomes |
8 | | inoperative pursuant to law, then each participant in the plan |
9 | | shall automatically be deemed to have been a contributing Tier |
10 | | 1 employee in the System's defined benefit plan during the time |
11 | | in which he or she participated in the defined contribution |
12 | | plan, and for that purpose the System shall be entitled to |
13 | | recover the amounts in the participant's defined contribution |
14 | | accounts. |
15 | | (40 ILCS 5/17-106.05 new) |
16 | | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
|
17 | | teacher under this Article who first became a member or
|
18 | | participant before January 1, 2011 under any reciprocal
|
19 | | retirement system or pension fund established under this Code
|
20 | | other than a retirement system or pension fund established
|
21 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
|
22 | | the purposes of the election under Section 17-115.5, "Tier 1 |
23 | | employee" does
not include a teacher under this Article who |
24 | | would qualify as a
Tier 1 employee but who has made an |
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1 | | irrevocable election on or
before June 1, 2017 to retire from |
2 | | service pursuant to the terms of an employment contract or a |
3 | | collective bargaining agreement in effect on June 1,
2017, |
4 | | excluding any extension, amendment, or renewal of that
|
5 | | agreement after that date, and has notified the Fund of
that |
6 | | election. |
7 | | (40 ILCS 5/17-113.4 new) |
8 | | Sec. 17-113.4. Salary. "Salary" means any income in any |
9 | | form that qualifies as "average salary" or "annual rate of |
10 | | salary" for purposes of paragraph (1) of subsection (c) of |
11 | | Section 17-116 and "salary" for payroll deduction purposes |
12 | | under Sections 17-130, 17-131, and 17-132. |
13 | | Notwithstanding any other provision of this Section, |
14 | | "salary" does not include any future increase in income that is
|
15 | | offered by an employer for service as a Tier 1 employee under
|
16 | | this Article pursuant to the condition set forth in subsection |
17 | | (c) of
Section 17-115.5 and accepted under that condition by a |
18 | | Tier 1 employee who has made
the election under paragraph (2) |
19 | | of subsection (a) of Section
17-115.5. |
20 | | (40 ILCS 5/17-113.5 new) |
21 | | Sec. 17-113.5. Future increase in income. "Future increase |
22 | | in income" means an increase to a Tier 1 employee's base pay |
23 | | that is offered by an employer to the Tier 1 employee for |
24 | | service under this Article after June 30, 2018 that qualifies |
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1 | | as "salary", as defined in Section 17-113.4, or would qualify |
2 | | as "salary" but for the fact that it was offered to and |
3 | | accepted by the Tier 1 employee under the condition set forth |
4 | | in subsection (c) of Section 17-115.5. The term "future |
5 | | increase in income" includes an increase to a Tier 1 employee's |
6 | | base pay that is paid to the Tier 1 employee pursuant to an |
7 | | extension, amendment, or renewal of any employment contract or |
8 | | collective bargaining agreement after the effective date of |
9 | | this Section. |
10 | | (40 ILCS 5/17-113.6 new) |
11 | | Sec. 17-113.6. Base pay. As used in Section 17-113.5 of |
12 | | this Code, "base pay" means the greater of either (i) the Tier |
13 | | 1 employee's annualized rate of salary as of June 30, 2018, or |
14 | | (ii) the Tier 1 employee's annualized rate of salary |
15 | | immediately preceding the expiration, renewal, or amendment of |
16 | | an employment contract or collective bargaining agreement in |
17 | | effect on the effective date of this Section. For a person |
18 | | returning to active service as a Tier 1 employee after June 30, |
19 | | 2018, however, "base pay" means the employee's annualized rate |
20 | | of salary as of the employee's last date of service prior to |
21 | | July 1, 2018. The Fund shall calculate the base pay of each |
22 | | Tier 1 employee pursuant to this Section. |
23 | | (40 ILCS 5/17-115.5 new) |
24 | | Sec. 17-115.5. Election by Tier 1 employees. |
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1 | | (a) Each active Tier 1 employee shall make an irrevocable |
2 | | election either: |
3 | | (1) to agree to delay his or her eligibility for |
4 | | automatic annual increases in service retirement pension |
5 | | as provided in Section 17-119.2 and to have the amount of |
6 | | the automatic annual increases in his or her service |
7 | | retirement pension and survivor's pension that are |
8 | | otherwise provided for in this Article calculated, |
9 | | instead, as provided in Section 17-119.2; or |
10 | | (2) to not agree to paragraph (1) of this subsection. |
11 | | The election required under this subsection (a) shall be |
12 | | made by each active Tier 1 employee no earlier than January 1, |
13 | | 2018 and no later than March 31, 2018, except that: |
14 | | (i) a person who becomes a Tier 1 employee under this |
15 | | Article on or after January 1, 2018 must make the election |
16 | | under this subsection (a) within 60 days after becoming a |
17 | | Tier 1 employee; and |
18 | | (ii) a person who returns to active service as a Tier 1 |
19 | | employee under this Article on or after January 1, 2018 and |
20 | | has not yet made an election under this Section must make |
21 | | the election under this subsection (a) within 60 days after |
22 | | returning to active service as a Tier 1 employee. |
23 | | If a Tier 1 employee fails for any reason to make a |
24 | | required election under this subsection within the time |
25 | | specified, then the employee shall be deemed to have made the |
26 | | election under paragraph (2) of this subsection. |
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1 | | (a-5) If this Section is enjoined or stayed by an Illinois |
2 | | court or a court of competent jurisdiction pending the entry of |
3 | | a final and unappealable decision, and this Section is |
4 | | determined to be constitutional or otherwise valid by a final |
5 | | unappealable decision of an Illinois court or a court of |
6 | | competent jurisdiction, then the election procedure set forth |
7 | | in subsection (a) of this Section shall commence on the 180th |
8 | | calendar day after the date of the issuance of the final |
9 | | unappealable decision and shall conclude at the end of the |
10 | | 270th calendar day after that date. |
11 | | (a-10) All elections under subsection (a) that are made or |
12 | | deemed to be made before July 1, 2018 shall take effect on July |
13 | | 1, 2018. Elections that are made or deemed to be made on or |
14 | | after July 1, 2018 shall take effect on the first day of the |
15 | | month following the month in which the election is made or |
16 | | deemed to be made. |
17 | | (b) As adequate and legal consideration provided under this |
18 | | amendatory Act of the 100th General Assembly for making an |
19 | | election under paragraph (1) of subsection (a) of this Section, |
20 | | an employer shall be expressly and irrevocably prohibited from |
21 | | offering any future increases in income to a Tier 1 employee |
22 | | who has made an election under paragraph (1) of subsection (a) |
23 | | of this Section on the condition of not constituting salary |
24 | | under Section 17-113.4. |
25 | | As adequate and legal consideration provided under this |
26 | | amendatory Act of the 100th General Assembly for making an |
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1 | | election under paragraph (1) of subsection (a) of this Section, |
2 | | each Tier 1 employee who has made an election under paragraph |
3 | | (1) of subsection (a) of this Section shall receive a |
4 | | consideration payment equal to 10% of the contributions made by |
5 | | or on behalf of the employee under Section 17-130 before the |
6 | | effective date of that election. The State Comptroller shall
|
7 | | pay the consideration payment to the Tier 1 employee out of
|
8 | | funds appropriated for that purpose under Section 1.9 of the
|
9 | | State Pension Funds Continuing Appropriation Act. The Fund |
10 | | shall calculate the amount of each consideration payment and, |
11 | | by July 1, 2018, shall certify to the State Comptroller the |
12 | | amount of the consideration payment, together with the name, |
13 | | address, and any other available payment information of the |
14 | | Tier 1 employee as found in the records of the Fund. The Fund |
15 | | shall make additional calculations and certifications of |
16 | | consideration payments to the State Comptroller as the Fund |
17 | | deems necessary. |
18 | | (c) A Tier 1 employee who makes the election under |
19 | | paragraph (2) of subsection (a) of this Section shall not be |
20 | | subject to paragraph (1) of subsection (a) of this Section. |
21 | | However, each future increase in income offered by an employer |
22 | | under this Article to a Tier 1 employee who has made the |
23 | | election under paragraph (2) of subsection (a) of this Section |
24 | | shall be offered by the employer expressly and irrevocably on |
25 | | the condition of not constituting salary under Section 17-113.4 |
26 | | and that the Tier 1 employee's acceptance of the offered future |
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1 | | increase in income shall constitute his or her agreement to |
2 | | that condition. |
3 | | (d) The Fund shall make a good faith effort to contact each |
4 | | Tier 1 employee subject to this Section. The Fund shall mail |
5 | | information describing the required election to each Tier 1 |
6 | | employee by United States Postal Service mail to his or her |
7 | | last known address on file with the Fund. If the Tier 1 |
8 | | employee is not responsive to other means of contact, it is |
9 | | sufficient for the Fund to publish the details of any required |
10 | | elections on its website or to publish those details in a |
11 | | regularly published newsletter or other existing public forum. |
12 | | Tier 1 employees who are subject to this Section shall be |
13 | | provided with an election packet containing information |
14 | | regarding their options, as well as the forms necessary to make |
15 | | the required election. Upon request, the Fund shall offer Tier |
16 | | 1 employees an opportunity to receive information from the Fund |
17 | | before making the required election. The information may |
18 | | consist of video materials, group presentations, individual |
19 | | consultation with a member or authorized representative of the |
20 | | Fund in person or by telephone or other electronic means, or |
21 | | any combination of those methods. The Fund shall not provide |
22 | | advice or counseling with respect to which election a Tier 1 |
23 | | employee should make or specific to the legal or tax |
24 | | circumstances of or consequences to the Tier 1 employee. |
25 | | The Fund shall inform Tier 1 employees in the election |
26 | | packet required under this subsection that the Tier 1 employee |
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1 | | may also wish to obtain information and counsel relating to the |
2 | | election required under this Section from any other available |
3 | | source, including, but not limited to, labor organizations and |
4 | | private counsel. |
5 | | In no event shall the Fund, its staff, or the Board be held |
6 | | liable for any information given to a member regarding the |
7 | | elections under this Section. The Fund shall coordinate with |
8 | | the Illinois Department of Central Management Services and each |
9 | | other retirement system administering an election in |
10 | | accordance with this amendatory Act of the 100th General |
11 | | Assembly to provide information concerning the impact of the |
12 | | election set forth in this Section. |
13 | | (e) Notwithstanding any other provision of law, an employer |
14 | | under this Article is required to offer each future increase in |
15 | | income expressly and irrevocably on the condition of not |
16 | | constituting "salary" under Section 17-113.4 to any Tier 1 |
17 | | employee who has made an election under paragraph (2) of |
18 | | subsection (a) of this Section. The offer shall also provide |
19 | | that the Tier 1 employee's acceptance of the offered future |
20 | | increase in income shall constitute his or her agreement to the |
21 | | condition set forth in this subsection. |
22 | | For purposes of legislative intent, the condition set forth |
23 | | in this subsection shall be construed in a manner that ensures |
24 | | that the condition is not violated or circumvented through any |
25 | | contrivance of any kind. |
26 | | (f) A member's election under this Section is not a |
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1 | | prohibited election under subdivision (j)(1) of Section 1-119 |
2 | | of this Code. |
3 | | (g) No provision of this Section shall be interpreted in a |
4 | | way that would cause the Fund to cease to be a qualified plan |
5 | | under Section 401(a) of the Internal Revenue Code of 1986. |
6 | | (h) If an election created by this amendatory Act in any |
7 | | other Article of this Code or any change deriving from that |
8 | | election is determined to be unconstitutional or otherwise |
9 | | invalid by a final unappealable decision of an Illinois court |
10 | | or a court of competent jurisdiction, the invalidity of that |
11 | | provision shall not in any way affect the validity of this |
12 | | Section or the changes deriving from the election required |
13 | | under this Section.
|
14 | | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
|
15 | | Sec. 17-116. Service retirement pension.
|
16 | | (a) Each teacher having 20 years of service upon attainment |
17 | | of age 55,
or who thereafter attains age 55 shall be entitled |
18 | | to a service retirement
pension upon or after attainment of age |
19 | | 55; and each teacher in service on or
after July 1, 1971, with |
20 | | 5 or more but less than 20 years of service shall be
entitled |
21 | | to receive a service retirement pension upon or after |
22 | | attainment of
age 62.
|
23 | | (b) The service retirement pension
for a teacher who |
24 | | retires on or after June 25, 1971, at age
60 or over, shall be |
25 | | calculated as follows:
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1 | | (1) For creditable service earned before July 1, 1998 |
2 | | that has not been
augmented under Section 17-119.1: 1.67% |
3 | | for each of the first 10 years
of service; 1.90% for each |
4 | | of the next 10 years of service; 2.10% for
each year of |
5 | | service in excess of 20 but not exceeding 30; and 2.30% for
|
6 | | each year of service in excess of 30, based upon average |
7 | | salary as
herein defined.
|
8 | | (2) For creditable service earned on or after July 1, |
9 | | 1998 by a member
who has at least 30 years of creditable |
10 | | service on July 1, 1998 and who does
not elect to augment |
11 | | service under Section 17-119.1: 2.3% of average salary
for |
12 | | each year of creditable service earned on or after July 1, |
13 | | 1998.
|
14 | | (3) For all other creditable service: 2.2% of average |
15 | | salary
for each year of creditable service.
|
16 | | (c) When computing such service retirement pensions, the
|
17 | | following conditions shall apply:
|
18 | | 1. Average salary shall consist of the average annual |
19 | | rate of salary
for the 4 consecutive years of validated |
20 | | service within the last 10 years
of service when such |
21 | | average annual rate was highest. In the determination
of |
22 | | average salary for retirement allowance purposes, for |
23 | | members who
commenced employment after August 31, 1979, |
24 | | that part of the salary for any
year shall be excluded |
25 | | which exceeds the annual full-time salary rate for
the |
26 | | preceding year by more than 20%. In the case of a member |
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1 | | who commenced
employment before August 31, 1979 and who |
2 | | receives salary during any year
after September 1, 1983 |
3 | | which exceeds the annual full time salary rate for
the |
4 | | preceding year by more than 20%,
an Employer and other |
5 | | employers of
eligible contributors as defined in Section |
6 | | 17-106
shall pay to the Fund an amount equal to the present |
7 | | value of the
additional service retirement pension |
8 | | resulting from such excess salary.
The present value of the |
9 | | additional service retirement pension shall be
computed by |
10 | | the Board on the basis of actuarial tables adopted by the
|
11 | | Board. If a member elects to receive a pension from this |
12 | | Fund
provided by
Section 20-121, his salary under the State |
13 | | Universities Retirement System
and the Teachers' |
14 | | Retirement System of the State of Illinois shall be
|
15 | | considered in determining such average salary. Amounts |
16 | | paid after the
effective date of this amendatory Act of |
17 | | 1991 for unused vacation time
earned after that effective |
18 | | date shall not under any circumstances be
included in the |
19 | | calculation of average salary or the annual rate of salary
|
20 | | for the purposes of this Article.
|
21 | | 2. Proportionate credit shall be given for validated |
22 | | service of less
than one year.
|
23 | | 3. For retirement at age 60 or over the pension shall |
24 | | be payable at
the full rate.
|
25 | | 4. For separation from service below age 60 to a |
26 | | minimum age of 55,
the pension shall be discounted at the |
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1 | | rate of 1/2 of one per cent for
each month that the age of |
2 | | the contributor is less than 60, but a
teacher may elect to |
3 | | defer the effective date of pension in order to
eliminate |
4 | | or reduce this discount. This discount shall not be |
5 | | applicable
to any participant who has at least 34 years of |
6 | | service or a
retirement pension of at least 74.6% of |
7 | | average salary on the date the
retirement annuity begins.
|
8 | | 5. No additional pension shall be granted for service |
9 | | exceeding 45
years. Beginning June 26, 1971 no pension |
10 | | shall exceed the greater of
$1,500 per month or 75% of |
11 | | average salary as herein defined.
|
12 | | 6. Service retirement pensions shall begin on the |
13 | | effective date of
resignation, retirement, the day |
14 | | following the close of the payroll
period for which service |
15 | | credit was validated, or the time the person
resigning or |
16 | | retiring attains age 55, or on a date elected by the
|
17 | | teacher, whichever shall be latest; provided that, for a |
18 | | person who first becomes a member after the effective date |
19 | | of this amendatory Act of the 99th General Assembly, the |
20 | | benefit shall not commence more than one year prior to the |
21 | | date of the Fund's receipt of an application for the |
22 | | benefit.
|
23 | | 7. A member who is eligible to receive a retirement |
24 | | pension of at least
74.6% of average salary and will attain |
25 | | age 55 on or before December 31
during the year which |
26 | | commences on July 1 shall be deemed to attain age 55 on
the |
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1 | | preceding June 1.
|
2 | | 8. A member retiring after the effective date of this |
3 | | amendatory Act
of 1998 shall receive a pension equal to 75% |
4 | | of average salary if the
member is qualified to receive a |
5 | | retirement pension equal to at least 74.6%
of average |
6 | | salary under this Article or as proportional annuities |
7 | | under
Article 20 of this Code.
|
8 | | (d) Notwithstanding any other provision of this Section, |
9 | | annual salary does not include any future increase in income |
10 | | that is
offered for service to a Tier 1 employee under this |
11 | | Article pursuant to the condition set forth in subsection (c) |
12 | | of Section
17-115.5 and accepted under that condition by a Tier |
13 | | 1 employee who has made the
election under paragraph (2) of |
14 | | subsection (a) of Section
17-115.5. |
15 | | Notwithstanding any other provision of this Section,
|
16 | | annual salary does not include any consideration payment made |
17 | | to a
Tier 1 employee. |
18 | | (Source: P.A. 99-702, eff. 7-29-16.)
|
19 | | (40 ILCS 5/17-119.2 new) |
20 | | Sec. 17-119.2. Automatic annual increases in service |
21 | | retirement pension and survivor's pension for certain Tier 1 |
22 | | employees. Notwithstanding any other provision of this |
23 | | Article, for a Tier 1 employee who made the election under |
24 | | paragraph (1) of subsection (a) of Section 17-115.5: |
25 | | (1) The initial increase in service retirement pension |
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1 | | shall occur on the January 1 occurring either on or after |
2 | | the attainment of age 67 or the fifth anniversary of the |
3 | | pension start date, whichever is earlier. |
4 | | (2) The amount of each automatic annual increase in |
5 | | service retirement pension or survivor's pension occurring |
6 | | on or after the effective date of that election shall be |
7 | | calculated as a percentage of the originally granted |
8 | | service retirement pension or survivor's pension, equal to |
9 | | 3% or one-half the annual unadjusted percentage increase |
10 | | (but
not less than zero) in the consumer price index-u for |
11 | | the
12 months ending with the September preceding each |
12 | | November
1, whichever is less. If the annual unadjusted |
13 | | percentage
change in the consumer price index-u for the 12 |
14 | | months ending with the September preceding each November 1 |
15 | | is zero
or there is a decrease, then the annuity shall not |
16 | | be
increased. |
17 | | For the purposes of this Section, "consumer price index-u"
|
18 | | means the index published by the Bureau of Labor Statistics of
|
19 | | the United States Department of Labor that measures the average
|
20 | | change in prices of goods and services purchased by all urban
|
21 | | consumers, United States city average, all items, 1982-84 =
|
22 | | 100. The new amount resulting from each annual adjustment shall
|
23 | | be determined by the Public Pension Division of the Department
|
24 | | of Insurance and made available to the Board by November 1 of |
25 | | each year.
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1 | | (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
|
2 | | Sec. 17-127. Financing; revenues for the Fund.
|
3 | | (a) The revenues for the Fund shall consist of: (1) amounts |
4 | | paid into
the Fund by contributors thereto and from employer |
5 | | contributions and State
appropriations in accordance with this |
6 | | Article; (2) amounts contributed to the
Fund by an Employer; |
7 | | (3) amounts contributed to the Fund pursuant to any law
now in |
8 | | force or hereafter to be enacted; (4) contributions from any |
9 | | other
source; and (5) the earnings on investments.
|
10 | | (b) The General Assembly finds that for many years the |
11 | | State has
contributed to the Fund an annual amount that is |
12 | | between 20% and 30% of the
amount of the annual State |
13 | | contribution to the Article 16 retirement system,
and the |
14 | | General Assembly declares that it is its goal and intention to |
15 | | continue
this level of contribution to the Fund in the future.
|
16 | | (c) Beginning in State fiscal year 1999, the State shall |
17 | | include in its annual
contribution to the Fund an additional |
18 | | amount equal to 0.544% of the Fund's
total teacher payroll; |
19 | | except that this additional contribution need not be
made in a |
20 | | fiscal year if the Board has certified in the previous fiscal |
21 | | year
that the Fund is at least 90% funded, based on actuarial |
22 | | determinations. These
additional State contributions are |
23 | | intended to offset a portion of the cost to
the Fund of the |
24 | | increases in retirement benefits resulting from this |
25 | | amendatory
Act of 1998.
|
26 | | (d) In addition to any other contribution required under |
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1 | | this Article, including the contribution required under |
2 | | subsection (c), for State fiscal year 2017, the State shall |
3 | | contribute the amount of $215,200,000 to the Fund. This amount |
4 | | shall be deemed a portion of the employer's required |
5 | | contribution. |
6 | | (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; |
7 | | 90-582, eff.
5-27-98; 90-655, eff. 7-30-98.)
|
8 | | (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) |
9 | | Sec. 17-129. Employer contributions; deficiency in Fund. |
10 | | (a) If in any fiscal year of the Board of Education ending |
11 | | prior to 1997 the
total amounts paid to the Fund from the Board |
12 | | of Education (other than under
this subsection, and other than |
13 | | amounts used for making or "picking up"
contributions on behalf |
14 | | of teachers) and from the State do not equal the total
|
15 | | contributions made by or on behalf of the teachers for such |
16 | | year, or if the
total income of the Fund in any such fiscal |
17 | | year of the Board of Education from
all sources is less than |
18 | | the total such expenditures by the Fund for such year,
the |
19 | | Board of Education shall, in the next succeeding year, in |
20 | | addition to any
other payment to the Fund set apart and |
21 | | appropriate from moneys from its tax
levy for educational |
22 | | purposes, a sum sufficient to remove such deficiency or
|
23 | | deficiencies, and promptly pay such sum into the Fund in order |
24 | | to restore any
of the reserves of the Fund that may have been |
25 | | so temporarily applied. Any
amounts received by the Fund after |
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1 | | December 4, 1997 from State appropriations, including under |
2 | | Section
17-127, shall be a credit against and shall fully |
3 | | satisfy any obligation that
may have arisen, or be claimed to |
4 | | have arisen, under this subsection (a) as a
result of any |
5 | | deficiency or deficiencies in the fiscal year of the Board of
|
6 | | Education ending in calendar year 1997. |
7 | | (b) (i) Notwithstanding any other provision of this |
8 | | Section, and notwithstanding any prior certification by the |
9 | | Board under subsection (c) for fiscal year 2011, the Board of |
10 | | Education's total required contribution to the Fund for fiscal |
11 | | year 2011 under this Section is $187,000,000. |
12 | | (ii) Notwithstanding any other provision of this Section, |
13 | | the Board of Education's total required contribution to the |
14 | | Fund for fiscal year 2012 under this Section is $192,000,000. |
15 | | (iii) Notwithstanding any other provision of this Section, |
16 | | the Board of Education's total required contribution to the |
17 | | Fund for fiscal year 2013 under this Section is $196,000,000. |
18 | | (iv) For fiscal years 2014 through 2059, the minimum |
19 | | contribution to the Fund to be made by the Board of Education |
20 | | in each fiscal year shall be an amount determined by the Fund |
21 | | to be sufficient to bring the total assets of the Fund up to |
22 | | 90% of the total actuarial liabilities of the Fund by the end |
23 | | of fiscal year 2059. In making these determinations, the |
24 | | required Board of Education contribution shall be calculated |
25 | | each year as a level percentage of the applicable employee |
26 | | payrolls over the years remaining to and including fiscal year |
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1 | | 2059 and shall be determined under the projected unit credit |
2 | | actuarial cost method. |
3 | | (v) Beginning in fiscal year 2060, the minimum Board of |
4 | | Education contribution for each fiscal year shall be the amount |
5 | | needed to maintain the total assets of the Fund at 90% of the |
6 | | total actuarial liabilities of the Fund. |
7 | | (vi) Notwithstanding any other provision of this |
8 | | subsection (b), for any fiscal year, the contribution to the |
9 | | Fund from the Board of Education shall not be required to be in |
10 | | excess of the amount calculated as needed to maintain the |
11 | | assets (or cause the assets to be) at the 90% level by the end |
12 | | of the fiscal year. |
13 | | (vii) Any contribution by the State to or for the benefit |
14 | | of the Fund, including, without limitation, as referred to |
15 | | under Section 17-127, shall be a credit against any |
16 | | contribution required to be made by the Board of Education |
17 | | under this subsection (b). |
18 | | (c) The Board shall determine the amount of Board of |
19 | | Education
contributions required for each fiscal year on the |
20 | | basis of the actuarial
tables and other assumptions adopted by |
21 | | the Board and the recommendations of
the actuary, in order to |
22 | | meet the minimum contribution requirements of
subsections (a) |
23 | | and (b). Annually, on or before February 28, the Board shall
|
24 | | certify to the Board of Education the amount of the required |
25 | | Board of Education
contribution for the coming fiscal year. The |
26 | | certification shall include a
copy of the actuarial |
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1 | | recommendations upon which it is based. |
2 | | Beginning in fiscal year 2018, any increase or
decrease in |
3 | | the Board of Education's contribution over the prior fiscal |
4 | | year due
exclusively to changes in actuarial or investment |
5 | | assumptions
adopted by the Board shall be included in the Board |
6 | | of Education's
contribution to the Fund, as a percentage of the |
7 | | applicable
employee payroll, and shall be increased in equal |
8 | | annual
increments so that by the fiscal year occurring 5 years
|
9 | | after the adoption of the actuarial or investment assumptions,
|
10 | | the Board of Education is contributing at the rate otherwise |
11 | | required under
this Section. |
12 | | (d) As soon as practical after the effective date of this |
13 | | amendatory Act of the 100th General Assembly, the Board shall |
14 | | recalculate and
recertify to the Board of Education the amount |
15 | | of the required Board of Education contribution to the Fund for |
16 | | fiscal years 2017 and 2018, as necessary to take into account |
17 | | the changes in required Board of Education contributions made |
18 | | by this amendatory Act of the 100th General Assembly. |
19 | | On or before May 1, 2018, the Board shall recalculate and
|
20 | | recertify to the Board of Education the amount of the required |
21 | | Board of Education contribution to the Fund for fiscal year |
22 | | 2019, taking into account the effect on the Fund's liabilities |
23 | | of the elections made under Section 17-115.5. |
24 | | (Source: P.A. 96-889, eff. 4-14-10.)
|
25 | | (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
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1 | | Sec. 17-130. Participants' contributions by payroll |
2 | | deductions.
|
3 | | (a) Except as provided in subsection (a-5), there There |
4 | | shall be deducted from the salary of each teacher 7.50% of his |
5 | | salary for service or disability retirement pension and
0.5% of |
6 | | salary for the annual increase in base pension.
|
7 | | In addition, there shall be deducted from the salary of |
8 | | each teacher
1% of his salary for survivors' and children's |
9 | | pensions.
|
10 | | (a-5) Beginning on July 1, 2018 or the effective date of |
11 | | the Tier 1 employee's election under paragraph (1) of Section |
12 | | 17-115.5, whichever is later, in lieu of the contributions |
13 | | otherwise required under subsection (a), each Tier 1 employee |
14 | | who made the election under paragraph (1) of Section 17-115.5 |
15 | | shall make contributions of 7.50% of salary for service or |
16 | | disability retirement pension and 0.6% of salary for survivors' |
17 | | and children's pensions. |
18 | | (b) An Employer and any employer of eligible contributors |
19 | | as defined in
Section 17-106 is authorized to make the |
20 | | necessary deductions from the salaries
of its teachers. Such |
21 | | amounts shall be included as a part of the Fund. An
Employer |
22 | | and any employer of eligible contributors as defined in Section |
23 | | 17-106
shall formulate such rules and regulations as may be |
24 | | necessary to give effect
to the provisions of this Section.
|
25 | | (c) All persons employed as teachers shall, by such |
26 | | employment,
accept the provisions of this Article and of |
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1 | | Sections 34-83 to 34-85,
inclusive, of "The School Code", |
2 | | approved March 18, 1961, as amended,
and thereupon become |
3 | | contributors to the Fund in accordance with the
terms thereof. |
4 | | The provisions of this Article and of those Sections
shall |
5 | | become a part of the contract of employment.
|
6 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
7 | | retires with
more than 34 years of creditable service, and |
8 | | (iii) does not elect to qualify
for the augmented rate under |
9 | | Section 17-119.1 shall be entitled, at the time of
retirement, |
10 | | to receive a partial refund of contributions made under this
|
11 | | Section for service occurring after the later of June 30, 1998 |
12 | | or attainment of
34 years of creditable service, in an amount |
13 | | equal to 1.00% of the salary upon
which those contributions |
14 | | were based.
|
15 | | (Source: P.A. 97-8, eff. 6-13-11.)
|
16 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
|
17 | | Sec. 18-131. Financing; employer contributions.
|
18 | | (a) The State of Illinois shall make contributions to this |
19 | | System by
appropriations of the amounts which, together with |
20 | | the contributions of
participants, net earnings on |
21 | | investments, and other income, will meet the
costs of |
22 | | maintaining and administering this System on a 90% funded basis |
23 | | in
accordance with actuarial recommendations.
|
24 | | (b) The Board shall determine the amount of State |
25 | | contributions
required for each fiscal year on the basis of the |
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1 | | actuarial tables and other
assumptions adopted by the Board and |
2 | | the prescribed rate of interest, using
the formula in |
3 | | subsection (c).
|
4 | | (c) For State fiscal years 2018 through 2045, the minimum |
5 | | contribution to the System to be made by the State for each |
6 | | fiscal year shall be an amount determined by the System to be |
7 | | sufficient to bring the total assets of the System up to 90% of |
8 | | the total actuarial liabilities of the System by the end of |
9 | | State fiscal year 2045. In making these determinations, the |
10 | | required State contribution shall be calculated each year as a |
11 | | level percentage of total payroll, including payroll that is |
12 | | not deemed pensionable, over the years remaining to and |
13 | | including fiscal year 2045 and shall be determined under the |
14 | | projected unit credit actuarial cost method. |
15 | | Beginning in State fiscal year 2018, any increase or |
16 | | decrease in State contribution over the prior fiscal year due |
17 | | exclusively to changes in actuarial or investment assumptions |
18 | | adopted by the Board shall be included in the State |
19 | | contribution to the System, as a percentage of the applicable |
20 | | employee payroll, and shall be increased in equal annual |
21 | | increments so that by the State fiscal year occurring 5 years |
22 | | after the adoption of the actuarial or investment assumptions, |
23 | | the State is contributing at the rate otherwise required under |
24 | | this Section. |
25 | | For State fiscal years 2012 through 2017 2045 , the minimum |
26 | | contribution
to the System to be made by the State for each |
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1 | | fiscal year shall be an amount
determined by the System to be |
2 | | sufficient to bring the total assets of the
System up to 90% of |
3 | | the total actuarial liabilities of the System by the end of
|
4 | | State fiscal year 2045. In making these determinations, the |
5 | | required State
contribution shall be calculated each year as a |
6 | | level percentage of payroll
over the years remaining to and |
7 | | including fiscal year 2045 and shall be
determined under the |
8 | | projected unit credit actuarial cost method.
|
9 | | For State fiscal years 1996 through 2005, the State |
10 | | contribution to
the System, as a percentage of the applicable |
11 | | employee payroll, shall be
increased in equal annual increments |
12 | | so that by State fiscal year 2011, the
State is contributing at |
13 | | the rate required under this Section.
|
14 | | Notwithstanding any other provision of this Article, the |
15 | | total required State
contribution for State fiscal year 2006 is |
16 | | $29,189,400.
|
17 | | Notwithstanding any other provision of this Article, the |
18 | | total required State
contribution for State fiscal year 2007 is |
19 | | $35,236,800.
|
20 | | For each of State fiscal years 2008 through 2009, the State |
21 | | contribution to
the System, as a percentage of the applicable |
22 | | employee payroll, shall be
increased in equal annual increments |
23 | | from the required State contribution for State fiscal year |
24 | | 2007, so that by State fiscal year 2011, the
State is |
25 | | contributing at the rate otherwise required under this Section.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State contribution for State fiscal year 2010 is |
2 | | $78,832,000 and shall be made from the proceeds of bonds sold |
3 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
4 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
5 | | expenses determined by the System's share of total bond |
6 | | proceeds, (ii) any amounts received from the General Revenue |
7 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
8 | | proceeds due to the issuance of discounted bonds, if |
9 | | applicable. |
10 | | Notwithstanding any other provision of this Article, the |
11 | | total required State contribution for State fiscal year 2011 is
|
12 | | the amount recertified by the System on or before April 1, 2011 |
13 | | pursuant to Section 18-140 and shall be made from the proceeds |
14 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
15 | | the General
Obligation Bond Act, less (i) the pro rata share of |
16 | | bond sale
expenses determined by the System's share of total |
17 | | bond
proceeds, (ii) any amounts received from the General |
18 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
19 | | bond
proceeds due to the issuance of discounted bonds, if
|
20 | | applicable. |
21 | | Beginning in State fiscal year 2046, the minimum State |
22 | | contribution for
each fiscal year shall be the amount needed to |
23 | | maintain the total assets of
the System at 90% of the total |
24 | | actuarial liabilities of the System.
|
25 | | Amounts received by the System pursuant to Section 25 of |
26 | | the Budget Stabilization Act or Section 8.12 of the State |
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1 | | Finance Act in any fiscal year do not reduce and do not |
2 | | constitute payment of any portion of the minimum State |
3 | | contribution required under this Article in that fiscal year. |
4 | | Such amounts shall not reduce, and shall not be included in the |
5 | | calculation of, the required State contributions under this |
6 | | Article in any future year until the System has reached a |
7 | | funding ratio of at least 90%. A reference in this Article to |
8 | | the "required State contribution" or any substantially similar |
9 | | term does not include or apply to any amounts payable to the |
10 | | System under Section 25 of the Budget Stabilization Act.
|
11 | | Notwithstanding any other provision of this Section, the |
12 | | required State
contribution for State fiscal year 2005 and for |
13 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
14 | | under this Section and
certified under Section 18-140, shall |
15 | | not exceed an amount equal to (i) the
amount of the required |
16 | | State contribution that would have been calculated under
this |
17 | | Section for that fiscal year if the System had not received any |
18 | | payments
under subsection (d) of Section 7.2 of the General |
19 | | Obligation Bond Act, minus
(ii) the portion of the State's |
20 | | total debt service payments for that fiscal
year on the bonds |
21 | | issued in fiscal year 2003 for the purposes of that Section |
22 | | 7.2, as determined
and certified by the Comptroller, that is |
23 | | the same as the System's portion of
the total moneys |
24 | | distributed under subsection (d) of Section 7.2 of the General
|
25 | | Obligation Bond Act. In determining this maximum for State |
26 | | fiscal years 2008 through 2010, however, the amount referred to |
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1 | | in item (i) shall be increased, as a percentage of the |
2 | | applicable employee payroll, in equal increments calculated |
3 | | from the sum of the required State contribution for State |
4 | | fiscal year 2007 plus the applicable portion of the State's |
5 | | total debt service payments for fiscal year 2007 on the bonds |
6 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
7 | | the General
Obligation Bond Act, so that, by State fiscal year |
8 | | 2011, the
State is contributing at the rate otherwise required |
9 | | under this Section.
|
10 | | (d) For purposes of determining the required State |
11 | | contribution to the System, the value of the System's assets |
12 | | shall be equal to the actuarial value of the System's assets, |
13 | | which shall be calculated as follows: |
14 | | As of June 30, 2008, the actuarial value of the System's |
15 | | assets shall be equal to the market value of the assets as of |
16 | | that date. In determining the actuarial value of the System's |
17 | | assets for fiscal years after June 30, 2008, any actuarial |
18 | | gains or losses from investment return incurred in a fiscal |
19 | | year shall be recognized in equal annual amounts over the |
20 | | 5-year period following that fiscal year. |
21 | | (e) For purposes of determining the required State |
22 | | contribution to the system for a particular year, the actuarial |
23 | | value of assets shall be assumed to earn a rate of return equal |
24 | | to the system's actuarially assumed rate of return. |
25 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
26 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
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1 | | 7-13-12.)
|
2 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
|
3 | | Sec. 18-140. To certify required State contributions and |
4 | | submit vouchers.
|
5 | | (a) The Board shall certify to the Governor, on or before |
6 | | November 15 of
each year until November 15, 2011, the amount of |
7 | | the required State contribution to the System for the
following |
8 | | fiscal year and shall specifically identify the System's |
9 | | projected State normal cost for that fiscal year. The |
10 | | certification shall include a copy of the actuarial
|
11 | | recommendations upon which it is based and shall specifically |
12 | | identify the System's projected State normal cost for that |
13 | | fiscal year.
|
14 | | On or before November 1 of each year, beginning November 1, |
15 | | 2012, the Board shall submit to the State Actuary, the |
16 | | Governor, and the General Assembly a proposed certification of |
17 | | the amount of the required State contribution to the System for |
18 | | the next fiscal year, along with all of the actuarial |
19 | | assumptions, calculations, and data upon which that proposed |
20 | | certification is based. On or before January 1 of each year |
21 | | beginning January 1, 2013, the State Actuary shall issue a |
22 | | preliminary report concerning the proposed certification and |
23 | | identifying, if necessary, recommended changes in actuarial |
24 | | assumptions that the Board must consider before finalizing its |
25 | | certification of the required State contributions. On or before |
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1 | | January 15, 2013 and every January 15 thereafter, the Board |
2 | | shall certify to the Governor and the General Assembly the |
3 | | amount of the required State contribution for the next fiscal |
4 | | year. The Board's certification must note any deviations from |
5 | | the State Actuary's recommended changes, the reason or reasons |
6 | | for not following the State Actuary's recommended changes, and |
7 | | the fiscal impact of not following the State Actuary's |
8 | | recommended changes on the required State contribution. |
9 | | On or before May 1, 2004, the Board shall recalculate and |
10 | | recertify to
the Governor the amount of the required State |
11 | | contribution to the System for
State fiscal year 2005, taking |
12 | | into account the amounts appropriated to and
received by the |
13 | | System under subsection (d) of Section 7.2 of the General
|
14 | | Obligation Bond Act.
|
15 | | On or before July 1, 2005, the Board shall recalculate and |
16 | | recertify
to the Governor the amount of the required State
|
17 | | contribution to the System for State fiscal year 2006, taking |
18 | | into account the changes in required State contributions made |
19 | | by this amendatory Act of the 94th General Assembly.
|
20 | | On or before April 1, 2011, the Board shall recalculate and |
21 | | recertify to the Governor the amount of the required State |
22 | | contribution to the System for State fiscal year 2011, applying |
23 | | the changes made by Public Act 96-889 to the System's assets |
24 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
25 | | was approved on that date. |
26 | | As soon as practical after the effective date of this |
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1 | | amendatory Act of the 100th General Assembly, the Board shall |
2 | | recalculate and recertify to the State Actuary, the Governor, |
3 | | and the General Assembly the amount of the State contribution |
4 | | to the System for State fiscal year 2018, taking into account |
5 | | the changes in required State contributions made by this |
6 | | amendatory Act of the 100th General Assembly. The State Actuary |
7 | | shall review the assumptions and valuations underlying the |
8 | | Board's revised certification and issue a preliminary report |
9 | | concerning the proposed recertification and identifying, if |
10 | | necessary, recommended changes in actuarial assumptions that |
11 | | the Board must consider before finalizing its certification of |
12 | | the required State contributions. The Board's final |
13 | | certification must note any deviations from the State Actuary's |
14 | | recommended changes, the reason or reasons for not following |
15 | | the State Actuary's recommended changes, and the fiscal impact |
16 | | of not following the State Actuary's recommended changes on the |
17 | | required State contribution. |
18 | | (b) Beginning in State fiscal year 1996, on or as soon as |
19 | | possible after
the 15th day of each month the Board shall |
20 | | submit vouchers for payment of State
contributions to the |
21 | | System, in a total monthly amount of one-twelfth of the
|
22 | | required annual State contribution certified under subsection |
23 | | (a).
From the effective date of this amendatory Act
of the 93rd |
24 | | General Assembly through June 30, 2004, the Board shall not
|
25 | | submit vouchers for the remainder of fiscal year 2004 in excess |
26 | | of the
fiscal year 2004 certified contribution amount |
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1 | | determined
under this Section after taking into consideration |
2 | | the transfer to the
System under subsection (c) of Section |
3 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
4 | | the State Comptroller and Treasurer by warrants drawn
on the |
5 | | funds appropriated to the System for that fiscal year.
|
6 | | If in any month the amount remaining unexpended from all |
7 | | other
appropriations to the System for the applicable fiscal |
8 | | year (including the
appropriations to the System under Section |
9 | | 8.12 of the State Finance Act and
Section 1 of the State |
10 | | Pension Funds Continuing Appropriation Act) is less than
the |
11 | | amount lawfully vouchered under this Section, the difference |
12 | | shall be paid
from the General Revenue Fund under the |
13 | | continuing appropriation authority
provided in Section 1.1 of |
14 | | the State Pension Funds Continuing Appropriation
Act.
|
15 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
16 | | 97-694, eff. 6-18-12.)
|
17 | | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
|
18 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
19 | | which has been held unconstitutional)
|
20 | | Sec. 20-121. Calculation of proportional retirement |
21 | | annuities. |
22 | | (a) Upon
retirement of the employee, a proportional |
23 | | retirement annuity shall be computed
by each participating |
24 | | system in which pension credit has been established on
the |
25 | | basis of pension credits under each system. The computation |
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1 | | shall be in
accordance with the formula or method prescribed by |
2 | | each participating system
which is in effect at the date of the |
3 | | employee's latest withdrawal from service
covered by any of the |
4 | | systems in which he has pension credits which he elects
to have |
5 | | considered under this Article. However, the amount of any |
6 | | retirement
annuity payable under the self-managed plan |
7 | | established under Section 15-158.2
of this Code or under the |
8 | | defined contribution plan established under Article 2, 14, 15, |
9 | | or 16 of this Code depends solely on the value of the |
10 | | participant's vested account
balances and is not subject to any |
11 | | proportional adjustment under this
Section.
|
12 | | (a-5) For persons who participate in a defined contribution |
13 | | plan established under Article 2, 14, 15, or 16 of this Code to |
14 | | whom the provisions of this Article apply, the pension credits |
15 | | established under the defined contribution plan may be |
16 | | considered in
determining eligibility for or the amount of the |
17 | | defined benefit retirement annuity that is
payable by any other |
18 | | participating system. |
19 | | (b) Combined pension credit under all retirement systems |
20 | | subject to this
Article shall be considered in determining |
21 | | whether the minimum qualification
has been met and the formula |
22 | | or method of computation which shall be applied , except as may |
23 | | be otherwise provided with respect to vesting in State or |
24 | | employer contributions in a defined contribution plan .
If a |
25 | | system has a step-rate formula for calculation of the |
26 | | retirement annuity,
pension credits covering previous service |
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1 | | which have been established under
another system shall be |
2 | | considered in determining which range or ranges of
the |
3 | | step-rate formula are to be applicable to the employee.
|
4 | | (c) Interest on pension credit shall continue to accumulate |
5 | | in accordance with
the provisions of the law governing the |
6 | | retirement system in which the same
has been established during |
7 | | the time an employee is in the service of another
employer, on |
8 | | the assumption such employee, for interest purposes for pension
|
9 | | credit, is continuing in the service covered by such retirement |
10 | | system.
|
11 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
12 | | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
|
13 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
14 | | which has been held unconstitutional)
|
15 | | Sec. 20-123. Survivor's annuity. The provisions governing |
16 | | a retirement
annuity shall be applicable to a survivor's |
17 | | annuity. Appropriate credits shall
be established for |
18 | | survivor's annuity purposes in those participating systems
|
19 | | which provide survivor's annuities, according to the same |
20 | | conditions and
subject to the same limitations and restrictions |
21 | | herein prescribed for a
retirement annuity. If a participating |
22 | | system has no survivor's annuity
benefit, or if the survivor's |
23 | | annuity benefit under that system is waived,
pension credit |
24 | | established in that system shall not be considered
in |
25 | | determining eligibility for or the amount of the survivor's |
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1 | | annuity which
may be payable by any other participating system.
|
2 | | For persons who participate in the self-managed plan |
3 | | established under
Section 15-158.2 or the portable benefit |
4 | | package established under Section
15-136.4, pension credit |
5 | | established under Article 15 may be considered in
determining |
6 | | eligibility for or the amount of the survivor's annuity that is
|
7 | | payable by any other participating system, but pension credit |
8 | | established in
any other system shall not result in any right |
9 | | to a survivor's annuity under
the Article 15 system.
|
10 | | For persons who participate in a defined contribution plan |
11 | | established under Article 2, 14, 15, or 16 of this Code to whom |
12 | | the provisions of this Article apply, the pension credits |
13 | | established under the defined contribution plan may be |
14 | | considered in
determining eligibility for or the amount of the |
15 | | defined benefit survivor's annuity that is
payable by any other |
16 | | participating system, but pension credits established in
any |
17 | | other system shall not result in any right to or increase in |
18 | | the value of a survivor's annuity under
the defined |
19 | | contribution plan, which depends solely on the options chosen |
20 | | and the value of the participant's vested account
balances and |
21 | | is not subject to any proportional adjustment under this
|
22 | | Section. |
23 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
24 | | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
|
25 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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1 | | which has been held unconstitutional)
|
2 | | Sec. 20-124. Maximum benefits. |
3 | | (a) In no event shall the combined retirement
or survivors |
4 | | annuities exceed the highest annuity which would have been |
5 | | payable
by any participating system in which the employee has |
6 | | pension credits, if all
of his pension credits had been |
7 | | validated in that system.
|
8 | | If the combined annuities should exceed the highest maximum |
9 | | as determined
in accordance with this Section, the respective |
10 | | annuities shall be reduced
proportionately according to the |
11 | | ratio which the amount of each proportional
annuity bears to |
12 | | the aggregate of all such annuities.
|
13 | | (b) In the case of a participant in the self-managed plan |
14 | | established under
Section 15-158.2 of this Code to whom the |
15 | | provisions of this Article apply:
|
16 | | (i) For purposes of calculating the combined |
17 | | retirement annuity and
the proportionate reduction, if |
18 | | any, in a retirement annuity other than one
payable under |
19 | | the self-managed plan, the amount of the Article 15 |
20 | | retirement
annuity shall be deemed to be the highest |
21 | | annuity to which the annuitant would
have been entitled if |
22 | | he or she had participated in the traditional benefit
|
23 | | package as defined in Section 15-103.1 rather than the |
24 | | self-managed plan.
|
25 | | (ii) For purposes of calculating the combined |
26 | | survivor's annuity and
the proportionate reduction, if |
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1 | | any, in a survivor's annuity other than one
payable under |
2 | | the self-managed plan, the amount of the Article 15 |
3 | | survivor's
annuity shall be deemed to be the highest |
4 | | survivor's annuity to which the
survivor would have been |
5 | | entitled if the deceased employee had participated in
the |
6 | | traditional benefit package as defined in Section 15-103.1 |
7 | | rather than the
self-managed plan.
|
8 | | (iii) Benefits payable under the self-managed plan are |
9 | | not subject to
proportionate reduction under this Section.
|
10 | | (c) In the case of a participant in a defined contribution |
11 | | plan established under
Article 2, 14, 15, or 16 of this Code to |
12 | | whom the provisions of this Article apply: |
13 | | (i) For purposes of calculating the combined |
14 | | retirement annuity and
the proportionate reduction, if |
15 | | any, in a defined benefit retirement annuity, any benefit |
16 | | payable under the defined contribution plan shall not be |
17 | | considered. |
18 | | (ii) For purposes of calculating the combined |
19 | | survivor's annuity and
the proportionate reduction, if |
20 | | any, in a defined benefit survivor's annuity, any benefit |
21 | | payable under the defined contribution plan shall not be |
22 | | considered. |
23 | | (iii) Benefits payable under a defined contribution |
24 | | plan established under Article 2, 14, 15, or 16 of this |
25 | | Code are not subject to
proportionate reduction under this |
26 | | Section. |
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1 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
2 | | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
|
3 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
4 | | which has been held unconstitutional)
|
5 | | Sec. 20-125. Return to employment - suspension of benefits. |
6 | | If a retired
employee returns to employment which is covered by |
7 | | a system from which he is
receiving a proportional annuity |
8 | | under this Article, his proportional annuity
from all |
9 | | participating systems shall be suspended during the period of
|
10 | | re-employment, except that this suspension does not apply to |
11 | | any
distributions payable under the self-managed plan |
12 | | established under Section
15-158.2 or under a defined |
13 | | contribution plan established under Article 2, 14, 15, or 16 of |
14 | | this Code.
|
15 | | The provisions of the Article under which such employment |
16 | | would be
covered shall govern the determination of whether the |
17 | | employee has returned
to employment, and if applicable the |
18 | | exemption of temporary employment or
employment not exceeding a |
19 | | specified duration or frequency, for all
participating systems |
20 | | from which the retired employee is receiving a
proportional |
21 | | annuity under this Article, notwithstanding any contrary
|
22 | | provisions in the other Articles governing such systems.
|
23 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
24 | | (40 ILCS 5/2-165 rep.) |
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1 | | (40 ILCS 5/2-166 rep.) |
2 | | (40 ILCS 5/14-155 rep.) |
3 | | (40 ILCS 5/14-156 rep.) |
4 | | (40 ILCS 5/15-200 rep.) |
5 | | (40 ILCS 5/15-201 rep.) |
6 | | (40 ILCS 5/16-205 rep.) |
7 | | (40 ILCS 5/16-206 rep.) |
8 | | Section 50. The Illinois Pension Code is amended by |
9 | | repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200, |
10 | | 15-201, 16-205, and 16-206. |
11 | | Section 55. The State Pension Funds Continuing |
12 | | Appropriation Act is amended by changing Section 1.1 and adding |
13 | | Section 1.9 as follows:
|
14 | | (40 ILCS 15/1.1)
|
15 | | Sec. 1.1. Appropriations to certain retirement systems.
|
16 | | (a) There is hereby appropriated from the General Revenue |
17 | | Fund to the
General Assembly Retirement System, on a continuing |
18 | | monthly basis, the amount,
if any, by which the total available |
19 | | amount of all other appropriations to that
retirement system |
20 | | for the payment of State contributions is less than the total
|
21 | | amount of the vouchers for required State contributions |
22 | | lawfully submitted by
the retirement system for that month |
23 | | under Section 2-134 of the Illinois
Pension Code.
|
24 | | (b) There is hereby appropriated from the General Revenue |
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1 | | Fund to the
State Universities Retirement System, on a |
2 | | continuing monthly basis, the
amount, if any, by which the |
3 | | total available amount of all other appropriations
to that |
4 | | retirement system for the payment of State contributions, |
5 | | including
any deficiency in the required contributions of the |
6 | | optional
retirement program established under Section 15-158.2 |
7 | | of the Illinois Pension
Code,
is less than
the total amount of |
8 | | the vouchers for required State contributions lawfully
|
9 | | submitted by the retirement system for that month under Section |
10 | | 15-165 of the
Illinois Pension Code.
|
11 | | (c) There is hereby appropriated from the Common School |
12 | | Fund to the
Teachers' Retirement System of the State of |
13 | | Illinois,
on a continuing monthly basis, the amount, if any, by |
14 | | which the total
available amount of all other appropriations to |
15 | | that retirement system for the
payment of State contributions |
16 | | is less than the total amount of the vouchers
for required |
17 | | State contributions lawfully submitted by the retirement |
18 | | system
for that month under Section 16-158 of the Illinois |
19 | | Pension Code.
|
20 | | (d) There is hereby appropriated from the General Revenue |
21 | | Fund to the Judges
Retirement System of Illinois, on a |
22 | | continuing monthly basis, the amount, if
any, by which the |
23 | | total available amount of all other appropriations to that
|
24 | | retirement system for the payment of State contributions is |
25 | | less than the total
amount of the vouchers for required State |
26 | | contributions lawfully submitted by
the retirement system for |
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1 | | that month under Section 18-140 of the Illinois
Pension Code.
|
2 | | (e) The continuing appropriations provided by subsections |
3 | | (a), (b), (c), and (d) of this Section shall first
be available |
4 | | in State fiscal year 1996. The continuing appropriations |
5 | | provided by subsection (h) of this Section shall first
be |
6 | | available as provided in that subsection (h).
|
7 | | (f) For State fiscal year 2010 only, the continuing |
8 | | appropriations provided by this Section are equal to the amount |
9 | | certified by each System on or before December 31, 2008, less |
10 | | (i) the gross proceeds of the bonds sold in fiscal year 2010 |
11 | | under the authorization contained in subsection (a) of Section |
12 | | 7.2 of the General Obligation Bond Act and (ii) any amounts |
13 | | received from the State Pensions Fund. |
14 | | (g) For State fiscal year 2011 only, the continuing |
15 | | appropriations provided by this Section are equal to the amount
|
16 | | certified by each System on or before April 1, 2011, less
(i) |
17 | | the gross proceeds of the bonds sold in fiscal year 2011
under |
18 | | the authorization contained in subsection (a) of Section
7.2 of |
19 | | the General Obligation Bond Act and (ii) any amounts
received |
20 | | from the State Pensions Fund. |
21 | | (h) For State fiscal year 2017, there is hereby |
22 | | appropriated from the Common School Fund to the
Public School |
23 | | Teachers' Pension and Retirement Fund of Chicago the amount, if |
24 | | any, by which the total
available amount of all other State |
25 | | appropriations to that Retirement Fund for the
payment of State |
26 | | contributions under subsection (d) of Section 17-127 of the |
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1 | | Illinois Pension Code is less than the total amount of required |
2 | | State contributions under subsection (d) of Section 17-127. |
3 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
4 | | 96-1511, eff. 1-27-11.)
|
5 | | (40 ILCS 15/1.9 new) |
6 | | Sec. 1.9. Appropriation for consideration payment. There |
7 | | is hereby appropriated from the General Revenue Fund to the |
8 | | State Comptroller, on a continuing basis, all amounts necessary |
9 | | for the payment of consideration payments under subsection (b) |
10 | | of Sections 2-110.3, 14-106.5, 15-132.9, 16-122.9, and |
11 | | 17-115.5 of the Illinois Pension Code, in the amounts certified |
12 | | to the State Comptroller by the respective retirement system or |
13 | | pension fund. |
14 | | Section 60. The School Code is amended by changing Sections |
15 | | 24-1 and 24-8 and by adding Section 34-18.53 as follows:
|
16 | | (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
|
17 | | Sec. 24-1.
Appointment-Salaries-Payment-School |
18 | | month-School term.)
School boards shall appoint all teachers, |
19 | | determine qualifications of
employment
and fix the amount of |
20 | | their
salaries subject to any limitation set forth in this Act |
21 | | and subject to any applicable restrictions in Section 16-122.9 |
22 | | of the Illinois Pension Code . They shall pay
the wages of |
23 | | teachers monthly, subject, however, to the provisions of
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1 | | Section 24-21. The school month shall be the same as the |
2 | | calendar month
but by resolution the school board may adopt for |
3 | | its use a month of 20
days, including holidays. The school term |
4 | | shall consist of at least the
minimum number of pupil |
5 | | attendance days required by Section 10-19, any
additional legal |
6 | | school holidays, days of teachers' institutes, or
equivalent |
7 | | professional educational experiences, and one or two days at
|
8 | | the beginning of the school term when used as a teachers' |
9 | | workshop.
|
10 | | (Source: P.A. 80-249.)
|
11 | | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
|
12 | | Sec. 24-8. Minimum salary. In fixing the salaries of |
13 | | teachers, school boards shall pay those who
serve on a |
14 | | full-time basis not less than a rate for the school year that
|
15 | | is based upon training completed in a recognized institution of |
16 | | higher
learning, as follows: for the school year beginning July |
17 | | 1, 1980 and
thereafter, less than a bachelor's degree, $9,000; |
18 | | 120 semester hours or
more and a bachelor's degree, $10,000; |
19 | | 150 semester hours or more and a
master's degree, $11,000.
|
20 | | Based upon previous public school
experience in this State |
21 | | or any other State, territory, dependency or
possession of the |
22 | | United States, or in schools operated by or under the
auspices |
23 | | of the United States, teachers who serve on a full-time basis
|
24 | | shall have their salaries increased to at least the following |
25 | | amounts
above the starting salary for a teacher in such |
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1 | | district in the same
classification: with less than a |
2 | | bachelor's degree, $750 after 5 years;
with 120 semester hours |
3 | | or more and a bachelor's degree, $1,000 after 5
years and |
4 | | $1,600 after 8 years; with 150 semester hours or more and a |
5 | | master's
degree, $1,250 after 5 years, $2,000 after 8 years and |
6 | | $2,750 after 13 years. However, any salary increase is subject |
7 | | to any applicable restrictions in Section 16-122.9 of the |
8 | | Illinois Pension Code.
|
9 | | For the purpose of this Section a teacher's salary shall |
10 | | include any amount
paid by the school district on behalf of the |
11 | | teacher, as teacher contributions,
to the Teachers' Retirement |
12 | | System of the State of Illinois.
|
13 | | If a school board establishes a schedule for teachers' |
14 | | salaries based
on education and experience, not inconsistent |
15 | | with this Section, all certificated
nurses employed by that |
16 | | board shall be paid in accordance with the provisions
of such |
17 | | schedule (subject to any applicable restrictions in Section |
18 | | 16-122.9 of the Illinois Pension Code) .
|
19 | | For purposes of this Section, a teacher who submits a |
20 | | certificate of
completion to the school office prior to the |
21 | | first day of the school
term shall be considered to have the |
22 | | degree stated in such certificate.
|
23 | | (Source: P.A. 83-913.)
|
24 | | (105 ILCS 5/34-18.53 new) |
25 | | Sec. 34-18.53. Future increase in income. The Board of |
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1 | | Education must not pay, offer, or agree to pay any future |
2 | | increase in income, as that term is defined in Section 17-113.5 |
3 | | of the Illinois Pension Code, to any person in a manner that |
4 | | violates Section 17-115.5 of the Illinois Pension Code. |
5 | | Section 65. The State Universities Civil Service Act is |
6 | | amended by changing Section 36d as follows:
|
7 | | (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
|
8 | | Sec. 36d. Powers and duties of the Merit Board. The Merit |
9 | | Board shall have the power and duty-
|
10 | | (1) To approve a classification plan prepared under its |
11 | | direction,
assigning to each class positions of |
12 | | substantially similar duties. The
Merit Board shall have |
13 | | power to delegate to its Director the duty of
assigning |
14 | | each position in the classified service to the appropriate
|
15 | | class in the classification plan approved by the Merit |
16 | | Board.
|
17 | | (2) To prescribe the duties of each class of positions |
18 | | and the
qualifications required by employment in that |
19 | | class.
|
20 | | (3) To prescribe the range of compensation for each |
21 | | class or to fix
a single rate of compensation for employees |
22 | | in a particular class; and
to establish other conditions of |
23 | | employment which an employer and
employee representatives |
24 | | have agreed upon as fair and equitable. The
Merit Board |
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1 | | shall direct the payment of the "prevailing rate of wages"
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2 | | in those classifications in which, on January 1, 1952, any |
3 | | employer is
paying such prevailing rate and in such other |
4 | | classes as the Merit Board
may thereafter determine. |
5 | | "Prevailing rate of wages" as used herein
shall be the |
6 | | wages paid generally in the locality in which the work is
|
7 | | being performed to employees engaged in work of a similar |
8 | | character.
Subject to any applicable restrictions in |
9 | | Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois |
10 | | Pension Code, each Each employer covered by the University |
11 | | System shall be authorized to
negotiate with |
12 | | representatives of employees to determine appropriate
|
13 | | ranges or rates of compensation or other conditions of |
14 | | employment and
may recommend to the Merit Board for |
15 | | establishment the rates or ranges
or other conditions of |
16 | | employment which the employer and employee
representatives |
17 | | have agreed upon as fair and equitable , but excluding the |
18 | | changes, the impact of changes, and the implementation of |
19 | | the changes set forth in this amendatory Act of the 100th |
20 | | General Assembly . Any rates or
ranges established prior to |
21 | | January 1, 1952, and hereafter, shall not be
changed except |
22 | | in accordance with the procedures herein provided.
|
23 | | (4) To recommend to the institutions and agencies |
24 | | specified in
Section 36e standards for hours of work, |
25 | | holidays, sick leave, overtime
compensation and vacation |
26 | | for the purpose of improving conditions of
employment |
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1 | | covered therein and for the purpose of insuring conformity
|
2 | | with the prevailing rate principal.
|
3 | | (5) To prescribe standards of examination for each |
4 | | class, the
examinations to be related to the duties of such |
5 | | class. The Merit Board
shall have power to delegate to the |
6 | | Director and his staff the
preparation, conduct and grading |
7 | | of examinations. Examinations may be
written, oral, by |
8 | | statement of training and experience, in the form of
tests |
9 | | of knowledge, skill, capacity, intellect, aptitude; or, by |
10 | | any
other method, which in the judgment of the Merit Board |
11 | | is reasonable and
practical for any particular |
12 | | classification. Different examining
procedures may be |
13 | | determined for the examinations in different
|
14 | | classifications but all examinations in the same |
15 | | classification shall be
uniform.
|
16 | | (6) To authorize the continuous recruitment of |
17 | | personnel and to that
end, to delegate to the Director and |
18 | | his staff the power and the duty to
conduct open and |
19 | | continuous competitive examinations for all
|
20 | | classifications of employment.
|
21 | | (7) To cause to be established from the results of |
22 | | examinations
registers for each class of positions in the |
23 | | classified service of the
State Universities Civil Service |
24 | | System, of the persons who shall
attain the minimum mark |
25 | | fixed by the Merit Board for the examination;
and such |
26 | | persons shall take rank upon the registers as candidates in |
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1 | | the
order of their relative excellence as determined by |
2 | | examination, without
reference to priority of time of |
3 | | examination.
|
4 | | (8) To provide by its rules for promotions in the |
5 | | classified
service. Vacancies shall be filled by promotion |
6 | | whenever practicable.
For the purpose of this paragraph, an |
7 | | advancement in class shall
constitute a promotion.
|
8 | | (9) To set a probationary period of employment of no |
9 | | less than 6 months
and no longer than 12 months for each |
10 | | class of positions in the classification
plan, the length |
11 | | of the probationary period for each class to be determined
|
12 | | by the Director.
|
13 | | (10) To provide by its rules for employment at regular |
14 | | rates of
compensation of persons with physical |
15 | | disabilities in positions in which the
disability does not |
16 | | prevent the individual from furnishing satisfactory
|
17 | | service.
|
18 | | (11) To make and publish rules, to carry out the |
19 | | purpose of the
State Universities Civil Service System and |
20 | | for examination, appointments,
transfers and removals and |
21 | | for maintaining and keeping records of the
efficiency of |
22 | | officers and employees and groups of officers and
employees |
23 | | in accordance with the provisions of Sections 36b to 36q,
|
24 | | inclusive, and said Merit Board may from time to time make |
25 | | changes in
such rules.
|
26 | | (12) To appoint a Director and such assistants and |
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1 | | other clerical
and technical help as may be necessary |
2 | | efficiently to administer
Sections 36b to 36q, inclusive. |
3 | | To authorize the Director to appoint an
assistant resident |
4 | | at the place of employment of each employer specified
in |
5 | | Section 36e and this assistant may be authorized to give |
6 | | examinations
and to certify names from the regional |
7 | | registers provided in Section
36k.
|
8 | | (13) To submit to the Governor of this state on or |
9 | | before November 1
of each year prior to the regular session |
10 | | of the General Assembly a
report of the University System's |
11 | | business and an estimate of the amount
of appropriation |
12 | | from state funds required for the purpose of
administering |
13 | | the University System.
|
14 | | (Source: P.A. 99-143, eff. 7-27-15.)
|
15 | | Section 70. The University of Illinois Act is amended by |
16 | | adding Section 100 as follows: |
17 | | (110 ILCS 305/100 new) |
18 | | Sec. 100. Future increases in income. The University of |
19 | | Illinois must not pay, offer, or agree to pay any future |
20 | | increase in income, as that term is defined in Section |
21 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
22 | | to any person in a manner that violates Section 14-106.5, |
23 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
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1 | | Section 75. The Southern Illinois University Management |
2 | | Act is amended by adding Section 85 as follows: |
3 | | (110 ILCS 520/85 new) |
4 | | Sec. 85. Future increases in income. Southern Illinois |
5 | | University must not pay, offer, or agree to pay any future |
6 | | increase in income, as that term is defined in Section |
7 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
8 | | to any person in a manner that violates Section 14-106.5, |
9 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
10 | | Section 80. The Chicago State University Law is amended by |
11 | | adding Section 5-195 as follows: |
12 | | (110 ILCS 660/5-195 new) |
13 | | Sec. 5-195. Future increases in income. Chicago State |
14 | | University must not pay, offer, or agree to pay any future |
15 | | increase in income, as that term is defined in Section |
16 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
17 | | to any person in a manner that violates Section 14-106.5, |
18 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
19 | | Section 85. The Eastern Illinois University Law is amended |
20 | | by adding Section 10-195 as follows: |
21 | | (110 ILCS 665/10-195 new) |
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1 | | Sec. 10-195. Future increases in income. Eastern Illinois |
2 | | University must not pay, offer, or agree to pay any future |
3 | | increase in income, as that term is defined in Section |
4 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
5 | | to any person in a manner that violates Section 14-106.5, |
6 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
7 | | Section 90. The Governors State University Law is amended |
8 | | by adding Section 15-195 as follows: |
9 | | (110 ILCS 670/15-195 new) |
10 | | Sec. 15-195. Future increases in income. Governors State |
11 | | University must not pay, offer, or agree to pay any future |
12 | | increase in income, as that term is defined in Section |
13 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
14 | | to any person in a manner that violates Section 14-106.5, |
15 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
16 | | Section 95. The Illinois State University Law is amended by |
17 | | adding Section 20-200 as follows: |
18 | | (110 ILCS 675/20-200 new) |
19 | | Sec. 20-200. Future increases in income. Illinois State |
20 | | University must not pay, offer, or agree to pay any future |
21 | | increase in income, as that term is defined in Section |
22 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
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1 | | to any person in a manner that violates Section 14-106.5, |
2 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
3 | | Section 100. The Northeastern Illinois University Law is |
4 | | amended by adding Section 25-195 as follows: |
5 | | (110 ILCS 680/25-195 new) |
6 | | Sec. 25-195. Future increases in income. Northeastern |
7 | | Illinois University must not pay, offer, or agree to pay any |
8 | | future increase in income, as that term is defined in Section |
9 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
10 | | to any person in a manner that violates Section 14-106.5, |
11 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
12 | | Section 105. The Northern Illinois University Law is |
13 | | amended by adding Section 30-205 as follows: |
14 | | (110 ILCS 685/30-205 new) |
15 | | Sec. 30-205. Future increases in income. Northern Illinois |
16 | | University must not pay, offer, or agree to pay any future |
17 | | increase in income, as that term is defined in Section |
18 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
19 | | to any person in a manner that violates Section 14-106.5, |
20 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
21 | | Section 110. The Western Illinois University Law is amended |
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1 | | by adding Section 35-200 as follows: |
2 | | (110 ILCS 690/35-200 new) |
3 | | Sec. 35-200. Future increases in income. Western Illinois |
4 | | University must not pay, offer, or agree to pay any future |
5 | | increase in income, as that term is defined in Section |
6 | | 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, |
7 | | to any person in a manner that violates Section 14-106.5, |
8 | | 15-132.9, or 16-122.9 of the Illinois Pension Code. |
9 | | Section 115. The Public Community College Act is amended by |
10 | | changing Sections 3-26 and 3-42 as follows:
|
11 | | (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
|
12 | | Sec. 3-26.
(a) To make appointments and fix the salaries of |
13 | | a
chief administrative officer, who shall be the executive
|
14 | | officer of the board, other administrative personnel , and all |
15 | | teachers , but subject to any applicable restrictions in Section |
16 | | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code .
|
17 | | In making these appointments and fixing the salaries, the board |
18 | | may
make no discrimination on account of sex, race, creed, |
19 | | color or national origin.
|
20 | | (b) Upon the written request of an employee, to
withhold |
21 | | from the compensation of that employee the membership
dues of |
22 | | such employee
payable to any specified labor organization
as |
23 | | defined in the Illinois Educational Labor Relations Act. Under |
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1 | | such
arrangement, an amount shall be withheld for each regular |
2 | | payroll period
which is equal to the prorata share of the |
3 | | annual membership dues plus
any payments or contributions and |
4 | | the
board shall pay such withholding to the specified labor |
5 | | organization
within 10 working days from the time of the |
6 | | withholding.
|
7 | | (Source: P.A. 83-1014.)
|
8 | | (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
|
9 | | Sec. 3-42.
To employ such personnel as may be needed, to |
10 | | establish policies
governing their employment and dismissal, |
11 | | and to fix the amount of their
compensation , subject to any |
12 | | applicable restrictions in Section 14-106.5, 15-132.9, or |
13 | | 16-122.9 of the Illinois Pension Code . In the employment, |
14 | | establishment of policies and fixing of
compensation the board |
15 | | may make no discrimination on account of sex, race,
creed, |
16 | | color or national origin.
|
17 | | Residence within any community college district or outside |
18 | | any community
college district shall not be considered:
|
19 | | (a) in determining whether to retain or not retain any |
20 | | employee of a community
college employed prior to July 1, |
21 | | 1977 or prior to the adoption by the community
college |
22 | | board of a resolution making residency within the community |
23 | | college
district of some or all employees a condition of |
24 | | employment, whichever is later;
|
25 | | (b) in assigning, promoting or transferring any |
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1 | | employee of a community
college to an office or position |
2 | | employed prior to July 1, 1977 or prior
to the adoption by |
3 | | the community college board of a resolution making |
4 | | residency
within the community college district of some or |
5 | | all employees a condition
of employment, whichever is |
6 | | later; or
|
7 | | (c) in determining the salary or other compensation of |
8 | | any employee of
a community college.
|
9 | | (Source: P.A. 80-248.)
|
10 | | Section 120. The Illinois Educational Labor Relations Act |
11 | | is amended by changing Sections 4, 14, and 17 and by adding |
12 | | Section 10.6 as follows:
|
13 | | (115 ILCS 5/4) (from Ch. 48, par. 1704)
|
14 | | Sec. 4. Employer rights. Employers shall not be required to |
15 | | bargain over matters of inherent
managerial policy, which shall |
16 | | include such areas of discretion or policy
as the functions of |
17 | | the employer, standards of services, its overall
budget, the |
18 | | organizational structure and selection of new employees and
|
19 | | direction of employees. Employers, however, shall be required |
20 | | to bargain
collectively with regard to policy matters directly |
21 | | affecting wages (but subject to any applicable restrictions in |
22 | | Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the |
23 | | Illinois Pension Code) , hours
and terms and conditions of |
24 | | employment as well as the impact thereon upon
request by |
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1 | | employee representatives , but excluding the changes, the |
2 | | impact of changes, and the implementation of the changes set |
3 | | forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of |
4 | | the Illinois Pension Code . To preserve the rights of employers
|
5 | | and exclusive representatives which have established |
6 | | collective bargaining
relationships or negotiated collective |
7 | | bargaining agreements prior to the
effective date of this Act, |
8 | | employers shall be required to bargain
collectively with regard |
9 | | to any matter concerning wages (but subject to any applicable |
10 | | restrictions in Section 14-106.5, 15-132.9, 16-122.9, or |
11 | | 17-115.5 of the Illinois Pension Code) , hours or
conditions of |
12 | | employment about which they have bargained for and agreed to
in |
13 | | a collective bargaining agreement prior to the effective date |
14 | | of this Act , but excluding the changes, the impact of changes, |
15 | | and the implementation of the changes set forth in Section |
16 | | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois |
17 | | Pension Code .
|
18 | | (Source: P.A. 83-1014.)
|
19 | | (115 ILCS 5/10.6 new) |
20 | | Sec. 10.6. No collective bargaining or interest |
21 | | arbitration regarding certain changes to the Illinois Pension |
22 | | Code. |
23 | | (a) Notwithstanding any other provision of this Act, |
24 | | employers shall not be required to bargain over matters |
25 | | affected by the changes, the impact of the changes, and the |
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1 | | implementation of the changes to Article 14, 15, 16, or 17 of |
2 | | the Illinois Pension Code made by the addition of Section |
3 | | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois |
4 | | Pension Code, which are deemed to be prohibited subjects of |
5 | | bargaining. Notwithstanding any provision of this Act, the |
6 | | changes, impact of the changes, or implementation of the |
7 | | changes to Article 14, 15, 16, or 17 of the Illinois Pension |
8 | | Code made by the addition of Section 14-106.5, 15-132.9, |
9 | | 16-122.9, or 17-115.5 of the Illinois Pension Code shall not be |
10 | | subject to interest arbitration or any award issued pursuant to |
11 | | interest arbitration. The provisions of this Section shall not |
12 | | apply to an employment contract or collective bargaining |
13 | | agreement that is in effect on the effective date of this |
14 | | amendatory Act of the 100th General Assembly. However, any such |
15 | | contract or agreement that is modified, amended, renewed, or |
16 | | superseded after the effective date of this amendatory Act of |
17 | | the 100th General Assembly shall be subject to the provisions |
18 | | of this Section. The provisions of this Section shall not apply |
19 | | to the ability of any employer and employee representative to |
20 | | bargain collectively with regard to the pick up of employee |
21 | | contributions pursuant to Section 14-133.1, 15-157.1, |
22 | | 16-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code. |
23 | | (b) Nothing in this Section shall be construed as otherwise |
24 | | limiting any of the obligations and requirements applicable to |
25 | | employers under any of the provisions of this Act, including, |
26 | | but not limited to, the requirement to bargain collectively |
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1 | | with regard to policy matters directly affecting wages, hours, |
2 | | and terms and conditions of employment as well as the impact |
3 | | thereon upon request by employee representatives, except for |
4 | | the matters set forth in subsection (a) of this Section that |
5 | | are deemed prohibited subjects of bargaining. Nothing in this |
6 | | Section shall be construed as otherwise limiting any of the |
7 | | rights of employees or employee representatives under the |
8 | | provisions of this Act, except for the matters set forth in |
9 | | subsection (a) of this Section that are deemed prohibited |
10 | | subjects of bargaining. |
11 | | (c) In case of any conflict between this Section and any |
12 | | other provisions of this Act or any other law, the provisions |
13 | | of this Section shall control.
|
14 | | (115 ILCS 5/14) (from Ch. 48, par. 1714)
|
15 | | Sec. 14. Unfair labor practices.
|
16 | | (a) Educational employers, their agents
or representatives |
17 | | are prohibited from:
|
18 | | (1) Interfering, restraining or coercing employees in |
19 | | the exercise of
the rights guaranteed under this Act.
|
20 | | (2) Dominating or interfering with the formation, |
21 | | existence or
administration of any employee organization.
|
22 | | (3) Discriminating in regard to hire or tenure of |
23 | | employment or any term
or condition of employment to |
24 | | encourage or discourage membership in any
employee |
25 | | organization.
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1 | | (4) Discharging or otherwise discriminating against an |
2 | | employee because
he or she has signed or filed an |
3 | | affidavit, authorization card, petition or
complaint or |
4 | | given any information or testimony under this Act.
|
5 | | (5) Subject to and except as provided in Section 10.6, |
6 | | refusing Refusing to bargain collectively in good faith |
7 | | with an employee
representative which is the exclusive |
8 | | representative of employees in an
appropriate unit, |
9 | | including but not limited to the discussing of grievances
|
10 | | with the exclusive representative; provided, however, that |
11 | | if an alleged
unfair labor practice involves |
12 | | interpretation or application of the terms
of a collective |
13 | | bargaining agreement and said agreement contains a
|
14 | | grievance and arbitration procedure, the Board may defer |
15 | | the resolution of
such dispute to the grievance and |
16 | | arbitration procedure contained in said
agreement. |
17 | | However, no actions of the employer taken to implement or |
18 | | otherwise comply with the provisions of subsection (a) of |
19 | | Section 10.6 shall constitute or give rise to an unfair |
20 | | labor practice under this Act.
|
21 | | (6) Refusing to reduce a collective bargaining |
22 | | agreement to writing and
signing such agreement.
|
23 | | (7) Violating any of the rules and regulations |
24 | | promulgated by the Board
regulating the conduct of |
25 | | representation elections.
|
26 | | (8) Refusing to comply with the provisions of a binding |
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1 | | arbitration award.
|
2 | | (9) Expending or causing the expenditure of public |
3 | | funds to any
external agent, individual, firm, agency, |
4 | | partnership or association in any
attempt to influence the |
5 | | outcome of representational elections held
pursuant to |
6 | | paragraph (c) of Section 7 of this Act; provided, that |
7 | | nothing
in this subsection shall be construed to limit an |
8 | | employer's right to be
represented on any matter pertaining |
9 | | to unit determinations, unfair labor
practice charges or |
10 | | pre-election conferences in any formal or informal
|
11 | | proceeding before the Board, or to seek or obtain advice |
12 | | from legal counsel.
Nothing in this paragraph shall be |
13 | | construed to prohibit an employer from
expending or causing |
14 | | the expenditure of public funds on, or seeking or
obtaining |
15 | | services or advice from, any organization, group or |
16 | | association
established by, and including educational or |
17 | | public employers, whether or
not covered by this Act, the |
18 | | Illinois Public Labor Relations Act or the
public |
19 | | employment labor relations law of any other state or the |
20 | | federal
government, provided that such services or advice |
21 | | are generally available
to the membership of the |
22 | | organization, group, or association, and are not
offered |
23 | | solely in an attempt to influence the outcome of a |
24 | | particular
representational election.
|
25 | | (b) Employee organizations, their agents or |
26 | | representatives or educational
employees are prohibited from:
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1 | | (1) Restraining or coercing employees in the exercise |
2 | | of the rights
guaranteed under this Act, provided that a |
3 | | labor organization or its
agents shall commit an unfair |
4 | | labor practice under this paragraph in duty
of fair |
5 | | representation cases only by intentional misconduct in |
6 | | representing
employees under this Act.
|
7 | | (2) Restraining or coercing an educational employer in |
8 | | the selection of
his representative for the purposes of |
9 | | collective bargaining or the adjustment
of grievances.
|
10 | | (3) Refusing to bargain collectively in good faith with |
11 | | an educational
employer, if they have been designated in |
12 | | accordance with the provisions
of this Act as the exclusive |
13 | | representative of employees in an appropriate
unit.
|
14 | | (4) Violating any of the rules and regulations |
15 | | promulgated by the Board
regulating the conduct of |
16 | | representation elections.
|
17 | | (5) Refusing to reduce a collective bargaining |
18 | | agreement to writing and
signing such agreement.
|
19 | | (6) Refusing to comply with the provisions of a binding |
20 | | arbitration award.
|
21 | | (c) The expressing of any views, argument, opinion or the
|
22 | | dissemination thereof, whether in written, printed, graphic or |
23 | | visual form,
shall not constitute or be evidence of an unfair |
24 | | labor practice under any
of the provisions of this Act, if such |
25 | | expression contains no threat of
reprisal or force or promise |
26 | | of benefit.
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1 | | (d) The actions of a Financial Oversight Panel created |
2 | | pursuant to Section
1A-8
of the School Code due to a district |
3 | | violating a financial plan shall not
constitute or be evidence |
4 | | of an unfair labor practice under any of the
provisions of this |
5 | | Act. Such actions include, but are not limited to,
reviewing, |
6 | | approving, or rejecting a school district budget or a |
7 | | collective
bargaining agreement.
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8 | | (Source: P.A. 89-572, eff. 7-30-96.)
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9 | | (115 ILCS 5/17) (from Ch. 48, par. 1717)
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10 | | Sec. 17. Effect on other laws. In case of any conflict |
11 | | between the
provisions of this Act and any other law (other |
12 | | than Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the |
13 | | Illinois Pension Code) , executive order or administrative
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14 | | regulation, the provisions of this Act shall prevail and |
15 | | control.
The provisions of this Act are subject to any |
16 | | applicable restrictions in Section 14-106.5, 15-132.9, |
17 | | 16-122.9, or 17-115.5 of the Illinois Pension Code, as well as |
18 | | the changes, impact of changes, and implementation of changes |
19 | | set forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 |
20 | | of the Illinois Pension Code. Nothing in this Act shall be |
21 | | construed to replace or diminish the rights
of employees |
22 | | established by Section 36d of "An Act to create the State |
23 | | Universities
Civil Service System", approved May 11, 1905, as |
24 | | amended or modified.
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25 | | (Source: P.A. 83-1014.)
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1 | | Section 900. The State Mandates Act is amended by adding |
2 | | Section 8.41 as follows: |
3 | | (30 ILCS 805/8.41 new) |
4 | | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 |
5 | | of this Act, no reimbursement by the State is required for the |
6 | | implementation of any mandate created by this amendatory Act of |
7 | | the 100th General Assembly. |
8 | | Section 970. Severability. Except as otherwise provided in
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9 | | this Act, the provisions of this Act are severable under |
10 | | Section 1.31 of the Statute on Statutes. |
11 | | Section 999. Effective date. This Act takes effect upon |
12 | | becoming law. |
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 5 ILCS 315/7.6 new | | | 4 | | 5 ILCS 315/10 | from Ch. 48, par. 1610 | | 5 | | 5 ILCS 315/15 | from Ch. 48, par. 1615 | | 6 | | 5 ILCS 375/3 | from Ch. 127, par. 523 | | 7 | | 5 ILCS 375/10 | from Ch. 127, par. 530 | | 8 | | 15 ILCS 205/5 new | | | 9 | | 15 ILCS 310/13a new | | | 10 | | 15 ILCS 410/13a new | | | 11 | | 15 ILCS 510/12a new | | | 12 | | 20 ILCS 5/5-647 new | | | 13 | | 30 ILCS 122/20 | | | 14 | | 40 ILCS 5/1-160 | | | 15 | | 40 ILCS 5/1-161 new | | | 16 | | 40 ILCS 5/1-162 new | | | 17 | | 40 ILCS 5/2-101 | from Ch. 108 1/2, par. 2-101 | | 18 | | 40 ILCS 5/2-105 | from Ch. 108 1/2, par. 2-105 | | 19 | | 40 ILCS 5/2-105.3 new | | | 20 | | 40 ILCS 5/2-107 | from Ch. 108 1/2, par. 2-107 | | 21 | | 40 ILCS 5/2-107.9 new | | | 22 | | 40 ILCS 5/2-107.10 new | | | 23 | | 40 ILCS 5/2-108 | from Ch. 108 1/2, par. 2-108 | | 24 | | 40 ILCS 5/2-110.3 new | | | 25 | | 40 ILCS 5/2-119.1 | from Ch. 108 1/2, par. 2-119.1 | |
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| 1 | | 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 | | 2 | | 40 ILCS 5/2-126 | from Ch. 108 1/2, par. 2-126 | | 3 | | 40 ILCS 5/2-134 | from Ch. 108 1/2, par. 2-134 | | 4 | | 40 ILCS 5/2-162 | | | 5 | | 40 ILCS 5/2-165.1 new | | | 6 | | 40 ILCS 5/2-166.1 new | | | 7 | | 40 ILCS 5/14-103.10 | from Ch. 108 1/2, par. 14-103.10 | | 8 | | 40 ILCS 5/14-103.41 new | | | 9 | | 40 ILCS 5/14-103.42 new | | | 10 | | 40 ILCS 5/14-103.43 new | | | 11 | | 40 ILCS 5/14-106.5 new | | | 12 | | 40 ILCS 5/14-114 | from Ch. 108 1/2, par. 14-114 | | 13 | | 40 ILCS 5/14-131 | | | 14 | | 40 ILCS 5/14-133 | from Ch. 108 1/2, par. 14-133 | | 15 | | 40 ILCS 5/14-135.08 | from Ch. 108 1/2, par. 14-135.08 | | 16 | | 40 ILCS 5/14-147.5 new | | | 17 | | 40 ILCS 5/14-152.1 | | | 18 | | 40 ILCS 5/14-155.1 new | | | 19 | | 40 ILCS 5/14-155.2 new | | | 20 | | 40 ILCS 5/14-156.1 new | | | 21 | | 40 ILCS 5/15-108.1 | | | 22 | | 40 ILCS 5/15-108.2 | | | 23 | | 40 ILCS 5/15-111 | from Ch. 108 1/2, par. 15-111 | | 24 | | 40 ILCS 5/15-112.1 new | | | 25 | | 40 ILCS 5/15-112.2 new | | | 26 | | 40 ILCS 5/15-132.9 new | | |
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| 1 | | 40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 | | 2 | | 40 ILCS 5/15-155 | from Ch. 108 1/2, par. 15-155 | | 3 | | 40 ILCS 5/15-157 | from Ch. 108 1/2, par. 15-157 | | 4 | | 40 ILCS 5/15-165 | from Ch. 108 1/2, par. 15-165 | | 5 | | 40 ILCS 5/15-185.5 new | | | 6 | | 40 ILCS 5/15-198 | | | 7 | | 40 ILCS 5/15-200.1 new | | | 8 | | 40 ILCS 5/15-201.1 new | | | 9 | | 40 ILCS 5/16-107.1 new | | | 10 | | 40 ILCS 5/16-121 | from Ch. 108 1/2, par. 16-121 | | 11 | | 40 ILCS 5/16-121.1 new | | | 12 | | 40 ILCS 5/16-121.2 new | | | 13 | | 40 ILCS 5/16-122.9 new | | | 14 | | 40 ILCS 5/16-133.1 | from Ch. 108 1/2, par. 16-133.1 | | 15 | | 40 ILCS 5/16-136.1 | from Ch. 108 1/2, par. 16-136.1 | | 16 | | 40 ILCS 5/16-152 | from Ch. 108 1/2, par. 16-152 | | 17 | | 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 | | 18 | | 40 ILCS 5/16-190.5 new | | | 19 | | 40 ILCS 5/16-203 | | | 20 | | 40 ILCS 5/16-205.1 new | | | 21 | | 40 ILCS 5/16-206.1 new | | | 22 | | 40 ILCS 5/17-106.05 new | | | 23 | | 40 ILCS 5/17-113.4 new | | | 24 | | 40 ILCS 5/17-113.5 new | | | 25 | | 40 ILCS 5/17-113.6 new | | | 26 | | 40 ILCS 5/17-115.5 new | | |
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| 1 | | 40 ILCS 5/17-116 | from Ch. 108 1/2, par. 17-116 | | 2 | | 40 ILCS 5/17-119.2 new | | | 3 | | 40 ILCS 5/17-127 | from Ch. 108 1/2, par. 17-127 | | 4 | | 40 ILCS 5/17-129 | from Ch. 108 1/2, par. 17-129 | | 5 | | 40 ILCS 5/17-130 | from Ch. 108 1/2, par. 17-130 | | 6 | | 40 ILCS 5/18-131 | from Ch. 108 1/2, par. 18-131 | | 7 | | 40 ILCS 5/18-140 | from Ch. 108 1/2, par. 18-140 | | 8 | | 40 ILCS 5/20-121 | from Ch. 108 1/2, par. 20-121 | | 9 | | 40 ILCS 5/20-123 | from Ch. 108 1/2, par. 20-123 | | 10 | | 40 ILCS 5/20-124 | from Ch. 108 1/2, par. 20-124 | | 11 | | 40 ILCS 5/20-125 | from Ch. 108 1/2, par. 20-125 | | 12 | | 40 ILCS 5/2-165 rep. | | | 13 | | 40 ILCS 5/2-166 rep. | | | 14 | | 40 ILCS 5/14-155 rep. | | | 15 | | 40 ILCS 5/14-156 rep. | | | 16 | | 40 ILCS 5/15-200 rep. | | | 17 | | 40 ILCS 5/15-201 rep. | | | 18 | | 40 ILCS 5/16-205 rep. | | | 19 | | 40 ILCS 5/16-206 rep. | | | 20 | | 40 ILCS 15/1.1 | | | 21 | | 40 ILCS 15/1.9 new | | | 22 | | 105 ILCS 5/24-1 | from Ch. 122, par. 24-1 | | 23 | | 105 ILCS 5/24-8 | from Ch. 122, par. 24-8 | | 24 | | 105 ILCS 5/34-18.53 new | | | 25 | | 110 ILCS 70/36d | from Ch. 24 1/2, par. 38b3 | | 26 | | 110 ILCS 305/100 new | | |
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| 1 | | 110 ILCS 520/85 new | | | 2 | | 110 ILCS 660/5-195 new | | | 3 | | 110 ILCS 665/10-195 new | | | 4 | | 110 ILCS 670/15-195 new | | | 5 | | 110 ILCS 675/20-200 new | | | 6 | | 110 ILCS 680/25-195 new | | | 7 | | 110 ILCS 685/30-205 new | | | 8 | | 110 ILCS 690/35-200 new | | | 9 | | 110 ILCS 805/3-26 | from Ch. 122, par. 103-26 | | 10 | | 110 ILCS 805/3-42 | from Ch. 122, par. 103-42 | | 11 | | 115 ILCS 5/4 | from Ch. 48, par. 1704 | | 12 | | 115 ILCS 5/10.6 new | | | 13 | | 115 ILCS 5/14 | from Ch. 48, par. 1714 | | 14 | | 115 ILCS 5/17 | from Ch. 48, par. 1717 | | 15 | | 30 ILCS 805/8.41 new | |
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