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| | HB4045 Engrossed | | LRB100 12674 RPS 26063 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The State Employees Group Insurance Act of 1971 |
5 | | is amended by changing Sections 3 and 10 as follows:
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6 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
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7 | | Sec. 3. Definitions. Unless the context otherwise |
8 | | requires, the
following words and phrases as used in this Act |
9 | | shall have the following
meanings. The Department may define |
10 | | these and other words and phrases
separately for the purpose of |
11 | | implementing specific programs providing benefits
under this |
12 | | Act.
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13 | | (a) "Administrative service organization" means any |
14 | | person, firm or
corporation experienced in the handling of |
15 | | claims which is
fully qualified, financially sound and capable |
16 | | of meeting the service
requirements of a contract of |
17 | | administration executed with the Department.
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18 | | (b) "Annuitant" means (1) an employee who retires, or has |
19 | | retired,
on or after January 1, 1966 on an immediate annuity |
20 | | under the provisions
of Articles 2, 14 (including an employee |
21 | | who has elected to receive an alternative retirement |
22 | | cancellation payment under Section 14-108.5 of the Illinois |
23 | | Pension Code in lieu of an annuity or who meets the criteria |
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1 | | for retirement, but in lieu of receiving an annuity under that |
2 | | Article has elected to receive an accelerated pension benefit |
3 | | payment under Section 14-147.5 of that Article ), 15 (including |
4 | | an employee who has retired under the optional
retirement |
5 | | program established under Section 15-158.2 or who meets the |
6 | | criteria for retirement but in lieu of receiving an annuity |
7 | | under that Article has elected to receive an accelerated |
8 | | pension benefit payment under Section 15-185.5 of the Article ),
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9 | | paragraphs (2), (3), or (5) of Section 16-106 (including an |
10 | | employee who meets the criteria for retirement, but in lieu of |
11 | | receiving an annuity under that Article has elected to receive |
12 | | an accelerated pension benefit payment under Section 16-190.5 |
13 | | of the Illinois Pension Code) , or
Article 18 of the Illinois |
14 | | Pension Code; (2) any person who was receiving
group insurance |
15 | | coverage under this Act as of March 31, 1978 by
reason of his |
16 | | status as an annuitant, even though the annuity in relation
to |
17 | | which such coverage was provided is a proportional annuity |
18 | | based on less
than the minimum period of service required for a |
19 | | retirement annuity in
the system involved; (3) any person not |
20 | | otherwise covered by this Act
who has retired as a |
21 | | participating member under Article 2 of the Illinois
Pension |
22 | | Code but is ineligible for the retirement annuity under Section
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23 | | 2-119 of the Illinois Pension Code; (4) the spouse of any |
24 | | person who
is receiving a retirement annuity under Article 18 |
25 | | of the Illinois Pension
Code and who is covered under a group |
26 | | health insurance program sponsored
by a governmental employer |
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1 | | other than the State of Illinois and who has
irrevocably |
2 | | elected to waive his or her coverage under this Act and to have
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3 | | his or her spouse considered as the "annuitant" under this Act |
4 | | and not as
a "dependent"; or (5) an employee who retires, or |
5 | | has retired, from a
qualified position, as determined according |
6 | | to rules promulgated by the
Director, under a qualified local |
7 | | government, a qualified rehabilitation
facility, a qualified |
8 | | domestic violence shelter or service, or a qualified child |
9 | | advocacy center. (For definition
of "retired employee", see (p) |
10 | | post).
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11 | | (b-5) (Blank).
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12 | | (b-6) (Blank).
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13 | | (b-7) (Blank).
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14 | | (c) "Carrier" means (1) an insurance company, a corporation |
15 | | organized
under the Limited Health Service Organization Act or |
16 | | the Voluntary Health
Services Plan Act, a partnership, or other |
17 | | nongovernmental organization,
which is authorized to do group |
18 | | life or group health insurance business in
Illinois, or (2) the |
19 | | State of Illinois as a self-insurer.
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20 | | (d) "Compensation" means salary or wages payable on a |
21 | | regular
payroll by the State Treasurer on a warrant of the |
22 | | State Comptroller out
of any State, trust or federal fund, or |
23 | | by the Governor of the State
through a disbursing officer of |
24 | | the State out of a trust or out of
federal funds, or by any |
25 | | Department out of State, trust, federal or
other funds held by |
26 | | the State Treasurer or the Department, to any person
for |
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1 | | personal services currently performed, and ordinary or |
2 | | accidental
disability benefits under Articles 2, 14, 15 |
3 | | (including ordinary or accidental
disability benefits under |
4 | | the optional retirement program established under
Section |
5 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
6 | | Article 18 of the Illinois Pension Code, for disability
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7 | | incurred after January 1, 1966, or benefits payable under the |
8 | | Workers'
Compensation or Occupational Diseases Act or benefits |
9 | | payable under a sick
pay plan established in accordance with |
10 | | Section 36 of the State Finance Act.
"Compensation" also means |
11 | | salary or wages paid to an employee of any
qualified local |
12 | | government, qualified rehabilitation facility,
qualified |
13 | | domestic violence shelter or service, or qualified child |
14 | | advocacy center.
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15 | | (e) "Commission" means the State Employees Group Insurance |
16 | | Advisory
Commission authorized by this Act. Commencing July 1, |
17 | | 1984, "Commission"
as used in this Act means the Commission on |
18 | | Government Forecasting and Accountability as
established by |
19 | | the Legislative Commission Reorganization Act of 1984.
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20 | | (f) "Contributory", when referred to as contributory |
21 | | coverage, shall
mean optional coverages or benefits elected by |
22 | | the member toward the cost of
which such member makes |
23 | | contribution, or which are funded in whole or in part
through |
24 | | the acceptance of a reduction in earnings or the foregoing of |
25 | | an
increase in earnings by an employee, as distinguished from |
26 | | noncontributory
coverage or benefits which are paid entirely by |
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1 | | the State of Illinois
without reduction of the member's salary.
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2 | | (g) "Department" means any department, institution, board,
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3 | | commission, officer, court or any agency of the State |
4 | | government
receiving appropriations and having power to |
5 | | certify payrolls to the
Comptroller authorizing payments of |
6 | | salary and wages against such
appropriations as are made by the |
7 | | General Assembly from any State fund, or
against trust funds |
8 | | held by the State Treasurer and includes boards of
trustees of |
9 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 |
10 | | of the Illinois Pension Code. "Department" also includes the |
11 | | Illinois
Comprehensive Health Insurance Board, the Board of |
12 | | Examiners established under
the Illinois Public Accounting |
13 | | Act, and the Illinois Finance Authority.
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14 | | (h) "Dependent", when the term is used in the context of |
15 | | the health
and life plan, means a member's spouse and any child |
16 | | (1) from
birth to age 26 including an adopted child, a child |
17 | | who lives with the
member from the time of the filing of a |
18 | | petition for adoption until entry
of an order of adoption, a |
19 | | stepchild or adjudicated child, or a child who lives with the |
20 | | member
if such member is a court appointed guardian of the |
21 | | child or (2)
age 19 or over who has a mental or physical |
22 | | disability from a cause originating prior to the age of 19 (age |
23 | | 26 if enrolled as an adult child dependent). For
the health |
24 | | plan only, the term "dependent" also includes (1) any person
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25 | | enrolled prior to the effective date of this Section who is |
26 | | dependent upon
the member to the extent that the member may |
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1 | | claim such person as a
dependent for income tax deduction |
2 | | purposes and (2) any person who
has received after June 30, |
3 | | 2000 an organ transplant and who is financially
dependent upon |
4 | | the member and eligible to be claimed as a dependent for income
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5 | | tax purposes. A member requesting to cover any dependent must |
6 | | provide documentation as requested by the Department of Central |
7 | | Management Services and file with the Department any and all |
8 | | forms required by the Department.
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9 | | (i) "Director" means the Director of the Illinois |
10 | | Department of Central
Management Services.
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11 | | (j) "Eligibility period" means the period of time a member |
12 | | has to
elect enrollment in programs or to select benefits |
13 | | without regard to
age, sex or health.
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14 | | (k) "Employee" means and includes each officer or employee |
15 | | in the
service of a department who (1) receives his |
16 | | compensation for
service rendered to the department on a |
17 | | warrant issued pursuant to a payroll
certified by a department |
18 | | or on a warrant or check issued and drawn by a
department upon |
19 | | a trust, federal or other fund or on a warrant issued
pursuant |
20 | | to a payroll certified by an elected or duly appointed officer
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21 | | of the State or who receives payment of the performance of |
22 | | personal
services on a warrant issued pursuant to a payroll |
23 | | certified by a
Department and drawn by the Comptroller upon the |
24 | | State Treasurer against
appropriations made by the General |
25 | | Assembly from any fund or against
trust funds held by the State |
26 | | Treasurer, and (2) is employed full-time or
part-time in a |
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1 | | position normally requiring actual performance of duty
during |
2 | | not less than 1/2 of a normal work period, as established by |
3 | | the
Director in cooperation with each department, except that |
4 | | persons elected
by popular vote will be considered employees |
5 | | during the entire
term for which they are elected regardless of |
6 | | hours devoted to the
service of the State, and (3) except that |
7 | | "employee" does not include any
person who is not eligible by |
8 | | reason of such person's employment to
participate in one of the |
9 | | State retirement systems under Articles 2, 14, 15
(either the |
10 | | regular Article 15 system or the optional retirement program
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11 | | established under Section 15-158.2) or 18, or under paragraph |
12 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
13 | | Code, but such term does include persons who are employed |
14 | | during
the 6 month qualifying period under Article 14 of the |
15 | | Illinois Pension
Code. Such term also includes any person who |
16 | | (1) after January 1, 1966,
is receiving ordinary or accidental |
17 | | disability benefits under Articles
2, 14, 15 (including |
18 | | ordinary or accidental disability benefits under the
optional |
19 | | retirement program established under Section 15-158.2), |
20 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
21 | | the
Illinois Pension Code, for disability incurred after |
22 | | January 1, 1966, (2)
receives total permanent or total |
23 | | temporary disability under the Workers'
Compensation Act or |
24 | | Occupational Disease Act as a result of injuries
sustained or |
25 | | illness contracted in the course of employment with the
State |
26 | | of Illinois, or (3) is not otherwise covered under this Act and |
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1 | | has
retired as a participating member under Article 2 of the |
2 | | Illinois Pension
Code but is ineligible for the retirement |
3 | | annuity under Section 2-119 of
the Illinois Pension Code. |
4 | | However, a person who satisfies the criteria
of the foregoing |
5 | | definition of "employee" except that such person is made
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6 | | ineligible to participate in the State Universities Retirement |
7 | | System by
clause (4) of subsection (a) of Section 15-107 of the |
8 | | Illinois Pension
Code is also an "employee" for the purposes of |
9 | | this Act. "Employee" also
includes any person receiving or |
10 | | eligible for benefits under a sick pay
plan established in |
11 | | accordance with Section 36 of the State Finance Act.
"Employee" |
12 | | also includes (i) each officer or employee in the service of a
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13 | | qualified local government, including persons appointed as |
14 | | trustees of
sanitary districts regardless of hours devoted to |
15 | | the service of the
sanitary district, (ii) each employee in the |
16 | | service of a qualified
rehabilitation facility, (iii) each |
17 | | full-time employee in the service of a
qualified domestic |
18 | | violence shelter or service, and (iv) each full-time employee |
19 | | in the service of a qualified child advocacy center, as |
20 | | determined according to
rules promulgated by the Director.
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21 | | (l) "Member" means an employee, annuitant, retired |
22 | | employee or survivor. In the case of an annuitant or retired |
23 | | employee who first becomes an annuitant or retired employee on |
24 | | or after the effective date of this amendatory Act of the 97th |
25 | | General Assembly, the individual must meet the minimum vesting |
26 | | requirements of the applicable retirement system in order to be |
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1 | | eligible for group insurance benefits under that system. In the |
2 | | case of a survivor who first becomes a survivor on or after the |
3 | | effective date of this amendatory Act of the 97th General |
4 | | Assembly, the deceased employee, annuitant, or retired |
5 | | employee upon whom the annuity is based must have been eligible |
6 | | to participate in the group insurance system under the |
7 | | applicable retirement system in order for the survivor to be |
8 | | eligible for group insurance benefits under that system.
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9 | | (m) "Optional coverages or benefits" means those coverages |
10 | | or
benefits available to the member on his or her voluntary |
11 | | election, and at
his or her own expense.
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12 | | (n) "Program" means the group life insurance, health |
13 | | benefits and other
employee benefits designed and contracted |
14 | | for by the Director under this Act.
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15 | | (o) "Health plan" means a health benefits
program offered
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16 | | by the State of Illinois for persons eligible for the plan.
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17 | | (p) "Retired employee" means any person who would be an |
18 | | annuitant as
that term is defined herein but for the fact that |
19 | | such person retired prior to
January 1, 1966. Such term also |
20 | | includes any person formerly employed by
the University of |
21 | | Illinois in the Cooperative Extension Service who would
be an |
22 | | annuitant but for the fact that such person was made ineligible |
23 | | to
participate in the State Universities Retirement System by |
24 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
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25 | | Pension Code.
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26 | | (q) "Survivor" means a person receiving an annuity as a |
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1 | | survivor of an
employee or of an annuitant. "Survivor" also |
2 | | includes: (1) the surviving
dependent of a person who satisfies |
3 | | the definition of "employee" except that
such person is made |
4 | | ineligible to participate in the State Universities
Retirement |
5 | | System by clause (4) of subsection (a)
of Section 15-107 of the |
6 | | Illinois Pension Code; (2) the surviving
dependent of any |
7 | | person formerly employed by the University of Illinois in
the |
8 | | Cooperative Extension Service who would be an annuitant except |
9 | | for the
fact that such person was made ineligible to |
10 | | participate in the State
Universities Retirement System by |
11 | | clause (4) of subsection (a) of Section
15-107 of the Illinois |
12 | | Pension Code; and (3) the surviving dependent of a person who |
13 | | was an annuitant under this Act by virtue of receiving an |
14 | | alternative retirement cancellation payment under Section |
15 | | 14-108.5 of the Illinois Pension Code.
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16 | | (q-2) "SERS" means the State Employees' Retirement System |
17 | | of Illinois, created under Article 14 of the Illinois Pension |
18 | | Code.
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19 | | (q-3) "SURS" means the State Universities Retirement |
20 | | System, created under Article 15 of the Illinois Pension Code.
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21 | | (q-4) "TRS" means the Teachers' Retirement System of the |
22 | | State of Illinois, created under Article 16 of the Illinois |
23 | | Pension Code.
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24 | | (q-5) (Blank).
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25 | | (q-6) (Blank).
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26 | | (q-7) (Blank).
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1 | | (r) "Medical services" means the services provided within |
2 | | the scope
of their licenses by practitioners in all categories |
3 | | licensed under the
Medical Practice Act of 1987.
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4 | | (s) "Unit of local government" means any county, |
5 | | municipality,
township, school district (including a |
6 | | combination of school districts under
the Intergovernmental |
7 | | Cooperation Act), special district or other unit,
designated as |
8 | | a
unit of local government by law, which exercises limited |
9 | | governmental
powers or powers in respect to limited |
10 | | governmental subjects, any
not-for-profit association with a |
11 | | membership that primarily includes
townships and township |
12 | | officials, that has duties that include provision of
research |
13 | | service, dissemination of information, and other acts for the
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14 | | purpose of improving township government, and that is funded |
15 | | wholly or
partly in accordance with Section 85-15 of the |
16 | | Township Code; any
not-for-profit corporation or association, |
17 | | with a membership consisting
primarily of municipalities, that |
18 | | operates its own utility system, and
provides research, |
19 | | training, dissemination of information, or other acts to
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20 | | promote cooperation between and among municipalities that |
21 | | provide utility
services and for the advancement of the goals |
22 | | and purposes of its
membership;
the Southern Illinois |
23 | | Collegiate Common Market, which is a consortium of higher
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24 | | education institutions in Southern Illinois; the Illinois |
25 | | Association of
Park Districts; and any hospital provider that |
26 | | is owned by a county that has 100 or fewer hospital beds and |
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1 | | has not already joined the program. "Qualified
local |
2 | | government" means a unit of local government approved by the |
3 | | Director and
participating in a program created under |
4 | | subsection (i) of Section 10 of this
Act.
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5 | | (t) "Qualified rehabilitation facility" means any |
6 | | not-for-profit
organization that is accredited by the |
7 | | Commission on Accreditation of
Rehabilitation Facilities or |
8 | | certified by the Department
of Human Services (as successor to |
9 | | the Department of Mental Health
and Developmental |
10 | | Disabilities) to provide services to persons with
disabilities
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11 | | and which receives funds from the State of Illinois for |
12 | | providing those
services, approved by the Director and |
13 | | participating in a program created
under subsection (j) of |
14 | | Section 10 of this Act.
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15 | | (u) "Qualified domestic violence shelter or service" means |
16 | | any Illinois
domestic violence shelter or service and its |
17 | | administrative offices funded
by the Department of Human |
18 | | Services (as successor to the Illinois Department of
Public |
19 | | Aid),
approved by the Director and
participating in a program |
20 | | created under subsection (k) of Section 10.
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21 | | (v) "TRS benefit recipient" means a person who:
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22 | | (1) is not a "member" as defined in this Section; and
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23 | | (2) is receiving a monthly benefit or retirement |
24 | | annuity
under Article 16 of the Illinois Pension Code; and
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25 | | (3) either (i) has at least 8 years of creditable |
26 | | service under Article
16 of the Illinois Pension Code, or |
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1 | | (ii) was enrolled in the health insurance
program offered |
2 | | under that Article on January 1, 1996, or (iii) is the |
3 | | survivor
of a benefit recipient who had at least 8
years of |
4 | | creditable service under Article 16 of the Illinois Pension |
5 | | Code or
was enrolled in the health insurance program |
6 | | offered under that Article on
the effective date of this |
7 | | amendatory Act of 1995, or (iv) is a recipient or
survivor |
8 | | of a recipient of a disability benefit under Article 16 of |
9 | | the
Illinois Pension Code.
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10 | | (w) "TRS dependent beneficiary" means a person who:
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11 | | (1) is not a "member" or "dependent" as defined in this |
12 | | Section; and
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13 | | (2) is a TRS benefit recipient's: (A) spouse, (B) |
14 | | dependent parent who
is receiving at least half of his or |
15 | | her support from the TRS benefit
recipient, or (C) natural, |
16 | | step, adjudicated, or adopted child who is (i) under age |
17 | | 26, (ii) was, on January 1, 1996, participating as a |
18 | | dependent
beneficiary in the health insurance program |
19 | | offered under Article 16 of the
Illinois Pension Code, or |
20 | | (iii) age 19 or over who has a mental or physical |
21 | | disability from a cause originating prior to the age of 19 |
22 | | (age 26 if enrolled as an adult child).
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23 | | "TRS dependent beneficiary" does not include, as indicated |
24 | | under paragraph (2) of this subsection (w), a dependent of the |
25 | | survivor of a TRS benefit recipient who first becomes a |
26 | | dependent of a survivor of a TRS benefit recipient on or after |
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1 | | the effective date of this amendatory Act of the 97th General |
2 | | Assembly unless that dependent would have been eligible for |
3 | | coverage as a dependent of the deceased TRS benefit recipient |
4 | | upon whom the survivor benefit is based. |
5 | | (x) "Military leave" refers to individuals in basic
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6 | | training for reserves, special/advanced training, annual |
7 | | training, emergency
call up, activation by the President of the |
8 | | United States, or any other training or duty in service to the |
9 | | United States Armed Forces.
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10 | | (y) (Blank).
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11 | | (z) "Community college benefit recipient" means a person |
12 | | who:
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13 | | (1) is not a "member" as defined in this Section; and
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14 | | (2) is receiving a monthly survivor's annuity or |
15 | | retirement annuity
under Article 15 of the Illinois Pension |
16 | | Code; and
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17 | | (3) either (i) was a full-time employee of a community |
18 | | college district or
an association of community college |
19 | | boards created under the Public Community
College Act |
20 | | (other than an employee whose last employer under Article |
21 | | 15 of the
Illinois Pension Code was a community college |
22 | | district subject to Article VII
of the Public Community |
23 | | College Act) and was eligible to participate in a group
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24 | | health benefit plan as an employee during the time of |
25 | | employment with a
community college district (other than a |
26 | | community college district subject to
Article VII of the |
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1 | | Public Community College Act) or an association of |
2 | | community
college boards, or (ii) is the survivor of a |
3 | | person described in item (i).
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4 | | (aa) "Community college dependent beneficiary" means a |
5 | | person who:
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6 | | (1) is not a "member" or "dependent" as defined in this |
7 | | Section; and
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8 | | (2) is a community college benefit recipient's: (A) |
9 | | spouse, (B) dependent
parent who is receiving at least half |
10 | | of his or her support from the community
college benefit |
11 | | recipient, or (C) natural, step, adjudicated, or adopted |
12 | | child who is (i)
under age 26, or (ii)
age 19 or over and |
13 | | has a mental or physical disability from a cause |
14 | | originating prior to the age of 19 (age 26 if enrolled as |
15 | | an adult child).
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16 | | "Community college dependent beneficiary" does not |
17 | | include, as indicated under paragraph (2) of this subsection |
18 | | (aa), a dependent of the survivor of a community college |
19 | | benefit recipient who first becomes a dependent of a survivor |
20 | | of a community college benefit recipient on or after the |
21 | | effective date of this amendatory Act of the 97th General |
22 | | Assembly unless that dependent would have been eligible for |
23 | | coverage as a dependent of the deceased community college |
24 | | benefit recipient upon whom the survivor annuity is based. |
25 | | (bb) "Qualified child advocacy center" means any Illinois |
26 | | child advocacy center and its administrative offices funded by |
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1 | | the Department of Children and Family Services, as defined by |
2 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by |
3 | | the Director and participating in a program created under |
4 | | subsection (n) of Section 10.
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5 | | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
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6 | | (5 ILCS 375/10) (from Ch. 127, par. 530)
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7 | | Sec. 10. Contributions by the State and members.
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8 | | (a) The State shall pay the cost of basic non-contributory |
9 | | group life
insurance and, subject to member paid contributions |
10 | | set by the Department or
required by this Section and except as |
11 | | provided in this Section, the basic program of group health |
12 | | benefits on each
eligible member, except a member, not |
13 | | otherwise
covered by this Act, who has retired as a |
14 | | participating member under Article 2
of the Illinois Pension |
15 | | Code but is ineligible for the retirement annuity under
Section |
16 | | 2-119 of the Illinois Pension Code, and part of each eligible |
17 | | member's
and retired member's premiums for health insurance |
18 | | coverage for enrolled
dependents as provided by Section 9. The |
19 | | State shall pay the cost of the basic
program of group health |
20 | | benefits only after benefits are reduced by the amount
of |
21 | | benefits covered by Medicare for all members and dependents
who |
22 | | are eligible for benefits under Social Security or
the Railroad |
23 | | Retirement system or who had sufficient Medicare-covered
|
24 | | government employment, except that such reduction in benefits |
25 | | shall apply only
to those members and dependents who (1) first |
|
| | HB4045 Engrossed | - 17 - | LRB100 12674 RPS 26063 b |
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1 | | become eligible
for such Medicare coverage on or after July 1, |
2 | | 1992; or (2) are
Medicare-eligible members or dependents of a |
3 | | local government unit which began
participation in the program |
4 | | on or after July 1, 1992; or (3) remain eligible
for, but no |
5 | | longer receive Medicare coverage which they had been receiving |
6 | | on
or after July 1, 1992. The Department may determine the |
7 | | aggregate level of the
State's contribution on the basis of |
8 | | actual cost of medical services adjusted
for age, sex or |
9 | | geographic or other demographic characteristics which affect
|
10 | | the costs of such programs.
|
11 | | The cost of participation in the basic program of group |
12 | | health benefits
for the dependent or survivor of a living or |
13 | | deceased retired employee who was
formerly employed by the |
14 | | University of Illinois in the Cooperative Extension
Service and |
15 | | would be an annuitant but for the fact that he or she was 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 shall not
be greater than the cost of |
19 | | participation that would otherwise apply to that
dependent or |
20 | | survivor if he or she were the dependent or survivor of an
|
21 | | annuitant under the State Universities Retirement System.
|
22 | | (a-1) (Blank).
|
23 | | (a-2) (Blank).
|
24 | | (a-3) (Blank).
|
25 | | (a-4) (Blank).
|
26 | | (a-5) (Blank).
|
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| | HB4045 Engrossed | - 18 - | LRB100 12674 RPS 26063 b |
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1 | | (a-6) (Blank).
|
2 | | (a-7) (Blank).
|
3 | | (a-8) Any annuitant, survivor, or retired employee may |
4 | | waive or terminate coverage in
the program of group health |
5 | | benefits. Any such annuitant, survivor, or retired employee
who |
6 | | has waived or terminated coverage may enroll or re-enroll in |
7 | | the
program of group health benefits only during the annual |
8 | | benefit choice period,
as determined by the Director; except |
9 | | that in the event of termination of
coverage due to nonpayment |
10 | | of premiums, the annuitant, survivor, or retired employee
may |
11 | | not re-enroll in the program.
|
12 | | (a-8.5) Beginning on the effective date of this amendatory |
13 | | Act of the 97th General Assembly, the Director of Central |
14 | | Management Services shall, on an annual basis, determine the |
15 | | amount that the State shall contribute toward the basic program |
16 | | of group health benefits on behalf of annuitants (including |
17 | | individuals who (i) participated in the General Assembly |
18 | | Retirement System, the State Employees' Retirement System of |
19 | | Illinois, the State Universities Retirement System, the |
20 | | Teachers' Retirement System of the State of Illinois, or the |
21 | | Judges Retirement System of Illinois and (ii) qualify as |
22 | | annuitants under subsection (b) of Section 3 of this Act), |
23 | | survivors (including individuals who (i) receive an annuity as |
24 | | a survivor of an individual who participated in the General |
25 | | Assembly Retirement System, the State Employees' Retirement |
26 | | System of Illinois, the State Universities Retirement System, |
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| | HB4045 Engrossed | - 19 - | LRB100 12674 RPS 26063 b |
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1 | | the Teachers' Retirement System of the State of Illinois, or |
2 | | the Judges Retirement System of Illinois and (ii) qualify as |
3 | | survivors under subsection (q) of Section 3 of this Act), and |
4 | | retired employees (as defined in subsection (p) of Section 3 of |
5 | | this Act). The remainder of the cost of coverage for each |
6 | | annuitant, survivor, or retired employee, as determined by the |
7 | | Director of Central Management Services, shall be the |
8 | | responsibility of that annuitant, survivor, or retired |
9 | | employee. |
10 | | Contributions required of annuitants, survivors, and |
11 | | retired employees shall be the same for all retirement systems |
12 | | and shall also be based on whether an individual has made an |
13 | | election under Section 15-135.1 of the Illinois Pension Code. |
14 | | Contributions may be based on annuitants', survivors', or |
15 | | retired employees' Medicare eligibility, but may not be based |
16 | | on Social Security eligibility. |
17 | | (a-9) No later than May 1 of each calendar year, the |
18 | | Director
of Central Management Services shall certify in |
19 | | writing to the Executive
Secretary of the State Employees' |
20 | | Retirement System of Illinois the amounts
of the Medicare |
21 | | supplement health care premiums and the amounts of the
health |
22 | | care premiums for all other retirees who are not Medicare |
23 | | eligible.
|
24 | | A separate calculation of the premiums based upon the |
25 | | actual cost of each
health care plan shall be so certified.
|
26 | | The Director of Central Management Services shall provide |
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1 | | to the
Executive Secretary of the State Employees' Retirement |
2 | | System of
Illinois such information, statistics, and other data |
3 | | as he or she
may require to review the premium amounts |
4 | | certified by the Director
of Central Management Services.
|
5 | | The Department of Central Management Services, or any |
6 | | successor agency designated to procure healthcare contracts |
7 | | pursuant to this Act, is authorized to establish funds, |
8 | | separate accounts provided by any bank or banks as defined by |
9 | | the Illinois Banking Act, or separate accounts provided by any |
10 | | savings and loan association or associations as defined by the |
11 | | Illinois Savings and Loan Act of 1985 to be held by the |
12 | | Director, outside the State treasury, for the purpose of |
13 | | receiving the transfer of moneys from the Local Government |
14 | | Health Insurance Reserve Fund. The Department may promulgate |
15 | | rules further defining the methodology for the transfers. Any |
16 | | interest earned by moneys in the funds or accounts shall inure |
17 | | to the Local Government Health Insurance Reserve Fund. The |
18 | | transferred moneys, and interest accrued thereon, shall be used |
19 | | exclusively for transfers to administrative service |
20 | | organizations or their financial institutions for payments of |
21 | | claims to claimants and providers under the self-insurance |
22 | | health plan. The transferred moneys, and interest accrued |
23 | | thereon, shall not be used for any other purpose including, but |
24 | | not limited to, reimbursement of administration fees due the |
25 | | administrative service organization pursuant to its contract |
26 | | or contracts with the Department.
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1 | | (a-10) To the extent that participation, benefits, or |
2 | | premiums under this Act are based on a person's service credit |
3 | | under an Article of the Illinois Pension Code, service credit |
4 | | terminated in exchange for an accelerated pension benefit |
5 | | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that |
6 | | Code shall be included in determining a person's service credit |
7 | | for the purposes of this Act. |
8 | | (b) State employees who become eligible for this program on |
9 | | or after January
1, 1980 in positions normally requiring actual |
10 | | performance of duty not less
than 1/2 of a normal work period |
11 | | but not equal to that of a normal work period,
shall be given |
12 | | the option of participating in the available program. If the
|
13 | | employee elects coverage, the State shall contribute on behalf |
14 | | of such employee
to the cost of the employee's benefit and any |
15 | | applicable dependent supplement,
that sum which bears the same |
16 | | percentage as that percentage of time the
employee regularly |
17 | | works when compared to normal work period.
|
18 | | (c) The basic non-contributory coverage from the basic |
19 | | program of
group health benefits shall be continued for each |
20 | | employee not in pay status or
on active service by reason of |
21 | | (1) leave of absence due to illness or injury,
(2) authorized |
22 | | educational leave of absence or sabbatical leave, or (3)
|
23 | | military leave. This coverage shall continue until
expiration |
24 | | of authorized leave and return to active service, but not to |
25 | | exceed
24 months for leaves under item (1) or (2). This |
26 | | 24-month limitation and the
requirement of returning to active |
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1 | | service shall not apply to persons receiving
ordinary or |
2 | | accidental disability benefits or retirement benefits through |
3 | | the
appropriate State retirement system or benefits under the |
4 | | Workers' Compensation
or Occupational Disease Act.
|
5 | | (d) The basic group life insurance coverage shall continue, |
6 | | with
full State contribution, where such person is (1) absent |
7 | | from active
service by reason of disability arising from any |
8 | | cause other than
self-inflicted, (2) on authorized educational |
9 | | leave of absence or
sabbatical leave, or (3) on military leave.
|
10 | | (e) Where the person is in non-pay status for a period in |
11 | | excess of
30 days or on leave of absence, other than by reason |
12 | | of disability,
educational or sabbatical leave, or military |
13 | | leave, such
person may continue coverage only by making |
14 | | personal
payment equal to the amount normally contributed by |
15 | | the State on such person's
behalf. Such payments and coverage |
16 | | may be continued: (1) until such time as
the person returns to |
17 | | a status eligible for coverage at State expense, but not
to |
18 | | exceed 24 months or (2) until such person's employment or |
19 | | annuitant status
with the State is terminated (exclusive of any |
20 | | additional service imposed pursuant to law).
|
21 | | (f) The Department shall establish by rule the extent to |
22 | | which other
employee benefits will continue for persons in |
23 | | non-pay status or who are
not in active service.
|
24 | | (g) The State shall not pay the cost of the basic |
25 | | non-contributory
group life insurance, program of health |
26 | | benefits and other employee benefits
for members who are |
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1 | | survivors as defined by paragraphs (1) and (2) of
subsection |
2 | | (q) of Section 3 of this Act. The costs of benefits for these
|
3 | | survivors shall be paid by the survivors or by the University |
4 | | of Illinois
Cooperative Extension Service, or any combination |
5 | | thereof.
However, the State shall pay the amount of the |
6 | | reduction in the cost of
participation, if any, resulting from |
7 | | the amendment to subsection (a) made
by this amendatory Act of |
8 | | the 91st General Assembly.
|
9 | | (h) Those persons occupying positions with any department |
10 | | as a result
of emergency appointments pursuant to Section 8b.8 |
11 | | of the Personnel Code
who are not considered employees under |
12 | | this Act shall be given the option
of participating in the |
13 | | programs of group life insurance, health benefits and
other |
14 | | employee benefits. Such persons electing coverage may |
15 | | participate only
by making payment equal to the amount normally |
16 | | contributed by the State for
similarly situated employees. Such |
17 | | amounts shall be determined by the
Director. Such payments and |
18 | | coverage may be continued until such time as the
person becomes |
19 | | an employee pursuant to this Act or such person's appointment |
20 | | is
terminated.
|
21 | | (i) Any unit of local government within the State of |
22 | | Illinois
may apply to the Director to have its employees, |
23 | | annuitants, and their
dependents provided group health |
24 | | coverage under this Act on a non-insured
basis. To participate, |
25 | | a unit of local government must agree to enroll
all of its |
26 | | employees, who may select coverage under either the State group
|
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1 | | health benefits plan or a health maintenance organization that |
2 | | has
contracted with the State to be available as a health care |
3 | | provider for
employees as defined in this Act. A unit of local |
4 | | government must remit the
entire cost of providing coverage |
5 | | under the State group health benefits plan
or, for coverage |
6 | | under a health maintenance organization, an amount determined
|
7 | | by the Director based on an analysis of the sex, age, |
8 | | geographic location, or
other relevant demographic variables |
9 | | for its employees, except that the unit of
local government |
10 | | shall not be required to enroll those of its employees who are
|
11 | | covered spouses or dependents under this plan or another group |
12 | | policy or plan
providing health benefits as long as (1) an |
13 | | appropriate official from the unit
of local government attests |
14 | | that each employee not enrolled is a covered spouse
or |
15 | | dependent under this plan or another group policy or plan, and |
16 | | (2) at least
50% of the employees are enrolled and the unit of |
17 | | local government remits
the entire cost of providing coverage |
18 | | to those employees, except that a
participating school district |
19 | | must have enrolled at least 50% of its full-time
employees who |
20 | | have not waived coverage under the district's group health
plan |
21 | | by participating in a component of the district's cafeteria |
22 | | plan. A
participating school district is not required to enroll |
23 | | a full-time employee
who has waived coverage under the |
24 | | district's health plan, provided that an
appropriate official |
25 | | from the participating school district attests that the
|
26 | | full-time employee has waived coverage by participating in a |
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1 | | component of the
district's cafeteria plan. For the purposes of |
2 | | this subsection, "participating
school district" includes a |
3 | | unit of local government whose primary purpose is
education as |
4 | | defined by the Department's rules.
|
5 | | Employees of a participating unit of local government who |
6 | | are not enrolled
due to coverage under another group health |
7 | | policy or plan may enroll in
the event of a qualifying change |
8 | | in status, special enrollment, special
circumstance as defined |
9 | | by the Director, or during the annual Benefit Choice
Period. A |
10 | | participating unit of local government may also elect to cover |
11 | | its
annuitants. Dependent coverage shall be offered on an |
12 | | optional basis, with the
costs paid by the unit of local |
13 | | government, its employees, or some combination
of the two as |
14 | | determined by the unit of local government. The unit of local
|
15 | | government shall be responsible for timely collection and |
16 | | transmission of
dependent premiums.
|
17 | | The Director shall annually determine monthly rates of |
18 | | payment, subject
to the following constraints:
|
19 | | (1) In the first year of coverage, the rates shall be |
20 | | equal to the
amount normally charged to State employees for |
21 | | elected optional coverages
or for enrolled dependents |
22 | | coverages or other contributory coverages, or
contributed |
23 | | by the State for basic insurance coverages on behalf of its
|
24 | | employees, adjusted for differences between State |
25 | | employees and employees
of the local government in age, |
26 | | sex, geographic location or other relevant
demographic |
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1 | | variables, plus an amount sufficient to pay for the |
2 | | additional
administrative costs of providing coverage to |
3 | | employees of the unit of
local government and their |
4 | | dependents.
|
5 | | (2) In subsequent years, a further adjustment shall be |
6 | | made to reflect
the actual prior years' claims experience |
7 | | of the employees of the unit of
local government.
|
8 | | In the case of coverage of local government employees under |
9 | | a health
maintenance organization, the Director shall annually |
10 | | determine for each
participating unit of local government the |
11 | | maximum monthly amount the unit
may contribute toward that |
12 | | coverage, based on an analysis of (i) the age,
sex, geographic |
13 | | location, and other relevant demographic variables of the
|
14 | | unit's employees and (ii) the cost to cover those employees |
15 | | under the State
group health benefits plan. The Director may |
16 | | similarly determine the
maximum monthly amount each unit of |
17 | | local government may contribute toward
coverage of its |
18 | | employees' dependents under a health maintenance organization.
|
19 | | Monthly payments by the unit of local government or its |
20 | | employees for
group health benefits plan or health maintenance |
21 | | organization coverage shall
be deposited in the Local |
22 | | Government Health Insurance Reserve Fund.
|
23 | | The Local Government Health Insurance Reserve Fund is |
24 | | hereby created as a nonappropriated trust fund to be held |
25 | | outside the State Treasury, with the State Treasurer as |
26 | | custodian. The Local Government Health Insurance Reserve Fund |
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1 | | shall be a continuing
fund not subject to fiscal year |
2 | | limitations. The Local Government Health Insurance Reserve |
3 | | Fund is not subject to administrative charges or charge-backs, |
4 | | including but not limited to those authorized under Section 8h |
5 | | of the State Finance Act. All revenues arising from the |
6 | | administration of the health benefits program established |
7 | | under this Section shall be deposited into the Local Government |
8 | | Health Insurance Reserve Fund. Any interest earned on moneys in |
9 | | the Local Government Health Insurance Reserve Fund shall be |
10 | | deposited into the Fund. All expenditures from this Fund
shall |
11 | | be used for payments for health care benefits for local |
12 | | government and rehabilitation facility
employees, annuitants, |
13 | | and dependents, and to reimburse the Department or
its |
14 | | administrative service organization for all expenses incurred |
15 | | in the
administration of benefits. No other State funds may be |
16 | | used for these
purposes.
|
17 | | A local government employer's participation or desire to |
18 | | participate
in a program created under this subsection shall |
19 | | not limit that employer's
duty to bargain with the |
20 | | representative of any collective bargaining unit
of its |
21 | | employees.
|
22 | | (j) Any rehabilitation facility within the State of |
23 | | Illinois may apply
to the Director to have its employees, |
24 | | annuitants, and their eligible
dependents provided group |
25 | | health coverage under this Act on a non-insured
basis. To |
26 | | participate, a rehabilitation facility must agree to enroll all
|
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1 | | of its employees and remit the entire cost of providing such |
2 | | coverage for
its employees, except that the rehabilitation |
3 | | facility shall not be
required to enroll those of its employees |
4 | | who are covered spouses or
dependents under this plan or |
5 | | another group policy or plan providing health
benefits as long |
6 | | as (1) an appropriate official from the rehabilitation
facility |
7 | | attests that each employee not enrolled is a covered spouse or
|
8 | | dependent under this plan or another group policy or plan, and |
9 | | (2) at least
50% of the employees are enrolled and the |
10 | | rehabilitation facility remits
the entire cost of providing |
11 | | coverage to those employees. Employees of a
participating |
12 | | rehabilitation facility who are not enrolled due to coverage
|
13 | | under another group health policy or plan may enroll
in the |
14 | | event of a qualifying change in status, special enrollment, |
15 | | special
circumstance as defined by the Director, or during the |
16 | | annual Benefit Choice
Period. A participating rehabilitation |
17 | | facility may also elect
to cover its annuitants. Dependent |
18 | | coverage shall be offered on an optional
basis, with the costs |
19 | | paid by the rehabilitation facility, its employees, or
some |
20 | | combination of the 2 as determined by the rehabilitation |
21 | | facility. The
rehabilitation facility shall be responsible for |
22 | | timely collection and
transmission of dependent premiums.
|
23 | | The Director shall annually determine quarterly rates of |
24 | | payment, subject
to the following constraints:
|
25 | | (1) In the first year of coverage, the rates shall be |
26 | | equal to the amount
normally charged to State employees for |
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1 | | elected optional coverages or for
enrolled dependents |
2 | | coverages or other contributory coverages on behalf of
its |
3 | | employees, adjusted for differences between State |
4 | | employees and
employees of the rehabilitation facility in |
5 | | age, sex, geographic location
or other relevant |
6 | | demographic variables, plus an amount sufficient to pay
for |
7 | | the additional administrative costs of providing coverage |
8 | | to employees
of the rehabilitation facility and their |
9 | | dependents.
|
10 | | (2) In subsequent years, a further adjustment shall be |
11 | | made to reflect
the actual prior years' claims experience |
12 | | of the employees of the
rehabilitation facility.
|
13 | | Monthly payments by the rehabilitation facility or its |
14 | | employees for
group health benefits shall be deposited in the |
15 | | Local Government Health
Insurance Reserve Fund.
|
16 | | (k) Any domestic violence shelter or service within the |
17 | | State of Illinois
may apply to the Director to have its |
18 | | employees, annuitants, and their
dependents provided group |
19 | | health coverage under this Act on a non-insured
basis. To |
20 | | participate, a domestic violence shelter or service must agree |
21 | | to
enroll all of its employees and pay the entire cost of |
22 | | providing such coverage
for its employees. The domestic |
23 | | violence shelter shall not be required to enroll those of its |
24 | | employees who are covered spouses or dependents under this plan |
25 | | or another group policy or plan providing health benefits as |
26 | | long as (1) an appropriate official from the domestic violence |
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1 | | shelter attests that each employee not enrolled is a covered |
2 | | spouse or dependent under this plan or another group policy or |
3 | | plan and (2) at least 50% of the employees are enrolled and the |
4 | | domestic violence shelter remits the entire cost of providing |
5 | | coverage to those employees. Employees of a participating |
6 | | domestic violence shelter who are not enrolled due to coverage |
7 | | under another group health policy or plan may enroll in the |
8 | | event of a qualifying change in status, special enrollment, or |
9 | | special circumstance as defined by the Director or during the |
10 | | annual Benefit Choice Period. A participating domestic |
11 | | violence shelter may also elect
to cover its annuitants. |
12 | | Dependent coverage shall be offered on an optional
basis, with
|
13 | | employees, or some combination of the 2 as determined by the |
14 | | domestic violence
shelter or service. The domestic violence |
15 | | shelter or service shall be
responsible for timely collection |
16 | | and transmission of dependent premiums.
|
17 | | The Director shall annually determine rates of payment,
|
18 | | subject to the following constraints:
|
19 | | (1) In the first year of coverage, the rates shall be |
20 | | equal to the
amount normally charged to State employees for |
21 | | elected optional coverages
or for enrolled dependents |
22 | | coverages or other contributory coverages on
behalf of its |
23 | | employees, adjusted for differences between State |
24 | | employees and
employees of the domestic violence shelter or |
25 | | service in age, sex, geographic
location or other relevant |
26 | | demographic variables, plus an amount sufficient
to pay for |
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1 | | the additional administrative costs of providing coverage |
2 | | to
employees of the domestic violence shelter or service |
3 | | and their dependents.
|
4 | | (2) In subsequent years, a further adjustment shall be |
5 | | made to reflect
the actual prior years' claims experience |
6 | | of the employees of the domestic
violence shelter or |
7 | | service.
|
8 | | Monthly payments by the domestic violence shelter or |
9 | | service or its employees
for group health insurance shall be |
10 | | deposited in the Local Government Health
Insurance Reserve |
11 | | Fund.
|
12 | | (l) A public community college or entity organized pursuant |
13 | | to the
Public Community College Act may apply to the Director |
14 | | initially to have
only annuitants not covered prior to July 1, |
15 | | 1992 by the district's health
plan provided health coverage |
16 | | under this Act on a non-insured basis. The
community college |
17 | | must execute a 2-year contract to participate in the
Local |
18 | | Government Health Plan.
Any annuitant may enroll in the event |
19 | | of a qualifying change in status, special
enrollment, special |
20 | | circumstance as defined by the Director, or during the
annual |
21 | | Benefit Choice Period.
|
22 | | The Director shall annually determine monthly rates of |
23 | | payment subject to
the following constraints: for those |
24 | | community colleges with annuitants
only enrolled, first year |
25 | | rates shall be equal to the average cost to cover
claims for a |
26 | | State member adjusted for demographics, Medicare
|
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1 | | participation, and other factors; and in the second year, a |
2 | | further adjustment
of rates shall be made to reflect the actual |
3 | | first year's claims experience
of the covered annuitants.
|
4 | | (l-5) The provisions of subsection (l) become inoperative |
5 | | on July 1, 1999.
|
6 | | (m) The Director shall adopt any rules deemed necessary for
|
7 | | implementation of this amendatory Act of 1989 (Public Act |
8 | | 86-978).
|
9 | | (n) Any child advocacy center within the State of Illinois |
10 | | may apply to the Director to have its employees, annuitants, |
11 | | and their dependents provided group health coverage under this |
12 | | Act on a non-insured basis. To participate, a child advocacy |
13 | | center must agree to enroll all of its employees and pay the |
14 | | entire cost of providing coverage for its employees. The child
|
15 | | advocacy center shall not be required to enroll those of its
|
16 | | employees who are covered spouses or dependents under this plan
|
17 | | or another group policy or plan providing health benefits as
|
18 | | long as (1) an appropriate official from the child advocacy
|
19 | | center attests that each employee not enrolled is a covered
|
20 | | spouse or dependent under this plan or another group policy or
|
21 | | plan and (2) at least 50% of the employees are enrolled and the |
22 | | child advocacy center remits the entire cost of providing |
23 | | coverage to those employees. Employees of a participating child |
24 | | advocacy center who are not enrolled due to coverage under |
25 | | another group health policy or plan may enroll in the event of |
26 | | a qualifying change in status, special enrollment, or special |
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1 | | circumstance as defined by the Director or during the annual |
2 | | Benefit Choice Period. A participating child advocacy center |
3 | | may also elect to cover its annuitants. Dependent coverage |
4 | | shall be offered on an optional basis, with the costs paid by |
5 | | the child advocacy center, its employees, or some combination |
6 | | of the 2 as determined by the child advocacy center. The child |
7 | | advocacy center shall be responsible for timely collection and |
8 | | transmission of dependent premiums. |
9 | | The Director shall annually determine rates of payment, |
10 | | 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 child advocacy center 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 child advocacy center 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 child advocacy center. |
25 | | Monthly payments by the child advocacy center or its |
26 | | employees for group health insurance shall be deposited into |
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1 | | the Local Government Health Insurance Reserve Fund. |
2 | | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
|
3 | | Section 10. The Illinois Pension Code is amended by |
4 | | changing Sections 1-160, 1-167 2-108, 2-119.1, 2-126, 2-162, |
5 | | 14-103.10, 14-114, 14-133, 14-152.1, 15-108.1, 15-108.2, |
6 | | 15-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121, |
7 | | 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-130, |
8 | | 20-121, 20-123, 20-124, and 20-125 and by adding 1-161, 1-167, |
9 | | 1-162, 2-105.3, 2-110.3, 2-165.1, 2-166.1, 14-103.41, |
10 | | 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-132.9, |
11 | | 15-155.2, 15-185.5, 15-200.1, 15-201.1, 16-107.1, 16-122.9, |
12 | | 16-158.3, 16-190.5, 16-205.1, 16-206.1, 17-106.05, 17-113.4, |
13 | | 17-115.5, and 17-119.2 as follows:
|
14 | | (40 ILCS 5/1-160)
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15 | | (Text of Section WITHOUT the changes made by P.A. 98-641, |
16 | | which has been held unconstitutional) |
17 | | Sec. 1-160. Provisions applicable to new hires. |
18 | | (a) The provisions of this Section apply to a person who, |
19 | | on or after January 1, 2011, first becomes a member or a |
20 | | participant under any reciprocal retirement system or pension |
21 | | fund established under this Code, other than a retirement |
22 | | system or pension fund established under Article 2, 3, 4, 5, 6, |
23 | | 15 or 18 of this Code, notwithstanding any other provision of |
24 | | this Code to the contrary, but do not apply to any self-managed |
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1 | | plan established under this Code, to any person with respect to |
2 | | service as a sheriff's law enforcement employee under Article |
3 | | 7, or to any participant of the retirement plan established |
4 | | under Section 22-101. Notwithstanding anything to the contrary |
5 | | in this Section, for purposes of this Section, a person who |
6 | | participated in a retirement system under Article 15 prior to |
7 | | January 1, 2011 shall be deemed a person who first became a |
8 | | member or participant prior to January 1, 2011 under any |
9 | | retirement system or pension fund subject to this Section. The |
10 | | changes made to this Section by Public Act 98-596 this |
11 | | amendatory Act of the 98th General Assembly are a clarification |
12 | | of existing law and are intended to be retroactive to January |
13 | | 1, 2011 ( the effective date of Public Act 96-889 ) , |
14 | | notwithstanding the provisions of Section 1-103.1 of this Code. |
15 | | This Section does not apply to a person who, on or after |
16 | | July 1, 2018, first becomes a member or participant under |
17 | | Article 14 or 16, unless that person (i) is a covered employee |
18 | | under Article 14 who has not made the election to participate |
19 | | in the defined contribution plan under Section 14-155.2 or (ii) |
20 | | elects under subsection (b) of Section 1-161 to receive the |
21 | | benefits provided under this Section and the applicable |
22 | | provisions of the Article under which he or she is a member or |
23 | | participant. |
24 | | This Section does not apply to a person who first becomes a |
25 | | member or participant of an affected pension fund on or after 6 |
26 | | months after the resolution or ordinance date, as defined in |
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1 | | Section 1-162, unless that person elects under subsection (c) |
2 | | of Section 1-162 to receive the benefits provided under this |
3 | | Section and the applicable provisions of the Article under |
4 | | which he or she is a member or participant. |
5 | | This Section does not apply to a person who elects under |
6 | | subsection (c-5) of Section 1-161 to receive the benefits under |
7 | | Section 1-161. |
8 | | (b) "Final average salary" means the average monthly (or |
9 | | annual) salary obtained by dividing the total salary or |
10 | | earnings calculated under the Article applicable to the member |
11 | | or participant during the 96 consecutive months (or 8 |
12 | | consecutive years) of service within the last 120 months (or 10 |
13 | | years) of service in which the total salary or earnings |
14 | | calculated under the applicable Article was the highest by the |
15 | | number of months (or years) of service in that period. For the |
16 | | purposes of a person who first becomes a member or participant |
17 | | of any retirement system or pension fund to which this Section |
18 | | applies on or after January 1, 2011, in this Code, "final |
19 | | average salary" shall be substituted for the following: |
20 | | (1) In Article 7 (except for service as sheriff's law |
21 | | enforcement employees), "final rate of earnings". |
22 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
23 | | annual salary for any 4 consecutive years within the last |
24 | | 10 years of service immediately preceding the date of |
25 | | withdrawal". |
26 | | (3) In Article 13, "average final salary". |
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1 | | (4) In Article 14, "final average compensation". |
2 | | (5) In Article 17, "average salary". |
3 | | (6) In Section 22-207, "wages or salary received by him |
4 | | at the date of retirement or discharge". |
5 | | (b-5) Beginning on January 1, 2011, for all purposes under |
6 | | this Code (including without limitation the calculation of |
7 | | benefits and employee contributions), the annual earnings, |
8 | | salary, or wages (based on the plan year) of a member or |
9 | | participant to whom this Section applies shall not exceed |
10 | | $106,800; however, that amount shall annually thereafter be |
11 | | increased by the lesser of (i) 3% of that amount, including all |
12 | | previous adjustments, or (ii) one-half the annual unadjusted |
13 | | percentage increase (but not less than zero) in the consumer |
14 | | price index-u
for the 12 months ending with the September |
15 | | preceding each November 1, including all previous adjustments. |
16 | | For the purposes of this Section, "consumer price index-u" |
17 | | means
the index published by the Bureau of Labor Statistics of |
18 | | the United States
Department of Labor that measures the average |
19 | | change in prices of goods and
services purchased by all urban |
20 | | consumers, United States city average, all
items, 1982-84 = |
21 | | 100. The new amount resulting from each annual adjustment
shall |
22 | | be determined by the Public Pension Division of the Department |
23 | | of Insurance and made available to the boards of the retirement |
24 | | systems and pension funds by November 1 of each year. |
25 | | (c) A member or participant is entitled to a retirement
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26 | | annuity upon written application if he or she has attained age |
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1 | | 67 (beginning January 1, 2015, age 65 with respect to service |
2 | | under Article 12 of this Code that is subject to this Section) |
3 | | and has at least 10 years of service credit and is otherwise |
4 | | eligible under the requirements of the applicable Article. |
5 | | A member or participant who has attained age 62 (beginning |
6 | | January 1, 2015, age 60 with respect to service under Article |
7 | | 12 of this Code that is subject to this Section) and has at |
8 | | least 10 years of service credit and is otherwise eligible |
9 | | under the requirements of the applicable Article may elect to |
10 | | receive the lower retirement annuity provided
in subsection (d) |
11 | | of this Section. |
12 | | (d) The retirement annuity of a member or participant who |
13 | | is retiring after attaining age 62 (beginning January 1, 2015, |
14 | | age 60 with respect to service under Article 12 of this Code |
15 | | that is subject to this Section) with at least 10 years of |
16 | | service credit shall be reduced by one-half
of 1% for each full |
17 | | month that the member's age is under age 67 (beginning January |
18 | | 1, 2015, age 65 with respect to service under Article 12 of |
19 | | this Code that is subject to this Section). |
20 | | (e) Any retirement annuity or supplemental annuity shall be |
21 | | subject to annual increases on the January 1 occurring either |
22 | | on or after the attainment of age 67 (beginning January 1, |
23 | | 2015, age 65 with respect to service under Article 12 of this |
24 | | Code that is subject to this Section) or the first anniversary |
25 | | of the annuity start date, whichever is later. Each annual |
26 | | increase shall be calculated at 3% or one-half the annual |
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1 | | unadjusted percentage increase (but not less than zero) in the |
2 | | consumer price index-u for the 12 months ending with the |
3 | | September preceding each November 1, whichever is less, of the |
4 | | originally granted retirement annuity. If the annual |
5 | | unadjusted percentage change in the consumer price index-u for |
6 | | the 12 months ending with the September preceding each November |
7 | | 1 is zero or there is a decrease, then the annuity shall not be |
8 | | increased. |
9 | | (f) The initial survivor's or widow's annuity of an |
10 | | otherwise eligible survivor or widow of a retired member or |
11 | | participant who first became a member or participant on or |
12 | | after January 1, 2011 shall be in the amount of 66 2/3% of the |
13 | | retired member's or participant's retirement annuity at the |
14 | | date of death. In the case of the death of a member or |
15 | | participant who has not retired and who first became a member |
16 | | or participant on or after January 1, 2011, eligibility for a |
17 | | survivor's or widow's annuity shall be determined by the |
18 | | applicable Article of this Code. The initial benefit shall be |
19 | | 66 2/3% of the earned annuity without a reduction due to age. A |
20 | | child's annuity of an otherwise eligible child shall be in the |
21 | | amount prescribed under each Article if applicable. Any |
22 | | survivor's or widow's annuity shall be increased (1) on each |
23 | | January 1 occurring on or after the commencement of the annuity |
24 | | if
the deceased member died while receiving a retirement |
25 | | annuity or (2) in
other cases, on each January 1 occurring |
26 | | after the first anniversary
of the commencement of the annuity. |
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1 | | Each annual increase shall be calculated at 3% or one-half the |
2 | | annual unadjusted percentage increase (but not less than zero) |
3 | | in the consumer price index-u for the 12 months ending with the |
4 | | September preceding each November 1, whichever is less, of the |
5 | | originally granted survivor's annuity. If the annual |
6 | | unadjusted percentage change in the consumer price index-u for |
7 | | the 12 months ending with the September preceding each November |
8 | | 1 is zero or there is a decrease, then the annuity shall not be |
9 | | increased. |
10 | | (g) The benefits in Section 14-110 apply only if the person |
11 | | is a State policeman, a fire fighter in the fire protection |
12 | | service of a department, or a security employee of the |
13 | | Department of Corrections or the Department of Juvenile |
14 | | Justice, as those terms are defined in subsection (b) of |
15 | | Section 14-110. A person who meets the requirements of this |
16 | | Section is entitled to an annuity calculated under the |
17 | | provisions of Section 14-110, in lieu of the regular or minimum |
18 | | retirement annuity, only if the person has withdrawn from |
19 | | service with not less than 20
years of eligible creditable |
20 | | service and has attained age 60, regardless of whether
the |
21 | | attainment of age 60 occurs while the person is
still in |
22 | | service. |
23 | | (h) If a person who first becomes a member or a participant |
24 | | of a retirement system or pension fund subject to this Section |
25 | | on or after January 1, 2011 is receiving a retirement annuity |
26 | | or retirement pension under that system or fund and becomes a |
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1 | | member or participant under any other system or fund created by |
2 | | this Code and is employed on a full-time basis, except for |
3 | | those members or participants exempted from the provisions of |
4 | | this Section under subsection (a) of this Section, then the |
5 | | person's retirement annuity or retirement pension under that |
6 | | system or fund shall be suspended during that employment. Upon |
7 | | termination of that employment, the person's retirement |
8 | | annuity or retirement pension payments shall resume and be |
9 | | recalculated if recalculation is provided for under the |
10 | | applicable Article of this Code. |
11 | | If a person who first becomes a member of a retirement |
12 | | system or pension fund subject to this Section on or after |
13 | | January 1, 2012 and is receiving a retirement annuity or |
14 | | retirement pension under that system or fund and accepts on a |
15 | | contractual basis a position to provide services to a |
16 | | governmental entity from which he or she has retired, then that |
17 | | person's annuity or retirement pension earned as an active |
18 | | employee of the employer shall be suspended during that |
19 | | contractual service. A person receiving an annuity or |
20 | | retirement pension under this Code shall notify the pension |
21 | | fund or retirement system from which he or she is receiving an |
22 | | annuity or retirement pension, as well as his or her |
23 | | contractual employer, of his or her retirement status before |
24 | | accepting contractual employment. A person who fails to submit |
25 | | such notification shall be guilty of a Class A misdemeanor and |
26 | | required to pay a fine of $1,000. Upon termination of that |
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1 | | contractual employment, the person's retirement annuity or |
2 | | retirement pension payments shall resume and, if appropriate, |
3 | | be recalculated under the applicable provisions of this Code. |
4 | | (i) (Blank). |
5 | | (j) Except for Sections 1-161 and 1-162, in In the case of |
6 | | a conflict between the provisions of this Section and any other |
7 | | provision of this Code, the provisions of this Section shall |
8 | | control.
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9 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, |
10 | | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.) |
11 | | (40 ILCS 5/1-161 new) |
12 | | Sec. 1-161. Optional benefits for certain Tier 2 members |
13 | | under Articles 14, 15, and 16. |
14 | | (a) Notwithstanding any other provision of this Code to the |
15 | | contrary, the provisions of this Section apply to a person who |
16 | | first becomes a member or a participant under Article 14, 15, |
17 | | or 16 on or after July 1, 2018 and who does not make the |
18 | | election under subsection (b) or (c), whichever is applicable. |
19 | | The provisions of this Section apply to a person who makes the |
20 | | election under subsection (c-5). The provisions of this Section |
21 | | do not apply to any participant in a self-managed plan or to a |
22 | | covered employee under Article 14. |
23 | | (b) In lieu of the benefits provided under this Section, a |
24 | | member or participant, except for a participant under Article |
25 | | 15, may irrevocably elect the benefits under Section 1-160 and |
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1 | | the benefits otherwise applicable to that member or |
2 | | participant. The election must be made within 30 days after |
3 | | becoming a member or participant. Each retirement system shall |
4 | | establish procedures for making this election. |
5 | | (c) A participant under Article 15 may irrevocably elect |
6 | | the benefits otherwise provided to a Tier 2 member under |
7 | | Article 15. The election must be made within 30 days after |
8 | | becoming a member. The retirement system under Article 15 shall |
9 | | establish procedures for making this election. |
10 | | (c-5) A non-covered participant under Article 14 to whom |
11 | | Section 1-160 applies, a Tier 2 member under Article 15, or a |
12 | | participant under Article 16 to whom Section 1-160 applies may |
13 | | irrevocably elect to receive the benefits under this Section in |
14 | | lieu of the benefits under Section 1-160 or the benefits |
15 | | otherwise available to a Tier 2 member under Article 15, |
16 | | whichever is applicable. Each retirement System shall |
17 | | 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 to whom this Section applies, in this Code, "final |
26 | | average salary" shall be substituted for "final average |
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1 | | compensation" in Article 14. |
2 | | (e) Beginning July 1, 2018, for all purposes under this |
3 | | Code (including without limitation the calculation of benefits |
4 | | and employee contributions), the annual earnings, salary, |
5 | | compensation, or wages (based on the plan year) of a member or |
6 | | participant to whom this Section applies shall not at any time |
7 | | exceed the federal Social Security Wage Base then in effect. |
8 | | (f) A member or participant is entitled to a retirement
|
9 | | annuity upon written application if he or she has attained the |
10 | | normal retirement age determined by the Social Security |
11 | | Administration for that member or participant's year of birth, |
12 | | but no earlier than 67 years of age, and has at least 10 years |
13 | | of service credit and is otherwise eligible under the |
14 | | requirements of the applicable Article. |
15 | | (g) The amount of the retirement annuity to which a member |
16 | | or participant is entitled shall be computed by multiplying |
17 | | 1.25% for each year of service credit by his or her final |
18 | | average salary. |
19 | | (h) Any retirement annuity or supplemental annuity shall be |
20 | | subject to annual increases on the first anniversary of the |
21 | | annuity start date. Each annual increase shall be one-half the |
22 | | annual unadjusted percentage increase (but not less than zero) |
23 | | in the consumer price index-w for the 12 months ending with the |
24 | | September preceding each November 1 of the originally granted |
25 | | retirement annuity. If the annual unadjusted percentage change |
26 | | in the consumer price index-w for the 12 months ending with the |
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1 | | September preceding each November 1 is zero or there is a |
2 | | decrease, then the annuity shall not be increased. |
3 | | For the purposes of this Section, "consumer price index-w" |
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 Urban Wage |
7 | | Earners and Clerical Workers, United States city average, all |
8 | | items, 1982-84 = 100. The new amount resulting from each annual |
9 | | adjustment shall be determined by the Public Pension Division |
10 | | of the Department of Insurance and made available to the boards |
11 | | of the retirement systems and pension funds by November 1 of |
12 | | each year. |
13 | | (i) The initial survivor's or widow's annuity of an |
14 | | otherwise eligible survivor or widow of a retired member or |
15 | | participant to whom this Section applies shall be in the amount |
16 | | of 66 2/3% of the retired member's or participant's retirement |
17 | | annuity at the date of death. In the case of the death of a |
18 | | member or participant who has not retired and to whom this |
19 | | Section applies, eligibility for a survivor's or widow's |
20 | | annuity shall be determined by the applicable Article of this |
21 | | Code. The benefit shall be 66 2/3% of the earned annuity |
22 | | without a reduction due to age. A child's annuity of an |
23 | | otherwise eligible child shall be in the amount prescribed |
24 | | under each Article if applicable. |
25 | | (j) In lieu of any other employee contributions, except for |
26 | | the contribution to the defined contribution plan under |
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1 | | subsection (k) of this Section, each employee shall contribute |
2 | | 6.2% of his her or salary to the retirement system. However, |
3 | | the employee contribution under this subsection shall not |
4 | | exceed the amount of the total normal cost of the benefits for |
5 | | all members making contributions under this Section (except for |
6 | | the defined contribution plan under subsection (k) of this |
7 | | Section), expressed as a percentage of payroll and certified on |
8 | | or before January 15 of each year by the board of trustees of |
9 | | the retirement system. If the board of trustees of the |
10 | | retirement system certifies that the 6.2% employee |
11 | | contribution rate exceeds the normal cost of the benefits under |
12 | | this Section (except for the defined contribution plan under |
13 | | subsection (k) of this Section), then on or before December 1 |
14 | | of that year, the board of trustees shall certify the amount of |
15 | | the normal cost of the benefits under this Section (except for |
16 | | the defined contribution plan under subsection (k) of this |
17 | | Section), expressed as a percentage of payroll, to the State |
18 | | Actuary and the Commission on Government Forecasting and |
19 | | Accountability, and the employee contribution under this |
20 | | subsection shall be reduced to that amount beginning July 1 of |
21 | | that year. Thereafter, if the normal cost of the benefits under |
22 | | this Section (except for the defined contribution plan under |
23 | | subsection (k) of this Section), expressed as a percentage of |
24 | | payroll and certified on or before January 1 of each year by |
25 | | the board of trustees of the retirement system, exceeds 6.2% of |
26 | | salary, then on or before January 15 of that year, the board of |
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1 | | trustees shall certify the normal cost to the State Actuary and |
2 | | the Commission on Government Forecasting and Accountability, |
3 | | and the employee contributions shall revert back to 6.2% of |
4 | | salary beginning January 1 of the following year. |
5 | | (k) No later than July 1, 2018, each retirement system |
6 | | under Article 14, 15, or 16 shall prepare and implement a |
7 | | defined contribution plan for members or participants who are |
8 | | subject to this Section. The defined contribution plan |
9 | | developed under this subsection shall be a plan that aggregates |
10 | | employer and employee contributions in individual participant |
11 | | accounts which, after meeting any other requirements, are used |
12 | | for payouts after retirement in accordance with this subsection |
13 | | and any other applicable laws. |
14 | | (1) Each member or participant shall contribute a |
15 | | minimum of 4% of his or her salary to the defined |
16 | | contribution plan. |
17 | | (2) For each participant in the defined contribution |
18 | | plan who has been employed with the same employer for at |
19 | | least one year, employer contributions shall be paid into |
20 | | that participant's accounts at a rate expressed as a |
21 | | percentage of salary. This rate may be set for individual |
22 | | employees, but shall be no higher than 6% of salary and |
23 | | shall be no lower than 2% of salary. |
24 | | (3) Employer contributions shall vest when those |
25 | | contributions are paid into a member's or participant's |
26 | | account. |
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1 | | (4) The defined contribution plan shall provide a |
2 | | variety of options for investments. These options shall |
3 | | include investments handled by the Illinois State Board of |
4 | | Investment as well as private sector investment options. |
5 | | (5) The defined contribution plan shall provide a |
6 | | variety of options for payouts to retirees and their |
7 | | survivors. |
8 | | (6) To the extent authorized under federal law and as |
9 | | authorized by the retirement system, the defined |
10 | | contribution plan shall allow former participants in the |
11 | | plan to transfer or roll over employee and employer |
12 | | contributions, and the earnings thereon, into other |
13 | | qualified retirement plans. |
14 | | (7) Each retirement system shall reduce the employee |
15 | | contributions credited to the member's defined |
16 | | contribution plan account by an amount determined by that |
17 | | retirement system to cover the cost of offering the |
18 | | benefits under this subsection and any applicable |
19 | | administrative fees. |
20 | | (8) No person shall begin participating in the defined |
21 | | contribution plan until it has attained qualified plan |
22 | | status and received all necessary approvals from the U.S. |
23 | | Internal Revenue Service. |
24 | | (l) In the case of a conflict between the provisions of |
25 | | this Section and any other provision of this Code, the |
26 | | provisions of this Section shall control. |
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1 | | (40 ILCS 5/1-162 new) |
2 | | Sec. 1-162. Optional benefits for certain Tier 2 members of |
3 | | pension funds under Articles 8, 9, 10, 11, 12, and 17. |
4 | | (a) As used in this Section: |
5 | | "Affected pension fund" means a pension fund established |
6 | | under Article 8, 9, 10, 11, 12, or 17 that the governing body |
7 | | of the unit of local government has designated as an affected |
8 | | pension fund by adoption of a resolution or ordinance. |
9 | | "Resolution or ordinance date" means the date on which the |
10 | | governing body of the unit of local government designates a |
11 | | pension fund under Article 8, 9, 10, 11, 12, or 17 as an |
12 | | affected pension fund by adoption of a resolution or ordinance |
13 | | or July 1, 2018, whichever is later. |
14 | | (b) Notwithstanding any other provision of this Code to the |
15 | | contrary, the provisions of this Section apply to a person who |
16 | | first becomes a member or a participant in an affected pension |
17 | | fund on or after 6 months after the resolution or ordinance |
18 | | date and who does not make the election under subsection (c). |
19 | | (c) In lieu of the benefits provided under this Section, a |
20 | | member or participant may irrevocably elect the benefits under |
21 | | Section 1-160 and the benefits otherwise applicable to that |
22 | | member or participant. The election must be made within 30 days |
23 | | after becoming a member or participant. Each affected pension |
24 | | fund shall establish procedures for making this election. |
25 | | (d) "Final average salary" means the average monthly (or |
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1 | | annual) salary obtained by dividing the total salary or |
2 | | earnings calculated under the Article applicable to the member |
3 | | or participant during the last 120 months (or 10 years) of |
4 | | service in which the total salary or earnings calculated under |
5 | | the applicable Article was the highest by the number of months |
6 | | (or years) of service in that period. For the purposes of a |
7 | | person who first becomes a member or participant of an affected |
8 | | pension fund on or after 6 months after the ordinance or |
9 | | resolution date, in this Code, "final average salary" shall be |
10 | | substituted for the following: |
11 | | (1) In Articles 8, 9, 10, 11, and 12, "highest
average |
12 | | annual salary for any 4 consecutive years within the last |
13 | | 10 years of service immediately preceding the date of |
14 | | withdrawal". |
15 | | (2) In Article 17, "average salary". |
16 | | (e) Beginning 6 months after the resolution or ordinance |
17 | | date, for all purposes under this Code (including without |
18 | | limitation the calculation of benefits and employee |
19 | | contributions), the annual earnings, salary, or wages (based on |
20 | | the plan year) of a member or participant to whom this Section |
21 | | applies shall not at any time exceed the federal Social |
22 | | Security Wage Base then in effect. |
23 | | (f) A member or participant is entitled to a retirement
|
24 | | annuity upon written application if he or she has attained the |
25 | | normal retirement age determined by the Social Security |
26 | | Administration for that member or participant's year of birth, |
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1 | | but no earlier than 67 years of age, and has at least 10 years |
2 | | of service credit and is otherwise eligible under the |
3 | | requirements of the applicable Article. |
4 | | (g) The amount of the retirement annuity to which a member |
5 | | or participant is entitled shall be computed by multiplying |
6 | | 1.25% for each year of service credit by his or her final |
7 | | average salary. |
8 | | (h) Any retirement annuity or supplemental annuity shall be |
9 | | subject to annual increases on the first anniversary of the |
10 | | annuity start date. Each annual increase shall be one-half the |
11 | | annual unadjusted percentage increase (but not less than zero) |
12 | | in the consumer price index-w for the 12 months ending with the |
13 | | September preceding each November 1 of the originally granted |
14 | | retirement annuity. If the annual unadjusted percentage change |
15 | | in the consumer price index-w for the 12 months ending with the |
16 | | September preceding each November 1 is zero or there is a |
17 | | decrease, then the annuity shall not be increased. |
18 | | For the purposes of this Section, "consumer price index-w" |
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 Urban Wage |
22 | | Earners and Clerical Workers, United States city average, all |
23 | | items, 1982-84 = 100. The new amount resulting from each annual |
24 | | adjustment shall be determined by the Public Pension Division |
25 | | of the Department of Insurance and made available to the boards |
26 | | of the retirement systems and pension funds by November 1 of |
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1 | | each year. |
2 | | (i) The initial survivor's or widow's annuity of an |
3 | | otherwise eligible survivor or widow of a retired member or |
4 | | participant who first became a member or participant on or |
5 | | after 6 months after the resolution or ordinance date shall be |
6 | | in the amount of 66 2/3% of the retired member's or |
7 | | participant's retirement annuity at the date of death. In the |
8 | | case of the death of a member or participant who has not |
9 | | retired and who first became a member or participant on or |
10 | | after 6 months after the resolution or ordinance date, |
11 | | eligibility for a survivor's or widow's annuity shall be |
12 | | determined by the applicable Article of this Code. The benefit |
13 | | shall be 66 2/3% of the earned annuity without a reduction due |
14 | | to age. A child's annuity of an otherwise eligible child shall |
15 | | be in the amount prescribed under each Article if applicable. |
16 | | (j) In lieu of any other employee contributions, except for |
17 | | the contribution to the defined contribution plan under |
18 | | subsection (k) of this Section, each employee shall contribute |
19 | | 6.2% of his her or salary to the affected pension fund. |
20 | | However, the employee contribution under this subsection shall |
21 | | not exceed the amount of the normal cost of the benefits under |
22 | | this Section (except for the defined contribution plan under |
23 | | subsection (k) of this Section), expressed as a percentage of |
24 | | payroll and determined on or before November 1 of each year by |
25 | | the board of trustees of the affected pension fund. If the |
26 | | board of trustees of the affected pension fund determines that |
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1 | | the 6.2% employee contribution rate exceeds the normal cost of |
2 | | the benefits under this Section (except for the defined |
3 | | contribution plan under subsection (k) of this Section), then |
4 | | on or before December 1 of that year, the board of trustees |
5 | | shall certify the amount of the normal cost of the benefits |
6 | | under this Section (except for the defined contribution plan |
7 | | under subsection (k) of this Section), expressed as a |
8 | | percentage of payroll, to the State Actuary and the Commission |
9 | | on Government Forecasting and Accountability, and the employee |
10 | | contribution under this subsection shall be reduced to that |
11 | | amount beginning January 1 of the following year. Thereafter, |
12 | | if the normal cost of the benefits under this Section (except |
13 | | for the defined contribution plan under subsection (k) of this |
14 | | Section), expressed as a percentage of payroll and determined |
15 | | on or before November 1 of each year by the board of trustees |
16 | | of the affected pension fund, exceeds 6.2% of salary, then on |
17 | | or before December 1 of that year, the board of trustees shall |
18 | | certify the normal cost to the State Actuary and the Commission |
19 | | on Government Forecasting and Accountability, and the employee |
20 | | contributions shall revert back to 6.2% of salary beginning |
21 | | January 1 of the following year. |
22 | | (k) No later than 5 months after the resolution or |
23 | | ordinance date, an affected pension fund shall prepare and |
24 | | implement a defined contribution plan for members or |
25 | | participants who are subject to this Section. The defined |
26 | | contribution plan developed under this subsection shall be a |
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1 | | plan that aggregates employer and employee contributions in |
2 | | individual participant accounts which, after meeting any other |
3 | | requirements, are used for payouts after retirement in |
4 | | accordance with this subsection and any other applicable laws. |
5 | | (1) Each member or participant shall contribute a |
6 | | minimum of 4% of his or her salary to the defined |
7 | | contribution plan. |
8 | | (2) For each participant in the defined contribution |
9 | | plan who has been employed with the same employer for at |
10 | | least one year, employer contributions shall be paid into |
11 | | that participant's accounts at a rate expressed as a |
12 | | percentage of salary. This rate may be set for individual |
13 | | employees, but shall be no higher than 6% of salary and |
14 | | shall be no lower than 2% of salary. |
15 | | (3) Employer contributions shall vest when those |
16 | | contributions are paid into a member's or participant's |
17 | | account. |
18 | | (4) The defined contribution plan shall provide a |
19 | | variety of options for investments. These options shall |
20 | | include investments handled by the Illinois State Board of |
21 | | Investment as well as private sector investment options. |
22 | | (5) The defined contribution plan shall provide a |
23 | | variety of options for payouts to retirees and their |
24 | | survivors. |
25 | | (6) To the extent authorized under federal law and as |
26 | | authorized by the affected pension fund, the defined |
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1 | | contribution plan shall allow former participants in the |
2 | | plan to transfer or roll over employee and employer |
3 | | contributions, and the earnings thereon, into other |
4 | | qualified retirement plans. |
5 | | (7) Each affected pension fund shall reduce the |
6 | | employee contributions credited to the member's defined |
7 | | contribution plan account by an amount determined by that |
8 | | affected pension fund to cover the cost of offering the |
9 | | benefits under this subsection and any applicable |
10 | | administrative fees. |
11 | | (8) No person shall begin participating in the defined |
12 | | contribution plan until it has attained qualified plan |
13 | | status and received all necessary approvals from the U.S. |
14 | | Internal Revenue Service. |
15 | | (l) In the case of a conflict between the provisions of |
16 | | this Section and any other provision of this Code, the |
17 | | provisions of this Section shall control. |
18 | | (40 ILCS 5/1-167 new) |
19 | | Sec. 1-167. Election by Tier 1 employees. |
20 | | (a) The Board of any pension fund or retirement system |
21 | | established under this Code may, by resolution, provide Tier 1 |
22 | | employees with the opportunity to make an irrevocable election |
23 | | in accordance with this Section. The fund or system shall adopt |
24 | | rules for the administration of the election. |
25 | | (b) If approved by the Board of the applicable pension fund |
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1 | | or retirement system, an active Tier 1 employee may make an |
2 | | irrevocable election to agree to delay his or her eligibility |
3 | | for automatic annual increases in retirement annuity and to |
4 | | reduce the amount of the automatic annual increases in his or |
5 | | her retirement annuity and survivor's annuity as provided in |
6 | | subsection (e) of Section 1-160. |
7 | | (c) As adequate and legal consideration provided under |
8 | | this amendatory Act of the 100th General Assembly for making an |
9 | | election under subsection (b) of this Section, a Tier 1 |
10 | | employee shall be entitled to receive: |
11 | | (1) a consideration payment equal to 10% of the |
12 | | contributions made by or on behalf of the employee before |
13 | | the effective date of that election; and |
14 | | (2) a 10% reduction in future employee pension |
15 | | contributions under the applicable Article. |
16 | | (d) Each fund or system that conducts the election shall |
17 | | make a good faith effort to contact Tier 1 members subject to |
18 | | this Section. The fund or system shall describe the election, |
19 | | publish the details on its website, and publish those details |
20 | | in a regularly published newsletter or other existing public |
21 | | forum. Upon request, the fund or system shall offer Tier 1 |
22 | | employees an opportunity to receive information before making |
23 | | the election. The information may be provided through video |
24 | | materials, group presentations, individual consultation with a |
25 | | member or authorized representative of the fund or system in |
26 | | person or by telephone or other electronic means, or any |
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1 | | combination of those methods. The fund or system shall inform |
2 | | Tier 1 members that the member may also wish to obtain |
3 | | information and counsel relating to the election under this |
4 | | Section from any other available source, including, but not |
5 | | limited to, labor organizations and private counsel. |
6 | | (e) The fund or system shall not provide advice or |
7 | | counseling with respect to the legal or tax circumstances of or |
8 | | consequences of making the election in subsection (b) this |
9 | | Section. In no event shall the System, its staff, or the Board |
10 | | be held liable for any information given to a member regarding |
11 | | the election under this Section. |
12 | | (f) This subsection does not apply to Articles 2, 14, 15, |
13 | | 16, and 17. |
14 | | (40 ILCS 5/2-105.3 new) |
15 | | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A |
16 | | participant who first became a participant before January 1, |
17 | | 2011.
|
18 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
|
19 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
20 | | which has been
held unconstitutional)
|
21 | | Sec. 2-108. Salary. "Salary": |
22 | | (1) For members of the General Assembly,
the total |
23 | | compensation paid to the member by the State for one
year of |
24 | | service, including the additional amounts, if any, paid to
the |
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1 | | member as an officer pursuant to Section 1 of "An Act
in |
2 | | relation to the compensation and emoluments of the members of |
3 | | the
General Assembly", approved December 6, 1907, as now or |
4 | | hereafter
amended.
|
5 | | (2) For the State executive officers specified
in Section |
6 | | 2-105, the total compensation paid to the member for one year
|
7 | | of service.
|
8 | | (3) For members of the System who are participants under |
9 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
10 | | of the House of
Representatives or Secretary or Assistant |
11 | | Secretary of the Senate, the
total compensation paid to the |
12 | | member for one year of service, but not to
exceed the salary of |
13 | | the highest salaried officer of the General Assembly.
|
14 | | However, in the event that federal law results in any |
15 | | participant
receiving imputed income based on the value of |
16 | | group term life insurance
provided by the State, such imputed |
17 | | income shall not be included in salary
for the purposes of this |
18 | | Article.
|
19 | | Notwithstanding any other provision of this Section, |
20 | | "salary" does not include any consideration payment made to a |
21 | | Tier 1 employee. |
22 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
23 | | (40 ILCS 5/2-110.3 new) |
24 | | Sec. 2-110.3. Election by Tier 1 employees. |
25 | | (a) If approved by resolution of the Board, an active Tier |
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1 | | 1 employee may make an irrevocable election to agree to delay |
2 | | his or her eligibility for automatic annual increases in |
3 | | retirement annuity as provided in subsection (a-1) of Section |
4 | | 2-119.1 and to have the amount of the automatic annual |
5 | | increases in his or her retirement annuity and survivor's |
6 | | annuity that are otherwise provided for in this Article |
7 | | calculated, instead, as provided in subsection (a-1) of Section |
8 | | 2-119.1. |
9 | | (b) As adequate and legal consideration provided under this |
10 | | amendatory Act of the 100th General Assembly for making an |
11 | | election under subsection (a) of this Section, each Tier 1 |
12 | | employee who has made an election under subsection (a) of this |
13 | | Section shall receive a consideration payment equal to 10% of |
14 | | the contributions made by or on behalf of the employee under |
15 | | Section 2-126 before the effective date of that election. The |
16 | | System shall pay the amount of the consideration payment. |
17 | | (c) A Tier 1 employee who does not make the election under |
18 | | subsection (a) of this Section shall not be subject to the |
19 | | benefits of subsection (b) of this Section. |
20 | | (d) The System shall make a good faith effort to contact |
21 | | each Tier 1 employee subject to this Section. Such |
22 | | correspondence shall describe the election to each Tier 1 |
23 | | employee. If the Tier 1 employee is not responsive, it is |
24 | | sufficient for the System to publish the details of any |
25 | | elections on its website or to publish those details in a |
26 | | regularly published newsletter or other existing public 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 election. Upon request, the System shall offer Tier 1 |
5 | | employees an opportunity to receive information from the System |
6 | | before making the election. The information may be provided |
7 | | through video materials, group presentations, individual |
8 | | consultation with a member or authorized representative of the |
9 | | System in person or by telephone or other electronic means, or |
10 | | any combination of those methods. The System shall not provide |
11 | | advice or counseling with respect to the legal or tax |
12 | | circumstances of or consequences of making the election in |
13 | | subsection (a) of this Section. |
14 | | The System shall inform Tier 1 employees in the election |
15 | | packet required under this subsection that the Tier 1 employee |
16 | | may also wish to obtain information and counsel relating to the |
17 | | election under this Section from any other available source, |
18 | | including, but not limited to, labor organizations and private |
19 | | counsel. |
20 | | In no event shall the System, its staff, or the Board be |
21 | | held liable for any information given to a member regarding the |
22 | | election under this Section. The System shall coordinate with |
23 | | other retirement systems administering an election in |
24 | | accordance with this amendatory Act of the 100th General |
25 | | Assembly to provide information concerning the impact of the |
26 | | election set forth in this Section. |
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1 | | (d-5) To the extent authorized under federal law and as |
2 | | authorized by the retirement system, a Tier 1 employee may |
3 | | transfer or roll over the consideration payment into other |
4 | | qualified retirement plans. |
5 | | (e) A member's election under this Section is not a |
6 | | prohibited election under subdivision (j)(1) of Section 1-119 |
7 | | of this Code. |
8 | | (f) No provision of this Section shall be interpreted in a |
9 | | way that would cause the System to cease to be a qualified plan |
10 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
11 | | provisions of this Section shall be subject to and implemented |
12 | | in a manner that complies with Section 11 of Article IV of the |
13 | | Illinois Constitution.
|
14 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
15 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
16 | | which has been
held unconstitutional)
|
17 | | Sec. 2-119.1. Automatic increase in retirement annuity.
|
18 | | (a) Except as provided in subsection (a-1), a A participant |
19 | | who retires after June 30, 1967, and who has not
received an |
20 | | initial increase under this Section before the effective date
|
21 | | of this amendatory Act of 1991, shall, in January or July next |
22 | | following
the first anniversary of retirement, whichever |
23 | | occurs first, and in the same
month of each year thereafter, |
24 | | but in no event prior to age 60, have the amount
of the |
25 | | originally granted retirement annuity increased as follows: |
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1 | | for each
year through 1971, 1 1/2%; for each year from 1972 |
2 | | through 1979, 2%; and for
1980 and each year thereafter, 3%. |
3 | | Annuitants who have received an initial
increase under this |
4 | | subsection prior to the effective date of this amendatory
Act |
5 | | of 1991 shall continue to receive their annual increases in the |
6 | | same month
as the initial increase.
|
7 | | (a-1) Notwithstanding any other provision of this Article, |
8 | | for a Tier 1 employee who made the election under subsection |
9 | | (a) of Section 2-110.3: |
10 | | (1) The initial increase in retirement annuity under |
11 | | this Section shall occur on the January 1 occurring either |
12 | | on or after the attainment of age 67 or the fifth |
13 | | anniversary of the annuity start date, whichever is |
14 | | earlier. |
15 | | (2) The amount of each automatic annual increase in |
16 | | retirement annuity or survivor's annuity occurring on or |
17 | | after the effective date of that election shall be |
18 | | calculated as a percentage of the originally granted |
19 | | retirement annuity or survivor's annuity, equal to 3% or |
20 | | one-half the annual unadjusted percentage increase (but |
21 | | not less than zero) in the consumer price index-u for the |
22 | | 12 months ending with the September preceding each November |
23 | | 1, whichever is less. If the annual unadjusted percentage |
24 | | change in the consumer price index-u for the 12 months |
25 | | ending with the September preceding each November 1 is zero |
26 | | or there is a decrease, then the annuity shall not be |
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1 | | increased. |
2 | | For the purposes of this Section, "consumer price index-u" |
3 | | means
the index published by the Bureau of Labor Statistics of |
4 | | the United States
Department of Labor that measures the average |
5 | | change in prices of goods and
services purchased by all urban |
6 | | consumers, United States city average, all
items, 1982-84 = |
7 | | 100. The new amount resulting from each annual adjustment
shall |
8 | | be determined by the Public Pension Division of the Department |
9 | | of Insurance and made available to the board of the retirement |
10 | | system by November 1 of each year. |
11 | | (b) Beginning January 1, 1990, for eligible participants |
12 | | who remain
in service after attaining 20 years of creditable |
13 | | service, the 3% increases
provided under subsection (a) shall |
14 | | begin to accrue on the January 1 next
following the date upon |
15 | | which the participant (1) attains age 55, or (2)
attains 20 |
16 | | years of creditable service, whichever occurs later, and shall
|
17 | | continue to accrue while the participant remains in service; |
18 | | such increases
shall become payable on January 1 or July 1, |
19 | | whichever occurs first, next
following the first anniversary of |
20 | | retirement. For any person who has service
credit in the System |
21 | | for the entire period from January 15, 1969 through
December |
22 | | 31, 1992, regardless of the date of termination of service, the
|
23 | | reference to age 55 in clause (1) of this subsection (b) shall |
24 | | be deemed to
mean age 50.
|
25 | | This subsection (b) does not apply to any person who first |
26 | | becomes a
member of the System after August 8, 2003 ( the |
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1 | | effective date of Public Act 93-494) this amendatory Act of
the |
2 | | 93rd General Assembly .
|
3 | | (b-5) Notwithstanding any other provision of this Article, |
4 | | a participant who first becomes a participant on or after |
5 | | January 1, 2011 (the effective date of Public Act 96-889) |
6 | | shall, in January or July next following the first anniversary |
7 | | of retirement, whichever occurs first, and in the same month of |
8 | | each year thereafter, but in no event prior to age 67, have the |
9 | | amount of the retirement annuity then being paid increased by |
10 | | 3% or the annual unadjusted percentage increase in the Consumer |
11 | | Price Index for All Urban Consumers as determined by the Public |
12 | | Pension Division of the Department of Insurance under |
13 | | subsection (a) of Section 2-108.1, whichever is less. |
14 | | (c) The foregoing provisions relating to automatic |
15 | | increases are not
applicable to a participant who retires |
16 | | before having made contributions
(at the rate prescribed in |
17 | | Section 2-126) for automatic increases for less
than the |
18 | | equivalent of one full year. However, in order to be eligible |
19 | | for
the automatic increases, such a participant may make |
20 | | arrangements to pay
to the system the amount required to bring |
21 | | the total contributions for the
automatic increase to the |
22 | | equivalent of one year's contributions based upon
his or her |
23 | | last salary.
|
24 | | (d) A participant who terminated service prior to July 1, |
25 | | 1967, with at
least 14 years of service is entitled to an |
26 | | increase in retirement annuity
beginning January, 1976, and to |
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1 | | additional increases in January of each
year thereafter.
|
2 | | The initial increase shall be 1 1/2% of the originally |
3 | | granted retirement
annuity multiplied by the number of full |
4 | | years that the annuitant was in
receipt of such annuity prior |
5 | | to January 1, 1972, plus 2% of the originally
granted |
6 | | retirement annuity for each year after that date. The |
7 | | subsequent
annual increases shall be at the rate of 2% of the |
8 | | originally granted
retirement annuity for each year through |
9 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
10 | | (e) Beginning January 1, 1990, and except as provided in |
11 | | subsection (a-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 previous |
14 | | increases granted
under this Article.
|
15 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
16 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
17 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
18 | | which has been
held unconstitutional)
|
19 | | Sec. 2-126. Contributions by participants.
|
20 | | (a) Each participant shall contribute toward the cost of |
21 | | his or her
retirement annuity a percentage of each payment of |
22 | | salary received by him or
her for service as a member as |
23 | | follows: for service between October 31, 1947
and January 1, |
24 | | 1959, 5%; for service between January 1, 1959 and June 30, |
25 | | 1969,
6%; for service between July 1, 1969 and January 10, |
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1 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
2 | | service after December 31, 1981, 8 1/2%.
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3 | | (b) Beginning August 2, 1949, each male participant, and |
4 | | from July 1,
1971, each female participant shall contribute |
5 | | towards the cost of the
survivor's annuity 2% of salary.
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6 | | A participant who has no eligible survivor's annuity |
7 | | beneficiary may elect
to cease making contributions for |
8 | | survivor's annuity under this subsection.
A survivor's annuity |
9 | | shall not be payable upon the death of a person who has
made |
10 | | this election, unless prior to that death the election has been |
11 | | revoked
and the amount of the contributions that would have |
12 | | been paid under this
subsection in the absence of the election |
13 | | is paid to the System, together
with interest at the rate of 4% |
14 | | per year from the date the contributions
would have been made |
15 | | to the date of payment.
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16 | | (c) Beginning July 1, 1967, each participant shall |
17 | | contribute 1% of
salary towards the cost of automatic increase |
18 | | in annuity provided in
Section 2-119.1. These contributions |
19 | | shall be made concurrently with
contributions for retirement |
20 | | annuity purposes.
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21 | | (d) In addition, each participant serving as an officer of |
22 | | the General
Assembly shall contribute, for the same purposes |
23 | | and at the same rates
as are required of a regular participant, |
24 | | on each additional payment
received as an officer. If the |
25 | | participant serves as an
officer for at least 2 but less than 4 |
26 | | years, he or she shall
contribute an amount equal to the amount |
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1 | | that would have been contributed
had the participant served as |
2 | | an officer for 4 years. Persons who serve
as officers in the |
3 | | 87th General Assembly but cannot receive the additional
payment |
4 | | to officers because of the ban on increases in salary during |
5 | | their
terms may nonetheless make contributions based on those |
6 | | additional payments
for the purpose of having the additional |
7 | | payments included in their highest
salary for annuity purposes; |
8 | | however, persons electing to make these
additional |
9 | | contributions must also pay an amount representing the
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10 | | corresponding employer contributions, as calculated by the |
11 | | System.
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12 | | (e) Notwithstanding any other provision of this Article, |
13 | | the required contribution of a participant who first becomes a |
14 | | participant on or after January 1, 2011 shall not exceed the |
15 | | contribution that would be due under this Article if that |
16 | | participant's highest salary for annuity purposes were |
17 | | $106,800, plus any increases in that amount under Section |
18 | | 2-108.1. |
19 | | (f) As adequate and legal consideration provided under this |
20 | | amendatory Act of the 100th General Assembly for making an |
21 | | election under subsection (a) of Section 2-110.3, beginning on |
22 | | the effective date of the Tier 1 employee's election under |
23 | | subsection (a) of Section 2-110.3, in lieu of the contributions |
24 | | otherwise required under this Section, each Tier 1 employee who |
25 | | made the election under subsection (a) of Section 2-110.3 shall |
26 | | contribute 8.5% of each payment of salary toward the cost of |
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1 | | his or her retirement annuity and 1.85% of each payment of |
2 | | salary toward the cost of the survivor's annuity. |
3 | | (g) As adequate and legal consideration provided under this |
4 | | amendatory Act of the 100th General Assembly for making an |
5 | | election under subsection (a) of Section 2-110.3, |
6 | | notwithstanding subsection (f) of this Section, beginning on |
7 | | the effective date of the Tier 1 employee's election under |
8 | | subsection (a) of Section 2-110.3, in lieu of the contributions |
9 | | otherwise required under this Section, each Tier 1 employee who |
10 | | made the election under subsection (a) of Section 2-110.3 and |
11 | | has elected to cease making contributions for survivor's |
12 | | annuity under subsection (b) of this Section, shall contribute |
13 | | 8.55% of each payment of salary toward the cost of his or her |
14 | | retirement annuity. |
15 | | (Source: P.A. 96-1490, eff. 1-1-11.)
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16 | | (40 ILCS 5/2-162) |
17 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
18 | | which has been
held unconstitutional)
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19 | | Sec. 2-162. 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 the effective date of this |
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1 | | amendatory Act of the 94th General Assembly. "New benefit |
2 | | increase", however, does not include any benefit increase |
3 | | resulting from the changes made to this Article by this |
4 | | amendatory Act of the 100th General Assembly. |
5 | | (b) Notwithstanding any other provision of this Code or any |
6 | | subsequent amendment to this Code, every new benefit increase |
7 | | is subject to this Section and shall be deemed to be granted |
8 | | only in conformance with and contingent upon compliance with |
9 | | the provisions of this Section.
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10 | | (c) The Public Act enacting a new benefit increase must |
11 | | identify and provide for payment to the System of additional |
12 | | funding at least sufficient to fund the resulting annual |
13 | | increase in cost to the System as it accrues. |
14 | | Every new benefit increase is contingent upon the General |
15 | | Assembly providing the additional funding required under this |
16 | | subsection. The Commission on Government Forecasting and |
17 | | Accountability shall analyze whether adequate additional |
18 | | funding has been provided for the new benefit increase and |
19 | | shall report its analysis to the Public Pension Division of the |
20 | | Department of Insurance Financial and Professional Regulation . |
21 | | A new benefit increase created by a Public Act that does not |
22 | | include the additional funding required under this subsection |
23 | | is null and void. If the Public Pension Division determines |
24 | | that the additional funding provided for a new benefit increase |
25 | | under this subsection is or has become inadequate, it may so |
26 | | certify to the Governor and the State Comptroller and, in the |
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1 | | absence of corrective action by the General Assembly, the new |
2 | | benefit increase shall expire at the end of the fiscal year in |
3 | | which the certification is made.
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4 | | (d) Every new benefit increase shall expire 5 years after |
5 | | its effective date or on such earlier date as may be specified |
6 | | in the language enacting the new benefit increase or provided |
7 | | under subsection (c). This does not prevent the General |
8 | | Assembly from extending or re-creating a new benefit increase |
9 | | by law. |
10 | | (e) Except as otherwise provided in the language creating |
11 | | the new benefit increase, a new benefit increase that expires |
12 | | under this Section continues to apply to persons who applied |
13 | | and qualified for the affected benefit while the new benefit |
14 | | increase was in effect and to the affected beneficiaries and |
15 | | alternate payees of such persons, but does not apply to any |
16 | | other person, including without limitation a person who |
17 | | continues in service after the expiration date and did not |
18 | | apply and qualify for the affected benefit while the new |
19 | | benefit increase was in effect.
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20 | | (Source: P.A. 94-4, eff. 6-1-05.) |
21 | | (40 ILCS 5/2-165.1 new) |
22 | | Sec. 2-165.1. Defined contribution plan. |
23 | | (a) By July 1, 2018, the System shall prepare and implement |
24 | | a voluntary defined contribution plan for up to 5% of eligible |
25 | | active Tier 1 employees. The System shall determine the 5% cap |
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1 | | by the number of active Tier 1 employees on the effective date |
2 | | of this Section. The defined contribution plan developed under |
3 | | this Section shall be a plan that aggregates employer and |
4 | | employee contributions in individual participant accounts |
5 | | which, after meeting any other requirements, are used for |
6 | | payouts after retirement in accordance with this Section and |
7 | | any other applicable laws. |
8 | | As used in this Section, "defined benefit plan" means the |
9 | | retirement plan available under this Article to Tier 1 |
10 | | employees who have not made the election authorized under this |
11 | | Section. |
12 | | (1) Under the defined contribution plan, an active
Tier |
13 | | 1 employee of this System could elect to cease accruing |
14 | | benefits in the defined benefit plan under this Article and |
15 | | begin accruing benefits for future service in the defined |
16 | | contribution plan. Service credit under the defined |
17 | | contribution plan may be used for determining retirement |
18 | | eligibility under the defined benefit plan. |
19 | | (2) Participants in the defined contribution plan
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20 | | shall pay employee contributions at the same rate as Tier 1 |
21 | | employees in this System who do not participate in the |
22 | | defined contribution plan. |
23 | | (3) State contributions shall be paid into the
accounts |
24 | | of all participants in the defined contribution plan at a |
25 | | uniform rate, expressed as a percentage of compensation and |
26 | | determined for each year. This rate shall be no higher than |
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1 | | the employer's normal cost for Tier 1 employees in the |
2 | | defined benefit plan for that year, as determined by the |
3 | | System and expressed as a percentage of compensation, and |
4 | | shall be no lower than 3% of compensation. The State shall |
5 | | adjust this rate annually. |
6 | | (4) The defined contribution plan shall require 5
years |
7 | | of participation in the defined contribution plan before |
8 | | vesting in State contributions. If the participant fails to |
9 | | vest in them, the State contributions, and the earnings |
10 | | thereon, shall be forfeited. |
11 | | (5) The defined contribution plan may provide for
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12 | | participants in the plan to be eligible for defined |
13 | | disability benefits. If it does, the System shall reduce |
14 | | the employee contributions credited to the participant's |
15 | | defined contribution plan account by an amount determined |
16 | | by the System to cover the cost of offering such benefits. |
17 | | (6) The defined contribution plan shall provide a
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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 | | (7) The defined contribution plan shall provide a
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22 | | variety of options for payouts to retirees and their |
23 | | survivors. |
24 | | (8) To the extent authorized under federal law and
as |
25 | | authorized by the System, the plan shall allow former |
26 | | participants in the plan to transfer or roll over employee |
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1 | | and vested State contributions, and the earnings thereon, |
2 | | into other qualified retirement plans. |
3 | | (9) The System shall reduce the employee
contributions |
4 | | credited to the participant's defined contribution plan |
5 | | account by an amount determined by the System to cover the |
6 | | cost of offering these benefits and any applicable |
7 | | administrative fees. |
8 | | (b) Only persons who are active Tier 1 employees of the |
9 | | System on the effective date of this Section are eligible to |
10 | | participate in the defined contribution plan. Participation in |
11 | | the defined contribution plan shall be limited to the first 5% |
12 | | of eligible persons who elect to participate. The election to |
13 | | participate in the defined contribution plan is voluntary and |
14 | | irrevocable. |
15 | | (c) An eligible active Tier 1 employee may irrevocably |
16 | | elect to participate in the defined contribution plan by filing |
17 | | with the System a written application to participate that is |
18 | | received by the System prior to its determination that 5% of |
19 | | eligible persons have elected to participate in the defined |
20 | | contribution plan. |
21 | | When the System first determines that 5% of eligible |
22 | | persons have elected to participate in the defined contribution |
23 | | plan, the System shall provide notice to previously eligible |
24 | | employees that the plan is no longer available and shall cease |
25 | | accepting applications to participate. |
26 | | (d) The System shall make a good faith effort to contact |
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1 | | each active Tier 1 employee who is eligible to participate in |
2 | | the defined contribution plan. Such correspondence shall |
3 | | describe the option to join the defined contribution plan to |
4 | | each of these employees. If the employee is not responsive to |
5 | | other means of contact, it is sufficient for the System to |
6 | | publish the details of the option on its website. |
7 | | Upon request for further information describing the |
8 | | option, the System shall provide employees with information |
9 | | from the System before exercising the option to join the plan, |
10 | | including information on the impact to their vested benefits or |
11 | | non-vested service. The individual consultation shall include |
12 | | projections of the participant's defined benefits at |
13 | | retirement or earlier termination of service and the value of |
14 | | the participant's account at retirement or earlier termination |
15 | | of service. The System shall not provide advice or counseling |
16 | | with respect to whether the employee should exercise the |
17 | | option. The System shall inform Tier 1 employees who are |
18 | | eligible to participate in the defined contribution plan that |
19 | | they may also wish to obtain information and counsel relating |
20 | | to their option from any other available source, including, but |
21 | | not limited to, labor organizations, private counsel, and |
22 | | financial advisors. |
23 | | (e) In no event shall the System, its staff, its authorized |
24 | | representatives, or the Board be liable for any information |
25 | | given to an employee under this Section. The System may |
26 | | coordinate with other retirement systems administering a |
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1 | | defined contribution plan in accordance with this amendatory |
2 | | Act of the 100th General Assembly to provide information |
3 | | concerning the impact of the option set forth in this Section. |
4 | | (f) Notwithstanding any other provision of this Section, no |
5 | | person shall begin participating in the defined contribution |
6 | | plan until it has attained qualified plan status and received |
7 | | all necessary approvals from the U.S. Internal Revenue Service. |
8 | | (g) The System shall report on its progress under this |
9 | | Section, including the available details of the defined |
10 | | contribution plan and the System's plans for informing eligible |
11 | | Tier 1 employees about the plan, to the Governor and the |
12 | | General Assembly. |
13 | | (h) The Illinois State Board of Investments shall be the |
14 | | plan sponsor for the defined contribution plan established |
15 | | under this Section. |
16 | | (i) The intent of this amendatory Act of the 100th General |
17 | | Assembly is to ensure that the State's normal cost of |
18 | | participation in the defined contribution plan is similar, and |
19 | | if possible equal, to the State's normal cost of participation |
20 | | in the defined benefit plan, unless a lower State's normal cost |
21 | | is necessary to ensure cost neutrality. |
22 | | (40 ILCS 5/2-166.1 new) |
23 | | Sec. 2-166.1. Defined contribution plan; termination. If |
24 | | the defined contribution plan is terminated or becomes |
25 | | inoperative pursuant to law, then each participant in the plan |
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1 | | shall automatically be deemed to have been a contributing Tier |
2 | | 1 employee in the System's defined benefit plan during the time |
3 | | in which he or she participated in the defined contribution |
4 | | plan, and for that purpose the System shall be entitled to |
5 | | recover the amounts in the participant's defined contribution |
6 | | accounts.
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7 | | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
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8 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
9 | | which has been
held unconstitutional)
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10 | | Sec. 14-103.10. Compensation.
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11 | | (a) For periods of service prior to January 1, 1978, the |
12 | | full rate of salary
or wages payable to an employee for |
13 | | personal services performed if he worked
the full normal |
14 | | working period for his position, subject to the following
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15 | | maximum amounts: (1) prior to July 1, 1951, $400 per month or |
16 | | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
17 | | inclusive, $625 per month or $7,500
per year; (3) beginning |
18 | | July 1, 1957, no limitation.
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19 | | In the case of service of an employee in a position |
20 | | involving
part-time employment, compensation shall be |
21 | | determined according to the
employees' earnings record.
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22 | | (b) For periods of service on and after January 1, 1978, |
23 | | all
remuneration for personal services performed defined as |
24 | | "wages" under
the Social Security Enabling Act, including that |
25 | | part of such
remuneration which is in excess of any maximum |
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1 | | limitation provided in
such Act, and including any benefits |
2 | | received by an employee under a sick
pay plan in effect before |
3 | | January 1, 1981, but excluding lump sum salary
payments:
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4 | | (1) for vacation,
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5 | | (2) for accumulated unused sick leave,
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6 | | (3) upon discharge or dismissal,
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7 | | (4) for approved holidays.
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8 | | (c) For periods of service on or after December 16, 1978, |
9 | | compensation
also includes any benefits, other than lump sum |
10 | | salary payments made at
termination of employment, which an |
11 | | employee receives or is eligible to
receive under a sick pay |
12 | | plan authorized by law.
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13 | | (d) For periods of service after September 30, 1985, |
14 | | compensation also
includes any remuneration for personal |
15 | | services not included as "wages"
under the Social Security |
16 | | Enabling Act, which is deducted for purposes of
participation |
17 | | in a program established pursuant to Section 125 of the
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18 | | Internal Revenue Code or its successor laws.
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19 | | (e) For members for which Section 1-160 applies for periods |
20 | | of service on and after January 1, 2011, all remuneration for |
21 | | personal services performed defined as "wages" under the Social |
22 | | Security Enabling Act, excluding remuneration that is in excess |
23 | | of the annual earnings, salary, or wages of a member or |
24 | | participant, as provided in subsection (b-5) of Section 1-160, |
25 | | but including any benefits received by an employee under a sick |
26 | | pay plan in effect before January 1, 1981.
Compensation shall |
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1 | | exclude lump sum salary payments: |
2 | | (1) for vacation; |
3 | | (2) for accumulated unused sick leave; |
4 | | (3) upon discharge or dismissal; and |
5 | | (4) for approved holidays. |
6 | | (f) Notwithstanding the other provisions of this Section, |
7 | | for service on or after July 1, 2013, "compensation"
does not |
8 | | include any stipend payable to an employee for service on a |
9 | | board or commission. |
10 | | (g) Notwithstanding any other provision of this Section, |
11 | | "compensation" does not include any consideration payment made |
12 | | to a Tier 1 employee. |
13 | | (Source: P.A. 98-449, eff. 8-16-13.)
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14 | | (40 ILCS 5/14-103.41 new) |
15 | | Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An |
16 | | employee under this Article who first became a member or |
17 | | participant before January 1, 2011 under any reciprocal |
18 | | retirement system or pension fund established under this Code |
19 | | other than a retirement system or pension fund established |
20 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. |
21 | | (40 ILCS 5/14-106.5 new) |
22 | | Sec. 14-106.5. Election by Tier 1 employees. |
23 | | (a) If approved by resolution of the Board, an active Tier |
24 | | 1 employee may make an irrevocable election to agree to delay |
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1 | | his or her eligibility for automatic annual increases in |
2 | | retirement annuity as provided in subsection (a-1) of Section |
3 | | 14-114 and to have the amount of the automatic annual increases |
4 | | in his or her retirement annuity and survivors or widow's |
5 | | annuity that are otherwise provided for in this Article |
6 | | calculated, instead, as provided in subsection (a-1) of Section |
7 | | 14-114. |
8 | | (b) As adequate and legal consideration provided under this |
9 | | amendatory Act of the 100th General Assembly for making an |
10 | | election under subsection (a) of this Section, each Tier 1 |
11 | | employee who has made an election under subsection (a) of this |
12 | | Section shall receive a consideration payment equal to 10% of |
13 | | the contributions made by or on behalf of the employee before |
14 | | the effective date of that election. The System shall pay the |
15 | | amount of the consideration payment. |
16 | | (c) A Tier 1 employee who does not make the election under |
17 | | subsection (a) of this Section shall not be subject to the |
18 | | benefits of subsection (b) of this Section. |
19 | | (d) The System shall make a good faith effort to contact |
20 | | each Tier 1 employee subject to this Section. Such |
21 | | correspondence shall describe the election to each Tier 1 |
22 | | employee. If the Tier 1 employee is not responsive, it is |
23 | | sufficient for the System to publish the details of any |
24 | | elections on its website or to publish those details in a |
25 | | regularly published newsletter or other existing public forum. |
26 | | Tier 1 employees who are subject to this Section shall be |
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1 | | provided with an election packet containing information |
2 | | regarding their options, as well as the forms necessary to make |
3 | | the election. Upon request, the System shall offer Tier 1 |
4 | | employees an opportunity to receive information from the System |
5 | | before making the election. The information may be provided |
6 | | through video materials, group presentations, individual |
7 | | consultation with a member or authorized representative of the |
8 | | System in person or by telephone or other electronic means, or |
9 | | any combination of those methods. The System shall not provide |
10 | | advice or counseling with respect to the legal or tax |
11 | | circumstances of or consequences of making the election in |
12 | | subsection (a) of this Section. |
13 | | The System shall inform Tier 1 employees in the election |
14 | | packet required under this subsection that the Tier 1 employee |
15 | | may also wish to obtain information and counsel relating to the |
16 | | election under this Section from any other available source, |
17 | | including, but not limited to, labor organizations and private |
18 | | counsel. |
19 | | In no event shall the System, its staff, or the Board be |
20 | | held liable for any information given to a member regarding the |
21 | | election under this Section. The System shall coordinate with |
22 | | other retirement systems 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 | | (d-5) To the extent authorized under federal law and as |
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1 | | authorized by the retirement system, a Tier 1 employee may |
2 | | transfer or roll over the consideration payment into other |
3 | | qualified retirement plans. |
4 | | (e) A member's election under this Section is not a |
5 | | prohibited election under subdivision (j)(1) of Section 1-119 |
6 | | of this Code. |
7 | | (f) No provision of this Section shall be interpreted in a |
8 | | way that would cause the System to cease to be a qualified plan |
9 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
10 | | provisions of this Section shall be subject to and implemented |
11 | | in a manner that complies with Section 21 of Article V of the |
12 | | Illinois Constitution.
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13 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
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14 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
15 | | which has been held unconstitutional)
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16 | | Sec. 14-114. Automatic increase in retirement annuity.
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17 | | (a) Subject to the provisions of subsections (a-1), any Any |
18 | | person receiving a retirement annuity under this Article who
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19 | | retires having attained age 60, or who retires before age 60 |
20 | | having at
least 35 years of creditable service, or who retires |
21 | | on or after January
1, 2001 at an age which, when added to the |
22 | | number of years of his or her
creditable service, equals at |
23 | | least 85, shall, on January 1 next
following the first full |
24 | | year of retirement, have the amount of the then fixed
and |
25 | | payable monthly retirement annuity increased 3%. Any person |
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1 | | receiving a
retirement annuity under this Article who retires |
2 | | before attainment of age 60
and with less than (i) 35 years of |
3 | | creditable service if retirement
is before January 1, 2001, or |
4 | | (ii) the number of years of creditable service
which, when |
5 | | added to the member's age, would equal 85, if retirement is on
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6 | | or after January 1, 2001, shall have the amount of the fixed |
7 | | and payable
retirement annuity increased by 3% on the January 1 |
8 | | occurring on or next
following (1) attainment of age 60, or (2) |
9 | | the first anniversary of retirement,
whichever occurs later. |
10 | | However, for persons who receive the alternative
retirement |
11 | | annuity under Section 14-110, references in this subsection (a) |
12 | | to
attainment of age 60 shall be deemed to refer to attainment |
13 | | of age 55. For a
person receiving early retirement incentives |
14 | | under Section 14-108.3 whose
retirement annuity began after |
15 | | January 1, 1992 pursuant to an extension granted
under |
16 | | subsection (e) of that Section, the first anniversary of |
17 | | retirement shall
be deemed to be January 1, 1993.
For a person |
18 | | who retires on or after June 28, 2001 and on or before October |
19 | | 1, 2001,
and whose retirement annuity is calculated, in whole |
20 | | or in part, under Section
14-110 or subsection (g) or (h) of |
21 | | Section 14-108, the first anniversary of
retirement shall be |
22 | | deemed to be January 1, 2002.
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23 | | On each January 1 following the date of the initial |
24 | | increase under this
subsection, the employee's monthly |
25 | | retirement annuity shall be increased
by an additional 3%.
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26 | | Beginning January 1, 1990 , and except as provided in |
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1 | | subsection (a-1) , all automatic annual increases payable under
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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.
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5 | | (a-1) Notwithstanding any other provision of this Article, |
6 | | for a Tier 1 employee who made the election under subsection |
7 | | (a) of Section 14-106.5: |
8 | | (1) The initial increase in retirement annuity under |
9 | | this Section shall occur on the January 1 occurring either |
10 | | on or after the attainment of age 67 or the fifth |
11 | | anniversary of the annuity start date, whichever is |
12 | | earlier. |
13 | | (2) The amount of each automatic annual increase in |
14 | | retirement annuity or survivors or widow's annuity |
15 | | occurring on or after the effective date of that election |
16 | | shall be calculated as a percentage of the originally |
17 | | granted retirement annuity or survivors or widow's |
18 | | annuity, equal to 3% or one-half the annual unadjusted |
19 | | percentage increase (but not less than zero) in the |
20 | | consumer price index-u for the 12 months ending with the |
21 | | September preceding each November 1, whichever is less. If |
22 | | the annual unadjusted percentage change in the consumer |
23 | | price index-u for the 12 months ending with the September |
24 | | preceding each November 1 is zero or there is a decrease, |
25 | | then the annuity shall not be increased. |
26 | | For the purposes of this Section, "consumer price index-u" |
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1 | | means
the index published by the Bureau of Labor Statistics of |
2 | | the United States
Department of Labor that measures the average |
3 | | change in prices of goods and
services purchased by all urban |
4 | | consumers, United States city average, all
items, 1982-84 = |
5 | | 100. The new amount resulting from each annual adjustment
shall |
6 | | be determined by the Public Pension Division of the Department |
7 | | of Insurance and made available to the board of the retirement |
8 | | system by November 1 of each year. |
9 | | (b) The provisions of subsection (a) of this Section shall |
10 | | be
applicable to an employee only if the employee makes the |
11 | | additional
contributions required after December 31, 1969 for |
12 | | the purpose of the
automatic increases for not less than the |
13 | | equivalent of one full year.
If an employee becomes an |
14 | | annuitant before his additional contributions
equal one full |
15 | | year's contributions based on his salary at the date of
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16 | | retirement, the employee may pay the necessary balance of the
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17 | | contributions to the system, without interest, and be eligible |
18 | | for the
increasing annuity authorized by this Section.
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19 | | (c) The provisions of subsection (a) of this Section shall |
20 | | not be
applicable to any annuitant who is on retirement on |
21 | | December 31, 1969, and
thereafter returns to State service, |
22 | | unless the member has established at
least one year of |
23 | | additional creditable service following reentry into service.
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24 | | (d) In addition to other increases which may be provided by |
25 | | this Section,
on January 1, 1981 any annuitant who was |
26 | | receiving a retirement annuity
on or before January 1, 1971 |
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1 | | shall have his retirement annuity then being
paid increased $1 |
2 | | per month for each year of creditable service. On January
1, |
3 | | 1982, any annuitant who began receiving a retirement annuity on |
4 | | or
before January 1, 1977, shall have his retirement annuity |
5 | | then being paid
increased $1 per month for each year of |
6 | | creditable service.
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7 | | On January 1, 1987, any annuitant who began receiving a |
8 | | retirement
annuity on or before January 1, 1977, shall have the |
9 | | monthly retirement annuity
increased by an amount equal to 8¢ |
10 | | per year of creditable service times the
number of years that |
11 | | have elapsed since the annuity began.
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12 | | (e) Every person who receives the alternative retirement |
13 | | annuity under
Section 14-110 and who is eligible to receive the |
14 | | 3% increase under subsection
(a) on January 1, 1986, shall also |
15 | | receive on that date a one-time increase
in retirement annuity |
16 | | equal to the difference between (1) his actual
retirement |
17 | | annuity on that date, including any increases received under
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18 | | subsection (a), and (2) the amount of retirement annuity he |
19 | | would have
received on that date if the amendments to |
20 | | subsection (a) made by Public
Act 84-162 had been in effect |
21 | | since the date of his retirement.
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22 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
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23 | | 92-651, eff. 7-11-02.)
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24 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
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25 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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1 | | which has been held unconstitutional)
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2 | | Sec. 14-133. Contributions on behalf of members.
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3 | | (a) Except as provided in subsection (a-5), each Each |
4 | | participating employee shall make contributions to the System,
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5 | | based on the employee's compensation, as follows:
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6 | | (1) Covered employees, except as indicated below, 3.5% |
7 | | for
retirement annuity, and 0.5% for a widow or survivors
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8 | | annuity;
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9 | | (2) Noncovered employees, except as indicated below, |
10 | | 7% for retirement
annuity and 1% for a widow or survivors |
11 | | annuity;
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12 | | (3) Noncovered employees serving in a position in which |
13 | | "eligible
creditable service" as defined in Section 14-110 |
14 | | may be earned, 1% for a widow
or survivors annuity
plus the |
15 | | following amount for retirement annuity: 8.5% through |
16 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
17 | | in 2004 and thereafter;
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18 | | (4) Covered employees serving in a position in which |
19 | | "eligible creditable
service" as defined in Section 14-110 |
20 | | may be earned, 0.5% for a widow or survivors annuity
plus |
21 | | the following amount for retirement annuity: 5% through |
22 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
23 | | and thereafter;
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24 | | (5) Each security employee of the Department of |
25 | | Corrections
or of the Department of Human Services who is a |
26 | | covered employee, 0.5% for a widow or survivors annuity
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1 | | plus the following amount for retirement annuity: 5% |
2 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
3 | | in 2004 and thereafter;
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4 | | (6) Each security employee of the Department of |
5 | | Corrections
or of the Department of Human Services who is |
6 | | not a covered employee, 1% for a widow or survivors annuity
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7 | | plus the following amount for retirement annuity: 8.5% |
8 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
9 | | 11.5% in 2004 and thereafter.
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10 | | (a-5) As adequate and legal consideration provided under |
11 | | this amendatory Act of the 100th General Assembly for making an |
12 | | election under subsection (a) of Section 14-106.5, beginning on |
13 | | the effective date of the Tier 1 employee's election under |
14 | | subsection (a) of Section 14-106.5, in lieu of the |
15 | | contributions otherwise required under subsection (a), each |
16 | | Tier 1 employee who made the election under subsection (a) of |
17 | | Section 14-106.5 who is a participating employee shall make |
18 | | contributions to the System, based on his or her compensation, |
19 | | as follows: |
20 | | (1) Covered employees, except as indicated below,
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21 | | 3.15% for retirement annuity, and 0.45% for a widow or |
22 | | survivors annuity; |
23 | | (2) Noncovered employees, except as indicated below,
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24 | | 6.3% for retirement annuity and 0.9% for a widow or |
25 | | survivors annuity; |
26 | | (3) Noncovered employees serving in a position in
which |
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1 | | "eligible creditable service" as defined in Section 14-110 |
2 | | may be earned, 10.35% for retirement annuity and 0.9% for a |
3 | | widow or survivors annuity; |
4 | | (4) Covered employees serving in a position in which
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5 | | "eligible creditable service" as defined in Section 14-110 |
6 | | may be earned, 7.2% for retirement annuity and 0.45% for a |
7 | | widow or survivors annuity; |
8 | | (5) Each security employee of the Department of
|
9 | | Corrections or of the Department of Human Services who is a |
10 | | covered employee, 7.2% for retirement annuity and 0.45% for |
11 | | a widow or survivors annuity; |
12 | | (6) Each security employee of the Department of
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13 | | Corrections or of the Department of Human Services who is |
14 | | not a covered employee, 10.35% for retirement annuity and |
15 | | 0.9% for a widow or survivors annuity. |
16 | | (b) Contributions shall be in the form of a deduction from
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17 | | compensation and shall be made notwithstanding that the |
18 | | compensation
paid in cash to the employee shall be reduced |
19 | | thereby below the minimum
prescribed by law or regulation. Each |
20 | | member is deemed to consent and
agree to the deductions from |
21 | | compensation provided for in this Article,
and shall receipt in |
22 | | full for salary or compensation.
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23 | | (Source: P.A. 92-14, eff. 6-28-01.)
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24 | | (40 ILCS 5/14-147.5 new) |
25 | | Sec. 14-147.5. Accelerated pension benefit payment. |
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1 | | (a) As used in this Section: |
2 | | "Eligible person" means a person who: |
3 | | (1) has terminated service; |
4 | | (2) has accrued sufficient service credit to be |
5 | | eligible to receive a retirement annuity under this |
6 | | Article; |
7 | | (3) has not received any retirement annuity under this |
8 | | Article; and |
9 | | (4) is not a party to a pending divorce proceeding and |
10 | | does not have a QILDRO in effect against him or her under |
11 | | 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) If approved by resolution of the Board in any year, 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. The System shall make a good faith |
3 | | effort to contact every eligible person to notify him or her of |
4 | | the election and of the amount of the accelerated pension |
5 | | benefit payment. |
6 | | During a period of 3 months determined by the Board, an |
7 | | eligible person may irrevocably elect to receive an accelerated |
8 | | pension benefit payment in the amount that the System offers |
9 | | under this subsection in lieu of receiving any pension benefit. |
10 | | A person who elects to receive an accelerated pension benefit |
11 | | payment under this Section may not elect to proceed under the |
12 | | Retirement Systems Reciprocal Act with respect to service under |
13 | | this Article. The accelerated pension benefit payment shall be |
14 | | paid by the System. |
15 | | (c) A person's credits and creditable service under this |
16 | | Article shall be terminated upon the person's receipt of an |
17 | | accelerated pension benefit payment under this Section, and no |
18 | | other benefit shall be paid under this Article based on those |
19 | | terminated credits and creditable service, including any |
20 | | retirement, survivor, or other benefit; except that to the |
21 | | extent that participation, benefits, or premiums under the |
22 | | State Employees Group Insurance Act of 1971 are based on the |
23 | | amount of service credit, the terminated service credit shall |
24 | | be used for that purpose. |
25 | | (d) If a person who has received an accelerated pension |
26 | | benefit payment under this Section returns to active service |
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1 | | under this Article, then: |
2 | | (1) Any benefits under the System earned as a result of |
3 | | that return to active service shall be based solely on the |
4 | | person's credits and creditable service arising from the |
5 | | return to active service. |
6 | | (2) The accelerated pension benefit payment may not be |
7 | | repaid to the System, and the terminated credits and |
8 | | creditable service may not under any circumstances be |
9 | | reinstated. |
10 | | (e) As a condition of receiving an accelerated pension |
11 | | benefit payment, an eligible person must have another |
12 | | retirement plan or account qualified under the Internal Revenue |
13 | | Code of 1986, as amended, for the accelerated pension benefit |
14 | | payment to be rolled into. The accelerated pension benefit |
15 | | payment under this Section may be subject to withholding or |
16 | | payment of applicable taxes, but to the extent permitted by |
17 | | federal law, a person who receives an accelerated pension |
18 | | benefit payment under this Section must direct the System to |
19 | | pay all of that payment as a rollover into another retirement |
20 | | plan or account qualified under the Internal Revenue Code of |
21 | | 1986, as amended. |
22 | | (f) The Board may adopt any rules necessary to implement |
23 | | this Section. |
24 | | (g) No provision of this Section shall be interpreted in a |
25 | | way that would cause the applicable System to cease to be a |
26 | | qualified plan under the Internal Revenue Code of 1986. |
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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)
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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 .
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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.
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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 |
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1 | | Assembly providing the additional funding required under this |
2 | | subsection. The Commission on Government Forecasting and |
3 | | Accountability shall analyze whether adequate additional |
4 | | funding has been provided for the new benefit increase and |
5 | | shall report its analysis to the Public Pension Division of the |
6 | | Department of Insurance Financial and Professional Regulation . |
7 | | A new benefit increase created by a Public Act that does not |
8 | | include the additional funding required under this subsection |
9 | | is null and void. If the Public Pension Division determines |
10 | | that the additional funding provided for a new benefit increase |
11 | | under this subsection is or has become inadequate, it may so |
12 | | certify to the Governor and the State Comptroller and, in the |
13 | | absence of corrective action by the General Assembly, the new |
14 | | benefit increase shall expire at the end of the fiscal year in |
15 | | which the certification is made.
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16 | | (d) Every new benefit increase shall expire 5 years after |
17 | | its effective date or on such earlier date as may be specified |
18 | | in the language enacting the new benefit increase or provided |
19 | | under subsection (c). This does not prevent the General |
20 | | Assembly from extending or re-creating a new benefit increase |
21 | | by law. |
22 | | (e) Except as otherwise provided in the language creating |
23 | | the new benefit increase, a new benefit increase that expires |
24 | | under this Section continues to apply to persons who applied |
25 | | and qualified for the affected benefit while the new benefit |
26 | | increase was in effect and to the affected beneficiaries and |
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1 | | alternate payees of such persons, but does not apply to any |
2 | | other person, including without limitation a person who |
3 | | continues in service after the expiration date and did not |
4 | | apply and qualify for the affected benefit while the new |
5 | | benefit increase was in effect.
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6 | | (Source: P.A. 96-37, eff. 7-13-09.) |
7 | | (40 ILCS 5/14-155.1 new) |
8 | | Sec. 14-155.1. Defined contribution plan. |
9 | | (a) By July 1, 2018, the System shall prepare and implement |
10 | | a voluntary defined contribution plan for up to 5% of eligible |
11 | | active Tier 1 employees. The System shall determine the 5% cap |
12 | | by the number of active Tier 1 employees on the effective date |
13 | | of this Section. The defined contribution plan developed under |
14 | | this Section shall be a plan that aggregates employer and |
15 | | employee contributions in individual participant accounts |
16 | | which, after meeting any other requirements, are used for |
17 | | payouts after retirement in accordance with this Section and |
18 | | any other applicable laws. |
19 | | As used in this Section, "defined benefit plan" means the |
20 | | retirement plan available under this Article to Tier 1 |
21 | | employees who have not made the election authorized under this |
22 | | Section. |
23 | | (1) Under the defined contribution plan, an active
Tier |
24 | | 1 employee of this System could elect to cease accruing |
25 | | benefits in the defined benefit plan under this Article and |
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1 | | begin accruing benefits for future service in the defined |
2 | | contribution plan. Service credit under the defined |
3 | | contribution plan may be used for determining retirement |
4 | | eligibility under the defined benefit plan. |
5 | | (2) Participants in the defined contribution plan
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6 | | shall pay employee contributions at the same rate as Tier 1 |
7 | | employees in this System who do not participate in the |
8 | | defined contribution plan. |
9 | | (3) State contributions shall be paid into the
accounts |
10 | | of all participants in the defined contribution plan at a |
11 | | uniform rate, expressed as a percentage of compensation and |
12 | | determined for each year. This rate shall be no higher than |
13 | | the employer's normal cost for Tier 1 employees in the |
14 | | defined benefit plan for that year, as determined by the |
15 | | System and expressed as a percentage of compensation, and |
16 | | shall be no lower than 3% of compensation. The State shall |
17 | | adjust this rate annually. |
18 | | (4) The defined contribution plan shall require 5
years |
19 | | of participation in the defined contribution plan before |
20 | | vesting in State contributions. If the participant fails to |
21 | | vest in them, the State contributions, and the earnings |
22 | | thereon, shall be forfeited. |
23 | | (5) The defined contribution plan may provide for
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24 | | participants in the plan to be eligible for the defined |
25 | | disability benefits available to other participants under |
26 | | this Article. If it does, the System shall reduce the |
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1 | | employee contributions credited to the member's defined |
2 | | contribution plan account by an amount determined by the |
3 | | System to cover the cost of offering such benefits. |
4 | | (6) The defined contribution plan shall provide a
|
5 | | variety of options for investments. These options shall |
6 | | include investments handled by the Illinois State Board of |
7 | | Investment as well as private sector investment options. |
8 | | (7) The defined contribution plan shall provide a
|
9 | | variety of options for payouts to retirees and their |
10 | | survivors. |
11 | | (8) To the extent authorized under federal law and
as |
12 | | authorized by the System, the plan shall allow former |
13 | | participants in the plan to transfer or roll over employee |
14 | | and vested State contributions, and the earnings thereon, |
15 | | into other qualified retirement plans. |
16 | | (9) The System shall reduce the employee
contributions |
17 | | credited to the member's defined contribution plan account |
18 | | by an amount determined by the System to cover the cost of |
19 | | offering these benefits and any applicable administrative |
20 | | fees. |
21 | | (b) Only persons who are active Tier 1 employees of the |
22 | | System on the effective date of this Section are eligible to |
23 | | participate in the defined contribution plan. Participation in |
24 | | the defined contribution plan shall be limited to the first 5% |
25 | | of eligible persons who elect to participate. The election to |
26 | | participate in the defined contribution plan is voluntary and |
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1 | | irrevocable. |
2 | | (c) An eligible Tier 1 employee may irrevocably elect to |
3 | | participate in the defined contribution plan by filing with the |
4 | | System a written application to participate that is received by |
5 | | the System prior to its determination that 5% of eligible |
6 | | persons have elected to participate in the defined contribution |
7 | | plan. |
8 | | When the System first determines that 5% of eligible |
9 | | persons have elected to participate in the defined contribution |
10 | | plan, the System shall provide notice to previously eligible |
11 | | employees that the plan is no longer available and shall cease |
12 | | accepting applications to participate. |
13 | | (d) The System shall make a good faith effort to contact |
14 | | each active Tier 1 employee who is eligible to participate in |
15 | | the defined contribution plan. Such correspondence shall |
16 | | describe the option to join the defined contribution plan to |
17 | | each of these employees. If the employee is not responsive to |
18 | | other means of contact, it is sufficient for the System to |
19 | | 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 other retirement systems administering a |
13 | | defined contribution plan in accordance with this amendatory |
14 | | Act of the 100th General Assembly to provide information |
15 | | concerning the 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. |
25 | | (h) The Illinois State Board of Investment shall be the |
26 | | plan sponsor for the defined contribution plan established |
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1 | | under this Section. |
2 | | (i) The intent of this amendatory Act of the 100th General |
3 | | Assembly is to ensure that the State's normal cost of |
4 | | participation in the defined contribution plan is similar, and |
5 | | if possible equal, to the State's normal cost of participation |
6 | | in the defined benefit plan, unless a lower State's normal cost |
7 | | is necessary to ensure cost neutrality. |
8 | | (40 ILCS 5/14-155.2 new) |
9 | | Sec. 14-155.2. Defined contribution plan for certain |
10 | | covered employees. |
11 | | (a) As used in this Section: |
12 | | "Defined benefit plan" means the retirement plan available |
13 | | under this Article and Section 1-160 to eligible covered |
14 | | employees who do not make the election authorized under this |
15 | | Section. |
16 | | "Eligible covered employee" means a covered employee who |
17 | | first becomes a participant under this Article on or after July |
18 | | 1, 2018. |
19 | | (b) In lieu of the defined benefit plan, an eligible |
20 | | covered employee may irrevocably elect to participate in the |
21 | | defined contribution plan under this Section. The election to |
22 | | participate in the defined contribution plan must be made |
23 | | within 30 days after becoming an eligible covered employee. The |
24 | | election to participate in the defined contribution plan under |
25 | | this Section is voluntary and irrevocable. |
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1 | | (c) No later than July 1, 2018, the System shall
prepare |
2 | | and implement a voluntary defined contribution plan for |
3 | | eligible covered employees. The defined
contribution plan |
4 | | developed under this Section shall be a
plan that aggregates |
5 | | employer and employee contributions in
individual participant |
6 | | accounts which, after meeting any other
requirements, are used |
7 | | for payouts after retirement in
accordance with this Section |
8 | | and any other applicable laws. |
9 | | (1) A participant in the defined contribution plan |
10 | | shall contribute a minimum of 3% of his or her compensation |
11 | | to the defined contribution plan. |
12 | | (2) For persons who participate in the defined |
13 | | contribution plan for at least one year, employer |
14 | | contributions shall be paid into the accounts of those |
15 | | participants at a rate of 3% of compensation. |
16 | | (3) Employer contributions shall vest when those |
17 | | contributions are paid into a participant's account. |
18 | | (4) The defined contribution plan shall provide a |
19 | | variety of options for investments. These options shall |
20 | | include investments handled by the Illinois State Board of |
21 | | Investment as well as private sector investment options. |
22 | | (5) The defined contribution plan shall provide a |
23 | | variety of options for payouts to retirees and their |
24 | | survivors. |
25 | | (6) To the extent authorized under federal law and as |
26 | | authorized by the affected pension fund, the defined |
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1 | | contribution plan shall allow former participants in the |
2 | | plan to transfer or roll over employee and employer |
3 | | contributions, and the earnings thereon, into other |
4 | | qualified retirement plans. |
5 | | (7) The System shall reduce the employee contributions |
6 | | credited to the participant's defined contribution plan |
7 | | account by an amount determined by the System to cover the |
8 | | cost of offering the benefits under this Section and any |
9 | | applicable administrative fees. |
10 | | (40 ILCS 5/14-156.1 new) |
11 | | Sec. 14-156.1. Defined contribution plan; termination. If |
12 | | the defined contribution plan under Section 14-155.1 is |
13 | | terminated or becomes inoperative pursuant to law, then each |
14 | | participant in the plan shall automatically be deemed to have |
15 | | been a contributing Tier 1 employee in the System's defined |
16 | | benefit plan during the time in which he or she participated in |
17 | | the defined contribution plan, and for that purpose the System |
18 | | shall be entitled to recover the amounts in the participant's |
19 | | defined contribution accounts. |
20 | | (40 ILCS 5/15-108.1) |
21 | | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . |
22 | | "Tier 1 member": A participant or an annuitant of a |
23 | | retirement annuity under this Article, other than a participant |
24 | | in the self-managed plan under Section 15-158.2, who first |
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1 | | became a participant or member before January 1, 2011 under any |
2 | | reciprocal retirement system or pension fund established under |
3 | | this Code, other than a retirement system or pension fund |
4 | | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. |
5 | | "Tier 1 member" includes a person who first became a |
6 | | participant under this System before January 1, 2011 and who |
7 | | accepts a refund and is subsequently reemployed by an employer |
8 | | on or after January 1, 2011.
|
9 | | "Tier 1 employee": A Tier 1 member who is a participating |
10 | | employee, unless he or she is a disability benefit recipient |
11 | | under Section 15-150. However, for the purposes of the election |
12 | | under Section 15-132.9, "Tier 1 employee" does not include an |
13 | | individual who has made an irrevocable election on or before |
14 | | June 1, 2017 to retire from service pursuant to the terms of an |
15 | | employment contract or a collective bargaining agreement in |
16 | | effect on June 1, 2017, excluding any extension, amendment, or |
17 | | renewal of that agreement on or after that date, and has |
18 | | notified the System of that election. |
19 | | (Source: P.A. 98-92, eff. 7-16-13.) |
20 | | (40 ILCS 5/15-108.2) |
21 | | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who |
22 | | first becomes a participant under this Article on or after |
23 | | January 1, 2011 and before July 1, 2018 , other than a person in |
24 | | the self-managed plan established under Section 15-158.2 or a |
25 | | person who makes the election under subsection (c) of Section |
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1 | | 1-161 , unless the person is otherwise a Tier 1 member. "Tier 2 |
2 | | member" does not include a person who makes the election under |
3 | | subsection (c-5) of Section 1-161. The changes made to this |
4 | | Section by this amendatory Act of the 98th General Assembly are |
5 | | a correction of existing law and are intended to be retroactive |
6 | | to the effective date of Public Act 96-889, notwithstanding the |
7 | | provisions of Section 1-103.1 of this Code.
|
8 | | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
|
9 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
|
10 | | Sec. 15-111. Earnings.
|
11 | | (a) "Earnings": Subject to Section 15-111.5, an amount paid |
12 | | for personal services equal to the sum of
the basic |
13 | | compensation plus extra compensation for summer teaching,
|
14 | | overtime or other extra service. For periods for which an |
15 | | employee receives
service credit under subsection (c) of |
16 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the |
17 | | basic compensation on which contributions are
paid by the |
18 | | employee during such periods. Compensation for employment |
19 | | which is
irregular, intermittent and temporary shall not be |
20 | | considered earnings, unless
the participant is also receiving |
21 | | earnings from the employer as an employee
under Section 15-107.
|
22 | | With respect to transition pay paid by the University of |
23 | | Illinois to a
person who was a participating employee employed |
24 | | in the fire department of
the University of Illinois's |
25 | | Champaign-Urbana campus immediately prior to
the elimination |
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1 | | of that fire department:
|
2 | | (1) "Earnings" includes transition pay paid to the |
3 | | employee on or after
the effective date of this amendatory |
4 | | Act of the 91st General Assembly.
|
5 | | (2) "Earnings" includes transition pay paid to the |
6 | | employee before the
effective date of this amendatory Act |
7 | | of the 91st General Assembly only if (i)
employee |
8 | | contributions under Section 15-157 have been withheld from |
9 | | that
transition pay or (ii) the employee pays to the System |
10 | | before January 1, 2001
an amount representing employee |
11 | | contributions under Section 15-157 on that
transition pay. |
12 | | Employee contributions under item (ii) may be paid in a |
13 | | lump
sum, by withholding from additional transition pay |
14 | | accruing before January 1,
2001, or in any other manner |
15 | | approved by the System. Upon payment of the
employee |
16 | | contributions on transition pay, the corresponding |
17 | | employer
contributions become an obligation of the State.
|
18 | | (a-10) Notwithstanding any other provision of this |
19 | | Section, "earnings" does not include any consideration payment |
20 | | made to a Tier 1 employee. |
21 | | (b) For a Tier 2 member, the annual earnings shall not |
22 | | exceed $106,800; however, that amount shall annually |
23 | | thereafter be increased by the lesser of (i) 3% of that amount, |
24 | | including all previous adjustments, or (ii) one half the annual |
25 | | unadjusted percentage increase (but not less than zero) in the |
26 | | consumer price index-u for the 12 months ending with the |
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1 | | September preceding each November 1, including all previous |
2 | | adjustments. |
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 boards of the retirement |
11 | | systems and pension funds by November 1 of each year. |
12 | | (c) With each submission of payroll information in the |
13 | | manner prescribed by the System, the
employer shall certify |
14 | | that the payroll information is correct and complies with all |
15 | | applicable
State and federal laws. |
16 | | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
|
17 | | (40 ILCS 5/15-132.9 new) |
18 | | Sec. 15-132.9. Election by Tier 1 employees. |
19 | | (a) If approved by resolution of the Board, an active Tier |
20 | | 1 employee may make an irrevocable election to agree to delay |
21 | | his or her eligibility for automatic annual increases in |
22 | | retirement annuity as provided in subsection (d-1) of Section |
23 | | 15-136 and to have the amount of the automatic annual increases |
24 | | in his or her retirement annuity and survivors or widow's |
25 | | annuity that are otherwise provided for in this Article |
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1 | | calculated, instead, as provided in subsection (d-1) of Section |
2 | | 15-136. |
3 | | (b) As adequate and legal consideration provided under this |
4 | | amendatory Act of the 100th General Assembly for making an |
5 | | election under subsection (a) of this Section, each Tier 1 |
6 | | employee who has made an election under subsection (a) of this |
7 | | Section shall receive a consideration payment equal to 10% of |
8 | | the contributions made by or on behalf of the employee under |
9 | | Section 15-157 before the effective date of that election. The |
10 | | System shall pay the amount of the consideration payment. |
11 | | (c) A Tier 1 employee who does not make the election under |
12 | | subsection (a) of this Section shall not be subject to the |
13 | | benefits of subsection (b) of this Section. |
14 | | (d) The System shall make a good faith effort to contact |
15 | | each Tier 1 employee subject to this Section. Such |
16 | | correspondence shall describe the election to each Tier 1 |
17 | | employee. If the Tier 1 employee is not responsive, it is |
18 | | sufficient for the System to publish the details of any |
19 | | elections on its website or to publish those details in a |
20 | | regularly published newsletter or other existing public forum. |
21 | | Tier 1 employees who are subject to this Section shall be |
22 | | provided with an election packet containing information |
23 | | regarding their options, as well as the forms necessary to make |
24 | | the election. Upon request, the System shall offer Tier 1 |
25 | | employees an opportunity to receive information from the System |
26 | | before making the election. The information may consist of |
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1 | | video materials, benefit estimators, group presentations, |
2 | | individual consultation with a member or authorized |
3 | | representative of the System in person or by telephone or other |
4 | | electronic means, or any combination of these methods. The |
5 | | System shall not provide advice or counseling with respect to |
6 | | the legal or tax circumstances of or consequences of making the |
7 | | election in subsection (a) of this Section. |
8 | | The System shall inform Tier 1 employees in the election |
9 | | packet required under this subsection that the Tier 1 employee |
10 | | may also wish to obtain information and counsel relating to the |
11 | | election under this Section from any other available source, |
12 | | including, but not limited to, labor organizations and private |
13 | | counsel. |
14 | | In no event shall the System, its staff, or the Board be |
15 | | held liable for any information given to a member regarding the |
16 | | election under this Section. The System shall coordinate with |
17 | | other retirement systems administering an election in |
18 | | accordance with this amendatory Act of the 100th General |
19 | | Assembly to provide information concerning the impact of the |
20 | | election set forth in this Section. |
21 | | (d-5) To the extent authorized under federal law and as |
22 | | authorized by the retirement system, a Tier 1 employee may |
23 | | transfer or roll over the consideration payment into other |
24 | | qualified retirement plans. |
25 | | (e) A member's election under this Section is not a |
26 | | prohibited election under subdivision (j)(1) of Section 1-119 |
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1 | | of this Code. |
2 | | (f) No provision of this Section shall be interpreted in a |
3 | | way that would cause the System to cease to be a qualified plan |
4 | | under Section 401(a) of the Internal Revenue Code of 1986.
|
5 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
6 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
7 | | which has been held unconstitutional)
|
8 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
9 | | of this
Section 15-136 apply only to those participants who are |
10 | | participating in the
traditional benefit package or the |
11 | | portable benefit package and do not
apply to participants who |
12 | | are participating in the self-managed plan.
|
13 | | (a) The amount of a participant's retirement annuity, |
14 | | expressed in the form
of a single-life annuity, shall be |
15 | | determined by whichever of the following
rules is applicable |
16 | | and provides the largest annuity:
|
17 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
18 | | of earnings for
each of the first 10 years of service, 1.90% |
19 | | for each of the next 10 years of
service, 2.10% for each year |
20 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
21 | | each year in excess of 30; or for persons who retire on or
|
22 | | after January 1, 1998, 2.2% of the final rate of earnings for |
23 | | each year of
service.
|
24 | | Rule 2: The retirement annuity shall be the sum of the |
25 | | following,
determined from amounts credited to the participant |
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1 | | in accordance with the
actuarial tables and the effective rate |
2 | | of interest in effect at the
time the retirement annuity |
3 | | begins:
|
4 | | (i) the normal annuity which can be provided on an |
5 | | actuarially
equivalent basis, by the accumulated normal |
6 | | contributions as of
the date the annuity begins;
|
7 | | (ii) an annuity from employer contributions of an |
8 | | amount equal to that
which can be provided on an |
9 | | actuarially equivalent basis from the accumulated
normal |
10 | | contributions made by the participant under Section |
11 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
12 | | accumulated normal contributions made by
the participant; |
13 | | and
|
14 | | (iii) the annuity that can be provided on an |
15 | | actuarially equivalent basis
from the entire contribution |
16 | | made by the participant under Section 15-113.3.
|
17 | | With respect to a police officer or firefighter who retires |
18 | | on or after
August 14, 1998, the accumulated normal |
19 | | contributions taken into account under
clauses (i) and (ii) of |
20 | | this Rule 2 shall include the additional normal
contributions |
21 | | made by the police officer or firefighter under Section
|
22 | | 15-157(a).
|
23 | | The amount of a retirement annuity calculated under this |
24 | | Rule 2 shall
be computed solely on the basis of the |
25 | | participant's accumulated normal
contributions, as specified |
26 | | in this Rule and defined in Section 15-116.
Neither an employee |
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1 | | or employer contribution for early retirement under
Section |
2 | | 15-136.2 nor any other employer contribution shall be used in |
3 | | the
calculation of the amount of a retirement annuity under |
4 | | this Rule 2.
|
5 | | This amendatory Act of the 91st General Assembly is a |
6 | | clarification of
existing law and applies to every participant |
7 | | and annuitant without regard to
whether status as an employee |
8 | | terminates before the effective date of this
amendatory Act.
|
9 | | This Rule 2 does not apply to a person who first becomes an |
10 | | employee under this Article on or after July 1, 2005.
|
11 | | Rule 3: The retirement annuity of a participant who is |
12 | | employed
at least one-half time during the period on which his |
13 | | or her final rate of
earnings is based, shall be equal to the |
14 | | participant's years of service
not to exceed 30, multiplied by |
15 | | (1) $96 if the participant's final rate
of earnings is less |
16 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
17 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
18 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
19 | | the final rate
of earnings is at least $5,500 but less than |
20 | | $6,500, (5)
$144 if the final rate of earnings is at least |
21 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
22 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
23 | | the final rate of earnings is at least $8,500 but
less than |
24 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
|
25 | | more, except that the annuity for those persons having made an |
26 | | election under
Section 15-154(a-1) shall be calculated and |
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1 | | payable under the portable
retirement benefit program pursuant |
2 | | to the provisions of Section 15-136.4.
|
3 | | Rule 4: A participant who is at least age 50 and has 25 or |
4 | | more years of
service as a police officer or firefighter, and a |
5 | | participant who is age 55 or
over and has at least 20 but less |
6 | | than 25 years of service as a police officer
or firefighter, |
7 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
8 | | final rate of earnings for each of the first 10 years of |
9 | | service as a police
officer or firefighter, 2 1/2% for each of |
10 | | the next 10 years of service as a
police officer or |
11 | | firefighter, and 2 3/4% for each year of service as a police
|
12 | | officer or firefighter in excess of 20. The retirement annuity |
13 | | for all other
service shall be computed under Rule 1. A Tier 2 |
14 | | member is eligible for a retirement annuity calculated under |
15 | | Rule 4 only if that Tier 2 member meets the service |
16 | | requirements for that benefit calculation as prescribed under |
17 | | this Rule 4 in addition to the applicable age requirement under |
18 | | subsection (a-5) of Section 15-135.
|
19 | | For purposes of this Rule 4, a participant's service as a |
20 | | firefighter
shall also include the following:
|
21 | | (i) service that is performed while the person is an |
22 | | employee under
subsection (h) of Section 15-107; and
|
23 | | (ii) in the case of an individual who was a |
24 | | participating employee
employed in the fire department of |
25 | | the University of Illinois's
Champaign-Urbana campus |
26 | | immediately prior to the elimination of that fire
|
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1 | | department and who immediately after the elimination of |
2 | | that fire department
transferred to another job with the |
3 | | University of Illinois, service performed
as an employee of |
4 | | the University of Illinois in a position other than police
|
5 | | officer or firefighter, from the date of that transfer |
6 | | until the employee's
next termination of service with the |
7 | | University of Illinois.
|
8 | | (b) For a Tier 1 member, the retirement annuity provided |
9 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each |
10 | | month the participant is under age 60 at the
time of |
11 | | retirement. However, this reduction shall not apply in the |
12 | | following
cases:
|
13 | | (1) For a disabled participant whose disability |
14 | | benefits have been
discontinued because he or she has |
15 | | exhausted eligibility for disability
benefits under clause |
16 | | (6) of Section 15-152;
|
17 | | (2) For a participant who has at least the number of |
18 | | years of service
required to retire at any age under |
19 | | subsection (a) of Section 15-135; or
|
20 | | (3) For that portion of a retirement annuity which has |
21 | | been provided on
account of service of the participant |
22 | | during periods when he or she performed
the duties of a |
23 | | police officer or firefighter, if these duties were |
24 | | performed
for at least 5 years immediately preceding the |
25 | | date the retirement annuity
is to begin.
|
26 | | (b-5) The retirement annuity of a Tier 2 member who is |
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1 | | retiring after attaining age 62 with at least 10 years of |
2 | | service credit shall be reduced by 1/2 of 1% for each full |
3 | | month that the member's age is under age 67. |
4 | | (c) The maximum retirement annuity provided under Rules 1, |
5 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
6 | | benefits as specified in
Section 415 of the Internal Revenue |
7 | | Code of 1986, as such Section may be
amended from time to time |
8 | | and as such benefit limits shall be adjusted by
the |
9 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
10 | | earnings.
|
11 | | (d) Subject to the provisions of subsection (d-1), a A Tier |
12 | | 1 member whose status as an employee terminates after August |
13 | | 14,
1969 shall receive automatic increases in his or her |
14 | | retirement annuity as
follows:
|
15 | | Effective January 1 immediately following the date the |
16 | | retirement annuity
begins, the annuitant shall receive an |
17 | | increase in his or her monthly
retirement annuity of 0.125% of |
18 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
19 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the |
20 | | number of full months which elapsed from the date the |
21 | | retirement annuity
payments began to January 1, 1972, plus |
22 | | 0.1667% of such annuity, multiplied by
the number of full |
23 | | months which elapsed from January 1, 1972, or the date the
|
24 | | retirement annuity payments began, whichever is later, to |
25 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
26 | | number of full months which elapsed
from January 1, 1978, or |
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1 | | the date the retirement annuity payments began,
whichever is |
2 | | later, to the effective date of the increase.
|
3 | | The annuitant shall receive an increase in his or her |
4 | | monthly retirement
annuity on each January 1 thereafter during |
5 | | the annuitant's life of 3% of
the monthly annuity provided |
6 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this |
7 | | Section. The change made under this subsection by P.A. 81-970 |
8 | | is
effective January 1, 1980 and applies to each annuitant |
9 | | whose status as
an employee terminates before or after that |
10 | | date.
|
11 | | Beginning January 1, 1990, and except as provided in |
12 | | subsection (d-1), all automatic annual increases payable under
|
13 | | this Section shall be calculated as a percentage of the total |
14 | | annuity
payable at the time of the increase, including all |
15 | | increases previously
granted under this Article.
|
16 | | The change made in this subsection by P.A. 85-1008 is |
17 | | effective January
26, 1988, and is applicable without regard to |
18 | | whether status as an employee
terminated before that date.
|
19 | | (d-1) Notwithstanding any other provision of this Article, |
20 | | for a Tier 1 employee who made the election under subsection |
21 | | (a) of Section 15-132.9: |
22 | | (1) The initial increase in retirement annuity under |
23 | | this Section shall occur on the January 1 occurring either |
24 | | on or after the attainment of age 67 or the fifth |
25 | | anniversary of the annuity start date, whichever is |
26 | | earlier. |
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1 | | (2) The amount of each automatic annual increase in |
2 | | retirement annuity or survivor annuity occurring on or |
3 | | after the effective date of that election shall be |
4 | | calculated as a percentage of the originally granted |
5 | | retirement annuity or survivor annuity, equal to 3% or |
6 | | one-half the annual unadjusted percentage increase (but |
7 | | not less than zero) in the consumer price index-u for the |
8 | | 12 months ending with the September preceding each November |
9 | | 1, whichever is less. If the annual unadjusted percentage |
10 | | change in the consumer price index-u for the 12 months |
11 | | ending with the September preceding each November 1 is zero |
12 | | or there is a decrease, then the annuity shall not be |
13 | | increased. |
14 | | For the purposes of this Section, "consumer price index-u" |
15 | | means
the index published by the Bureau of Labor Statistics of |
16 | | the United States
Department of Labor that measures the average |
17 | | change in prices of goods and
services purchased by all urban |
18 | | consumers, United States city average, all
items, 1982-84 = |
19 | | 100. The new amount resulting from each annual adjustment
shall |
20 | | be determined by the Public Pension Division of the Department |
21 | | of Insurance and made available to the board of the retirement |
22 | | system by November 1 of each year. |
23 | | (d-5) A retirement annuity of a Tier 2 member shall receive |
24 | | annual increases on the January 1 occurring either on or after |
25 | | the attainment of age 67 or the first anniversary of the |
26 | | annuity start date, whichever is later. Each annual increase |
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1 | | shall be calculated at 3% or one half the annual unadjusted |
2 | | percentage increase (but not less than zero) in the consumer |
3 | | price index-u for the 12 months ending with the September |
4 | | preceding each November 1, whichever is less, of the originally |
5 | | granted retirement annuity. If the annual unadjusted |
6 | | percentage change in the consumer price index-u for the 12 |
7 | | months ending with the September preceding each November 1 is |
8 | | zero or there is a decrease, then the annuity shall not be |
9 | | increased. |
10 | | (e) If, on January 1, 1987, or the date the retirement |
11 | | annuity payment
period begins, whichever is later, the sum of |
12 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
13 | | Section
and the automatic annual increases provided under the |
14 | | preceding subsection
or Section 15-136.1, amounts to less than |
15 | | the retirement
annuity which would be provided by Rule 3, the |
16 | | retirement
annuity shall be increased as of January 1, 1987, or |
17 | | the date the
retirement annuity payment period begins, |
18 | | whichever is later, to the amount
which would be provided by |
19 | | Rule 3 of this Section. Such increased
amount shall be |
20 | | considered as the retirement annuity in determining
benefits |
21 | | provided under other Sections of this Article. This paragraph
|
22 | | applies without regard to whether status as an employee |
23 | | terminated before the
effective date of this amendatory Act of |
24 | | 1987, provided that the annuitant was
employed at least |
25 | | one-half time during the period on which the final rate of
|
26 | | earnings was based.
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1 | | (f) A participant is entitled to such additional annuity as |
2 | | may be provided
on an actuarially equivalent basis, by any |
3 | | accumulated
additional contributions to his or her credit. |
4 | | However,
the additional contributions made by the participant |
5 | | toward the automatic
increases in annuity provided under this |
6 | | Section shall not be taken into
account in determining the |
7 | | amount of such additional annuity.
|
8 | | (g) If, (1) by law, a function of a governmental unit, as |
9 | | defined by Section
20-107 of this Code, is transferred in whole |
10 | | or in part to an employer, and (2)
a participant transfers |
11 | | employment from such governmental unit to such employer
within |
12 | | 6 months after the transfer of the function, and (3) the sum of |
13 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
14 | | 3 of this Section (B)
all proportional annuities payable to the |
15 | | participant by all other retirement
systems covered by Article |
16 | | 20, and (C) the initial primary insurance amount to
which the |
17 | | participant is entitled under the Social Security Act, is less |
18 | | than
the retirement annuity which would have been payable if |
19 | | all of the
participant's pension credits validated under |
20 | | Section 20-109 had been validated
under this system, a |
21 | | supplemental annuity equal to the difference in such
amounts |
22 | | shall be payable to the participant.
|
23 | | (h) On January 1, 1981, an annuitant who was receiving
a |
24 | | retirement annuity on or before January 1, 1971 shall have his |
25 | | or her
retirement annuity then being paid increased $1 per |
26 | | month for
each year of creditable service. On January 1, 1982, |
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1 | | an annuitant whose
retirement annuity began on or before |
2 | | January 1, 1977, shall have his or her
retirement annuity then |
3 | | being paid increased $1 per month for each year of
creditable |
4 | | service.
|
5 | | (i) On January 1, 1987, any annuitant whose retirement |
6 | | annuity began on or
before January 1, 1977, shall have the |
7 | | monthly retirement annuity increased by
an amount equal to 8¢ |
8 | | per year of creditable service times the number of years
that |
9 | | have elapsed since the annuity began.
|
10 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
11 | | 98-92, eff. 7-16-13.)
|
12 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
13 | | Sec. 15-155. Employer contributions.
|
14 | | (a) The State of Illinois shall make contributions by |
15 | | appropriations of
amounts which, together with the other |
16 | | employer contributions from trust,
federal, and other funds, |
17 | | employee contributions, income from investments,
and other |
18 | | income of this System, will be sufficient to meet the cost of
|
19 | | maintaining and administering the System on a 90% funded basis |
20 | | in accordance
with actuarial recommendations.
|
21 | | The Board shall determine the amount of State contributions |
22 | | required for
each fiscal year on the basis of the actuarial |
23 | | tables and other assumptions
adopted by the Board and the |
24 | | recommendations of the actuary, using the formula
in subsection |
25 | | (a-1).
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1 | | (a-1) For State fiscal years 2012 through 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 each of State fiscal years 2019 and 2020, the State |
12 | | shall make an additional contribution to the System equal to 2% |
13 | | of the total payroll of each employee who is deemed to have |
14 | | elected the benefits under Section 1-161 or who has made the |
15 | | election under subsection (c) of Section 1-161. |
16 | | For State fiscal years 1996 through 2005, the State |
17 | | contribution to
the System, as a percentage of the applicable |
18 | | employee payroll, shall be
increased in equal annual increments |
19 | | so that by State fiscal year 2011, the
State is contributing at |
20 | | the rate required under this Section.
|
21 | | Notwithstanding any other provision of this Article, the |
22 | | total required State
contribution for State fiscal year 2006 is |
23 | | $166,641,900.
|
24 | | Notwithstanding any other provision of this Article, the |
25 | | total required State
contribution for State fiscal year 2007 is |
26 | | $252,064,100.
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1 | | For each of State fiscal years 2008 through 2009, the State |
2 | | contribution to
the System, as a percentage of the applicable |
3 | | employee payroll, shall be
increased in equal annual increments |
4 | | from the required State contribution for State fiscal year |
5 | | 2007, so that by State fiscal year 2011, the
State is |
6 | | contributing at the rate otherwise required under this Section.
|
7 | | Notwithstanding any other provision of this Article, the |
8 | | total required State contribution for State fiscal year 2010 is |
9 | | $702,514,000 and shall be made from the State Pensions Fund and |
10 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
11 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
12 | | share of bond sale expenses determined by the System's share of |
13 | | total bond proceeds, (ii) any amounts received from the General |
14 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
15 | | proceeds due to the issuance of discounted bonds, if |
16 | | applicable. |
17 | | Notwithstanding any other provision of this Article, the
|
18 | | total required State contribution for State fiscal year 2011 is
|
19 | | the amount recertified by the System on or before April 1, 2011 |
20 | | pursuant to Section 15-165 and shall be made from the State |
21 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
22 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
23 | | less (i) the pro rata
share of bond sale expenses determined by |
24 | | the System's share of
total bond proceeds, (ii) any amounts |
25 | | received from the General
Revenue Fund in fiscal year 2011, and |
26 | | (iii) any reduction in bond
proceeds due to the issuance of |
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1 | | discounted bonds, if
applicable. |
2 | | Beginning in State fiscal year 2046, the minimum State |
3 | | contribution for
each fiscal year shall be the amount needed to |
4 | | maintain the total assets of
the System at 90% of the total |
5 | | actuarial liabilities of the System.
|
6 | | Amounts received by the System pursuant to Section 25 of |
7 | | the Budget Stabilization Act or Section 8.12 of the State |
8 | | Finance Act in any fiscal year do not reduce and do not |
9 | | constitute payment of any portion of the minimum State |
10 | | contribution required under this Article in that fiscal year. |
11 | | Such amounts shall not reduce, and shall not be included in the |
12 | | calculation of, the required State contributions under this |
13 | | Article in any future year until the System has reached a |
14 | | funding ratio of at least 90%. A reference in this Article to |
15 | | the "required State contribution" or any substantially similar |
16 | | term does not include or apply to any amounts payable to the |
17 | | System under Section 25 of the Budget Stabilization Act. |
18 | | Notwithstanding any other provision of this Section, the |
19 | | required State
contribution for State fiscal year 2005 and for |
20 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
21 | | under this Section and
certified under Section 15-165, shall |
22 | | not exceed an amount equal to (i) the
amount of the required |
23 | | State contribution that would have been calculated under
this |
24 | | Section for that fiscal year if the System had not received any |
25 | | payments
under subsection (d) of Section 7.2 of the General |
26 | | Obligation Bond Act, minus
(ii) the portion of the State's |
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1 | | total debt service payments for that fiscal
year on the bonds |
2 | | issued in fiscal year 2003 for the purposes of that Section |
3 | | 7.2, as determined
and certified by the Comptroller, that is |
4 | | the same as the System's portion of
the total moneys |
5 | | distributed under subsection (d) of Section 7.2 of the General
|
6 | | Obligation Bond Act. In determining this maximum for State |
7 | | fiscal years 2008 through 2010, however, the amount referred to |
8 | | in item (i) shall be increased, as a percentage of the |
9 | | applicable employee payroll, in equal increments calculated |
10 | | from the sum of the required State contribution for State |
11 | | fiscal year 2007 plus the applicable portion of the State's |
12 | | total debt service payments for fiscal year 2007 on the bonds |
13 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
14 | | the General
Obligation Bond Act, so that, by State fiscal year |
15 | | 2011, the
State is contributing at the rate otherwise required |
16 | | under this Section.
|
17 | | (a-2) Beginning in fiscal year 2019, each employer under |
18 | | this Article shall pay to the System a required contribution |
19 | | determined as a percentage of projected payroll and sufficient |
20 | | to produce an annual amount equal to: |
21 | | (i) for each of fiscal year 2019 and 2020, the defined |
22 | | benefit normal cost of the defined benefit plan, less the |
23 | | employee contribution, for each employee of that employer |
24 | | who has elected or who is deemed to have elected the |
25 | | benefits under Section 1-161 or who has made the election |
26 | | under subsection (c) of Section 1-161; for fiscal year 2021 |
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1 | | and each fiscal year thereafter, the defined benefit normal |
2 | | cost of the defined benefit plan, less the employee |
3 | | contribution, plus 2%, for each employee of that employer |
4 | | who has elected or who is deemed to have elected the |
5 | | benefits under Section 1-161 or who has made the election |
6 | | under subsection (c) of Section 1-161; plus |
7 | | (ii) the amount required for that fiscal year to |
8 | | amortize any unfunded actuarial accrued liability |
9 | | associated with the present value of liabilities |
10 | | attributable to the employer's account under Section |
11 | | 15-155.2, determined
as a level percentage of payroll over |
12 | | a 30-year rolling amortization period. |
13 | | In determining contributions required under item (i) of |
14 | | this subsection, the System shall determine an aggregate rate |
15 | | for all employers, expressed as a percentage of projected |
16 | | payroll. |
17 | | In determining the contributions required under item (ii) |
18 | | of this subsection, the amount shall be computed by the System |
19 | | on the basis of the actuarial assumptions and tables used in |
20 | | the most recent actuarial valuation of the System that is |
21 | | available at the time of the computation. |
22 | | The contributions required under this subsection (a-2) |
23 | | shall be paid by an employer concurrently with that employer's |
24 | | payroll payment period. The State, as the actual employer of an |
25 | | employee, shall make the required contributions under this |
26 | | subsection. |
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1 | | As used in this subsection, "academic year" means the |
2 | | 12-month period beginning September 1. |
3 | | (b) If an employee is paid from trust or federal funds, the |
4 | | employer
shall pay to the Board contributions from those funds |
5 | | which are
sufficient to cover the accruing normal costs on |
6 | | behalf of the employee.
However, universities having employees |
7 | | who are compensated out of local
auxiliary funds, income funds, |
8 | | or service enterprise funds are not required
to pay such |
9 | | contributions on behalf of those employees. The local auxiliary
|
10 | | funds, income funds, and service enterprise funds of |
11 | | universities shall not be
considered trust funds for the |
12 | | purpose of this Article, but funds of alumni
associations, |
13 | | foundations, and athletic associations which are affiliated |
14 | | with
the universities included as employers under this Article |
15 | | and other employers
which do not receive State appropriations |
16 | | are considered to be trust funds for
the purpose of this |
17 | | Article.
|
18 | | (b-1) The City of Urbana and the City of Champaign shall |
19 | | each make
employer contributions to this System for their |
20 | | respective firefighter
employees who participate in this |
21 | | System pursuant to subsection (h) of Section
15-107. The rate |
22 | | of contributions to be made by those municipalities shall
be |
23 | | determined annually by the Board on the basis of the actuarial |
24 | | assumptions
adopted by the Board and the recommendations of the |
25 | | actuary, and shall be
expressed as a percentage of salary for |
26 | | each such employee. The Board shall
certify the rate to the |
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1 | | affected municipalities as soon as may be practical.
The |
2 | | employer contributions required under this subsection shall be |
3 | | remitted by
the municipality to the System at the same time and |
4 | | in the same manner as
employee contributions.
|
5 | | (c) Through State fiscal year 1995: The total employer |
6 | | contribution shall
be apportioned among the various funds of |
7 | | the State and other employers,
whether trust, federal, or other |
8 | | funds, in accordance with actuarial procedures
approved by the |
9 | | Board. State of Illinois contributions for employers receiving
|
10 | | State appropriations for personal services shall be payable |
11 | | from appropriations
made to the employers or to the System. The |
12 | | contributions for Class I
community colleges covering earnings |
13 | | other than those paid from trust and
federal funds, shall be |
14 | | payable solely from appropriations to the Illinois
Community |
15 | | College Board or the System for employer contributions.
|
16 | | (d) Beginning in State fiscal year 1996, the required State |
17 | | contributions
to the System shall be appropriated directly to |
18 | | the System and shall be payable
through vouchers issued in |
19 | | accordance with subsection (c) of Section 15-165, except as |
20 | | provided in subsection (g).
|
21 | | (e) The State Comptroller shall draw warrants payable to |
22 | | the System upon
proper certification by the System or by the |
23 | | employer in accordance with the
appropriation laws and this |
24 | | Code.
|
25 | | (f) Normal costs under this Section means liability for
|
26 | | pensions and other benefits which accrues to the System because |
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1 | | of the
credits earned for service rendered by the participants |
2 | | during the
fiscal year and expenses of administering the |
3 | | System, but shall not
include the principal of or any |
4 | | redemption premium or interest on any bonds
issued by the Board |
5 | | or any expenses incurred or deposits required in
connection |
6 | | therewith.
|
7 | | (g) If the amount of a participant's earnings for any |
8 | | academic year used to determine the final rate of earnings, |
9 | | determined on a full-time equivalent basis, exceeds the amount |
10 | | of his or her earnings with the same employer for the previous |
11 | | academic year, determined on a full-time equivalent basis, by |
12 | | more than 6%, the participant's employer shall pay to the |
13 | | System, in addition to all other payments required under this |
14 | | Section and in accordance with guidelines established by the |
15 | | System, the present value of the increase in benefits resulting |
16 | | from the portion of the increase in earnings that is in excess |
17 | | of 6%. This present value shall be computed by the System on |
18 | | the basis of the actuarial assumptions and tables used in the |
19 | | most recent actuarial valuation of the System that is available |
20 | | at the time of the computation. The System may require the |
21 | | employer to provide any pertinent information or |
22 | | documentation. |
23 | | Whenever it determines that a payment is or may be required |
24 | | under this subsection (g), the System shall calculate the |
25 | | amount of the payment and bill the employer for that amount. |
26 | | The bill shall specify the calculations used to determine the |
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1 | | amount due. If the employer disputes the amount of the bill, it |
2 | | may, within 30 days after receipt of the bill, apply to the |
3 | | System in writing for a recalculation. The application must |
4 | | specify in detail the grounds of the dispute and, if the |
5 | | employer asserts that the calculation is subject to subsection |
6 | | (h) or (i) of this Section, must include an affidavit setting |
7 | | forth and attesting to all facts within the employer's |
8 | | knowledge that are pertinent to the applicability of subsection |
9 | | (h) or (i). Upon receiving a timely application for |
10 | | recalculation, the System shall review the application and, if |
11 | | appropriate, recalculate the amount due.
|
12 | | The employer contributions required under this subsection |
13 | | (g) 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 | | When assessing payment for any amount due under this |
22 | | subsection (g), the System shall include earnings, to the |
23 | | extent not established by a participant under Section 15-113.11 |
24 | | or 15-113.12, that would have been paid to the participant had |
25 | | the participant not taken (i) periods of voluntary or |
26 | | involuntary furlough occurring on or after July 1, 2015 and on |
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1 | | or before June 30, 2017 or (ii) periods of voluntary pay |
2 | | reduction in lieu of furlough occurring on or after July 1, |
3 | | 2015 and on or before June 30, 2017. Determining earnings that |
4 | | would have been paid to a participant had the participant not |
5 | | taken periods of voluntary or involuntary furlough or periods |
6 | | of voluntary pay reduction shall be the responsibility of the |
7 | | employer, and shall be reported in a manner prescribed by the |
8 | | System. |
9 | | (h) This subsection (h) applies only to payments made or |
10 | | salary increases given on or after June 1, 2005 but before July |
11 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
12 | | require the System to refund any payments received before July |
13 | | 31, 2006 (the effective date of Public Act 94-1057). |
14 | | When assessing payment for any amount due under subsection |
15 | | (g), the System shall exclude earnings increases paid to |
16 | | participants under contracts or collective bargaining |
17 | | agreements entered into, amended, or renewed before June 1, |
18 | | 2005.
|
19 | | When assessing payment for any amount due under subsection |
20 | | (g), the System shall exclude earnings increases paid to a |
21 | | participant at a time when the participant is 10 or more years |
22 | | from retirement eligibility under Section 15-135.
|
23 | | When assessing payment for any amount due under subsection |
24 | | (g), the System shall exclude earnings increases resulting from |
25 | | overload work, including a contract for summer teaching, or |
26 | | overtime when the employer has certified to the System, and the |
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1 | | System has approved the certification, that: (i) in the case of |
2 | | overloads (A) the overload work is for the sole purpose of |
3 | | academic instruction in excess of the standard number of |
4 | | instruction hours for a full-time employee occurring during the |
5 | | academic year that the overload is paid and (B) the earnings |
6 | | increases are equal to or less than the rate of pay for |
7 | | academic instruction computed using the participant's current |
8 | | salary rate and work schedule; and (ii) in the case of |
9 | | overtime, the overtime was necessary for the educational |
10 | | mission. |
11 | | When assessing payment for any amount due under subsection |
12 | | (g), the System shall exclude any earnings increase resulting |
13 | | from (i) a promotion for which the employee moves from one |
14 | | classification to a higher classification under the State |
15 | | Universities Civil Service System, (ii) a promotion in academic |
16 | | rank for a tenured or tenure-track faculty position, or (iii) a |
17 | | promotion that the Illinois Community College Board has |
18 | | recommended in accordance with subsection (k) of this Section. |
19 | | These earnings increases shall be excluded only if the |
20 | | promotion is to a position that has existed and been filled by |
21 | | a member for no less than one complete academic year and the |
22 | | earnings increase as a result of the promotion is an increase |
23 | | that results in an amount no greater than the average salary |
24 | | paid for other similar positions. |
25 | | (i) When assessing payment for any amount due under |
26 | | subsection (g), the System shall exclude any salary increase |
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1 | | described in subsection (h) of this Section given on or after |
2 | | July 1, 2011 but before July 1, 2014 under a contract or |
3 | | collective bargaining agreement entered into, amended, or |
4 | | renewed on or after June 1, 2005 but before July 1, 2011. |
5 | | Notwithstanding any other provision of this Section, any |
6 | | payments made or salary increases given after June 30, 2014 |
7 | | shall be used in assessing payment for any amount due under |
8 | | subsection (g) of this Section.
|
9 | | (j) The System shall prepare a report and file copies of |
10 | | the report with the Governor and the General Assembly by |
11 | | January 1, 2007 that contains all of the following information: |
12 | | (1) The number of recalculations required by the |
13 | | changes made to this Section by Public Act 94-1057 for each |
14 | | employer. |
15 | | (2) The dollar amount by which each employer's |
16 | | contribution to the System was changed due to |
17 | | recalculations required by Public Act 94-1057. |
18 | | (3) The total amount the System received from each |
19 | | employer as a result of the changes made to this Section by |
20 | | Public Act 94-4. |
21 | | (4) The increase in the required State contribution |
22 | | resulting from the changes made to this Section by Public |
23 | | Act 94-1057. |
24 | | (k) The Illinois Community College Board shall adopt rules |
25 | | for recommending lists of promotional positions submitted to |
26 | | the Board by community colleges and for reviewing the |
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1 | | promotional lists on an annual basis. When recommending |
2 | | promotional lists, the Board shall consider the similarity of |
3 | | the positions submitted to those positions recognized for State |
4 | | universities by the State Universities Civil Service System. |
5 | | The Illinois Community College Board shall file a copy of its |
6 | | findings with the System. The System shall consider the |
7 | | findings of the Illinois Community College Board when making |
8 | | determinations under this Section. The System shall not exclude |
9 | | any earnings increases resulting from a promotion when the |
10 | | promotion was not submitted by a community college. Nothing in |
11 | | this subsection (k) shall require any community college to |
12 | | submit any information to the Community College Board.
|
13 | | (l) For purposes of determining the required State |
14 | | contribution to the System, the value of the System's assets |
15 | | shall be equal to the actuarial value of the System's assets, |
16 | | which shall be calculated as follows: |
17 | | As of June 30, 2008, the actuarial value of the System's |
18 | | assets shall be equal to the market value of the assets as of |
19 | | that date. In determining the actuarial value of the System's |
20 | | assets for fiscal years after June 30, 2008, any actuarial |
21 | | gains or losses from investment return incurred in a fiscal |
22 | | year shall be recognized in equal annual amounts over the |
23 | | 5-year period following that fiscal year. |
24 | | (m) For purposes of determining the required State |
25 | | contribution to the system for a particular year, the actuarial |
26 | | value of assets shall be assumed to earn a rate of return equal |
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1 | | to the system's actuarially assumed rate of return. |
2 | | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; |
3 | | 99-897, eff. 1-1-17 .)
|
4 | | (40 ILCS 5/15-155.2 new) |
5 | | Sec. 15-155.2. Individual employer accounts. |
6 | | (a) The System shall create and maintain an individual |
7 | | account for each employer for the purposes of determining |
8 | | employer contributions under subsection (a-2) of Section |
9 | | 15-155. Each employer's account shall be notionally charged |
10 | | with the liabilities attributable to that employer and credited |
11 | | with the assets attributable to that employer. |
12 | | (b) Beginning in fiscal year 2019, the System shall assign |
13 | | notional liabilities to each employer's account, equal to the |
14 | | amount of employer contributions required to be made by the |
15 | | employer pursuant to items (i) and (ii) of subsection (a-2) of |
16 | | Section 15-155, plus any unfunded actuarial accrued liability |
17 | | associated with the defined benefits attributable to the |
18 | | employer's employees who first became participants on or after |
19 | | July 1, 2018 and the employer's employees who made the election |
20 | | under subsection (c-5) of Section 1-161. |
21 | | (c) Beginning in fiscal year 2019, the System shall assign |
22 | | notional assets to each employer's account equal to the amounts |
23 | | of employer contributions made pursuant to items (i) and (ii) |
24 | | of subsection (a-2) of Section 15-155.
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1 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
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2 | | Sec. 15-157. Employee Contributions.
|
3 | | (a) Each participating employee
shall make contributions |
4 | | towards the retirement
benefits payable under the retirement |
5 | | program applicable to the
employee from each payment
of |
6 | | earnings applicable to employment under this system on and |
7 | | after the
date of becoming a participant as follows: Prior to |
8 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
9 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
10 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
11 | | are to be considered as normal contributions for purposes
of |
12 | | this Article.
|
13 | | Each participant who is a police officer or firefighter |
14 | | shall make normal
contributions of 8% of each payment of |
15 | | earnings applicable to employment as a
police officer or |
16 | | firefighter under this system on or after September 1, 1981,
|
17 | | unless he or she files with the board within 60 days after the |
18 | | effective date
of this amendatory Act of 1991 or 60 days after |
19 | | the board receives notice that
he or she is employed as a |
20 | | police officer or firefighter, whichever is later,
a written |
21 | | notice waiving the retirement formula provided by Rule 4 of |
22 | | Section
15-136. This waiver shall be irrevocable. If a |
23 | | participant had met the
conditions set forth in Section |
24 | | 15-132.1 prior to the effective date of this
amendatory Act of |
25 | | 1991 but failed to make the additional normal contributions
|
26 | | required by this paragraph, he or she may elect to pay the |
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1 | | additional
contributions plus compound interest at the |
2 | | effective rate. If such payment
is received by the board, the |
3 | | service shall be considered as police officer
service in |
4 | | calculating the retirement annuity under Rule 4 of Section |
5 | | 15-136.
While performing service described in clause (i) or |
6 | | (ii) of Rule 4 of Section
15-136, a participating employee |
7 | | shall be deemed to be employed as a
firefighter for the purpose |
8 | | of determining the rate of employee contributions
under this |
9 | | Section.
|
10 | | (b) Starting September 1, 1969, each participating |
11 | | employee shall make
additional contributions of 1/2 of 1% of |
12 | | earnings to finance a portion
of the cost of the annual |
13 | | increases in retirement annuity provided under
Section 15-136, |
14 | | except that with respect to participants in the
self-managed |
15 | | plan this additional contribution shall be used to finance the
|
16 | | benefits obtained under that retirement program. Beginning on |
17 | | the effective date of the Tier 1 employee's election under |
18 | | subsection (a) of Section 15-132.9, each Tier 1 employee who |
19 | | made the election under subsection (a) of Section 15-132.9 is |
20 | | no longer required to make contributions under this subsection.
|
21 | | (c) Except as provided in subsection (c-5), in In addition |
22 | | to the amounts described in subsections (a) and (b) of this
|
23 | | Section, each participating employee shall make contributions |
24 | | of 1% of earnings
applicable under this system on and after |
25 | | August 1, 1959. The contributions
made under this subsection |
26 | | (c) shall be considered as survivor's insurance
contributions |
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1 | | for purposes of this Article if the employee is covered under
|
2 | | the traditional benefit package, and such contributions shall |
3 | | be considered
as additional contributions for purposes of this |
4 | | Article if the employee is
participating in the self-managed |
5 | | plan or has elected to participate in the
portable benefit |
6 | | package and has completed the applicable one-year waiting
|
7 | | period. Contributions in excess of $80 during any fiscal year |
8 | | beginning before
August 31, 1969 and in excess of $120 during |
9 | | any fiscal year thereafter until
September 1, 1971 shall be |
10 | | considered as additional contributions for purposes
of this |
11 | | Article.
|
12 | | (c-5) As adequate and legal consideration provided under |
13 | | this amendatory Act of the 100th General Assembly for making an |
14 | | election under subsection (a) of Section 15-132.9, beginning on |
15 | | the effective date of the Tier 1 employee's election under |
16 | | subsection (a) of Section 15-132.9, in lieu of the |
17 | | contributions otherwise required under subsection (c), each |
18 | | Tier 1 employee who made the election under subsection (a) of |
19 | | Section 15-132.9 shall make contributions of 0.7% of earnings |
20 | | applicable under this System and each Tier 1 employee who is a |
21 | | police officer or firefighter who makes normal contributions of |
22 | | 8% of each payment of earnings applicable to employment as a |
23 | | police officer or firefighter under this System and who made |
24 | | the election under subsection (a) of Section 15-132.9 shall |
25 | | make contributions of 0.55% of earnings applicable under this |
26 | | System. The contributions made under this subsection (c-5) |
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1 | | shall be considered as survivor's insurance contributions for |
2 | | purposes of this Article and such contributions shall be |
3 | | considered as additional contributions for purposes of this |
4 | | Article if the employee has elected to participate in the |
5 | | portable benefit package and has completed the applicable |
6 | | one-year waiting period. |
7 | | (d) If the board by board rule so permits and subject to |
8 | | such conditions
and limitations as may be specified in its |
9 | | rules, a participant may make
other additional contributions of |
10 | | such percentage of earnings or amounts as
the participant shall |
11 | | elect in a written notice thereof received by the board.
|
12 | | (e) That fraction of a participant's total accumulated |
13 | | normal
contributions, the numerator of which is equal to the |
14 | | number of years of
service in excess of that which is required |
15 | | to qualify for the maximum
retirement annuity, and the |
16 | | denominator of which is equal to the total
service of the |
17 | | participant, shall be considered as accumulated additional
|
18 | | contributions. The determination of the applicable maximum |
19 | | annuity and
the adjustment in contributions required by this |
20 | | provision shall be made
as of the date of the participant's |
21 | | retirement.
|
22 | | (f) Notwithstanding the foregoing, a participating |
23 | | employee shall not
be required to make contributions under this |
24 | | Section after the date upon
which continuance of such |
25 | | contributions would otherwise cause his or her
retirement |
26 | | annuity to exceed the maximum retirement annuity as specified |
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1 | | in
clause (1) of subsection (c) of Section 15-136.
|
2 | | (g) A participant may make contributions for the purchase |
3 | | of
service credit under this Article; however, only a |
4 | | participating employee may make optional contributions under |
5 | | subsection (b) of Section 15-157.1 of this Article.
|
6 | | (h) A Tier 2 member shall not make contributions on |
7 | | earnings that exceed the limitation as prescribed under |
8 | | subsection (b) of Section 15-111 of this Article. |
9 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
|
10 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
11 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
12 | | which has been held unconstitutional)
|
13 | | Sec. 15-165. To certify amounts and submit vouchers.
|
14 | | (a) The Board shall certify to the Governor on or before |
15 | | November 15 of each
year until November 15, 2011 the |
16 | | appropriation required from State funds for the purposes of |
17 | | this
System for the following fiscal year. The certification |
18 | | under this subsection (a) shall include a copy
of the actuarial |
19 | | recommendations upon which it is based and shall specifically |
20 | | identify the System's projected State normal cost for that |
21 | | fiscal year and the projected State cost for the self-managed |
22 | | plan for that fiscal year.
|
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 |
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1 | | into account the amounts appropriated to and
received by the |
2 | | System under subsection (d) of Section 7.2 of the General
|
3 | | Obligation Bond Act.
|
4 | | On or before July 1, 2005, the Board shall recalculate and |
5 | | recertify
to the Governor the amount of the required State
|
6 | | contribution to the System for State fiscal year 2006, taking |
7 | | into account the changes in required State contributions made |
8 | | by this amendatory Act of the 94th General Assembly.
|
9 | | On or before April 1, 2011, 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 2011, applying |
12 | | the changes made by Public Act 96-889 to the System's assets |
13 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
14 | | was approved on that date. |
15 | | (a-5) On or before November 1 of each year, beginning |
16 | | November 1, 2012, the Board shall submit to the State Actuary, |
17 | | the Governor, and the General Assembly a proposed certification |
18 | | of the amount of the required State contribution to the System |
19 | | for the next fiscal year, along with all of the actuarial |
20 | | assumptions, calculations, and data upon which that proposed |
21 | | certification is based. On or before January 1 of each year, |
22 | | beginning January 1, 2013, the State Actuary shall issue a |
23 | | preliminary report concerning the proposed certification and |
24 | | identifying, if necessary, recommended changes in actuarial |
25 | | assumptions that the Board must consider before finalizing its |
26 | | certification of the required State contributions. On or before |
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1 | | January 15, 2013 and each 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, in a written |
5 | | response to the State Actuary, any deviations from the State |
6 | | Actuary's recommended changes, the reason or reasons for not |
7 | | following the State Actuary's recommended changes, and the |
8 | | fiscal impact of not following the State Actuary's recommended |
9 | | changes on the required State contribution. |
10 | | If necessary the Board shall recalculate and recertify to |
11 | | the Governor the amount of the required State contribution to |
12 | | the System for State fiscal year 2019, taking into |
13 | | consideration the changes made by this amendatory Act of the |
14 | | 100th General Assembly. |
15 | | (b) The Board shall certify to the State Comptroller or |
16 | | employer, as the
case may be, from time to time, by its |
17 | | chairperson and secretary, with its seal
attached, the amounts |
18 | | payable to the System from the various funds.
|
19 | | (c) Beginning in State fiscal year 1996, on or as soon as |
20 | | possible after the
15th day of each month the Board shall |
21 | | submit vouchers for payment of State
contributions to the |
22 | | System, in a total monthly amount of one-twelfth of the
|
23 | | required annual State contribution certified under subsection |
24 | | (a).
From the effective date of this amendatory Act
of the 93rd |
25 | | General Assembly through June 30, 2004, the Board shall not
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26 | | submit vouchers for the remainder of fiscal year 2004 in excess |
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1 | | of the
fiscal year 2004 certified contribution amount |
2 | | determined
under this Section after taking into consideration |
3 | | the transfer to the
System under subsection (b) of Section |
4 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
5 | | the State Comptroller and Treasurer by warrants drawn
on the |
6 | | funds appropriated to the System for that fiscal year.
|
7 | | If in any month the amount remaining unexpended from all |
8 | | other
appropriations to the System for the applicable fiscal |
9 | | year (including the
appropriations to the System under Section |
10 | | 8.12 of the State Finance Act and
Section 1 of the State |
11 | | Pension Funds Continuing Appropriation Act) is less than
the |
12 | | amount lawfully vouchered under this Section, the difference |
13 | | shall be paid
from the General Revenue Fund under the |
14 | | continuing appropriation authority
provided in Section 1.1 of |
15 | | the State Pension Funds Continuing Appropriation
Act.
|
16 | | (d) So long as the payments received are the full amount |
17 | | lawfully
vouchered under this Section, payments received by the |
18 | | System under this
Section shall be applied first toward the |
19 | | employer contribution to the
self-managed plan established |
20 | | under Section 15-158.2. Payments shall be
applied second toward |
21 | | the employer's portion of the normal costs of the System,
as |
22 | | defined in subsection (f) of Section 15-155. The balance shall |
23 | | be applied
toward the unfunded actuarial liabilities of the |
24 | | System.
|
25 | | (e) In the event that the System does not receive, as a |
26 | | result of
legislative enactment or otherwise, payments |
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1 | | sufficient to
fully fund the employer contribution to the |
2 | | self-managed plan
established under Section 15-158.2 and to |
3 | | fully fund that portion of the
employer's portion of the normal |
4 | | costs of the System, as calculated in
accordance with Section |
5 | | 15-155(a-1), then any payments received shall be
applied |
6 | | proportionately to the optional retirement program established |
7 | | under
Section 15-158.2 and to the employer's portion of the |
8 | | normal costs of the
System, as calculated in accordance with |
9 | | Section 15-155(a-1).
|
10 | | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
|
11 | | (40 ILCS 5/15-185.5 new) |
12 | | Sec. 15-185.5. Accelerated pension benefit payment. |
13 | | (a) As used in this Section: |
14 | | "Eligible participant" means a participant who: |
15 | | (1) is no longer a participating employee; |
16 | | (2) has accrued sufficient service credit to be |
17 | | eligible to receive a retirement annuity under this |
18 | | Article; |
19 | | (3) has not received any retirement annuity under this |
20 | | Article; |
21 | | (4) is not a party to a pending divorce proceeding and |
22 | | does not have a QILDRO in effect against him or her under |
23 | | this Article; and |
24 | | (5) is not a participant in the self-managed plan under |
25 | | Section 15-158.2. |
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1 | | "Pension benefit" means the benefits under this Article, or |
2 | | Article 1 as it relates to those benefits, including any |
3 | | anticipated annual increases, that an eligible participant is |
4 | | entitled to upon attainment of the applicable retirement age. |
5 | | "Pension benefit" also includes applicable survivor's or |
6 | | disability benefits. |
7 | | (b) If approved by resolution of the Board in any year, the |
8 | | System shall calculate, using actuarial tables and other |
9 | | assumptions adopted by the Board, the net present value of |
10 | | pension benefits for each eligible person and shall offer each |
11 | | eligible person the opportunity to irrevocably elect to receive |
12 | | an amount determined by the System to be equal to 70% of the |
13 | | net present value of his or her pension benefits in lieu of |
14 | | receiving any pension benefit. The offer shall specify the |
15 | | dollar amount that the eligible person will receive if he or |
16 | | she so elects and shall expire when a subsequent offer is made |
17 | | to an eligible person. The System shall make a good faith |
18 | | effort to contact every eligible person to notify him or her of |
19 | | the election and of the amount of the accelerated pension |
20 | | benefit payment. |
21 | | During a period of 3 months determined by the Board, an |
22 | | eligible person may irrevocably elect to receive an accelerated |
23 | | pension benefit payment in the amount that the System offers |
24 | | under this subsection in lieu of receiving any pension benefit. |
25 | | A person who elects to receive an accelerated pension benefit |
26 | | payment under this Section may not elect to proceed under the |
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1 | | Retirement Systems Reciprocal Act with respect to service under |
2 | | this Article. The accelerated pension benefit payment shall be |
3 | | paid by the System. |
4 | | (c) Upon acceptance of an accelerated pension benefit |
5 | | payment under this Section, the participant forfeits all |
6 | | accrued rights and credits in the System and no other benefit |
7 | | shall be paid under this Article based on those terminated |
8 | | credits and creditable service, including any retirement, |
9 | | survivor, or other benefit; except that to the extent that |
10 | | participation, benefits, or premiums under the State Employees |
11 | | Group Insurance Act of 1971 are based on the amount of service |
12 | | credit, the terminated service credit shall be used for that |
13 | | purpose. |
14 | | (d) If a person who has received an accelerated pension |
15 | | benefit payment under this Section returns to active service |
16 | | under this Article, then: |
17 | | (1) Any benefits under the System earned as a result of |
18 | | that return to active service shall be based solely on the |
19 | | person's credits and creditable service arising from the |
20 | | return to active service. |
21 | | (2) The accelerated pension benefit payment may not be |
22 | | repaid to the System, and the terminated credits and |
23 | | creditable service may not under any circumstances be |
24 | | reinstated. |
25 | | (e) As a condition of receiving an accelerated pension |
26 | | benefit payment, an eligible participant must have another |
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1 | | retirement plan or account qualified under the Internal Revenue |
2 | | Code of 1986, as amended, for the accelerated pension benefit |
3 | | payment to be rolled into. The accelerated pension benefit |
4 | | payment under this Section may be subject to withholding or |
5 | | payment of applicable taxes, but to the extent permitted by |
6 | | federal law, a person who accepts an accelerated pension |
7 | | benefit payment under this Section must direct the System to |
8 | | pay all of that payment as a rollover into another retirement |
9 | | plan or account qualified under the Internal Revenue Code of |
10 | | 1986, as amended. |
11 | | (f) The Board shall adopt any rules necessary to implement |
12 | | this Section. |
13 | | (g) No provision of this Section shall be interpreted in a |
14 | | way that would cause the applicable System to cease to be a |
15 | | qualified plan under the Internal Revenue Code of 1986. |
16 | | (40 ILCS 5/15-198) |
17 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
18 | | which has been held unconstitutional)
|
19 | | Sec. 15-198. 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 the effective date of this |
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1 | | amendatory Act of the 94th General Assembly. "New benefit |
2 | | increase", however, does not include any benefit increase |
3 | | resulting from the changes made to this Article by this |
4 | | amendatory Act of the 100th General Assembly. |
5 | | (b) Notwithstanding any other provision of this Code or any |
6 | | subsequent amendment to this Code, every new benefit increase |
7 | | is subject to this Section and shall be deemed to be granted |
8 | | only in conformance with and contingent upon compliance with |
9 | | the provisions of this Section.
|
10 | | (c) The Public Act enacting a new benefit increase must |
11 | | identify and provide for payment to the System of additional |
12 | | funding at least sufficient to fund the resulting annual |
13 | | increase in cost to the System as it accrues. |
14 | | Every new benefit increase is contingent upon the General |
15 | | Assembly providing the additional funding required under this |
16 | | subsection. The Commission on Government Forecasting and |
17 | | Accountability shall analyze whether adequate additional |
18 | | funding has been provided for the new benefit increase and |
19 | | shall report its analysis to the Public Pension Division of the |
20 | | Department of Insurance Financial and Professional Regulation . |
21 | | A new benefit increase created by a Public Act that does not |
22 | | include the additional funding required under this subsection |
23 | | is null and void. If the Public Pension Division determines |
24 | | that the additional funding provided for a new benefit increase |
25 | | under this subsection is or has become inadequate, it may so |
26 | | certify to the Governor and the State Comptroller and, in the |
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1 | | absence of corrective action by the General Assembly, the new |
2 | | benefit increase shall expire at the end of the fiscal year in |
3 | | which the certification is made.
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4 | | (d) Every new benefit increase shall expire 5 years after |
5 | | its effective date or on such earlier date as may be specified |
6 | | in the language enacting the new benefit increase or provided |
7 | | under subsection (c). This does not prevent the General |
8 | | Assembly from extending or re-creating a new benefit increase |
9 | | by law. |
10 | | (e) Except as otherwise provided in the language creating |
11 | | the new benefit increase, a new benefit increase that expires |
12 | | under this Section continues to apply to persons who applied |
13 | | and qualified for the affected benefit while the new benefit |
14 | | increase was in effect and to the affected beneficiaries and |
15 | | alternate payees of such persons, but does not apply to any |
16 | | other person, including without limitation a person who |
17 | | continues in service after the expiration date and did not |
18 | | apply and qualify for the affected benefit while the new |
19 | | benefit increase was in effect.
|
20 | | (Source: P.A. 94-4, eff. 6-1-05.) |
21 | | (40 ILCS 5/15-200.1 new) |
22 | | Sec. 15-200.1. Defined contribution plan. |
23 | | (a) By July 1, 2018, the System shall prepare and implement |
24 | | a voluntary defined contribution plan for up to 5% of eligible |
25 | | Tier 1 employees. The System shall determine the 5% cap by the |
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1 | | number of Tier 1 employees on the effective date of this |
2 | | Section. The defined contribution plan developed under this |
3 | | Section shall be a plan that aggregates employer and employee |
4 | | contributions in individual participant accounts which, after |
5 | | meeting any other requirements, are used for payouts after |
6 | | retirement in accordance with this Section and any other |
7 | | applicable laws. |
8 | | As used in this Section, "defined benefit plan" means the |
9 | | retirement plan available under this Article to Tier 1 |
10 | | employees who have not made the election authorized under this |
11 | | Section. |
12 | | (1) Under the defined contribution plan, a
Tier 1 |
13 | | employee of this System could elect to cease accruing |
14 | | benefits in the defined benefit plan under this Article and |
15 | | begin accruing benefits for future service in the defined |
16 | | contribution plan. Service credit under the defined |
17 | | contribution plan may be used for determining retirement |
18 | | eligibility under the defined benefit plan. A Tier 1 |
19 | | employee who elects to cease accruing benefits in his or |
20 | | her defined benefit plan shall be prohibited from |
21 | | purchasing service credit on or after the date of his or |
22 | | her election. A Tier 1 employee making the irrevocable |
23 | | election provided under this Section shall not receive |
24 | | interest accruals to his or her Rule 2 benefit on or after |
25 | | the date of his or her election. |
26 | | (2) Participants in the defined contribution plan
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1 | | shall pay employee contributions at the same rate as other |
2 | | participants under this Article as determined by the |
3 | | System. |
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 earnings 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 earnings, and shall |
11 | | be no lower than 3% of earnings. The State shall adjust |
12 | | 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 the defined |
20 | | disability benefits available to other participants under |
21 | | this Article. If it does, the System shall reduce the |
22 | | employee contributions credited to the member's defined |
23 | | contribution plan account by an amount determined by the |
24 | | System to cover the cost of offering such benefits. |
25 | | (6) The defined contribution plan shall provide a
|
26 | | variety of options for investments. These options shall |
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1 | | include investments handled by the System as well as |
2 | | private sector investment options. |
3 | | (7) The defined contribution plan shall provide a
|
4 | | variety of options for payouts to retirees and their |
5 | | survivors. |
6 | | (8) To the extent authorized under federal law and
as |
7 | | authorized by the System, the plan shall allow former |
8 | | participants in the plan to transfer or roll over employee |
9 | | and vested State contributions, and the earnings thereon, |
10 | | into other qualified retirement plans. |
11 | | (9) The System shall reduce the employee
contributions |
12 | | credited to the member's defined contribution plan account |
13 | | by an amount determined by the System to cover the cost of |
14 | | offering these benefits and any applicable administrative |
15 | | fees. |
16 | | (b) Only persons who are Tier 1 employees of the System on |
17 | | the effective date of this Section are eligible to participate |
18 | | in the defined contribution plan. Participation in the defined |
19 | | contribution plan shall be limited to the first 5% of eligible |
20 | | persons who elect to participate. The election to participate |
21 | | in the defined contribution plan is voluntary and irrevocable. |
22 | | (c) An eligible Tier 1 employee may irrevocably elect to |
23 | | participate in the defined contribution plan by filing with the |
24 | | System a written application to participate that is received by |
25 | | the System prior to its determination that 5% of eligible |
26 | | persons have elected to participate in the defined contribution |
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1 | | 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 Tier 1 employee who is eligible to participate in the |
9 | | defined contribution plan. Such correspondence shall describe |
10 | | the option to join the defined contribution plan to each of |
11 | | these employees. If the employee is not responsive to other |
12 | | means of contact, it is sufficient for the System to publish |
13 | | the details of the option on its website. |
14 | | Upon request for further information describing the |
15 | | option, the System shall provide employees with information |
16 | | from the System before exercising the option to join the plan, |
17 | | including information on the impact to their vested benefits or |
18 | | non-vested service. The individual consultation shall include |
19 | | projections of the member's defined benefits at retirement or |
20 | | earlier termination of service and the value of the member's |
21 | | account at retirement or earlier termination of service. The |
22 | | System shall not provide advice or counseling with respect to |
23 | | whether the employee should exercise the option. The System |
24 | | shall inform Tier 1 employees who are eligible to participate |
25 | | in the defined contribution plan that they may also wish to |
26 | | obtain information and counsel relating to their option from |
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1 | | any other available source, including, but not limited to, |
2 | | labor organizations, private counsel, and financial advisors. |
3 | | (e) In no event shall the System, its staff, its authorized |
4 | | representatives, or the Board be liable for any information |
5 | | given to an employee under this Section. The System may |
6 | | coordinate with other retirement systems administering a |
7 | | defined contribution plan in accordance with this amendatory |
8 | | Act of the 100th General Assembly to provide information |
9 | | concerning the impact of the option set forth in this Section. |
10 | | (f) Notwithstanding any other provision of this Section, no |
11 | | person shall begin participating in the defined contribution |
12 | | plan until it has attained qualified plan status and received |
13 | | all necessary approvals from the U.S. Internal Revenue Service. |
14 | | (g) The System shall report on its progress under this |
15 | | Section, including the available details of the defined |
16 | | contribution plan and the System's plans for informing eligible |
17 | | Tier 1 employees about the plan, to the Governor and the |
18 | | General Assembly. |
19 | | (h) If a Tier 1 employee has not made an election under |
20 | | Section 15-134.5 of this Code, then the plan prescribed under |
21 | | this Section shall not apply to that Tier 1 employee and that |
22 | | Tier 1 employee shall remain eligible to make the election |
23 | | prescribed under Section 15-134.5. |
24 | | (i) The intent of this amendatory Act of the 100th General |
25 | | Assembly is to ensure that the State's normal cost of |
26 | | participation in the defined contribution plan is similar, and |
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1 | | if possible equal, to the State's normal cost of participation |
2 | | in the defined benefit plan, unless a lower State's normal cost |
3 | | is necessary to ensure cost neutrality. |
4 | | (40 ILCS 5/15-201.1 new) |
5 | | Sec. 15-201.1. Defined contribution plan; termination. If |
6 | | the defined contribution plan is terminated or becomes |
7 | | inoperative pursuant to law, then each participant in the plan |
8 | | shall automatically be deemed to have been a contributing Tier |
9 | | 1 employee participating in the System's defined benefit plan |
10 | | during the time in which he or she participated in the defined |
11 | | contribution plan, and for that purpose the System shall be |
12 | | entitled to recover the amounts in the participant's defined |
13 | | contribution accounts. |
14 | | (40 ILCS 5/16-107.1 new) |
15 | | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A |
16 | | teacher under this Article who first became a member or |
17 | | participant before January 1, 2011 under any reciprocal |
18 | | retirement system or pension fund established under this Code |
19 | | other than a retirement system or pension fund established |
20 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for |
21 | | the purposes of the election under Section 16-122.9, "Tier 1 |
22 | | employee" does not include a teacher under this Article who |
23 | | would qualify as a Tier 1 employee but who has made an |
24 | | irrevocable election on or before June 1, 2017 to retire from |
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1 | | service pursuant to the terms of an employment contract or a |
2 | | collective bargaining agreement in effect on June 1, 2017, |
3 | | excluding any extension, amendment, or renewal of that |
4 | | agreement after that date, and has notified the System of that |
5 | | election.
|
6 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
|
7 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
8 | | which has been held unconstitutional)
|
9 | | Sec. 16-121. Salary. "Salary": The actual compensation |
10 | | received by a teacher during any
school year and recognized by |
11 | | the system in accordance with
rules of the board. For purposes |
12 | | of this Section, "school year" includes
the regular school term |
13 | | plus any additional period for which a teacher is
compensated |
14 | | and such compensation is recognized by the rules of the board.
|
15 | | Notwithstanding any other provision of this Section, |
16 | | "salary" does not include any consideration payment made to a |
17 | | Tier 1 employee. |
18 | | (Source: P.A. 84-1028.)
|
19 | | (40 ILCS 5/16-122.9 new) |
20 | | Sec. 16-122.9. Election by Tier 1 employees. |
21 | | (a) If approved by resolution of the Board, an active Tier |
22 | | 1 employee may make an irrevocable election to agree to delay |
23 | | his or her eligibility for automatic annual increases in |
24 | | retirement annuity as provided in subsection (a-1) of Section |
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1 | | 16-133.1 or
subsection (b-1) of Section 16-136.1, whichever is
|
2 | | applicable, and to have the amount of the automatic annual
|
3 | | increases in his or her retirement annuity and survivor
benefit |
4 | | that are otherwise provided for in this Article
calculated, |
5 | | instead, as provided in subsection (a-1) of
Section 16-133.1 or |
6 | | subsection (b-1) of Section 16-136.1,
whichever is applicable. |
7 | | (b) As adequate and legal consideration provided under this |
8 | | amendatory Act of the 100th General Assembly for making an |
9 | | election under subsection (a) of this Section, each Tier 1 |
10 | | employee who has made an election under subsection (a) of this |
11 | | Section shall receive a consideration payment equal to 10% of |
12 | | the contributions made by or on behalf of the employee under |
13 | | paragraphs (1), (2), and (3) of subsection (a) of Section |
14 | | 16-152 before the effective date of that election. The System |
15 | | shall pay the amount of the consideration payment. |
16 | | (c) A Tier 1 employee who does not make the election under |
17 | | subsection (a) of this Section shall not be subject to the |
18 | | benefits of subsection (b) of this Section. |
19 | | (d) The System shall make a good faith effort to contact |
20 | | each Tier 1 employee subject to this Section. Such |
21 | | correspondence shall describe the election to each Tier 1 |
22 | | employee. If the Tier 1 employee is not responsive, it is |
23 | | sufficient for the System to publish the details of any |
24 | | elections on its website or to publish those details in a |
25 | | regularly published newsletter or other existing public forum. |
26 | | Tier 1 employees who are subject to this Section shall be |
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1 | | provided with an election packet containing information |
2 | | regarding their options, as well as the forms necessary to make |
3 | | the election. Upon request, the System shall offer Tier 1 |
4 | | employees an opportunity to receive information from the System |
5 | | before making the election. The information may be provided |
6 | | through video materials, group presentations, individual |
7 | | consultation with a member or authorized representative of the |
8 | | System in person or by telephone or other electronic means, or |
9 | | any combination of those methods. The System shall not provide |
10 | | advice or counseling with respect to the legal or tax |
11 | | circumstances of or consequences of making the election in |
12 | | subsection (a) of this Section. |
13 | | The System shall inform Tier 1 employees in the election |
14 | | packet required under this subsection that the Tier 1 employee |
15 | | may also wish to obtain information and counsel relating to the |
16 | | election under this Section from any other available source, |
17 | | including, but not limited to, labor organizations and private |
18 | | counsel. |
19 | | In no event shall the System, its staff, or the Board be |
20 | | held liable for any information given to a member regarding the |
21 | | election under this Section. The System shall coordinate with |
22 | | other retirement systems 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 | | (d-5) To the extent authorized under federal law and as |
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1 | | authorized by the retirement system, a Tier 1 employee may |
2 | | transfer or roll over the consideration payment into other |
3 | | qualified retirement plans. |
4 | | (e) A member's election under this Section is not a |
5 | | prohibited election under subdivision (j)(1) of Section 1-119 |
6 | | of this Code. |
7 | | (f) No provision of this Section shall be interpreted in a |
8 | | way that would cause the System to cease to be a qualified plan |
9 | | under Section 401(a) of the Internal Revenue Code of 1986.
|
10 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
|
11 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
12 | | which has been held unconstitutional)
|
13 | | Sec. 16-133.1. Automatic annual increase in annuity.
|
14 | | (a) Each member with creditable service and retiring on or |
15 | | after August 26,
1969 is entitled to the automatic annual |
16 | | increases in annuity provided under
this Section while |
17 | | receiving a retirement annuity or disability retirement
|
18 | | annuity from the system.
|
19 | | Except as otherwise provided in subsection (a-1), an An |
20 | | annuitant shall first be entitled to an initial increase under |
21 | | this
Section on the January 1 next following the first |
22 | | anniversary of retirement,
or January 1 of the year next |
23 | | following attainment of age 61, whichever is
later. At such |
24 | | time, the system shall pay an initial increase determined as
|
25 | | follows:
|
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1 | | (1) 1.5% of the originally granted retirement annuity |
2 | | or disability
retirement annuity multiplied by the number |
3 | | of years elapsed, if any, from the date of retirement
until |
4 | | January 1, 1972, plus
|
5 | | (2) 2% of the originally granted annuity multiplied by |
6 | | the number of
years elapsed, if any, from the date of |
7 | | retirement or January
1, 1972, whichever is later, until |
8 | | January 1, 1978, plus
|
9 | | (3) 3% of the originally granted annuity multiplied by |
10 | | the number
of years elapsed from the date of retirement or |
11 | | January 1,
1978, whichever is later, until the effective |
12 | | date of the initial
increase.
|
13 | | However, the initial annual increase calculated under this |
14 | | Section for the
recipient of a disability retirement annuity |
15 | | granted under Section 16-149.2
shall be reduced by an amount |
16 | | equal to the total of all increases in that
annuity received |
17 | | under Section 16-149.5 (but not exceeding 100% of the amount
of |
18 | | the initial increase otherwise provided under this Section).
|
19 | | Except as otherwise provided in subsection (a-1), |
20 | | following Following the initial increase, automatic annual |
21 | | increases in annuity shall
be payable on each January 1 |
22 | | thereafter during the lifetime of the annuitant,
determined as |
23 | | a percentage of the originally granted retirement annuity
or |
24 | | disability retirement annuity for increases granted prior to |
25 | | January
1, 1990, and calculated as a percentage of the total |
26 | | amount of annuity,
including previous increases under this |
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1 | | Section, for increases granted on
or after January 1, 1990, as |
2 | | follows: 1.5% for periods prior to January 1,
1972, 2% for |
3 | | periods after December 31, 1971 and prior to January 1, 1978,
|
4 | | and 3% for periods after December 31, 1977.
|
5 | | (a-1) Notwithstanding any other provision of this Article, |
6 | | for a Tier 1 employee who made the election under subsection |
7 | | (a) of Section 16-122.9: |
8 | | (1) The initial increase in retirement annuity under |
9 | | this Section shall occur on the January 1 occurring either |
10 | | on or after the attainment of age 67 or the fifth |
11 | | anniversary of the annuity start date, whichever is |
12 | | earlier. |
13 | | (2) The amount of each automatic annual increase in |
14 | | retirement annuity and survivor benefit occurring on or |
15 | | after the effective date of that election shall be |
16 | | calculated as a percentage of the originally granted |
17 | | retirement annuity or survivor benefit, equal to 3% or |
18 | | one-half the annual unadjusted percentage increase (but |
19 | | not less than zero) in the consumer price index-u for the |
20 | | 12 months ending with the September preceding each November |
21 | | 1, whichever is less. If the annual unadjusted percentage |
22 | | change in the consumer price index-u for the 12 months |
23 | | ending with the September preceding each November 1 is zero |
24 | | or there is a decrease, then the annuity shall not be |
25 | | increased. |
26 | | For the purposes of this Section, "consumer price index-u" |
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1 | | means
the index published by the Bureau of Labor Statistics of |
2 | | the United States
Department of Labor that measures the average |
3 | | change in prices of goods and
services purchased by all urban |
4 | | consumers, United States city average, all
items, 1982-84 = |
5 | | 100. The new amount resulting from each annual adjustment
shall |
6 | | be determined by the Public Pension Division of the Department |
7 | | of Insurance and made available to the board of the retirement |
8 | | system by November 1 of each year. |
9 | | (b) The automatic annual increases in annuity provided |
10 | | under this Section
shall not be applicable unless a member has |
11 | | made contributions toward such
increases for a period |
12 | | equivalent to one full year of creditable service.
If a member |
13 | | contributes for service performed after August 26, 1969 but
the |
14 | | member becomes an annuitant before such contributions amount to |
15 | | one
full year's contributions based on the salary at the date |
16 | | of retirement,
he or she may pay the necessary balance of the |
17 | | contributions to the system
and be eligible for the automatic |
18 | | annual increases in annuity provided under
this Section.
|
19 | | (c) Each member shall make contributions toward the cost of |
20 | | the automatic
annual increases in annuity as provided under |
21 | | Section 16-152.
|
22 | | (d) An annuitant receiving a retirement annuity or |
23 | | disability retirement
annuity on July 1, 1969, who subsequently |
24 | | re-enters service as a teacher
is eligible for the automatic |
25 | | annual increases in annuity provided under
this Section if he |
26 | | or she renders at least one year of creditable service
|
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1 | | following the latest re-entry.
|
2 | | (e) In addition to the automatic annual increases in |
3 | | annuity provided
under this Section, an annuitant who meets the |
4 | | service requirements of this
Section and whose retirement |
5 | | annuity or disability retirement annuity began
on or before |
6 | | January 1, 1971 shall receive, on January 1, 1981, an increase
|
7 | | in the annuity then being paid of one dollar per month for each |
8 | | year of
creditable service. On January 1, 1982, an annuitant |
9 | | whose retirement
annuity or disability retirement annuity |
10 | | began on or before January 1, 1977
shall receive an increase in |
11 | | the annuity then being paid of one dollar per
month for each |
12 | | year of creditable service.
|
13 | | On January 1, 1987, any annuitant whose retirement annuity |
14 | | began
on or before January 1, 1977, shall receive an increase |
15 | | in the monthly
retirement annuity equal to 8¢ per year of |
16 | | creditable service times the
number of years that have elapsed |
17 | | since the annuity began.
|
18 | | (Source: P.A. 91-927, eff. 12-14-00.)
|
19 | | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
|
20 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
21 | | which has been held unconstitutional)
|
22 | | Sec. 16-136.1. Annual increase for certain annuitants. |
23 | | (a) Any annuitant receiving a retirement annuity on June |
24 | | 30, 1969 and
any member retiring after June 30, 1969 shall be |
25 | | eligible for the annual
increases provided under this Section |
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1 | | provided the annuitant is ineligible
for the automatic annual |
2 | | increase in annuity provided under Section
16-133.1, and |
3 | | provided further that (1) retirement occurred at age 55 or over
|
4 | | and was based on 5 or more years of creditable service or (2) |
5 | | if
retirement occurred prior to age 55, the retirement annuity
|
6 | | was based on 20 or more years of creditable service.
|
7 | | (b) Except as otherwise provided in subsection (b-1), an An |
8 | | annuitant entitled to increases under this Section shall be |
9 | | entitled
to the initial increase as of the later of: (1) |
10 | | January 1 following
attainment of age 65, (2) January 1 |
11 | | following the first anniversary
of retirement, or (3) the first |
12 | | day of the month following receipt of
the required qualifying |
13 | | contribution from the annuitant. The initial monthly
increase |
14 | | shall be computed on the basis of the period elapsed between
|
15 | | the later of the date of last retirement or attainment of age |
16 | | 50 and the
date of qualification for the initial increase, at |
17 | | the rate of 1 1/2% of
the original monthly retirement annuity |
18 | | per year for periods
prior to September 1, 1971, and at the |
19 | | rate of 2% per year for periods between
September 1, 1971 and |
20 | | September 1, 1978, and at the rate of 3% per year
for periods |
21 | | thereafter.
|
22 | | Except as otherwise provided in subsection (b-1), if |
23 | | applicable, an An annuitant who has received an initial |
24 | | increase under this Section ,
shall be entitled, on each January |
25 | | 1 following the granting of the
initial increase, to an |
26 | | increase of 3% of the original monthly retirement
annuity for |
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1 | | increases granted prior to January 1, 1990, and equal to 3%
of |
2 | | the total annuity, including previous increases under this |
3 | | Section, for
increases granted on or after January 1, 1990. The |
4 | | original monthly
retirement annuity for computations under |
5 | | this subsection
(b) shall be considered to be $83.34 for any |
6 | | annuitant entitled to benefits
under Section 16-134. The |
7 | | minimum original disability retirement annuity
for |
8 | | computations under this subsection (b) shall be considered to |
9 | | be
$33.34 per month for any annuitant retired on account of |
10 | | disability.
|
11 | | (b-1) Notwithstanding any other provision of this Article, |
12 | | for a Tier 1 employee who made the election under subsection |
13 | | (a) of Section 16-122.9: |
14 | | (1) The initial increase in retirement annuity under |
15 | | this Section shall occur on the January 1 occurring either |
16 | | on or after the attainment of age 67 or the fifth |
17 | | anniversary of the annuity start date, whichever is |
18 | | earlier. |
19 | | (2) The amount of each automatic annual increase in |
20 | | retirement annuity or survivor benefit occurring on or |
21 | | after the effective date of that election shall be |
22 | | calculated as a percentage of the originally granted |
23 | | retirement annuity or survivor benefit, equal to 3% or |
24 | | one-half the annual unadjusted percentage increase (but |
25 | | not less than zero) in the consumer price index-u for the |
26 | | 12 months ending with the September preceding each November |
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1 | | 1, whichever is less. If the annual unadjusted percentage |
2 | | change in the consumer price index-u for the 12 months |
3 | | ending with the September preceding each November 1 is zero |
4 | | or there is a decrease, then the annuity shall not be |
5 | | increased. |
6 | | For the purposes of this Section, "consumer price index-u" |
7 | | means
the index published by the Bureau of Labor Statistics of |
8 | | the United States
Department of Labor that measures the average |
9 | | change in prices of goods and
services purchased by all urban |
10 | | consumers, United States city average, all
items, 1982-84 = |
11 | | 100. The new amount resulting from each annual adjustment
shall |
12 | | be determined by the Public Pension Division of the Department |
13 | | of Insurance and made available to the board of the retirement |
14 | | system by November 1 of each year. |
15 | | (c) An annuitant who otherwise qualifies for annual
|
16 | | increases under this Section must make a one-time payment of
1% |
17 | | of the monthly final average salary for each full year of the |
18 | | creditable
service forming the basis of the retirement annuity |
19 | | or, if the
retirement annuity was not computed using final |
20 | | average salary, 1% of the
original monthly retirement annuity |
21 | | for each full year of service
forming the basis of the |
22 | | retirement annuity.
|
23 | | (d) In addition to other increases which may be provided by |
24 | | this Section,
regardless of creditable service, annuitants not |
25 | | meeting
the service requirements of Section 16-133.1 and whose |
26 | | retirement annuity
began on or before January 1, 1971 shall |
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1 | | receive, on January
1, 1981, an increase in the retirement |
2 | | annuity then being paid
of one dollar per month for each year |
3 | | of creditable service forming
the basis of the retirement |
4 | | allowance. On January 1, 1982, annuitants
whose retirement |
5 | | annuity began on or before January 1, 1977, shall receive
an |
6 | | increase in the retirement annuity then being paid of one |
7 | | dollar per
month for each year of creditable service.
|
8 | | On January 1, 1987, any annuitant whose retirement annuity |
9 | | began
on or before January 1, 1977, shall receive an increase |
10 | | in the monthly
retirement annuity equal to 8¢ per year of |
11 | | creditable service times the
number of years that have elapsed |
12 | | since the annuity began.
|
13 | | (Source: P.A. 86-273.)
|
14 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
|
15 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
16 | | which has been held unconstitutional)
|
17 | | Sec. 16-152. Contributions by members.
|
18 | | (a) Except as otherwise provided in subsection (a-5), each |
19 | | Each member shall make contributions for membership service to |
20 | | this
System as follows:
|
21 | | (1) Effective July 1, 1998, contributions of 7.50% of |
22 | | salary towards the
cost of the retirement annuity. Such |
23 | | contributions shall be deemed "normal
contributions".
|
24 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% |
25 | | of salary toward
the cost of the automatic annual increase |
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1 | | in retirement annuity provided
under Section 16-133.1.
|
2 | | (3) Effective July 24, 1959, contributions of 1% of |
3 | | salary towards the
cost of survivor benefits. Such |
4 | | contributions shall not be credited to
the individual |
5 | | account of the member and shall not be subject to refund
|
6 | | except as provided under Section 16-143.2.
|
7 | | (4) Effective July 1, 2005, contributions of 0.40% of |
8 | | salary toward the cost of the early retirement without |
9 | | discount option provided under Section 16-133.2. This |
10 | | contribution shall cease upon termination of the early |
11 | | retirement without discount option as provided in Section |
12 | | 16-133.2.
|
13 | | (a-5) As adequate and legal consideration provided under |
14 | | this amendatory Act of the 100th General Assembly for making an |
15 | | election under subsection (a) of Section 16-122.9, beginning on |
16 | | the effective date of the Tier 1 employee's election under |
17 | | subsection (a) of Section 16-122.9, in lieu of the |
18 | | contributions otherwise required under subsection (a), each |
19 | | Tier 1 employee who made the election under subsection (a) of |
20 | | Section 16-122.9 shall make contributions as follows: |
21 | | (1) Contributions of 7.50% of salary towards the cost |
22 | | of the retirement annuity. Such contributions shall be |
23 | | deemed "normal contributions". |
24 | | (2) Contributions of 0.60% towards the cost of survivor |
25 | | benefits. Such contributions shall not be credited to the |
26 | | individual account of the member and shall not be subject |
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1 | | to refund except as provided in Section 16-143.2. |
2 | | (3) Contributions of 0.40% of salary toward the cost of |
3 | | the early retirement without discount option provided |
4 | | under Section 16-133.2. This contribution shall cease upon |
5 | | termination of the early retirement without discount |
6 | | option as provided in Section 16-133.2. |
7 | | (b) The minimum required contribution for any year of |
8 | | full-time
teaching service shall be $192.
|
9 | | (c) Contributions shall not be required of any annuitant |
10 | | receiving
a retirement annuity who is given employment as |
11 | | permitted under Section 16-118 or 16-150.1.
|
12 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
13 | | retires with
more than 34 years of creditable service, and |
14 | | (iii) does not elect to qualify
for the augmented rate under |
15 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
16 | | to receive a partial refund of contributions made under this
|
17 | | Section for service occurring after the later of June 30, 1998 |
18 | | or attainment
of 34 years of creditable service, in an amount |
19 | | equal to 1.00% of the salary
upon which those contributions |
20 | | were based.
|
21 | | (e) A member's contributions toward the cost of early |
22 | | retirement without discount made under item (a)(4) of this |
23 | | Section shall not be refunded if the member has elected early |
24 | | retirement without discount under Section 16-133.2 and has |
25 | | begun to receive a retirement annuity under this Article |
26 | | calculated in accordance with that election. Otherwise, a |
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1 | | member's contributions toward the cost of early retirement |
2 | | without discount made under item (a)(4) of this Section shall |
3 | | be refunded according to whichever one of the following |
4 | | circumstances occurs first: |
5 | | (1) The contributions shall be refunded to the member, |
6 | | without interest, within 120 days after the member's |
7 | | retirement annuity commences, if the member does not elect |
8 | | early retirement without discount under Section 16-133.2. |
9 | | (2) The contributions shall be included, without |
10 | | interest, in any refund claimed by the member under Section |
11 | | 16-151. |
12 | | (3) The contributions shall be refunded to the member's |
13 | | designated beneficiary (or if there is no beneficiary, to |
14 | | the member's estate), without interest, if the member dies |
15 | | without having begun to receive a retirement annuity under |
16 | | this Article. |
17 | | (4) The contributions shall be refunded to the member, |
18 | | without interest, if the early retirement without discount |
19 | | option provided under subsection (d) of Section 16-133.2 is |
20 | | terminated. In that event, the System shall provide to the |
21 | | member, within 120 days after the option is terminated, an |
22 | | application for a refund of those contributions. |
23 | | (Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, |
24 | | eff. 7-28-16.)
|
25 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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1 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
2 | | which has been held unconstitutional)
|
3 | | Sec. 16-158. Contributions by State and other employing |
4 | | units.
|
5 | | (a) The State shall make contributions to the System by |
6 | | means of
appropriations from the Common School Fund and other |
7 | | State funds of amounts
which, together with other employer |
8 | | contributions, employee contributions,
investment income, and |
9 | | other income, will be sufficient to meet the cost of
|
10 | | maintaining and administering the System on a 90% funded basis |
11 | | in accordance
with actuarial recommendations.
|
12 | | The Board shall determine the amount of State contributions |
13 | | required for
each fiscal year on the basis of the actuarial |
14 | | tables and other assumptions
adopted by the Board and the |
15 | | recommendations of the actuary, using the formula
in subsection |
16 | | (b-3).
|
17 | | (a-1) Annually, on or before November 15 until November 15, |
18 | | 2011, the Board shall certify to the
Governor the amount of the |
19 | | required State contribution for the coming fiscal
year. The |
20 | | certification under this subsection (a-1) shall include a copy |
21 | | of the actuarial recommendations
upon which it is based and |
22 | | shall specifically identify the System's projected State |
23 | | normal cost for that fiscal year.
|
24 | | On or before May 1, 2004, the Board shall recalculate and |
25 | | recertify to
the Governor the amount of the required State |
26 | | contribution to the System for
State fiscal year 2005, taking |
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1 | | into account the amounts appropriated to and
received by the |
2 | | System under subsection (d) of Section 7.2 of the General
|
3 | | Obligation Bond Act.
|
4 | | On or before July 1, 2005, the Board shall recalculate and |
5 | | recertify
to the Governor the amount of the required State
|
6 | | contribution to the System for State fiscal year 2006, taking |
7 | | into account the changes in required State contributions made |
8 | | by this amendatory Act of the 94th General Assembly.
|
9 | | On or before April 1, 2011, 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 2011, applying |
12 | | the changes made by Public Act 96-889 to the System's assets |
13 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
14 | | was approved on that date. |
15 | | (a-5) On or before November 1 of each year, beginning |
16 | | November 1, 2012, the Board shall submit to the State Actuary, |
17 | | the Governor, and the General Assembly a proposed certification |
18 | | of the amount of the required State contribution to the System |
19 | | for the next fiscal year, along with all of the actuarial |
20 | | assumptions, calculations, and data upon which that proposed |
21 | | certification is based. On or before January 1 of each year, |
22 | | beginning January 1, 2013, the State Actuary shall issue a |
23 | | preliminary report concerning the proposed certification and |
24 | | identifying, if necessary, recommended changes in actuarial |
25 | | assumptions that the Board must consider before finalizing its |
26 | | certification of the required State contributions. On or before |
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1 | | January 15, 2013 and each 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 | | If necessary, the Board shall recalculate and recertify to |
10 | | the Governor the amount of the required State contribution to |
11 | | the System for State fiscal year 2019, applying the changes |
12 | | made by this amendatory Act of the 100th General Assembly. |
13 | | (b) Through State fiscal year 1995, the State contributions |
14 | | shall be
paid to the System in accordance with Section 18-7 of |
15 | | the School Code.
|
16 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
17 | | of each month,
or as soon thereafter as may be practicable, the |
18 | | Board shall submit vouchers
for payment of State contributions |
19 | | to the System, in a total monthly amount of
one-twelfth of the |
20 | | required annual State contribution certified under
subsection |
21 | | (a-1).
From the
effective date of this amendatory Act of the |
22 | | 93rd General Assembly
through June 30, 2004, the Board shall |
23 | | not submit vouchers for the
remainder of fiscal year 2004 in |
24 | | excess of the fiscal year 2004
certified contribution amount |
25 | | determined under this Section
after taking into consideration |
26 | | the transfer to the System
under subsection (a) of Section |
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1 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
2 | | the State Comptroller and
Treasurer by warrants drawn on the |
3 | | funds appropriated to the System for that
fiscal year.
|
4 | | If in any month the amount remaining unexpended from all |
5 | | other appropriations
to the System for the applicable fiscal |
6 | | year (including the appropriations to
the System under Section |
7 | | 8.12 of the State Finance Act and Section 1 of the
State |
8 | | Pension Funds Continuing Appropriation Act) is less than the |
9 | | amount
lawfully vouchered under this subsection, the |
10 | | difference shall be paid from the
Common School Fund under the |
11 | | continuing appropriation authority provided in
Section 1.1 of |
12 | | the State Pension Funds Continuing Appropriation Act.
|
13 | | (b-2) Allocations from the Common School Fund apportioned |
14 | | to school
districts not coming under this System shall not be |
15 | | diminished or affected by
the provisions of this Article.
|
16 | | (b-3) For State fiscal years 2012 through 2045, 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 payroll
over the years remaining to and |
24 | | including fiscal year 2045 and shall be
determined under the |
25 | | projected unit credit actuarial cost method.
|
26 | | For each of State fiscal years 2019 and 2020, the State |
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1 | | shall make an additional contribution to the System equal to 2% |
2 | | of the total payroll of each employee who is deemed to have |
3 | | elected the benefits under Section 1-161 or who has made the |
4 | | election under subsection (c) of Section 1-161. |
5 | | For State fiscal years 1996 through 2005, the State |
6 | | contribution to the
System, as a percentage of the applicable |
7 | | employee payroll, shall be increased
in equal annual increments |
8 | | so that by State fiscal year 2011, the State is
contributing at |
9 | | the rate required under this Section; except that in the
|
10 | | following specified State fiscal years, the State contribution |
11 | | to the System
shall not be less than the following indicated |
12 | | percentages of the applicable
employee payroll, even if the |
13 | | indicated percentage will produce a State
contribution in |
14 | | excess of the amount otherwise required under this subsection
|
15 | | and subsection (a), and notwithstanding any contrary |
16 | | certification made under
subsection (a-1) before the effective |
17 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
18 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
19 | | 2003; and
13.56% in FY 2004.
|
20 | | Notwithstanding any other provision of this Article, the |
21 | | total required State
contribution for State fiscal year 2006 is |
22 | | $534,627,700.
|
23 | | Notwithstanding any other provision of this Article, the |
24 | | total required State
contribution for State fiscal year 2007 is |
25 | | $738,014,500.
|
26 | | For each of State fiscal years 2008 through 2009, the State |
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1 | | contribution to
the System, as a percentage of the applicable |
2 | | employee payroll, shall be
increased in equal annual increments |
3 | | from the required State contribution for State fiscal year |
4 | | 2007, so that by State fiscal year 2011, the
State is |
5 | | contributing at the rate otherwise required under this Section.
|
6 | | Notwithstanding any other provision of this Article, the |
7 | | total required State contribution for State fiscal year 2010 is |
8 | | $2,089,268,000 and shall be made from the proceeds of bonds |
9 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
10 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
11 | | expenses determined by the System's share of total bond |
12 | | proceeds, (ii) any amounts received from the Common School Fund |
13 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
14 | | due to the issuance of discounted bonds, if applicable. |
15 | | Notwithstanding any other provision of this Article, the
|
16 | | total required State contribution for State fiscal year 2011 is
|
17 | | the amount recertified by the System on or before April 1, 2011 |
18 | | pursuant to subsection (a-1) of this Section and shall be made |
19 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
20 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
21 | | pro rata share of bond sale
expenses determined by the System's |
22 | | share of total bond
proceeds, (ii) any amounts received from |
23 | | the Common School Fund
in fiscal year 2011, and (iii) any |
24 | | reduction in bond proceeds
due to the issuance of discounted |
25 | | bonds, if applicable. This amount shall include, in addition to |
26 | | the amount certified by the System, an amount necessary to meet |
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1 | | employer contributions required by the State as an employer |
2 | | under paragraph (e) of this Section, which may also be used by |
3 | | the System for contributions required by paragraph (a) of |
4 | | Section 16-127. |
5 | | Beginning in State fiscal year 2046, the minimum State |
6 | | contribution for
each fiscal year shall be the amount needed to |
7 | | maintain the total assets of
the System at 90% of the total |
8 | | actuarial liabilities of the System.
|
9 | | Amounts received by the System pursuant to Section 25 of |
10 | | the Budget Stabilization Act or Section 8.12 of the State |
11 | | Finance Act in any fiscal year do not reduce and do not |
12 | | constitute payment of any portion of the minimum State |
13 | | contribution required under this Article in that fiscal year. |
14 | | Such amounts shall not reduce, and shall not be included in the |
15 | | calculation of, the required State contributions under this |
16 | | Article in any future year until the System has reached a |
17 | | funding ratio of at least 90%. A reference in this Article to |
18 | | the "required State contribution" or any substantially similar |
19 | | term does not include or apply to any amounts payable to the |
20 | | System under Section 25 of the Budget Stabilization Act. |
21 | | Notwithstanding any other provision of this Section, the |
22 | | required State
contribution for State fiscal year 2005 and for |
23 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
24 | | under this Section and
certified under subsection (a-1), shall |
25 | | not exceed an amount equal to (i) the
amount of the required |
26 | | State contribution that would have been calculated under
this |
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1 | | Section for that fiscal year if the System had not received any |
2 | | payments
under subsection (d) of Section 7.2 of the General |
3 | | Obligation Bond Act, minus
(ii) the portion of the State's |
4 | | total debt service payments for that fiscal
year on the bonds |
5 | | issued in fiscal year 2003 for the purposes of that Section |
6 | | 7.2, as determined
and certified by the Comptroller, that is |
7 | | the same as the System's portion of
the total moneys |
8 | | distributed under subsection (d) of Section 7.2 of the General
|
9 | | Obligation Bond Act. In determining this maximum for State |
10 | | fiscal years 2008 through 2010, however, the amount referred to |
11 | | in item (i) shall be increased, as a percentage of the |
12 | | applicable employee payroll, in equal increments calculated |
13 | | from the sum of the required State contribution for State |
14 | | fiscal year 2007 plus the applicable portion of the State's |
15 | | total debt service payments for fiscal year 2007 on the bonds |
16 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
17 | | the General
Obligation Bond Act, so that, by State fiscal year |
18 | | 2011, the
State is contributing at the rate otherwise required |
19 | | under this Section.
|
20 | | (b-4) Beginning in fiscal year 2019, each employer under |
21 | | this Article shall pay to the System a required contribution |
22 | | determined as a percentage of projected payroll and sufficient |
23 | | to produce an annual amount equal to: |
24 | | (i) for each of fiscal years 2019 and 2020, the defined |
25 | | benefit normal cost of the defined benefit plan, less the |
26 | | employee contribution, for each employee of that employer |
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1 | | who has elected or who is deemed to have elected the |
2 | | benefits under Section 1-161 or who has made the election |
3 | | under subsection (b) of Section 1-161; for fiscal year 2021 |
4 | | and each fiscal year thereafter, the defined benefit normal |
5 | | cost of the defined benefit plan, less the employee |
6 | | contribution, plus 2%, for each employee of that employer |
7 | | who has elected or who is deemed to have elected the |
8 | | benefits under Section 1-161 or who has made the election |
9 | | under subsection (b) of Section 1-161; plus |
10 | | (ii) the amount required for that fiscal year to |
11 | | amortize any unfunded actuarial accrued liability |
12 | | associated with the present value of liabilities |
13 | | attributable to the employer's account under Section |
14 | | 16-158.3, determined
as a level percentage of payroll over |
15 | | a 30-year rolling amortization period. |
16 | | In determining contributions required under item (i) of |
17 | | this subsection, the System shall determine an aggregate rate |
18 | | for all employers, expressed as a percentage of projected |
19 | | payroll. |
20 | | In determining the contributions required under item (ii) |
21 | | of this subsection, the amount shall be computed by the System |
22 | | on the basis of the actuarial assumptions and tables used in |
23 | | the most recent actuarial valuation of the System that is |
24 | | available at the time of the computation. |
25 | | The contributions required under this subsection (b-4) |
26 | | shall be paid by an employer concurrently with that employer's |
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1 | | payroll payment period. The State, as the actual employer of an |
2 | | employee, shall make the required contributions under this |
3 | | subsection. |
4 | | (c) Payment of the required State contributions and of all |
5 | | pensions,
retirement annuities, death benefits, refunds, and |
6 | | other benefits granted
under or assumed by this System, and all |
7 | | expenses in connection with the
administration and operation |
8 | | thereof, are obligations of the State.
|
9 | | If members are paid from special trust or federal funds |
10 | | which are
administered by the employing unit, whether school |
11 | | district or other
unit, the employing unit shall pay to the |
12 | | System from such
funds the full accruing retirement costs based |
13 | | upon that
service, which, beginning July 1, 2014, shall be at a |
14 | | rate, expressed as a percentage of salary, equal to the total |
15 | | minimum contribution
to the System to be made by the State for |
16 | | that fiscal year, including both normal cost and unfunded |
17 | | liability components, expressed as a percentage of payroll, as |
18 | | determined by the System under subsection (b-3) of this |
19 | | Section. Employer contributions, based on
salary paid to |
20 | | members from federal funds, may be forwarded by the |
21 | | distributing
agency of the State of Illinois to the System |
22 | | prior to allocation, in an
amount determined in accordance with |
23 | | guidelines established by such
agency and the System. Any |
24 | | contribution for fiscal year 2015 collected as a result of the |
25 | | change made by this amendatory Act of the 98th General Assembly |
26 | | shall be considered a State contribution under subsection (b-3) |
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1 | | of this Section.
|
2 | | (d) Effective July 1, 1986, any employer of a teacher as |
3 | | defined in
paragraph (8) of Section 16-106 shall pay the |
4 | | employer's normal cost
of benefits based upon the teacher's |
5 | | service, in addition to
employee contributions, as determined |
6 | | by the System. Such employer
contributions shall be forwarded |
7 | | monthly in accordance with guidelines
established by the |
8 | | System.
|
9 | | However, with respect to benefits granted under Section |
10 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
11 | | of Section 16-106, the
employer's contribution shall be 12% |
12 | | (rather than 20%) of the member's
highest annual salary rate |
13 | | for each year of creditable service granted, and
the employer |
14 | | shall also pay the required employee contribution on behalf of
|
15 | | the teacher. For the purposes of Sections 16-133.4 and |
16 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
17 | | 16-106 who is serving in that capacity
while on leave of |
18 | | absence from another employer under this Article shall not
be |
19 | | considered an employee of the employer from which the teacher |
20 | | is on leave.
|
21 | | (e) Beginning July 1, 1998, every employer of a teacher
|
22 | | shall pay to the System an employer contribution computed as |
23 | | follows:
|
24 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
25 | | employer
contribution shall be equal to 0.3% of each |
26 | | teacher's salary.
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1 | | (2) Beginning July 1, 1999 and thereafter, the employer
|
2 | | contribution shall be equal to 0.58% of each teacher's |
3 | | salary.
|
4 | | The school district or other employing unit may pay these |
5 | | employer
contributions out of any source of funding available |
6 | | for that purpose and
shall forward the contributions to the |
7 | | System on the schedule established
for the payment of member |
8 | | contributions.
|
9 | | These employer contributions are intended to offset a |
10 | | portion of the cost
to the System of the increases in |
11 | | retirement benefits resulting from this
amendatory Act of 1998.
|
12 | | Each employer of teachers is entitled to a credit against |
13 | | the contributions
required under this subsection (e) with |
14 | | respect to salaries paid to teachers
for the period January 1, |
15 | | 2002 through June 30, 2003, equal to the amount paid
by that |
16 | | employer under subsection (a-5) of Section 6.6 of the State |
17 | | Employees
Group Insurance Act of 1971 with respect to salaries |
18 | | paid to teachers for that
period.
|
19 | | The additional 1% employee contribution required under |
20 | | Section 16-152 by
this amendatory Act of 1998 is the |
21 | | responsibility of the teacher and not the
teacher's employer, |
22 | | unless the employer agrees, through collective bargaining
or |
23 | | otherwise, to make the contribution on behalf of the teacher.
|
24 | | If an employer is required by a contract in effect on May |
25 | | 1, 1998 between the
employer and an employee organization to |
26 | | pay, on behalf of all its full-time
employees
covered by this |
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1 | | Article, all mandatory employee contributions required under
|
2 | | this Article, then the employer shall be excused from paying |
3 | | the employer
contribution required under this subsection (e) |
4 | | for the balance of the term
of that contract. The employer and |
5 | | the employee organization shall jointly
certify to the System |
6 | | the existence of the contractual requirement, in such
form as |
7 | | the System may prescribe. This exclusion shall cease upon the
|
8 | | termination, extension, or renewal of the contract at any time |
9 | | after May 1,
1998.
|
10 | | (f) If the amount of a teacher's salary for any school year |
11 | | used to determine final average salary exceeds the member's |
12 | | annual full-time salary rate with the same employer for the |
13 | | previous school year by more than 6%, the teacher's employer |
14 | | shall pay to the System, in addition to all other payments |
15 | | required under this Section and in accordance with guidelines |
16 | | established by the System, the present value of the increase in |
17 | | benefits resulting from the portion of the increase in salary |
18 | | that is in excess of 6%. This present value shall be computed |
19 | | by the System on the basis of the actuarial assumptions and |
20 | | tables used in the most recent actuarial valuation of the |
21 | | System that is available at the time of the computation. If a |
22 | | teacher's salary for the 2005-2006 school year is used to |
23 | | determine final average salary under this subsection (f), then |
24 | | the changes made to this subsection (f) by Public Act 94-1057 |
25 | | shall apply in calculating whether the increase in his or her |
26 | | salary is in excess of 6%. For the purposes of this Section, |
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1 | | change in employment under Section 10-21.12 of the School Code |
2 | | on or after June 1, 2005 shall constitute a change in employer. |
3 | | The System may require the employer to provide any pertinent |
4 | | information or documentation.
The changes made to this |
5 | | subsection (f) by this amendatory Act of the 94th General |
6 | | Assembly apply without regard to whether the teacher was in |
7 | | service on or after its effective date.
|
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 and, if the employer asserts |
16 | | that the calculation is subject to subsection (g) or (h) of |
17 | | this Section, must include an affidavit setting forth and |
18 | | attesting to all facts within the employer's knowledge that are |
19 | | pertinent to the applicability of that subsection. Upon |
20 | | receiving a timely application for recalculation, the System |
21 | | shall review the application and, if appropriate, recalculate |
22 | | the amount due.
|
23 | | The employer contributions required under this subsection |
24 | | (f) may be paid in the form of a lump sum within 90 days after |
25 | | receipt of the bill. If the employer contributions are not paid |
26 | | within 90 days after receipt of the bill, then interest will be |
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1 | | charged at a rate equal to the System's annual actuarially |
2 | | assumed rate of return on investment compounded annually from |
3 | | the 91st day after receipt of the bill. Payments must be |
4 | | concluded within 3 years after the employer's receipt of the |
5 | | bill.
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6 | | (g) This subsection (g) applies only to payments made or |
7 | | salary increases given on or after June 1, 2005 but before July |
8 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
9 | | require the System to refund any payments received before
July |
10 | | 31, 2006 (the effective date of Public Act 94-1057). |
11 | | When assessing payment for any amount due under subsection |
12 | | (f), the System shall exclude salary increases paid to teachers |
13 | | under contracts or collective bargaining agreements entered |
14 | | into, amended, or renewed before June 1, 2005.
|
15 | | When assessing payment for any amount due under subsection |
16 | | (f), the System shall exclude salary increases paid to a |
17 | | teacher at a time when the teacher is 10 or more years from |
18 | | retirement eligibility under Section 16-132 or 16-133.2.
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19 | | When assessing payment for any amount due under subsection |
20 | | (f), the System shall exclude salary increases resulting from |
21 | | overload work, including summer school, when the school |
22 | | district has certified to the System, and the System has |
23 | | approved the certification, that (i) the overload work is for |
24 | | the sole purpose of classroom instruction in excess of the |
25 | | standard number of classes for a full-time teacher in a school |
26 | | district during a school year and (ii) the salary increases are |
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1 | | equal to or less than the rate of pay for classroom instruction |
2 | | computed on the teacher's current salary and work schedule.
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3 | | When assessing payment for any amount due under subsection |
4 | | (f), the System shall exclude a salary increase resulting from |
5 | | a promotion (i) for which the employee is required to hold a |
6 | | certificate or supervisory endorsement issued by the State |
7 | | Teacher Certification Board that is a different certification |
8 | | or supervisory endorsement than is required for the teacher's |
9 | | previous position and (ii) to a position that has existed and |
10 | | been filled by a member for no less than one complete academic |
11 | | year and the salary increase from the promotion is an increase |
12 | | that results in an amount no greater than the lesser of the |
13 | | average salary paid for other similar positions in the district |
14 | | requiring the same certification or the amount stipulated in |
15 | | the collective bargaining agreement for a similar position |
16 | | requiring the same certification.
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17 | | When assessing payment for any amount due under subsection |
18 | | (f), the System shall exclude any payment to the teacher from |
19 | | the State of Illinois or the State Board of Education over |
20 | | which the employer does not have discretion, notwithstanding |
21 | | that the payment is included in the computation of final |
22 | | average salary.
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23 | | (h) When assessing payment for any amount due under |
24 | | subsection (f), the System shall exclude any salary increase |
25 | | described in subsection (g) of this Section given on or after |
26 | | July 1, 2011 but before July 1, 2014 under a contract or |
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1 | | collective bargaining agreement entered into, amended, or |
2 | | renewed on or after June 1, 2005 but before July 1, 2011. |
3 | | Notwithstanding any other provision of this Section, any |
4 | | payments made or salary increases given after June 30, 2014 |
5 | | shall be used in assessing payment for any amount due under |
6 | | subsection (f) of this Section.
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7 | | (i) The System shall prepare a report and file copies of |
8 | | the report with the Governor and the General Assembly by |
9 | | January 1, 2007 that contains all of the following information: |
10 | | (1) The number of recalculations required by the |
11 | | changes made to this Section by Public Act 94-1057 for each |
12 | | employer. |
13 | | (2) The dollar amount by which each employer's |
14 | | contribution to the System was changed due to |
15 | | recalculations required by Public Act 94-1057. |
16 | | (3) The total amount the System received from each |
17 | | employer as a result of the changes made to this Section by |
18 | | Public Act 94-4. |
19 | | (4) The increase in the required State contribution |
20 | | resulting from the changes made to this Section by Public |
21 | | Act 94-1057.
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22 | | (j) For purposes of determining the required State |
23 | | contribution to the System, the value of the System's assets |
24 | | shall be equal to the actuarial value of the System's assets, |
25 | | which shall be calculated as follows: |
26 | | As of June 30, 2008, the actuarial value of the System's |
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1 | | assets shall be equal to the market value of the assets as of |
2 | | that date. In determining the actuarial value of the System's |
3 | | assets for fiscal years after June 30, 2008, any actuarial |
4 | | gains or losses from investment return incurred in a fiscal |
5 | | year shall be recognized in equal annual amounts over the |
6 | | 5-year period following that fiscal year. |
7 | | (k) For purposes of determining the required State |
8 | | contribution to the system for a particular year, the actuarial |
9 | | value of assets shall be assumed to earn a rate of return equal |
10 | | to the system's actuarially assumed rate of return. |
11 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
12 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
13 | | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
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14 | | (40 ILCS 5/16-158.3 new) |
15 | | Sec. 16-158.3. Individual employer accounts. |
16 | | (a) The System shall create and maintain an individual |
17 | | account for each employer for the purposes of determining |
18 | | employer contributions under subsection (b-4) of Section |
19 | | 16-158. Each employer's account shall be notionally charged |
20 | | with the liabilities attributable to that employer and credited |
21 | | with the assets attributable to that employer. |
22 | | (b) Beginning in fiscal year 2019, the System shall assign |
23 | | notional liabilities to each employer's account, equal to the |
24 | | amount of the employer contributions required to be made by the |
25 | | employer pursuant to items (i) and (ii) of subsection (b-4) of |
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1 | | Section 16-158, plus any unfunded actuarial accrued liability |
2 | | associated with the defined benefits attributable to the |
3 | | employer's employees who first became members on or after July |
4 | | 1, 2018 and the employer's employees who made the election |
5 | | under subsection (c-5) of Section 1-161. |
6 | | (c) Beginning in fiscal year 2019, the System shall assign |
7 | | notional assets to each employer's account equal to the amounts |
8 | | of employer contributions made pursuant to items (i) and (ii) |
9 | | of subsection (b-4) of Section 16-158. |
10 | | (40 ILCS 5/16-190.5 new) |
11 | | Sec. 16-190.5. Accelerated pension benefit payment. |
12 | | (a) As used in this Section: |
13 | | "Eligible person" means a person who: |
14 | | (1) has terminated service; |
15 | | (2) has accrued sufficient service credit to be |
16 | | eligible to receive a retirement annuity under this |
17 | | Article; |
18 | | (3) is not a party to a pending divorce proceeding and |
19 | | does not have a QILDRO in effect against him or her under |
20 | | this Article; and |
21 | | (4) does not have a QILDRO in effect against him or her |
22 | | under this Article. |
23 | | "Pension benefit" means the benefits under this Article, or |
24 | | Article 1 as it relates to those benefits, including any |
25 | | anticipated annual increases, that an eligible person is |
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1 | | entitled to upon attainment of the applicable retirement age. |
2 | | "Pension benefit" also includes applicable survivor's or |
3 | | disability benefits. |
4 | | (b) If approved by resolution of the Board in any year, the |
5 | | System shall calculate, using actuarial tables and other |
6 | | assumptions adopted by the Board, the net present value of |
7 | | pension benefits for each eligible person and shall offer each |
8 | | eligible person the opportunity to irrevocably elect to receive |
9 | | an amount determined by the System to be equal to 70% of the |
10 | | net present value of his or her pension benefits in lieu of |
11 | | receiving any pension benefit. The offer shall specify the |
12 | | dollar amount that the eligible person will receive if he or |
13 | | she so elects and shall expire when a subsequent offer is made |
14 | | to an eligible person. The System shall make a good faith |
15 | | effort to contact every eligible person to notify him or her of |
16 | | the election and of the amount of the accelerated pension |
17 | | benefit payment. |
18 | | During a period of 3 months determined by the Board, an |
19 | | eligible person may irrevocably elect to receive an accelerated |
20 | | pension benefit payment in the amount that the System offers |
21 | | under this subsection in lieu of receiving any pension benefit. |
22 | | A person who elects to receive an accelerated pension benefit |
23 | | payment under this Section may not elect to proceed under the |
24 | | Retirement Systems Reciprocal Act with respect to service under |
25 | | this Article. The accelerated pension benefit payment shall be |
26 | | paid by the System. |
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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) The Board shall adopt any rules necessary to implement |
9 | | this Section. |
10 | | (g) No provision of this Section shall be interpreted in a |
11 | | way that would cause the applicable System to cease to be a |
12 | | qualified plan under the Internal Revenue Code of 1986. |
13 | | (40 ILCS 5/16-203) |
14 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
15 | | which has been held unconstitutional)
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16 | | Sec. 16-203. Application and expiration of new benefit |
17 | | increases. |
18 | | (a) As used in this Section, "new benefit increase" means |
19 | | an increase in the amount of any benefit provided under this |
20 | | Article, or an expansion of the conditions of eligibility for |
21 | | any benefit under this Article, that results from an amendment |
22 | | to this Code that takes effect after June 1, 2005 (the |
23 | | effective date of Public Act 94-4). "New benefit increase", |
24 | | however, does not include any benefit increase resulting from |
25 | | the changes made to this Article by Public Act 95-910 or this |
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1 | | amendatory Act of the 100th General Assembly this amendatory |
2 | | Act of the 95th General Assembly . |
3 | | (b) Notwithstanding any other provision of this Code or any |
4 | | subsequent amendment to this Code, every new benefit increase |
5 | | is subject to this Section and shall be deemed to be granted |
6 | | only in conformance with and contingent upon compliance with |
7 | | the provisions of this Section.
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8 | | (c) The Public Act enacting a new benefit increase must |
9 | | identify and provide for payment to the System of additional |
10 | | funding at least sufficient to fund the resulting annual |
11 | | increase in cost to the System as it accrues. |
12 | | Every new benefit increase is contingent upon the General |
13 | | Assembly providing the additional funding required under this |
14 | | subsection. The Commission on Government Forecasting and |
15 | | Accountability shall analyze whether adequate additional |
16 | | funding has been provided for the new benefit increase and |
17 | | shall report its analysis to the Public Pension Division of the |
18 | | Department of Insurance Financial and Professional Regulation . |
19 | | A new benefit increase created by a Public Act that does not |
20 | | include the additional funding required under this subsection |
21 | | is null and void. If the Public Pension Division determines |
22 | | that the additional funding provided for a new benefit increase |
23 | | under this subsection is or has become inadequate, it may so |
24 | | certify to the Governor and the State Comptroller and, in the |
25 | | absence of corrective action by the General Assembly, the new |
26 | | benefit increase shall expire at the end of the fiscal year in |
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1 | | which the certification is made.
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2 | | (d) Every new benefit increase shall expire 5 years after |
3 | | its effective date or on such earlier date as may be specified |
4 | | in the language enacting the new benefit increase or provided |
5 | | under subsection (c). This does not prevent the General |
6 | | Assembly from extending or re-creating a new benefit increase |
7 | | by law. |
8 | | (e) Except as otherwise provided in the language creating |
9 | | the new benefit increase, a new benefit increase that expires |
10 | | under this Section continues to apply to persons who applied |
11 | | and qualified for the affected benefit while the new benefit |
12 | | increase was in effect and to the affected beneficiaries and |
13 | | alternate payees of such persons, but does not apply to any |
14 | | other person, including without limitation a person who |
15 | | continues in service after the expiration date and did not |
16 | | apply and qualify for the affected benefit while the new |
17 | | benefit increase was in effect.
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18 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) |
19 | | (40 ILCS 5/16-205.1 new) |
20 | | Sec. 16-205.1. Defined contribution plan. |
21 | | (a) By July 1, 2018, the System shall prepare and implement |
22 | | a voluntary defined contribution plan for up to 5% of eligible |
23 | | active Tier 1 employees. The System shall determine the 5% cap |
24 | | by the number of active Tier 1 employees on the effective date |
25 | | of this Section. The defined contribution plan developed under |
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1 | | this Section shall be a plan that aggregates employer and |
2 | | employee contributions in individual participant accounts |
3 | | which, after meeting any other requirements, are used for |
4 | | payouts after retirement in accordance with this Section and |
5 | | any other applicable laws. |
6 | | As used in this Section, "defined benefit plan" means the |
7 | | retirement plan available under this Article to Tier 1 |
8 | | employees who have not made the election authorized under this |
9 | | Section. |
10 | | (1) Under the defined contribution plan, an active
Tier |
11 | | 1 employee of this System could elect to cease accruing |
12 | | benefits in the defined benefit plan under this Article and |
13 | | begin accruing benefits for future service in the defined |
14 | | contribution plan. Service credit under the defined |
15 | | contribution plan may be used for determining retirement |
16 | | eligibility under the defined benefit plan. An active Tier |
17 | | 1 employee who elects to cease accruing benefits in his or |
18 | | her defined benefit plan shall be prohibited from |
19 | | purchasing service credit on or after the date of his or |
20 | | her election. A Tier 1 employee making the irrevocable |
21 | | election provided under this Section shall not receive |
22 | | interest accruals to his or her benefit under paragraph (A) |
23 | | of subsection (a) of Section 16-133 on or after the date of |
24 | | his or her election. |
25 | | (2) Participants in the defined contribution plan
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26 | | shall pay employee contributions at the same rate as Tier 1 |
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1 | | employees in this System who do not participate in the |
2 | | defined contribution plan. |
3 | | (3) State contributions shall be paid into the
accounts |
4 | | of all participants in the defined contribution plan at a |
5 | | uniform rate, expressed as a percentage of salary and |
6 | | determined for each year. This rate shall be no higher than |
7 | | the employer's normal cost for Tier 1 employees in the |
8 | | defined benefit plan for that year, as determined by the |
9 | | System and expressed as a percentage of salary, and shall |
10 | | be no lower than 0% of salary. The State shall adjust this |
11 | | rate annually. |
12 | | (4) The defined contribution plan shall require 5
years |
13 | | of participation in the defined contribution plan before |
14 | | vesting in State contributions. If the participant fails to |
15 | | vest in them, the State contributions, and the earnings |
16 | | thereon, shall be forfeited. |
17 | | (5) The defined contribution plan may provide for
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18 | | participants in the plan to be eligible for the defined |
19 | | disability benefits available to other participants under |
20 | | this Article. If it does, the System shall reduce the |
21 | | employee contributions credited to the member's defined |
22 | | contribution plan account by an amount determined by the |
23 | | 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 in a fund created by the System and |
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1 | | managed in accordance with legal and fiduciary standards, |
2 | | as well as investment options otherwise available. |
3 | | (7) The defined contribution plan shall provide a
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4 | | variety of options for payouts to retirees and their |
5 | | survivors. |
6 | | (8) To the extent authorized under federal law and
as |
7 | | authorized by the System, the plan shall allow former |
8 | | participants in the plan to transfer or roll over employee |
9 | | and vested State contributions, and the earnings thereon, |
10 | | into other qualified retirement plans. |
11 | | (9) The System shall reduce the employee
contributions |
12 | | credited to the member's defined contribution plan account |
13 | | by an amount determined by the System to cover the cost of |
14 | | offering these benefits and any applicable administrative |
15 | | fees. |
16 | | (b) Only persons who are active Tier 1 employees of the |
17 | | System on the effective date of this Section are eligible to |
18 | | participate in the defined contribution plan. Participation in |
19 | | the defined contribution plan shall be limited to the first 5% |
20 | | of eligible persons who elect to participate. The election to |
21 | | participate in the defined contribution plan is voluntary and |
22 | | irrevocable. |
23 | | (c) An eligible Tier 1 employee may irrevocably elect to |
24 | | participate in the defined contribution plan by filing with the |
25 | | System a written application to participate that is received by |
26 | | the System prior to its determination that 5% of eligible |
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1 | | persons have elected to participate in the defined contribution |
2 | | plan. |
3 | | When the System first determines that 5% of eligible |
4 | | persons have elected to participate in the defined contribution |
5 | | plan, the System shall provide notice to previously eligible |
6 | | employees that the plan is no longer available and shall cease |
7 | | accepting applications to participate. |
8 | | (d) The System shall make a good faith effort to contact |
9 | | each active Tier 1 employee who is eligible to participate in |
10 | | the defined contribution plan. Such correspondence shall |
11 | | describe the option to join the defined contribution plan to |
12 | | each of these employees. If the employee is not responsive to |
13 | | other means of contact, it is sufficient for the System to |
14 | | 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 member's defined benefits at retirement or |
21 | | earlier termination of service and the value of the member's |
22 | | account at retirement or earlier termination of service. The |
23 | | System shall not provide advice or counseling with respect to |
24 | | whether the employee should exercise the option. The System |
25 | | shall inform Tier 1 employees who are eligible to participate |
26 | | in the defined contribution plan that they may also wish to |
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1 | | obtain information and counsel relating to their option from |
2 | | any other available source, including, but not limited to, |
3 | | labor organizations, private counsel, and financial advisors. |
4 | | (e) In no event shall the System, its staff, its authorized |
5 | | representatives, or the Board be liable for any information |
6 | | given to an employee under this Section. The System may |
7 | | coordinate with other retirement systems administering a |
8 | | defined contribution plan in accordance with this amendatory |
9 | | Act of the 100th General Assembly to provide information |
10 | | concerning the impact of the option set forth in this Section. |
11 | | (f) Notwithstanding any other provision of this Section, no |
12 | | person shall begin participating in the defined contribution |
13 | | plan until it has attained qualified plan status and received |
14 | | all necessary approvals from the U.S. Internal Revenue Service. |
15 | | (g) The System shall report on its progress under this |
16 | | Section, including the available details of the defined |
17 | | contribution plan and the System's plans for informing eligible |
18 | | Tier 1 employees about the plan, to the Governor and the |
19 | | General Assembly. |
20 | | (h) The intent of this amendatory Act of the 100th General |
21 | | Assembly is to ensure that the State's normal cost of |
22 | | participation in the defined contribution plan is similar, and |
23 | | if possible equal, to the State's normal cost of participation |
24 | | in the defined benefit plan, unless a lower State's normal cost |
25 | | is necessary to ensure cost neutrality. |
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1 | | (40 ILCS 5/16-206.1 new) |
2 | | Sec. 16-206.1. Defined contribution plan; termination. If |
3 | | the defined contribution plan is terminated or becomes |
4 | | inoperative pursuant to law, then each participant in the plan |
5 | | shall automatically be deemed to have been a contributing Tier |
6 | | 1 employee in the System's defined benefit plan during the time |
7 | | in which he or she participated in the defined contribution |
8 | | plan, and for that purpose the System shall be entitled to |
9 | | recover the amounts in the participant's defined contribution |
10 | | accounts. |
11 | | (40 ILCS 5/17-106.05 new) |
12 | | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
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13 | | teacher under this Article who first became a member or
|
14 | | participant before January 1, 2011 under any reciprocal
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15 | | retirement system or pension fund established under this Code
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16 | | other than a retirement system or pension fund established
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17 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
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18 | | the purposes of the election under Section 17-115.5, "Tier 1 |
19 | | employee" does
not include a teacher under this Article who |
20 | | would qualify as a
Tier 1 employee but who has made an |
21 | | irrevocable election on or
before June 1, 2017 to retire from |
22 | | service pursuant to the terms of an employment contract or a |
23 | | collective bargaining agreement in effect on June 1,
2017, |
24 | | excluding any extension, amendment, or renewal of that
|
25 | | agreement after that date, and has notified the Fund of
that |
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1 | | election. |
2 | | (40 ILCS 5/17-113.4 new) |
3 | | Sec. 17-113.4. Salary. "Salary" means any income in any |
4 | | form that qualifies as "average salary" or "annual rate of |
5 | | salary" for purposes of paragraph (1) of subsection (c) of |
6 | | Section 17-116 and "salary" for payroll deduction purposes |
7 | | under Sections 17-130, 17-131, and 17-132. |
8 | | (40 ILCS 5/17-115.5 new) |
9 | | Sec. 17-115.5. Election by Tier 1 employees. |
10 | | (a) If approved by resolution of the Board, an active Tier |
11 | | 1 employee may make an irrevocable election to agree to delay |
12 | | his or her eligibility for
automatic annual increases in |
13 | | service retirement pension
as provided in Section 17-119.2 and |
14 | | to have the amount of
the automatic annual increases in his or |
15 | | her service
retirement pension and survivor's pension that are
|
16 | | otherwise provided for in this Article calculated,
instead, as |
17 | | provided in Section 17-119.2. |
18 | | (b) As adequate and legal consideration provided under this |
19 | | amendatory Act of the 100th General Assembly for making an |
20 | | election under subsection (a) of this Section, each Tier 1 |
21 | | employee who has made an election under subsection (a) of this |
22 | | Section shall receive a consideration payment equal to 10% of |
23 | | the contributions made by or on behalf of the employee under |
24 | | Section 17-130 before the effective date of that election. The |
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1 | | Fund shall pay the amount of the consideration payment. |
2 | | (c) A Tier 1 employee who does not make the election under |
3 | | subsection (a) of this Section shall not be subject to the |
4 | | benefits of subsection (b) of this Section. |
5 | | (d) The Fund shall make a good faith effort to contact each |
6 | | Tier 1 employee subject to this Section. Such correspondence |
7 | | shall describe the election to each Tier 1 employee. If the |
8 | | Tier 1 employee is not responsive, it is sufficient for the |
9 | | Fund to publish the details of any elections on its website or |
10 | | to publish those details in a regularly published newsletter or |
11 | | 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 election. Upon request, the Fund shall offer Tier 1 |
16 | | employees an opportunity to receive information from the Fund |
17 | | before making the election. The information may be provided |
18 | | through 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 the legal or tax |
23 | | circumstances of or consequences of making the election in |
24 | | subsection (a) of this Section. |
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 under this Section from any other available source, |
3 | | including, but not limited to, labor organizations and private |
4 | | 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 | | election under this Section. The Fund shall coordinate with |
8 | | other retirement systems administering an election in |
9 | | accordance with this amendatory Act of the 100th General |
10 | | Assembly to provide information concerning the impact of the |
11 | | election set forth in this Section. |
12 | | (d-5) To the extent authorized under federal law and as |
13 | | authorized by the Fund, a Tier 1 employee may transfer or roll |
14 | | over the consideration payment into other qualified retirement |
15 | | plans. |
16 | | (e) 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 | | (f) No provision of this Section shall be interpreted in a |
20 | | way that would cause the Fund to cease to be a qualified plan |
21 | | under Section 401(a) of the Internal Revenue Code of 1986.
|
22 | | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
|
23 | | Sec. 17-116. Service retirement pension.
|
24 | | (a) Each teacher having 20 years of service upon attainment |
25 | | of age 55,
or who thereafter attains age 55 shall be entitled |
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1 | | to a service retirement
pension upon or after attainment of age |
2 | | 55; and each teacher in service on or
after July 1, 1971, with |
3 | | 5 or more but less than 20 years of service shall be
entitled |
4 | | to receive a service retirement pension upon or after |
5 | | attainment of
age 62.
|
6 | | (b) The service retirement pension
for a teacher who |
7 | | retires on or after June 25, 1971, at age
60 or over, shall be |
8 | | calculated as follows:
|
9 | | (1) For creditable service earned before July 1, 1998 |
10 | | that has not been
augmented under Section 17-119.1: 1.67% |
11 | | for each of the first 10 years
of service; 1.90% for each |
12 | | of the next 10 years of service; 2.10% for
each year of |
13 | | service in excess of 20 but not exceeding 30; and 2.30% for
|
14 | | each year of service in excess of 30, based upon average |
15 | | salary as
herein defined.
|
16 | | (2) For creditable service earned on or after July 1, |
17 | | 1998 by a member
who has at least 30 years of creditable |
18 | | service on July 1, 1998 and who does
not elect to augment |
19 | | service under Section 17-119.1: 2.3% of average salary
for |
20 | | each year of creditable service earned on or after July 1, |
21 | | 1998.
|
22 | | (3) For all other creditable service: 2.2% of average |
23 | | salary
for each year of creditable service.
|
24 | | (c) When computing such service retirement pensions, the
|
25 | | following conditions shall apply:
|
26 | | 1. Average salary shall consist of the average annual |
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1 | | rate of salary
for the 4 consecutive years of validated |
2 | | service within the last 10 years
of service when such |
3 | | average annual rate was highest. In the determination
of |
4 | | average salary for retirement allowance purposes, for |
5 | | members who
commenced employment after August 31, 1979, |
6 | | that part of the salary for any
year shall be excluded |
7 | | which exceeds the annual full-time salary rate for
the |
8 | | preceding year by more than 20%. In the case of a member |
9 | | who commenced
employment before August 31, 1979 and who |
10 | | receives salary during any year
after September 1, 1983 |
11 | | which exceeds the annual full time salary rate for
the |
12 | | preceding year by more than 20%,
an Employer and other |
13 | | employers of
eligible contributors as defined in Section |
14 | | 17-106
shall pay to the Fund an amount equal to the present |
15 | | value of the
additional service retirement pension |
16 | | resulting from such excess salary.
The present value of the |
17 | | additional service retirement pension shall be
computed by |
18 | | the Board on the basis of actuarial tables adopted by the
|
19 | | Board. If a member elects to receive a pension from this |
20 | | Fund
provided by
Section 20-121, his salary under the State |
21 | | Universities Retirement System
and the Teachers' |
22 | | Retirement System of the State of Illinois shall be
|
23 | | considered in determining such average salary. Amounts |
24 | | paid after the
effective date of this amendatory Act of |
25 | | 1991 for unused vacation time
earned after that effective |
26 | | date shall not under any circumstances be
included in the |
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1 | | calculation of average salary or the annual rate of salary
|
2 | | for the purposes of this Article.
|
3 | | 2. Proportionate credit shall be given for validated |
4 | | service of less
than one year.
|
5 | | 3. For retirement at age 60 or over the pension shall |
6 | | be payable at
the full rate.
|
7 | | 4. For separation from service below age 60 to a |
8 | | minimum age of 55,
the pension shall be discounted at the |
9 | | rate of 1/2 of one per cent for
each month that the age of |
10 | | the contributor is less than 60, but a
teacher may elect to |
11 | | defer the effective date of pension in order to
eliminate |
12 | | or reduce this discount. This discount shall not be |
13 | | applicable
to any participant who has at least 34 years of |
14 | | service or a
retirement pension of at least 74.6% of |
15 | | average salary on the date the
retirement annuity begins.
|
16 | | 5. No additional pension shall be granted for service |
17 | | exceeding 45
years. Beginning June 26, 1971 no pension |
18 | | shall exceed the greater of
$1,500 per month or 75% of |
19 | | average salary as herein defined.
|
20 | | 6. Service retirement pensions shall begin on the |
21 | | effective date of
resignation, retirement, the day |
22 | | following the close of the payroll
period for which service |
23 | | credit was validated, or the time the person
resigning or |
24 | | retiring attains age 55, or on a date elected by the
|
25 | | teacher, whichever shall be latest; provided that, for a |
26 | | person who first becomes a member after the effective date |
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1 | | of this amendatory Act of the 99th General Assembly, the |
2 | | benefit shall not commence more than one year prior to the |
3 | | date of the Fund's receipt of an application for the |
4 | | benefit.
|
5 | | 7. A member who is eligible to receive a retirement |
6 | | pension of at least
74.6% of average salary and will attain |
7 | | age 55 on or before December 31
during the year which |
8 | | commences on July 1 shall be deemed to attain age 55 on
the |
9 | | preceding June 1.
|
10 | | 8. A member retiring after the effective date of this |
11 | | amendatory Act
of 1998 shall receive a pension equal to 75% |
12 | | of average salary if the
member is qualified to receive a |
13 | | retirement pension equal to at least 74.6%
of average |
14 | | salary under this Article or as proportional annuities |
15 | | under
Article 20 of this Code.
|
16 | | (d) Notwithstanding any other provision of this Section,
|
17 | | annual salary does not include any consideration payment made |
18 | | to a
Tier 1 employee. |
19 | | (Source: P.A. 99-702, eff. 7-29-16.)
|
20 | | (40 ILCS 5/17-119.2 new) |
21 | | Sec. 17-119.2. Automatic annual increases in service |
22 | | retirement pension and survivor's pension for certain Tier 1 |
23 | | employees. Notwithstanding any other provision of this |
24 | | Article, for a Tier 1 employee who made the election under |
25 | | subsection (a) of Section 17-115.5: |
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1 | | (1) The initial increase in service retirement pension |
2 | | shall occur on the January 1 occurring either on or after |
3 | | the attainment of age 67 or the fifth anniversary of the |
4 | | pension start date, whichever is earlier. |
5 | | (2) The amount of each automatic annual increase in |
6 | | service retirement pension or survivor's pension occurring |
7 | | on or after the effective date of that election shall be |
8 | | calculated as a percentage of the originally granted |
9 | | service retirement pension or survivor's pension, equal to |
10 | | 3% or one-half the annual unadjusted percentage increase |
11 | | (but
not less than zero) in the consumer price index-u for |
12 | | the
12 months ending with the September preceding each |
13 | | November
1, whichever is less. If the annual unadjusted |
14 | | percentage
change in the consumer price index-u for the 12 |
15 | | months ending with the September preceding each November 1 |
16 | | is zero
or there is a decrease, then the annuity shall not |
17 | | be
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 by November 1 of |
26 | | each year.
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1 | | (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
|
2 | | Sec. 17-130. Participants' contributions by payroll |
3 | | deductions.
|
4 | | (a) Except as provided in subsection (a-5), there There |
5 | | shall be deducted from the salary of each teacher 7.50% of his |
6 | | salary for service or disability retirement pension and
0.5% of |
7 | | salary for the annual increase in base pension.
|
8 | | In addition, there shall be deducted from the salary of |
9 | | each teacher
1% of his salary for survivors' and children's |
10 | | pensions.
|
11 | | (a-5) As adequate and legal consideration provided under |
12 | | this amendatory Act of the 100th General Assembly for making an |
13 | | election under subsection (a) of Section 17-115.5, beginning on |
14 | | the effective date of the Tier 1 employee's election under |
15 | | subsection (a) of Section 17-115.5, in lieu of the |
16 | | contributions otherwise required under subsection (a), each |
17 | | Tier 1 employee who made the election under paragraph (1) of |
18 | | Section 17-115.5 shall make contributions of 7.50% of salary |
19 | | for service or disability retirement pension and 0.6% of salary |
20 | | for survivors' and children's pensions. |
21 | | (b) An Employer and any employer of eligible contributors |
22 | | as defined in
Section 17-106 is authorized to make the |
23 | | necessary deductions from the salaries
of its teachers. Such |
24 | | amounts shall be included as a part of the Fund. An
Employer |
25 | | and any employer of eligible contributors as defined in Section |
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1 | | 17-106
shall formulate such rules and regulations as may be |
2 | | necessary to give effect
to the provisions of this Section.
|
3 | | (c) All persons employed as teachers shall, by such |
4 | | employment,
accept the provisions of this Article and of |
5 | | Sections 34-83 to 34-85,
inclusive, of "The School Code", |
6 | | approved March 18, 1961, as amended,
and thereupon become |
7 | | contributors to the Fund in accordance with the
terms thereof. |
8 | | The provisions of this Article and of those Sections
shall |
9 | | become a part of the contract of employment.
|
10 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
11 | | retires with
more than 34 years of creditable service, and |
12 | | (iii) does not elect to qualify
for the augmented rate under |
13 | | Section 17-119.1 shall be entitled, at the time of
retirement, |
14 | | to receive a partial refund of contributions made under this
|
15 | | Section for service occurring after the later of June 30, 1998 |
16 | | or attainment of
34 years of creditable service, in an amount |
17 | | equal to 1.00% of the salary upon
which those contributions |
18 | | were based.
|
19 | | (Source: P.A. 97-8, eff. 6-13-11.)
|
20 | | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
|
21 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
22 | | which has been held unconstitutional)
|
23 | | Sec. 20-121. Calculation of proportional retirement |
24 | | annuities. |
25 | | (a) Upon
retirement of the employee, a proportional |
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1 | | retirement annuity shall be computed
by each participating |
2 | | system in which pension credit has been established on
the |
3 | | basis of pension credits under each system. The computation |
4 | | shall be in
accordance with the formula or method prescribed by |
5 | | each participating system
which is in effect at the date of the |
6 | | employee's latest withdrawal from service
covered by any of the |
7 | | systems in which he has pension credits which he elects
to have |
8 | | considered under this Article. However, the amount of any |
9 | | retirement
annuity payable under the self-managed plan |
10 | | established under Section 15-158.2
of this Code or under the |
11 | | defined contribution plan established under Article 2, 14, 15, |
12 | | or 16 of this Code depends solely on the value of the |
13 | | participant's vested account
balances and is not subject to any |
14 | | proportional adjustment under this
Section.
|
15 | | (a-5) For persons who participate in a defined contribution |
16 | | plan established under Article 2, 14, 15, or 16 of this Code to |
17 | | whom the provisions of this Article apply, the pension credits |
18 | | established under the defined contribution plan may be |
19 | | considered in
determining eligibility for or the amount of the |
20 | | defined benefit retirement annuity that is
payable by any other |
21 | | participating system. |
22 | | (b) Combined pension credit under all retirement systems |
23 | | subject to this
Article shall be considered in determining |
24 | | whether the minimum qualification
has been met and the formula |
25 | | or method of computation which shall be applied , except as may |
26 | | be otherwise provided with respect to vesting in State or |
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1 | | employer contributions in a defined contribution plan .
If a |
2 | | system has a step-rate formula for calculation of the |
3 | | retirement annuity,
pension credits covering previous service |
4 | | which have been established under
another system shall be |
5 | | considered in determining which range or ranges of
the |
6 | | step-rate formula are to be applicable to the employee.
|
7 | | (c) Interest on pension credit shall continue to accumulate |
8 | | in accordance with
the provisions of the law governing the |
9 | | retirement system in which the same
has been established during |
10 | | the time an employee is in the service of another
employer, on |
11 | | the assumption such employee, for interest purposes for pension
|
12 | | credit, is continuing in the service covered by such retirement |
13 | | system.
|
14 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
15 | | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
|
16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
17 | | which has been held unconstitutional)
|
18 | | Sec. 20-123. Survivor's annuity. The provisions governing |
19 | | a retirement
annuity shall be applicable to a survivor's |
20 | | annuity. Appropriate credits shall
be established for |
21 | | survivor's annuity purposes in those participating systems
|
22 | | which provide survivor's annuities, according to the same |
23 | | conditions and
subject to the same limitations and restrictions |
24 | | herein prescribed for a
retirement annuity. If a participating |
25 | | system has no survivor's annuity
benefit, or if the survivor's |
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1 | | annuity benefit under that system is waived,
pension credit |
2 | | established in that system shall not be considered
in |
3 | | determining eligibility for or the amount of the survivor's |
4 | | annuity which
may be payable by any other participating system.
|
5 | | For persons who participate in the self-managed plan |
6 | | established under
Section 15-158.2 or the portable benefit |
7 | | package established under Section
15-136.4, pension credit |
8 | | established under Article 15 may be considered in
determining |
9 | | eligibility for or the amount of the survivor's annuity that is
|
10 | | payable by any other participating system, but pension credit |
11 | | established in
any other system shall not result in any right |
12 | | to a survivor's annuity under
the Article 15 system.
|
13 | | For persons who participate in a defined contribution plan |
14 | | established under Article 2, 14, 15, or 16 of this Code to whom |
15 | | the provisions of this Article apply, the pension credits |
16 | | established under the defined contribution plan may be |
17 | | considered in
determining eligibility for or the amount of the |
18 | | defined benefit survivor's annuity that is
payable by any other |
19 | | participating system, but pension credits established in
any |
20 | | other system shall not result in any right to or increase in |
21 | | the value of a survivor's annuity under
the defined |
22 | | contribution plan, which depends solely on the options chosen |
23 | | and the value of the participant's vested account
balances and |
24 | | is not subject to any proportional adjustment under this
|
25 | | Section. |
26 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
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1 | | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
|
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been held unconstitutional)
|
4 | | Sec. 20-124. Maximum benefits. |
5 | | (a) In no event shall the combined retirement
or survivors |
6 | | annuities exceed the highest annuity which would have been |
7 | | payable
by any participating system in which the employee has |
8 | | pension credits, if all
of his pension credits had been |
9 | | validated in that system.
|
10 | | If the combined annuities should exceed the highest maximum |
11 | | as determined
in accordance with this Section, the respective |
12 | | annuities shall be reduced
proportionately according to the |
13 | | ratio which the amount of each proportional
annuity bears to |
14 | | the aggregate of all such annuities.
|
15 | | (b) In the case of a participant in the self-managed plan |
16 | | established under
Section 15-158.2 of this Code to whom the |
17 | | provisions of this Article apply:
|
18 | | (i) For purposes of calculating the combined |
19 | | retirement annuity and
the proportionate reduction, if |
20 | | any, in a retirement annuity other than one
payable under |
21 | | the self-managed plan, the amount of the Article 15 |
22 | | retirement
annuity shall be deemed to be the highest |
23 | | annuity to which the annuitant would
have been entitled if |
24 | | he or she had participated in the traditional benefit
|
25 | | package as defined in Section 15-103.1 rather than the |
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1 | | self-managed plan.
|
2 | | (ii) For purposes of calculating the combined |
3 | | survivor's annuity and
the proportionate reduction, if |
4 | | any, in a survivor's annuity other than one
payable under |
5 | | the self-managed plan, the amount of the Article 15 |
6 | | survivor's
annuity shall be deemed to be the highest |
7 | | survivor's annuity to which the
survivor would have been |
8 | | entitled if the deceased employee had participated in
the |
9 | | traditional benefit package as defined in Section 15-103.1 |
10 | | rather than the
self-managed plan.
|
11 | | (iii) Benefits payable under the self-managed plan are |
12 | | not subject to
proportionate reduction under this Section.
|
13 | | (c) In the case of a participant in a defined contribution |
14 | | plan established under
Article 2, 14, 15, or 16 of this Code to |
15 | | whom the 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 defined benefit retirement annuity, any benefit |
19 | | payable under the defined contribution plan shall not be |
20 | | considered. |
21 | | (ii) For purposes of calculating the combined |
22 | | survivor's annuity and
the proportionate reduction, if |
23 | | any, in a defined benefit survivor's annuity, any benefit |
24 | | payable under the defined contribution plan shall not be |
25 | | considered. |
26 | | (iii) Benefits payable under a defined contribution |
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1 | | plan established under Article 2, 14, 15, or 16 of this |
2 | | Code are not subject to
proportionate reduction under this |
3 | | Section. |
4 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
5 | | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
|
6 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
7 | | which has been held unconstitutional)
|
8 | | Sec. 20-125. Return to employment - suspension of benefits. |
9 | | If a retired
employee returns to employment which is covered by |
10 | | a system from which he is
receiving a proportional annuity |
11 | | under this Article, his proportional annuity
from all |
12 | | participating systems shall be suspended during the period of
|
13 | | re-employment, except that this suspension does not apply to |
14 | | any
distributions payable under the self-managed plan |
15 | | established under Section
15-158.2 or under a defined |
16 | | contribution plan established under Article 2, 14, 15, or 16 of |
17 | | this Code.
|
18 | | The provisions of the Article under which such employment |
19 | | would be
covered shall govern the determination of whether the |
20 | | employee has returned
to employment, and if applicable the |
21 | | exemption of temporary employment or
employment not exceeding a |
22 | | specified duration or frequency, for all
participating systems |
23 | | from which the retired employee is receiving a
proportional |
24 | | annuity under this Article, notwithstanding any contrary
|
25 | | provisions in the other Articles governing such systems.
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1 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
2 | | (40 ILCS 5/2-165 rep.) |
3 | | (40 ILCS 5/2-166 rep.) |
4 | | (40 ILCS 5/14-155 rep.) |
5 | | (40 ILCS 5/14-156 rep.) |
6 | | (40 ILCS 5/15-200 rep.) |
7 | | (40 ILCS 5/15-201 rep.) |
8 | | (40 ILCS 5/16-205 rep.) |
9 | | (40 ILCS 5/16-206 rep.) |
10 | | Section 15. The Illinois Pension Code is amended by |
11 | | repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200, |
12 | | 15-201, 16-205, and 16-206. |
13 | | Section 900. The State Mandates Act is amended by adding |
14 | | Section 8.41 as follows: |
15 | | (30 ILCS 805/8.41 new) |
16 | | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 |
17 | | of this Act, no reimbursement by the State is required for the |
18 | | implementation of any mandate created by this amendatory Act of |
19 | | the 100th General Assembly. |
20 | | Section 970. Severability. The provisions of this Act are |
21 | | severable under Section 1.31 of the Statute on Statutes. |