| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
1 | AN ACT concerning public employee benefits.
| |||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||
4 | Section 5. The State Employees Group Insurance Act of 1971 | |||||||||||||||||||||||||||
5 | is amended by changing Sections 3 and 10 as follows:
| |||||||||||||||||||||||||||
6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
| |||||||||||||||||||||||||||
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.
| |||||||||||||||||||||||||||
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.
| |||||||||||||||||||||||||||
18 | (b) "Annuitant" means (1) an employee who retires, or has | |||||||||||||||||||||||||||
19 | retired,
on or after January 1, 1966 on an immediate annuity | |||||||||||||||||||||||||||
20 | under the provisions
of Articles 2 (including an employee who | |||||||||||||||||||||||||||
21 | meets the criteria for retirement, but in lieu of receiving an | |||||||||||||||||||||||||||
22 | annuity under that Article has elected to receive an | |||||||||||||||||||||||||||
23 | accelerated pension benefit payment under Section 2-154.5 of |
| |||||||
| |||||||
1 | that Article) , 14 (including an employee who has elected to | ||||||
2 | receive an alternative retirement cancellation payment under | ||||||
3 | Section 14-108.5 of the Illinois Pension Code in lieu of an | ||||||
4 | annuity or who meets the criteria for retirement, but in lieu | ||||||
5 | of receiving an annuity under that Article has elected to | ||||||
6 | receive an accelerated pension benefit payment under Section | ||||||
7 | 14-147.5 of that Article ), 15 (including an employee who has | ||||||
8 | retired under the optional
retirement program established | ||||||
9 | under Section 15-158.2 or who meets the criteria for retirement | ||||||
10 | but in lieu of receiving an annuity under that Article has | ||||||
11 | elected to receive an accelerated pension benefit payment under | ||||||
12 | Section 15-185.5 of the Article ),
paragraphs (2), (3), or (5) | ||||||
13 | of Section 16-106 (including an employee who meets the criteria | ||||||
14 | for retirement, but in lieu of receiving an annuity under that | ||||||
15 | Article has elected to receive an accelerated pension benefit | ||||||
16 | payment under Section 16-190.5 of the Illinois Pension Code) , | ||||||
17 | or
Article 18 (including an employee who meets the criteria for | ||||||
18 | retirement, but in lieu of receiving an annuity under that | ||||||
19 | Article, has elected to receive an accelerated pension benefit | ||||||
20 | payment under Section 18-161.5 of that Article) of the Illinois | ||||||
21 | Pension Code; (2) any person who was receiving
group insurance | ||||||
22 | coverage under this Act as of March 31, 1978 by
reason of his | ||||||
23 | status as an annuitant, even though the annuity in relation
to | ||||||
24 | which such coverage was provided is a proportional annuity | ||||||
25 | based on less
than the minimum period of service required for a | ||||||
26 | retirement annuity in
the system involved; (3) any person not |
| |||||||
| |||||||
1 | otherwise covered by this Act
who has retired as a | ||||||
2 | participating member under Article 2 of the Illinois
Pension | ||||||
3 | Code but is ineligible for the retirement annuity under Section
| ||||||
4 | 2-119 of the Illinois Pension Code; (4) the spouse of any | ||||||
5 | person who
is receiving a retirement annuity under Article 18 | ||||||
6 | of the Illinois Pension
Code and who is covered under a group | ||||||
7 | health insurance program sponsored
by a governmental employer | ||||||
8 | other than the State of Illinois and who has
irrevocably | ||||||
9 | elected to waive his or her coverage under this Act and to have
| ||||||
10 | his or her spouse considered as the "annuitant" under this Act | ||||||
11 | and not as
a "dependent"; or (5) an employee who retires, or | ||||||
12 | has retired, from a
qualified position, as determined according | ||||||
13 | to rules promulgated by the
Director, under a qualified local | ||||||
14 | government, a qualified rehabilitation
facility, a qualified | ||||||
15 | domestic violence shelter or service, or a qualified child | ||||||
16 | advocacy center. (For definition
of "retired employee", see (p) | ||||||
17 | post).
| ||||||
18 | (b-5) (Blank).
| ||||||
19 | (b-6) (Blank).
| ||||||
20 | (b-7) (Blank).
| ||||||
21 | (c) "Carrier" means (1) an insurance company, a corporation | ||||||
22 | organized
under the Limited Health Service Organization Act or | ||||||
23 | the Voluntary Health
Services Plan Act, a partnership, or other | ||||||
24 | nongovernmental organization,
which is authorized to do group | ||||||
25 | life or group health insurance business in
Illinois, or (2) the | ||||||
26 | State of Illinois as a self-insurer.
|
| |||||||
| |||||||
1 | (d) "Compensation" means salary or wages payable on a | ||||||
2 | regular
payroll by the State Treasurer on a warrant of the | ||||||
3 | State Comptroller out
of any State, trust or federal fund, or | ||||||
4 | by the Governor of the State
through a disbursing officer of | ||||||
5 | the State out of a trust or out of
federal funds, or by any | ||||||
6 | Department out of State, trust, federal or
other funds held by | ||||||
7 | the State Treasurer or the Department, to any person
for | ||||||
8 | personal services currently performed, and ordinary or | ||||||
9 | accidental
disability benefits under Articles 2, 14, 15 | ||||||
10 | (including ordinary or accidental
disability benefits under | ||||||
11 | the optional retirement program established under
Section | ||||||
12 | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | ||||||
13 | Article 18 of the Illinois Pension Code, for disability
| ||||||
14 | incurred after January 1, 1966, or benefits payable under the | ||||||
15 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
16 | payable under a sick
pay plan established in accordance with | ||||||
17 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
18 | salary or wages paid to an employee of any
qualified local | ||||||
19 | government, qualified rehabilitation facility,
qualified | ||||||
20 | domestic violence shelter or service, or qualified child | ||||||
21 | advocacy center.
| ||||||
22 | (e) "Commission" means the State Employees Group Insurance | ||||||
23 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
24 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
25 | Government Forecasting and Accountability as
established by | ||||||
26 | the Legislative Commission Reorganization Act of 1984.
|
| |||||||
| |||||||
1 | (f) "Contributory", when referred to as contributory | ||||||
2 | coverage, shall
mean optional coverages or benefits elected by | ||||||
3 | the member toward the cost of
which such member makes | ||||||
4 | contribution, or which are funded in whole or in part
through | ||||||
5 | the acceptance of a reduction in earnings or the foregoing of | ||||||
6 | an
increase in earnings by an employee, as distinguished from | ||||||
7 | noncontributory
coverage or benefits which are paid entirely by | ||||||
8 | the State of Illinois
without reduction of the member's salary.
| ||||||
9 | (g) "Department" means any department, institution, board,
| ||||||
10 | commission, officer, court or any agency of the State | ||||||
11 | government
receiving appropriations and having power to | ||||||
12 | certify payrolls to the
Comptroller authorizing payments of | ||||||
13 | salary and wages against such
appropriations as are made by the | ||||||
14 | General Assembly from any State fund, or
against trust funds | ||||||
15 | held by the State Treasurer and includes boards of
trustees of | ||||||
16 | the retirement systems created by Articles 2, 14, 15, 16 and
18 | ||||||
17 | of the Illinois Pension Code. "Department" also includes the | ||||||
18 | Illinois
Comprehensive Health Insurance Board, the Board of | ||||||
19 | Examiners established under
the Illinois Public Accounting | ||||||
20 | Act, and the Illinois Finance Authority.
| ||||||
21 | (h) "Dependent", when the term is used in the context of | ||||||
22 | the health
and life plan, means a member's spouse and any child | ||||||
23 | (1) from
birth to age 26 including an adopted child, a child | ||||||
24 | who lives with the
member from the time of the filing of a | ||||||
25 | petition for adoption until entry
of an order of adoption, a | ||||||
26 | stepchild or adjudicated child, or a child who lives with the |
| |||||||
| |||||||
1 | member
if such member is a court appointed guardian of the | ||||||
2 | child or (2)
age 19 or over who has a mental or physical | ||||||
3 | disability from a cause originating prior to the age of 19 (age | ||||||
4 | 26 if enrolled as an adult child dependent). For
the health | ||||||
5 | plan only, the term "dependent" also includes (1) any person
| ||||||
6 | enrolled prior to the effective date of this Section who is | ||||||
7 | dependent upon
the member to the extent that the member may | ||||||
8 | claim such person as a
dependent for income tax deduction | ||||||
9 | purposes and (2) any person who
has received after June 30, | ||||||
10 | 2000 an organ transplant and who is financially
dependent upon | ||||||
11 | the member and eligible to be claimed as a dependent for income
| ||||||
12 | tax purposes. A member requesting to cover any dependent must | ||||||
13 | provide documentation as requested by the Department of Central | ||||||
14 | Management Services and file with the Department any and all | ||||||
15 | forms required by the Department.
| ||||||
16 | (i) "Director" means the Director of the Illinois | ||||||
17 | Department of Central
Management Services.
| ||||||
18 | (j) "Eligibility period" means the period of time a member | ||||||
19 | has to
elect enrollment in programs or to select benefits | ||||||
20 | without regard to
age, sex or health.
| ||||||
21 | (k) "Employee" means and includes each officer or employee | ||||||
22 | in the
service of a department who (1) receives his | ||||||
23 | compensation for
service rendered to the department on a | ||||||
24 | warrant issued pursuant to a payroll
certified by a department | ||||||
25 | or on a warrant or check issued and drawn by a
department upon | ||||||
26 | a trust, federal or other fund or on a warrant issued
pursuant |
| |||||||
| |||||||
1 | to a payroll certified by an elected or duly appointed officer
| ||||||
2 | of the State or who receives payment of the performance of | ||||||
3 | personal
services on a warrant issued pursuant to a payroll | ||||||
4 | certified by a
Department and drawn by the Comptroller upon the | ||||||
5 | State Treasurer against
appropriations made by the General | ||||||
6 | Assembly from any fund or against
trust funds held by the State | ||||||
7 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
8 | position normally requiring actual performance of duty
during | ||||||
9 | not less than 1/2 of a normal work period, as established by | ||||||
10 | the
Director in cooperation with each department, except that | ||||||
11 | persons elected
by popular vote will be considered employees | ||||||
12 | during the entire
term for which they are elected regardless of | ||||||
13 | hours devoted to the
service of the State, and (3) except that | ||||||
14 | "employee" does not include any
person who is not eligible by | ||||||
15 | reason of such person's employment to
participate in one of the | ||||||
16 | State retirement systems under Articles 2, 14, 15
(either the | ||||||
17 | regular Article 15 system or the optional retirement program
| ||||||
18 | established under Section 15-158.2) or 18, or under paragraph | ||||||
19 | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | ||||||
20 | Code, but such term does include persons who are employed | ||||||
21 | during
the 6 month qualifying period under Article 14 of the | ||||||
22 | Illinois Pension
Code. Such term also includes any person who | ||||||
23 | (1) after January 1, 1966,
is receiving ordinary or accidental | ||||||
24 | disability benefits under Articles
2, 14, 15 (including | ||||||
25 | ordinary or accidental disability benefits under the
optional | ||||||
26 | retirement program established under Section 15-158.2), |
| |||||||
| |||||||
1 | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | ||||||
2 | the
Illinois Pension Code, for disability incurred after | ||||||
3 | January 1, 1966, (2)
receives total permanent or total | ||||||
4 | temporary disability under the Workers'
Compensation Act or | ||||||
5 | Occupational Disease Act as a result of injuries
sustained or | ||||||
6 | illness contracted in the course of employment with the
State | ||||||
7 | of Illinois, or (3) is not otherwise covered under this Act and | ||||||
8 | has
retired as a participating member under Article 2 of the | ||||||
9 | Illinois Pension
Code but is ineligible for the retirement | ||||||
10 | annuity under Section 2-119 of
the Illinois Pension Code. | ||||||
11 | However, a person who satisfies the criteria
of the foregoing | ||||||
12 | definition of "employee" except that such person is made
| ||||||
13 | ineligible to participate in the State Universities Retirement | ||||||
14 | System by
clause (4) of subsection (a) of Section 15-107 of the | ||||||
15 | Illinois Pension
Code is also an "employee" for the purposes of | ||||||
16 | this Act. "Employee" also
includes any person receiving or | ||||||
17 | eligible for benefits under a sick pay
plan established in | ||||||
18 | accordance with Section 36 of the State Finance Act.
"Employee" | ||||||
19 | also includes (i) each officer or employee in the service of a
| ||||||
20 | qualified local government, including persons appointed as | ||||||
21 | trustees of
sanitary districts regardless of hours devoted to | ||||||
22 | the service of the
sanitary district, (ii) each employee in the | ||||||
23 | service of a qualified
rehabilitation facility, (iii) each | ||||||
24 | full-time employee in the service of a
qualified domestic | ||||||
25 | violence shelter or service, and (iv) each full-time employee | ||||||
26 | in the service of a qualified child advocacy center, as |
| |||||||
| |||||||
1 | determined according to
rules promulgated by the Director.
| ||||||
2 | (l) "Member" means an employee, annuitant, retired | ||||||
3 | employee or survivor. In the case of an annuitant or retired | ||||||
4 | employee who first becomes an annuitant or retired employee on | ||||||
5 | or after the effective date of this amendatory Act of the 97th | ||||||
6 | General Assembly, the individual must meet the minimum vesting | ||||||
7 | requirements of the applicable retirement system in order to be | ||||||
8 | eligible for group insurance benefits under that system. In the | ||||||
9 | case of a survivor who first becomes a survivor on or after the | ||||||
10 | effective date of this amendatory Act of the 97th General | ||||||
11 | Assembly, the deceased employee, annuitant, or retired | ||||||
12 | employee upon whom the annuity is based must have been eligible | ||||||
13 | to participate in the group insurance system under the | ||||||
14 | applicable retirement system in order for the survivor to be | ||||||
15 | eligible for group insurance benefits under that system.
| ||||||
16 | (m) "Optional coverages or benefits" means those coverages | ||||||
17 | or
benefits available to the member on his or her voluntary | ||||||
18 | election, and at
his or her own expense.
| ||||||
19 | (n) "Program" means the group life insurance, health | ||||||
20 | benefits and other
employee benefits designed and contracted | ||||||
21 | for by the Director under this Act.
| ||||||
22 | (o) "Health plan" means a health benefits
program offered
| ||||||
23 | by the State of Illinois for persons eligible for the plan.
| ||||||
24 | (p) "Retired employee" means any person who would be an | ||||||
25 | annuitant as
that term is defined herein but for the fact that | ||||||
26 | such person retired prior to
January 1, 1966. Such term also |
| |||||||
| |||||||
1 | includes any person formerly employed by
the University of | ||||||
2 | Illinois in the Cooperative Extension Service who would
be an | ||||||
3 | annuitant but for the fact that such person was made ineligible | ||||||
4 | to
participate in the State Universities Retirement System by | ||||||
5 | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| ||||||
6 | Pension Code.
| ||||||
7 | (q) "Survivor" means a person receiving an annuity as a | ||||||
8 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
9 | includes: (1) the surviving
dependent of a person who satisfies | ||||||
10 | the definition of "employee" except that
such person is made | ||||||
11 | ineligible to participate in the State Universities
Retirement | ||||||
12 | System by clause (4) of subsection (a)
of Section 15-107 of the | ||||||
13 | Illinois Pension Code; (2) the surviving
dependent of any | ||||||
14 | person formerly employed by the University of Illinois in
the | ||||||
15 | Cooperative Extension Service who would be an annuitant except | ||||||
16 | for the
fact that such person was made ineligible to | ||||||
17 | participate in the State
Universities Retirement System by | ||||||
18 | clause (4) of subsection (a) of Section
15-107 of the Illinois | ||||||
19 | Pension Code; and (3) the surviving dependent of a person who | ||||||
20 | was an annuitant under this Act by virtue of receiving an | ||||||
21 | alternative retirement cancellation payment under Section | ||||||
22 | 14-108.5 of the Illinois Pension Code.
| ||||||
23 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
24 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
25 | Code.
| ||||||
26 | (q-3) "SURS" means the State Universities Retirement |
| |||||||
| |||||||
1 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
2 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
3 | State of Illinois, created under Article 16 of the Illinois | ||||||
4 | Pension Code.
| ||||||
5 | (q-5) (Blank).
| ||||||
6 | (q-6) (Blank).
| ||||||
7 | (q-7) (Blank).
| ||||||
8 | (r) "Medical services" means the services provided within | ||||||
9 | the scope
of their licenses by practitioners in all categories | ||||||
10 | licensed under the
Medical Practice Act of 1987.
| ||||||
11 | (s) "Unit of local government" means any county, | ||||||
12 | municipality,
township, school district (including a | ||||||
13 | combination of school districts under
the Intergovernmental | ||||||
14 | Cooperation Act), special district or other unit,
designated as | ||||||
15 | a
unit of local government by law, which exercises limited | ||||||
16 | governmental
powers or powers in respect to limited | ||||||
17 | governmental subjects, any
not-for-profit association with a | ||||||
18 | membership that primarily includes
townships and township | ||||||
19 | officials, that has duties that include provision of
research | ||||||
20 | service, dissemination of information, and other acts for the
| ||||||
21 | purpose of improving township government, and that is funded | ||||||
22 | wholly or
partly in accordance with Section 85-15 of the | ||||||
23 | Township Code; any
not-for-profit corporation or association, | ||||||
24 | with a membership consisting
primarily of municipalities, that | ||||||
25 | operates its own utility system, and
provides research, | ||||||
26 | training, dissemination of information, or other acts to
|
| |||||||
| |||||||
1 | promote cooperation between and among municipalities that | ||||||
2 | provide utility
services and for the advancement of the goals | ||||||
3 | and purposes of its
membership;
the Southern Illinois | ||||||
4 | Collegiate Common Market, which is a consortium of higher
| ||||||
5 | education institutions in Southern Illinois; the Illinois | ||||||
6 | Association of
Park Districts; and any hospital provider that | ||||||
7 | is owned by a county that has 100 or fewer hospital beds and | ||||||
8 | has not already joined the program. "Qualified
local | ||||||
9 | government" means a unit of local government approved by the | ||||||
10 | Director and
participating in a program created under | ||||||
11 | subsection (i) of Section 10 of this
Act.
| ||||||
12 | (t) "Qualified rehabilitation facility" means any | ||||||
13 | not-for-profit
organization that is accredited by the | ||||||
14 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
15 | certified by the Department
of Human Services (as successor to | ||||||
16 | the Department of Mental Health
and Developmental | ||||||
17 | Disabilities) to provide services to persons with
disabilities
| ||||||
18 | and which receives funds from the State of Illinois for | ||||||
19 | providing those
services, approved by the Director and | ||||||
20 | participating in a program created
under subsection (j) of | ||||||
21 | Section 10 of this Act.
| ||||||
22 | (u) "Qualified domestic violence shelter or service" means | ||||||
23 | any Illinois
domestic violence shelter or service and its | ||||||
24 | administrative offices funded
by the Department of Human | ||||||
25 | Services (as successor to the Illinois Department of
Public | ||||||
26 | Aid),
approved by the Director and
participating in a program |
| |||||||
| |||||||
1 | created under subsection (k) of Section 10.
| ||||||
2 | (v) "TRS benefit recipient" means a person who:
| ||||||
3 | (1) is not a "member" as defined in this Section; and
| ||||||
4 | (2) is receiving a monthly benefit or retirement | ||||||
5 | annuity
under Article 16 of the Illinois Pension Code; and
| ||||||
6 | (3) either (i) has at least 8 years of creditable | ||||||
7 | service under Article
16 of the Illinois Pension Code, or | ||||||
8 | (ii) was enrolled in the health insurance
program offered | ||||||
9 | under that Article on January 1, 1996, or (iii) is the | ||||||
10 | survivor
of a benefit recipient who had at least 8
years of | ||||||
11 | creditable service under Article 16 of the Illinois Pension | ||||||
12 | Code or
was enrolled in the health insurance program | ||||||
13 | offered under that Article on
the effective date of this | ||||||
14 | amendatory Act of 1995, or (iv) is a recipient or
survivor | ||||||
15 | of a recipient of a disability benefit under Article 16 of | ||||||
16 | the
Illinois Pension Code.
| ||||||
17 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
18 | (1) is not a "member" or "dependent" as defined in this | ||||||
19 | Section; and
| ||||||
20 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
21 | dependent parent who
is receiving at least half of his or | ||||||
22 | her support from the TRS benefit
recipient, or (C) natural, | ||||||
23 | step, adjudicated, or adopted child who is (i) under age | ||||||
24 | 26, (ii) was, on January 1, 1996, participating as a | ||||||
25 | dependent
beneficiary in the health insurance program | ||||||
26 | offered under Article 16 of the
Illinois Pension Code, or |
| |||||||
| |||||||
1 | (iii) age 19 or over who has a mental or physical | ||||||
2 | disability from a cause originating prior to the age of 19 | ||||||
3 | (age 26 if enrolled as an adult child).
| ||||||
4 | "TRS dependent beneficiary" does not include, as indicated | ||||||
5 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
6 | survivor of a TRS benefit recipient who first becomes a | ||||||
7 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
8 | the effective date of this amendatory Act of the 97th General | ||||||
9 | Assembly unless that dependent would have been eligible for | ||||||
10 | coverage as a dependent of the deceased TRS benefit recipient | ||||||
11 | upon whom the survivor benefit is based. | ||||||
12 | (x) "Military leave" refers to individuals in basic
| ||||||
13 | training for reserves, special/advanced training, annual | ||||||
14 | training, emergency
call up, activation by the President of the | ||||||
15 | United States, or any other training or duty in service to the | ||||||
16 | United States Armed Forces.
| ||||||
17 | (y) (Blank).
| ||||||
18 | (z) "Community college benefit recipient" means a person | ||||||
19 | who:
| ||||||
20 | (1) is not a "member" as defined in this Section; and
| ||||||
21 | (2) is receiving a monthly survivor's annuity or | ||||||
22 | retirement annuity
under Article 15 of the Illinois Pension | ||||||
23 | Code; and
| ||||||
24 | (3) either (i) was a full-time employee of a community | ||||||
25 | college district or
an association of community college | ||||||
26 | boards created under the Public Community
College Act |
| |||||||
| |||||||
1 | (other than an employee whose last employer under Article | ||||||
2 | 15 of the
Illinois Pension Code was a community college | ||||||
3 | district subject to Article VII
of the Public Community | ||||||
4 | College Act) and was eligible to participate in a group
| ||||||
5 | health benefit plan as an employee during the time of | ||||||
6 | employment with a
community college district (other than a | ||||||
7 | community college district subject to
Article VII of the | ||||||
8 | Public Community College Act) or an association of | ||||||
9 | community
college boards, or (ii) is the survivor of a | ||||||
10 | person described in item (i).
| ||||||
11 | (aa) "Community college dependent beneficiary" means a | ||||||
12 | person who:
| ||||||
13 | (1) is not a "member" or "dependent" as defined in this | ||||||
14 | Section; and
| ||||||
15 | (2) is a community college benefit recipient's: (A) | ||||||
16 | spouse, (B) dependent
parent who is receiving at least half | ||||||
17 | of his or her support from the community
college benefit | ||||||
18 | recipient, or (C) natural, step, adjudicated, or adopted | ||||||
19 | child who is (i)
under age 26, or (ii)
age 19 or over and | ||||||
20 | has a mental or physical disability from a cause | ||||||
21 | originating prior to the age of 19 (age 26 if enrolled as | ||||||
22 | an adult child).
| ||||||
23 | "Community college dependent beneficiary" does not | ||||||
24 | include, as indicated under paragraph (2) of this subsection | ||||||
25 | (aa), a dependent of the survivor of a community college | ||||||
26 | benefit recipient who first becomes a dependent of a survivor |
| |||||||
| |||||||
1 | of a community college benefit recipient on or after the | ||||||
2 | effective date of this amendatory Act of the 97th General | ||||||
3 | Assembly unless that dependent would have been eligible for | ||||||
4 | coverage as a dependent of the deceased community college | ||||||
5 | benefit recipient upon whom the survivor annuity is based. | ||||||
6 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
7 | child advocacy center and its administrative offices funded by | ||||||
8 | the Department of Children and Family Services, as defined by | ||||||
9 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
10 | the Director and participating in a program created under | ||||||
11 | subsection (n) of Section 10.
| ||||||
12 | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
| ||||||
13 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
14 | Sec. 10. Contributions by the State and members.
| ||||||
15 | (a) The State shall pay the cost of basic non-contributory | ||||||
16 | group life
insurance and, subject to member paid contributions | ||||||
17 | set by the Department or
required by this Section and except as | ||||||
18 | provided in this Section, the basic program of group health | ||||||
19 | benefits on each
eligible member, except a member, not | ||||||
20 | otherwise
covered by this Act, who has retired as a | ||||||
21 | participating member under Article 2
of the Illinois Pension | ||||||
22 | Code but is ineligible for the retirement annuity under
Section | ||||||
23 | 2-119 of the Illinois Pension Code, and part of each eligible | ||||||
24 | member's
and retired member's premiums for health insurance | ||||||
25 | coverage for enrolled
dependents as provided by Section 9. The |
| |||||||
| |||||||
1 | State shall pay the cost of the basic
program of group health | ||||||
2 | benefits only after benefits are reduced by the amount
of | ||||||
3 | benefits covered by Medicare for all members and dependents
who | ||||||
4 | are eligible for benefits under Social Security or
the Railroad | ||||||
5 | Retirement system or who had sufficient Medicare-covered
| ||||||
6 | government employment, except that such reduction in benefits | ||||||
7 | shall apply only
to those members and dependents who (1) first | ||||||
8 | become eligible
for such Medicare coverage on or after July 1, | ||||||
9 | 1992; or (2) are
Medicare-eligible members or dependents of a | ||||||
10 | local government unit which began
participation in the program | ||||||
11 | on or after July 1, 1992; or (3) remain eligible
for, but no | ||||||
12 | longer receive Medicare coverage which they had been receiving | ||||||
13 | on
or after July 1, 1992. The Department may determine the | ||||||
14 | aggregate level of the
State's contribution on the basis of | ||||||
15 | actual cost of medical services adjusted
for age, sex or | ||||||
16 | geographic or other demographic characteristics which affect
| ||||||
17 | the costs of such programs.
| ||||||
18 | The cost of participation in the basic program of group | ||||||
19 | health benefits
for the dependent or survivor of a living or | ||||||
20 | deceased retired employee who was
formerly employed by the | ||||||
21 | University of Illinois in the Cooperative Extension
Service and | ||||||
22 | would be an annuitant but for the fact that he or she was made
| ||||||
23 | ineligible to participate in the State Universities Retirement | ||||||
24 | System by clause
(4) of subsection (a) of Section 15-107 of the | ||||||
25 | Illinois Pension Code shall not
be greater than the cost of | ||||||
26 | participation that would otherwise apply to that
dependent or |
| |||||||
| |||||||
1 | survivor if he or she were the dependent or survivor of an
| ||||||
2 | annuitant under the State Universities Retirement System.
| ||||||
3 | (a-1) (Blank).
| ||||||
4 | (a-2) (Blank).
| ||||||
5 | (a-3) (Blank).
| ||||||
6 | (a-4) (Blank).
| ||||||
7 | (a-5) (Blank).
| ||||||
8 | (a-6) (Blank).
| ||||||
9 | (a-7) (Blank).
| ||||||
10 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
11 | waive or terminate coverage in
the program of group health | ||||||
12 | benefits. Any such annuitant, survivor, or retired employee
who | ||||||
13 | has waived or terminated coverage may enroll or re-enroll in | ||||||
14 | the
program of group health benefits only during the annual | ||||||
15 | benefit choice period,
as determined by the Director; except | ||||||
16 | that in the event of termination of
coverage due to nonpayment | ||||||
17 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
18 | not re-enroll in the program.
| ||||||
19 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
20 | Act of the 97th General Assembly, the Director of Central | ||||||
21 | Management Services shall, on an annual basis, determine the | ||||||
22 | amount that the State shall contribute toward the basic program | ||||||
23 | of group health benefits on behalf of annuitants (including | ||||||
24 | individuals who (i) participated in the General Assembly | ||||||
25 | Retirement System, the State Employees' Retirement System of | ||||||
26 | Illinois, the State Universities Retirement System, the |
| |||||||
| |||||||
1 | Teachers' Retirement System of the State of Illinois, or the | ||||||
2 | Judges Retirement System of Illinois and (ii) qualify as | ||||||
3 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
4 | survivors (including individuals who (i) receive an annuity as | ||||||
5 | a survivor of an individual who participated in the General | ||||||
6 | Assembly Retirement System, the State Employees' Retirement | ||||||
7 | System of Illinois, the State Universities Retirement System, | ||||||
8 | the Teachers' Retirement System of the State of Illinois, or | ||||||
9 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
10 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
11 | retired employees (as defined in subsection (p) of Section 3 of | ||||||
12 | this Act). The remainder of the cost of coverage for each | ||||||
13 | annuitant, survivor, or retired employee, as determined by the | ||||||
14 | Director of Central Management Services, shall be the | ||||||
15 | responsibility of that annuitant, survivor, or retired | ||||||
16 | employee. | ||||||
17 | Contributions required of annuitants, survivors, and | ||||||
18 | retired employees shall be the same for all retirement systems | ||||||
19 | and shall also be based on whether an individual has made an | ||||||
20 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
21 | Contributions may be based on annuitants', survivors', or | ||||||
22 | retired employees' Medicare eligibility, but may not be based | ||||||
23 | on Social Security eligibility. | ||||||
24 | (a-9) No later than May 1 of each calendar year, the | ||||||
25 | Director
of Central Management Services shall certify in | ||||||
26 | writing to the Executive
Secretary of the State Employees' |
| |||||||
| |||||||
1 | Retirement System of Illinois the amounts
of the Medicare | ||||||
2 | supplement health care premiums and the amounts of the
health | ||||||
3 | care premiums for all other retirees who are not Medicare | ||||||
4 | eligible.
| ||||||
5 | A separate calculation of the premiums based upon the | ||||||
6 | actual cost of each
health care plan shall be so certified.
| ||||||
7 | The Director of Central Management Services shall provide | ||||||
8 | to the
Executive Secretary of the State Employees' Retirement | ||||||
9 | System of
Illinois such information, statistics, and other data | ||||||
10 | as he or she
may require to review the premium amounts | ||||||
11 | certified by the Director
of Central Management Services.
| ||||||
12 | The Department of Central Management Services, or any | ||||||
13 | successor agency designated to procure healthcare contracts | ||||||
14 | pursuant to this Act, is authorized to establish funds, | ||||||
15 | separate accounts provided by any bank or banks as defined by | ||||||
16 | the Illinois Banking Act, or separate accounts provided by any | ||||||
17 | savings and loan association or associations as defined by the | ||||||
18 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
19 | Director, outside the State treasury, for the purpose of | ||||||
20 | receiving the transfer of moneys from the Local Government | ||||||
21 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
22 | rules further defining the methodology for the transfers. Any | ||||||
23 | interest earned by moneys in the funds or accounts shall inure | ||||||
24 | to the Local Government Health Insurance Reserve Fund. The | ||||||
25 | transferred moneys, and interest accrued thereon, shall be used | ||||||
26 | exclusively for transfers to administrative service |
| |||||||
| |||||||
1 | organizations or their financial institutions for payments of | ||||||
2 | claims to claimants and providers under the self-insurance | ||||||
3 | health plan. The transferred moneys, and interest accrued | ||||||
4 | thereon, shall not be used for any other purpose including, but | ||||||
5 | not limited to, reimbursement of administration fees due the | ||||||
6 | administrative service organization pursuant to its contract | ||||||
7 | or contracts with the Department.
| ||||||
8 | (a-10) To the extent that participation, benefits, or | ||||||
9 | premiums under this Act are based on a person's service credit | ||||||
10 | under an Article of the Illinois Pension Code, service credit | ||||||
11 | terminated in exchange for an accelerated pension benefit | ||||||
12 | payment under Section 2-154.5, 14-147.5, 15-185.5, 16-190.5, | ||||||
13 | or 18-161.5 of that Code shall be included in determining a | ||||||
14 | person's service credit for the purposes of this Act. | ||||||
15 | (b) State employees who become eligible for this program on | ||||||
16 | or after January
1, 1980 in positions normally requiring actual | ||||||
17 | performance of duty not less
than 1/2 of a normal work period | ||||||
18 | but not equal to that of a normal work period,
shall be given | ||||||
19 | the option of participating in the available program. If the
| ||||||
20 | employee elects coverage, the State shall contribute on behalf | ||||||
21 | of such employee
to the cost of the employee's benefit and any | ||||||
22 | applicable dependent supplement,
that sum which bears the same | ||||||
23 | percentage as that percentage of time the
employee regularly | ||||||
24 | works when compared to normal work period.
| ||||||
25 | (c) The basic non-contributory coverage from the basic | ||||||
26 | program of
group health benefits shall be continued for each |
| |||||||
| |||||||
1 | employee not in pay status or
on active service by reason of | ||||||
2 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
3 | educational leave of absence or sabbatical leave, or (3)
| ||||||
4 | military leave. This coverage shall continue until
expiration | ||||||
5 | of authorized leave and return to active service, but not to | ||||||
6 | exceed
24 months for leaves under item (1) or (2). This | ||||||
7 | 24-month limitation and the
requirement of returning to active | ||||||
8 | service shall not apply to persons receiving
ordinary or | ||||||
9 | accidental disability benefits or retirement benefits through | ||||||
10 | the
appropriate State retirement system or benefits under the | ||||||
11 | Workers' Compensation
or Occupational Disease Act.
| ||||||
12 | (d) The basic group life insurance coverage shall continue, | ||||||
13 | with
full State contribution, where such person is (1) absent | ||||||
14 | from active
service by reason of disability arising from any | ||||||
15 | cause other than
self-inflicted, (2) on authorized educational | ||||||
16 | leave of absence or
sabbatical leave, or (3) on military leave.
| ||||||
17 | (e) Where the person is in non-pay status for a period in | ||||||
18 | excess of
30 days or on leave of absence, other than by reason | ||||||
19 | of disability,
educational or sabbatical leave, or military | ||||||
20 | leave, such
person may continue coverage only by making | ||||||
21 | personal
payment equal to the amount normally contributed by | ||||||
22 | the State on such person's
behalf. Such payments and coverage | ||||||
23 | may be continued: (1) until such time as
the person returns to | ||||||
24 | a status eligible for coverage at State expense, but not
to | ||||||
25 | exceed 24 months or (2) until such person's employment or | ||||||
26 | annuitant status
with the State is terminated (exclusive of any |
| |||||||
| |||||||
1 | additional service imposed pursuant to law).
| ||||||
2 | (f) The Department shall establish by rule the extent to | ||||||
3 | which other
employee benefits will continue for persons in | ||||||
4 | non-pay status or who are
not in active service.
| ||||||
5 | (g) The State shall not pay the cost of the basic | ||||||
6 | non-contributory
group life insurance, program of health | ||||||
7 | benefits and other employee benefits
for members who are | ||||||
8 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
9 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
10 | survivors shall be paid by the survivors or by the University | ||||||
11 | of Illinois
Cooperative Extension Service, or any combination | ||||||
12 | thereof.
However, the State shall pay the amount of the | ||||||
13 | reduction in the cost of
participation, if any, resulting from | ||||||
14 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
15 | the 91st General Assembly.
| ||||||
16 | (h) Those persons occupying positions with any department | ||||||
17 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
18 | of the Personnel Code
who are not considered employees under | ||||||
19 | this Act shall be given the option
of participating in the | ||||||
20 | programs of group life insurance, health benefits and
other | ||||||
21 | employee benefits. Such persons electing coverage may | ||||||
22 | participate only
by making payment equal to the amount normally | ||||||
23 | contributed by the State for
similarly situated employees. Such | ||||||
24 | amounts shall be determined by the
Director. Such payments and | ||||||
25 | coverage may be continued until such time as the
person becomes | ||||||
26 | an employee pursuant to this Act or such person's appointment |
| |||||||
| |||||||
1 | is
terminated.
| ||||||
2 | (i) Any unit of local government within the State of | ||||||
3 | Illinois
may apply to the Director to have its employees, | ||||||
4 | annuitants, and their
dependents provided group health | ||||||
5 | coverage under this Act on a non-insured
basis. To participate, | ||||||
6 | a unit of local government must agree to enroll
all of its | ||||||
7 | employees, who may select coverage under either the State group
| ||||||
8 | health benefits plan or a health maintenance organization that | ||||||
9 | has
contracted with the State to be available as a health care | ||||||
10 | provider for
employees as defined in this Act. A unit of local | ||||||
11 | government must remit the
entire cost of providing coverage | ||||||
12 | under the State group health benefits plan
or, for coverage | ||||||
13 | under a health maintenance organization, an amount determined
| ||||||
14 | by the Director based on an analysis of the sex, age, | ||||||
15 | geographic location, or
other relevant demographic variables | ||||||
16 | for its employees, except that the unit of
local government | ||||||
17 | shall not be required to enroll those of its employees who are
| ||||||
18 | covered spouses or dependents under this plan or another group | ||||||
19 | policy or plan
providing health benefits as long as (1) an | ||||||
20 | appropriate official from the unit
of local government attests | ||||||
21 | that each employee not enrolled is a covered spouse
or | ||||||
22 | dependent under this plan or another group policy or plan, and | ||||||
23 | (2) at least
50% of the employees are enrolled and the unit of | ||||||
24 | local government remits
the entire cost of providing coverage | ||||||
25 | to those employees, except that a
participating school district | ||||||
26 | must have enrolled at least 50% of its full-time
employees who |
| |||||||
| |||||||
1 | have not waived coverage under the district's group health
plan | ||||||
2 | by participating in a component of the district's cafeteria | ||||||
3 | plan. A
participating school district is not required to enroll | ||||||
4 | a full-time employee
who has waived coverage under the | ||||||
5 | district's health plan, provided that an
appropriate official | ||||||
6 | from the participating school district attests that the
| ||||||
7 | full-time employee has waived coverage by participating in a | ||||||
8 | component of the
district's cafeteria plan. For the purposes of | ||||||
9 | this subsection, "participating
school district" includes a | ||||||
10 | unit of local government whose primary purpose is
education as | ||||||
11 | defined by the Department's rules.
| ||||||
12 | Employees of a participating unit of local government who | ||||||
13 | are not enrolled
due to coverage under another group health | ||||||
14 | policy or plan may enroll in
the event of a qualifying change | ||||||
15 | in status, special enrollment, special
circumstance as defined | ||||||
16 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
17 | participating unit of local government may also elect to cover | ||||||
18 | its
annuitants. Dependent coverage shall be offered on an | ||||||
19 | optional basis, with the
costs paid by the unit of local | ||||||
20 | government, its employees, or some combination
of the two as | ||||||
21 | determined by the unit of local government. The unit of local
| ||||||
22 | government shall be responsible for timely collection and | ||||||
23 | transmission of
dependent premiums.
| ||||||
24 | The Director shall annually determine monthly rates of | ||||||
25 | payment, subject
to the following constraints:
| ||||||
26 | (1) In the first year of coverage, the rates shall be |
| |||||||
| |||||||
1 | equal to the
amount normally charged to State employees for | ||||||
2 | elected optional coverages
or for enrolled dependents | ||||||
3 | coverages or other contributory coverages, or
contributed | ||||||
4 | by the State for basic insurance coverages on behalf of its
| ||||||
5 | employees, adjusted for differences between State | ||||||
6 | employees and employees
of the local government in age, | ||||||
7 | sex, geographic location or other relevant
demographic | ||||||
8 | variables, plus an amount sufficient to pay for the | ||||||
9 | additional
administrative costs of providing coverage to | ||||||
10 | employees of the unit of
local government and their | ||||||
11 | dependents.
| ||||||
12 | (2) In subsequent years, a further adjustment shall be | ||||||
13 | made to reflect
the actual prior years' claims experience | ||||||
14 | of the employees of the unit of
local government.
| ||||||
15 | In the case of coverage of local government employees under | ||||||
16 | a health
maintenance organization, the Director shall annually | ||||||
17 | determine for each
participating unit of local government the | ||||||
18 | maximum monthly amount the unit
may contribute toward that | ||||||
19 | coverage, based on an analysis of (i) the age,
sex, geographic | ||||||
20 | location, and other relevant demographic variables of the
| ||||||
21 | unit's employees and (ii) the cost to cover those employees | ||||||
22 | under the State
group health benefits plan. The Director may | ||||||
23 | similarly determine the
maximum monthly amount each unit of | ||||||
24 | local government may contribute toward
coverage of its | ||||||
25 | employees' dependents under a health maintenance organization.
| ||||||
26 | Monthly payments by the unit of local government or its |
| |||||||
| |||||||
1 | employees for
group health benefits plan or health maintenance | ||||||
2 | organization coverage shall
be deposited in the Local | ||||||
3 | Government Health Insurance Reserve Fund.
| ||||||
4 | The Local Government Health Insurance Reserve Fund is | ||||||
5 | hereby created as a nonappropriated trust fund to be held | ||||||
6 | outside the State Treasury, with the State Treasurer as | ||||||
7 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
8 | shall be a continuing
fund not subject to fiscal year | ||||||
9 | limitations. The Local Government Health Insurance Reserve | ||||||
10 | Fund is not subject to administrative charges or charge-backs, | ||||||
11 | including but not limited to those authorized under Section 8h | ||||||
12 | of the State Finance Act. All revenues arising from the | ||||||
13 | administration of the health benefits program established | ||||||
14 | under this Section shall be deposited into the Local Government | ||||||
15 | Health Insurance Reserve Fund. Any interest earned on moneys in | ||||||
16 | the Local Government Health Insurance Reserve Fund shall be | ||||||
17 | deposited into the Fund. All expenditures from this Fund
shall | ||||||
18 | be used for payments for health care benefits for local | ||||||
19 | government and rehabilitation facility
employees, annuitants, | ||||||
20 | and dependents, and to reimburse the Department or
its | ||||||
21 | administrative service organization for all expenses incurred | ||||||
22 | in the
administration of benefits. No other State funds may be | ||||||
23 | used for these
purposes.
| ||||||
24 | A local government employer's participation or desire to | ||||||
25 | participate
in a program created under this subsection shall | ||||||
26 | not limit that employer's
duty to bargain with the |
| |||||||
| |||||||
1 | representative of any collective bargaining unit
of its | ||||||
2 | employees.
| ||||||
3 | (j) Any rehabilitation facility within the State of | ||||||
4 | Illinois may apply
to the Director to have its employees, | ||||||
5 | annuitants, and their eligible
dependents provided group | ||||||
6 | health coverage under this Act on a non-insured
basis. To | ||||||
7 | participate, a rehabilitation facility must agree to enroll all
| ||||||
8 | of its employees and remit the entire cost of providing such | ||||||
9 | coverage for
its employees, except that the rehabilitation | ||||||
10 | facility shall not be
required to enroll those of its employees | ||||||
11 | who are covered spouses or
dependents under this plan or | ||||||
12 | another group policy or plan providing health
benefits as long | ||||||
13 | as (1) an appropriate official from the rehabilitation
facility | ||||||
14 | attests that each employee not enrolled is a covered spouse or
| ||||||
15 | dependent under this plan or another group policy or plan, and | ||||||
16 | (2) at least
50% of the employees are enrolled and the | ||||||
17 | rehabilitation facility remits
the entire cost of providing | ||||||
18 | coverage to those employees. Employees of a
participating | ||||||
19 | rehabilitation facility who are not enrolled due to coverage
| ||||||
20 | under another group health policy or plan may enroll
in the | ||||||
21 | event of a qualifying change in status, special enrollment, | ||||||
22 | special
circumstance as defined by the Director, or during the | ||||||
23 | annual Benefit Choice
Period. A participating rehabilitation | ||||||
24 | facility may also elect
to cover its annuitants. Dependent | ||||||
25 | coverage shall be offered on an optional
basis, with the costs | ||||||
26 | paid by the rehabilitation facility, its employees, or
some |
| |||||||
| |||||||
1 | combination of the 2 as determined by the rehabilitation | ||||||
2 | facility. The
rehabilitation facility shall be responsible for | ||||||
3 | timely collection and
transmission of dependent premiums.
| ||||||
4 | The Director shall annually determine quarterly rates of | ||||||
5 | payment, subject
to the following constraints:
| ||||||
6 | (1) In the first year of coverage, the rates shall be | ||||||
7 | equal to the amount
normally charged to State employees for | ||||||
8 | elected optional coverages or for
enrolled dependents | ||||||
9 | coverages or other contributory coverages on behalf of
its | ||||||
10 | employees, adjusted for differences between State | ||||||
11 | employees and
employees of the rehabilitation facility in | ||||||
12 | age, sex, geographic location
or other relevant | ||||||
13 | demographic variables, plus an amount sufficient to pay
for | ||||||
14 | the additional administrative costs of providing coverage | ||||||
15 | to employees
of the rehabilitation facility and their | ||||||
16 | dependents.
| ||||||
17 | (2) In subsequent years, a further adjustment shall be | ||||||
18 | made to reflect
the actual prior years' claims experience | ||||||
19 | of the employees of the
rehabilitation facility.
| ||||||
20 | Monthly payments by the rehabilitation facility or its | ||||||
21 | employees for
group health benefits shall be deposited in the | ||||||
22 | Local Government Health
Insurance Reserve Fund.
| ||||||
23 | (k) Any domestic violence shelter or service within the | ||||||
24 | State of Illinois
may apply to the Director to have its | ||||||
25 | employees, annuitants, and their
dependents provided group | ||||||
26 | health coverage under this Act on a non-insured
basis. To |
| |||||||
| |||||||
1 | participate, a domestic violence shelter or service must agree | ||||||
2 | to
enroll all of its employees and pay the entire cost of | ||||||
3 | providing such coverage
for its employees. The domestic | ||||||
4 | violence shelter shall not be required to enroll those of its | ||||||
5 | employees who are covered spouses or dependents under this plan | ||||||
6 | or another group policy or plan providing health benefits as | ||||||
7 | long as (1) an appropriate official from the domestic violence | ||||||
8 | shelter attests that each employee not enrolled is a covered | ||||||
9 | spouse or dependent under this plan or another group policy or | ||||||
10 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
11 | domestic violence shelter remits the entire cost of providing | ||||||
12 | coverage to those employees. Employees of a participating | ||||||
13 | domestic violence shelter who are not enrolled due to coverage | ||||||
14 | under another group health policy or plan may enroll in the | ||||||
15 | event of a qualifying change in status, special enrollment, or | ||||||
16 | special circumstance as defined by the Director or during the | ||||||
17 | annual Benefit Choice Period. A participating domestic | ||||||
18 | violence shelter may also elect
to cover its annuitants. | ||||||
19 | Dependent coverage shall be offered on an optional
basis, with
| ||||||
20 | employees, or some combination of the 2 as determined by the | ||||||
21 | domestic violence
shelter or service. The domestic violence | ||||||
22 | shelter or service shall be
responsible for timely collection | ||||||
23 | and transmission of dependent premiums.
| ||||||
24 | The Director shall annually determine rates of payment,
| ||||||
25 | subject to the following constraints:
| ||||||
26 | (1) In the first year of coverage, the rates shall be |
| |||||||
| |||||||
1 | equal to the
amount normally charged to State employees for | ||||||
2 | elected optional coverages
or for enrolled dependents | ||||||
3 | coverages or other contributory coverages on
behalf of its | ||||||
4 | employees, adjusted for differences between State | ||||||
5 | employees and
employees of the domestic violence shelter or | ||||||
6 | service in age, sex, geographic
location or other relevant | ||||||
7 | demographic variables, plus an amount sufficient
to pay for | ||||||
8 | the additional administrative costs of providing coverage | ||||||
9 | to
employees of the domestic violence shelter or service | ||||||
10 | and their dependents.
| ||||||
11 | (2) In subsequent years, a further adjustment shall be | ||||||
12 | made to reflect
the actual prior years' claims experience | ||||||
13 | of the employees of the domestic
violence shelter or | ||||||
14 | service.
| ||||||
15 | Monthly payments by the domestic violence shelter or | ||||||
16 | service or its employees
for group health insurance shall be | ||||||
17 | deposited in the Local Government Health
Insurance Reserve | ||||||
18 | Fund.
| ||||||
19 | (l) A public community college or entity organized pursuant | ||||||
20 | to the
Public Community College Act may apply to the Director | ||||||
21 | initially to have
only annuitants not covered prior to July 1, | ||||||
22 | 1992 by the district's health
plan provided health coverage | ||||||
23 | under this Act on a non-insured basis. The
community college | ||||||
24 | must execute a 2-year contract to participate in the
Local | ||||||
25 | Government Health Plan.
Any annuitant may enroll in the event | ||||||
26 | of a qualifying change in status, special
enrollment, special |
| |||||||
| |||||||
1 | circumstance as defined by the Director, or during the
annual | ||||||
2 | Benefit Choice Period.
| ||||||
3 | The Director shall annually determine monthly rates of | ||||||
4 | payment subject to
the following constraints: for those | ||||||
5 | community colleges with annuitants
only enrolled, first year | ||||||
6 | rates shall be equal to the average cost to cover
claims for a | ||||||
7 | State member adjusted for demographics, Medicare
| ||||||
8 | participation, and other factors; and in the second year, a | ||||||
9 | further adjustment
of rates shall be made to reflect the actual | ||||||
10 | first year's claims experience
of the covered annuitants.
| ||||||
11 | (l-5) The provisions of subsection (l) become inoperative | ||||||
12 | on July 1, 1999.
| ||||||
13 | (m) The Director shall adopt any rules deemed necessary for
| ||||||
14 | implementation of this amendatory Act of 1989 (Public Act | ||||||
15 | 86-978).
| ||||||
16 | (n) Any child advocacy center within the State of Illinois | ||||||
17 | may apply to the Director to have its employees, annuitants, | ||||||
18 | and their dependents provided group health coverage under this | ||||||
19 | Act on a non-insured basis. To participate, a child advocacy | ||||||
20 | center must agree to enroll all of its employees and pay the | ||||||
21 | entire cost of providing coverage for its employees. The child
| ||||||
22 | advocacy center shall not be required to enroll those of its
| ||||||
23 | employees who are covered spouses or dependents under this plan
| ||||||
24 | or another group policy or plan providing health benefits as
| ||||||
25 | long as (1) an appropriate official from the child advocacy
| ||||||
26 | center attests that each employee not enrolled is a covered
|
| |||||||
| |||||||
1 | spouse or dependent under this plan or another group policy or
| ||||||
2 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
3 | child advocacy center remits the entire cost of providing | ||||||
4 | coverage to those employees. Employees of a participating child | ||||||
5 | advocacy center who are not enrolled due to coverage under | ||||||
6 | another group health policy or plan may enroll in the event of | ||||||
7 | a qualifying change in status, special enrollment, or special | ||||||
8 | circumstance as defined by the Director or during the annual | ||||||
9 | Benefit Choice Period. A participating child advocacy center | ||||||
10 | may also elect to cover its annuitants. Dependent coverage | ||||||
11 | shall be offered on an optional basis, with the costs paid by | ||||||
12 | the child advocacy center, its employees, or some combination | ||||||
13 | of the 2 as determined by the child advocacy center. The child | ||||||
14 | advocacy center shall be responsible for timely collection and | ||||||
15 | transmission of dependent premiums. | ||||||
16 | The Director shall annually determine rates of payment, | ||||||
17 | subject to the following constraints: | ||||||
18 | (1) In the first year of coverage, the rates shall be | ||||||
19 | equal to the amount normally charged to State employees for | ||||||
20 | elected optional coverages or for enrolled dependents | ||||||
21 | coverages or other contributory coverages on behalf of its | ||||||
22 | employees, adjusted for differences between State | ||||||
23 | employees and employees of the child advocacy center in | ||||||
24 | age, sex, geographic location, or other relevant | ||||||
25 | demographic variables, plus an amount sufficient to pay for | ||||||
26 | the additional administrative costs of providing coverage |
| |||||||
| |||||||
1 | to employees of the child advocacy center and their | ||||||
2 | dependents. | ||||||
3 | (2) In subsequent years, a further adjustment shall be | ||||||
4 | made to reflect the actual prior years' claims experience | ||||||
5 | of the employees of the child advocacy center. | ||||||
6 | Monthly payments by the child advocacy center or its | ||||||
7 | employees for group health insurance shall be deposited into | ||||||
8 | the Local Government Health Insurance Reserve Fund. | ||||||
9 | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
| ||||||
10 | Section 10. The Illinois Finance Authority Act is amended | ||||||
11 | by changing Section 801-40 as follows:
| ||||||
12 | (20 ILCS 3501/801-40)
| ||||||
13 | Sec. 801-40. In addition to the powers otherwise authorized | ||||||
14 | by law and in
addition to the foregoing general corporate | ||||||
15 | powers, the Authority shall also
have the following additional | ||||||
16 | specific powers to be exercised in furtherance of
the purposes | ||||||
17 | of this Act.
| ||||||
18 | (a) The Authority shall have power (i) to accept grants, | ||||||
19 | loans or
appropriations from the federal government or the | ||||||
20 | State, or any agency or
instrumentality thereof, to be used for | ||||||
21 | the operating expenses of the
Authority,
or for any purposes of | ||||||
22 | the Authority, including the making of direct loans of
such | ||||||
23 | funds with respect to projects, and (ii) to enter into any | ||||||
24 | agreement with
the federal government or the State, or any |
| |||||||
| |||||||
1 | agency or instrumentality thereof,
in relationship to such | ||||||
2 | grants, loans or appropriations.
| ||||||
3 | (b) The Authority shall have power to procure and enter | ||||||
4 | into contracts for
any
type of insurance and indemnity | ||||||
5 | agreements covering loss or damage to property
from any cause, | ||||||
6 | including loss of use and occupancy, or covering any other
| ||||||
7 | insurable risk.
| ||||||
8 | (c) The Authority shall have the continuing power to issue | ||||||
9 | bonds for its
corporate purposes. Bonds may be issued by the | ||||||
10 | Authority in one or more series
and may provide for the payment | ||||||
11 | of any interest deemed necessary on such bonds,
of the costs of | ||||||
12 | issuance of such bonds, of any premium on any insurance, or of
| ||||||
13 | the cost of any guarantees, letters of credit or other similar | ||||||
14 | documents, may
provide for the funding of the reserves deemed | ||||||
15 | necessary in connection with
such bonds, and may provide for | ||||||
16 | the refunding or advance refunding of any bonds
or
for accounts | ||||||
17 | deemed necessary in connection with any purpose of the | ||||||
18 | Authority.
The bonds may bear interest payable at any time or | ||||||
19 | times and at any rate or
rates, notwithstanding any other | ||||||
20 | provision of law to the contrary, and such
rate or rates may be | ||||||
21 | established by an index or formula which may be
implemented or
| ||||||
22 | established by persons appointed or retained therefor by the | ||||||
23 | Authority, or may
bear no interest or may bear interest payable | ||||||
24 | at maturity or upon redemption
prior to maturity, may bear such | ||||||
25 | date or dates, may be payable at such time or
times and at such | ||||||
26 | place or places, may mature at any time or times not later
than |
| |||||||
| |||||||
1 | 40 years from the date of issuance, may be sold at public or | ||||||
2 | private sale
at such time or times and at such price or prices, | ||||||
3 | may be secured by such
pledges, reserves, guarantees, letters | ||||||
4 | of credit, insurance contracts or other
similar credit support | ||||||
5 | or liquidity instruments, may be executed in such
manner, may | ||||||
6 | be subject to redemption prior to maturity, may provide for the
| ||||||
7 | registration of the bonds, and may be subject to such other | ||||||
8 | terms and
conditions all as may
be provided by the resolution | ||||||
9 | or indenture authorizing the issuance of such
bonds. The holder | ||||||
10 | or holders of any bonds issued by the Authority may bring
suits | ||||||
11 | at law or proceedings in equity to compel the performance and | ||||||
12 | observance
by any person or by the Authority or any of its | ||||||
13 | agents or employees of any
contract or covenant made with the | ||||||
14 | holders of such bonds and to compel such
person or the | ||||||
15 | Authority and any of its agents or employees to perform any
| ||||||
16 | duties
required to be performed for the benefit of the holders | ||||||
17 | of any such bonds by
the provision of the resolution | ||||||
18 | authorizing their issuance, and to enjoin such
person or the | ||||||
19 | Authority and any of its agents or employees from taking any
| ||||||
20 | action in conflict with any such contract or covenant.
| ||||||
21 | Notwithstanding the form and tenor of any such bonds and in the | ||||||
22 | absence of any
express recital on the face thereof that it is | ||||||
23 | non-negotiable, all such bonds
shall be negotiable | ||||||
24 | instruments. Pending the preparation and execution of any
such | ||||||
25 | bonds, temporary bonds may be issued as provided by the | ||||||
26 | resolution.
The bonds shall be sold by the Authority in such |
| |||||||
| |||||||
1 | manner as it shall determine.
The bonds may be secured as | ||||||
2 | provided in the authorizing resolution by the
receipts, | ||||||
3 | revenues, income and other available funds of the Authority and | ||||||
4 | by
any amounts derived by the Authority from the loan agreement | ||||||
5 | or lease agreement
with respect to the project or projects; and | ||||||
6 | bonds may be issued as general
obligations of the Authority | ||||||
7 | payable from such revenues, funds and obligations
of the | ||||||
8 | Authority as the bond resolution shall provide, or may be | ||||||
9 | issued as
limited obligations with a claim for payment solely | ||||||
10 | from such revenues, funds
and obligations as the bond | ||||||
11 | resolution shall provide. The Authority may grant a
specific | ||||||
12 | pledge or assignment of and lien on or security interest in | ||||||
13 | such
rights, revenues, income, or amounts and may grant a | ||||||
14 | specific pledge or
assignment of and lien on or security | ||||||
15 | interest in any reserves, funds or
accounts established in the | ||||||
16 | resolution authorizing the issuance of bonds. Any
such pledge, | ||||||
17 | assignment, lien or security interest for the benefit of the
| ||||||
18 | holders of the Authority's bonds shall be valid and binding | ||||||
19 | from the time the
bonds are issued without any physical | ||||||
20 | delivery or further act, and shall be
valid and binding as | ||||||
21 | against and prior to the claims of all other parties
having | ||||||
22 | claims against the Authority or any other person irrespective | ||||||
23 | of whether
the
other parties have notice of the pledge, | ||||||
24 | assignment, lien or security interest.
As evidence of such | ||||||
25 | pledge, assignment, lien and security interest, the
Authority | ||||||
26 | may execute and deliver a mortgage, trust agreement, indenture |
| |||||||
| |||||||
1 | or
security agreement or an assignment thereof.
A remedy for | ||||||
2 | any breach or default of the terms of any such agreement by the
| ||||||
3 | Authority may be by mandamus proceedings in any court of | ||||||
4 | competent jurisdiction
to compel the performance and | ||||||
5 | compliance therewith, but the agreement may
prescribe by whom | ||||||
6 | or on whose behalf such action may be instituted.
It is | ||||||
7 | expressly understood that the Authority may, but need not, | ||||||
8 | acquire title
to any project with respect to which it exercises | ||||||
9 | its authority.
| ||||||
10 | (c-5) The Authority shall have the power to issue State | ||||||
11 | Pension Obligation Acceleration Bonds if in any fiscal year the | ||||||
12 | amount appropriated for all accelerated pension benefit | ||||||
13 | payments is less than the amount required for those payments. | ||||||
14 | The proceeds from the State Pension Obligation Acceleration | ||||||
15 | Bonds issued under this subsection may only be used to pay for | ||||||
16 | accelerated pension benefit payments for the fiscal year in | ||||||
17 | which the State Pension Obligation Acceleration Bonds are | ||||||
18 | issued. | ||||||
19 | The Authority shall not
have outstanding at any one time | ||||||
20 | State Pension Obligation Acceleration Bonds for any of the | ||||||
21 | purposes
of this subsection in an aggregate principal amount | ||||||
22 | exceeding
$250,000,000, excluding bonds issued to refund | ||||||
23 | outstanding
State Pension Obligation Acceleration Bonds. | ||||||
24 | (d) With respect to the powers granted by this Act, the | ||||||
25 | Authority may adopt
rules and regulations prescribing the | ||||||
26 | procedures by which persons may apply for
assistance under this |
| |||||||
| |||||||
1 | Act. Nothing herein shall be deemed to preclude the
Authority, | ||||||
2 | prior to the filing of any formal application, from conducting
| ||||||
3 | preliminary discussions and investigations with respect to the | ||||||
4 | subject matter
of any prospective application.
| ||||||
5 | (e) The Authority shall have power to acquire by purchase, | ||||||
6 | lease, gift or
otherwise any property or rights therein from | ||||||
7 | any person useful for its
purposes, whether improved for the | ||||||
8 | purposes of any prospective project, or
unimproved. The | ||||||
9 | Authority may also accept any donation of funds for its
| ||||||
10 | purposes from any such source. The Authority shall have no | ||||||
11 | independent power of
condemnation but may acquire any property | ||||||
12 | or rights therein obtained upon
condemnation by any other | ||||||
13 | authority, governmental entity or unit of local
government with | ||||||
14 | such power.
| ||||||
15 | (f) The Authority shall have power to develop, construct | ||||||
16 | and improve either
under its own direction, or through | ||||||
17 | collaboration with any approved applicant,
or to acquire | ||||||
18 | through purchase or otherwise, any project, using for such
| ||||||
19 | purpose the proceeds derived from the sale of its bonds or from | ||||||
20 | governmental
loans or
grants, and to hold title in the name of | ||||||
21 | the Authority to such projects.
| ||||||
22 | (g) The Authority shall have power to lease pursuant to a | ||||||
23 | lease agreement
any
project so developed and constructed or | ||||||
24 | acquired to the approved tenant on such
terms and conditions as | ||||||
25 | may be appropriate to further the purposes of this Act
and to | ||||||
26 | maintain the credit of the Authority. Any such lease may |
| |||||||
| |||||||
1 | provide for
either the Authority or the approved tenant to | ||||||
2 | assume initially, in whole or in
part, the costs of | ||||||
3 | maintenance, repair and improvements during the leasehold
| ||||||
4 | period. In no case, however, shall the total rentals from any | ||||||
5 | project during
any initial leasehold period or the total loan | ||||||
6 | repayments to be made pursuant
to any loan agreement, be less | ||||||
7 | than an amount necessary to return over such
lease
or loan | ||||||
8 | period (1) all costs incurred in connection with the | ||||||
9 | development,
construction, acquisition or improvement of the | ||||||
10 | project and for repair,
maintenance and improvements thereto | ||||||
11 | during the period of the lease or loan;
provided, however, that | ||||||
12 | the rentals or loan repayments need not include costs
met | ||||||
13 | through the use of funds other than those obtained by the | ||||||
14 | Authority through
the issuance of its bonds or governmental | ||||||
15 | loans; (2) a reasonable percentage
additive to be agreed upon | ||||||
16 | by the Authority and the borrower or tenant to cover
a properly | ||||||
17 | allocable portion of the Authority's general expenses, | ||||||
18 | including,
but not limited to, administrative expenses, | ||||||
19 | salaries and general insurance,
and
(3) an amount sufficient to | ||||||
20 | pay when due all principal of, interest and
premium, if
any on, | ||||||
21 | any bonds issued by the Authority with respect to the project. | ||||||
22 | The
portion of total rentals payable under clause (3) of this | ||||||
23 | subsection (g) shall
be deposited in such special accounts, | ||||||
24 | including all sinking funds, acquisition
or construction | ||||||
25 | funds, debt service and other funds as provided by any
| ||||||
26 | resolution, mortgage or trust agreement of the Authority |
| |||||||
| |||||||
1 | pursuant to which any
bond is issued.
| ||||||
2 | (h) The Authority has the power, upon the termination of | ||||||
3 | any leasehold
period
of any project, to sell or lease for a | ||||||
4 | further term or terms such project on
such terms and conditions | ||||||
5 | as the Authority shall deem reasonable and consistent
with the | ||||||
6 | purposes of the Act. The net proceeds from all such sales and | ||||||
7 | the
revenues or income from such leases shall be used to | ||||||
8 | satisfy any indebtedness
of
the Authority with respect to such | ||||||
9 | project and any balance may be used to pay
any expenses of the | ||||||
10 | Authority or be used for the further development,
construction, | ||||||
11 | acquisition or improvement of projects.
In the event any | ||||||
12 | project is vacated by a tenant prior to the termination of the
| ||||||
13 | initial leasehold period, the Authority shall sell or lease the | ||||||
14 | facilities of
the project on the most advantageous terms | ||||||
15 | available. The net proceeds of any
such disposition shall be | ||||||
16 | treated in the same manner as the proceeds from sales
or the | ||||||
17 | revenues or income from leases subsequent to the termination of | ||||||
18 | any
initial leasehold period.
| ||||||
19 | (i) The Authority shall have the power to make loans to | ||||||
20 | persons to finance a
project, to enter into loan agreements | ||||||
21 | with respect thereto, and to accept
guarantees from persons of | ||||||
22 | its loans or the resultant evidences of obligations
of the | ||||||
23 | Authority.
| ||||||
24 | (j) The Authority may fix, determine, charge and collect | ||||||
25 | any premiums, fees,
charges, costs and expenses, including, | ||||||
26 | without limitation, any application
fees, commitment fees, |
| |||||||
| |||||||
1 | program fees, financing charges or publication fees from
any | ||||||
2 | person in connection with its activities under this Act.
| ||||||
3 | (k) In addition to the funds established as provided | ||||||
4 | herein, the Authority
shall have the power to create and | ||||||
5 | establish such reserve funds and accounts as
may be necessary | ||||||
6 | or desirable to accomplish its purposes under this Act and to
| ||||||
7 | deposit its available monies into the funds and accounts.
| ||||||
8 | (l) At the request of the governing body of any unit of | ||||||
9 | local government,
the
Authority is authorized to market such | ||||||
10 | local government's revenue bond
offerings by preparing bond | ||||||
11 | issues for sale, advertising for sealed bids,
receiving bids
at | ||||||
12 | its offices, making the award to the bidder that offers the | ||||||
13 | most favorable
terms or arranging for negotiated placements or | ||||||
14 | underwritings of such
securities. The Authority may, at its | ||||||
15 | discretion, offer for concurrent sale the
revenue bonds of | ||||||
16 | several local governments. Sales by the Authority of revenue
| ||||||
17 | bonds under this Section shall in no way imply State guarantee | ||||||
18 | of such debt
issue. The Authority may require such financial | ||||||
19 | information from participating
local governments as it deems | ||||||
20 | necessary in order to carry out the purposes of
this subsection | ||||||
21 | (1).
| ||||||
22 | (m) The Authority may make grants to any county to which | ||||||
23 | Division 5-37 of
the
Counties Code is applicable to assist in | ||||||
24 | the financing of capital development,
construction and | ||||||
25 | renovation of new or existing facilities for hospitals and
| ||||||
26 | health care facilities under that Act. Such grants may only be |
| |||||||
| |||||||
1 | made from funds
appropriated for such purposes from the Build | ||||||
2 | Illinois Bond Fund.
| ||||||
3 | (n) The Authority may establish an urban development action | ||||||
4 | grant program
for
the purpose of assisting municipalities in | ||||||
5 | Illinois which are experiencing
severe economic distress to | ||||||
6 | help stimulate economic development activities
needed to aid in | ||||||
7 | economic recovery. The Authority shall determine the types of
| ||||||
8 | activities and projects for which the urban development action | ||||||
9 | grants may be
used, provided that such projects and activities | ||||||
10 | are broadly defined to include
all reasonable projects and | ||||||
11 | activities the primary objectives of which are the
development | ||||||
12 | of viable urban communities, including decent housing and a
| ||||||
13 | suitable living environment, and expansion of economic | ||||||
14 | opportunity, principally
for
persons of low and moderate | ||||||
15 | incomes. The Authority shall enter into grant
agreements from | ||||||
16 | monies appropriated for such purposes from the Build Illinois
| ||||||
17 | Bond Fund. The Authority shall monitor the
use of the grants, | ||||||
18 | and shall provide for audits of the funds as well as
recovery | ||||||
19 | by the Authority of any funds determined to have been spent in
| ||||||
20 | violation of this
subsection (n) or any rule or regulation | ||||||
21 | promulgated hereunder. The Authority
shall provide technical | ||||||
22 | assistance with regard to the effective use of the
urban | ||||||
23 | development action grants. The Authority shall file an annual | ||||||
24 | report to
the
General Assembly concerning the progress of the | ||||||
25 | grant program.
| ||||||
26 | (o) The Authority may establish a Housing Partnership |
| |||||||
| |||||||
1 | Program whereby the
Authority provides zero-interest loans to | ||||||
2 | municipalities for the purpose of
assisting in the financing of | ||||||
3 | projects for the rehabilitation of affordable
multi-family | ||||||
4 | housing for low and moderate income residents. The Authority | ||||||
5 | may
provide such loans only upon a municipality's providing | ||||||
6 | evidence that it has
obtained private funding for the | ||||||
7 | rehabilitation project. The Authority shall
provide 3 State | ||||||
8 | dollars for every 7 dollars obtained by the municipality from
| ||||||
9 | sources other than the State of Illinois. The loans shall be | ||||||
10 | made from monies
appropriated for such purpose from the Build | ||||||
11 | Illinois Bond Fund. The total amount of loans available under | ||||||
12 | the Housing
Partnership Program shall not exceed $30,000,000. | ||||||
13 | State loan monies under this
subsection shall be used only for | ||||||
14 | the acquisition and rehabilitation of
existing
buildings | ||||||
15 | containing 4 or more dwelling units. The terms of any loan made | ||||||
16 | by
the municipality under this subsection shall require | ||||||
17 | repayment of the loan to
the municipality upon any sale or | ||||||
18 | other transfer of the project.
| ||||||
19 | (p) The Authority may award grants to universities and | ||||||
20 | research
institutions,
research consortiums and other | ||||||
21 | not-for-profit entities for the purposes of:
remodeling or | ||||||
22 | otherwise physically altering existing laboratory or research
| ||||||
23 | facilities, expansion or physical additions to existing | ||||||
24 | laboratory or research
facilities, construction of new | ||||||
25 | laboratory or research facilities or
acquisition of modern | ||||||
26 | equipment to support laboratory or research operations
|
| |||||||
| |||||||
1 | provided that
such grants (i) be used solely in support of | ||||||
2 | project and equipment acquisitions
which enhance technology | ||||||
3 | transfer, and (ii) not constitute more than 60 percent
of the | ||||||
4 | total project or acquisition cost.
| ||||||
5 | (q) Grants may be awarded by the Authority to units of | ||||||
6 | local government for
the
purpose of developing the appropriate | ||||||
7 | infrastructure or defraying other costs
to
the local government | ||||||
8 | in support of laboratory or research facilities provided
that | ||||||
9 | such grants may not exceed 40% of the cost to the unit of local
| ||||||
10 | government.
| ||||||
11 | (r) The Authority may establish a Direct Loan Program to | ||||||
12 | make loans to
individuals, partnerships or corporations for the | ||||||
13 | purpose of an industrial
project, as defined in
Section 801-10 | ||||||
14 | of this Act. For the purposes of such program
and not by way of | ||||||
15 | limitation on any other program of the Authority, the
Authority | ||||||
16 | shall have the power to issue bonds, notes, or other evidences | ||||||
17 | of
indebtedness including commercial paper for purposes of | ||||||
18 | providing a fund of
capital from which it may make such loans. | ||||||
19 | The Authority shall have the power
to use any appropriations | ||||||
20 | from the State made especially for the Authority's
Direct Loan | ||||||
21 | Program for additional capital to make such loans or for the
| ||||||
22 | purposes of reserve funds or pledged funds which secure the | ||||||
23 | Authority's
obligations of repayment of any bond, note or other | ||||||
24 | form of indebtedness
established for the purpose of providing | ||||||
25 | capital for which it intends to make
such loans under the | ||||||
26 | Direct Loan Program. For the purpose of obtaining such
capital, |
| |||||||
| |||||||
1 | the Authority may also enter into agreements with financial
| ||||||
2 | institutions and other persons for the purpose of selling loans | ||||||
3 | and developing
a secondary market for such loans.
Loans made | ||||||
4 | under the Direct Loan Program may be in an amount not to exceed
| ||||||
5 | $300,000 and shall be made for a portion of an industrial | ||||||
6 | project which does
not exceed 50% of the total project. No loan | ||||||
7 | may be made by the Authority
unless
approved by the affirmative | ||||||
8 | vote of at least 8 members of the board. The
Authority shall | ||||||
9 | establish procedures and publish rules which shall provide for
| ||||||
10 | the submission, review, and analysis of each direct loan | ||||||
11 | application and which
shall preserve the ability of each board | ||||||
12 | member to reach an individual business
judgment regarding the | ||||||
13 | propriety of making each direct loan. The collective
discretion | ||||||
14 | of the board to approve or disapprove each loan shall be
| ||||||
15 | unencumbered.
The Authority may establish and collect such fees | ||||||
16 | and charges, determine and
enforce such terms and conditions, | ||||||
17 | and charge such interest rates as it
determines to be necessary | ||||||
18 | and appropriate to the successful administration of
the Direct | ||||||
19 | Loan Program. The Authority may require such interests in | ||||||
20 | collateral
and such guarantees as it determines are necessary | ||||||
21 | to project the Authority's
interest in the repayment of the | ||||||
22 | principal and interest of each loan made under
the Direct Loan | ||||||
23 | Program.
| ||||||
24 | (s) The Authority may guarantee private loans to third | ||||||
25 | parties up to a
specified dollar amount in order to promote | ||||||
26 | economic development in this State.
|
| |||||||
| |||||||
1 | (t) The Authority may adopt rules and regulations as may be | ||||||
2 | necessary or
advisable to implement the powers conferred by | ||||||
3 | this Act.
| ||||||
4 | (u) The Authority shall have the power to issue bonds, | ||||||
5 | notes or other
evidences
of indebtedness, which may be used to | ||||||
6 | make loans to units of local government
which are authorized to | ||||||
7 | enter into loan agreements and other documents and to
issue | ||||||
8 | bonds, notes and other evidences of indebtedness for the | ||||||
9 | purpose of
financing the protection of storm sewer outfalls, | ||||||
10 | the construction of adequate
storm sewer outfalls, and the | ||||||
11 | provision for flood protection of sanitary sewage
treatment | ||||||
12 | plans, in counties that have established a stormwater | ||||||
13 | management
planning committee in accordance with
Section | ||||||
14 | 5-1062 of the Counties Code. Any
such loan shall be made by the | ||||||
15 | Authority pursuant to the provisions of
Section
820-5 to 820-60 | ||||||
16 | of this Act. The unit of local government shall pay back to the
| ||||||
17 | Authority the principal amount of the loan, plus annual | ||||||
18 | interest as determined
by the Authority. The Authority shall | ||||||
19 | have the power, subject to appropriations
by the General | ||||||
20 | Assembly, to subsidize or buy down a portion of the interest on
| ||||||
21 | such loans, up to 4% per annum.
| ||||||
22 | (v) The Authority may accept security interests as provided | ||||||
23 | in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
| ||||||
24 | (w) Moral Obligation. In the event that the Authority | ||||||
25 | determines that monies
of the Authority will not be sufficient | ||||||
26 | for the payment of the principal of and
interest on its bonds |
| |||||||
| |||||||
1 | during the next State fiscal year, the Chairperson, as
soon as | ||||||
2 | practicable, shall certify to the Governor the amount required | ||||||
3 | by the
Authority to enable it to pay such principal of and | ||||||
4 | interest on the bonds. The
Governor shall submit the amount so | ||||||
5 | certified to the General Assembly as soon
as
practicable, but | ||||||
6 | no later than the end of the current State fiscal year. This
| ||||||
7 | subsection shall apply only to any bonds or notes as to which | ||||||
8 | the Authority
shall have determined, in the resolution | ||||||
9 | authorizing the issuance of the bonds
or notes, that this | ||||||
10 | subsection shall apply. Whenever the Authority makes such a
| ||||||
11 | determination, that fact shall be plainly stated on the face of | ||||||
12 | the bonds or
notes and that fact shall also be reported to the | ||||||
13 | Governor. In the event of a
withdrawal of moneys from a reserve | ||||||
14 | fund established with respect to any issue
or issues of bonds | ||||||
15 | of the Authority to pay principal or interest on those
bonds,
| ||||||
16 | the Chairperson of the Authority, as soon as practicable, shall | ||||||
17 | certify to the
Governor the amount required to restore the | ||||||
18 | reserve fund to the level required
in the resolution or | ||||||
19 | indenture securing those bonds. The Governor shall submit
the | ||||||
20 | amount so certified to the General Assembly as soon as | ||||||
21 | practicable, but no
later than the end of the current State | ||||||
22 | fiscal year. The Authority shall obtain
written approval from | ||||||
23 | the Governor for any bonds and notes to be issued under
this | ||||||
24 | Section.
In addition to any other bonds authorized to be issued | ||||||
25 | under
Sections 825-60, 825-65(e), 830-25 and 845-5, the | ||||||
26 | principal amount of Authority
bonds outstanding
issued under |
| |||||||
| |||||||
1 | this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS | ||||||
2 | 360/2-6(c), which have
been
assumed by the Authority, shall not | ||||||
3 | exceed $150,000,000. This subsection (w) shall in no way be | ||||||
4 | applied to any bonds issued by the Authority on behalf of the | ||||||
5 | Illinois Power Agency under Section 825-90 of this Act.
| ||||||
6 | (x) The Authority may enter into agreements or contracts | ||||||
7 | with any person necessary or appropriate to place the payment | ||||||
8 | obligations of the Authority under any of its bonds in whole or | ||||||
9 | in part on any interest rate basis, cash flow basis, or other | ||||||
10 | basis desired by the Authority, including without limitation | ||||||
11 | agreements or contracts commonly known as "interest rate swap | ||||||
12 | agreements", "forward payment conversion agreements", and | ||||||
13 | "futures", or agreements or contracts to exchange cash flows or | ||||||
14 | a series of payments, or agreements or contracts, including | ||||||
15 | without limitation agreements or contracts commonly known as | ||||||
16 | "options", "puts", or "calls", to hedge payment, rate spread, | ||||||
17 | or similar exposure; provided that any such agreement or | ||||||
18 | contract shall not constitute an obligation for borrowed money | ||||||
19 | and shall not be taken into account under Section 845-5 of this | ||||||
20 | Act or any other debt limit of the Authority or the State of | ||||||
21 | Illinois.
| ||||||
22 | (y) The Authority shall publish summaries of projects and | ||||||
23 | actions approved by the members of the Authority on its | ||||||
24 | website. These summaries shall include, but not be limited to, | ||||||
25 | information regarding the: | ||||||
26 | (1) project; |
| |||||||
| |||||||
1 | (2) Board's action or actions; | ||||||
2 | (3) purpose of the project; | ||||||
3 | (4) Authority's program and contribution; | ||||||
4 | (5) volume cap; | ||||||
5 | (6) jobs retained; | ||||||
6 | (7) projected new jobs; | ||||||
7 | (8) construction jobs created; | ||||||
8 | (9) estimated sources and uses of funds; | ||||||
9 | (10) financing summary; | ||||||
10 | (11) project summary; | ||||||
11 | (12) business summary; | ||||||
12 | (13) ownership or economic disclosure statement; | ||||||
13 | (14) professional and financial information; | ||||||
14 | (15) service area; and | ||||||
15 | (16) legislative district. | ||||||
16 | The disclosure of information pursuant to this subsection | ||||||
17 | shall comply with the Freedom of Information Act. | ||||||
18 | (Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07; | ||||||
19 | 95-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of | ||||||
20 | P.A. 96-793 for the effective date of changes made by P.A. | ||||||
21 | 96-795) .)
| ||||||
22 | Section 15. The State Finance Act is amended by adding | ||||||
23 | Section 5.878 as follows: | ||||||
24 | (30 ILCS 105/5.878 new) |
| |||||||
| |||||||
1 | Sec. 5.878. The State Pension Obligation Acceleration Bond | ||||||
2 | Fund. | ||||||
3 | Section 20. The Budget Stabilization Act is amended by | ||||||
4 | changing Section 20 as follows: | ||||||
5 | (30 ILCS 122/20) | ||||||
6 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
7 | which has been
held unconstitutional) | ||||||
8 | Sec. 20. Pension Stabilization Fund. | ||||||
9 | (a) The Pension Stabilization Fund is hereby created as a | ||||||
10 | special fund in the State treasury. Moneys in the fund shall be | ||||||
11 | used for the sole purpose of making payments to the designated | ||||||
12 | retirement systems as provided in Section 25.
| ||||||
13 | (b) For each fiscal year through State fiscal year 2020, | ||||||
14 | when the General Assembly's
appropriations and transfers or | ||||||
15 | diversions as required by law
from general funds do not exceed | ||||||
16 | 99% of the
estimated general funds revenues pursuant to | ||||||
17 | subsection (a)
of Section 10, the Comptroller shall transfer | ||||||
18 | from the
General Revenue Fund as provided by this Section a | ||||||
19 | total
amount equal to 0.5% of the estimated general funds | ||||||
20 | revenues
to the Pension Stabilization Fund. | ||||||
21 | (c) For each fiscal year through State fiscal year 2020, | ||||||
22 | when the General Assembly's
appropriations and transfers or | ||||||
23 | diversions as required by law
from general funds do not exceed | ||||||
24 | 98% of the
estimated general funds revenues pursuant to |
| |||||||
| |||||||
1 | subsection (b)
of Section 10, the Comptroller shall transfer | ||||||
2 | from the
General Revenue Fund as provided by this Section a | ||||||
3 | total
amount equal to 1.0% of the estimated general funds | ||||||
4 | revenues
to the Pension Stabilization Fund. | ||||||
5 | (c-5) In addition to any other amounts required to be
| ||||||
6 | transferred under this Section, in State fiscal year 2021 and
| ||||||
7 | each fiscal year thereafter through State fiscal year 2045, or
| ||||||
8 | when each of the designated retirement systems, as defined in
| ||||||
9 | Section 25, has achieved 100% funding, whichever occurs first,
| ||||||
10 | the State Comptroller shall order transferred and the State
| ||||||
11 | Treasurer shall transfer from the General Revenue Fund to the
| ||||||
12 | Pension Stabilization Fund an amount equal to (1) the
sum of | ||||||
13 | the amounts certified by the designated retirement
systems | ||||||
14 | under subsection
(a-10) of Section 14-135.08, subsection | ||||||
15 | (a-10) of Section
15-165, and subsection (a-10) of Section | ||||||
16 | 16-158 of this Code for that fiscal year minus (2) the sum of | ||||||
17 | the required State
contributions certified by the retirement | ||||||
18 | systems under subsection (a-5) of Section
14-135.08, | ||||||
19 | subsection (a-5) of Section 15-165, and subsection
(a-5) of | ||||||
20 | Section 16-158 of this Code for that fiscal year. The
| ||||||
21 | transferred amount is intended to represent the
annual savings | ||||||
22 | to the State resulting from the enactment of
Section 1-161 and | ||||||
23 | Section 14-155.2, the enactment of subsection (a-2) of Section | ||||||
24 | 15-155 and subsection (b-4) of Section 16-158, and the changes | ||||||
25 | made to Section 1-160 by this amendatory Act of the 100th | ||||||
26 | General Assembly. |
| |||||||
| |||||||
1 | (d) The Comptroller shall transfer 1/12 of the total
amount | ||||||
2 | to be transferred each fiscal year under this Section
into the | ||||||
3 | Pension Stabilization Fund on the first day of each
month of | ||||||
4 | that fiscal year or as soon thereafter as possible; except that | ||||||
5 | the final transfer of the fiscal year shall be made as soon as | ||||||
6 | practical after the August 31 following the end of the fiscal | ||||||
7 | year. | ||||||
8 | Until State fiscal year 2021, before Before the final | ||||||
9 | transfer for a fiscal year is made, the Comptroller shall | ||||||
10 | reconcile the estimated general funds revenues used in | ||||||
11 | calculating the other transfers under this Section for that | ||||||
12 | fiscal year with the actual general funds revenues for that | ||||||
13 | fiscal year. The
final transfer for the fiscal year shall be | ||||||
14 | adjusted so that the
total amount transferred under this | ||||||
15 | Section for that fiscal year is equal to the percentage | ||||||
16 | specified in subsection
(b) or (c) of this Section, whichever | ||||||
17 | is applicable, of the actual
general funds revenues for that | ||||||
18 | fiscal year. The actual general funds revenues for the fiscal | ||||||
19 | year shall be calculated in a manner consistent with subsection | ||||||
20 | (c) of
Section 10 of this Act.
| ||||||
21 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
22 | Section 25. The General Obligation Bond Act is amended by | ||||||
23 | changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding | ||||||
24 | Section 7.6 as follows: |
| |||||||
| |||||||
1 | (30 ILCS 330/2) (from Ch. 127, par. 652) | ||||||
2 | Sec. 2. Authorization for Bonds. The State of Illinois is | ||||||
3 | authorized to
issue, sell and provide for the retirement of | ||||||
4 | General Obligation Bonds of
the State of Illinois for the | ||||||
5 | categories and specific purposes expressed in
Sections 2 | ||||||
6 | through 8 of this Act, in the total amount of $50,167,925,743 | ||||||
7 | $49,917,925,743 . | ||||||
8 | The bonds authorized in this Section 2 and in Section 16 of | ||||||
9 | this Act are
herein called "Bonds". | ||||||
10 | Of the total amount of Bonds authorized in this Act, up to | ||||||
11 | $2,200,000,000
in aggregate original principal amount may be | ||||||
12 | issued and sold in accordance
with the Baccalaureate Savings | ||||||
13 | Act in the form of General Obligation
College Savings Bonds. | ||||||
14 | Of the total amount of Bonds authorized in this Act, up to | ||||||
15 | $300,000,000 in
aggregate original principal amount may be | ||||||
16 | issued and sold in accordance
with the Retirement Savings Act | ||||||
17 | in the form of General Obligation
Retirement Savings Bonds. | ||||||
18 | Of the total amount of Bonds authorized in this Act, the | ||||||
19 | additional
$10,000,000,000 authorized by Public Act 93-2, the | ||||||
20 | $3,466,000,000 authorized by Public Act 96-43, and the | ||||||
21 | $4,096,348,300 authorized by Public Act 96-1497 shall be used | ||||||
22 | solely as provided in Section 7.2. | ||||||
23 | Of the total amount of Bonds authorized in this Act, the | ||||||
24 | additional $250,000,000 authorized by this amendatory Act of | ||||||
25 | the 100th General Assembly shall be used solely as provided in | ||||||
26 | Section 7.6. |
| |||||||
| |||||||
1 | The issuance and sale of Bonds pursuant to the General | ||||||
2 | Obligation Bond
Act is an economical and efficient method of | ||||||
3 | financing the long-term capital needs of
the State. This Act | ||||||
4 | will permit the issuance of a multi-purpose General
Obligation | ||||||
5 | Bond with uniform terms and features. This will not only lower
| ||||||
6 | the cost of registration but also reduce the overall cost of | ||||||
7 | issuing debt
by improving the marketability of Illinois General | ||||||
8 | Obligation Bonds. | ||||||
9 | (Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12; | ||||||
10 | 97-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff. | ||||||
11 | 8-16-13; 98-781, eff. 7-22-14.) | ||||||
12 | (30 ILCS 330/2.5) | ||||||
13 | Sec. 2.5. Limitation on issuance of Bonds. | ||||||
14 | (a) Except as provided in subsection (b), no Bonds may be | ||||||
15 | issued if, after the issuance, in the next State fiscal year | ||||||
16 | after the issuance of the Bonds, the amount of debt service | ||||||
17 | (including principal, whether payable at maturity or pursuant | ||||||
18 | to mandatory sinking fund installments, and interest) on all | ||||||
19 | then-outstanding Bonds, other than (i) Bonds authorized by this | ||||||
20 | amendatory Act of the 100th General Assembly, (ii) Bonds | ||||||
21 | authorized by Public Act 96-43 , and (iii) other than Bonds | ||||||
22 | authorized by Public Act 96-1497, would exceed 7% of the | ||||||
23 | aggregate appropriations from the general funds (which consist | ||||||
24 | of the General Revenue Fund, the Common School Fund, the | ||||||
25 | General Revenue Common School Special Account Fund, and the |
| |||||||
| |||||||
1 | Education Assistance Fund) and the Road Fund for the fiscal | ||||||
2 | year immediately prior to the fiscal year of the issuance. | ||||||
3 | (b) If the Comptroller and Treasurer each consent in | ||||||
4 | writing, Bonds may be issued even if the issuance does not | ||||||
5 | comply with subsection (a). In addition, $2,000,000,000 in | ||||||
6 | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | ||||||
7 | and $2,000,000,000 in Refunding Bonds under Section 16, may be | ||||||
8 | issued during State fiscal year 2017 without complying with | ||||||
9 | subsection (a).
| ||||||
10 | (Source: P.A. 99-523, eff. 6-30-16.) | ||||||
11 | (30 ILCS 330/7.6 new) | ||||||
12 | Sec. 7.6. State Pension Obligation Acceleration Bonds. | ||||||
13 | (a) As used in this Act, "State Pension Obligation | ||||||
14 | Acceleration Bonds" means Bonds authorized by this amendatory | ||||||
15 | Act of the 100th General Assembly and used for the purposes set | ||||||
16 | forth in subsection (c-5) of Section 801-40 of the Illinois | ||||||
17 | Finance Authority Act. | ||||||
18 | (b) State Pension Obligation Acceleration Bonds in the | ||||||
19 | amount of $250,000,000 are hereby authorized to be used for the | ||||||
20 | purposes set forth in subsection (c-5) of Section 801-40 of the | ||||||
21 | Illinois Finance Authority Act. | ||||||
22 | (c) The proceeds of State Pension Obligation Acceleration | ||||||
23 | Bonds authorized in subsection (b) of this Section, less the | ||||||
24 | amounts authorized in the Bond Sale Order to be directly paid | ||||||
25 | out for bond sale expenses under Section 8, shall be deposited |
| |||||||
| |||||||
1 | directly into the State Pension Obligation Acceleration Bond | ||||||
2 | Fund, and the Comptroller and the Treasurer shall, as soon as | ||||||
3 | practical, make payments as contemplated by subsection (c-5) of | ||||||
4 | Section 801-40 of the Illinois Finance Authority Act. | ||||||
5 | (d) There is created the State Pension Obligation | ||||||
6 | Acceleration Bond Fund as a special fund in the State Treasury. | ||||||
7 | Funds deposited in the State Pension Obligation Acceleration | ||||||
8 | Bond Fund may only be used for the purposes set forth in | ||||||
9 | subsection (c-5) of Section 801-40 of the Illinois Finance | ||||||
10 | Authority Act or for the payment of principal and interest due | ||||||
11 | on State Pension Obligation Acceleration Bonds.
| ||||||
12 | (30 ILCS 330/9) (from Ch. 127, par. 659)
| ||||||
13 | Sec. 9. Conditions for Issuance and Sale of Bonds - | ||||||
14 | Requirements for
Bonds. | ||||||
15 | (a) Except as otherwise provided in this subsection and | ||||||
16 | subsection (h) , Bonds shall be issued and sold from time to | ||||||
17 | time, in one or
more series, in such amounts and at such prices | ||||||
18 | as may be directed by the
Governor, upon recommendation by the | ||||||
19 | Director of the
Governor's Office of Management and Budget.
| ||||||
20 | Bonds shall be in such form (either coupon, registered or book | ||||||
21 | entry), in
such denominations, payable within 25 years from | ||||||
22 | their date, subject to such
terms of redemption with or without | ||||||
23 | premium, bear interest payable at
such times and at such fixed | ||||||
24 | or variable rate or rates, and be dated
as shall be fixed and | ||||||
25 | determined by the Director of
the
Governor's Office of |
| |||||||
| |||||||
1 | Management and Budget
in the order authorizing the issuance and | ||||||
2 | sale
of any series of Bonds, which order shall be approved by | ||||||
3 | the Governor
and is herein called a "Bond Sale Order"; provided | ||||||
4 | however, that interest
payable at fixed or variable rates shall | ||||||
5 | not exceed that permitted in the
Bond Authorization Act, as now | ||||||
6 | or hereafter amended. Bonds shall be
payable at such place or | ||||||
7 | places, within or without the State of Illinois, and
may be | ||||||
8 | made registrable as to either principal or as to both principal | ||||||
9 | and
interest, as shall be specified in the Bond Sale Order. | ||||||
10 | Bonds may be callable
or subject to purchase and retirement or | ||||||
11 | tender and remarketing as fixed
and determined in the Bond Sale | ||||||
12 | Order. Bonds, other than Bonds issued under Section 3 of this | ||||||
13 | Act for the costs associated with the purchase and | ||||||
14 | implementation of information technology, (i) except for | ||||||
15 | refunding Bonds satisfying the requirements of Section 16 of | ||||||
16 | this Act and sold during fiscal year 2009, 2010, 2011, or 2017 | ||||||
17 | must be issued with principal or mandatory redemption amounts | ||||||
18 | in equal amounts, with the first maturity issued occurring | ||||||
19 | within the fiscal year in which the Bonds are issued or within | ||||||
20 | the next succeeding fiscal year and (ii) must mature or be | ||||||
21 | subject to mandatory redemption each fiscal year thereafter up | ||||||
22 | to 25 years, except for refunding Bonds satisfying the | ||||||
23 | requirements of Section 16 of this Act and sold during fiscal | ||||||
24 | year 2009, 2010, or 2011 which must mature or be subject to | ||||||
25 | mandatory redemption each fiscal year thereafter up to 16 | ||||||
26 | years. Bonds issued under Section 3 of this Act for the costs |
| |||||||
| |||||||
1 | associated with the purchase and implementation of information | ||||||
2 | technology must be issued with principal or mandatory | ||||||
3 | redemption amounts in equal amounts, with the first maturity | ||||||
4 | issued occurring with the fiscal year in which the respective | ||||||
5 | bonds are issued or with the next succeeding fiscal year, with | ||||||
6 | the respective bonds issued maturing or subject to mandatory | ||||||
7 | redemption each fiscal year thereafter up to 10 years. | ||||||
8 | Notwithstanding any provision of this Act to the contrary, the | ||||||
9 | Bonds authorized by Public Act 96-43 shall be payable within 5 | ||||||
10 | years from their date and must be issued with principal or | ||||||
11 | mandatory redemption amounts in equal amounts, with payment of | ||||||
12 | principal or mandatory redemption beginning in the first fiscal | ||||||
13 | year following the fiscal year in which the Bonds are issued.
| ||||||
14 | Notwithstanding any provision of this Act to the contrary, | ||||||
15 | the Bonds authorized by Public Act 96-1497 shall be payable | ||||||
16 | within 8 years from their date and shall be issued with payment | ||||||
17 | of maturing principal or scheduled mandatory redemptions in | ||||||
18 | accordance with the following schedule, except the following | ||||||
19 | amounts shall be prorated if less than the total additional | ||||||
20 | amount of Bonds authorized by Public Act 96-1497 are issued: | ||||||
21 | Fiscal Year After Issuance Amount | ||||||
22 | 1-2 $0 | ||||||
23 | 3 $110,712,120 | ||||||
24 | 4 $332,136,360 | ||||||
25 | 5 $664,272,720 | ||||||
26 | 6-8 $996,409,080 |
| |||||||
| |||||||
1 | In the case of any series of Bonds bearing interest at a | ||||||
2 | variable interest
rate ("Variable Rate Bonds"), in lieu of | ||||||
3 | determining the rate or rates at which
such series of Variable | ||||||
4 | Rate Bonds shall bear interest and the price or prices
at which | ||||||
5 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
6 | (in the
event of purchase and subsequent resale), the Bond Sale | ||||||
7 | Order may provide that
such interest rates and prices may vary | ||||||
8 | from time to time depending on criteria
established in such | ||||||
9 | Bond Sale Order, which criteria may include, without
| ||||||
10 | limitation, references to indices or variations in interest | ||||||
11 | rates as may, in
the judgment of a remarketing agent, be | ||||||
12 | necessary to cause Variable Rate Bonds
of such series to be | ||||||
13 | remarketable from time to time at a price equal to their
| ||||||
14 | principal amount, and may provide for appointment of a bank, | ||||||
15 | trust company,
investment bank, or other financial institution | ||||||
16 | to serve as remarketing agent
in that connection.
The Bond Sale | ||||||
17 | Order may provide that alternative interest rates or provisions
| ||||||
18 | for establishing alternative interest rates, different | ||||||
19 | security or claim
priorities, or different call or amortization | ||||||
20 | provisions will apply during
such times as Variable Rate Bonds | ||||||
21 | of any series are held by a person providing
credit or | ||||||
22 | liquidity enhancement arrangements for such Bonds as | ||||||
23 | authorized in
subsection (b) of this Section.
The Bond Sale | ||||||
24 | Order may also provide for such variable interest rates to be
| ||||||
25 | established pursuant to a process generally known as an auction | ||||||
26 | rate process
and may provide for appointment of one or more |
| |||||||
| |||||||
1 | financial institutions to serve
as auction agents and | ||||||
2 | broker-dealers in connection with the establishment of
such | ||||||
3 | interest rates and the sale and remarketing of such Bonds.
| ||||||
4 | (b) In connection with the issuance of any series of Bonds, | ||||||
5 | the State may
enter into arrangements to provide additional | ||||||
6 | security and liquidity for such
Bonds, including, without | ||||||
7 | limitation, bond or interest rate insurance or
letters of | ||||||
8 | credit, lines of credit, bond purchase contracts, or other
| ||||||
9 | arrangements whereby funds are made available to retire or | ||||||
10 | purchase Bonds,
thereby assuring the ability of owners of the | ||||||
11 | Bonds to sell or redeem their
Bonds. The State may enter into | ||||||
12 | contracts and may agree to pay fees to persons
providing such | ||||||
13 | arrangements, but only under circumstances where the Director | ||||||
14 | of
the
Governor's Office of Management and Budget certifies | ||||||
15 | that he or she reasonably expects the total
interest paid or to | ||||||
16 | be paid on the Bonds, together with the fees for the
| ||||||
17 | arrangements (being treated as if interest), would not, taken | ||||||
18 | together, cause
the Bonds to bear interest, calculated to their | ||||||
19 | stated maturity, at a rate in
excess of the rate that the Bonds | ||||||
20 | would bear in the absence of such
arrangements.
| ||||||
21 | The State may, with respect to Bonds issued or anticipated | ||||||
22 | to be issued,
participate in and enter into arrangements with | ||||||
23 | respect to interest rate
protection or exchange agreements, | ||||||
24 | guarantees, or financial futures contracts
for the purpose of | ||||||
25 | limiting, reducing, or managing interest rate exposure.
The | ||||||
26 | authority granted under this paragraph, however, shall not |
| |||||||
| |||||||
1 | increase the principal amount of Bonds authorized to be issued | ||||||
2 | by law. The arrangements may be executed and delivered by the | ||||||
3 | Director
of the
Governor's Office of Management and Budget on | ||||||
4 | behalf of the State. Net payments for such
arrangements shall | ||||||
5 | constitute interest on the Bonds and shall be paid from the
| ||||||
6 | General Obligation Bond Retirement and Interest Fund. The | ||||||
7 | Director of the
Governor's Office of Management and Budget | ||||||
8 | shall at least annually certify to the Governor and
the
State | ||||||
9 | Comptroller his or her estimate of the amounts of such net | ||||||
10 | payments to
be included in the calculation of interest required | ||||||
11 | to be paid by the State.
| ||||||
12 | (c) Prior to the issuance of any Variable Rate Bonds | ||||||
13 | pursuant to
subsection (a), the Director of the
Governor's | ||||||
14 | Office of Management and Budget shall adopt an
interest rate | ||||||
15 | risk management policy providing that the amount of the State's
| ||||||
16 | variable rate exposure with respect to Bonds shall not exceed | ||||||
17 | 20%. This policy
shall remain in effect while any Bonds are | ||||||
18 | outstanding and the issuance of
Bonds
shall be subject to the | ||||||
19 | terms of such policy. The terms of this policy may be
amended | ||||||
20 | from time to time by the Director of the
Governor's Office of | ||||||
21 | Management and Budget but in no
event shall any amendment cause | ||||||
22 | the permitted level of the State's variable
rate exposure with | ||||||
23 | respect to Bonds to exceed 20%.
| ||||||
24 | (d) "Build America Bonds" in this Section means Bonds | ||||||
25 | authorized by Section 54AA of the Internal Revenue Code of | ||||||
26 | 1986, as amended ("Internal Revenue Code"), and bonds issued |
| |||||||
| |||||||
1 | from time to time to refund or continue to refund "Build | ||||||
2 | America Bonds". | ||||||
3 | (e) Notwithstanding any other provision of this Section, | ||||||
4 | Qualified School Construction Bonds shall be issued and sold | ||||||
5 | from time to time, in one or more series, in such amounts and | ||||||
6 | at such prices as may be directed by the Governor, upon | ||||||
7 | recommendation by the Director of the Governor's Office of | ||||||
8 | Management and Budget. Qualified School Construction Bonds | ||||||
9 | shall be in such form (either coupon, registered or book | ||||||
10 | entry), in such denominations, payable within 25 years from | ||||||
11 | their date, subject to such terms of redemption with or without | ||||||
12 | premium, and if the Qualified School Construction Bonds are | ||||||
13 | issued with a supplemental coupon, bear interest payable at | ||||||
14 | such times and at such fixed or variable rate or rates, and be | ||||||
15 | dated as shall be fixed and determined by the Director of the | ||||||
16 | Governor's Office of Management and Budget in the order | ||||||
17 | authorizing the issuance and sale of any series of Qualified | ||||||
18 | School Construction Bonds, which order shall be approved by the | ||||||
19 | Governor and is herein called a "Bond Sale Order"; except that | ||||||
20 | interest payable at fixed or variable rates, if any, shall not | ||||||
21 | exceed that permitted in the Bond Authorization Act, as now or | ||||||
22 | hereafter amended. Qualified School Construction Bonds shall | ||||||
23 | be payable at such place or places, within or without the State | ||||||
24 | of Illinois, and may be made registrable as to either principal | ||||||
25 | or as to both principal and interest, as shall be specified in | ||||||
26 | the Bond Sale Order. Qualified School Construction Bonds may be |
| |||||||
| |||||||
1 | callable or subject to purchase and retirement or tender and | ||||||
2 | remarketing as fixed and determined in the Bond Sale Order. | ||||||
3 | Qualified School Construction Bonds must be issued with | ||||||
4 | principal or mandatory redemption amounts or sinking fund | ||||||
5 | payments into the General Obligation Bond Retirement and | ||||||
6 | Interest Fund (or subaccount therefor) in equal amounts, with | ||||||
7 | the first maturity issued, mandatory redemption payment or | ||||||
8 | sinking fund payment occurring within the fiscal year in which | ||||||
9 | the Qualified School Construction Bonds are issued or within | ||||||
10 | the next succeeding fiscal year, with Qualified School | ||||||
11 | Construction Bonds issued maturing or subject to mandatory | ||||||
12 | redemption or with sinking fund payments thereof deposited each | ||||||
13 | fiscal year thereafter up to 25 years. Sinking fund payments | ||||||
14 | set forth in this subsection shall be permitted only to the | ||||||
15 | extent authorized in Section 54F of the Internal Revenue Code | ||||||
16 | or as otherwise determined by the Director of the Governor's | ||||||
17 | Office of Management and Budget. "Qualified School | ||||||
18 | Construction Bonds" in this subsection means Bonds authorized | ||||||
19 | by Section 54F of the Internal Revenue Code and for bonds | ||||||
20 | issued from time to time to refund or continue to refund such | ||||||
21 | "Qualified School Construction Bonds". | ||||||
22 | (f) Beginning with the next issuance by the Governor's | ||||||
23 | Office of Management and Budget to the Procurement Policy Board | ||||||
24 | of a request for quotation for the purpose of formulating a new | ||||||
25 | pool of qualified underwriting banks list, all entities | ||||||
26 | responding to such a request for quotation for inclusion on |
| |||||||
| |||||||
1 | that list shall provide a written report to the Governor's | ||||||
2 | Office of Management and Budget and the Illinois Comptroller. | ||||||
3 | The written report submitted to the Comptroller shall (i) be | ||||||
4 | published on the Comptroller's Internet website and (ii) be | ||||||
5 | used by the Governor's Office of Management and Budget for the | ||||||
6 | purposes of scoring such a request for quotation. The written | ||||||
7 | report, at a minimum, shall: | ||||||
8 | (1) disclose whether, within the past 3 months, | ||||||
9 | pursuant to its credit default swap market-making | ||||||
10 | activities, the firm has entered into any State of Illinois | ||||||
11 | credit default swaps ("CDS"); | ||||||
12 | (2) include, in the event of State of Illinois CDS | ||||||
13 | activity, disclosure of the firm's cumulative notional | ||||||
14 | volume of State of Illinois CDS trades and the firm's | ||||||
15 | outstanding gross and net notional amount of State of | ||||||
16 | Illinois CDS, as of the end of the current 3-month period; | ||||||
17 | (3) indicate, pursuant to the firm's proprietary | ||||||
18 | trading activities, disclosure of whether the firm, within | ||||||
19 | the past 3 months, has entered into any proprietary trades | ||||||
20 | for its own account in State of Illinois CDS; | ||||||
21 | (4) include, in the event of State of Illinois | ||||||
22 | proprietary trades, disclosure of the firm's outstanding | ||||||
23 | gross and net notional amount of proprietary State of | ||||||
24 | Illinois CDS and whether the net position is short or long | ||||||
25 | credit protection, as of the end of the current 3-month | ||||||
26 | period; |
| |||||||
| |||||||
1 | (5) list all time periods during the past 3 months | ||||||
2 | during which the firm held net long or net short State of | ||||||
3 | Illinois CDS proprietary credit protection positions, the | ||||||
4 | amount of such positions, and whether those positions were | ||||||
5 | net long or net short credit protection positions; and | ||||||
6 | (6) indicate whether, within the previous 3 months, the | ||||||
7 | firm released any publicly available research or marketing | ||||||
8 | reports that reference State of Illinois CDS and include | ||||||
9 | those research or marketing reports as attachments. | ||||||
10 | (g) All entities included on a Governor's Office of | ||||||
11 | Management and Budget's pool of qualified underwriting banks | ||||||
12 | list shall, as soon as possible after March 18, 2011 (the | ||||||
13 | effective date of Public Act 96-1554), but not later than | ||||||
14 | January 21, 2011, and on a quarterly fiscal basis thereafter, | ||||||
15 | provide a written report to the Governor's Office of Management | ||||||
16 | and Budget and the Illinois Comptroller. The written reports | ||||||
17 | submitted to the Comptroller shall be published on the | ||||||
18 | Comptroller's Internet website. The written reports, at a | ||||||
19 | minimum, shall: | ||||||
20 | (1) disclose whether, within the past 3 months, | ||||||
21 | pursuant to its credit default swap market-making | ||||||
22 | activities, the firm has entered into any State of Illinois | ||||||
23 | credit default swaps ("CDS"); | ||||||
24 | (2) include, in the event of State of Illinois CDS | ||||||
25 | activity, disclosure of the firm's cumulative notional | ||||||
26 | volume of State of Illinois CDS trades and the firm's |
| |||||||
| |||||||
1 | outstanding gross and net notional amount of State of | ||||||
2 | Illinois CDS, as of the end of the current 3-month period; | ||||||
3 | (3) indicate, pursuant to the firm's proprietary | ||||||
4 | trading activities, disclosure of whether the firm, within | ||||||
5 | the past 3 months, has entered into any proprietary trades | ||||||
6 | for its own account in State of Illinois CDS; | ||||||
7 | (4) include, in the event of State of Illinois | ||||||
8 | proprietary trades, disclosure of the firm's outstanding | ||||||
9 | gross and net notional amount of proprietary State of | ||||||
10 | Illinois CDS and whether the net position is short or long | ||||||
11 | credit protection, as of the end of the current 3-month | ||||||
12 | period; | ||||||
13 | (5) list all time periods during the past 3 months | ||||||
14 | during which the firm held net long or net short State of | ||||||
15 | Illinois CDS proprietary credit protection positions, the | ||||||
16 | amount of such positions, and whether those positions were | ||||||
17 | net long or net short credit protection positions; and | ||||||
18 | (6) indicate whether, within the previous 3 months, the | ||||||
19 | firm released any publicly available research or marketing | ||||||
20 | reports that reference State of Illinois CDS and include | ||||||
21 | those research or marketing reports as attachments. | ||||||
22 | (h) Notwithstanding any other provision of this Section, | ||||||
23 | for purposes of maximizing market efficiencies and cost | ||||||
24 | savings, State Pension Obligation Acceleration Bonds may be | ||||||
25 | issued and sold from time to time, in one or more series, in | ||||||
26 | such amounts and at such prices as may be directed by the |
| |||||||
| |||||||
1 | Governor, upon recommendation by the Director of the Governor's | ||||||
2 | Office of Management and Budget. State Pension Obligation | ||||||
3 | Acceleration Bonds shall be in such form, either coupon, | ||||||
4 | registered, or book entry, in such denominations, shall bear | ||||||
5 | interest payable at such times and at such fixed or variable | ||||||
6 | rate or rates, and be dated as shall be fixed and determined by | ||||||
7 | the Director of the Governor's Office of Management and Budget | ||||||
8 | in the order authorizing the issuance and sale of any series of | ||||||
9 | State Pension Obligation Acceleration Bonds, which order shall | ||||||
10 | be approved by the Governor and is herein called a "Bond Sale | ||||||
11 | Order"; provided, however, that interest payable at fixed or | ||||||
12 | variable rates shall not exceed that permitted in the Bond | ||||||
13 | Authorization Act. State Pension Obligation Acceleration Bonds | ||||||
14 | shall be payable at such place or places, within or without the | ||||||
15 | State of Illinois, and may be made registrable as to either | ||||||
16 | principal or as to both principal and interest, as shall be | ||||||
17 | specified in the Bond Sale Order.
State Pension Obligation | ||||||
18 | Acceleration Bonds may be callable or subject to purchase and | ||||||
19 | retirement or tender and remarketing as fixed and determined in | ||||||
20 | the Bond Sale Order. | ||||||
21 | (Source: P.A. 99-523, eff. 6-30-16.)
| ||||||
22 | (30 ILCS 330/11) (from Ch. 127, par. 661)
| ||||||
23 | Sec. 11. Sale of Bonds. Except as otherwise provided in | ||||||
24 | this Section,
Bonds shall be sold from time to time pursuant to
| ||||||
25 | notice of sale and public bid or by negotiated sale
in such |
| |||||||
| |||||||
1 | amounts and at such
times as is directed by the Governor, upon | ||||||
2 | recommendation by the Director of
the
Governor's Office of | ||||||
3 | Management and Budget. At least 25%, based on total principal | ||||||
4 | amount, of all Bonds issued each fiscal year shall be sold | ||||||
5 | pursuant to notice of sale and public bid. At all times during | ||||||
6 | each fiscal year, no more than 75%, based on total principal | ||||||
7 | amount, of the Bonds issued each fiscal year, shall have been | ||||||
8 | sold by negotiated sale. Failure to satisfy the requirements in | ||||||
9 | the preceding 2 sentences shall not affect the validity of any | ||||||
10 | previously issued Bonds; provided that all Bonds authorized by | ||||||
11 | Public Act 96-43 and Public Act 96-1497 shall not be included | ||||||
12 | in determining compliance for any fiscal year with the | ||||||
13 | requirements of the preceding 2 sentences; and further provided | ||||||
14 | that refunding Bonds satisfying the requirements of Section 16 | ||||||
15 | of this Act and sold during fiscal year 2009, 2010, 2011, or | ||||||
16 | 2017 shall not be subject to the requirements in the preceding | ||||||
17 | 2 sentences.
| ||||||
18 | If
any Bonds, including refunding Bonds, are to be sold by | ||||||
19 | negotiated
sale, the
Director of the
Governor's Office of | ||||||
20 | Management and Budget
shall comply with the
competitive request | ||||||
21 | for proposal process set forth in the Illinois
Procurement Code | ||||||
22 | and all other applicable requirements of that Code.
| ||||||
23 | If Bonds are to be sold pursuant to notice of sale and | ||||||
24 | public bid, the
Director of the
Governor's Office of Management | ||||||
25 | and Budget may, from time to time, as Bonds are to be sold, | ||||||
26 | advertise
the sale of the Bonds in at least 2 daily newspapers, |
| |||||||
| |||||||
1 | one of which is
published in the City of Springfield and one in | ||||||
2 | the City of Chicago. The sale
of the Bonds shall also be
| ||||||
3 | advertised in the volume of the Illinois Procurement Bulletin | ||||||
4 | that is
published by the Department of Central Management | ||||||
5 | Services, and shall be published once at least
10 days prior to | ||||||
6 | the date fixed
for the opening of the bids. The Director of the
| ||||||
7 | Governor's Office of Management and Budget may
reschedule the | ||||||
8 | date of sale upon the giving of such additional notice as the
| ||||||
9 | Director deems adequate to inform prospective bidders of
such | ||||||
10 | change; provided, however, that all other conditions of the | ||||||
11 | sale shall
continue as originally advertised.
| ||||||
12 | Executed Bonds shall, upon payment therefor, be delivered | ||||||
13 | to the purchaser,
and the proceeds of Bonds shall be paid into | ||||||
14 | the State Treasury as directed by
Section 12 of this Act. | ||||||
15 | All State Pension Obligation Acceleration Bonds shall | ||||||
16 | comply with this Section. Notwithstanding anything to the | ||||||
17 | contrary, however, for purposes of complying with this Section, | ||||||
18 | State Pension Obligation Acceleration Bonds, regardless of the | ||||||
19 | number of series or issuances sold thereunder, shall be
| ||||||
20 | considered a single issue or series. Furthermore, for purposes | ||||||
21 | of complying with the competitive bidding requirements of this | ||||||
22 | Section, the words "at all times" shall not apply to any such | ||||||
23 | sale of the State Pension Obligation Acceleration Bonds. The | ||||||
24 | Director of the Governor's Office of Management and Budget | ||||||
25 | shall determine the time and manner of any competitive sale of | ||||||
26 | the State Pension Obligation Acceleration Bonds; however, that |
| |||||||
| |||||||
1 | sale shall under no circumstances take place later than 60 days | ||||||
2 | after the State closes the sale of 75% of the State Pension | ||||||
3 | Obligation Acceleration Bonds by negotiated sale.
| ||||||
4 | (Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)
| ||||||
5 | (30 ILCS 330/12) (from Ch. 127, par. 662)
| ||||||
6 | Sec. 12. Allocation of Proceeds from Sale of Bonds.
| ||||||
7 | (a) Proceeds from the sale of Bonds, authorized by Section | ||||||
8 | 3 of this Act,
shall be deposited in the separate fund known as | ||||||
9 | the Capital Development Fund.
| ||||||
10 | (b) Proceeds from the sale of Bonds, authorized by | ||||||
11 | paragraph (a) of Section
4 of this Act, shall be deposited in | ||||||
12 | the separate fund known as the
Transportation Bond, Series A | ||||||
13 | Fund.
| ||||||
14 | (c) Proceeds from the sale of Bonds, authorized by | ||||||
15 | paragraphs (b) and (c)
of Section 4 of this Act, shall be | ||||||
16 | deposited in the separate fund known
as the Transportation | ||||||
17 | Bond, Series B Fund.
| ||||||
18 | (c-1) Proceeds from the sale of Bonds, authorized by | ||||||
19 | paragraph (d) of Section 4 of this Act, shall be deposited into | ||||||
20 | the Transportation Bond Series D Fund, which is hereby created. | ||||||
21 | (d) Proceeds from the sale of Bonds, authorized by Section | ||||||
22 | 5 of this
Act, shall be deposited in the separate fund known as | ||||||
23 | the School Construction
Fund.
| ||||||
24 | (e) Proceeds from the sale of Bonds, authorized by Section | ||||||
25 | 6 of this Act,
shall be deposited in the separate fund known as |
| |||||||
| |||||||
1 | the Anti-Pollution Fund.
| ||||||
2 | (f) Proceeds from the sale of Bonds, authorized by Section | ||||||
3 | 7 of this Act,
shall be deposited in the separate fund known as | ||||||
4 | the Coal Development Fund.
| ||||||
5 | (f-2) Proceeds from the sale of Bonds, authorized by | ||||||
6 | Section 7.2 of this
Act, shall be deposited as set forth in | ||||||
7 | Section 7.2.
| ||||||
8 | (f-5) Proceeds from the sale of Bonds, authorized by | ||||||
9 | Section 7.5 of this
Act, shall be deposited as set forth in | ||||||
10 | Section 7.5. | ||||||
11 | (f-7) Proceeds from the sale of Bonds, authorized by | ||||||
12 | Section 7.6 of this Act, shall be deposited as set forth in | ||||||
13 | Section 7.6.
| ||||||
14 | (g) Proceeds from the sale of Bonds, authorized by Section | ||||||
15 | 8 of this Act,
shall be deposited in
the Capital Development | ||||||
16 | Fund.
| ||||||
17 | (h) Subsequent to the issuance of any Bonds for the | ||||||
18 | purposes described
in Sections 2 through 8 of this Act, the | ||||||
19 | Governor and the Director of the
Governor's Office of | ||||||
20 | Management and Budget may provide for the reallocation of | ||||||
21 | unspent proceeds
of such Bonds to any other purposes authorized | ||||||
22 | under said Sections of this
Act, subject to the limitations on | ||||||
23 | aggregate principal amounts contained
therein. Upon any such | ||||||
24 | reallocation, such unspent proceeds shall be
transferred to the | ||||||
25 | appropriate funds as determined by reference to
paragraphs (a) | ||||||
26 | through (g) of this Section.
|
| |||||||
| |||||||
1 | (Source: P.A. 96-36, eff. 7-13-09.)
| ||||||
2 | (30 ILCS 330/13) (from Ch. 127, par. 663)
| ||||||
3 | Sec. 13. Appropriation of Proceeds from Sale of Bonds.
| ||||||
4 | (a) At all times, the proceeds from the sale of Bonds | ||||||
5 | issued pursuant
to this Act are subject to appropriation by the | ||||||
6 | General Assembly and,
except as provided in Sections 7.2 and | ||||||
7 | 7.6 Section 7.2 , may be obligated or expended only
with the | ||||||
8 | written approval of the Governor, in such amounts, at such | ||||||
9 | times,
and for such purposes as the respective
State agencies, | ||||||
10 | as defined in Section 1-7 of the Illinois State Auditing
Act, | ||||||
11 | as amended, deem necessary or desirable for the specific | ||||||
12 | purposes
contemplated in Sections 2 through 8 of this Act. | ||||||
13 | Notwithstanding any other provision of this Act, proceeds from | ||||||
14 | the sale of Bonds issued pursuant to this Act appropriated by | ||||||
15 | the General Assembly to the Architect of the Capitol may be | ||||||
16 | obligated or expended by the Architect of the Capitol without | ||||||
17 | the written approval of the Governor.
| ||||||
18 | (b) Proceeds from the sale of Bonds for the purpose of | ||||||
19 | development of
coal and alternative forms of energy shall be | ||||||
20 | expended in such amounts and
at such times as the Department of | ||||||
21 | Commerce and Economic Opportunity, with the
advice and | ||||||
22 | recommendation of the Illinois Coal Development Board for coal
| ||||||
23 | development projects, may deem necessary and desirable for the | ||||||
24 | specific
purpose contemplated by Section 7 of this Act. In | ||||||
25 | considering the approval
of projects to be funded, the |
| |||||||
| |||||||
1 | Department of Commerce and
Economic Opportunity shall give
| ||||||
2 | special
consideration to projects designed to remove sulfur and | ||||||
3 | other pollutants in
the preparation and utilization of coal, | ||||||
4 | and in the use and operation of
electric utility generating | ||||||
5 | plants and industrial facilities which utilize
Illinois coal as | ||||||
6 | their primary source of fuel.
| ||||||
7 | (c) Except as directed in subsection (c-1) or (c-2), any | ||||||
8 | monies received by any officer or employee of the state
| ||||||
9 | representing a reimbursement of expenditures previously paid | ||||||
10 | from general
obligation bond proceeds shall be deposited into | ||||||
11 | the General Obligation
Bond Retirement and Interest Fund | ||||||
12 | authorized in Section 14 of this Act.
| ||||||
13 | (c-1) Any money received by the Department of | ||||||
14 | Transportation as reimbursement for expenditures for high | ||||||
15 | speed rail purposes pursuant to appropriations from the | ||||||
16 | Transportation Bond, Series B Fund for (i) CREATE (Chicago | ||||||
17 | Region Environmental and Transportation Efficiency), (ii) High | ||||||
18 | Speed Rail, or (iii) AMTRAK projects authorized by the federal | ||||||
19 | government under the provisions of the American Recovery and | ||||||
20 | Reinvestment Act of 2009 or the Safe Accountable Flexible | ||||||
21 | Efficient Transportation Equity Act—A Legacy for Users | ||||||
22 | (SAFETEA-LU), or any successor federal transportation | ||||||
23 | authorization Act, shall be deposited into the Federal High | ||||||
24 | Speed Rail Trust Fund. | ||||||
25 | (c-2) Any money received by the Department of | ||||||
26 | Transportation as reimbursement for expenditures for transit |
| |||||||
| |||||||
1 | capital purposes pursuant to appropriations from the | ||||||
2 | Transportation Bond, Series B Fund for projects authorized by | ||||||
3 | the federal government under the provisions of the American | ||||||
4 | Recovery and Reinvestment Act of 2009 or the Safe Accountable | ||||||
5 | Flexible Efficient Transportation Equity Act—A Legacy for | ||||||
6 | Users (SAFETEA-LU), or any successor federal transportation | ||||||
7 | authorization Act, shall be deposited into the Federal Mass | ||||||
8 | Transit Trust Fund. | ||||||
9 | (Source: P.A. 98-674, eff. 6-30-14.)
| ||||||
10 | Section 30. The Illinois Pension Code is amended by | ||||||
11 | changing Sections 1-160, 2-101, 2-105, 2-107, 2-124, 2-134, | ||||||
12 | 2-154.2, 2-162, 14-131, 14-135.08, 14-152.1, 15-108.1, | ||||||
13 | 15-108.2, 15-155, 15-165, 15-198, 16-158, 16-203, 17-129, | ||||||
14 | 18-131, 18-140, 18-169, 20-121, 20-123, 20-124, and 20-125 and | ||||||
15 | by adding Sections 1-161, 1-162, 2-105.3, 2-154.5, 2-165.1, | ||||||
16 | 2-166.1, 14-103.41, 14-147.5, 14-155.1, 14-155.2, 14-156.1, | ||||||
17 | 15-185.5, 15-200.1, 15-201.1, 16-107.1, 16-190.5, 16-205.1, | ||||||
18 | 16-206.1, 17-106.05, 18-161.5, and 18-169 as follows:
| ||||||
19 | (40 ILCS 5/1-160)
| ||||||
20 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
21 | which has been held unconstitutional) | ||||||
22 | Sec. 1-160. Provisions applicable to new hires. | ||||||
23 | (a) The provisions of this Section apply to a person who, | ||||||
24 | on or after January 1, 2011, first becomes a member or a |
| |||||||
| |||||||
1 | participant under any reciprocal retirement system or pension | ||||||
2 | fund established under this Code, other than a retirement | ||||||
3 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
4 | 15 or 18 of this Code, notwithstanding any other provision of | ||||||
5 | this Code to the contrary, but do not apply to any self-managed | ||||||
6 | plan established under this Code, to any person with respect to | ||||||
7 | service as a sheriff's law enforcement employee under Article | ||||||
8 | 7, or to any participant of the retirement plan established | ||||||
9 | under Section 22-101. Notwithstanding anything to the contrary | ||||||
10 | in this Section, for purposes of this Section, a person who | ||||||
11 | participated in a retirement system under Article 15 prior to | ||||||
12 | January 1, 2011 shall be deemed a person who first became a | ||||||
13 | member or participant prior to January 1, 2011 under any | ||||||
14 | retirement system or pension fund subject to this Section. The | ||||||
15 | changes made to this Section by Public Act 98-596 this | ||||||
16 | amendatory Act of the 98th General Assembly are a clarification | ||||||
17 | of existing law and are intended to be retroactive to January | ||||||
18 | 1, 2011 ( the effective date of Public Act 96-889 ) , | ||||||
19 | notwithstanding the provisions of Section 1-103.1 of this Code. | ||||||
20 | This Section does not apply to a person who, on or after 6 | ||||||
21 | months after the effective date of this amendatory Act of the | ||||||
22 | 100th General Assembly, first becomes a member or participant | ||||||
23 | under Article 14 or 16, unless that person (i) is a covered | ||||||
24 | employee under Article 14 who has not elected to participate in | ||||||
25 | the defined contribution plan under Section 14-155.2 or (ii) | ||||||
26 | elects under subsection (b) of Section 1-161 to receive the |
| |||||||
| |||||||
1 | benefits provided under this Section and the applicable | ||||||
2 | provisions of the Article under which he or she is a member or | ||||||
3 | participant. This Section also does not apply to a person who | ||||||
4 | first becomes a member or participant of an affected pension | ||||||
5 | fund on or after 6 months after the resolution or ordinance | ||||||
6 | date, as defined in Section 1-162, unless that person elects | ||||||
7 | under subsection (c) of Section 1-162 to receive the benefits | ||||||
8 | provided under this Section and the applicable provisions of | ||||||
9 | the Article under which he or she is a member or participant. | ||||||
10 | (b) "Final average salary" means the average monthly (or | ||||||
11 | annual) salary obtained by dividing the total salary or | ||||||
12 | earnings calculated under the Article applicable to the member | ||||||
13 | or participant during the 96 consecutive months (or 8 | ||||||
14 | consecutive years) of service within the last 120 months (or 10 | ||||||
15 | years) of service in which the total salary or earnings | ||||||
16 | calculated under the applicable Article was the highest by the | ||||||
17 | number of months (or years) of service in that period. For the | ||||||
18 | purposes of a person who first becomes a member or participant | ||||||
19 | of any retirement system or pension fund to which this Section | ||||||
20 | applies on or after January 1, 2011, in this Code, "final | ||||||
21 | average salary" shall be substituted for the following: | ||||||
22 | (1) In Article 7 (except for service as sheriff's law | ||||||
23 | enforcement employees), "final rate of earnings". | ||||||
24 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
25 | annual salary for any 4 consecutive years within the last | ||||||
26 | 10 years of service immediately preceding the date of |
| |||||||
| |||||||
1 | withdrawal". | ||||||
2 | (3) In Article 13, "average final salary". | ||||||
3 | (4) In Article 14, "final average compensation". | ||||||
4 | (5) In Article 17, "average salary". | ||||||
5 | (6) In Section 22-207, "wages or salary received by him | ||||||
6 | at the date of retirement or discharge". | ||||||
7 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
8 | this Code (including without limitation the calculation of | ||||||
9 | benefits and employee contributions), the annual earnings, | ||||||
10 | salary, or wages (based on the plan year) of a member or | ||||||
11 | participant to whom this Section applies shall not exceed | ||||||
12 | $106,800; however, that amount shall annually thereafter be | ||||||
13 | increased by the lesser of (i) 3% of that amount, including all | ||||||
14 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
15 | percentage increase (but not less than zero) in the consumer | ||||||
16 | price index-u
for the 12 months ending with the September | ||||||
17 | preceding each November 1, including all previous adjustments. | ||||||
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 boards of the retirement | ||||||
26 | systems and pension funds by November 1 of each year. |
| |||||||
| |||||||
1 | (c) A member or participant is entitled to a retirement
| ||||||
2 | annuity upon written application if he or she has attained age | ||||||
3 | 67 (beginning January 1, 2015, age 65 with respect to service | ||||||
4 | under Article 12 of this Code that is subject to this Section) | ||||||
5 | and has at least 10 years of service credit and is otherwise | ||||||
6 | eligible under the requirements of the applicable Article. | ||||||
7 | A member or participant who has attained age 62 (beginning | ||||||
8 | January 1, 2015, age 60 with respect to service under Article | ||||||
9 | 12 of this Code that is subject to this Section) and has at | ||||||
10 | least 10 years of service credit and is otherwise eligible | ||||||
11 | under the requirements of the applicable Article may elect to | ||||||
12 | receive the lower retirement annuity provided
in subsection (d) | ||||||
13 | of this Section. | ||||||
14 | (d) The retirement annuity of a member or participant who | ||||||
15 | is retiring after attaining age 62 (beginning January 1, 2015, | ||||||
16 | age 60 with respect to service under Article 12 of this Code | ||||||
17 | that is subject to this Section) with at least 10 years of | ||||||
18 | service credit shall be reduced by one-half
of 1% for each full | ||||||
19 | month that the member's age is under age 67 (beginning January | ||||||
20 | 1, 2015, age 65 with respect to service under Article 12 of | ||||||
21 | this Code that is subject to this Section). | ||||||
22 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
23 | subject to annual increases on the January 1 occurring either | ||||||
24 | on or after the attainment of age 67 (beginning January 1, | ||||||
25 | 2015, age 65 with respect to service under Article 12 of this | ||||||
26 | Code that is subject to this Section) or the first anniversary |
| |||||||
| |||||||
1 | of the annuity start date, whichever is later. Each annual | ||||||
2 | increase shall be calculated at 3% or one-half the annual | ||||||
3 | unadjusted percentage increase (but not less than zero) in the | ||||||
4 | consumer price index-u for the 12 months ending with the | ||||||
5 | September preceding each November 1, whichever is less, of the | ||||||
6 | originally granted retirement annuity. If the annual | ||||||
7 | unadjusted percentage change in the consumer price index-u for | ||||||
8 | the 12 months ending with the September preceding each November | ||||||
9 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
10 | increased. | ||||||
11 | (f) The initial survivor's or widow's annuity of an | ||||||
12 | otherwise eligible survivor or widow of a retired member or | ||||||
13 | participant who first became a member or participant on or | ||||||
14 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
15 | retired member's or participant's retirement annuity at the | ||||||
16 | date of death. In the case of the death of a member or | ||||||
17 | participant who has not retired and who first became a member | ||||||
18 | or participant on or after January 1, 2011, eligibility for a | ||||||
19 | survivor's or widow's annuity shall be determined by the | ||||||
20 | applicable Article of this Code. The initial benefit shall be | ||||||
21 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
22 | child's annuity of an otherwise eligible child shall be in the | ||||||
23 | amount prescribed under each Article if applicable. Any | ||||||
24 | survivor's or widow's annuity shall be increased (1) on each | ||||||
25 | January 1 occurring on or after the commencement of the annuity | ||||||
26 | if
the deceased member died while receiving a retirement |
| |||||||
| |||||||
1 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
2 | after the first anniversary
of the commencement of the annuity. | ||||||
3 | Each annual increase shall be calculated at 3% or one-half the | ||||||
4 | annual unadjusted percentage increase (but not less than zero) | ||||||
5 | in the consumer price index-u for the 12 months ending with the | ||||||
6 | September preceding each November 1, whichever is less, of the | ||||||
7 | originally granted survivor's annuity. If the annual | ||||||
8 | unadjusted percentage change in the consumer price index-u for | ||||||
9 | the 12 months ending with the September preceding each November | ||||||
10 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
11 | increased. | ||||||
12 | (g) The benefits in Section 14-110 apply only if the person | ||||||
13 | is a State policeman, a fire fighter in the fire protection | ||||||
14 | service of a department, or a security employee of the | ||||||
15 | Department of Corrections or the Department of Juvenile | ||||||
16 | Justice, as those terms are defined in subsection (b) of | ||||||
17 | Section 14-110. A person who meets the requirements of this | ||||||
18 | Section is entitled to an annuity calculated under the | ||||||
19 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
20 | retirement annuity, only if the person has withdrawn from | ||||||
21 | service with not less than 20
years of eligible creditable | ||||||
22 | service and has attained age 60, regardless of whether
the | ||||||
23 | attainment of age 60 occurs while the person is
still in | ||||||
24 | service. | ||||||
25 | (h) If a person who first becomes a member or a participant | ||||||
26 | of a retirement system or pension fund subject to this Section |
| |||||||
| |||||||
1 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
2 | or retirement pension under that system or fund and becomes a | ||||||
3 | member or participant under any other system or fund created by | ||||||
4 | this Code and is employed on a full-time basis, except for | ||||||
5 | those members or participants exempted from the provisions of | ||||||
6 | this Section under subsection (a) of this Section, then the | ||||||
7 | person's retirement annuity or retirement pension under that | ||||||
8 | system or fund shall be suspended during that employment. Upon | ||||||
9 | termination of that employment, the person's retirement | ||||||
10 | annuity or retirement pension payments shall resume and be | ||||||
11 | recalculated if recalculation is provided for under the | ||||||
12 | applicable Article of this Code. | ||||||
13 | If a person who first becomes a member of a retirement | ||||||
14 | system or pension fund subject to this Section on or after | ||||||
15 | January 1, 2012 and is receiving a retirement annuity or | ||||||
16 | retirement pension under that system or fund and accepts on a | ||||||
17 | contractual basis a position to provide services to a | ||||||
18 | governmental entity from which he or she has retired, then that | ||||||
19 | person's annuity or retirement pension earned as an active | ||||||
20 | employee of the employer shall be suspended during that | ||||||
21 | contractual service. A person receiving an annuity or | ||||||
22 | retirement pension under this Code shall notify the pension | ||||||
23 | fund or retirement system from which he or she is receiving an | ||||||
24 | annuity or retirement pension, as well as his or her | ||||||
25 | contractual employer, of his or her retirement status before | ||||||
26 | accepting contractual employment. A person who fails to submit |
| |||||||
| |||||||
1 | such notification shall be guilty of a Class A misdemeanor and | ||||||
2 | required to pay a fine of $1,000. Upon termination of that | ||||||
3 | contractual employment, the person's retirement annuity or | ||||||
4 | retirement pension payments shall resume and, if appropriate, | ||||||
5 | be recalculated under the applicable provisions of this Code. | ||||||
6 | (i) (Blank). | ||||||
7 | (j) Except for Sections 1-161 and 1-162, in In the case of | ||||||
8 | a conflict between the provisions of this Section and any other | ||||||
9 | provision of this Code, the provisions of this Section shall | ||||||
10 | control.
| ||||||
11 | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | ||||||
12 | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.) | ||||||
13 | (40 ILCS 5/1-161 new) | ||||||
14 | Sec. 1-161. Optional benefits for certain Tier 2 members | ||||||
15 | under Articles 14, 15, and 16. | ||||||
16 | (a) Notwithstanding any other provision of this Code to the | ||||||
17 | contrary, the provisions of this Section apply to a person who, | ||||||
18 | on or after 6 months after the effective date of this | ||||||
19 | amendatory Act of the 100th General Assembly, first becomes a | ||||||
20 | member or a participant under Article 14, 15, or 16 and who | ||||||
21 | does not make the election under subsection (b) or (c), | ||||||
22 | whichever is applicable. The provisions of this Section do not | ||||||
23 | apply to any participant in a self-managed plan or to a covered | ||||||
24 | employee under Article 14. | ||||||
25 | (b) In lieu of the benefits provided under this Section, a |
| |||||||
| |||||||
1 | member or participant, except for a participant under Article | ||||||
2 | 15, may irrevocably elect the benefits under Section 1-160 and | ||||||
3 | the benefits otherwise applicable to that member or | ||||||
4 | participant. The election must be made within 30 days after | ||||||
5 | becoming a member or participant. Each retirement system shall | ||||||
6 | establish procedures for making this election. | ||||||
7 | (c) A participant under Article 15 may irrevocably elect | ||||||
8 | the benefits otherwise provided to a Tier 2 participant under | ||||||
9 | Article 15. The election must be made within 30 days after | ||||||
10 | becoming a participant. The retirement system under Article 15 | ||||||
11 | shall establish procedures for making this election. | ||||||
12 | (d) "Final average salary" means the average monthly (or | ||||||
13 | annual) salary obtained by dividing the total salary or | ||||||
14 | earnings calculated under the Article applicable to the member | ||||||
15 | or participant during the last 120 months (or 10 years) of | ||||||
16 | service in which the total salary or earnings calculated under | ||||||
17 | the applicable Article was the highest by the number of months | ||||||
18 | (or years) of service in that period. For the purposes of a | ||||||
19 | person who first becomes a member or participant of any | ||||||
20 | retirement system to which this Section applies on or after 6 | ||||||
21 | months after the effective date of this amendatory Act of the | ||||||
22 | 100th General Assembly, in this Code, "final average salary" | ||||||
23 | shall be substituted for "final average compensation" in | ||||||
24 | Article 14. | ||||||
25 | (e) Beginning 6 months after the effective date of this | ||||||
26 | amendatory Act of the 100th General Assembly, for all purposes |
| |||||||
| |||||||
1 | under this Code (including without limitation the calculation | ||||||
2 | of benefits and employee contributions), the annual earnings, | ||||||
3 | salary, or wages (based on the plan year) of a member or | ||||||
4 | participant to whom this Section applies shall not at any time | ||||||
5 | exceed the federal Social Security Wage Base then in effect. | ||||||
6 | (f) A member or participant is entitled to a retirement
| ||||||
7 | annuity upon written application if he or she has attained the | ||||||
8 | normal retirement age determined by the Social Security | ||||||
9 | Administration for that member or participant's year of birth, | ||||||
10 | but no earlier than 67 years of age, and has at least 10 years | ||||||
11 | of service credit and is otherwise eligible under the | ||||||
12 | requirements of the applicable Article. | ||||||
13 | (g) The amount of the retirement annuity to which a member | ||||||
14 | or participant is entitled shall be computed by multiplying | ||||||
15 | 1.25% for each year of service credit by his or her final | ||||||
16 | average salary. | ||||||
17 | (h) Any retirement annuity or supplemental annuity shall be | ||||||
18 | subject to annual increases on the first anniversary of the | ||||||
19 | annuity start date. Each annual increase shall be one-half the | ||||||
20 | annual unadjusted percentage increase (but not less than zero) | ||||||
21 | in the consumer price index-w for the 12 months ending with the | ||||||
22 | September preceding each November 1 of the originally granted | ||||||
23 | retirement annuity. If the annual unadjusted percentage change | ||||||
24 | in the consumer price index-w for the 12 months ending with the | ||||||
25 | September preceding each November 1 is zero or there is a | ||||||
26 | decrease, then the annuity shall not be increased. |
| |||||||
| |||||||
1 | For the purposes of this Section, "consumer price index-w" | ||||||
2 | means the index published by the Bureau of Labor Statistics of | ||||||
3 | the United States Department of Labor that measures the average | ||||||
4 | change in prices of goods and services purchased by Urban Wage | ||||||
5 | Earners and Clerical Workers, United States city average, all | ||||||
6 | items, 1982-84 = 100. The new amount resulting from each annual | ||||||
7 | adjustment shall be determined by the Public Pension Division | ||||||
8 | of the Department of Insurance and made available to the boards | ||||||
9 | of the retirement systems and pension funds by November 1 of | ||||||
10 | each year. | ||||||
11 | (i) The initial survivor's or widow's annuity of an | ||||||
12 | otherwise eligible survivor or widow of a retired member or | ||||||
13 | participant who first became a member or participant on or | ||||||
14 | after 6 months after the effective date of this amendatory Act | ||||||
15 | of the 100th General Assembly shall be in the amount of 66 2/3% | ||||||
16 | of the retired member's or participant's retirement annuity at | ||||||
17 | the date of death. In the case of the death of a member or | ||||||
18 | participant who has not retired and who first became a member | ||||||
19 | or participant on or after 6 months after the effective date of | ||||||
20 | this amendatory Act of the 100th General Assembly, eligibility | ||||||
21 | for a survivor's or widow's annuity shall be determined by the | ||||||
22 | applicable Article of this Code. The benefit shall be 66 2/3% | ||||||
23 | of the earned annuity without a reduction due to age. A child's | ||||||
24 | annuity of an otherwise eligible child shall be in the amount | ||||||
25 | prescribed under each Article if applicable. | ||||||
26 | (j) In lieu of any other employee contributions, except for |
| |||||||
| |||||||
1 | the contribution to the defined contribution plan under | ||||||
2 | subsection (k) of this Section, each employee shall contribute | ||||||
3 | 6.2% of his her or salary to the retirement system. However, | ||||||
4 | the employee contribution under this subsection shall not | ||||||
5 | exceed the amount of the normal cost of the benefits under this | ||||||
6 | Section (except for the defined contribution plan under | ||||||
7 | subsection (k) of this Section), expressed as a percentage of | ||||||
8 | payroll and determined on or before November 1 of each year by | ||||||
9 | the board of trustees of the retirement system. If the board of | ||||||
10 | trustees of the retirement system determines that the 6.2% | ||||||
11 | employee contribution rate exceeds the normal cost of the | ||||||
12 | benefits under this Section (except for the defined | ||||||
13 | contribution plan under subsection (k) of this Section), then | ||||||
14 | on or before December 1 of that year, the board of trustees | ||||||
15 | shall certify the amount of the normal cost of the benefits | ||||||
16 | under this Section (except for the defined contribution plan | ||||||
17 | under subsection (k) of this Section), expressed as a | ||||||
18 | percentage of payroll, to the State Actuary and the Commission | ||||||
19 | on Government Forecasting and Accountability, and the employee | ||||||
20 | contribution under this subsection shall be reduced to that | ||||||
21 | amount beginning January 1 of the following year. Thereafter, | ||||||
22 | if the normal cost of the benefits under this Section (except | ||||||
23 | for the defined contribution plan under subsection (k) of this | ||||||
24 | Section), expressed as a percentage of payroll and determined | ||||||
25 | on or before November 1 of each year by the board of trustees | ||||||
26 | of the retirement system, exceeds 6.2% of salary, then on or |
| |||||||
| |||||||
1 | before December 1 of that year, the board of trustees shall | ||||||
2 | certify the normal cost to the State Actuary and the Commission | ||||||
3 | on Government Forecasting and Accountability, and the employee | ||||||
4 | contributions shall revert back to 6.2% of salary beginning | ||||||
5 | January 1 of the following year. | ||||||
6 | (k) No later than 5 months after the effective date of this | ||||||
7 | amendatory Act of the 100th General Assembly, each retirement | ||||||
8 | system under Article 14, 15, or 16 shall prepare and implement | ||||||
9 | a defined contribution plan for members or participants who are | ||||||
10 | subject to this Section. The defined contribution plan | ||||||
11 | developed under this subsection shall be a plan that aggregates | ||||||
12 | employer and employee contributions in individual participant | ||||||
13 | accounts which, after meeting any other requirements, are used | ||||||
14 | for payouts after retirement in accordance with this subsection | ||||||
15 | and any other applicable laws. | ||||||
16 | (1) Each member or participant shall contribute a | ||||||
17 | minimum of 4% of his or her salary to the defined | ||||||
18 | contribution plan. | ||||||
19 | (2) For each participant in the defined contribution | ||||||
20 | plan who has been employed with the same employer for at | ||||||
21 | least one year, employer contributions shall be paid into | ||||||
22 | that participant's accounts at a rate expressed as a | ||||||
23 | percentage of salary. This rate may be set for individual | ||||||
24 | employees, but shall be no higher than 6% of salary and | ||||||
25 | shall be no lower than 2% of salary. | ||||||
26 | (3) Employer contributions shall vest when those |
| |||||||
| |||||||
1 | contributions are paid into a member's or participant's | ||||||
2 | account. | ||||||
3 | (4) The defined contribution plan shall provide a | ||||||
4 | variety of options for investments. These options shall | ||||||
5 | include investments handled by the Illinois State Board of | ||||||
6 | Investment as well as private sector investment options. | ||||||
7 | (5) The defined contribution plan shall provide a | ||||||
8 | variety of options for payouts to retirees and their | ||||||
9 | survivors. | ||||||
10 | (6) To the extent authorized under federal law and as | ||||||
11 | authorized by the retirement system, the defined | ||||||
12 | contribution plan shall allow former participants in the | ||||||
13 | plan to transfer or roll over employee and employer | ||||||
14 | contributions, and the earnings thereon, into other | ||||||
15 | qualified retirement plans. | ||||||
16 | (7) Each retirement system shall reduce the employee | ||||||
17 | contributions credited to the member's defined | ||||||
18 | contribution plan account by an amount determined by that | ||||||
19 | retirement system to cover the cost of offering the | ||||||
20 | benefits under this subsection and any applicable | ||||||
21 | administrative fees. | ||||||
22 | (8) No person shall begin participating in the defined | ||||||
23 | contribution plan until it has attained qualified plan | ||||||
24 | status and received all necessary approvals from the U.S. | ||||||
25 | Internal Revenue Service. | ||||||
26 | (l) By accepting the benefits under this Section, a member |
| |||||||
| |||||||
1 | or participant acknowledges and consents that benefits once | ||||||
2 | earned may not be diminished, but that future benefits may be | ||||||
3 | modified, including, but not limited to, changes in the | ||||||
4 | retirement age at which a member or participant becomes | ||||||
5 | eligible to receive future benefits, changes in the amount of | ||||||
6 | the automatic annual increase for those future benefits, or the | ||||||
7 | amount of the retirement annuity. Any increase in benefits | ||||||
8 | under this Section applicable to persons under Article 15 or 16 | ||||||
9 | does not apply unless it is approved by resolution or ordinance | ||||||
10 | of the governing body of the unit of local government with | ||||||
11 | regard to the members or participants under that unit of local | ||||||
12 | government. | ||||||
13 | (m) In the case of a conflict between the provisions of | ||||||
14 | this Section and any other provision of this Code, the | ||||||
15 | provisions of this Section shall control. | ||||||
16 | (40 ILCS 5/1-162 new) | ||||||
17 | Sec. 1-162. Optional benefits for certain Tier 2 members of | ||||||
18 | pension funds under Articles 7, 8, 9, 10, 11, 12, 13, and 17. | ||||||
19 | (a) As used in this Section: | ||||||
20 | "Affected pension fund" means a pension fund established | ||||||
21 | under Article 7, 8, 9, 10, 11, 12, 13, or 17 that the governing | ||||||
22 | body of the unit of local government has designated as an | ||||||
23 | affected pension fund by adoption of a resolution or ordinance. | ||||||
24 | "Resolution or ordinance date" means the date on which the | ||||||
25 | governing body of the unit of local government designates a |
| |||||||
| |||||||
1 | pension fund under Article 7, 8, 9, 10, 11, 12, 13, or 17 as an | ||||||
2 | affected pension fund by adoption of a resolution or ordinance. | ||||||
3 | (b) Notwithstanding any other provision of this Code to the | ||||||
4 | contrary, the provisions of this Section apply to a person who | ||||||
5 | first becomes a member or a participant in an affected pension | ||||||
6 | fund on or after 6 months after the resolution or ordinance | ||||||
7 | date and who does not make the election under subsection (c). | ||||||
8 | The provisions of this Section do not apply to a sheriff's law | ||||||
9 | enforcement employee under Article 7. | ||||||
10 | (c) In lieu of the benefits provided under this Section, a | ||||||
11 | member or participant may irrevocably elect the benefits under | ||||||
12 | Section 1-160 and the benefits otherwise applicable to that | ||||||
13 | member or participant. The election must be made within 30 days | ||||||
14 | after becoming a member or participant. Each affected pension | ||||||
15 | fund shall establish procedures for making this election. | ||||||
16 | (d) "Final average salary" means the average monthly (or | ||||||
17 | annual) salary obtained by dividing the total salary or | ||||||
18 | earnings calculated under the Article applicable to the member | ||||||
19 | or participant during the last 120 months (or 10 years) of | ||||||
20 | service in which the total salary or earnings calculated under | ||||||
21 | the applicable Article was the highest by the number of months | ||||||
22 | (or years) of service in that period. For the purposes of a | ||||||
23 | person who first becomes a member or participant of an affected | ||||||
24 | pension fund on or after 6 months after the ordinance or | ||||||
25 | resolution date, in this Code, "final average salary" shall be | ||||||
26 | substituted for the following: |
| |||||||
| |||||||
1 | (1) In Article 7, (except for service as sheriff's law
| ||||||
2 | enforcement employees), "final rate of earnings". | ||||||
3 | (2) In Articles 8, 9, 10, 11, and 12, "highest
average | ||||||
4 | annual salary for any 4 consecutive years within the last | ||||||
5 | 10 years of service immediately preceding the date of | ||||||
6 | withdrawal". | ||||||
7 | (3) In Article 13, "average final salary". | ||||||
8 | (4) In Article 17, "average salary". | ||||||
9 | (e) Beginning 6 months after the resolution or ordinance | ||||||
10 | date, for all purposes under this Code (including without | ||||||
11 | limitation the calculation of benefits and employee | ||||||
12 | contributions), the annual earnings, salary, or wages (based on | ||||||
13 | the plan year) of a member or participant to whom this Section | ||||||
14 | applies shall not at any time exceed the federal Social | ||||||
15 | Security Wage Base then in effect. | ||||||
16 | (f) A member or participant is entitled to a retirement
| ||||||
17 | annuity upon written application if he or she has attained the | ||||||
18 | normal retirement age determined by the Social Security | ||||||
19 | Administration for that member or participant's year of birth, | ||||||
20 | but no earlier than 67 years of age, and has at least 10 years | ||||||
21 | of service credit and is otherwise eligible under the | ||||||
22 | requirements of the applicable Article. | ||||||
23 | (g) The amount of the retirement annuity to which a member | ||||||
24 | or participant is entitled shall be computed by multiplying | ||||||
25 | 1.25% for each year of service credit by his or her final | ||||||
26 | average salary. |
| |||||||
| |||||||
1 | (h) Any retirement annuity or supplemental annuity shall be | ||||||
2 | subject to annual increases on the first anniversary of the | ||||||
3 | annuity start date. Each annual increase shall be one-half the | ||||||
4 | annual unadjusted percentage increase (but not less than zero) | ||||||
5 | in the consumer price index-w for the 12 months ending with the | ||||||
6 | September preceding each November 1 of the originally granted | ||||||
7 | retirement annuity. If the annual unadjusted percentage change | ||||||
8 | in the consumer price index-w for the 12 months ending with the | ||||||
9 | September preceding each November 1 is zero or there is a | ||||||
10 | decrease, then the annuity shall not be increased. | ||||||
11 | For the purposes of this Section, "consumer price index-w" | ||||||
12 | means the index published by the Bureau of Labor Statistics of | ||||||
13 | the United States Department of Labor that measures the average | ||||||
14 | change in prices of goods and services purchased by Urban Wage | ||||||
15 | Earners and Clerical Workers, United States city average, all | ||||||
16 | items, 1982-84 = 100. The new amount resulting from each annual | ||||||
17 | adjustment shall be determined by the Public Pension Division | ||||||
18 | of the Department of Insurance and made available to the boards | ||||||
19 | of the retirement systems and pension funds by November 1 of | ||||||
20 | each year. | ||||||
21 | (i) The initial survivor's or widow's annuity of an | ||||||
22 | otherwise eligible survivor or widow of a retired member or | ||||||
23 | participant who first became a member or participant on or | ||||||
24 | after 6 months after the resolution or ordinance date shall be | ||||||
25 | in the amount of 66 2/3% of the retired member's or | ||||||
26 | participant's retirement annuity at the date of death. In the |
| |||||||
| |||||||
1 | case of the death of a member or participant who has not | ||||||
2 | retired and who first became a member or participant on or | ||||||
3 | after 6 months after the resolution or ordinance date, | ||||||
4 | eligibility for a survivor's or widow's annuity shall be | ||||||
5 | determined by the applicable Article of this Code. The benefit | ||||||
6 | shall be 66 2/3% of the earned annuity without a reduction due | ||||||
7 | to age. A child's annuity of an otherwise eligible child shall | ||||||
8 | be in the amount prescribed under each Article if applicable. | ||||||
9 | (j) In lieu of any other employee contributions, except for | ||||||
10 | the contribution to the defined contribution plan under | ||||||
11 | subsection (k) of this Section, each employee shall contribute | ||||||
12 | 6.2% of his her or salary to the affected pension fund. | ||||||
13 | However, the employee contribution under this subsection shall | ||||||
14 | not exceed the amount of the normal cost of the benefits under | ||||||
15 | this Section (except for the defined contribution plan under | ||||||
16 | subsection (k) of this Section), expressed as a percentage of | ||||||
17 | payroll and determined on or before November 1 of each year by | ||||||
18 | the board of trustees of the affected pension fund. If the | ||||||
19 | board of trustees of the affected pension fund determines that | ||||||
20 | the 6.2% employee contribution rate exceeds the normal cost of | ||||||
21 | the benefits under this Section (except for the defined | ||||||
22 | contribution plan under subsection (k) of this Section), then | ||||||
23 | on or before December 1 of that year, the board of trustees | ||||||
24 | shall certify the amount of the normal cost of the benefits | ||||||
25 | under this Section (except for the defined contribution plan | ||||||
26 | under subsection (k) of this Section), expressed as a |
| |||||||
| |||||||
1 | percentage of payroll, to the State Actuary and the Commission | ||||||
2 | on Government Forecasting and Accountability, and the employee | ||||||
3 | contribution under this subsection shall be reduced to that | ||||||
4 | amount beginning January 1 of the following year. Thereafter, | ||||||
5 | if the normal cost of the benefits under this Section (except | ||||||
6 | for the defined contribution plan under subsection (k) of this | ||||||
7 | Section), expressed as a percentage of payroll and determined | ||||||
8 | on or before November 1 of each year by the board of trustees | ||||||
9 | of the affected pension fund, exceeds 6.2% of salary, then on | ||||||
10 | or before December 1 of that year, the board of trustees shall | ||||||
11 | certify the normal cost to the State Actuary and the Commission | ||||||
12 | on Government Forecasting and Accountability, and the employee | ||||||
13 | contributions shall revert back to 6.2% of salary beginning | ||||||
14 | January 1 of the following year. | ||||||
15 | (k) No later than 5 months after the resolution or | ||||||
16 | ordinance date, an affected pension fund shall prepare and | ||||||
17 | implement a defined contribution plan for members or | ||||||
18 | participants who are subject to this Section. The defined | ||||||
19 | contribution plan developed under this subsection shall be a | ||||||
20 | plan that aggregates employer and employee contributions in | ||||||
21 | individual participant accounts which, after meeting any other | ||||||
22 | requirements, are used for payouts after retirement in | ||||||
23 | accordance with this subsection and any other applicable laws. | ||||||
24 | (1) Each member or participant shall contribute a | ||||||
25 | minimum of 4% of his or her salary to the defined | ||||||
26 | contribution plan. |
| |||||||
| |||||||
1 | (2) For each participant in the defined contribution | ||||||
2 | plan who has been employed with the same employer for at | ||||||
3 | least one year, employer contributions shall be paid into | ||||||
4 | that participant's accounts at a rate expressed as a | ||||||
5 | percentage of salary. This rate may be set for individual | ||||||
6 | employees, but shall be no higher than 6% of salary and | ||||||
7 | shall be no lower than 2% of salary. | ||||||
8 | (3) Employer contributions shall vest when those | ||||||
9 | contributions are paid into a member's or participant's | ||||||
10 | account. | ||||||
11 | (4) The defined contribution plan shall provide a | ||||||
12 | variety of options for investments. These options shall | ||||||
13 | include investments handled by the Illinois State Board of | ||||||
14 | Investment as well as private sector investment options. | ||||||
15 | (5) The defined contribution plan shall provide a | ||||||
16 | variety of options for payouts to retirees and their | ||||||
17 | survivors. | ||||||
18 | (6) To the extent authorized under federal law and as | ||||||
19 | authorized by the affected pension fund, the defined | ||||||
20 | contribution plan shall allow former participants in the | ||||||
21 | plan to transfer or roll over employee and employer | ||||||
22 | contributions, and the earnings thereon, into other | ||||||
23 | qualified retirement plans. | ||||||
24 | (7) Each affected pension fund shall reduce the | ||||||
25 | employee contributions credited to the member's defined | ||||||
26 | contribution plan account by an amount determined by that |
| |||||||
| |||||||
1 | affected pension fund to cover the cost of offering the | ||||||
2 | benefits under this subsection and any applicable | ||||||
3 | administrative fees. | ||||||
4 | (8) No person shall begin participating in the defined | ||||||
5 | contribution plan until it has attained qualified plan | ||||||
6 | status and received all necessary approvals from the U.S. | ||||||
7 | Internal Revenue Service. | ||||||
8 | (l) By accepting the benefits under this Section, a member | ||||||
9 | or participant acknowledges and consents that benefits once | ||||||
10 | earned may not be diminished, but that future benefits may be | ||||||
11 | modified, including, but not limited to, changes in the | ||||||
12 | retirement age at which a member or participant becomes | ||||||
13 | eligible to receive future benefits, changes in the amount of | ||||||
14 | the automatic annual increase for those future benefits, or the | ||||||
15 | amount of the retirement annuity. Any increase in benefits | ||||||
16 | under this Section does not apply unless it is approved by | ||||||
17 | resolution or ordinance of the governing body of the unit of | ||||||
18 | local government with regard to the members or participants | ||||||
19 | under that unit of local government. | ||||||
20 | (m) In the case of a conflict between the provisions of | ||||||
21 | this Section and any other provision of this Code, the | ||||||
22 | provisions of this Section shall control. | ||||||
23 | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
| ||||||
24 | Sec. 2-101. Creation of system. A retirement system is | ||||||
25 | created to provide
retirement annuities, survivor's annuities |
| |||||||
| |||||||
1 | and other benefits for certain
members of the General Assembly, | ||||||
2 | certain elected state officials , and their
beneficiaries.
| ||||||
3 | The system shall be known as the "General Assembly | ||||||
4 | Retirement System".
All its funds and property shall be a trust | ||||||
5 | separate from all other
entities, maintained for the purpose of | ||||||
6 | securing payment of annuities and
benefits under this Article.
| ||||||
7 | Participation in the retirement system created under this | ||||||
8 | Article is
restricted to persons who became participants before | ||||||
9 | the effective date of this amendatory Act of the 100th General | ||||||
10 | Assembly.
Beginning on that date, the System shall not accept | ||||||
11 | any new participants.
| ||||||
12 | (Source: P.A. 83-1440.)
| ||||||
13 | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
| ||||||
14 | Sec. 2-105. Member. "Member": Members of the General | ||||||
15 | Assembly of this
State , including persons who enter military | ||||||
16 | service while a member of the
General Assembly , and any person | ||||||
17 | serving as Governor, Lieutenant Governor,
Secretary of State, | ||||||
18 | Treasurer, Comptroller, or Attorney General for the period
of | ||||||
19 | service in such office.
| ||||||
20 | Any person who has served for 10 or more years as Clerk or | ||||||
21 | Assistant Clerk
of the House of Representatives, Secretary or | ||||||
22 | Assistant Secretary of the
Senate, or any combination thereof, | ||||||
23 | may elect to become a member
of this system while thenceforth | ||||||
24 | engaged in such service by filing a
written election with the | ||||||
25 | board. Any person so electing shall be
deemed an active member |
| |||||||
| |||||||
1 | of the General Assembly for the purpose of validating
and | ||||||
2 | transferring any service credits earned under any of the funds | ||||||
3 | and systems
established under Articles 3 through 18 of this | ||||||
4 | Code.
| ||||||
5 | However, notwithstanding any other provision of this | ||||||
6 | Article, a person
shall not be deemed a member for the purposes | ||||||
7 | of this Article unless he or she
became a participant of the | ||||||
8 | System before the effective date of this amendatory Act of the | ||||||
9 | 100th General Assembly.
| ||||||
10 | (Source: P.A. 85-1008.)
| ||||||
11 | (40 ILCS 5/2-105.3 new) | ||||||
12 | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A | ||||||
13 | participant who first became a participant before January 1, | ||||||
14 | 2011.
| ||||||
15 | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
| ||||||
16 | Sec. 2-107. Participant. "Participant": Any member who | ||||||
17 | elects to
participate; and any former member who elects to | ||||||
18 | continue participation
under Section 2-117.1, for the duration | ||||||
19 | of such continued participation. However, notwithstanding any | ||||||
20 | other provision of this Article, a person
shall not be deemed a | ||||||
21 | participant for the purposes of this Article unless he or she
| ||||||
22 | became a participant of the System before the effective date of | ||||||
23 | this amendatory Act of the 100th General Assembly.
| ||||||
24 | (Source: P.A. 86-1488.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been
held unconstitutional)
| ||||||
4 | Sec. 2-124. Contributions by State.
| ||||||
5 | (a) The State shall make contributions to the System by
| ||||||
6 | appropriations of amounts which, together with the | ||||||
7 | contributions of
participants, interest earned on investments, | ||||||
8 | and other income
will meet the cost of maintaining and | ||||||
9 | administering the System on a 90%
funded basis in accordance | ||||||
10 | with actuarial recommendations.
| ||||||
11 | (b) The Board shall determine the amount of State
| ||||||
12 | contributions required for each fiscal year on the basis of the
| ||||||
13 | actuarial tables and other assumptions adopted by the Board and | ||||||
14 | the
prescribed rate of interest, using the formula in | ||||||
15 | subsection (c).
| ||||||
16 | (c) For State fiscal years 2018 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 total payroll, including payroll that is | ||||||
24 | not deemed pensionable, but excluding payroll attributable to | ||||||
25 | participants in the defined contribution plan under Section |
| |||||||
| |||||||
1 | 2-165.1, over the years remaining to and including fiscal year | ||||||
2 | 2045 and shall be determined under the projected unit credit | ||||||
3 | actuarial cost method. | ||||||
4 | Beginning in State fiscal year 2018, any increase or | ||||||
5 | decrease in State contribution over the prior fiscal year due | ||||||
6 | exclusively to changes in actuarial or investment assumptions | ||||||
7 | adopted by the Board shall be included in the State | ||||||
8 | contribution to the System, as a percentage of the applicable | ||||||
9 | employee payroll, and shall be increased in equal annual | ||||||
10 | increments so that by the State fiscal year occurring 5 years | ||||||
11 | after the adoption of the actuarial or investment assumptions, | ||||||
12 | the State is contributing at the rate otherwise required under | ||||||
13 | this Section. | ||||||
14 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
15 | contribution
to the System to be made by the State for each | ||||||
16 | fiscal year shall be an amount
determined by the System to be | ||||||
17 | sufficient to bring the total assets of the
System up to 90% of | ||||||
18 | the total actuarial liabilities of the System by the end of
| ||||||
19 | State fiscal year 2045. In making these determinations, the | ||||||
20 | required State
contribution shall be calculated each year as a | ||||||
21 | level percentage of payroll
over the years remaining to and | ||||||
22 | including fiscal year 2045 and shall be
determined under the | ||||||
23 | projected unit credit actuarial cost method.
| ||||||
24 | For State fiscal years 1996 through 2005, the State | ||||||
25 | contribution to
the System, as a percentage of the applicable | ||||||
26 | employee payroll, shall be
increased in equal annual increments |
| |||||||
| |||||||
1 | so that by State fiscal year 2011, the
State is contributing at | ||||||
2 | the rate required under this Section.
| ||||||
3 | Notwithstanding any other provision of this Article, the | ||||||
4 | total required State
contribution for State fiscal year 2006 is | ||||||
5 | $4,157,000.
| ||||||
6 | Notwithstanding any other provision of this Article, the | ||||||
7 | total required State
contribution for State fiscal year 2007 is | ||||||
8 | $5,220,300.
| ||||||
9 | For each of State fiscal years 2008 through 2009, the State | ||||||
10 | contribution to
the System, as a percentage of the applicable | ||||||
11 | employee payroll, shall be
increased in equal annual increments | ||||||
12 | from the required State contribution for State fiscal year | ||||||
13 | 2007, so that by State fiscal year 2011, the
State is | ||||||
14 | contributing at the rate otherwise required under this Section.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State contribution for State fiscal year 2010 is | ||||||
17 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
18 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
19 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
20 | expenses determined by the System's share of total bond | ||||||
21 | proceeds, (ii) any amounts received from the General Revenue | ||||||
22 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
23 | proceeds due to the issuance of discounted bonds, if | ||||||
24 | applicable. | ||||||
25 | Notwithstanding any other provision of this Article, the
| ||||||
26 | total required State contribution for State fiscal year 2011 is
|
| |||||||
| |||||||
1 | the amount recertified by the System on or before April 1, 2011 | ||||||
2 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
3 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
4 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
5 | bond sale
expenses determined by the System's share of total | ||||||
6 | bond
proceeds, (ii) any amounts received from the General | ||||||
7 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
8 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
9 | applicable. | ||||||
10 | Beginning in State fiscal year 2046, the minimum State | ||||||
11 | contribution for
each fiscal year shall be the amount needed to | ||||||
12 | maintain the total assets of
the System at 90% of the total | ||||||
13 | actuarial liabilities of the System.
| ||||||
14 | Amounts received by the System pursuant to Section 25 of | ||||||
15 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
16 | Finance Act in any fiscal year do not reduce and do not | ||||||
17 | constitute payment of any portion of the minimum State | ||||||
18 | contribution required under this Article in that fiscal year. | ||||||
19 | Such amounts shall not reduce, and shall not be included in the | ||||||
20 | calculation of, the required State contributions under this | ||||||
21 | Article in any future year until the System has reached a | ||||||
22 | funding ratio of at least 90%. A reference in this Article to | ||||||
23 | the "required State contribution" or any substantially similar | ||||||
24 | term does not include or apply to any amounts payable to the | ||||||
25 | System under Section 25 of the Budget Stabilization Act.
| ||||||
26 | Notwithstanding any other provision of this Section, the |
| |||||||
| |||||||
1 | required State
contribution for State fiscal year 2005 and for | ||||||
2 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
3 | under this Section and
certified under Section 2-134, shall not | ||||||
4 | exceed an amount equal to (i) the
amount of the required State | ||||||
5 | contribution that would have been calculated under
this Section | ||||||
6 | for that fiscal year if the System had not received any | ||||||
7 | payments
under subsection (d) of Section 7.2 of the General | ||||||
8 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
9 | total debt service payments for that fiscal
year on the bonds | ||||||
10 | issued in fiscal year 2003 for the purposes of that Section | ||||||
11 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
12 | the same as the System's portion of
the total moneys | ||||||
13 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
14 | Obligation Bond Act. In determining this maximum for State | ||||||
15 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
16 | in item (i) shall be increased, as a percentage of the | ||||||
17 | applicable employee payroll, in equal increments calculated | ||||||
18 | from the sum of the required State contribution for State | ||||||
19 | fiscal year 2007 plus the applicable portion of the State's | ||||||
20 | total debt service payments for fiscal year 2007 on the bonds | ||||||
21 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
22 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
23 | 2011, the
State is contributing at the rate otherwise required | ||||||
24 | under this Section.
| ||||||
25 | (d) For purposes of determining the required State | ||||||
26 | contribution to the System, the value of the System's assets |
| |||||||
| |||||||
1 | shall be equal to the actuarial value of the System's assets, | ||||||
2 | which shall be calculated as follows: | ||||||
3 | As of June 30, 2008, the actuarial value of the System's | ||||||
4 | assets shall be equal to the market value of the assets as of | ||||||
5 | that date. In determining the actuarial value of the System's | ||||||
6 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
7 | gains or losses from investment return incurred in a fiscal | ||||||
8 | year shall be recognized in equal annual amounts over the | ||||||
9 | 5-year period following that fiscal year. | ||||||
10 | (e) For purposes of determining the required State | ||||||
11 | contribution to the system for a particular year, the actuarial | ||||||
12 | value of assets shall be assumed to earn a rate of return equal | ||||||
13 | to the system's actuarially assumed rate of return. | ||||||
14 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
15 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
16 | 7-13-12.)
| ||||||
17 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
18 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
19 | which has been
held unconstitutional)
| ||||||
20 | Sec. 2-134. To certify required State contributions and | ||||||
21 | submit vouchers.
| ||||||
22 | (a) The Board shall certify to the Governor on or before | ||||||
23 | December 15 of each
year until December 15, 2011 the amount of | ||||||
24 | the required State contribution to the System for the next
| ||||||
25 | fiscal year and shall specifically identify the System's |
| |||||||
| |||||||
1 | projected State normal cost for that fiscal year. The | ||||||
2 | certification shall include a copy of the actuarial
| ||||||
3 | recommendations upon which it is based and shall specifically | ||||||
4 | identify the System's projected State normal cost for that | ||||||
5 | fiscal year.
| ||||||
6 | On or before November 1 of each year, beginning November 1, | ||||||
7 | 2012, the Board shall submit to the State Actuary, the | ||||||
8 | Governor, and the General Assembly a proposed certification of | ||||||
9 | the amount of the required State contribution to the System for | ||||||
10 | the next fiscal year, along with all of the actuarial | ||||||
11 | assumptions, calculations, and data upon which that proposed | ||||||
12 | certification is based. On or before January 1 of each year | ||||||
13 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
14 | preliminary report concerning the proposed certification and | ||||||
15 | identifying, if necessary, recommended changes in actuarial | ||||||
16 | assumptions that the Board must consider before finalizing its | ||||||
17 | certification of the required State contributions. On or before | ||||||
18 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
19 | shall certify to the Governor and the General Assembly the | ||||||
20 | amount of the required State contribution for the next fiscal | ||||||
21 | year. The Board's certification must note any deviations from | ||||||
22 | the State Actuary's recommended changes, the reason or reasons | ||||||
23 | for not following the State Actuary's recommended changes, and | ||||||
24 | the fiscal impact of not following the State Actuary's | ||||||
25 | recommended changes on the required State contribution. | ||||||
26 | On or before May 1, 2004, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to
the Governor the amount of the required State | ||||||
2 | contribution to the System for
State fiscal year 2005, taking | ||||||
3 | into account the amounts appropriated to and
received by the | ||||||
4 | System under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act.
| ||||||
6 | On or before July 1, 2005, the Board shall recalculate and | ||||||
7 | recertify
to the Governor the amount of the required State
| ||||||
8 | contribution to the System for State fiscal year 2006, taking | ||||||
9 | into account the changes in required State contributions made | ||||||
10 | by this amendatory Act of the 94th General Assembly.
| ||||||
11 | On or before April 1, 2011, the Board shall recalculate and | ||||||
12 | recertify to the Governor the amount of the required State | ||||||
13 | contribution to the System for State fiscal year 2011, applying | ||||||
14 | the changes made by Public Act 96-889 to the System's assets | ||||||
15 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
16 | was approved on that date. | ||||||
17 | As soon as practical after the effective date of this | ||||||
18 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
19 | recalculate and recertify to the State Actuary, the Governor, | ||||||
20 | and the General Assembly the amount of the State contribution | ||||||
21 | to the System for State fiscal year 2018, taking into account | ||||||
22 | the changes in required State contributions made by this | ||||||
23 | amendatory Act of the 100th General Assembly. The State Actuary | ||||||
24 | shall review the assumptions and valuations underlying the | ||||||
25 | Board's revised certification and issue a preliminary report | ||||||
26 | concerning the proposed recertification and identifying, if |
| |||||||
| |||||||
1 | necessary, recommended changes in actuarial assumptions that | ||||||
2 | the Board must consider before finalizing its certification of | ||||||
3 | the required State contributions. The Board's final | ||||||
4 | certification must note any deviations from the State Actuary's | ||||||
5 | recommended changes, the reason or reasons for not following | ||||||
6 | the State Actuary's recommended changes, and the fiscal impact | ||||||
7 | of not following the State Actuary's recommended changes on the | ||||||
8 | required State contribution. | ||||||
9 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
10 | possible after the
15th day of each month the Board shall | ||||||
11 | submit vouchers for payment of State
contributions to the | ||||||
12 | System, in a total monthly amount of one-twelfth of the
| ||||||
13 | required annual State contribution certified under subsection | ||||||
14 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
15 | General Assembly through June 30, 2004, the Board shall not
| ||||||
16 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
17 | of the
fiscal year 2004 certified contribution amount | ||||||
18 | determined
under this Section after taking into consideration | ||||||
19 | the transfer to the
System under subsection (d) of Section | ||||||
20 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
21 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
22 | funds appropriated to the System for that fiscal year. If in | ||||||
23 | any month
the amount remaining unexpended from all other | ||||||
24 | appropriations to the System for
the applicable fiscal year | ||||||
25 | (including the appropriations to the System under
Section 8.12 | ||||||
26 | of the State Finance Act and Section 1 of the State Pension |
| |||||||
| |||||||
1 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
2 | lawfully vouchered under
this Section, the difference shall be | ||||||
3 | paid from the General Revenue Fund under
the continuing | ||||||
4 | appropriation authority provided in Section 1.1 of the State
| ||||||
5 | Pension Funds Continuing Appropriation Act.
| ||||||
6 | (c) The full amount of any annual appropriation for the | ||||||
7 | System for
State fiscal year 1995 shall be transferred and made | ||||||
8 | available to the System
at the beginning of that fiscal year at | ||||||
9 | the request of the Board.
Any excess funds remaining at the end | ||||||
10 | of any fiscal year from appropriations
shall be retained by the | ||||||
11 | System as a general reserve to meet the System's
accrued | ||||||
12 | liabilities.
| ||||||
13 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
14 | 97-694, eff. 6-18-12.)
| ||||||
15 | (40 ILCS 5/2-154.5 new) | ||||||
16 | Sec. 2-154.5. Accelerated pension benefit payment. | ||||||
17 | (a) As used in this Section: | ||||||
18 | "Eligible person" means a person who: | ||||||
19 | (1) has terminated service; | ||||||
20 | (2) has accrued sufficient service credit to be | ||||||
21 | eligible to receive a retirement annuity under this | ||||||
22 | Article; | ||||||
23 | (3) has not received any retirement annuity under this | ||||||
24 | Article; and | ||||||
25 | (4) does not have a QILDRO in effect against him or her |
| |||||||
| |||||||
1 | under this Article. | ||||||
2 | "Pension benefit" means the benefits under this Article, or | ||||||
3 | Article 1 as it relates to those benefits, including any | ||||||
4 | anticipated annual increases, that an eligible person is | ||||||
5 | entitled to upon attainment of the applicable retirement age. | ||||||
6 | "Pension benefit" also includes applicable survivor's or | ||||||
7 | disability benefits. | ||||||
8 | (b) Before January 1, 2018, the System shall calculate, | ||||||
9 | using actuarial tables and other assumptions adopted by the | ||||||
10 | Board, the net present value of pension benefits for each | ||||||
11 | eligible person and shall offer each eligible person the | ||||||
12 | opportunity to irrevocably elect to receive an amount | ||||||
13 | determined by the System to be equal to 70% of the net present | ||||||
14 | value of his or her pension benefits in lieu of receiving any | ||||||
15 | pension benefit. The offer shall specify the dollar amount that | ||||||
16 | the eligible person will receive if he or she so elects and | ||||||
17 | shall expire when a subsequent offer is made to an eligible | ||||||
18 | person. The System shall make a good faith effort to contact | ||||||
19 | every eligible person to notify him or her of the election and | ||||||
20 | of the amount of the accelerated pension benefit payment. | ||||||
21 | Beginning January 1, 2018 and until July 1, 2018, 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 |
| |||||||
| |||||||
1 | Retirement Systems Reciprocal Act with respect to service under | ||||||
2 | this Article. | ||||||
3 | (c) A person's credits and creditable service under this | ||||||
4 | Article shall be terminated upon the person's receipt of an | ||||||
5 | accelerated pension benefit payment under this Section, and no | ||||||
6 | other benefit shall be paid under this Article based on those | ||||||
7 | terminated credits and creditable service, including any | ||||||
8 | retirement, survivor, or other benefit; except that to the | ||||||
9 | extent that participation, benefits, or premiums under the | ||||||
10 | State Employees Group Insurance Act of 1971 are based on the | ||||||
11 | amount of service credit, the terminated service credit shall | ||||||
12 | be used for that purpose. | ||||||
13 | (d) If a person who has received an accelerated pension | ||||||
14 | benefit payment under this Section returns to active service | ||||||
15 | under this Article, then: | ||||||
16 | (1) Any benefits under the System earned as a result of | ||||||
17 | that return to active service shall be based solely on the | ||||||
18 | person's credits and creditable service arising from the | ||||||
19 | return to active service. | ||||||
20 | (2) The accelerated pension benefit payment may not be | ||||||
21 | repaid to the System, and the terminated credits and | ||||||
22 | creditable service may not under any circumstances be | ||||||
23 | reinstated. | ||||||
24 | (e) As a condition of receiving an accelerated pension | ||||||
25 | benefit payment, an eligible person must have another | ||||||
26 | retirement plan or account qualified under the Internal Revenue |
| |||||||
| |||||||
1 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
2 | payment to be rolled into. The accelerated pension benefit | ||||||
3 | payment under this Section may be subject to withholding or | ||||||
4 | payment of applicable taxes, but to the extent permitted by | ||||||
5 | federal law, a person who receives an accelerated pension | ||||||
6 | benefit payment under this Section must direct the System to | ||||||
7 | pay all of that payment as a rollover into another retirement | ||||||
8 | plan or account qualified under the Internal Revenue Code of | ||||||
9 | 1986, as amended. | ||||||
10 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
11 | Illinois Finance Authority and the General Assembly the amount | ||||||
12 | by which the total amount of accelerated pension benefit | ||||||
13 | payments made under this Section exceed the amount appropriated | ||||||
14 | to the System for the purpose of making those payments. | ||||||
15 | (g) The Board shall adopt any rules necessary to implement | ||||||
16 | this Section. | ||||||
17 | (h) No provision of this Section shall be interpreted in a | ||||||
18 | way that would cause the applicable System to cease to be a | ||||||
19 | qualified plan under the Internal Revenue Code of 1986. | ||||||
20 | (40 ILCS 5/2-162) | ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been
held unconstitutional)
| ||||||
23 | Sec. 2-162. Application and expiration of new benefit | ||||||
24 | increases. | ||||||
25 | (a) As used in this Section, "new benefit increase" means |
| |||||||
| |||||||
1 | an increase in the amount of any benefit provided under this | ||||||
2 | Article, or an expansion of the conditions of eligibility for | ||||||
3 | any benefit under this Article, that results from an amendment | ||||||
4 | to this Code that takes effect after the effective date of this | ||||||
5 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
6 | increase", however, does not include any benefit increase | ||||||
7 | resulting from the changes made to this Article by this | ||||||
8 | amendatory Act of the 100th General Assembly. | ||||||
9 | (b) Notwithstanding any other provision of this Code or any | ||||||
10 | subsequent amendment to this Code, every new benefit increase | ||||||
11 | is subject to this Section and shall be deemed to be granted | ||||||
12 | only in conformance with and contingent upon compliance with | ||||||
13 | the provisions of this Section.
| ||||||
14 | (c) The Public Act enacting a new benefit increase must | ||||||
15 | identify and provide for payment to the System of additional | ||||||
16 | funding at least sufficient to fund the resulting annual | ||||||
17 | increase in cost to the System as it accrues. | ||||||
18 | Every new benefit increase is contingent upon the General | ||||||
19 | Assembly providing the additional funding required under this | ||||||
20 | subsection. The Commission on Government Forecasting and | ||||||
21 | Accountability shall analyze whether adequate additional | ||||||
22 | funding has been provided for the new benefit increase and | ||||||
23 | shall report its analysis to the Public Pension Division of the | ||||||
24 | Department of Insurance Financial and Professional Regulation . | ||||||
25 | A new benefit increase created by a Public Act that does not | ||||||
26 | include the additional funding required under this subsection |
| |||||||
| |||||||
1 | is null and void. If the Public Pension Division determines | ||||||
2 | that the additional funding provided for a new benefit increase | ||||||
3 | under this subsection is or has become inadequate, it may so | ||||||
4 | certify to the Governor and the State Comptroller and, in the | ||||||
5 | absence of corrective action by the General Assembly, the new | ||||||
6 | benefit increase shall expire at the end of the fiscal year in | ||||||
7 | which the certification is made.
| ||||||
8 | (d) Every new benefit increase shall expire 5 years after | ||||||
9 | its effective date or on such earlier date as may be specified | ||||||
10 | in the language enacting the new benefit increase or provided | ||||||
11 | under subsection (c). This does not prevent the General | ||||||
12 | Assembly from extending or re-creating a new benefit increase | ||||||
13 | by law. | ||||||
14 | (e) Except as otherwise provided in the language creating | ||||||
15 | the new benefit increase, a new benefit increase that expires | ||||||
16 | under this Section continues to apply to persons who applied | ||||||
17 | and qualified for the affected benefit while the new benefit | ||||||
18 | increase was in effect and to the affected beneficiaries and | ||||||
19 | alternate payees of such persons, but does not apply to any | ||||||
20 | other person, including without limitation a person who | ||||||
21 | continues in service after the expiration date and did not | ||||||
22 | apply and qualify for the affected benefit while the new | ||||||
23 | benefit increase was in effect.
| ||||||
24 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
25 | (40 ILCS 5/2-165.1 new) |
| |||||||
| |||||||
1 | Sec. 2-165.1. Defined contribution plan. | ||||||
2 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
3 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
4 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
5 | by the number of active Tier 1 employees on the effective date | ||||||
6 | of this Section. The defined contribution plan developed under | ||||||
7 | this Section shall be a plan that aggregates employer and | ||||||
8 | employee contributions in individual participant accounts | ||||||
9 | which, after meeting any other requirements, are used for | ||||||
10 | payouts after retirement in accordance with this Section and | ||||||
11 | any other applicable laws. | ||||||
12 | As used in this Section, "defined benefit plan" means the | ||||||
13 | retirement plan available under this Article to Tier 1 | ||||||
14 | employees who have not made the election authorized under this | ||||||
15 | Section. | ||||||
16 | (1) Under the defined contribution plan, an active
Tier | ||||||
17 | 1 employee of this System could elect to cease accruing | ||||||
18 | benefits in the defined benefit plan under this Article and | ||||||
19 | begin accruing benefits for future service in the defined | ||||||
20 | contribution plan. Service credit under the defined | ||||||
21 | contribution plan may be used for determining retirement | ||||||
22 | eligibility under the defined benefit plan. | ||||||
23 | (2) Participants in the defined contribution plan
| ||||||
24 | shall pay employee contributions at the same rate as Tier 1 | ||||||
25 | employees in this System who do not participate in the | ||||||
26 | defined contribution plan. |
| |||||||
| |||||||
1 | (3) State contributions shall be paid into the
accounts | ||||||
2 | of all participants in the defined contribution plan at a | ||||||
3 | uniform rate, expressed as a percentage of compensation and | ||||||
4 | determined for each year. This rate shall be no higher than | ||||||
5 | the employer's normal cost for Tier 1 employees in the | ||||||
6 | defined benefit plan for that year, as determined by the | ||||||
7 | System and expressed as a percentage of compensation, and | ||||||
8 | shall be no lower than 3% of compensation. The State shall | ||||||
9 | adjust this rate annually. | ||||||
10 | (4) The defined contribution plan shall require 5
years | ||||||
11 | of participation in the defined contribution plan before | ||||||
12 | vesting in State contributions. If the participant fails to | ||||||
13 | vest in them, the State contributions, and the earnings | ||||||
14 | thereon, shall be forfeited. | ||||||
15 | (5) The defined contribution plan may provide for
| ||||||
16 | participants in the plan to be eligible for defined | ||||||
17 | disability benefits. If it does, the System shall reduce | ||||||
18 | the employee contributions credited to the participant's | ||||||
19 | defined contribution plan account by an amount determined | ||||||
20 | by the System to cover the cost of offering such benefits. | ||||||
21 | (6) The defined contribution plan shall provide a
| ||||||
22 | variety of options for investments. These options shall | ||||||
23 | include investments handled by the Illinois State Board of | ||||||
24 | Investment as well as private sector investment options. | ||||||
25 | (7) The defined contribution plan shall provide a
| ||||||
26 | variety of options for payouts to retirees and their |
| |||||||
| |||||||
1 | survivors. | ||||||
2 | (8) To the extent authorized under federal law and
as | ||||||
3 | authorized by the System, the plan shall allow former | ||||||
4 | participants in the plan to transfer or roll over employee | ||||||
5 | and vested State contributions, and the earnings thereon, | ||||||
6 | into other qualified retirement plans. | ||||||
7 | (9) The System shall reduce the employee
contributions | ||||||
8 | credited to the participant's defined contribution plan | ||||||
9 | account by an amount determined by the System to cover the | ||||||
10 | cost of offering these benefits and any applicable | ||||||
11 | administrative fees. | ||||||
12 | (b) Only persons who are active Tier 1 employees of the | ||||||
13 | System on the effective date of this Section are eligible to | ||||||
14 | participate in the defined contribution plan. Participation in | ||||||
15 | the defined contribution plan shall be limited to the first 5% | ||||||
16 | of eligible persons who elect to participate. The election to | ||||||
17 | participate in the defined contribution plan is voluntary and | ||||||
18 | irrevocable. | ||||||
19 | (c) An eligible active Tier 1 employee may irrevocably | ||||||
20 | elect to participate in the defined contribution plan by filing | ||||||
21 | with the System a written application to participate that is | ||||||
22 | received by the System prior to its determination that 5% of | ||||||
23 | eligible persons have elected to participate in the defined | ||||||
24 | contribution plan. | ||||||
25 | When the System first determines that 5% of eligible | ||||||
26 | persons have elected to participate in the defined contribution |
| |||||||
| |||||||
1 | plan, the System shall provide notice to previously eligible | ||||||
2 | employees that the plan is no longer available and shall cease | ||||||
3 | accepting applications to participate. | ||||||
4 | (d) The System shall make a good faith effort to contact | ||||||
5 | each active Tier 1 employee who is eligible to participate in | ||||||
6 | the defined contribution plan. The System shall mail | ||||||
7 | information describing the option to join the defined | ||||||
8 | contribution plan to each of these employees to his or her last | ||||||
9 | known address on file with the System. If the employee is not | ||||||
10 | responsive to other means of contact, it is sufficient for the | ||||||
11 | System to publish the details of the option on its website. | ||||||
12 | Upon request for further information describing the | ||||||
13 | option, the System shall provide employees with information | ||||||
14 | from the System before exercising the option to join the plan, | ||||||
15 | including information on the impact to their vested benefits or | ||||||
16 | non-vested service. The individual consultation shall include | ||||||
17 | projections of the participant's defined benefits at | ||||||
18 | retirement or earlier termination of service and the value of | ||||||
19 | the participant's account at retirement or earlier termination | ||||||
20 | of service. The System shall not provide advice or counseling | ||||||
21 | with respect to whether the employee should exercise the | ||||||
22 | option. The System shall inform Tier 1 employees who are | ||||||
23 | eligible to participate in the defined contribution plan that | ||||||
24 | they may also wish to obtain information and counsel relating | ||||||
25 | to their option from any other available source, including but | ||||||
26 | not limited to labor organizations, private counsel, and |
| |||||||
| |||||||
1 | financial advisors. | ||||||
2 | (e) In no event shall the System, its staff, its authorized | ||||||
3 | representatives, or the Board be liable for any information | ||||||
4 | given to an employee under this Section. The System may | ||||||
5 | coordinate with the Illinois Department of Central Management | ||||||
6 | Services and other retirement systems administering a defined | ||||||
7 | contribution plan in accordance with this amendatory Act of the | ||||||
8 | 100th General Assembly to provide information concerning the | ||||||
9 | 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 on or before January 15, 2018. | ||||||
19 | (h) The Illinois State Board of Investments shall be the | ||||||
20 | plan sponsor for the defined contribution plan established | ||||||
21 | under this Section. | ||||||
22 | (i) The intent of this amendatory Act of the 100th General | ||||||
23 | Assembly is to ensure that the State's normal cost of | ||||||
24 | participation in the defined contribution plan is similar, and | ||||||
25 | if possible equal, to the State's normal cost of participation | ||||||
26 | in the defined benefit plan, unless a lower State's normal cost |
| |||||||
| |||||||
1 | is necessary to ensure cost neutrality. | ||||||
2 | (40 ILCS 5/2-166.1 new) | ||||||
3 | Sec. 2-166.1. Defined contribution plan; termination. If | ||||||
4 | the defined contribution plan under Section 2-165.1 is | ||||||
5 | terminated or becomes inoperative pursuant to law, then each | ||||||
6 | participant in the plan shall automatically be deemed to have | ||||||
7 | been a contributing Tier 1 employee in the System's defined | ||||||
8 | benefit plan during the time in which he or she participated in | ||||||
9 | the defined contribution plan, and for that purpose the System | ||||||
10 | shall be entitled to recover the amounts in the participant's | ||||||
11 | defined contribution accounts. | ||||||
12 | (40 ILCS 5/14-103.41 new) | ||||||
13 | Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An | ||||||
14 | employee under this Article who first became a member or | ||||||
15 | participant before January 1, 2011 under any reciprocal | ||||||
16 | retirement system or pension fund established under this Code | ||||||
17 | other than a retirement system or pension fund established | ||||||
18 | under Article 2, 3, 4, 5, 6, or 18 of this Code.
| ||||||
19 | (40 ILCS 5/14-131)
| ||||||
20 | Sec. 14-131. Contributions by State.
| ||||||
21 | (a) The State shall make contributions to the System by | ||||||
22 | appropriations of
amounts which, together with other employer | ||||||
23 | contributions from trust, federal,
and other funds, employee |
| |||||||
| |||||||
1 | contributions, investment income, and other income,
will be | ||||||
2 | sufficient to meet the cost of maintaining and administering | ||||||
3 | the System
on a 90% funded basis in accordance with actuarial | ||||||
4 | recommendations.
| ||||||
5 | For the purposes of this Section and Section 14-135.08, | ||||||
6 | references to State
contributions refer only to employer | ||||||
7 | contributions and do not include employee
contributions that | ||||||
8 | are picked up or otherwise paid by the State or a
department on | ||||||
9 | behalf of the employee.
| ||||||
10 | (b) The Board shall determine the total amount of State | ||||||
11 | contributions
required for each fiscal year on the basis of the | ||||||
12 | actuarial tables and other
assumptions adopted by the Board, | ||||||
13 | using the formula in subsection (e).
| ||||||
14 | The Board shall also determine a State contribution rate | ||||||
15 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
16 | based on the total required State
contribution for that fiscal | ||||||
17 | year (less the amount received by the System from
| ||||||
18 | appropriations under Section 8.12 of the State Finance Act and | ||||||
19 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
20 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
21 | immediately preceding the applicable November 15
certification | ||||||
22 | deadline), the estimated payroll (including all forms of
| ||||||
23 | compensation) for personal services rendered by eligible | ||||||
24 | employees, and the
recommendations of the actuary.
| ||||||
25 | For the purposes of this Section and Section 14.1 of the | ||||||
26 | State Finance Act,
the term "eligible employees" includes |
| |||||||
| |||||||
1 | employees who participate in the System,
persons who may elect | ||||||
2 | to participate in the System but have not so elected,
persons | ||||||
3 | who are serving a qualifying period that is required for | ||||||
4 | participation,
and annuitants employed by a department as | ||||||
5 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
6 | (c) Contributions shall be made by the several departments | ||||||
7 | for each pay
period by warrants drawn by the State Comptroller | ||||||
8 | against their respective
funds or appropriations based upon | ||||||
9 | vouchers stating the amount to be so
contributed. These amounts | ||||||
10 | shall be based on the full rate certified by the
Board under | ||||||
11 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
12 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
13 | payment of the final payroll from fiscal year 2004
| ||||||
14 | appropriations, the several departments shall not make | ||||||
15 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
16 | instead make payments
as required under subsection (a-1) of | ||||||
17 | Section 14.1 of the State Finance Act.
The several departments | ||||||
18 | shall resume those contributions at the commencement of
fiscal | ||||||
19 | year 2005.
| ||||||
20 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
21 | fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only, | ||||||
22 | contributions by the several departments are not required to be | ||||||
23 | made for General Revenue Funds payrolls processed by the | ||||||
24 | Comptroller. Payrolls paid by the several departments from all | ||||||
25 | other State funds must continue to be processed pursuant to | ||||||
26 | subsection (c) of this Section. |
| |||||||
| |||||||
1 | (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015, | ||||||
2 | 2016, and 2017 only, on or as soon as possible after the 15th | ||||||
3 | day of each month, the Board shall submit vouchers for payment | ||||||
4 | of State contributions to the System, in a total monthly amount | ||||||
5 | of one-twelfth of the fiscal year General Revenue Fund | ||||||
6 | contribution as certified by the System pursuant to Section | ||||||
7 | 14-135.08 of the Illinois Pension Code. | ||||||
8 | (d) If an employee is paid from trust funds or federal | ||||||
9 | funds, the
department or other employer shall pay employer | ||||||
10 | contributions from those funds
to the System at the certified | ||||||
11 | rate, unless the terms of the trust or the
federal-State | ||||||
12 | agreement preclude the use of the funds for that purpose, in
| ||||||
13 | which case the required employer contributions shall be paid by | ||||||
14 | the State.
From the effective date of this amendatory
Act of | ||||||
15 | the 93rd General Assembly through the payment of the final
| ||||||
16 | payroll from fiscal year 2004 appropriations, the department or | ||||||
17 | other
employer shall not pay contributions for the remainder of | ||||||
18 | fiscal year
2004 but shall instead make payments as required | ||||||
19 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
20 | Act. The department or other employer shall
resume payment of
| ||||||
21 | contributions at the commencement of fiscal year 2005.
| ||||||
22 | (e) For State fiscal years 2018 through 2045, the minimum | ||||||
23 | contribution to the System to be made by the State for each | ||||||
24 | fiscal year shall be an amount determined by the System to be | ||||||
25 | sufficient to bring the total assets of the System up to 90% of | ||||||
26 | the total actuarial liabilities of the System by the end of |
| |||||||
| |||||||
1 | State fiscal year 2045. In making these determinations, the | ||||||
2 | required State contribution shall be calculated each year as a | ||||||
3 | level percentage of total payroll, including payroll that is | ||||||
4 | not deemed pensionable, over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be determined under the | ||||||
6 | projected unit credit actuarial cost method. | ||||||
7 | Beginning in State fiscal year 2018, any increase or | ||||||
8 | decrease in State contribution over the prior fiscal year due | ||||||
9 | exclusively to changes in actuarial or investment assumptions | ||||||
10 | adopted by the Board shall be included in the State | ||||||
11 | contribution to the System, as a percentage of the applicable | ||||||
12 | employee payroll, and shall be increased in equal annual | ||||||
13 | increments so that by the State fiscal year occurring 5 years | ||||||
14 | after the adoption of the actuarial or investment assumptions, | ||||||
15 | the State is contributing at the rate otherwise required under | ||||||
16 | this Section. | ||||||
17 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
18 | contribution
to the System to be made by the State for each | ||||||
19 | fiscal year shall be an amount
determined by the System to be | ||||||
20 | sufficient to bring the total assets of the
System up to 90% of | ||||||
21 | the total actuarial liabilities of the System by the end
of | ||||||
22 | State fiscal year 2045. In making these determinations, the | ||||||
23 | required State
contribution shall be calculated each year as a | ||||||
24 | level percentage of payroll
over the years remaining to and | ||||||
25 | including fiscal year 2045 and shall be
determined under the | ||||||
26 | projected unit credit actuarial cost method.
|
| |||||||
| |||||||
1 | For State fiscal years 1996 through 2005, the State | ||||||
2 | contribution to
the System, as a percentage of the applicable | ||||||
3 | employee payroll, shall be
increased in equal annual increments | ||||||
4 | so that by State fiscal year 2011, the
State is contributing at | ||||||
5 | the rate required under this Section; except that
(i) for State | ||||||
6 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
7 | law of this State, the certified percentage of the applicable | ||||||
8 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
9 | creditable service under Section
14-110 and 6.500% for all | ||||||
10 | other employees, notwithstanding any contrary
certification | ||||||
11 | made under Section 14-135.08 before the effective date of this
| ||||||
12 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
13 | State fiscal years, the State contribution to
the System shall | ||||||
14 | not be less than the following indicated percentages of the
| ||||||
15 | applicable employee payroll, even if the indicated percentage | ||||||
16 | will produce a
State contribution in excess of the amount | ||||||
17 | otherwise required under this
subsection and subsection (a):
| ||||||
18 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
19 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
20 | Notwithstanding any other provision of this Article, the | ||||||
21 | total required State
contribution to the System for State | ||||||
22 | fiscal year 2006 is $203,783,900.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State
contribution to the System for State | ||||||
25 | fiscal year 2007 is $344,164,400.
| ||||||
26 | For each of State fiscal years 2008 through 2009, the State |
| |||||||
| |||||||
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 General Revenue Fund contribution for | ||||||
8 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
9 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
10 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
11 | pro rata share of bond sale expenses determined by the System's | ||||||
12 | share of total bond proceeds, (ii) any amounts received from | ||||||
13 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
14 | reduction in bond proceeds due to the issuance of discounted | ||||||
15 | bonds, if applicable. | ||||||
16 | Notwithstanding any other provision of this Article, the
| ||||||
17 | total required State General Revenue Fund contribution for
| ||||||
18 | State fiscal year 2011 is the amount recertified by the System | ||||||
19 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
20 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
21 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
22 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
23 | determined by the System's
share of total bond proceeds, (ii) | ||||||
24 | any amounts received from
the General Revenue Fund in fiscal | ||||||
25 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
26 | issuance of discounted
bonds, if applicable. |
| |||||||
| |||||||
1 | Beginning in State fiscal year 2046, the minimum State | ||||||
2 | contribution for
each fiscal year shall be the amount needed to | ||||||
3 | maintain the total assets of
the System at 90% of the total | ||||||
4 | actuarial liabilities of the System.
| ||||||
5 | Amounts received by the System pursuant to Section 25 of | ||||||
6 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
7 | Finance Act in any fiscal year do not reduce and do not | ||||||
8 | constitute payment of any portion of the minimum State | ||||||
9 | contribution required under this Article in that fiscal year. | ||||||
10 | Such amounts shall not reduce, and shall not be included in the | ||||||
11 | calculation of, the required State contributions under this | ||||||
12 | Article in any future year until the System has reached a | ||||||
13 | funding ratio of at least 90%. A reference in this Article to | ||||||
14 | the "required State contribution" or any substantially similar | ||||||
15 | term does not include or apply to any amounts payable to the | ||||||
16 | System under Section 25 of the Budget Stabilization Act.
| ||||||
17 | Notwithstanding any other provision of this Section, the | ||||||
18 | required State
contribution for State fiscal year 2005 and for | ||||||
19 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
20 | under this Section and
certified under Section 14-135.08, shall | ||||||
21 | not exceed an amount equal to (i) the
amount of the required | ||||||
22 | State contribution that would have been calculated under
this | ||||||
23 | Section for that fiscal year if the System had not received any | ||||||
24 | payments
under subsection (d) of Section 7.2 of the General | ||||||
25 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
26 | total debt service payments for that fiscal
year on the bonds |
| |||||||
| |||||||
1 | issued in fiscal year 2003 for the purposes of that Section | ||||||
2 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
3 | the same as the System's portion of
the total moneys | ||||||
4 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act. In determining this maximum for State | ||||||
6 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
7 | in item (i) shall be increased, as a percentage of the | ||||||
8 | applicable employee payroll, in equal increments calculated | ||||||
9 | from the sum of the required State contribution for State | ||||||
10 | fiscal year 2007 plus the applicable portion of the State's | ||||||
11 | total debt service payments for fiscal year 2007 on the bonds | ||||||
12 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
13 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
14 | 2011, the
State is contributing at the rate otherwise required | ||||||
15 | under this Section.
| ||||||
16 | (f) After the submission of all payments for eligible | ||||||
17 | employees
from personal services line items in fiscal year 2004 | ||||||
18 | have been made,
the Comptroller shall provide to the System a | ||||||
19 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
20 | for personal services that would
have been covered by payments | ||||||
21 | to the System under this Section if the
provisions of this | ||||||
22 | amendatory Act of the 93rd General Assembly had not been
| ||||||
23 | enacted. Upon
receipt of the certification, the System shall | ||||||
24 | determine the amount
due to the System based on the full rate | ||||||
25 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
26 | 2004 in order to meet the State's
obligation under this |
| |||||||
| |||||||
1 | Section. The System shall compare this amount
due to the amount | ||||||
2 | received by the System in fiscal year 2004 through
payments | ||||||
3 | under this Section and under Section 6z-61 of the State Finance | ||||||
4 | Act.
If the amount
due is more than the amount received, the | ||||||
5 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
6 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
7 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
8 | Continuing Appropriation Act. If the amount due is less than | ||||||
9 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
10 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
11 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
12 | the Pension Contribution Fund as soon as practicable
after the | ||||||
13 | certification.
| ||||||
14 | (g) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (h) For purposes of determining the required State | ||||||
26 | contribution to the System for a particular year, the actuarial |
| |||||||
| |||||||
1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the System's actuarially assumed rate of return. | ||||||
3 | (i) After the submission of all payments for eligible | ||||||
4 | employees from personal services line items paid from the | ||||||
5 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
6 | Comptroller shall provide to the System a certification of the | ||||||
7 | sum of all fiscal year 2010 expenditures for personal services | ||||||
8 | that would have been covered by payments to the System under | ||||||
9 | this Section if the provisions of this amendatory Act of the | ||||||
10 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
11 | certification, the System shall determine the amount due to the | ||||||
12 | System based on the full rate certified by the Board under | ||||||
13 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
14 | State's obligation under this Section. The System shall compare | ||||||
15 | this amount due to the amount received by the System in fiscal | ||||||
16 | year 2010 through payments under this Section. If the amount | ||||||
17 | due is more than the amount received, the difference shall be | ||||||
18 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
19 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
20 | under Section 1.2 of the State Pension Funds Continuing | ||||||
21 | Appropriation Act. If the amount due is less than the amount | ||||||
22 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
23 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
24 | 2010 Overpayment shall be repaid by the System to the General | ||||||
25 | Revenue Fund as soon as practicable after the certification. | ||||||
26 | (j) After the submission of all payments for eligible |
| |||||||
| |||||||
1 | employees from personal services line items paid from the | ||||||
2 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
3 | Comptroller shall provide to the System a certification of the | ||||||
4 | sum of all fiscal year 2011 expenditures for personal services | ||||||
5 | that would have been covered by payments to the System under | ||||||
6 | this Section if the provisions of this amendatory Act of the | ||||||
7 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
8 | certification, the System shall determine the amount due to the | ||||||
9 | System based on the full rate certified by the Board under | ||||||
10 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
11 | State's obligation under this Section. The System shall compare | ||||||
12 | this amount due to the amount received by the System in fiscal | ||||||
13 | year 2011 through payments under this Section. If the amount | ||||||
14 | due is more than the amount received, the difference shall be | ||||||
15 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
16 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
17 | under Section 1.2 of the State Pension Funds Continuing | ||||||
18 | Appropriation Act. If the amount due is less than the amount | ||||||
19 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
20 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
21 | 2011 Overpayment shall be repaid by the System to the General | ||||||
22 | Revenue Fund as soon as practicable after the certification. | ||||||
23 | (k) For fiscal years 2012 through 2017 only, after the | ||||||
24 | submission of all payments for eligible employees from personal | ||||||
25 | services line items paid from the General Revenue Fund in the | ||||||
26 | fiscal year have been made, the Comptroller shall provide to |
| |||||||
| |||||||
1 | the System a certification of the sum of all expenditures in | ||||||
2 | the fiscal year for personal services. Upon receipt of the | ||||||
3 | certification, the System shall determine the amount due to the | ||||||
4 | System based on the full rate certified by the Board under | ||||||
5 | Section 14-135.08 for the fiscal year in order to meet the | ||||||
6 | State's obligation under this Section. The System shall compare | ||||||
7 | this amount due to the amount received by the System for the | ||||||
8 | fiscal year. If the amount due is more than the amount | ||||||
9 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
10 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
11 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
12 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
13 | due is less than the amount received, the difference shall be | ||||||
14 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
15 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
16 | by the System to the General Revenue Fund as soon as | ||||||
17 | practicable after the certification. | ||||||
18 | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, | ||||||
19 | eff. 7-9-15; 99-523, eff. 6-30-16.)
| ||||||
20 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been held unconstitutional)
| ||||||
23 | Sec. 14-135.08. To certify required State contributions. | ||||||
24 | (a)
To certify to the Governor and to each department, on | ||||||
25 | or before
November 15 of each year until November 15, 2011, the |
| |||||||
| |||||||
1 | required rate for State contributions to the
System for the | ||||||
2 | next State fiscal year, as determined under subsection (b) of
| ||||||
3 | Section 14-131. The certification to the Governor under this | ||||||
4 | subsection (a) shall include a copy of the
actuarial | ||||||
5 | recommendations upon which the rate is based and shall | ||||||
6 | specifically identify the System's projected State normal cost | ||||||
7 | for that fiscal year.
| ||||||
8 | (a-5) On or before November 1 of each year, beginning | ||||||
9 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
10 | the Governor, and the General Assembly a proposed certification | ||||||
11 | of the amount of the required State contribution to the System | ||||||
12 | for the next fiscal year, along with all of the actuarial | ||||||
13 | assumptions, calculations, and data upon which that proposed | ||||||
14 | certification is based. On or before January 1 of each year | ||||||
15 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
16 | preliminary report concerning the proposed certification and | ||||||
17 | identifying, if necessary, recommended changes in actuarial | ||||||
18 | assumptions that the Board must consider before finalizing its | ||||||
19 | certification of the required State contributions. On or before | ||||||
20 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
21 | shall certify to the Governor and the General Assembly the | ||||||
22 | amount of the required State contribution for the next fiscal | ||||||
23 | year. The Board's certification must note any deviations from | ||||||
24 | the State Actuary's recommended changes, the reason or reasons | ||||||
25 | for not following the State Actuary's recommended changes, and | ||||||
26 | the fiscal impact of not following the State Actuary's |
| |||||||
| |||||||
1 | recommended changes on the required State contribution. | ||||||
2 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
3 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
4 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
5 | amount of the State contribution to the System that would have
| ||||||
6 | been required for the next fiscal year if Section 1-161, | ||||||
7 | Section 14-155.2, and the changes made to Section 1-160 by this | ||||||
8 | amendatory Act of the 100th General Assembly had not taken | ||||||
9 | effect, using the
best and most recent available data but based | ||||||
10 | on the law in
effect on May 31, 2019. The Board shall submit to | ||||||
11 | the State
Actuary, the Governor, and the General Assembly a | ||||||
12 | proposed
certification, along with the relevant law, actuarial
| ||||||
13 | assumptions, calculations, and data upon which that
| ||||||
14 | certification is based. On or before January 1, 2020 and every | ||||||
15 | January 1 thereafter, the State Actuary shall issue a
| ||||||
16 | preliminary report concerning the proposed certification and
| ||||||
17 | identifying, if necessary, recommended changes in actuarial
| ||||||
18 | assumptions that the Board must consider before finalizing its
| ||||||
19 | certification. On or before January 15, 2020 and every January
| ||||||
20 | 1 thereafter, the Board shall certify to the Governor and the
| ||||||
21 | General Assembly the amount of the State contribution to the
| ||||||
22 | System that would have been required for the next fiscal year
| ||||||
23 | if Section 1-161, Section 14-155.2, and the changes made to | ||||||
24 | Section 1-160 by this amendatory Act of the 100th General | ||||||
25 | Assembly had not taken effect, using the best and most recent | ||||||
26 | available data but
based on the law in effect on May 31, 2019. |
| |||||||
| |||||||
1 | The Board's
certification must note any deviations from the | ||||||
2 | State Actuary's
recommended changes, the reason or reasons for | ||||||
3 | not following
the State Actuary's recommended changes, and the | ||||||
4 | impact of not
following the State Actuary's recommended | ||||||
5 | changes. | ||||||
6 | (b) The certifications under subsections (a) and (a-5) | ||||||
7 | shall include an additional amount necessary to pay all | ||||||
8 | principal of and interest on those general obligation bonds due | ||||||
9 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
10 | General Obligation Bond Act and issued to provide the proceeds | ||||||
11 | deposited by the State with the System in July 2003, | ||||||
12 | representing deposits other than amounts reserved under | ||||||
13 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
14 | fiscal year 2005, the Board shall make a supplemental | ||||||
15 | certification of the additional amount necessary to pay all | ||||||
16 | principal of and interest on those general obligation bonds due | ||||||
17 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
18 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
19 | the proceeds deposited by the State with the System in July | ||||||
20 | 2003, representing deposits other than amounts reserved under | ||||||
21 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
22 | practical after the effective date of this amendatory Act of | ||||||
23 | the 93rd General Assembly.
| ||||||
24 | On or before May 1, 2004, the Board shall recalculate and | ||||||
25 | recertify
to the Governor and to each department the amount of | ||||||
26 | the required State
contribution to the System and the required |
| |||||||
| |||||||
1 | rates for State contributions
to the System for State fiscal | ||||||
2 | year 2005, taking into account the amounts
appropriated to and | ||||||
3 | received by the System under subsection (d) of Section
7.2 of | ||||||
4 | the General Obligation Bond Act.
| ||||||
5 | On or before July 1, 2005, the Board shall recalculate and | ||||||
6 | recertify
to the Governor and to each department the amount of | ||||||
7 | the required State
contribution to the System and the required | ||||||
8 | rates for State contributions
to the System for State fiscal | ||||||
9 | year 2006, taking into account the changes in required State | ||||||
10 | contributions made by this amendatory Act of the 94th General | ||||||
11 | Assembly.
| ||||||
12 | On or before April 1, 2011, the Board shall recalculate and | ||||||
13 | recertify to the Governor and to each department the amount of | ||||||
14 | the required State contribution to the System for State fiscal | ||||||
15 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
16 | the System's assets and liabilities as of June 30, 2009 as | ||||||
17 | though Public Act 96-889 was approved on that date. | ||||||
18 | As soon as practical after the effective date of this | ||||||
19 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
20 | recalculate and recertify to the State Actuary, the Governor, | ||||||
21 | and the General Assembly the amount of the State contribution | ||||||
22 | to the System for State fiscal year 2018, taking into account | ||||||
23 | the changes in required State contributions made by this | ||||||
24 | amendatory Act of the 100th General Assembly. The State Actuary | ||||||
25 | shall review the assumptions and valuations underlying the | ||||||
26 | Board's revised certification and issue a preliminary report |
| |||||||
| |||||||
1 | concerning the proposed recertification and identifying, if | ||||||
2 | necessary, recommended changes in actuarial assumptions that | ||||||
3 | the Board must consider before finalizing its certification of | ||||||
4 | the required State contributions. The Board's final | ||||||
5 | certification must note any deviations from the State Actuary's | ||||||
6 | recommended changes, the reason or reasons for not following | ||||||
7 | the State Actuary's recommended changes, and the fiscal impact | ||||||
8 | of not following the State Actuary's recommended changes on the | ||||||
9 | required State contribution. | ||||||
10 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
11 | 97-694, eff. 6-18-12.)
| ||||||
12 | (40 ILCS 5/14-147.5 new) | ||||||
13 | Sec. 14-147.5. Accelerated pension benefit payment. | ||||||
14 | (a) As used in this Section: | ||||||
15 | "Eligible person" means a person who: | ||||||
16 | (1) has terminated service; | ||||||
17 | (2) has accrued sufficient service credit to be | ||||||
18 | eligible to receive a retirement annuity under this | ||||||
19 | Article; | ||||||
20 | (3) has not received any retirement annuity under this | ||||||
21 | Article; and | ||||||
22 | (4) does not have a QILDRO in effect against him or her | ||||||
23 | under this Article. | ||||||
24 | "Pension benefit" means the benefits under this Article, or | ||||||
25 | Article 1 as it relates to those benefits, including any |
| |||||||
| |||||||
1 | anticipated annual increases, that an eligible person is | ||||||
2 | entitled to upon attainment of the applicable retirement age. | ||||||
3 | "Pension benefit" also includes applicable survivor's or | ||||||
4 | disability benefits. | ||||||
5 | (b) Before January 1, 2018, the System shall calculate, | ||||||
6 | using actuarial tables and other assumptions adopted by the | ||||||
7 | Board, the net present value of pension benefits for each | ||||||
8 | eligible person and shall offer each eligible person the | ||||||
9 | opportunity to irrevocably elect to receive an amount | ||||||
10 | determined by the System to be equal to 70% of the net present | ||||||
11 | value of his or her pension benefits in lieu of receiving any | ||||||
12 | pension benefit. The offer shall specify the dollar amount that | ||||||
13 | the eligible person will receive if he or she so elects and | ||||||
14 | shall expire when a subsequent offer is made to an eligible | ||||||
15 | person. The System shall make a good faith effort to contact | ||||||
16 | every eligible person to notify him or her of the election and | ||||||
17 | of the amount of the accelerated pension benefit payment. | ||||||
18 | Beginning January 1, 2018 and until July 1, 2018, 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. | ||||||
26 | (c) A person's credits and creditable service under this |
| |||||||
| |||||||
1 | Article shall be terminated upon the person's receipt of an | ||||||
2 | accelerated pension benefit payment under this Section, and no | ||||||
3 | other benefit shall be paid under this Article based on those | ||||||
4 | terminated credits and creditable service, including any | ||||||
5 | retirement, survivor, or other benefit; except that to the | ||||||
6 | extent that participation, benefits, or premiums under the | ||||||
7 | State Employees Group Insurance Act of 1971 are based on the | ||||||
8 | amount of service credit, the terminated service credit shall | ||||||
9 | be used for that purpose. | ||||||
10 | (d) If a person who has received an accelerated pension | ||||||
11 | benefit payment under this Section returns to active service | ||||||
12 | under this Article, then: | ||||||
13 | (1) Any benefits under the System earned as a result of | ||||||
14 | that return to active service shall be based solely on the | ||||||
15 | person's credits and creditable service arising from the | ||||||
16 | return to active service. | ||||||
17 | (2) The accelerated pension benefit payment may not be | ||||||
18 | repaid to the System, and the terminated credits and | ||||||
19 | creditable service may not under any circumstances be | ||||||
20 | reinstated. | ||||||
21 | (e) As a condition of receiving an accelerated pension | ||||||
22 | benefit payment, an eligible person must have another | ||||||
23 | retirement plan or account qualified under the Internal Revenue | ||||||
24 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
25 | payment to be rolled into. The accelerated pension benefit | ||||||
26 | payment under this Section may be subject to withholding or |
| |||||||
| |||||||
1 | payment of applicable taxes, but to the extent permitted by | ||||||
2 | federal law, a person who receives an accelerated pension | ||||||
3 | benefit payment under this Section must direct the System to | ||||||
4 | pay all of that payment as a rollover into another retirement | ||||||
5 | plan or account qualified under the Internal Revenue Code of | ||||||
6 | 1986, as amended. | ||||||
7 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
8 | Illinois Finance Authority and the General Assembly the amount | ||||||
9 | by which the total amount of accelerated pension benefit | ||||||
10 | payments made under this Section exceed the amount appropriated | ||||||
11 | to the System for the purpose of making those payments. | ||||||
12 | (g) The Board shall adopt any rules necessary to implement | ||||||
13 | this Section. | ||||||
14 | (h) No provision of this Section shall be interpreted in a | ||||||
15 | way that would cause the applicable System to cease to be a | ||||||
16 | qualified plan under the Internal Revenue Code of 1986. | ||||||
17 | (40 ILCS 5/14-152.1) | ||||||
18 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
19 | which has been held unconstitutional)
| ||||||
20 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
21 | increases. | ||||||
22 | (a) As used in this Section, "new benefit increase" means | ||||||
23 | an increase in the amount of any benefit provided under this | ||||||
24 | Article, or an expansion of the conditions of eligibility for | ||||||
25 | any benefit under this Article, that results from an amendment |
| |||||||
| |||||||
1 | to this Code that takes effect after June 1, 2005 (the | ||||||
2 | effective date of Public Act 94-4). "New benefit increase", | ||||||
3 | however, does not include any benefit increase resulting from | ||||||
4 | the changes made to this Article by Public Act 96-37 or by this | ||||||
5 | amendatory Act of the 100th General Assembly this amendatory | ||||||
6 | Act of the 96th General Assembly .
| ||||||
7 | (b) Notwithstanding any other provision of this Code or any | ||||||
8 | subsequent amendment to this Code, every new benefit increase | ||||||
9 | is subject to this Section and shall be deemed to be granted | ||||||
10 | only in conformance with and contingent upon compliance with | ||||||
11 | the provisions of this Section.
| ||||||
12 | (c) The Public Act enacting a new benefit increase must | ||||||
13 | identify and provide for payment to the System of additional | ||||||
14 | funding at least sufficient to fund the resulting annual | ||||||
15 | increase in cost to the System as it accrues. | ||||||
16 | Every new benefit increase is contingent upon the General | ||||||
17 | Assembly providing the additional funding required under this | ||||||
18 | subsection. The Commission on Government Forecasting and | ||||||
19 | Accountability shall analyze whether adequate additional | ||||||
20 | funding has been provided for the new benefit increase and | ||||||
21 | shall report its analysis to the Public Pension Division of the | ||||||
22 | Department of Insurance Financial and Professional Regulation . | ||||||
23 | A new benefit increase created by a Public Act that does not | ||||||
24 | include the additional funding required under this subsection | ||||||
25 | is null and void. If the Public Pension Division determines | ||||||
26 | that the additional funding provided for a new benefit increase |
| |||||||
| |||||||
1 | under this subsection is or has become inadequate, it may so | ||||||
2 | certify to the Governor and the State Comptroller and, in the | ||||||
3 | absence of corrective action by the General Assembly, the new | ||||||
4 | benefit increase shall expire at the end of the fiscal year in | ||||||
5 | which the certification is made.
| ||||||
6 | (d) Every new benefit increase shall expire 5 years after | ||||||
7 | its effective date or on such earlier date as may be specified | ||||||
8 | in the language enacting the new benefit increase or provided | ||||||
9 | under subsection (c). This does not prevent the General | ||||||
10 | Assembly from extending or re-creating a new benefit increase | ||||||
11 | by law. | ||||||
12 | (e) Except as otherwise provided in the language creating | ||||||
13 | the new benefit increase, a new benefit increase that expires | ||||||
14 | under this Section continues to apply to persons who applied | ||||||
15 | and qualified for the affected benefit while the new benefit | ||||||
16 | increase was in effect and to the affected beneficiaries and | ||||||
17 | alternate payees of such persons, but does not apply to any | ||||||
18 | other person, including without limitation a person who | ||||||
19 | continues in service after the expiration date and did not | ||||||
20 | apply and qualify for the affected benefit while the new | ||||||
21 | benefit increase was in effect.
| ||||||
22 | (Source: P.A. 96-37, eff. 7-13-09.) | ||||||
23 | (40 ILCS 5/14-155.1 new) | ||||||
24 | Sec. 14-155.1. Defined contribution plan. | ||||||
25 | (a) By July 1, 2019, the System shall prepare and implement |
| |||||||
| |||||||
1 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
2 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
3 | by the number of active Tier 1 employees on the effective date | ||||||
4 | of this Section. The defined contribution plan developed under | ||||||
5 | this Section shall be a plan that aggregates employer and | ||||||
6 | employee contributions in individual participant accounts | ||||||
7 | which, after meeting any other requirements, are used for | ||||||
8 | payouts after retirement in accordance with this Section and | ||||||
9 | any other applicable laws. | ||||||
10 | As used in this Section, "defined benefit plan" means the | ||||||
11 | retirement plan available under this Article to Tier 1 | ||||||
12 | employees who have not made the election authorized under this | ||||||
13 | Section. | ||||||
14 | (1) Under the defined contribution plan, an active
Tier | ||||||
15 | 1 employee of this System could elect to cease accruing | ||||||
16 | benefits in the defined benefit plan under this Article and | ||||||
17 | begin accruing benefits for future service in the defined | ||||||
18 | contribution plan. Service credit under the defined | ||||||
19 | contribution plan may be used for determining retirement | ||||||
20 | eligibility under the defined benefit plan. | ||||||
21 | (2) Participants in the defined contribution plan
| ||||||
22 | shall pay employee contributions at the same rate as Tier 1 | ||||||
23 | employees in this System who do not participate in the | ||||||
24 | defined contribution plan. | ||||||
25 | (3) State contributions shall be paid into the
accounts | ||||||
26 | of all participants in the defined contribution plan at a |
| |||||||
| |||||||
1 | uniform rate, expressed as a percentage of compensation and | ||||||
2 | determined for each year. This rate shall be no higher than | ||||||
3 | the employer's normal cost for Tier 1 employees in the | ||||||
4 | defined benefit plan for that year, as determined by the | ||||||
5 | System and expressed as a percentage of compensation, and | ||||||
6 | shall be no lower than 3% of compensation. The State shall | ||||||
7 | adjust this rate annually. | ||||||
8 | (4) The defined contribution plan shall require 5
years | ||||||
9 | of participation in the defined contribution plan before | ||||||
10 | vesting in State contributions. If the participant fails to | ||||||
11 | vest in them, the State contributions, and the earnings | ||||||
12 | thereon, shall be forfeited. | ||||||
13 | (5) The defined contribution plan may provide for
| ||||||
14 | participants in the plan to be eligible for the defined | ||||||
15 | disability benefits available to other participants under | ||||||
16 | this Article. If it does, the System shall reduce the | ||||||
17 | employee contributions credited to the member's defined | ||||||
18 | contribution plan account by an amount determined by the | ||||||
19 | System to cover the cost of offering such benefits. | ||||||
20 | (6) The defined contribution plan shall provide a
| ||||||
21 | variety of options for investments. These options shall | ||||||
22 | include investments handled by the Illinois State Board of | ||||||
23 | Investment as well as private sector investment options. | ||||||
24 | (7) The defined contribution plan shall provide a
| ||||||
25 | variety of options for payouts to retirees and their | ||||||
26 | survivors. |
| |||||||
| |||||||
1 | (8) To the extent authorized under federal law and
as | ||||||
2 | authorized by the System, the plan shall allow former | ||||||
3 | participants in the plan to transfer or roll over employee | ||||||
4 | and vested State contributions, and the earnings thereon, | ||||||
5 | into other qualified retirement plans. | ||||||
6 | (9) The System shall reduce the employee
contributions | ||||||
7 | credited to the member's defined contribution plan account | ||||||
8 | by an amount determined by the System to cover the cost of | ||||||
9 | offering these benefits and any applicable administrative | ||||||
10 | fees. | ||||||
11 | (b) Only persons who are active Tier 1 employees of the | ||||||
12 | System on the effective date of this Section are eligible to | ||||||
13 | participate in the defined contribution plan. Participation in | ||||||
14 | the defined contribution plan shall be limited to the first 5% | ||||||
15 | of eligible persons who elect to participate. The election to | ||||||
16 | participate in the defined contribution plan is voluntary and | ||||||
17 | irrevocable. | ||||||
18 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
19 | participate in the defined contribution plan by filing with the | ||||||
20 | System a written application to participate that is received by | ||||||
21 | the System prior to its determination that 5% of eligible | ||||||
22 | persons have elected to participate in the defined contribution | ||||||
23 | plan. | ||||||
24 | When the System first determines that 5% of eligible | ||||||
25 | persons have elected to participate in the defined contribution | ||||||
26 | plan, the System shall provide notice to previously eligible |
| |||||||
| |||||||
1 | employees that the plan is no longer available and shall cease | ||||||
2 | accepting applications to participate. | ||||||
3 | (d) The System shall make a good faith effort to contact | ||||||
4 | each active Tier 1 employee who is eligible to participate in | ||||||
5 | the defined contribution plan. The System shall mail | ||||||
6 | information describing the option to join the defined | ||||||
7 | contribution plan to each of these employees to his or her last | ||||||
8 | known address on file with the System. If the employee is not | ||||||
9 | responsive to other means of contact, it is sufficient for the | ||||||
10 | System to publish the details of the option on its website. | ||||||
11 | Upon request for further information describing the | ||||||
12 | option, the System shall provide employees with information | ||||||
13 | from the System before exercising the option to join the plan, | ||||||
14 | including information on the impact to their vested benefits or | ||||||
15 | non-vested service. The individual consultation shall include | ||||||
16 | projections of the member's defined benefits at retirement or | ||||||
17 | earlier termination of service and the value of the member's | ||||||
18 | account at retirement or earlier termination of service. The | ||||||
19 | System shall not provide advice or counseling with respect to | ||||||
20 | whether the employee should exercise the option. The System | ||||||
21 | shall inform Tier 1 employees who are eligible to participate | ||||||
22 | in the defined contribution plan that they may also wish to | ||||||
23 | obtain information and counsel relating to their option from | ||||||
24 | any other available source, including, but not limited to, | ||||||
25 | labor organizations, private counsel, and financial advisors. | ||||||
26 | (e) In no event shall the System, its staff, its authorized |
| |||||||
| |||||||
1 | representatives, or the Board be liable for any information | ||||||
2 | given to an employee under this Section. The System may | ||||||
3 | coordinate with the Illinois Department of Central Management | ||||||
4 | Services and other retirement systems administering a defined | ||||||
5 | contribution plan in accordance with this amendatory Act of the | ||||||
6 | 100th General Assembly to provide information concerning the | ||||||
7 | impact of the option set forth in this Section. | ||||||
8 | (f) Notwithstanding any other provision of this Section, no | ||||||
9 | person shall begin participating in the defined contribution | ||||||
10 | plan until it has attained qualified plan status and received | ||||||
11 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
12 | (g) The System shall report on its progress under this | ||||||
13 | Section, including the available details of the defined | ||||||
14 | contribution plan and the System's plans for informing eligible | ||||||
15 | Tier 1 employees about the plan, to the Governor and the | ||||||
16 | General Assembly on or before January 15, 2019. | ||||||
17 | (h) The Illinois State Board of Investment shall be the | ||||||
18 | plan sponsor for the defined contribution plan established | ||||||
19 | under this Section. | ||||||
20 | (i) 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. |
| |||||||
| |||||||
1 | (40 ILCS 5/14-155.2 new) | ||||||
2 | Sec. 14-155.2. Defined contribution plan for certain | ||||||
3 | covered employees. | ||||||
4 | (a) As used in this Section: | ||||||
5 | "Defined benefit plan" means the retirement plan available | ||||||
6 | under this Article and Section 1-160 to eligible covered | ||||||
7 | employees who do not make the election authorized under this | ||||||
8 | Section. | ||||||
9 | "Eligible covered employee" means a covered employee who | ||||||
10 | first becomes a participant under this Article on or after 6 | ||||||
11 | months after the effective date of this amendatory Act of the | ||||||
12 | 100th General Assembly. | ||||||
13 | (b) In lieu of the defined benefit plan, an eligible | ||||||
14 | covered employee may irrevocably elect to participate in the | ||||||
15 | defined contribution plan under this Section. The election to | ||||||
16 | participate in the defined contribution plan must be made | ||||||
17 | within 30 days after becoming an eligible covered employee. The | ||||||
18 | election to participate in the defined contribution plan under | ||||||
19 | this Section is voluntary and irrevocable. | ||||||
20 | (c) No later than 5 months after the effective date of this
| ||||||
21 | amendatory Act of the 100th General Assembly, the System shall
| ||||||
22 | prepare and implement a voluntary defined contribution plan for | ||||||
23 | eligible covered employees. The defined
contribution plan | ||||||
24 | developed under this Section shall be a
plan that aggregates | ||||||
25 | employer and employee contributions in
individual participant | ||||||
26 | accounts which, after meeting any other
requirements, are used |
| |||||||
| |||||||
1 | for payouts after retirement in
accordance with this Section | ||||||
2 | and any other applicable laws. | ||||||
3 | (1) A participant in the defined contribution plan | ||||||
4 | shall contribute a minimum of 3% of his or her compensation | ||||||
5 | to the defined contribution plan. | ||||||
6 | (2) For persons who participate in the defined | ||||||
7 | contribution plan for at least one year, employer | ||||||
8 | contributions shall be paid into the accounts of those | ||||||
9 | participants at a rate of 3% of compensation. | ||||||
10 | (3) Employer contributions shall vest when those | ||||||
11 | contributions are paid into a participant's account. | ||||||
12 | (4) The defined contribution plan shall provide a | ||||||
13 | variety of options for investments. These options shall | ||||||
14 | include investments handled by the Illinois State Board of | ||||||
15 | Investment as well as private sector investment options. | ||||||
16 | (5) The defined contribution plan shall provide a | ||||||
17 | variety of options for payouts to retirees and their | ||||||
18 | survivors. | ||||||
19 | (6) To the extent authorized under federal law and as | ||||||
20 | authorized by the System, the defined contribution plan | ||||||
21 | shall allow former participants in the plan to transfer or | ||||||
22 | roll over employee and employer contributions, and the | ||||||
23 | earnings thereon, into other qualified retirement plans. | ||||||
24 | (7) The System shall reduce the employee contributions | ||||||
25 | credited to the participant's defined contribution plan | ||||||
26 | account by an amount determined by the System to cover the |
| |||||||
| |||||||
1 | cost of offering the benefits under this Section and any | ||||||
2 | applicable administrative fees. | ||||||
3 | (40 ILCS 5/14-156.1 new) | ||||||
4 | Sec. 14-156.1. Defined contribution plan; termination. If | ||||||
5 | the defined contribution plan under Section 14-155.1 is | ||||||
6 | terminated or becomes inoperative pursuant to law, then each | ||||||
7 | participant in the plan shall automatically be deemed to have | ||||||
8 | been a contributing Tier 1 employee in the System's defined | ||||||
9 | benefit plan during the time in which he or she participated in | ||||||
10 | the defined contribution plan, and for that purpose the System | ||||||
11 | shall be entitled to recover the amounts in the participant's | ||||||
12 | defined contribution accounts. | ||||||
13 | (40 ILCS 5/15-108.1) | ||||||
14 | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . | ||||||
15 | "Tier 1 member": A participant or an annuitant of a | ||||||
16 | retirement annuity under this Article, other than a participant | ||||||
17 | in the self-managed plan under Section 15-158.2, who first | ||||||
18 | became a participant or member before January 1, 2011 under any | ||||||
19 | reciprocal retirement system or pension fund established under | ||||||
20 | this Code, other than a retirement system or pension fund | ||||||
21 | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
22 | "Tier 1 member" includes a person who first became a | ||||||
23 | participant under this System before January 1, 2011 and who | ||||||
24 | accepts a refund and is subsequently reemployed by an employer |
| |||||||
| |||||||
1 | on or after January 1, 2011.
| ||||||
2 | "Tier 1 employee": A Tier 1 member who is a participating | ||||||
3 | employee, unless he or she is a disability benefit recipient | ||||||
4 | under Section 15-150. | ||||||
5 | (Source: P.A. 98-92, eff. 7-16-13.) | ||||||
6 | (40 ILCS 5/15-108.2) | ||||||
7 | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who | ||||||
8 | first becomes a participant under this Article on or after | ||||||
9 | January 1, 2011 and before 6 months after the effective date of | ||||||
10 | this amendatory Act of the 100th General Assembly , other than a | ||||||
11 | person in the self-managed plan established under Section | ||||||
12 | 15-158.2 or a person who makes the election under subsection | ||||||
13 | (c) of Section 1-161 , unless the person is otherwise a Tier 1 | ||||||
14 | member. The changes made to this Section by this amendatory Act | ||||||
15 | of the 98th General Assembly are a correction of existing law | ||||||
16 | and are intended to be retroactive to the effective date of | ||||||
17 | Public Act 96-889, notwithstanding the provisions of Section | ||||||
18 | 1-103.1 of this Code.
| ||||||
19 | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
| ||||||
20 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
21 | Sec. 15-155. Employer contributions.
| ||||||
22 | (a) The State of Illinois shall make contributions by | ||||||
23 | appropriations of
amounts which, together with the other | ||||||
24 | employer contributions from trust,
federal, and other funds, |
| |||||||
| |||||||
1 | employee contributions, income from investments,
and other | ||||||
2 | income of this System, will be sufficient to meet the cost of
| ||||||
3 | maintaining and administering the System on a 90% funded basis | ||||||
4 | in accordance
with actuarial recommendations.
| ||||||
5 | The Board shall determine the amount of State contributions | ||||||
6 | required for
each fiscal year on the basis of the actuarial | ||||||
7 | tables and other assumptions
adopted by the Board and the | ||||||
8 | recommendations of the actuary, using the formula
in subsection | ||||||
9 | (a-1).
| ||||||
10 | (a-1) For State fiscal years 2018 through 2045, the minimum | ||||||
11 | contribution to the System to be made by the State for each | ||||||
12 | fiscal year shall be an amount determined by the System to be | ||||||
13 | sufficient to bring the total assets of the System up to 90% of | ||||||
14 | the total actuarial liabilities of the System by the end of | ||||||
15 | State fiscal year 2045. In making these determinations, the | ||||||
16 | required State contribution shall be calculated each year as a | ||||||
17 | level percentage of total payroll, including payroll that is | ||||||
18 | not deemed pensionable, but excluding payroll attributable to | ||||||
19 | participants in the defined contribution plan under Section | ||||||
20 | 15-200.1, over the years remaining to and including fiscal year | ||||||
21 | 2045 and shall be determined under the projected unit credit | ||||||
22 | actuarial cost method. | ||||||
23 | Beginning in State fiscal year 2018, any increase or
| ||||||
24 | decrease in State contribution over the prior fiscal year due
| ||||||
25 | exclusively to changes in actuarial or investment assumptions
| ||||||
26 | adopted by the Board shall be included in the State
|
| |||||||
| |||||||
1 | contribution to the System, as a percentage of the applicable
| ||||||
2 | employee payroll, and shall be increased in equal annual
| ||||||
3 | increments so that by the State fiscal year occurring 5 years
| ||||||
4 | after the adoption of the actuarial or investment assumptions,
| ||||||
5 | the State is contributing at the rate otherwise required under
| ||||||
6 | this Section. | ||||||
7 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
8 | contribution
to the System to be made by the State for each | ||||||
9 | fiscal year shall be an amount
determined by the System to be | ||||||
10 | sufficient to bring the total assets of the
System up to 90% of | ||||||
11 | the total actuarial liabilities of the System by the end of
| ||||||
12 | State fiscal year 2045. In making these determinations, the | ||||||
13 | required State
contribution shall be calculated each year as a | ||||||
14 | level percentage of payroll
over the years remaining to and | ||||||
15 | including fiscal year 2045 and shall be
determined under the | ||||||
16 | projected unit credit actuarial cost method.
| ||||||
17 | For State fiscal years 1996 through 2005, the State | ||||||
18 | contribution to
the System, as a percentage of the applicable | ||||||
19 | employee payroll, shall be
increased in equal annual increments | ||||||
20 | so that by State fiscal year 2011, the
State is contributing at | ||||||
21 | the rate required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2006 is | ||||||
24 | $166,641,900.
| ||||||
25 | Notwithstanding any other provision of this Article, the | ||||||
26 | total required State
contribution for State fiscal year 2007 is |
| |||||||
| |||||||
1 | $252,064,100.
| ||||||
2 | For each of State fiscal years 2008 through 2009, the State | ||||||
3 | contribution to
the System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be
increased in equal annual increments | ||||||
5 | from the required State contribution for State fiscal year | ||||||
6 | 2007, so that by State fiscal year 2011, the
State is | ||||||
7 | contributing at the rate otherwise required under this Section.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State contribution for State fiscal year 2010 is | ||||||
10 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
11 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
12 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
13 | share of bond sale expenses determined by the System's share of | ||||||
14 | total bond proceeds, (ii) any amounts received from the General | ||||||
15 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
16 | proceeds due to the issuance of discounted bonds, if | ||||||
17 | applicable. | ||||||
18 | Notwithstanding any other provision of this Article, the
| ||||||
19 | total required State contribution for State fiscal year 2011 is
| ||||||
20 | the amount recertified by the System on or before April 1, 2011 | ||||||
21 | pursuant to Section 15-165 and shall be made from the State | ||||||
22 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
23 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
24 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
25 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
26 | received from the General
Revenue Fund in fiscal year 2011, and |
| |||||||
| |||||||
1 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
2 | discounted bonds, if
applicable. | ||||||
3 | Beginning in State fiscal year 2046, the minimum State | ||||||
4 | contribution for
each fiscal year shall be the amount needed to | ||||||
5 | maintain the total assets of
the System at 90% of the total | ||||||
6 | actuarial liabilities of the System.
| ||||||
7 | Amounts received by the System pursuant to Section 25 of | ||||||
8 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
9 | Finance Act in any fiscal year do not reduce and do not | ||||||
10 | constitute payment of any portion of the minimum State | ||||||
11 | contribution required under this Article in that fiscal year. | ||||||
12 | Such amounts shall not reduce, and shall not be included in the | ||||||
13 | calculation of, the required State contributions under this | ||||||
14 | Article in any future year until the System has reached a | ||||||
15 | funding ratio of at least 90%. A reference in this Article to | ||||||
16 | the "required State contribution" or any substantially similar | ||||||
17 | term does not include or apply to any amounts payable to the | ||||||
18 | System under Section 25 of the Budget Stabilization Act. | ||||||
19 | Notwithstanding any other provision of this Section, the | ||||||
20 | required State
contribution for State fiscal year 2005 and for | ||||||
21 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
22 | under this Section and
certified under Section 15-165, shall | ||||||
23 | not exceed an amount equal to (i) the
amount of the required | ||||||
24 | State contribution that would have been calculated under
this | ||||||
25 | Section for that fiscal year if the System had not received any | ||||||
26 | payments
under subsection (d) of Section 7.2 of the General |
| |||||||
| |||||||
1 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
2 | total debt service payments for that fiscal
year on the bonds | ||||||
3 | issued in fiscal year 2003 for the purposes of that Section | ||||||
4 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
5 | the same as the System's portion of
the total moneys | ||||||
6 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act. In determining this maximum for State | ||||||
8 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
9 | in item (i) shall be increased, as a percentage of the | ||||||
10 | applicable employee payroll, in equal increments calculated | ||||||
11 | from the sum of the required State contribution for State | ||||||
12 | fiscal year 2007 plus the applicable portion of the State's | ||||||
13 | total debt service payments for fiscal year 2007 on the bonds | ||||||
14 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
15 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
16 | 2011, the
State is contributing at the rate otherwise required | ||||||
17 | under this Section.
| ||||||
18 | (a-2) For employees first hired on or after 6 months after | ||||||
19 | the effective date of this amendatory Act of the 100th General | ||||||
20 | Assembly who have elected the benefits under Section 1-161 of | ||||||
21 | this Code, the employer shall annually contribute an amount, | ||||||
22 | expressed as a percentage of payroll, equal to the defined | ||||||
23 | benefit normal cost of the defined benefit plan, less the | ||||||
24 | employee contribution, plus 2%. On an annual basis, the System | ||||||
25 | shall certify to each employer the amount of unfunded liability | ||||||
26 | accrued in the employer's account to be paid by the employer so |
| |||||||
| |||||||
1 | that the System is 90% funded by the end of State fiscal year | ||||||
2 | 2045. The contributions shall be divided equally over a | ||||||
3 | 12-month period and made monthly. The employer shall also | ||||||
4 | contribute an amount equal to the employer defined | ||||||
5 | contribution, as set on an individual employee basis, under | ||||||
6 | paragraph (2) of subsection (k) of Section 1-161 during each | ||||||
7 | pay period. The System shall have the authority to adopt rules | ||||||
8 | regarding implementation of employer contributions. | ||||||
9 | (b) If an employee is paid from trust or federal funds, the | ||||||
10 | employer
shall pay to the Board contributions from those funds | ||||||
11 | which are
sufficient to cover the accruing normal costs on | ||||||
12 | behalf of the employee.
However, universities having employees | ||||||
13 | who are compensated out of local
auxiliary funds, income funds, | ||||||
14 | or service enterprise funds are not required
to pay such | ||||||
15 | contributions on behalf of those employees. The local auxiliary
| ||||||
16 | funds, income funds, and service enterprise funds of | ||||||
17 | universities shall not be
considered trust funds for the | ||||||
18 | purpose of this Article, but funds of alumni
associations, | ||||||
19 | foundations, and athletic associations which are affiliated | ||||||
20 | with
the universities included as employers under this Article | ||||||
21 | and other employers
which do not receive State appropriations | ||||||
22 | are considered to be trust funds for
the purpose of this | ||||||
23 | Article.
| ||||||
24 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
25 | each make
employer contributions to this System for their | ||||||
26 | respective firefighter
employees who participate in this |
| |||||||
| |||||||
1 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
2 | of contributions to be made by those municipalities shall
be | ||||||
3 | determined annually by the Board on the basis of the actuarial | ||||||
4 | assumptions
adopted by the Board and the recommendations of the | ||||||
5 | actuary, and shall be
expressed as a percentage of salary for | ||||||
6 | each such employee. The Board shall
certify the rate to the | ||||||
7 | affected municipalities as soon as may be practical.
The | ||||||
8 | employer contributions required under this subsection shall be | ||||||
9 | remitted by
the municipality to the System at the same time and | ||||||
10 | in the same manner as
employee contributions.
| ||||||
11 | (c) Through State fiscal year 1995: The total employer | ||||||
12 | contribution shall
be apportioned among the various funds of | ||||||
13 | the State and other employers,
whether trust, federal, or other | ||||||
14 | funds, in accordance with actuarial procedures
approved by the | ||||||
15 | Board. State of Illinois contributions for employers receiving
| ||||||
16 | State appropriations for personal services shall be payable | ||||||
17 | from appropriations
made to the employers or to the System. The | ||||||
18 | contributions for Class I
community colleges covering earnings | ||||||
19 | other than those paid from trust and
federal funds, shall be | ||||||
20 | payable solely from appropriations to the Illinois
Community | ||||||
21 | College Board or the System for employer contributions.
| ||||||
22 | (d) Beginning in State fiscal year 1996, the required State | ||||||
23 | contributions
to the System shall be appropriated directly to | ||||||
24 | the System and shall be payable
through vouchers issued in | ||||||
25 | accordance with subsection (c) of Section 15-165, except as | ||||||
26 | provided in subsection (g).
|
| |||||||
| |||||||
1 | (e) The State Comptroller shall draw warrants payable to | ||||||
2 | the System upon
proper certification by the System or by the | ||||||
3 | employer in accordance with the
appropriation laws and this | ||||||
4 | Code.
| ||||||
5 | (f) Normal costs under this Section means liability for
| ||||||
6 | pensions and other benefits which accrues to the System because | ||||||
7 | of the
credits earned for service rendered by the participants | ||||||
8 | during the
fiscal year and expenses of administering the | ||||||
9 | System, but shall not
include the principal of or any | ||||||
10 | redemption premium or interest on any bonds
issued by the Board | ||||||
11 | or any expenses incurred or deposits required in
connection | ||||||
12 | therewith.
| ||||||
13 | (g) For academic years beginning on or after June 1, 2005 | ||||||
14 | and before July 1, 2018, if If the amount of a participant's | ||||||
15 | earnings for any academic year used to determine the final rate | ||||||
16 | of earnings, determined on a full-time equivalent basis, | ||||||
17 | exceeds the amount of his or her earnings with the same | ||||||
18 | employer for the previous academic year, determined on a | ||||||
19 | full-time equivalent basis, by more than 6%, the participant's | ||||||
20 | employer shall pay to the System, in addition to all other | ||||||
21 | payments required under this Section and in accordance with | ||||||
22 | guidelines established by the System, the present value of the | ||||||
23 | increase in benefits resulting from the portion of the increase | ||||||
24 | in earnings that is in excess of 6%. This present value shall | ||||||
25 | be computed by the System on the basis of the actuarial | ||||||
26 | assumptions and tables used in the most recent actuarial |
| |||||||
| |||||||
1 | valuation of the System that is available at the time of the | ||||||
2 | computation. The System may require the employer to provide any | ||||||
3 | pertinent information or documentation. | ||||||
4 | Whenever it determines that a payment is or may be required | ||||||
5 | under this subsection (g), the System shall calculate the | ||||||
6 | amount of the payment and bill the employer for that amount. | ||||||
7 | The bill shall specify the calculations used to determine the | ||||||
8 | amount due. If the employer disputes the amount of the bill, it | ||||||
9 | may, within 30 days after receipt of the bill, apply to the | ||||||
10 | System in writing for a recalculation. The application must | ||||||
11 | specify in detail the grounds of the dispute and, if the | ||||||
12 | employer asserts that the calculation is subject to subsection | ||||||
13 | (h) or (i) of this Section, must include an affidavit setting | ||||||
14 | forth and attesting to all facts within the employer's | ||||||
15 | knowledge that are pertinent to the applicability of subsection | ||||||
16 | (h) or (i). Upon receiving a timely application for | ||||||
17 | recalculation, the System shall review the application and, if | ||||||
18 | appropriate, recalculate the amount due.
| ||||||
19 | The employer contributions required under this subsection | ||||||
20 | (g) may be paid in the form of a lump sum within 90 days after | ||||||
21 | receipt of the bill. If the employer contributions are not paid | ||||||
22 | within 90 days after receipt of the bill, then interest will be | ||||||
23 | charged at a rate equal to the System's annual actuarially | ||||||
24 | assumed rate of return on investment compounded annually from | ||||||
25 | the 91st day after receipt of the bill. Payments must be | ||||||
26 | concluded within 3 years after the employer's receipt of the |
| |||||||
| |||||||
1 | bill. | ||||||
2 | When assessing payment for any amount due under this | ||||||
3 | subsection (g), the System shall include earnings, to the | ||||||
4 | extent not established by a participant under Section 15-113.11 | ||||||
5 | or 15-113.12, that would have been paid to the participant had | ||||||
6 | the participant not taken (i) periods of voluntary or | ||||||
7 | involuntary furlough occurring on or after July 1, 2015 and on | ||||||
8 | or before June 30, 2017 or (ii) periods of voluntary pay | ||||||
9 | reduction in lieu of furlough occurring on or after July 1, | ||||||
10 | 2015 and on or before June 30, 2017. Determining earnings that | ||||||
11 | would have been paid to a participant had the participant not | ||||||
12 | taken periods of voluntary or involuntary furlough or periods | ||||||
13 | of voluntary pay reduction shall be the responsibility of the | ||||||
14 | employer, and shall be reported in a manner prescribed by the | ||||||
15 | System. | ||||||
16 | (g-1) Beginning in fiscal year 2019, if a contract or | ||||||
17 | collective bargaining agreement entered into, amended, or | ||||||
18 | renewed on or after the effective date of this amendatory Act | ||||||
19 | of the 100th General Assembly provides for earnings to exceed | ||||||
20 | the salaries provided under the preceding contract or | ||||||
21 | collective bargaining agreement, then the employer shall pay to | ||||||
22 | the System, in addition to all other payments required under | ||||||
23 | this Section and in accordance with guidelines established by | ||||||
24 | the System, the current value of the projected amount of the | ||||||
25 | increase in benefits, as determined by the System and | ||||||
26 | reflecting whether the participants covered under the contract |
| |||||||
| |||||||
1 | or collective bargaining agreement are Tier 1 members or Tier 2 | ||||||
2 | members, resulting from the portion of the earnings that exceed | ||||||
3 | the amount of the earnings provided under the preceding | ||||||
4 | contract or collective bargaining agreement. The System may | ||||||
5 | require the employer to provide any pertinent information or | ||||||
6 | documentation. | ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection (g-1), the System shall calculate the | ||||||
9 | amount of the payment and bill the employer for that amount. | ||||||
10 | The bill shall specify the calculations used to determine the | ||||||
11 | amount due. If the employer disputes the amount of the bill, it | ||||||
12 | may, within 30 days after receipt of the bill, apply to the | ||||||
13 | System in writing for a recalculation. The application must | ||||||
14 | specify in detail the grounds of the dispute. Upon receiving a | ||||||
15 | timely application for recalculation, the System shall review | ||||||
16 | the application and, if appropriate, recalculate the amount | ||||||
17 | due. | ||||||
18 | The employer contributions required under this subsection | ||||||
19 | (g-1) may be paid in the form of a lump sum within 90 days after | ||||||
20 | receipt of the bill. If the employer contributions are not paid | ||||||
21 | within 90 days after receipt of the bill, then interest shall | ||||||
22 | be charged at a rate equal to the System's annual actuarially | ||||||
23 | assumed rate of return on investment compounded annually from | ||||||
24 | the 91st day after receipt of the bill. Payments must be | ||||||
25 | concluded within 3 years after the employer's receipt of the | ||||||
26 | bill. |
| |||||||
| |||||||
1 | (h) This subsection (h) applies only to payments made or | ||||||
2 | salary increases given on or after June 1, 2005 but before July | ||||||
3 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
4 | require the System to refund any payments received before July | ||||||
5 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (g), the System shall exclude earnings increases paid to | ||||||
8 | participants under contracts or collective bargaining | ||||||
9 | agreements entered into, amended, or renewed before June 1, | ||||||
10 | 2005.
| ||||||
11 | When assessing payment for any amount due under subsection | ||||||
12 | (g), the System shall exclude earnings increases paid to a | ||||||
13 | participant at a time when the participant is 10 or more years | ||||||
14 | from retirement eligibility under Section 15-135.
| ||||||
15 | When assessing payment for any amount due under subsection | ||||||
16 | (g), the System shall exclude earnings increases resulting from | ||||||
17 | overload work, including a contract for summer teaching, or | ||||||
18 | overtime when the employer has certified to the System, and the | ||||||
19 | System has approved the certification, that: (i) in the case of | ||||||
20 | overloads (A) the overload work is for the sole purpose of | ||||||
21 | academic instruction in excess of the standard number of | ||||||
22 | instruction hours for a full-time employee occurring during the | ||||||
23 | academic year that the overload is paid and (B) the earnings | ||||||
24 | increases are equal to or less than the rate of pay for | ||||||
25 | academic instruction computed using the participant's current | ||||||
26 | salary rate and work schedule; and (ii) in the case of |
| |||||||
| |||||||
1 | overtime, the overtime was necessary for the educational | ||||||
2 | mission. | ||||||
3 | When assessing payment for any amount due under subsection | ||||||
4 | (g), the System shall exclude any earnings increase resulting | ||||||
5 | from (i) a promotion for which the employee moves from one | ||||||
6 | classification to a higher classification under the State | ||||||
7 | Universities Civil Service System, (ii) a promotion in academic | ||||||
8 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
9 | promotion that the Illinois Community College Board has | ||||||
10 | recommended in accordance with subsection (k) of this Section. | ||||||
11 | These earnings increases shall be excluded only if the | ||||||
12 | promotion is to a position that has existed and been filled by | ||||||
13 | a member for no less than one complete academic year and the | ||||||
14 | earnings increase as a result of the promotion is an increase | ||||||
15 | that results in an amount no greater than the average salary | ||||||
16 | paid for other similar positions. | ||||||
17 | (i) When assessing payment for any amount due under | ||||||
18 | subsection (g), the System shall exclude any salary increase | ||||||
19 | described in subsection (h) of this Section given on or after | ||||||
20 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
21 | collective bargaining agreement entered into, amended, or | ||||||
22 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
23 | Notwithstanding any other provision of this Section, any | ||||||
24 | payments made or salary increases given after June 30, 2014 | ||||||
25 | shall be used in assessing payment for any amount due under | ||||||
26 | subsection (g) of this Section.
|
| |||||||
| |||||||
1 | (j) The System shall prepare a report and file copies of | ||||||
2 | the report with the Governor and the General Assembly by | ||||||
3 | January 1, 2007 that contains all of the following information: | ||||||
4 | (1) The number of recalculations required by the | ||||||
5 | changes made to this Section by Public Act 94-1057 for each | ||||||
6 | employer. | ||||||
7 | (2) The dollar amount by which each employer's | ||||||
8 | contribution to the System was changed due to | ||||||
9 | recalculations required by Public Act 94-1057. | ||||||
10 | (3) The total amount the System received from each | ||||||
11 | employer as a result of the changes made to this Section by | ||||||
12 | Public Act 94-4. | ||||||
13 | (4) The increase in the required State contribution | ||||||
14 | resulting from the changes made to this Section by Public | ||||||
15 | Act 94-1057. | ||||||
16 | (k) The Illinois Community College Board shall adopt rules | ||||||
17 | for recommending lists of promotional positions submitted to | ||||||
18 | the Board by community colleges and for reviewing the | ||||||
19 | promotional lists on an annual basis. When recommending | ||||||
20 | promotional lists, the Board shall consider the similarity of | ||||||
21 | the positions submitted to those positions recognized for State | ||||||
22 | universities by the State Universities Civil Service System. | ||||||
23 | The Illinois Community College Board shall file a copy of its | ||||||
24 | findings with the System. The System shall consider the | ||||||
25 | findings of the Illinois Community College Board when making | ||||||
26 | determinations under this Section. The System shall not exclude |
| |||||||
| |||||||
1 | any earnings increases resulting from a promotion when the | ||||||
2 | promotion was not submitted by a community college. Nothing in | ||||||
3 | this subsection (k) shall require any community college to | ||||||
4 | submit any information to the Community College Board.
| ||||||
5 | (l) For purposes of determining the required State | ||||||
6 | contribution to the System, the value of the System's assets | ||||||
7 | shall be equal to the actuarial value of the System's assets, | ||||||
8 | which shall be calculated as follows: | ||||||
9 | As of June 30, 2008, the actuarial value of the System's | ||||||
10 | assets shall be equal to the market value of the assets as of | ||||||
11 | that date. In determining the actuarial value of the System's | ||||||
12 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
13 | gains or losses from investment return incurred in a fiscal | ||||||
14 | year shall be recognized in equal annual amounts over the | ||||||
15 | 5-year period following that fiscal year. | ||||||
16 | (m) For purposes of determining the required State | ||||||
17 | contribution to the system for a particular year, the actuarial | ||||||
18 | value of assets shall be assumed to earn a rate of return equal | ||||||
19 | to the system's actuarially assumed rate of return. | ||||||
20 | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; | ||||||
21 | 99-897, eff. 1-1-17 .)
| ||||||
22 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
23 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
24 | which has been held unconstitutional)
| ||||||
25 | Sec. 15-165. To certify amounts and submit vouchers.
|
| |||||||
| |||||||
1 | (a) The Board shall certify to the Governor on or before | ||||||
2 | November 15 of each
year until November 15, 2011 the | ||||||
3 | appropriation required from State funds for the purposes of | ||||||
4 | this
System for the following fiscal year. The certification | ||||||
5 | under this subsection (a) shall include a copy
of the actuarial | ||||||
6 | recommendations upon which it is based and shall specifically | ||||||
7 | identify the System's projected State normal cost for that | ||||||
8 | fiscal year and the projected State cost for the self-managed | ||||||
9 | plan for that fiscal year.
| ||||||
10 | On or before May 1, 2004, the Board shall recalculate and | ||||||
11 | recertify to
the Governor the amount of the required State | ||||||
12 | contribution to the System for
State fiscal year 2005, taking | ||||||
13 | into account the amounts appropriated to and
received by the | ||||||
14 | System under subsection (d) of Section 7.2 of the General
| ||||||
15 | Obligation Bond Act.
| ||||||
16 | On or before July 1, 2005, the Board shall recalculate and | ||||||
17 | recertify
to the Governor the amount of the required State
| ||||||
18 | contribution to the System for State fiscal year 2006, taking | ||||||
19 | into account the changes in required State contributions made | ||||||
20 | by this amendatory Act of the 94th General Assembly.
| ||||||
21 | On or before April 1, 2011, the Board shall recalculate and | ||||||
22 | recertify to the Governor the amount of the required State | ||||||
23 | contribution to the System for State fiscal year 2011, applying | ||||||
24 | the changes made by Public Act 96-889 to the System's assets | ||||||
25 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
26 | was approved on that date. |
| |||||||
| |||||||
1 | (a-5) On or before November 1 of each year, beginning | ||||||
2 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
3 | the Governor, and the General Assembly a proposed certification | ||||||
4 | of the amount of the required State contribution to the System | ||||||
5 | for the next fiscal year, along with all of the actuarial | ||||||
6 | assumptions, calculations, and data upon which that proposed | ||||||
7 | certification is based. On or before January 1 of each year, | ||||||
8 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
9 | preliminary report concerning the proposed certification and | ||||||
10 | identifying, if necessary, recommended changes in actuarial | ||||||
11 | assumptions that the Board must consider before finalizing its | ||||||
12 | certification of the required State contributions. On or before | ||||||
13 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
14 | shall certify to the Governor and the General Assembly the | ||||||
15 | amount of the required State contribution for the next fiscal | ||||||
16 | year. The Board's certification must note, in a written | ||||||
17 | response to the State Actuary, any deviations from the State | ||||||
18 | Actuary's recommended changes, the reason or reasons for not | ||||||
19 | following the State Actuary's recommended changes, and the | ||||||
20 | fiscal impact of not following the State Actuary's recommended | ||||||
21 | changes on the required State contribution. | ||||||
22 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
23 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
24 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
25 | amount of the State contribution to the System that would have
| ||||||
26 | been required for the next fiscal year if Section 1-161, |
| |||||||
| |||||||
1 | subsection (a-2) of Section 15-155, and the changes made to | ||||||
2 | Section 1-160 by this amendatory Act of the 100th General | ||||||
3 | Assembly had not taken effect, using the
best and most recent | ||||||
4 | available data but based on the law in
effect on May 31, 2019. | ||||||
5 | The Board shall submit to the State
Actuary, the Governor, and | ||||||
6 | the General Assembly a proposed
certification, along with the | ||||||
7 | relevant law, actuarial
assumptions, calculations, and data | ||||||
8 | upon which that
certification is based. On or before January 1, | ||||||
9 | 2020 and every January 1 thereafter, the State Actuary shall | ||||||
10 | issue a
preliminary report concerning the proposed | ||||||
11 | certification and
identifying, if necessary, recommended | ||||||
12 | changes in actuarial
assumptions that the Board must consider | ||||||
13 | before finalizing its
certification. On or before January 15, | ||||||
14 | 2020 and every January
1 thereafter, the Board shall certify to | ||||||
15 | the Governor and the
General Assembly the amount of the State | ||||||
16 | contribution to the
System that would have been required for | ||||||
17 | the next fiscal year
if Section 1-161, subsection (a-2) of | ||||||
18 | Section 15-155, and the changes made to Section 1-160 by this | ||||||
19 | amendatory Act of the 100th General Assembly had not taken | ||||||
20 | effect, using the best and most recent available data but
based | ||||||
21 | on the law in effect on May 31, 2019. The Board's
certification | ||||||
22 | must note any deviations from the State Actuary's
recommended | ||||||
23 | changes, the reason or reasons for not following
the State | ||||||
24 | Actuary's recommended changes, and the impact of not
following | ||||||
25 | the State Actuary's recommended changes. | ||||||
26 | (a-15) As soon as practical after the effective date of |
| |||||||
| |||||||
1 | this amendatory Act of the 100th General Assembly, the Board | ||||||
2 | shall recalculate and recertify to the State Actuary, the | ||||||
3 | Governor, and the General Assembly the amount of the State | ||||||
4 | contribution to the System for State fiscal year 2018, taking | ||||||
5 | into account the changes in required State contributions made | ||||||
6 | by this amendatory Act of the 100th General Assembly. The State | ||||||
7 | Actuary shall review the assumptions and valuations underlying | ||||||
8 | the Board's revised certification and issue a preliminary | ||||||
9 | report concerning the proposed recertification and | ||||||
10 | identifying, if necessary, recommended changes in actuarial | ||||||
11 | assumptions that the Board must consider before finalizing its | ||||||
12 | certification of the required State contributions. The Board's | ||||||
13 | final certification must note any deviations from the State | ||||||
14 | Actuary's recommended changes, the reason or reasons for not | ||||||
15 | following the State Actuary's recommended changes, and the | ||||||
16 | fiscal impact of not following the State Actuary's recommended | ||||||
17 | changes on the required State contribution. | ||||||
18 | (b) The Board shall certify to the State Comptroller or | ||||||
19 | employer, as the
case may be, from time to time, by its | ||||||
20 | chairperson and secretary, with its seal
attached, the amounts | ||||||
21 | payable to the System from the various funds.
| ||||||
22 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
23 | possible after the
15th day of each month the Board shall | ||||||
24 | submit vouchers for payment of State
contributions to the | ||||||
25 | System, in a total monthly amount of one-twelfth of the
| ||||||
26 | required annual State contribution certified under subsection |
| |||||||
| |||||||
1 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
2 | General Assembly through June 30, 2004, the Board shall not
| ||||||
3 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
4 | of the
fiscal year 2004 certified contribution amount | ||||||
5 | determined
under this Section after taking into consideration | ||||||
6 | the transfer to the
System under subsection (b) of Section | ||||||
7 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
8 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
9 | funds appropriated to the System for that fiscal year.
| ||||||
10 | If in any month the amount remaining unexpended from all | ||||||
11 | other
appropriations to the System for the applicable fiscal | ||||||
12 | year (including the
appropriations to the System under Section | ||||||
13 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
14 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
15 | amount lawfully vouchered under this Section, the difference | ||||||
16 | shall be paid
from the General Revenue Fund under the | ||||||
17 | continuing appropriation authority
provided in Section 1.1 of | ||||||
18 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
19 | (d) So long as the payments received are the full amount | ||||||
20 | lawfully
vouchered under this Section, payments received by the | ||||||
21 | System under this
Section shall be applied first toward the | ||||||
22 | employer contribution to the
self-managed plan established | ||||||
23 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
24 | the employer's portion of the normal costs of the System,
as | ||||||
25 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
26 | be applied
toward the unfunded actuarial liabilities of the |
| |||||||
| |||||||
1 | System.
| ||||||
2 | (e) In the event that the System does not receive, as a | ||||||
3 | result of
legislative enactment or otherwise, payments | ||||||
4 | sufficient to
fully fund the employer contribution to the | ||||||
5 | self-managed plan
established under Section 15-158.2 and to | ||||||
6 | fully fund that portion of the
employer's portion of the normal | ||||||
7 | costs of the System, as calculated in
accordance with Section | ||||||
8 | 15-155(a-1), then any payments received shall be
applied | ||||||
9 | proportionately to the optional retirement program established | ||||||
10 | under
Section 15-158.2 and to the employer's portion of the | ||||||
11 | normal costs of the
System, as calculated in accordance with | ||||||
12 | Section 15-155(a-1).
| ||||||
13 | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
| ||||||
14 | (40 ILCS 5/15-185.5 new) | ||||||
15 | Sec. 15-185.5. Accelerated pension benefit payment. | ||||||
16 | (a) As used in this Section: | ||||||
17 | "Eligible person" means a person who: | ||||||
18 | (1) has terminated service; | ||||||
19 | (2) has accrued sufficient service credit to be | ||||||
20 | eligible to receive a retirement annuity under this | ||||||
21 | Article; | ||||||
22 | (3) has not received any retirement annuity under this | ||||||
23 | Article; | ||||||
24 | (4) does not have a QILDRO in effect against him or her | ||||||
25 | under this Article; and |
| |||||||
| |||||||
1 | (5) is not a participant in the self-managed plan under | ||||||
2 | Section 15-158.2. | ||||||
3 | "Pension benefit" means the benefits under this Article, or | ||||||
4 | Article 1 as it relates to those benefits, including any | ||||||
5 | anticipated annual increases, that an eligible person is | ||||||
6 | entitled to upon attainment of the applicable retirement age. | ||||||
7 | "Pension benefit" also includes applicable survivor's or | ||||||
8 | disability benefits. | ||||||
9 | (b) Before January 1, 2018, the System shall calculate, | ||||||
10 | using actuarial tables and other assumptions adopted by the | ||||||
11 | Board, the net present value of pension benefits for each | ||||||
12 | eligible person and shall offer each eligible person the | ||||||
13 | opportunity to irrevocably elect to receive an amount | ||||||
14 | determined by the System to be equal to 70% of the net present | ||||||
15 | value of his or her pension benefits in lieu of receiving any | ||||||
16 | pension benefit. The offer shall specify the dollar amount that | ||||||
17 | the eligible person will receive if he or she so elects and | ||||||
18 | shall expire when a subsequent offer is made to an eligible | ||||||
19 | person. The System shall make a good faith effort to contact | ||||||
20 | every eligible person to notify him or her of the election and | ||||||
21 | of the amount of the accelerated pension benefit payment. | ||||||
22 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
23 | eligible person may irrevocably elect to receive an accelerated | ||||||
24 | pension benefit payment in the amount that the System offers | ||||||
25 | under this subsection in lieu of receiving any pension benefit. | ||||||
26 | A person who elects to receive an accelerated pension benefit |
| |||||||
| |||||||
1 | payment under this Section may not elect to proceed under the | ||||||
2 | Retirement Systems Reciprocal Act with respect to service under | ||||||
3 | this Article. | ||||||
4 | (c) A person's credits and creditable service under this | ||||||
5 | Article shall be terminated upon the person's receipt of an | ||||||
6 | accelerated pension benefit payment under this Section, and no | ||||||
7 | other benefit shall be paid under this Article based on those | ||||||
8 | terminated credits and creditable service, including any | ||||||
9 | retirement, survivor, or other benefit; except that to the | ||||||
10 | extent that participation, benefits, or premiums under the | ||||||
11 | State Employees Group Insurance Act of 1971 are based on the | ||||||
12 | amount of service credit, the terminated service credit shall | ||||||
13 | be used for that 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 person must have another |
| |||||||
| |||||||
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 receives 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) Before January 1, 2019, the Board shall certify to the | ||||||
12 | Illinois Finance Authority and the General Assembly the amount | ||||||
13 | by which the total amount of accelerated pension benefit | ||||||
14 | payments made under this Section exceed the amount appropriated | ||||||
15 | to the System for the purpose of making those payments. | ||||||
16 | (g) The Board shall adopt any rules necessary to implement | ||||||
17 | this Section. | ||||||
18 | (h) No provision of this Section shall be interpreted in a | ||||||
19 | way that would cause the applicable System to cease to be a | ||||||
20 | qualified plan under the Internal Revenue Code of 1986. | ||||||
21 | (40 ILCS 5/15-198) | ||||||
22 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
23 | which has been held unconstitutional)
| ||||||
24 | Sec. 15-198. Application and expiration of new benefit | ||||||
25 | increases. |
| |||||||
| |||||||
1 | (a) As used in this Section, "new benefit increase" means | ||||||
2 | an increase in the amount of any benefit provided under this | ||||||
3 | Article, or an expansion of the conditions of eligibility for | ||||||
4 | any benefit under this Article, that results from an amendment | ||||||
5 | to this Code that takes effect after the effective date of this | ||||||
6 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
7 | increase", however, does not include any benefit increase | ||||||
8 | resulting from the changes made to this Article by this | ||||||
9 | amendatory Act of the 100th General Assembly. | ||||||
10 | (b) Notwithstanding any other provision of this Code or any | ||||||
11 | subsequent amendment to this Code, every new benefit increase | ||||||
12 | is subject to this Section and shall be deemed to be granted | ||||||
13 | only in conformance with and contingent upon compliance with | ||||||
14 | the provisions of this Section.
| ||||||
15 | (c) The Public Act enacting a new benefit increase must | ||||||
16 | identify and provide for payment to the System of additional | ||||||
17 | funding at least sufficient to fund the resulting annual | ||||||
18 | increase in cost to the System as it accrues. | ||||||
19 | Every new benefit increase is contingent upon the General | ||||||
20 | Assembly providing the additional funding required under this | ||||||
21 | subsection. The Commission on Government Forecasting and | ||||||
22 | Accountability shall analyze whether adequate additional | ||||||
23 | funding has been provided for the new benefit increase and | ||||||
24 | shall report its analysis to the Public Pension Division of the | ||||||
25 | Department of Insurance Financial and Professional Regulation . | ||||||
26 | A new benefit increase created by a Public Act that does not |
| |||||||
| |||||||
1 | include the additional funding required under this subsection | ||||||
2 | is null and void. If the Public Pension Division determines | ||||||
3 | that the additional funding provided for a new benefit increase | ||||||
4 | under this subsection is or has become inadequate, it may so | ||||||
5 | certify to the Governor and the State Comptroller and, in the | ||||||
6 | absence of corrective action by the General Assembly, the new | ||||||
7 | benefit increase shall expire at the end of the fiscal year in | ||||||
8 | which the certification is made.
| ||||||
9 | (d) Every new benefit increase shall expire 5 years after | ||||||
10 | its effective date or on such earlier date as may be specified | ||||||
11 | in the language enacting the new benefit increase or provided | ||||||
12 | under subsection (c). This does not prevent the General | ||||||
13 | Assembly from extending or re-creating a new benefit increase | ||||||
14 | by law. | ||||||
15 | (e) Except as otherwise provided in the language creating | ||||||
16 | the new benefit increase, a new benefit increase that expires | ||||||
17 | under this Section continues to apply to persons who applied | ||||||
18 | and qualified for the affected benefit while the new benefit | ||||||
19 | increase was in effect and to the affected beneficiaries and | ||||||
20 | alternate payees of such persons, but does not apply to any | ||||||
21 | other person, including without limitation a person who | ||||||
22 | continues in service after the expiration date and did not | ||||||
23 | apply and qualify for the affected benefit while the new | ||||||
24 | benefit increase was in effect.
| ||||||
25 | (Source: P.A. 94-4, eff. 6-1-05.) |
| |||||||
| |||||||
1 | (40 ILCS 5/15-200.1 new) | ||||||
2 | Sec. 15-200.1. Defined contribution plan. | ||||||
3 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
4 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
5 | Tier 1 employees. The System shall determine the 5% cap by the | ||||||
6 | number of Tier 1 employees on the effective date of this | ||||||
7 | Section. The defined contribution plan developed under this | ||||||
8 | Section shall be a plan that aggregates employer and employee | ||||||
9 | contributions in individual participant accounts which, after | ||||||
10 | meeting any other requirements, are used for payouts after | ||||||
11 | retirement in accordance with this Section and any other | ||||||
12 | applicable laws. | ||||||
13 | As used in this Section, "defined benefit plan" means the | ||||||
14 | retirement plan available under this Article to Tier 1 | ||||||
15 | employees who have not made the election authorized under this | ||||||
16 | Section. | ||||||
17 | (1) Under the defined contribution plan, a
Tier 1 | ||||||
18 | employee of this System could elect to cease accruing | ||||||
19 | benefits in the defined benefit plan under this Article and | ||||||
20 | begin accruing benefits for future service in the defined | ||||||
21 | contribution plan. Service credit under the defined | ||||||
22 | contribution plan may be used for determining retirement | ||||||
23 | eligibility under the defined benefit plan. A Tier 1 | ||||||
24 | employee who elects to cease accruing benefits in his or | ||||||
25 | her defined benefit plan shall be prohibited from | ||||||
26 | purchasing service credit on or after the date of his or |
| |||||||
| |||||||
1 | her election. A Tier 1 employee making the irrevocable | ||||||
2 | election provided under this Section shall not receive | ||||||
3 | interest accruals to his or her Rule 2 benefit on or after | ||||||
4 | the date of his or her election. | ||||||
5 | (2) Participants in the defined contribution plan
| ||||||
6 | shall pay employee contributions at the same rate as other | ||||||
7 | participants under this Article as determined by the | ||||||
8 | System. | ||||||
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 earnings 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 earnings, and shall | ||||||
16 | be no lower than 3% of earnings. The State shall adjust | ||||||
17 | 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
| ||||||
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 |
| |||||||
| |||||||
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 System as well as | ||||||
7 | 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 Tier 1 employees of the System on | ||||||
22 | the effective date of this Section are eligible to participate | ||||||
23 | in the defined contribution plan. Participation in the defined | ||||||
24 | contribution plan shall be limited to the first 5% of eligible | ||||||
25 | persons who elect to participate. The election to participate | ||||||
26 | in the defined contribution plan is voluntary and irrevocable. |
| |||||||
| |||||||
1 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
2 | participate in the defined contribution plan by filing with the | ||||||
3 | System a written application to participate that is received by | ||||||
4 | the System prior to its determination that 5% of eligible | ||||||
5 | persons have elected to participate in the defined contribution | ||||||
6 | plan. | ||||||
7 | When the System first determines that 5% of eligible | ||||||
8 | persons have elected to participate in the defined contribution | ||||||
9 | plan, the System shall provide notice to previously eligible | ||||||
10 | employees that the plan is no longer available and shall cease | ||||||
11 | accepting applications to participate. | ||||||
12 | (d) The System shall make a good faith effort to contact | ||||||
13 | each Tier 1 employee who is eligible to participate in the | ||||||
14 | defined contribution plan. The System shall mail information | ||||||
15 | describing the option to join the defined contribution plan to | ||||||
16 | each of these employees to his or her last known address on | ||||||
17 | file with the System. 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 |
| |||||||
| |||||||
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 labor | ||||||
8 | organizations, private counsel, and financial advisors. | ||||||
9 | (e) In no event shall the System, its staff, its authorized | ||||||
10 | representatives, or the Board be liable for any information | ||||||
11 | given to an employee under this Section. The System may | ||||||
12 | coordinate with the Illinois Department of Central Management | ||||||
13 | Services and other retirement systems administering a defined | ||||||
14 | contribution plan in accordance with this amendatory Act of the | ||||||
15 | 100th General Assembly to provide information concerning the | ||||||
16 | impact of the option set forth in this Section. | ||||||
17 | (f) Notwithstanding any other provision of this Section, no | ||||||
18 | person shall begin participating in the defined contribution | ||||||
19 | plan until it has attained qualified plan status and received | ||||||
20 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
21 | (g) The System shall report on its progress under this | ||||||
22 | Section, including the available details of the defined | ||||||
23 | contribution plan and the System's plans for informing eligible | ||||||
24 | Tier 1 employees about the plan, to the Governor and the | ||||||
25 | General Assembly on or before January 15, 2018. | ||||||
26 | (h) If a Tier 1 employee has not made an election under |
| |||||||
| |||||||
1 | Section 15-134.5 of this Code, then the plan prescribed under | ||||||
2 | this Section shall not apply to that Tier 1 employee and that | ||||||
3 | Tier 1 employee shall remain eligible to make the election | ||||||
4 | prescribed under Section 15-134.5. | ||||||
5 | (i) The intent of this amendatory Act of the 100th General | ||||||
6 | Assembly is to ensure that the State's normal cost of | ||||||
7 | participation in the defined contribution plan is similar, and | ||||||
8 | if possible equal, to the State's normal cost of participation | ||||||
9 | in the defined benefit plan, unless a lower State's normal cost | ||||||
10 | is necessary to ensure cost neutrality. | ||||||
11 | (40 ILCS 5/15-201.1 new) | ||||||
12 | Sec. 15-201.1. Defined contribution plan; termination. If | ||||||
13 | the defined contribution plan under Section 15-200.1 is | ||||||
14 | terminated or becomes inoperative pursuant to law, then each | ||||||
15 | participant in the plan shall automatically be deemed to have | ||||||
16 | been a contributing Tier 1 employee participating in the | ||||||
17 | System's defined benefit plan during the time in which he or | ||||||
18 | she participated in the defined contribution plan, and for that | ||||||
19 | purpose the System shall be entitled to recover the amounts in | ||||||
20 | the participant's defined contribution accounts. | ||||||
21 | (40 ILCS 5/16-107.1 new) | ||||||
22 | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A | ||||||
23 | teacher under this Article who first became a member or | ||||||
24 | participant before January 1, 2011 under any reciprocal |
| |||||||
| |||||||
1 | retirement system or pension fund established under this Code | ||||||
2 | other than a retirement system or pension fund established | ||||||
3 | under Article 2, 3, 4, 5, 6, or 18 of this Code.
| ||||||
4 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been held unconstitutional)
| ||||||
7 | Sec. 16-158. Contributions by State and other employing | ||||||
8 | units.
| ||||||
9 | (a) The State shall make contributions to the System by | ||||||
10 | means of
appropriations from the Common School Fund and other | ||||||
11 | State funds of amounts
which, together with other employer | ||||||
12 | contributions, employee contributions,
investment income, and | ||||||
13 | other income, will be sufficient to meet the cost of
| ||||||
14 | maintaining and administering the System on a 90% funded basis | ||||||
15 | in accordance
with actuarial recommendations.
| ||||||
16 | The Board shall determine the amount of State contributions | ||||||
17 | required for
each fiscal year on the basis of the actuarial | ||||||
18 | tables and other assumptions
adopted by the Board and the | ||||||
19 | recommendations of the actuary, using the formula
in subsection | ||||||
20 | (b-3).
| ||||||
21 | (a-1) Annually, on or before November 15 until November 15, | ||||||
22 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
23 | required State contribution for the coming fiscal
year. The | ||||||
24 | certification under this subsection (a-1) shall include a copy | ||||||
25 | of the actuarial recommendations
upon which it is based and |
| |||||||
| |||||||
1 | shall specifically identify the System's projected State | ||||||
2 | normal cost for that fiscal year.
| ||||||
3 | On or before May 1, 2004, the Board shall recalculate and | ||||||
4 | recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
| ||||||
9 | On or before July 1, 2005, 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 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by this amendatory Act of the 94th General Assembly.
| ||||||
14 | On or before April 1, 2011, the Board shall recalculate and | ||||||
15 | recertify to the Governor the amount of the required State | ||||||
16 | contribution to the System for State fiscal year 2011, applying | ||||||
17 | the changes made by Public Act 96-889 to the System's assets | ||||||
18 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
19 | was approved on that date. | ||||||
20 | (a-5) On or before November 1 of each year, beginning | ||||||
21 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
22 | the Governor, and the General Assembly a proposed certification | ||||||
23 | of the amount of the required State contribution to the System | ||||||
24 | for the next fiscal year, along with all of the actuarial | ||||||
25 | assumptions, calculations, and data upon which that proposed | ||||||
26 | certification is based. On or before January 1 of each year, |
| |||||||
| |||||||
1 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
2 | preliminary report concerning the proposed certification and | ||||||
3 | identifying, if necessary, recommended changes in actuarial | ||||||
4 | assumptions that the Board must consider before finalizing its | ||||||
5 | certification of the required State contributions. On or before | ||||||
6 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
7 | shall certify to the Governor and the General Assembly the | ||||||
8 | amount of the required State contribution for the next fiscal | ||||||
9 | year. The Board's certification must note any deviations from | ||||||
10 | the State Actuary's recommended changes, the reason or reasons | ||||||
11 | for not following the State Actuary's recommended changes, and | ||||||
12 | the fiscal impact of not following the State Actuary's | ||||||
13 | recommended changes on the required State contribution. | ||||||
14 | (a-10) For purposes of subsection (c-5) of Section 20 of | ||||||
15 | the
Budget Stabilization Act, on or before November 1 of each | ||||||
16 | year
beginning November 1, 2019, the Board shall determine the
| ||||||
17 | amount of the State contribution to the System that would have
| ||||||
18 | been required for the next fiscal year if Section 1-161, | ||||||
19 | subsection (b-4) of Section 16-158, and the changes made to | ||||||
20 | Section 1-160 by this amendatory Act of the 100th General | ||||||
21 | Assembly had not taken effect, using the
best and most recent | ||||||
22 | available data but based on the law in
effect on May 31, 2019. | ||||||
23 | The Board shall submit to the State
Actuary, the Governor, and | ||||||
24 | the General Assembly a proposed
certification, along with the | ||||||
25 | relevant law, actuarial
assumptions, calculations, and data | ||||||
26 | upon which that
certification is based. On or before January 1, |
| |||||||
| |||||||
1 | 2020 and every January 1 thereafter, the State Actuary shall | ||||||
2 | issue a
preliminary report concerning the proposed | ||||||
3 | certification and
identifying, if necessary, recommended | ||||||
4 | changes in actuarial
assumptions that the Board must consider | ||||||
5 | before finalizing its
certification. On or before January 15, | ||||||
6 | 2020 and every January
1 thereafter, the Board shall certify to | ||||||
7 | the Governor and the
General Assembly the amount of the State | ||||||
8 | contribution to the
System that would have been required for | ||||||
9 | the next fiscal year
if if Section 1-161, subsection (b-4) of | ||||||
10 | Section 16-158, and the changes made to Section 1-160 by this | ||||||
11 | amendatory Act of the 100th General Assembly had not taken | ||||||
12 | effect, using the best and most recent available data but
based | ||||||
13 | on the law in effect on May 31, 2019. The Board's
certification | ||||||
14 | must note any deviations from the State Actuary's
recommended | ||||||
15 | changes, the reason or reasons for not following
the State | ||||||
16 | Actuary's recommended changes, and the impact of not
following | ||||||
17 | the State Actuary's recommended changes. | ||||||
18 | (a-15) As soon as practical after the effective date of | ||||||
19 | this amendatory Act of the 100th General Assembly, the Board | ||||||
20 | shall recalculate and recertify to the State Actuary, the | ||||||
21 | Governor, and the General Assembly the amount of the State | ||||||
22 | contribution to the System for State fiscal year 2018, taking | ||||||
23 | into account the changes in required State contributions made | ||||||
24 | by this amendatory Act of the 100th General Assembly. The State | ||||||
25 | Actuary shall review the assumptions and valuations underlying | ||||||
26 | the Board's revised certification and issue a preliminary |
| |||||||
| |||||||
1 | report concerning the proposed recertification and | ||||||
2 | identifying, if necessary, recommended changes in actuarial | ||||||
3 | assumptions that the Board must consider before finalizing its | ||||||
4 | certification of the required State contributions. The Board's | ||||||
5 | final certification must note 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 | (b) Through State fiscal year 1995, the State contributions | ||||||
11 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
12 | the School Code.
| ||||||
13 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
14 | of each month,
or as soon thereafter as may be practicable, the | ||||||
15 | Board shall submit vouchers
for payment of State contributions | ||||||
16 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
17 | required annual State contribution certified under
subsection | ||||||
18 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
19 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
20 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
21 | excess of the fiscal year 2004
certified contribution amount | ||||||
22 | determined under this Section
after taking into consideration | ||||||
23 | the transfer to the System
under subsection (a) of Section | ||||||
24 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
25 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
26 | funds appropriated to the System for that
fiscal year.
|
| |||||||
| |||||||
1 | If in any month the amount remaining unexpended from all | ||||||
2 | other appropriations
to the System for the applicable fiscal | ||||||
3 | year (including the appropriations to
the System under Section | ||||||
4 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
5 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
6 | amount
lawfully vouchered under this subsection, the | ||||||
7 | difference shall be paid from the
Common School Fund under the | ||||||
8 | continuing appropriation authority provided in
Section 1.1 of | ||||||
9 | the State Pension Funds Continuing Appropriation Act.
| ||||||
10 | (b-2) Allocations from the Common School Fund apportioned | ||||||
11 | to school
districts not coming under this System shall not be | ||||||
12 | diminished or affected by
the provisions of this Article.
| ||||||
13 | (b-3) For State fiscal years 2018 through 2045, the minimum | ||||||
14 | contribution to the System to be made by the State for each | ||||||
15 | fiscal year shall be an amount determined by the System to be | ||||||
16 | sufficient to bring the total assets of the System up to 90% of | ||||||
17 | the total actuarial liabilities of the System by the end of | ||||||
18 | State fiscal year 2045. In making these determinations, the | ||||||
19 | required State contribution shall be calculated each year as a | ||||||
20 | level percentage of total payroll, including payroll that is | ||||||
21 | not deemed pensionable, but excluding payroll attributable to | ||||||
22 | participants in the defined contribution plan under Section | ||||||
23 | 16-205.1, over the years remaining to and including fiscal year | ||||||
24 | 2045 and shall be determined under the projected unit credit | ||||||
25 | actuarial cost method. | ||||||
26 | Beginning in State fiscal year 2018, any increase or |
| |||||||
| |||||||
1 | decrease in State contribution over the prior fiscal year due | ||||||
2 | exclusively to changes in actuarial or investment assumptions | ||||||
3 | adopted by the Board shall be included in the State | ||||||
4 | contribution to the System, as a percentage of the applicable | ||||||
5 | employee payroll, and shall be increased in equal annual | ||||||
6 | increments so that by the State fiscal year occurring 5 years | ||||||
7 | after the adoption of the actuarial or investment assumptions, | ||||||
8 | the State is contributing at the rate otherwise required under | ||||||
9 | this Section. | ||||||
10 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
11 | contribution
to the System to be made by the State for each | ||||||
12 | fiscal year shall be an amount
determined by the System to be | ||||||
13 | sufficient to bring the total assets of the
System up to 90% of | ||||||
14 | the total actuarial liabilities of the System by the end of
| ||||||
15 | State fiscal year 2045. In making these determinations, the | ||||||
16 | required State
contribution shall be calculated each year as a | ||||||
17 | level percentage of payroll
over the years remaining to and | ||||||
18 | including fiscal year 2045 and shall be
determined under the | ||||||
19 | projected unit credit actuarial cost method.
| ||||||
20 | For State fiscal years 1996 through 2005, the State | ||||||
21 | contribution to the
System, as a percentage of the applicable | ||||||
22 | employee payroll, shall be increased
in equal annual increments | ||||||
23 | so that by State fiscal year 2011, the State is
contributing at | ||||||
24 | the rate required under this Section; except that in the
| ||||||
25 | following specified State fiscal years, the State contribution | ||||||
26 | to the System
shall not be less than the following indicated |
| |||||||
| |||||||
1 | percentages of the applicable
employee payroll, even if the | ||||||
2 | indicated percentage will produce a State
contribution in | ||||||
3 | excess of the amount otherwise required under this subsection
| ||||||
4 | and subsection (a), and notwithstanding any contrary | ||||||
5 | certification made under
subsection (a-1) before the effective | ||||||
6 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
7 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
8 | 2003; and
13.56% in FY 2004.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State
contribution for State fiscal year 2006 is | ||||||
11 | $534,627,700.
| ||||||
12 | Notwithstanding any other provision of this Article, the | ||||||
13 | total required State
contribution for State fiscal year 2007 is | ||||||
14 | $738,014,500.
| ||||||
15 | For each of State fiscal years 2008 through 2009, the State | ||||||
16 | contribution to
the System, as a percentage of the applicable | ||||||
17 | employee payroll, shall be
increased in equal annual increments | ||||||
18 | from the required State contribution for State fiscal year | ||||||
19 | 2007, so that by State fiscal year 2011, the
State is | ||||||
20 | contributing at the rate otherwise required under this Section.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State contribution for State fiscal year 2010 is | ||||||
23 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
24 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
25 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
26 | expenses determined by the System's share of total bond |
| |||||||
| |||||||
1 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
2 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
3 | due to the issuance of discounted bonds, if applicable. | ||||||
4 | Notwithstanding any other provision of this Article, the
| ||||||
5 | total required State contribution for State fiscal year 2011 is
| ||||||
6 | the amount recertified by the System on or before April 1, 2011 | ||||||
7 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
8 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
9 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
10 | pro rata share of bond sale
expenses determined by the System's | ||||||
11 | share of total bond
proceeds, (ii) any amounts received from | ||||||
12 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
13 | reduction in bond proceeds
due to the issuance of discounted | ||||||
14 | bonds, if applicable. This amount shall include, in addition to | ||||||
15 | the amount certified by the System, an amount necessary to meet | ||||||
16 | employer contributions required by the State as an employer | ||||||
17 | under paragraph (e) of this Section, which may also be used by | ||||||
18 | the System for contributions required by paragraph (a) of | ||||||
19 | Section 16-127. | ||||||
20 | Beginning in State fiscal year 2046, the minimum State | ||||||
21 | contribution for
each fiscal year shall be the amount needed to | ||||||
22 | maintain the total assets of
the System at 90% of the total | ||||||
23 | actuarial liabilities of the System.
| ||||||
24 | Amounts received by the System pursuant to Section 25 of | ||||||
25 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
26 | Finance Act in any fiscal year do not reduce and do not |
| |||||||
| |||||||
1 | constitute payment of any portion of the minimum State | ||||||
2 | contribution required under this Article in that fiscal year. | ||||||
3 | Such amounts shall not reduce, and shall not be included in the | ||||||
4 | calculation of, the required State contributions under this | ||||||
5 | Article in any future year until the System has reached a | ||||||
6 | funding ratio of at least 90%. A reference in this Article to | ||||||
7 | the "required State contribution" or any substantially similar | ||||||
8 | term does not include or apply to any amounts payable to the | ||||||
9 | System under Section 25 of the Budget Stabilization Act. | ||||||
10 | Notwithstanding any other provision of this Section, the | ||||||
11 | required State
contribution for State fiscal year 2005 and for | ||||||
12 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
13 | under this Section and
certified under subsection (a-1), shall | ||||||
14 | not exceed an amount equal to (i) the
amount of the required | ||||||
15 | State contribution that would have been calculated under
this | ||||||
16 | Section for that fiscal year if the System had not received any | ||||||
17 | payments
under subsection (d) of Section 7.2 of the General | ||||||
18 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
19 | total debt service payments for that fiscal
year on the bonds | ||||||
20 | issued in fiscal year 2003 for the purposes of that Section | ||||||
21 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
22 | the same as the System's portion of
the total moneys | ||||||
23 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
24 | Obligation Bond Act. In determining this maximum for State | ||||||
25 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
26 | in item (i) shall be increased, as a percentage of the |
| |||||||
| |||||||
1 | applicable employee payroll, in equal increments calculated | ||||||
2 | from the sum of the required State contribution for State | ||||||
3 | fiscal year 2007 plus the applicable portion of the State's | ||||||
4 | total debt service payments for fiscal year 2007 on the bonds | ||||||
5 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
6 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
7 | 2011, the
State is contributing at the rate otherwise required | ||||||
8 | under this Section.
| ||||||
9 | (b-4) For employees first hired on or after 6 months after | ||||||
10 | the effective date of this amendatory Act of the 100th General | ||||||
11 | Assembly who have elected the benefits under Section 1-161 of | ||||||
12 | this Code, the employer shall annually contribute an amount, | ||||||
13 | expressed as a percentage of payroll, equal to the defined | ||||||
14 | benefit normal cost of the defined benefit plan, less the | ||||||
15 | employee contribution, plus 2%. On an annual basis, the System | ||||||
16 | shall certify to each employer the amount of unfunded liability | ||||||
17 | accrued in the employer's account to be paid by the employer so | ||||||
18 | that the System is 90% funded by the end of State fiscal year | ||||||
19 | 2045. The contributions shall be divided equally over a | ||||||
20 | 12-month period and made monthly. The employer shall also | ||||||
21 | contribute an amount equal to the employer defined | ||||||
22 | contribution, as set on an individual employee basis, under | ||||||
23 | paragraph (2) of subsection (k) of Section 1-161 during each | ||||||
24 | pay period. The System shall have the authority to adopt rules | ||||||
25 | regarding implementation of employer contributions. | ||||||
26 | (c) Payment of the required State contributions and of all |
| |||||||
| |||||||
1 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
2 | other benefits granted
under or assumed by this System, and all | ||||||
3 | expenses in connection with the
administration and operation | ||||||
4 | thereof, are obligations of the State.
| ||||||
5 | If members are paid from special trust or federal funds | ||||||
6 | which are
administered by the employing unit, whether school | ||||||
7 | district or other
unit, the employing unit shall pay to the | ||||||
8 | System from such
funds the full accruing retirement costs based | ||||||
9 | upon that
service, which, beginning July 1, 2014, shall be at a | ||||||
10 | rate, expressed as a percentage of salary, equal to the total | ||||||
11 | minimum contribution
to the System to be made by the State for | ||||||
12 | that fiscal year, including both normal cost and unfunded | ||||||
13 | liability components, expressed as a percentage of payroll, as | ||||||
14 | determined by the System under subsection (b-3) of this | ||||||
15 | Section. Employer contributions, based on
salary paid to | ||||||
16 | members from federal funds, may be forwarded by the | ||||||
17 | distributing
agency of the State of Illinois to the System | ||||||
18 | prior to allocation, in an
amount determined in accordance with | ||||||
19 | guidelines established by such
agency and the System. Any | ||||||
20 | contribution for fiscal year 2015 collected as a result of the | ||||||
21 | change made by this amendatory Act of the 98th General Assembly | ||||||
22 | shall be considered a State contribution under subsection (b-3) | ||||||
23 | of this Section.
| ||||||
24 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
25 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
26 | employer's normal cost
of benefits based upon the teacher's |
| |||||||
| |||||||
1 | service, in addition to
employee contributions, as determined | ||||||
2 | by the System. Such employer
contributions shall be forwarded | ||||||
3 | monthly in accordance with guidelines
established by the | ||||||
4 | System.
| ||||||
5 | However, with respect to benefits granted under Section | ||||||
6 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
7 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
8 | (rather than 20%) of the member's
highest annual salary rate | ||||||
9 | for each year of creditable service granted, and
the employer | ||||||
10 | shall also pay the required employee contribution on behalf of
| ||||||
11 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
12 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
13 | 16-106 who is serving in that capacity
while on leave of | ||||||
14 | absence from another employer under this Article shall not
be | ||||||
15 | considered an employee of the employer from which the teacher | ||||||
16 | is on leave.
| ||||||
17 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
18 | shall pay to the System an employer contribution computed as | ||||||
19 | follows:
| ||||||
20 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
21 | employer
contribution shall be equal to 0.3% of each | ||||||
22 | teacher's salary.
| ||||||
23 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
24 | contribution shall be equal to 0.58% of each teacher's | ||||||
25 | salary.
| ||||||
26 | The school district or other employing unit may pay these |
| |||||||
| |||||||
1 | employer
contributions out of any source of funding available | ||||||
2 | for that purpose and
shall forward the contributions to the | ||||||
3 | System on the schedule established
for the payment of member | ||||||
4 | contributions.
| ||||||
5 | These employer contributions are intended to offset a | ||||||
6 | portion of the cost
to the System of the increases in | ||||||
7 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
8 | Each employer of teachers is entitled to a credit against | ||||||
9 | the contributions
required under this subsection (e) with | ||||||
10 | respect to salaries paid to teachers
for the period January 1, | ||||||
11 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
12 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
13 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
14 | paid to teachers for that
period.
| ||||||
15 | The additional 1% employee contribution required under | ||||||
16 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
17 | responsibility of the teacher and not the
teacher's employer, | ||||||
18 | unless the employer agrees, through collective bargaining
or | ||||||
19 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
20 | If an employer is required by a contract in effect on May | ||||||
21 | 1, 1998 between the
employer and an employee organization to | ||||||
22 | pay, on behalf of all its full-time
employees
covered by this | ||||||
23 | Article, all mandatory employee contributions required under
| ||||||
24 | this Article, then the employer shall be excused from paying | ||||||
25 | the employer
contribution required under this subsection (e) | ||||||
26 | for the balance of the term
of that contract. The employer and |
| |||||||
| |||||||
1 | the employee organization shall jointly
certify to the System | ||||||
2 | the existence of the contractual requirement, in such
form as | ||||||
3 | the System may prescribe. This exclusion shall cease upon the
| ||||||
4 | termination, extension, or renewal of the contract at any time | ||||||
5 | after May 1,
1998.
| ||||||
6 | (f) For school years beginning on or after June 1, 2005 and | ||||||
7 | before July 1, 2018, if If the amount of a teacher's salary for | ||||||
8 | any school year used to determine final average salary exceeds | ||||||
9 | the member's annual full-time salary rate with the same | ||||||
10 | employer for the previous school year by more than 6%, the | ||||||
11 | teacher's employer shall pay to the System, in addition to all | ||||||
12 | other payments required under this Section and in accordance | ||||||
13 | with guidelines established by the System, the present value of | ||||||
14 | the increase in benefits resulting from the portion of the | ||||||
15 | increase in salary that is in excess of 6%. This present value | ||||||
16 | shall be computed by the System on the basis of the actuarial | ||||||
17 | assumptions and tables used in the most recent actuarial | ||||||
18 | valuation of the System that is available at the time of the | ||||||
19 | computation. If a teacher's salary for the 2005-2006 school | ||||||
20 | year is used to determine final average salary under this | ||||||
21 | subsection (f), then the changes made to this subsection (f) by | ||||||
22 | Public Act 94-1057 shall apply in calculating whether the | ||||||
23 | increase in his or her salary is in excess of 6%. For the | ||||||
24 | purposes of this Section, change in employment under Section | ||||||
25 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
26 | constitute a change in employer. The System may require the |
| |||||||
| |||||||
1 | employer to provide any pertinent information or | ||||||
2 | documentation.
The changes made to this subsection (f) by this | ||||||
3 | amendatory Act of the 94th General Assembly apply without | ||||||
4 | regard to whether the teacher was in service on or after its | ||||||
5 | effective date.
| ||||||
6 | Whenever it determines that a payment is or may be required | ||||||
7 | under this subsection, the System shall calculate the amount of | ||||||
8 | the payment and bill the employer for that amount. The bill | ||||||
9 | shall specify the calculations used to determine the amount | ||||||
10 | due. If the employer disputes the amount of the bill, it may, | ||||||
11 | within 30 days after receipt of the bill, apply to the System | ||||||
12 | in writing for a recalculation. The application must specify in | ||||||
13 | detail the grounds of the dispute and, if the employer asserts | ||||||
14 | that the calculation is subject to subsection (g) or (h) of | ||||||
15 | this Section, must include an affidavit setting forth and | ||||||
16 | attesting to all facts within the employer's knowledge that are | ||||||
17 | pertinent to the applicability of that subsection. Upon | ||||||
18 | receiving a timely application for recalculation, the System | ||||||
19 | shall review the application and, if appropriate, recalculate | ||||||
20 | the amount due.
| ||||||
21 | The employer contributions required under this subsection | ||||||
22 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
23 | receipt of the bill. If the employer contributions are not paid | ||||||
24 | within 90 days after receipt of the bill, then interest will be | ||||||
25 | charged at a rate equal to the System's annual actuarially | ||||||
26 | assumed rate of return on investment compounded annually from |
| |||||||
| |||||||
1 | the 91st day after receipt of the bill. Payments must be | ||||||
2 | concluded within 3 years after the employer's receipt of the | ||||||
3 | bill.
| ||||||
4 | (f-1) Beginning in fiscal year 2019, if a contract or | ||||||
5 | collective bargaining agreement entered into, amended, or | ||||||
6 | renewed on or after the effective date of this amendatory Act | ||||||
7 | of the 100th General Assembly provides for salaries to exceed | ||||||
8 | the salaries provided under the preceding contract or | ||||||
9 | collective bargaining agreement, then the employer shall pay to | ||||||
10 | the System, in addition to all other payments required under | ||||||
11 | this Section and in accordance with guidelines established by | ||||||
12 | the System, the current value of the projected amount of the | ||||||
13 | increase in benefits, as determined by the System and | ||||||
14 | reflecting whether the teachers covered under the contract or | ||||||
15 | collective bargaining agreement are Tier 1 members or Tier 2 | ||||||
16 | members, resulting from the portion of the salaries that exceed | ||||||
17 | the amount of the salaries provided under the preceding | ||||||
18 | contract or collective bargaining agreement. The System may | ||||||
19 | require the employer to provide any pertinent information or | ||||||
20 | documentation. | ||||||
21 | Whenever it determines that a payment is or may be required | ||||||
22 | under this subsection (f-1), the System shall calculate the | ||||||
23 | amount of the payment and bill the employer for that amount. | ||||||
24 | The bill shall specify the calculations used to determine the | ||||||
25 | amount due. If the employer disputes the amount of the bill, it | ||||||
26 | may, within 30 days after receipt of the bill, apply to the |
| |||||||
| |||||||
1 | System in writing for a recalculation. The application must | ||||||
2 | specify in detail the grounds of the dispute. Upon receiving a | ||||||
3 | timely application for recalculation, the System shall review | ||||||
4 | the application and, if appropriate, recalculate the amount | ||||||
5 | due. | ||||||
6 | The employer contributions required under this subsection | ||||||
7 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
8 | receipt of the bill. If the employer contributions are not paid | ||||||
9 | within 90 days after receipt of the bill, then interest shall | ||||||
10 | be charged at a rate equal to the System's annual actuarially | ||||||
11 | assumed rate of return on investment compounded annually from | ||||||
12 | the 91st day after receipt of the bill. Payments must be | ||||||
13 | concluded within 3 years after the employer's receipt of the | ||||||
14 | bill. | ||||||
15 | (g) This subsection (g) applies only to payments made or | ||||||
16 | salary increases given on or after June 1, 2005 but before July | ||||||
17 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
18 | require the System to refund any payments received before
July | ||||||
19 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
20 | When assessing payment for any amount due under subsection | ||||||
21 | (f), the System shall exclude salary increases paid to teachers | ||||||
22 | under contracts or collective bargaining agreements entered | ||||||
23 | into, amended, or renewed before June 1, 2005.
| ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (f), the System shall exclude salary increases paid to a | ||||||
26 | teacher at a time when the teacher is 10 or more years from |
| |||||||
| |||||||
1 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
2 | When assessing payment for any amount due under subsection | ||||||
3 | (f), the System shall exclude salary increases resulting from | ||||||
4 | overload work, including summer school, when the school | ||||||
5 | district has certified to the System, and the System has | ||||||
6 | approved the certification, that (i) the overload work is for | ||||||
7 | the sole purpose of classroom instruction in excess of the | ||||||
8 | standard number of classes for a full-time teacher in a school | ||||||
9 | district during a school year and (ii) the salary increases are | ||||||
10 | equal to or less than the rate of pay for classroom instruction | ||||||
11 | computed on the teacher's current salary and work schedule.
| ||||||
12 | When assessing payment for any amount due under subsection | ||||||
13 | (f), the System shall exclude a salary increase resulting from | ||||||
14 | a promotion (i) for which the employee is required to hold a | ||||||
15 | certificate or supervisory endorsement issued by the State | ||||||
16 | Teacher Certification Board that is a different certification | ||||||
17 | or supervisory endorsement than is required for the teacher's | ||||||
18 | previous position and (ii) to a position that has existed and | ||||||
19 | been filled by a member for no less than one complete academic | ||||||
20 | year and the salary increase from the promotion is an increase | ||||||
21 | that results in an amount no greater than the lesser of the | ||||||
22 | average salary paid for other similar positions in the district | ||||||
23 | requiring the same certification or the amount stipulated in | ||||||
24 | the collective bargaining agreement for a similar position | ||||||
25 | requiring the same certification.
| ||||||
26 | When assessing payment for any amount due under subsection |
| |||||||
| |||||||
1 | (f), the System shall exclude any payment to the teacher from | ||||||
2 | the State of Illinois or the State Board of Education over | ||||||
3 | which the employer does not have discretion, notwithstanding | ||||||
4 | that the payment is included in the computation of final | ||||||
5 | average salary.
| ||||||
6 | (h) When assessing payment for any amount due under | ||||||
7 | subsection (f), the System shall exclude any salary increase | ||||||
8 | described in subsection (g) of this Section given on or after | ||||||
9 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
10 | collective bargaining agreement entered into, amended, or | ||||||
11 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
12 | Notwithstanding any other provision of this Section, any | ||||||
13 | payments made or salary increases given after June 30, 2014 | ||||||
14 | shall be used in assessing payment for any amount due under | ||||||
15 | subsection (f) of this Section.
| ||||||
16 | (i) The System shall prepare a report and file copies of | ||||||
17 | the report with the Governor and the General Assembly by | ||||||
18 | January 1, 2007 that contains all of the following information: | ||||||
19 | (1) The number of recalculations required by the | ||||||
20 | changes made to this Section by Public Act 94-1057 for each | ||||||
21 | employer. | ||||||
22 | (2) The dollar amount by which each employer's | ||||||
23 | contribution to the System was changed due to | ||||||
24 | recalculations required by Public Act 94-1057. | ||||||
25 | (3) The total amount the System received from each | ||||||
26 | employer as a result of the changes made to this Section by |
| |||||||
| |||||||
1 | Public Act 94-4. | ||||||
2 | (4) The increase in the required State contribution | ||||||
3 | resulting from the changes made to this Section by Public | ||||||
4 | Act 94-1057.
| ||||||
5 | (j) For purposes of determining the required State | ||||||
6 | contribution to the System, the value of the System's assets | ||||||
7 | shall be equal to the actuarial value of the System's assets, | ||||||
8 | which shall be calculated as follows: | ||||||
9 | As of June 30, 2008, the actuarial value of the System's | ||||||
10 | assets shall be equal to the market value of the assets as of | ||||||
11 | that date. In determining the actuarial value of the System's | ||||||
12 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
13 | gains or losses from investment return incurred in a fiscal | ||||||
14 | year shall be recognized in equal annual amounts over the | ||||||
15 | 5-year period following that fiscal year. | ||||||
16 | (k) For purposes of determining the required State | ||||||
17 | contribution to the system for a particular year, the actuarial | ||||||
18 | value of assets shall be assumed to earn a rate of return equal | ||||||
19 | to the system's actuarially assumed rate of return. | ||||||
20 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
21 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
22 | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
| ||||||
23 | (40 ILCS 5/16-190.5 new) | ||||||
24 | Sec. 16-190.5. Accelerated pension benefit payment. | ||||||
25 | (a) As used in this Section: |
| |||||||
| |||||||
1 | "Eligible person" means a person who: | ||||||
2 | (1) has terminated service; | ||||||
3 | (2) has accrued sufficient service credit to be | ||||||
4 | eligible to receive a retirement annuity under this | ||||||
5 | Article; | ||||||
6 | (3) has not received any retirement annuity under this | ||||||
7 | Article; and | ||||||
8 | (4) does not have a QILDRO in effect against him or her | ||||||
9 | under this Article. | ||||||
10 | "Pension benefit" means the benefits under this Article, or | ||||||
11 | Article 1 as it relates to those benefits, including any | ||||||
12 | anticipated annual increases, that an eligible person is | ||||||
13 | entitled to upon attainment of the applicable retirement age. | ||||||
14 | "Pension benefit" also includes applicable survivor's or | ||||||
15 | disability benefits. | ||||||
16 | (b) Before January 1, 2018, the System shall calculate, | ||||||
17 | using actuarial tables and other assumptions adopted by the | ||||||
18 | Board, the net present value of pension benefits for each | ||||||
19 | eligible person and shall offer each eligible person the | ||||||
20 | opportunity to irrevocably elect to receive an amount | ||||||
21 | determined by the System to be equal to 70% of the net present | ||||||
22 | value of his or her pension benefits in lieu of receiving any | ||||||
23 | pension benefit. The offer shall specify the dollar amount that | ||||||
24 | the eligible person will receive if he or she so elects and | ||||||
25 | shall expire when a subsequent offer is made to an eligible | ||||||
26 | person. The System shall make a good faith effort to contact |
| |||||||
| |||||||
1 | every eligible person to notify him or her of the election and | ||||||
2 | of the amount of the accelerated pension benefit payment. | ||||||
3 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
4 | eligible person may irrevocably elect to receive an accelerated | ||||||
5 | pension benefit payment in the amount that the System offers | ||||||
6 | under this subsection in lieu of receiving any pension benefit. | ||||||
7 | A person who elects to receive an accelerated pension benefit | ||||||
8 | payment under this Section may not elect to proceed under the | ||||||
9 | Retirement Systems Reciprocal Act with respect to service under | ||||||
10 | this Article. | ||||||
11 | (c) A person's credits and creditable service under this | ||||||
12 | Article shall be terminated upon the person's receipt of an | ||||||
13 | accelerated pension benefit payment under this Section, and no | ||||||
14 | other benefit shall be paid under this Article based on those | ||||||
15 | terminated credits and creditable service, including any | ||||||
16 | retirement, survivor, or other benefit; except that to the | ||||||
17 | extent that participation, benefits, or premiums under the | ||||||
18 | State Employees Group Insurance Act of 1971 are based on the | ||||||
19 | amount of service credit, the terminated service credit shall | ||||||
20 | be used for that purpose. | ||||||
21 | (d) If a person who has received an accelerated pension | ||||||
22 | benefit payment under this Section returns to active service | ||||||
23 | under this Article, then: | ||||||
24 | (1) Any benefits under the System earned as a result of | ||||||
25 | that return to active service shall be based solely on the | ||||||
26 | person's credits and creditable service arising from the |
| |||||||
| |||||||
1 | return to active service. | ||||||
2 | (2) The accelerated pension benefit payment may not be | ||||||
3 | repaid to the System, and the terminated credits and | ||||||
4 | creditable service may not under any circumstances be | ||||||
5 | reinstated. | ||||||
6 | (e) As a condition of receiving an accelerated pension | ||||||
7 | benefit payment, an eligible person must have another | ||||||
8 | retirement plan or account qualified under the Internal Revenue | ||||||
9 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
10 | payment to be rolled into. The accelerated pension benefit | ||||||
11 | payment under this Section may be subject to withholding or | ||||||
12 | payment of applicable taxes, but to the extent permitted by | ||||||
13 | federal law, a person who receives an accelerated pension | ||||||
14 | benefit payment under this Section must direct the System to | ||||||
15 | pay all of that payment as a rollover into another retirement | ||||||
16 | plan or account qualified under the Internal Revenue Code of | ||||||
17 | 1986, as amended. | ||||||
18 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
19 | Illinois Finance Authority and the General Assembly the amount | ||||||
20 | by which the total amount of accelerated pension benefit | ||||||
21 | payments made under this Section exceed the amount appropriated | ||||||
22 | to the System for the purpose of making those payments. | ||||||
23 | (g) The Board shall adopt any rules necessary to implement | ||||||
24 | this Section. | ||||||
25 | (h) No provision of this Section shall be interpreted in a | ||||||
26 | way that would cause the applicable System to cease to be a |
| |||||||
| |||||||
1 | qualified plan under the Internal Revenue Code of 1986. | ||||||
2 | (40 ILCS 5/16-203) | ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been held unconstitutional)
| ||||||
5 | Sec. 16-203. Application and expiration of new benefit | ||||||
6 | increases. | ||||||
7 | (a) As used in this Section, "new benefit increase" means | ||||||
8 | an increase in the amount of any benefit provided under this | ||||||
9 | Article, or an expansion of the conditions of eligibility for | ||||||
10 | any benefit under this Article, that results from an amendment | ||||||
11 | to this Code that takes effect after June 1, 2005 (the | ||||||
12 | effective date of Public Act 94-4). "New benefit increase", | ||||||
13 | however, does not include any benefit increase resulting from | ||||||
14 | the changes made to this Article by Public Act 95-910 or this | ||||||
15 | amendatory Act of the 100th General Assembly this amendatory | ||||||
16 | Act of the 95th General Assembly . | ||||||
17 | (b) Notwithstanding any other provision of this Code or any | ||||||
18 | subsequent amendment to this Code, every new benefit increase | ||||||
19 | is subject to this Section and shall be deemed to be granted | ||||||
20 | only in conformance with and contingent upon compliance with | ||||||
21 | the provisions of this Section.
| ||||||
22 | (c) The Public Act enacting a new benefit increase must | ||||||
23 | identify and provide for payment to the System of additional | ||||||
24 | funding at least sufficient to fund the resulting annual | ||||||
25 | increase in cost to the System as it accrues. |
| |||||||
| |||||||
1 | Every new benefit increase is contingent upon the General | ||||||
2 | Assembly providing the additional funding required under this | ||||||
3 | subsection. The Commission on Government Forecasting and | ||||||
4 | Accountability shall analyze whether adequate additional | ||||||
5 | funding has been provided for the new benefit increase and | ||||||
6 | shall report its analysis to the Public Pension Division of the | ||||||
7 | Department of Insurance Financial and Professional Regulation . | ||||||
8 | A new benefit increase created by a Public Act that does not | ||||||
9 | include the additional funding required under this subsection | ||||||
10 | is null and void. If the Public Pension Division determines | ||||||
11 | that the additional funding provided for a new benefit increase | ||||||
12 | under this subsection is or has become inadequate, it may so | ||||||
13 | certify to the Governor and the State Comptroller and, in the | ||||||
14 | absence of corrective action by the General Assembly, the new | ||||||
15 | benefit increase shall expire at the end of the fiscal year in | ||||||
16 | which the certification is made.
| ||||||
17 | (d) Every new benefit increase shall expire 5 years after | ||||||
18 | its effective date or on such earlier date as may be specified | ||||||
19 | in the language enacting the new benefit increase or provided | ||||||
20 | under subsection (c). This does not prevent the General | ||||||
21 | Assembly from extending or re-creating a new benefit increase | ||||||
22 | by law. | ||||||
23 | (e) Except as otherwise provided in the language creating | ||||||
24 | the new benefit increase, a new benefit increase that expires | ||||||
25 | under this Section continues to apply to persons who applied | ||||||
26 | and qualified for the affected benefit while the new benefit |
| |||||||
| |||||||
1 | increase was in effect and to the affected beneficiaries and | ||||||
2 | alternate payees of such persons, but does not apply to any | ||||||
3 | other person, including without limitation a person who | ||||||
4 | continues in service after the expiration date and did not | ||||||
5 | apply and qualify for the affected benefit while the new | ||||||
6 | benefit increase was in effect.
| ||||||
7 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) | ||||||
8 | (40 ILCS 5/16-205.1 new) | ||||||
9 | Sec. 16-205.1. Defined contribution plan. | ||||||
10 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
11 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
12 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
13 | by the number of active Tier 1 employees on the effective date | ||||||
14 | of this Section. The defined contribution plan developed under | ||||||
15 | this Section shall be a plan that aggregates employer and | ||||||
16 | employee contributions in individual participant accounts | ||||||
17 | which, after meeting any other requirements, are used for | ||||||
18 | payouts after retirement in accordance with this Section and | ||||||
19 | any other applicable laws. | ||||||
20 | As used in this Section, "defined benefit plan" means the | ||||||
21 | retirement plan available under this Article to Tier 1 | ||||||
22 | employees who have not made the election authorized under this | ||||||
23 | Section. | ||||||
24 | (1) Under the defined contribution plan, an active
Tier | ||||||
25 | 1 employee of this System could elect to cease accruing |
| |||||||
| |||||||
1 | benefits in the defined benefit plan under this Article and | ||||||
2 | begin accruing benefits for future service in the defined | ||||||
3 | contribution plan. Service credit under the defined | ||||||
4 | contribution plan may be used for determining retirement | ||||||
5 | eligibility under the defined benefit plan. An active Tier | ||||||
6 | 1 employee who elects to cease accruing benefits in his or | ||||||
7 | her defined benefit plan shall be prohibited from | ||||||
8 | purchasing service credit on or after the date of his or | ||||||
9 | her election. A Tier 1 employee making the irrevocable | ||||||
10 | election provided under this Section shall not receive | ||||||
11 | interest accruals to his or her benefit under paragraph (A) | ||||||
12 | of subsection (a) of Section 16-133 on or after the date of | ||||||
13 | his or her election. | ||||||
14 | (2) Participants in the defined contribution plan
| ||||||
15 | shall pay employee contributions at the same rate as Tier 1 | ||||||
16 | employees in this System who do not participate in the | ||||||
17 | defined contribution plan. | ||||||
18 | (3) State contributions shall be paid into the
accounts | ||||||
19 | of all participants in the defined contribution plan at a | ||||||
20 | uniform rate, expressed as a percentage of salary and | ||||||
21 | determined for each year. This rate shall be no higher than | ||||||
22 | the employer's normal cost for Tier 1 employees in the | ||||||
23 | defined benefit plan for that year, as determined by the | ||||||
24 | System and expressed as a percentage of salary, and shall | ||||||
25 | be no lower than 0% of salary. The State shall adjust this | ||||||
26 | rate annually. |
| |||||||
| |||||||
1 | (4) The defined contribution plan shall require 5
years | ||||||
2 | of participation in the defined contribution plan before | ||||||
3 | vesting in State contributions. If the participant fails to | ||||||
4 | vest in them, the State contributions, and the earnings | ||||||
5 | thereon, shall be forfeited. | ||||||
6 | (5) The defined contribution plan may provide for
| ||||||
7 | participants in the plan to be eligible for the defined | ||||||
8 | disability benefits available to other participants under | ||||||
9 | this Article. If it does, the System shall reduce the | ||||||
10 | employee contributions credited to the member's defined | ||||||
11 | contribution plan account by an amount determined by the | ||||||
12 | System to cover the cost of offering such benefits. | ||||||
13 | (6) The defined contribution plan shall provide a
| ||||||
14 | variety of options for investments. These options shall | ||||||
15 | include investments in a fund created by the System and | ||||||
16 | managed in accordance with legal and fiduciary standards, | ||||||
17 | as well as investment options otherwise available. | ||||||
18 | (7) The defined contribution plan shall provide a
| ||||||
19 | variety of options for payouts to retirees and their | ||||||
20 | survivors. | ||||||
21 | (8) To the extent authorized under federal law and
as | ||||||
22 | authorized by the System, the plan shall allow former | ||||||
23 | participants in the plan to transfer or roll over employee | ||||||
24 | and vested State contributions, and the earnings thereon, | ||||||
25 | into other qualified retirement plans. | ||||||
26 | (9) The System shall reduce the employee
contributions |
| |||||||
| |||||||
1 | credited to the member's defined contribution plan account | ||||||
2 | by an amount determined by the System to cover the cost of | ||||||
3 | offering these benefits and any applicable administrative | ||||||
4 | fees. | ||||||
5 | (b) Only persons who are active Tier 1 employees of the | ||||||
6 | System on the effective date of this Section are eligible to | ||||||
7 | participate in the defined contribution plan. Participation in | ||||||
8 | the defined contribution plan shall be limited to the first 5% | ||||||
9 | of eligible persons who elect to participate. The election to | ||||||
10 | participate in the defined contribution plan is voluntary and | ||||||
11 | irrevocable. | ||||||
12 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
13 | participate in the defined contribution plan by filing with the | ||||||
14 | System a written application to participate that is received by | ||||||
15 | the System prior to its determination that 5% of eligible | ||||||
16 | persons have elected to participate in the defined contribution | ||||||
17 | plan. | ||||||
18 | When the System first determines that 5% of eligible | ||||||
19 | persons have elected to participate in the defined contribution | ||||||
20 | plan, the System shall provide notice to previously eligible | ||||||
21 | employees that the plan is no longer available and shall cease | ||||||
22 | accepting applications to participate. | ||||||
23 | (d) The System shall make a good faith effort to contact | ||||||
24 | each active Tier 1 employee who is eligible to participate in | ||||||
25 | the defined contribution plan. The System shall mail | ||||||
26 | information describing the option to join the defined |
| |||||||
| |||||||
1 | contribution plan to each of these employees to his or her last | ||||||
2 | known address on file with the System. If the employee is not | ||||||
3 | responsive to other means of contact, it is sufficient for the | ||||||
4 | System to publish the details of the option on its website. | ||||||
5 | Upon request for further information describing the | ||||||
6 | option, the System shall provide employees with information | ||||||
7 | from the System before exercising the option to join the plan, | ||||||
8 | including information on the impact to their vested benefits or | ||||||
9 | non-vested service. The individual consultation shall include | ||||||
10 | projections of the member's defined benefits at retirement or | ||||||
11 | earlier termination of service and the value of the member's | ||||||
12 | account at retirement or earlier termination of service. The | ||||||
13 | System shall not provide advice or counseling with respect to | ||||||
14 | whether the employee should exercise the option. The System | ||||||
15 | shall inform Tier 1 employees who are eligible to participate | ||||||
16 | in the defined contribution plan that they may also wish to | ||||||
17 | obtain information and counsel relating to their option from | ||||||
18 | any other available source, including but not limited to labor | ||||||
19 | organizations, private counsel, and financial advisors. | ||||||
20 | (e) In no event shall the System, its staff, its authorized | ||||||
21 | representatives, or the Board be liable for any information | ||||||
22 | given to an employee under this Section. The System may | ||||||
23 | coordinate with the Illinois Department of Central Management | ||||||
24 | Services and other retirement systems administering a defined | ||||||
25 | contribution plan in accordance with this amendatory Act of the | ||||||
26 | 100th General Assembly to provide information concerning the |
| |||||||
| |||||||
1 | impact of the option set forth in this Section. | ||||||
2 | (f) Notwithstanding any other provision of this Section, no | ||||||
3 | person shall begin participating in the defined contribution | ||||||
4 | plan until it has attained qualified plan status and received | ||||||
5 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
6 | (g) The System shall report on its progress under this | ||||||
7 | Section, including the available details of the defined | ||||||
8 | contribution plan and the System's plans for informing eligible | ||||||
9 | Tier 1 employees about the plan, to the Governor and the | ||||||
10 | General Assembly on or before January 15, 2018. | ||||||
11 | (h) The intent of this amendatory Act of the 100th General | ||||||
12 | Assembly is to ensure that the State's normal cost of | ||||||
13 | participation in the defined contribution plan is similar, and | ||||||
14 | if possible equal, to the State's normal cost of participation | ||||||
15 | in the defined benefit plan, unless a lower State's normal cost | ||||||
16 | is necessary to ensure cost neutrality. | ||||||
17 | (40 ILCS 5/16-206.1 new) | ||||||
18 | Sec. 16-206.1. Defined contribution plan; termination. If | ||||||
19 | the defined contribution plan under Section 16-205.1 is | ||||||
20 | terminated or becomes inoperative pursuant to law, then each | ||||||
21 | participant in the plan shall automatically be deemed to have | ||||||
22 | been a contributing Tier 1 employee in the System's defined | ||||||
23 | benefit plan during the time in which he or she participated in | ||||||
24 | the defined contribution plan, and for that purpose the System | ||||||
25 | shall be entitled to recover the amounts in the participant's |
| |||||||
| |||||||
1 | defined contribution accounts. | ||||||
2 | (40 ILCS 5/17-106.05 new) | ||||||
3 | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
| ||||||
4 | teacher under this Article who first became a member or
| ||||||
5 | participant before January 1, 2011 under any reciprocal
| ||||||
6 | retirement system or pension fund established under this Code
| ||||||
7 | other than a retirement system or pension fund established
| ||||||
8 | under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
9 | (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) | ||||||
10 | Sec. 17-129. Employer contributions; deficiency in Fund. | ||||||
11 | (a) If in any fiscal year of the Board of Education ending | ||||||
12 | prior to 1997 the
total amounts paid to the Fund from the Board | ||||||
13 | of Education (other than under
this subsection, and other than | ||||||
14 | amounts used for making or "picking up"
contributions on behalf | ||||||
15 | of teachers) and from the State do not equal the total
| ||||||
16 | contributions made by or on behalf of the teachers for such | ||||||
17 | year, or if the
total income of the Fund in any such fiscal | ||||||
18 | year of the Board of Education from
all sources is less than | ||||||
19 | the total such expenditures by the Fund for such year,
the | ||||||
20 | Board of Education shall, in the next succeeding year, in | ||||||
21 | addition to any
other payment to the Fund set apart and | ||||||
22 | appropriate from moneys from its tax
levy for educational | ||||||
23 | purposes, a sum sufficient to remove such deficiency or
| ||||||
24 | deficiencies, and promptly pay such sum into the Fund in order |
| |||||||
| |||||||
1 | to restore any
of the reserves of the Fund that may have been | ||||||
2 | so temporarily applied. Any
amounts received by the Fund after | ||||||
3 | December 4, 1997 from State appropriations, including under | ||||||
4 | Section
17-127, shall be a credit against and shall fully | ||||||
5 | satisfy any obligation that
may have arisen, or be claimed to | ||||||
6 | have arisen, under this subsection (a) as a
result of any | ||||||
7 | deficiency or deficiencies in the fiscal year of the Board of
| ||||||
8 | Education ending in calendar year 1997. | ||||||
9 | (b) (i) Notwithstanding any other provision of this | ||||||
10 | Section, and notwithstanding any prior certification by the | ||||||
11 | Board under subsection (c) for fiscal year 2011, the Board of | ||||||
12 | Education's total required contribution to the Fund for fiscal | ||||||
13 | year 2011 under this Section is $187,000,000. | ||||||
14 | (ii) Notwithstanding any other provision of this Section, | ||||||
15 | the Board of Education's total required contribution to the | ||||||
16 | Fund for fiscal year 2012 under this Section is $192,000,000. | ||||||
17 | (iii) Notwithstanding any other provision of this Section, | ||||||
18 | the Board of Education's total required contribution to the | ||||||
19 | Fund for fiscal year 2013 under this Section is $196,000,000. | ||||||
20 | (iv) For fiscal years 2014 through 2059, the minimum | ||||||
21 | contribution to the Fund to be made by the Board of Education | ||||||
22 | in each fiscal year shall be an amount determined by the Fund | ||||||
23 | to be sufficient to bring the total assets of the Fund up to | ||||||
24 | 90% of the total actuarial liabilities of the Fund by the end | ||||||
25 | of fiscal year 2059. In making these determinations, the | ||||||
26 | required Board of Education contribution shall be calculated |
| |||||||
| |||||||
1 | each year as a level percentage of the applicable employee | ||||||
2 | payrolls over the years remaining to and including fiscal year | ||||||
3 | 2059 and shall be determined under the projected unit credit | ||||||
4 | actuarial cost method. | ||||||
5 | (v) Beginning in fiscal year 2060, the minimum Board of | ||||||
6 | Education contribution for each fiscal year shall be the amount | ||||||
7 | needed to maintain the total assets of the Fund at 90% of the | ||||||
8 | total actuarial liabilities of the Fund. | ||||||
9 | (vi) Notwithstanding any other provision of this | ||||||
10 | subsection (b), for any fiscal year, the contribution to the | ||||||
11 | Fund from the Board of Education shall not be required to be in | ||||||
12 | excess of the amount calculated as needed to maintain the | ||||||
13 | assets (or cause the assets to be) at the 90% level by the end | ||||||
14 | of the fiscal year. | ||||||
15 | (vii) Any contribution by the State to or for the benefit | ||||||
16 | of the Fund, including, without limitation, as referred to | ||||||
17 | under Section 17-127, shall be a credit against any | ||||||
18 | contribution required to be made by the Board of Education | ||||||
19 | under this subsection (b). | ||||||
20 | (c) The Board shall determine the amount of Board of | ||||||
21 | Education
contributions required for each fiscal year on the | ||||||
22 | basis of the actuarial
tables and other assumptions adopted by | ||||||
23 | the Board and the recommendations of
the actuary, in order to | ||||||
24 | meet the minimum contribution requirements of
subsections (a) | ||||||
25 | and (b). Annually, on or before February 28, the Board shall
| ||||||
26 | certify to the Board of Education the amount of the required |
| |||||||
| |||||||
1 | Board of Education
contribution for the coming fiscal year. The | ||||||
2 | certification shall include a
copy of the actuarial | ||||||
3 | recommendations upon which it is based. | ||||||
4 | Beginning in fiscal year 2018, any increase or
decrease in | ||||||
5 | the Board of Education's contribution over the prior fiscal | ||||||
6 | year due
exclusively to changes in actuarial or investment | ||||||
7 | assumptions
adopted by the Board shall be included in the Board | ||||||
8 | of Education's
contribution to the Fund, as a percentage of the | ||||||
9 | applicable
employee payroll, and shall be increased in equal | ||||||
10 | annual
increments so that by the fiscal year occurring 5 years
| ||||||
11 | after the adoption of the actuarial or investment assumptions,
| ||||||
12 | the Board of Education is contributing at the rate otherwise | ||||||
13 | required under
this Section. | ||||||
14 | (d) As soon as practical after the effective date of this | ||||||
15 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
16 | recalculate and
recertify to the Board of Education the amount | ||||||
17 | of the required Board of Education contribution to the Fund for | ||||||
18 | fiscal year 2018, as necessary to take into account the changes | ||||||
19 | in required Board of Education contributions made by this | ||||||
20 | amendatory Act of the 100th General Assembly. | ||||||
21 | (Source: P.A. 96-889, eff. 4-14-10.)
| ||||||
22 | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| ||||||
23 | Sec. 18-131. Financing; employer contributions.
| ||||||
24 | (a) The State of Illinois shall make contributions to this | ||||||
25 | System by
appropriations of the amounts which, together with |
| |||||||
| |||||||
1 | the contributions of
participants, net earnings on | ||||||
2 | investments, and other income, will meet the
costs of | ||||||
3 | maintaining and administering this System on a 90% funded basis | ||||||
4 | in
accordance with actuarial recommendations.
| ||||||
5 | (b) The Board shall determine the amount of State | ||||||
6 | contributions
required for each fiscal year on the basis of the | ||||||
7 | actuarial tables and other
assumptions adopted by the Board and | ||||||
8 | the prescribed rate of interest, using
the formula in | ||||||
9 | subsection (c).
| ||||||
10 | (c) For State fiscal years 2018 through 2045, the minimum | ||||||
11 | contribution to the System to be made by the State for each | ||||||
12 | fiscal year shall be an amount determined by the System to be | ||||||
13 | sufficient to bring the total assets of the System up to 90% of | ||||||
14 | the total actuarial liabilities of the System by the end of | ||||||
15 | State fiscal year 2045. In making these determinations, the | ||||||
16 | required State contribution shall be calculated each year as a | ||||||
17 | level percentage of total payroll, including payroll that is | ||||||
18 | not deemed pensionable, over the years remaining to and | ||||||
19 | including fiscal year 2045 and shall be determined under the | ||||||
20 | projected unit credit actuarial cost method. | ||||||
21 | Beginning in State fiscal year 2018, any increase or | ||||||
22 | decrease in State contribution over the prior fiscal year due | ||||||
23 | exclusively to changes in actuarial or investment assumptions | ||||||
24 | adopted by the Board shall be included in the State | ||||||
25 | contribution to the System, as a percentage of the applicable | ||||||
26 | employee payroll, and shall be increased in equal annual |
| |||||||
| |||||||
1 | increments so that by the State fiscal year occurring 5 years | ||||||
2 | after the adoption of the actuarial or investment assumptions, | ||||||
3 | the State is contributing at the rate otherwise required under | ||||||
4 | this Section. | ||||||
5 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
6 | contribution
to the System to be made by the State for each | ||||||
7 | fiscal year shall be an amount
determined by the System to be | ||||||
8 | sufficient to bring the total assets of the
System up to 90% of | ||||||
9 | the total actuarial liabilities of the System by the end of
| ||||||
10 | State fiscal year 2045. In making these determinations, the | ||||||
11 | required State
contribution shall be calculated each year as a | ||||||
12 | level percentage of payroll
over the years remaining to and | ||||||
13 | including fiscal year 2045 and shall be
determined under the | ||||||
14 | projected unit credit actuarial cost method.
| ||||||
15 | For State fiscal years 1996 through 2005, the State | ||||||
16 | contribution to
the System, as a percentage of the applicable | ||||||
17 | employee payroll, shall be
increased in equal annual increments | ||||||
18 | so that by State fiscal year 2011, the
State is contributing at | ||||||
19 | the rate required under this Section.
| ||||||
20 | Notwithstanding any other provision of this Article, the | ||||||
21 | total required State
contribution for State fiscal year 2006 is | ||||||
22 | $29,189,400.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State
contribution for State fiscal year 2007 is | ||||||
25 | $35,236,800.
| ||||||
26 | For each of State fiscal years 2008 through 2009, the State |
| |||||||
| |||||||
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 | $78,832,000 and shall be made from the proceeds of bonds sold | ||||||
9 | 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 General Revenue | ||||||
13 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
14 | proceeds due to the issuance of discounted bonds, if | ||||||
15 | applicable. | ||||||
16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State contribution for State fiscal year 2011 is
| ||||||
18 | the amount recertified by the System on or before April 1, 2011 | ||||||
19 | pursuant to Section 18-140 and shall be made from the proceeds | ||||||
20 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
21 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
22 | bond sale
expenses determined by the System's share of total | ||||||
23 | bond
proceeds, (ii) any amounts received from the General | ||||||
24 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
25 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
26 | applicable. |
| |||||||
| |||||||
1 | Beginning in State fiscal year 2046, the minimum State | ||||||
2 | contribution for
each fiscal year shall be the amount needed to | ||||||
3 | maintain the total assets of
the System at 90% of the total | ||||||
4 | actuarial liabilities of the System.
| ||||||
5 | Amounts received by the System pursuant to Section 25 of | ||||||
6 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
7 | Finance Act in any fiscal year do not reduce and do not | ||||||
8 | constitute payment of any portion of the minimum State | ||||||
9 | contribution required under this Article in that fiscal year. | ||||||
10 | Such amounts shall not reduce, and shall not be included in the | ||||||
11 | calculation of, the required State contributions under this | ||||||
12 | Article in any future year until the System has reached a | ||||||
13 | funding ratio of at least 90%. A reference in this Article to | ||||||
14 | the "required State contribution" or any substantially similar | ||||||
15 | term does not include or apply to any amounts payable to the | ||||||
16 | System under Section 25 of the Budget Stabilization Act.
| ||||||
17 | Notwithstanding any other provision of this Section, the | ||||||
18 | required State
contribution for State fiscal year 2005 and for | ||||||
19 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
20 | under this Section and
certified under Section 18-140, shall | ||||||
21 | not exceed an amount equal to (i) the
amount of the required | ||||||
22 | State contribution that would have been calculated under
this | ||||||
23 | Section for that fiscal year if the System had not received any | ||||||
24 | payments
under subsection (d) of Section 7.2 of the General | ||||||
25 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
26 | total debt service payments for that fiscal
year on the bonds |
| |||||||
| |||||||
1 | issued in fiscal year 2003 for the purposes of that Section | ||||||
2 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
3 | the same as the System's portion of
the total moneys | ||||||
4 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act. In determining this maximum for State | ||||||
6 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
7 | in item (i) shall be increased, as a percentage of the | ||||||
8 | applicable employee payroll, in equal increments calculated | ||||||
9 | from the sum of the required State contribution for State | ||||||
10 | fiscal year 2007 plus the applicable portion of the State's | ||||||
11 | total debt service payments for fiscal year 2007 on the bonds | ||||||
12 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
13 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
14 | 2011, the
State is contributing at the rate otherwise required | ||||||
15 | under this Section.
| ||||||
16 | (d) For purposes of determining the required State | ||||||
17 | contribution to the System, the value of the System's assets | ||||||
18 | shall be equal to the actuarial value of the System's assets, | ||||||
19 | which shall be calculated as follows: | ||||||
20 | As of June 30, 2008, the actuarial value of the System's | ||||||
21 | assets shall be equal to the market value of the assets as of | ||||||
22 | that date. In determining the actuarial value of the System's | ||||||
23 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
24 | gains or losses from investment return incurred in a fiscal | ||||||
25 | year shall be recognized in equal annual amounts over the | ||||||
26 | 5-year period following that fiscal year. |
| |||||||
| |||||||
1 | (e) For purposes of determining the required State | ||||||
2 | contribution to the system for a particular year, the actuarial | ||||||
3 | value of assets shall be assumed to earn a rate of return equal | ||||||
4 | to the system's actuarially assumed rate of return. | ||||||
5 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
6 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
7 | 7-13-12.)
| ||||||
8 | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| ||||||
9 | Sec. 18-140. To certify required State contributions and | ||||||
10 | submit vouchers.
| ||||||
11 | (a) The Board shall certify to the Governor, on or before | ||||||
12 | November 15 of
each year until November 15, 2011, the amount of | ||||||
13 | the required State contribution to the System for the
following | ||||||
14 | fiscal year and shall specifically identify the System's | ||||||
15 | projected State normal cost for that fiscal year. The | ||||||
16 | certification shall include a copy of the actuarial
| ||||||
17 | recommendations upon which it is based and shall specifically | ||||||
18 | identify the System's projected State normal cost for that | ||||||
19 | fiscal year.
| ||||||
20 | On or before November 1 of each year, beginning November 1, | ||||||
21 | 2012, the Board shall submit to the State Actuary, the | ||||||
22 | Governor, and the General Assembly a proposed certification of | ||||||
23 | the amount of the required State contribution to the System for | ||||||
24 | the next fiscal year, along with all of the actuarial | ||||||
25 | assumptions, calculations, and data upon which that proposed |
| |||||||
| |||||||
1 | certification is based. On or before January 1 of each year | ||||||
2 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
3 | preliminary report concerning the proposed certification and | ||||||
4 | identifying, if necessary, recommended changes in actuarial | ||||||
5 | assumptions that the Board must consider before finalizing its | ||||||
6 | certification of the required State contributions. On or before | ||||||
7 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
8 | shall certify to the Governor and the General Assembly the | ||||||
9 | amount of the required State contribution for the next fiscal | ||||||
10 | year. The Board's certification must note any deviations from | ||||||
11 | the State Actuary's recommended changes, the reason or reasons | ||||||
12 | for not following the State Actuary's recommended changes, and | ||||||
13 | the fiscal impact of not following the State Actuary's | ||||||
14 | recommended changes on the required State contribution. | ||||||
15 | On or before May 1, 2004, the Board shall recalculate and | ||||||
16 | recertify to
the Governor the amount of the required State | ||||||
17 | contribution to the System for
State fiscal year 2005, taking | ||||||
18 | into account the amounts appropriated to and
received by the | ||||||
19 | System under subsection (d) of Section 7.2 of the General
| ||||||
20 | Obligation Bond Act.
| ||||||
21 | On or before July 1, 2005, the Board shall recalculate and | ||||||
22 | recertify
to the Governor the amount of the required State
| ||||||
23 | contribution to the System for State fiscal year 2006, taking | ||||||
24 | into account the changes in required State contributions made | ||||||
25 | by this amendatory Act of the 94th General Assembly.
| ||||||
26 | On or before April 1, 2011, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to the Governor the amount of the required State | ||||||
2 | contribution to the System for State fiscal year 2011, applying | ||||||
3 | the changes made by Public Act 96-889 to the System's assets | ||||||
4 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
5 | was approved on that date. | ||||||
6 | As soon as practical after the effective date of this | ||||||
7 | amendatory Act of the 100th General Assembly, the Board shall | ||||||
8 | recalculate and recertify to the State Actuary, the Governor, | ||||||
9 | and the General Assembly the amount of the State contribution | ||||||
10 | to the System for State fiscal year 2018, taking into account | ||||||
11 | the changes in required State contributions made by this | ||||||
12 | amendatory Act of the 100th General Assembly. The State Actuary | ||||||
13 | shall review the assumptions and valuations underlying the | ||||||
14 | Board's revised certification and issue a preliminary report | ||||||
15 | concerning the proposed recertification and identifying, if | ||||||
16 | necessary, recommended changes in actuarial assumptions that | ||||||
17 | the Board must consider before finalizing its certification of | ||||||
18 | the required State contributions. The Board's final | ||||||
19 | certification must note any deviations from the State Actuary's | ||||||
20 | recommended changes, the reason or reasons for not following | ||||||
21 | the State Actuary's recommended changes, and the fiscal impact | ||||||
22 | of not following the State Actuary's recommended changes on the | ||||||
23 | required State contribution. | ||||||
24 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
25 | possible after
the 15th day of each month the Board shall | ||||||
26 | submit vouchers for payment of State
contributions to the |
| |||||||
| |||||||
1 | System, in a total monthly amount of one-twelfth of the
| ||||||
2 | required annual State contribution certified under subsection | ||||||
3 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
4 | General Assembly through June 30, 2004, the Board shall not
| ||||||
5 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
6 | of the
fiscal year 2004 certified contribution amount | ||||||
7 | determined
under this Section after taking into consideration | ||||||
8 | the transfer to the
System under subsection (c) of Section | ||||||
9 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
10 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
11 | funds appropriated to the System for that fiscal year.
| ||||||
12 | If in any month the amount remaining unexpended from all | ||||||
13 | other
appropriations to the System for the applicable fiscal | ||||||
14 | year (including the
appropriations to the System under Section | ||||||
15 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
16 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
17 | amount lawfully vouchered under this Section, the difference | ||||||
18 | shall be paid
from the General Revenue Fund under the | ||||||
19 | continuing appropriation authority
provided in Section 1.1 of | ||||||
20 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
21 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
22 | 97-694, eff. 6-18-12.)
| ||||||
23 | (40 ILCS 5/18-161.5 new) | ||||||
24 | Sec. 18-161.5. Accelerated pension benefit payment. | ||||||
25 | (a) As used in this Section: |
| |||||||
| |||||||
1 | "Eligible person" means a person who: | ||||||
2 | (1) has terminated service; | ||||||
3 | (2) has accrued sufficient service credit to be | ||||||
4 | eligible to receive a retirement annuity under this | ||||||
5 | Article; | ||||||
6 | (3) has not received any retirement annuity under this | ||||||
7 | Article; and | ||||||
8 | (4) does not have a QILDRO in effect against him or her | ||||||
9 | under this Article. | ||||||
10 | "Pension benefit" means the benefits under this Article, or | ||||||
11 | Article 1 as it relates to those benefits, including any | ||||||
12 | anticipated annual increases, that an eligible person is | ||||||
13 | entitled to upon attainment of the applicable retirement age. | ||||||
14 | "Pension benefit" also includes applicable survivor's or | ||||||
15 | disability benefits. | ||||||
16 | (b) Before January 1, 2018, the System shall calculate, | ||||||
17 | using actuarial tables and other assumptions adopted by the | ||||||
18 | Board, the net present value of pension benefits for each | ||||||
19 | eligible person and shall offer each eligible person the | ||||||
20 | opportunity to irrevocably elect to receive an amount | ||||||
21 | determined by the System to be equal to 70% of the net present | ||||||
22 | value of his or her pension benefits in lieu of receiving any | ||||||
23 | pension benefit. The offer shall specify the dollar amount that | ||||||
24 | the eligible person will receive if he or she so elects and | ||||||
25 | shall expire when a subsequent offer is made to an eligible | ||||||
26 | person. The System shall make a good faith effort to contact |
| |||||||
| |||||||
1 | every eligible person to notify him or her of the election and | ||||||
2 | of the amount of the accelerated pension benefit payment. | ||||||
3 | Beginning January 1, 2018 and until July 1, 2018, an | ||||||
4 | eligible person may irrevocably elect to receive an accelerated | ||||||
5 | pension benefit payment in the amount that the System offers | ||||||
6 | under this subsection in lieu of receiving any pension benefit. | ||||||
7 | A person who elects to receive an accelerated pension benefit | ||||||
8 | payment under this Section may not elect to proceed under the | ||||||
9 | Retirement Systems Reciprocal Act with respect to service under | ||||||
10 | this Article. | ||||||
11 | (c) A person's credits and creditable service under this | ||||||
12 | Article shall be terminated upon the person's receipt of an | ||||||
13 | accelerated pension benefit payment under this Section, and no | ||||||
14 | other benefit shall be paid under this Article based on those | ||||||
15 | terminated credits and creditable service, including any | ||||||
16 | retirement, survivor, or other benefit; except that to the | ||||||
17 | extent that participation, benefits, or premiums under the | ||||||
18 | State Employees Group Insurance Act of 1971 are based on the | ||||||
19 | amount of service credit, the terminated service credit shall | ||||||
20 | be used for that purpose. | ||||||
21 | (d) If a person who has received an accelerated pension | ||||||
22 | benefit payment under this Section returns to active service | ||||||
23 | under this Article, then: | ||||||
24 | (1) Any benefits under the System earned as a result of | ||||||
25 | that return to active service shall be based solely on the | ||||||
26 | person's credits and creditable service arising from the |
| |||||||
| |||||||
1 | return to active service. | ||||||
2 | (2) The accelerated pension benefit payment may not be | ||||||
3 | repaid to the System, and the terminated credits and | ||||||
4 | creditable service may not under any circumstances be | ||||||
5 | reinstated. | ||||||
6 | (e) As a condition of receiving an accelerated pension | ||||||
7 | benefit payment, an eligible person must have another | ||||||
8 | retirement plan or account qualified under the Internal Revenue | ||||||
9 | Code of 1986, as amended, for the accelerated pension benefit | ||||||
10 | payment to be rolled into. The accelerated pension benefit | ||||||
11 | payment under this Section may be subject to withholding or | ||||||
12 | payment of applicable taxes, but to the extent permitted by | ||||||
13 | federal law, a person who receives an accelerated pension | ||||||
14 | benefit payment under this Section must direct the System to | ||||||
15 | pay all of that payment as a rollover into another retirement | ||||||
16 | plan or account qualified under the Internal Revenue Code of | ||||||
17 | 1986, as amended. | ||||||
18 | (f) Before January 1, 2019, the Board shall certify to the | ||||||
19 | Illinois Finance Authority and the General Assembly the amount | ||||||
20 | by which the total amount of accelerated pension benefit | ||||||
21 | payments made under this Section exceed the amount appropriated | ||||||
22 | to the System for the purpose of making those payments. | ||||||
23 | (g) The Board shall adopt any rules necessary to implement | ||||||
24 | this Section. | ||||||
25 | (h) No provision of this Section shall be interpreted in a | ||||||
26 | way that would cause the applicable System to cease to be a |
| |||||||
| |||||||
1 | qualified plan under the Internal Revenue Code of 1986. | ||||||
2 | (40 ILCS 5/18-169)
| ||||||
3 | Sec. 18-169. Application and expiration of new benefit | ||||||
4 | increases. | ||||||
5 | (a) As used in this Section, "new benefit increase" means | ||||||
6 | an increase in the amount of any benefit provided under this | ||||||
7 | Article, or an expansion of the conditions of eligibility for | ||||||
8 | any benefit under this Article, that results from an amendment | ||||||
9 | to this Code that takes effect after June 1, 2005 (the | ||||||
10 | effective date of Public Act 94-4). "New benefit increase", | ||||||
11 | however, does not include any benefit increase resulting from | ||||||
12 | the changes made to this Article by this amendatory Act of the | ||||||
13 | 100th General Assembly the effective date of this amendatory | ||||||
14 | Act of the 94th General Assembly . | ||||||
15 | (b) Notwithstanding any other provision of this Code or any | ||||||
16 | subsequent amendment to this Code, every new benefit increase | ||||||
17 | is subject to this Section and shall be deemed to be granted | ||||||
18 | only in conformance with and contingent upon compliance with | ||||||
19 | the provisions of this Section.
| ||||||
20 | (c) The Public Act enacting a new benefit increase must | ||||||
21 | identify and provide for payment to the System of additional | ||||||
22 | funding at least sufficient to fund the resulting annual | ||||||
23 | increase in cost to the System as it accrues. | ||||||
24 | Every new benefit increase is contingent upon the General | ||||||
25 | Assembly providing the additional funding required under this |
| |||||||
| |||||||
1 | subsection. The Commission on Government Forecasting and | ||||||
2 | Accountability shall analyze whether adequate additional | ||||||
3 | funding has been provided for the new benefit increase and | ||||||
4 | shall report its analysis to the Public Pension Division of the | ||||||
5 | Department of Financial and Professional Regulation. A new | ||||||
6 | benefit increase created by a Public Act that does not include | ||||||
7 | the additional funding required under this subsection is null | ||||||
8 | and void. If the Public Pension Division determines that the | ||||||
9 | additional funding provided for a new benefit increase under | ||||||
10 | this subsection is or has become inadequate, it may so certify | ||||||
11 | to the Governor and the State Comptroller and, in the absence | ||||||
12 | of corrective action by the General Assembly, the new benefit | ||||||
13 | increase shall expire at the end of the fiscal year in which | ||||||
14 | the certification is made.
| ||||||
15 | (d) Every new benefit increase shall expire 5 years after | ||||||
16 | its effective date or on such earlier date as may be specified | ||||||
17 | in the language enacting the new benefit increase or provided | ||||||
18 | under subsection (c). This does not prevent the General | ||||||
19 | Assembly from extending or re-creating a new benefit increase | ||||||
20 | by law. | ||||||
21 | (e) Except as otherwise provided in the language creating | ||||||
22 | the new benefit increase, a new benefit increase that expires | ||||||
23 | under this Section continues to apply to persons who applied | ||||||
24 | and qualified for the affected benefit while the new benefit | ||||||
25 | increase was in effect and to the affected beneficiaries and | ||||||
26 | alternate payees of such persons, but does not apply to any |
| |||||||
| |||||||
1 | other person, including without limitation a person who | ||||||
2 | continues in service after the expiration date and did not | ||||||
3 | apply and qualify for the affected benefit while the new | ||||||
4 | benefit increase was in effect.
| ||||||
5 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
6 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
7 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
8 | which has been held unconstitutional)
| ||||||
9 | Sec. 20-121. Calculation of proportional retirement | ||||||
10 | annuities. | ||||||
11 | (a) Upon
retirement of the employee, a proportional | ||||||
12 | retirement annuity shall be computed
by each participating | ||||||
13 | system in which pension credit has been established on
the | ||||||
14 | basis of pension credits under each system. The computation | ||||||
15 | shall be in
accordance with the formula or method prescribed by | ||||||
16 | each participating system
which is in effect at the date of the | ||||||
17 | employee's latest withdrawal from service
covered by any of the | ||||||
18 | systems in which he has pension credits which he elects
to have | ||||||
19 | considered under this Article. However, the amount of any | ||||||
20 | retirement
annuity payable under the self-managed plan | ||||||
21 | established under Section 15-158.2
of this Code or under the | ||||||
22 | defined contribution plan established under Article 2, 14, 15, | ||||||
23 | or 16 of this Code depends solely on the value of the | ||||||
24 | participant's vested account
balances and is not subject to any | ||||||
25 | proportional adjustment under this
Section.
|
| |||||||
| |||||||
1 | (a-5) For persons who participate in a defined contribution | ||||||
2 | plan established under Article 2, 14, 15, or 16 of this Code to | ||||||
3 | whom the provisions of this Article apply, the pension credits | ||||||
4 | established under the defined contribution plan may be | ||||||
5 | considered in
determining eligibility for or the amount of the | ||||||
6 | defined benefit retirement annuity that is
payable by any other | ||||||
7 | participating system. | ||||||
8 | (b) Combined pension credit under all retirement systems | ||||||
9 | subject to this
Article shall be considered in determining | ||||||
10 | whether the minimum qualification
has been met and the formula | ||||||
11 | or method of computation which shall be applied , except as may | ||||||
12 | be otherwise provided with respect to vesting in State or | ||||||
13 | employer contributions in a defined contribution plan .
If a | ||||||
14 | system has a step-rate formula for calculation of the | ||||||
15 | retirement annuity,
pension credits covering previous service | ||||||
16 | which have been established under
another system shall be | ||||||
17 | considered in determining which range or ranges of
the | ||||||
18 | step-rate formula are to be applicable to the employee.
| ||||||
19 | (c) Interest on pension credit shall continue to accumulate | ||||||
20 | in accordance with
the provisions of the law governing the | ||||||
21 | retirement system in which the same
has been established during | ||||||
22 | the time an employee is in the service of another
employer, on | ||||||
23 | the assumption such employee, for interest purposes for pension
| ||||||
24 | credit, is continuing in the service covered by such retirement | ||||||
25 | system.
| ||||||
26 | (Source: P.A. 91-887, eff. 7-6-00.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been held unconstitutional)
| ||||||
4 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
5 | a retirement
annuity shall be applicable to a survivor's | ||||||
6 | annuity. Appropriate credits shall
be established for | ||||||
7 | survivor's annuity purposes in those participating systems
| ||||||
8 | which provide survivor's annuities, according to the same | ||||||
9 | conditions and
subject to the same limitations and restrictions | ||||||
10 | herein prescribed for a
retirement annuity. If a participating | ||||||
11 | system has no survivor's annuity
benefit, or if the survivor's | ||||||
12 | annuity benefit under that system is waived,
pension credit | ||||||
13 | established in that system shall not be considered
in | ||||||
14 | determining eligibility for or the amount of the survivor's | ||||||
15 | annuity which
may be payable by any other participating system.
| ||||||
16 | For persons who participate in the self-managed plan | ||||||
17 | established under
Section 15-158.2 or the portable benefit | ||||||
18 | package established under Section
15-136.4, pension credit | ||||||
19 | established under Article 15 may be considered in
determining | ||||||
20 | eligibility for or the amount of the survivor's annuity that is
| ||||||
21 | payable by any other participating system, but pension credit | ||||||
22 | established in
any other system shall not result in any right | ||||||
23 | to a survivor's annuity under
the Article 15 system.
| ||||||
24 | For persons who participate in a defined contribution plan | ||||||
25 | established under Article 2, 14, 15, or 16 of this Code to whom |
| |||||||
| |||||||
1 | the provisions of this Article apply, the pension credits | ||||||
2 | established under the defined contribution plan may be | ||||||
3 | considered in
determining eligibility for or the amount of the | ||||||
4 | defined benefit survivor's annuity that is
payable by any other | ||||||
5 | participating system, but pension credits established in
any | ||||||
6 | other system shall not result in any right to or increase in | ||||||
7 | the value of a survivor's annuity under
the defined | ||||||
8 | contribution plan, which depends solely on the options chosen | ||||||
9 | and the value of the participant's vested account
balances and | ||||||
10 | is not subject to any proportional adjustment under this
| ||||||
11 | Section. | ||||||
12 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
13 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
14 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
15 | which has been held unconstitutional)
| ||||||
16 | Sec. 20-124. Maximum benefits. | ||||||
17 | (a) In no event shall the combined retirement
or survivors | ||||||
18 | annuities exceed the highest annuity which would have been | ||||||
19 | payable
by any participating system in which the employee has | ||||||
20 | pension credits, if all
of his pension credits had been | ||||||
21 | validated in that system.
| ||||||
22 | If the combined annuities should exceed the highest maximum | ||||||
23 | as determined
in accordance with this Section, the respective | ||||||
24 | annuities shall be reduced
proportionately according to the | ||||||
25 | ratio which the amount of each proportional
annuity bears to |
| |||||||
| |||||||
1 | the aggregate of all such annuities.
| ||||||
2 | (b) In the case of a participant in the self-managed plan | ||||||
3 | established under
Section 15-158.2 of this Code to whom the | ||||||
4 | provisions of this Article apply:
| ||||||
5 | (i) For purposes of calculating the combined | ||||||
6 | retirement annuity and
the proportionate reduction, if | ||||||
7 | any, in a retirement annuity other than one
payable under | ||||||
8 | the self-managed plan, the amount of the Article 15 | ||||||
9 | retirement
annuity shall be deemed to be the highest | ||||||
10 | annuity to which the annuitant would
have been entitled if | ||||||
11 | he or she had participated in the traditional benefit
| ||||||
12 | package as defined in Section 15-103.1 rather than the | ||||||
13 | self-managed plan.
| ||||||
14 | (ii) For purposes of calculating the combined | ||||||
15 | survivor's annuity and
the proportionate reduction, if | ||||||
16 | any, in a survivor's annuity other than one
payable under | ||||||
17 | the self-managed plan, the amount of the Article 15 | ||||||
18 | survivor's
annuity shall be deemed to be the highest | ||||||
19 | survivor's annuity to which the
survivor would have been | ||||||
20 | entitled if the deceased employee had participated in
the | ||||||
21 | traditional benefit package as defined in Section 15-103.1 | ||||||
22 | rather than the
self-managed plan.
| ||||||
23 | (iii) Benefits payable under the self-managed plan are | ||||||
24 | not subject to
proportionate reduction under this Section.
| ||||||
25 | (c) In the case of a participant in a defined contribution | ||||||
26 | plan established under
Article 2, 14, 15, or 16 of this Code to |
| |||||||
| |||||||
1 | whom the provisions of this Article apply: | ||||||
2 | (i) For purposes of calculating the combined | ||||||
3 | retirement annuity and
the proportionate reduction, if | ||||||
4 | any, in a defined benefit retirement annuity, any benefit | ||||||
5 | payable under the defined contribution plan shall not be | ||||||
6 | considered. | ||||||
7 | (ii) For purposes of calculating the combined | ||||||
8 | survivor's annuity and
the proportionate reduction, if | ||||||
9 | any, in a defined benefit survivor's annuity, any benefit | ||||||
10 | payable under the defined contribution plan shall not be | ||||||
11 | considered. | ||||||
12 | (iii) Benefits payable under a defined contribution | ||||||
13 | plan established under Article 2, 14, 15, or 16 of this | ||||||
14 | Code are not subject to
proportionate reduction under this | ||||||
15 | Section. | ||||||
16 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
17 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
18 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
19 | which has been held unconstitutional)
| ||||||
20 | Sec. 20-125. Return to employment - suspension of benefits. | ||||||
21 | If a retired
employee returns to employment which is covered by | ||||||
22 | a system from which he is
receiving a proportional annuity | ||||||
23 | under this Article, his proportional annuity
from all | ||||||
24 | participating systems shall be suspended during the period of
| ||||||
25 | re-employment, except that this suspension does not apply to |
| |||||||
| |||||||
1 | any
distributions payable under the self-managed plan | ||||||
2 | established under Section
15-158.2 or under a defined | ||||||
3 | contribution plan established under Article 2, 14, 15, or 16 of | ||||||
4 | this Code.
| ||||||
5 | The provisions of the Article under which such employment | ||||||
6 | would be
covered shall govern the determination of whether the | ||||||
7 | employee has returned
to employment, and if applicable the | ||||||
8 | exemption of temporary employment or
employment not exceeding a | ||||||
9 | specified duration or frequency, for all
participating systems | ||||||
10 | from which the retired employee is receiving a
proportional | ||||||
11 | annuity under this Article, notwithstanding any contrary
| ||||||
12 | provisions in the other Articles governing such systems.
| ||||||
13 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
14 | (40 ILCS 5/2-165 rep.) | ||||||
15 | (40 ILCS 5/2-166 rep.) | ||||||
16 | (40 ILCS 5/14-155 rep.) | ||||||
17 | (40 ILCS 5/14-156 rep.) | ||||||
18 | (40 ILCS 5/15-200 rep.) | ||||||
19 | (40 ILCS 5/15-201 rep.) | ||||||
20 | (40 ILCS 5/16-205 rep.) | ||||||
21 | (40 ILCS 5/16-206 rep.) | ||||||
22 | Section 35. The Illinois Pension Code is amended by | ||||||
23 | repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200, | ||||||
24 | 15-201, 16-205, and 16-206. |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Section 40. The State Pension Funds Continuing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Appropriation Act is amended by adding Section 1.9 as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (40 ILCS 15/1.9 new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Sec. 1.9. Appropriations for State Pension Obligation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Acceleration Bonds. If for any reason the aggregate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | appropriations made available are insufficient to meet the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | levels required for the payment of principal and interest due | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | on State Pension Obligation Acceleration Bonds under Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | 7.6 of the General Obligation Bond Act, this Section shall | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | constitute a continuing appropriation of all amounts necessary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | for those purposes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Section 900. The State Mandates Act is amended by adding | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Section 8.41 as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | (30 ILCS 805/8.41 new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | of this Act, no reimbursement by the State is required for the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | implementation of any mandate created by this amendatory Act of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | the 100th General Assembly. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | Section 970. Severability. The provisions of this Act are | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | severable under Section 1.31 of the Statute on Statutes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Section 999. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | becoming law. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||