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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB1427 Introduced 2/7/2023, by Sen. Win Stoller SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/14-104 | from Ch. 108 1/2, par. 14-104 | 40 ILCS 5/14-152.1 | |
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Amends the State Employee Article of the Illinois Pension Code. Provides that by paying specified required contributions, an employee who was laid off but returned to any State employment may establish creditable service for the period of the layoff, provided that (1) the applicant applies for the creditable service, (2) the applicant does not receive credit for that period under any other provision of the Code, (3) at the time of the layoff, the applicant is not in an initial probationary status consistent with the rules of the Department of Central Management Services, and (4) the total amount of creditable service established by the applicant does not exceed 3 years. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
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| | A BILL FOR |
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| | SB1427 | | LRB103 30243 RPS 56671 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by |
5 | | changing Sections 14-104 and 14-152.1 as follows: |
6 | | (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104) |
7 | | Sec. 14-104. Service for which contributions permitted.
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8 | | Contributions provided for in this Section shall cover the |
9 | | period of
service granted. Except as otherwise provided in |
10 | | this Section, the
contributions shall be based upon the |
11 | | employee's compensation and
contribution rate in effect on the |
12 | | date he last became a member of the
System; provided that for |
13 | | all employment prior to January 1, 1969 the
contribution rate |
14 | | shall be that in effect for a noncovered employee on
the date |
15 | | he last became a member of the System. Except as otherwise |
16 | | provided
in this Section, contributions permitted under this |
17 | | Section shall include
regular interest from the date an |
18 | | employee last became a member of the System
to the date of |
19 | | payment.
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20 | | These contributions must be paid in full before retirement |
21 | | either in
a lump sum or in installment payments in accordance |
22 | | with such rules as
may be adopted by the board.
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23 | | (a) Any member may make contributions as required in this |
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1 | | Section
for any period of service, subsequent to the date of |
2 | | establishment, but
prior to the date of membership.
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3 | | (b) Any employee who had been previously excluded from |
4 | | membership
because of age at entry and subsequently became |
5 | | eligible may elect to
make contributions as required in this |
6 | | Section for the period of service
during which he was |
7 | | ineligible.
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8 | | (c) An employee of the Department of Insurance who, after |
9 | | January 1,
1944 but prior to becoming eligible for membership, |
10 | | received salary from
funds of insurance companies in the |
11 | | process of rehabilitation,
liquidation, conservation or |
12 | | dissolution, may elect to make
contributions as required in |
13 | | this Section for such service.
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14 | | (d) Any employee who rendered service in a State office to |
15 | | which he
was elected, or rendered service in the elective |
16 | | office of Clerk of the
Appellate Court prior to the date he |
17 | | became a member, may make
contributions for such service as |
18 | | required in this Section. Any member
who served by appointment |
19 | | of the Governor under the Civil Administrative
Code of |
20 | | Illinois and did not participate in this System may make
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21 | | contributions as required in this Section for such service.
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22 | | (e) Any person employed by the United States government or |
23 | | any
instrumentality or agency thereof from January 1, 1942 |
24 | | through November
15, 1946 as the result of a transfer from |
25 | | State service by executive
order of the President of the |
26 | | United States shall be entitled to prior
service credit |
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1 | | covering the period from January 1, 1942 through December
31, |
2 | | 1943 as provided for in this Article and to membership service
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3 | | credit for the period from January 1, 1944 through November |
4 | | 15, 1946 by
making the contributions required in this Section. |
5 | | A person so employed
on January 1, 1944 but whose employment |
6 | | began after January 1, 1942 may
qualify for prior service and |
7 | | membership service credit under the same
conditions.
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8 | | (f) An employee of the Department of Labor of the State of |
9 | | Illinois who
performed services for and under the supervision |
10 | | of that Department
prior to January 1, 1944 but who was |
11 | | compensated for those services
directly by federal funds and |
12 | | not by a warrant of the Auditor of Public
Accounts paid by the |
13 | | State Treasurer may establish credit for such
employment by |
14 | | making the contributions required in this Section. An
employee |
15 | | of the Department of Agriculture of the State of Illinois, who
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16 | | performed services for and under the supervision of that |
17 | | Department
prior to June 1, 1963, but was compensated for |
18 | | those services directly
by federal funds and not paid by a |
19 | | warrant of the Auditor of Public
Accounts paid by the State |
20 | | Treasurer, and who did not contribute to any
other public |
21 | | employee retirement system for such service, may establish
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22 | | credit for such employment by making the contributions |
23 | | required in this
Section.
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24 | | (g) Any employee who executed a waiver of membership |
25 | | within
60 days prior to January 1, 1944 may, at any time while |
26 | | in the service of a
department, file with the board a |
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1 | | rescission of such waiver. Upon
making the contributions |
2 | | required by this Section, the member shall be
granted the |
3 | | creditable service that would have been received if the
waiver |
4 | | had not been executed.
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5 | | (h) Until May 1, 1990, an employee who was employed on a |
6 | | full-time
basis by a regional planning commission for at least |
7 | | 5 continuous years may
establish creditable service for such |
8 | | employment by making the
contributions required under this |
9 | | Section, provided that any credits earned
by the employee in |
10 | | the commission's retirement plan have been terminated.
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11 | | (i) Any person who rendered full time contractual services |
12 | | to the General
Assembly as a member of a legislative staff may |
13 | | establish service credit for up
to 8 years of such services by |
14 | | making the contributions required under this
Section, provided |
15 | | that application therefor is made not later than July 1,
1991.
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16 | | (j) By paying the contributions otherwise required under |
17 | | this Section,
plus an amount determined by the Board to be |
18 | | equal to the employer's normal
cost of the benefit plus |
19 | | interest, but with all of the interest calculated
from the |
20 | | date the employee last became a member of the System or |
21 | | November 19,
1991, whichever is later, to the date of payment, |
22 | | an employee may establish
service credit
for a period of up to |
23 | | 4 years spent in active military service for which he
does not |
24 | | qualify for credit under Section 14-105, provided that (1) he |
25 | | was
not dishonorably discharged from such military service, |
26 | | and (2) the amount
of service credit established by a member |
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1 | | under this subsection (j), when
added to the amount of |
2 | | military service credit granted to the member under
subsection |
3 | | (b) of Section 14-105, shall not exceed 5 years. The change
in |
4 | | the manner of calculating interest under this subsection (j) |
5 | | made by this
amendatory Act of the 92nd General Assembly |
6 | | applies to credit purchased by an
employee on or after its |
7 | | effective date and does not entitle any person to a
refund of |
8 | | contributions or interest already paid.
In compliance with |
9 | | Section 14-152.1 of this Act concerning new benefit increases, |
10 | | any new benefit increase as a result of the changes to this |
11 | | subsection (j) made by Public Act 95-483
is funded through the |
12 | | employee contributions provided for in this subsection (j). |
13 | | Any new benefit increase as a result of the changes made to |
14 | | this subsection (j) by Public Act 95-483
is exempt from the |
15 | | provisions of subsection (d) of Section 14-152.1.
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16 | | (k) An employee who was employed on a full-time basis by |
17 | | the Illinois
State's Attorneys Association Statewide Appellate |
18 | | Assistance Service
LEAA-ILEC grant project prior to the time |
19 | | that project became the State's
Attorneys Appellate Service |
20 | | Commission, now the Office of the State's
Attorneys Appellate |
21 | | Prosecutor, an agency of State government, may
establish |
22 | | creditable service for not more than 60 months service for
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23 | | such employment by making contributions required under this |
24 | | Section.
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25 | | (l) By paying the contributions otherwise required under |
26 | | this Section,
plus an amount determined by the Board to be |
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1 | | equal to the employer's normal
cost of the benefit plus |
2 | | interest, a member may establish service credit
for periods of |
3 | | less than one year spent on authorized leave of absence from
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4 | | service, provided that (1) the period of leave began on or |
5 | | after January 1,
1982 and (2) any credit established by the |
6 | | member for the period of leave in
any other public employee |
7 | | retirement system has been terminated. A member
may establish |
8 | | service credit under this subsection for more than one period
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9 | | of authorized leave, and in that case the total period of |
10 | | service credit
established by the member under this subsection |
11 | | may exceed one year. In
determining the contributions required |
12 | | for establishing service credit under
this subsection, the |
13 | | interest shall be calculated from the beginning of the
leave |
14 | | of absence to the date of payment.
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15 | | (l-5) By paying the contributions otherwise required under |
16 | | this Section,
plus an amount determined by the Board to be |
17 | | equal to the employer's normal
cost of the benefit plus |
18 | | interest, a member may establish service credit
for periods of |
19 | | up to 2 years spent on authorized leave of absence from
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20 | | service, provided that during that leave the member |
21 | | represented or was employed as an officer or employee of a |
22 | | statewide labor organization that represents members of this |
23 | | System. In
determining the contributions required for |
24 | | establishing service credit under
this subsection, the |
25 | | interest shall be calculated from the beginning of the
leave |
26 | | of absence to the date of payment.
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1 | | (m) Any person who rendered contractual services to a |
2 | | member of
the General Assembly as a worker in the member's |
3 | | district office may establish
creditable service for up to 3 |
4 | | years of those contractual services by making
the |
5 | | contributions required under this Section. The System shall |
6 | | determine a
full-time salary equivalent for the purpose of |
7 | | calculating the required
contribution. To establish credit |
8 | | under this subsection, the applicant must
apply to the System |
9 | | by March 1, 1998.
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10 | | (n) Any person who rendered contractual services to a |
11 | | member of
the General Assembly as a worker providing |
12 | | constituent services to persons in
the member's district may |
13 | | establish
creditable service for up to 8 years of those |
14 | | contractual services by making
the contributions required |
15 | | under this Section. The System shall determine a
full-time |
16 | | salary equivalent for the purpose of calculating the required
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17 | | contribution. To establish credit under this subsection, the |
18 | | applicant must
apply to the System by March 1, 1998.
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19 | | (o) A member who participated in the Illinois Legislative |
20 | | Staff
Internship Program may establish creditable service for |
21 | | up to one year
of that participation by making the |
22 | | contribution required under this Section.
The System shall |
23 | | determine a full-time salary equivalent for the purpose of
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24 | | calculating the required contribution. Credit may not be |
25 | | established under
this subsection for any period for which |
26 | | service credit is established under
any other provision of |
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1 | | this Code.
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2 | | (p) By paying the contributions otherwise required under |
3 | | this Section,
plus an amount determined by the Board to be |
4 | | equal to the employer's normal
cost of the benefit plus |
5 | | interest, a member may establish service credit
for a period |
6 | | of up to 8 years during which he or she was employed by the
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7 | | Visually Handicapped Managers of Illinois in a vending program |
8 | | operated under
a contractual agreement with the Department of |
9 | | Rehabilitation Services or its successor agency.
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10 | | This subsection (p) applies without regard to whether the |
11 | | person was in service on or after the effective date of this |
12 | | amendatory Act of the 94th General Assembly. In the case of a |
13 | | person who is receiving a retirement annuity on that effective |
14 | | date, the increase, if any, shall begin to accrue on the first |
15 | | annuity payment date following receipt by the System of the |
16 | | contributions required under this subsection (p).
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17 | | (q) By paying the required contributions under this |
18 | | Section, plus an amount determined by the Board to be equal to |
19 | | the employer's normal cost of the benefit plus interest, an |
20 | | employee who was laid off but returned to any State employment |
21 | | may establish creditable service for the period of the layoff, |
22 | | provided that (1) the applicant applies for the creditable |
23 | | service under this subsection (q) within 6 months after July |
24 | | 27, 2010 (the effective date of Public Act 96-1320) , (2) the |
25 | | applicant does not receive credit for that period under any |
26 | | other provision of this Code, (3) at the time of the layoff, |
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1 | | the applicant is not in an initial probationary status |
2 | | consistent with the rules of the Department of Central |
3 | | Management Services, and (4) the total amount of creditable |
4 | | service established by the applicant under this subsection (q) |
5 | | does not exceed 3 years. For service established under this |
6 | | subsection (q), the required employee contribution shall be |
7 | | based on the rate of compensation earned by the employee on the |
8 | | date of returning to employment after the layoff and the |
9 | | contribution rate then in effect, and the required interest |
10 | | shall be calculated at the actuarially assumed rate from the |
11 | | date of returning to employment after the layoff to the date of |
12 | | payment.
Funding for any new benefit increase, as defined in |
13 | | Section 14-152.1 of this Act, that is created under this |
14 | | subsection (q) will be provided by the employee contributions |
15 | | required under this subsection (q). |
16 | | (r) A member who participated in the University of |
17 | | Illinois Government Public Service Internship Program (GPSI) |
18 | | may establish creditable service for up to 2 years
of that |
19 | | participation by making the contribution required under this |
20 | | Section, plus an amount determined by the Board to be equal to |
21 | | the employer's normal cost of the benefit plus interest.
The |
22 | | System shall determine a full-time salary equivalent for the |
23 | | purpose of
calculating the required contribution. Credit may |
24 | | not be established under
this subsection for any period for |
25 | | which service credit is established under
any other provision |
26 | | of this Code. |
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1 | | (s)
A member who worked as a nurse under a contractual |
2 | | agreement for the Department of Public Aid, or its successor |
3 | | agency, the Department of Human Services, in the Client |
4 | | Assessment Unit and was subsequently determined to be a State |
5 | | employee by the United States Internal Revenue Service and the |
6 | | Illinois Labor Relations Board may establish creditable |
7 | | service for those contractual services by making the |
8 | | contributions required under this Section. To establish credit |
9 | | under this subsection, the applicant must apply to the System |
10 | | by July 1, 2008. |
11 | | The Department of Human Services shall pay an employer |
12 | | contribution based upon an amount determined by the Board to |
13 | | be equal to the employer's normal cost of the benefit, plus |
14 | | interest. |
15 | | In compliance with Section 14-152.1 added by Public Act |
16 | | 94-4, the cost of the benefits provided by Public Act 95-583
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17 | | are offset by the required employee and employer |
18 | | contributions.
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19 | | (t) Any person who rendered contractual services on a |
20 | | full-time basis to the Illinois Institute of Natural Resources |
21 | | and the Illinois Department of Energy and Natural Resources |
22 | | may establish creditable service for up to 4 years of those |
23 | | contractual services by making the contributions required |
24 | | under this Section, plus an amount determined by the Board to |
25 | | be equal to the employer's normal cost of the benefit plus |
26 | | interest at the actuarially assumed rate from the first day of |
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1 | | the service for which credit is being established to the date |
2 | | of payment. To establish credit under this subsection (t), the |
3 | | applicant must apply to the System within 6 months after July |
4 | | 27, 2010 (the effective date of Public Act 96-1320). |
5 | | (u) By paying the required contributions under this |
6 | | Section, plus an amount determined by the Board to be equal to |
7 | | the employer's normal cost of the benefit, plus interest, a |
8 | | member may establish creditable service and earnings credit |
9 | | for periods of furlough beginning on or after July 1, 2008. To |
10 | | receive this credit, the participant must (i) apply in writing |
11 | | to the System before December 31, 2011 and (ii) not receive |
12 | | compensation for the furlough period. For service established |
13 | | under this subsection, the required employee contribution |
14 | | shall be based on the rate of compensation earned by the |
15 | | employee immediately following the date of the first furlough |
16 | | day in the time period specified in this subsection (u), and |
17 | | the required interest shall be calculated at the actuarially |
18 | | assumed rate from the date of the furlough to the date of |
19 | | payment. |
20 | | (v) Any member who rendered full-time contractual services |
21 | | to an Illinois Veterans Home operated by the Department of |
22 | | Veterans' Affairs may establish service credit for up
to 8 |
23 | | years of such services by making the contributions required |
24 | | under this
Section, plus an amount determined by the Board to |
25 | | be equal to the employer's normal cost of the benefit, plus |
26 | | interest at the actuarially assumed rate. To establish credit |
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1 | | under this subsection, the applicant must
apply to the System |
2 | | no later than 6 months after July 27, 2010 (the effective date |
3 | | of Public Act 96-1320). |
4 | | (Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09; |
5 | | 96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff. |
6 | | 7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333, |
7 | | 8-12-11.)
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8 | | (40 ILCS 5/14-152.1) |
9 | | Sec. 14-152.1. Application and expiration of new benefit |
10 | | increases. |
11 | | (a) As used in this Section, "new benefit increase" means |
12 | | an increase in the amount of any benefit provided under this |
13 | | Article, or an expansion of the conditions of eligibility for |
14 | | any benefit under this Article, that results from an amendment |
15 | | to this Code that takes effect after June 1, 2005 (the |
16 | | effective date of Public Act 94-4). "New benefit increase", |
17 | | however, does not include any benefit increase resulting from |
18 | | the changes made to Article 1 or this Article by Public Act |
19 | | 96-37, Public Act 100-23, Public Act 100-587, Public Act |
20 | | 100-611, Public Act 101-10, Public Act 101-610, Public Act |
21 | | 102-210, Public Act 102-856, Public Act 102-956, or this |
22 | | amendatory Act of the 103rd General Assembly or this |
23 | | amendatory Act of the 102nd General Assembly .
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24 | | (b) Notwithstanding any other provision of this Code or |
25 | | any subsequent amendment to this Code, every new benefit |
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1 | | increase is subject to this Section and shall be deemed to be |
2 | | granted only in conformance with and contingent upon |
3 | | compliance with the provisions of this Section.
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4 | | (c) The Public Act enacting a new benefit increase must |
5 | | identify and provide for payment to the System of additional |
6 | | funding at least sufficient to fund the resulting annual |
7 | | increase in cost to the System as it accrues. |
8 | | Every new benefit increase is contingent upon the General |
9 | | Assembly providing the additional funding required under this |
10 | | subsection. The Commission on Government Forecasting and |
11 | | Accountability shall analyze whether adequate additional |
12 | | funding has been provided for the new benefit increase and |
13 | | shall report its analysis to the Public Pension Division of |
14 | | the Department of Insurance. A new benefit increase created by |
15 | | a Public Act that does not include the additional funding |
16 | | required under this subsection is null and void. If the Public |
17 | | Pension Division determines that the additional funding |
18 | | provided for a new benefit increase under this subsection is |
19 | | or has become inadequate, it may so certify to the Governor and |
20 | | the State Comptroller and, in the absence of corrective action |
21 | | by the General Assembly, the new benefit increase shall expire |
22 | | at the end of the fiscal year in which the certification is |
23 | | made.
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24 | | (d) Every new benefit increase shall expire 5 years after |
25 | | its effective date or on such earlier date as may be specified |
26 | | in the language enacting the new benefit increase or provided |
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1 | | under subsection (c). This does not prevent the General |
2 | | Assembly from extending or re-creating a new benefit increase |
3 | | by law. |
4 | | (e) Except as otherwise provided in the language creating |
5 | | the new benefit increase, a new benefit increase that expires |
6 | | under this Section continues to apply to persons who applied |
7 | | and qualified for the affected benefit while the new benefit |
8 | | increase was in effect and to the affected beneficiaries and |
9 | | alternate payees of such persons, but does not apply to any |
10 | | other person, including, without limitation, a person who |
11 | | continues in service after the expiration date and did not |
12 | | apply and qualify for the affected benefit while the new |
13 | | benefit increase was in effect.
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14 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; |
15 | | 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. |
16 | | 1-1-23; 102-956, eff. 5-27-22 .)
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17 | | Section 99. Effective date. This Act takes effect upon |
18 | | becoming law.
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