103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2802

 

Introduced 1/17/2024, 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

    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 within 6 months after the effective date of the amendatory Act, (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.


LRB103 34838 RPS 64695 b

 

 

A BILL FOR

 

SB2802LRB103 34838 RPS 64695 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing 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.
8Contributions provided for in this Section shall cover the
9period of service granted. Except as otherwise provided in
10this Section, the contributions shall be based upon the
11employee's compensation and contribution rate in effect on the
12date he last became a member of the System; provided that for
13all employment prior to January 1, 1969 the contribution rate
14shall be that in effect for a noncovered employee on the date
15he last became a member of the System. Except as otherwise
16provided in this Section, contributions permitted under this
17Section shall include regular interest from the date an
18employee last became a member of the System to the date of
19payment.
20    These contributions must be paid in full before retirement
21either in a lump sum or in installment payments in accordance
22with such rules as may be adopted by the board.
23    (a) Any member may make contributions as required in this

 

 

SB2802- 2 -LRB103 34838 RPS 64695 b

1Section for any period of service, subsequent to the date of
2establishment, but prior to the date of membership.
3    (b) Any employee who had been previously excluded from
4membership because of age at entry and subsequently became
5eligible may elect to make contributions as required in this
6Section for the period of service during which he was
7ineligible.
8    (c) An employee of the Department of Insurance who, after
9January 1, 1944 but prior to becoming eligible for membership,
10received salary from funds of insurance companies in the
11process of rehabilitation, liquidation, conservation or
12dissolution, may elect to make contributions as required in
13this Section for such service.
14    (d) Any employee who rendered service in a State office to
15which he was elected, or rendered service in the elective
16office of Clerk of the Appellate Court prior to the date he
17became a member, may make contributions for such service as
18required in this Section. Any member who served by appointment
19of the Governor under the Civil Administrative Code of
20Illinois and did not participate in this System may make
21contributions as required in this Section for such service.
22    (e) Any person employed by the United States government or
23any instrumentality or agency thereof from January 1, 1942
24through November 15, 1946 as the result of a transfer from
25State service by executive order of the President of the
26United States shall be entitled to prior service credit

 

 

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1covering the period from January 1, 1942 through December 31,
21943 as provided for in this Article and to membership service
3credit for the period from January 1, 1944 through November
415, 1946 by making the contributions required in this Section.
5A person so employed on January 1, 1944 but whose employment
6began after January 1, 1942 may qualify for prior service and
7membership service credit under the same conditions.
8    (f) An employee of the Department of Labor of the State of
9Illinois who performed services for and under the supervision
10of that Department prior to January 1, 1944 but who was
11compensated for those services directly by federal funds and
12not by a warrant of the Auditor of Public Accounts paid by the
13State Treasurer may establish credit for such employment by
14making the contributions required in this Section. An employee
15of the Department of Agriculture of the State of Illinois, who
16performed services for and under the supervision of that
17Department prior to June 1, 1963, but was compensated for
18those services directly by federal funds and not paid by a
19warrant of the Auditor of Public Accounts paid by the State
20Treasurer, and who did not contribute to any other public
21employee retirement system for such service, may establish
22credit for such employment by making the contributions
23required in this Section.
24    (g) Any employee who executed a waiver of membership
25within 60 days prior to January 1, 1944 may, at any time while
26in the service of a department, file with the board a

 

 

SB2802- 4 -LRB103 34838 RPS 64695 b

1rescission of such waiver. Upon making the contributions
2required by this Section, the member shall be granted the
3creditable service that would have been received if the waiver
4had not been executed.
5    (h) Until May 1, 1990, an employee who was employed on a
6full-time basis by a regional planning commission for at least
75 continuous years may establish creditable service for such
8employment by making the contributions required under this
9Section, provided that any credits earned by the employee in
10the commission's retirement plan have been terminated.
11    (i) Any person who rendered full time contractual services
12to the General Assembly as a member of a legislative staff may
13establish service credit for up to 8 years of such services by
14making the contributions required under this Section, provided
15that application therefor is made not later than July 1, 1991.
16    (j) By paying the contributions otherwise required under
17this Section, plus an amount determined by the Board to be
18equal to the employer's normal cost of the benefit plus
19interest, but with all of the interest calculated from the
20date the employee last became a member of the System or
21November 19, 1991, whichever is later, to the date of payment,
22an employee may establish service credit for a period of up to
234 years spent in active military service for which he does not
24qualify for credit under Section 14-105, provided that (1) he
25was not dishonorably discharged from such military service,
26and (2) the amount of service credit established by a member

 

 

SB2802- 5 -LRB103 34838 RPS 64695 b

1under this subsection (j), when added to the amount of
2military service credit granted to the member under subsection
3(b) of Section 14-105, shall not exceed 5 years. The change in
4the manner of calculating interest under this subsection (j)
5made by this amendatory Act of the 92nd General Assembly
6applies to credit purchased by an employee on or after its
7effective date and does not entitle any person to a refund of
8contributions or interest already paid. In compliance with
9Section 14-152.1 of this Act concerning new benefit increases,
10any new benefit increase as a result of the changes to this
11subsection (j) made by Public Act 95-483 is funded through the
12employee contributions provided for in this subsection (j).
13Any new benefit increase as a result of the changes made to
14this subsection (j) by Public Act 95-483 is exempt from the
15provisions of subsection (d) of Section 14-152.1.
16    (k) An employee who was employed on a full-time basis by
17the Illinois State's Attorneys Association Statewide Appellate
18Assistance Service LEAA-ILEC grant project prior to the time
19that project became the State's Attorneys Appellate Service
20Commission, now the Office of the State's Attorneys Appellate
21Prosecutor, an agency of State government, may establish
22creditable service for not more than 60 months service for
23such employment by making contributions required under this
24Section.
25    (l) By paying the contributions otherwise required under
26this Section, plus an amount determined by the Board to be

 

 

SB2802- 6 -LRB103 34838 RPS 64695 b

1equal to the employer's normal cost of the benefit plus
2interest, a member may establish service credit for periods of
3less than one year spent on authorized leave of absence from
4service, provided that (1) the period of leave began on or
5after January 1, 1982 and (2) any credit established by the
6member for the period of leave in any other public employee
7retirement system has been terminated. A member may establish
8service credit under this subsection for more than one period
9of authorized leave, and in that case the total period of
10service credit established by the member under this subsection
11may exceed one year. In determining the contributions required
12for establishing service credit under this subsection, the
13interest shall be calculated from the beginning of the leave
14of absence to the date of payment.
15    (l-5) By paying the contributions otherwise required under
16this Section, plus an amount determined by the Board to be
17equal to the employer's normal cost of the benefit plus
18interest, a member may establish service credit for periods of
19up to 2 years spent on authorized leave of absence from
20service, provided that during that leave the member
21represented or was employed as an officer or employee of a
22statewide labor organization that represents members of this
23System. In determining the contributions required for
24establishing service credit under this subsection, the
25interest shall be calculated from the beginning of the leave
26of absence to the date of payment.

 

 

SB2802- 7 -LRB103 34838 RPS 64695 b

1    (m) Any person who rendered contractual services to a
2member of the General Assembly as a worker in the member's
3district office may establish creditable service for up to 3
4years of those contractual services by making the
5contributions required under this Section. The System shall
6determine a full-time salary equivalent for the purpose of
7calculating the required contribution. To establish credit
8under this subsection, the applicant must apply to the System
9by March 1, 1998.
10    (n) Any person who rendered contractual services to a
11member of the General Assembly as a worker providing
12constituent services to persons in the member's district may
13establish creditable service for up to 8 years of those
14contractual services by making the contributions required
15under this Section. The System shall determine a full-time
16salary equivalent for the purpose of calculating the required
17contribution. To establish credit under this subsection, the
18applicant must apply to the System by March 1, 1998.
19    (o) A member who participated in the Illinois Legislative
20Staff Internship Program may establish creditable service for
21up to one year of that participation by making the
22contribution required under this Section. The System shall
23determine a full-time salary equivalent for the purpose of
24calculating the required contribution. Credit may not be
25established under this subsection for any period for which
26service credit is established under any other provision of

 

 

SB2802- 8 -LRB103 34838 RPS 64695 b

1this Code.
2    (p) By paying the contributions otherwise required under
3this Section, plus an amount determined by the Board to be
4equal to the employer's normal cost of the benefit plus
5interest, a member may establish service credit for a period
6of up to 8 years during which he or she was employed by the
7Visually Handicapped Managers of Illinois in a vending program
8operated under a contractual agreement with the Department of
9Rehabilitation Services or its successor agency.
10    This subsection (p) applies without regard to whether the
11person was in service on or after the effective date of this
12amendatory Act of the 94th General Assembly. In the case of a
13person who is receiving a retirement annuity on that effective
14date, the increase, if any, shall begin to accrue on the first
15annuity payment date following receipt by the System of the
16contributions required under this subsection (p).
17    (q) By paying the required contributions under this
18Section, plus an amount determined by the Board to be equal to
19the employer's normal cost of the benefit plus interest, an
20employee who was laid off but returned to any State employment
21may establish creditable service for the period of the layoff,
22provided that (1) the applicant applies for the creditable
23service under this subsection (q) within 6 months after the
24effective date of this amendatory Act of the 103rd General
25Assembly July 27, 2010 (the effective date of Public Act
2696-1320), (2) the applicant does not receive credit for that

 

 

SB2802- 9 -LRB103 34838 RPS 64695 b

1period under any other provision of this Code, (3) at the time
2of the layoff, the applicant is not in an initial probationary
3status consistent with the rules of the Department of Central
4Management Services, and (4) the total amount of creditable
5service established by the applicant under this subsection (q)
6does not exceed 3 years. For service established under this
7subsection (q), the required employee contribution shall be
8based on the rate of compensation earned by the employee on the
9date of returning to employment after the layoff and the
10contribution rate then in effect, and the required interest
11shall be calculated at the actuarially assumed rate from the
12date of returning to employment after the layoff to the date of
13payment. Funding for any new benefit increase, as defined in
14Section 14-152.1 of this Act, that is created under this
15subsection (q) will be provided by the employee contributions
16required under this subsection (q).
17    (r) A member who participated in the University of
18Illinois Government Public Service Internship Program (GPSI)
19may establish creditable service for up to 2 years of that
20participation by making the contribution required under this
21Section, plus an amount determined by the Board to be equal to
22the employer's normal cost of the benefit plus interest. The
23System shall determine a full-time salary equivalent for the
24purpose of calculating the required contribution. Credit may
25not be established under this subsection for any period for
26which service credit is established under any other provision

 

 

SB2802- 10 -LRB103 34838 RPS 64695 b

1of this Code.
2    (s) A member who worked as a nurse under a contractual
3agreement for the Department of Public Aid, or its successor
4agency, the Department of Human Services, in the Client
5Assessment Unit and was subsequently determined to be a State
6employee by the United States Internal Revenue Service and the
7Illinois Labor Relations Board may establish creditable
8service for those contractual services by making the
9contributions required under this Section. To establish credit
10under this subsection, the applicant must apply to the System
11by July 1, 2008.
12    The Department of Human Services shall pay an employer
13contribution based upon an amount determined by the Board to
14be equal to the employer's normal cost of the benefit, plus
15interest.
16    In compliance with Section 14-152.1 added by Public Act
1794-4, the cost of the benefits provided by Public Act 95-583
18are offset by the required employee and employer
19contributions.
20    (t) Any person who rendered contractual services on a
21full-time basis to the Illinois Institute of Natural Resources
22and the Illinois Department of Energy and Natural Resources
23may establish creditable service for up to 4 years of those
24contractual services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit plus

 

 

SB2802- 11 -LRB103 34838 RPS 64695 b

1interest at the actuarially assumed rate from the first day of
2the service for which credit is being established to the date
3of payment. To establish credit under this subsection (t), the
4applicant must apply to the System within 6 months after July
527, 2010 (the effective date of Public Act 96-1320).
6    (u) By paying the required contributions under this
7Section, plus an amount determined by the Board to be equal to
8the employer's normal cost of the benefit, plus interest, a
9member may establish creditable service and earnings credit
10for periods of furlough beginning on or after July 1, 2008. To
11receive this credit, the participant must (i) apply in writing
12to the System before December 31, 2011 and (ii) not receive
13compensation for the furlough period. For service established
14under this subsection, the required employee contribution
15shall be based on the rate of compensation earned by the
16employee immediately following the date of the first furlough
17day in the time period specified in this subsection (u), and
18the required interest shall be calculated at the actuarially
19assumed rate from the date of the furlough to the date of
20payment.
21    (v) Any member who rendered full-time contractual services
22to an Illinois Veterans Home operated by the Department of
23Veterans' Affairs may establish service credit for up to 8
24years of such services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit, plus

 

 

SB2802- 12 -LRB103 34838 RPS 64695 b

1interest at the actuarially assumed rate. To establish credit
2under this subsection, the applicant must apply to the System
3no later than 6 months after July 27, 2010 (the effective date
4of Public Act 96-1320).
5(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
696-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
77-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
88-12-11.)
 
9    (40 ILCS 5/14-152.1)
10    Sec. 14-152.1. Application and expiration of new benefit
11increases.
12    (a) As used in this Section, "new benefit increase" means
13an increase in the amount of any benefit provided under this
14Article, or an expansion of the conditions of eligibility for
15any benefit under this Article, that results from an amendment
16to this Code that takes effect after June 1, 2005 (the
17effective date of Public Act 94-4). "New benefit increase",
18however, does not include any benefit increase resulting from
19the changes made to Article 1 or this Article by Public Act
2096-37, Public Act 100-23, Public Act 100-587, Public Act
21100-611, Public Act 101-10, Public Act 101-610, Public Act
22102-210, Public Act 102-856, Public Act 102-956, or this
23amendatory Act of the 103rd General Assembly or this
24amendatory Act of the 102nd General Assembly.
25    (b) Notwithstanding any other provision of this Code or

 

 

SB2802- 13 -LRB103 34838 RPS 64695 b

1any subsequent amendment to this Code, every new benefit
2increase is subject to this Section and shall be deemed to be
3granted only in conformance with and contingent upon
4compliance with the provisions of this Section.
5    (c) The Public Act enacting a new benefit increase must
6identify and provide for payment to the System of additional
7funding at least sufficient to fund the resulting annual
8increase in cost to the System as it accrues.
9    Every new benefit increase is contingent upon the General
10Assembly providing the additional funding required under this
11subsection. The Commission on Government Forecasting and
12Accountability shall analyze whether adequate additional
13funding has been provided for the new benefit increase and
14shall report its analysis to the Public Pension Division of
15the Department of Insurance. A new benefit increase created by
16a Public Act that does not include the additional funding
17required under this subsection is null and void. If the Public
18Pension Division determines that the additional funding
19provided for a new benefit increase under this subsection is
20or has become inadequate, it may so certify to the Governor and
21the State Comptroller and, in the absence of corrective action
22by the General Assembly, the new benefit increase shall expire
23at the end of the fiscal year in which the certification is
24made.
25    (d) Every new benefit increase shall expire 5 years after
26its effective date or on such earlier date as may be specified

 

 

SB2802- 14 -LRB103 34838 RPS 64695 b

1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5    (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including, without limitation, a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
16101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
171-1-23; 102-956, eff. 5-27-22.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.