Sen. John J. Cullerton
Filed: 5/29/2012
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1 | AMENDMENT TO HOUSE BILL 3076
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2 | AMENDMENT NO. ______. Amend House Bill 3076, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Public Labor Relations Act is | ||||||
6 | amended by changing Sections 4 and 15 as follows: | ||||||
7 | (5 ILCS 315/4) (from Ch. 48, par. 1604)
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8 | Sec. 4. Management Rights. Employers shall not be required | ||||||
9 | to bargain
over matters of inherent managerial policy, which | ||||||
10 | shall include such areas
of discretion or policy as the | ||||||
11 | functions of the employer, standards of
services,
its overall | ||||||
12 | budget, the organizational structure and selection of new
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13 | employees, examination techniques
and direction of employees. | ||||||
14 | Employers, however, shall be required to bargain
collectively | ||||||
15 | with regard to
policy matters directly affecting wages (but | ||||||
16 | subject to any applicable restrictions in Section 15-134.6 of |
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1 | the Illinois Pension Code) , hours and terms and conditions of | ||||||
2 | employment
as well as the impact thereon upon request by | ||||||
3 | employee representatives , but excluding the changes, the | ||||||
4 | impact of changes, and the implementation of the changes set | ||||||
5 | forth in this amendatory Act of the 97th General Assembly .
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6 | To preserve the rights of employers and exclusive | ||||||
7 | representatives which
have established collective bargaining | ||||||
8 | relationships or negotiated collective
bargaining agreements | ||||||
9 | prior to the effective date of this Act, employers
shall be | ||||||
10 | required to bargain collectively with regard to any matter | ||||||
11 | concerning
wages (but subject to any applicable restrictions in | ||||||
12 | Section 15-134.6 of the Illinois Pension Code) , hours or | ||||||
13 | conditions of employment about which they have bargained
for | ||||||
14 | and agreed to in a collective bargaining agreement
prior to the | ||||||
15 | effective date of this Act , but excluding the changes, the | ||||||
16 | impact of changes, and the implementation of the changes set | ||||||
17 | forth in this amendatory Act of the 97th General Assembly .
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18 | The chief judge of the judicial circuit that employs a | ||||||
19 | public employee who
is
a court reporter, as defined in the | ||||||
20 | Court Reporters Act, has the authority to
hire, appoint, | ||||||
21 | promote, evaluate, discipline, and discharge court reporters
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22 | within that judicial circuit.
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23 | Nothing in this amendatory Act of the 94th General Assembly | ||||||
24 | shall
be construed to intrude upon the judicial functions of | ||||||
25 | any court. This
amendatory Act of the 94th General Assembly | ||||||
26 | applies only to nonjudicial
administrative matters relating to |
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1 | the collective bargaining rights of court
reporters.
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2 | (Source: P.A. 94-98, eff. 7-1-05.)
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3 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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4 | Sec. 15. Act Takes Precedence. | ||||||
5 | (a) In case of any conflict between the
provisions of this | ||||||
6 | Act and any other law (other than Section 5 of the State | ||||||
7 | Employees Group Insurance Act of 1971 and other than the | ||||||
8 | changes made to the Illinois Pension Code by Public Act 96-889 | ||||||
9 | and the changes, impact of changes, and the implementation of | ||||||
10 | the changes made to the Illinois Pension Code and the State | ||||||
11 | Employees Group Insurance Act of 1971 by this amendatory Act of | ||||||
12 | the 97th 96th General Assembly), executive order or | ||||||
13 | administrative
regulation relating to wages, hours and | ||||||
14 | conditions of employment and employment
relations, the | ||||||
15 | provisions of this Act or any collective bargaining agreement
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16 | negotiated thereunder shall prevail and control.
Nothing in | ||||||
17 | this Act shall be construed to replace or diminish the
rights | ||||||
18 | of employees established by Sections 28 and 28a of the | ||||||
19 | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | ||||||
20 | of the Regional Transportation
Authority Act. The provisions of | ||||||
21 | this Act are subject to the changes made by this amendatory Act | ||||||
22 | of the 97th General Assembly, including Section 15-134.6 of the | ||||||
23 | Illinois Pension Code, and Section 5 of the State Employees | ||||||
24 | Group Insurance Act of 1971. Nothing in this Act shall be | ||||||
25 | construed to replace the necessity of complaints against a |
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1 | sworn peace officer, as defined in Section 2(a) of the Uniform | ||||||
2 | Peace Officer Disciplinary Act, from having a complaint | ||||||
3 | supported by a sworn affidavit.
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4 | (b) Except as provided in subsection (a) above, any | ||||||
5 | collective bargaining
contract between a public employer and a | ||||||
6 | labor organization executed pursuant
to this Act shall | ||||||
7 | supersede any contrary statutes, charters, ordinances, rules
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8 | or regulations relating to wages, hours and conditions of | ||||||
9 | employment and
employment relations adopted by the public | ||||||
10 | employer or its agents. Any collective
bargaining agreement | ||||||
11 | entered into prior to the effective date of this Act
shall | ||||||
12 | remain in full force during its duration.
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13 | (c) It is the public policy of this State, pursuant to | ||||||
14 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
15 | Illinois Constitution, that the
provisions of this Act are the | ||||||
16 | exclusive exercise by the State of powers
and functions which | ||||||
17 | might otherwise be exercised by home rule units. Such
powers | ||||||
18 | and functions may not be exercised concurrently, either | ||||||
19 | directly
or indirectly, by any unit of local government, | ||||||
20 | including any home rule
unit, except as otherwise authorized by | ||||||
21 | this Act.
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22 | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
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23 | Section 10. The State Employees Group Insurance Act of 1971 | ||||||
24 | is amended by changing Sections 6.9 and 6.10 and by adding | ||||||
25 | 6.10A and 6.16 as follows:
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1 | (5 ILCS 375/6.9)
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2 | Sec. 6.9.
Health benefits for community college benefit | ||||||
3 | recipients and
community college dependent beneficiaries.
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4 | (a) Purpose. It is the purpose of this amendatory Act of | ||||||
5 | 1997 to establish
a uniform program of health benefits for | ||||||
6 | community college benefit recipients
and their dependent | ||||||
7 | beneficiaries under the administration of the Department of
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8 | Central Management Services.
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9 | (b) Creation of program. Beginning July 1, 1999, the | ||||||
10 | Department of
Central Management Services shall be responsible | ||||||
11 | for administering a program of
health benefits for community | ||||||
12 | college benefit recipients and community college
dependent | ||||||
13 | beneficiaries under this Section. The State Universities | ||||||
14 | Retirement
System and the boards of trustees of the various | ||||||
15 | community college districts
shall cooperate with the | ||||||
16 | Department in this endeavor.
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17 | (c) Eligibility. All community college benefit recipients | ||||||
18 | and community
college dependent beneficiaries shall be | ||||||
19 | eligible to participate in the program
established under this | ||||||
20 | Section, without any interruption or delay in coverage
or | ||||||
21 | limitation as to pre-existing medical conditions. Eligibility | ||||||
22 | to
participate shall be determined by the State Universities | ||||||
23 | Retirement System.
Eligibility information shall be | ||||||
24 | communicated to the Department of Central
Management Services | ||||||
25 | in a format acceptable to the Department.
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1 | (d) Coverage. The health benefit coverage provided under | ||||||
2 | this Section
shall be a program of health, dental, and vision | ||||||
3 | benefits.
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4 | The program of health benefits under this Section may | ||||||
5 | include any or all of
the benefit limitations, including but | ||||||
6 | not limited to a reduction in benefits
based on eligibility for | ||||||
7 | federal medicare benefits, that are provided under
subsection | ||||||
8 | (a) of Section 6 of this Act for other health benefit programs | ||||||
9 | under
this Act.
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10 | (e) Insurance rates and premiums. The Director shall | ||||||
11 | determine the
insurance rates and premiums for community | ||||||
12 | college benefit recipients and
community college dependent | ||||||
13 | beneficiaries. Rates and premiums may be based
in part on age | ||||||
14 | and eligibility for federal Medicare coverage.
The Director | ||||||
15 | shall also determine premiums that will allow for the
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16 | establishment of an actuarially sound reserve for this program.
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17 | The cost of health benefits under the program shall be paid | ||||||
18 | as follows:
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19 | (1) For a community college benefit recipient, costs | ||||||
20 | shall be an amount equal to the difference between the | ||||||
21 | projected costs of health benefits under the program and | ||||||
22 | projected contributions from community college districts, | ||||||
23 | active contributors, and other income of the program. Other | ||||||
24 | income of the program shall exclude contributions made by | ||||||
25 | the State to retire unpaid claims of the program up to 75% | ||||||
26 | of the total
insurance rate shall be paid from the |
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1 | Community College Health Insurance
Security Fund .
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2 | (2) The balance of the rate of insurance, including the | ||||||
3 | entire premium
for any coverage for community college | ||||||
4 | dependent beneficiaries that has been
elected, shall be | ||||||
5 | paid by deductions authorized by the community college
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6 | benefit recipient to be withheld from his or her monthly | ||||||
7 | annuity or benefit
payment from the State Universities | ||||||
8 | Retirement System; except that (i) if the
balance of the | ||||||
9 | cost of coverage exceeds the amount of the monthly annuity | ||||||
10 | or
benefit payment, the difference shall be paid directly | ||||||
11 | to the State
Universities Retirement System by the | ||||||
12 | community college benefit recipient, and
(ii) all or part | ||||||
13 | of the balance of the cost of coverage may, at the option | ||||||
14 | of
the board of trustees of the community college district, | ||||||
15 | be paid to
the State Universities Retirement System by the | ||||||
16 | board of the community college
district from which the | ||||||
17 | community college benefit recipient retired. The State
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18 | Universities Retirement System shall promptly deposit all | ||||||
19 | moneys withheld by or
paid to it under this subdivision | ||||||
20 | (e)(2) into the Community College Health
Insurance | ||||||
21 | Security Fund. These moneys shall not be considered assets | ||||||
22 | of the
State Universities Retirement System.
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23 | (f) Financing. All revenues arising from the | ||||||
24 | administration of the health
benefit program established under | ||||||
25 | this Section shall be deposited into the
Community College | ||||||
26 | Health Insurance Security Fund, which is hereby created as a
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1 | nonappropriated trust fund to be held outside the State | ||||||
2 | Treasury, with the
State Treasurer as custodian. Any interest | ||||||
3 | earned on moneys in the Community
College Health Insurance | ||||||
4 | Security Fund shall be deposited into the Fund.
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5 | Moneys in the Community College Health Insurance Security | ||||||
6 | Fund shall be used
only to pay the costs of the health benefit | ||||||
7 | program established under this
Section, including associated | ||||||
8 | administrative costs and the establishment of a
program | ||||||
9 | reserve. Beginning January 1, 1999,
the Department of Central | ||||||
10 | Management Services may make expenditures from the
Community | ||||||
11 | College Health Insurance Security Fund for those costs.
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12 | (g) Contract for benefits. The Director shall by contract, | ||||||
13 | self-insurance,
or otherwise make available the program of | ||||||
14 | health benefits for community
college benefit recipients and | ||||||
15 | their community college dependent beneficiaries
that is | ||||||
16 | provided for in this Section. The contract or other arrangement | ||||||
17 | for
the provision of these health benefits shall be on terms | ||||||
18 | deemed by the Director
to be in the best interest of the State | ||||||
19 | of Illinois and the community college
benefit recipients based | ||||||
20 | on, but not limited to, such criteria as
administrative cost, | ||||||
21 | service capabilities of the carrier or other contractor,
and | ||||||
22 | the costs of the benefits.
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23 | (h) Continuation of program. It is the intention of the | ||||||
24 | General Assembly
that the program of health benefits provided | ||||||
25 | under this Section be maintained
on an ongoing, affordable | ||||||
26 | basis. The program of health benefits provided under
this |
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1 | Section may be amended by the State and is not intended to be a | ||||||
2 | pension or
retirement benefit subject to protection under | ||||||
3 | Article XIII, Section 5 of the
Illinois Constitution.
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4 | (i) Other health benefit plans. A health benefit plan | ||||||
5 | provided by a
community college district (other than a | ||||||
6 | community college district subject to
Article VII of the Public | ||||||
7 | Community College Act) under the terms of a
collective | ||||||
8 | bargaining agreement in effect on or prior to the effective | ||||||
9 | date of
this amendatory Act of 1997 shall continue in force | ||||||
10 | according to the terms of
that agreement, unless otherwise | ||||||
11 | mutually agreed by the parties to that
agreement and the | ||||||
12 | affected retiree.
A community college benefit recipient or | ||||||
13 | community college dependent
beneficiary whose coverage under | ||||||
14 | such a plan expires shall be eligible to begin
participating in | ||||||
15 | the program established under this Section without any
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16 | interruption or delay in coverage or limitation as to | ||||||
17 | pre-existing medical
conditions.
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18 | This Act does not prohibit any community college district | ||||||
19 | from offering
additional health benefits for its retirees or | ||||||
20 | their dependents or survivors.
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21 | (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
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22 | (5 ILCS 375/6.10)
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23 | Sec. 6.10. Contributions to the Community College Health | ||||||
24 | Insurance
Security Fund.
| ||||||
25 | (a) Beginning January 1, 1999, every active contributor of |
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1 | the State
Universities Retirement System (established under | ||||||
2 | Article 15 of the Illinois
Pension Code) who (1) is a full-time | ||||||
3 | employee of a community college district
(other than a | ||||||
4 | community college district subject to Article VII of the Public
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5 | Community College Act)
or an association of community college | ||||||
6 | boards and (2) is not an employee as
defined in Section 3 of | ||||||
7 | this Act shall make contributions toward the cost of
community | ||||||
8 | college annuitant and survivor health benefits at the rate of | ||||||
9 | 0.50%
of salary. Beginning July 1, 2012 and until July 1, 2013, | ||||||
10 | the contribution rate under this subsection (a) shall be 1.25% | ||||||
11 | of salary. Beginning July 1, 2013, the contribution rate under | ||||||
12 | this subsection (a) shall be a percentage of salary determined | ||||||
13 | by the Department of Central Management Services, or its | ||||||
14 | successor, by rule, which in each fiscal year shall not exceed | ||||||
15 | 108% of the percentage of salary actually required to be | ||||||
16 | contributed in the previous fiscal year. However, the required | ||||||
17 | contribution rate determined by the Department or its successor | ||||||
18 | under this subsection (a) shall equal the required contribution | ||||||
19 | rate determined by the Department or its successor under | ||||||
20 | subsection (b) of this Section.
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21 | These contributions shall be deducted by the employer and | ||||||
22 | paid to the State
Universities Retirement System as service | ||||||
23 | agent for the Department of Central
Management Services. The | ||||||
24 | System may use the same processes for collecting the
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25 | contributions required by this subsection that it uses to | ||||||
26 | collect the
contributions received from those employees under |
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1 | Section 15-157 of the
Illinois Pension Code. An employer may | ||||||
2 | agree to pick up or pay the
contributions required under this | ||||||
3 | subsection on behalf of the employee;
such contributions shall | ||||||
4 | be deemed to have been paid by the employee.
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5 | The State Universities Retirement System shall promptly | ||||||
6 | deposit all moneys
collected under this subsection (a) into the | ||||||
7 | Community College Health Insurance
Security Fund created in | ||||||
8 | Section 6.9 of this Act. The moneys collected under
this | ||||||
9 | Section shall be used only for the purposes authorized in | ||||||
10 | Section 6.9 of
this Act and shall not be considered to be | ||||||
11 | assets of the State Universities
Retirement System. | ||||||
12 | Contributions made under this Section are not transferable
to | ||||||
13 | other pension funds or retirement systems and are not | ||||||
14 | refundable upon
termination of service.
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15 | (b) Beginning January 1, 1999, every community college | ||||||
16 | district
(other than a community college district subject to | ||||||
17 | Article VII of the Public
Community College Act) or association
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18 | of community college boards that is an employer under the State | ||||||
19 | Universities
Retirement System shall contribute toward the | ||||||
20 | cost of the community college
health benefits provided under | ||||||
21 | Section 6.9 of this Act an amount equal to 0.50%
of the salary | ||||||
22 | paid to its full-time employees who participate in the State
| ||||||
23 | Universities Retirement System and are not members as defined | ||||||
24 | in Section 3 of
this Act. Beginning July 1, 2012 and until July | ||||||
25 | 1, 2013, the contribution rate under this subsection (b) shall | ||||||
26 | be 1.25% of salary. Beginning July 1, 2013, the contribution |
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| |||||||
1 | rate under this subsection (b) shall be a percentage of salary | ||||||
2 | determined by the Department of Central Management Services, or | ||||||
3 | its successor, by rule, which in each fiscal year shall not | ||||||
4 | exceed 108% of the percentage of salary actually required to be | ||||||
5 | contributed in the previous fiscal year. However, the required | ||||||
6 | contribution rate determined by the Department or its successor | ||||||
7 | under this subsection (b) shall equal the required contribution | ||||||
8 | rate determined by the Department or its successor under | ||||||
9 | subsection (a) of this Section.
| ||||||
10 | These contributions shall be paid by the employer to the | ||||||
11 | State Universities
Retirement System as service agent for the | ||||||
12 | Department of Central Management
Services. The System may use | ||||||
13 | the same processes for collecting the
contributions required by | ||||||
14 | this subsection that it uses to collect the
contributions | ||||||
15 | received from those employers under Section 15-155 of the
| ||||||
16 | Illinois Pension Code.
| ||||||
17 | The State Universities Retirement System shall promptly | ||||||
18 | deposit all moneys
collected under this subsection (b) into the | ||||||
19 | Community College Health Insurance
Security Fund created in | ||||||
20 | Section 6.9 of this Act. The moneys collected under
this | ||||||
21 | Section shall be used only for the purposes authorized in | ||||||
22 | Section 6.9 of
this Act and shall not be considered to be | ||||||
23 | assets of the State Universities
Retirement System. | ||||||
24 | Contributions made under this Section are not transferable
to | ||||||
25 | other pension funds or retirement systems and are not | ||||||
26 | refundable upon
termination of service.
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1 | The Department of Healthcare and Family Services, or any | ||||||
2 | successor agency designated to procure healthcare contracts | ||||||
3 | pursuant to this Act, is authorized to establish funds, | ||||||
4 | separate accounts provided by any bank or banks as defined by | ||||||
5 | the Illinois Banking Act, or separate accounts provided by any | ||||||
6 | savings and loan association or associations as defined by the | ||||||
7 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
8 | Director, outside the State treasury, for the purpose of | ||||||
9 | receiving the transfer of moneys from the Community College | ||||||
10 | Health Insurance Security Fund. The Department may promulgate | ||||||
11 | rules further defining the methodology for the transfers. Any | ||||||
12 | interest earned by moneys in the funds or accounts shall inure | ||||||
13 | to the Community College Health Insurance Security Fund. The | ||||||
14 | transferred moneys, and interest accrued thereon, shall be used | ||||||
15 | exclusively for transfers to administrative service | ||||||
16 | organizations or their financial institutions for payments of | ||||||
17 | claims to claimants and providers under the self-insurance | ||||||
18 | health plan. The transferred moneys, and interest accrued | ||||||
19 | thereon, shall not be used for any other purpose including, but | ||||||
20 | not limited to, reimbursement of administration fees due the | ||||||
21 | administrative service organization pursuant to its contract | ||||||
22 | or contracts with the Department.
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23 | (c) On or before November 15 of each year but not after | ||||||
24 | November 15, 2011 , the Board of Trustees of the
State | ||||||
25 | Universities Retirement System shall certify to the Governor, | ||||||
26 | the
Director of Central Management Services, and the State
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| |||||||
1 | Comptroller its estimate of the total amount of contributions | ||||||
2 | to be paid under
subsection (a) of this Section for the next | ||||||
3 | fiscal year. Beginning in fiscal year 2008, the amount | ||||||
4 | certified shall be decreased or increased each year by the | ||||||
5 | amount that the actual active employee contributions either | ||||||
6 | fell short of or exceeded the estimate used by the Board in | ||||||
7 | making the certification for the previous fiscal year. The | ||||||
8 | State Universities Retirement System shall calculate the | ||||||
9 | amount of actual active employee contributions in fiscal years | ||||||
10 | 1999 through 2005. Based upon this calculation, the fiscal year | ||||||
11 | 2008 certification shall include an amount equal to the | ||||||
12 | cumulative amount that the actual active employee | ||||||
13 | contributions either fell short of or exceeded the estimate | ||||||
14 | used by the Board in making the certification for those fiscal | ||||||
15 | years. The certification
shall include a detailed explanation | ||||||
16 | of the methods and information that the
Board relied upon in | ||||||
17 | preparing its estimate. As soon as possible after the
effective | ||||||
18 | date of this Section, the Board shall submit its estimate for | ||||||
19 | fiscal
year 1999.
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20 | (d) Beginning in fiscal year 1999, on the first day of each | ||||||
21 | month, or as
soon thereafter as may be practical, the State | ||||||
22 | Treasurer and the State
Comptroller shall transfer from the | ||||||
23 | General Revenue Fund to the Community
College Health Insurance | ||||||
24 | Security Fund 1/12 of the annual amount appropriated
for that | ||||||
25 | fiscal year to the State Comptroller for deposit into the | ||||||
26 | Community
College Health Insurance Security Fund under Section |
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| |||||||
1 | 1.4 of the State Pension
Funds Continuing Appropriation Act.
| ||||||
2 | (e) Except where otherwise specified in this Section, the | ||||||
3 | definitions
that apply to Article 15 of the Illinois Pension | ||||||
4 | Code apply to this Section.
| ||||||
5 | (Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
| ||||||
6 | (5 ILCS 375/6.10A new) | ||||||
7 | Sec. 6.10A. City colleges; optional participation in | ||||||
8 | program of health benefits. Notwithstanding any other | ||||||
9 | provision of this Act, the Department of Central Management | ||||||
10 | Services shall adopt rules authorizing optional participation | ||||||
11 | in the program of health benefits for community college benefit | ||||||
12 | recipients and community college dependent beneficiaries by | ||||||
13 | any person who is otherwise ineligible to participate in that | ||||||
14 | program solely as a result of that or another person's | ||||||
15 | employment with a community college district subject to Article | ||||||
16 | VII of the Public Community College Act. | ||||||
17 | (5 ILCS 375/6.16 new) | ||||||
18 | Sec. 6.16. Health benefit election for Tier I employees and | ||||||
19 | Tier I retirees. | ||||||
20 | (a) For purposes of this Section: | ||||||
21 | "Eligible Tier I employee" means an individual who makes or | ||||||
22 | is deemed to have made an election under paragraph (1) of | ||||||
23 | subsection (a) of Sections 2-110.3 and 15-134.6 of the Illinois | ||||||
24 | Pension Code. |
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1 | "Eligible Tier I retiree" means an individual who makes or | ||||||
2 | is deemed to have made an election under paragraph (1) of | ||||||
3 | subsection (a-5) of Sections 2-110.3 and 15-134.6 of the | ||||||
4 | Illinois Pension Code. | ||||||
5 | "Program of health benefits" means (i) a health plan, as | ||||||
6 | defined in subsection (o) of Section 3 of this Act, that is | ||||||
7 | designed and contracted for by the Director under this Act or | ||||||
8 | any successor Act or (ii) if administration of that health plan | ||||||
9 | is transferred to a trust established by the State or an | ||||||
10 | independent Board in order to provide health benefits to a | ||||||
11 | class of a persons that includes eligible Tier I retirees, then | ||||||
12 | the plan of health benefits provided through that trust. | ||||||
13 | For persons who receive healthcare benefits under a | ||||||
14 | collective bargaining agreement with a community college | ||||||
15 | district subject to Article VII of the Public Community College | ||||||
16 | Act, the term "program of health benefits" also includes any | ||||||
17 | health benefit arrangement provided under such a collective | ||||||
18 | bargaining agreement, except that if such an agreement expires | ||||||
19 | and if those persons are otherwise eligible to participate in a | ||||||
20 | program of health benefits pursuant to item (i) or (ii), then | ||||||
21 | "program of health benefits" does not include the health | ||||||
22 | benefit arrangements provided under such a collective | ||||||
23 | bargaining agreement. | ||||||
24 | For persons who are eligible to receive benefits under a | ||||||
25 | health plan made available by a community college district | ||||||
26 | subject to Article VII of the Public Community College Act and |
| |||||||
| |||||||
1 | who do not receive those benefits pursuant to a collective | ||||||
2 | bargaining agreement, "program of health benefits" also | ||||||
3 | includes the health plan made available to such persons by the | ||||||
4 | community college district, except that if those persons | ||||||
5 | otherwise become eligible to participate in a program of health | ||||||
6 | benefits pursuant to item (i) or (ii), then "program of health | ||||||
7 | benefits" does not include the health plan made available to | ||||||
8 | such persons by the community college district. | ||||||
9 | (b) As adequate and legal consideration for making the | ||||||
10 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
11 | Sections 2-110.3 and 15-134.6 of the Illinois Pension Code, | ||||||
12 | each eligible Tier I employee and each eligible Tier I retiree | ||||||
13 | shall receive a vested and enforceable contractual right to | ||||||
14 | participate in a program of health benefits while he or she | ||||||
15 | qualifies as an annuitant or retired employee, or as a | ||||||
16 | community college benefit recipient receiving a retirement | ||||||
17 | annuity. That right also extends to such a person's dependents, | ||||||
18 | survivors, and community college dependent beneficiaries who | ||||||
19 | are eligible under the applicable program of health benefits. | ||||||
20 | (c) Notwithstanding subsection (b), eligible Tier I | ||||||
21 | employees and eligible Tier I retirees may be required to make | ||||||
22 | contributions toward the cost of coverage under a program of | ||||||
23 | health benefits. | ||||||
24 | (d) The vested and enforceable contractual right to a | ||||||
25 | program of health benefits is not offered as, and shall not be | ||||||
26 | considered, a pension benefit under Article XIII, Section 5 of |
| |||||||
| |||||||
1 | the Illinois Constitution, the Illinois Pension Code, or any | ||||||
2 | subsequent or successor enactment providing pension benefits. | ||||||
3 | (e) Notwithstanding any other provision of this Act, a Tier | ||||||
4 | I employee or Tier I retiree who has made an election under | ||||||
5 | paragraph (2) of subsection (a) or (a-5) of Sections 2-110.3 | ||||||
6 | and 15-134.6 of the Illinois Pension Code shall not be entitled | ||||||
7 | to participate in the program of health benefits as an | ||||||
8 | annuitant or retired employee, or community college benefit | ||||||
9 | recipient receiving a retirement annuity, regardless of any | ||||||
10 | contrary election pursuant to any of those Sections under any | ||||||
11 | other retirement system. | ||||||
12 | Notwithstanding any other provision of this Act, a Tier I | ||||||
13 | employee who is not entitled to participate in the program of | ||||||
14 | health benefits as an annuitant or retired employee, or as a | ||||||
15 | community college benefit recipient receiving a retirement | ||||||
16 | annuity, due to an election under paragraph (2) of subsection | ||||||
17 | (a) or (a-5) of Sections 2-110.3 and 15-134.6 of the Illinois | ||||||
18 | Pension Code shall not be required to make contributions toward | ||||||
19 | the program of health benefits while he or she is an employee | ||||||
20 | or active contributor. However, an active employee may be | ||||||
21 | required to make contributions toward health benefits he or she | ||||||
22 | receives during active employment. | ||||||
23 | (f) The Department shall coordinate with each retirement | ||||||
24 | system administering an election in accordance with this | ||||||
25 | amendatory Act of the 97th General Assembly to provide | ||||||
26 | information concerning the impact of the election of health |
| |||||||
| |||||||
1 | benefits. Each System shall include information prepared by the | ||||||
2 | Department in the required election packet. The Department | ||||||
3 | shall make information available to Tier I employees and Tier I | ||||||
4 | retirees through video materials, group presentations, | ||||||
5 | consultation by telephone or electronic means, or any | ||||||
6 | combination of these methods. | ||||||
7 | Section 15. The Governor's Office of Management and Budget | ||||||
8 | Act is amended by changing Sections 7 and 8 as follows:
| ||||||
9 | (20 ILCS 3005/7) (from Ch. 127, par. 417)
| ||||||
10 | Sec. 7.
All statements and estimates of expenditures | ||||||
11 | submitted to the
Office in connection with the preparation of a | ||||||
12 | State budget, and any other
estimates of expenditures, | ||||||
13 | supporting requests for appropriations, shall be
formulated | ||||||
14 | according to the various functions and activities for which the
| ||||||
15 | respective department, office or institution of the State | ||||||
16 | government
(including the elective officers in the executive | ||||||
17 | department and including
the University of Illinois and the | ||||||
18 | judicial department) is responsible. All
such statements and | ||||||
19 | estimates of expenditures relating to a particular
function or | ||||||
20 | activity shall be further formulated or subject to analysis in
| ||||||
21 | accordance with the following classification of objects:
| ||||||
22 | (1) Personal services
| ||||||
23 | (2) State contribution for employee group insurance
| ||||||
24 | (3) Contractual services
|
| |||||||
| |||||||
1 | (4) Travel
| ||||||
2 | (5) Commodities
| ||||||
3 | (6) Equipment
| ||||||
4 | (7) Permanent improvements
| ||||||
5 | (8) Land
| ||||||
6 | (9) Electronic Data Processing
| ||||||
7 | (10) Telecommunication services
| ||||||
8 | (11) Operation of Automotive Equipment
| ||||||
9 | (12) Contingencies
| ||||||
10 | (13) Reserve
| ||||||
11 | (14) Interest
| ||||||
12 | (15) Awards and Grants
| ||||||
13 | (16) Debt Retirement
| ||||||
14 | (17) Non-cost Charges .
| ||||||
15 | (18) State retirement contribution for annual normal cost | ||||||
16 | (19) State retirement contribution for unfunded accrued | ||||||
17 | liability. | ||||||
18 | (Source: P.A. 93-25, eff. 6-20-03 .)
| ||||||
19 | (20 ILCS 3005/8) (from Ch. 127, par. 418)
| ||||||
20 | Sec. 8.
When used in connection with a State budget or | ||||||
21 | expenditure or
estimate, items (1) through (16) in the | ||||||
22 | classification of objects stated in
Section 7 shall have the | ||||||
23 | meanings ascribed to those items in Sections 14
through 24.7, | ||||||
24 | respectively, of the State Finance Act. "An Act in relation to | ||||||
25 | State finance",
approved June 10, 1919, as amended.
|
| |||||||
| |||||||
1 | When used in connection with a State budget or expenditure | ||||||
2 | or
estimate, items (18) and (19) in the classification of | ||||||
3 | objects stated in
Section 7 shall have the meanings ascribed to | ||||||
4 | those items in Sections 24.12 and 24.13, respectively, of the | ||||||
5 | State Finance Act. | ||||||
6 | (Source: P.A. 82-325.)
| ||||||
7 | Section 20. The Illinois State Auditing Act is amended by | ||||||
8 | adding Section 2-8.1 as follows: | ||||||
9 | (30 ILCS 5/2-8.1 new) | ||||||
10 | Sec. 2-8.1. Actuarial Responsibilities. | ||||||
11 | (a) The Auditor General shall contract with or hire an | ||||||
12 | actuary to serve as the State Actuary. The State Actuary shall | ||||||
13 | be retained by, serve at the pleasure of, and be under the | ||||||
14 | supervision of the Auditor General and shall be paid from | ||||||
15 | appropriations to the office of the Auditor General. The State | ||||||
16 | Actuary may be selected by the Auditor General without engaging | ||||||
17 | in a competitive procurement process. | ||||||
18 | (b) The State Actuary shall: | ||||||
19 | (1) review assumptions and valuations prepared by | ||||||
20 | actuaries retained by the boards of trustees of the | ||||||
21 | State-funded retirement systems; | ||||||
22 | (2) issue preliminary reports to the boards of trustees | ||||||
23 | of the State-funded retirement systems concerning proposed | ||||||
24 | certifications of required State contributions submitted |
| |||||||
| |||||||
1 | to the State Actuary by those boards; | ||||||
2 | (3) cooperate with the boards of trustees of the | ||||||
3 | State-funded retirement systems to identify recommended | ||||||
4 | changes in actuarial assumptions that the boards must | ||||||
5 | consider before finalizing their certifications of the | ||||||
6 | required State contributions; | ||||||
7 | (4) conduct reviews of the actuarial practices of the | ||||||
8 | boards of trustees of the State-funded retirement systems; | ||||||
9 | (5) make additional reports as directed by joint | ||||||
10 | resolution of the General Assembly; and | ||||||
11 | (6) perform any other duties assigned by the Auditor | ||||||
12 | General, including, but not limited to, reviews of the | ||||||
13 | actuarial practices of other entities. | ||||||
14 | (c) On or before January 1, 2013 and each January 1 | ||||||
15 | thereafter, the Auditor General shall submit a written report | ||||||
16 | to the General Assembly and Governor documenting the initial | ||||||
17 | assumptions and valuations prepared by actuaries retained by | ||||||
18 | the boards of trustees of the State-funded retirement systems, | ||||||
19 | any changes recommended by the State Actuary in the actuarial | ||||||
20 | assumptions, and the responses of each board to the State | ||||||
21 | Actuary's recommendations. | ||||||
22 | (d) For the purposes of this Section, "State-funded | ||||||
23 | retirement system" means a retirement system established | ||||||
24 | pursuant to Article 2, 14, 15, 16, or 18 of the Illinois | ||||||
25 | Pension Code. |
| |||||||
| |||||||
1 | Section 25. The State Finance Act is amended by changing | ||||||
2 | Section 13 and by adding Sections 24.12 and 24.13 as follows:
| ||||||
3 | (30 ILCS 105/13) (from Ch. 127, par. 149)
| ||||||
4 | Sec. 13.
The objects and purposes for which appropriations | ||||||
5 | are made
are classified and standardized by items as follows:
| ||||||
6 | (1) Personal services;
| ||||||
7 | (2) State contribution for employee group insurance;
| ||||||
8 | (3) Contractual services;
| ||||||
9 | (4) Travel;
| ||||||
10 | (5) Commodities;
| ||||||
11 | (6) Equipment;
| ||||||
12 | (7) Permanent improvements;
| ||||||
13 | (8) Land;
| ||||||
14 | (9) Electronic Data Processing;
| ||||||
15 | (10) Operation of automotive equipment;
| ||||||
16 | (11) Telecommunications services;
| ||||||
17 | (12) Contingencies;
| ||||||
18 | (13) Reserve;
| ||||||
19 | (14) Interest;
| ||||||
20 | (15) Awards and Grants;
| ||||||
21 | (16) Debt Retirement;
| ||||||
22 | (17) Non-Cost Charges;
| ||||||
23 | (18) State retirement contribution for annual normal cost; | ||||||
24 | (19) State retirement contribution for unfunded accrued | ||||||
25 | liability; |
| |||||||
| |||||||
1 | (20) (18) Purchase Contract for Real Estate.
| ||||||
2 | When an appropriation is made to an officer, department, | ||||||
3 | institution,
board, commission or other agency, or to a private | ||||||
4 | association or
corporation, in one or more of the items above | ||||||
5 | specified, such
appropriation shall be construed in accordance | ||||||
6 | with the definitions and
limitations specified in this Act, | ||||||
7 | unless the appropriation act
otherwise provides.
| ||||||
8 | An appropriation for a purpose other than one specified and | ||||||
9 | defined
in this Act may be made only as an additional, separate | ||||||
10 | and distinct
item, specifically stating the object and purpose | ||||||
11 | thereof.
| ||||||
12 | (Source: P.A. 84-263; 84-264.)
| ||||||
13 | (30 ILCS 105/24.12 new) | ||||||
14 | Sec. 24.12. "State retirement contribution for annual | ||||||
15 | normal cost" defined. The term "State retirement contribution | ||||||
16 | for annual normal cost" means the portion of the total required | ||||||
17 | State contribution to a retirement system for a fiscal year | ||||||
18 | that represents the State's portion of the System's projected | ||||||
19 | normal cost for that fiscal year, as determined and certified | ||||||
20 | by the board of trustees of the retirement system in | ||||||
21 | conformance with the applicable provisions of the Illinois | ||||||
22 | Pension Code. | ||||||
23 | (30 ILCS 105/24.13 new) | ||||||
24 | Sec. 24.13. "State retirement contribution for unfunded |
| |||||||
| |||||||
1 | accrued liability" defined. The term "State retirement | ||||||
2 | contribution for unfunded accrued liability" means the portion | ||||||
3 | of the total required State contribution to a retirement system | ||||||
4 | for a fiscal year that is not included in the State retirement | ||||||
5 | contribution for annual normal cost. | ||||||
6 | Section 30. The Illinois Pension Code is amended by | ||||||
7 | changing Sections 1-103.3, 1-160, 2-108, 2-119.1, 2-124, | ||||||
8 | 2-134, 7-109, 14-106, 14-135.08, 15-106, 15-107, 15-111, | ||||||
9 | 15-113.2, 15-113.6, 15-134.5, 15-136, 15-155, 15-157, | ||||||
10 | 15-158.2, 15-159, 15-163, 15-198, 16-106, 16-127, 16-158, | ||||||
11 | 18-140, 20-121, 20-123, 20-124, and 20-125 and by adding | ||||||
12 | Sections 1-161, 1-162, 2-105.1, 2-105.2, 2-107.9, 2-110.3, | ||||||
13 | 15-107.1, 15-107.2, 15-111.1, 15-134.6, 15-155.1, 15-155.2, | ||||||
14 | and as follows:
| ||||||
15 | (40 ILCS 5/1-103.3)
| ||||||
16 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
17 | standard.
| ||||||
18 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
19 | of 1994 that change the method of
calculating, certifying, and | ||||||
20 | paying the required State contributions to the
retirement | ||||||
21 | systems established under Articles 2, 14, 15, 16, and 18 shall
| ||||||
22 | first apply to the State contributions required for State | ||||||
23 | fiscal year 1996.
| ||||||
24 | (b) (Blank). The General Assembly declares that a funding |
| |||||||
| |||||||
1 | ratio (the ratio of a
retirement system's total assets to its | ||||||
2 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
3 | State-funded retirement systems in Illinois, and it
finds that | ||||||
4 | a funding ratio of 90% is now the generally-recognized norm
| ||||||
5 | throughout the nation for public employee retirement systems | ||||||
6 | that are
considered to be financially secure and funded in an | ||||||
7 | appropriate and
responsible manner.
| ||||||
8 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
9 | Government Forecasting and Accountability, in consultation | ||||||
10 | with the affected retirement systems and the
Governor's Office | ||||||
11 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
12 | consider and determine whether the funding goals 90% funding | ||||||
13 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
14 | continue subsection (b) continues to represent an appropriate | ||||||
15 | funding goals goal for
State-funded retirement systems in | ||||||
16 | Illinois, and it shall report its findings
and recommendations | ||||||
17 | on this subject to the Governor and the General Assembly.
| ||||||
18 | (Source: P.A. 93-1067, eff. 1-15-05.)
| ||||||
19 | (40 ILCS 5/1-160) | ||||||
20 | Sec. 1-160. Provisions applicable to new hires. | ||||||
21 | (a) The provisions of this Section apply to a person who, | ||||||
22 | on or after January 1, 2011, first becomes a member or a | ||||||
23 | participant under any reciprocal retirement system or pension | ||||||
24 | fund established under this Code, other than a retirement | ||||||
25 | system or pension fund established under Article 2, 3, 4, 5, 6, |
| |||||||
| |||||||
1 | or 18 of this Code, notwithstanding any other provision of this | ||||||
2 | Code to the contrary, but do not apply (i) to any self-managed | ||||||
3 | plan established under this Code, (ii) to any person with | ||||||
4 | respect to service as a sheriff's law enforcement employee | ||||||
5 | under Article 7, (iii) to any person with respect to service | ||||||
6 | for which the person participates in the cash balance plan | ||||||
7 | established under Section 1-161, or (iv) to any participant of | ||||||
8 | the retirement plan established under Section 22-101. | ||||||
9 | A person subject to this Section with respect to service | ||||||
10 | under the State Universities Retirement System may irrevocably | ||||||
11 | elect to transfer to the cash balance plan under Section 1-161 | ||||||
12 | with respect to service under the State Universities Retirement | ||||||
13 | System by filing with the State Universities Retirement System | ||||||
14 | in the manner required by that System, his or her irrevocable | ||||||
15 | written election to transfer to the cash balance plan. | ||||||
16 | Participation in the cash balance plan shall begin no earlier | ||||||
17 | than July 1, 2013. | ||||||
18 | (b) "Final average salary" means the average monthly (or | ||||||
19 | annual) salary obtained by dividing the total salary or | ||||||
20 | earnings calculated under the Article applicable to the member | ||||||
21 | or participant during the 96 consecutive months (or 8 | ||||||
22 | consecutive years) of service within the last 120 months (or 10 | ||||||
23 | years) of service in which the total salary or earnings | ||||||
24 | calculated under the applicable Article was the highest by the | ||||||
25 | number of months (or years) of service in that period. For the | ||||||
26 | purposes of a person who first becomes a member or participant |
| |||||||
| |||||||
1 | of any retirement system or pension fund to which this Section | ||||||
2 | applies on or after January 1, 2011, in this Code, "final | ||||||
3 | average salary" shall be substituted for the following: | ||||||
4 | (1) In Articles 7 (except for service as sheriff's law | ||||||
5 | enforcement employees) and 15, "final rate of earnings". | ||||||
6 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
7 | annual salary for any 4 consecutive years within the last | ||||||
8 | 10 years of service immediately preceding the date of | ||||||
9 | withdrawal". | ||||||
10 | (3) In Article 13, "average final salary". | ||||||
11 | (4) In Article 14, "final average compensation". | ||||||
12 | (5) In Article 17, "average salary". | ||||||
13 | (6) In Section 22-207, "wages or salary received by him | ||||||
14 | at the date of retirement or discharge". | ||||||
15 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
16 | this Code (including without limitation the calculation of | ||||||
17 | benefits and employee contributions), the annual earnings, | ||||||
18 | salary, or wages (based on the plan year) of a member or | ||||||
19 | participant to whom this Section applies shall not exceed | ||||||
20 | $106,800; however, that amount shall annually thereafter be | ||||||
21 | increased by the lesser of (i) 3% of that amount, including all | ||||||
22 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
23 | percentage increase (but not less than zero) in the consumer | ||||||
24 | price index-u
for the 12 months ending with the September | ||||||
25 | preceding each November 1, including all previous adjustments. | ||||||
26 | For the purposes of this Section, "consumer price index-u" |
| |||||||
| |||||||
1 | means
the index published by the Bureau of Labor Statistics of | ||||||
2 | the United States
Department of Labor that measures the average | ||||||
3 | change in prices of goods and
services purchased by all urban | ||||||
4 | consumers, United States city average, all
items, 1982-84 = | ||||||
5 | 100. The new amount resulting from each annual adjustment
shall | ||||||
6 | be determined by the Public Pension Division of the Department | ||||||
7 | of Insurance and made available to the boards of the retirement | ||||||
8 | systems and pension funds by November 1 of each year. | ||||||
9 | (c) A member or participant is entitled to a retirement
| ||||||
10 | annuity upon written application if he or she has attained age | ||||||
11 | 67 and has at least 10 years of service credit and is otherwise | ||||||
12 | eligible under the requirements of the applicable Article. | ||||||
13 | A member or participant who has attained age 62 and has at | ||||||
14 | least 10 years of service credit and is otherwise eligible | ||||||
15 | under the requirements of the applicable Article may elect to | ||||||
16 | receive the lower retirement annuity provided
in subsection (d) | ||||||
17 | of this Section. | ||||||
18 | (d) The retirement annuity of a member or participant who | ||||||
19 | is retiring after attaining age 62 with at least 10 years of | ||||||
20 | service credit shall be reduced by one-half
of 1% for each full | ||||||
21 | month that the member's age is under age 67. | ||||||
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 or the first anniversary | ||||||
25 | of the annuity start date, whichever is later. Each annual | ||||||
26 | increase shall be calculated at 3% or one-half the annual |
| |||||||
| |||||||
1 | unadjusted percentage increase (but not less than zero) in the | ||||||
2 | consumer price index-u for the 12 months ending with the | ||||||
3 | September preceding each November 1, whichever is less, of the | ||||||
4 | originally granted retirement annuity. If the annual | ||||||
5 | unadjusted percentage change in the consumer price index-u for | ||||||
6 | the 12 months ending with the September preceding each November | ||||||
7 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
8 | increased. | ||||||
9 | (f) The initial survivor's or widow's annuity of an | ||||||
10 | otherwise eligible survivor or widow of a retired member or | ||||||
11 | participant who first became a member or participant on or | ||||||
12 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
13 | retired member's or participant's retirement annuity at the | ||||||
14 | date of death. In the case of the death of a member or | ||||||
15 | participant who has not retired and who first became a member | ||||||
16 | or participant on or after January 1, 2011, eligibility for a | ||||||
17 | survivor's or widow's annuity shall be determined by the | ||||||
18 | applicable Article of this Code. The initial benefit shall be | ||||||
19 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
20 | child's annuity of an otherwise eligible child shall be in the | ||||||
21 | amount prescribed under each Article if applicable. Any | ||||||
22 | survivor's or widow's annuity shall be increased (1) on each | ||||||
23 | January 1 occurring on or after the commencement of the annuity | ||||||
24 | if
the deceased member died while receiving a retirement | ||||||
25 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
26 | after the first anniversary
of the commencement of the annuity. |
| |||||||
| |||||||
1 | Each annual increase shall be calculated at 3% or one-half the | ||||||
2 | annual unadjusted percentage increase (but not less than zero) | ||||||
3 | in the consumer price index-u for the 12 months ending with the | ||||||
4 | September preceding each November 1, whichever is less, of the | ||||||
5 | originally granted survivor's annuity. If the annual | ||||||
6 | unadjusted percentage change in the consumer price index-u for | ||||||
7 | the 12 months ending with the September preceding each November | ||||||
8 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
9 | increased. | ||||||
10 | (g) The benefits in Section 14-110 apply only if the person | ||||||
11 | is a State policeman, a fire fighter in the fire protection | ||||||
12 | service of a department, or a security employee of the | ||||||
13 | Department of Corrections or the Department of Juvenile | ||||||
14 | Justice, as those terms are defined in subsection (c) (b) of | ||||||
15 | Section 14-110. A person who meets the requirements of this | ||||||
16 | Section is entitled to an annuity calculated under the | ||||||
17 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
18 | retirement annuity, only if the person has withdrawn from | ||||||
19 | service with not less than 20
years of eligible creditable | ||||||
20 | service and has attained age 60, regardless of whether
the | ||||||
21 | attainment of age 60 occurs while the person is
still in | ||||||
22 | service. | ||||||
23 | (h) If a person who first becomes a member or a participant | ||||||
24 | of a retirement system or pension fund subject to this Section | ||||||
25 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
26 | or retirement pension under that system or fund and becomes a |
| |||||||
| |||||||
1 | member or participant under any other system or fund created by | ||||||
2 | this Code and is employed on a full-time basis, except for | ||||||
3 | those members or participants exempted from the provisions of | ||||||
4 | this Section under subsection (a) of this Section, then the | ||||||
5 | person's retirement annuity or retirement pension under that | ||||||
6 | system or fund shall be suspended during that employment. Upon | ||||||
7 | termination of that employment, the person's retirement | ||||||
8 | annuity or retirement pension payments shall resume and be | ||||||
9 | recalculated if recalculation is provided for under the | ||||||
10 | applicable Article of this Code. | ||||||
11 | If a person who first becomes a member of a retirement | ||||||
12 | system or pension fund subject to this Section on or after | ||||||
13 | January 1, 2012 and is receiving a retirement annuity or | ||||||
14 | retirement pension under that system or fund and accepts on a | ||||||
15 | contractual basis a position to provide services to a | ||||||
16 | governmental entity from which he or she has retired, then that | ||||||
17 | person's annuity or retirement pension earned as an active | ||||||
18 | employee of the employer shall be suspended during that | ||||||
19 | contractual service. A person receiving an annuity or | ||||||
20 | retirement pension under this Code shall notify the pension | ||||||
21 | fund or retirement system from which he or she is receiving an | ||||||
22 | annuity or retirement pension, as well as his or her | ||||||
23 | contractual employer, of his or her retirement status before | ||||||
24 | accepting contractual employment. A person who fails to submit | ||||||
25 | such notification shall be guilty of a Class A misdemeanor and | ||||||
26 | required to pay a fine of $1,000. Upon termination of that |
| |||||||
| |||||||
1 | contractual employment, the person's retirement annuity or | ||||||
2 | retirement pension payments shall resume and, if appropriate, | ||||||
3 | be recalculated under the applicable provisions of this Code. | ||||||
4 | (i) Notwithstanding any other provision of this Section, a | ||||||
5 | person who first becomes a participant of the retirement system | ||||||
6 | established under Article 15 on or after January 1, 2011 shall | ||||||
7 | have the option to enroll in the self-managed plan created | ||||||
8 | under Section 15-158.2 of this Code. | ||||||
9 | (j) In the case of a conflict between the provisions of | ||||||
10 | this Section and any other provision of this Code, the | ||||||
11 | provisions of this Section shall control.
| ||||||
12 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; | ||||||
13 | 97-609, eff. 1-1-12.) | ||||||
14 | (40 ILCS 5/1-161 new) | ||||||
15 | Sec. 1-161. Cash Balance Plan. | ||||||
16 | (a) Participation and Applicability. This Section applies | ||||||
17 | to all new cash balance plan participants and all legacy Tier | ||||||
18 | II participants. | ||||||
19 | This Section does not, however, apply to any person with | ||||||
20 | respect to service for which the person participates in the | ||||||
21 | self-managed plan established under Section 15-158.2 in lieu of | ||||||
22 | the retirement benefits otherwise provided by the State | ||||||
23 | Universities Retirement System. | ||||||
24 | (b) Title. The package of benefits provided under this | ||||||
25 | Section may be referred to as the "cash balance plan". Persons |
| |||||||
| |||||||
1 | subject to the provisions of this Section may be referred to as | ||||||
2 | "participants in the cash balance plan". | ||||||
3 | (b-5) Definitions. As used in this Section: | ||||||
4 | "Account" means the notional cash balance account | ||||||
5 | established under this Section for a participant in the cash | ||||||
6 | balance plan. | ||||||
7 | "Consumer Price Index-U" means
the Consumer Price Index | ||||||
8 | published by the Bureau of Labor Statistics of the United | ||||||
9 | States
Department of Labor that measures the average change in | ||||||
10 | prices of goods and
services purchased by all urban consumers, | ||||||
11 | United States city average, all
items, 1982-84 = 100. | ||||||
12 | "Salary" means "earnings" as defined in Article 15, without | ||||||
13 | regard to the limitation in subsection (b-5) of Section 1-160. | ||||||
14 | "Legacy Tier II participant" means a person who was subject | ||||||
15 | to Section 1-160 with respect to service under Article 15 of | ||||||
16 | this Code and who irrevocably elects to participate in the cash | ||||||
17 | balance plan created under this Section. That election must be | ||||||
18 | made in writing, in the manner provided by the applicable | ||||||
19 | retirement system. | ||||||
20 | "New cash balance plan participant" means a person who, on | ||||||
21 | or after July 1, 2013, first begins to participate in the | ||||||
22 | retirement system established under Article 15 of this Code. | ||||||
23 | (c) Cash Balance Account. A notional cash balance account | ||||||
24 | shall be established by the applicable retirement system for | ||||||
25 | each participant in the cash balance plan. The account is | ||||||
26 | notional and does not contain any actual money segregated from |
| |||||||
| |||||||
1 | the commingled assets of the retirement system. The cash | ||||||
2 | balance in the account is to be used in calculating benefits as | ||||||
3 | provided in this Section, but is not to be used in the | ||||||
4 | calculation of any refund, transfer, or other benefit under the | ||||||
5 | applicable Article of this Code. | ||||||
6 | The amounts to be credited to the cash balance account | ||||||
7 | shall consist of (i) amounts contributed by or on behalf of the | ||||||
8 | participant as employee contributions, (ii) notional employer | ||||||
9 | contributions, and (iii) interest credit that is attributable | ||||||
10 | to the account, all as provided in this Section. | ||||||
11 | Whenever necessary for the prompt calculation or | ||||||
12 | administration, or when the System lacks information necessary | ||||||
13 | to the calculation or administration otherwise required of or | ||||||
14 | for a benefit under this Section, the applicable retirement | ||||||
15 | system may estimate an amount to be credited to or debited from | ||||||
16 | a participant's cash balance account and then adjust the amount | ||||||
17 | so credited or debited when more accurate information becomes | ||||||
18 | available. | ||||||
19 | The applicable retirement system shall give to each | ||||||
20 | participant in the cash balance plan who has not yet retired | ||||||
21 | annual notice of (1) the balance in the participant's cash | ||||||
22 | balance account and (2) an estimate of the retirement annuity | ||||||
23 | that will be payable to the participant if he or she retires at | ||||||
24 | age 59 1/2. | ||||||
25 | (c-5) Initial Account Balance for Legacy Tier II | ||||||
26 | Participants. The applicable retirement system shall establish |
| |||||||
| |||||||
1 | an initial account balance for each legacy Tier II participant | ||||||
2 | when he or she begins participation in the cash balance plan. | ||||||
3 | The initial account balance shall be an amount equal to the | ||||||
4 | employee contribution refund that the participant
would be | ||||||
5 | eligible to receive under the applicable Article of this Code | ||||||
6 | if the participant terminated
employment on that date and | ||||||
7 | elected a refund of contributions, as prescribed by the board | ||||||
8 | of the applicable retirement system. | ||||||
9 | (d) Employee Contributions. New cash balance plan | ||||||
10 | participants and legacy Tier II participants shall make | ||||||
11 | employee contributions to the applicable retirement system at | ||||||
12 | the rates required under the applicable Article of this Code. | ||||||
13 | The amount of each contribution shall be credited to the | ||||||
14 | participant's cash balance account upon receipt and after the | ||||||
15 | retirement system's reconciliation of the contribution. | ||||||
16 | (e) Notional Employer Contributions. Upon receipt of each | ||||||
17 | employee contribution under subsection (d), an amount | ||||||
18 | representing the employer contribution shall be credited to the | ||||||
19 | participant's cash balance account. For a participant in the | ||||||
20 | cash balance plan under Article 15, the notional employer | ||||||
21 | contribution shall be 4.4% of salary. | ||||||
22 | The notional employer contribution to be credited to the | ||||||
23 | participant's account is not the same as the actual employer | ||||||
24 | contributions required under subsection (p) and the provisions | ||||||
25 | of the applicable Article of this Code. | ||||||
26 | (e-1) Optional Employer Contributions. Employers may make
|
| |||||||
| |||||||
1 | optional additional contributions to the applicable retirement | ||||||
2 | system on behalf of their employees who are participants in the | ||||||
3 | cash balance plan in accordance with procedures prescribed by | ||||||
4 | the retirement system, to
the extent permitted by federal law | ||||||
5 | and the rules prescribed by the retirement system. The optional | ||||||
6 | additional contributions under this subsection are actual | ||||||
7 | monetary contributions to the retirement system, and the amount | ||||||
8 | of each optional additional contribution shall be credited to | ||||||
9 | the participant's cash balance account upon receipt and after | ||||||
10 | the retirement system's reconciliation of the contribution. | ||||||
11 | (f) Interest Credit. An amount representing earnings on | ||||||
12 | investments shall be determined by the retirement system in | ||||||
13 | accordance with this Section and credited to the participant's | ||||||
14 | cash balance account for each fiscal year in which there is a | ||||||
15 | positive balance in that account; except that no additional | ||||||
16 | interest credit shall be credited while an annuity based on the | ||||||
17 | account is being paid. The interest credit amount shall be a | ||||||
18 | percentage of the average quarterly balance in the cash balance | ||||||
19 | account during that fiscal year, and shall be calculated on | ||||||
20 | June 30. | ||||||
21 | The percentage shall be the assumed treasury rate for the | ||||||
22 | previous fiscal year, unless neither the retirement system's | ||||||
23 | actual rate of investment earnings for the previous fiscal year | ||||||
24 | nor the retirement system's actual rate of investment earnings | ||||||
25 | for the five-year period ending at the end of the previous | ||||||
26 | fiscal year is less than the assumed treasury rate. |
| |||||||
| |||||||
1 | If both the retirement system's actual rate of investment | ||||||
2 | earnings for the previous fiscal year and the actual rate of | ||||||
3 | investment earnings for the five-year period ending at the end | ||||||
4 | of the previous fiscal year are at least the assumed treasury | ||||||
5 | rate, then the percentage shall be: | ||||||
6 | (i) the assumed treasury rate, plus | ||||||
7 | (ii) two-thirds of the amount of the actual rate of | ||||||
8 | investment earnings for the previous fiscal year that | ||||||
9 | exceeds the assumed treasury rate. | ||||||
10 | However, in no event shall the percentage applied under this | ||||||
11 | subsection exceed 10%. | ||||||
12 | For the purposes of this subsection only, "previous fiscal | ||||||
13 | year" means fiscal year ending one year before the interest | ||||||
14 | rate is calculated. | ||||||
15 | For the purposes of this subsection only, "assumed treasury | ||||||
16 | rate" means the average annual yield of the 30-year U.S. | ||||||
17 | Treasury Bond over the previous fiscal year, but not less than | ||||||
18 | 4%. | ||||||
19 | When a person applies for a benefit under this Section, the | ||||||
20 | retirement system shall apply an interest credit based on a | ||||||
21 | proration of an estimate of what the interest credit will be | ||||||
22 | for the relevant year. When the retirement system certifies the | ||||||
23 | credit on June 30, it shall adjust the benefit accordingly. | ||||||
24 | (f-10) Distribution upon Termination of Employment. Upon | ||||||
25 | termination of active employment with at least 5 years of | ||||||
26 | service credit under the applicable retirement system and prior |
| |||||||
| |||||||
1 | to making application for an annuity under this Section, a | ||||||
2 | participant in the cash balance plan may make an irrevocable | ||||||
3 | election to distribute an amount not to exceed 40% of the | ||||||
4 | balance in the participant's account in the form of a direct | ||||||
5 | rollover to another qualified plan, to the extent allowed by | ||||||
6 | federal law. If the participant makes such an election, then | ||||||
7 | the amount distributed shall be debited from the participant's | ||||||
8 | cash balance account. A participant in the cash balance plan | ||||||
9 | shall be allowed only one distribution under this subsection. | ||||||
10 | The remaining balance in the participant's account shall be | ||||||
11 | used for the determination of other benefits provided under | ||||||
12 | this Section. | ||||||
13 | (f-15) Refund. In lieu of receiving a distribution under | ||||||
14 | subsection (f-10), at any time after terminating active | ||||||
15 | employment under the applicable retirement system, but before | ||||||
16 | receiving a retirement annuity under this Section, a | ||||||
17 | participant in the cash balance plan may elect to receive a | ||||||
18 | refund under this subsection. The refund shall consist of an | ||||||
19 | amount equal to the amount of all employee contributions | ||||||
20 | credited to the participant's account, but shall not include | ||||||
21 | any interest credit or employer contributions. If the | ||||||
22 | participant so requests, the refund may be paid in the form of | ||||||
23 | a direct rollover to another qualified plan, to the extent | ||||||
24 | allowed by federal law and in accordance with the rules of the | ||||||
25 | applicable retirement system. Upon payment of the refund, the | ||||||
26 | participant's notional cash balance account shall be closed. |
| |||||||
| |||||||
1 | The participant's credits in the applicable retirement | ||||||
2 | system shall be terminated upon payment of a refund under this | ||||||
3 | subsection. | ||||||
4 | (g) Retirement Annuity. A participant in the cash balance | ||||||
5 | plan may begin collecting a retirement annuity at age 59 1/2, | ||||||
6 | but no earlier than the date of termination of active | ||||||
7 | employment under the applicable retirement system. | ||||||
8 | The amount of the retirement annuity shall be calculated by | ||||||
9 | the retirement system, based on the balance in the cash balance | ||||||
10 | account, the assumption of future investment returns as | ||||||
11 | specified in this subsection, the participant's election to | ||||||
12 | have a lifetime survivor's annuity as specified in this | ||||||
13 | subsection, the annual increase in retirement annuity as | ||||||
14 | specified in subsection (h), the annual increase in survivor's | ||||||
15 | annuity as specified in subsection (l), and any actuarial | ||||||
16 | assumptions and tables adopted by the board of the retirement | ||||||
17 | system for this purpose. The calculation shall determine the | ||||||
18 | amount of retirement annuity, on an actuarially equivalent | ||||||
19 | basis, that shall be designed to result in the balance in the | ||||||
20 | participant's account arriving at zero on the date when the | ||||||
21 | last payment of the retirement annuity (or survivor's annuity, | ||||||
22 | if the participant elects to provide for a survivor's annuity | ||||||
23 | pursuant to this subsection) is anticipated to be paid under | ||||||
24 | the relevant actuarial assumptions. A retirement annuity or a | ||||||
25 | survivor's annuity provided under this Section shall be a life | ||||||
26 | annuity and shall not expire if the account balance equals |
| |||||||
| |||||||
1 | zero. | ||||||
2 | The annuity payment shall begin on the date specified by | ||||||
3 | the participant submitting a written application, which date | ||||||
4 | shall not be prior to termination of employment or more than | ||||||
5 | one year before the application is received by the board; | ||||||
6 | however, if the participant is not an employee of an employer | ||||||
7 | participating in this System or in a participating system as | ||||||
8 | defined in Article 20 of this Code on April 1 of the calendar | ||||||
9 | year next following the calendar year in which the participant | ||||||
10 | attains age 70 1/2, the annuity payment period shall begin on | ||||||
11 | that date regardless of whether an application has been filed. | ||||||
12 | The participant may elect, under the participant's written | ||||||
13 | application for retirement, to receive a reduced annuity | ||||||
14 | payable for his or her life and to have a lifetime survivor's | ||||||
15 | annuity in a monthly amount equal to 50%, 75%, or 100% of that | ||||||
16 | reduced monthly amount, to be paid after the participant's | ||||||
17 | death to his or her eligible survivor. Eligibility for a | ||||||
18 | survivor's annuity shall be determined under the applicable | ||||||
19 | Article of this Code. | ||||||
20 | For the purpose of calculating retirement annuities, | ||||||
21 | future investment returns shall be assumed to be a percentage | ||||||
22 | equal to the average yield of the 30-year U.S. Treasury Bond | ||||||
23 | over the 5 fiscal years prior to the calculation of the initial | ||||||
24 | retirement annuity, plus 250 basis points; but not less than 4% | ||||||
25 | nor more than 8%. | ||||||
26 | (h) Annual Increase in Retirement Annuity. The retirement |
| |||||||
| |||||||
1 | annuity shall be subject to an automatic annual increase in an | ||||||
2 | amount equal to 3% of the originally granted annuity on each | ||||||
3 | January 1 occurring on or after the first anniversary of the | ||||||
4 | annuity start date. | ||||||
5 | (i) Disability Benefits. The disability benefits provided | ||||||
6 | under the applicable retirement system apply to new cash | ||||||
7 | balance plan participants and legacy Tier II participants in | ||||||
8 | the cash balance plan, subject to and in accordance with the | ||||||
9 | eligibility and other provisions of the applicable Article. | ||||||
10 | Retirement due to disability under Section 15-153.2 shall | ||||||
11 | be deemed a disability benefit for the purposes of this Section | ||||||
12 | and shall apply to new cash balance plan participants and | ||||||
13 | legacy Tier II participants. | ||||||
14 | The board of the retirement system shall designate | ||||||
15 | annually, as a percentage of salary, an amount representing the | ||||||
16 | anticipated average cost of providing disability benefits for | ||||||
17 | new cash balance plan participants and legacy Tier II | ||||||
18 | participants. The amount so designated shall not exceed 1% of | ||||||
19 | the cash balance plan participant's salary and shall be | ||||||
20 | deducted annually from the account of each new cash balance | ||||||
21 | plan participant and each legacy Tier II participant. | ||||||
22 | (j) Return to Service. Upon a return to service under the | ||||||
23 | same retirement system after beginning to receive a retirement | ||||||
24 | annuity under the cash balance plan, the retirement annuity | ||||||
25 | shall be suspended and active participation in the cash balance | ||||||
26 | plan shall resume. Upon termination of the employment, the |
| |||||||
| |||||||
1 | retirement annuity shall resume in an amount to be recalculated | ||||||
2 | in accordance with subsection (g), taking into effect the | ||||||
3 | changes in the cash balance account. If a retired annuitant | ||||||
4 | returns to service, his or her notional cash balance account | ||||||
5 | shall be decreased by each payment of retirement annuity prior | ||||||
6 | to the return to service. | ||||||
7 | (k) Survivor's Annuity - Death before Retirement. In the | ||||||
8 | case of the death of a new cash balance plan participant or | ||||||
9 | legacy Tier II participant who had less than 5 years of service | ||||||
10 | under the applicable Article and had not begun receiving a | ||||||
11 | retirement annuity, the eligible survivor shall be entitled | ||||||
12 | only to a refund of employee contributions under subsection | ||||||
13 | (f-15). | ||||||
14 | In the case of the death of a new cash balance plan | ||||||
15 | participant or legacy Tier II participant who had at least 5 | ||||||
16 | years of service under the applicable Article and had not begun | ||||||
17 | receiving a retirement annuity, the eligible survivor shall be | ||||||
18 | entitled to receive a survivor's annuity beginning at age 59 | ||||||
19 | 1/2 upon written application. The survivor's annuity shall be | ||||||
20 | calculated in the same manner as a retirement annuity under | ||||||
21 | subsection (g). At any time before receiving a survivor's | ||||||
22 | annuity, the eligible survivor may claim a distribution under | ||||||
23 | subsection (f-10) or a refund under subsection (f-15). The | ||||||
24 | deceased participant's account shall continue to receive | ||||||
25 | interest credit until the eligible survivor begins to receive a | ||||||
26 | survivor's annuity or receives a refund of employee |
| |||||||
| |||||||
1 | contributions under subsection (f-15). | ||||||
2 | Eligibility for a survivor's annuity shall be determined | ||||||
3 | under the applicable Article of this Code. A child's or | ||||||
4 | parent's annuity for an otherwise eligible child or dependent | ||||||
5 | parent shall be in the same amount, if any, prescribed under | ||||||
6 | the applicable Article. | ||||||
7 | (l) Annual Increase in Survivor's Annuity. A survivor's | ||||||
8 | annuity granted under subsection (g) or (k) shall be subject to | ||||||
9 | an automatic annual increase in an amount equal to 3% of the | ||||||
10 | originally granted annuity on each January 1 occurring on or | ||||||
11 | after the first anniversary of the annuity start date. | ||||||
12 | (m) Applicability of Provisions. The following provisions, | ||||||
13 | if and as they exist in this Code, do not apply to participants | ||||||
14 | in the cash balance plan with respect to participation in the | ||||||
15 | cash balance plan, except as they are specifically provided for | ||||||
16 | in this Section: | ||||||
17 | (1) minimum service or vesting requirements (other | ||||||
18 | than as provided in this Section); | ||||||
19 | (2) provisions limiting a retirement annuity to a | ||||||
20 | specified percentage of salary; | ||||||
21 | (3) provisions authorizing a minimum retirement or | ||||||
22 | survivor's annuity or a supplemental annuity; | ||||||
23 | (4) provisions authorizing any form of retirement | ||||||
24 | annuity or survivor's annuity not authorized under this | ||||||
25 | Section; | ||||||
26 | (5) provisions authorizing a reversionary annuity |
| |||||||
| |||||||
1 | (other than a survivor's annuity under subsection (g)); | ||||||
2 | (6) provisions authorizing a refund of employee | ||||||
3 | contributions upon termination of service (except as | ||||||
4 | provided in this Section) or any lump-sum payout in lieu of | ||||||
5 | a retirement or survivor's annuity (other than the | ||||||
6 | distribution under subsection (f-10) or the refund under | ||||||
7 | subsection (f-15) of this Section; | ||||||
8 | (7) provisions authorizing optional service credits or | ||||||
9 | the payment of optional additional contributions (other | ||||||
10 | than the optional employer contributions specifically | ||||||
11 | authorized in subsection (e-1)); or | ||||||
12 | (8) a level income option. | ||||||
13 | The Retirement Systems Reciprocal Act applies to | ||||||
14 | participants in the cash balance plan who qualify under Article | ||||||
15 | 20 of this Code, but it does not affect the calculation of | ||||||
16 | benefits payable under this Section. | ||||||
17 | The other provisions of this Code continue to apply to | ||||||
18 | participants in the cash balance plan, to the extent that they | ||||||
19 | do not conflict with this Section. In the case of a conflict | ||||||
20 | between the provisions of this Section and any other provision | ||||||
21 | of this Code, the provisions of this Section control. | ||||||
22 | (n) Rules. The Board of Trustees of the applicable | ||||||
23 | retirement system may adopt rules and procedures for the | ||||||
24 | implementation of this Section, including but not limited to | ||||||
25 | determinations of how to integrate the administration of this | ||||||
26 | Section with the requirements of the applicable Article and any |
| |||||||
| |||||||
1 | other applicable provisions of this Code. | ||||||
2 | (o) Public Pension Division. The Public Pension Division of | ||||||
3 | the Department of Insurance shall determine in October of each | ||||||
4 | year the annual unadjusted percentage increase (but not less | ||||||
5 | than zero) in the Consumer Price Index-U
for the 12 months | ||||||
6 | ending with the preceding September. The Division shall certify | ||||||
7 | its determination to the Board of Trustees of the State | ||||||
8 | Universities Retirement System by November 1 of each year.
| ||||||
9 | (p) Actual Employer Contributions. Payment of employer | ||||||
10 | contributions with respect to participants in the cash balance | ||||||
11 | plan shall be the responsibility of the actual employer. These | ||||||
12 | contributions shall be determined under and paid in accordance | ||||||
13 | with the provisions of Sections 15-155. Optional employer | ||||||
14 | contributions may be paid by employers in any amount, but must | ||||||
15 | be paid in the manner specified by the applicable retirement | ||||||
16 | system. | ||||||
17 | (q) Prospective Modification. The provisions set forth in | ||||||
18 | this Section are subject to prospective changes made by law | ||||||
19 | provided that any such changes shall not apply to any benefits | ||||||
20 | accrued under this Section prior to the effective date of any | ||||||
21 | amendatory Act of the General Assembly. | ||||||
22 | (r) An employee who participates in the cash balance plan | ||||||
23 | under this Section may elect to participate in the optional | ||||||
24 | cash balance plan under Section 1-162. | ||||||
25 | (s) Qualified Plan Status. No provision of this Section | ||||||
26 | shall be interpreted in a way that would cause the applicable |
| |||||||
| |||||||
1 | retirement system to cease to be a qualified plan under section | ||||||
2 | 461 (a) of the Internal Revenue Code of 1986. | ||||||
3 | (40 ILCS 5/1-162 new) | ||||||
4 | Sec. 1-162. Optional cash balance plan. | ||||||
5 | (a) Participation and Applicability. Beginning on July 1, | ||||||
6 | 2013, the following persons may elect to participate in the | ||||||
7 | optional cash balance plan created under this Section: | ||||||
8 | (1) any person who participates in the cash balance | ||||||
9 | plan established under Section 1-161; and | ||||||
10 | (2) any Tier I employee who has made the election under | ||||||
11 | paragraph (1) of subsection (a) or (a-5) of Section | ||||||
12 | 15-134.6. | ||||||
13 | This Section does not, however, apply to any person with | ||||||
14 | respect to service for which the person participates in the | ||||||
15 | self-managed plan established under Section 15-158.2 in lieu of | ||||||
16 | the retirement benefits otherwise provided by the State | ||||||
17 | Universities Retirement System. | ||||||
18 | The Board of Trustees of the applicable retirement system | ||||||
19 | shall promulgate rules to create an annual election wherein a | ||||||
20 | person eligible to participate in the optional cash balance | ||||||
21 | plan may elect to participate, and an active employee who is a | ||||||
22 | participant in the plan may elect to cease active | ||||||
23 | participation. The election to cease active participation | ||||||
24 | shall not disqualify the employee from eligibility to receive | ||||||
25 | an interest credit under subsection (f), a distribution upon |
| |||||||
| |||||||
1 | termination under subsection (f-10), a refund under subsection | ||||||
2 | (f-15), a retirement annuity under subsection (f-15), a | ||||||
3 | retirement annuity under subsection (g), or a survivor annuity | ||||||
4 | under subsection (k), or from eligibility to resume active | ||||||
5 | participation in the optional cash balance plan in a subsequent | ||||||
6 | year. | ||||||
7 | (b) Title. The package of benefits provided under this | ||||||
8 | Section may be referred to as the "optional cash balance plan". | ||||||
9 | Persons subject to the provisions of this Section may be | ||||||
10 | referred to as "participants in the optional cash balance | ||||||
11 | plan". | ||||||
12 | (b-5) Definitions. As used in this Section: | ||||||
13 | "Account" means the notional cash balance account | ||||||
14 | established under this Section for a participant in the | ||||||
15 | optional cash balance plan. | ||||||
16 | "Consumer Price Index-U" means
the Consumer Price Index | ||||||
17 | published by the Bureau of Labor Statistics of the United | ||||||
18 | States
Department of Labor that measures the average change in | ||||||
19 | prices of goods and
services purchased by all urban consumers, | ||||||
20 | United States city average, all
items, 1982-84 = 100. | ||||||
21 | "Salary" means "earnings" as defined in Article 15, without | ||||||
22 | regard to the limitation in subsection (b-5) of Section 1-160. | ||||||
23 | "Tier I employee" means a person who is a Tier I employee | ||||||
24 | under the applicable Article of this Code. | ||||||
25 | (c) Cash Balance Account. A notional cash balance account | ||||||
26 | shall be established by the applicable retirement system for |
| |||||||
| |||||||
1 | each participant in the optional cash balance plan. The account | ||||||
2 | is notional and does not contain any actual money segregated | ||||||
3 | from the commingled assets of the retirement system. The cash | ||||||
4 | balance in the account is to be used in calculating benefits as | ||||||
5 | provided in this Section, but is not to be used in the | ||||||
6 | calculation of any refund, transfer, or other benefit under the | ||||||
7 | applicable Article of this Code. | ||||||
8 | The amounts to be credited to the cash balance account | ||||||
9 | shall consist of (i) amounts contributed by or on behalf of the | ||||||
10 | participant as employee contributions, (ii) notional employer | ||||||
11 | contributions, and (iii) interest credit that is attributable | ||||||
12 | to the account, all as provided in this Section. | ||||||
13 | Whenever necessary for the prompt calculation or | ||||||
14 | administration, or when the System lacks information necessary | ||||||
15 | to the calculation or administration otherwise required of or | ||||||
16 | for a benefit under this Section, the applicable retirement | ||||||
17 | system may estimate an amount to be credited to or debited from | ||||||
18 | a participant's cash balance account and then adjust the amount | ||||||
19 | so credited or debited when more accurate information becomes | ||||||
20 | available. | ||||||
21 | The applicable retirement system shall give to each | ||||||
22 | participant in the optional cash balance plan who has not yet | ||||||
23 | retired annual notice of (1) the balance in the participant's | ||||||
24 | cash balance account and (2) an estimate of the retirement | ||||||
25 | annuity that will be payable to the participant if he or she | ||||||
26 | retires at age 59 1/2. |
| |||||||
| |||||||
1 | (d) Employee Contributions. In addition to the other | ||||||
2 | contributions required under the applicable Article, each | ||||||
3 | participant shall make contributions to the applicable | ||||||
4 | retirement system at the rate of 2% of each payment of salary. | ||||||
5 | The amount of each contribution shall be credited to the | ||||||
6 | participant's cash balance account upon receipt and after the | ||||||
7 | retirement system's reconciliation of the contribution. | ||||||
8 | (e) Optional Employer Contributions. Employers may make
| ||||||
9 | optional additional contributions to the applicable retirement | ||||||
10 | system on behalf of their employees who are participants in the | ||||||
11 | optional cash balance plan in accordance with procedures | ||||||
12 | prescribed by the retirement system, to
the extent permitted by | ||||||
13 | federal law and the rules prescribed by the retirement system. | ||||||
14 | The optional additional contributions under this subsection | ||||||
15 | are actual monetary contributions to the retirement system, and | ||||||
16 | the amount of each optional additional contribution shall be | ||||||
17 | credited to the participant's cash balance account upon receipt | ||||||
18 | and after the retirement system's reconciliation of the | ||||||
19 | contribution. | ||||||
20 | (f) Interest Credit. An amount representing earnings on | ||||||
21 | investments shall be determined by the retirement system in | ||||||
22 | accordance with this Section and credited to the participant's | ||||||
23 | cash balance account for each fiscal year in which there is a | ||||||
24 | positive balance in that account; except that no additional | ||||||
25 | interest credit shall be credited while an annuity based on the | ||||||
26 | account is being paid. The interest credit amount shall be a |
| |||||||
| |||||||
1 | percentage of the average quarterly balance in the cash balance | ||||||
2 | account during that fiscal year, and shall be calculated on | ||||||
3 | June 30. | ||||||
4 | The percentage shall be the assumed treasury rate for the | ||||||
5 | previous fiscal year, unless neither the retirement system's | ||||||
6 | actual rate of investment earnings for the previous fiscal year | ||||||
7 | nor the retirement system's actual rate of investment earnings | ||||||
8 | for the five-year period ending at the end of the previous | ||||||
9 | fiscal year is less than the assumed treasury rate. | ||||||
10 | If both the retirement system's actual rate of investment | ||||||
11 | earnings for the previous fiscal year and the actual rate of | ||||||
12 | investment earnings for the five-year period ending at the end | ||||||
13 | of the previous fiscal year are at least the assumed treasury | ||||||
14 | rate, then the percentage shall be: | ||||||
15 | (i) the assumed treasury rate, plus | ||||||
16 | (ii) two-thirds of the amount of the actual rate of | ||||||
17 | investment earnings for the previous fiscal year that | ||||||
18 | exceeds the assumed treasury rate. | ||||||
19 | However, in no event shall the percentage applied under this | ||||||
20 | subsection exceed 10%. | ||||||
21 | For the purposes of this subsection only, "previous fiscal | ||||||
22 | year" means fiscal year ending one year before the interest | ||||||
23 | rate is calculated. | ||||||
24 | For the purposes of this subsection only, "assumed treasury | ||||||
25 | rate" means the average annual yield of the 30-year U.S. | ||||||
26 | Treasury Bond over the previous fiscal year, but not less than |
| |||||||
| |||||||
1 | 4%. | ||||||
2 | When a person applies for a benefit under this Section, the | ||||||
3 | retirement system shall apply an interest credit based on a | ||||||
4 | proration of an estimate of what the interest credit will be | ||||||
5 | for the relevant year. When the retirement system certifies the | ||||||
6 | credit on June 30, it shall adjust the benefit accordingly. | ||||||
7 | (f-10) Distribution upon Termination of Employment. Upon | ||||||
8 | termination of active employment with at least 5 years of | ||||||
9 | service credit under the applicable retirement system and prior | ||||||
10 | to making application for an annuity under this Section, a | ||||||
11 | participant in the optional cash balance plan may make an | ||||||
12 | irrevocable election to distribute an amount not to exceed 40% | ||||||
13 | of the balance in the participant's account in the form of a | ||||||
14 | direct rollover to another qualified plan, to the extent | ||||||
15 | allowed by federal law. If the participant makes such an | ||||||
16 | election, then the amount distributed shall be debited from the | ||||||
17 | participant's cash balance account. A participant in the | ||||||
18 | optional cash balance plan shall be allowed only one | ||||||
19 | distribution under this subsection. The remaining balance in | ||||||
20 | the participant's account shall be used for the determination | ||||||
21 | of other benefits provided under this Section. | ||||||
22 | (f-15) Refund. In lieu of receiving a distribution under | ||||||
23 | subsection (f-10), at any time after terminating active | ||||||
24 | employment under the applicable retirement system, but before | ||||||
25 | receiving a retirement annuity under this Section, a | ||||||
26 | participant in the optional cash balance plan may elect to |
| |||||||
| |||||||
1 | receive a refund under this subsection. The refund shall | ||||||
2 | consist of an amount equal to the amount of all employee | ||||||
3 | contributions credited to the participant's account, but shall | ||||||
4 | not include any interest credit or employer contributions. If | ||||||
5 | the participant so requests, the refund may be paid in the form | ||||||
6 | of a direct rollover to another qualified plan, to the extent | ||||||
7 | allowed by federal law and in accordance with the rules of the | ||||||
8 | applicable retirement system. Upon payment of the refund, the | ||||||
9 | participant's notional cash balance account shall be closed. | ||||||
10 | (g) Retirement Annuity. A participant in the optional cash | ||||||
11 | balance plan may begin collecting a retirement annuity at age | ||||||
12 | 59 1/2, but no earlier than the date of termination of active | ||||||
13 | employment under the applicable retirement system. | ||||||
14 | The amount of the retirement annuity shall be calculated by | ||||||
15 | the retirement system, based on the balance in the cash balance | ||||||
16 | account, the assumption of future investment returns as | ||||||
17 | specified in this subsection, the participant's election to | ||||||
18 | have a lifetime survivor's annuity as specified in this | ||||||
19 | subsection, the annual increase in retirement annuity as | ||||||
20 | specified in subsection (h), the annual increase in survivor's | ||||||
21 | annuity as specified in subsection (l), and any actuarial | ||||||
22 | assumptions and tables adopted by the board of the retirement | ||||||
23 | system for this purpose. The calculation shall determine the | ||||||
24 | amount of retirement annuity, on an actuarially equivalent | ||||||
25 | basis, that shall be designed to result in the balance in the | ||||||
26 | participant's account arriving at zero on the date when the |
| |||||||
| |||||||
1 | last payment of the retirement annuity (or survivor's annuity, | ||||||
2 | if the participant elects to provide for a survivor's annuity | ||||||
3 | pursuant to this subsection) is anticipated to be paid under | ||||||
4 | the relevant actuarial assumptions. A retirement annuity or a | ||||||
5 | survivor's annuity provided under this Section shall be a life | ||||||
6 | annuity and shall not expire if the account balance equals | ||||||
7 | zero. | ||||||
8 | The annuity payment shall begin on the date specified by | ||||||
9 | the participant submitting a written application, which date | ||||||
10 | shall not be prior to termination of employment or more than | ||||||
11 | one year before the application is received by the board; | ||||||
12 | however, if the participant is not an employee of an employer | ||||||
13 | participating in this System or in a participating system as | ||||||
14 | defined in Article 20 of this Code on April 1 of the calendar | ||||||
15 | year next following the calendar year in which the participant | ||||||
16 | attains age 70 1/2, the annuity payment period shall begin on | ||||||
17 | that date regardless of whether an application has been filed. | ||||||
18 | The participant may elect, under the participant's written | ||||||
19 | application for retirement, to receive a reduced annuity | ||||||
20 | payable for his or her life and to have a lifetime survivor's | ||||||
21 | annuity in a monthly amount equal to 50%, 75%, or 100% of that | ||||||
22 | reduced monthly amount, to be paid after the participant's | ||||||
23 | death to his or her eligible survivor. Eligibility for a | ||||||
24 | survivor's annuity shall be determined under the applicable | ||||||
25 | Article of this Code. | ||||||
26 | For the purpose of calculating retirement annuities, |
| |||||||
| |||||||
1 | future investment returns shall be assumed to be a percentage | ||||||
2 | equal to the average yield of the 30-year U.S. Treasury Bond | ||||||
3 | over the 5 fiscal years prior to the calculation of the initial | ||||||
4 | retirement annuity, plus 250 basis points; but not less than 4% | ||||||
5 | nor more than 8%. | ||||||
6 | (h) Annual Increase in Retirement Annuity. The retirement | ||||||
7 | annuity shall be subject to an automatic annual increase in an | ||||||
8 | amount equal to 3% of the originally granted annuity on each | ||||||
9 | January 1 occurring on or after the first anniversary of the | ||||||
10 | annuity start date. | ||||||
11 | (i) Disability Benefits. There are no disability benefits | ||||||
12 | provided under the optional cash balance plan, and no amounts | ||||||
13 | for disability shall be deducted from the account of a | ||||||
14 | participant in the optional cash balance plan. The disability | ||||||
15 | benefits provided under the applicable retirement system apply | ||||||
16 | to participants in the optional cash balance plan. | ||||||
17 | (j) Return to Service. Upon a return to service under the | ||||||
18 | same retirement system after beginning to receive a retirement | ||||||
19 | annuity under the optional cash balance plan, the retirement | ||||||
20 | annuity shall be suspended and active participation in the | ||||||
21 | optional cash balance plan shall resume. Upon termination of | ||||||
22 | the employment, the retirement annuity shall resume in an | ||||||
23 | amount to be recalculated in accordance with subsection (g), | ||||||
24 | taking into effect the changes in the cash balance account. If | ||||||
25 | a retired annuitant returns to service, his or her notional | ||||||
26 | cash balance account shall be decreased by each payment of |
| |||||||
| |||||||
1 | retirement annuity prior to the return to service. | ||||||
2 | (k) Survivor's Annuity - Death before Retirement. In the | ||||||
3 | case of a participant in the optional cash balance plan who had | ||||||
4 | less than 5 years of service under the applicable Article and | ||||||
5 | had not begun receiving a retirement annuity, the eligible | ||||||
6 | survivor shall be entitled only to a refund of employee | ||||||
7 | contributions under subsection (f-15). | ||||||
8 | In the case of a participant in the optional cash balance | ||||||
9 | plan who had at least 5 years of service under the applicable | ||||||
10 | Article and had not begun receiving a retirement annuity, the | ||||||
11 | eligible survivor shall be entitled to receive a survivor's | ||||||
12 | annuity beginning at age 59 1/2 upon written application. The | ||||||
13 | survivor's annuity shall be calculated in the same manner as a | ||||||
14 | retirement annuity under subsection (g). At any time before | ||||||
15 | receiving a survivor's annuity, the eligible survivor may claim | ||||||
16 | a distribution under subsection (f-10) or a refund under | ||||||
17 | subsection (f-15). The deceased participant's account shall | ||||||
18 | continue to receive interest credit until the eligible survivor | ||||||
19 | begins to receive a survivor's annuity or receives a refund of | ||||||
20 | employee contributions under subsection (f-15). | ||||||
21 | Eligibility for a survivor's annuity shall be determined | ||||||
22 | under the applicable Article of this Code. A child's or | ||||||
23 | parent's annuity for an otherwise eligible child or dependent | ||||||
24 | parent shall be in the same amount, if any, prescribed under | ||||||
25 | the applicable Article. | ||||||
26 | (l) Annual Increase in Survivor's Annuity. A survivor's |
| |||||||
| |||||||
1 | annuity granted under subsection (g) or (k) shall be subject to | ||||||
2 | an automatic annual increase in an amount equal to 3% of the | ||||||
3 | originally granted annuity on each January 1 occurring on or | ||||||
4 | after the first anniversary of the annuity start date. | ||||||
5 | (m) Applicability of Provisions. The following provisions, | ||||||
6 | if and as they exist in this Code, do not apply to participants | ||||||
7 | in the optional cash balance plan with respect to participation | ||||||
8 | in the optional cash balance plan, except as they are | ||||||
9 | specifically provided for in this Section: | ||||||
10 | (1) minimum service or vesting requirements (other | ||||||
11 | than as provided in this Section); | ||||||
12 | (2) provisions limiting a retirement annuity to a | ||||||
13 | specified percentage of salary; | ||||||
14 | (3) provisions authorizing a minimum retirement or | ||||||
15 | survivor's annuity or a supplemental annuity; | ||||||
16 | (4) provisions authorizing any form of retirement | ||||||
17 | annuity or survivor's annuity not authorized under this | ||||||
18 | Section; | ||||||
19 | (5) provisions authorizing a reversionary annuity | ||||||
20 | (other than the survivor's annuity under subsection (g)); | ||||||
21 | (6) provisions authorizing a refund of employee | ||||||
22 | contributions upon termination of service (other than upon | ||||||
23 | the death of the participant without an eligible survivor) | ||||||
24 | or any lump-sum payout in lieu of a retirement or | ||||||
25 | survivor's annuity (other than the distribution under | ||||||
26 | subsection (f-10) or the refund under subsection (f-15) of |
| |||||||
| |||||||
1 | this Section; | ||||||
2 | (7) provisions authorizing optional service credits or | ||||||
3 | the payment of optional additional contributions (other | ||||||
4 | than the optional employer contributions specifically | ||||||
5 | authorized in this Section); or | ||||||
6 | (8) a level income option. | ||||||
7 | The Retirement Systems Reciprocal Act (Article 20 of this | ||||||
8 | Code) does not apply to participation in the optional cash | ||||||
9 | balance plan and does not affect the calculation of benefits | ||||||
10 | payable under this Section. | ||||||
11 | The other provisions of this Code continue to apply to | ||||||
12 | participants in the optional cash balance plan, to the extent | ||||||
13 | that they do not conflict with this Section. In the case of a | ||||||
14 | conflict between the provisions of this Section and any other | ||||||
15 | provision of this Code, the provisions of this Section control. | ||||||
16 | (n) Rules. The Board of Trustees of the applicable | ||||||
17 | retirement system may adopt rules and procedures for the | ||||||
18 | implementation of this Section, including but not limited to | ||||||
19 | determinations of how to integrate the administration of this | ||||||
20 | Section with the requirements of the applicable Article and any | ||||||
21 | other applicable provisions of this Code. | ||||||
22 | (o) Public Pension Division. The Public Pension Division of | ||||||
23 | the Department of Insurance shall determine in October of each | ||||||
24 | year the annual unadjusted percentage increase (but not less | ||||||
25 | than zero) in the Consumer Price Index-U
for the 12 months | ||||||
26 | ending with the preceding September. The Division shall certify |
| |||||||
| |||||||
1 | its determination to the Board of Trustees of the State | ||||||
2 | Universities Retirement System by November 1 of each year.
| ||||||
3 | (p) Actual Employer Contributions. Payment of employer | ||||||
4 | contributions with respect to participants in the optional cash | ||||||
5 | balance plan shall be the responsibility of the actual | ||||||
6 | employer. These contributions shall be determined under and | ||||||
7 | paid in accordance with the provisions of Sections 15-155. | ||||||
8 | Optional additional contributions by employers may be paid in | ||||||
9 | any amount, but must be paid in the manner specified by the | ||||||
10 | applicable retirement system. | ||||||
11 | (q) Prospective Modification. The provisions set forth in | ||||||
12 | this Section are subject to prospective changes made by law | ||||||
13 | provided that any such changes shall not apply to any benefits | ||||||
14 | accrued under this Section prior to the effective date of any | ||||||
15 | amendatory Act of the General Assembly. | ||||||
16 | (s) Qualified Plan Status. No provision of this Section | ||||||
17 | shall be interpreted in a way that would cause the applicable | ||||||
18 | retirement system to cease to be a qualified plan under section | ||||||
19 | 461 (a) of the Internal Revenue Code of 1986. | ||||||
20 | (40 ILCS 5/2-105.1 new) | ||||||
21 | Sec. 2-105.1. Tier I employee. "Tier I employee": A | ||||||
22 | participant who first became a participant before January 1, | ||||||
23 | 2011. | ||||||
24 | (40 ILCS 5/2-105.2 new) |
| |||||||
| |||||||
1 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
2 | former Tier I employee who is receiving a retirement annuity. | ||||||
3 | (40 ILCS 5/2-107.9 new) | ||||||
4 | Sec. 2-107.9. Future increase in income. "Future increase | ||||||
5 | in income": Any increase in income in any form offered for | ||||||
6 | service as a member under this Article after June 30, 2013 that | ||||||
7 | would qualify as "salary", as defined under Section 2-108, but | ||||||
8 | for the fact that the increase in income was offered to the | ||||||
9 | member on the condition that it not qualify as salary and was | ||||||
10 | accepted by the member subject to that condition.
| ||||||
11 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
12 | Sec. 2-108. Salary. "Salary": (1) For members of the | ||||||
13 | General Assembly,
the total compensation paid to the member by | ||||||
14 | the State for one
year of service, including the additional | ||||||
15 | amounts, if any, paid to
the member as an officer pursuant to | ||||||
16 | Section 1 of "An Act
in relation to the compensation and | ||||||
17 | emoluments of the members of the
General Assembly", approved | ||||||
18 | December 6, 1907, as now or hereafter
amended.
| ||||||
19 | (2) For the State executive officers specified
in Section | ||||||
20 | 2-105, the total compensation paid to the member for one year
| ||||||
21 | of service.
| ||||||
22 | (3) For members of the System who are participants under | ||||||
23 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
24 | of the House of
Representatives or Secretary or Assistant |
| |||||||
| |||||||
1 | Secretary of the Senate, the
total compensation paid to the | ||||||
2 | member for one year of service, but not to
exceed the salary of | ||||||
3 | the highest salaried officer of the General Assembly.
| ||||||
4 | However, in the event that federal law results in any | ||||||
5 | participant
receiving imputed income based on the value of | ||||||
6 | group term life insurance
provided by the State, such imputed | ||||||
7 | income shall not be included in salary
for the purposes of this | ||||||
8 | Article.
| ||||||
9 | Notwithstanding any other provision of this Section, | ||||||
10 | "salary" does not include any future increase in income that is | ||||||
11 | offered for service as a member under this Article pursuant to | ||||||
12 | the requirements of subsection (c) of Section 2-110.3 and | ||||||
13 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
14 | active service, who has made an election under paragraph (2) of | ||||||
15 | subsection (a) or (a-5) of Section 2-110.3. | ||||||
16 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| ||||||
17 | (40 ILCS 5/2-110.3 new) | ||||||
18 | Sec. 2-110.3. Election by Tier I employees and Tier I | ||||||
19 | retirees. | ||||||
20 | (a) Each Tier I employee shall make an irrevocable election | ||||||
21 | either: | ||||||
22 | (1) to agree to the following: | ||||||
23 | (i) to have the amount of the automatic annual | ||||||
24 | increases in his or her retirement annuity that are | ||||||
25 | otherwise provided for in this Article calculated, |
| |||||||
| |||||||
1 | instead, as provided in subsection (a-1) of Section | ||||||
2 | 2-119.1; and | ||||||
3 | (ii) to have his or her eligibility for automatic | ||||||
4 | annual increases in retirement annuity postponed as | ||||||
5 | provided in subsection (a-2) of Section 2-119.1 and to | ||||||
6 | relinquish the additional increases provided in | ||||||
7 | subsection (b) of Section 2-119.1; or | ||||||
8 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
9 | paragraph (1) of this subsection. | ||||||
10 | The election required under this subsection (a) shall be | ||||||
11 | made by each Tier I employee no earlier than January 1, 2013 | ||||||
12 | and no later than May 31, 2013, except that: | ||||||
13 | (i) a person who becomes a Tier I employee under this | ||||||
14 | Article after January 1, 2013 must make the election under | ||||||
15 | this subsection (a) within 60 days after becoming a Tier I | ||||||
16 | employee; | ||||||
17 | (ii) a person who returns to active service as a Tier I | ||||||
18 | employee under this Article after January 1, 2013 and has | ||||||
19 | not yet made an election under this Section must make the | ||||||
20 | election under this subsection (a) within 60 days after | ||||||
21 | returning to active service as a Tier I employee; and | ||||||
22 | (iii) a person who made the election under subsection | ||||||
23 | (a-5) as a Tier I retiree remains bound by that election | ||||||
24 | and shall not make a later election under this subsection | ||||||
25 | (a). | ||||||
26 | If a Tier I employee fails for any reason to make a |
| |||||||
| |||||||
1 | required election under this subsection within the time | ||||||
2 | specified, then the employee shall be deemed to have made the | ||||||
3 | election under paragraph (2) of this subsection. | ||||||
4 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
5 | election either: | ||||||
6 | (1) to agree to the following: | ||||||
7 | (i) to have the amount of the automatic annual | ||||||
8 | increases in his or her retirement annuity that are | ||||||
9 | otherwise provided for in this Article calculated, | ||||||
10 | instead, as provided in subsection (a-1) of Section | ||||||
11 | 2-119.1; and | ||||||
12 | (ii) to have his or her eligibility for automatic | ||||||
13 | annual increases in retirement annuity postponed as | ||||||
14 | provided in subsection (a-2) of Section 2-119.1 and to | ||||||
15 | relinquish the additional increases provided in | ||||||
16 | subsection (b) of Section 2-119.1; or | ||||||
17 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
18 | paragraph (1) of this subsection. | ||||||
19 | The election required under this subsection (a-5) shall be | ||||||
20 | made by each Tier I retiree no earlier than January 1, 2013 and | ||||||
21 | no later than May 31, 2013, except that: | ||||||
22 | (i) a person who becomes a Tier I retiree under this | ||||||
23 | Article on or after January 1, 2013 must make the election | ||||||
24 | under this subsection (a-5) within 60 days after becoming a | ||||||
25 | Tier I retiree; and | ||||||
26 | (ii) a person who made the election under subsection |
| |||||||
| |||||||
1 | (a) as a Tier I employee remains bound by that election and | ||||||
2 | shall not make a later election under this subsection | ||||||
3 | (a-5). | ||||||
4 | If a Tier I retiree fails for any reason to make a required | ||||||
5 | election under this subsection within the time specified, then | ||||||
6 | the Tier I retiree shall be deemed to have made the election | ||||||
7 | under paragraph (2) of this subsection. | ||||||
8 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
9 | made or deemed to be made before June 1, 2013 shall take effect | ||||||
10 | on July 1, 2013. Elections that are made or deemed to be made | ||||||
11 | on or after June 1, 2013 shall take effect on the first day of | ||||||
12 | the month following the month in which the election is made or | ||||||
13 | deemed to be made. | ||||||
14 | (b) As adequate and legal consideration provided under this | ||||||
15 | amendatory Act of the 97th General Assembly for making the | ||||||
16 | election under paragraph (1) of subsection (a) of this Section, | ||||||
17 | any future increases in income offered for service as a member | ||||||
18 | under this Article to a Tier I employee who has made the | ||||||
19 | election under paragraph (1) of subsection (a) of this Section | ||||||
20 | shall be offered expressly and irrevocably as constituting | ||||||
21 | salary under Section 2-108. | ||||||
22 | As adequate and legal consideration provided under this | ||||||
23 | amendatory Act of the 97th General Assembly for making the | ||||||
24 | election under paragraph (1) of subsection (a-5) of this | ||||||
25 | Section, any future increases in income offered for service as | ||||||
26 | a member under this Article to a Tier I retiree who returns to |
| |||||||
| |||||||
1 | active service after having made the election under paragraph | ||||||
2 | (1) of subsection (a-5) of this Section shall be offered | ||||||
3 | expressly and irrevocably as constituting salary under Section | ||||||
4 | 2-108. | ||||||
5 | (c) A Tier I employee who makes the election under | ||||||
6 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
7 | subject to items (i) and (ii) set forth in paragraph (1) of | ||||||
8 | subsection (a) of this Section. However, any future increases | ||||||
9 | in income offered for service as a member under this Article to | ||||||
10 | a Tier I employee who has made the election under paragraph (2) | ||||||
11 | of subsection (a) of this Section shall be offered expressly | ||||||
12 | and irrevocably as not constituting salary under Section 2-108, | ||||||
13 | and the member may not accept any future increase in income | ||||||
14 | that is offered in violation of this requirement. | ||||||
15 | A Tier I retiree who makes the election under paragraph (2) | ||||||
16 | of subsection (a-5) of this Section shall not be subject to | ||||||
17 | items (i) and (ii) set forth in paragraph (1) of subsection | ||||||
18 | (a-5) of this Section. However, any future increases in income | ||||||
19 | offered for service as a member under this Article to a Tier I | ||||||
20 | retiree who returns to active service and has made the election | ||||||
21 | under paragraph (2) of subsection (a-5) of this Section shall | ||||||
22 | be offered expressly and irrevocably as not constituting salary | ||||||
23 | under Section 2-108, and the member may not accept any future | ||||||
24 | increase in income that is offered in violation of this | ||||||
25 | requirement. | ||||||
26 | (d) The System shall make a good faith effort to contact |
| |||||||
| |||||||
1 | each Tier I employee and Tier I retiree subject to this | ||||||
2 | Section. The System shall mail information describing the | ||||||
3 | required election to each Tier I employee and Tier I retiree by | ||||||
4 | United States Postal Service mail to his or her last known | ||||||
5 | address on file with the System. If the Tier I employee or Tier | ||||||
6 | I retiree is not responsive to other means of contact, it is | ||||||
7 | sufficient for the System to publish the details of any | ||||||
8 | required elections on its website or to publish those details | ||||||
9 | in a regularly published newsletter or other existing public | ||||||
10 | forum. | ||||||
11 | Tier I employees and Tier I retirees who are subject to | ||||||
12 | this Section shall be provided with an election packet | ||||||
13 | containing information regarding their options, as well as the | ||||||
14 | forms necessary to make the required election. Upon request, | ||||||
15 | the System shall offer Tier I employees and Tier I retirees an | ||||||
16 | opportunity to receive information from the System before | ||||||
17 | making the required election. The information may be provided | ||||||
18 | through video materials, group presentations, individual | ||||||
19 | consultation with a member or authorized representative of the | ||||||
20 | System in person or by telephone or other electronic means, or | ||||||
21 | any combination of those methods. The System shall not provide | ||||||
22 | advice or counseling with respect to which election a Tier I | ||||||
23 | employee or Tier I retiree should make or specific to the legal | ||||||
24 | or tax circumstances of or consequences to the Tier I employee | ||||||
25 | or Tier I retiree. | ||||||
26 | The System shall inform Tier I employees and Tier I |
| |||||||
| |||||||
1 | retirees in the election packet required under this subsection | ||||||
2 | that the Tier I employee or Tier I retiree may also wish to | ||||||
3 | obtain information and counsel relating to the election | ||||||
4 | required under this Section from any other available source, | ||||||
5 | including but not limited to labor organizations and private | ||||||
6 | counsel. | ||||||
7 | In no event shall the System, its staff, or the Board be | ||||||
8 | held liable for any information given to a member, beneficiary, | ||||||
9 | or annuitant regarding the elections under this Section. The | ||||||
10 | System shall coordinate with the Illinois Department of Central | ||||||
11 | Management Services and each other retirement system | ||||||
12 | administering an election in accordance with this amendatory | ||||||
13 | Act of the 97th General Assembly to provide information | ||||||
14 | concerning the impact of the election set forth in this | ||||||
15 | Section. | ||||||
16 | (e) Notwithstanding any other provision of law, any future | ||||||
17 | increases in income offered for service as a member must be | ||||||
18 | offered expressly and irrevocably as not constituting "salary" | ||||||
19 | under Section 2-108 to any Tier I employee, or Tier I retiree | ||||||
20 | returning to active service, who has made an election under | ||||||
21 | paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A | ||||||
22 | Tier I employee, or Tier I retiree returning to active service, | ||||||
23 | who has made an election under paragraph (2) or subsection (a) | ||||||
24 | or (a-5) of Section 2-110.3 shall not accept any future | ||||||
25 | increase in income that is offered for service as a member | ||||||
26 | under this Article in violation of the requirement set forth in |
| |||||||
| |||||||
1 | this subsection. | ||||||
2 | (f) A member's election under this Section is not a | ||||||
3 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
4 | of this Code. | ||||||
5 | (g) Qualified Plan Status. No provision of this Section | ||||||
6 | shall be interpreted in a way that would cause the System to | ||||||
7 | cease to be a qualified plan under section 461 (a) of the | ||||||
8 | Internal Revenue Code of 1986.
| ||||||
9 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| ||||||
10 | Sec. 2-119.1. Automatic increase in retirement annuity.
| ||||||
11 | (a) Except as provided in subsections (a-1) and (a-2), a A | ||||||
12 | participant who retires after June 30, 1967, and who has not
| ||||||
13 | received an initial increase under this Section before the | ||||||
14 | effective date
of this amendatory Act of 1991, shall, in | ||||||
15 | January or July next following
the first anniversary of | ||||||
16 | retirement, whichever occurs first, and in the same
month of | ||||||
17 | each year thereafter, but in no event prior to age 60, have the | ||||||
18 | amount
of the originally granted retirement annuity increased | ||||||
19 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
20 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
21 | thereafter, 3%. Annuitants who have received an initial
| ||||||
22 | increase under this subsection prior to the effective date of | ||||||
23 | this amendatory
Act of 1991 shall continue to receive their | ||||||
24 | annual increases in the same month
as the initial increase.
| ||||||
25 | (a-1) Notwithstanding any other provision of this Article, |
| |||||||
| |||||||
1 | for a Tier I employee or Tier I retiree who made the election | ||||||
2 | under paragraph (1) of subsection (a) or (a-5) of Section | ||||||
3 | 2-110.3, the amount of each automatic annual increase in | ||||||
4 | retirement annuity occurring on or after the effective date of | ||||||
5 | that election shall be 3% or one-half of the annual unadjusted | ||||||
6 | percentage increase, if any, in the Consumer Price Index-U for | ||||||
7 | the 12 months ending with the preceding September, whichever is | ||||||
8 | less, of the originally granted retirement annuity. For the | ||||||
9 | purposes of this Section, "Consumer Price Index-U" means
the | ||||||
10 | index published by the Bureau of Labor Statistics of the United | ||||||
11 | States
Department of Labor that measures the average change in | ||||||
12 | prices of goods and
services purchased by all urban consumers, | ||||||
13 | United States city average, all
items, 1982-84 = 100. | ||||||
14 | (a-2) For a Tier I employee or Tier I retiree who made the | ||||||
15 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
16 | Section 2-110.3, the monthly retirement annuity shall first be | ||||||
17 | subject to annual increases on the January 1 occurring on or | ||||||
18 | next after the attainment of age 67 or the January 1 occurring | ||||||
19 | on or next after the fifth anniversary of the annuity start | ||||||
20 | date, whichever occurs earlier. If on the effective date of the | ||||||
21 | election under paragraph (1) of subsection (a-5) of Section | ||||||
22 | 2-110.3 a Tier I retiree has already received an annual | ||||||
23 | increase under this Section but does not yet meet the new | ||||||
24 | eligibility requirements of this subsection, the annual | ||||||
25 | increases already received shall continue in force, but no | ||||||
26 | additional annual increase shall be granted until the Tier I |
| |||||||
| |||||||
1 | retiree meets the new eligibility requirements. | ||||||
2 | (b) Beginning January 1, 1990, for eligible participants | ||||||
3 | who remain
in service after attaining 20 years of creditable | ||||||
4 | service, the 3% increases
provided under subsection (a) shall | ||||||
5 | begin to accrue on the January 1 next
following the date upon | ||||||
6 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
7 | years of creditable service, whichever occurs later, and shall
| ||||||
8 | continue to accrue while the participant remains in service; | ||||||
9 | such increases
shall become payable on January 1 or July 1, | ||||||
10 | whichever occurs first, next
following the first anniversary of | ||||||
11 | retirement. For any person who has service
credit in the System | ||||||
12 | for the entire period from January 15, 1969 through
December | ||||||
13 | 31, 1992, regardless of the date of termination of service, the
| ||||||
14 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
15 | be deemed to
mean age 50.
| ||||||
16 | This subsection (b) does not apply to any person who first | ||||||
17 | becomes a
member of the System after August 8, 2003 ( the | ||||||
18 | effective date of Public Act 93-494) or (ii) has made the | ||||||
19 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
20 | Section 2-110.3; except that if on the effective date of the | ||||||
21 | election under paragraph (1) of subsection (a-5) of Section | ||||||
22 | 2-110.3 a Tier I retiree has already received a retirement | ||||||
23 | annuity based on any annual increases under this subsection, | ||||||
24 | those annual increases under this subsection shall continue in | ||||||
25 | force this amendatory Act of
the 93rd General Assembly .
| ||||||
26 | (b-5) Notwithstanding any other provision of this Article, |
| |||||||
| |||||||
1 | a participant who first becomes a participant on or after | ||||||
2 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
3 | shall, in January or July next following the first anniversary | ||||||
4 | of retirement, whichever occurs first, and in the same month of | ||||||
5 | each year thereafter, but in no event prior to age 67, have the | ||||||
6 | amount of the retirement annuity then being paid increased by | ||||||
7 | 3% or the annual unadjusted percentage increase in the Consumer | ||||||
8 | Price Index for All Urban Consumers as determined by the Public | ||||||
9 | Pension Division of the Department of Insurance under | ||||||
10 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
11 | (c) The foregoing provisions relating to automatic | ||||||
12 | increases are not
applicable to a participant who retires | ||||||
13 | before having made contributions
(at the rate prescribed in | ||||||
14 | Section 2-126) for automatic increases for less
than the | ||||||
15 | equivalent of one full year. However, in order to be eligible | ||||||
16 | for
the automatic increases, such a participant may make | ||||||
17 | arrangements to pay
to the system the amount required to bring | ||||||
18 | the total contributions for the
automatic increase to the | ||||||
19 | equivalent of one year's contributions based upon
his or her | ||||||
20 | last salary.
| ||||||
21 | (d) A participant who terminated service prior to July 1, | ||||||
22 | 1967, with at
least 14 years of service is entitled to an | ||||||
23 | increase in retirement annuity
beginning January, 1976, and to | ||||||
24 | additional increases in January of each
year thereafter.
| ||||||
25 | The initial increase shall be 1 1/2% of the originally | ||||||
26 | granted retirement
annuity multiplied by the number of full |
| |||||||
| |||||||
1 | years that the annuitant was in
receipt of such annuity prior | ||||||
2 | to January 1, 1972, plus 2% of the originally
granted | ||||||
3 | retirement annuity for each year after that date. The | ||||||
4 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
5 | originally granted
retirement annuity for each year through | ||||||
6 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
7 | (e) Beginning January 1, 1990, all automatic annual | ||||||
8 | increases payable
under this Section shall be calculated as a | ||||||
9 | percentage of the total annuity
payable at the time of the | ||||||
10 | increase, including previous increases granted
under this | ||||||
11 | Article.
| ||||||
12 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
13 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
14 | Sec. 2-124. Contributions by State.
| ||||||
15 | (a) Except as otherwise provided in this Section, the The | ||||||
16 | State shall make contributions to the System by
appropriations | ||||||
17 | of amounts which, together with the contributions of
| ||||||
18 | participants, interest earned on investments, and other income
| ||||||
19 | will meet the cost of maintaining and administering the System | ||||||
20 | on a 90%
funded basis in accordance with actuarial | ||||||
21 | recommendations.
| ||||||
22 | (b) The Board shall determine the amount of State
| ||||||
23 | contributions required for each fiscal year on the basis of the
| ||||||
24 | actuarial tables and other assumptions adopted by the Board and | ||||||
25 | the
prescribed rate of interest, using the formula in |
| |||||||
| |||||||
1 | subsection (c).
| ||||||
2 | (c) Except as otherwise provided in this Section, for For | ||||||
3 | State fiscal years 2012 through 2045, the minimum contribution
| ||||||
4 | to the System to be made by the State for each fiscal year | ||||||
5 | shall be an amount
determined by the System to be sufficient to | ||||||
6 | bring the total assets of the
System up to 90% of the total | ||||||
7 | actuarial liabilities of the System by the end of
State fiscal | ||||||
8 | year 2045. In making these determinations, the required State
| ||||||
9 | contribution shall be calculated each year as a level | ||||||
10 | percentage of payroll
over the years remaining to and including | ||||||
11 | fiscal year 2045 and shall be
determined under the projected | ||||||
12 | unit credit actuarial cost method.
| ||||||
13 | For State fiscal years 1996 through 2005, the State | ||||||
14 | contribution to
the System, as a percentage of the applicable | ||||||
15 | employee payroll, shall be
increased in equal annual increments | ||||||
16 | so that by State fiscal year 2011, the
State is contributing at | ||||||
17 | the rate required under this Section.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2006 is | ||||||
20 | $4,157,000.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State
contribution for State fiscal year 2007 is | ||||||
23 | $5,220,300.
| ||||||
24 | For each of State fiscal years 2008 through 2009, the State | ||||||
25 | contribution to
the System, as a percentage of the applicable | ||||||
26 | employee payroll, shall be
increased in equal annual increments |
| |||||||
| |||||||
1 | from the required State contribution for State fiscal year | ||||||
2 | 2007, so that by State fiscal year 2011, the
State is | ||||||
3 | contributing at the rate otherwise required under this Section.
| ||||||
4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State contribution for State fiscal year 2010 is | ||||||
6 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
7 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
8 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
9 | expenses determined by the System's share of total bond | ||||||
10 | proceeds, (ii) any amounts received from the General Revenue | ||||||
11 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
12 | proceeds due to the issuance of discounted bonds, if | ||||||
13 | applicable. | ||||||
14 | Notwithstanding any other provision of this Article, the
| ||||||
15 | total required State contribution for State fiscal year 2011 is
| ||||||
16 | the amount recertified by the System on or before April 1, 2011 | ||||||
17 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
18 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
19 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
20 | bond sale
expenses determined by the System's share of total | ||||||
21 | bond
proceeds, (ii) any amounts received from the General | ||||||
22 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
23 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
24 | applicable. | ||||||
25 | Except as otherwise provided in this Section, beginning | ||||||
26 | Beginning in State fiscal year 2046, the minimum State |
| |||||||
| |||||||
1 | contribution for
each fiscal year shall be the amount needed to | ||||||
2 | maintain the total assets of
the System at 90% of the total | ||||||
3 | actuarial liabilities of the System.
| ||||||
4 | Amounts received by the System pursuant to Section 25 of | ||||||
5 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
6 | Finance Act in any fiscal year do not reduce and do not | ||||||
7 | constitute payment of any portion of the minimum State | ||||||
8 | contribution required under this Article in that fiscal year. | ||||||
9 | Such amounts shall not reduce, and shall not be included in the | ||||||
10 | calculation of, the required State contributions under this | ||||||
11 | Article in any future year until the System has reached a | ||||||
12 | funding ratio of at least 90%. A reference in this Article to | ||||||
13 | the "required State contribution" or any substantially similar | ||||||
14 | term does not include or apply to any amounts payable to the | ||||||
15 | System under Section 25 of the Budget Stabilization Act.
| ||||||
16 | Notwithstanding any other provision of this Section, the | ||||||
17 | required State
contribution for State fiscal year 2005 and for | ||||||
18 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
19 | under this Section and
certified under Section 2-134, shall not | ||||||
20 | exceed an amount equal to (i) the
amount of the required State | ||||||
21 | contribution that would have been calculated under
this Section | ||||||
22 | for that fiscal year if the System had not received any | ||||||
23 | payments
under subsection (d) of Section 7.2 of the General | ||||||
24 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
25 | total debt service payments for that fiscal
year on the bonds | ||||||
26 | issued in fiscal year 2003 for the purposes of that Section |
| |||||||
| |||||||
1 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
2 | the same as the System's portion of
the total moneys | ||||||
3 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
4 | Obligation Bond Act. In determining this maximum for State | ||||||
5 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
6 | in item (i) shall be increased, as a percentage of the | ||||||
7 | applicable employee payroll, in equal increments calculated | ||||||
8 | from the sum of the required State contribution for State | ||||||
9 | fiscal year 2007 plus the applicable portion of the State's | ||||||
10 | total debt service payments for fiscal year 2007 on the bonds | ||||||
11 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
12 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
13 | 2011, the
State is contributing at the rate otherwise required | ||||||
14 | under this Section.
| ||||||
15 | (c-1) If at least 50% of Tier I employees making an | ||||||
16 | election under Section 2-110.3 before June 1, 2013 choose the | ||||||
17 | option under paragraph (1) of subsection (a) of that Section, | ||||||
18 | then: | ||||||
19 | (1) In lieu of the State contributions required under | ||||||
20 | subsection (c), for State fiscal years 2014 through 2043 | ||||||
21 | the minimum contribution
to the System to be made by the | ||||||
22 | State for each fiscal year shall be an amount
determined by | ||||||
23 | the System to be equal to the sum of (1) the State's | ||||||
24 | portion of the projected normal cost for that fiscal year, | ||||||
25 | plus (2) an amount sufficient to bring the total assets of | ||||||
26 | the
System up to 100% of the total actuarial liabilities of |
| |||||||
| |||||||
1 | the System by the end of
State fiscal year 2043. In making | ||||||
2 | these determinations, the required State
contribution | ||||||
3 | shall be calculated each year as a level percentage of | ||||||
4 | payroll
over the years remaining to and including fiscal | ||||||
5 | year 2043 and shall be
determined under the projected unit | ||||||
6 | credit actuarial cost method. | ||||||
7 | (2) Beginning in State fiscal year 2043, the minimum | ||||||
8 | State contribution for each fiscal year shall be the amount | ||||||
9 | needed to maintain the total assets of the System at 100% | ||||||
10 | of the total actuarial liabilities of the System. | ||||||
11 | (c-2) If less than 50% of Tier I employees making an | ||||||
12 | election under Section 2-110.3 before June 1, 2013 choose the | ||||||
13 | option under paragraph (1) of subsection (a) of that Section, | ||||||
14 | then the annual required contribution to the System to be made | ||||||
15 | by the State shall be determined under subsection (c) of this | ||||||
16 | Section, instead of the annual required contribution otherwise | ||||||
17 | specified in subsection (c-1) of this Section. | ||||||
18 | (d) For purposes of determining the required State | ||||||
19 | contribution to the System, the value of the System's assets | ||||||
20 | shall be equal to the actuarial value of the System's assets, | ||||||
21 | which shall be calculated as follows: | ||||||
22 | As of June 30, 2008, the actuarial value of the System's | ||||||
23 | assets shall be equal to the market value of the assets as of | ||||||
24 | that date. In determining the actuarial value of the System's | ||||||
25 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
26 | gains or losses from investment return incurred in a fiscal |
| |||||||
| |||||||
1 | year shall be recognized in equal annual amounts over the | ||||||
2 | 5-year period following that fiscal year. | ||||||
3 | (e) For purposes of determining the required State | ||||||
4 | contribution to the system for a particular year, the actuarial | ||||||
5 | value of assets shall be assumed to earn a rate of return equal | ||||||
6 | to the system's actuarially assumed rate of return. | ||||||
7 | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | ||||||
8 | 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff. | ||||||
9 | 3-18-11; revised 4-6-11.)
| ||||||
10 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
11 | Sec. 2-134. To certify required State contributions and | ||||||
12 | submit vouchers.
| ||||||
13 | (a) The Board shall certify to the Governor on or before | ||||||
14 | December 15 of each
year until December 15, 2011 the amount of | ||||||
15 | the required State contribution to the System for the next
| ||||||
16 | fiscal year and shall specifically identify the System's | ||||||
17 | projected State normal cost for that fiscal year . The | ||||||
18 | certification shall include a copy of the actuarial
| ||||||
19 | recommendations upon which it is based and shall specifically | ||||||
20 | identify the System's projected State normal cost for that | ||||||
21 | fiscal year .
| ||||||
22 | On or before November 1 of each year, beginning November 1, | ||||||
23 | 2012, the Board shall submit to the State Actuary, the | ||||||
24 | Governor, and the General Assembly a proposed certification of | ||||||
25 | the amount of the required State contribution to the System for |
| |||||||
| |||||||
1 | the next fiscal year, along with all of the actuarial | ||||||
2 | assumptions, calculations, and data upon which that proposed | ||||||
3 | certification is based. On or before January 1 of each year | ||||||
4 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
5 | preliminary report concerning the proposed certification and | ||||||
6 | identifying, if necessary, recommended changes in actuarial | ||||||
7 | assumptions that the Board must consider before finalizing its | ||||||
8 | certification of the required State contributions. On or before | ||||||
9 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
10 | shall certify to the Governor and the General Assembly the | ||||||
11 | amount of the required State contribution for the next fiscal | ||||||
12 | year. The Board's certification must note any deviations from | ||||||
13 | the State Actuary's recommended changes, the reason or reasons | ||||||
14 | for not following the State Actuary's recommended changes, and | ||||||
15 | the fiscal impact of not following the State Actuary's | ||||||
16 | recommended changes on the required State contribution. | ||||||
17 | On or before May 1, 2004, the Board shall recalculate and | ||||||
18 | recertify to
the Governor the amount of the required State | ||||||
19 | contribution to the System for
State fiscal year 2005, taking | ||||||
20 | into account the amounts appropriated to and
received by the | ||||||
21 | System under subsection (d) of Section 7.2 of the General
| ||||||
22 | Obligation Bond Act.
| ||||||
23 | On or before July 1, 2005, the Board shall recalculate and | ||||||
24 | recertify
to the Governor the amount of the required State
| ||||||
25 | contribution to the System for State fiscal year 2006, taking | ||||||
26 | into account the changes in required State contributions made |
| |||||||
| |||||||
1 | by this amendatory Act of the 94th General Assembly.
| ||||||
2 | On or before April 1, 2011, the Board shall recalculate and | ||||||
3 | recertify to the Governor the amount of the required State | ||||||
4 | contribution to the System for State fiscal year 2011, applying | ||||||
5 | the changes made by Public Act 96-889 to the System's assets | ||||||
6 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
7 | was approved on that date. | ||||||
8 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
9 | possible after the
15th day of each month the Board shall | ||||||
10 | submit vouchers for payment of State
contributions to the | ||||||
11 | System, in a total monthly amount of one-twelfth of the
| ||||||
12 | required annual State contribution certified under subsection | ||||||
13 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
14 | General Assembly through June 30, 2004, the Board shall not
| ||||||
15 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
16 | of the
fiscal year 2004 certified contribution amount | ||||||
17 | determined
under this Section after taking into consideration | ||||||
18 | the transfer to the
System under subsection (d) of Section | ||||||
19 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
20 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
21 | funds appropriated to the System for that fiscal year. If in | ||||||
22 | any month
the amount remaining unexpended from all other | ||||||
23 | appropriations to the System for
the applicable fiscal year | ||||||
24 | (including the appropriations to the System under
Section 8.12 | ||||||
25 | of the State Finance Act and Section 1 of the State Pension | ||||||
26 | Funds
Continuing Appropriation Act) is less than the amount |
| |||||||
| |||||||
1 | lawfully vouchered under
this Section, the difference shall be | ||||||
2 | paid from the General Revenue Fund under
the continuing | ||||||
3 | appropriation authority provided in Section 1.1 of the State
| ||||||
4 | Pension Funds Continuing Appropriation Act.
| ||||||
5 | (c) The full amount of any annual appropriation for the | ||||||
6 | System for
State fiscal year 1995 shall be transferred and made | ||||||
7 | available to the System
at the beginning of that fiscal year at | ||||||
8 | the request of the Board.
Any excess funds remaining at the end | ||||||
9 | of any fiscal year from appropriations
shall be retained by the | ||||||
10 | System as a general reserve to meet the System's
accrued | ||||||
11 | liabilities.
| ||||||
12 | (Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11; | ||||||
13 | 96-1511, eff. 1-27-11.)
| ||||||
14 | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| ||||||
15 | Sec. 7-109. Employee.
| ||||||
16 | (1) "Employee" means any person who:
| ||||||
17 | (a) 1. Receives earnings as payment for the performance | ||||||
18 | of personal
services or official duties out of the | ||||||
19 | general fund of a municipality,
or out of any special | ||||||
20 | fund or funds controlled by a municipality, or by
an | ||||||
21 | instrumentality thereof, or a participating | ||||||
22 | instrumentality, including,
in counties, the fees or | ||||||
23 | earnings of any county fee office; and
| ||||||
24 | 2. Under the usual common law rules applicable in | ||||||
25 | determining the
employer-employee relationship, has |
| |||||||
| |||||||
1 | the status of an employee with a
municipality, or any | ||||||
2 | instrumentality thereof, or a participating
| ||||||
3 | instrumentality, including aldermen, county | ||||||
4 | supervisors and other
persons (excepting those | ||||||
5 | employed as independent contractors) who are
paid | ||||||
6 | compensation, fees, allowances or other emolument for | ||||||
7 | official
duties, and, in counties, the several county | ||||||
8 | fee offices.
| ||||||
9 | (b) Serves as a township treasurer appointed under the | ||||||
10 | School
Code, as heretofore or hereafter amended, and
who | ||||||
11 | receives for such services regular compensation as | ||||||
12 | distinguished
from per diem compensation, and any regular | ||||||
13 | employee in the office of
any township treasurer whether or | ||||||
14 | not his earnings are paid from the
income of the permanent | ||||||
15 | township fund or from funds subject to
distribution to the | ||||||
16 | several school districts and parts of school
districts as | ||||||
17 | provided in the School Code, or from both such sources; or | ||||||
18 | is the chief executive officer, chief educational officer, | ||||||
19 | chief fiscal officer, or other employee of a Financial | ||||||
20 | Oversight Panel established pursuant to Article 1H of the | ||||||
21 | School Code, other than a superintendent or certified | ||||||
22 | school business official, except that such person shall not | ||||||
23 | be treated as an employee under this Section if that person | ||||||
24 | has negotiated with the Financial Oversight Panel, in | ||||||
25 | conjunction with the school district, a contractual | ||||||
26 | agreement for exclusion from this Section.
|
| |||||||
| |||||||
1 | (c) Holds an elective office in a municipality, | ||||||
2 | instrumentality
thereof or participating instrumentality.
| ||||||
3 | (2) "Employee" does not include persons who:
| ||||||
4 | (a) Are eligible for inclusion under any of the | ||||||
5 | following laws:
| ||||||
6 | 1. "An Act in relation to an Illinois State | ||||||
7 | Teachers' Pension and
Retirement Fund", approved May | ||||||
8 | 27, 1915, as amended;
| ||||||
9 | 2. Articles 15 and 16 of this Code.
| ||||||
10 | However, such persons shall be included as employees to | ||||||
11 | the extent of
earnings that are not eligible for inclusion | ||||||
12 | under the foregoing laws
for services not of an | ||||||
13 | instructional nature of any kind.
| ||||||
14 | However, any member of the armed forces who is employed | ||||||
15 | as a teacher
of subjects in the Reserve Officers Training | ||||||
16 | Corps of any school and who
is not certified under the law | ||||||
17 | governing the certification of teachers
shall be included | ||||||
18 | as an employee.
| ||||||
19 | (b) Are designated by the governing body of a | ||||||
20 | municipality in which a
pension fund is required by law to | ||||||
21 | be established for policemen or
firemen, respectively, as | ||||||
22 | performing police or fire protection duties,
except that | ||||||
23 | when such persons are the heads of the police or fire
| ||||||
24 | department and are not eligible to be included within any | ||||||
25 | such pension
fund, they shall be included within this | ||||||
26 | Article; provided, that such
persons shall not be excluded |
| |||||||
| |||||||
1 | to the extent of concurrent service and
earnings not | ||||||
2 | designated as being for police or fire protection duties.
| ||||||
3 | However, (i) any head of a police department who was a | ||||||
4 | participant under this
Article immediately before October | ||||||
5 | 1, 1977 and did not elect, under Section
3-109 of this Act, | ||||||
6 | to participate in a police pension fund shall be an
| ||||||
7 | "employee", and (ii) any chief of police who elects to | ||||||
8 | participate in this
Fund under Section 3-109.1 of this | ||||||
9 | Code, regardless of whether such person
continues to be | ||||||
10 | employed as chief of police or is employed in some other
| ||||||
11 | rank or capacity within the police department, shall be an | ||||||
12 | employee under
this Article for so long as such person is | ||||||
13 | employed to perform police
duties by a participating | ||||||
14 | municipality and has not lawfully rescinded that
election. | ||||||
15 | (c) After August 26, 2011 ( the effective date of Public | ||||||
16 | Act 97-609) this amendatory Act of the 97th General | ||||||
17 | Assembly , are contributors to or eligible to contribute to | ||||||
18 | a Taft-Hartley pension plan established on or before June | ||||||
19 | 1, 2011 and are employees of a theatre, arena, or | ||||||
20 | convention center that is located in a municipality located | ||||||
21 | in a county with a population greater than 5,000,000, and | ||||||
22 | to which the participating municipality is required to | ||||||
23 | contribute as the person's employer based on earnings from | ||||||
24 | the municipality. Nothing in this paragraph shall affect | ||||||
25 | service credit or creditable service for any period of | ||||||
26 | service prior to August 26, 2011 the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 97th General Assembly , and this | ||||||
2 | paragraph shall not apply to individuals who are | ||||||
3 | participating in the Fund prior to August 26, 2011 the | ||||||
4 | effective date of this amendatory Act of the 97th General | ||||||
5 | Assembly .
| ||||||
6 | (d) Become an employee of any of the following | ||||||
7 | participating instrumentalities on or after the effective | ||||||
8 | date of this amendatory Act of the 97th General Assembly: | ||||||
9 | the Illinois Municipal League; the Illinois Association of | ||||||
10 | Park Districts; the Illinois Supervisors, County | ||||||
11 | Commissioners and Superintendents of Highways Association; | ||||||
12 | the Township School District Trustees; the United Counties | ||||||
13 | Council; or the Will County Governmental League. | ||||||
14 | (3) All persons, including, without limitation, public | ||||||
15 | defenders and
probation officers, who receive earnings from | ||||||
16 | general or special funds
of a county for performance of | ||||||
17 | personal services or official duties
within the territorial | ||||||
18 | limits of the county, are employees of the county
(unless | ||||||
19 | excluded by subsection (2) of this Section) notwithstanding | ||||||
20 | that
they may be appointed by and are subject to the direction | ||||||
21 | of a person or
persons other than a county board or a county | ||||||
22 | officer. It is hereby
established that an employer-employee | ||||||
23 | relationship under the usual
common law rules exists between | ||||||
24 | such employees and the county paying
their salaries by reason | ||||||
25 | of the fact that the county boards fix their
rates of | ||||||
26 | compensation, appropriate funds for payment of their earnings
|
| |||||||
| |||||||
1 | and otherwise exercise control over them. This finding and this
| ||||||
2 | amendatory Act shall apply to all such employees from the date | ||||||
3 | of
appointment whether such date is prior to or after the | ||||||
4 | effective date of
this amendatory Act and is intended to | ||||||
5 | clarify existing law pertaining
to their status as | ||||||
6 | participating employees in the Fund.
| ||||||
7 | (Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11; | ||||||
8 | revised 9-28-11.)
| ||||||
9 | (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
| ||||||
10 | Sec. 14-106. Membership service credit.
| ||||||
11 | (a) After January 1, 1944, all
service of a member since he | ||||||
12 | last became a member with respect to which
contributions are | ||||||
13 | made shall count as membership service; provided, that
for | ||||||
14 | service on and after July 1, 1950, 12 months of service shall
| ||||||
15 | constitute a year of membership service, the completion of 15 | ||||||
16 | days or
more of service during any month shall constitute 1 | ||||||
17 | month of membership
service, 8 to 15 days shall constitute 1/2 | ||||||
18 | month of membership service
and less than 8 days shall | ||||||
19 | constitute 1/4 month of membership service.
The payroll record | ||||||
20 | of each department shall constitute conclusive
evidence of the | ||||||
21 | record of service rendered by a member.
| ||||||
22 | (b) For a member who is employed and paid on an | ||||||
23 | academic-year basis
rather than on a 12-month annual basis, | ||||||
24 | employment for a full academic year
shall constitute a full | ||||||
25 | year of membership service, except that the member
shall not |
| |||||||
| |||||||
1 | receive more than one year of membership service credit (plus | ||||||
2 | any
additional service credit granted for unused sick leave) | ||||||
3 | for service during
any 12-month period. This subsection (b) | ||||||
4 | applies to all such service for which
the member has not begun | ||||||
5 | to receive a retirement annuity before January 1,
2001.
| ||||||
6 | (c) A member who first participated in this System before | ||||||
7 | the effective date of this amendatory Act of the 97th General | ||||||
8 | Assembly shall be entitled to additional service credit, under
| ||||||
9 | rules prescribed by the Board, for accumulated unused sick | ||||||
10 | leave credited
to his account in the last Department on the | ||||||
11 | date of withdrawal from
service or for any period for which he | ||||||
12 | would have been eligible to receive
benefits under a sick pay | ||||||
13 | plan authorized by law, if he had suffered a
sickness or | ||||||
14 | accident on the date of withdrawal from service. It shall be | ||||||
15 | the
responsibility of the last Department to certify to the | ||||||
16 | Board the length of
time salary or benefits would have been | ||||||
17 | paid to the member based upon the
accumulated unused sick leave | ||||||
18 | or the applicable sick pay plan if he had
become entitled | ||||||
19 | thereto because of sickness on the date that his status as
an | ||||||
20 | employee terminated. This period of service credit granted | ||||||
21 | under this
paragraph shall not be considered in determining the | ||||||
22 | date the retirement
annuity is to begin, or final average | ||||||
23 | compensation.
| ||||||
24 | Service credit is not available for unused sick leave | ||||||
25 | accumulated by a person who first participates in this System | ||||||
26 | on or after the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 97th General Assembly. | ||||||
2 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
3 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
4 | Sec. 14-135.08. To certify required State contributions. | ||||||
5 | (a)
To certify to the Governor and to each department, on | ||||||
6 | or before
November 15 of each year until November 15, 2011 , the | ||||||
7 | required rate for State contributions to the
System for the | ||||||
8 | next State fiscal year, as determined under subsection (b) of
| ||||||
9 | Section 14-131. The certification to the Governor under this | ||||||
10 | subsection (a) shall include a copy of the
actuarial | ||||||
11 | recommendations upon which the rate is based and shall | ||||||
12 | specifically identify the System's projected State normal cost | ||||||
13 | for that fiscal year .
| ||||||
14 | (a-5) On or before November 1 of each year, beginning | ||||||
15 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
16 | the Governor, and the General Assembly a proposed certification | ||||||
17 | of the amount of the required State contribution to the System | ||||||
18 | for the next fiscal year, along with all of the actuarial | ||||||
19 | assumptions, calculations, and data upon which that proposed | ||||||
20 | certification is based. On or before January 1 of each year | ||||||
21 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
22 | preliminary report concerning the proposed certification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. On or before |
| |||||||
| |||||||
1 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
2 | shall certify to the Governor and the General Assembly the | ||||||
3 | amount of the required State contribution for the next fiscal | ||||||
4 | year. The Board's certification must note any deviations from | ||||||
5 | the State Actuary's recommended changes, the reason or reasons | ||||||
6 | for not following the State Actuary's recommended changes, and | ||||||
7 | the fiscal impact of not following the State Actuary's | ||||||
8 | recommended changes on the required State contribution. | ||||||
9 | (b) The certifications under subsections (a) and (a-5) | ||||||
10 | certification shall include an additional amount necessary to | ||||||
11 | pay all principal of and interest on those general obligation | ||||||
12 | bonds due the next fiscal year authorized by Section 7.2(a) of | ||||||
13 | the General Obligation Bond Act and issued to provide the | ||||||
14 | proceeds deposited by the State with the System in July 2003, | ||||||
15 | representing deposits other than amounts reserved under | ||||||
16 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
17 | fiscal year 2005, the Board shall make a supplemental | ||||||
18 | certification of the additional amount necessary to pay all | ||||||
19 | principal of and interest on those general obligation bonds due | ||||||
20 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
21 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
22 | the proceeds deposited by the State with the System in July | ||||||
23 | 2003, representing deposits other than amounts reserved under | ||||||
24 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
25 | practical after the effective date of this amendatory Act of | ||||||
26 | the 93rd General Assembly.
|
| |||||||
| |||||||
1 | On or before May 1, 2004, the Board shall recalculate and | ||||||
2 | recertify
to the Governor and to each department the amount of | ||||||
3 | the required State
contribution to the System and the required | ||||||
4 | rates for State contributions
to the System for State fiscal | ||||||
5 | year 2005, taking into account the amounts
appropriated to and | ||||||
6 | received by the System under subsection (d) of Section
7.2 of | ||||||
7 | the General Obligation Bond Act.
| ||||||
8 | On or before July 1, 2005, the Board shall recalculate and | ||||||
9 | recertify
to the Governor and to each department the amount of | ||||||
10 | the required State
contribution to the System and the required | ||||||
11 | rates for State contributions
to the System for State fiscal | ||||||
12 | year 2006, taking into account the changes in required State | ||||||
13 | contributions made by this amendatory Act of the 94th General | ||||||
14 | Assembly.
| ||||||
15 | On or before April 1, 2011, the Board shall recalculate and | ||||||
16 | recertify to the Governor and to each department the amount of | ||||||
17 | the required State contribution to the System for State fiscal | ||||||
18 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
19 | the System's assets and liabilities as of June 30, 2009 as | ||||||
20 | though Public Act 96-889 was approved on that date. | ||||||
21 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| ||||||
22 | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| ||||||
23 | Sec. 15-107. Employee.
| ||||||
24 | (a) "Employee" means any member of the educational, | ||||||
25 | administrative,
secretarial, clerical, mechanical, labor or |
| |||||||
| |||||||
1 | other staff of an employer
whose employment is permanent and | ||||||
2 | continuous or who is employed in a
position in which services | ||||||
3 | are expected to be rendered on a continuous
basis for at least | ||||||
4 | 4 months or one academic term, whichever is less, who
(A) | ||||||
5 | receives payment for personal services on a warrant issued | ||||||
6 | pursuant to
a payroll voucher certified by an employer and | ||||||
7 | drawn by the State
Comptroller upon the State Treasurer or by | ||||||
8 | an employer upon trust, federal
or other funds, or (B) is on a | ||||||
9 | leave of absence without pay. Employment
which is irregular, | ||||||
10 | intermittent or temporary shall not be considered
continuous | ||||||
11 | for purposes of this paragraph.
| ||||||
12 | However, a person is not an "employee" if he or she:
| ||||||
13 | (1) is a student enrolled in and regularly attending | ||||||
14 | classes in a
college or university which is an employer, | ||||||
15 | and is employed on a temporary
basis at less than full | ||||||
16 | time;
| ||||||
17 | (2) is currently receiving a retirement annuity or a | ||||||
18 | disability
retirement annuity under Section 15-153.2 from | ||||||
19 | this System;
| ||||||
20 | (3) is on a military leave of absence;
| ||||||
21 | (4) is eligible to participate in the Federal Civil | ||||||
22 | Service Retirement
System and is currently making | ||||||
23 | contributions to that system based upon
earnings paid by an | ||||||
24 | employer;
| ||||||
25 | (5) is on leave of absence without pay for more than 60 | ||||||
26 | days
immediately following termination of disability |
| |||||||
| |||||||
1 | benefits under this
Article;
| ||||||
2 | (6) is hired after June 30, 1979 as a public service | ||||||
3 | employment program
participant under the Federal | ||||||
4 | Comprehensive Employment and Training Act
and receives | ||||||
5 | earnings in whole or in part from funds provided under that
| ||||||
6 | Act; or
| ||||||
7 | (7) is employed on or after July 1, 1991 to perform | ||||||
8 | services that
are excluded by subdivision (a)(7)(f) or | ||||||
9 | (a)(19) of Section 210 of the
federal Social Security Act | ||||||
10 | from the definition of employment given in that
Section (42 | ||||||
11 | U.S.C. 410).
| ||||||
12 | (b) Any employer may, by filing a written notice with the | ||||||
13 | board, exclude
from the definition of "employee" all persons | ||||||
14 | employed pursuant to a federally
funded contract entered into | ||||||
15 | after July 1, 1982 with a federal military
department in a | ||||||
16 | program providing training in military courses to federal
| ||||||
17 | military personnel on a military site owned by the United | ||||||
18 | States Government,
if this exclusion is not prohibited by the | ||||||
19 | federally funded contract or
federal laws or rules governing | ||||||
20 | the administration of the contract.
| ||||||
21 | (c) Any person appointed by the Governor under the Civil | ||||||
22 | Administrative
Code of the State is an employee, if he or she | ||||||
23 | is a participant in this
system on the effective date of the | ||||||
24 | appointment.
| ||||||
25 | (d) A participant on lay-off status under civil service | ||||||
26 | rules is
considered an employee for not more than 120 days from |
| |||||||
| |||||||
1 | the date of the lay-off.
| ||||||
2 | (e) A participant is considered an employee during (1) the | ||||||
3 | first 60 days
of disability leave, (2) the period, not to | ||||||
4 | exceed one year, in which his
or her eligibility for disability | ||||||
5 | benefits is being considered by the board
or reviewed by the | ||||||
6 | courts, and (3) the period he or she receives disability
| ||||||
7 | benefits under the provisions of Section 15-152, workers' | ||||||
8 | compensation or
occupational disease benefits, or disability | ||||||
9 | income under an insurance
contract financed wholly or partially | ||||||
10 | by the employer.
| ||||||
11 | (f) Absences without pay, other than formal leaves of | ||||||
12 | absence, of less
than 30 calendar days, are not considered as | ||||||
13 | an interruption of a person's
status as an employee. If such | ||||||
14 | absences during any period of 12 months
exceed 30 work days, | ||||||
15 | the employee status of the person is considered as
interrupted | ||||||
16 | as of the 31st work day.
| ||||||
17 | (g) A staff member whose employment contract requires | ||||||
18 | services during
an academic term is to be considered an | ||||||
19 | employee during the summer and
other vacation periods, unless | ||||||
20 | he or she declines an employment contract
for the succeeding | ||||||
21 | academic term or his or her employment status is
otherwise | ||||||
22 | terminated, and he or she receives no earnings during these | ||||||
23 | periods.
| ||||||
24 | (h) An individual who was a participating employee employed | ||||||
25 | in the fire
department of the University of Illinois's | ||||||
26 | Champaign-Urbana campus immediately
prior to the elimination |
| |||||||
| |||||||
1 | of that fire department and who immediately after the
| ||||||
2 | elimination of that fire department became employed by the fire | ||||||
3 | department of
the City of Urbana or the City of Champaign shall | ||||||
4 | continue to be considered as
an employee for purposes of this | ||||||
5 | Article for so long as the individual remains
employed as a | ||||||
6 | firefighter by the City of Urbana or the City of Champaign. The
| ||||||
7 | individual shall cease to be considered an employee under this | ||||||
8 | subsection (h)
upon the first termination of the individual's | ||||||
9 | employment as a firefighter by
the City of Urbana or the City | ||||||
10 | of Champaign.
| ||||||
11 | (i) An individual who is employed on a full-time basis as | ||||||
12 | an officer
or employee of a statewide teacher organization that | ||||||
13 | serves System
participants or an officer of a national teacher | ||||||
14 | organization that serves
System participants may participate | ||||||
15 | in the System and shall be deemed an
employee, provided that | ||||||
16 | (1) the individual has previously earned
creditable service | ||||||
17 | under this Article, (2) the individual files with the
System an | ||||||
18 | irrevocable election to become a participant before the | ||||||
19 | effective date of this amendatory Act of the 97th General | ||||||
20 | Assembly, (3) the
individual does not receive credit for that | ||||||
21 | employment under any other Article
of this Code, and (4) the | ||||||
22 | individual first became a full-time employee of the teacher | ||||||
23 | organization and becomes a participant before the effective | ||||||
24 | date of this amendatory Act of the 97th General Assembly. An | ||||||
25 | employee under this subsection (i) is responsible for paying
to | ||||||
26 | the System both (A) employee contributions based on the actual |
| |||||||
| |||||||
1 | compensation
received for service with the teacher | ||||||
2 | organization and (B) employer
contributions equal to the normal | ||||||
3 | costs (as defined in Section 15-155)
resulting from that | ||||||
4 | service; all or any part of these contributions may be
paid on | ||||||
5 | the employee's behalf or picked up for tax purposes (if | ||||||
6 | authorized
under federal law) by the teacher organization.
| ||||||
7 | A person who is an employee as defined in this subsection | ||||||
8 | (i) may establish
service credit for similar employment prior | ||||||
9 | to becoming an employee under this
subsection by paying to the | ||||||
10 | System for that employment the contributions
specified in this | ||||||
11 | subsection, plus interest at the effective rate from the
date | ||||||
12 | of service to the date of payment. However, credit shall not be | ||||||
13 | granted
under this subsection for any such prior employment for | ||||||
14 | which the applicant
received credit under any other provision | ||||||
15 | of this Code, or during which
the applicant was on a leave of | ||||||
16 | absence under Section 15-113.2.
| ||||||
17 | (j) A person employed by the State Board of Higher | ||||||
18 | Education in a position with the Illinois Century Network as of | ||||||
19 | June 30, 2004 shall be considered to be an employee for so long | ||||||
20 | as he or she remains continuously employed after that date by | ||||||
21 | the Department of Central Management Services in a position | ||||||
22 | with the Illinois Century Network, the Bureau of Communication | ||||||
23 | and Computer Services, or, if applicable, any successor bureau
| ||||||
24 | and meets the requirements of subsection (a).
| ||||||
25 | (k) In the case of doubt as to whether any person is an | ||||||
26 | employee within the meaning of this Section, the decision of |
| |||||||
| |||||||
1 | the Board shall be final. | ||||||
2 | (Source: P.A. 97-651, eff. 1-5-12.)
| ||||||
3 | (40 ILCS 5/15-107.1 new) | ||||||
4 | Sec. 15-107.1. Tier I employee. "Tier I employee": An | ||||||
5 | employee under this Article, other than a participant in the | ||||||
6 | self-managed plan under Section 15-158.2, who first became a | ||||||
7 | member or participant before January 1, 2011 under any | ||||||
8 | reciprocal retirement system or pension fund established under | ||||||
9 | this Code other than a retirement system or pension fund | ||||||
10 | established under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
11 | (40 ILCS 5/15-107.2 new) | ||||||
12 | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former | ||||||
13 | Tier I employee who is receiving a retirement annuity. | ||||||
14 | A person does not become a Tier I retiree by virtue of | ||||||
15 | receiving a reversionary, survivors, beneficiary, or | ||||||
16 | disability annuity.
| ||||||
17 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
18 | Sec. 15-111. Earnings.
"Earnings": An amount paid for | ||||||
19 | personal services equal to the sum of
the basic compensation | ||||||
20 | plus extra compensation for summer teaching,
overtime or other | ||||||
21 | extra service. For periods for which an employee receives
| ||||||
22 | service credit under subsection (c) of Section 15-113.1 or | ||||||
23 | Section 15-113.2,
earnings are equal to the basic compensation |
| |||||||
| |||||||
1 | on which contributions are
paid by the employee during such | ||||||
2 | periods. Compensation for employment which is
irregular, | ||||||
3 | intermittent and temporary shall not be considered earnings, | ||||||
4 | unless
the participant is also receiving earnings from the | ||||||
5 | employer as an employee
under Section 15-107.
| ||||||
6 | With respect to transition pay paid by the University of | ||||||
7 | Illinois to a
person who was a participating employee employed | ||||||
8 | in the fire department of
the University of Illinois's | ||||||
9 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
10 | of that fire department:
| ||||||
11 | (1) "Earnings" includes transition pay paid to the | ||||||
12 | employee on or after
the effective date of this amendatory | ||||||
13 | Act of the 91st General Assembly.
| ||||||
14 | (2) "Earnings" includes transition pay paid to the | ||||||
15 | employee before the
effective date of this amendatory Act | ||||||
16 | of the 91st General Assembly only if (i)
employee | ||||||
17 | contributions under Section 15-157 have been withheld from | ||||||
18 | that
transition pay or (ii) the employee pays to the System | ||||||
19 | before January 1, 2001
an amount representing employee | ||||||
20 | contributions under Section 15-157 on that
transition pay. | ||||||
21 | Employee contributions under item (ii) may be paid in a | ||||||
22 | lump
sum, by withholding from additional transition pay | ||||||
23 | accruing before January 1,
2001, or in any other manner | ||||||
24 | approved by the System. Upon payment of the
employee | ||||||
25 | contributions on transition pay, the corresponding | ||||||
26 | employer
contributions become an obligation of the State.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Section, | ||||||
2 | "earnings" does not include any future increase in income | ||||||
3 | offered by an employer under this Article pursuant to the | ||||||
4 | requirements of subsection (c) of Section 15-134.6 that is | ||||||
5 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
6 | active service, who has made an election under paragraph (2) of | ||||||
7 | subsection (a) or (a-5) of Section 15-134.6. | ||||||
8 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
9 | (40 ILCS 5/15-111.1 new) | ||||||
10 | Sec. 15-111.1. Future increase in income. "Future increase | ||||||
11 | in income": Any increase in income in any form offered by an | ||||||
12 | employer to an employee under this Article after June 30, 2013 | ||||||
13 | that would qualify as "earnings", as defined under Section | ||||||
14 | 15-111, but for the fact that the employer offered the increase | ||||||
15 | in income to the employee on the condition that it not qualify | ||||||
16 | as earnings and the employee accepted the increase in income | ||||||
17 | subject to that condition. The term "future increase in income" | ||||||
18 | does not include an increase in income in any form that is paid | ||||||
19 | to a Tier I employee under an employment contract or collective | ||||||
20 | bargaining agreement that is in effect on the effective date of | ||||||
21 | this Section but does include an increase in income in any form | ||||||
22 | pursuant to an extension, amendment, or renewal of any such | ||||||
23 | employment contract or collective bargaining agreement on or | ||||||
24 | after the effective date of this amendatory Act of the 97th | ||||||
25 | General Assembly.
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
| ||||||
2 | Sec. 15-113.2. Service for leaves of absence. "Service for | ||||||
3 | leaves of
absence" includes those periods of leaves of absence | ||||||
4 | at less than 50%
pay, except military leave and periods of | ||||||
5 | disability leave in excess of 60
days, for which the employee | ||||||
6 | pays the contributions required under Section
15-157 in | ||||||
7 | accordance with rules prescribed by the board based upon the
| ||||||
8 | employee's basic compensation on the date the leave begins, or | ||||||
9 | in the case
of leave for service with a teacher organization, | ||||||
10 | based upon the actual
compensation received by the employee for | ||||||
11 | such service after January 26,
1988, if the employee so elects | ||||||
12 | within 30 days of that date or the date the
leave for service | ||||||
13 | with a teacher organization begins, whichever is later;
| ||||||
14 | provided that the employee (1) returns to employment covered by | ||||||
15 | this system
at the expiration of the leave, or within 30 days | ||||||
16 | after the termination of
a disability which occurs during the | ||||||
17 | leave and continues this employment
at a percentage of time | ||||||
18 | equal to or greater than the percentage of time
immediately | ||||||
19 | preceding the leave of absence for at least 8 consecutive
| ||||||
20 | months or a period equal to the period of the leave,
whichever | ||||||
21 | is less, or (2) is precluded from meeting the foregoing
| ||||||
22 | conditions because of disability or death. If service credit is | ||||||
23 | denied
because the employee fails to meet these conditions, the | ||||||
24 | contributions
covering the leave of absence shall be refunded | ||||||
25 | without interest. The
return to employment condition does not |
| |||||||
| |||||||
1 | apply if the leave of absence is
for service with a teacher | ||||||
2 | organization.
| ||||||
3 | Service credit provided under this Section shall not exceed | ||||||
4 | 3 years in
any period of 10 years, unless the employee is on | ||||||
5 | special leave granted
by the employer for service with a | ||||||
6 | teacher organization. Commencing with
the fourth year in any | ||||||
7 | period of 10 years, a participant on such special
leave is also | ||||||
8 | required to pay employer contributions equal to the normal
cost | ||||||
9 | as defined in Section 15-155, based upon the employee's basic | ||||||
10 | compensation
on the date the leave begins, or based upon the | ||||||
11 | actual compensation
received by the employee for service with a | ||||||
12 | teacher organization if the
employee has so elected.
| ||||||
13 | Notwithstanding any other provision of this Article, a | ||||||
14 | participant shall not be eligible to make contributions or | ||||||
15 | receive service credit for a leave of absence for service with | ||||||
16 | a teacher organization if that leave of absence for service | ||||||
17 | with a teacher organization begins on or after the effective | ||||||
18 | date of this amendatory Act of the 97th General Assembly. | ||||||
19 | (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
| ||||||
20 | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
| ||||||
21 | Sec. 15-113.6. Service for employment in public schools. | ||||||
22 | "Service for
employment in public schools": Includes
those | ||||||
23 | periods not exceeding the lesser of 10 years or 2/3 of the | ||||||
24 | service
granted under other Sections of this Article dealing | ||||||
25 | with service credit,
during which a person who entered the |
| |||||||
| |||||||
1 | system after September 1, 1974 was
employed full time by a | ||||||
2 | public common school, public college and public
university, or | ||||||
3 | by an agency or instrumentality of any of the foregoing,
of any | ||||||
4 | state, territory, dependency or possession of the United States | ||||||
5 | of
America, including the Philippine Islands, or a school
| ||||||
6 | operated by or under
the auspices of any agency or department | ||||||
7 | of any other state, if the person
(1) cannot qualify for a | ||||||
8 | retirement pension or other benefit based upon
employer
| ||||||
9 | contributions from another retirement system, exclusive of | ||||||
10 | federal social
security, based in whole or in part upon this | ||||||
11 | employment, and (2) pays the
lesser of (A) an amount equal to | ||||||
12 | 8% of his or her annual basic compensation
on the date of | ||||||
13 | becoming a participating employee subsequent to this service
| ||||||
14 | multiplied by the number of years of such service, together | ||||||
15 | with compound
interest from the date participation begins to | ||||||
16 | the date payment is received
by the board at the rate of 6% per | ||||||
17 | annum through August 31, 1982, and at
the effective rates after | ||||||
18 | that date, and (B) 50% of the actuarial value
of the increase | ||||||
19 | in the retirement annuity provided by this service, and
(3) | ||||||
20 | contributes for at least 5 years subsequent to this employment | ||||||
21 | to one
or more of the following systems: the State Universities | ||||||
22 | Retirement System,
the Teachers' Retirement System of the State | ||||||
23 | of Illinois, and the Public
School Teachers' Pension and | ||||||
24 | Retirement Fund of Chicago.
| ||||||
25 | The service granted under this Section shall not be | ||||||
26 | considered in determining
whether the person has the minimum |
| |||||||
| |||||||
1 | number of 8 years of service required to qualify
for a | ||||||
2 | retirement annuity at age 55 or the 5 years of service required | ||||||
3 | to
qualify for a retirement annuity at age 62 , as provided in | ||||||
4 | Section 15-135, or the 10 years required by subsection (c) of | ||||||
5 | Section 1-160 for a person subject to that Section who first | ||||||
6 | becomes a participant on or after January 1, 2011 .
The maximum | ||||||
7 | allowable service of 10 years for this governmental employment
| ||||||
8 | shall be reduced by the service credit which is validated under | ||||||
9 | paragraph
(2) of subsection (b) of Section 16-127 and paragraph | ||||||
10 | 1 of Section 17-133.
| ||||||
11 | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
| ||||||
12 | (40 ILCS 5/15-134.5)
| ||||||
13 | Sec. 15-134.5. Retirement program elections.
| ||||||
14 | (a) All participating employees are participants under the | ||||||
15 | traditional
benefit package prior to January 1, 1998.
| ||||||
16 | Effective as of the date that an employer elects, as | ||||||
17 | described in Section
15-158.2, to offer to its employees the | ||||||
18 | portable benefit package and the
self-managed plan as | ||||||
19 | alternatives to the traditional benefit package but not later | ||||||
20 | than the effective date of this amendatory Act of the 97th | ||||||
21 | General Assembly , each of
that employer's eligible employees | ||||||
22 | (as defined in subsection (b)) shall be
given the choice to | ||||||
23 | elect which retirement program he or she wishes to
participate | ||||||
24 | in with respect to all periods of covered employment occurring | ||||||
25 | on
and after the effective date of the employee's election. The |
| |||||||
| |||||||
1 | retirement
program election made by an eligible employee must | ||||||
2 | be made in writing, in the
manner prescribed by the System, and | ||||||
3 | within the time period described in
subsection (d) or (d-1).
| ||||||
4 | The employee election authorized by this Section is a | ||||||
5 | one-time, irrevocable
election. If an employee terminates | ||||||
6 | employment after making the election
provided under this | ||||||
7 | subsection (a), then upon his or her subsequent
re-employment | ||||||
8 | with an employer the original election shall automatically | ||||||
9 | apply
to him or her, provided that the employer is then a | ||||||
10 | participating employer as
described in Section 15-158.2.
| ||||||
11 | An eligible employee who fails to make this election shall, | ||||||
12 | by default,
participate in the traditional benefit package.
| ||||||
13 | (b) "Eligible employee" means an employee (as defined in | ||||||
14 | Section
15-107) who is either a currently eligible employee or | ||||||
15 | a newly eligible
employee. For purposes of this Section, a | ||||||
16 | "currently eligible employee"
is an employee who is employed by | ||||||
17 | an employer on the effective date on which
the employer offers | ||||||
18 | to its employees the portable benefit package and the
| ||||||
19 | self-managed plan as alternatives to the traditional benefit | ||||||
20 | package but not on or after the effective date of this | ||||||
21 | amendatory Act of the 97th General Assembly . A "newly
eligible | ||||||
22 | employee" is an employee who first becomes employed by an | ||||||
23 | employer
after the effective date on which the employer offers | ||||||
24 | its employees the
portable benefit package and the self-managed | ||||||
25 | plan as alternatives to the
traditional benefit package but not | ||||||
26 | on or after the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 97th General Assembly .
A newly eligible employee participates | ||||||
2 | in the traditional benefit package
until he or she makes an | ||||||
3 | election to participate in the portable benefit
package or the | ||||||
4 | self-managed plan. If an employee does not elect to participate
| ||||||
5 | in the portable benefit package or the self-managed plan, he or | ||||||
6 | she shall
continue to participate in the
traditional benefit | ||||||
7 | package by default.
| ||||||
8 | (c) An eligible employee who at the time he or she is first | ||||||
9 | eligible to
make the election described in subsection (a) does | ||||||
10 | not have sufficient age and
service to qualify for a retirement | ||||||
11 | annuity under Section 15-135 may elect to
participate in the | ||||||
12 | traditional benefit package, the portable benefit package,
or | ||||||
13 | the self-managed plan. An eligible employee who has sufficient | ||||||
14 | age and
service to qualify for a retirement annuity under | ||||||
15 | Section 15-135 at the time he
or she is first eligible to make | ||||||
16 | the election described in subsection (a) may
elect to | ||||||
17 | participate in the traditional benefit package or the portable | ||||||
18 | benefit
package, but may not elect to participate in the | ||||||
19 | self-managed plan.
| ||||||
20 | (d) A currently eligible employee must make this election | ||||||
21 | within one year
after the effective date of the employer's | ||||||
22 | adoption of the self-managed plan.
| ||||||
23 | A newly eligible employee must make this election within
6 | ||||||
24 | months after the date on which the System receives the report | ||||||
25 | of status
certification from the employer.
If an employee | ||||||
26 | elects to participate in the self-managed plan, no employer
|
| |||||||
| |||||||
1 | contributions shall be remitted to the self-managed plan when | ||||||
2 | the employee's
account balance transfer is made. Employer | ||||||
3 | contributions to the self-managed
plan shall commence as of the | ||||||
4 | first pay period that begins after the System
receives the | ||||||
5 | employee's election.
| ||||||
6 | (d-1) A newly eligible employee who, prior to the effective | ||||||
7 | date of this
amendatory Act of the 91st General Assembly, fails | ||||||
8 | to make the election within
the period provided under | ||||||
9 | subsection (d) and participates by default in the
traditional | ||||||
10 | benefit package may make a late election to participate in the
| ||||||
11 | portable benefit package or the self-managed plan instead of | ||||||
12 | the traditional
benefit package at any time within 6 months | ||||||
13 | after the effective date of this
amendatory Act of the 91st | ||||||
14 | General Assembly.
| ||||||
15 | (e) If a currently eligible employee elects the portable | ||||||
16 | benefit
package, that
election shall not become effective until | ||||||
17 | the one-year anniversary of the date
on which the election is | ||||||
18 | filed with the System, provided the employee remains
| ||||||
19 | continuously employed by the employer throughout the one-year | ||||||
20 | waiting period,
and any benefits payable to or on account of | ||||||
21 | the employee before such one-year
waiting period has ended | ||||||
22 | shall not be determined under the provisions
applicable to the | ||||||
23 | portable benefit package but shall instead be determined in
| ||||||
24 | accordance with the traditional benefit package. If a currently
| ||||||
25 | eligible employee who
has elected the portable benefit package | ||||||
26 | terminates employment covered by the
System before the one-year |
| |||||||
| |||||||
1 | waiting period has ended, then no
benefits shall be determined | ||||||
2 | under the portable benefit package provisions
while he or she | ||||||
3 | is inactive in the System and upon re-employment with an
| ||||||
4 | employer covered by the System he or she shall begin a new | ||||||
5 | one-year waiting
period before the provisions of the portable | ||||||
6 | benefit
package become effective.
| ||||||
7 | (f) An eligible employee shall be provided with written | ||||||
8 | information prepared
or prescribed by the System which | ||||||
9 | describes the employee's retirement program
choices. The | ||||||
10 | eligible employee shall be offered an opportunity to
receive | ||||||
11 | counseling from the System prior to making his or her election. | ||||||
12 | This
counseling may consist of videotaped materials, group | ||||||
13 | presentations, individual
consultation with an employee or | ||||||
14 | authorized representative of the System in
person or by | ||||||
15 | telephone or other electronic means, or any combination of | ||||||
16 | these
methods.
| ||||||
17 | (Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
| ||||||
18 | (40 ILCS 5/15-134.6 new) | ||||||
19 | Sec. 15-134.6. Election by Tier I employees and Tier I | ||||||
20 | retirees. | ||||||
21 | (a) Each Tier I employee shall make an irrevocable election | ||||||
22 | either: | ||||||
23 | (1) to agree to the following: | ||||||
24 | (i) to have the amount of the automatic annual | ||||||
25 | increases in his or her retirement annuity that are |
| |||||||
| |||||||
1 | otherwise provided for in this Article calculated, | ||||||
2 | instead, as provided in subsection (d-1) of Section | ||||||
3 | 15-136; and | ||||||
4 | (ii) to have his or her eligibility for automatic | ||||||
5 | annual increases in retirement annuity postponed as | ||||||
6 | provided in subsection (d-2) of Section 15-136; or | ||||||
7 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
8 | paragraph (1) of this subsection. | ||||||
9 | The election required under this subsection (a) shall be | ||||||
10 | made by each Tier I employee no earlier than January 1, 2013 | ||||||
11 | and no later than May 31, 2013, except that: | ||||||
12 | (i) a person who becomes a Tier I employee under this | ||||||
13 | Article after January 1, 2013 must make the election under | ||||||
14 | this subsection (a) within 60 days after becoming a Tier I | ||||||
15 | employee; | ||||||
16 | (ii) a person who returns to active service as a Tier I | ||||||
17 | employee under this Article after January 1, 2013 and has | ||||||
18 | not yet made an election under this Section must make the | ||||||
19 | election under this subsection (a) within 60 days after | ||||||
20 | returning to active service as a Tier I employee; and | ||||||
21 | (iii) a person who made the election under subsection | ||||||
22 | (a-5) as a Tier I retiree remains bound by that election | ||||||
23 | and shall not make a later election under this subsection | ||||||
24 | (a). | ||||||
25 | If a Tier I employee fails for any reason to make a | ||||||
26 | required election under this subsection within the time |
| |||||||
| |||||||
1 | specified, then the employee shall be deemed to have made the | ||||||
2 | election under paragraph (2) of this subsection. | ||||||
3 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
4 | election either: | ||||||
5 | (1) to agree to the following: | ||||||
6 | (i) to have the amount of the automatic annual | ||||||
7 | increases in his or her retirement annuity that are | ||||||
8 | otherwise provided for in this Article calculated, | ||||||
9 | instead, as provided in subsection (d-1) of Section | ||||||
10 | 15-136; and | ||||||
11 | (ii) to have his or her eligibility for automatic | ||||||
12 | annual increases in retirement annuity postponed as | ||||||
13 | provided in subsection (d-2) of Section 15-136; or | ||||||
14 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
15 | paragraph (1) of this subsection. | ||||||
16 | The election required under this subsection (a-5) shall be | ||||||
17 | made by each Tier I retiree no earlier than January 1, 2013 and | ||||||
18 | no later than May 31, 2013, except that: | ||||||
19 | (i) a person who becomes a Tier I retiree under this | ||||||
20 | Article on or after January 1, 2013 must make the election | ||||||
21 | under this subsection (a-5) within 60 days after becoming a | ||||||
22 | Tier I retiree; and | ||||||
23 | (ii) a person who made the election under subsection | ||||||
24 | (a) as a Tier I employee remains bound by that election and | ||||||
25 | shall not make a later election under this subsection | ||||||
26 | (a-5). |
| |||||||
| |||||||
1 | If a Tier I retiree fails for any reason to make a required | ||||||
2 | election under this subsection within the time specified, then | ||||||
3 | the Tier I retiree shall be deemed to have made the election | ||||||
4 | under paragraph (2) of this subsection. | ||||||
5 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
6 | made or deemed to be made before June 1, 2013 shall take effect | ||||||
7 | on July 1, 2013. Elections that are made or deemed to be made | ||||||
8 | on or after June 1, 2013 shall take effect on the first day of | ||||||
9 | the month following the month in which the election is made or | ||||||
10 | deemed to be made. | ||||||
11 | (b) As adequate and legal consideration provided under this | ||||||
12 | amendatory Act of the 97th General Assembly for making the | ||||||
13 | election under paragraph (1) of subsection (a) of this Section, | ||||||
14 | any future increases in income offered by an employer under | ||||||
15 | this Article to a Tier I employee who has made the election | ||||||
16 | under paragraph (1) of subsection (a) of this Section shall be | ||||||
17 | offered expressly and irrevocably as constituting earnings | ||||||
18 | under Section 15-111. In addition, a Tier I employee who has | ||||||
19 | made the election under paragraph (1) of subsection (a) of this | ||||||
20 | Section shall receive the right to also participate in the | ||||||
21 | optional cash balance plan established under Section 1-162. | ||||||
22 | As adequate and legal consideration provided under this | ||||||
23 | amendatory Act of the 97th General Assembly for making the | ||||||
24 | election under paragraph (1) of subsection (a-5) of this | ||||||
25 | Section, any future increases in income offered by an employer | ||||||
26 | under this Article to a Tier I retiree who returns to active |
| |||||||
| |||||||
1 | service after having made the election under paragraph (1) of | ||||||
2 | subsection (a-5) of this Section shall be offered expressly and | ||||||
3 | irrevocably as constituting earnings under Section 15-111. In | ||||||
4 | addition, a Tier I retiree who returns to active service and | ||||||
5 | has made the election under paragraph (1) of subsection (a) of | ||||||
6 | this Section shall receive the right to also participate in the | ||||||
7 | optional cash balance plan established under Section 1-162. | ||||||
8 | (c) A Tier I employee who makes the election under | ||||||
9 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
10 | subject to items (i) and (ii) set forth in paragraph (1) of | ||||||
11 | subsection (a) of this Section. However, any future increases | ||||||
12 | in income offered by an employer under this Article to a Tier I | ||||||
13 | employee who has made the election under paragraph (2) of | ||||||
14 | subsection (a) of this Section shall be offered expressly and | ||||||
15 | irrevocably as not constituting earnings under Section 15-111, | ||||||
16 | and the employee may not accept any future increase in income | ||||||
17 | that is offered in violation of this requirement. In addition, | ||||||
18 | a Tier I employee who has made the election under paragraph (2) | ||||||
19 | of subsection (a) of this Section shall not receive the right | ||||||
20 | to participate in the optional cash balance plan established | ||||||
21 | under Section 1-162. | ||||||
22 | A Tier I retiree who makes the election under paragraph (2) | ||||||
23 | of subsection (a-5) of this Section shall not be subject to | ||||||
24 | items (i) and (ii) set forth in paragraph (1) of subsection | ||||||
25 | (a-5) of this Section. However, any future increases in income | ||||||
26 | offered by an employer under this Article to a Tier I retiree |
| |||||||
| |||||||
1 | who returns to active service and has made the election under | ||||||
2 | paragraph (2) of subsection (a-5) of this Section shall be | ||||||
3 | offered expressly and irrevocably as not constituting earnings | ||||||
4 | under Section 15-111, and the employee may not accept any | ||||||
5 | future increase in income that is offered in violation of this | ||||||
6 | requirement. In addition, a Tier I retiree who returns to | ||||||
7 | active service and has made the election under paragraph (2) of | ||||||
8 | subsection (a) of this Section shall not receive the right to | ||||||
9 | participate in the optional cash balance plan established under | ||||||
10 | Section 1-162. | ||||||
11 | (d) The System shall make a good faith effort to contact | ||||||
12 | each Tier I employee and Tier I retiree subject to this | ||||||
13 | Section. The System shall mail information describing the | ||||||
14 | required election to each Tier I employee and Tier I retiree by | ||||||
15 | United States Postal Service mail to his or her last known | ||||||
16 | address on file with the System. If the Tier I employee or Tier | ||||||
17 | I retiree is not responsive to other means of contact, it is | ||||||
18 | sufficient for the System to publish the details of any | ||||||
19 | required elections on its website or to publish those details | ||||||
20 | in a regularly published newsletter or other existing public | ||||||
21 | forum. | ||||||
22 | Tier I employees and Tier I retirees who are subject to | ||||||
23 | this Section shall be provided with an election packet | ||||||
24 | containing information regarding their options, as well as the | ||||||
25 | forms necessary to make the required election. Upon request, | ||||||
26 | the System shall offer Tier I employees and Tier I retirees an |
| |||||||
| |||||||
1 | opportunity to receive information from the System before | ||||||
2 | making the required election. The information may consist of | ||||||
3 | video materials, group presentations, individual consultation | ||||||
4 | with a member or authorized representative of the System in | ||||||
5 | person or by telephone or other electronic means, or any | ||||||
6 | combination of those methods. The System shall not provide | ||||||
7 | advice or counseling with respect to which election a Tier I | ||||||
8 | employee or Tier I retiree should make or specific to the legal | ||||||
9 | or tax circumstances of or consequences to the Tier I employee | ||||||
10 | or Tier I retiree. | ||||||
11 | The System shall inform Tier I employees and Tier I | ||||||
12 | retirees in the election packet required under this subsection | ||||||
13 | that the Tier I employee or Tier I retiree may also wish to | ||||||
14 | obtain information and counsel relating to the election | ||||||
15 | required under this Section from any other available source, | ||||||
16 | including but not limited to labor organizations and private | ||||||
17 | counsel. | ||||||
18 | In no event shall the System, its staff, or the Board be | ||||||
19 | held liable for any information given to a member, beneficiary, | ||||||
20 | or annuitant regarding the elections under this Section. The | ||||||
21 | System shall coordinate with the Illinois Department of Central | ||||||
22 | Management Services and each other retirement system | ||||||
23 | administering an election in accordance with this amendatory | ||||||
24 | Act of the 97th General Assembly to provide information | ||||||
25 | concerning the impact of the election set forth in this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (e) Notwithstanding any other provision of law, an employer | ||||||
2 | under this Article is required to offer any future increases in | ||||||
3 | income expressly and irrevocably as not constituting | ||||||
4 | "earnings" under Section 15-111 to any Tier I employee, or Tier | ||||||
5 | I retiree returning to active service, who has made an election | ||||||
6 | under paragraph (2) or subsection (a) or (a-5) of this Section. | ||||||
7 | A Tier I employee, or Tier I retiree returning to active | ||||||
8 | service, who has made an election under paragraph (2) of | ||||||
9 | subsection (a) or (a-5) of this Section shall not accept any | ||||||
10 | future increase in income that is offered by an employer under | ||||||
11 | this Article in violation of the requirement set forth in this | ||||||
12 | subsection. | ||||||
13 | (f) A member's election under this Section is not a | ||||||
14 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
15 | of the Illinois Pension Code. | ||||||
16 | (g) An employee who has made the election under paragraph | ||||||
17 | (1) of subsection (a) or (a-5) of this Section may elect to | ||||||
18 | participate in the optional cash balance plan under Section | ||||||
19 | 1-162. | ||||||
20 | The election to participate in the optional cash balance | ||||||
21 | plan shall be made in writing, in the manner provided by the | ||||||
22 | applicable retirement system. | ||||||
23 | (h) Qualified Plan Status. No provision of this Section | ||||||
24 | shall be interpreted in a way that would cause the System to | ||||||
25 | cease to be a qualified plan under Section 461(a) of the | ||||||
26 | Internal Revenue Code of 1986.
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
2 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
3 | of this
Section 15-136 apply only to those participants who are | ||||||
4 | participating in the
traditional benefit package or the | ||||||
5 | portable benefit package and do not
apply to participants who | ||||||
6 | are participating in the self-managed plan.
| ||||||
7 | (a) The amount of a participant's retirement annuity, | ||||||
8 | expressed in the form
of a single-life annuity, shall be | ||||||
9 | determined by whichever of the following
rules is applicable | ||||||
10 | and provides the largest annuity:
| ||||||
11 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
12 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
13 | for each of the next 10 years of
service, 2.10% for each year | ||||||
14 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
15 | each year in excess of 30; or for persons who retire on or
| ||||||
16 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
17 | each year of
service.
| ||||||
18 | Rule 2: The retirement annuity shall be the sum of the | ||||||
19 | following,
determined from amounts credited to the participant | ||||||
20 | in accordance with the
actuarial tables and the prescribed rate | ||||||
21 | of interest in effect at the
time the retirement annuity | ||||||
22 | begins:
| ||||||
23 | (i) the normal annuity which can be provided on an | ||||||
24 | actuarially
equivalent basis, by the accumulated normal | ||||||
25 | contributions as of
the date the annuity begins;
|
| |||||||
| |||||||
1 | (ii) an annuity from employer contributions of an | ||||||
2 | amount equal to that
which can be provided on an | ||||||
3 | actuarially equivalent basis from the accumulated
normal | ||||||
4 | contributions made by the participant under Section | ||||||
5 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
6 | accumulated normal contributions made by
the participant; | ||||||
7 | and
| ||||||
8 | (iii) the annuity that can be provided on an | ||||||
9 | actuarially equivalent basis
from the entire contribution | ||||||
10 | made by the participant under Section 15-113.3.
| ||||||
11 | With respect to a police officer or firefighter who retires | ||||||
12 | on or after
August 14, 1998, the accumulated normal | ||||||
13 | contributions taken into account under
clauses (i) and (ii) of | ||||||
14 | this Rule 2 shall include the additional normal
contributions | ||||||
15 | made by the police officer or firefighter under Section
| ||||||
16 | 15-157(a).
| ||||||
17 | The amount of a retirement annuity calculated under this | ||||||
18 | Rule 2 shall
be computed solely on the basis of the | ||||||
19 | participant's accumulated normal
contributions, as specified | ||||||
20 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
21 | or employer contribution for early retirement under
Section | ||||||
22 | 15-136.2 nor any other employer contribution shall be used in | ||||||
23 | the
calculation of the amount of a retirement annuity under | ||||||
24 | this Rule 2.
| ||||||
25 | This amendatory Act of the 91st General Assembly is a | ||||||
26 | clarification of
existing law and applies to every participant |
| |||||||
| |||||||
1 | and annuitant without regard to
whether status as an employee | ||||||
2 | terminates before the effective date of this
amendatory Act.
| ||||||
3 | This Rule 2 does not apply to a person who first becomes an | ||||||
4 | employee under this Article on or after July 1, 2005.
| ||||||
5 | Rule 3: The retirement annuity of a participant who is | ||||||
6 | employed
at least one-half time during the period on which his | ||||||
7 | or her final rate of
earnings is based, shall be equal to the | ||||||
8 | participant's years of service
not to exceed 30, multiplied by | ||||||
9 | (1) $96 if the participant's final rate
of earnings is less | ||||||
10 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
11 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
12 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
13 | the final rate
of earnings is at least $5,500 but less than | ||||||
14 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
15 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
16 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
17 | the final rate of earnings is at least $8,500 but
less than | ||||||
18 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
19 | more, except that the annuity for those persons having made an | ||||||
20 | election under
Section 15-154(a-1) shall be calculated and | ||||||
21 | payable under the portable
retirement benefit program pursuant | ||||||
22 | to the provisions of Section 15-136.4.
| ||||||
23 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
24 | more years of
service as a police officer or firefighter, and a | ||||||
25 | participant who is age 55 or
over and has at least 20 but less | ||||||
26 | than 25 years of service as a police officer
or firefighter, |
| |||||||
| |||||||
1 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
2 | final rate of earnings for each of the first 10 years of | ||||||
3 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
4 | the next 10 years of service as a
police officer or | ||||||
5 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
6 | officer or firefighter in excess of 20. The retirement annuity | ||||||
7 | for all other
service shall be computed under Rule 1.
| ||||||
8 | For purposes of this Rule 4, a participant's service as a | ||||||
9 | firefighter
shall also include the following:
| ||||||
10 | (i) service that is performed while the person is an | ||||||
11 | employee under
subsection (h) of Section 15-107; and
| ||||||
12 | (ii) in the case of an individual who was a | ||||||
13 | participating employee
employed in the fire department of | ||||||
14 | the University of Illinois's
Champaign-Urbana campus | ||||||
15 | immediately prior to the elimination of that fire
| ||||||
16 | department and who immediately after the elimination of | ||||||
17 | that fire department
transferred to another job with the | ||||||
18 | University of Illinois, service performed
as an employee of | ||||||
19 | the University of Illinois in a position other than police
| ||||||
20 | officer or firefighter, from the date of that transfer | ||||||
21 | until the employee's
next termination of service with the | ||||||
22 | University of Illinois.
| ||||||
23 | Rule 5: The retirement annuity of a participant who elected | ||||||
24 | early
retirement under the provisions of Section 15-136.2 and | ||||||
25 | who, on or before
February 16, 1995, brought administrative | ||||||
26 | proceedings pursuant to the
administrative rules adopted by the |
| |||||||
| |||||||
1 | System to challenge the calculation of his
or her retirement | ||||||
2 | annuity shall be the sum of the following, determined from
| ||||||
3 | amounts credited to the participant in accordance with the | ||||||
4 | actuarial tables and
the prescribed rate of interest in effect | ||||||
5 | at the time the retirement annuity
begins:
| ||||||
6 | (i) the normal annuity which can be provided on an | ||||||
7 | actuarially equivalent
basis, by the accumulated normal | ||||||
8 | contributions as of the date the annuity
begins; and
| ||||||
9 | (ii) an annuity from employer contributions of an | ||||||
10 | amount equal to that
which can be provided on an | ||||||
11 | actuarially equivalent basis from the accumulated
normal | ||||||
12 | contributions made by the participant under Section | ||||||
13 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
14 | accumulated normal contributions made by the
participant; | ||||||
15 | and
| ||||||
16 | (iii) an annuity which can be provided on an | ||||||
17 | actuarially equivalent basis
from the employee | ||||||
18 | contribution for early retirement under Section 15-136.2, | ||||||
19 | and
an annuity from employer contributions of an amount | ||||||
20 | equal to that which can be
provided on an actuarially | ||||||
21 | equivalent basis from the employee contribution for
early | ||||||
22 | retirement under Section 15-136.2.
| ||||||
23 | In no event shall a retirement annuity under this Rule 5 be | ||||||
24 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
25 | obtained by dividing the
combined employee and employer | ||||||
26 | contributions made under Section 15-136.2 by the
System's |
| |||||||
| |||||||
1 | annuity factor for the age of the participant at the beginning | ||||||
2 | of the
annuity payment period and (2) the amount equal to the | ||||||
3 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
4 | Section 15-136(b) as if no
contributions had been made under | ||||||
5 | Section 15-136.2.
| ||||||
6 | With respect to a participant who is qualified for a | ||||||
7 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
8 | began before the effective date of this
amendatory Act of the | ||||||
9 | 91st General Assembly, and for whom an employee
contribution | ||||||
10 | was made under Section 15-136.2, the System shall recalculate | ||||||
11 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
12 | additional amounts due
in the manner provided in Section | ||||||
13 | 15-186.1 for benefits mistakenly set too low.
| ||||||
14 | The amount of a retirement annuity calculated under this | ||||||
15 | Rule 5 shall be
computed solely on the basis of those | ||||||
16 | contributions specifically set forth in
this Rule 5. Except as | ||||||
17 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
18 | nor employer contribution for early retirement under Section | ||||||
19 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
20 | the calculation of the
amount of a retirement annuity under | ||||||
21 | this Rule 5.
| ||||||
22 | The General Assembly has adopted the changes set forth in | ||||||
23 | Section 25 of this
amendatory Act of the 91st General Assembly | ||||||
24 | in recognition that the decision of
the Appellate Court for the | ||||||
25 | Fourth District in Mattis v. State Universities
Retirement | ||||||
26 | System et al. might be deemed to give some right to the |
| |||||||
| |||||||
1 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
2 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
3 | implementation of the decision of the
Appellate Court for the | ||||||
4 | Fourth District in Mattis v. State Universities
Retirement | ||||||
5 | System et al. with respect to that plaintiff.
| ||||||
6 | The changes made by Section 25 of this amendatory Act of | ||||||
7 | the 91st General
Assembly apply without regard to whether the | ||||||
8 | person is in service as an
employee on or after its effective | ||||||
9 | date.
| ||||||
10 | (b) The retirement annuity provided under Rules 1 and 3 | ||||||
11 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
12 | participant is under age 60 at the
time of retirement. However, | ||||||
13 | this reduction shall not apply in the following
cases:
| ||||||
14 | (1) For a disabled participant whose disability | ||||||
15 | benefits have been
discontinued because he or she has | ||||||
16 | exhausted eligibility for disability
benefits under clause | ||||||
17 | (6) of Section 15-152;
| ||||||
18 | (2) For a participant who has at least the number of | ||||||
19 | years of service
required to retire at any age under | ||||||
20 | subsection (a) of Section 15-135; or
| ||||||
21 | (3) For that portion of a retirement annuity which has | ||||||
22 | been provided on
account of service of the participant | ||||||
23 | during periods when he or she performed
the duties of a | ||||||
24 | police officer or firefighter, if these duties were | ||||||
25 | performed
for at least 5 years immediately preceding the | ||||||
26 | date the retirement annuity
is to begin.
|
| |||||||
| |||||||
1 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
2 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
3 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
4 | Code of 1986, as such Section may be
amended from time to time | ||||||
5 | and as such benefit limits shall be adjusted by
the | ||||||
6 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
7 | earnings.
| ||||||
8 | (d) Subject to the provisions of subsections (d-1) and | ||||||
9 | (d-2), an An annuitant whose status as an employee terminates | ||||||
10 | after August 14,
1969 shall receive automatic increases in his | ||||||
11 | or her retirement annuity as
follows:
| ||||||
12 | Effective January 1 immediately following the date the | ||||||
13 | retirement annuity
begins, the annuitant shall receive an | ||||||
14 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
15 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
16 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
17 | multiplied by
the number of full months which elapsed from the | ||||||
18 | date the retirement annuity
payments began to January 1, 1972, | ||||||
19 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
20 | months which elapsed from January 1, 1972, or the date the
| ||||||
21 | retirement annuity payments began, whichever is later, to | ||||||
22 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
23 | number of full months which elapsed
from January 1, 1978, or | ||||||
24 | the date the retirement annuity payments began,
whichever is | ||||||
25 | later, to the effective date of the increase.
| ||||||
26 | The annuitant shall receive an increase in his or her |
| |||||||
| |||||||
1 | monthly retirement
annuity on each January 1 thereafter during | ||||||
2 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
3 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | ||||||
4 | this Section. The change made under this subsection by P.A. | ||||||
5 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
6 | annuitant whose status as
an employee terminates before or | ||||||
7 | after that date.
| ||||||
8 | Beginning January 1, 1990 and except as provided in | ||||||
9 | subsections (d-1) and (d-2) , all automatic annual increases | ||||||
10 | payable under
this Section shall be calculated as a percentage | ||||||
11 | of the total annuity
payable at the time of the increase, | ||||||
12 | including all increases previously
granted under this Article.
| ||||||
13 | The change made in this subsection by P.A. 85-1008 is | ||||||
14 | effective January
26, 1988, and is applicable without regard to | ||||||
15 | whether status as an employee
terminated before that date.
| ||||||
16 | (d-1) Notwithstanding any other provision of this Article, | ||||||
17 | for a Tier I employee or Tier I retiree who made the election | ||||||
18 | under paragraph (1) of either subsection (a) or (a-5) of | ||||||
19 | Section 15-134.6, the amount of each automatic annual increase | ||||||
20 | in retirement annuity occurring on or after the effective date | ||||||
21 | of that election shall be 3% or one-half of the annual | ||||||
22 | unadjusted percentage increase, if any, in the Consumer Price | ||||||
23 | Index-U for the 12 months ending with the preceding September, | ||||||
24 | whichever is less, of the originally granted retirement | ||||||
25 | annuity. For the purposes of this Section, "Consumer Price | ||||||
26 | Index-U" means
the index published by the Bureau of Labor |
| |||||||
| |||||||
1 | Statistics of the United States
Department of Labor that | ||||||
2 | measures the average change in prices of goods and
services | ||||||
3 | purchased by all urban consumers, United States city average, | ||||||
4 | all
items, 1982-84 = 100. | ||||||
5 | (d-2) Notwithstanding any other provision of this Article, | ||||||
6 | for a Tier I employee or Tier I retiree who made the election | ||||||
7 | under paragraph (1) of subsection (a) or (a-5) of Section | ||||||
8 | 15-134.6, the monthly retirement annuity shall first be subject | ||||||
9 | to annual increases on the January 1 occurring on or next after | ||||||
10 | the attainment of age 67 or the January 1 occurring on or next | ||||||
11 | after the fifth anniversary of the annuity start date, | ||||||
12 | whichever occurs earlier. If on the effective date of the | ||||||
13 | election under paragraph (1) of subsection (a-5) of Section | ||||||
14 | 15-134.6 a Tier I retiree has already received an annual | ||||||
15 | increase under this Section but does not yet meet the new | ||||||
16 | eligibility requirements of this subsection, the annual | ||||||
17 | increases already received shall continue in force, but no | ||||||
18 | additional annual increase shall be granted until the Tier I | ||||||
19 | retiree meets the new eligibility requirements. | ||||||
20 | (e) If, on January 1, 1987, or the date the retirement | ||||||
21 | annuity payment
period begins, whichever is later, the sum of | ||||||
22 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
23 | Section
and the automatic annual increases provided under the | ||||||
24 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
25 | the retirement
annuity which would be provided by Rule 3, the | ||||||
26 | retirement
annuity shall be increased as of January 1, 1987, or |
| |||||||
| |||||||
1 | the date the
retirement annuity payment period begins, | ||||||
2 | whichever is later, to the amount
which would be provided by | ||||||
3 | Rule 3 of this Section. Such increased
amount shall be | ||||||
4 | considered as the retirement annuity in determining
benefits | ||||||
5 | provided under other Sections of this Article. This paragraph
| ||||||
6 | applies without regard to whether status as an employee | ||||||
7 | terminated before the
effective date of this amendatory Act of | ||||||
8 | 1987, provided that the annuitant was
employed at least | ||||||
9 | one-half time during the period on which the final rate of
| ||||||
10 | earnings was based.
| ||||||
11 | (f) A participant is entitled to such additional annuity as | ||||||
12 | may be provided
on an actuarially equivalent basis, by any | ||||||
13 | accumulated
additional contributions to his or her credit. | ||||||
14 | However,
the additional contributions made by the participant | ||||||
15 | toward the automatic
increases in annuity provided under this | ||||||
16 | Section shall not be taken into
account in determining the | ||||||
17 | amount of such additional annuity.
| ||||||
18 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
19 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
20 | or in part to an employer, and (2)
a participant transfers | ||||||
21 | employment from such governmental unit to such employer
within | ||||||
22 | 6 months after the transfer of the function, and (3) the sum of | ||||||
23 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
24 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
25 | participant by all other retirement
systems covered by Article | ||||||
26 | 20, and (C) the initial primary insurance amount to
which the |
| |||||||
| |||||||
1 | participant is entitled under the Social Security Act, is less | ||||||
2 | than
the retirement annuity which would have been payable if | ||||||
3 | all of the
participant's pension credits validated under | ||||||
4 | Section 20-109 had been validated
under this system, a | ||||||
5 | supplemental annuity equal to the difference in such
amounts | ||||||
6 | shall be payable to the participant.
| ||||||
7 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
8 | retirement annuity on or before January 1, 1971 shall have his | ||||||
9 | or her
retirement annuity then being paid increased $1 per | ||||||
10 | month for
each year of creditable service. On January 1, 1982, | ||||||
11 | an annuitant whose
retirement annuity began on or before | ||||||
12 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
13 | being paid increased $1 per month for each year of
creditable | ||||||
14 | service.
| ||||||
15 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
16 | annuity began on or
before January 1, 1977, shall have the | ||||||
17 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
18 | per year of creditable service times the number of years
that | ||||||
19 | have elapsed since the annuity began.
| ||||||
20 | (Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
| ||||||
21 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
22 | Sec. 15-155. State and employer Employer contributions.
| ||||||
23 | (a) Except as otherwise provided in this Section, the The | ||||||
24 | State of Illinois shall make contributions by appropriations of
| ||||||
25 | amounts which, together with contributions paid by employers, |
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| |||||||
1 | the other employer contributions from trust,
federal, and other | ||||||
2 | funds, employee contributions, income from investments,
and | ||||||
3 | other income of this System, will be sufficient to meet the | ||||||
4 | cost of
maintaining and administering the System on a 90% | ||||||
5 | funded basis in accordance
with actuarial recommendations.
| ||||||
6 | Beginning with State fiscal year 2014, the employers under | ||||||
7 | this Article shall be responsible for paying the normal costs | ||||||
8 | of the System plus the amounts required to amortize any total | ||||||
9 | cost of the benefits of the System arising on or after July 1, | ||||||
10 | 2013. | ||||||
11 | Beginning with State fiscal year 2014, the State's required | ||||||
12 | contributions to the System shall be limited to the amounts | ||||||
13 | required to amortize the total cost of the benefits of the | ||||||
14 | System arising before July 1, 2013, plus any employer | ||||||
15 | contributions required from the State as the actual employer of | ||||||
16 | participants under this Article. | ||||||
17 | The Board shall determine the amount of State and employer | ||||||
18 | contributions required for
each fiscal year on the basis of the | ||||||
19 | actuarial tables and other assumptions
adopted by the Board and | ||||||
20 | the recommendations of the actuary, using the formulas provided | ||||||
21 | in this Section formula
in subsection (a-1) .
| ||||||
22 | (a-1) For State fiscal years 2012 and 2013 through 2045 , | ||||||
23 | the minimum contribution
to the System to be made by the State | ||||||
24 | for each fiscal year shall be an amount
determined by the | ||||||
25 | System to be sufficient to bring the total assets of the
System | ||||||
26 | up to 90% of the total actuarial liabilities of the System by |
| |||||||
| |||||||
1 | the end of
State fiscal year 2045. In making these | ||||||
2 | determinations, the required State
contribution shall be | ||||||
3 | calculated each year as a level percentage of payroll
over the | ||||||
4 | years remaining to and including fiscal year 2045 and shall be
| ||||||
5 | determined under the projected unit credit actuarial cost | ||||||
6 | method.
| ||||||
7 | Except as provided in subsection (a-3), for State fiscal | ||||||
8 | years 2014 through 2045 or until the State has amortized 100% | ||||||
9 | of the total cost of benefits accrued by July 1, 2013, | ||||||
10 | whichever is earlier, in addition to any employer contributions | ||||||
11 | required from the State as an employer, the minimum | ||||||
12 | contribution
to the System to be made by the State for each | ||||||
13 | fiscal year shall be an amount
determined by the Board to be | ||||||
14 | sufficient to amortize, by the end of
State fiscal year 2045, | ||||||
15 | the total cost of the benefits of the System arising before | ||||||
16 | July 1, 2013. In making these determinations, the required | ||||||
17 | State
contribution shall be calculated each year as a level | ||||||
18 | percentage of payroll
over the years remaining to and including | ||||||
19 | fiscal year 2043 and shall be
determined under the projected | ||||||
20 | unit credit actuarial cost method. | ||||||
21 | Except as provided in subsection (a-3), beginning in State | ||||||
22 | fiscal year 2046 or on the date that the State has amortized | ||||||
23 | 100% of the total cost of benefits accrued by July 1, 2013, | ||||||
24 | whichever is earlier, the State has no further obligation to | ||||||
25 | make contributions to the System under this subsection (a-1). | ||||||
26 | For State fiscal years 1996 through 2005, the State |
| |||||||
| |||||||
1 | contribution to
the System, as a percentage of the applicable | ||||||
2 | employee payroll, shall be
increased in equal annual increments | ||||||
3 | so that by State fiscal year 2011, the
State is contributing at | ||||||
4 | the rate required under this Section.
| ||||||
5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State
contribution for State fiscal year 2006 is | ||||||
7 | $166,641,900.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State
contribution for State fiscal year 2007 is | ||||||
10 | $252,064,100.
| ||||||
11 | For each of State fiscal years 2008 through 2009, the State | ||||||
12 | contribution to
the System, as a percentage of the applicable | ||||||
13 | employee payroll, shall be
increased in equal annual increments | ||||||
14 | from the required State contribution for State fiscal year | ||||||
15 | 2007, so that by State fiscal year 2011, the
State is | ||||||
16 | contributing at the rate otherwise required under this Section.
| ||||||
17 | Notwithstanding any other provision of this Article, the | ||||||
18 | total required State contribution for State fiscal year 2010 is | ||||||
19 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
20 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
21 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
22 | share of bond sale expenses determined by the System's share of | ||||||
23 | total bond proceeds, (ii) any amounts received from the General | ||||||
24 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
25 | proceeds due to the issuance of discounted bonds, if | ||||||
26 | applicable. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the
| ||||||
2 | total required State contribution for State fiscal year 2011 is
| ||||||
3 | the amount recertified by the System on or before April 1, 2011 | ||||||
4 | pursuant to Section 15-165 and shall be made from the State | ||||||
5 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
6 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
7 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
8 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
9 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
10 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
11 | discounted bonds, if
applicable. | ||||||
12 | Beginning in State fiscal year 2046, the minimum State | ||||||
13 | contribution for
each fiscal year shall be the amount needed to | ||||||
14 | maintain the total assets of
the System at 90% of the total | ||||||
15 | actuarial liabilities of the System.
| ||||||
16 | Amounts received by the System pursuant to Section 25 of | ||||||
17 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
18 | Finance Act in any fiscal year do not reduce and do not | ||||||
19 | constitute payment of any portion of the minimum State | ||||||
20 | contribution required under this Article in that fiscal year. | ||||||
21 | Such amounts shall not reduce, and shall not be included in the | ||||||
22 | calculation of, the required State contributions under this | ||||||
23 | Article in any future year until the System has reached a | ||||||
24 | funding ratio of at least 90%. A reference in this Article to | ||||||
25 | the "required State contribution" or any substantially similar | ||||||
26 | term does not include or apply to any amounts payable to the |
| |||||||
| |||||||
1 | System under Section 25 of the Budget Stabilization Act. | ||||||
2 | Notwithstanding any other provision of this Section, the | ||||||
3 | required State
contribution for State fiscal year 2005 and for | ||||||
4 | fiscal year 2008 through and each fiscal year 2013 thereafter , | ||||||
5 | as
calculated under this Section and
certified under Section | ||||||
6 | 15-165, shall not exceed an amount equal to (i) the
amount of | ||||||
7 | the required State contribution that would have been calculated | ||||||
8 | under
this Section for that fiscal year if the System had not | ||||||
9 | received any payments
under subsection (d) of Section 7.2 of | ||||||
10 | the General Obligation Bond Act, minus
(ii) the portion of the | ||||||
11 | State's total debt service payments for that fiscal
year on the | ||||||
12 | bonds issued in fiscal year 2003 for the purposes of that | ||||||
13 | Section 7.2, as determined
and certified by the Comptroller, | ||||||
14 | that is the same as the System's portion of
the total moneys | ||||||
15 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
16 | Obligation Bond Act. In determining this maximum for State | ||||||
17 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
18 | in item (i) shall be increased, as a percentage of the | ||||||
19 | applicable employee payroll, in equal increments calculated | ||||||
20 | from the sum of the required State contribution for State | ||||||
21 | fiscal year 2007 plus the applicable portion of the State's | ||||||
22 | total debt service payments for fiscal year 2007 on the bonds | ||||||
23 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
24 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
25 | 2011, the
State is contributing at the rate otherwise required | ||||||
26 | under this Section.
|
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| |||||||
1 | (a-3) If at least 50% of Tier I employees making an | ||||||
2 | election under Section 15-134.6 before June 1, 2013 choose the | ||||||
3 | option under paragraph (1) of subsection (a) of that Section, | ||||||
4 | then beginning in State fiscal year 2014, instead of the | ||||||
5 | contributions specified in subsection (a-1) of this Section, | ||||||
6 | the State contributions specified in subsection (a-5) of this | ||||||
7 | Section shall be paid. | ||||||
8 | In making its initial certification of the annual required | ||||||
9 | contribution by the State for State fiscal year 2014, the Board | ||||||
10 | shall assume that the new funding formula provided in | ||||||
11 | subsection (a-5) of this Section applies. If fewer than 50% of | ||||||
12 | Tier I employees making an election under Section 15-134.6 | ||||||
13 | before June 1, 2013 choose the option under paragraph (1) of | ||||||
14 | subsection (a) of that Section, then: | ||||||
15 | (1) instead of the contributions specified in | ||||||
16 | subsection (a-5) of this Section, the State contributions | ||||||
17 | specified in subsection (a-1) shall continue to be paid; | ||||||
18 | and | ||||||
19 | (2) as soon as possible after June 1, 2013, the Board | ||||||
20 | shall recertify the annual required contribution by the | ||||||
21 | State for State fiscal year 2014. | ||||||
22 | (a-5) For State fiscal years 2014 through 2043 or until the | ||||||
23 | State has amortized 100% of the total cost of benefits accrued | ||||||
24 | by July 1, 2013, whichever is earlier, in addition to any | ||||||
25 | employer contributions required from the State as an employer, | ||||||
26 | the minimum contribution
to the System to be made by the State |
| |||||||
| |||||||
1 | for each fiscal year shall be an amount
determined by the Board | ||||||
2 | to be sufficient to amortize, by the end of
State fiscal year | ||||||
3 | 2043, the total cost of the benefits of the System arising | ||||||
4 | before July 1, 2013. In making these determinations, the | ||||||
5 | required State
contribution shall be calculated each year as a | ||||||
6 | level percentage of payroll
over the years remaining to and | ||||||
7 | including fiscal year 2043 and shall be
determined under the | ||||||
8 | projected unit credit actuarial cost method. | ||||||
9 | Beginning in State fiscal year 2044 or on the date that the | ||||||
10 | State has amortized 100% of the total cost of benefits accrued | ||||||
11 | by July 1, 2013, whichever is earlier, the State has no further | ||||||
12 | obligation to make contributions to the System under this | ||||||
13 | subsection (a-5). | ||||||
14 | (a-10) Subject to the limitations provided in subsection | ||||||
15 | (a-15), beginning with State fiscal year 2014, the minimum | ||||||
16 | required contribution of employers under this Article shall be | ||||||
17 | determined as a percentage of projected payroll, and shall be | ||||||
18 | sufficient to produce an annual amount equal to: | ||||||
19 | (i) the employer's normal cost for that fiscal year for | ||||||
20 | employees who first became participating employees before | ||||||
21 | July 1, 2013; plus | ||||||
22 | (ii) the employer's normal cost for that fiscal year | ||||||
23 | for employees who first become participating employees on | ||||||
24 | or after July 1, 2013; plus | ||||||
25 | (iii) the amount required for that fiscal year to | ||||||
26 | amortize any unfunded actuarial accrued liability arising |
| |||||||
| |||||||
1 | on or after July 1, 2013 as a level percentage of payroll | ||||||
2 | over a 30-year rolling amortization period. | ||||||
3 | Any contributions required from an employer under | ||||||
4 | subsection (g) of this Section are in addition to the | ||||||
5 | contributions required under this subsection (a-10). | ||||||
6 | (a-15) For State fiscal year 2014, the required | ||||||
7 | contribution of employers under item (i) of subsection (a-10) | ||||||
8 | shall be reduced to an amount equal to 1% of payroll. | ||||||
9 | For each fiscal year thereafter, until the Board determines | ||||||
10 | and certifies to the Governor that employers are contributing | ||||||
11 | under item (i) of subsection (a-10) the full amount actually | ||||||
12 | specified by item (i) of subsection (a-10), the required | ||||||
13 | contribution of employers under item (i) of subsection (a-10) | ||||||
14 | shall be the percentage of payroll required under this | ||||||
15 | subsection from the previous fiscal year increased by 1% of | ||||||
16 | payroll for each of State fiscal years 2015 through 2019, and | ||||||
17 | increased by 0.5% of payroll for each State fiscal year after | ||||||
18 | 2019. | ||||||
19 | Contributions required of employers under items (ii) and | ||||||
20 | (iii) of subsection (a-10), under subsection (g), and under any | ||||||
21 | other applicable provision of this Section are in addition to | ||||||
22 | contributions required under item (i) of subsection (a-10). | ||||||
23 | (a-20) Beginning in State fiscal year 2015 and continuing | ||||||
24 | until the Board determines and certifies to the Governor that | ||||||
25 | employers are contributing under item (i) of subsection (a-10) | ||||||
26 | the full amount actually specified by item (i) of subsection |
| |||||||
| |||||||
1 | (a-10), the State shall make an additional contribution to the | ||||||
2 | System for each fiscal year, equal to the difference between | ||||||
3 | (1) the total contribution calculated under item (i) of | ||||||
4 | subsection (a-10) for all employers for that fiscal year, and | ||||||
5 | (2) the amount of such total contribution as reduced under | ||||||
6 | subsection (a-15). | ||||||
7 | The State contribution under this subsection (a-20) is in | ||||||
8 | addition to the State contributions required under subsection | ||||||
9 | (a-1) or (a-5) and any contributions required to be paid by the | ||||||
10 | State as an employer under subsections (a-10) and (g) of this | ||||||
11 | Section. | ||||||
12 | (b) If an employee is paid from trust or federal funds, the | ||||||
13 | employer
shall pay to the Board contributions from those funds | ||||||
14 | which are
sufficient to cover the accruing normal costs on | ||||||
15 | behalf of the employee.
However, universities having employees | ||||||
16 | who are compensated out of local
auxiliary funds, income funds, | ||||||
17 | or service enterprise funds are not required
to pay such | ||||||
18 | contributions on behalf of those employees. The local auxiliary
| ||||||
19 | funds, income funds, and service enterprise funds of | ||||||
20 | universities shall not be
considered trust funds for the | ||||||
21 | purpose of this Article, but funds of alumni
associations, | ||||||
22 | foundations, and athletic associations which are affiliated | ||||||
23 | with
the universities included as employers under this Article | ||||||
24 | and other employers
which do not receive State appropriations | ||||||
25 | are considered to be trust funds for
the purpose of this | ||||||
26 | Article.
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| |||||||
1 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
2 | each make
employer contributions to this System for their | ||||||
3 | respective firefighter
employees who participate in this | ||||||
4 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
5 | of contributions to be made by those municipalities shall
be | ||||||
6 | determined annually by the Board on the basis of the actuarial | ||||||
7 | assumptions
adopted by the Board and the recommendations of the | ||||||
8 | actuary, and shall be
expressed as a percentage of salary for | ||||||
9 | each such employee. The Board shall
certify the rate to the | ||||||
10 | affected municipalities as soon as may be practical.
The | ||||||
11 | employer contributions required under this subsection shall be | ||||||
12 | remitted by
the municipality to the System at the same time and | ||||||
13 | in the same manner as
employee contributions.
| ||||||
14 | (c) Through State fiscal year 1995: The total employer | ||||||
15 | contribution shall
be apportioned among the various funds of | ||||||
16 | the State and other employers,
whether trust, federal, or other | ||||||
17 | funds, in accordance with actuarial procedures
approved by the | ||||||
18 | Board. State of Illinois contributions for employers receiving
| ||||||
19 | State appropriations for personal services shall be payable | ||||||
20 | from appropriations
made to the employers or to the System. The | ||||||
21 | contributions for Class I
community colleges covering earnings | ||||||
22 | other than those paid from trust and
federal funds, shall be | ||||||
23 | payable solely from appropriations to the Illinois
Community | ||||||
24 | College Board or the System for employer contributions.
| ||||||
25 | (d) Beginning in State fiscal year 1996, the required State | ||||||
26 | contributions
to the System shall be appropriated directly to |
| |||||||
| |||||||
1 | the System and shall be payable
through vouchers issued in | ||||||
2 | accordance with subsection (c) of Section 15-165, except as | ||||||
3 | provided in subsection (g).
| ||||||
4 | (e) The State Comptroller shall draw warrants payable to | ||||||
5 | the System upon
proper certification by the System or by the | ||||||
6 | employer in accordance with the
appropriation laws and this | ||||||
7 | Code.
| ||||||
8 | (f) Normal costs under this Section means liability for
| ||||||
9 | pensions and other benefits which accrues to the System because | ||||||
10 | of the
credits earned for service rendered by the participants | ||||||
11 | during the
fiscal year and expenses of administering the | ||||||
12 | System, but shall not
include the principal of or any | ||||||
13 | redemption premium or interest on any bonds
issued by the Board | ||||||
14 | or any expenses incurred or deposits required in
connection | ||||||
15 | therewith.
| ||||||
16 | (g) The employer contributions under this subsection (g) | ||||||
17 | are no longer required after June 30, 2013. | ||||||
18 | If the amount of a participant's earnings for any academic | ||||||
19 | year used to determine the final rate of earnings, determined | ||||||
20 | on a full-time equivalent basis, exceeds the amount of his or | ||||||
21 | her earnings with the same employer for the previous academic | ||||||
22 | year, determined on a full-time equivalent basis, by more than | ||||||
23 | 6%, the participant's employer shall pay to the System, in | ||||||
24 | addition to all other payments required under this Section and | ||||||
25 | in accordance with guidelines established by the System, the | ||||||
26 | present value of the increase in benefits resulting from the |
| |||||||
| |||||||
1 | portion of the increase in earnings that is in excess of 6%. | ||||||
2 | This present value shall be computed by the System on the basis | ||||||
3 | of the actuarial assumptions and tables used in the most recent | ||||||
4 | actuarial valuation of the System that is available at the time | ||||||
5 | of the computation. The System may require the employer to | ||||||
6 | provide any pertinent information or documentation. | ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection (g), 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 and, if the | ||||||
15 | employer asserts that the calculation is subject to subsection | ||||||
16 | (h) or (i) of this Section, must include an affidavit setting | ||||||
17 | forth and attesting to all facts within the employer's | ||||||
18 | knowledge that are pertinent to the applicability of subsection | ||||||
19 | (h) or (i). Upon receiving a timely application for | ||||||
20 | recalculation, the System shall review the application and, if | ||||||
21 | appropriate, recalculate the amount due.
| ||||||
22 | The employer contributions required under this subsection | ||||||
23 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
24 | after receipt of the bill. If the employer contributions are | ||||||
25 | not paid within 90 days after receipt of the bill, then | ||||||
26 | interest will be charged at a rate equal to the System's annual |
| |||||||
| |||||||
1 | actuarially assumed rate of return on investment compounded | ||||||
2 | annually from the 91st day after receipt of the bill. Payments | ||||||
3 | must be concluded within 3 years after the employer's receipt | ||||||
4 | of the bill. | ||||||
5 | (h) This subsection (h) applies only to payments made or | ||||||
6 | salary increases given on or after June 1, 2005 but before July | ||||||
7 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
8 | require the System to refund any payments received before July | ||||||
9 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
10 | When assessing payment for any amount due under subsection | ||||||
11 | (g), the System shall exclude earnings increases paid to | ||||||
12 | participants under contracts or collective bargaining | ||||||
13 | agreements entered into, amended, or renewed before June 1, | ||||||
14 | 2005.
| ||||||
15 | When assessing payment for any amount due under subsection | ||||||
16 | (g), the System shall exclude earnings increases paid to a | ||||||
17 | participant at a time when the participant is 10 or more years | ||||||
18 | from retirement eligibility under Section 15-135.
| ||||||
19 | When assessing payment for any amount due under subsection | ||||||
20 | (g), the System shall exclude earnings increases resulting from | ||||||
21 | overload work, including a contract for summer teaching, or | ||||||
22 | overtime when the employer has certified to the System, and the | ||||||
23 | System has approved the certification, that: (i) in the case of | ||||||
24 | overloads (A) the overload work is for the sole purpose of | ||||||
25 | academic instruction in excess of the standard number of | ||||||
26 | instruction hours for a full-time employee occurring during the |
| |||||||
| |||||||
1 | academic year that the overload is paid and (B) the earnings | ||||||
2 | increases are equal to or less than the rate of pay for | ||||||
3 | academic instruction computed using the participant's current | ||||||
4 | salary rate and work schedule; and (ii) in the case of | ||||||
5 | overtime, the overtime was necessary for the educational | ||||||
6 | mission. | ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (g), the System shall exclude any earnings increase resulting | ||||||
9 | from (i) a promotion for which the employee moves from one | ||||||
10 | classification to a higher classification under the State | ||||||
11 | Universities Civil Service System, (ii) a promotion in academic | ||||||
12 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
13 | promotion that the Illinois Community College Board has | ||||||
14 | recommended in accordance with subsection (k) of this Section. | ||||||
15 | These earnings increases shall be excluded only if the | ||||||
16 | promotion is to a position that has existed and been filled by | ||||||
17 | a member for no less than one complete academic year and the | ||||||
18 | earnings increase as a result of the promotion is an increase | ||||||
19 | that results in an amount no greater than the average salary | ||||||
20 | paid for other similar positions. | ||||||
21 | (i) When assessing payment for any amount due under | ||||||
22 | subsection (g), the System shall exclude any salary increase | ||||||
23 | described in subsection (h) of this Section given on or after | ||||||
24 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
25 | collective bargaining agreement entered into, amended, or | ||||||
26 | renewed on or after June 1, 2005 but before July 1, 2011. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Section, any | ||||||
2 | payments made or salary increases given after June 30, 2014 | ||||||
3 | shall be used in assessing payment for any amount due under | ||||||
4 | subsection (g) of this Section.
| ||||||
5 | (j) The System shall prepare a report and file copies of | ||||||
6 | the report with the Governor and the General Assembly by | ||||||
7 | January 1, 2007 that contains all of the following information: | ||||||
8 | (1) The number of recalculations required by the | ||||||
9 | changes made to this Section by Public Act 94-1057 for each | ||||||
10 | employer. | ||||||
11 | (2) The dollar amount by which each employer's | ||||||
12 | contribution to the System was changed due to | ||||||
13 | recalculations required by Public Act 94-1057. | ||||||
14 | (3) The total amount the System received from each | ||||||
15 | employer as a result of the changes made to this Section by | ||||||
16 | Public Act 94-4. | ||||||
17 | (4) The increase in the required State contribution | ||||||
18 | resulting from the changes made to this Section by Public | ||||||
19 | Act 94-1057. | ||||||
20 | (k) The Illinois Community College Board shall adopt rules | ||||||
21 | for recommending lists of promotional positions submitted to | ||||||
22 | the Board by community colleges and for reviewing the | ||||||
23 | promotional lists on an annual basis. When recommending | ||||||
24 | promotional lists, the Board shall consider the similarity of | ||||||
25 | the positions submitted to those positions recognized for State | ||||||
26 | universities by the State Universities Civil Service System. |
| |||||||
| |||||||
1 | The Illinois Community College Board shall file a copy of its | ||||||
2 | findings with the System. The System shall consider the | ||||||
3 | findings of the Illinois Community College Board when making | ||||||
4 | determinations under this Section. The System shall not exclude | ||||||
5 | any earnings increases resulting from a promotion when the | ||||||
6 | promotion was not submitted by a community college. Nothing in | ||||||
7 | this subsection (k) shall require any community college to | ||||||
8 | submit any information to the Community College Board.
| ||||||
9 | (l) For purposes of determining the required State | ||||||
10 | contribution to the System, the value of the System's assets | ||||||
11 | shall be equal to the actuarial value of the System's assets, | ||||||
12 | which shall be calculated as follows: | ||||||
13 | As of June 30, 2008, the actuarial value of the System's | ||||||
14 | assets shall be equal to the market value of the assets as of | ||||||
15 | that date. In determining the actuarial value of the System's | ||||||
16 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
17 | gains or losses from investment return incurred in a fiscal | ||||||
18 | year shall be recognized in equal annual amounts over the | ||||||
19 | 5-year period following that fiscal year. | ||||||
20 | (m) For purposes of determining the required State | ||||||
21 | contribution to the system for a particular year, the actuarial | ||||||
22 | value of assets shall be assumed to earn a rate of return equal | ||||||
23 | to the system's actuarially assumed rate of return. | ||||||
24 | (n) If the System submits a voucher for monthly | ||||||
25 | contributions from the State as required by this Section and | ||||||
26 | the State fails to pay within 90 days of receipt of such a |
| |||||||
| |||||||
1 | voucher, the Board shall submit a written request to the | ||||||
2 | Comptroller seeking payment. A copy of the request shall be | ||||||
3 | filed with the Secretary of State, and the Secretary of State | ||||||
4 | shall provide copies to the Governor and General Assembly. No | ||||||
5 | earlier than the 16th day after filing a request with the | ||||||
6 | Secretary of State, the Board shall have the right to commence | ||||||
7 | a mandamus action in the Supreme Court of Illinois to compel | ||||||
8 | the Comptroller to satisfy the voucher by making payment from | ||||||
9 | the General Revenue Fund. This Section constitutes an express | ||||||
10 | waiver of the State's sovereign immunity solely to the extent | ||||||
11 | it permits the Board to commence a mandamus action in the | ||||||
12 | Illinois Supreme Court to compel the Comptroller to pay a | ||||||
13 | voucher for monthly contributions from the State as required in | ||||||
14 | this Section. | ||||||
15 | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | ||||||
16 | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
17 | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
| ||||||
18 | (40 ILCS 5/15-155.1 new) | ||||||
19 | Sec. 15-155.1. Actions to enforce payment by employers. | ||||||
20 | (a) If any employer fails to transmit to the System | ||||||
21 | contributions required of it
under this Article or | ||||||
22 | contributions collected by it from its participating
employees | ||||||
23 | for the purposes of this Article for more than
90 days after | ||||||
24 | the payment of such contributions is due, then the System, | ||||||
25 | after
giving notice to that employer, may certify to
the State |
| |||||||
| |||||||
1 | Comptroller the amounts of the delinquent payments, and the
| ||||||
2 | Comptroller shall deduct the amounts so certified or any part | ||||||
3 | thereof
from any payments or grants of State funds to the | ||||||
4 | employer and shall pay the amounts so deducted to the System. | ||||||
5 | If State
funds from which such deductions may be made are not | ||||||
6 | available, the System
may proceed against the employer to | ||||||
7 | recover the
amounts of the delinquent payments in the | ||||||
8 | appropriate circuit court. | ||||||
9 | (b) If any employer fails to transmit to the System
| ||||||
10 | contributions required of it under this Article or | ||||||
11 | contributions collected
by it from its participating employees | ||||||
12 | for the purposes of this Article for
more than 90 days after | ||||||
13 | the payment of the contributions is due, the System,
after | ||||||
14 | giving notice to the employer, may certify the amounts of the | ||||||
15 | delinquent payments to the county treasurer of any county in | ||||||
16 | which the employer is located, who shall deduct the amounts so | ||||||
17 | certified or any part thereof
from the amounts collected
from | ||||||
18 | any tax levied by the employer and shall pay the amount so | ||||||
19 | deducted to the System. | ||||||
20 | (c) If reports furnished to the System by the employer | ||||||
21 | involved are inadequate for the computation of the
amounts of | ||||||
22 | any payments, the System may provide for such audit
of the | ||||||
23 | records of the employer as may be required
to establish the | ||||||
24 | amounts of the delinquent payments. The employer shall make its | ||||||
25 | records available to the System for the
purpose of the audit. | ||||||
26 | The cost of the audit shall be added to the
amount of the |
| |||||||
| |||||||
1 | payments and shall be recovered by the System
from the employer | ||||||
2 | at the same time and in the
same manner as the payments are | ||||||
3 | recovered. | ||||||
4 | (40 ILCS 5/15-155.2 new) | ||||||
5 | Sec. 15-155.2. Individual employer accounts. | ||||||
6 | (a) The System shall create and maintain individual | ||||||
7 | accounts for each employer for the purposes of determining | ||||||
8 | employer contributions under subsection (a-10) of Section | ||||||
9 | 15-155. Each employer's account shall be notionally credited | ||||||
10 | with the employer's liabilities accruing after July 1, 2013 and | ||||||
11 | assets attributable to the employer's account that include (i) | ||||||
12 | employer contributions made pursuant to subsection (a-10) of | ||||||
13 | Section 15-155, (ii) other employer contributions from trust, | ||||||
14 | federal, and other funds, (iii) employee contributions made | ||||||
15 | after July 1, 2013, and (iv) income from investments. The | ||||||
16 | System may deduct reasonable administrative expenses from each | ||||||
17 | employer's account. | ||||||
18 | (b) In determining contributions required under subsection | ||||||
19 | (a-10) of Section 15-155, the System shall determine (i) a | ||||||
20 | blended rate of total normal cost that is applicable to | ||||||
21 | contributions made by the University of Illinois, Southern | ||||||
22 | Illinois University, Chicago State University, Eastern | ||||||
23 | Illinois University, Governors State University, Illinois | ||||||
24 | State University, Northeastern Illinois University, Northern | ||||||
25 | Illinois University, and Western Illinois University, (ii) a |
| |||||||
| |||||||
1 | blended rate of total normal cost that is applicable to | ||||||
2 | contributions made by each community college board, and (iii) a | ||||||
3 | rate equal to the total normal cost of the System that is | ||||||
4 | applicable to employers other than those listed under item (i) | ||||||
5 | or (ii). | ||||||
6 | (c) An employer may make written application with the Board | ||||||
7 | to have a separate rate of total normal cost determined for the | ||||||
8 | employer. Upon receiving the written application from an | ||||||
9 | employer, the Board may determine a total rate of normal cost | ||||||
10 | for the employer. The employer shall be responsible for any | ||||||
11 | cost incurred in making the determination of total normal cost. | ||||||
12 | The Board may establish rules for the administration of | ||||||
13 | this Section that include but are not limited to the date by | ||||||
14 | which an application must be submitted and the fiscal year in | ||||||
15 | which the determination will be used to determine the | ||||||
16 | employer's contribution required under subsection (a-10) of | ||||||
17 | Section 15-155. | ||||||
18 | (d) An employer whose determination of total normal cost | ||||||
19 | under subsection (c) is used to determine its contributions | ||||||
20 | required under subsection (a-10) of Section 15-155 may not be | ||||||
21 | included in the determination of a rate of total normal cost | ||||||
22 | under subsection (c) of this Section.
| ||||||
23 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
24 | Sec. 15-157. Employee Contributions.
| ||||||
25 | (a) Each participating employee
shall make contributions |
| |||||||
| |||||||
1 | towards the retirement
benefits payable under the retirement | ||||||
2 | program applicable to the
employee from each payment
of | ||||||
3 | earnings applicable to employment under this system on and | ||||||
4 | after the
date of becoming a participant as follows: Prior to | ||||||
5 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
6 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
7 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
8 | are to be considered as normal contributions for purposes
of | ||||||
9 | this Article.
| ||||||
10 | Each participant who is a police officer or firefighter | ||||||
11 | shall make normal
contributions of 8% of each payment of | ||||||
12 | earnings applicable to employment as a
police officer or | ||||||
13 | firefighter under this system on or after September 1, 1981,
| ||||||
14 | unless he or she files with the board within 60 days after the | ||||||
15 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
16 | the board receives notice that
he or she is employed as a | ||||||
17 | police officer or firefighter, whichever is later,
a written | ||||||
18 | notice waiving the retirement formula provided by Rule 4 of | ||||||
19 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
20 | participant had met the
conditions set forth in Section | ||||||
21 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
22 | 1991 but failed to make the additional normal contributions
| ||||||
23 | required by this paragraph, he or she may elect to pay the | ||||||
24 | additional
contributions plus compound interest at the | ||||||
25 | effective rate. If such payment
is received by the board, the | ||||||
26 | service shall be considered as police officer
service in |
| |||||||
| |||||||
1 | calculating the retirement annuity under Rule 4 of Section | ||||||
2 | 15-136.
While performing service described in clause (i) or | ||||||
3 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
4 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
5 | of determining the rate of employee contributions
under this | ||||||
6 | Section.
| ||||||
7 | (a-1) Notwithstanding any other provision of this Section, | ||||||
8 | an employee who participates in the cash balance plan under | ||||||
9 | Section 1-161 shall pay to the System for the purpose of | ||||||
10 | participating in the cash balance plan 8% of each payment of | ||||||
11 | earnings while he or she is a participant in the cash balance | ||||||
12 | plan. Each participant who is a police officer or firefighter | ||||||
13 | who participates in the cash balance plan under Section 1-161 | ||||||
14 | shall pay to the System for the purpose of participating in the | ||||||
15 | cash balance plan 9.5% of each payment of earnings while he or | ||||||
16 | she is participant in the cash balance plan. Employee | ||||||
17 | contributions required under subsections (a), (b), and (c) of | ||||||
18 | this Section shall not apply to an employee who participates in | ||||||
19 | the cash balance plan under Section 1-161. | ||||||
20 | (a-2) In addition to the contributions required under | ||||||
21 | either subsections (a), (b), and (c) or subsection (a-1), an | ||||||
22 | employee who elects to participate in the optional cash balance | ||||||
23 | plan under Section 1-162 shall pay to the System for the | ||||||
24 | purpose of participating in the optional cash balance plan a | ||||||
25 | contribution of 2% of each payment of earnings received while | ||||||
26 | he or she is a participant in the optional cash balance plan. |
| |||||||
| |||||||
1 | These contributions shall not be used for the purpose of | ||||||
2 | determining any benefit under this Article except as provided | ||||||
3 | in the optional cash balance plan. | ||||||
4 | (b) Starting September 1, 1969, each participating | ||||||
5 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
6 | earnings to finance a portion
of the cost of the annual | ||||||
7 | increases in retirement annuity provided under
Section 15-136, | ||||||
8 | except that with respect to participants in the
self-managed | ||||||
9 | plan this additional contribution shall be used to finance the
| ||||||
10 | benefits obtained under that retirement program.
| ||||||
11 | (c) In addition to the amounts described in subsections (a) | ||||||
12 | and (b) of this
Section, each participating employee shall make | ||||||
13 | contributions of 1% of earnings
applicable under this system on | ||||||
14 | and after August 1, 1959. The contributions
made under this | ||||||
15 | subsection (c) shall be considered as survivor's insurance
| ||||||
16 | contributions for purposes of this Article if the employee is | ||||||
17 | covered under
the traditional benefit package, and such | ||||||
18 | contributions shall be considered
as additional contributions | ||||||
19 | for purposes of this Article if the employee is
participating | ||||||
20 | in the self-managed plan or has elected to participate in the
| ||||||
21 | portable benefit package and has completed the applicable | ||||||
22 | one-year waiting
period. Contributions in excess of $80 during | ||||||
23 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
24 | of $120 during any fiscal year thereafter until
September 1, | ||||||
25 | 1971 shall be considered as additional contributions for | ||||||
26 | purposes
of this Article.
|
| |||||||
| |||||||
1 | (d) If the board by board rule so permits and subject to | ||||||
2 | such conditions
and limitations as may be specified in its | ||||||
3 | rules, a participant may make
other additional contributions of | ||||||
4 | such percentage of earnings or amounts as
the participant shall | ||||||
5 | elect in a written notice thereof received by the board.
| ||||||
6 | (e) That fraction of a participant's total accumulated | ||||||
7 | normal
contributions, the numerator of which is equal to the | ||||||
8 | number of years of
service in excess of that which is required | ||||||
9 | to qualify for the maximum
retirement annuity, and the | ||||||
10 | denominator of which is equal to the total
service of the | ||||||
11 | participant, shall be considered as accumulated additional
| ||||||
12 | contributions. The determination of the applicable maximum | ||||||
13 | annuity and
the adjustment in contributions required by this | ||||||
14 | provision shall be made
as of the date of the participant's | ||||||
15 | retirement.
| ||||||
16 | (f) Notwithstanding the foregoing, a participating | ||||||
17 | employee shall not
be required to make contributions under this | ||||||
18 | Section after the date upon
which continuance of such | ||||||
19 | contributions would otherwise cause his or her
retirement | ||||||
20 | annuity to exceed the maximum retirement annuity as specified | ||||||
21 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
22 | (g) A participating employee may make contributions for the | ||||||
23 | purchase of
service credit under this Article.
| ||||||
24 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
25 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
26 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-158.2)
| ||||||
2 | Sec. 15-158.2. Self-managed plan.
| ||||||
3 | (a) Purpose. The General Assembly finds that it is | ||||||
4 | important for colleges
and universities to be able to attract | ||||||
5 | and retain the most qualified employees
and that in order to | ||||||
6 | attract and retain these employees, colleges and
universities | ||||||
7 | should have the flexibility to provide a defined contribution
| ||||||
8 | plan as an alternative for eligible employees who elect not to | ||||||
9 | participate
in a defined benefit retirement program provided | ||||||
10 | under this Article.
Accordingly, the State Universities | ||||||
11 | Retirement System is hereby authorized to
establish and | ||||||
12 | administer a self-managed plan, which shall offer | ||||||
13 | participating
employees who became participating employees | ||||||
14 | before the effective date of this amendatory Act of the 97th | ||||||
15 | General Assembly the opportunity to accumulate assets for | ||||||
16 | retirement through a
combination of employee and employer | ||||||
17 | contributions that may be invested in
mutual funds, collective | ||||||
18 | investment funds, or other investment products and
used to | ||||||
19 | purchase annuity contracts, either fixed or variable or a | ||||||
20 | combination
thereof. The plan must be qualified under the | ||||||
21 | Internal Revenue Code of 1986.
| ||||||
22 | (b) Adoption by employers. Each employer subject to this | ||||||
23 | Article may
elect to adopt the self-managed plan established | ||||||
24 | under this Section until the effective date of this amendatory | ||||||
25 | Act of the 97th General Assembly ; this
election is irrevocable. |
| |||||||
| |||||||
1 | An employer's election to adopt the self-managed
plan makes | ||||||
2 | available to the eligible employees of that employer the | ||||||
3 | elections
described in Section 15-134.5.
| ||||||
4 | The State Universities Retirement System shall be the plan | ||||||
5 | sponsor for the
self-managed plan and shall prepare a plan | ||||||
6 | document and prescribe such rules
and procedures as are | ||||||
7 | considered necessary or desirable for the administration
of the | ||||||
8 | self-managed plan. Consistent with its fiduciary duty to the
| ||||||
9 | participants and beneficiaries of the self-managed plan, the | ||||||
10 | Board of Trustees
of the System may delegate aspects of plan | ||||||
11 | administration as it sees fit to
companies authorized to do | ||||||
12 | business in this State, to the employers, or to a
combination | ||||||
13 | of both.
| ||||||
14 | (c) Selection of service providers and funding vehicles. | ||||||
15 | The System, in
consultation with the employers, shall solicit | ||||||
16 | proposals to provide
administrative services and funding | ||||||
17 | vehicles for the self-managed plan from
insurance and annuity | ||||||
18 | companies and mutual fund companies, banks, trust
companies, or | ||||||
19 | other financial institutions authorized to do business in this
| ||||||
20 | State. In reviewing the proposals received and approving and | ||||||
21 | contracting with
no fewer than 2 and no more than 7 companies, | ||||||
22 | the Board of Trustees of the System shall
consider, among other | ||||||
23 | things, the following criteria:
| ||||||
24 | (1) the nature and extent of the benefits that would be | ||||||
25 | provided
to the participants;
| ||||||
26 | (2) the reasonableness of the benefits in relation to |
| |||||||
| |||||||
1 | the premium
charged;
| ||||||
2 | (3) the suitability of the benefits to the needs and
| ||||||
3 | interests of the participating employees and the employer;
| ||||||
4 | (4) the ability of the company to provide benefits | ||||||
5 | under the contract and
the financial stability of the | ||||||
6 | company; and
| ||||||
7 | (5) the efficacy of the contract in the recruitment and | ||||||
8 | retention of
employees.
| ||||||
9 | The System, in consultation with the employers, shall | ||||||
10 | periodically review
each approved company. A company may | ||||||
11 | continue to provide administrative
services and funding | ||||||
12 | vehicles for the self-managed plan only so long as
it continues | ||||||
13 | to be an approved company under contract with the Board.
| ||||||
14 | (d) Employee Direction. Employees who are participating in | ||||||
15 | the program
must be allowed to direct the transfer of their | ||||||
16 | account balances among the
various investment options offered, | ||||||
17 | subject to applicable contractual
provisions.
The participant | ||||||
18 | shall not be deemed a fiduciary by reason of providing such
| ||||||
19 | investment direction. A person who is a fiduciary shall not be | ||||||
20 | liable for any
loss resulting from such investment direction | ||||||
21 | and shall not be deemed to have
breached any fiduciary duty by | ||||||
22 | acting in accordance with that direction.
Neither the System | ||||||
23 | nor the employer guarantees any of the investments in the
| ||||||
24 | employee's account balances.
| ||||||
25 | (e) Participation. An employee eligible to participate in | ||||||
26 | the
self-managed plan must make a written election in |
| |||||||
| |||||||
1 | accordance with the
provisions of Section 15-134.5 and the | ||||||
2 | procedures established by the System.
Participation in the | ||||||
3 | self-managed plan by an electing employee shall begin
on the | ||||||
4 | first day of the first pay period following the later of the | ||||||
5 | date the
employee's election is filed with the System or the | ||||||
6 | effective date as of
which the employee's employer begins to | ||||||
7 | offer participation in the self-managed
plan. Employers may not | ||||||
8 | make the self-managed plan available earlier than
January 1, | ||||||
9 | 1998. An employee's participation in any other retirement | ||||||
10 | program
administered by the System under this Article shall | ||||||
11 | terminate on the date that
participation in the self-managed | ||||||
12 | plan begins.
| ||||||
13 | An employee who has elected to participate in the | ||||||
14 | self-managed plan under
this Section must continue | ||||||
15 | participation while employed in an eligible
position, and may | ||||||
16 | not participate in any other retirement program administered
by | ||||||
17 | the System under this Article while employed by that employer | ||||||
18 | or any other
employer that has adopted the self-managed plan, | ||||||
19 | unless the self-managed plan
is terminated in accordance with | ||||||
20 | subsection (i).
| ||||||
21 | Participation in the self-managed plan under this Section | ||||||
22 | shall constitute
membership in the State Universities | ||||||
23 | Retirement System.
| ||||||
24 | A participant under this Section shall be entitled to the | ||||||
25 | benefits of
Article 20 of this Code.
| ||||||
26 | (f) Establishment of Initial Account Balance. If at the |
| |||||||
| |||||||
1 | time an employee
elects to participate in the self-managed plan | ||||||
2 | he or she has rights and credits
in the System due to previous | ||||||
3 | participation in the traditional benefit package,
the System | ||||||
4 | shall establish for the employee an opening account balance in | ||||||
5 | the
self-managed plan, equal to the amount of contribution | ||||||
6 | refund that the employee
would be eligible to receive under | ||||||
7 | Section 15-154 if the employee terminated
employment on that | ||||||
8 | date and elected a refund of contributions, except that this
| ||||||
9 | hypothetical refund shall include interest at the effective | ||||||
10 | rate for the
respective years. The System shall transfer assets | ||||||
11 | from the defined benefit
retirement program to the self-managed | ||||||
12 | plan, as a tax free transfer in
accordance with Internal | ||||||
13 | Revenue Service guidelines, for purposes of funding
the | ||||||
14 | employee's opening account balance.
| ||||||
15 | (g) No Duplication of Service Credit. Notwithstanding any | ||||||
16 | other provision
of this Article, an employee may not purchase | ||||||
17 | or receive service or service
credit applicable to any other | ||||||
18 | retirement program administered by the System
under this | ||||||
19 | Article for any period during which the employee was a | ||||||
20 | participant
in the self-managed plan established under this | ||||||
21 | Section.
| ||||||
22 | (h) Contributions. The self-managed plan shall be funded by | ||||||
23 | contributions
from employees participating in the self-managed | ||||||
24 | plan and employer
contributions as provided in this Section.
| ||||||
25 | The contribution rate for employees participating in the | ||||||
26 | self-managed plan
under this Section shall be equal to the |
| |||||||
| |||||||
1 | employee contribution rate for other
participants in the | ||||||
2 | System, as provided in Section 15-157. This required
| ||||||
3 | contribution shall be made as an "employer pick-up" under | ||||||
4 | Section 414(h) of the
Internal Revenue Code of 1986 or any | ||||||
5 | successor Section thereof. Any employee
participating in the | ||||||
6 | System's traditional benefit package prior to his or her
| ||||||
7 | election to participate in the self-managed plan shall continue | ||||||
8 | to have the
employer pick up the contributions required under | ||||||
9 | Section 15-157. However, the
amounts picked up after the | ||||||
10 | election of the self-managed plan shall be remitted
to and | ||||||
11 | treated as assets of the self-managed plan. In no event shall | ||||||
12 | an
employee have an option of receiving these amounts in cash. | ||||||
13 | Employees may make
additional contributions to the
| ||||||
14 | self-managed plan in accordance with procedures prescribed by | ||||||
15 | the System, to
the extent permitted under rules prescribed by | ||||||
16 | the System.
| ||||||
17 | The program shall provide for employer contributions to be | ||||||
18 | credited to each
self-managed plan participant at a rate of | ||||||
19 | 7.6%
of the participating employee's salary, less the amount | ||||||
20 | used by
the System to provide disability benefits for the | ||||||
21 | employee.
The amounts so credited
shall be paid into the | ||||||
22 | participant's self-managed plan accounts in a manner
to be | ||||||
23 | prescribed by the System.
| ||||||
24 | An amount of employer contribution, not exceeding 1% of the | ||||||
25 | participating
employee's salary, shall be used for the purpose | ||||||
26 | of providing the disability
benefits of the System to the |
| |||||||
| |||||||
1 | employee. Prior to the beginning of each plan
year under the | ||||||
2 | self-managed plan, the Board of Trustees shall determine, as a
| ||||||
3 | percentage of salary, the amount of employer contributions to | ||||||
4 | be allocated
during that plan year for providing disability | ||||||
5 | benefits for employees in the
self-managed plan.
| ||||||
6 | The State of Illinois shall make contributions by | ||||||
7 | appropriations to the
System of the employer contributions | ||||||
8 | required for employees who participate in
the self-managed plan | ||||||
9 | under this Section.
The amount required shall
be certified by | ||||||
10 | the Board of Trustees of the System and paid by the State in
| ||||||
11 | accordance with Section 15-165. The System shall not be | ||||||
12 | obligated to remit the
required employer contributions to any | ||||||
13 | of the insurance and annuity
companies, mutual fund
companies, | ||||||
14 | banks, trust companies, financial institutions, or other | ||||||
15 | sponsors
of any of the funding vehicles offered under the | ||||||
16 | self-managed plan
until it has received the required employer | ||||||
17 | contributions from the State. In
the event of a deficiency in | ||||||
18 | the amount of State contributions, the System
shall implement | ||||||
19 | those procedures described in subsection (c) of Section 15-165
| ||||||
20 | to obtain the required funding from the General Revenue
Fund.
| ||||||
21 | (i) Termination. The self-managed plan authorized under | ||||||
22 | this
Section may be terminated by the System, subject to the | ||||||
23 | terms
of any relevant
contracts, and the System shall have no | ||||||
24 | obligation to
reestablish the self-managed plan under this | ||||||
25 | Section. This Section does not
create a right
to continued | ||||||
26 | participation in any self-managed plan set up by the System |
| |||||||
| |||||||
1 | under
this Section. If the self-managed plan is terminated,
the | ||||||
2 | participants shall have the right to participate in one of the | ||||||
3 | other
retirement programs offered by the System and receive | ||||||
4 | service credit in such
other retirement program for any years | ||||||
5 | of employment following the termination.
| ||||||
6 | (j) Vesting; Withdrawal; Return to Service. A participant | ||||||
7 | in the
self-managed plan becomes vested in the employer | ||||||
8 | contributions credited to his
or her accounts in the | ||||||
9 | self-managed plan on the earliest to occur of the
following: | ||||||
10 | (1) completion of 5 years of service with an employer described | ||||||
11 | in
Section 15-106; (2) the death of the participating employee | ||||||
12 | while employed by
an employer described in Section 15-106, if | ||||||
13 | the participant has completed at
least 1 1/2 years of service; | ||||||
14 | or (3) the participant's election to retire and
apply the | ||||||
15 | reciprocal provisions of Article 20 of this Code.
| ||||||
16 | A participant in the self-managed plan who receives a | ||||||
17 | distribution of his or
her vested amounts from the self-managed | ||||||
18 | plan
while not yet eligible for retirement under this Article
| ||||||
19 | (and Article 20, if applicable) shall forfeit all service | ||||||
20 | credit
and accrued rights in the System; if subsequently | ||||||
21 | re-employed, the participant
shall be considered a new
| ||||||
22 | employee. If a former participant again becomes a participating | ||||||
23 | employee (or
becomes employed by a participating system under | ||||||
24 | Article 20 of this Code) and
continues as such for at least 2 | ||||||
25 | years, all such rights, service credits, and
previous status as | ||||||
26 | a participant shall be restored upon repayment of the amount
of |
| |||||||
| |||||||
1 | the distribution, without interest.
| ||||||
2 | (k) Benefit amounts. If an employee who is vested in | ||||||
3 | employer
contributions terminates employment, the employee | ||||||
4 | shall be entitled to a
benefit which is based on the
account | ||||||
5 | values attributable to both employer and
employee | ||||||
6 | contributions and any
investment return thereon.
| ||||||
7 | If an employee who is not vested in employer contributions | ||||||
8 | terminates
employment, the employee shall be entitled to a | ||||||
9 | benefit based solely on the
account values attributable to the | ||||||
10 | employee's contributions and any investment
return thereon, | ||||||
11 | and the employer contributions and any investment return
| ||||||
12 | thereon shall be forfeited. Any employer contributions which | ||||||
13 | are forfeited
shall be held in escrow by the
company investing | ||||||
14 | those contributions and shall be used as directed by the
System | ||||||
15 | for future allocations of employer contributions or for the | ||||||
16 | restoration
of amounts previously forfeited by former | ||||||
17 | participants who again become
participating employees.
| ||||||
18 | (Source: P.A. 93-347, eff. 7-24-03.)
| ||||||
19 | (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| ||||||
20 | Sec. 15-159. Board created. | ||||||
21 | (a) A board of trustees constituted as provided in
this | ||||||
22 | Section shall administer this System. The board shall be known | ||||||
23 | as the
Board of Trustees of the State Universities Retirement | ||||||
24 | System.
| ||||||
25 | (b) Until July 1, 1995, the Board of Trustees shall be |
| |||||||
| |||||||
1 | constituted
as follows:
| ||||||
2 | Two trustees shall be members of the Board of Trustees of | ||||||
3 | the
University of Illinois, one shall be a member of
the Board | ||||||
4 | of Trustees of Southern Illinois University, one shall be a | ||||||
5 | member
of the Board of Trustees of Chicago State University, | ||||||
6 | one shall be a member of
the Board of Trustees of Eastern | ||||||
7 | Illinois University, one shall be a member of
the Board of | ||||||
8 | Trustees of Governors State University, one shall be a member | ||||||
9 | of
the Board of Trustees of Illinois State University, one | ||||||
10 | shall be a member of
the Board of Trustees of Northeastern | ||||||
11 | Illinois University, one shall be a
member of the Board of | ||||||
12 | Trustees of Northern Illinois University, one shall be a
member | ||||||
13 | of the Board of Trustees of Western Illinois University, and | ||||||
14 | one shall
be a member of the Illinois Community College Board, | ||||||
15 | selected in each case by
their respective boards, and 2 shall
| ||||||
16 | be participants of the system appointed by the Governor for a 6 | ||||||
17 | year term with
the first appointment made pursuant to this | ||||||
18 | amendatory Act of 1984 to be
effective September 1, 1985, and | ||||||
19 | one shall be a participant appointed by the
Illinois Community | ||||||
20 | College Board for a 6 year term, and one shall be a
participant | ||||||
21 | appointed by the Board of Trustees of the University of | ||||||
22 | Illinois
for a 6 year term, and one shall be a participant or | ||||||
23 | annuitant of the system
who is a senior citizen age 60 or older | ||||||
24 | appointed by the Governor for a 6 year
term with the first | ||||||
25 | appointment to be effective September 1, 1985.
| ||||||
26 | The terms of all trustees holding office under this |
| |||||||
| |||||||
1 | subsection (b) on
June 30, 1995 shall terminate at the end of | ||||||
2 | that day and the Board shall
thereafter be constituted as | ||||||
3 | provided in subsection (c).
| ||||||
4 | (c) Beginning July 1, 1995, the Board of Trustees shall be
| ||||||
5 | constituted as follows:
| ||||||
6 | The Board shall consist of 9 trustees appointed by the | ||||||
7 | Governor. Two of the
trustees, designated at the time of | ||||||
8 | appointment, shall be participants of the
System. Two of the | ||||||
9 | trustees, designated at the time of appointment, shall be
| ||||||
10 | annuitants of the System who are receiving retirement annuities | ||||||
11 | under this
Article. The 5 remaining trustees may, but need not, | ||||||
12 | be participants or
annuitants of the System.
| ||||||
13 | The term of office of trustees appointed under this | ||||||
14 | subsection (c)
shall be 6 years, beginning on July 1. However, | ||||||
15 | of the initial trustees
appointed under this subsection (c), 3 | ||||||
16 | shall be appointed for terms of 2 years,
3 shall be appointed | ||||||
17 | for terms of 4 years, and 3 shall be appointed for terms
of 6 | ||||||
18 | years, to be designated by the Governor at the time of | ||||||
19 | appointment.
| ||||||
20 | The terms of all trustees holding office under this | ||||||
21 | subsection (c) on the effective date of this amendatory Act of | ||||||
22 | the 96th General Assembly shall terminate on that effective | ||||||
23 | date. The Governor shall make nominations for appointment under | ||||||
24 | this Section within 60 days after the effective date of this | ||||||
25 | amendatory Act of the 96th General Assembly. A trustee sitting | ||||||
26 | on the board on the effective date of this amendatory Act of |
| |||||||
| |||||||
1 | the 96th General Assembly may not hold over in office for more | ||||||
2 | than 90 days after the effective date of this amendatory Act of | ||||||
3 | the 96th General Assembly. Nothing in this Section shall | ||||||
4 | prevent the Governor from making a temporary appointment or | ||||||
5 | nominating a trustee holding office on the day before the | ||||||
6 | effective date of this amendatory Act of the 96th General | ||||||
7 | Assembly. | ||||||
8 | (d) Beginning on the 90th day after the effective date of | ||||||
9 | this amendatory Act of the 96th General Assembly, the Board of | ||||||
10 | Trustees shall be constituted as follows: | ||||||
11 | (1) The Chairperson of the Board of Higher Education, | ||||||
12 | who shall act as chairperson of this Board. | ||||||
13 | (2) Two Four trustees appointed by the Governor with | ||||||
14 | the advice and consent of the Senate who may not be members | ||||||
15 | of the system or hold an elective State office and who | ||||||
16 | shall serve for a term of 6 years, except that the terms of | ||||||
17 | the initial appointees under this subsection (d) shall be | ||||||
18 | as follows: 1 2 for a term of 3 years and 1 2 for a term of | ||||||
19 | 6 years. | ||||||
20 | (3) Four active participants of the system to be | ||||||
21 | elected from the contributing membership of the system by | ||||||
22 | the
contributing members, no more than 2 of which may be | ||||||
23 | from any of the University of Illinois campuses, who shall | ||||||
24 | serve for a term of 6 years, except that the terms of the | ||||||
25 | initial electees shall be as follows: 2 for a term of 3 | ||||||
26 | years and 2 for a term of 6 years. |
| |||||||
| |||||||
1 | (4) Two annuitants of
the system who have been | ||||||
2 | annuitants for at least one full year, to be
elected from | ||||||
3 | and by the annuitants of the system, no more than one of | ||||||
4 | which may be from any of the University of Illinois | ||||||
5 | campuses, who shall serve for a term of 6 years, except | ||||||
6 | that the terms of the initial electees shall be as follows: | ||||||
7 | one for a term of 3 years and one for a term of 6 years. | ||||||
8 | (5) One trustee to be elected by the trustees of the | ||||||
9 | boards of trustees of community colleges in the State. | ||||||
10 | (6) One trustee who serves as a trustee on the board of | ||||||
11 | trustees of a public institution of higher education, as | ||||||
12 | defined in Section 1 of the Board of Higher Education Act, | ||||||
13 | to be elected by the trustees of public institutions of | ||||||
14 | higher education. | ||||||
15 | The 2 positions created by this amendatory Act of the 97th | ||||||
16 | General Assembly shall be filled as soon as practicable by | ||||||
17 | appointment of the Board, and the persons so appointed shall | ||||||
18 | serve until such time as the System can conduct elections to | ||||||
19 | fill those positions. | ||||||
20 | For the purposes of this Section, the Governor may make a | ||||||
21 | nomination and the Senate may confirm the nominee in advance of | ||||||
22 | the commencement of the nominee's term of office. | ||||||
23 | (e) The 6 elected trustees shall be elected within 90 days | ||||||
24 | after the effective date of this amendatory Act of the 96th | ||||||
25 | General Assembly for a term beginning on the 90th day after the | ||||||
26 | effective date of this amendatory Act. Trustees shall be |
| |||||||
| |||||||
1 | elected thereafter as terms expire for a 6-year term beginning | ||||||
2 | July 15 next following their election, and such election shall | ||||||
3 | be held on May 1, or on May 2 when May 1 falls on a Sunday. The | ||||||
4 | board may establish rules for the election of trustees to | ||||||
5 | implement the provisions of this amendatory Act of the 96th | ||||||
6 | General Assembly and for future elections. Candidates for the | ||||||
7 | participating trustee shall be nominated by petitions in | ||||||
8 | writing, signed by not less than 400 participants with their | ||||||
9 | addresses shown opposite their names. Candidates for the | ||||||
10 | annuitant trustee shall be nominated by petitions in writing, | ||||||
11 | signed by not less than 100 annuitants with their addresses | ||||||
12 | shown opposite their names. If there is more than one qualified | ||||||
13 | nominee for each elected trustee, then the board shall conduct | ||||||
14 | a secret ballot election by mail for that trustee, in | ||||||
15 | accordance with rules as established by the board. If there is | ||||||
16 | only one qualified person nominated by petition for each | ||||||
17 | elected trustee, then the election as required by this Section | ||||||
18 | shall not be conducted for that trustee and the board shall | ||||||
19 | declare such nominee duly elected. A vacancy occurring in the | ||||||
20 | elective membership of the board shall be filled for the | ||||||
21 | unexpired term by the elected trustees serving on the board for | ||||||
22 | the remainder of the term. | ||||||
23 | (f) A vacancy on the board of trustees caused by | ||||||
24 | resignation,
death, expiration of term of office, or other | ||||||
25 | reason shall be filled by a
qualified person appointed by the | ||||||
26 | Governor for the remainder of the unexpired
term.
|
| |||||||
| |||||||
1 | (g) Trustees (other than the trustees incumbent on June 30, | ||||||
2 | 1995 or as provided in subsection (c) of this Section)
shall | ||||||
3 | continue in office until their respective successors are | ||||||
4 | appointed
and have qualified, except that a trustee appointed | ||||||
5 | to one of the
participant positions shall be disqualified | ||||||
6 | immediately upon the termination of
his or her status as a | ||||||
7 | participant and a trustee appointed to one of the
annuitant | ||||||
8 | positions shall be disqualified immediately upon the | ||||||
9 | termination of
his or her status as an annuitant receiving a | ||||||
10 | retirement annuity.
| ||||||
11 | (h) Each trustee must take an oath of office
before a | ||||||
12 | notary public of this State and shall qualify as a trustee upon | ||||||
13 | the
presentation to the board of a certified copy of the oath. | ||||||
14 | The oath must state
that the person will diligently and | ||||||
15 | honestly administer the affairs of the
retirement system, and | ||||||
16 | will not knowingly violate or wilfully permit to be
violated | ||||||
17 | any provisions of this Article.
| ||||||
18 | Each trustee shall serve without compensation but shall be | ||||||
19 | reimbursed for
expenses necessarily incurred in attending | ||||||
20 | board meetings and carrying out his
or her duties as a trustee | ||||||
21 | or officer of the system.
| ||||||
22 | (i) This amendatory Act of 1995 is intended to supersede | ||||||
23 | the changes made
to this Section by Public Act 89-4.
| ||||||
24 | (Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
| ||||||
25 | (40 ILCS 5/15-163) (from Ch. 108 1/2, par. 15-163)
|
| |||||||
| |||||||
1 | Sec. 15-163. To consider applications and authorize | ||||||
2 | payments.
| ||||||
3 | To consider and pass on all certifications of employment | ||||||
4 | and applications for annuities and benefits; to
authorize the | ||||||
5 | granting of annuities and benefits; and to limit or suspend
any | ||||||
6 | payment or payments, all in accordance with this Article.
| ||||||
7 | (Source: Laws 1963, p. 161.)
| ||||||
8 | (40 ILCS 5/15-198)
| ||||||
9 | Sec. 15-198. 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 or Article 1 , that results from | ||||||
15 | an amendment to this Code that takes effect after the effective | ||||||
16 | date of this amendatory Act of the 94th General Assembly. "New | ||||||
17 | benefit increase", however, does not include any benefit | ||||||
18 | increase resulting from the changes made to this Article or | ||||||
19 | Article 1 by this amendatory Act of the 97th General Assembly. | ||||||
20 | (b) Notwithstanding any other provision of this Code or any | ||||||
21 | subsequent amendment to this Code, every new benefit increase | ||||||
22 | is subject to this Section and shall be deemed to be granted | ||||||
23 | only in conformance with and contingent upon compliance with | ||||||
24 | the provisions of this Section.
| ||||||
25 | (c) The Public Act enacting a new benefit increase must |
| |||||||
| |||||||
1 | identify and provide for payment to the System of additional | ||||||
2 | funding at least sufficient to fund the resulting annual | ||||||
3 | increase in cost to the System as it accrues. | ||||||
4 | Every new benefit increase is contingent upon the General | ||||||
5 | Assembly providing the additional funding required under this | ||||||
6 | subsection. The Commission on Government Forecasting and | ||||||
7 | Accountability shall analyze whether adequate additional | ||||||
8 | funding has been provided for the new benefit increase and | ||||||
9 | shall report its analysis to the Public Pension Division of the | ||||||
10 | Department of Financial and Professional Regulation. A new | ||||||
11 | benefit increase created by a Public Act that does not include | ||||||
12 | the additional funding required under this subsection is null | ||||||
13 | and void. If the Public Pension Division determines that the | ||||||
14 | additional funding provided for a new benefit increase under | ||||||
15 | this subsection is or has become inadequate, it may so certify | ||||||
16 | to the Governor and the State Comptroller and, in the absence | ||||||
17 | of corrective action by the General Assembly, the new benefit | ||||||
18 | increase shall expire at the end of the fiscal year in which | ||||||
19 | the certification is made.
| ||||||
20 | (d) Every new benefit increase shall expire 5 years after | ||||||
21 | its effective date or on such earlier date as may be specified | ||||||
22 | in the language enacting the new benefit increase or provided | ||||||
23 | under subsection (c). This does not prevent the General | ||||||
24 | Assembly from extending or re-creating a new benefit increase | ||||||
25 | by law. | ||||||
26 | (e) Except as otherwise provided in the language creating |
| |||||||
| |||||||
1 | the new benefit increase, a new benefit increase that expires | ||||||
2 | under this Section continues to apply to persons who applied | ||||||
3 | and qualified for the affected benefit while the new benefit | ||||||
4 | increase was in effect and to the affected beneficiaries and | ||||||
5 | alternate payees of such persons, but does not apply to any | ||||||
6 | other person, including without limitation a person who | ||||||
7 | continues in service after the expiration date and did not | ||||||
8 | apply and qualify for the affected benefit while the new | ||||||
9 | benefit increase was in effect.
| ||||||
10 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
11 | (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
| ||||||
12 | Sec. 16-106. Teacher. "Teacher": The following | ||||||
13 | individuals, provided
that, for employment prior to July 1, | ||||||
14 | 1990, they are employed on a
full-time basis, or if not | ||||||
15 | full-time, on a permanent and continuous basis
in a position in | ||||||
16 | which services are expected to be rendered for at least
one | ||||||
17 | school term:
| ||||||
18 | (1) Any educational, administrative, professional or | ||||||
19 | other staff employed
in the public common schools included | ||||||
20 | within this system in a position
requiring certification | ||||||
21 | under the law governing the certification of
teachers;
| ||||||
22 | (2) Any educational, administrative, professional or | ||||||
23 | other staff employed
in any facility of the Department of | ||||||
24 | Children and Family Services or the
Department of Human | ||||||
25 | Services, in a position requiring certification under
the |
| |||||||
| |||||||
1 | law governing the certification of teachers, and any person | ||||||
2 | who (i)
works in such a position for the Department of | ||||||
3 | Corrections, (ii) was a member
of this System on May 31, | ||||||
4 | 1987, and (iii) did not elect to become a member of
the | ||||||
5 | State Employees' Retirement System pursuant to Section | ||||||
6 | 14-108.2 of this
Code; except that "teacher" does not | ||||||
7 | include any person who (A) becomes
a security employee of | ||||||
8 | the Department of Human Services, as defined in
Section | ||||||
9 | 14-110, after June 28, 2001 (the effective date of Public | ||||||
10 | Act
92-14), or (B) becomes a member of the State Employees'
| ||||||
11 | Retirement System pursuant to Section 14-108.2c of this | ||||||
12 | Code;
| ||||||
13 | (3) Any regional superintendent of schools, assistant | ||||||
14 | regional
superintendent of schools, State Superintendent | ||||||
15 | of Education; any person
employed by the State Board of | ||||||
16 | Education as an executive; any executive of
the boards | ||||||
17 | engaged in the service of public common school education in
| ||||||
18 | school districts covered under this system of which the | ||||||
19 | State
Superintendent of Education is an ex-officio member;
| ||||||
20 | (4) Any employee of a school board association | ||||||
21 | operating in compliance
with Article 23 of the School Code | ||||||
22 | who is certificated under the law
governing the | ||||||
23 | certification of teachers , provided that he or she becomes | ||||||
24 | such an employee before the effective date of this | ||||||
25 | amendatory Act of the 97th General Assembly ;
| ||||||
26 | (5) Any person employed by the retirement system
who:
|
| |||||||
| |||||||
1 | (i) was an employee of and a participant in the | ||||||
2 | system on August 17,
2001 (the effective date of Public | ||||||
3 | Act 92-416), or
| ||||||
4 | (ii) becomes an employee of the system on or after | ||||||
5 | August 17, 2001;
| ||||||
6 | (6) Any educational, administrative, professional or | ||||||
7 | other staff
employed by and under the supervision and | ||||||
8 | control of a regional
superintendent of schools, provided | ||||||
9 | such employment position requires the
person to be | ||||||
10 | certificated under the law governing the certification of
| ||||||
11 | teachers and is in an educational program serving 2 or more | ||||||
12 | districts in
accordance with a joint agreement authorized | ||||||
13 | by the School Code or by federal
legislation;
| ||||||
14 | (7) Any educational, administrative, professional or | ||||||
15 | other staff employed
in an educational program serving 2 or | ||||||
16 | more school districts in accordance
with a joint agreement | ||||||
17 | authorized by the School Code or by federal
legislation and | ||||||
18 | in a position requiring certification under the laws
| ||||||
19 | governing the certification of teachers;
| ||||||
20 | (8) Any officer or employee of a statewide teacher | ||||||
21 | organization or
officer of a national teacher organization | ||||||
22 | who is certified under the law
governing certification of | ||||||
23 | teachers, provided: (i) the individual had
previously | ||||||
24 | established creditable service under this Article, (ii) | ||||||
25 | the
individual files with the system an irrevocable | ||||||
26 | election to become a member before the effective date of |
| |||||||
| |||||||
1 | this amendatory Act of the 97th General Assembly,
(iii) the | ||||||
2 | individual does not receive credit for such service under | ||||||
3 | any
other Article of this Code, and (iv) the individual | ||||||
4 | first became an officer or employee of the teacher | ||||||
5 | organization and becomes a member before the effective date | ||||||
6 | of this amendatory Act of the 97th General Assembly;
| ||||||
7 | (9) Any educational, administrative, professional, or | ||||||
8 | other staff
employed in a charter school operating in | ||||||
9 | compliance with the Charter
Schools Law who is certificated | ||||||
10 | under the law governing the certification
of teachers.
| ||||||
11 | (10) Any person employed, on the effective date of this | ||||||
12 | amendatory Act of the 94th General Assembly, by the | ||||||
13 | Macon-Piatt Regional Office of Education in a | ||||||
14 | birth-through-age-three pilot program receiving funds | ||||||
15 | under Section 2-389 of the School Code who is required by | ||||||
16 | the Macon-Piatt Regional Office of Education to hold a | ||||||
17 | teaching certificate, provided that the Macon-Piatt | ||||||
18 | Regional Office of Education makes an election, within 6 | ||||||
19 | months after the effective date of this amendatory Act of | ||||||
20 | the 94th General Assembly, to have the person participate | ||||||
21 | in the system. Any service established prior to the | ||||||
22 | effective date of this amendatory Act of the 94th General | ||||||
23 | Assembly for service as an employee of the Macon-Piatt | ||||||
24 | Regional Office of Education in a birth-through-age-three | ||||||
25 | pilot program receiving funds under Section 2-389 of the | ||||||
26 | School Code shall be considered service as a teacher if |
| |||||||
| |||||||
1 | employee and employer contributions have been received by | ||||||
2 | the system and the system has not refunded those | ||||||
3 | contributions.
| ||||||
4 | An annuitant receiving a retirement annuity under this | ||||||
5 | Article or under
Article 17 of this Code who is employed by a | ||||||
6 | board of education
or other employer as permitted under Section | ||||||
7 | 16-118
or 16-150.1 is not a "teacher" for purposes of this | ||||||
8 | Article. A person who
has received a single-sum retirement | ||||||
9 | benefit under Section 16-136.4 of this
Article is not a | ||||||
10 | "teacher" for purposes of this Article.
| ||||||
11 | (Source: P.A. 97-651, eff. 1-5-12.)
| ||||||
12 | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
| ||||||
13 | Sec. 16-127. Computation of creditable service.
| ||||||
14 | (a) Each member shall receive regular credit for all
| ||||||
15 | service as a teacher from the date membership begins, for which
| ||||||
16 | satisfactory evidence is supplied and all contributions have | ||||||
17 | been paid.
| ||||||
18 | (b) The following periods of service shall earn optional | ||||||
19 | credit and
each member shall receive credit for all such | ||||||
20 | service for which
satisfactory evidence is supplied and all | ||||||
21 | contributions have been paid as
of the date specified:
| ||||||
22 | (1) Prior service as a teacher.
| ||||||
23 | (2) Service in a capacity essentially similar or | ||||||
24 | equivalent to that of a
teacher, in the public common | ||||||
25 | schools in school districts in this State not
included |
| |||||||
| |||||||
1 | within the provisions of this System, or of any other | ||||||
2 | State,
territory, dependency or possession of the United | ||||||
3 | States, or in schools
operated by or under the auspices of | ||||||
4 | the United States, or under the
auspices of any agency or | ||||||
5 | department of any other State, and service during
any | ||||||
6 | period of professional speech correction or special | ||||||
7 | education
experience for a public agency within this State | ||||||
8 | or any other State,
territory, dependency or possession of | ||||||
9 | the United States, and service prior
to February 1, 1951 as | ||||||
10 | a recreation worker for the Illinois Department of
Public | ||||||
11 | Safety, for a period not exceeding the lesser of 2/5 of the | ||||||
12 | total
creditable service of the member or 10 years. The | ||||||
13 | maximum service of 10
years which is allowable under this | ||||||
14 | paragraph shall be reduced by the
service credit which is | ||||||
15 | validated by other retirement systems under
paragraph (i) | ||||||
16 | of Section 15-113 and paragraph 1 of Section 17-133. Credit
| ||||||
17 | granted under this paragraph may not be used in | ||||||
18 | determination of a
retirement annuity or disability | ||||||
19 | benefits unless the member has at least 5
years of | ||||||
20 | creditable service earned subsequent to this employment | ||||||
21 | with one
or more of the following systems: Teachers' | ||||||
22 | Retirement System of the State
of Illinois, State | ||||||
23 | Universities Retirement System, and the Public School
| ||||||
24 | Teachers' Pension and Retirement Fund of Chicago. Whenever | ||||||
25 | such service
credit exceeds the maximum allowed for all | ||||||
26 | purposes of this Article, the
first service rendered in |
| |||||||
| |||||||
1 | point of time shall be considered.
The changes to this | ||||||
2 | subdivision (b)(2) made by Public Act 86-272 shall
apply | ||||||
3 | not only to persons who on or after its effective date | ||||||
4 | (August 23,
1989) are in service as a teacher under the | ||||||
5 | System, but also to persons
whose status as such a teacher | ||||||
6 | terminated prior to such effective date,
whether or not | ||||||
7 | such person is an annuitant on that date.
| ||||||
8 | (3) Any periods immediately following teaching | ||||||
9 | service, under this
System or under Article 17, (or | ||||||
10 | immediately following service prior to
February 1, 1951 as | ||||||
11 | a recreation worker for the Illinois Department of
Public | ||||||
12 | Safety) spent in active service with the military forces of | ||||||
13 | the
United States; periods spent in educational programs | ||||||
14 | that prepare for
return to teaching sponsored by the | ||||||
15 | federal government following such
active military service; | ||||||
16 | if a teacher returns to teaching service within
one | ||||||
17 | calendar year after discharge or after the completion of | ||||||
18 | the
educational program, a further period, not exceeding | ||||||
19 | one calendar year,
between time spent in military service | ||||||
20 | or in such educational programs and
the return to | ||||||
21 | employment as a teacher under this System; and a period of | ||||||
22 | up
to 2 years of active military service not immediately | ||||||
23 | following employment
as a teacher.
| ||||||
24 | The changes to this Section and Section 16-128 relating | ||||||
25 | to military
service made by P.A. 87-794 shall apply not | ||||||
26 | only to persons who on or after its
effective date are in |
| |||||||
| |||||||
1 | service as a teacher under the System, but also to
persons | ||||||
2 | whose status as a teacher terminated prior to that date, | ||||||
3 | whether or not
the person is an annuitant on that date. In | ||||||
4 | the case of an annuitant who
applies for credit allowable | ||||||
5 | under this Section for a period of military
service that | ||||||
6 | did not immediately follow employment, and who has made the
| ||||||
7 | required contributions for such credit, the annuity shall | ||||||
8 | be recalculated to
include the additional service credit, | ||||||
9 | with the increase taking effect on the
date the System | ||||||
10 | received written notification of the annuitant's intent to
| ||||||
11 | purchase the credit, if payment of all the required | ||||||
12 | contributions is made
within 60 days of such notice, or | ||||||
13 | else on the first annuity payment date
following the date | ||||||
14 | of payment of the required contributions. In calculating
| ||||||
15 | the automatic annual increase for an annuity that has been | ||||||
16 | recalculated under
this Section, the increase attributable | ||||||
17 | to the additional service allowable
under P.A. 87-794 shall | ||||||
18 | be included in the calculation of automatic annual
| ||||||
19 | increases accruing after the effective date of the | ||||||
20 | recalculation.
| ||||||
21 | Credit for military service shall be determined as | ||||||
22 | follows: if entry
occurs during the months of July, August, | ||||||
23 | or September and the member was a
teacher at the end of the | ||||||
24 | immediately preceding school term, credit shall
be granted | ||||||
25 | from July 1 of the year in which he or she entered service; | ||||||
26 | if
entry occurs during the school term and the teacher was |
| |||||||
| |||||||
1 | in teaching service
at the beginning of the school term, | ||||||
2 | credit shall be granted from July 1 of
such year. In all | ||||||
3 | other cases where credit for military service is allowed,
| ||||||
4 | credit shall be granted from the date of entry into the | ||||||
5 | service.
| ||||||
6 | The total period of military service for which credit | ||||||
7 | is granted shall
not exceed 5 years for any member unless | ||||||
8 | the service: (A) is validated
before July 1, 1964, and (B) | ||||||
9 | does not extend beyond July 1, 1963. Credit
for military | ||||||
10 | service shall be granted under this Section only if not | ||||||
11 | more
than 5 years of the military service for which credit | ||||||
12 | is granted under this
Section is used by the member to | ||||||
13 | qualify for a military retirement
allotment from any branch | ||||||
14 | of the armed forces of the United States. The
changes to | ||||||
15 | this subdivision (b)(3) made by Public Act 86-272 shall | ||||||
16 | apply
not only to persons who on or after its effective | ||||||
17 | date (August 23, 1989)
are in service as a teacher under | ||||||
18 | the System, but also to persons whose
status as such a | ||||||
19 | teacher terminated prior to such effective date, whether
or | ||||||
20 | not such person is an annuitant on that date.
| ||||||
21 | (4) Any periods served as a member of the General | ||||||
22 | Assembly.
| ||||||
23 | (5)(i) Any periods for which a teacher, as defined in | ||||||
24 | Section
16-106, is granted a leave of absence, provided he | ||||||
25 | or she returns to teaching
service creditable under this | ||||||
26 | System or the State Universities Retirement
System |
| |||||||
| |||||||
1 | following the leave; (ii) periods during which a teacher is
| ||||||
2 | involuntarily laid off from teaching, provided he or she | ||||||
3 | returns to teaching
following the lay-off; (iii) periods | ||||||
4 | prior to July 1, 1983 during which
a teacher ceased covered | ||||||
5 | employment due to pregnancy, provided that the teacher
| ||||||
6 | returned to teaching service creditable under this System | ||||||
7 | or the State
Universities Retirement System following the | ||||||
8 | pregnancy and submits evidence
satisfactory to the Board | ||||||
9 | documenting that the employment ceased due to
pregnancy; | ||||||
10 | and (iv) periods prior to July 1, 1983 during which a | ||||||
11 | teacher
ceased covered employment for the purpose of | ||||||
12 | adopting an infant under 3 years
of age or caring for a | ||||||
13 | newly adopted infant under 3 years of age, provided that
| ||||||
14 | the teacher returned to teaching service creditable under | ||||||
15 | this System or the
State Universities Retirement System | ||||||
16 | following the adoption and submits
evidence satisfactory | ||||||
17 | to the Board documenting that the employment ceased for
the | ||||||
18 | purpose of adopting an infant under 3 years of age or | ||||||
19 | caring for a newly
adopted infant under 3 years of age. | ||||||
20 | However, total credit under this
paragraph (5) may not | ||||||
21 | exceed 3 years.
| ||||||
22 | Any qualified member or annuitant may apply for credit | ||||||
23 | under item (iii)
or (iv) of this paragraph (5) without | ||||||
24 | regard to whether service was
terminated before the | ||||||
25 | effective date of this amendatory Act of 1997. In the case | ||||||
26 | of an annuitant who establishes credit under item (iii)
or |
| |||||||
| |||||||
1 | (iv), the annuity shall be recalculated to include the | ||||||
2 | additional
service credit. The increase in annuity shall | ||||||
3 | take effect on the date the
System receives written | ||||||
4 | notification of the annuitant's intent to purchase the
| ||||||
5 | credit, if the required evidence is submitted and the | ||||||
6 | required contribution
paid within 60 days of that | ||||||
7 | notification, otherwise on the first annuity
payment date | ||||||
8 | following the System's receipt of the required evidence and
| ||||||
9 | contribution. The increase in an annuity recalculated | ||||||
10 | under this provision
shall be included in the calculation | ||||||
11 | of automatic annual increases in the
annuity accruing after | ||||||
12 | the effective date of the recalculation.
| ||||||
13 | Optional credit may be purchased under this subsection | ||||||
14 | (b)(5) for
periods during which a teacher has been granted | ||||||
15 | a leave of absence pursuant
to Section 24-13 of the School | ||||||
16 | Code. A teacher whose service under this
Article terminated | ||||||
17 | prior to the effective date of P.A. 86-1488 shall be
| ||||||
18 | eligible to purchase such optional credit. If a teacher who | ||||||
19 | purchases this
optional credit is already receiving a | ||||||
20 | retirement annuity under this Article,
the annuity shall be | ||||||
21 | recalculated as if the annuitant had applied for the leave
| ||||||
22 | of absence credit at the time of retirement. The difference | ||||||
23 | between the
entitled annuity and the actual annuity shall | ||||||
24 | be credited to the purchase of
the optional credit. The | ||||||
25 | remainder of the purchase cost of the optional credit
shall | ||||||
26 | be paid on or before April 1, 1992.
|
| |||||||
| |||||||
1 | The change in this paragraph made by Public Act 86-273 | ||||||
2 | shall
be applicable to teachers who retire after June 1, | ||||||
3 | 1989, as well as to
teachers who are in service on that | ||||||
4 | date.
| ||||||
5 | (6) Any days of unused and uncompensated accumulated | ||||||
6 | sick leave earned
by a teacher who first became a | ||||||
7 | participant in the System before the effective date of this | ||||||
8 | amendatory Act of the 97th General Assembly . The service | ||||||
9 | credit granted under this paragraph shall be the
ratio of | ||||||
10 | the number of unused and uncompensated accumulated sick | ||||||
11 | leave days
to 170 days, subject to a maximum of 2 years of | ||||||
12 | service
credit. Prior to the member's retirement, each | ||||||
13 | former employer shall
certify to the System the number of | ||||||
14 | unused and uncompensated accumulated
sick leave days | ||||||
15 | credited to the member at the time of termination of | ||||||
16 | service.
The period of unused sick leave shall not be | ||||||
17 | considered in determining
the effective date of | ||||||
18 | retirement. A member is not required to make
contributions | ||||||
19 | in order to obtain service credit for unused sick leave.
| ||||||
20 | Credit for sick leave shall, at retirement, be granted | ||||||
21 | by the System
for any retiring regional or assistant | ||||||
22 | regional superintendent of schools
who first became a | ||||||
23 | participant in this System before the effective date of | ||||||
24 | this amendatory Act of the 97th General Assembly at the | ||||||
25 | rate of 6 days per year of creditable service or portion | ||||||
26 | thereof
established while serving as such superintendent |
| |||||||
| |||||||
1 | or assistant
superintendent.
| ||||||
2 | Service credit is not available for unused sick leave | ||||||
3 | accumulated by a teacher who first becomes a participant in | ||||||
4 | this System on or after the effective date of this amendatory | ||||||
5 | Act of the 97th General Assembly.
| ||||||
6 | (7) Periods prior to February 1, 1987 served as an | ||||||
7 | employee of the
Illinois Mathematics and Science Academy | ||||||
8 | for which credit has not been
terminated under Section | ||||||
9 | 15-113.9 of this Code.
| ||||||
10 | (8) Service as a substitute teacher for work performed
| ||||||
11 | prior to July 1, 1990.
| ||||||
12 | (9) Service as a part-time teacher for work performed
| ||||||
13 | prior to July 1, 1990.
| ||||||
14 | (10) Up to 2 years of employment with Southern Illinois | ||||||
15 | University -
Carbondale from September 1, 1959 to August | ||||||
16 | 31, 1961, or with Governors
State University from September | ||||||
17 | 1, 1972 to August 31, 1974, for which the
teacher has no | ||||||
18 | credit under Article 15. To receive credit under this item
| ||||||
19 | (10), a teacher must apply in writing to the Board and pay | ||||||
20 | the required
contributions before May 1, 1993 and have at | ||||||
21 | least 12 years of service
credit under this Article.
| ||||||
22 | (b-1) A member may establish optional credit for up to 2 | ||||||
23 | years of service
as a teacher or administrator employed by a | ||||||
24 | private school recognized by the
Illinois State Board of | ||||||
25 | Education, provided that the teacher (i) was certified
under | ||||||
26 | the law governing the certification of teachers at the time the |
| |||||||
| |||||||
1 | service
was rendered, (ii) applies in writing on or after | ||||||
2 | August 1, 2009 and on or before
August 1, 2012, (iii) supplies | ||||||
3 | satisfactory evidence of the employment, (iv)
completes at | ||||||
4 | least 10 years of contributing service as a teacher as defined | ||||||
5 | in
Section 16-106, and (v) pays the contribution required in | ||||||
6 | subsection (d-5) of
Section 16-128. The member may apply for | ||||||
7 | credit under this subsection and pay
the required contribution | ||||||
8 | before completing the 10 years of contributing
service required | ||||||
9 | under item (iv), but the credit may not be used until the
item | ||||||
10 | (iv) contributing service requirement has been met.
| ||||||
11 | (c) The service credits specified in this Section shall be | ||||||
12 | granted only
if: (1) such service credits are not used for | ||||||
13 | credit in any other statutory
tax-supported public employee | ||||||
14 | retirement system other than the federal Social
Security | ||||||
15 | program; and (2) the member makes the required contributions as
| ||||||
16 | specified in Section 16-128. Except as provided in subsection | ||||||
17 | (b-1) of
this Section, the service credit shall be effective as | ||||||
18 | of the date the
required contributions are completed.
| ||||||
19 | Any service credits granted under this Section shall | ||||||
20 | terminate upon
cessation of membership for any cause.
| ||||||
21 | Credit may not be granted under this Section covering any | ||||||
22 | period for
which an age retirement or disability retirement | ||||||
23 | allowance has been paid.
| ||||||
24 | (Source: P.A. 96-546, eff. 8-17-09.)
| ||||||
25 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
|
| |||||||
| |||||||
1 | Sec. 16-158. Contributions by State and other employing | ||||||
2 | units.
| ||||||
3 | (a) Except as otherwise provided in this Section, the The | ||||||
4 | State shall make contributions to the System by means of
| ||||||
5 | appropriations from the Common School Fund and other State | ||||||
6 | funds of amounts
which, together with other employer | ||||||
7 | contributions, employee contributions,
investment income, and | ||||||
8 | other income, will be sufficient to meet the cost of
| ||||||
9 | maintaining and administering the System on a 90% funded basis | ||||||
10 | in accordance
with actuarial recommendations.
| ||||||
11 | Beginning with State fiscal year 2014, the employers under | ||||||
12 | this Article shall be responsible for paying the normal costs | ||||||
13 | of the System plus the amounts required to amortize any total | ||||||
14 | cost of the benefits of the System arising on or after July 1, | ||||||
15 | 2013. | ||||||
16 | Beginning with State fiscal year 2014, the State's required | ||||||
17 | contributions to the System shall be limited to the amounts | ||||||
18 | required to amortize the total cost of the benefits of the | ||||||
19 | System arising before July 1, 2013, plus any employer | ||||||
20 | contributions required from the State as the actual employer of | ||||||
21 | participants under this Article. | ||||||
22 | The Board shall determine the amount of State and employer | ||||||
23 | contributions required for
each fiscal year on the basis of the | ||||||
24 | actuarial tables and other assumptions
adopted by the Board and | ||||||
25 | the recommendations of the actuary, using the formulas provided | ||||||
26 | in this Section formula
in subsection (b-3) .
|
| |||||||
| |||||||
1 | (a-1) Annually, on or before November 15 until November 15, | ||||||
2 | 2011 , the Board shall certify to the
Governor the amount of the | ||||||
3 | required State contribution for the coming fiscal
year. The | ||||||
4 | certification under this subsection (a-1) shall include a copy | ||||||
5 | of the actuarial recommendations
upon which it is based and | ||||||
6 | shall specifically identify the System's projected State | ||||||
7 | normal cost for that fiscal year .
| ||||||
8 | On or before May 1, 2004, the Board shall recalculate and | ||||||
9 | recertify to
the Governor the amount of the required State | ||||||
10 | contribution to the System for
State fiscal year 2005, taking | ||||||
11 | into account the amounts appropriated to and
received by the | ||||||
12 | System under subsection (d) of Section 7.2 of the General
| ||||||
13 | Obligation Bond Act.
| ||||||
14 | On or before July 1, 2005 April 1, 2011 , the Board shall | ||||||
15 | recalculate and recertify
to the Governor the amount of the | ||||||
16 | required State
contribution to the System for State fiscal year | ||||||
17 | 2006, taking into account the changes in required State | ||||||
18 | contributions made by this amendatory Act of the 94th General | ||||||
19 | Assembly.
| ||||||
20 | On or before April 1, 2011 June 15, 2010 , the Board shall | ||||||
21 | recalculate and recertify to the Governor the amount of the | ||||||
22 | required State contribution to the System for State fiscal year | ||||||
23 | 2011, applying the changes made by Public Act 96-889 to the | ||||||
24 | System's assets and liabilities as of June 30, 2009 as though | ||||||
25 | Public Act 96-889 was approved on that date. | ||||||
26 | (a-5) On or before November 1 of each year, beginning |
| |||||||
| |||||||
1 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
2 | the Governor, and the General Assembly a proposed certification | ||||||
3 | of the amount of the required State contribution to the System | ||||||
4 | for the next fiscal year, along with all of the actuarial | ||||||
5 | assumptions, calculations, and data upon which that proposed | ||||||
6 | certification is based. On or before January 1 of each year, | ||||||
7 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
8 | preliminary report concerning the proposed certification and | ||||||
9 | identifying, if necessary, recommended changes in actuarial | ||||||
10 | assumptions that the Board must consider before finalizing its | ||||||
11 | certification of the required State contributions. On or before | ||||||
12 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
13 | shall certify to the Governor and the General Assembly the | ||||||
14 | amount of the required State contribution for the next fiscal | ||||||
15 | year. The Board's certification must note any deviations from | ||||||
16 | the State Actuary's recommended changes, the reason or reasons | ||||||
17 | for not following the State Actuary's recommended changes, and | ||||||
18 | the fiscal impact of not following the State Actuary's | ||||||
19 | recommended changes on the required State contribution. | ||||||
20 | (b) Through State fiscal year 1995, the State contributions | ||||||
21 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
22 | the School Code.
| ||||||
23 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
24 | of each month,
or as soon thereafter as may be practicable, the | ||||||
25 | Board shall submit vouchers
for payment of State contributions | ||||||
26 | to the System, in a total monthly amount of
one-twelfth of the |
| |||||||
| |||||||
1 | required annual State contribution certified under
subsection | ||||||
2 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
3 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
4 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
5 | excess of the fiscal year 2004
certified contribution amount | ||||||
6 | determined under this Section
after taking into consideration | ||||||
7 | the transfer to the System
under subsection (a) of Section | ||||||
8 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
9 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
10 | funds appropriated to the System for that
fiscal year.
| ||||||
11 | If in any month the amount remaining unexpended from all | ||||||
12 | other appropriations
to the System for the applicable fiscal | ||||||
13 | year (including the appropriations to
the System under Section | ||||||
14 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
15 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
16 | amount
lawfully vouchered under this subsection, the | ||||||
17 | difference shall be paid from the
Common School Fund under the | ||||||
18 | continuing appropriation authority provided in
Section 1.1 of | ||||||
19 | the State Pension Funds Continuing Appropriation Act.
| ||||||
20 | (b-2) Allocations from the Common School Fund apportioned | ||||||
21 | to school
districts not coming under this System shall not be | ||||||
22 | diminished or affected by
the provisions of this Article.
| ||||||
23 | (b-3) For State fiscal years 2012 and 2013 through 2045 , | ||||||
24 | the minimum contribution
to the System to be made by the State | ||||||
25 | for each fiscal year shall be an amount
determined by the | ||||||
26 | System to be sufficient to bring the total assets of the
System |
| |||||||
| |||||||
1 | up to 90% of the total actuarial liabilities of the System by | ||||||
2 | the end of
State fiscal year 2045. In making these | ||||||
3 | determinations, the required State
contribution shall be | ||||||
4 | calculated each year as a level percentage of payroll
over the | ||||||
5 | years remaining to and including fiscal year 2045 and shall be
| ||||||
6 | determined under the projected unit credit actuarial cost | ||||||
7 | method.
| ||||||
8 | Except as provided in subsection (b-5), for State fiscal | ||||||
9 | years 2014 through 2045 or until the State has amortized 100% | ||||||
10 | of the total cost of benefits accrued by July 1, 2013, | ||||||
11 | whichever is earlier, in addition to any employer contributions | ||||||
12 | required from the State as an employer, the minimum | ||||||
13 | contribution
to the System to be made by the State for each | ||||||
14 | fiscal year shall be an amount
determined by the Board to be | ||||||
15 | sufficient to amortize, by the end of
State fiscal year 2045, | ||||||
16 | the total cost of the benefits of the System arising before | ||||||
17 | July 1, 2013. In making these determinations, the required | ||||||
18 | State
contribution shall be calculated each year as a level | ||||||
19 | percentage of payroll
over the years remaining to and including | ||||||
20 | fiscal year 2043 and shall be
determined under the projected | ||||||
21 | unit credit actuarial cost method. | ||||||
22 | Except as provided in subsection (b-5), beginning in State | ||||||
23 | fiscal year 2046 or on the date that the State has amortized | ||||||
24 | 100% of the total cost of benefits accrued by July 1, 2013, | ||||||
25 | whichever is earlier, the State has no further obligation to | ||||||
26 | make contributions to the System under this subsection (b-3). |
| |||||||
| |||||||
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 in the
| ||||||
6 | following specified State fiscal years, the State contribution | ||||||
7 | to the System
shall not be less than the following indicated | ||||||
8 | percentages of the applicable
employee payroll, even if the | ||||||
9 | indicated percentage will produce a State
contribution in | ||||||
10 | excess of the amount otherwise required under this subsection
| ||||||
11 | and subsection (a), and notwithstanding any contrary | ||||||
12 | certification made under
subsection (a-1) before the effective | ||||||
13 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
14 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
15 | 2003; and
13.56% in FY 2004.
| ||||||
16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State
contribution for State fiscal year 2006 is | ||||||
18 | $534,627,700.
| ||||||
19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution for State fiscal year 2007 is | ||||||
21 | $738,014,500.
| ||||||
22 | For each of State fiscal years 2008 through 2009, the State | ||||||
23 | contribution to
the System, as a percentage of the applicable | ||||||
24 | employee payroll, shall be
increased in equal annual increments | ||||||
25 | from the required State contribution for State fiscal year | ||||||
26 | 2007, so that by State fiscal year 2011, the
State is |
| |||||||
| |||||||
1 | contributing at the rate otherwise required under this Section.
| ||||||
2 | Notwithstanding any other provision of this Article, the | ||||||
3 | total required State contribution for State fiscal year 2010 is | ||||||
4 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
5 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
6 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
7 | expenses determined by the System's share of total bond | ||||||
8 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
9 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
10 | due to the issuance of discounted bonds, if applicable. | ||||||
11 | Notwithstanding any other provision of this Article, the
| ||||||
12 | total required State contribution for State fiscal year 2011 is
| ||||||
13 | the amount recertified by the System on or before April 1, 2011 | ||||||
14 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
15 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
16 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
17 | pro rata share of bond sale
expenses determined by the System's | ||||||
18 | share of total bond
proceeds, (ii) any amounts received from | ||||||
19 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
20 | reduction in bond proceeds
due to the issuance of discounted | ||||||
21 | bonds, if applicable. This amount shall include, in addition to | ||||||
22 | the amount certified by the System, an amount necessary to meet | ||||||
23 | employer contributions required by the State as an employer | ||||||
24 | under paragraph (e) of this Section, which may also be used by | ||||||
25 | the System for contributions required by paragraph (a) of | ||||||
26 | Section 16-127. |
| |||||||
| |||||||
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 through and each fiscal year 2013 thereafter , | ||||||
20 | as
calculated under this Section and
certified under subsection | ||||||
21 | (a-1), shall not exceed an amount equal to (i) the
amount of | ||||||
22 | the required State contribution that would have been calculated | ||||||
23 | under
this Section for that fiscal year if the System had not | ||||||
24 | received any payments
under subsection (d) of Section 7.2 of | ||||||
25 | the General Obligation Bond Act, minus
(ii) the portion of the | ||||||
26 | State's total debt service payments for that fiscal
year on the |
| |||||||
| |||||||
1 | bonds issued in fiscal year 2003 for the purposes of that | ||||||
2 | Section 7.2, as determined
and certified by the Comptroller, | ||||||
3 | that is 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 | (b-5) If at least 50% of Tier I employees making an | ||||||
17 | election under Section 16-131.7 before June 1, 2013 choose the | ||||||
18 | option under paragraph (1) of subsection (a) of that Section, | ||||||
19 | then beginning in State fiscal year 2014, instead of the | ||||||
20 | contributions specified in subsection (b-3) of this Section, | ||||||
21 | the State contributions specified in subsection (b-7) of this | ||||||
22 | Section shall be paid. | ||||||
23 | In making its initial certification of the annual required | ||||||
24 | contribution by the State for State fiscal year 2014, the Board | ||||||
25 | shall assume that the new funding formula provided in | ||||||
26 | subsection (b-7) of this Section applies. If fewer than 50% of |
| |||||||
| |||||||
1 | Tier I employees making an election under Section 16-131.7 | ||||||
2 | before June 1, 2013 choose the option under paragraph (1) of | ||||||
3 | subsection (a) of that Section, then: | ||||||
4 | (1) instead of the contributions specified in | ||||||
5 | subsection (b-7) of this Section, the State contributions | ||||||
6 | specified in subsection (b-3) shall continue to be paid; | ||||||
7 | and | ||||||
8 | (2) as soon as possible after June 1, 2013, the Board | ||||||
9 | shall recertify the annual required contribution by the | ||||||
10 | State for State fiscal year 2014. | ||||||
11 | (b-7) For State fiscal years 2014 through 2043 or until the | ||||||
12 | State has amortized 100% of the total cost of benefits accrued | ||||||
13 | by July 1, 2013, whichever is earlier, in addition to any | ||||||
14 | employer contributions required from the State as an employer, | ||||||
15 | the minimum contribution
to the System to be made by the State | ||||||
16 | for each fiscal year shall be an amount
determined by the Board | ||||||
17 | to be sufficient to amortize, by the end of
State fiscal year | ||||||
18 | 2043, the total cost of the benefits of the System arising | ||||||
19 | before July 1, 2013. 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 2043 and shall be
determined under the | ||||||
23 | projected unit credit actuarial cost method. | ||||||
24 | Beginning in State fiscal year 2044 or on the date that the | ||||||
25 | State has amortized 100% of the total cost of benefits accrued | ||||||
26 | by July 1, 2013, whichever is earlier, the State has no further |
| |||||||
| |||||||
1 | obligation to make contributions to the System under this | ||||||
2 | subsection (a-5). | ||||||
3 | (b-10) Subject to the limitations provided in subsection | ||||||
4 | (b-15), beginning with State fiscal year 2014, the minimum | ||||||
5 | required contribution of employers under this Article shall be | ||||||
6 | determined as a percentage of projected payroll, and shall be | ||||||
7 | sufficient to produce an annual amount equal to: | ||||||
8 | (i) the employer's normal cost for that fiscal year for | ||||||
9 | employees who first became participating employees before | ||||||
10 | July 1, 2013; plus | ||||||
11 | (ii) the employer's normal cost for that fiscal year | ||||||
12 | for employees who first become participating employees on | ||||||
13 | or after July 1, 2013; plus | ||||||
14 | (iii) the amount required for that fiscal year to | ||||||
15 | amortize any unfunded actuarial accrued liability arising | ||||||
16 | on or after July 1, 2013 as a level percentage of payroll | ||||||
17 | over a 30-year rolling amortization period. | ||||||
18 | Any contributions required from an employer under | ||||||
19 | subsection (f) of this Section are in addition to the | ||||||
20 | contributions required under this subsection (b-10). | ||||||
21 | (b-15) For State fiscal year 2014, the required | ||||||
22 | contribution of employers under item (i) of subsection (b-10) | ||||||
23 | shall be reduced to an amount equal to 1% of payroll. | ||||||
24 | For each fiscal year thereafter, until the Board determines | ||||||
25 | and certifies to the Governor that employers are contributing | ||||||
26 | under item (i) of subsection (b-10) the full amount actually |
| |||||||
| |||||||
1 | specified by item (i) of subsection (b-10), the required | ||||||
2 | contribution of employers under item (i) of subsection (b-10) | ||||||
3 | shall be the percentage of payroll required under this | ||||||
4 | subsection from the previous fiscal year increased by 1% of | ||||||
5 | payroll for each of State fiscal years 2015 through 2019, and | ||||||
6 | increased by 0.5% of payroll for each State fiscal year after | ||||||
7 | 2019. | ||||||
8 | Contributions required of employers under items (ii) and | ||||||
9 | (iii) of subsection (b-10), under subsection (f), and under any | ||||||
10 | other applicable provision of this Section are in addition to | ||||||
11 | contributions required under item (i) of subsection (b-10). | ||||||
12 | (b-20) Beginning in State fiscal year 2015 and continuing | ||||||
13 | until the Board determines and certifies to the Governor that | ||||||
14 | employers are contributing under item (i) of subsection (b-10) | ||||||
15 | the full amount actually specified by item (i) of subsection | ||||||
16 | (b-10), the State shall make an additional contribution to the | ||||||
17 | System for each fiscal year, equal to the difference between | ||||||
18 | (1) the total contribution calculated under item (i) of | ||||||
19 | subsection (b-10) for all employers for that fiscal year, and | ||||||
20 | (2) the amount of such total contribution as reduced under | ||||||
21 | subsection (b-15). | ||||||
22 | The State contribution under this subsection (b-20) is in | ||||||
23 | addition to the State contributions required under subsection | ||||||
24 | (b-3) or (b-7) and any contributions required to be paid by the | ||||||
25 | State as an employer under subsections (b-10) and (f) of this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (c) Payment of the required State contributions and of all | ||||||
2 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
3 | other benefits granted
under or assumed by this System, and all | ||||||
4 | expenses in connection with the
administration and operation | ||||||
5 | thereof, are obligations of the State.
| ||||||
6 | If members are paid from special trust or federal funds | ||||||
7 | which are
administered by the employing unit, whether school | ||||||
8 | district or other
unit, the employing unit shall pay to the | ||||||
9 | System from such
funds the full accruing retirement costs based | ||||||
10 | upon that
service, as determined by the System. Employer | ||||||
11 | contributions, based on
salary paid to members from federal | ||||||
12 | funds, may be forwarded by the distributing
agency of the State | ||||||
13 | of Illinois to the System prior to allocation, in an
amount | ||||||
14 | determined in accordance with guidelines established by such
| ||||||
15 | agency and the System.
| ||||||
16 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
17 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
18 | employer's normal cost
of benefits based upon the teacher's | ||||||
19 | service, in addition to
employee contributions, as determined | ||||||
20 | by the System. Such employer
contributions shall be forwarded | ||||||
21 | monthly in accordance with guidelines
established by the | ||||||
22 | System.
| ||||||
23 | However, with respect to benefits granted under Section | ||||||
24 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
25 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
26 | (rather than 20%) of the member's
highest annual salary rate |
| |||||||
| |||||||
1 | for each year of creditable service granted, and
the employer | ||||||
2 | shall also pay the required employee contribution on behalf of
| ||||||
3 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
4 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
5 | 16-106 who is serving in that capacity
while on leave of | ||||||
6 | absence from another employer under this Article shall not
be | ||||||
7 | considered an employee of the employer from which the teacher | ||||||
8 | is on leave.
| ||||||
9 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
10 | shall pay to the System an employer contribution computed as | ||||||
11 | follows:
| ||||||
12 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
13 | employer
contribution shall be equal to 0.3% of each | ||||||
14 | teacher's salary.
| ||||||
15 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
16 | contribution shall be equal to 0.58% of each teacher's | ||||||
17 | salary.
| ||||||
18 | The school district or other employing unit may pay these | ||||||
19 | employer
contributions out of any source of funding available | ||||||
20 | for that purpose and
shall forward the contributions to the | ||||||
21 | System on the schedule established
for the payment of member | ||||||
22 | contributions.
| ||||||
23 | These employer contributions are intended to offset a | ||||||
24 | portion of the cost
to the System of the increases in | ||||||
25 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
26 | Each employer of teachers is entitled to a credit against |
| |||||||
| |||||||
1 | the contributions
required under this subsection (e) with | ||||||
2 | respect to salaries paid to teachers
for the period January 1, | ||||||
3 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
4 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
5 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
6 | paid to teachers for that
period.
| ||||||
7 | The additional 1% employee contribution required under | ||||||
8 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
9 | responsibility of the teacher and not the
teacher's employer, | ||||||
10 | unless the employer agrees, through collective bargaining
or | ||||||
11 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
12 | If an employer is required by a contract in effect on May | ||||||
13 | 1, 1998 between the
employer and an employee organization to | ||||||
14 | pay, on behalf of all its full-time
employees
covered by this | ||||||
15 | Article, all mandatory employee contributions required under
| ||||||
16 | this Article, then the employer shall be excused from paying | ||||||
17 | the employer
contribution required under this subsection (e) | ||||||
18 | for the balance of the term
of that contract. The employer and | ||||||
19 | the employee organization shall jointly
certify to the System | ||||||
20 | the existence of the contractual requirement, in such
form as | ||||||
21 | the System may prescribe. This exclusion shall cease upon the
| ||||||
22 | termination, extension, or renewal of the contract at any time | ||||||
23 | after May 1,
1998.
| ||||||
24 | (f) The employer contributions under this subsection (f) | ||||||
25 | are no longer required after June 30, 2013. | ||||||
26 | If the amount of a teacher's salary for any school year |
| |||||||
| |||||||
1 | used to determine final average salary exceeds the member's | ||||||
2 | annual full-time salary rate with the same employer for the | ||||||
3 | previous school year by more than 6%, the teacher's employer | ||||||
4 | shall pay to the System, in addition to all other payments | ||||||
5 | required under this Section and in accordance with guidelines | ||||||
6 | established by the System, the present value of the increase in | ||||||
7 | benefits resulting from the portion of the increase in salary | ||||||
8 | that is in excess of 6%. This present value shall be computed | ||||||
9 | by the System on the basis of the actuarial assumptions and | ||||||
10 | tables used in the most recent actuarial valuation of the | ||||||
11 | System that is available at the time of the computation. If a | ||||||
12 | teacher's salary for the 2005-2006 school year is used to | ||||||
13 | determine final average salary under this subsection (f), then | ||||||
14 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
15 | shall apply in calculating whether the increase in his or her | ||||||
16 | salary is in excess of 6%. For the purposes of this Section, | ||||||
17 | change in employment under Section 10-21.12 of the School Code | ||||||
18 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
19 | The System may require the employer to provide any pertinent | ||||||
20 | information or documentation.
The changes made to this | ||||||
21 | subsection (f) by this amendatory Act of the 94th General | ||||||
22 | Assembly apply without regard to whether the teacher was in | ||||||
23 | service on or after its effective date.
| ||||||
24 | Whenever it determines that a payment is or may be required | ||||||
25 | under this subsection, the System shall calculate the amount of | ||||||
26 | the payment and bill the employer for that amount. The bill |
| |||||||
| |||||||
1 | shall specify the calculations used to determine the amount | ||||||
2 | due. If the employer disputes the amount of the bill, it may, | ||||||
3 | within 30 days after receipt of the bill, apply to the System | ||||||
4 | in writing for a recalculation. The application must specify in | ||||||
5 | detail the grounds of the dispute and, if the employer asserts | ||||||
6 | that the calculation is subject to subsection (g) or (h) of | ||||||
7 | this Section, must include an affidavit setting forth and | ||||||
8 | attesting to all facts within the employer's knowledge that are | ||||||
9 | pertinent to the applicability of that subsection. Upon | ||||||
10 | receiving a timely application for recalculation, the System | ||||||
11 | shall review the application and, if appropriate, recalculate | ||||||
12 | the amount due.
| ||||||
13 | The employer contributions required under this subsection | ||||||
14 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
15 | receipt of the bill. If the employer contributions are not paid | ||||||
16 | within 90 days after receipt of the bill, then interest will be | ||||||
17 | charged at a rate equal to the System's annual actuarially | ||||||
18 | assumed rate of return on investment compounded annually from | ||||||
19 | the 91st day after receipt of the bill. Payments must be | ||||||
20 | concluded within 3 years after the employer's receipt of the | ||||||
21 | bill.
| ||||||
22 | (g) This subsection (g) applies only to payments made or | ||||||
23 | salary increases given on or after June 1, 2005 but before July | ||||||
24 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
25 | require the System to refund any payments received before
July | ||||||
26 | 31, 2006 (the effective date of Public Act 94-1057). |
| |||||||
| |||||||
1 | When assessing payment for any amount due under subsection | ||||||
2 | (f), the System shall exclude salary increases paid to teachers | ||||||
3 | under contracts or collective bargaining agreements entered | ||||||
4 | into, amended, or renewed before June 1, 2005.
| ||||||
5 | When assessing payment for any amount due under subsection | ||||||
6 | (f), the System shall exclude salary increases paid to a | ||||||
7 | teacher at a time when the teacher is 10 or more years from | ||||||
8 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
9 | When assessing payment for any amount due under subsection | ||||||
10 | (f), the System shall exclude salary increases resulting from | ||||||
11 | overload work, including summer school, when the school | ||||||
12 | district has certified to the System, and the System has | ||||||
13 | approved the certification, that (i) the overload work is for | ||||||
14 | the sole purpose of classroom instruction in excess of the | ||||||
15 | standard number of classes for a full-time teacher in a school | ||||||
16 | district during a school year and (ii) the salary increases are | ||||||
17 | equal to or less than the rate of pay for classroom instruction | ||||||
18 | computed on the teacher's current salary and work schedule.
| ||||||
19 | When assessing payment for any amount due under subsection | ||||||
20 | (f), the System shall exclude a salary increase resulting from | ||||||
21 | a promotion (i) for which the employee is required to hold a | ||||||
22 | certificate or supervisory endorsement issued by the State | ||||||
23 | Teacher Certification Board that is a different certification | ||||||
24 | or supervisory endorsement than is required for the teacher's | ||||||
25 | previous position and (ii) to a position that has existed and | ||||||
26 | been filled by a member for no less than one complete academic |
| |||||||
| |||||||
1 | year and the salary increase from the promotion is an increase | ||||||
2 | that results in an amount no greater than the lesser of the | ||||||
3 | average salary paid for other similar positions in the district | ||||||
4 | requiring the same certification or the amount stipulated in | ||||||
5 | the collective bargaining agreement for a similar position | ||||||
6 | requiring the same certification.
| ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (f), the System shall exclude any payment to the teacher from | ||||||
9 | the State of Illinois or the State Board of Education over | ||||||
10 | which the employer does not have discretion, notwithstanding | ||||||
11 | that the payment is included in the computation of final | ||||||
12 | average salary.
| ||||||
13 | (h) When assessing payment for any amount due under | ||||||
14 | subsection (f), the System shall exclude any salary increase | ||||||
15 | described in subsection (g) of this Section given on or after | ||||||
16 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
17 | collective bargaining agreement entered into, amended, or | ||||||
18 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
19 | Notwithstanding any other provision of this Section, any | ||||||
20 | payments made or salary increases given after June 30, 2014 | ||||||
21 | shall be used in assessing payment for any amount due under | ||||||
22 | subsection (f) of this Section.
| ||||||
23 | (i) The System shall prepare a report and file copies of | ||||||
24 | the report with the Governor and the General Assembly by | ||||||
25 | January 1, 2007 that contains all of the following information: | ||||||
26 | (1) The number of recalculations required by the |
| |||||||
| |||||||
1 | changes made to this Section by Public Act 94-1057 for each | ||||||
2 | employer. | ||||||
3 | (2) The dollar amount by which each employer's | ||||||
4 | contribution to the System was changed due to | ||||||
5 | recalculations required by Public Act 94-1057. | ||||||
6 | (3) The total amount the System received from each | ||||||
7 | employer as a result of the changes made to this Section by | ||||||
8 | Public Act 94-4. | ||||||
9 | (4) The increase in the required State contribution | ||||||
10 | resulting from the changes made to this Section by Public | ||||||
11 | Act 94-1057.
| ||||||
12 | (j) For purposes of determining the required State | ||||||
13 | contribution to the System, the value of the System's assets | ||||||
14 | shall be equal to the actuarial value of the System's assets, | ||||||
15 | which shall be calculated as follows: | ||||||
16 | As of June 30, 2008, the actuarial value of the System's | ||||||
17 | assets shall be equal to the market value of the assets as of | ||||||
18 | that date. In determining the actuarial value of the System's | ||||||
19 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
20 | gains or losses from investment return incurred in a fiscal | ||||||
21 | year shall be recognized in equal annual amounts over the | ||||||
22 | 5-year period following that fiscal year. | ||||||
23 | (k) For purposes of determining the required State | ||||||
24 | contribution to the system for a particular year, the actuarial | ||||||
25 | value of assets shall be assumed to earn a rate of return equal | ||||||
26 | to the system's actuarially assumed rate of return. |
| |||||||
| |||||||
1 | (l) If the System submits a voucher for monthly | ||||||
2 | contributions from the State as required by this Section and | ||||||
3 | the State fails to pay within 90 days of receipt of such a | ||||||
4 | voucher, the Board shall submit a written request to the | ||||||
5 | Comptroller seeking payment. A copy of the request shall be | ||||||
6 | filed with the Secretary of State, and the Secretary of State | ||||||
7 | shall provide copies to the Governor and General Assembly. No | ||||||
8 | earlier than the 16th day after filing a request with the | ||||||
9 | Secretary of State, the Board shall have the right to commence | ||||||
10 | a mandamus action in the Supreme Court of Illinois to compel | ||||||
11 | the Comptroller to satisfy the voucher by making payment from | ||||||
12 | the General Revenue Fund. This Section constitutes an express | ||||||
13 | waiver of the State's sovereign immunity solely to the extent | ||||||
14 | it permits the Board to commence a mandamus action in the | ||||||
15 | Illinois Supreme Court to compel the Comptroller to pay a | ||||||
16 | voucher for monthly contributions from the State as required in | ||||||
17 | this Section. | ||||||
18 | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | ||||||
19 | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
20 | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
| ||||||
21 | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| ||||||
22 | Sec. 18-140. To certify required State contributions and | ||||||
23 | submit vouchers.
| ||||||
24 | (a) The Board shall certify to the Governor, on or before | ||||||
25 | November 15 of
each year until November 15, 2011 , the amount of |
| |||||||
| |||||||
1 | the required State contribution to the System for the
following | ||||||
2 | fiscal year and shall specifically identify the System's | ||||||
3 | projected State normal cost for that fiscal year . The | ||||||
4 | certification shall include a copy of the actuarial
| ||||||
5 | recommendations upon which it is based and shall specifically | ||||||
6 | identify the System's projected State normal cost for that | ||||||
7 | fiscal year .
| ||||||
8 | On or before November 1 of each year, beginning November 1, | ||||||
9 | 2012, the Board shall submit to the State Actuary, the | ||||||
10 | Governor, and the General Assembly a proposed certification of | ||||||
11 | the amount of the required State contribution to the System for | ||||||
12 | 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 every 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 | On or before May 1, 2004, the Board shall recalculate and | ||||||
3 | recertify to
the Governor the amount of the required State | ||||||
4 | contribution to the System for
State fiscal year 2005, taking | ||||||
5 | into account the amounts appropriated to and
received by the | ||||||
6 | System under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act.
| ||||||
8 | On or before July 1, 2005, the Board shall recalculate and | ||||||
9 | recertify
to the Governor the amount of the required State
| ||||||
10 | contribution to the System for State fiscal year 2006, taking | ||||||
11 | into account the changes in required State contributions made | ||||||
12 | by this amendatory Act of the 94th General Assembly.
| ||||||
13 | On or before April 1, 2011, the Board shall recalculate and | ||||||
14 | recertify to the Governor the amount of the required State | ||||||
15 | contribution to the System for State fiscal year 2011, applying | ||||||
16 | the changes made by Public Act 96-889 to the System's assets | ||||||
17 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
18 | was approved on that date. | ||||||
19 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
20 | possible after
the 15th day of each month the Board shall | ||||||
21 | submit vouchers for payment of State
contributions to the | ||||||
22 | System, in a total monthly amount of one-twelfth of the
| ||||||
23 | required annual State contribution certified under subsection | ||||||
24 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
25 | General Assembly through June 30, 2004, the Board shall not
| ||||||
26 | submit vouchers for the remainder of fiscal year 2004 in excess |
| |||||||
| |||||||
1 | of the
fiscal year 2004 certified contribution amount | ||||||
2 | determined
under this Section after taking into consideration | ||||||
3 | the transfer to the
System under subsection (c) of Section | ||||||
4 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
5 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
6 | funds appropriated to the System for that fiscal year.
| ||||||
7 | If in any month the amount remaining unexpended from all | ||||||
8 | other
appropriations to the System for the applicable fiscal | ||||||
9 | year (including the
appropriations to the System under Section | ||||||
10 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
11 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
12 | amount lawfully vouchered under this Section, the difference | ||||||
13 | shall be paid
from the General Revenue Fund under the | ||||||
14 | continuing appropriation authority
provided in Section 1.1 of | ||||||
15 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
16 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| ||||||
17 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
18 | Sec. 20-121. Calculation of proportional retirement | ||||||
19 | annuities. Upon
retirement of the employee, a proportional | ||||||
20 | retirement annuity shall be computed
by each participating | ||||||
21 | system in which pension credit has been established on
the | ||||||
22 | basis of pension credits under each system. The computation | ||||||
23 | shall be in
accordance with the formula or method prescribed by | ||||||
24 | each participating system
which is in effect at the date of the | ||||||
25 | employee's latest withdrawal from service
covered by any of the |
| |||||||
| |||||||
1 | systems in which he has pension credits which he elects
to have | ||||||
2 | considered under this Article. However, (1) the amount of any | ||||||
3 | retirement
annuity payable under the self-managed plan | ||||||
4 | established under Section 15-158.2
of this Code depends solely | ||||||
5 | on the value of the participant's vested account
balances and | ||||||
6 | is not subject to any proportional adjustment under this
| ||||||
7 | Section , and (2) the amount of any retirement
annuity payable | ||||||
8 | under the cash balance plan established under Section 1-161
of | ||||||
9 | this Code shall be calculated solely in accordance with that | ||||||
10 | Section and is not subject to any proportional adjustment under | ||||||
11 | this
Section .
| ||||||
12 | Combined pension credit under all retirement systems | ||||||
13 | subject to this
Article shall be considered in determining | ||||||
14 | whether the minimum qualification
has been met and the formula | ||||||
15 | or method of computation which shall be applied.
If a system | ||||||
16 | has a step-rate formula for calculation of the retirement | ||||||
17 | annuity,
pension credits covering previous service which have | ||||||
18 | been established under
another system shall be considered in | ||||||
19 | determining which range or ranges of
the step-rate formula are | ||||||
20 | to be applicable to the employee.
| ||||||
21 | Interest on pension credit shall continue to accumulate in | ||||||
22 | accordance with
the provisions of the law governing the | ||||||
23 | retirement system in which the same
has been established during | ||||||
24 | the time an employee is in the service of another
employer, on | ||||||
25 | the assumption such employee, for interest purposes for pension
| ||||||
26 | credit, is continuing in the service covered by such retirement |
| |||||||
| |||||||
1 | system.
| ||||||
2 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
3 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
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 the cash balance plan | ||||||
25 | established under
Section 1-161, pension credit established |
| |||||||
| |||||||
1 | under the participating system with respect to which the person | ||||||
2 | participates in the cash balance plan may be considered in
| ||||||
3 | determining eligibility for or the amount of the survivor's | ||||||
4 | annuity that is
payable by any other participating system with | ||||||
5 | respect to which the person does not participate in the cash | ||||||
6 | balance plan, but the amount of any survivor's
annuity payable | ||||||
7 | under the cash balance plan established under Section 1-161 | ||||||
8 | shall be calculated solely in accordance with that Section. | ||||||
9 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
10 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
11 | Sec. 20-124. Maximum benefits. | ||||||
12 | (a) In no event shall the combined retirement
or survivors | ||||||
13 | annuities exceed the highest annuity which would have been | ||||||
14 | payable
by any participating system in which the employee has | ||||||
15 | pension credits, if all
of his pension credits had been | ||||||
16 | validated in that system.
| ||||||
17 | If the combined annuities should exceed the highest maximum | ||||||
18 | as determined
in accordance with this Section, the respective | ||||||
19 | annuities shall be reduced
proportionately according to the | ||||||
20 | ratio which the amount of each proportional
annuity bears to | ||||||
21 | the aggregate of all such annuities ; except that benefits | ||||||
22 | payable under the cash balance plan established under Section | ||||||
23 | 1-161 are not subject to
proportionate reduction under this | ||||||
24 | Section .
| ||||||
25 | (b) In the case of a participant in the self-managed plan |
| |||||||
| |||||||
1 | established under
Section 15-158.2 of this Code to whom the | ||||||
2 | provisions of this Article apply:
| ||||||
3 | (i) For purposes of calculating the combined | ||||||
4 | retirement annuity and
the proportionate reduction, if | ||||||
5 | any, in a retirement annuity other than one
payable under | ||||||
6 | the self-managed plan, the amount of the Article 15 | ||||||
7 | retirement
annuity shall be deemed to be the highest | ||||||
8 | annuity to which the annuitant would
have been entitled if | ||||||
9 | he or she had participated in the traditional benefit
| ||||||
10 | package as defined in Section 15-103.1 rather than the | ||||||
11 | self-managed plan.
| ||||||
12 | (ii) For purposes of calculating the combined | ||||||
13 | survivor's annuity and
the proportionate reduction, if | ||||||
14 | any, in a survivor's annuity other than one
payable under | ||||||
15 | the self-managed plan, the amount of the Article 15 | ||||||
16 | survivor's
annuity shall be deemed to be the highest | ||||||
17 | survivor's annuity to which the
survivor would have been | ||||||
18 | entitled if the deceased employee had participated in
the | ||||||
19 | traditional benefit package as defined in Section 15-103.1 | ||||||
20 | rather than the
self-managed plan.
| ||||||
21 | (iii) Benefits payable under the self-managed plan are | ||||||
22 | not subject to
proportionate reduction under this Section.
| ||||||
23 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
24 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
25 | Sec. 20-125. Return to employment - suspension of benefits. |
| |||||||
| |||||||
1 | If a retired
employee returns to employment which is covered by | ||||||
2 | a system from which he is
receiving a proportional annuity | ||||||
3 | under this Article, his proportional annuity
from all | ||||||
4 | participating systems shall be suspended during the period of
| ||||||
5 | re-employment, except that this suspension does not apply to | ||||||
6 | any
distributions payable under the self-managed plan | ||||||
7 | established under Section
15-158.2 of this Code.
| ||||||
8 | The provisions of the Article under which such employment | ||||||
9 | would be
covered (including Section 1-161 in the case of a | ||||||
10 | participant in the cash balance plan) shall govern the | ||||||
11 | determination of whether the employee has returned
to | ||||||
12 | employment, and if applicable the exemption of temporary | ||||||
13 | employment or
employment not exceeding a specified duration or | ||||||
14 | frequency, for all
participating systems from which the retired | ||||||
15 | employee is receiving a
proportional annuity under this | ||||||
16 | Article, notwithstanding any contrary
provisions in the other | ||||||
17 | Articles governing such systems.
| ||||||
18 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
19 | Section 35. The School Code is amended by changing Sections | ||||||
20 | 24-1 and 24-8 as follows:
| ||||||
21 | (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
| ||||||
22 | Sec. 24-1. Appointment - Salaries - Payment - School month - | ||||||
23 | School term. )
School boards shall appoint all teachers, | ||||||
24 | determine qualifications of
employment
and fix the amount of |
| |||||||
| |||||||
1 | their
salaries subject to any limitation set forth in this Act | ||||||
2 | and subject to any applicable restrictions in Section 15-134.6 | ||||||
3 | of the Illinois Pension Code . They shall pay
the wages of | ||||||
4 | teachers monthly, subject, however, to the provisions of
| ||||||
5 | Section 24-21. The school month shall be the same as the | ||||||
6 | calendar month
but by resolution the school board may adopt for | ||||||
7 | its use a month of 20
days, including holidays. The school term | ||||||
8 | shall consist of at least the
minimum number of pupil | ||||||
9 | attendance days required by Section 10-19, any
additional legal | ||||||
10 | school holidays, days of teachers' institutes, or
equivalent | ||||||
11 | professional educational experiences, and one or two days at
| ||||||
12 | the beginning of the school term when used as a teachers' | ||||||
13 | workshop.
| ||||||
14 | (Source: P.A. 80-249 .)
| ||||||
15 | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| ||||||
16 | Sec. 24-8. Minimum salary. In fixing the salaries of | ||||||
17 | teachers, school boards shall pay those who
serve on a | ||||||
18 | full-time basis not less than a rate for the school year that
| ||||||
19 | is based upon training completed in a recognized institution of | ||||||
20 | higher
learning, as follows: for the school year beginning July | ||||||
21 | 1, 1980 and
thereafter, less than a bachelor's degree, $9,000; | ||||||
22 | 120 semester hours or
more and a bachelor's degree, $10,000; | ||||||
23 | 150 semester hours or more and a
master's degree, $11,000.
| ||||||
24 | Based upon previous public school
experience in this State | ||||||
25 | or any other State, territory, dependency or
possession of the |
| |||||||
| |||||||
1 | United States, or in schools operated by or under the
auspices | ||||||
2 | of the United States, teachers who serve on a full-time basis
| ||||||
3 | shall have their salaries increased to at least the following | ||||||
4 | amounts
above the starting salary for a teacher in such | ||||||
5 | district in the same
classification: with less than a | ||||||
6 | bachelor's degree, $750 after 5 years;
with 120 semester hours | ||||||
7 | or more and a bachelor's degree, $1,000 after 5
years and | ||||||
8 | $1,600 after 8 years; with 150 semester hours or more and a | ||||||
9 | master's
degree, $1,250 after 5 years, $2,000 after 8 years and | ||||||
10 | $2,750 after 13 years. However, any salary increase is subject | ||||||
11 | to any applicable restrictions in Section 15-134.6 of the | ||||||
12 | Illinois Pension Code.
| ||||||
13 | For the purpose of this Section a teacher's salary shall | ||||||
14 | include any amount
paid by the school district on behalf of the | ||||||
15 | teacher, as teacher contributions,
to the Teachers' Retirement | ||||||
16 | System of the State of Illinois.
| ||||||
17 | If a school board establishes a schedule for teachers' | ||||||
18 | salaries based
on education and experience, not inconsistent | ||||||
19 | with this Section, all certificated
nurses employed by that | ||||||
20 | board shall be paid in accordance with the provisions
of such | ||||||
21 | schedule (subject to any applicable restrictions in Section | ||||||
22 | 15-134.6 of the Illinois Pension Code) .
| ||||||
23 | For purposes of this Section, a teacher who submits a | ||||||
24 | certificate of
completion to the school office prior to the | ||||||
25 | first day of the school
term shall be considered to have the | ||||||
26 | degree stated in such certificate.
|
| |||||||
| |||||||
1 | (Source: P.A. 83-913.)
| ||||||
2 | Section 40. The State Universities Civil Service Act is | ||||||
3 | amended by changing Section 36d as follows:
| ||||||
4 | (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
| ||||||
5 | Sec. 36d. Powers and duties of the Merit Board.
| ||||||
6 | The Merit Board shall have the power and duty-
| ||||||
7 | (1) To approve a classification plan prepared under its | ||||||
8 | direction,
assigning to each class positions of substantially | ||||||
9 | similar duties. The
Merit Board shall have power to delegate to | ||||||
10 | its Director the duty of
assigning each position in the | ||||||
11 | classified service to the appropriate
class in the | ||||||
12 | classification plan approved by the Merit Board.
| ||||||
13 | (2) To prescribe the duties of each class of positions and | ||||||
14 | the
qualifications required by employment in that class.
| ||||||
15 | (3) To prescribe the range of compensation for each class | ||||||
16 | or to fix
a single rate of compensation for employees in a | ||||||
17 | particular class; and
to establish other conditions of | ||||||
18 | employment which an employer and
employee representatives have | ||||||
19 | agreed upon as fair and equitable. The
Merit Board shall direct | ||||||
20 | the payment of the "prevailing rate of wages"
in those | ||||||
21 | classifications in which, on January 1, 1952, any employer is
| ||||||
22 | paying such prevailing rate and in such other classes as the | ||||||
23 | Merit Board
may thereafter determine. "Prevailing rate of | ||||||
24 | wages" as used herein
shall be the wages paid generally in the |
| |||||||
| |||||||
1 | locality in which the work is
being performed to employees | ||||||
2 | engaged in work of a similar character. Subject to any | ||||||
3 | applicable restrictions in Section 15-134.6 of the Illinois | ||||||
4 | Pension Code, each
Each employer covered by the University | ||||||
5 | System shall be authorized to
negotiate with representatives of | ||||||
6 | employees to determine appropriate
ranges or rates of | ||||||
7 | compensation or other conditions of employment and
may | ||||||
8 | recommend to the Merit Board for establishment the rates or | ||||||
9 | ranges
or other conditions of employment which the employer and | ||||||
10 | employee
representatives have agreed upon as fair and | ||||||
11 | equitable. Any rates or
ranges established prior to January 1, | ||||||
12 | 1952, and hereafter, shall not be
changed except in accordance | ||||||
13 | with the procedures herein provided.
| ||||||
14 | (4) To recommend to the institutions and agencies specified | ||||||
15 | in
Section 36e standards for hours of work, holidays, sick | ||||||
16 | leave, overtime
compensation and vacation for the purpose of | ||||||
17 | improving conditions of
employment covered therein and for the | ||||||
18 | purpose of insuring conformity
with the prevailing rate | ||||||
19 | principal.
| ||||||
20 | (5) To prescribe standards of examination for each class, | ||||||
21 | the
examinations to be related to the duties of such class. The | ||||||
22 | Merit Board
shall have power to delegate to the Director and | ||||||
23 | his staff the
preparation, conduct and grading of examinations. | ||||||
24 | Examinations may be
written, oral, by statement of training and | ||||||
25 | experience, in the form of
tests of knowledge, skill, capacity, | ||||||
26 | intellect, aptitude; or, by any
other method, which in the |
| |||||||
| |||||||
1 | judgment of the Merit Board is reasonable and
practical for any | ||||||
2 | particular classification. Different examining
procedures may | ||||||
3 | be determined for the examinations in different
| ||||||
4 | classifications but all examinations in the same | ||||||
5 | classification shall be
uniform.
| ||||||
6 | (6) To authorize the continuous recruitment of personnel | ||||||
7 | and to that
end, to delegate to the Director and his staff the | ||||||
8 | power and the duty to
conduct open and continuous competitive | ||||||
9 | examinations for all
classifications of employment.
| ||||||
10 | (7) To cause to be established from the results of | ||||||
11 | examinations
registers for each class of positions in the | ||||||
12 | classified service of the
State Universities Civil Service | ||||||
13 | System, of the persons who shall
attain the minimum mark fixed | ||||||
14 | by the Merit Board for the examination;
and such persons shall | ||||||
15 | take rank upon the registers as candidates in the
order of | ||||||
16 | their relative excellence as determined by examination, | ||||||
17 | without
reference to priority of time of examination.
| ||||||
18 | (8) To provide by its rules for promotions in the | ||||||
19 | classified
service. Vacancies shall be filled by promotion | ||||||
20 | whenever practicable.
For the purpose of this paragraph, an | ||||||
21 | advancement in class shall
constitute a promotion.
| ||||||
22 | (9) To set a probationary period of employment of no less | ||||||
23 | than 6 months
and no longer than 12 months for each class of | ||||||
24 | positions in the classification
plan, the length of the | ||||||
25 | probationary period for each class to be determined
by the | ||||||
26 | Director.
|
| |||||||
| |||||||
1 | (10) To provide by its rules for employment at regular | ||||||
2 | rates of
compensation of physically handicapped persons in | ||||||
3 | positions in which the
handicap does not prevent the individual | ||||||
4 | from furnishing satisfactory
service.
| ||||||
5 | (11) To make and publish rules, to carry out the purpose of | ||||||
6 | the
State Universities Civil Service System and for | ||||||
7 | examination, appointments,
transfers and removals and for | ||||||
8 | maintaining and keeping records of the
efficiency of officers | ||||||
9 | and employees and groups of officers and
employees in | ||||||
10 | accordance with the provisions of Sections 36b to 36q,
| ||||||
11 | inclusive, and said Merit Board may from time to time make | ||||||
12 | changes in
such rules.
| ||||||
13 | (12) To appoint a Director and such assistants and other | ||||||
14 | clerical
and technical help as may be necessary efficiently to | ||||||
15 | administer
Sections 36b to 36q, inclusive. To authorize the | ||||||
16 | Director to appoint an
assistant resident at the place of | ||||||
17 | employment of each employer specified
in Section 36e and this | ||||||
18 | assistant may be authorized to give examinations
and to certify | ||||||
19 | names from the regional registers provided in Section
36k.
| ||||||
20 | (13) To submit to the Governor of this state on or before | ||||||
21 | November 1
of each year prior to the regular session of the | ||||||
22 | General Assembly a
report of the University System's business | ||||||
23 | and an estimate of the amount
of appropriation from state funds | ||||||
24 | required for the purpose of
administering the University | ||||||
25 | System.
| ||||||
26 | (Source: P.A. 82-524.)
|
| |||||||
| |||||||
1 | Section 45. The University of Illinois Act is amended by | ||||||
2 | adding Section 80 as follows: | ||||||
3 | (110 ILCS 305/80 new) | ||||||
4 | Sec. 80. Future increases in income. The University of | ||||||
5 | Illinois must not pay, offer, or agree to pay any future | ||||||
6 | increase in income, as that term is defined in Section 15-134.6 | ||||||
7 | of the Illinois Pension Code, to any person in a manner that | ||||||
8 | violates any of those Sections. | ||||||
9 | Section 50. The Southern Illinois University Management | ||||||
10 | Act is amended by adding Section 65 as follows: | ||||||
11 | (110 ILCS 520/65 new) | ||||||
12 | Sec. 65. Future increases in income. Southern Illinois | ||||||
13 | University must not pay, offer, or agree to pay any future | ||||||
14 | increase in income, as that term is defined in Section 15-134.6 | ||||||
15 | of the Illinois Pension Code, to any person in a manner that | ||||||
16 | violates any of those Sections. | ||||||
17 | Section 55. The Chicago State University Law is amended by | ||||||
18 | adding Section 5-175 as follows: | ||||||
19 | (110 ILCS 660/5-175 new) | ||||||
20 | Sec. 5-175. Future increases in income. Chicago State |
| |||||||
| |||||||
1 | University must not pay, offer, or agree to pay any future | ||||||
2 | increase in income, as that term is defined in Section 15-134.6 | ||||||
3 | of the Illinois Pension Code, to any person in a manner that | ||||||
4 | violates any of those Sections. | ||||||
5 | Section 60. The Eastern Illinois University Law is amended | ||||||
6 | by adding Section 10-175 as follows: | ||||||
7 | (110 ILCS 665/10-175 new) | ||||||
8 | Sec. 10-175. Future increases in income. Eastern Illinois | ||||||
9 | University must not pay, offer, or agree to pay any future | ||||||
10 | increase in income, as that term is defined in Section 15-134.6 | ||||||
11 | of the Illinois Pension Code, to any person in a manner that | ||||||
12 | violates any of those Sections. | ||||||
13 | Section 65. The Governors State University Law is amended | ||||||
14 | by adding Section 15-175 as follows: | ||||||
15 | (110 ILCS 670/15-175 new) | ||||||
16 | Sec. 15-175. Future increases in income. Governors State | ||||||
17 | University must not pay, offer, or agree to pay any future | ||||||
18 | increase in income, as that term is defined in Section 15-134.6 | ||||||
19 | of the Illinois Pension Code, to any person in a manner that | ||||||
20 | violates any of those Sections. | ||||||
21 | Section 70. The Illinois State University Law is amended by |
| |||||||
| |||||||
1 | adding Section 20-180 as follows: | ||||||
2 | (110 ILCS 675/20-180 new) | ||||||
3 | Sec. 20-180. Future increases in income. Illinois State | ||||||
4 | University must not pay, offer, or agree to pay any future | ||||||
5 | increase in income, as that term is defined in Section 15-134.6 | ||||||
6 | of the Illinois Pension Code, to any person in a manner that | ||||||
7 | violates any of those Sections. | ||||||
8 | Section 75. The Northeastern Illinois University Law is | ||||||
9 | amended by adding Section 25-175 as follows: | ||||||
10 | (110 ILCS 680/25-175 new) | ||||||
11 | Sec. 25-175. Future increases in income. Northeastern | ||||||
12 | Illinois University must not pay, offer, or agree to pay any | ||||||
13 | future increase in income, as that term is defined in Section | ||||||
14 | 15-134.6 of the Illinois Pension Code, to any person in a | ||||||
15 | manner that violates any of those Sections. | ||||||
16 | Section 80. The Northern Illinois University Law is amended | ||||||
17 | by adding Section 30-185 as follows: | ||||||
18 | (110 ILCS 685/30-185 new) | ||||||
19 | Sec. 30-185. Future increases in income. Northern Illinois | ||||||
20 | University must not pay, offer, or agree to pay any future | ||||||
21 | increase in income, as that term is defined in Section 15-134.6 |
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1 | of the Illinois Pension Code, to any person in a manner that | ||||||
2 | violates any of those Sections. | ||||||
3 | Section 85. The Western Illinois University Law is amended | ||||||
4 | by adding Section 35-180 as follows: | ||||||
5 | (110 ILCS 690/35-180 new) | ||||||
6 | Sec. 35-180. Future increases in income. Western Illinois | ||||||
7 | University must not pay, offer, or agree to pay any future | ||||||
8 | increase in income, as that term is defined in Section 15-134.6 | ||||||
9 | of the Illinois Pension Code, to any person in a manner that | ||||||
10 | violates any of those Sections. | ||||||
11 | Section 90. The Public Community College Act is amended by | ||||||
12 | changing Sections 3-26 and 3-42 as follows:
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13 | (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
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14 | Sec. 3-26.
(a) To make appointments and fix the salaries of | ||||||
15 | a
chief administrative officer, who shall be the executive
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16 | officer of the board, other administrative personnel , and all | ||||||
17 | teachers , but subject to any applicable restrictions in Section | ||||||
18 | 15-134.6 of the Illinois Pension Code .
In making these | ||||||
19 | appointments and fixing the salaries, the board may
make no | ||||||
20 | discrimination on account of sex, race, creed, color or | ||||||
21 | national origin.
| ||||||
22 | (b) Upon the written request of an employee, to
withhold |
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1 | from the compensation of that employee the membership
dues of | ||||||
2 | such employee
payable to any specified labor organization
as | ||||||
3 | defined in the Illinois Educational Labor Relations Act. Under | ||||||
4 | such
arrangement, an amount shall be withheld for each regular | ||||||
5 | payroll period
which is equal to the prorata share of the | ||||||
6 | annual membership dues plus
any payments or contributions and | ||||||
7 | the
board shall pay such withholding to the specified labor | ||||||
8 | organization
within 10 working days from the time of the | ||||||
9 | withholding.
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10 | (Source: P.A. 83-1014.)
| ||||||
11 | (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
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12 | Sec. 3-42.
To employ such personnel as may be needed, to | ||||||
13 | establish policies
governing their employment and dismissal, | ||||||
14 | and to fix the amount of their
compensation , subject to any | ||||||
15 | applicable restrictions in Section 15-134.6 of the Illinois | ||||||
16 | Pension Code . In the employment, establishment of policies and | ||||||
17 | fixing of
compensation the board may make no discrimination on | ||||||
18 | account of sex, race,
creed, color or national origin.
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19 | Residence within any community college district or outside | ||||||
20 | any community
college district shall not be considered:
| ||||||
21 | (a) in determining whether to retain or not retain any | ||||||
22 | employee of a community
college employed prior to July 1, | ||||||
23 | 1977 or prior to the adoption by the community
college | ||||||
24 | board of a resolution making residency within the community | ||||||
25 | college
district of some or all employees a condition of |
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1 | employment, whichever is later;
| ||||||
2 | (b) in assigning, promoting or transferring any | ||||||
3 | employee of a community
college to an office or position | ||||||
4 | employed prior to July 1, 1977 or prior
to the adoption by | ||||||
5 | the community college board of a resolution making | ||||||
6 | residency
within the community college district of some or | ||||||
7 | all employees a condition
of employment, whichever is | ||||||
8 | later; or
| ||||||
9 | (c) in determining the salary or other compensation of | ||||||
10 | any employee of
a community college.
| ||||||
11 | (Source: P.A. 80-248.)
| ||||||
12 | Section 95. The Illinois Educational Labor Relations Act is | ||||||
13 | amended by changing Sections 4 and 17 as follows:
| ||||||
14 | (115 ILCS 5/4) (from Ch. 48, par. 1704)
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15 | Sec. 4. Employer rights. Employers shall not be required to | ||||||
16 | bargain over matters of inherent
managerial policy, which shall | ||||||
17 | include such areas of discretion or policy
as the functions of | ||||||
18 | the employer, standards of services, its overall
budget, the | ||||||
19 | organizational structure and selection of new employees and
| ||||||
20 | direction of employees. Employers, however, shall be required | ||||||
21 | to bargain
collectively with regard to policy matters directly | ||||||
22 | affecting wages (but subject to any applicable restrictions in | ||||||
23 | Section 15-134.6 of the Illinois Pension Code) , hours
and terms | ||||||
24 | and conditions of employment as well as the impact thereon upon
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| |||||||
1 | request by employee representatives , but excluding the | ||||||
2 | changes, the impact of changes, and the implementation of the | ||||||
3 | changes set forth in this amendatory Act of the 97th General | ||||||
4 | Assembly . To preserve the rights of employers
and exclusive | ||||||
5 | representatives which have established collective bargaining
| ||||||
6 | relationships or negotiated collective bargaining agreements | ||||||
7 | prior to the
effective date of this Act, employers shall be | ||||||
8 | required to bargain
collectively with regard to any matter | ||||||
9 | concerning wages (but subject to subject to any applicable | ||||||
10 | restrictions in Section 15-134.6 of the Illinois Pension Code) , | ||||||
11 | hours or
conditions of employment about which they have | ||||||
12 | bargained for and agreed to
in a collective bargaining | ||||||
13 | agreement prior to the effective date of this Act , but | ||||||
14 | excluding the changes, the impact of changes, and the | ||||||
15 | implementation of the changes set forth in this amendatory Act | ||||||
16 | of the 97th General Assembly .
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17 | (Source: P.A. 83-1014.)
| ||||||
18 | (115 ILCS 5/17) (from Ch. 48, par. 1717)
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19 | Sec. 17. Effect on other laws. In case of any conflict | ||||||
20 | between the
provisions of this Act and any other law (other | ||||||
21 | than Section 15-134.6 of the Illinois Pension Code) , executive | ||||||
22 | order or administrative
regulation, the provisions of this Act | ||||||
23 | shall prevail and control.
The provisions of this Act are | ||||||
24 | subject to any applicable restrictions in Section 15-134.6 of | ||||||
25 | the Illinois Pension Code, as well as the changes, impact of |
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1 | changes, and implementation of changes set forth in this | ||||||
2 | amendatory Act of the 97th General Assembly. Nothing in this | ||||||
3 | Act shall be construed to replace or diminish the rights
of | ||||||
4 | employees established by Section 36d of "An Act to create the | ||||||
5 | State Universities
Civil Service System", approved May 11, | ||||||
6 | 1905, as amended or modified.
| ||||||
7 | (Source: P.A. 83-1014.)
| ||||||
8 | Section 100. The State Mandates Act is amended by adding | ||||||
9 | Section 8.36 as follows: | ||||||
10 | (30 ILCS 805/8.36 new) | ||||||
11 | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
12 | of this Act, no reimbursement by the State is required for the | ||||||
13 | implementation of any mandate created by this amendatory Act of | ||||||
14 | the 97th General Assembly. | ||||||
15 | Section 105. Severability and inseverability. The | ||||||
16 | provisions set forth in Sections 5, 15, 20, 25, 35 through 100, | ||||||
17 | and 999 of this Act, as well as Sections 2-134, 7-109, | ||||||
18 | 14-135.08, 15-106, 15-107, 15-113.2, 15-113.6, 15-163, 15-165, | ||||||
19 | and 16-106, subsection (a-5) of Section 16-158, and Section | ||||||
20 | 18-140 of the Illinois Pension Code, as set forth in Section 30 | ||||||
21 | of this Act, are severable pursuant to Section 1.31 of the | ||||||
22 | Statute on Statutes, and are not mutually dependent upon the | ||||||
23 | provisions set forth in any other Section of this Act. |
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| |||||||
1 | Section 10 of this Act and the other provisions of Section 30 | ||||||
2 | of this Act are mutually dependent and inseverable. If any of | ||||||
3 | those provision is held invalid other than as applied to a | ||||||
4 | particular person or circumstance, then all of those provisions | ||||||
5 | are invalid. | ||||||
6 | Section 999. Effective date. This Act takes effect upon | ||||||
7 | becoming law.".
|