|
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB0001 Introduced 1/9/2013, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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Amends the General Provisions, General Assembly, Illinois Municipal Retirement Fund (IMRF), State Employee, State Universities, Downstate Teacher, and Judges Articles of the Illinois Pension Code. Contains a Part A, which is intended by the General Assembly as a stand-alone reform of the General Assembly, State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code and takes effect upon becoming law. Contains a Part B, which is intended to provide alternative provisions that take effect only if and when a corresponding portion of Part A is determined to be unconstitutional or otherwise invalid or unenforceable. In Part A, caps pensionable salary, temporarily suspends and reduces the amount of automatic annual increases, requires the systems to be 100% funded by 2043, and increases required employee contributions. In Part B, requires persons to make an election either to accept reductions in the amount of, as well as delays in eligibility for, automatic annual increases or to forgo certain healthcare benefits and future increases in pensionable income. Effective upon becoming law, except that specified portions of Part B take effect upon the date following the date upon which certain contingencies occur.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | "PART A |
5 | | Section A-3. The Illinois Public Labor Relations Act is |
6 | | amended by changing Sections 2, 4, 14, and 15 as follows: |
7 | | (5 ILCS 315/2) (from Ch. 48, par. 1602) |
8 | | Sec. 2. Policy. It is the public policy of the State of |
9 | | Illinois
to grant public employees full
freedom of association, |
10 | | self-organization, and designation of representatives
of their |
11 | | own choosing for the purpose of negotiating wages, hours and |
12 | | other
conditions of employment or other mutual aid or |
13 | | protection. |
14 | | It is the purpose of this Act to regulate labor relations |
15 | | between public
employers and employees, including the |
16 | | designation of employee representatives,
negotiation of wages, |
17 | | hours and other conditions of employment, and resolution
of |
18 | | disputes arising under collective bargaining agreements. |
19 | | It is the purpose of this Act to prescribe the legitimate |
20 | | rights of both
public employees and public employers, to |
21 | | protect the public health and safety
of the citizens of |
22 | | Illinois, and to provide peaceful and orderly procedures
for |
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1 | | protection of the rights of all. To prevent labor strife and to |
2 | | protect
the public health and safety of the citizens of |
3 | | Illinois,
all collective bargaining disputes involving persons |
4 | | designated by the Board
as performing essential services and |
5 | | those persons defined herein as security employees
shall be |
6 | | submitted to impartial arbitrators, who shall be authorized to
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7 | | issue awards in order to resolve such disputes ; except that |
8 | | such arbitration and awards shall not alter or affect the |
9 | | changes, the impact of the changes, or the implementation of |
10 | | the changes set forth in this amendatory Act of the 98th |
11 | | General Assembly, which are prohibited subjects of bargaining . |
12 | | It is the public policy
of the State of Illinois that where the |
13 | | right of employees to strike is
prohibited by law, it is |
14 | | necessary to afford an alternate, expeditious,
equitable and |
15 | | effective procedure for the resolution of labor disputes |
16 | | subject
to approval procedures mandated by this Act. To that |
17 | | end, the provisions
for such awards shall be liberally
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18 | | construed. |
19 | | (Source: P.A. 83-1012.)"; and |
20 | | (5 ILCS 315/4) (from Ch. 48, par. 1604)
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21 | | Sec. 4. Management Rights. Employers shall not be required |
22 | | to bargain
over matters of inherent managerial policy, which |
23 | | shall include such areas
of discretion or policy as the |
24 | | functions of the employer, standards of
services,
its overall |
25 | | budget, the organizational structure and selection of new
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1 | | employees, examination techniques
and direction of employees. |
2 | | Employers, however, shall be required to bargain
collectively |
3 | | with regard to
policy matters directly affecting wages, hours |
4 | | and terms and conditions of employment
as well as the impact |
5 | | thereon upon request by employee representatives , but |
6 | | excluding the changes, the impact of changes, and the |
7 | | implementation of the changes set forth in this amendatory Act |
8 | | of the 98th General Assembly, which are prohibited subjects of |
9 | | bargaining .
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10 | | To preserve the rights of employers and exclusive |
11 | | representatives which
have established collective bargaining |
12 | | relationships or negotiated collective
bargaining agreements |
13 | | prior to the effective date of this Act, employers
shall be |
14 | | required to bargain collectively with regard to any matter |
15 | | concerning
wages, hours or conditions of employment about which |
16 | | they have bargained
for and agreed to in a collective |
17 | | bargaining agreement
prior to the effective date of this Act , |
18 | | but excluding the changes, the impact of changes, and the |
19 | | implementation of the changes set forth in this amendatory Act |
20 | | of the 98th General Assembly, which are prohibited subjects of |
21 | | bargaining .
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22 | | The chief judge of the judicial circuit that employs a |
23 | | public employee who
is
a court reporter, as defined in the |
24 | | Court Reporters Act, has the authority to
hire, appoint, |
25 | | promote, evaluate, discipline, and discharge court reporters
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26 | | within that judicial circuit.
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1 | | Nothing in this amendatory Act of the 94th General Assembly |
2 | | shall
be construed to intrude upon the judicial functions of |
3 | | any court. This
amendatory Act of the 94th General Assembly |
4 | | applies only to nonjudicial
administrative matters relating to |
5 | | the collective bargaining rights of court
reporters.
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6 | | (Source: P.A. 94-98, eff. 7-1-05.)
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7 | | (5 ILCS 315/14) (from Ch. 48, par. 1614)
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8 | | Sec. 14. Security Employee, Peace Officer and Fire Fighter |
9 | | Disputes.
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10 | | (a) In the case of collective bargaining agreements |
11 | | involving units of
security employees of a public employer, |
12 | | Peace Officer Units, or units of
fire fighters or paramedics, |
13 | | and in the case of disputes under Section 18,
unless the |
14 | | parties mutually agree to some other time limit, mediation
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15 | | shall commence 30 days prior to the expiration date of such |
16 | | agreement or
at such later time as the mediation services |
17 | | chosen under subsection (b) of
Section 12 can be provided to |
18 | | the parties. In the case of negotiations
for an initial |
19 | | collective bargaining agreement, mediation shall commence
upon |
20 | | 15 days notice from either party or at such later time as the
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21 | | mediation services chosen pursuant to subsection (b) of Section |
22 | | 12 can be
provided to the parties. In mediation under this |
23 | | Section, if either party
requests the use of mediation services |
24 | | from the Federal Mediation and
Conciliation Service, the other |
25 | | party shall either join in such request or
bear the additional |
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1 | | cost of mediation services from another source. The
mediator |
2 | | shall have a duty to keep the Board informed on the progress of
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3 | | the mediation. If any dispute has not been resolved within 15 |
4 | | days after
the first meeting of the parties and the mediator, |
5 | | or within such other
time limit as may be mutually agreed upon |
6 | | by the parties, either the
exclusive representative or employer |
7 | | may request of the other, in writing,
arbitration, and shall |
8 | | submit a copy of the request to the Board.
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9 | | (b) Within 10 days after such a request for arbitration has |
10 | | been
made, the employer shall choose a delegate and
the |
11 | | employees' exclusive representative shall choose a delegate to |
12 | | a panel
of arbitration as provided in this Section. The |
13 | | employer and employees
shall forthwith advise the other and the |
14 | | Board of their selections.
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15 | | (c) Within 7 days after the request of either party, the |
16 | | parties shall request a panel of impartial arbitrators from |
17 | | which they shall select the neutral chairman according to the |
18 | | procedures provided in this Section. If the parties have agreed |
19 | | to a contract that contains a grievance resolution procedure as |
20 | | provided in Section 8, the chairman shall be selected using |
21 | | their agreed contract procedure unless they mutually agree to |
22 | | another procedure. If the parties fail to notify the Board of |
23 | | their selection of neutral chairman within 7 days after receipt |
24 | | of the list of impartial arbitrators, the Board shall appoint, |
25 | | at random, a neutral chairman from the list. In the absence of |
26 | | an agreed contract procedure for selecting an impartial |
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1 | | arbitrator, either party may request a panel from the Board. |
2 | | Within 7 days of the request of either party, the Board shall |
3 | | select
from the Public Employees Labor Mediation Roster 7 |
4 | | persons who are on the
labor arbitration panels of either the |
5 | | American Arbitration Association or
the Federal Mediation and |
6 | | Conciliation Service, or who are members of the
National |
7 | | Academy of Arbitrators, as nominees for
impartial arbitrator of |
8 | | the arbitration panel. The parties may select an
individual on |
9 | | the list provided by the Board or any other individual
mutually |
10 | | agreed upon by the parties. Within 7 days following the receipt
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11 | | of the list, the parties shall notify the Board of the person |
12 | | they have
selected. Unless the parties agree on an alternate |
13 | | selection procedure,
they shall alternatively strike one name |
14 | | from the list provided by the
Board until only one name |
15 | | remains. A coin toss shall determine which party
shall strike |
16 | | the first name. If the parties fail to notify the Board in a
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17 | | timely manner of their selection for neutral chairman, the |
18 | | Board shall
appoint a neutral chairman from the Illinois Public |
19 | | Employees
Mediation/Arbitration Roster.
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20 | | (d) The chairman shall call a hearing to begin within 15 |
21 | | days and give
reasonable notice of the time and place of the |
22 | | hearing. The hearing
shall be held at the offices of the Board |
23 | | or at such other location as the
Board deems appropriate. The |
24 | | chairman shall preside over the hearing and
shall take |
25 | | testimony. Any oral or documentary evidence and other data
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26 | | deemed relevant by the arbitration panel may be received in |
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1 | | evidence. The
proceedings shall be informal. Technical rules of |
2 | | evidence shall not apply
and the competency of the evidence |
3 | | shall not thereby be deemed impaired. A
verbatim record of the |
4 | | proceedings shall be made and the arbitrator shall
arrange for |
5 | | the necessary recording service. Transcripts may be ordered at
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6 | | the expense of the party ordering them, but the transcripts |
7 | | shall not be
necessary for a decision by the arbitration panel. |
8 | | The expense of the
proceedings, including a fee for the |
9 | | chairman, established in advance by
the Board, shall be borne |
10 | | equally by each of the parties to the dispute.
The delegates, |
11 | | if public officers or employees, shall continue on the
payroll |
12 | | of the public employer without loss of pay. The hearing |
13 | | conducted
by the arbitration panel may be adjourned from time |
14 | | to time, but unless
otherwise agreed by the parties, shall be |
15 | | concluded within 30 days of the
time of its commencement. |
16 | | Majority actions and rulings shall constitute
the actions and |
17 | | rulings of the arbitration panel. Arbitration proceedings
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18 | | under this Section shall not be interrupted or terminated by |
19 | | reason of any
unfair labor practice charge filed by either |
20 | | party at any time.
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21 | | (e) The arbitration panel may administer oaths, require the |
22 | | attendance
of witnesses, and the production of such books, |
23 | | papers, contracts, agreements
and documents as may be deemed by |
24 | | it material to a just determination of
the issues in dispute, |
25 | | and for such purpose may issue subpoenas. If any
person refuses |
26 | | to obey a subpoena, or refuses to be sworn or to testify,
or if |
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1 | | any witness, party or attorney is guilty of any contempt while |
2 | | in
attendance at any hearing, the arbitration panel may, or the |
3 | | attorney general
if requested shall, invoke the aid of any |
4 | | circuit court within the jurisdiction
in which the hearing is |
5 | | being held, which court shall issue an appropriate
order. Any |
6 | | failure to obey the order may be punished by the court as |
7 | | contempt.
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8 | | (f) At any time before the rendering of an award, the |
9 | | chairman of the
arbitration panel, if he is of the opinion that |
10 | | it would be useful or
beneficial to do so, may remand the |
11 | | dispute to the parties for further
collective bargaining for a |
12 | | period not to exceed 2 weeks. If the dispute
is remanded for |
13 | | further collective bargaining the time provisions of this
Act |
14 | | shall be extended for a time period equal to that of the |
15 | | remand. The
chairman of the panel of arbitration shall notify |
16 | | the Board of the remand.
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17 | | (g) At or before the conclusion of the hearing held |
18 | | pursuant to subsection
(d), the arbitration panel shall |
19 | | identify the economic issues in dispute,
and direct each of the |
20 | | parties to submit, within such time limit as the
panel shall |
21 | | prescribe, to the arbitration panel and to each other its last
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22 | | offer of settlement on each economic issue. The determination |
23 | | of the
arbitration panel as to the issues in dispute and as to |
24 | | which of these
issues are economic shall be conclusive. The |
25 | | arbitration panel, within 30
days after the conclusion of the |
26 | | hearing, or such further additional
periods to which the |
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1 | | parties may agree, shall make written findings of fact
and |
2 | | promulgate a written opinion and shall mail or otherwise |
3 | | deliver a true
copy thereof to the parties and their |
4 | | representatives and to the Board. As
to each economic issue, |
5 | | the arbitration panel shall adopt the last offer of
settlement |
6 | | which, in the opinion of the arbitration panel, more nearly
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7 | | complies with the applicable factors prescribed in subsection |
8 | | (h). The
findings, opinions and order as to all other issues |
9 | | shall be based upon the
applicable factors prescribed in |
10 | | subsection (h).
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11 | | (h) Where there is no agreement between the parties, or |
12 | | where there is
an agreement but the parties have begun |
13 | | negotiations or discussions looking
to a new agreement or |
14 | | amendment of the existing agreement, and wage rates
or other |
15 | | conditions of employment under the proposed new or amended |
16 | | agreement
are in dispute, the arbitration panel shall base its |
17 | | findings, opinions
and order upon the following factors, as |
18 | | applicable:
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19 | | (1) The lawful authority of the employer.
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20 | | (2) Stipulations of the parties.
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21 | | (3) The interests and welfare of the public and the |
22 | | financial ability
of the unit of government to meet those |
23 | | costs.
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24 | | (4) Comparison of the wages, hours and conditions of |
25 | | employment of the
employees involved in the arbitration |
26 | | proceeding with the wages, hours and
conditions of |
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1 | | employment of other employees performing similar services
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2 | | and with other employees generally:
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3 | | (A) In public employment in comparable |
4 | | communities.
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5 | | (B) In private employment in comparable |
6 | | communities.
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7 | | (5) The average consumer prices for goods and services, |
8 | | commonly known
as the cost of living.
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9 | | (6) The overall compensation presently received by the |
10 | | employees,
including
direct wage compensation, vacations, |
11 | | holidays and other excused time, insurance
and pensions, |
12 | | medical and hospitalization benefits, the continuity and
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13 | | stability of employment and all other benefits received.
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14 | | (7) Changes in any of the foregoing circumstances |
15 | | during the pendency
of the arbitration proceedings.
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16 | | (8) Such other factors, not confined to the foregoing, |
17 | | which are normally
or traditionally taken into |
18 | | consideration in the determination of wages,
hours and |
19 | | conditions of employment through voluntary collective |
20 | | bargaining,
mediation, fact-finding, arbitration or |
21 | | otherwise between the parties, in
the public service or in |
22 | | private employment.
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23 | | (i) In the case of peace officers, the arbitration decision |
24 | | shall be
limited to wages, hours, and conditions of employment |
25 | | (which may include
residency requirements in municipalities |
26 | | with a population under 1,000,000, but
those residency |
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1 | | requirements shall not allow residency outside of Illinois)
and |
2 | | shall not include
the following: i) residency requirements in |
3 | | municipalities with a population
of at least 1,000,000; ii) the |
4 | | type of equipment, other
than uniforms, issued or used; iii) |
5 | | manning; iv) the total number of
employees employed by the |
6 | | department; v) mutual aid and assistance
agreements to other |
7 | | units of government; and vi) the criterion pursuant to
which |
8 | | force, including deadly force, can be used; and vii) the |
9 | | changes, the impact of the changes, and the implementation of |
10 | | the changes set forth in this amendatory Act of the 98th |
11 | | General Assembly, which are prohibited subjects of bargaining; |
12 | | provided, nothing herein
shall preclude an arbitration |
13 | | decision regarding equipment or manning
levels if such decision |
14 | | is based on a finding that the equipment or manning
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15 | | considerations in a specific work assignment involve a serious |
16 | | risk to the
safety of a peace officer beyond that which is |
17 | | inherent in the normal
performance of police duties. Limitation |
18 | | of the terms of the arbitration
decision pursuant to this |
19 | | subsection shall not be construed to limit the
factors upon |
20 | | which the decision may be based, as set forth in subsection |
21 | | (h).
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22 | | In the case of fire fighter, and fire department or fire |
23 | | district paramedic
matters, the arbitration decision shall be |
24 | | limited to wages, hours, and
conditions of employment (which |
25 | | may include residency requirements in
municipalities with a |
26 | | population under 1,000,000, but those residency
requirements |
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1 | | shall not allow residency outside of Illinois) and shall not
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2 | | include the
following matters: i) residency requirements in |
3 | | municipalities with a
population of at least 1,000,000; ii) the |
4 | | type of equipment (other than
uniforms and fire fighter turnout |
5 | | gear) issued or used; iii) the total
number of employees |
6 | | employed by the department; iv) mutual aid and
assistance |
7 | | agreements to other units of government; and v) the criterion
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8 | | pursuant to which force, including deadly force, can be used; |
9 | | and vi) the changes, the impact of the changes, and the |
10 | | implementation of the changes set forth in this amendatory Act |
11 | | of the 98th General Assembly, which are prohibited subjects of |
12 | | bargaining; provided,
however, nothing herein shall preclude |
13 | | an arbitration decision regarding
equipment levels if such |
14 | | decision is based on a finding that the equipment
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15 | | considerations in a specific work assignment involve a serious |
16 | | risk to the
safety of a fire fighter beyond that which is |
17 | | inherent in the normal
performance of fire fighter duties. |
18 | | Limitation of the terms of the
arbitration decision pursuant to |
19 | | this subsection shall not be construed to
limit the facts upon |
20 | | which the decision may be based, as set forth in
subsection |
21 | | (h).
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22 | | The changes to this subsection (i) made by Public Act |
23 | | 90-385 (relating to residency requirements) do not
apply to |
24 | | persons who are employed by a combined department that performs |
25 | | both
police and firefighting services; these persons shall be |
26 | | governed by the
provisions of this subsection (i) relating to |
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1 | | peace officers, as they existed
before the amendment by Public |
2 | | Act 90-385.
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3 | | To preserve historical bargaining rights, this subsection |
4 | | shall not apply
to any provision of a fire fighter collective |
5 | | bargaining agreement in effect
and applicable on the effective |
6 | | date of this Act; provided, however, nothing
herein shall |
7 | | preclude arbitration with respect to any such provision.
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8 | | In the case of security employees or employees deemed to be |
9 | | essential workers pursuant to Section 18 of this Act, an |
10 | | arbitration decision shall not alter or affect the changes, the |
11 | | impact of the changes, or the implementation of the changes set |
12 | | forth in this amendatory Act of the 98th General Assembly, |
13 | | which are prohibited subjects of bargaining. |
14 | | (j) Arbitration procedures shall be deemed to be initiated |
15 | | by the
filing of a letter requesting mediation as required |
16 | | under subsection (a)
of this Section. The commencement of a new |
17 | | municipal fiscal year after the
initiation of arbitration |
18 | | procedures under this Act, but before the
arbitration decision, |
19 | | or its enforcement, shall not be deemed to render a
dispute |
20 | | moot, or to otherwise impair the jurisdiction or authority of |
21 | | the
arbitration panel or its decision. Increases in rates
of |
22 | | compensation awarded by the arbitration panel may be effective |
23 | | only at
the start of the fiscal year next commencing after the |
24 | | date of the arbitration
award. If a new fiscal year has |
25 | | commenced either since the initiation of
arbitration |
26 | | procedures under this Act or since any mutually agreed
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1 | | extension of the statutorily required period of mediation
under |
2 | | this Act by the parties to the labor dispute causing a
delay in |
3 | | the initiation of arbitration, the foregoing limitations shall |
4 | | be
inapplicable, and such awarded increases may be retroactive |
5 | | to the
commencement of the fiscal year, any other statute or |
6 | | charter provisions to
the contrary, notwithstanding. At any |
7 | | time the parties, by stipulation, may
amend or modify an award |
8 | | of arbitration.
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9 | | (k) Orders of the arbitration panel shall be reviewable, |
10 | | upon
appropriate petition by either the public employer or the |
11 | | exclusive
bargaining representative, by the circuit court for |
12 | | the county in which the
dispute arose or in which a majority of |
13 | | the affected employees reside, but
only for reasons that the |
14 | | arbitration panel was without or exceeded its
statutory |
15 | | authority; the order is arbitrary, or capricious; or the order
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16 | | was procured by fraud, collusion or other similar and unlawful |
17 | | means. Such
petitions for review must be filed with the |
18 | | appropriate circuit court
within 90 days following the issuance |
19 | | of the arbitration order. The
pendency of such proceeding for |
20 | | review shall not automatically stay the
order of the |
21 | | arbitration panel. The party against whom the final decision
of |
22 | | any such court shall be adverse, if such court finds such |
23 | | appeal or
petition to be frivolous, shall pay reasonable |
24 | | attorneys' fees and costs to
the successful party as determined |
25 | | by said court in its discretion. If said
court's decision |
26 | | affirms the award of money, such award, if retroactive,
shall |
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1 | | bear interest at the rate of 12 percent per annum from the |
2 | | effective
retroactive date.
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3 | | (l) During the pendency of proceedings before the |
4 | | arbitration panel,
existing wages, hours, and other conditions |
5 | | of employment shall not be
changed by action of either party |
6 | | without the consent of the other but a
party may so consent |
7 | | without prejudice to his rights or position under
this Act. The |
8 | | proceedings are deemed to be pending before the arbitration
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9 | | panel upon the initiation of arbitration procedures under this |
10 | | Act.
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11 | | (m) Security officers of public employers, and Peace |
12 | | Officers, Fire
Fighters and fire department and fire protection |
13 | | district paramedics,
covered by this Section may not withhold |
14 | | services, nor may public employers
lock out or prevent such |
15 | | employees from performing services at any time.
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16 | | (n) All of the terms decided upon by the arbitration panel |
17 | | shall be included
in an agreement to be submitted to the public |
18 | | employer's governing body
for ratification and adoption by law, |
19 | | ordinance or the equivalent
appropriate means.
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20 | | The governing body shall review each term decided by the |
21 | | arbitration panel.
If the governing body fails to reject one or |
22 | | more terms of the
arbitration panel's decision by a 3/5 vote of |
23 | | those duly elected and
qualified members of the governing body, |
24 | | within 20 days of issuance, or
in the case of firefighters |
25 | | employed by a state university, at the next
regularly scheduled |
26 | | meeting of the governing body after issuance, such
term or |
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1 | | terms shall become a part of the collective bargaining |
2 | | agreement of
the parties. If the governing body affirmatively |
3 | | rejects one or more terms
of the arbitration panel's decision, |
4 | | it must provide reasons for such
rejection with respect to each |
5 | | term so rejected, within 20 days of such
rejection and the |
6 | | parties shall return to the arbitration panel
for further |
7 | | proceedings and issuance of a supplemental decision with |
8 | | respect
to the rejected terms. Any supplemental decision by an |
9 | | arbitration panel
or other decision maker agreed to by the |
10 | | parties shall be submitted to
the governing body for |
11 | | ratification and adoption in accordance with the
procedures and |
12 | | voting requirements set forth in this Section.
The voting |
13 | | requirements of this subsection shall apply to all disputes
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14 | | submitted to arbitration pursuant to this Section |
15 | | notwithstanding any
contrary voting requirements contained in |
16 | | any existing collective
bargaining agreement between the |
17 | | parties.
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18 | | (o) If the governing body of the employer votes to reject |
19 | | the panel's
decision, the parties shall return to the panel |
20 | | within 30 days from the
issuance of the reasons for rejection |
21 | | for further proceedings and issuance
of a supplemental |
22 | | decision. All reasonable costs of such supplemental
proceeding |
23 | | including the exclusive representative's reasonable attorney's
|
24 | | fees, as established by the Board, shall be paid by the |
25 | | employer.
|
26 | | (p) Notwithstanding the provisions of this Section the |
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1 | | employer and
exclusive representative may agree to submit |
2 | | unresolved disputes concerning
wages, hours, terms and |
3 | | conditions of employment to an alternative form of
impasse |
4 | | resolution.
|
5 | | (Source: P.A. 96-813, eff. 10-30-09.)
|
6 | | (5 ILCS 315/15) (from Ch. 48, par. 1615)
|
7 | | Sec. 15. Act Takes Precedence. |
8 | | (a) In case of any conflict between the
provisions of this |
9 | | Act and any other law (other than Section 5 of the State |
10 | | Employees Group Insurance Act of 1971 and other than the |
11 | | changes made to the Illinois Pension Code by Public Act 96-889 |
12 | | and the changes, impact of changes, and the implementation of |
13 | | the changes made by this amendatory Act of the 98th 96th |
14 | | General Assembly), executive order or administrative
|
15 | | regulation relating to wages, hours and conditions of |
16 | | employment and employment
relations, the provisions of this Act |
17 | | or any collective bargaining agreement
negotiated thereunder |
18 | | shall prevail and control.
Nothing in this Act shall be |
19 | | construed to replace or diminish the
rights of employees |
20 | | established by Sections 28 and 28a of the Metropolitan
Transit |
21 | | Authority Act, Sections 2.15 through 2.19 of the Regional |
22 | | Transportation
Authority Act. The provisions of this Act are |
23 | | subject to the changes made by this amendatory Act of the 98th |
24 | | General Assembly and Section 5 of the State Employees Group |
25 | | Insurance Act of 1971. Nothing in this Act shall be construed |
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1 | | to replace the necessity of complaints against a sworn peace |
2 | | officer, as defined in Section 2(a) of the Uniform Peace |
3 | | Officer Disciplinary Act, from having a complaint supported by |
4 | | a sworn affidavit.
|
5 | | (b) Except as provided in subsection (a) above, any |
6 | | collective bargaining
contract between a public employer and a |
7 | | labor organization executed pursuant
to this Act shall |
8 | | supersede any contrary statutes, charters, ordinances, rules
|
9 | | or regulations relating to wages, hours and conditions of |
10 | | employment and
employment relations adopted by the public |
11 | | employer or its agents. Any collective
bargaining agreement |
12 | | entered into prior to the effective date of this Act
shall |
13 | | remain in full force during its duration.
|
14 | | (c) It is the public policy of this State, pursuant to |
15 | | paragraphs (h)
and (i) of Section 6 of Article VII of the |
16 | | Illinois Constitution, that the
provisions of this Act are the |
17 | | exclusive exercise by the State of powers
and functions which |
18 | | might otherwise be exercised by home rule units. Such
powers |
19 | | and functions may not be exercised concurrently, either |
20 | | directly
or indirectly, by any unit of local government, |
21 | | including any home rule
unit, except as otherwise authorized by |
22 | | this Act.
|
23 | | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
|
24 | | Section A-5. The Governor's Office of Management and Budget |
25 | | Act is amended by changing Sections 7 and 8 as follows:
|
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1 | | (20 ILCS 3005/7) (from Ch. 127, par. 417)
|
2 | | Sec. 7.
All statements and estimates of expenditures |
3 | | submitted to the
Office in connection with the preparation of a |
4 | | State budget, and any other
estimates of expenditures, |
5 | | supporting requests for appropriations, shall be
formulated |
6 | | according to the various functions and activities for which the
|
7 | | respective department, office or institution of the State |
8 | | government
(including the elective officers in the executive |
9 | | department and including
the University of Illinois and the |
10 | | judicial department) is responsible. All
such statements and |
11 | | estimates of expenditures relating to a particular
function or |
12 | | activity shall be further formulated or subject to analysis in
|
13 | | accordance with the following classification of objects:
|
14 | | (1) Personal services
|
15 | | (2) State contribution for employee group insurance
|
16 | | (3) Contractual services
|
17 | | (4) Travel
|
18 | | (5) Commodities
|
19 | | (6) Equipment
|
20 | | (7) Permanent improvements
|
21 | | (8) Land
|
22 | | (9) Electronic Data Processing
|
23 | | (10) Telecommunication services
|
24 | | (11) Operation of Automotive Equipment
|
25 | | (12) Contingencies
|
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1 | | (13) Reserve
|
2 | | (14) Interest
|
3 | | (15) Awards and Grants
|
4 | | (16) Debt Retirement
|
5 | | (17) Non-cost Charges .
|
6 | | (18) State retirement contribution for annual normal cost |
7 | | (19) State retirement contribution for unfunded accrued |
8 | | liability. |
9 | | (Source: P.A. 93-25, eff. 6-20-03 .)
|
10 | | (20 ILCS 3005/8) (from Ch. 127, par. 418)
|
11 | | Sec. 8.
When used in connection with a State budget or |
12 | | expenditure or
estimate, items (1) through (16) in the |
13 | | classification of objects stated in
Section 7 shall have the |
14 | | meanings ascribed to those items in Sections 14
through 24.7, |
15 | | respectively, of the State Finance Act. "An Act in relation to |
16 | | State finance",
approved June 10, 1919, as amended.
|
17 | | When used in connection with a State budget or expenditure |
18 | | or
estimate, items (18) and (19) in the classification of |
19 | | objects stated in
Section 7 shall have the meanings ascribed to |
20 | | those items in Sections 24.12 and 24.13, respectively, of the |
21 | | State Finance Act. |
22 | | (Source: P.A. 82-325.)
|
23 | | Section A-10. The State Finance Act is amended by changing |
24 | | Section 13 and by adding Sections 24.12 and 24.13 as follows:
|
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1 | | (30 ILCS 105/13) (from Ch. 127, par. 149)
|
2 | | Sec. 13.
The objects and purposes for which appropriations |
3 | | are made
are classified and standardized by items as follows:
|
4 | | (1) Personal services;
|
5 | | (2) State contribution for employee group insurance;
|
6 | | (3) Contractual services;
|
7 | | (4) Travel;
|
8 | | (5) Commodities;
|
9 | | (6) Equipment;
|
10 | | (7) Permanent improvements;
|
11 | | (8) Land;
|
12 | | (9) Electronic Data Processing;
|
13 | | (10) Operation of automotive equipment;
|
14 | | (11) Telecommunications services;
|
15 | | (12) Contingencies;
|
16 | | (13) Reserve;
|
17 | | (14) Interest;
|
18 | | (15) Awards and Grants;
|
19 | | (16) Debt Retirement;
|
20 | | (17) Non-Cost Charges;
|
21 | | (18) State retirement contribution for annual normal cost; |
22 | | (19) State retirement contribution for unfunded accrued |
23 | | liability; |
24 | | (20) (18) Purchase Contract for Real Estate.
|
25 | | When an appropriation is made to an officer, department, |
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1 | | institution,
board, commission or other agency, or to a private |
2 | | association or
corporation, in one or more of the items above |
3 | | specified, such
appropriation shall be construed in accordance |
4 | | with the definitions and
limitations specified in this Act, |
5 | | unless the appropriation act
otherwise provides.
|
6 | | An appropriation for a purpose other than one specified and |
7 | | defined
in this Act may be made only as an additional, separate |
8 | | and distinct
item, specifically stating the object and purpose |
9 | | thereof.
|
10 | | (Source: P.A. 84-263; 84-264.)
|
11 | | (30 ILCS 105/24.12 new) |
12 | | Sec. 24.12. "State retirement contribution for annual |
13 | | normal cost" defined. The term "State retirement contribution |
14 | | for annual normal cost" means the portion of the total required |
15 | | State contribution to a retirement system for a fiscal year |
16 | | that represents the State's portion of the System's projected |
17 | | normal cost for that fiscal year, as determined and certified |
18 | | by the board of trustees of the retirement system in |
19 | | conformance with the applicable provisions of the Illinois |
20 | | Pension Code. |
21 | | (30 ILCS 105/24.13 new) |
22 | | Sec. 24.13. "State retirement contribution for unfunded |
23 | | accrued liability" defined. The term "State retirement |
24 | | contribution for unfunded accrued liability" means the portion |
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1 | | of the total required State contribution to a retirement system |
2 | | for a fiscal year that is not included in the State retirement |
3 | | contribution for annual normal cost. |
4 | | Section A-15. The Budget Stabilization Act is amended by |
5 | | changing Sections 20 and 25 as follows: |
6 | | (30 ILCS 122/20) |
7 | | Sec. 20. Pension Stabilization Fund. |
8 | | (a) The Pension Stabilization Fund is hereby created as a |
9 | | special fund in the State treasury. Moneys in the fund shall be |
10 | | used for the sole purpose of making payments to the designated |
11 | | retirement systems as provided in Section 25.
|
12 | | (b) For each fiscal year when the General Assembly's
|
13 | | appropriations and transfers or diversions as required by law
|
14 | | from general funds do not exceed 99% of the
estimated general |
15 | | funds revenues pursuant to subsection (a)
of Section 10, the |
16 | | Comptroller shall transfer from the
General Revenue Fund as |
17 | | provided by this Section a total
amount equal to 0.5% of the |
18 | | estimated general funds revenues
to the Pension Stabilization |
19 | | Fund. |
20 | | (c) For each fiscal year through State fiscal year 2013, |
21 | | when the General Assembly's
appropriations and transfers or |
22 | | diversions as required by law
from general funds do not exceed |
23 | | 98% of the
estimated general funds revenues pursuant to |
24 | | subsection (b)
of Section 10, the Comptroller shall transfer |
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1 | | from the
General Revenue Fund as provided by this Section a |
2 | | total
amount equal to 1.0% of the estimated general funds |
3 | | revenues
to the Pension Stabilization Fund. |
4 | | (c-10) In State fiscal year 2020 and each fiscal year |
5 | | thereafter, the State Comptroller shall order transferred and |
6 | | the State Treasurer shall transfer $1,000,000,000 from the |
7 | | General Revenue Fund to the Pension Stabilization Fund. |
8 | | (c-15) The transfers made pursuant to subsection (c-10) of |
9 | | this Section shall continue through State fiscal year 2045 or |
10 | | until each of the designated retirement systems, as defined in |
11 | | Section 25, has achieved the funding ratio prescribed by law |
12 | | for that retirement system, whichever occurs first; provided |
13 | | that those transfers shall not be made after any provision of |
14 | | this Act that is designated as inseverable in Section 97 of |
15 | | this Act is declared to be unconstitutional or invalid other |
16 | | than as applied. |
17 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
18 | | to be transferred each fiscal year under this Section
into the |
19 | | Pension Stabilization Fund on the first day of each
month of |
20 | | that fiscal year or as soon thereafter as possible; except that |
21 | | the final transfer of the fiscal year shall be made as soon as |
22 | | practical after the August 31 following the end of the fiscal |
23 | | year. |
24 | | Until State fiscal year 2014, before Before the final |
25 | | transfer for a fiscal year is made, the Comptroller shall |
26 | | reconcile the estimated general funds revenues used in |
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1 | | calculating the other transfers under this Section for that |
2 | | fiscal year with the actual general funds revenues for that |
3 | | fiscal year. The
final transfer for the fiscal year shall be |
4 | | adjusted so that the
total amount transferred under this |
5 | | Section for that fiscal year is equal to the percentage |
6 | | specified in subsection
(b) or (c) of this Section, whichever |
7 | | is applicable, of the actual
general funds revenues for that |
8 | | fiscal year. The actual general funds revenues for the fiscal |
9 | | year shall be calculated in a manner consistent with subsection |
10 | | (c) of
Section 10 of this Act.
|
11 | | (Source: P.A. 94-839, eff. 6-6-06.) |
12 | | (30 ILCS 122/25)
|
13 | | Sec. 25. Transfers from the Pension Stabilization Fund. |
14 | | (a) As used in this Section, "designated retirement |
15 | | systems" means: |
16 | | (1) the State Employees' Retirement System of
|
17 | | Illinois; |
18 | | (2) the Teachers' Retirement System of the State of
|
19 | | Illinois; |
20 | | (3) the State Universities Retirement System; |
21 | | (4) the Judges Retirement System of Illinois; and |
22 | | (5) the General Assembly Retirement System. |
23 | | (b) As soon as may be practical after any money is |
24 | | deposited into the Pension Stabilization Fund, the State |
25 | | Comptroller shall apportion the deposited amount among the |
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1 | | designated retirement systems and the State Comptroller and |
2 | | State Treasurer shall pay the apportioned amounts to the |
3 | | designated retirement systems. The amount deposited shall be |
4 | | apportioned among the designated retirement systems in the same |
5 | | proportion as their respective portions of the
total actuarial |
6 | | reserve deficiency of the designated retirement systems, as |
7 | | most
recently determined by the Governor's Office of Management |
8 | | and
Budget. Amounts received by a designated retirement system |
9 | | under this Section shall be used for funding the unfunded |
10 | | liabilities of the retirement system. Payments under this |
11 | | Section are authorized by the continuing appropriation under |
12 | | Section 1.7 of the State Pension Funds Continuing Appropriation |
13 | | Act. |
14 | | (c) At the request of the State Comptroller, the Governor's |
15 | | Office of Management and Budget shall
determine the individual |
16 | | and total actuarial reserve deficiencies of the
designated |
17 | | retirement systems. For this purpose, the
Governor's Office of |
18 | | Management and Budget shall consider the
latest available audit |
19 | | and actuarial reports of each of the
retirement systems and the |
20 | | relevant reports and statistics of
the Public Pension Division |
21 | | of the Department of
Financial and Professional Regulation. |
22 | | (d) Payments to the designated retirement systems under |
23 | | this Section shall be in addition to, and not in lieu of, any |
24 | | State contributions required under Section 2-124, 14-131, |
25 | | 15-155, 16-158, or 18-131 of the Illinois Pension Code. |
26 | | Payments to the designated retirement systems under this |
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1 | | Section, transferred after the effective date of this |
2 | | amendatory Act of the 98th General Assembly, do not reduce and |
3 | | do not constitute payment of any portion of the required State |
4 | | contribution under Article 2, 14, 15, 16, or 18 of the Illinois |
5 | | Pension Code in that fiscal year. Such amounts shall not |
6 | | reduce, and shall not be included in the calculation of, the |
7 | | required State Contribution under Article 2, 14, 15, 16, or 18 |
8 | | of the Illinois Pension Code in any future year, until the |
9 | | designated retirement system has received payment of |
10 | | contributions pursuant to this Act.
|
11 | | (Source: P.A. 94-839, eff. 6-6-06.) |
12 | | Section A-20. The Illinois Pension Code is amended by |
13 | | changing Sections 1-103.3, 2-108, 2-119.1, 2-121.1, 2-124, |
14 | | 2-125, 2-126, 2-134, 2-162, 7-109, 14-103.10, 14-106, 14-114, |
15 | | 14-131, 14-132, 14-133, 14-135.08, 14-152.1, 15-106, 15-107, |
16 | | 15-111, 15-113.2, 15-136, 15-155, 15-156, 15-157, 15-165, |
17 | | 15-198, 16-106, 16-121, 16-127, 16-133, 16-133.1, 16-152, |
18 | | 16-158, 16-203, and 18-131 and by adding Sections 2-105.1, |
19 | | 2-105.2, 14-103.40, 14-103.41, 15-107.1, 15-107.2, 16-106.4, |
20 | | 16-106.5, and 16-158.2 as follows:
|
21 | | (40 ILCS 5/1-103.3)
|
22 | | Sec. 1-103.3. Application of 1994 amendment; funding |
23 | | standard.
|
24 | | (a) The provisions of Public Act 88-593 this amendatory Act |
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1 | | of 1994 that change the method of
calculating, certifying, and |
2 | | paying the required State contributions to the
retirement |
3 | | systems established under Articles 2, 14, 15, 16, and 18 shall
|
4 | | first apply to the State contributions required for State |
5 | | fiscal year 1996.
|
6 | | (b) (Blank) The General Assembly declares that a funding |
7 | | ratio (the ratio of a
retirement system's total assets to its |
8 | | total actuarial liabilities) of 90% is
an appropriate goal for |
9 | | State-funded retirement systems in Illinois, and it
finds that |
10 | | a funding ratio of 90% is now the generally-recognized norm
|
11 | | throughout the nation for public employee retirement systems |
12 | | that are
considered to be financially secure and funded in an |
13 | | appropriate and
responsible manner .
|
14 | | (c) Every 5 years, beginning in 1999, the Commission on |
15 | | Government Forecasting and Accountability, in consultation |
16 | | with the affected retirement systems and the
Governor's Office |
17 | | of Management and Budget (formerly
Bureau
of the Budget), shall |
18 | | consider and determine whether the funding goals 90% funding |
19 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code |
20 | | continue subsection (b) continues to represent an appropriate |
21 | | funding goals goal for
those State-funded retirement systems in |
22 | | Illinois , and it shall report its findings
and recommendations |
23 | | on this subject to the Governor and the General Assembly.
|
24 | | (Source: P.A. 93-1067, eff. 1-15-05.)
|
25 | | (40 ILCS 5/2-105.1 new) |
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1 | | Sec. 2-105.1. Tier I participant. "Tier I participant": A |
2 | | participant who first became a participant before January 1, |
3 | | 2011. |
4 | | (40 ILCS 5/2-105.2 new) |
5 | | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a |
6 | | former Tier I participant who is receiving a retirement |
7 | | annuity.
|
8 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
|
9 | | Sec. 2-108. Salary. "Salary": (1) For members of the |
10 | | General Assembly,
the total compensation paid to the member by |
11 | | the State for one
year of service, including the additional |
12 | | amounts, if any, paid to
the member as an officer pursuant to |
13 | | Section 1 of "An Act
in relation to the compensation and |
14 | | emoluments of the members of the
General Assembly", approved |
15 | | December 6, 1907, as now or hereafter
amended.
|
16 | | (2) For the State executive officers specified
in Section |
17 | | 2-105, the total compensation paid to the member for one year
|
18 | | of service.
|
19 | | (3) For members of the System who are participants under |
20 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
21 | | of the House of
Representatives or Secretary or Assistant |
22 | | Secretary of the Senate, the
total compensation paid to the |
23 | | member for one year of service, but not to
exceed the salary of |
24 | | the highest salaried officer of the General Assembly.
|
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1 | | However, in the event that federal law results in any |
2 | | participant
receiving imputed income based on the value of |
3 | | group term life insurance
provided by the State, such imputed |
4 | | income shall not be included in salary
for the purposes of this |
5 | | Article.
|
6 | | Notwithstanding any other provision of this Code, the |
7 | | salary of a Tier I participant for the purposes of this Code |
8 | | shall not exceed, for periods of service in a term of office |
9 | | beginning on or after the effective date of this amendatory Act |
10 | | of the 98th General Assembly, the greater of (i) the annual |
11 | | contribution and benefit base established for the applicable |
12 | | year by the Commissioner of Social Security under the federal |
13 | | Social Security Act or (ii) the annual salary of the |
14 | | participant during the 365 days immediately preceding the |
15 | | effective date of this Section. |
16 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
17 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
18 | | Sec. 2-119.1. Automatic increase in retirement annuity.
|
19 | | (a) Except as provided in subsections (a-1) and (a-2), a A |
20 | | participant who retires after June 30, 1967, and who has not
|
21 | | received an initial increase under this Section before the |
22 | | effective date
of this amendatory Act of 1991, shall, in |
23 | | January or July next following
the first anniversary of |
24 | | retirement, whichever occurs first, and in the same
month of |
25 | | each year thereafter, but in no event prior to age 60, have the |
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1 | | amount
of the originally granted retirement annuity increased |
2 | | as follows: for each
year through 1971, 1 1/2%; for each year |
3 | | from 1972 through 1979, 2%; and for
1980 and each year |
4 | | thereafter, 3%. Annuitants who have received an initial
|
5 | | increase under this subsection prior to the effective date of |
6 | | this amendatory
Act of 1991 shall continue to receive their |
7 | | annual increases in the same month
as the initial increase.
|
8 | | (a-1) Notwithstanding any other provision of this Article, |
9 | | for a Tier I retiree, the amount of each automatic increase in |
10 | | retirement annuity occurring on or after the effective date of |
11 | | this amendatory Act of the 98th General Assembly shall be the |
12 | | lesser of (i) $750 or (ii) 3% of the total annuity
payable at |
13 | | the time of the increase, including previous increases granted. |
14 | | (a-2) Notwithstanding any other provision of this Article, |
15 | | the System shall not grant any new or additional automatic |
16 | | increase in retirement annuity to a Tier I retiree on or after |
17 | | the effective date of this amendatory Act of the 98th General |
18 | | Assembly and before January 1, 2017. |
19 | | Notwithstanding any other provision of this Article, the |
20 | | System shall not grant any new or additional automatic increase |
21 | | in retirement annuity to a Tier I retiree who has not yet |
22 | | attained the age of 67, regardless of any age augmentation |
23 | | granted under this Article as an early retirement incentive. |
24 | | If on the effective date of this amendatory Act of the 98th |
25 | | General Assembly a Tier I retiree has already received an |
26 | | annual increase under this Section but does not yet meet the |
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1 | | new eligibility requirements of this subsection, the annual |
2 | | increases already received shall continue in force, but no |
3 | | additional annual increase shall be granted until the Tier I |
4 | | retiree meets the new eligibility requirements. |
5 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
6 | | and (a-2) apply without regard to whether or not the Tier I |
7 | | retiree is in active service under this Article on or after the |
8 | | effective date of this amendatory Act of the 98th General |
9 | | Assembly. |
10 | | (b) Beginning January 1, 1990, for eligible participants |
11 | | who remain
in service after attaining 20 years of creditable |
12 | | service, the 3% increases
provided under subsection (a) shall |
13 | | begin to accrue on the January 1 next
following the date upon |
14 | | which the participant (1) attains age 55, or (2)
attains 20 |
15 | | years of creditable service, whichever occurs later, and shall
|
16 | | continue to accrue while the participant remains in service; |
17 | | such increases
shall become payable on January 1 or July 1, |
18 | | whichever occurs first, next
following the first anniversary of |
19 | | retirement. For any person who has service
credit in the System |
20 | | for the entire period from January 15, 1969 through
December |
21 | | 31, 1992, regardless of the date of termination of service, the
|
22 | | reference to age 55 in clause (1) of this subsection (b) shall |
23 | | be deemed to
mean age 50.
|
24 | | This subsection (b) does not apply to any person who first |
25 | | becomes a
member of the System after August 8, 2003 ( the |
26 | | effective date of Public Act 93-494) this amendatory Act of
the |
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1 | | 93rd General Assembly .
|
2 | | (b-5) Notwithstanding any other provision of this Article, |
3 | | a participant who first becomes a participant on or after |
4 | | January 1, 2011 (the effective date of Public Act 96-889) |
5 | | shall, in January or July next following the first anniversary |
6 | | of retirement, whichever occurs first, and in the same month of |
7 | | each year thereafter, but in no event prior to age 67, have the |
8 | | amount of the originally granted retirement annuity then being |
9 | | paid increased by 3% or one-half the annual unadjusted |
10 | | percentage increase in the Consumer Price Index for All Urban |
11 | | Consumers as determined by the Public Pension Division of the |
12 | | Department of Insurance under subsection (a) of Section |
13 | | 2-108.1, whichever is less. The changes made to this subsection |
14 | | by this amendatory Act of the 98th General Assembly do not |
15 | | apply to any automatic annual increase granted under this |
16 | | subsection before the effective date of this amendatory Act. |
17 | | (c) The foregoing provisions relating to automatic |
18 | | increases are not
applicable to a participant who retires |
19 | | before having made contributions
(at the rate prescribed in |
20 | | Section 2-126) for automatic increases for less
than the |
21 | | equivalent of one full year. However, in order to be eligible |
22 | | for
the automatic increases, such a participant may make |
23 | | arrangements to pay
to the system the amount required to bring |
24 | | the total contributions for the
automatic increase to the |
25 | | equivalent of one year's contributions based upon
his or her |
26 | | last salary.
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1 | | (d) A participant who terminated service prior to July 1, |
2 | | 1967, with at
least 14 years of service is entitled to an |
3 | | increase in retirement annuity
beginning January, 1976, and to |
4 | | additional increases in January of each
year thereafter.
|
5 | | The initial increase shall be 1 1/2% of the originally |
6 | | granted retirement
annuity multiplied by the number of full |
7 | | years that the annuitant was in
receipt of such annuity prior |
8 | | to January 1, 1972, plus 2% of the originally
granted |
9 | | retirement annuity for each year after that date. The |
10 | | subsequent
annual increases shall be at the rate of 2% of the |
11 | | originally granted
retirement annuity for each year through |
12 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
13 | | (e) Beginning January 1, 1990, all automatic annual |
14 | | increases payable
under this Section shall be calculated as a |
15 | | percentage of the total annuity
payable at the time of the |
16 | | increase, including previous increases granted
under this |
17 | | Article.
|
18 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
19 | | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
|
20 | | Sec. 2-121.1. Survivor's annuity - amount.
|
21 | | (a) A surviving spouse shall be entitled to 66 2/3% of the |
22 | | amount of
retirement annuity to which the participant or |
23 | | annuitant was entitled on
the date of death, without regard to |
24 | | whether the participant had attained
age 55 prior to his or her |
25 | | death, subject to a minimum payment of 10% of
salary. If a |
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1 | | surviving spouse, regardless of age, has in his or her care
at |
2 | | the date of death any eligible child or children of the |
3 | | participant, the
survivor's annuity shall be the greater of the |
4 | | following: (1) 66 2/3% of
the amount of retirement annuity to |
5 | | which the participant or annuitant was
entitled on the date of |
6 | | death, or (2) 30% of the participant's salary
increased by 10% |
7 | | of salary on account of each such child, subject to a
total |
8 | | payment for the surviving spouse and children of 50% of salary. |
9 | | If
eligible children survive but there is no surviving spouse, |
10 | | or if the
surviving spouse dies or becomes disqualified by
|
11 | | remarriage while eligible children survive, each
eligible |
12 | | child shall be entitled to an annuity of 20% of salary, subject
|
13 | | to a maximum total payment for all such children of 50% of |
14 | | salary.
|
15 | | However, the survivor's annuity payable under this Section |
16 | | shall not be
less than 100% of the amount of retirement annuity |
17 | | to which the participant
or annuitant was entitled on the date |
18 | | of death, if he or she is survived by
a dependent disabled |
19 | | child.
|
20 | | The salary to be used for determining these benefits shall |
21 | | be the
salary used for determining the amount of retirement |
22 | | annuity as provided
in Section 2-119.01.
|
23 | | (b) Upon the death of a participant after the termination |
24 | | of service or
upon death of an annuitant, the maximum total |
25 | | payment to a surviving spouse
and eligible children, or to |
26 | | eligible children alone if there is no surviving
spouse, shall |
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1 | | be 75% of the retirement annuity to which the participant
or |
2 | | annuitant was entitled, unless there is a dependent disabled |
3 | | child
among the survivors.
|
4 | | (c) When a child ceases to be an eligible child, the |
5 | | annuity to that
child, or to the surviving spouse on account of |
6 | | that child, shall thereupon
cease, and the annuity payable to |
7 | | the surviving spouse or other eligible
children shall be |
8 | | recalculated if necessary.
|
9 | | Upon the ineligibility of the last eligible child, the |
10 | | annuity shall
immediately revert to the amount payable upon |
11 | | death of a participant or
annuitant who leaves no eligible |
12 | | children. If the surviving spouse is then
under age 50, the |
13 | | annuity as revised shall be deferred until the attainment
of |
14 | | age 50.
|
15 | | (d) Beginning January 1, 1990, every survivor's annuity |
16 | | shall be increased
(1) on each January 1 occurring on or after |
17 | | the commencement of the annuity if
the deceased member died |
18 | | while receiving a retirement annuity, or (2) in
other cases, on |
19 | | each January 1 occurring on or after the first anniversary
of |
20 | | the commencement of the annuity, by an amount equal to 3% of |
21 | | the current
amount of the annuity, including any previous |
22 | | increases under this Article.
Such increases shall apply |
23 | | without regard to whether the deceased member
was in service on |
24 | | or after the effective date of this amendatory Act of
1991, but |
25 | | shall not accrue for any period prior to January 1, 1990.
|
26 | | (d-5) Notwithstanding any other provision of this Article, |
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1 | | the initial survivor's annuity of a survivor of a participant |
2 | | who first becomes a participant on or after January 1, 2011 |
3 | | (the effective date of Public Act 96-889) shall be in the |
4 | | amount of 66 2/3% of the amount of the retirement annuity to |
5 | | which the participant or annuitant was entitled on the date of |
6 | | death and shall be increased (1) on each January 1 occurring on |
7 | | or after the commencement of the annuity if
the deceased member |
8 | | died while receiving a retirement annuity or (2) in
other |
9 | | cases, on each January 1 occurring on or after the first |
10 | | anniversary
of the commencement of the annuity, by an amount |
11 | | equal to 3% or one-half the annual unadjusted percentage |
12 | | increase in the Consumer Price Index for All Urban Consumers as |
13 | | determined by the Public Pension Division of the Department of |
14 | | Insurance under subsection (a) of Section 2-108.1, whichever is |
15 | | less, of the originally granted survivor's annuity then being |
16 | | paid . The changes made to this subsection by this amendatory |
17 | | Act of the 98th General Assembly do not apply to any automatic |
18 | | annual increase granted under this subsection before the |
19 | | effective date of this amendatory Act. |
20 | | (e) Notwithstanding any other provision of this Article, |
21 | | beginning
January 1, 1990, the minimum survivor's annuity |
22 | | payable to any person who
is entitled to receive a survivor's |
23 | | annuity under this Article shall be
$300 per month, without |
24 | | regard to whether or not the deceased participant
was in |
25 | | service on the effective date of this amendatory Act of 1989.
|
26 | | (f) In the case of a proportional survivor's annuity |
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1 | | arising under
the Retirement Systems Reciprocal Act where the |
2 | | amount payable by the
System on January 1, 1993 is less than |
3 | | $300 per month, the amount payable
by the System shall be |
4 | | increased beginning on that date by a monthly amount
equal to |
5 | | $2 for each full year that has expired since the annuity began.
|
6 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
7 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
|
8 | | Sec. 2-124. Contributions by State.
|
9 | | (a) The State shall make contributions to the System by
|
10 | | appropriations of amounts which, together with the |
11 | | contributions of
participants, interest earned on investments, |
12 | | and other income
will meet the cost of maintaining and |
13 | | administering the System on a 100% 90%
funded basis in |
14 | | accordance with actuarial recommendations by the end of State |
15 | | fiscal year 2043 .
|
16 | | (b) The Board shall determine the amount of State
|
17 | | contributions required for each fiscal year on the basis of the
|
18 | | actuarial tables and other assumptions adopted by the Board and |
19 | | the
prescribed rate of interest, using the formula in |
20 | | subsection (c).
|
21 | | (c) For State fiscal years 2014 through 2043, the minimum |
22 | | contribution
to the System to be made by the State for each |
23 | | fiscal year shall be an amount
determined by the System to be |
24 | | equal to the sum of (1) the State's portion of the projected |
25 | | normal cost for that fiscal year, plus (2) an amount sufficient |
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1 | | to bring the total assets of the
System up to 100% of the total |
2 | | actuarial liabilities of the System by the end of
State fiscal |
3 | | year 2043. In making these determinations, the required State
|
4 | | contribution shall be calculated each year as a level |
5 | | percentage of payroll
over the years remaining to and including |
6 | | fiscal year 2043 and shall be
determined under the projected |
7 | | unit credit actuarial cost method. |
8 | | For State fiscal years 2012 and 2013 through 2045 , the |
9 | | minimum contribution
to the System to be made by the State for |
10 | | each fiscal year shall be an amount
determined by the System to |
11 | | be sufficient to bring the total assets of the
System up to 90% |
12 | | of the total actuarial liabilities of the System by the end of
|
13 | | State fiscal year 2045. In making these determinations, the |
14 | | required State
contribution shall be calculated each year as a |
15 | | level percentage of payroll
over the years remaining to and |
16 | | including fiscal year 2045 and shall be
determined under the |
17 | | projected unit credit actuarial cost method.
|
18 | | For State fiscal years 1996 through 2005, the State |
19 | | contribution to
the System, as a percentage of the applicable |
20 | | employee payroll, shall be
increased in equal annual increments |
21 | | so that by State fiscal year 2011, the
State is contributing at |
22 | | the rate required under this Section.
|
23 | | Notwithstanding any other provision of this Article, the |
24 | | total required State
contribution for State fiscal year 2006 is |
25 | | $4,157,000.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State
contribution for State fiscal year 2007 is |
2 | | $5,220,300.
|
3 | | For each of State fiscal years 2008 through 2009, the State |
4 | | contribution to
the System, as a percentage of the applicable |
5 | | employee payroll, shall be
increased in equal annual increments |
6 | | from the required State contribution for State fiscal year |
7 | | 2007, so that by State fiscal year 2011, the
State is |
8 | | contributing at the rate otherwise required under this Section.
|
9 | | Notwithstanding any other provision of this Article, the |
10 | | total required State contribution for State fiscal year 2010 is |
11 | | $10,454,000 and shall be made from the proceeds of bonds sold |
12 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
13 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
14 | | expenses determined by the System's share of total bond |
15 | | proceeds, (ii) any amounts received from the General Revenue |
16 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
17 | | proceeds due to the issuance of discounted bonds, if |
18 | | applicable. |
19 | | Notwithstanding any other provision of this Article, the
|
20 | | total required State contribution for State fiscal year 2011 is
|
21 | | the amount recertified by the System on or before April 1, 2011 |
22 | | pursuant to Section 2-134 and shall be made from the proceeds |
23 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
24 | | the General
Obligation Bond Act, less (i) the pro rata share of |
25 | | bond sale
expenses determined by the System's share of total |
26 | | bond
proceeds, (ii) any amounts received from the General |
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1 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
2 | | bond
proceeds due to the issuance of discounted bonds, if
|
3 | | applicable. |
4 | | Beginning in State fiscal year 2044, the minimum State |
5 | | contribution for each fiscal year shall be the amount needed to |
6 | | maintain the total assets of the System at 100% of the total |
7 | | actuarial liabilities of the System. |
8 | | Beginning in State fiscal year 2046, the minimum State |
9 | | contribution for
each fiscal year shall be the amount needed to |
10 | | maintain the total assets of
the System at 90% of the total |
11 | | actuarial liabilities of the System.
|
12 | | Amounts received by the System pursuant to Section 25 of |
13 | | the Budget Stabilization Act or Section 8.12 of the State |
14 | | Finance Act in any fiscal year do not reduce and do not |
15 | | constitute payment of any portion of the minimum State |
16 | | contribution required under this Article in that fiscal year. |
17 | | Such amounts shall not reduce, and shall not be included in the |
18 | | calculation of, the required State contributions under this |
19 | | Article in any future year until the System has reached a |
20 | | funding ratio of at least 100% 90% . A reference in this Article |
21 | | to the "required State contribution" or any substantially |
22 | | similar term does not include or apply to any amounts payable |
23 | | to the System under Section 25 of the Budget Stabilization Act.
|
24 | | Notwithstanding any other provision of this Code or the |
25 | | Budget Stabilization Act, amounts transferred to the System |
26 | | pursuant to the Budget Stabilization Act after the effective |
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1 | | date of this amendatory Act of the 98th General Assembly do not |
2 | | reduce and do not constitute payment of any portion of the |
3 | | required State contribution under this Article in that fiscal |
4 | | year. Such amounts shall not reduce, and shall not be included |
5 | | in the calculation of, the required State contributions under |
6 | | this Article in any future year until the System has received |
7 | | payment of contributions pursuant to the Budget Stabilization |
8 | | Act. |
9 | | Notwithstanding any other provision of this Section, the |
10 | | required State
contribution for State fiscal year 2005 and for |
11 | | fiscal year 2008 and each fiscal year thereafter through State |
12 | | fiscal year 2013 , as
calculated under this Section and
|
13 | | certified under Section 2-134, shall not exceed an amount equal |
14 | | to (i) the
amount of the required State contribution that would |
15 | | have been calculated under
this Section for that fiscal year if |
16 | | the System had not received any payments
under subsection (d) |
17 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) |
18 | | the portion of the State's total debt service payments for that |
19 | | fiscal
year on the bonds issued in fiscal year 2003 for the |
20 | | purposes of that Section 7.2, as determined
and certified by |
21 | | the Comptroller, that is the same as the System's portion of
|
22 | | the total moneys distributed under subsection (d) of Section |
23 | | 7.2 of the General
Obligation Bond Act. In determining this |
24 | | maximum for State fiscal years 2008 through 2010, however, the |
25 | | amount referred to in item (i) shall be increased, as a |
26 | | percentage of the applicable employee payroll, in equal |
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1 | | increments calculated from the sum of the required State |
2 | | contribution for State fiscal year 2007 plus the applicable |
3 | | portion of the State's total debt service payments for fiscal |
4 | | year 2007 on the bonds issued in fiscal year 2003 for the |
5 | | purposes of Section 7.2 of the General
Obligation Bond Act, so |
6 | | that, by State fiscal year 2011, the
State is contributing at |
7 | | the rate otherwise required under this Section.
|
8 | | (d) For purposes of determining the required State |
9 | | contribution to the System, the value of the System's assets |
10 | | shall be equal to the actuarial value of the System's assets, |
11 | | which shall be calculated as follows: |
12 | | As of June 30, 2008, the actuarial value of the System's |
13 | | assets shall be equal to the market value of the assets as of |
14 | | that date. In determining the actuarial value of the System's |
15 | | assets for fiscal years after June 30, 2008, any actuarial |
16 | | gains or losses from investment return incurred in a fiscal |
17 | | year shall be recognized in equal annual amounts over the |
18 | | 5-year period following that fiscal year. |
19 | | (e) For purposes of determining the required State |
20 | | contribution to the system for a particular year, the actuarial |
21 | | value of assets shall be assumed to earn a rate of return equal |
22 | | to the system's actuarially assumed rate of return. |
23 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
24 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
25 | | 7-13-12.)
|
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1 | | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
|
2 | | Sec. 2-125. Obligations of State ; funding guarantee . |
3 | | (a) The payment of (1) the required State contributions, |
4 | | (2) all benefits
granted under this system and (3) all expenses |
5 | | of administration and
operation are obligations of the State to |
6 | | the extent specified in this
Article.
|
7 | | (b) All income, interest and dividends derived from |
8 | | deposits and investments
shall be credited to the account of |
9 | | the system in the State Treasury and
used to pay benefits under |
10 | | this Article.
|
11 | | (c) Beginning July 1, 2013, the State shall be |
12 | | contractually obligated to contribute to the System under |
13 | | Section 2-124 in each State fiscal year an amount not less than |
14 | | the sum of (i) the State's normal cost for that year and
(ii) |
15 | | the portion of the unfunded accrued liability assigned to that |
16 | | year by law in accordance with a schedule that distributes |
17 | | payments equitably over a reasonable period of time and in |
18 | | accordance with accepted actuarial practices. The obligations |
19 | | created under this subsection (c) are contractual obligations |
20 | | protected and enforceable under Article I, Section 16 and |
21 | | Article XIII, Section 5 of the Illinois Constitution. |
22 | | Notwithstanding any other provision of law, if the State |
23 | | fails to pay in a State fiscal year the amount guaranteed under |
24 | | this subsection, the System may bring a mandamus action in the |
25 | | Circuit Court of Sangamon County to compel the State to make |
26 | | that payment, irrespective of other remedies that
may be |
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1 | | available to the System. In ordering the State to make the |
2 | | required payment, the court may order a reasonable payment |
3 | | schedule to enable the State to make the required payment |
4 | | without significantly imperiling the public health, safety, or |
5 | | welfare. |
6 | | Any payments required to be made by the State pursuant to |
7 | | this subsection (c)
are expressly subordinated to the payment |
8 | | of the principal, interest, and premium, if any, on any
bonded |
9 | | debt obligation of the State or any other State-created entity, |
10 | | either currently outstanding or to
be issued, for which the |
11 | | source of repayment or security thereon is derived directly or |
12 | | indirectly from
tax revenues collected by the State or any |
13 | | other State-created entity. Payments on such bonded
|
14 | | obligations include any statutory fund transfers or other |
15 | | prefunding mechanisms or formulas set forth,
now or hereafter, |
16 | | in State law or bond indentures, into debt service funds or |
17 | | accounts of the State
related to such bonded obligations, |
18 | | consistent with the payment schedules associated with such
|
19 | | obligations. |
20 | | (Source: P.A. 83-1440.)
|
21 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
22 | | Sec. 2-126. Contributions by participants.
|
23 | | (a) Each participant shall contribute toward the cost of |
24 | | his or her
retirement annuity a percentage of each payment of |
25 | | salary received by him or
her for service as a member as |
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1 | | follows: for service between October 31, 1947
and January 1, |
2 | | 1959, 5%; for service between January 1, 1959 and June 30, |
3 | | 1969,
6%; for service between July 1, 1969 and January 10, |
4 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
5 | | service after December 31, 1981, 8 1/2%.
|
6 | | (a-5) In addition to the contributions otherwise required |
7 | | under this Article, each Tier I participant shall also make the |
8 | | following contributions toward the cost of his or her |
9 | | retirement annuity from each payment
of salary received by him |
10 | | or her for service as a member: |
11 | | (1) beginning July 1, 2013 and through June 30, 2014, |
12 | | 1% of salary; and |
13 | | (2) beginning on July 1, 2014, 2% of salary. |
14 | | (b) Beginning August 2, 1949, each male participant, and |
15 | | from July 1,
1971, each female participant shall contribute |
16 | | towards the cost of the
survivor's annuity 2% of salary.
|
17 | | A participant who has no eligible survivor's annuity |
18 | | beneficiary may elect
to cease making contributions for |
19 | | survivor's annuity under this subsection.
A survivor's annuity |
20 | | shall not be payable upon the death of a person who has
made |
21 | | this election, unless prior to that death the election has been |
22 | | revoked
and the amount of the contributions that would have |
23 | | been paid under this
subsection in the absence of the election |
24 | | is paid to the System, together
with interest at the rate of 4% |
25 | | per year from the date the contributions
would have been made |
26 | | to the date of payment.
|
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1 | | (c) Beginning July 1, 1967, each participant shall |
2 | | contribute 1% of
salary towards the cost of automatic increase |
3 | | in annuity provided in
Section 2-119.1. These contributions |
4 | | shall be made concurrently with
contributions for retirement |
5 | | annuity purposes.
|
6 | | (d) In addition, each participant serving as an officer of |
7 | | the General
Assembly shall contribute, for the same purposes |
8 | | and at the same rates
as are required of a regular participant, |
9 | | on each additional payment
received as an officer. If the |
10 | | participant serves as an
officer for at least 2 but less than 4 |
11 | | years, he or she shall
contribute an amount equal to the amount |
12 | | that would have been contributed
had the participant served as |
13 | | an officer for 4 years. Persons who serve
as officers in the |
14 | | 87th General Assembly but cannot receive the additional
payment |
15 | | to officers because of the ban on increases in salary during |
16 | | their
terms may nonetheless make contributions based on those |
17 | | additional payments
for the purpose of having the additional |
18 | | payments included in their highest
salary for annuity purposes; |
19 | | however, persons electing to make these
additional |
20 | | contributions must also pay an amount representing the
|
21 | | corresponding employer contributions, as calculated by the |
22 | | System.
|
23 | | (e) Notwithstanding any other provision of this Article, |
24 | | the required contribution of a participant who first becomes a |
25 | | participant on or after January 1, 2011 shall not exceed the |
26 | | contribution that would be due under this Article if that |
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1 | | participant's highest salary for annuity purposes were |
2 | | $106,800, plus any increases in that amount under Section |
3 | | 2-108.1. |
4 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
5 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
|
6 | | Sec. 2-134. To certify required State contributions and |
7 | | submit vouchers.
|
8 | | (a) The Board shall certify to the Governor on or before |
9 | | December 15 of each
year through until December 15, 2011 the |
10 | | amount of the required State contribution to the System for the |
11 | | next
fiscal year and shall specifically identify the System's |
12 | | projected State normal cost for that fiscal year . The |
13 | | certification shall include a copy of the actuarial
|
14 | | recommendations upon which it is based and shall specifically |
15 | | identify the System's projected State normal cost for that |
16 | | fiscal year .
|
17 | | (a-5) On or before November 1 of each year, beginning |
18 | | November 1, 2012, the Board shall submit to the State Actuary, |
19 | | the Governor, and the General Assembly a proposed certification |
20 | | of the amount of the required State contribution to the System |
21 | | for the next fiscal year, along with all of the actuarial |
22 | | assumptions, calculations, and data upon which that proposed |
23 | | certification is based. On or before January 1 of each year , |
24 | | beginning January 1, 2013, the State Actuary shall issue a |
25 | | preliminary report concerning the proposed certification and |
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1 | | identifying, if necessary, recommended changes in actuarial |
2 | | assumptions that the Board must consider before finalizing its |
3 | | certification of the required State contributions. |
4 | | On or before January 15, 2013 and every January 15 |
5 | | thereafter, the Board shall certify to the Governor and the |
6 | | General Assembly the amount of the required State contribution |
7 | | for the next fiscal year. The Board's certification shall |
8 | | include a copy of the actuarial recommendations upon which it |
9 | | is based and shall specifically identify the System's projected |
10 | | State normal cost for that fiscal year. The Board's |
11 | | certification must note any deviations from the State Actuary's |
12 | | recommended changes, the reason or reasons for not following |
13 | | the State Actuary's recommended changes, and the fiscal impact |
14 | | of not following the State Actuary's recommended changes on the |
15 | | required State contribution. |
16 | | (a-7) On or before May 1, 2004, the Board shall recalculate |
17 | | and recertify to
the Governor the amount of the required State |
18 | | contribution to the System for
State fiscal year 2005, taking |
19 | | into account the amounts appropriated to and
received by the |
20 | | System under subsection (d) of Section 7.2 of the General
|
21 | | Obligation Bond Act.
|
22 | | On or before July 1, 2005, the Board shall recalculate and |
23 | | recertify
to the Governor the amount of the required State
|
24 | | contribution to the System for State fiscal year 2006, taking |
25 | | into account the changes in required State contributions made |
26 | | by this amendatory Act of the 94th General Assembly.
|
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1 | | On or before April 1, 2011, the Board shall recalculate and |
2 | | recertify to the Governor the amount of the required State |
3 | | contribution to the System for State fiscal year 2011, applying |
4 | | the changes made by Public Act 96-889 to the System's assets |
5 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
6 | | was approved on that date. |
7 | | (b) Beginning in State fiscal year 1996, on or as soon as |
8 | | possible after the
15th day of each month the Board shall |
9 | | submit vouchers for payment of State
contributions to the |
10 | | System, in a total monthly amount of one-twelfth of the
|
11 | | required annual State contribution certified under subsection |
12 | | (a).
From the effective date of this amendatory Act
of the 93rd |
13 | | General Assembly through June 30, 2004, the Board shall not
|
14 | | submit vouchers for the remainder of fiscal year 2004 in excess |
15 | | of the
fiscal year 2004 certified contribution amount |
16 | | determined
under this Section after taking into consideration |
17 | | the transfer to the
System under subsection (d) of Section |
18 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
19 | | the State Comptroller and Treasurer by warrants drawn
on the |
20 | | funds appropriated to the System for that fiscal year. If in |
21 | | any month
the amount remaining unexpended from all other |
22 | | appropriations to the System for
the applicable fiscal year |
23 | | (including the appropriations to the System under
Section 8.12 |
24 | | of the State Finance Act and Section 1 of the State Pension |
25 | | Funds
Continuing Appropriation Act) is less than the amount |
26 | | lawfully vouchered under
this Section, the difference shall be |
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1 | | paid from the General Revenue Fund under
the continuing |
2 | | appropriation authority provided in Section 1.1 of the State
|
3 | | Pension Funds Continuing Appropriation Act.
|
4 | | (c) The full amount of any annual appropriation for the |
5 | | System for
State fiscal year 1995 shall be transferred and made |
6 | | available to the System
at the beginning of that fiscal year at |
7 | | the request of the Board.
Any excess funds remaining at the end |
8 | | of any fiscal year from appropriations
shall be retained by the |
9 | | System as a general reserve to meet the System's
accrued |
10 | | liabilities.
|
11 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
12 | | 97-694, eff. 6-18-12.)
|
13 | | (40 ILCS 5/2-162)
|
14 | | Sec. 2-162. Application and expiration of new benefit |
15 | | increases. |
16 | | (a) As used in this Section, "new benefit increase" means |
17 | | an increase in the amount of any benefit provided under this |
18 | | Article, or an expansion of the conditions of eligibility for |
19 | | any benefit under this Article, that results from an amendment |
20 | | to this Code that takes effect after the effective date of this |
21 | | amendatory Act of the 94th General Assembly. "New benefit |
22 | | increase", however, does not include any benefit increase |
23 | | resulting from the changes made to this Article by this |
24 | | amendatory Act of the 98th General Assembly. |
25 | | (b) Notwithstanding any other provision of this Code or any |
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1 | | subsequent amendment to this Code, every new benefit increase |
2 | | is subject to this Section and shall be deemed to be granted |
3 | | only in conformance with and contingent upon compliance with |
4 | | the provisions of this Section.
|
5 | | (c) The Public Act enacting a new benefit increase must |
6 | | identify and provide for payment to the System of additional |
7 | | funding at least sufficient to fund the resulting annual |
8 | | increase in cost to the System as it accrues. |
9 | | Every new benefit increase is contingent upon the General |
10 | | Assembly providing the additional funding required under this |
11 | | subsection. The Commission on Government Forecasting and |
12 | | Accountability shall analyze whether adequate additional |
13 | | funding has been provided for the new benefit increase and |
14 | | shall report its analysis to the Public Pension Division of the |
15 | | Department of Financial and Professional Regulation. A new |
16 | | benefit increase created by a Public Act that does not include |
17 | | the additional funding required under this subsection is null |
18 | | and void. If the Public Pension Division determines that the |
19 | | additional funding provided for a new benefit increase under |
20 | | this subsection is or has become inadequate, it may so certify |
21 | | to the Governor and the State Comptroller and, in the absence |
22 | | of corrective action by the General Assembly, the new benefit |
23 | | increase shall expire at the end of the fiscal year in which |
24 | | the certification is made.
|
25 | | (d) Every new benefit increase shall expire 5 years after |
26 | | its effective date or on such earlier date as may be specified |
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1 | | in the language enacting the new benefit increase or provided |
2 | | under subsection (c). This does not prevent the General |
3 | | Assembly from extending or re-creating a new benefit increase |
4 | | by law. |
5 | | (e) Except as otherwise provided in the language creating |
6 | | the new benefit increase, a new benefit increase that expires |
7 | | under this Section continues to apply to persons who applied |
8 | | and qualified for the affected benefit while the new benefit |
9 | | increase was in effect and to the affected beneficiaries and |
10 | | alternate payees of such persons, but does not apply to any |
11 | | other person, including without limitation a person who |
12 | | continues in service after the expiration date and did not |
13 | | apply and qualify for the affected benefit while the new |
14 | | benefit increase was in effect.
|
15 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
16 | | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
|
17 | | Sec. 7-109. Employee.
|
18 | | (1) "Employee" means any person who:
|
19 | | (a) 1. Receives earnings as payment for the performance |
20 | | of personal
services or official duties out of the |
21 | | general fund of a municipality,
or out of any special |
22 | | fund or funds controlled by a municipality, or by
an |
23 | | instrumentality thereof, or a participating |
24 | | instrumentality, including,
in counties, the fees or |
25 | | earnings of any county fee office; and
|
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1 | | 2. Under the usual common law rules applicable in |
2 | | determining the
employer-employee relationship, has |
3 | | the status of an employee with a
municipality, or any |
4 | | instrumentality thereof, or a participating
|
5 | | instrumentality, including aldermen, county |
6 | | supervisors and other
persons (excepting those |
7 | | employed as independent contractors) who are
paid |
8 | | compensation, fees, allowances or other emolument for |
9 | | official
duties, and, in counties, the several county |
10 | | fee offices.
|
11 | | (b) Serves as a township treasurer appointed under the |
12 | | School
Code, as heretofore or hereafter amended, and
who |
13 | | receives for such services regular compensation as |
14 | | distinguished
from per diem compensation, and any regular |
15 | | employee in the office of
any township treasurer whether or |
16 | | not his earnings are paid from the
income of the permanent |
17 | | township fund or from funds subject to
distribution to the |
18 | | several school districts and parts of school
districts as |
19 | | provided in the School Code, or from both such sources; or |
20 | | is the chief executive officer, chief educational officer, |
21 | | chief fiscal officer, or other employee of a Financial |
22 | | Oversight Panel established pursuant to Article 1H of the |
23 | | School Code, other than a superintendent or certified |
24 | | school business official, except that such person shall not |
25 | | be treated as an employee under this Section if that person |
26 | | has negotiated with the Financial Oversight Panel, in |
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1 | | conjunction with the school district, a contractual |
2 | | agreement for exclusion from this Section.
|
3 | | (c) Holds an elective office in a municipality, |
4 | | instrumentality
thereof or participating instrumentality.
|
5 | | (2) "Employee" does not include persons who:
|
6 | | (a) Are eligible for inclusion under any of the |
7 | | following laws:
|
8 | | 1. "An Act in relation to an Illinois State |
9 | | Teachers' Pension and
Retirement Fund", approved May |
10 | | 27, 1915, as amended;
|
11 | | 2. Articles 15 and 16 of this Code.
|
12 | | However, such persons shall be included as employees to |
13 | | the extent of
earnings that are not eligible for inclusion |
14 | | under the foregoing laws
for services not of an |
15 | | instructional nature of any kind.
|
16 | | However, any member of the armed forces who is employed |
17 | | as a teacher
of subjects in the Reserve Officers Training |
18 | | Corps of any school and who
is not certified under the law |
19 | | governing the certification of teachers
shall be included |
20 | | as an employee.
|
21 | | (b) Are designated by the governing body of a |
22 | | municipality in which a
pension fund is required by law to |
23 | | be established for policemen or
firemen, respectively, as |
24 | | performing police or fire protection duties,
except that |
25 | | when such persons are the heads of the police or fire
|
26 | | department and are not eligible to be included within any |
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1 | | such pension
fund, they shall be included within this |
2 | | Article; provided, that such
persons shall not be excluded |
3 | | to the extent of concurrent service and
earnings not |
4 | | designated as being for police or fire protection duties.
|
5 | | However, (i) any head of a police department who was a |
6 | | participant under this
Article immediately before October |
7 | | 1, 1977 and did not elect, under Section
3-109 of this Act, |
8 | | to participate in a police pension fund shall be an
|
9 | | "employee", and (ii) any chief of police who elects to |
10 | | participate in this
Fund under Section 3-109.1 of this |
11 | | Code, regardless of whether such person
continues to be |
12 | | employed as chief of police or is employed in some other
|
13 | | rank or capacity within the police department, shall be an |
14 | | employee under
this Article for so long as such person is |
15 | | employed to perform police
duties by a participating |
16 | | municipality and has not lawfully rescinded that
election. |
17 | | (c) After August 26, 2011 (the effective date of Public |
18 | | Act 97-609), are contributors to or eligible to contribute |
19 | | to a Taft-Hartley pension plan established on or before |
20 | | June 1, 2011 and are employees of a theatre, arena, or |
21 | | convention center that is located in a municipality located |
22 | | in a county with a population greater than 5,000,000, and |
23 | | to which the participating municipality is required to |
24 | | contribute as the person's employer based on earnings from |
25 | | the municipality. Nothing in this paragraph shall affect |
26 | | service credit or creditable service for any period of |
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1 | | service prior to August 26, 2011, and this paragraph shall |
2 | | not apply to individuals who are participating in the Fund |
3 | | prior to August 26, 2011.
|
4 | | (d) Become an employee of any of the following |
5 | | participating instrumentalities on or after the effective |
6 | | date of this amendatory Act of the 98th General Assembly: |
7 | | the Illinois Municipal League; the Illinois Association of |
8 | | Park Districts; the Illinois Supervisors, County |
9 | | Commissioners and Superintendents of Highways Association; |
10 | | an association, or not-for-profit corporation, membership |
11 | | in which is authorized under Section 85-15 of the Township |
12 | | Code; the United Counties Council; or the Will County |
13 | | 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
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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 | | 97-813, eff. 7-13-12.)
|
9 | | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
|
10 | | Sec. 14-103.10. Compensation.
|
11 | | (a) For periods of service prior to January 1, 1978, the |
12 | | full rate of salary
or wages payable to an employee for |
13 | | personal services performed if he worked
the full normal |
14 | | working period for his position, subject to the following
|
15 | | maximum amounts: (1) prior to July 1, 1951, $400 per month or |
16 | | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
17 | | inclusive, $625 per month or $7,500
per year; (3) beginning |
18 | | July 1, 1957, no limitation.
|
19 | | In the case of service of an employee in a position |
20 | | involving
part-time employment, compensation shall be |
21 | | determined according to the
employees' earnings record.
|
22 | | (b) For periods of service on and after January 1, 1978, |
23 | | all
remuneration for personal services performed defined as |
24 | | "wages" under
the Social Security Enabling Act, including that |
25 | | part of such
remuneration which is in excess of any maximum |
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1 | | limitation provided in
such Act, and including any benefits |
2 | | received by an employee under a sick
pay plan in effect before |
3 | | January 1, 1981, but excluding lump sum salary
payments:
|
4 | | (1) for vacation,
|
5 | | (2) for accumulated unused sick leave,
|
6 | | (3) upon discharge or dismissal,
|
7 | | (4) for approved holidays.
|
8 | | (c) For periods of service on or after December 16, 1978, |
9 | | compensation
also includes any benefits, other than lump sum |
10 | | salary payments made at
termination of employment, which an |
11 | | employee receives or is eligible to
receive under a sick pay |
12 | | plan authorized by law.
|
13 | | (d) For periods of service after September 30, 1985, |
14 | | compensation also
includes any remuneration for personal |
15 | | services not included as "wages"
under the Social Security |
16 | | Enabling Act, which is deducted for purposes of
participation |
17 | | in a program established pursuant to Section 125 of the
|
18 | | Internal Revenue Code or its successor laws.
|
19 | | (e) For members for which Section 1-160 applies for periods |
20 | | of service on and after January 1, 2011, all remuneration for |
21 | | personal services performed defined as "wages" under the Social |
22 | | Security Enabling Act, excluding remuneration that is in excess |
23 | | of the annual earnings, salary, or wages of a member or |
24 | | participant, as provided in subsection (b-5) of Section 1-160, |
25 | | but including any benefits received by an employee under a sick |
26 | | pay plan in effect before January 1, 1981.
Compensation shall |
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1 | | exclude lump sum salary payments: |
2 | | (1) for vacation; |
3 | | (2) for accumulated unused sick leave; |
4 | | (3) upon discharge or dismissal; and |
5 | | (4) for approved holidays. |
6 | | (f) Notwithstanding any other provision of this Code, the |
7 | | compensation of a Tier I member for the purposes of this Code |
8 | | shall not exceed, for periods of service on or after the |
9 | | effective date of this amendatory Act of the 98th General |
10 | | Assembly, the greater of (i) the annual contribution and |
11 | | benefit base established for the applicable year by the |
12 | | Commissioner of Social Security under the federal Social |
13 | | Security Act or (ii) the annual compensation of the member |
14 | | during the 365 days immediately preceding the effective date of |
15 | | this Section; except that this limitation does not apply to a |
16 | | member's compensation that is determined under an employment |
17 | | contract or collective bargaining agreement that is in effect |
18 | | on the effective date of this amendatory Act of the 98th |
19 | | General Assembly and has not been amended or renewed after that |
20 | | date. |
21 | | (g) Notwithstanding the other provisions of this Section, |
22 | | for an employee who first becomes a participant on or after the |
23 | | effective date of this amendatory Act of the 98th General |
24 | | Assembly, "compensation" does not include any payments or |
25 | | reimbursements for travel vouchers. |
26 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
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1 | | (40 ILCS 5/14-103.40 new) |
2 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of |
3 | | this System who first became a member or participant before |
4 | | January 1, 2011 under any reciprocal retirement system or |
5 | | pension fund established under this Code other than a |
6 | | retirement system or pension fund established under Article 2, |
7 | | 3, 4, 5, 6, or 18 of this Code. |
8 | | (40 ILCS 5/14-103.41 new) |
9 | | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former |
10 | | Tier I member who is receiving a retirement annuity.
|
11 | | (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
|
12 | | Sec. 14-106. Membership service credit.
|
13 | | (a) After January 1, 1944, all
service of a member since he |
14 | | last became a member with respect to which
contributions are |
15 | | made shall count as membership service; provided, that
for |
16 | | service on and after July 1, 1950, 12 months of service shall
|
17 | | constitute a year of membership service, the completion of 15 |
18 | | days or
more of service during any month shall constitute 1 |
19 | | month of membership
service, 8 to 15 days shall constitute 1/2 |
20 | | month of membership service
and less than 8 days shall |
21 | | constitute 1/4 month of membership service.
The payroll record |
22 | | of each department shall constitute conclusive
evidence of the |
23 | | record of service rendered by a member.
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1 | | (b) For a member who is employed and paid on an |
2 | | academic-year basis
rather than on a 12-month annual basis, |
3 | | employment for a full academic year
shall constitute a full |
4 | | year of membership service, except that the member
shall not |
5 | | receive more than one year of membership service credit (plus |
6 | | any
additional service credit granted for unused sick leave) |
7 | | for service during
any 12-month period. This subsection (b) |
8 | | applies to all such service for which
the member has not begun |
9 | | to receive a retirement annuity before January 1,
2001.
|
10 | | (c) A member who first participated in this System before |
11 | | the effective date of this amendatory Act of the 98th General |
12 | | Assembly shall be entitled to additional service credit, under
|
13 | | rules prescribed by the Board, for accumulated unused sick |
14 | | leave credited
to his account in the last Department on the |
15 | | date of withdrawal from
service or for any period for which he |
16 | | would have been eligible to receive
benefits under a sick pay |
17 | | plan authorized by law, if he had suffered a
sickness or |
18 | | accident on the date of withdrawal from service. It shall be |
19 | | the
responsibility of the last Department to certify to the |
20 | | Board the length of
time salary or benefits would have been |
21 | | paid to the member based upon the
accumulated unused sick leave |
22 | | or the applicable sick pay plan if he had
become entitled |
23 | | thereto because of sickness on the date that his status as
an |
24 | | employee terminated. This period of service credit granted |
25 | | under this
paragraph shall not be considered in determining the |
26 | | date the retirement
annuity is to begin, or final average |
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1 | | compensation.
|
2 | | Service credit is not available for unused sick leave |
3 | | accumulated by a person who first participates in this System |
4 | | on or after the effective date of this amendatory Act of the |
5 | | 98th General Assembly. |
6 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
7 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
|
8 | | Sec. 14-114. Automatic increase in retirement annuity.
|
9 | | (a) Except as provided in subsections (a-1) and (a-2), any |
10 | | Any person receiving a retirement annuity under this Article |
11 | | who
retires having attained age 60, or who retires before age |
12 | | 60 having at
least 35 years of creditable service, or who |
13 | | retires on or after January
1, 2001 at an age which, when added |
14 | | to the number of years of his or her
creditable service, equals |
15 | | at least 85, shall, on January 1 next
following the first full |
16 | | year of retirement, have the amount of the then fixed
and |
17 | | payable monthly retirement annuity increased 3%. Any person |
18 | | receiving a
retirement annuity under this Article who retires |
19 | | before attainment of age 60
and with less than (i) 35 years of |
20 | | creditable service if retirement
is before January 1, 2001, or |
21 | | (ii) the number of years of creditable service
which, when |
22 | | added to the member's age, would equal 85, if retirement is on
|
23 | | or after January 1, 2001, shall have the amount of the fixed |
24 | | and payable
retirement annuity increased by 3% on the January 1 |
25 | | occurring on or next
following (1) attainment of age 60, or (2) |
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1 | | the first anniversary of retirement,
whichever occurs later. |
2 | | However, for persons who receive the alternative
retirement |
3 | | annuity under Section 14-110, references in this subsection (a) |
4 | | to
attainment of age 60 shall be deemed to refer to attainment |
5 | | of age 55. For a
person receiving early retirement incentives |
6 | | under Section 14-108.3 whose
retirement annuity began after |
7 | | January 1, 1992 pursuant to an extension granted
under |
8 | | subsection (e) of that Section, the first anniversary of |
9 | | retirement shall
be deemed to be January 1, 1993.
For a person |
10 | | who retires on or after June 28, 2001 and on or before October |
11 | | 1, 2001,
and whose retirement annuity is calculated, in whole |
12 | | or in part, under Section
14-110 or subsection (g) or (h) of |
13 | | Section 14-108, the first anniversary of
retirement shall be |
14 | | deemed to be January 1, 2002.
|
15 | | On each January 1 following the date of the initial |
16 | | increase under this
subsection, the employee's monthly |
17 | | retirement annuity shall be increased
by an additional 3%.
|
18 | | Beginning January 1, 1990 and except as provided in |
19 | | subsections (a-1) and (a-2) , all automatic annual increases |
20 | | payable under
this Section shall be calculated as a percentage |
21 | | of the total annuity
payable at the time of the increase, |
22 | | including previous increases granted
under this Article.
|
23 | | (a-1) Notwithstanding any other provision of this Article, |
24 | | for a Tier I retiree, the amount of each automatic increase in |
25 | | retirement annuity occurring on or after the effective date of |
26 | | this amendatory Act of the 98th General Assembly shall be the |
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1 | | lesser of (i) $600 ($750 if the annuity is based primarily upon |
2 | | service as a noncovered employee) or (ii) 3% of the total |
3 | | annuity
payable at the time of the increase, including previous |
4 | | increases granted. |
5 | | (a-2) Notwithstanding any other provision of this Article, |
6 | | the System shall not grant any new or additional automatic |
7 | | increase in retirement annuity to a Tier I retiree on or after |
8 | | the effective date of this amendatory Act of the 98th General |
9 | | Assembly and before January 1, 2017. |
10 | | Notwithstanding any other provision of this Article, the |
11 | | System shall not grant any new or additional automatic increase |
12 | | in retirement annuity to a Tier I retiree who has not yet |
13 | | attained the age of 67, regardless of any age augmentation |
14 | | granted under this Article as an early retirement incentive. |
15 | | If on the effective date of this amendatory Act of the 98th |
16 | | General Assembly a Tier I retiree has already received an |
17 | | annual increase under this Section but does not yet meet the |
18 | | new eligibility requirements of this subsection, the annual |
19 | | increases already received shall continue in force, but no |
20 | | additional annual increase shall be granted until the Tier I |
21 | | retiree meets the new eligibility requirements. |
22 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
23 | | and (a-2) apply without regard to whether or not the Tier I |
24 | | retiree is in active service under this Article on or after the |
25 | | effective date of this amendatory Act of the 98th General |
26 | | Assembly. |
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1 | | (b) The provisions of subsection (a) of this Section shall |
2 | | be
applicable to an employee only if the employee makes the |
3 | | additional
contributions required after December 31, 1969 for |
4 | | the purpose of the
automatic increases for not less than the |
5 | | equivalent of one full year.
If an employee becomes an |
6 | | annuitant before his additional contributions
equal one full |
7 | | year's contributions based on his salary at the date of
|
8 | | retirement, the employee may pay the necessary balance of the
|
9 | | contributions to the system, without interest, and be eligible |
10 | | for the
increasing annuity authorized by this Section.
|
11 | | (c) The provisions of subsection (a) of this Section shall |
12 | | not be
applicable to any annuitant who is on retirement on |
13 | | December 31, 1969, and
thereafter returns to State service, |
14 | | unless the member has established at
least one year of |
15 | | additional creditable service following reentry into service.
|
16 | | (d) In addition to other increases which may be provided by |
17 | | this Section,
on January 1, 1981 any annuitant who was |
18 | | receiving a retirement annuity
on or before January 1, 1971 |
19 | | shall have his retirement annuity then being
paid increased $1 |
20 | | per month for each year of creditable service. On January
1, |
21 | | 1982, any annuitant who began receiving a retirement annuity on |
22 | | or
before January 1, 1977, shall have his retirement annuity |
23 | | then being paid
increased $1 per month for each year of |
24 | | creditable service.
|
25 | | On January 1, 1987, any annuitant who began receiving a |
26 | | retirement
annuity on or before January 1, 1977, shall have the |
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1 | | monthly retirement annuity
increased by an amount equal to 8¢ |
2 | | per year of creditable service times the
number of years that |
3 | | have elapsed since the annuity began.
|
4 | | (e) Every person who receives the alternative retirement |
5 | | annuity under
Section 14-110 and who is eligible to receive the |
6 | | 3% increase under subsection
(a) on January 1, 1986, shall also |
7 | | receive on that date a one-time increase
in retirement annuity |
8 | | equal to the difference between (1) his actual
retirement |
9 | | annuity on that date, including any increases received under
|
10 | | subsection (a), and (2) the amount of retirement annuity he |
11 | | would have
received on that date if the amendments to |
12 | | subsection (a) made by Public
Act 84-162 had been in effect |
13 | | since the date of his retirement.
|
14 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
|
15 | | 92-651, eff. 7-11-02.)
|
16 | | (40 ILCS 5/14-131)
|
17 | | Sec. 14-131. Contributions by State.
|
18 | | (a) The State shall make contributions to the System by |
19 | | appropriations of
amounts which, together with other employer |
20 | | contributions from trust, federal,
and other funds, employee |
21 | | contributions, investment income, and other income,
will be |
22 | | sufficient to meet the cost of maintaining and administering |
23 | | the System
on a 100% 90% funded basis in accordance with |
24 | | actuarial recommendations by the end of State fiscal year 2043 .
|
25 | | For the purposes of this Section and Section 14-135.08, |
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1 | | references to State
contributions refer only to employer |
2 | | contributions and do not include employee
contributions that |
3 | | are picked up or otherwise paid by the State or a
department on |
4 | | behalf of the employee.
|
5 | | (b) The Board shall determine the total amount of State |
6 | | contributions
required for each fiscal year on the basis of the |
7 | | actuarial tables and other
assumptions adopted by the Board, |
8 | | using the formula in subsection (e).
|
9 | | The Board shall also determine a State contribution rate |
10 | | for each fiscal
year, expressed as a percentage of payroll, |
11 | | based on the total required State
contribution for that fiscal |
12 | | year (less the amount received by the System from
|
13 | | appropriations under Section 8.12 of the State Finance Act and |
14 | | Section 1 of the
State Pension Funds Continuing Appropriation |
15 | | Act, if any, for the fiscal year
ending on the June 30 |
16 | | immediately preceding the applicable November 15
certification |
17 | | deadline), the estimated payroll (including all forms of
|
18 | | compensation) for personal services rendered by eligible |
19 | | employees, and the
recommendations of the actuary.
|
20 | | For the purposes of this Section and Section 14.1 of the |
21 | | State Finance Act,
the term "eligible employees" includes |
22 | | employees who participate in the System,
persons who may elect |
23 | | to participate in the System but have not so elected,
persons |
24 | | who are serving a qualifying period that is required for |
25 | | participation,
and annuitants employed by a department as |
26 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
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1 | | (c) Contributions shall be made by the several departments |
2 | | for each pay
period by warrants drawn by the State Comptroller |
3 | | against their respective
funds or appropriations based upon |
4 | | vouchers stating the amount to be so
contributed. These amounts |
5 | | shall be based on the full rate certified by the
Board under |
6 | | Section 14-135.08 for that fiscal year.
From the effective date |
7 | | of this amendatory Act of the 93rd General
Assembly through the |
8 | | payment of the final payroll from fiscal year 2004
|
9 | | appropriations, the several departments shall not make |
10 | | contributions
for the remainder of fiscal year 2004 but shall |
11 | | instead make payments
as required under subsection (a-1) of |
12 | | Section 14.1 of the State Finance Act.
The several departments |
13 | | shall resume those contributions at the commencement of
fiscal |
14 | | year 2005.
|
15 | | (c-1) Notwithstanding subsection (c) of this Section, for |
16 | | fiscal years 2010, 2012, and 2013 only, contributions by the |
17 | | several departments are not required to be made for General |
18 | | Revenue Funds payrolls processed by the Comptroller. Payrolls |
19 | | paid by the several departments from all other State funds must |
20 | | continue to be processed pursuant to subsection (c) of this |
21 | | Section. |
22 | | (c-2) For State fiscal years 2010, 2012, and 2013 only, on |
23 | | or as soon as possible after the 15th day of each month, the |
24 | | Board shall submit vouchers for payment of State contributions |
25 | | to the System, in a total monthly amount of one-twelfth of the |
26 | | fiscal year General Revenue Fund contribution as certified by |
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1 | | the System pursuant to Section 14-135.08 of the Illinois |
2 | | Pension Code. |
3 | | (d) If an employee is paid from trust funds or federal |
4 | | funds, the
department or other employer shall pay employer |
5 | | contributions from those funds
to the System at the certified |
6 | | rate, unless the terms of the trust or the
federal-State |
7 | | agreement preclude the use of the funds for that purpose, in
|
8 | | which case the required employer contributions shall be paid by |
9 | | the State.
From the effective date of this amendatory
Act of |
10 | | the 93rd General Assembly through the payment of the final
|
11 | | payroll from fiscal year 2004 appropriations, the department or |
12 | | other
employer shall not pay contributions for the remainder of |
13 | | fiscal year
2004 but shall instead make payments as required |
14 | | under subsection (a-1) of
Section 14.1 of the State Finance |
15 | | Act. The department or other employer shall
resume payment of
|
16 | | contributions at the commencement of fiscal year 2005.
|
17 | | (e) For State fiscal years 2014 through 2043, the minimum |
18 | | contribution
to the System to be made by the State for each |
19 | | fiscal year shall be an amount
determined by the System to be |
20 | | equal to the sum of (1) the State's portion of the projected |
21 | | normal cost for that fiscal year, plus (2) an amount sufficient |
22 | | to bring the total assets of the
System up to 100% of the total |
23 | | actuarial liabilities of the System by the end of
State fiscal |
24 | | year 2043. In making these determinations, the required State
|
25 | | contribution shall be calculated each year as a level |
26 | | percentage of payroll
over the years remaining to and including |
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1 | | fiscal year 2043 and shall be
determined under the projected |
2 | | unit credit actuarial cost method. |
3 | | For State fiscal years 2012 and 2013 through 2045 , the minimum |
4 | | contribution
to the System to be made by the State for each |
5 | | fiscal year shall be an amount
determined by the System to be |
6 | | sufficient to bring the total assets of the
System up to 90% of |
7 | | the total actuarial liabilities of the System by the end
of |
8 | | State fiscal year 2045. In making these determinations, the |
9 | | required State
contribution shall be calculated each year as a |
10 | | level percentage of payroll
over the years remaining to and |
11 | | including fiscal year 2045 and shall be
determined under the |
12 | | projected 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; except that
(i) for State |
18 | | fiscal year 1998, for all purposes of this Code and any other
|
19 | | law of this State, the certified percentage of the applicable |
20 | | employee payroll
shall be 5.052% for employees earning eligible |
21 | | creditable service under Section
14-110 and 6.500% for all |
22 | | other employees, notwithstanding any contrary
certification |
23 | | made under Section 14-135.08 before the effective date of this
|
24 | | amendatory Act of 1997, and (ii)
in the following specified |
25 | | State fiscal years, the State contribution to
the System shall |
26 | | not be less than the following indicated percentages of the
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1 | | applicable employee payroll, even if the indicated percentage |
2 | | will produce a
State contribution in excess of the amount |
3 | | otherwise required under this
subsection and subsection (a):
|
4 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
5 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
6 | | Notwithstanding any other provision of this Article, the |
7 | | total required State
contribution to the System for State |
8 | | fiscal year 2006 is $203,783,900.
|
9 | | Notwithstanding any other provision of this Article, the |
10 | | total required State
contribution to the System for State |
11 | | fiscal year 2007 is $344,164,400.
|
12 | | For each of State fiscal years 2008 through 2009, the State |
13 | | contribution to
the System, as a percentage of the applicable |
14 | | employee payroll, shall be
increased in equal annual increments |
15 | | from the required State contribution for State fiscal year |
16 | | 2007, so that by State fiscal year 2011, the
State is |
17 | | contributing at the rate otherwise required under this Section.
|
18 | | Notwithstanding any other provision of this Article, the |
19 | | total required State General Revenue Fund contribution for |
20 | | State fiscal year 2010 is $723,703,100 and shall be made from |
21 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
22 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
23 | | pro rata share of bond sale expenses determined by the System's |
24 | | share of total bond proceeds, (ii) any amounts received from |
25 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
26 | | reduction in bond proceeds due to the issuance of discounted |
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1 | | bonds, if applicable. |
2 | | Notwithstanding any other provision of this Article, the
|
3 | | total required State General Revenue Fund contribution for
|
4 | | State fiscal year 2011 is the amount recertified by the System |
5 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
6 | | shall be made from
the proceeds of bonds sold in fiscal year |
7 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
8 | | Act, less (i) the
pro rata share of bond sale expenses |
9 | | determined by the System's
share of total bond proceeds, (ii) |
10 | | any amounts received from
the General Revenue Fund in fiscal |
11 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
12 | | issuance of discounted
bonds, if applicable. |
13 | | Beginning in State fiscal year 2044, the minimum State |
14 | | contribution for each fiscal year shall be the amount needed to |
15 | | maintain the total assets of the System at 100% of the total |
16 | | actuarial liabilities of the System. |
17 | | Beginning in State fiscal year 2046, the minimum State |
18 | | contribution for
each fiscal year shall be the amount needed to |
19 | | maintain the total assets of
the System at 90% of the total |
20 | | actuarial liabilities of the System.
|
21 | | Amounts received by the System pursuant to Section 25 of |
22 | | the Budget Stabilization Act or Section 8.12 of the State |
23 | | Finance Act in any fiscal year do not reduce and do not |
24 | | constitute payment of any portion of the minimum State |
25 | | contribution required under this Article in that fiscal year. |
26 | | Such amounts shall not reduce, and shall not be included in the |
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1 | | calculation of, the required State contributions under this |
2 | | Article in any future year until the System has reached a |
3 | | funding ratio of at least 100% 90% . A reference in this Article |
4 | | to the "required State contribution" or any substantially |
5 | | similar term does not include or apply to any amounts payable |
6 | | to the System under Section 25 of the Budget Stabilization Act.
|
7 | | Notwithstanding any other provision of this Code or the |
8 | | Budget Stabilization Act, amounts transferred to the System |
9 | | pursuant to the Budget Stabilization Act after the effective |
10 | | date of this amendatory Act of the 98th General Assembly do not |
11 | | reduce and do not constitute payment of any portion of the |
12 | | required State contribution under this Article in that fiscal |
13 | | year. Such amounts shall not reduce, and shall not be included |
14 | | in the calculation of, the required State contributions under |
15 | | this Article in any future year until the System has received |
16 | | payment of contributions pursuant to the Budget Stabilization |
17 | | Act. |
18 | | Notwithstanding any other provision of this Section, the |
19 | | required State
contribution for State fiscal year 2005 and for |
20 | | fiscal year 2008 and each fiscal year thereafter through State |
21 | | fiscal year 2013 , as
calculated under this Section and
|
22 | | certified under Section 14-135.08, shall not exceed an amount |
23 | | equal to (i) the
amount of the required State contribution that |
24 | | would have been calculated under
this Section for that fiscal |
25 | | year if the System had not received any payments
under |
26 | | subsection (d) of Section 7.2 of the General Obligation Bond |
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1 | | Act, minus
(ii) the portion of the State's total debt service |
2 | | payments for that fiscal
year on the bonds issued in fiscal |
3 | | year 2003 for the purposes of that Section 7.2, as determined
|
4 | | and certified by the Comptroller, that is the same as the |
5 | | System's portion of
the total moneys distributed under |
6 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
7 | | Act. In determining this maximum for State fiscal years 2008 |
8 | | through 2010, however, the amount referred to in item (i) shall |
9 | | be increased, as a percentage of the applicable employee |
10 | | payroll, in equal increments calculated from the sum of the |
11 | | required State contribution for State fiscal year 2007 plus the |
12 | | applicable portion of the State's total debt service payments |
13 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
14 | | for the purposes of Section 7.2 of the General
Obligation Bond |
15 | | Act, so that, by State fiscal year 2011, the
State is |
16 | | contributing at the rate otherwise required under this Section.
|
17 | | (f) After the submission of all payments for eligible |
18 | | employees
from personal services line items in fiscal year 2004 |
19 | | have been made,
the Comptroller shall provide to the System a |
20 | | certification of the sum
of all fiscal year 2004 expenditures |
21 | | for personal services that would
have been covered by payments |
22 | | to the System under this Section if the
provisions of this |
23 | | amendatory Act of the 93rd General Assembly had not been
|
24 | | enacted. Upon
receipt of the certification, the System shall |
25 | | determine the amount
due to the System based on the full rate |
26 | | certified by the Board under
Section 14-135.08 for fiscal year |
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1 | | 2004 in order to meet the State's
obligation under this |
2 | | Section. The System shall compare this amount
due to the amount |
3 | | received by the System in fiscal year 2004 through
payments |
4 | | under this Section and under Section 6z-61 of the State Finance |
5 | | Act.
If the amount
due is more than the amount received, the |
6 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
7 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
8 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
9 | | Continuing Appropriation Act. If the amount due is less than |
10 | | the
amount received, the
difference shall be termed the "Fiscal |
11 | | Year 2004 Overpayment" for purposes of
this Section, and the |
12 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
13 | | the Pension Contribution Fund as soon as practicable
after the |
14 | | certification.
|
15 | | (g) For purposes of determining the required State |
16 | | contribution to the System, the value of the System's assets |
17 | | shall be equal to the actuarial value of the System's assets, |
18 | | which shall be calculated as follows: |
19 | | As of June 30, 2008, the actuarial value of the System's |
20 | | assets shall be equal to the market value of the assets as of |
21 | | that date. In determining the actuarial value of the System's |
22 | | assets for fiscal years after June 30, 2008, any actuarial |
23 | | gains or losses from investment return incurred in a fiscal |
24 | | year shall be recognized in equal annual amounts over the |
25 | | 5-year period following that fiscal year. |
26 | | (h) For purposes of determining the required State |
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1 | | contribution to the System for a particular year, the actuarial |
2 | | value of assets shall be assumed to earn a rate of return equal |
3 | | to the System's actuarially assumed rate of return. |
4 | | (i) After the submission of all payments for eligible |
5 | | employees from personal services line items paid from the |
6 | | General Revenue Fund in fiscal year 2010 have been made, the |
7 | | Comptroller shall provide to the System a certification of the |
8 | | sum of all fiscal year 2010 expenditures for personal services |
9 | | that would have been covered by payments to the System under |
10 | | this Section if the provisions of this amendatory Act of the |
11 | | 96th General Assembly had not been enacted. Upon receipt of the |
12 | | certification, the System shall determine the amount due to the |
13 | | System based on the full rate certified by the Board under |
14 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
15 | | State's obligation under this Section. The System shall compare |
16 | | this amount due to the amount received by the System in fiscal |
17 | | year 2010 through payments under this Section. If the amount |
18 | | due is more than the amount received, the difference shall be |
19 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
20 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
21 | | under Section 1.2 of the State Pension Funds Continuing |
22 | | Appropriation Act. If the amount due is less than the amount |
23 | | received, the difference shall be termed the "Fiscal Year 2010 |
24 | | Overpayment" for purposes of this Section, and the Fiscal Year |
25 | | 2010 Overpayment shall be repaid by the System to the General |
26 | | Revenue Fund as soon as practicable after the certification. |
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1 | | (j) After the submission of all payments for eligible |
2 | | employees from personal services line items paid from the |
3 | | General Revenue Fund in fiscal year 2011 have been made, the |
4 | | Comptroller shall provide to the System a certification of the |
5 | | sum of all fiscal year 2011 expenditures for personal services |
6 | | that would have been covered by payments to the System under |
7 | | this Section if the provisions of this amendatory Act of the |
8 | | 96th General Assembly had not been enacted. Upon receipt of the |
9 | | certification, the System shall determine the amount due to the |
10 | | System based on the full rate certified by the Board under |
11 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
12 | | State's obligation under this Section. The System shall compare |
13 | | this amount due to the amount received by the System in fiscal |
14 | | year 2011 through payments under this Section. If the amount |
15 | | due is more than the amount received, the difference shall be |
16 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
17 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
18 | | under Section 1.2 of the State Pension Funds Continuing |
19 | | Appropriation Act. If the amount due is less than the amount |
20 | | received, the difference shall be termed the "Fiscal Year 2011 |
21 | | Overpayment" for purposes of this Section, and the Fiscal Year |
22 | | 2011 Overpayment shall be repaid by the System to the General |
23 | | Revenue Fund as soon as practicable after the certification. |
24 | | (k) For fiscal years 2012 and 2013 only, after the |
25 | | submission of all payments for eligible employees from personal |
26 | | services line items paid from the General Revenue Fund in the |
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1 | | fiscal year have been made, the Comptroller shall provide to |
2 | | the System a certification of the sum of all expenditures in |
3 | | the fiscal year for personal services. Upon receipt of the |
4 | | certification, the System shall determine the amount due to the |
5 | | System based on the full rate certified by the Board under |
6 | | Section 14-135.08 for the fiscal year in order to meet the |
7 | | State's obligation under this Section. The System shall compare |
8 | | this amount due to the amount received by the System for the |
9 | | fiscal year. If the amount due is more than the amount |
10 | | received, the difference shall be termed the "Prior Fiscal Year |
11 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
12 | | Year Shortfall shall be satisfied under Section 1.2 of the |
13 | | State Pension Funds Continuing Appropriation Act. If the amount |
14 | | due is less than the amount received, the difference shall be |
15 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
16 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
17 | | by the System to the General Revenue Fund as soon as |
18 | | practicable after the certification. |
19 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; |
20 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. |
21 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, |
22 | | eff. 6-30-12.)
|
23 | | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
|
24 | | Sec. 14-132. Obligations of State ; funding guarantee . |
25 | | (a) The payment of the required department
contributions, |
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1 | | all allowances,
annuities, benefits granted under this |
2 | | Article, and all expenses of
administration of the system are |
3 | | obligations of the State of Illinois to
the extent specified in |
4 | | this Article.
|
5 | | (b) All income of the system
shall be credited to a |
6 | | separate account for this system in the State
treasury and |
7 | | shall be used to pay allowances, annuities, benefits and
|
8 | | administration expense.
|
9 | | (c) Beginning July 1, 2013, the State shall be |
10 | | contractually obligated to contribute to the System under |
11 | | Section 14-131 in each State fiscal year an amount not less |
12 | | than the sum of (i) the State's normal cost for that year and
|
13 | | (ii) the portion of the unfunded accrued liability assigned to |
14 | | that year by law in accordance with a schedule that distributes |
15 | | payments equitably over a reasonable period of time and in |
16 | | accordance with accepted actuarial practices. The obligations |
17 | | created under this subsection (c) are contractual obligations |
18 | | protected and enforceable under Article I, Section 16 and |
19 | | Article XIII, Section 5 of the Illinois Constitution. |
20 | | Notwithstanding any other provision of law, if the State |
21 | | fails to pay in a State fiscal year the amount guaranteed under |
22 | | this subsection, the System may bring a mandamus action in the |
23 | | Circuit Court of Sangamon County to compel the State to make |
24 | | that payment, irrespective of other remedies that
may be |
25 | | available to the System. In ordering the State to make the |
26 | | required payment, the court may order a reasonable payment |
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1 | | schedule to enable the State to make the required payment |
2 | | without significantly imperiling the public health, safety, or |
3 | | welfare. |
4 | | Any payments required to be made by the State pursuant to |
5 | | this subsection (c)
are expressly subordinated to the payment |
6 | | of the principal, interest, and premium, if any, on any
bonded |
7 | | debt obligation of the State or any other State-created entity, |
8 | | either currently outstanding or to
be issued, for which the |
9 | | source of repayment or security thereon is derived directly or |
10 | | indirectly from
tax revenues collected by the State or any |
11 | | other State-created entity. Payments on such bonded
|
12 | | obligations include any statutory fund transfers or other |
13 | | prefunding mechanisms or formulas set forth,
now or hereafter, |
14 | | in State law or bond indentures, into debt service funds or |
15 | | accounts of the State
related to such bonded obligations, |
16 | | consistent with the payment schedules associated with such
|
17 | | obligations. |
18 | | (Source: P.A. 80-841.)
|
19 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
20 | | Sec. 14-133. Contributions on behalf of members.
|
21 | | (a) Each participating employee shall make contributions |
22 | | to the System,
based on the employee's compensation, as |
23 | | follows:
|
24 | | (1) Covered employees, except as indicated below, 3.5% |
25 | | for
retirement annuity, and 0.5% for a widow or survivors
|
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1 | | annuity;
|
2 | | (2) Noncovered employees, except as indicated below, |
3 | | 7% for retirement
annuity and 1% for a widow or survivors |
4 | | annuity;
|
5 | | (3) Noncovered employees serving in a position in which |
6 | | "eligible
creditable service" as defined in Section 14-110 |
7 | | may be earned, 1% for a widow
or survivors annuity
plus the |
8 | | following amount for retirement annuity: 8.5% through |
9 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
10 | | in 2004 and thereafter;
|
11 | | (4) Covered employees serving in a position in which |
12 | | "eligible creditable
service" as defined in Section 14-110 |
13 | | may be earned, 0.5% for a widow or survivors annuity
plus |
14 | | the following amount for retirement annuity: 5% through |
15 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
16 | | and thereafter;
|
17 | | (5) Each security employee of the Department of |
18 | | Corrections
or of the Department of Human Services who is a |
19 | | covered employee, 0.5% for a widow or survivors annuity
|
20 | | plus the following amount for retirement annuity: 5% |
21 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
22 | | in 2004 and thereafter;
|
23 | | (6) Each security employee of the Department of |
24 | | Corrections
or of the Department of Human Services who is |
25 | | not a covered employee, 1% for a widow or survivors annuity
|
26 | | plus the following amount for retirement annuity: 8.5% |
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1 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
2 | | 11.5% in 2004 and thereafter.
|
3 | | (a-5) In addition to the contributions otherwise required |
4 | | under this Article, each Tier I member shall also make the |
5 | | following contributions for retirement annuity from each |
6 | | payment
of compensation: |
7 | | (1) beginning July 1, 2013 and through June 30, 2014, |
8 | | 1% of compensation; and |
9 | | (2) beginning on July 1, 2014, 2% of compensation. |
10 | | (b) Contributions shall be in the form of a deduction from
|
11 | | compensation and shall be made notwithstanding that the |
12 | | compensation
paid in cash to the employee shall be reduced |
13 | | thereby below the minimum
prescribed by law or regulation. Each |
14 | | member is deemed to consent and
agree to the deductions from |
15 | | compensation provided for in this Article,
and shall receipt in |
16 | | full for salary or compensation.
|
17 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
18 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
|
19 | | Sec. 14-135.08. To certify required State contributions. |
20 | | (a)
To certify to the Governor and to each department, on |
21 | | or before
November 15 of each year through until November 15, |
22 | | 2011, the required rate for State contributions to the
System |
23 | | for the next State fiscal year, as determined under subsection |
24 | | (b) of
Section 14-131. The certification to the Governor under |
25 | | this subsection (a) shall include a copy of the
actuarial |
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1 | | recommendations upon which the rate is based and shall |
2 | | specifically identify the System's projected State normal cost |
3 | | for that fiscal year .
|
4 | | (a-5) On or before November 1 of each year, beginning |
5 | | November 1, 2012, the Board shall submit to the State Actuary, |
6 | | the Governor, and the General Assembly a proposed certification |
7 | | of the amount of the required State contribution to the System |
8 | | for the next fiscal year, along with all of the actuarial |
9 | | assumptions, calculations, and data upon which that proposed |
10 | | certification is based. On or before January 1 of each year , |
11 | | beginning January 1, 2013, the State Actuary shall issue a |
12 | | preliminary report concerning the proposed certification and |
13 | | identifying, if necessary, recommended changes in actuarial |
14 | | assumptions that the Board must consider before finalizing its |
15 | | certification of the required State contributions. |
16 | | On or before January 15, 2013 and each January 15 |
17 | | thereafter, the Board shall certify to the Governor and the |
18 | | General Assembly the amount of the required State contribution |
19 | | for the next fiscal year. The certification shall include a |
20 | | copy of the actuarial
recommendations upon which it is based |
21 | | and shall specifically identify the System's projected State |
22 | | normal cost for that fiscal year. The Board's certification |
23 | | must note any deviations from the State Actuary's recommended |
24 | | changes, the reason or reasons for not following the State |
25 | | Actuary's recommended changes, and the fiscal impact of not |
26 | | following the State Actuary's recommended changes on the |
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1 | | required State contribution. |
2 | | (b) The certifications under subsections (a) and (a-5) |
3 | | shall include an additional amount necessary to pay all |
4 | | principal of and interest on those general obligation bonds due |
5 | | the next fiscal year authorized by Section 7.2(a) of the |
6 | | General Obligation Bond Act and issued to provide the proceeds |
7 | | deposited by the State with the System in July 2003, |
8 | | representing deposits other than amounts reserved under |
9 | | Section 7.2(c) of the General Obligation Bond Act. For State |
10 | | fiscal year 2005, the Board shall make a supplemental |
11 | | certification of the additional amount necessary to pay all |
12 | | principal of and interest on those general obligation bonds due |
13 | | in State fiscal years 2004 and 2005 authorized by Section |
14 | | 7.2(a) of the General Obligation Bond Act and issued to provide |
15 | | the proceeds deposited by the State with the System in July |
16 | | 2003, representing deposits other than amounts reserved under |
17 | | Section 7.2(c) of the General Obligation Bond Act, as soon as |
18 | | practical after the effective date of this amendatory Act of |
19 | | the 93rd General Assembly.
|
20 | | On or before May 1, 2004, the Board shall recalculate and |
21 | | recertify
to the Governor and to each department the amount of |
22 | | the required State
contribution to the System and the required |
23 | | rates for State contributions
to the System for State fiscal |
24 | | year 2005, taking into account the amounts
appropriated to and |
25 | | received by the System under subsection (d) of Section
7.2 of |
26 | | the General Obligation Bond Act.
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1 | | On or before July 1, 2005, 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 2006, taking into account the changes in required State |
6 | | contributions made by this amendatory Act of the 94th General |
7 | | Assembly.
|
8 | | On or before April 1, 2011, 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 for State fiscal |
11 | | year 2011, applying the changes made by Public Act 96-889 to |
12 | | the System's assets and liabilities as of June 30, 2009 as |
13 | | though Public Act 96-889 was approved on that date. |
14 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
15 | | 97-694, eff. 6-18-12.)
|
16 | | (40 ILCS 5/14-152.1)
|
17 | | Sec. 14-152.1. Application and expiration of new benefit |
18 | | increases. |
19 | | (a) As used in this Section, "new benefit increase" means |
20 | | an increase in the amount of any benefit provided under this |
21 | | Article, or an expansion of the conditions of eligibility for |
22 | | any benefit under this Article, that results from an amendment |
23 | | to this Code that takes effect after June 1, 2005 (the |
24 | | effective date of Public Act 94-4). "New benefit increase", |
25 | | however, does not include any benefit increase resulting from |
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1 | | the changes made to this Article by Public Act 96-37 or by this |
2 | | amendatory Act of the 98th 96th General Assembly.
|
3 | | (b) Notwithstanding any other provision of this Code or any |
4 | | subsequent amendment to this Code, every new benefit increase |
5 | | is subject to this Section and shall be deemed to be granted |
6 | | only in conformance with and contingent upon compliance with |
7 | | the provisions of this Section.
|
8 | | (c) The Public Act enacting a new benefit increase must |
9 | | identify and provide for payment to the System of additional |
10 | | funding at least sufficient to fund the resulting annual |
11 | | increase in cost to the System as it accrues. |
12 | | Every new benefit increase is contingent upon the General |
13 | | Assembly providing the additional funding required under this |
14 | | subsection. The Commission on Government Forecasting and |
15 | | Accountability shall analyze whether adequate additional |
16 | | funding has been provided for the new benefit increase and |
17 | | shall report its analysis to the Public Pension Division of the |
18 | | Department of Financial and Professional Regulation. A new |
19 | | benefit increase created by a Public Act that does not include |
20 | | the additional funding required under this subsection is null |
21 | | and void. If the Public Pension Division determines that the |
22 | | additional funding provided for a new benefit increase under |
23 | | this subsection is or has become inadequate, it may so certify |
24 | | to the Governor and the State Comptroller and, in the absence |
25 | | of corrective action by the General Assembly, the new benefit |
26 | | increase shall expire at the end of the fiscal year in which |
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1 | | the certification is made.
|
2 | | (d) Every new benefit increase shall expire 5 years after |
3 | | its effective date or on such earlier date as may be specified |
4 | | in the language enacting the new benefit increase or provided |
5 | | under subsection (c). This does not prevent the General |
6 | | Assembly from extending or re-creating a new benefit increase |
7 | | by law. |
8 | | (e) Except as otherwise provided in the language creating |
9 | | the new benefit increase, a new benefit increase that expires |
10 | | under this Section continues to apply to persons who applied |
11 | | and qualified for the affected benefit while the new benefit |
12 | | increase was in effect and to the affected beneficiaries and |
13 | | alternate payees of such persons, but does not apply to any |
14 | | other person, including without limitation a person who |
15 | | continues in service after the expiration date and did not |
16 | | apply and qualify for the affected benefit while the new |
17 | | benefit increase was in effect.
|
18 | | (Source: P.A. 96-37, eff. 7-13-09.)
|
19 | | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
|
20 | | Sec. 15-106. Employer. "Employer": The University of |
21 | | Illinois, Southern
Illinois University, Chicago State |
22 | | University, Eastern Illinois University,
Governors State |
23 | | University, Illinois State University, Northeastern Illinois
|
24 | | University, Northern Illinois University, Western Illinois |
25 | | University, the
State Board of Higher Education, the Illinois |
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1 | | Mathematics and Science Academy,
the University Civil Service |
2 | | Merit Board, the Board of
Trustees of the State Universities |
3 | | Retirement System, the Illinois Community
College Board, |
4 | | community college
boards, any association of community college |
5 | | boards organized under Section
3-55 of the Public Community |
6 | | College Act, the Board of Examiners established
under the |
7 | | Illinois Public Accounting Act, and, only during the period for |
8 | | which
employer contributions required under Section 15-155 are |
9 | | paid, the following
organizations: the alumni associations, |
10 | | the foundations and the athletic
associations which are |
11 | | affiliated with the universities and colleges included
in this |
12 | | Section as employers. An individual that begins employment |
13 | | after the effective date of this amendatory Act of the 98th |
14 | | General Assembly with an entity not defined as an employer in |
15 | | this Section shall not be deemed an employee for the purposes |
16 | | of this Article with respect to that employment and shall not |
17 | | be eligible to participate in the System with respect to that |
18 | | employment; provided, however, that those individuals who are |
19 | | both employed and already participants in the System on the |
20 | | effective date of this amendatory Act of the 98th General |
21 | | Assembly shall be allowed to continue as participants in the |
22 | | System for the duration of that employment. |
23 | | Notwithstanding any provision of law to the contrary, an |
24 | | individual who begins employment with any of the following |
25 | | employers on or after the effective date of this amendatory Act |
26 | | of the 98th General Assembly shall not be deemed an employee |
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1 | | and shall not be eligible to participate in the System with |
2 | | respect to that employment: any association of community |
3 | | college boards organized under Section
3-55 of the Public |
4 | | Community College Act, the Association of Illinois |
5 | | Middle-Grade Schools, the Illinois Association of School |
6 | | Administrators, the Illinois Association for Supervision and |
7 | | Curriculum Development, the Illinois Principals Association, |
8 | | the Illinois Association of School Business Officials, or the |
9 | | Illinois Special Olympics; provided, however, that those |
10 | | individuals who are both employed and already participants in |
11 | | the System on the effective date of this amendatory Act of the |
12 | | 98th General Assembly shall be allowed to continue as |
13 | | participants in the System for the duration of that employment. |
14 | | A department as defined in Section 14-103.04 is
an employer |
15 | | for any person appointed by the Governor under the Civil
|
16 | | Administrative Code of Illinois who is a participating employee |
17 | | as defined in
Section 15-109. The Department of Central |
18 | | Management Services is an employer with respect to persons |
19 | | employed by the State Board of Higher Education in positions |
20 | | with the Illinois Century Network as of June 30, 2004 who |
21 | | remain continuously employed after that date by the Department |
22 | | of Central Management Services in positions with the Illinois |
23 | | Century Network, the Bureau of Communication and Computer |
24 | | Services, or, if applicable, any successor bureau.
|
25 | | The cities of Champaign and Urbana shall be considered
|
26 | | employers, but only during the period for which contributions |
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1 | | are required to
be made under subsection (b-1) of Section |
2 | | 15-155 and only with respect to
individuals described in |
3 | | subsection (h) of Section 15-107.
|
4 | | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See |
5 | | Sec. 999 .)
|
6 | | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
|
7 | | Sec. 15-107. Employee.
|
8 | | (a) "Employee" means any member of the educational, |
9 | | administrative,
secretarial, clerical, mechanical, labor or |
10 | | other staff of an employer
whose employment is permanent and |
11 | | continuous or who is employed in a
position in which services |
12 | | are expected to be rendered on a continuous
basis for at least |
13 | | 4 months or one academic term, whichever is less, who
(A) |
14 | | receives payment for personal services on a warrant issued |
15 | | pursuant to
a payroll voucher certified by an employer and |
16 | | drawn by the State
Comptroller upon the State Treasurer or by |
17 | | an employer upon trust, federal
or other funds, or (B) is on a |
18 | | leave of absence without pay. Employment
which is irregular, |
19 | | intermittent or temporary shall not be considered
continuous |
20 | | for purposes of this paragraph.
|
21 | | However, a person is not an "employee" if he or she:
|
22 | | (1) is a student enrolled in and regularly attending |
23 | | classes in a
college or university which is an employer, |
24 | | and is employed on a temporary
basis at less than full |
25 | | time;
|
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1 | | (2) is currently receiving a retirement annuity or a |
2 | | disability
retirement annuity under Section 15-153.2 from |
3 | | this System;
|
4 | | (3) is on a military leave of absence;
|
5 | | (4) is eligible to participate in the Federal Civil |
6 | | Service Retirement
System and is currently making |
7 | | contributions to that system based upon
earnings paid by an |
8 | | employer;
|
9 | | (5) is on leave of absence without pay for more than 60 |
10 | | days
immediately following termination of disability |
11 | | benefits under this
Article;
|
12 | | (6) is hired after June 30, 1979 as a public service |
13 | | employment program
participant under the Federal |
14 | | Comprehensive Employment and Training Act
and receives |
15 | | earnings in whole or in part from funds provided under that
|
16 | | Act; or
|
17 | | (7) is employed on or after July 1, 1991 to perform |
18 | | services that
are excluded by subdivision (a)(7)(f) or |
19 | | (a)(19) of Section 210 of the
federal Social Security Act |
20 | | from the definition of employment given in that
Section (42 |
21 | | U.S.C. 410).
|
22 | | (b) Any employer may, by filing a written notice with the |
23 | | board, exclude
from the definition of "employee" all persons |
24 | | employed pursuant to a federally
funded contract entered into |
25 | | after July 1, 1982 with a federal military
department in a |
26 | | program providing training in military courses to federal
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1 | | military personnel on a military site owned by the United |
2 | | States Government,
if this exclusion is not prohibited by the |
3 | | federally funded contract or
federal laws or rules governing |
4 | | the administration of the contract.
|
5 | | (c) Any person appointed by the Governor under the Civil |
6 | | Administrative
Code of the State is an employee, if he or she |
7 | | is a participant in this
system on the effective date of the |
8 | | appointment.
|
9 | | (d) A participant on lay-off status under civil service |
10 | | rules is
considered an employee for not more than 120 days from |
11 | | the date of the lay-off.
|
12 | | (e) A participant is considered an employee during (1) the |
13 | | first 60 days
of disability leave, (2) the period, not to |
14 | | exceed one year, in which his
or her eligibility for disability |
15 | | benefits is being considered by the board
or reviewed by the |
16 | | courts, and (3) the period he or she receives disability
|
17 | | benefits under the provisions of Section 15-152, workers' |
18 | | compensation or
occupational disease benefits, or disability |
19 | | income under an insurance
contract financed wholly or partially |
20 | | by the employer.
|
21 | | (f) Absences without pay, other than formal leaves of |
22 | | absence, of less
than 30 calendar days, are not considered as |
23 | | an interruption of a person's
status as an employee. If such |
24 | | absences during any period of 12 months
exceed 30 work days, |
25 | | the employee status of the person is considered as
interrupted |
26 | | as of the 31st work day.
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1 | | (g) A staff member whose employment contract requires |
2 | | services during
an academic term is to be considered an |
3 | | employee during the summer and
other vacation periods, unless |
4 | | he or she declines an employment contract
for the succeeding |
5 | | academic term or his or her employment status is
otherwise |
6 | | terminated, and he or she receives no earnings during these |
7 | | periods.
|
8 | | (h) An individual who was a participating employee employed |
9 | | in the fire
department of the University of Illinois's |
10 | | Champaign-Urbana campus immediately
prior to the elimination |
11 | | of that fire department and who immediately after the
|
12 | | elimination of that fire department became employed by the fire |
13 | | department of
the City of Urbana or the City of Champaign shall |
14 | | continue to be considered as
an employee for purposes of this |
15 | | Article for so long as the individual remains
employed as a |
16 | | firefighter by the City of Urbana or the City of Champaign. The
|
17 | | individual shall cease to be considered an employee under this |
18 | | subsection (h)
upon the first termination of the individual's |
19 | | employment as a firefighter by
the City of Urbana or the City |
20 | | of Champaign.
|
21 | | (i) An individual who is employed on a full-time basis as |
22 | | an officer
or employee of a statewide teacher organization that |
23 | | serves System
participants or an officer of a national teacher |
24 | | organization that serves
System participants may participate |
25 | | in the System and shall be deemed an
employee, provided that |
26 | | (1) the individual has previously earned
creditable service |
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1 | | under this Article, (2) the individual files with the
System an |
2 | | irrevocable election to become a participant before the |
3 | | effective date of this amendatory Act of the 97th General |
4 | | Assembly, (3) the
individual does not receive credit for that |
5 | | employment under any other Article
of this Code, and (4) the |
6 | | individual first became a full-time employee of the teacher |
7 | | organization and becomes a participant before the effective |
8 | | date of this amendatory Act of the 97th General Assembly. An |
9 | | employee under this subsection (i) is responsible for paying
to |
10 | | the System both (A) employee contributions based on the actual |
11 | | compensation
received for service with the teacher |
12 | | organization and (B) employer
contributions equal to the normal |
13 | | costs (as defined in Section 15-155)
resulting from that |
14 | | service; all or any part of these contributions may be
paid on |
15 | | the employee's behalf or picked up for tax purposes (if |
16 | | authorized
under federal law) by the teacher organization.
|
17 | | A person who is an employee as defined in this subsection |
18 | | (i) may establish
service credit for similar employment prior |
19 | | to becoming an employee under this
subsection by paying to the |
20 | | System for that employment the contributions
specified in this |
21 | | subsection, plus interest at the effective rate from the
date |
22 | | of service to the date of payment. However, credit shall not be |
23 | | granted
under this subsection for any such prior employment for |
24 | | which the applicant
received credit under any other provision |
25 | | of this Code, or during which
the applicant was on a leave of |
26 | | absence under Section 15-113.2.
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1 | | (j) A person employed by the State Board of Higher |
2 | | Education in a position with the Illinois Century Network as of |
3 | | June 30, 2004 shall be considered to be an employee for so long |
4 | | as he or she remains continuously employed after that date by |
5 | | the Department of Central Management Services in a position |
6 | | with the Illinois Century Network, the Bureau of Communication |
7 | | and Computer Services, or, if applicable, any successor bureau
|
8 | | and meets the requirements of subsection (a).
|
9 | | (k) In the case of doubt as to whether any person is an |
10 | | employee within the meaning of this Section, the decision of |
11 | | the Board shall be final. |
12 | | (Source: P.A. 97-651, eff. 1-5-12.)
|
13 | | (40 ILCS 5/15-107.1 new) |
14 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
15 | | participant under this Article, other than a participant in the |
16 | | self-managed plan under Section 15-158.2, who first became a |
17 | | member or participant before January 1, 2011 under any |
18 | | reciprocal retirement system or pension fund established under |
19 | | this Code other than a retirement system or pension fund |
20 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code. |
21 | | (40 ILCS 5/15-107.2 new) |
22 | | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former |
23 | | Tier I participant who is receiving a retirement annuity. |
24 | | A person does not become a Tier I retiree by virtue of |
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1 | | receiving a reversionary, survivors, beneficiary, or |
2 | | disability annuity.
|
3 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
|
4 | | Sec. 15-111. Earnings.
"Earnings": An amount paid for |
5 | | personal services equal to the sum of
the basic compensation |
6 | | plus extra compensation for summer teaching,
overtime or other |
7 | | extra service. For periods for which an employee receives
|
8 | | service credit under subsection (c) of Section 15-113.1 or |
9 | | Section 15-113.2,
earnings are equal to the basic compensation |
10 | | on which contributions are
paid by the employee during such |
11 | | periods. Compensation for employment which is
irregular, |
12 | | intermittent and temporary shall not be considered earnings, |
13 | | unless
the participant is also receiving earnings from the |
14 | | employer as an employee
under Section 15-107.
|
15 | | With respect to transition pay paid by the University of |
16 | | Illinois to a
person who was a participating employee employed |
17 | | in the fire department of
the University of Illinois's |
18 | | Champaign-Urbana campus immediately prior to
the elimination |
19 | | of that fire department:
|
20 | | (1) "Earnings" includes transition pay paid to the |
21 | | employee on or after
the effective date of this amendatory |
22 | | Act of the 91st General Assembly.
|
23 | | (2) "Earnings" includes transition pay paid to the |
24 | | employee before the
effective date of this amendatory Act |
25 | | of the 91st General Assembly only if (i)
employee |
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1 | | contributions under Section 15-157 have been withheld from |
2 | | that
transition pay or (ii) the employee pays to the System |
3 | | before January 1, 2001
an amount representing employee |
4 | | contributions under Section 15-157 on that
transition pay. |
5 | | Employee contributions under item (ii) may be paid in a |
6 | | lump
sum, by withholding from additional transition pay |
7 | | accruing before January 1,
2001, or in any other manner |
8 | | approved by the System. Upon payment of the
employee |
9 | | contributions on transition pay, the corresponding |
10 | | employer
contributions become an obligation of the State.
|
11 | | Notwithstanding any other provision of this Code, the |
12 | | earnings of a Tier I participant for the purposes of this Code |
13 | | shall not exceed, for periods of service on or after the |
14 | | effective date of this amendatory Act of the 98th General |
15 | | Assembly, the greater of (i) the annual contribution and |
16 | | benefit base established for the applicable year by the |
17 | | Commissioner of Social Security under the federal Social |
18 | | Security Act or (ii) the annual earnings of the participant |
19 | | during the 365 days immediately preceding the effective date of |
20 | | this Section; except that this limitation does not apply to a |
21 | | participant's earnings that are determined under an employment |
22 | | contract or collective bargaining agreement that is in effect |
23 | | on the effective date of this amendatory Act of the 98th |
24 | | General Assembly and has not been amended or renewed after that |
25 | | date. |
26 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
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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 |
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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 98th General Assembly. |
19 | | (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
|
20 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
21 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
22 | | of this
Section 15-136 apply only to those participants who are |
23 | | participating in the
traditional benefit package or the |
24 | | portable benefit package and do not
apply to participants who |
25 | | are participating in the self-managed plan.
|
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1 | | (a) The amount of a participant's retirement annuity, |
2 | | expressed in the form
of a single-life annuity, shall be |
3 | | determined by whichever of the following
rules is applicable |
4 | | and provides the largest annuity:
|
5 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
6 | | of earnings for
each of the first 10 years of service, 1.90% |
7 | | for each of the next 10 years of
service, 2.10% for each year |
8 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
9 | | each year in excess of 30; or for persons who retire on or
|
10 | | after January 1, 1998, 2.2% of the final rate of earnings for |
11 | | each year of
service.
|
12 | | Rule 2: The retirement annuity shall be the sum of the |
13 | | following,
determined from amounts credited to the participant |
14 | | in accordance with the
actuarial tables and the effective rate |
15 | | of interest in effect at the
time the retirement annuity |
16 | | begins:
|
17 | | (i) the normal annuity which can be provided on an |
18 | | actuarially
equivalent basis, by the accumulated normal |
19 | | contributions as of
the date the annuity begins;
|
20 | | (ii) an annuity from employer contributions of an |
21 | | amount equal to that
which can be provided on an |
22 | | actuarially equivalent basis from the accumulated
normal |
23 | | contributions made by the participant under Section |
24 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
25 | | accumulated normal contributions made by
the participant; |
26 | | and
|
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1 | | (iii) the annuity that can be provided on an |
2 | | actuarially equivalent basis
from the entire contribution |
3 | | made by the participant under Section 15-113.3.
|
4 | | For the purpose of calculating an annuity under this Rule |
5 | | 2, the contribution required under subsection (c-5) of Section |
6 | | 15-157 shall not be considered when determining the |
7 | | participant's accumulated normal contributions under clause |
8 | | (i) or the employer contribution under clause (ii). |
9 | | With respect to a police officer or firefighter who retires |
10 | | on or after
August 14, 1998, the accumulated normal |
11 | | contributions taken into account under
clauses (i) and (ii) of |
12 | | this Rule 2 shall include the additional normal
contributions |
13 | | made by the police officer or firefighter under Section
|
14 | | 15-157(a).
|
15 | | The amount of a retirement annuity calculated under this |
16 | | Rule 2 shall
be computed solely on the basis of the |
17 | | participant's accumulated normal
contributions, as specified |
18 | | in this Rule and defined in Section 15-116.
Neither an employee |
19 | | or employer contribution for early retirement under
Section |
20 | | 15-136.2 nor any other employer contribution shall be used in |
21 | | the
calculation of the amount of a retirement annuity under |
22 | | this Rule 2.
|
23 | | This amendatory Act of the 91st General Assembly is a |
24 | | clarification of
existing law and applies to every participant |
25 | | and annuitant without regard to
whether status as an employee |
26 | | terminates before the effective date of this
amendatory Act.
|
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1 | | This Rule 2 does not apply to a person who first becomes an |
2 | | employee under this Article on or after July 1, 2005.
|
3 | | Rule 3: The retirement annuity of a participant who is |
4 | | employed
at least one-half time during the period on which his |
5 | | or her final rate of
earnings is based, shall be equal to the |
6 | | participant's years of service
not to exceed 30, multiplied by |
7 | | (1) $96 if the participant's final rate
of earnings is less |
8 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
9 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
10 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
11 | | the final rate
of earnings is at least $5,500 but less than |
12 | | $6,500, (5)
$144 if the final rate of earnings is at least |
13 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
14 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
15 | | the final rate of earnings is at least $8,500 but
less than |
16 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
|
17 | | more, except that the annuity for those persons having made an |
18 | | election under
Section 15-154(a-1) shall be calculated and |
19 | | payable under the portable
retirement benefit program pursuant |
20 | | to the provisions of Section 15-136.4.
|
21 | | Rule 4: A participant who is at least age 50 and has 25 or |
22 | | more years of
service as a police officer or firefighter, and a |
23 | | participant who is age 55 or
over and has at least 20 but less |
24 | | than 25 years of service as a police officer
or firefighter, |
25 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
26 | | final rate of earnings for each of the first 10 years of |
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1 | | service as a police
officer or firefighter, 2 1/2% for each of |
2 | | the next 10 years of service as a
police officer or |
3 | | firefighter, and 2 3/4% for each year of service as a police
|
4 | | officer or firefighter in excess of 20. The retirement annuity |
5 | | for all other
service shall be computed under Rule 1.
|
6 | | For purposes of this Rule 4, a participant's service as a |
7 | | firefighter
shall also include the following:
|
8 | | (i) service that is performed while the person is an |
9 | | employee under
subsection (h) of Section 15-107; and
|
10 | | (ii) in the case of an individual who was a |
11 | | participating employee
employed in the fire department of |
12 | | the University of Illinois's
Champaign-Urbana campus |
13 | | immediately prior to the elimination of that fire
|
14 | | department and who immediately after the elimination of |
15 | | that fire department
transferred to another job with the |
16 | | University of Illinois, service performed
as an employee of |
17 | | the University of Illinois in a position other than police
|
18 | | officer or firefighter, from the date of that transfer |
19 | | until the employee's
next termination of service with the |
20 | | University of Illinois.
|
21 | | Rule 5: The retirement annuity of a participant who elected |
22 | | early
retirement under the provisions of Section 15-136.2 and |
23 | | who, on or before
February 16, 1995, brought administrative |
24 | | proceedings pursuant to the
administrative rules adopted by the |
25 | | System to challenge the calculation of his
or her retirement |
26 | | annuity shall be the sum of the following, determined from
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1 | | amounts credited to the participant in accordance with the |
2 | | actuarial tables and
the prescribed rate of interest in effect |
3 | | at the time the retirement annuity
begins:
|
4 | | (i) the normal annuity which can be provided on an |
5 | | actuarially equivalent
basis, by the accumulated normal |
6 | | contributions as of the date the annuity
begins; and
|
7 | | (ii) an annuity from employer contributions of an |
8 | | amount equal to that
which can be provided on an |
9 | | actuarially equivalent basis from the accumulated
normal |
10 | | contributions made by the participant under Section |
11 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
12 | | accumulated normal contributions made by the
participant; |
13 | | and
|
14 | | (iii) an annuity which can be provided on an |
15 | | actuarially equivalent basis
from the employee |
16 | | contribution for early retirement under Section 15-136.2, |
17 | | and
an annuity from employer contributions of an amount |
18 | | equal to that which can be
provided on an actuarially |
19 | | equivalent basis from the employee contribution for
early |
20 | | retirement under Section 15-136.2.
|
21 | | In no event shall a retirement annuity under this Rule 5 be |
22 | | lower than the
amount obtained by adding (1) the monthly amount |
23 | | obtained by dividing the
combined employee and employer |
24 | | contributions made under Section 15-136.2 by the
System's |
25 | | annuity factor for the age of the participant at the beginning |
26 | | of the
annuity payment period and (2) the amount equal to the |
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1 | | participant's annuity if
calculated under Rule 1, reduced under |
2 | | Section 15-136(b) as if no
contributions had been made under |
3 | | Section 15-136.2.
|
4 | | With respect to a participant who is qualified for a |
5 | | retirement annuity under
this Rule 5 whose retirement annuity |
6 | | began before the effective date of this
amendatory Act of the |
7 | | 91st General Assembly, and for whom an employee
contribution |
8 | | was made under Section 15-136.2, the System shall recalculate |
9 | | the
retirement annuity under this Rule 5 and shall pay any |
10 | | additional amounts due
in the manner provided in Section |
11 | | 15-186.1 for benefits mistakenly set too low.
|
12 | | The amount of a retirement annuity calculated under this |
13 | | Rule 5 shall be
computed solely on the basis of those |
14 | | contributions specifically set forth in
this Rule 5. Except as |
15 | | provided in clause (iii) of this Rule 5, neither an
employee |
16 | | nor employer contribution for early retirement under Section |
17 | | 15-136.2,
nor any other employer contribution, shall be used in |
18 | | the calculation of the
amount of a retirement annuity under |
19 | | this Rule 5.
|
20 | | The General Assembly has adopted the changes set forth in |
21 | | Section 25 of this
amendatory Act of the 91st General Assembly |
22 | | in recognition that the decision of
the Appellate Court for the |
23 | | Fourth District in Mattis v. State Universities
Retirement |
24 | | System et al. might be deemed to give some right to the |
25 | | plaintiff in
that case. The changes made by Section 25 of this |
26 | | amendatory Act of the 91st
General Assembly are a legislative |
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1 | | implementation of the decision of the
Appellate Court for the |
2 | | Fourth District in Mattis v. State Universities
Retirement |
3 | | System et al. with respect to that plaintiff.
|
4 | | The changes made by Section 25 of this amendatory Act of |
5 | | the 91st General
Assembly apply without regard to whether the |
6 | | person is in service as an
employee on or after its effective |
7 | | date.
|
8 | | (b) The retirement annuity provided under Rules 1 and 3 |
9 | | above shall be
reduced by 1/2 of 1% for each month the |
10 | | participant is under age 60 at the
time of retirement. However, |
11 | | this reduction shall not apply in the following
cases:
|
12 | | (1) For a disabled participant whose disability |
13 | | benefits have been
discontinued because he or she has |
14 | | exhausted eligibility for disability
benefits under clause |
15 | | (6) of Section 15-152;
|
16 | | (2) For a participant who has at least the number of |
17 | | years of service
required to retire at any age under |
18 | | subsection (a) of Section 15-135; or
|
19 | | (3) For that portion of a retirement annuity which has |
20 | | been provided on
account of service of the participant |
21 | | during periods when he or she performed
the duties of a |
22 | | police officer or firefighter, if these duties were |
23 | | performed
for at least 5 years immediately preceding the |
24 | | date the retirement annuity
is to begin.
|
25 | | (c) The maximum retirement annuity provided under Rules 1, |
26 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
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1 | | benefits as specified in
Section 415 of the Internal Revenue |
2 | | Code of 1986, as such Section may be
amended from time to time |
3 | | and as such benefit limits shall be adjusted by
the |
4 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
5 | | earnings.
|
6 | | (d) Subject to the provisions of subsections (d-1) and |
7 | | (d-2), an An annuitant whose status as an employee terminates |
8 | | after August 14,
1969 shall receive automatic increases in his |
9 | | or her retirement annuity as
follows:
|
10 | | Effective January 1 immediately following the date the |
11 | | retirement annuity
begins, the annuitant shall receive an |
12 | | increase in his or her monthly
retirement annuity of 0.125% of |
13 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
14 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, |
15 | | multiplied by
the number of full months which elapsed from the |
16 | | date the retirement annuity
payments began to January 1, 1972, |
17 | | plus 0.1667% of such annuity, multiplied by
the number of full |
18 | | months which elapsed from January 1, 1972, or the date the
|
19 | | retirement annuity payments began, whichever is later, to |
20 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
21 | | number of full months which elapsed
from January 1, 1978, or |
22 | | the date the retirement annuity payments began,
whichever is |
23 | | later, to the effective date of the increase.
|
24 | | The annuitant shall receive an increase in his or her |
25 | | monthly retirement
annuity on each January 1 thereafter during |
26 | | the annuitant's life of 3% of
the monthly annuity provided |
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1 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in |
2 | | this Section. The change made under this subsection by P.A. |
3 | | 81-970 is
effective January 1, 1980 and applies to each |
4 | | annuitant whose status as
an employee terminates before or |
5 | | after that date.
|
6 | | Beginning January 1, 1990 and except as provided in |
7 | | subsections (d-1) and (d-2) , all automatic annual increases |
8 | | payable under
this Section shall be calculated as a percentage |
9 | | of the total annuity
payable at the time of the increase, |
10 | | including all increases previously
granted under this Article.
|
11 | | The change made in this subsection by P.A. 85-1008 is |
12 | | effective January
26, 1988, and is applicable without regard to |
13 | | whether status as an employee
terminated before that date.
|
14 | | (d-1) Notwithstanding any other provision of this Article, |
15 | | for a Tier I retiree, the amount of each automatic increase in |
16 | | retirement annuity occurring on or after the effective date of |
17 | | this amendatory Act of the 98th General Assembly shall be the |
18 | | lesser of (i) $750 or (ii) 3% of the total annuity
payable at |
19 | | the time of the increase, including previous increases granted. |
20 | | (d-2) Notwithstanding any other provision of this Article, |
21 | | the System shall not grant any new or additional automatic |
22 | | increase in retirement annuity to a Tier I retiree on or after |
23 | | the effective date of this amendatory Act of the 98th General |
24 | | Assembly and before January 1, 2017. |
25 | | Notwithstanding any other provision of this Article, the |
26 | | System shall not grant any new or additional automatic increase |
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1 | | in retirement annuity to a Tier I retiree who has not yet |
2 | | attained the age of 67, regardless of any age augmentation |
3 | | granted under this Article as an early retirement incentive. |
4 | | If on the effective date of this amendatory Act of the 98th |
5 | | General Assembly a Tier I retiree has already received an |
6 | | annual increase under this Section but does not yet meet the |
7 | | new eligibility requirements of this subsection, the annual |
8 | | increases already received shall continue in force, but no |
9 | | additional annual increase shall be granted until the Tier I |
10 | | retiree meets the new eligibility requirements. |
11 | | (d-3) Notwithstanding Section 1-103.1, subsections (d-1) |
12 | | and (d-2) apply without regard to whether or not the Tier I |
13 | | retiree is in active service under this Article on or after the |
14 | | effective date of this amendatory Act of the 98th General |
15 | | Assembly. |
16 | | (e) If, on January 1, 1987, or the date the retirement |
17 | | annuity payment
period begins, whichever is later, the sum of |
18 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
19 | | Section
and the automatic annual increases provided under the |
20 | | preceding subsection
or Section 15-136.1, amounts to less than |
21 | | the retirement
annuity which would be provided by Rule 3, the |
22 | | retirement
annuity shall be increased as of January 1, 1987, or |
23 | | the date the
retirement annuity payment period begins, |
24 | | whichever is later, to the amount
which would be provided by |
25 | | Rule 3 of this Section. Such increased
amount shall be |
26 | | considered as the retirement annuity in determining
benefits |
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1 | | provided under other Sections of this Article. This paragraph
|
2 | | applies without regard to whether status as an employee |
3 | | terminated before the
effective date of this amendatory Act of |
4 | | 1987, provided that the annuitant was
employed at least |
5 | | one-half time during the period on which the final rate of
|
6 | | earnings was based.
|
7 | | (f) A participant is entitled to such additional annuity as |
8 | | may be provided
on an actuarially equivalent basis, by any |
9 | | accumulated
additional contributions to his or her credit. |
10 | | However,
the additional contributions made by the participant |
11 | | toward the automatic
increases in annuity provided under this |
12 | | Section and the contributions made under subsection (c-5) of |
13 | | Section 15-157 by this amendatory Act of the 98th General |
14 | | Assembly shall not be taken into
account in determining the |
15 | | amount of such additional annuity.
|
16 | | (g) If, (1) by law, a function of a governmental unit, as |
17 | | defined by Section
20-107 of this Code, is transferred in whole |
18 | | or in part to an employer, and (2)
a participant transfers |
19 | | employment from such governmental unit to such employer
within |
20 | | 6 months after the transfer of the function, and (3) the sum of |
21 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
22 | | 3 of this Section (B)
all proportional annuities payable to the |
23 | | participant by all other retirement
systems covered by Article |
24 | | 20, and (C) the initial primary insurance amount to
which the |
25 | | participant is entitled under the Social Security Act, is less |
26 | | than
the retirement annuity which would have been payable if |
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1 | | all of the
participant's pension credits validated under |
2 | | Section 20-109 had been validated
under this system, a |
3 | | supplemental annuity equal to the difference in such
amounts |
4 | | shall be payable to the participant.
|
5 | | (h) On January 1, 1981, an annuitant who was receiving
a |
6 | | retirement annuity on or before January 1, 1971 shall have his |
7 | | or her
retirement annuity then being paid increased $1 per |
8 | | month for
each year of creditable service. On January 1, 1982, |
9 | | an annuitant whose
retirement annuity began on or before |
10 | | January 1, 1977, shall have his or her
retirement annuity then |
11 | | being paid increased $1 per month for each year of
creditable |
12 | | service.
|
13 | | (i) On January 1, 1987, any annuitant whose retirement |
14 | | annuity began on or
before January 1, 1977, shall have the |
15 | | monthly retirement annuity increased by
an amount equal to 8¢ |
16 | | per year of creditable service times the number of years
that |
17 | | have elapsed since the annuity began.
|
18 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
19 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
20 | | Sec. 15-155. Employer contributions.
|
21 | | (a) The State of Illinois shall make contributions by |
22 | | appropriations of
amounts which, together with the other |
23 | | employer contributions from trust,
federal, and other funds, |
24 | | employee contributions, income from investments,
and other |
25 | | income of this System, will be sufficient to meet the cost of
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1 | | maintaining and administering the System on a 100% 90% funded |
2 | | basis in accordance
with actuarial recommendations by the end |
3 | | of State fiscal year 2043 .
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4 | | The Board shall determine the amount of State contributions |
5 | | required for
each fiscal year on the basis of the actuarial |
6 | | tables and other assumptions
adopted by the Board and the |
7 | | recommendations of the actuary, using the formula
in subsection |
8 | | (a-1).
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9 | | (a-1) For State fiscal years 2014 through 2043, the minimum |
10 | | contribution
to the System to be made by the State for each |
11 | | fiscal year shall be an amount
determined by the System to be |
12 | | equal to the sum of (1) the State's portion of the projected |
13 | | normal cost for that fiscal year, plus (2) an amount sufficient |
14 | | to bring the total assets of the
System up to 100% of the total |
15 | | actuarial liabilities of the System by the end of
State fiscal |
16 | | year 2043. In making these determinations, the required State
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17 | | 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 | | For State fiscal year 2044 and thereafter, the minimum |
22 | | State contribution for each fiscal year shall be the amount |
23 | | needed to maintain the total assets of the System at 100% of |
24 | | the total actuarial liabilities of the System. |
25 | | For State fiscal years 2012 and 2013 through 2045 , the |
26 | | minimum contribution
to the System to be made by the State for |
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1 | | each fiscal year shall be an amount
determined by the System to |
2 | | be sufficient to bring the total assets of the
System up to 90% |
3 | | of the total actuarial liabilities of the System by the end of
|
4 | | State fiscal year 2045. 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 2045 and shall be
determined under the |
8 | | projected unit credit actuarial cost method.
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9 | | For State fiscal years 1996 through 2005, the State |
10 | | contribution to
the System, as a percentage of the applicable |
11 | | employee payroll, shall be
increased in equal annual increments |
12 | | so that by State fiscal year 2011, the
State is contributing at |
13 | | the rate required under this Section.
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14 | | Notwithstanding any other provision of this Article, the |
15 | | total required State
contribution for State fiscal year 2006 is |
16 | | $166,641,900.
|
17 | | Notwithstanding any other provision of this Article, the |
18 | | total required State
contribution for State fiscal year 2007 is |
19 | | $252,064,100.
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20 | | For each of State fiscal years 2008 through 2009, the State |
21 | | contribution to
the System, as a percentage of the applicable |
22 | | employee payroll, shall be
increased in equal annual increments |
23 | | from the required State contribution for State fiscal year |
24 | | 2007, so that by State fiscal year 2011, the
State is |
25 | | contributing at the rate otherwise required under this Section.
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26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State contribution for State fiscal year 2010 is |
2 | | $702,514,000 and shall be made from the State Pensions Fund and |
3 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
4 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
5 | | share of bond sale expenses determined by the System's share of |
6 | | total bond proceeds, (ii) any amounts received from the General |
7 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
8 | | proceeds due to the issuance of discounted bonds, if |
9 | | applicable. |
10 | | Notwithstanding any other provision of this Article, the
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11 | | total required State contribution for State fiscal year 2011 is
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12 | | the amount recertified by the System on or before April 1, 2011 |
13 | | pursuant to Section 15-165 and shall be made from the State |
14 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
15 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
16 | | less (i) the pro rata
share of bond sale expenses determined by |
17 | | the System's share of
total bond proceeds, (ii) any amounts |
18 | | received from the General
Revenue Fund in fiscal year 2011, and |
19 | | (iii) any reduction in bond
proceeds due to the issuance of |
20 | | discounted bonds, if
applicable. |
21 | | Beginning in State fiscal year 2046, the minimum State |
22 | | contribution for
each fiscal year shall be the amount needed to |
23 | | maintain the total assets of
the System at 90% of the total |
24 | | actuarial liabilities of the System.
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25 | | Amounts received by the System pursuant to Section 25 of |
26 | | the Budget Stabilization Act or Section 8.12 of the State |
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1 | | Finance Act in any fiscal year do not reduce and do not |
2 | | constitute payment of any portion of the minimum State |
3 | | contribution required under this Article in that fiscal year. |
4 | | Such amounts shall not reduce, and shall not be included in the |
5 | | calculation of, the required State contributions under this |
6 | | Article in any future year until the System has reached a |
7 | | funding ratio of at least 100% 90% . A reference in this Article |
8 | | to the "required State contribution" or any substantially |
9 | | similar term does not include or apply to any amounts payable |
10 | | to the System under Section 25 of the Budget Stabilization Act. |
11 | | Notwithstanding any other provision of this Code or the |
12 | | Budget Stabilization Act, amounts transferred to the System |
13 | | pursuant to the Budget Stabilization Act after the effective |
14 | | date of this amendatory Act of the 98th General Assembly do not |
15 | | reduce and do not constitute payment of any portion of the |
16 | | required State contribution under this Article in that fiscal |
17 | | year. Such amounts shall not reduce, and shall not be included |
18 | | in the calculation of, the required State contributions under |
19 | | this Article in any future year until the System has received |
20 | | payment of contributions pursuant to the Budget Stabilization |
21 | | Act. |
22 | | Notwithstanding any other provision of this Section, the |
23 | | required State
contribution for State fiscal year 2005 and for |
24 | | fiscal year 2008 and each fiscal year thereafter through State |
25 | | fiscal year 2013 , as
calculated under this Section and
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26 | | certified under Section 15-165, shall not exceed an amount |
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1 | | equal to (i) the
amount of the required State contribution that |
2 | | would have been calculated under
this Section for that fiscal |
3 | | year if the System had not received any payments
under |
4 | | subsection (d) of Section 7.2 of the General Obligation Bond |
5 | | Act, minus
(ii) the portion of the State's total debt service |
6 | | payments for that fiscal
year on the bonds issued in fiscal |
7 | | year 2003 for the purposes of that Section 7.2, as determined
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8 | | and certified by the Comptroller, that is the same as the |
9 | | System's portion of
the total moneys distributed under |
10 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
11 | | Act. In determining this maximum for State fiscal years 2008 |
12 | | through 2010, however, the amount referred to in item (i) shall |
13 | | be increased, as a percentage of the applicable employee |
14 | | payroll, in equal increments calculated from the sum of the |
15 | | required State contribution for State fiscal year 2007 plus the |
16 | | applicable portion of the State's total debt service payments |
17 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
18 | | for the purposes of Section 7.2 of the General
Obligation Bond |
19 | | Act, so that, by State fiscal year 2011, the
State is |
20 | | contributing at the rate otherwise required under this Section.
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21 | | (b) If an employee is paid from trust or federal funds, the |
22 | | employer
shall pay to the Board contributions from those funds |
23 | | which are
sufficient to cover the accruing normal costs on |
24 | | behalf of the employee.
However, universities having employees |
25 | | who are compensated out of local
auxiliary funds, income funds, |
26 | | or service enterprise funds are not required
to pay such |
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1 | | contributions on behalf of those employees. The local auxiliary
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2 | | funds, income funds, and service enterprise funds of |
3 | | universities shall not be
considered trust funds for the |
4 | | purpose of this Article, but funds of alumni
associations, |
5 | | foundations, and athletic associations which are affiliated |
6 | | with
the universities included as employers under this Article |
7 | | and other employers
which do not receive State appropriations |
8 | | are considered to be trust funds for
the purpose of this |
9 | | Article.
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10 | | (b-1) The City of Urbana and the City of Champaign shall |
11 | | each make
employer contributions to this System for their |
12 | | respective firefighter
employees who participate in this |
13 | | System pursuant to subsection (h) of Section
15-107. The rate |
14 | | of contributions to be made by those municipalities shall
be |
15 | | determined annually by the Board on the basis of the actuarial |
16 | | assumptions
adopted by the Board and the recommendations of the |
17 | | actuary, and shall be
expressed as a percentage of salary for |
18 | | each such employee. The Board shall
certify the rate to the |
19 | | affected municipalities as soon as may be practical.
The |
20 | | employer contributions required under this subsection shall be |
21 | | remitted by
the municipality to the System at the same time and |
22 | | in the same manner as
employee contributions.
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23 | | (c) Through State fiscal year 1995: The total employer |
24 | | contribution shall
be apportioned among the various funds of |
25 | | the State and other employers,
whether trust, federal, or other |
26 | | funds, in accordance with actuarial procedures
approved by the |
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1 | | Board. State of Illinois contributions for employers receiving
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2 | | State appropriations for personal services shall be payable |
3 | | from appropriations
made to the employers or to the System. The |
4 | | contributions for Class I
community colleges covering earnings |
5 | | other than those paid from trust and
federal funds, shall be |
6 | | payable solely from appropriations to the Illinois
Community |
7 | | College Board or the System for employer contributions.
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8 | | (d) Beginning in State fiscal year 1996, the required State |
9 | | contributions
to the System shall be appropriated directly to |
10 | | the System and shall be payable
through vouchers issued in |
11 | | accordance with subsection (c) of Section 15-165, except as |
12 | | provided in subsection (g).
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13 | | (e) The State Comptroller shall draw warrants payable to |
14 | | the System upon
proper certification by the System or by the |
15 | | employer in accordance with the
appropriation laws and this |
16 | | Code.
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17 | | (f) Normal costs under this Section means liability for
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18 | | pensions and other benefits which accrues to the System because |
19 | | of the
credits earned for service rendered by the participants |
20 | | during the
fiscal year and expenses of administering the |
21 | | System, but shall not
include the principal of or any |
22 | | redemption premium or interest on any bonds
issued by the Board |
23 | | or any expenses incurred or deposits required in
connection |
24 | | therewith.
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25 | | (g) If the amount of a participant's earnings for any |
26 | | academic year used to determine the final rate of earnings, |
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1 | | determined on a full-time equivalent basis, exceeds the amount |
2 | | of his or her earnings with the same employer for the previous |
3 | | academic year, determined on a full-time equivalent basis, by |
4 | | more than 6%, the participant's employer shall pay to the |
5 | | System, in addition to all other payments required under this |
6 | | Section and in accordance with guidelines established by the |
7 | | System, the present value of the increase in benefits resulting |
8 | | from the portion of the increase in earnings that is in excess |
9 | | of 6%. This present value shall be computed by the System on |
10 | | the basis of the actuarial assumptions and tables used in the |
11 | | most recent actuarial valuation of the System that is available |
12 | | at the time of the computation. The System may require the |
13 | | employer to provide any pertinent information or |
14 | | documentation. |
15 | | Whenever it determines that a payment is or may be required |
16 | | under this subsection (g), the System shall calculate the |
17 | | amount of the payment and bill the employer for that amount. |
18 | | The bill shall specify the calculations used to determine the |
19 | | amount due. If the employer disputes the amount of the bill, it |
20 | | may, within 30 days after receipt of the bill, apply to the |
21 | | System in writing for a recalculation. The application must |
22 | | specify in detail the grounds of the dispute and, if the |
23 | | employer asserts that the calculation is subject to subsection |
24 | | (h) or (i) of this Section, must include an affidavit setting |
25 | | forth and attesting to all facts within the employer's |
26 | | knowledge that are pertinent to the applicability of subsection |
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1 | | (h) or (i). Upon receiving a timely application for |
2 | | recalculation, the System shall review the application and, if |
3 | | appropriate, recalculate the amount due.
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4 | | The employer contributions required under this subsection |
5 | | (g) (f) may be paid in the form of a lump sum within 90 days |
6 | | after receipt of the bill. If the employer contributions are |
7 | | not paid within 90 days after receipt of the bill, then |
8 | | interest will be charged at a rate equal to the System's annual |
9 | | actuarially assumed rate of return on investment compounded |
10 | | annually from the 91st day after receipt of the bill. Payments |
11 | | must be concluded within 3 years after the employer's receipt |
12 | | of the bill. |
13 | | (h) This subsection (h) applies only to payments made or |
14 | | salary increases given on or after June 1, 2005 but before July |
15 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
16 | | require the System to refund any payments received before July |
17 | | 31, 2006 (the effective date of Public Act 94-1057). |
18 | | When assessing payment for any amount due under subsection |
19 | | (g), the System shall exclude earnings increases paid to |
20 | | participants under contracts or collective bargaining |
21 | | agreements entered into, amended, or renewed before June 1, |
22 | | 2005.
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23 | | When assessing payment for any amount due under subsection |
24 | | (g), the System shall exclude earnings increases paid to a |
25 | | participant at a time when the participant is 10 or more years |
26 | | from retirement eligibility under Section 15-135.
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1 | | When assessing payment for any amount due under subsection |
2 | | (g), the System shall exclude earnings increases resulting from |
3 | | overload work, including a contract for summer teaching, or |
4 | | overtime when the employer has certified to the System, and the |
5 | | System has approved the certification, that: (i) in the case of |
6 | | overloads (A) the overload work is for the sole purpose of |
7 | | academic instruction in excess of the standard number of |
8 | | instruction hours for a full-time employee occurring during the |
9 | | academic year that the overload is paid and (B) the earnings |
10 | | increases are equal to or less than the rate of pay for |
11 | | academic instruction computed using the participant's current |
12 | | salary rate and work schedule; and (ii) in the case of |
13 | | overtime, the overtime was necessary for the educational |
14 | | mission. |
15 | | When assessing payment for any amount due under subsection |
16 | | (g), the System shall exclude any earnings increase resulting |
17 | | from (i) a promotion for which the employee moves from one |
18 | | classification to a higher classification under the State |
19 | | Universities Civil Service System, (ii) a promotion in academic |
20 | | rank for a tenured or tenure-track faculty position, or (iii) a |
21 | | promotion that the Illinois Community College Board has |
22 | | recommended in accordance with subsection (k) of this Section. |
23 | | These earnings increases shall be excluded only if the |
24 | | promotion is to a position that has existed and been filled by |
25 | | a member for no less than one complete academic year and the |
26 | | earnings increase as a result of the promotion is an increase |
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1 | | that results in an amount no greater than the average salary |
2 | | paid for other similar positions. |
3 | | (i) When assessing payment for any amount due under |
4 | | subsection (g), the System shall exclude any salary increase |
5 | | described in subsection (h) of this Section given on or after |
6 | | July 1, 2011 but before July 1, 2014 under a contract or |
7 | | collective bargaining agreement entered into, amended, or |
8 | | renewed on or after June 1, 2005 but before July 1, 2011. |
9 | | Notwithstanding any other provision of this Section, any |
10 | | payments made or salary increases given after June 30, 2014 |
11 | | shall be used in assessing payment for any amount due under |
12 | | subsection (g) of this Section.
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13 | | (j) The System shall prepare a report and file copies of |
14 | | the report with the Governor and the General Assembly by |
15 | | January 1, 2007 that contains all of the following information: |
16 | | (1) The number of recalculations required by the |
17 | | changes made to this Section by Public Act 94-1057 for each |
18 | | employer. |
19 | | (2) The dollar amount by which each employer's |
20 | | contribution to the System was changed due to |
21 | | recalculations required by Public Act 94-1057. |
22 | | (3) The total amount the System received from each |
23 | | employer as a result of the changes made to this Section by |
24 | | Public Act 94-4. |
25 | | (4) The increase in the required State contribution |
26 | | resulting from the changes made to this Section by Public |
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1 | | Act 94-1057. |
2 | | (k) The Illinois Community College Board shall adopt rules |
3 | | for recommending lists of promotional positions submitted to |
4 | | the Board by community colleges and for reviewing the |
5 | | promotional lists on an annual basis. When recommending |
6 | | promotional lists, the Board shall consider the similarity of |
7 | | the positions submitted to those positions recognized for State |
8 | | universities by the State Universities Civil Service System. |
9 | | The Illinois Community College Board shall file a copy of its |
10 | | findings with the System. The System shall consider the |
11 | | findings of the Illinois Community College Board when making |
12 | | determinations under this Section. The System shall not exclude |
13 | | any earnings increases resulting from a promotion when the |
14 | | promotion was not submitted by a community college. Nothing in |
15 | | this subsection (k) shall require any community college to |
16 | | submit any information to the Community College Board.
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17 | | (l) For purposes of determining the required State |
18 | | contribution to the System, the value of the System's assets |
19 | | shall be equal to the actuarial value of the System's assets, |
20 | | which shall be calculated as follows: |
21 | | As of June 30, 2008, the actuarial value of the System's |
22 | | assets shall be equal to the market value of the assets as of |
23 | | that date. In determining the actuarial value of the System's |
24 | | assets for fiscal years after June 30, 2008, any actuarial |
25 | | gains or losses from investment return incurred in a fiscal |
26 | | year shall be recognized in equal annual amounts over the |
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1 | | 5-year period following that fiscal year. |
2 | | (m) For purposes of determining the required State |
3 | | contribution to the system for a particular year, the actuarial |
4 | | value of assets shall be assumed to earn a rate of return equal |
5 | | to the system's actuarially assumed rate of return. |
6 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
7 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
8 | | 7-13-12; revised 10-17-12.)
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9 | | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
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10 | | Sec. 15-156. Obligations of State ; funding guarantees . |
11 | | (a) The payment of (1) the
required State contributions, |
12 | | (2) all benefits
granted under this system and (3) all expenses |
13 | | in connection with the
administration and operation thereof are |
14 | | obligations of the State of
Illinois to the extent specified in |
15 | | this Article. The accumulated
employee normal, additional and |
16 | | survivors insurance contributions
credited to the accounts of |
17 | | active and inactive participants
shall not be used to pay the |
18 | | State's share of the obligations.
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19 | | (b) Beginning July 1, 2013, the State shall be |
20 | | contractually obligated to contribute to the System under |
21 | | Section 15-155 in each State fiscal year an amount not less |
22 | | than the sum of (i) the State's normal cost for that year and
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23 | | (ii) the portion of the unfunded accrued liability assigned to |
24 | | that year by law in accordance with a schedule that distributes |
25 | | payments equitably over a reasonable period of time and in |
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1 | | accordance with accepted actuarial practices. The obligations |
2 | | created under this subsection (b) are contractual obligations |
3 | | protected and enforceable under Article I, Section 16 and |
4 | | Article XIII, Section 5 of the Illinois Constitution. |
5 | | Notwithstanding any other provision of law, if the State |
6 | | fails to pay in a State fiscal year the amount guaranteed under |
7 | | this subsection, the System may bring a mandamus action in the |
8 | | Circuit Court of Sangamon County to compel the State to make |
9 | | that payment, irrespective of other remedies that
may be |
10 | | available to the System. In ordering the State to make the |
11 | | required payment, the court may order a reasonable payment |
12 | | schedule to enable the State to make the required payment |
13 | | without significantly imperiling the public health, safety, or |
14 | | welfare. |
15 | | Any payments required to be made by the State pursuant to |
16 | | this subsection (b)
are expressly subordinated to the payment |
17 | | of the principal, interest, and premium, if any, on any
bonded |
18 | | debt obligation of the State or any other State-created entity, |
19 | | either currently outstanding or to
be issued, for which the |
20 | | source of repayment or security thereon is derived directly or |
21 | | indirectly from
tax revenues collected by the State or any |
22 | | other State-created entity. Payments on such bonded
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23 | | obligations include any statutory fund transfers or other |
24 | | prefunding mechanisms or formulas set forth,
now or hereafter, |
25 | | in State law or bond indentures, into debt service funds or |
26 | | accounts of the State
related to such bonded obligations, |
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1 | | consistent with the payment schedules associated with such
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2 | | obligations. |
3 | | (Source: P.A. 83-1440.)
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4 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
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5 | | Sec. 15-157. Employee Contributions.
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6 | | (a) Each participating employee
shall make contributions |
7 | | towards the retirement
benefits payable under the retirement |
8 | | program applicable to the
employee from each payment
of |
9 | | earnings applicable to employment under this system on and |
10 | | after the
date of becoming a participant as follows: Prior to |
11 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
12 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
13 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
14 | | are to be considered as normal contributions for purposes
of |
15 | | this Article.
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16 | | Each participant who is a police officer or firefighter |
17 | | shall make normal
contributions of 8% of each payment of |
18 | | earnings applicable to employment as a
police officer or |
19 | | firefighter under this system on or after September 1, 1981,
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20 | | unless he or she files with the board within 60 days after the |
21 | | effective date
of this amendatory Act of 1991 or 60 days after |
22 | | the board receives notice that
he or she is employed as a |
23 | | police officer or firefighter, whichever is later,
a written |
24 | | notice waiving the retirement formula provided by Rule 4 of |
25 | | Section
15-136. This waiver shall be irrevocable. If a |
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1 | | participant had met the
conditions set forth in Section |
2 | | 15-132.1 prior to the effective date of this
amendatory Act of |
3 | | 1991 but failed to make the additional normal contributions
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4 | | required by this paragraph, he or she may elect to pay the |
5 | | additional
contributions plus compound interest at the |
6 | | effective rate. If such payment
is received by the board, the |
7 | | service shall be considered as police officer
service in |
8 | | calculating the retirement annuity under Rule 4 of Section |
9 | | 15-136.
While performing service described in clause (i) or |
10 | | (ii) of Rule 4 of Section
15-136, a participating employee |
11 | | shall be deemed to be employed as a
firefighter for the purpose |
12 | | of determining the rate of employee contributions
under this |
13 | | Section.
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14 | | (b) Starting September 1, 1969, each participating |
15 | | employee shall make
additional contributions of 1/2 of 1% of |
16 | | earnings to finance a portion
of the cost of the annual |
17 | | increases in retirement annuity provided under
Section 15-136, |
18 | | except that with respect to participants in the
self-managed |
19 | | plan this additional contribution shall be used to finance the
|
20 | | benefits obtained under that retirement program.
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21 | | (c) In addition to the amounts described in subsections (a) |
22 | | and (b) of this
Section, each participating employee shall make |
23 | | contributions of 1% of earnings
applicable under this system on |
24 | | and after August 1, 1959. The contributions
made under this |
25 | | subsection (c) shall be considered as survivor's insurance
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26 | | contributions for purposes of this Article if the employee is |
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1 | | covered under
the traditional benefit package, and such |
2 | | contributions shall be considered
as additional contributions |
3 | | for purposes of this Article if the employee is
participating |
4 | | in the self-managed plan or has elected to participate in the
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5 | | portable benefit package and has completed the applicable |
6 | | one-year waiting
period. Contributions in excess of $80 during |
7 | | any fiscal year beginning before
August 31, 1969 and in excess |
8 | | of $120 during any fiscal year thereafter until
September 1, |
9 | | 1971 shall be considered as additional contributions for |
10 | | purposes
of this Article.
|
11 | | (c-5) In addition to the contributions otherwise required |
12 | | under this Article, each Tier I participant shall also make the |
13 | | following contributions toward the retirement
benefits payable |
14 | | under the retirement program applicable to the
employee from |
15 | | each payment
of earnings applicable to employment under this |
16 | | system: |
17 | | (1) beginning July 1, 2013 and through June 30, 2014, |
18 | | 1% of earnings; and |
19 | | (2) beginning on July 1, 2014, 2% of earnings. |
20 | | Except as otherwise specified, these contributions are to |
21 | | be considered as normal contributions for purposes
of this |
22 | | Article. |
23 | | (d) If the board by board rule so permits and subject to |
24 | | such conditions
and limitations as may be specified in its |
25 | | rules, a participant may make
other additional contributions of |
26 | | such percentage of earnings or amounts as
the participant shall |
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1 | | elect in a written notice thereof received by the board.
|
2 | | (e) That fraction of a participant's total accumulated |
3 | | normal
contributions, the numerator of which is equal to the |
4 | | number of years of
service in excess of that which is required |
5 | | to qualify for the maximum
retirement annuity, and the |
6 | | denominator of which is equal to the total
service of the |
7 | | participant, shall be considered as accumulated additional
|
8 | | contributions. The determination of the applicable maximum |
9 | | annuity and
the adjustment in contributions required by this |
10 | | provision shall be made
as of the date of the participant's |
11 | | retirement.
|
12 | | (f) Notwithstanding the foregoing, a participating |
13 | | employee shall not
be required to make contributions under this |
14 | | Section after the date upon
which continuance of such |
15 | | contributions would otherwise cause his or her
retirement |
16 | | annuity to exceed the maximum retirement annuity as specified |
17 | | in
clause (1) of subsection (c) of Section 15-136.
|
18 | | (g) A participating employee may make contributions for the |
19 | | purchase of
service credit under this Article.
|
20 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, |
21 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; |
22 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
|
23 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
24 | | Sec. 15-165. To certify amounts and submit vouchers.
|
25 | | (a) The Board shall certify to the Governor on or before |
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1 | | November 15 of each
year through until November 15, 2011 the |
2 | | appropriation required from State funds for the purposes of |
3 | | this
System for the following fiscal year. The certification |
4 | | under this subsection (a) 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 and the projected State cost for the self-managed |
8 | | plan for that fiscal year .
|
9 | | On or before May 1, 2004, the Board shall recalculate and |
10 | | recertify to
the Governor the amount of the required State |
11 | | contribution to the System for
State fiscal year 2005, taking |
12 | | into account the amounts appropriated to and
received by the |
13 | | System under subsection (d) of Section 7.2 of the General
|
14 | | Obligation Bond Act.
|
15 | | On or before July 1, 2005, the Board shall recalculate and |
16 | | recertify
to the Governor the amount of the required State
|
17 | | contribution to the System for State fiscal year 2006, taking |
18 | | into account the changes in required State contributions made |
19 | | by this amendatory Act of the 94th General Assembly.
|
20 | | On or before April 1, 2011, the Board shall recalculate and |
21 | | recertify to the Governor the amount of the required State |
22 | | contribution to the System for State fiscal year 2011, applying |
23 | | the changes made by Public Act 96-889 to the System's assets |
24 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
25 | | was approved on that date. |
26 | | (a-5) On or before November 1 of each year, beginning |
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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. |
12 | | On or before January 15, 2013 and each January 15 |
13 | | thereafter, the Board shall certify to the Governor and the |
14 | | General Assembly the amount of the required State contribution |
15 | | for the next fiscal year. The certification shall include a |
16 | | copy of the actuarial
recommendations upon which it is based |
17 | | and shall specifically identify the System's projected State |
18 | | normal cost for that fiscal year and the projected State cost |
19 | | for the self-managed plan for that fiscal year. The Board's |
20 | | certification must note, in a written response to the State |
21 | | Actuary, any deviations from the State Actuary's recommended |
22 | | changes, the reason or reasons for not following the State |
23 | | Actuary's recommended changes, and the fiscal impact of not |
24 | | following the State Actuary's recommended changes on the |
25 | | required State contribution. |
26 | | (b) The Board shall certify to the State Comptroller or |
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1 | | employer, as the
case may be, from time to time, by its |
2 | | president and secretary, with its seal
attached, the amounts |
3 | | payable to the System from the various funds.
|
4 | | (c) Beginning in State fiscal year 1996, on or as soon as |
5 | | possible after the
15th day of each month the Board shall |
6 | | submit vouchers for payment of State
contributions to the |
7 | | System, in a total monthly amount of one-twelfth of the
|
8 | | required annual State contribution certified under subsection |
9 | | (a).
From the effective date of this amendatory Act
of the 93rd |
10 | | General Assembly through June 30, 2004, the Board shall not
|
11 | | submit vouchers for the remainder of fiscal year 2004 in excess |
12 | | of the
fiscal year 2004 certified contribution amount |
13 | | determined
under this Section after taking into consideration |
14 | | the transfer to the
System under subsection (b) of Section |
15 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
16 | | the State Comptroller and Treasurer by warrants drawn
on the |
17 | | funds appropriated to the System for that fiscal year.
|
18 | | If in any month the amount remaining unexpended from all |
19 | | other
appropriations to the System for the applicable fiscal |
20 | | year (including the
appropriations to the System under Section |
21 | | 8.12 of the State Finance Act and
Section 1 of the State |
22 | | Pension Funds Continuing Appropriation Act) is less than
the |
23 | | amount lawfully vouchered under this Section, the difference |
24 | | shall be paid
from the General Revenue Fund under the |
25 | | continuing appropriation authority
provided in Section 1.1 of |
26 | | the State Pension Funds Continuing Appropriation
Act.
|
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1 | | (d) So long as the payments received are the full amount |
2 | | lawfully
vouchered under this Section, payments received by the |
3 | | System under this
Section shall be applied first toward the |
4 | | employer contribution to the
self-managed plan established |
5 | | under Section 15-158.2. Payments shall be
applied second toward |
6 | | the employer's portion of the normal costs of the System,
as |
7 | | defined in subsection (f) of Section 15-155. The balance shall |
8 | | be applied
toward the unfunded actuarial liabilities of the |
9 | | System.
|
10 | | (e) In the event that the System does not receive, as a |
11 | | result of
legislative enactment or otherwise, payments |
12 | | sufficient to
fully fund the employer contribution to the |
13 | | self-managed plan
established under Section 15-158.2 and to |
14 | | fully fund that portion of the
employer's portion of the normal |
15 | | costs of the System, as calculated in
accordance with Section |
16 | | 15-155(a-1), then any payments received shall be
applied |
17 | | proportionately to the optional retirement program established |
18 | | under
Section 15-158.2 and to the employer's portion of the |
19 | | normal costs of the
System, as calculated in accordance with |
20 | | Section 15-155(a-1).
|
21 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
22 | | 97-694, eff. 6-18-12.)
|
23 | | (40 ILCS 5/15-198)
|
24 | | Sec. 15-198. Application and expiration of new benefit |
25 | | increases. |
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1 | | (a) As used in this Section, "new benefit increase" means |
2 | | an increase in the amount of any benefit provided under this |
3 | | Article, or an expansion of the conditions of eligibility for |
4 | | any benefit under this Article or Article 1 , that results from |
5 | | an amendment to this Code that takes effect after the effective |
6 | | date of this amendatory Act of the 94th General Assembly. "New |
7 | | benefit increase", however, does not include any benefit |
8 | | increase resulting from the changes made to this Article or |
9 | | Article 1 by this amendatory Act of the 98th General Assembly. |
10 | | (b) Notwithstanding any other provision of this Code or any |
11 | | subsequent amendment to this Code, every new benefit increase |
12 | | is subject to this Section and shall be deemed to be granted |
13 | | only in conformance with and contingent upon compliance with |
14 | | the provisions of this Section.
|
15 | | (c) The Public Act enacting a new benefit increase must |
16 | | identify and provide for payment to the System of additional |
17 | | funding at least sufficient to fund the resulting annual |
18 | | increase in cost to the System as it accrues. |
19 | | Every new benefit increase is contingent upon the General |
20 | | Assembly providing the additional funding required under this |
21 | | subsection. The Commission on Government Forecasting and |
22 | | Accountability shall analyze whether adequate additional |
23 | | funding has been provided for the new benefit increase and |
24 | | shall report its analysis to the Public Pension Division of the |
25 | | Department of Financial and Professional Regulation. A new |
26 | | benefit increase created by a Public Act that does not include |
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1 | | the additional funding required under this subsection is null |
2 | | and void. If the Public Pension Division determines that the |
3 | | additional funding provided for a new benefit increase under |
4 | | this subsection is or has become inadequate, it may so certify |
5 | | to the Governor and the State Comptroller and, in the absence |
6 | | of corrective action by the General Assembly, the new benefit |
7 | | increase shall expire at the end of the fiscal year in which |
8 | | the certification is made.
|
9 | | (d) Every new benefit increase shall expire 5 years after |
10 | | its effective date or on such earlier date as may be specified |
11 | | in the language enacting the new benefit increase or provided |
12 | | under subsection (c). This does not prevent the General |
13 | | Assembly from extending or re-creating a new benefit increase |
14 | | by law. |
15 | | (e) Except as otherwise provided in the language creating |
16 | | the new benefit increase, a new benefit increase that expires |
17 | | under this Section continues to apply to persons who applied |
18 | | and qualified for the affected benefit while the new benefit |
19 | | increase was in effect and to the affected beneficiaries and |
20 | | alternate payees of such persons, but does not apply to any |
21 | | other person, including without limitation a person who |
22 | | continues in service after the expiration date and did not |
23 | | apply and qualify for the affected benefit while the new |
24 | | benefit increase was in effect.
|
25 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
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1 | | (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
|
2 | | Sec. 16-106. Teacher. "Teacher": The following |
3 | | individuals, provided
that, for employment prior to July 1, |
4 | | 1990, they are employed on a
full-time basis, or if not |
5 | | full-time, on a permanent and continuous basis
in a position in |
6 | | which services are expected to be rendered for at least
one |
7 | | school term:
|
8 | | (1) Any educational, administrative, professional or |
9 | | other staff employed
in the public common schools included |
10 | | within this system in a position
requiring certification |
11 | | under the law governing the certification of
teachers;
|
12 | | (2) Any educational, administrative, professional or |
13 | | other staff employed
in any facility of the Department of |
14 | | Children and Family Services or the
Department of Human |
15 | | Services, in a position requiring certification under
the |
16 | | law governing the certification of teachers, and any person |
17 | | who (i)
works in such a position for the Department of |
18 | | Corrections, (ii) was a member
of this System on May 31, |
19 | | 1987, and (iii) did not elect to become a member of
the |
20 | | State Employees' Retirement System pursuant to Section |
21 | | 14-108.2 of this
Code; except that "teacher" does not |
22 | | include any person who (A) becomes
a security employee of |
23 | | the Department of Human Services, as defined in
Section |
24 | | 14-110, after June 28, 2001 (the effective date of Public |
25 | | Act
92-14), or (B) becomes a member of the State Employees'
|
26 | | Retirement System pursuant to Section 14-108.2c of this |
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1 | | Code;
|
2 | | (3) Any regional superintendent of schools, assistant |
3 | | regional
superintendent of schools, State Superintendent |
4 | | of Education; any person
employed by the State Board of |
5 | | Education as an executive; any executive of
the boards |
6 | | engaged in the service of public common school education in
|
7 | | school districts covered under this system of which the |
8 | | State
Superintendent of Education is an ex-officio member;
|
9 | | (4) Any employee of a school board association |
10 | | operating in compliance
with Article 23 of the School Code |
11 | | who is certificated under the law
governing the |
12 | | certification of teachers , provided that he or she becomes |
13 | | such an employee before the effective date of this |
14 | | amendatory Act of the 98th General Assembly ;
|
15 | | (5) Any person employed by the retirement system
who:
|
16 | | (i) was an employee of and a participant in the |
17 | | system on August 17,
2001 (the effective date of Public |
18 | | Act 92-416), or
|
19 | | (ii) becomes an employee of the system on or after |
20 | | August 17, 2001;
|
21 | | (6) Any educational, administrative, professional or |
22 | | other staff
employed by and under the supervision and |
23 | | control of a regional
superintendent of schools, provided |
24 | | such employment position requires the
person to be |
25 | | certificated under the law governing the certification of
|
26 | | teachers and is in an educational program serving 2 or more |
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1 | | districts in
accordance with a joint agreement authorized |
2 | | by the School Code or by federal
legislation;
|
3 | | (7) Any educational, administrative, professional or |
4 | | other staff employed
in an educational program serving 2 or |
5 | | more school districts in accordance
with a joint agreement |
6 | | authorized by the School Code or by federal
legislation and |
7 | | in a position requiring certification under the laws
|
8 | | governing the certification of teachers;
|
9 | | (8) Any officer or employee of a statewide teacher |
10 | | organization or
officer of a national teacher organization |
11 | | who is certified under the law
governing certification of |
12 | | teachers, provided: (i) the individual had
previously |
13 | | established creditable service under this Article, (ii) |
14 | | the
individual files with the system an irrevocable |
15 | | election to become a member before the effective date of |
16 | | this amendatory Act of the 97th General Assembly,
(iii) the |
17 | | individual does not receive credit for such service under |
18 | | any
other Article of this Code, and (iv) the individual |
19 | | first became an officer or employee of the teacher |
20 | | organization and becomes a member before the effective date |
21 | | of this amendatory Act of the 97th General Assembly;
|
22 | | (9) Any educational, administrative, professional, or |
23 | | other staff
employed in a charter school operating in |
24 | | compliance with the Charter
Schools Law who is certificated |
25 | | under the law governing the certification
of teachers ; .
|
26 | | (10) Any person employed, on the effective date of this |
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1 | | amendatory Act of the 94th General Assembly, by the |
2 | | Macon-Piatt Regional Office of Education in a |
3 | | birth-through-age-three pilot program receiving funds |
4 | | under Section 2-389 of the School Code who is required by |
5 | | the Macon-Piatt Regional Office of Education to hold a |
6 | | teaching certificate, provided that the Macon-Piatt |
7 | | Regional Office of Education makes an election, within 6 |
8 | | months after the effective date of this amendatory Act of |
9 | | the 94th General Assembly, to have the person participate |
10 | | in the system. Any service established prior to the |
11 | | effective date of this amendatory Act of the 94th General |
12 | | Assembly for service as an employee of the Macon-Piatt |
13 | | Regional Office of Education in a birth-through-age-three |
14 | | pilot program receiving funds under Section 2-389 of the |
15 | | School Code shall be considered service as a teacher if |
16 | | employee and employer contributions have been received by |
17 | | the system and the system has not refunded those |
18 | | contributions.
|
19 | | An annuitant receiving a retirement annuity under this |
20 | | Article or under
Article 17 of this Code who is employed by a |
21 | | board of education
or other employer as permitted under Section |
22 | | 16-118
or 16-150.1 is not a "teacher" for purposes of this |
23 | | Article. A person who
has received a single-sum retirement |
24 | | benefit under Section 16-136.4 of this
Article is not a |
25 | | "teacher" for purposes of this Article.
|
26 | | (Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
|
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1 | | (40 ILCS 5/16-106.4 new) |
2 | | Sec. 16-106.4. Tier I member. "Tier I member": A member |
3 | | under this Article who first became a member or participant |
4 | | before January 1, 2011 under any reciprocal retirement system |
5 | | or pension fund established under this Code other than a |
6 | | retirement system or pension fund established under Article 2, |
7 | | 3, 4, 5, 6, or 18 of this Code. |
8 | | (40 ILCS 5/16-106.5 new) |
9 | | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former |
10 | | Tier I member who is receiving a retirement annuity.
|
11 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
|
12 | | Sec. 16-121. Salary. "Salary": The actual compensation |
13 | | received by a teacher during any
school year and recognized by |
14 | | the system in accordance with
rules of the board. For purposes |
15 | | of this Section, "school year" includes
the regular school term |
16 | | plus any additional period for which a teacher is
compensated |
17 | | and such compensation is recognized by the rules of the board.
|
18 | | Notwithstanding any other provision of this Code, the |
19 | | salary of a Tier I member for the purposes of this Code shall |
20 | | not exceed, for periods of service on or after the effective |
21 | | date of this amendatory Act of the 98th General Assembly, the |
22 | | greater of (i) the annual contribution and benefit base |
23 | | established for the applicable year by the Commissioner of |
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1 | | Social Security under the federal Social Security Act or (ii) |
2 | | the annual salary of the member during the 365 days immediately |
3 | | preceding the effective date of this Section; except that this |
4 | | limitation does not apply to a member's salary that is |
5 | | determined under an employment contract or collective |
6 | | bargaining agreement that is in effect on the effective date of |
7 | | this amendatory Act of the 98th General Assembly and has not |
8 | | been amended or renewed after that date. |
9 | | (Source: P.A. 84-1028.)
|
10 | | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
|
11 | | Sec. 16-127. Computation of creditable service.
|
12 | | (a) Each member shall receive regular credit for all
|
13 | | service as a teacher from the date membership begins, for which
|
14 | | satisfactory evidence is supplied and all contributions have |
15 | | been paid.
|
16 | | (b) The following periods of service shall earn optional |
17 | | credit and
each member shall receive credit for all such |
18 | | service for which
satisfactory evidence is supplied and all |
19 | | contributions have been paid as
of the date specified:
|
20 | | (1) Prior service as a teacher.
|
21 | | (2) Service in a capacity essentially similar or |
22 | | equivalent to that of a
teacher, in the public common |
23 | | schools in school districts in this State not
included |
24 | | within the provisions of this System, or of any other |
25 | | State,
territory, dependency or possession of the United |
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1 | | States, or in schools
operated by or under the auspices of |
2 | | the United States, or under the
auspices of any agency or |
3 | | department of any other State, and service during
any |
4 | | period of professional speech correction or special |
5 | | education
experience for a public agency within this State |
6 | | or any other State,
territory, dependency or possession of |
7 | | the United States, and service prior
to February 1, 1951 as |
8 | | a recreation worker for the Illinois Department of
Public |
9 | | Safety, for a period not exceeding the lesser of 2/5 of the |
10 | | total
creditable service of the member or 10 years. The |
11 | | maximum service of 10
years which is allowable under this |
12 | | paragraph shall be reduced by the
service credit which is |
13 | | validated by other retirement systems under
paragraph (i) |
14 | | of Section 15-113 and paragraph 1 of Section 17-133. Credit
|
15 | | granted under this paragraph may not be used in |
16 | | determination of a
retirement annuity or disability |
17 | | benefits unless the member has at least 5
years of |
18 | | creditable service earned subsequent to this employment |
19 | | with one
or more of the following systems: Teachers' |
20 | | Retirement System of the State
of Illinois, State |
21 | | Universities Retirement System, and the Public School
|
22 | | Teachers' Pension and Retirement Fund of Chicago. Whenever |
23 | | such service
credit exceeds the maximum allowed for all |
24 | | purposes of this Article, the
first service rendered in |
25 | | point of time shall be considered.
The changes to this |
26 | | subdivision (b)(2) made by Public Act 86-272 shall
apply |
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1 | | not only to persons who on or after its effective date |
2 | | (August 23,
1989) are in service as a teacher under the |
3 | | System, but also to persons
whose status as such a teacher |
4 | | terminated prior to such effective date,
whether or not |
5 | | such person is an annuitant on that date.
|
6 | | (3) Any periods immediately following teaching |
7 | | service, under this
System or under Article 17, (or |
8 | | immediately following service prior to
February 1, 1951 as |
9 | | a recreation worker for the Illinois Department of
Public |
10 | | Safety) spent in active service with the military forces of |
11 | | the
United States; periods spent in educational programs |
12 | | that prepare for
return to teaching sponsored by the |
13 | | federal government following such
active military service; |
14 | | if a teacher returns to teaching service within
one |
15 | | calendar year after discharge or after the completion of |
16 | | the
educational program, a further period, not exceeding |
17 | | one calendar year,
between time spent in military service |
18 | | or in such educational programs and
the return to |
19 | | employment as a teacher under this System; and a period of |
20 | | up
to 2 years of active military service not immediately |
21 | | following employment
as a teacher.
|
22 | | The changes to this Section and Section 16-128 relating |
23 | | to military
service made by P.A. 87-794 shall apply not |
24 | | only to persons who on or after its
effective date are in |
25 | | service as a teacher under the System, but also to
persons |
26 | | whose status as a teacher terminated prior to that date, |
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1 | | whether or not
the person is an annuitant on that date. In |
2 | | the case of an annuitant who
applies for credit allowable |
3 | | under this Section for a period of military
service that |
4 | | did not immediately follow employment, and who has made the
|
5 | | required contributions for such credit, the annuity shall |
6 | | be recalculated to
include the additional service credit, |
7 | | with the increase taking effect on the
date the System |
8 | | received written notification of the annuitant's intent to
|
9 | | purchase the credit, if payment of all the required |
10 | | contributions is made
within 60 days of such notice, or |
11 | | else on the first annuity payment date
following the date |
12 | | of payment of the required contributions. In calculating
|
13 | | the automatic annual increase for an annuity that has been |
14 | | recalculated under
this Section, the increase attributable |
15 | | to the additional service allowable
under P.A. 87-794 shall |
16 | | be included in the calculation of automatic annual
|
17 | | increases accruing after the effective date of the |
18 | | recalculation.
|
19 | | Credit for military service shall be determined as |
20 | | follows: if entry
occurs during the months of July, August, |
21 | | or September and the member was a
teacher at the end of the |
22 | | immediately preceding school term, credit shall
be granted |
23 | | from July 1 of the year in which he or she entered service; |
24 | | if
entry occurs during the school term and the teacher was |
25 | | in teaching service
at the beginning of the school term, |
26 | | credit shall be granted from July 1 of
such year. In all |
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1 | | other cases where credit for military service is allowed,
|
2 | | credit shall be granted from the date of entry into the |
3 | | service.
|
4 | | The total period of military service for which credit |
5 | | is granted shall
not exceed 5 years for any member unless |
6 | | the service: (A) is validated
before July 1, 1964, and (B) |
7 | | does not extend beyond July 1, 1963. Credit
for military |
8 | | service shall be granted under this Section only if not |
9 | | more
than 5 years of the military service for which credit |
10 | | is granted under this
Section is used by the member to |
11 | | qualify for a military retirement
allotment from any branch |
12 | | of the armed forces of the United States. The
changes to |
13 | | this subdivision (b)(3) made by Public Act 86-272 shall |
14 | | apply
not only to persons who on or after its effective |
15 | | date (August 23, 1989)
are in service as a teacher under |
16 | | the System, but also to persons whose
status as such a |
17 | | teacher terminated prior to such effective date, whether
or |
18 | | not such person is an annuitant on that date.
|
19 | | (4) Any periods served as a member of the General |
20 | | Assembly.
|
21 | | (5)(i) Any periods for which a teacher, as defined in |
22 | | Section
16-106, is granted a leave of absence, provided he |
23 | | or she returns to teaching
service creditable under this |
24 | | System or the State Universities Retirement
System |
25 | | following the leave; (ii) periods during which a teacher is
|
26 | | involuntarily laid off from teaching, provided he or she |
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1 | | returns to teaching
following the lay-off; (iii) periods |
2 | | prior to July 1, 1983 during which
a teacher ceased covered |
3 | | employment due to pregnancy, provided that the teacher
|
4 | | returned to teaching service creditable under this System |
5 | | or the State
Universities Retirement System following the |
6 | | pregnancy and submits evidence
satisfactory to the Board |
7 | | documenting that the employment ceased due to
pregnancy; |
8 | | and (iv) periods prior to July 1, 1983 during which a |
9 | | teacher
ceased covered employment for the purpose of |
10 | | adopting an infant under 3 years
of age or caring for a |
11 | | newly adopted infant under 3 years of age, provided that
|
12 | | the teacher returned to teaching service creditable under |
13 | | this System or the
State Universities Retirement System |
14 | | following the adoption and submits
evidence satisfactory |
15 | | to the Board documenting that the employment ceased for
the |
16 | | purpose of adopting an infant under 3 years of age or |
17 | | caring for a newly
adopted infant under 3 years of age. |
18 | | However, total credit under this
paragraph (5) may not |
19 | | exceed 3 years.
|
20 | | Any qualified member or annuitant may apply for credit |
21 | | under item (iii)
or (iv) of this paragraph (5) without |
22 | | regard to whether service was
terminated before the |
23 | | effective date of this amendatory Act of 1997. In the case |
24 | | of an annuitant who establishes credit under item (iii)
or |
25 | | (iv), the annuity shall be recalculated to include the |
26 | | additional
service credit. The increase in annuity shall |
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1 | | take effect on the date the
System receives written |
2 | | notification of the annuitant's intent to purchase the
|
3 | | credit, if the required evidence is submitted and the |
4 | | required contribution
paid within 60 days of that |
5 | | notification, otherwise on the first annuity
payment date |
6 | | following the System's receipt of the required evidence and
|
7 | | contribution. The increase in an annuity recalculated |
8 | | under this provision
shall be included in the calculation |
9 | | of automatic annual increases in the
annuity accruing after |
10 | | the effective date of the recalculation.
|
11 | | Optional credit may be purchased under this subsection |
12 | | (b)(5) for
periods during which a teacher has been granted |
13 | | a leave of absence pursuant
to Section 24-13 of the School |
14 | | Code. A teacher whose service under this
Article terminated |
15 | | prior to the effective date of P.A. 86-1488 shall be
|
16 | | eligible to purchase such optional credit. If a teacher who |
17 | | purchases this
optional credit is already receiving a |
18 | | retirement annuity under this Article,
the annuity shall be |
19 | | recalculated as if the annuitant had applied for the leave
|
20 | | of absence credit at the time of retirement. The difference |
21 | | between the
entitled annuity and the actual annuity shall |
22 | | be credited to the purchase of
the optional credit. The |
23 | | remainder of the purchase cost of the optional credit
shall |
24 | | be paid on or before April 1, 1992.
|
25 | | The change in this paragraph made by Public Act 86-273 |
26 | | shall
be applicable to teachers who retire after June 1, |
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1 | | 1989, as well as to
teachers who are in service on that |
2 | | date.
|
3 | | (6) Any days of unused and uncompensated accumulated |
4 | | sick leave earned
by a teacher who first became a |
5 | | participant in the System before the effective date of this |
6 | | amendatory Act of the 98th General Assembly . The service |
7 | | credit granted under this paragraph shall be the
ratio of |
8 | | the number of unused and uncompensated accumulated sick |
9 | | leave days
to 170 days, subject to a maximum of 2 years of |
10 | | service
credit. Prior to the member's retirement, each |
11 | | former employer shall
certify to the System the number of |
12 | | unused and uncompensated accumulated
sick leave days |
13 | | credited to the member at the time of termination of |
14 | | service.
The period of unused sick leave shall not be |
15 | | considered in determining
the effective date of |
16 | | retirement. A member is not required to make
contributions |
17 | | in order to obtain service credit for unused sick leave.
|
18 | | Credit for sick leave shall, at retirement, be granted |
19 | | by the System
for any retiring regional or assistant |
20 | | regional superintendent of schools
who first became a |
21 | | participant in this System before the effective date of |
22 | | this amendatory Act of the 98th General Assembly at the |
23 | | rate of 6 days per year of creditable service or portion |
24 | | thereof
established while serving as such superintendent |
25 | | or assistant
superintendent.
|
26 | | Service credit is not available for unused sick leave |
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1 | | accumulated by a teacher who first becomes a participant in |
2 | | this System on or after the effective date of this amendatory |
3 | | Act of the 98th General Assembly.
|
4 | | (7) Periods prior to February 1, 1987 served as an |
5 | | employee of the
Illinois Mathematics and Science Academy |
6 | | for which credit has not been
terminated under Section |
7 | | 15-113.9 of this Code.
|
8 | | (8) Service as a substitute teacher for work performed
|
9 | | prior to July 1, 1990.
|
10 | | (9) Service as a part-time teacher for work performed
|
11 | | prior to July 1, 1990.
|
12 | | (10) Up to 2 years of employment with Southern Illinois |
13 | | University -
Carbondale from September 1, 1959 to August |
14 | | 31, 1961, or with Governors
State University from September |
15 | | 1, 1972 to August 31, 1974, for which the
teacher has no |
16 | | credit under Article 15. To receive credit under this item
|
17 | | (10), a teacher must apply in writing to the Board and pay |
18 | | the required
contributions before May 1, 1993 and have at |
19 | | least 12 years of service
credit under this Article.
|
20 | | (b-1) A member may establish optional credit for up to 2 |
21 | | years of service
as a teacher or administrator employed by a |
22 | | private school recognized by the
Illinois State Board of |
23 | | Education, provided that the teacher (i) was certified
under |
24 | | the law governing the certification of teachers at the time the |
25 | | service
was rendered, (ii) applies in writing on or after |
26 | | August 1, 2009 and on or before
August 1, 2012, (iii) supplies |
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1 | | satisfactory evidence of the employment, (iv)
completes at |
2 | | least 10 years of contributing service as a teacher as defined |
3 | | in
Section 16-106, and (v) pays the contribution required in |
4 | | subsection (d-5) of
Section 16-128. The member may apply for |
5 | | credit under this subsection and pay
the required contribution |
6 | | before completing the 10 years of contributing
service required |
7 | | under item (iv), but the credit may not be used until the
item |
8 | | (iv) contributing service requirement has been met.
|
9 | | (c) The service credits specified in this Section shall be |
10 | | granted only
if: (1) such service credits are not used for |
11 | | credit in any other statutory
tax-supported public employee |
12 | | retirement system other than the federal Social
Security |
13 | | program; and (2) the member makes the required contributions as
|
14 | | specified in Section 16-128. Except as provided in subsection |
15 | | (b-1) of
this Section, the service credit shall be effective as |
16 | | of the date the
required contributions are completed.
|
17 | | Any service credits granted under this Section shall |
18 | | terminate upon
cessation of membership for any cause.
|
19 | | Credit may not be granted under this Section covering any |
20 | | period for
which an age retirement or disability retirement |
21 | | allowance has been paid.
|
22 | | (Source: P.A. 96-546, eff. 8-17-09.)
|
23 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
|
24 | | Sec. 16-133. Retirement annuity; amount.
|
25 | | (a) The amount of the retirement annuity shall be (i) in |
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1 | | the case of a person who first became a teacher under this |
2 | | Article before July 1, 2005, the larger of the
amounts |
3 | | determined under paragraphs (A) and (B) below, or (ii) in the |
4 | | case of a person who first becomes a teacher under this Article |
5 | | on or after July 1, 2005, the amount determined under the |
6 | | applicable provisions of paragraph (B):
|
7 | | (A) An amount consisting of the sum of the following:
|
8 | | (1) An amount that can be provided on an |
9 | | actuarially equivalent basis
by the member's |
10 | | accumulated contributions at the time of retirement; |
11 | | and
|
12 | | (2) The sum of (i) the amount that can be provided |
13 | | on an actuarially
equivalent basis by the member's |
14 | | accumulated contributions representing
service prior |
15 | | to July 1, 1947, and (ii) the amount that can be |
16 | | provided on
an actuarially equivalent basis by the |
17 | | amount obtained by multiplying 1.4
times the member's |
18 | | accumulated contributions covering service subsequent |
19 | | to
June 30, 1947; and
|
20 | | (3) If there is prior service, 2 times the amount |
21 | | that would have been
determined under subparagraph (2) |
22 | | of paragraph (A) above on account of
contributions |
23 | | which would have been made during the period of prior |
24 | | service
creditable to the member had the System been in |
25 | | operation and had the
member made contributions at the |
26 | | contribution rate in effect prior to
July 1, 1947.
|
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1 | | For the purpose of calculating the sum provided under |
2 | | this paragraph (A), the contribution required under |
3 | | subsection (a-5) of Section 16-152 shall not be considered |
4 | | when determining the amount of the member's accumulated |
5 | | contributions under subparagraph (1) or (2). |
6 | | This paragraph (A) does not apply to a person who first |
7 | | becomes a teacher under this Article on or after July 1, |
8 | | 2005.
|
9 | | (B) An amount consisting of the greater of the |
10 | | following:
|
11 | | (1) For creditable service earned before July 1, |
12 | | 1998 that has not
been augmented under Section |
13 | | 16-129.1: 1.67% of final average salary for
each of the |
14 | | first 10 years of creditable service, 1.90% of final |
15 | | average salary
for each year in excess of 10 but not |
16 | | exceeding 20, 2.10% of final average
salary for each |
17 | | year in excess of 20 but not exceeding 30, and 2.30% of |
18 | | final
average salary for each year in excess of 30; and
|
19 | | For creditable service earned on or after July 1, |
20 | | 1998 by a member who
has at least 24 years of |
21 | | creditable service on July 1, 1998 and who
does not |
22 | | elect to augment service under Section 16-129.1: 2.2% |
23 | | of final
average salary for each year of creditable |
24 | | service earned on or after July 1,
1998 but before the |
25 | | member reaches a total of 30 years of creditable |
26 | | service
and 2.3% of final average salary for each year |
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1 | | of creditable service earned
on or after July 1, 1998 |
2 | | and after the member reaches a total of 30 years of
|
3 | | creditable service; and
|
4 | | For all other creditable service: 2.2% of final |
5 | | average salary
for each year of creditable service; or
|
6 | | (2) 1.5% of final average salary for each year of
|
7 | | creditable service plus the sum $7.50 for each of the |
8 | | first 20 years of
creditable service.
|
9 | | The amount of the retirement annuity determined under this |
10 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month |
11 | | that the member is less than
age 60 at the time the |
12 | | retirement annuity begins. However, this reduction
shall |
13 | | not apply (i) if the member has at least 35 years of |
14 | | creditable service,
or (ii) if the member retires on |
15 | | account of disability under Section 16-149.2
of this |
16 | | Article with at least 20 years of creditable service, or |
17 | | (iii) if
the member (1) has earned during the period |
18 | | immediately preceding the last
day of service at least one |
19 | | year of contributing creditable service as an
employee of a |
20 | | department as defined in Section 14-103.04, (2) has earned |
21 | | at
least 5 years of contributing creditable service as an |
22 | | employee of a department
as defined in Section 14-103.04, |
23 | | (3) retires on or after January 1, 2001, and
(4) retires |
24 | | having attained an age which, when added to the number of |
25 | | years of
his or her total creditable service, equals at |
26 | | least 85. Portions of years
shall be counted as decimal |
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1 | | equivalents.
|
2 | | (b) For purposes of this Section, final average salary |
3 | | shall be the
average salary for the highest 4 consecutive years |
4 | | within the last 10 years
of creditable service as determined |
5 | | under rules of the board. The minimum
final average salary |
6 | | shall be considered to be $2,400 per year.
|
7 | | In the determination of final average salary for members |
8 | | other than
elected officials and their appointees when such |
9 | | appointees are allowed by
statute, that part of a member's |
10 | | salary for any year beginning after June
30, 1979 which exceeds |
11 | | the member's annual full-time salary rate with the
same |
12 | | employer for the preceding year by more than 20% shall be |
13 | | excluded.
The exclusion shall not apply in any year in which |
14 | | the member's creditable
earnings are less than 50% of the |
15 | | preceding year's mean salary for downstate
teachers as |
16 | | determined by the survey of school district salaries provided |
17 | | in
Section 2-3.103 of the School Code.
|
18 | | (c) In determining the amount of the retirement annuity |
19 | | under paragraph
(B) of this Section, a fractional year shall be |
20 | | granted proportional credit.
|
21 | | (d) The retirement annuity determined under paragraph (B) |
22 | | of this Section
shall be available only to members who render |
23 | | teaching service after July
1, 1947 for which member |
24 | | contributions are required, and to annuitants who
re-enter |
25 | | under the provisions of Section 16-150.
|
26 | | (e) The maximum retirement annuity provided under |
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1 | | paragraph (B) of this
Section shall be 75% of final average |
2 | | salary.
|
3 | | (f) A member retiring after the effective date of this |
4 | | amendatory Act
of 1998 shall receive a pension equal to 75% of |
5 | | final average salary if the
member is qualified to receive a |
6 | | retirement annuity equal to at least 74.6%
of final average |
7 | | salary under this Article or as proportional annuities under
|
8 | | Article 20 of this Code.
|
9 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
10 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
|
11 | | Sec. 16-133.1. Automatic annual increase in annuity.
|
12 | | (a) Each member with creditable service and retiring on or |
13 | | after August 26,
1969 is entitled to the automatic annual |
14 | | increases in annuity provided under
this Section while |
15 | | receiving a retirement annuity or disability retirement
|
16 | | annuity from the system.
|
17 | | An annuitant shall first be entitled to an initial increase |
18 | | under this
Section on the January 1 next following the first |
19 | | anniversary of retirement,
or January 1 of the year next |
20 | | following attainment of age 61, whichever is
later. At such |
21 | | time, the system shall pay an initial increase determined as
|
22 | | follows or as provided in subsections (a-1) and (a-2) :
|
23 | | (1) 1.5% of the originally granted retirement annuity |
24 | | or disability
retirement annuity multiplied by the number |
25 | | of years elapsed, if any, from the date of retirement
until |
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1 | | January 1, 1972, plus
|
2 | | (2) 2% of the originally granted annuity multiplied by |
3 | | the number of
years elapsed, if any, from the date of |
4 | | retirement or January
1, 1972, whichever is later, until |
5 | | January 1, 1978, plus
|
6 | | (3) 3% of the originally granted annuity multiplied by |
7 | | the number
of years elapsed from the date of retirement or |
8 | | January 1,
1978, whichever is later, until the effective |
9 | | date of the initial
increase.
|
10 | | However, the initial annual increase calculated under this |
11 | | Section for the
recipient of a disability retirement annuity |
12 | | granted under Section 16-149.2
shall be reduced by an amount |
13 | | equal to the total of all increases in that
annuity received |
14 | | under Section 16-149.5 (but not exceeding 100% of the amount
of |
15 | | the initial increase otherwise provided under this Section).
|
16 | | Following the initial increase, automatic annual increases |
17 | | in annuity shall
be payable on each January 1 thereafter during |
18 | | the lifetime of the annuitant,
determined as a percentage of |
19 | | the originally granted retirement annuity
or disability |
20 | | retirement annuity for increases granted prior to January
1, |
21 | | 1990, and calculated as a percentage of the total amount of |
22 | | annuity,
including previous increases under this Section, for |
23 | | increases granted on
or after January 1, 1990, as follows: 1.5% |
24 | | for periods prior to January 1,
1972, 2% for periods after |
25 | | December 31, 1971 and prior to January 1, 1978,
and 3% for |
26 | | periods after December 31, 1977 , or as provided in subsections |
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1 | | (a-1) and (a-2) .
|
2 | | (a-1) Notwithstanding any other provision of this Article, |
3 | | for a Tier I retiree, the amount of each automatic increase in |
4 | | retirement annuity occurring on or after the effective date of |
5 | | this amendatory Act of the 98th General Assembly shall be the |
6 | | lesser of (i) $750 or (ii) 3% of the total annuity
payable at |
7 | | the time of the increase, including previous increases granted. |
8 | | (a-2) Notwithstanding any other provision of this Article, |
9 | | the System shall not grant any new or additional automatic |
10 | | increase in retirement annuity to a Tier I retiree on or after |
11 | | the effective date of this amendatory Act of the 98th General |
12 | | Assembly and before January 1, 2017. |
13 | | Notwithstanding any other provision of this Article, the |
14 | | System shall not grant any new or additional automatic increase |
15 | | in retirement annuity to a Tier I retiree who has not yet |
16 | | attained the age of 67, regardless of any age augmentation |
17 | | granted under this Article as an early retirement incentive. |
18 | | If on the effective date of this amendatory Act of the 98th |
19 | | General Assembly a Tier I retiree has already received an |
20 | | annual increase under this Section but does not yet meet the |
21 | | new eligibility requirements of this subsection, the annual |
22 | | increases already received shall continue in force, but no |
23 | | additional annual increase shall be granted until the Tier I |
24 | | retiree meets the new eligibility requirements. |
25 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
26 | | and (a-2) apply without regard to whether or not the Tier I |
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1 | | retiree is in active service under this Article on or after the |
2 | | effective date of this amendatory Act of the 98th General |
3 | | Assembly. |
4 | | (b) The automatic annual increases in annuity provided |
5 | | under this Section
shall not be applicable unless a member has |
6 | | made contributions toward such
increases for a period |
7 | | equivalent to one full year of creditable service.
If a member |
8 | | contributes for service performed after August 26, 1969 but
the |
9 | | member becomes an annuitant before such contributions amount to |
10 | | one
full year's contributions based on the salary at the date |
11 | | of retirement,
he or she may pay the necessary balance of the |
12 | | contributions to the system
and be eligible for the automatic |
13 | | annual increases in annuity provided under
this Section.
|
14 | | (c) Each member shall make contributions toward the cost of |
15 | | the automatic
annual increases in annuity as provided under |
16 | | Section 16-152.
|
17 | | (d) An annuitant receiving a retirement annuity or |
18 | | disability retirement
annuity on July 1, 1969, who subsequently |
19 | | re-enters service as a teacher
is eligible for the automatic |
20 | | annual increases in annuity provided under
this Section if he |
21 | | or she renders at least one year of creditable service
|
22 | | following the latest re-entry.
|
23 | | (e) In addition to the automatic annual increases in |
24 | | annuity provided
under this Section, an annuitant who meets the |
25 | | service requirements of this
Section and whose retirement |
26 | | annuity or disability retirement annuity began
on or before |
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1 | | January 1, 1971 shall receive, on January 1, 1981, an increase
|
2 | | in the annuity then being paid of one dollar per month for each |
3 | | year of
creditable service. On January 1, 1982, an annuitant |
4 | | whose retirement
annuity or disability retirement annuity |
5 | | began on or before January 1, 1977
shall receive an increase in |
6 | | the annuity then being paid of one dollar per
month for each |
7 | | year of creditable service.
|
8 | | On January 1, 1987, any annuitant whose retirement annuity |
9 | | began
on or before January 1, 1977, shall receive an increase |
10 | | in the monthly
retirement annuity equal to 8¢ per year of |
11 | | creditable service times the
number of years that have elapsed |
12 | | since the annuity began.
|
13 | | (Source: P.A. 91-927, eff. 12-14-00.)
|
14 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
|
15 | | Sec. 16-152. Contributions by members.
|
16 | | (a) Each member shall make contributions for membership |
17 | | service to this
System as follows:
|
18 | | (1) Effective July 1, 1998, contributions of 7.50% of |
19 | | salary towards the
cost of the retirement annuity. Such |
20 | | contributions shall be deemed "normal
contributions".
|
21 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% |
22 | | of salary toward
the cost of the automatic annual increase |
23 | | in retirement annuity provided
under Section 16-133.1.
|
24 | | (3) Effective July 24, 1959, contributions of 1% of |
25 | | salary towards the
cost of survivor benefits. Such |
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1 | | contributions shall not be credited to
the individual |
2 | | account of the member and shall not be subject to refund
|
3 | | except as provided under Section 16-143.2.
|
4 | | (4) Effective July 1, 2005, contributions of 0.40% of |
5 | | salary toward the cost of the early retirement without |
6 | | discount option provided under Section 16-133.2. This |
7 | | contribution shall cease upon termination of the early |
8 | | retirement without discount option as provided in Section |
9 | | 16-176.
|
10 | | (a-5) In addition to the contributions otherwise required |
11 | | under this Article, each Tier I member shall also make the |
12 | | following contributions toward the cost of the retirement |
13 | | annuity from each payment
of salary: |
14 | | (1) beginning July 1, 2013 and through June 30, 2014, |
15 | | 1% of salary; and |
16 | | (2) beginning on July 1, 2014, 2% of salary. |
17 | | Except as otherwise specified, these contributions are to |
18 | | be considered as normal contributions for purposes
of this |
19 | | Article. |
20 | | (b) The minimum required contribution for any year of |
21 | | full-time
teaching service shall be $192.
|
22 | | (c) Contributions shall not be required of any annuitant |
23 | | receiving
a retirement annuity who is given employment as |
24 | | permitted under Section 16-118 or 16-150.1.
|
25 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
26 | | retires with
more than 34 years of creditable service, and |
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1 | | (iii) does not elect to qualify
for the augmented rate under |
2 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
3 | | to receive a partial refund of contributions made under this
|
4 | | Section for service occurring after the later of June 30, 1998 |
5 | | or attainment
of 34 years of creditable service, in an amount |
6 | | equal to 1.00% of the salary
upon which those contributions |
7 | | were based.
|
8 | | (e) A member's contributions toward the cost of early |
9 | | retirement without discount made under item (a)(4) of this |
10 | | Section shall not be refunded if the member has elected early |
11 | | retirement without discount under Section 16-133.2 and has |
12 | | begun to receive a retirement annuity under this Article |
13 | | calculated in accordance with that election. Otherwise, a |
14 | | member's contributions toward the cost of early retirement |
15 | | without discount made under item (a)(4) of this Section shall |
16 | | be refunded according to whichever one of the following |
17 | | circumstances occurs first: |
18 | | (1) The contributions shall be refunded to the member, |
19 | | without interest, within 120 days after the member's |
20 | | retirement annuity commences, if the member does not elect |
21 | | early retirement without discount under Section 16-133.2. |
22 | | (2) The contributions shall be included, without |
23 | | interest, in any refund claimed by the member under Section |
24 | | 16-151. |
25 | | (3) The contributions shall be refunded to the member's |
26 | | designated beneficiary (or if there is no beneficiary, to |
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1 | | the member's estate), without interest, if the member dies |
2 | | without having begun to receive a retirement annuity under |
3 | | this Article. |
4 | | (4) The contributions shall be refunded to the member, |
5 | | without interest, within 120 days after the early |
6 | | retirement without discount option provided under Section |
7 | | 16-133.2 is terminated under Section 16-176.
|
8 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
|
9 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
|
10 | | Sec. 16-158. Contributions by State and other employing |
11 | | units.
|
12 | | (a) The State shall make contributions to the System by |
13 | | means of
appropriations from the Common School Fund and other |
14 | | State funds of amounts
which, together with other employer |
15 | | contributions, employee contributions,
investment income, and |
16 | | other income, will be sufficient to meet the cost of
|
17 | | maintaining and administering the System on a 100% 90% funded |
18 | | basis in accordance
with actuarial recommendations by the end |
19 | | of State fiscal year 2043 .
|
20 | | The Board shall determine the amount of State contributions |
21 | | required for
each fiscal year on the basis of the actuarial |
22 | | tables and other assumptions
adopted by the Board and the |
23 | | recommendations of the actuary, using the formula
in subsection |
24 | | (b-3).
|
25 | | (a-1) Annually, on or before November 15 through until |
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1 | | November 15, 2011, the Board shall certify to the
Governor the |
2 | | amount of the required State contribution for the coming fiscal
|
3 | | year. The certification under this subsection (a-1) shall |
4 | | include a copy of the actuarial recommendations
upon which it |
5 | | is based and shall specifically identify the System's projected |
6 | | State normal cost for that fiscal year .
|
7 | | On or before May 1, 2004, the Board shall recalculate and |
8 | | recertify to
the Governor the amount of the required State |
9 | | contribution to the System for
State fiscal year 2005, taking |
10 | | into account the amounts appropriated to and
received by the |
11 | | System under subsection (d) of Section 7.2 of the General
|
12 | | Obligation Bond Act.
|
13 | | On or before July 1, 2005, 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 2006, taking |
16 | | into account the changes in required State contributions made |
17 | | by this amendatory Act of the 94th General Assembly.
|
18 | | On or before April 1, 2011, the Board shall recalculate and |
19 | | recertify to the Governor the amount of the required State |
20 | | contribution to the System for State fiscal year 2011, applying |
21 | | the changes made by Public Act 96-889 to the System's assets |
22 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
23 | | was approved on that date. |
24 | | (a-5) On or before November 1 of each year, beginning |
25 | | November 1, 2012, the Board shall submit to the State Actuary, |
26 | | the Governor, and the General Assembly a proposed certification |
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1 | | of the amount of the required State contribution to the System |
2 | | for the next fiscal year, along with all of the actuarial |
3 | | assumptions, calculations, and data upon which that proposed |
4 | | certification is based. On or before January 1 of each year, |
5 | | beginning January 1, 2013, the State Actuary shall issue a |
6 | | preliminary report concerning the proposed certification and |
7 | | identifying, if necessary, recommended changes in actuarial |
8 | | assumptions that the Board must consider before finalizing its |
9 | | certification of the required State contributions. |
10 | | On or before January 15, 2013 and each January 15 |
11 | | thereafter, the Board shall certify to the Governor and the |
12 | | General Assembly the amount of the required State contribution |
13 | | for the next fiscal year. The certification shall include a |
14 | | copy of the actuarial
recommendations upon which it is based |
15 | | and shall specifically identify the System's projected State |
16 | | normal cost for that fiscal year. The Board's certification |
17 | | must note any deviations from the State Actuary's recommended |
18 | | changes, the reason or reasons for not following the State |
19 | | Actuary's recommended changes, and the fiscal impact of not |
20 | | following the State Actuary's recommended changes on the |
21 | | required State contribution. |
22 | | (b) Through State fiscal year 1995, the State contributions |
23 | | shall be
paid to the System in accordance with Section 18-7 of |
24 | | the School Code.
|
25 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
26 | | of each month,
or as soon thereafter as may be practicable, the |
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1 | | Board shall submit vouchers
for payment of State contributions |
2 | | to the System, in a total monthly amount of
one-twelfth of the |
3 | | required annual State contribution certified under
subsection |
4 | | (a-1).
From the
effective date of this amendatory Act of the |
5 | | 93rd General Assembly
through June 30, 2004, the Board shall |
6 | | not submit vouchers for the
remainder of fiscal year 2004 in |
7 | | excess of the fiscal year 2004
certified contribution amount |
8 | | determined under this Section
after taking into consideration |
9 | | the transfer to the System
under subsection (a) of Section |
10 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
11 | | the State Comptroller and
Treasurer by warrants drawn on the |
12 | | funds appropriated to the System for that
fiscal year.
|
13 | | If in any month the amount remaining unexpended from all |
14 | | other appropriations
to the System for the applicable fiscal |
15 | | year (including the appropriations to
the System under Section |
16 | | 8.12 of the State Finance Act and Section 1 of the
State |
17 | | Pension Funds Continuing Appropriation Act) is less than the |
18 | | amount
lawfully vouchered under this subsection, the |
19 | | difference shall be paid from the
Common School Fund under the |
20 | | continuing appropriation authority provided in
Section 1.1 of |
21 | | the State Pension Funds Continuing Appropriation Act.
|
22 | | (b-2) Allocations from the Common School Fund apportioned |
23 | | to school
districts not coming under this System shall not be |
24 | | diminished or affected by
the provisions of this Article.
|
25 | | (b-3) For State fiscal years 2014 through 2043, the minimum |
26 | | contribution
to the System to be made by the State for each |
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1 | | fiscal year shall be an amount
determined by the System to be |
2 | | equal to the sum of (1) the State's portion of the projected |
3 | | normal cost for that fiscal year, plus (2) an amount sufficient |
4 | | to bring the total assets of the
System up to 100% of the total |
5 | | actuarial liabilities of the System by the end of
State fiscal |
6 | | year 2043. In making these determinations, the required State
|
7 | | contribution shall be calculated each year as a level |
8 | | percentage of payroll
over the years remaining to and including |
9 | | fiscal year 2043 and shall be
determined under the projected |
10 | | unit credit actuarial cost method. |
11 | | For State fiscal year 2044 and thereafter, the minimum |
12 | | State contribution for each fiscal year shall be the amount |
13 | | needed to maintain the total assets of the System at 100% of |
14 | | the total actuarial liabilities of the System. |
15 | | For State fiscal years 2012 and 2013 through 2045 , the |
16 | | minimum contribution
to the System to be made by the State for |
17 | | each fiscal year shall be an amount
determined by the System to |
18 | | be sufficient to bring the total assets of the
System up to 90% |
19 | | of the total actuarial liabilities of the System by the end of
|
20 | | State fiscal year 2045. In making these determinations, the |
21 | | required State
contribution shall be calculated each year as a |
22 | | level percentage of payroll
over the years remaining to and |
23 | | including fiscal year 2045 and shall be
determined under the |
24 | | projected unit credit actuarial cost method.
|
25 | | For State fiscal years 1996 through 2005, the State |
26 | | contribution to the
System, as a percentage of the applicable |
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1 | | employee payroll, shall be increased
in equal annual increments |
2 | | so that by State fiscal year 2011, the State is
contributing at |
3 | | the rate required under this Section; except that in the
|
4 | | following specified State fiscal years, the State contribution |
5 | | to the System
shall not be less than the following indicated |
6 | | percentages of the applicable
employee payroll, even if the |
7 | | indicated percentage will produce a State
contribution in |
8 | | excess of the amount otherwise required under this subsection
|
9 | | and subsection (a), and notwithstanding any contrary |
10 | | certification made under
subsection (a-1) before the effective |
11 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
12 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
13 | | 2003; and
13.56% in FY 2004.
|
14 | | Notwithstanding any other provision of this Article, the |
15 | | total required State
contribution for State fiscal year 2006 is |
16 | | $534,627,700.
|
17 | | Notwithstanding any other provision of this Article, the |
18 | | total required State
contribution for State fiscal year 2007 is |
19 | | $738,014,500.
|
20 | | For each of State fiscal years 2008 through 2009, the State |
21 | | contribution to
the System, as a percentage of the applicable |
22 | | employee payroll, shall be
increased in equal annual increments |
23 | | from the required State contribution for State fiscal year |
24 | | 2007, so that by State fiscal year 2011, the
State is |
25 | | contributing at the rate otherwise required under this Section.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State contribution for State fiscal year 2010 is |
2 | | $2,089,268,000 and shall be made from the proceeds of bonds |
3 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
4 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
5 | | expenses determined by the System's share of total bond |
6 | | proceeds, (ii) any amounts received from the Common School Fund |
7 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
8 | | due to the issuance of discounted bonds, if applicable. |
9 | | Notwithstanding any other provision of this Article, the
|
10 | | total required State contribution for State fiscal year 2011 is
|
11 | | the amount recertified by the System on or before April 1, 2011 |
12 | | pursuant to subsection (a-1) of this Section and shall be made |
13 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
14 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
15 | | pro rata share of bond sale
expenses determined by the System's |
16 | | share of total bond
proceeds, (ii) any amounts received from |
17 | | the Common School Fund
in fiscal year 2011, and (iii) any |
18 | | reduction in bond proceeds
due to the issuance of discounted |
19 | | bonds, if applicable. This amount shall include, in addition to |
20 | | the amount certified by the System, an amount necessary to meet |
21 | | employer contributions required by the State as an employer |
22 | | under paragraph (e) of this Section, which may also be used by |
23 | | the System for contributions required by paragraph (a) of |
24 | | Section 16-127. |
25 | | Beginning in State fiscal year 2046, the minimum State |
26 | | contribution for
each fiscal year shall be the amount needed to |
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1 | | maintain the total assets of
the System at 90% of the total |
2 | | actuarial liabilities of the System.
|
3 | | Amounts received by the System pursuant to Section 25 of |
4 | | the Budget Stabilization Act or Section 8.12 of the State |
5 | | Finance Act in any fiscal year do not reduce and do not |
6 | | constitute payment of any portion of the minimum State |
7 | | contribution required under this Article in that fiscal year. |
8 | | Such amounts shall not reduce, and shall not be included in the |
9 | | calculation of, the required State contributions under this |
10 | | Article in any future year until the System has reached a |
11 | | funding ratio of at least 100% 90% . A reference in this Article |
12 | | to the "required State contribution" or any substantially |
13 | | similar term does not include or apply to any amounts payable |
14 | | to the System under Section 25 of the Budget Stabilization Act. |
15 | | Notwithstanding any other provision of this Code or the |
16 | | Budget Stabilization Act, amounts transferred to the System |
17 | | pursuant to the Budget Stabilization Act after the effective |
18 | | date of this amendatory Act of the 98th General Assembly do not |
19 | | reduce and do not constitute payment of any portion of the |
20 | | required State contribution under this Article in that fiscal |
21 | | year. Such amounts shall not reduce, and shall not be included |
22 | | in the calculation of, the required State contributions under |
23 | | this Article in any future year until the System has received |
24 | | payment of contributions pursuant to the Budget Stabilization |
25 | | Act. |
26 | | Notwithstanding any other provision of this Section, the |
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1 | | required State
contribution for State fiscal year 2005 and for |
2 | | fiscal year 2008 and each fiscal year thereafter through State |
3 | | fiscal year 2013 , as
calculated under this Section and
|
4 | | certified under subsection (a-1), shall not exceed an amount |
5 | | equal to (i) the
amount of the required State contribution that |
6 | | would have been calculated under
this Section for that fiscal |
7 | | year if the System had not received any payments
under |
8 | | subsection (d) of Section 7.2 of the General Obligation Bond |
9 | | Act, minus
(ii) the portion of the State's total debt service |
10 | | payments for that fiscal
year on the bonds issued in fiscal |
11 | | year 2003 for the purposes of that Section 7.2, as determined
|
12 | | and certified by the Comptroller, that is the same as the |
13 | | System's portion of
the total moneys distributed under |
14 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
15 | | Act. In determining this maximum for State fiscal years 2008 |
16 | | through 2010, however, the amount referred to in item (i) shall |
17 | | be increased, as a percentage of the applicable employee |
18 | | payroll, in equal increments calculated from the sum of the |
19 | | required State contribution for State fiscal year 2007 plus the |
20 | | applicable portion of the State's total debt service payments |
21 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
22 | | for the purposes of Section 7.2 of the General
Obligation Bond |
23 | | Act, so that, by State fiscal year 2011, the
State is |
24 | | contributing at the rate otherwise required under this Section.
|
25 | | (c) Payment of the required State contributions and of all |
26 | | pensions,
retirement annuities, death benefits, refunds, and |
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1 | | other benefits granted
under or assumed by this System, and all |
2 | | expenses in connection with the
administration and operation |
3 | | thereof, are obligations of the State.
|
4 | | If members are paid from special trust or federal funds |
5 | | which are
administered by the employing unit, whether school |
6 | | district or other
unit, the employing unit shall pay to the |
7 | | System from such
funds the full accruing retirement costs based |
8 | | upon that
service, as determined by the System. Employer |
9 | | contributions, based on
salary paid to members from federal |
10 | | funds, may be forwarded by the distributing
agency of the State |
11 | | of Illinois to the System prior to allocation, in an
amount |
12 | | determined in accordance with guidelines established by such
|
13 | | agency and the System.
|
14 | | (d) Effective July 1, 1986, any employer of a teacher as |
15 | | defined in
paragraph (8) of Section 16-106 shall pay the |
16 | | employer's normal cost
of benefits based upon the teacher's |
17 | | service, in addition to
employee contributions, as determined |
18 | | by the System. Such employer
contributions shall be forwarded |
19 | | monthly in accordance with guidelines
established by the |
20 | | System.
|
21 | | However, with respect to benefits granted under Section |
22 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
23 | | of Section 16-106, the
employer's contribution shall be 12% |
24 | | (rather than 20%) of the member's
highest annual salary rate |
25 | | for each year of creditable service granted, and
the employer |
26 | | shall also pay the required employee contribution on behalf of
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1 | | the teacher. For the purposes of Sections 16-133.4 and |
2 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
3 | | 16-106 who is serving in that capacity
while on leave of |
4 | | absence from another employer under this Article shall not
be |
5 | | considered an employee of the employer from which the teacher |
6 | | is on leave.
|
7 | | (e) Beginning July 1, 1998, every employer of a teacher
|
8 | | shall pay to the System an employer contribution computed as |
9 | | follows:
|
10 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
11 | | employer
contribution shall be equal to 0.3% of each |
12 | | teacher's salary.
|
13 | | (2) Beginning July 1, 1999 and thereafter, the employer
|
14 | | contribution shall be equal to 0.58% of each teacher's |
15 | | salary.
|
16 | | The school district or other employing unit may pay these |
17 | | employer
contributions out of any source of funding available |
18 | | for that purpose and
shall forward the contributions to the |
19 | | System on the schedule established
for the payment of member |
20 | | contributions.
|
21 | | These employer contributions are intended to offset a |
22 | | portion of the cost
to the System of the increases in |
23 | | retirement benefits resulting from this
amendatory Act of 1998.
|
24 | | Each employer of teachers is entitled to a credit against |
25 | | the contributions
required under this subsection (e) with |
26 | | respect to salaries paid to teachers
for the period January 1, |
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1 | | 2002 through June 30, 2003, equal to the amount paid
by that |
2 | | employer under subsection (a-5) of Section 6.6 of the State |
3 | | Employees
Group Insurance Act of 1971 with respect to salaries |
4 | | paid to teachers for that
period.
|
5 | | The additional 1% employee contribution required under |
6 | | Section 16-152 by
this amendatory Act of 1998 is the |
7 | | responsibility of the teacher and not the
teacher's employer, |
8 | | unless the employer agrees, through collective bargaining
or |
9 | | otherwise, to make the contribution on behalf of the teacher.
|
10 | | If an employer is required by a contract in effect on May |
11 | | 1, 1998 between the
employer and an employee organization to |
12 | | pay, on behalf of all its full-time
employees
covered by this |
13 | | Article, all mandatory employee contributions required under
|
14 | | this Article, then the employer shall be excused from paying |
15 | | the employer
contribution required under this subsection (e) |
16 | | for the balance of the term
of that contract. The employer and |
17 | | the employee organization shall jointly
certify to the System |
18 | | the existence of the contractual requirement, in such
form as |
19 | | the System may prescribe. This exclusion shall cease upon the
|
20 | | termination, extension, or renewal of the contract at any time |
21 | | after May 1,
1998.
|
22 | | (f) If the amount of a teacher's salary for any school year |
23 | | used to determine final average salary exceeds the member's |
24 | | annual full-time salary rate with the same employer for the |
25 | | previous school year by more than 6%, the teacher's employer |
26 | | shall pay to the System, in addition to all other payments |
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1 | | required under this Section and in accordance with guidelines |
2 | | established by the System, the present value of the increase in |
3 | | benefits resulting from the portion of the increase in salary |
4 | | that is in excess of 6%. This present value shall be computed |
5 | | by the System on the basis of the actuarial assumptions and |
6 | | tables used in the most recent actuarial valuation of the |
7 | | System that is available at the time of the computation. If a |
8 | | teacher's salary for the 2005-2006 school year is used to |
9 | | determine final average salary under this subsection (f), then |
10 | | the changes made to this subsection (f) by Public Act 94-1057 |
11 | | shall apply in calculating whether the increase in his or her |
12 | | salary is in excess of 6%. For the purposes of this Section, |
13 | | change in employment under Section 10-21.12 of the School Code |
14 | | on or after June 1, 2005 shall constitute a change in employer. |
15 | | The System may require the employer to provide any pertinent |
16 | | information or documentation.
The changes made to this |
17 | | subsection (f) by this amendatory Act of the 94th General |
18 | | Assembly apply without regard to whether the teacher was in |
19 | | service on or after its effective date.
|
20 | | Whenever it determines that a payment is or may be required |
21 | | under this subsection, the System shall calculate the amount of |
22 | | the payment and bill the employer for that amount. The bill |
23 | | shall specify the calculations used to determine the amount |
24 | | due. If the employer disputes the amount of the bill, it may, |
25 | | within 30 days after receipt of the bill, apply to the System |
26 | | in writing for a recalculation. The application must specify in |
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1 | | detail the grounds of the dispute and, if the employer asserts |
2 | | that the calculation is subject to subsection (g) or (h) of |
3 | | this Section, must include an affidavit setting forth and |
4 | | attesting to all facts within the employer's knowledge that are |
5 | | pertinent to the applicability of that subsection. Upon |
6 | | receiving a timely application for recalculation, the System |
7 | | shall review the application and, if appropriate, recalculate |
8 | | the amount due.
|
9 | | The employer contributions required under this subsection |
10 | | (f) may be paid in the form of a lump sum within 90 days after |
11 | | receipt of the bill. If the employer contributions are not paid |
12 | | within 90 days after receipt of the bill, then interest will be |
13 | | charged at a rate equal to the System's annual actuarially |
14 | | assumed rate of return on investment compounded annually from |
15 | | the 91st day after receipt of the bill. Payments must be |
16 | | concluded within 3 years after the employer's receipt of the |
17 | | bill.
|
18 | | (g) This subsection (g) applies only to payments made or |
19 | | salary increases given on or after June 1, 2005 but before July |
20 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
21 | | require the System to refund any payments received before
July |
22 | | 31, 2006 (the effective date of Public Act 94-1057). |
23 | | When assessing payment for any amount due under subsection |
24 | | (f), the System shall exclude salary increases paid to teachers |
25 | | under contracts or collective bargaining agreements entered |
26 | | into, amended, or renewed before June 1, 2005.
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1 | | When assessing payment for any amount due under subsection |
2 | | (f), the System shall exclude salary increases paid to a |
3 | | teacher at a time when the teacher is 10 or more years from |
4 | | retirement eligibility under Section 16-132 or 16-133.2.
|
5 | | When assessing payment for any amount due under subsection |
6 | | (f), the System shall exclude salary increases resulting from |
7 | | overload work, including summer school, when the school |
8 | | district has certified to the System, and the System has |
9 | | approved the certification, that (i) the overload work is for |
10 | | the sole purpose of classroom instruction in excess of the |
11 | | standard number of classes for a full-time teacher in a school |
12 | | district during a school year and (ii) the salary increases are |
13 | | equal to or less than the rate of pay for classroom instruction |
14 | | computed on the teacher's current salary and work schedule.
|
15 | | When assessing payment for any amount due under subsection |
16 | | (f), the System shall exclude a salary increase resulting from |
17 | | a promotion (i) for which the employee is required to hold a |
18 | | certificate or supervisory endorsement issued by the State |
19 | | Teacher Certification Board that is a different certification |
20 | | or supervisory endorsement than is required for the teacher's |
21 | | previous position and (ii) to a position that has existed and |
22 | | been filled by a member for no less than one complete academic |
23 | | year and the salary increase from the promotion is an increase |
24 | | that results in an amount no greater than the lesser of the |
25 | | average salary paid for other similar positions in the district |
26 | | requiring the same certification or the amount stipulated in |
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1 | | the collective bargaining agreement for a similar position |
2 | | requiring the same certification.
|
3 | | When assessing payment for any amount due under subsection |
4 | | (f), the System shall exclude any payment to the teacher from |
5 | | the State of Illinois or the State Board of Education over |
6 | | which the employer does not have discretion, notwithstanding |
7 | | that the payment is included in the computation of final |
8 | | average salary.
|
9 | | (h) When assessing payment for any amount due under |
10 | | subsection (f), the System shall exclude any salary increase |
11 | | described in subsection (g) of this Section given on or after |
12 | | July 1, 2011 but before July 1, 2014 under a contract or |
13 | | collective bargaining agreement entered into, amended, or |
14 | | renewed on or after June 1, 2005 but before July 1, 2011. |
15 | | Notwithstanding any other provision of this Section, any |
16 | | payments made or salary increases given after June 30, 2014 |
17 | | shall be used in assessing payment for any amount due under |
18 | | subsection (f) of this Section.
|
19 | | (i) The System shall prepare a report and file copies of |
20 | | the report with the Governor and the General Assembly by |
21 | | January 1, 2007 that contains all of the following information: |
22 | | (1) The number of recalculations required by the |
23 | | changes made to this Section by Public Act 94-1057 for each |
24 | | employer. |
25 | | (2) The dollar amount by which each employer's |
26 | | contribution to the System was changed due to |
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1 | | recalculations required by Public Act 94-1057. |
2 | | (3) The total amount the System received from each |
3 | | employer as a result of the changes made to this Section by |
4 | | Public Act 94-4. |
5 | | (4) The increase in the required State contribution |
6 | | resulting from the changes made to this Section by Public |
7 | | Act 94-1057.
|
8 | | (j) For purposes of determining the required State |
9 | | contribution to the System, the value of the System's assets |
10 | | shall be equal to the actuarial value of the System's assets, |
11 | | which shall be calculated as follows: |
12 | | As of June 30, 2008, the actuarial value of the System's |
13 | | assets shall be equal to the market value of the assets as of |
14 | | that date. In determining the actuarial value of the System's |
15 | | assets for fiscal years after June 30, 2008, any actuarial |
16 | | gains or losses from investment return incurred in a fiscal |
17 | | year shall be recognized in equal annual amounts over the |
18 | | 5-year period following that fiscal year. |
19 | | (k) For purposes of determining the required State |
20 | | contribution to the system for a particular year, the actuarial |
21 | | value of assets shall be assumed to earn a rate of return equal |
22 | | to the system's actuarially assumed rate of return. |
23 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
24 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
25 | | 6-18-12; 97-813, eff. 7-13-12.)
|
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1 | | (40 ILCS 5/16-158.2 new) |
2 | | Sec. 16-158.2. Obligations of State; funding guarantee. |
3 | | Beginning July 1, 2013, the State shall be contractually |
4 | | obligated to contribute to the System under Section 16-158 in |
5 | | each State fiscal year an amount not less than the sum of (i) |
6 | | the State's normal cost for that year and
(ii) the portion of |
7 | | the unfunded accrued liability assigned to that year by law in |
8 | | accordance with a schedule that distributes payments equitably |
9 | | over a reasonable period of time and in accordance with |
10 | | accepted actuarial practices. The obligations created under |
11 | | this subsection (b) are contractual obligations protected and |
12 | | enforceable under Article I, Section 16 and Article XIII, |
13 | | Section 5 of the Illinois Constitution. |
14 | | Notwithstanding any other provision of law, if the State |
15 | | fails to pay in a State fiscal year the amount guaranteed under |
16 | | this subsection, the System may bring a mandamus action in the |
17 | | Circuit Court of Sangamon County to compel the State to make |
18 | | that payment, irrespective of other remedies that
may be |
19 | | available to the System. In ordering the State to make the |
20 | | required payment, the court may order a reasonable payment |
21 | | schedule to enable the State to make the required payment |
22 | | without significantly imperiling the public health, safety, or |
23 | | welfare. |
24 | | Any payments required to be made by the State pursuant to |
25 | | this Section are expressly subordinated to the payment of the |
26 | | principal, interest, and premium, if any, on any
bonded debt |
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1 | | obligation of the State or any other State-created entity, |
2 | | either currently outstanding or to
be issued, for which the |
3 | | source of repayment or security thereon is derived directly or |
4 | | indirectly from
tax revenues collected by the State or any |
5 | | other State-created entity. Payments on such bonded
|
6 | | obligations include any statutory fund transfers or other |
7 | | prefunding mechanisms or formulas set forth,
now or hereafter, |
8 | | in State law or bond indentures, into debt service funds or |
9 | | accounts of the State
related to such bonded obligations, |
10 | | consistent with the payment schedules associated with such
|
11 | | obligations. |
12 | | (40 ILCS 5/16-203)
|
13 | | Sec. 16-203. Application and expiration of new benefit |
14 | | increases. |
15 | | (a) As used in this Section, "new benefit increase" means |
16 | | an increase in the amount of any benefit provided under this |
17 | | Article, or an expansion of the conditions of eligibility for |
18 | | any benefit under this Article, that results from an amendment |
19 | | to this Code that takes effect after June 1, 2005 (the |
20 | | effective date of Public Act 94-4). "New benefit increase", |
21 | | however, does not include any benefit increase resulting from |
22 | | the changes made to this Article or Article 1 by Public Act |
23 | | 95-910 or this amendatory Act of the 98th 95th General |
24 | | Assembly. |
25 | | (b) Notwithstanding any other provision of this Code or any |
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1 | | subsequent amendment to this Code, every new benefit increase |
2 | | is subject to this Section and shall be deemed to be granted |
3 | | only in conformance with and contingent upon compliance with |
4 | | the provisions of this Section.
|
5 | | (c) The Public Act enacting a new benefit increase must |
6 | | identify and provide for payment to the System of additional |
7 | | funding at least sufficient to fund the resulting annual |
8 | | increase in cost to the System as it accrues. |
9 | | Every new benefit increase is contingent upon the General |
10 | | Assembly providing the additional funding required under this |
11 | | subsection. The Commission on Government Forecasting and |
12 | | Accountability shall analyze whether adequate additional |
13 | | funding has been provided for the new benefit increase and |
14 | | shall report its analysis to the Public Pension Division of the |
15 | | Department of Financial and Professional Regulation. A new |
16 | | benefit increase created by a Public Act that does not include |
17 | | the additional funding required under this subsection is null |
18 | | and void. If the Public Pension Division determines that the |
19 | | additional funding provided for a new benefit increase under |
20 | | this subsection is or has become inadequate, it may so certify |
21 | | to the Governor and the State Comptroller and, in the absence |
22 | | of corrective action by the General Assembly, the new benefit |
23 | | increase shall expire at the end of the fiscal year in which |
24 | | the certification is made.
|
25 | | (d) Every new benefit increase shall expire 5 years after |
26 | | its effective date or on such earlier date as may be specified |
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1 | | in the language enacting the new benefit increase or provided |
2 | | under subsection (c). This does not prevent the General |
3 | | Assembly from extending or re-creating a new benefit increase |
4 | | by law. |
5 | | (e) Except as otherwise provided in the language creating |
6 | | the new benefit increase, a new benefit increase that expires |
7 | | under this Section continues to apply to persons who applied |
8 | | and qualified for the affected benefit while the new benefit |
9 | | increase was in effect and to the affected beneficiaries and |
10 | | alternate payees of such persons, but does not apply to any |
11 | | other person, including without limitation a person who |
12 | | continues in service after the expiration date and did not |
13 | | apply and qualify for the affected benefit while the new |
14 | | benefit increase was in effect.
|
15 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
|
16 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
|
17 | | Sec. 18-131. Financing; employer contributions.
|
18 | | (a) The State of Illinois shall make contributions to this |
19 | | System by
appropriations of the amounts which, together with |
20 | | the contributions of
participants, net earnings on |
21 | | investments, and other income, will meet the
costs of |
22 | | maintaining and administering this System on a 90% funded basis |
23 | | in
accordance with actuarial recommendations.
|
24 | | (b) The Board shall determine the amount of State |
25 | | contributions
required for each fiscal year on the basis of the |
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1 | | actuarial tables and other
assumptions adopted by the Board and |
2 | | the prescribed rate of interest, using
the formula in |
3 | | subsection (c).
|
4 | | (c) For State fiscal years 2012 through 2045, the minimum |
5 | | contribution
to the System to be made by the State for each |
6 | | fiscal year shall be an amount
determined by the System to be |
7 | | sufficient to bring the total assets of the
System up to 90% of |
8 | | the total actuarial liabilities of the System by the end of
|
9 | | State fiscal year 2045. In making these determinations, the |
10 | | required State
contribution shall be calculated each year as a |
11 | | level percentage of payroll
over the years remaining to and |
12 | | including fiscal year 2045 and shall be
determined under the |
13 | | projected unit credit actuarial cost method.
|
14 | | For State fiscal years 1996 through 2005, the State |
15 | | contribution to
the System, as a percentage of the applicable |
16 | | employee payroll, shall be
increased in equal annual increments |
17 | | so that by State fiscal year 2011, the
State is contributing at |
18 | | the rate required under this Section.
|
19 | | Notwithstanding any other provision of this Article, the |
20 | | total required State
contribution for State fiscal year 2006 is |
21 | | $29,189,400.
|
22 | | Notwithstanding any other provision of this Article, the |
23 | | total required State
contribution for State fiscal year 2007 is |
24 | | $35,236,800.
|
25 | | For each of State fiscal years 2008 through 2009, the State |
26 | | contribution to
the System, as a percentage of the applicable |
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1 | | employee payroll, shall be
increased in equal annual increments |
2 | | from the required State contribution for State fiscal year |
3 | | 2007, so that by State fiscal year 2011, the
State is |
4 | | contributing at the rate otherwise required under this Section.
|
5 | | Notwithstanding any other provision of this Article, the |
6 | | total required State contribution for State fiscal year 2010 is |
7 | | $78,832,000 and shall be made from the proceeds of bonds sold |
8 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
9 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
10 | | expenses determined by the System's share of total bond |
11 | | proceeds, (ii) any amounts received from the General Revenue |
12 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
13 | | proceeds due to the issuance of discounted bonds, if |
14 | | applicable. |
15 | | Notwithstanding any other provision of this Article, the |
16 | | total required State contribution for State fiscal year 2011 is
|
17 | | the amount recertified by the System on or before April 1, 2011 |
18 | | pursuant to Section 18-140 and shall be made from the proceeds |
19 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
20 | | the General
Obligation Bond Act, less (i) the pro rata share of |
21 | | bond sale
expenses determined by the System's share of total |
22 | | bond
proceeds, (ii) any amounts received from the General |
23 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
24 | | bond
proceeds due to the issuance of discounted bonds, if
|
25 | | applicable. |
26 | | Beginning in State fiscal year 2046, the minimum State |
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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 Code or the |
17 | | Budget Stabilization Act, amounts transferred to the System |
18 | | pursuant to the Budget Stabilization Act after the effective |
19 | | date of this amendatory Act of the 98th General Assembly do not |
20 | | reduce and do not constitute payment of any portion of the |
21 | | required State contribution under this Article in that fiscal |
22 | | year. Such amounts shall not reduce, and shall not be included |
23 | | in the calculation of, the required State contributions under |
24 | | this Article in any future year until the System has received |
25 | | payment of contributions pursuant to the Budget Stabilization |
26 | | Act. |
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1 | | Notwithstanding any other provision of this Section, the |
2 | | required State
contribution for State fiscal year 2005 and for |
3 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
4 | | under this Section and
certified under Section 18-140, shall |
5 | | not exceed an amount equal to (i) the
amount of the required |
6 | | State contribution that would have been calculated under
this |
7 | | Section for that fiscal year if the System had not received any |
8 | | payments
under subsection (d) of Section 7.2 of the General |
9 | | Obligation Bond Act, minus
(ii) the portion of the State's |
10 | | total debt service payments for that fiscal
year on the bonds |
11 | | issued in fiscal year 2003 for the purposes of that Section |
12 | | 7.2, as determined
and certified by the Comptroller, that is |
13 | | the same as the System's portion of
the total moneys |
14 | | distributed under subsection (d) of Section 7.2 of the General
|
15 | | Obligation Bond Act. In determining this maximum for State |
16 | | fiscal years 2008 through 2010, however, the amount referred to |
17 | | in item (i) shall be increased, as a percentage of the |
18 | | applicable employee payroll, in equal increments calculated |
19 | | from the sum of the required State contribution for State |
20 | | fiscal year 2007 plus the applicable portion of the State's |
21 | | total debt service payments for fiscal year 2007 on the bonds |
22 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
23 | | the General
Obligation Bond Act, so that, by State fiscal year |
24 | | 2011, the
State is contributing at the rate otherwise required |
25 | | under this Section.
|
26 | | (d) For purposes of determining the required State |
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1 | | contribution to the System, the value of the System's assets |
2 | | shall be equal to the actuarial value of the System's assets, |
3 | | which shall be calculated as follows: |
4 | | As of June 30, 2008, the actuarial value of the System's |
5 | | assets shall be equal to the market value of the assets as of |
6 | | that date. In determining the actuarial value of the System's |
7 | | assets for fiscal years after June 30, 2008, any actuarial |
8 | | gains or losses from investment return incurred in a fiscal |
9 | | year shall be recognized in equal annual amounts over the |
10 | | 5-year period following that fiscal year. |
11 | | (e) For purposes of determining the required State |
12 | | contribution to the system for a particular year, the actuarial |
13 | | value of assets shall be assumed to earn a rate of return equal |
14 | | to the system's actuarially assumed rate of return. |
15 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
16 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
17 | | 7-13-12.)
|
18 | | Section A-25. The Illinois Educational Labor Relations Act |
19 | | is amended by changing Sections 4 and 17 as follows:
|
20 | | (115 ILCS 5/4) (from Ch. 48, par. 1704)
|
21 | | Sec. 4. Employer rights. Employers shall not be required to |
22 | | bargain over matters of inherent
managerial policy, which shall |
23 | | include such areas of discretion or policy
as the functions of |
24 | | the employer, standards of services, its overall
budget, the |
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1 | | organizational structure and selection of new employees and
|
2 | | direction of employees. Employers, however, shall be required |
3 | | to bargain
collectively with regard to policy matters directly |
4 | | affecting wages, hours
and terms and conditions of employment |
5 | | as well as the impact thereon upon
request by employee |
6 | | representatives , but excluding the changes, the impact of |
7 | | changes, and the implementation of the changes set forth in |
8 | | this amendatory Act of the 98th General Assembly . To preserve |
9 | | the rights of employers
and exclusive representatives which |
10 | | have established collective bargaining
relationships or |
11 | | negotiated collective bargaining agreements prior to the
|
12 | | effective date of this Act, employers shall be required to |
13 | | bargain
collectively with regard to any matter concerning |
14 | | wages, hours or
conditions of employment about which they have |
15 | | bargained for and agreed to
in a collective bargaining |
16 | | agreement prior to the effective date of this Act , but |
17 | | excluding the changes, the impact of changes, and the |
18 | | implementation of the changes set forth in this amendatory Act |
19 | | of the 98th General Assembly .
|
20 | | (Source: P.A. 83-1014.)
|
21 | | (115 ILCS 5/17) (from Ch. 48, par. 1717)
|
22 | | Sec. 17. Effect on other laws. In case of any conflict |
23 | | between the
provisions of this Act and any other law (other |
24 | | than the changes, the impact of changes, and the implementation |
25 | | of the changes made to the Illinois Pension Code by this |
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1 | | amendatory Act of the 98th General Assembly) , executive order |
2 | | or administrative
regulation, the provisions of this Act shall |
3 | | prevail and control.
The provisions of this Act are subject to |
4 | | the changes made by this amendatory Act of the 98th General |
5 | | Assembly. Nothing in this Act shall be construed to replace or |
6 | | diminish the rights
of employees established by Section 36d of |
7 | | "An Act to create the State Universities
Civil Service System", |
8 | | approved May 11, 1905, as amended or modified.
|
9 | | (Source: P.A. 83-1014.)
|
10 | | Section A-90. The State Mandates Act is amended by adding |
11 | | Section 8.37 as follows: |
12 | | (30 ILCS 805/8.37 new) |
13 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 |
14 | | of this Act, no reimbursement by the State is required for the |
15 | | implementation of any mandate created by this amendatory Act of |
16 | | the 98th General Assembly. |
17 | | Section A-90. The State Mandates Act is amended by adding |
18 | | Section 8.36 as follows: |
19 | | Section A-97. Severability and inseverability. The changes |
20 | | made by this Part A to Acts other than the Illinois Pension |
21 | | Code are severable from the other changes made by this Act. The |
22 | | changes made by this Part A to an Article of the Illinois |
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1 | | Pension Code are severable from the changes made by this Part A |
2 | | to another Article of the Illinois Pension Code. However, the |
3 | | changes made by this Part A in an Article of the Illinois |
4 | | Pension Code that relate to (i) automatic annual increases, |
5 | | (ii) employee or member contributions, (iii) State or employer |
6 | | contributions, (iv) State funding guarantees, or (v) salary, |
7 | | earnings, or compensation are mutually dependent and |
8 | | inseverable. |
9 | | PART B |
10 | | Section B-1. The Illinois Pension Code is amended by adding |
11 | | Section 1-103.5 as follows: |
12 | | (40 ILCS 5/1-103.5 new) |
13 | | Sec. 1-103.5. Explanation of House Bill 3865. |
14 | | (a) Part A of House Bill 3865 is intended by the General |
15 | | Assembly as a stand-alone reform of certain Articles of this |
16 | | Code, which takes effect upon becoming law. Part B of House |
17 | | Bill 3865 contains alternative provisions that take effect only |
18 | | if and when a corresponding portion of Part A is determined to |
19 | | be unconstitutional or otherwise invalid or unenforceable. |
20 | | (b) If one or more of the changes made in Part A to |
21 | | portions of a specific Article of the Illinois Pension Code |
22 | | that are designated as inseverable under Section 97 of Part A |
23 | | are determined to be unconstitutional or otherwise invalid by a |
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1 | | final judgment of the Illinois Supreme Court or by a final |
2 | | unappealable judgment of the Illinois Appellate Court or a |
3 | | court of competent jurisdiction, then the invalid provisions of |
4 | | Part A and the provisions of Part A that are inseverable from |
5 | | those provisions shall be superseded by the Sections of Part B |
6 | | that take effect due to that invalidity. |
7 | | Section B-5. If and only if Section B-30, B-35, B-40, or |
8 | | B-45 of this Part B take effect, then the Illinois Public Labor |
9 | | Relations Act is amended by changing Sections 4 and 15 as |
10 | | follows: |
11 | | (5 ILCS 315/4) (from Ch. 48, par. 1604)
|
12 | | Sec. 4. Management Rights. Employers shall not be required |
13 | | to bargain
over matters of inherent managerial policy, which |
14 | | shall include such areas
of discretion or policy as the |
15 | | functions of the employer, standards of
services,
its overall |
16 | | budget, the organizational structure and selection of new
|
17 | | employees, examination techniques
and direction of employees. |
18 | | Employers, however, shall be required to bargain
collectively |
19 | | with regard to
policy matters directly affecting wages (but |
20 | | subject to any applicable restrictions in Section 14-106.5, |
21 | | 15-132.9, or 16-122.9 of the Illinois Pension Code) , hours and |
22 | | terms and conditions of employment
as well as the impact |
23 | | thereon upon request by employee representatives , but |
24 | | excluding the changes, the impact of changes, and the |
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1 | | implementation of the changes set forth in this amendatory Act |
2 | | of the 98th General Assembly .
|
3 | | To preserve the rights of employers and exclusive |
4 | | representatives which
have established collective bargaining |
5 | | relationships or negotiated collective
bargaining agreements |
6 | | prior to the effective date of this Act, employers
shall be |
7 | | required to bargain collectively with regard to any matter |
8 | | concerning
wages (but subject to any applicable restrictions in |
9 | | Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension |
10 | | Code) , hours or conditions of employment about which they have |
11 | | bargained
for and agreed to in a collective bargaining |
12 | | agreement
prior to the effective date of this Act , but |
13 | | excluding the changes, the impact of changes, and the |
14 | | implementation of the changes set forth in this amendatory Act |
15 | | of the 98th General Assembly .
|
16 | | The chief judge of the judicial circuit that employs a |
17 | | public employee who
is
a court reporter, as defined in the |
18 | | Court Reporters Act, has the authority to
hire, appoint, |
19 | | promote, evaluate, discipline, and discharge court reporters
|
20 | | within that judicial circuit.
|
21 | | Nothing in this amendatory Act of the 94th General Assembly |
22 | | shall
be construed to intrude upon the judicial functions of |
23 | | any court. This
amendatory Act of the 94th General Assembly |
24 | | applies only to nonjudicial
administrative matters relating to |
25 | | the collective bargaining rights of court
reporters.
|
26 | | (Source: P.A. 94-98, eff. 7-1-05.)
|
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1 | | (5 ILCS 315/15) (from Ch. 48, par. 1615)
|
2 | | Sec. 15. Act Takes Precedence. |
3 | | (a) In case of any conflict between the
provisions of this |
4 | | Act and any other law (other than Section 5 of the State |
5 | | Employees Group Insurance Act of 1971 and other than the |
6 | | changes made to the Illinois Pension Code by Public Act 96-889 |
7 | | and the changes, impact of changes, and the implementation of |
8 | | the changes made to the Illinois Pension Code and the State |
9 | | Employees Group Insurance Act of 1971 by this amendatory Act of |
10 | | the 98th 96th General Assembly), executive order or |
11 | | administrative
regulation relating to wages, hours and |
12 | | conditions of employment and employment
relations, the |
13 | | provisions of this Act or any collective bargaining agreement
|
14 | | negotiated thereunder shall prevail and control.
Nothing in |
15 | | this Act shall be construed to replace or diminish the
rights |
16 | | of employees established by Sections 28 and 28a of the |
17 | | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 |
18 | | of the Regional Transportation
Authority Act. The provisions of |
19 | | this Act are subject to the changes made by this amendatory Act |
20 | | of the 98th General Assembly, including Sections 14-106.5, |
21 | | 15-132.9, and 16-122.9 of the Illinois Pension Code, and |
22 | | Section 5 of the State Employees Group Insurance Act of 1971. |
23 | | Nothing in this Act shall be construed to replace the necessity |
24 | | of complaints against a sworn peace officer, as defined in |
25 | | Section 2(a) of the Uniform Peace Officer Disciplinary Act, |
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1 | | from having a complaint supported by a sworn affidavit.
|
2 | | (b) Except as provided in subsection (a) above, any |
3 | | collective bargaining
contract between a public employer and a |
4 | | labor organization executed pursuant
to this Act shall |
5 | | supersede any contrary statutes, charters, ordinances, rules
|
6 | | or regulations relating to wages, hours and conditions of |
7 | | employment and
employment relations adopted by the public |
8 | | employer or its agents. Any collective
bargaining agreement |
9 | | entered into prior to the effective date of this Act
shall |
10 | | remain in full force during its duration.
|
11 | | (c) It is the public policy of this State, pursuant to |
12 | | paragraphs (h)
and (i) of Section 6 of Article VII of the |
13 | | Illinois Constitution, that the
provisions of this Act are the |
14 | | exclusive exercise by the State of powers
and functions which |
15 | | might otherwise be exercised by home rule units. Such
powers |
16 | | and functions may not be exercised concurrently, either |
17 | | directly
or indirectly, by any unit of local government, |
18 | | including any home rule
unit, except as otherwise authorized by |
19 | | this Act.
|
20 | | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
|
21 | | Section B-10. If and only if any of the changes made by |
22 | | Title A of this Act to provisions in Article 15 of the Illinois |
23 | | Pension Code concerning (i) automatic annual increases, (ii) |
24 | | employee or member contributions, (iii) State or employer |
25 | | contributions, (iv) State funding guarantees, or (v) salary, |
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1 | | earnings, or compensation is declared to be unconstitutional or |
2 | | otherwise invalid, then the State Employees Group Insurance Act |
3 | | of 1971 is amended by changing Sections 6.9 and 6.10 and by |
4 | | adding 6.10A as follows:
|
5 | | (5 ILCS 375/6.9)
|
6 | | Sec. 6.9.
Health benefits for community college benefit |
7 | | recipients and
community college dependent beneficiaries.
|
8 | | (a) Purpose. It is the purpose of this amendatory Act of |
9 | | 1997 to establish
a uniform program of health benefits for |
10 | | community college benefit recipients
and their dependent |
11 | | beneficiaries under the administration of the Department of
|
12 | | Central Management Services.
|
13 | | (b) Creation of program. Beginning July 1, 1999, the |
14 | | Department of
Central Management Services shall be responsible |
15 | | for administering a program of
health benefits for community |
16 | | college benefit recipients and community college
dependent |
17 | | beneficiaries under this Section. The State Universities |
18 | | Retirement
System and the boards of trustees of the various |
19 | | community college districts
shall cooperate with the |
20 | | Department in this endeavor.
|
21 | | (c) Eligibility. All community college benefit recipients |
22 | | and community
college dependent beneficiaries shall be |
23 | | eligible to participate in the program
established under this |
24 | | Section, without any interruption or delay in coverage
or |
25 | | limitation as to pre-existing medical conditions. Eligibility |
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1 | | to
participate shall be determined by the State Universities |
2 | | Retirement System.
Eligibility information shall be |
3 | | communicated to the Department of Central
Management Services |
4 | | in a format acceptable to the Department.
|
5 | | (d) Coverage. The health benefit coverage provided under |
6 | | this Section
shall be a program of health, dental, and vision |
7 | | benefits.
|
8 | | The program of health benefits under this Section may |
9 | | include any or all of
the benefit limitations, including but |
10 | | not limited to a reduction in benefits
based on eligibility for |
11 | | federal medicare benefits, that are provided under
subsection |
12 | | (a) of Section 6 of this Act for other health benefit programs |
13 | | under
this Act.
|
14 | | (e) Insurance rates and premiums. The Director shall |
15 | | determine the
insurance rates and premiums for community |
16 | | college benefit recipients and
community college dependent |
17 | | beneficiaries. Rates and premiums may be based
in part on age |
18 | | and eligibility for federal Medicare coverage.
The Director |
19 | | shall also determine premiums that will allow for the
|
20 | | establishment of an actuarially sound reserve for this program.
|
21 | | The cost of health benefits under the program shall be paid |
22 | | as follows:
|
23 | | (1) For a community college benefit recipient, costs |
24 | | shall be an amount equal to the difference between the |
25 | | projected costs of health benefits under the program and |
26 | | projected contributions from community college districts, |
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1 | | active contributors, and other income of the program. Other |
2 | | income of the program shall exclude contributions made by |
3 | | the State to retire unpaid claims of the program up to 75% |
4 | | of the total
insurance rate shall be paid from the |
5 | | Community College Health Insurance
Security Fund .
|
6 | | (2) The balance of the rate of insurance, including the |
7 | | entire premium
for any coverage for community college |
8 | | dependent beneficiaries that has been
elected, shall be |
9 | | paid by deductions authorized by the community college
|
10 | | benefit recipient to be withheld from his or her monthly |
11 | | annuity or benefit
payment from the State Universities |
12 | | Retirement System; except that (i) if the
balance of the |
13 | | cost of coverage exceeds the amount of the monthly annuity |
14 | | or
benefit payment, the difference shall be paid directly |
15 | | to the State
Universities Retirement System by the |
16 | | community college benefit recipient, and
(ii) all or part |
17 | | of the balance of the cost of coverage may, at the option |
18 | | of
the board of trustees of the community college district, |
19 | | be paid to
the State Universities Retirement System by the |
20 | | board of the community college
district from which the |
21 | | community college benefit recipient retired. The State
|
22 | | Universities Retirement System shall promptly deposit all |
23 | | moneys withheld by or
paid to it under this subdivision |
24 | | (e)(2) into the Community College Health
Insurance |
25 | | Security Fund. These moneys shall not be considered assets |
26 | | of the
State Universities Retirement System.
|
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1 | | (f) Financing. All revenues arising from the |
2 | | administration of the health
benefit program established under |
3 | | this Section shall be deposited into the
Community College |
4 | | Health Insurance Security Fund, which is hereby created as a
|
5 | | nonappropriated trust fund to be held outside the State |
6 | | Treasury, with the
State Treasurer as custodian. Any interest |
7 | | earned on moneys in the Community
College Health Insurance |
8 | | Security Fund shall be deposited into the Fund.
|
9 | | Moneys in the Community College Health Insurance Security |
10 | | Fund shall be used
only to pay the costs of the health benefit |
11 | | program established under this
Section, including associated |
12 | | administrative costs and the establishment of a
program |
13 | | reserve. Beginning January 1, 1999,
the Department of Central |
14 | | Management Services may make expenditures from the
Community |
15 | | College Health Insurance Security Fund for those costs.
|
16 | | (g) Contract for benefits. The Director shall by contract, |
17 | | self-insurance,
or otherwise make available the program of |
18 | | health benefits for community
college benefit recipients and |
19 | | their community college dependent beneficiaries
that is |
20 | | provided for in this Section. The contract or other arrangement |
21 | | for
the provision of these health benefits shall be on terms |
22 | | deemed by the Director
to be in the best interest of the State |
23 | | of Illinois and the community college
benefit recipients based |
24 | | on, but not limited to, such criteria as
administrative cost, |
25 | | service capabilities of the carrier or other contractor,
and |
26 | | the costs of the benefits.
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1 | | (h) Continuation of program. It is the intention of the |
2 | | General Assembly
that the program of health benefits provided |
3 | | under this Section be maintained
on an ongoing, affordable |
4 | | basis. The program of health benefits provided under
this |
5 | | Section may be amended by the State and is not intended to be a |
6 | | pension or
retirement benefit subject to protection under |
7 | | Article XIII, Section 5 of the
Illinois Constitution.
|
8 | | (i) Other health benefit plans. A health benefit plan |
9 | | provided by a
community college district (other than a |
10 | | community college district subject to
Article VII of the Public |
11 | | Community College Act) under the terms of a
collective |
12 | | bargaining agreement in effect on or prior to the effective |
13 | | date of
this amendatory Act of 1997 shall continue in force |
14 | | according to the terms of
that agreement, unless otherwise |
15 | | mutually agreed by the parties to that
agreement and the |
16 | | affected retiree.
A community college benefit recipient or |
17 | | community college dependent
beneficiary whose coverage under |
18 | | such a plan expires shall be eligible to begin
participating in |
19 | | the program established under this Section without any
|
20 | | interruption or delay in coverage or limitation as to |
21 | | pre-existing medical
conditions.
|
22 | | This Act does not prohibit any community college district |
23 | | from offering
additional health benefits for its retirees or |
24 | | their dependents or survivors.
|
25 | | (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
|
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1 | | (5 ILCS 375/6.10)
|
2 | | Sec. 6.10. Contributions to the Community College Health |
3 | | Insurance
Security Fund.
|
4 | | |
5 | | (a) Beginning January 1, 1999, every active contributor of |
6 | | the State
Universities Retirement System (established under |
7 | | Article 15 of the Illinois
Pension Code) who (1) is a full-time |
8 | | employee of a community college district
(other than a |
9 | | community college district subject to Article VII of the Public
|
10 | | Community College Act)
or an association of community college |
11 | | boards and (2) is not an employee as
defined in Section 3 of |
12 | | this Act shall make contributions toward the cost of
community |
13 | | college annuitant and survivor health benefits at the rate of |
14 | | 0.50%
of salary. Beginning with the first State fiscal year to |
15 | | occur after the end of the election period specified in Section |
16 | | 15-132.9, the contribution rate under this subsection (a) shall |
17 | | be 1.25% of salary. Beginning with the second State fiscal year |
18 | | to occur after the end of the election period specified in |
19 | | Section 15-132.9, the contribution rate under this subsection |
20 | | (a) shall be a percentage of salary determined by the |
21 | | Department of Central Management Services, or its successor, by |
22 | | rule, which in each fiscal year shall not exceed 108% of the |
23 | | percentage of salary actually required to be contributed in the |
24 | | previous fiscal year. However, the required contribution rate |
25 | | determined by the Department or its successor under this |
26 | | subsection (a) shall equal the required contribution rate |
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1 | | determined by the Department or its successor under subsection |
2 | | (b) of this Section.
|
3 | | These contributions shall be deducted by the employer and |
4 | | paid to the State
Universities Retirement System as service |
5 | | agent for the Department of Central
Management Services. The |
6 | | System may use the same processes for collecting the
|
7 | | contributions required by this subsection that it uses to |
8 | | collect the
contributions received from those employees under |
9 | | Section 15-157 of the
Illinois Pension Code. An employer may |
10 | | agree to pick up or pay the
contributions required under this |
11 | | subsection on behalf of the employee;
such contributions shall |
12 | | be deemed to have been paid by the employee.
|
13 | | The State Universities Retirement System shall promptly |
14 | | deposit all moneys
collected under this subsection (a) into the |
15 | | Community College Health Insurance
Security Fund created in |
16 | | Section 6.9 of this Act. The moneys collected under
this |
17 | | Section shall be used only for the purposes authorized in |
18 | | Section 6.9 of
this Act and shall not be considered to be |
19 | | assets of the State Universities
Retirement System. |
20 | | Contributions made under this Section are not transferable
to |
21 | | other pension funds or retirement systems and are not |
22 | | refundable upon
termination of service.
|
23 | | (b) Beginning January 1, 1999, every community college |
24 | | district
(other than a community college district subject to |
25 | | Article VII of the Public
Community College Act) or association
|
26 | | of community college boards that is an employer under the State |
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1 | | Universities
Retirement System shall contribute toward the |
2 | | cost of the community college
health benefits provided under |
3 | | Section 6.9 of this Act an amount equal to 0.50%
of the salary |
4 | | paid to its full-time employees who participate in the State
|
5 | | Universities Retirement System and are not members as defined |
6 | | in Section 3 of
this Act. Beginning with the first State fiscal |
7 | | year to occur after the end of the election period specified in |
8 | | Section 15-132.9, the contribution rate under this subsection |
9 | | (b) shall be 1.25% of salary. Beginning with the second State |
10 | | fiscal year to occur after the end of the election period |
11 | | specified in Section 15-132.9, the contribution rate under this |
12 | | subsection (b) shall be a percentage of salary determined by |
13 | | 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 (b) shall equal the required contribution |
19 | | rate determined by the Department or its successor under |
20 | | subsection (a) of this Section.
|
21 | | These contributions shall be paid by the employer to the |
22 | | State Universities
Retirement System as service agent for the |
23 | | Department of Central Management
Services. The System may use |
24 | | the same processes for collecting the
contributions required by |
25 | | this subsection that it uses to collect the
contributions |
26 | | received from those employers under Section 15-155 of the
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1 | | Illinois Pension Code.
|
2 | | The State Universities Retirement System shall promptly |
3 | | deposit all moneys
collected under this subsection (b) into the |
4 | | Community College Health Insurance
Security Fund created in |
5 | | Section 6.9 of this Act. The moneys collected under
this |
6 | | Section shall be used only for the purposes authorized in |
7 | | Section 6.9 of
this Act and shall not be considered to be |
8 | | assets of the State Universities
Retirement System. |
9 | | Contributions made under this Section are not transferable
to |
10 | | other pension funds or retirement systems and are not |
11 | | refundable upon
termination of service.
|
12 | | The Department of Healthcare and Family Services, or any |
13 | | successor agency designated to procure healthcare contracts |
14 | | pursuant to this Act, is authorized to establish funds, |
15 | | separate accounts provided by any bank or banks as defined by |
16 | | the Illinois Banking Act, or separate accounts provided by any |
17 | | savings and loan association or associations as defined by the |
18 | | Illinois Savings and Loan Act of 1985 to be held by the |
19 | | Director, outside the State treasury, for the purpose of |
20 | | receiving the transfer of moneys from the Community College |
21 | | Health Insurance Security Fund. The Department may promulgate |
22 | | rules further defining the methodology for the transfers. Any |
23 | | interest earned by moneys in the funds or accounts shall inure |
24 | | to the Community College Health Insurance Security Fund. The |
25 | | transferred moneys, and interest accrued thereon, shall be used |
26 | | exclusively for transfers to administrative service |
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1 | | organizations or their financial institutions for payments of |
2 | | claims to claimants and providers under the self-insurance |
3 | | health plan. The transferred moneys, and interest accrued |
4 | | thereon, shall not be used for any other purpose including, but |
5 | | not limited to, reimbursement of administration fees due the |
6 | | administrative service organization pursuant to its contract |
7 | | or contracts with the Department.
|
8 | | (c) On or before November 15 of each year, the Board of |
9 | | Trustees of the
State Universities Retirement System shall |
10 | | certify to the Governor, the
Director of Central Management |
11 | | Services, and the State
Comptroller its estimate of the total |
12 | | amount of contributions to be paid under
subsection (a) of this |
13 | | Section for the next fiscal year , except that no certification |
14 | | shall be made under this subsection (c) on or after the |
15 | | effective date of the changes made to this Section by this |
16 | | amendatory Act of the 98th General Assembly . Beginning in |
17 | | fiscal year 2008, the amount certified shall be decreased or |
18 | | increased each year by the amount that the actual active |
19 | | employee contributions either fell short of or exceeded the |
20 | | estimate used by the Board in making the certification for the |
21 | | previous fiscal year. The State Universities Retirement System |
22 | | shall calculate the amount of actual active employee |
23 | | contributions in fiscal years 1999 through 2005. Based upon |
24 | | this calculation, the fiscal year 2008 certification shall |
25 | | include an amount equal to the cumulative amount that the |
26 | | actual active employee contributions either fell short of or |
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1 | | exceeded the estimate used by the Board in making the |
2 | | certification for those fiscal years. The certification
shall |
3 | | include a detailed explanation of the methods and information |
4 | | that the
Board relied upon in preparing its estimate. As soon |
5 | | as possible after the
effective date of this Section, the Board |
6 | | shall submit its estimate for fiscal
year 1999.
|
7 | | (d) Beginning in fiscal year 1999, on the first day of each |
8 | | month, or as
soon thereafter as may be practical, the State |
9 | | Treasurer and the State
Comptroller shall transfer from the |
10 | | General Revenue Fund to the Community
College Health Insurance |
11 | | Security Fund 1/12 of the annual amount appropriated
for that |
12 | | fiscal year to the State Comptroller for deposit into the |
13 | | Community
College Health Insurance Security Fund under Section |
14 | | 1.4 of the State Pension
Funds Continuing Appropriation Act.
|
15 | | (e) Except where otherwise specified in this Section, the |
16 | | definitions
that apply to Article 15 of the Illinois Pension |
17 | | Code apply to this Section.
|
18 | | (Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
|
19 | | (5 ILCS 375/6.10A new) |
20 | | Sec. 6.10A. City colleges; optional participation in |
21 | | program of health benefits. Notwithstanding any other |
22 | | provision of this Act, the Department of Central Management |
23 | | Services shall adopt rules authorizing optional participation |
24 | | in the program of health benefits for community college benefit |
25 | | recipients and community college dependent beneficiaries by |
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1 | | any person who is otherwise ineligible to participate in that |
2 | | program solely as a result of that or another person's |
3 | | employment with a community college district subject to Article |
4 | | VII of the Public Community College Act. |
5 | | Section B-12. If and only if any of the changes made by |
6 | | Title A of this Act to provisions in Article 2, 14, 15, or 16 of |
7 | | the Illinois Pension Code concerning (i) automatic annual |
8 | | increases, (ii) employee or member contributions, (iii) State |
9 | | or employer contributions, (iv) State funding guarantees, or |
10 | | (v) salary, earnings, or compensation is declared to be |
11 | | unconstitutional or otherwise invalid, then the State |
12 | | Employees Group Insurance Act of 1971 is amended by adding |
13 | | Section 6.16 as follows: |
14 | | (5 ILCS 375/6.16 new) |
15 | | Sec. 6.16. Health benefit election for Tier I employees and |
16 | | Tier I retirees. |
17 | | (a) For purposes of this Section: |
18 | | "Eligible Tier I employee" means an individual who makes or |
19 | | is deemed to have made an election under paragraph (1) of |
20 | | subsection (a) of Section 2-110.3, 14-106.5, 15-132.9, or |
21 | | 16-122.9 of the Illinois Pension Code. |
22 | | "Eligible Tier I retiree" means an individual who makes or |
23 | | is deemed to have made an election under paragraph (1) of |
24 | | subsection (a-5) of Section 2-110.3, 14-106.5, 15-132.9, or |
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1 | | 16-122.9 of the Illinois Pension Code. |
2 | | "Program of health benefits" means (i) a health plan, as |
3 | | defined in subsection (o) of Section 3 of this Act, that is |
4 | | designed and contracted for by the Director under this Act or |
5 | | any successor Act or (ii) if administration of that health plan |
6 | | is transferred to a trust established by the State or an |
7 | | independent Board in order to provide health benefits to a |
8 | | class of a persons that includes eligible Tier I retirees, then |
9 | | the plan of health benefits provided through that trust. |
10 | | (b) As adequate and legal consideration for making the |
11 | | election under paragraph (1) of subsection (a) or (a-5) of |
12 | | Section 2-110.3, 14-106.5, 15-132.9, or 16-122.9 of the |
13 | | Illinois Pension Code, each eligible Tier I employee and each |
14 | | eligible Tier I retiree shall receive a vested and enforceable |
15 | | contractual right to participate in a program of health |
16 | | benefits while he or she qualifies as an annuitant or retired |
17 | | employee. That right also extends to such a person's dependents |
18 | | and survivors who are eligible under the applicable program of |
19 | | 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 |
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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 Section 2-110.3, |
6 | | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code |
7 | | shall not be entitled to participate in the program of health |
8 | | benefits as an annuitant or retired employee receiving a |
9 | | retirement annuity, regardless of any contrary election |
10 | | pursuant to any of those Sections under any other retirement |
11 | | 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 receiving a |
15 | | retirement annuity, due to an election under paragraph (2) of |
16 | | subsection (a) or (a-5) of Section 2-110.3, 14-106.5, 15-132.9, |
17 | | or 16-122.9 of the Illinois Pension Code shall not be required |
18 | | to make contributions toward the program of health benefits |
19 | | while he or she is an employee or active contributor. However, |
20 | | an active employee may be required to make contributions toward |
21 | | health benefits he or she receives during active service. |
22 | | (f) The Department shall coordinate with each retirement |
23 | | system administering an election in accordance with this |
24 | | amendatory Act of the 98th General Assembly to provide |
25 | | information concerning the impact of the election of health |
26 | | benefits. Each System shall include information prepared by the |
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1 | | Department in the required election packet. The Department |
2 | | shall make information available to Tier I employees and Tier I |
3 | | retirees through video materials, group presentations, |
4 | | consultation by telephone or other electronic means, or any |
5 | | combination of these methods. |
6 | | Section B-15. If and only if Section B-30, B-35, B-40, or |
7 | | B-45 of this Part B take effect, then the Governor's Office of |
8 | | Management and Budget Act is amended by changing Sections 7 and |
9 | | 8 as follows:
|
10 | | (20 ILCS 3005/7) (from Ch. 127, par. 417)
|
11 | | Sec. 7.
All statements and estimates of expenditures |
12 | | submitted to the
Office in connection with the preparation of a |
13 | | State budget, and any other
estimates of expenditures, |
14 | | supporting requests for appropriations, shall be
formulated |
15 | | according to the various functions and activities for which the
|
16 | | respective department, office or institution of the State |
17 | | government
(including the elective officers in the executive |
18 | | department and including
the University of Illinois and the |
19 | | judicial department) is responsible. All
such statements and |
20 | | estimates of expenditures relating to a particular
function or |
21 | | activity shall be further formulated or subject to analysis in
|
22 | | accordance with the following classification of objects:
|
23 | | (1) Personal services
|
24 | | (2) State contribution for employee group insurance
|
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1 | | (3) Contractual services
|
2 | | (4) Travel
|
3 | | (5) Commodities
|
4 | | (6) Equipment
|
5 | | (7) Permanent improvements
|
6 | | (8) Land
|
7 | | (9) Electronic Data Processing
|
8 | | (10) Telecommunication services
|
9 | | (11) Operation of Automotive Equipment
|
10 | | (12) Contingencies
|
11 | | (13) Reserve
|
12 | | (14) Interest
|
13 | | (15) Awards and Grants
|
14 | | (16) Debt Retirement
|
15 | | (17) Non-cost Charges .
|
16 | | (18) State retirement contribution for annual normal cost |
17 | | (19) State retirement contribution for unfunded accrued |
18 | | liability. |
19 | | (Source: P.A. 93-25, eff. 6-20-03 .)
|
20 | | (20 ILCS 3005/8) (from Ch. 127, par. 418)
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21 | | Sec. 8.
When used in connection with a State budget or |
22 | | expenditure or
estimate, items (1) through (16) in the |
23 | | classification of objects stated in
Section 7 shall have the |
24 | | meanings ascribed to those items in Sections 14
through 24.7, |
25 | | respectively, of the State Finance Act. "An Act in relation to |
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1 | | State finance",
approved June 10, 1919, as amended.
|
2 | | When used in connection with a State budget or expenditure |
3 | | or
estimate, items (18) and (19) in the classification of |
4 | | objects stated in
Section 7 shall have the meanings ascribed to |
5 | | those items in Sections 24.12 and 24.13, respectively, of the |
6 | | State Finance Act. |
7 | | (Source: P.A. 82-325.)
|
8 | | Section B-20. If and only if Section B-30, B-35, B-40, or |
9 | | B-45 of this Part B take effect, then the State Finance Act is |
10 | | amended by changing Section 13 and by adding Sections 24.12 and |
11 | | 24.13 as follows:
|
12 | | (30 ILCS 105/13) (from Ch. 127, par. 149)
|
13 | | Sec. 13.
The objects and purposes for which appropriations |
14 | | are made
are classified and standardized by items as follows:
|
15 | | (1) Personal services;
|
16 | | (2) State contribution for employee group insurance;
|
17 | | (3) Contractual services;
|
18 | | (4) Travel;
|
19 | | (5) Commodities;
|
20 | | (6) Equipment;
|
21 | | (7) Permanent improvements;
|
22 | | (8) Land;
|
23 | | (9) Electronic Data Processing;
|
24 | | (10) Operation of automotive equipment;
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1 | | (11) Telecommunications services;
|
2 | | (12) Contingencies;
|
3 | | (13) Reserve;
|
4 | | (14) Interest;
|
5 | | (15) Awards and Grants;
|
6 | | (16) Debt Retirement;
|
7 | | (17) Non-Cost Charges;
|
8 | | (18) State retirement contribution for annual normal cost; |
9 | | (19) State retirement contribution for unfunded accrued |
10 | | liability; |
11 | | (20) (18) Purchase Contract for Real Estate.
|
12 | | When an appropriation is made to an officer, department, |
13 | | institution,
board, commission or other agency, or to a private |
14 | | association or
corporation, in one or more of the items above |
15 | | specified, such
appropriation shall be construed in accordance |
16 | | with the definitions and
limitations specified in this Act, |
17 | | unless the appropriation act
otherwise provides.
|
18 | | An appropriation for a purpose other than one specified and |
19 | | defined
in this Act may be made only as an additional, separate |
20 | | and distinct
item, specifically stating the object and purpose |
21 | | thereof.
|
22 | | (Source: P.A. 84-263; 84-264.)
|
23 | | (30 ILCS 105/24.12 new) |
24 | | Sec. 24.12. "State retirement contribution for annual |
25 | | normal cost" defined. The term "State retirement contribution |
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1 | | for annual normal cost" means the portion of the total required |
2 | | State contribution to a retirement system for a fiscal year |
3 | | that represents the State's portion of the System's projected |
4 | | normal cost for that fiscal year, as determined and certified |
5 | | by the board of trustees of the retirement system in |
6 | | conformance with the applicable provisions of the Illinois |
7 | | Pension Code. |
8 | | (30 ILCS 105/24.13 new) |
9 | | Sec. 24.13. "State retirement contribution for unfunded |
10 | | accrued liability" defined. The term "State retirement |
11 | | contribution for unfunded accrued liability" means the portion |
12 | | of the total required State contribution to a retirement system |
13 | | for a fiscal year that is not included in the State retirement |
14 | | contribution for annual normal cost. |
15 | | Section B-25. If and only if Section B-35, B-40, or B-45 of |
16 | | this Part B take effect, then the Illinois Pension Code is |
17 | | amended by changing Section 1-103.3 and adding Section 1-162 as |
18 | | follows:
|
19 | | (40 ILCS 5/1-103.3)
|
20 | | Sec. 1-103.3. Application of 1994 amendment; funding |
21 | | standard.
|
22 | | (a) The provisions of Public Act 88-593 this amendatory Act |
23 | | of 1994 that change the method of
calculating, certifying, and |
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1 | | paying the required State contributions to the
retirement |
2 | | systems established under Articles 2, 14, 15, 16, and 18 shall
|
3 | | first apply to the State contributions required for State |
4 | | fiscal year 1996.
|
5 | | (b) (Blank). The General Assembly declares that a funding |
6 | | ratio (the ratio of a
retirement system's total assets to its |
7 | | total actuarial liabilities) of 90% is
an appropriate goal for |
8 | | State-funded retirement systems in Illinois, and it
finds that |
9 | | a funding ratio of 90% is now the generally-recognized norm
|
10 | | throughout the nation for public employee retirement systems |
11 | | that are
considered to be financially secure and funded in an |
12 | | appropriate and
responsible manner.
|
13 | | (c) Every 5 years, beginning in 1999, the Commission on |
14 | | Government Forecasting and Accountability, in consultation |
15 | | with the affected retirement systems and the
Governor's Office |
16 | | of Management and Budget (formerly
Bureau
of the Budget), shall |
17 | | consider and determine whether the funding goals 90% funding |
18 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code |
19 | | continue subsection (b) continues to represent an appropriate |
20 | | funding goals goal for
State-funded retirement systems in |
21 | | Illinois, and it shall report its findings
and recommendations |
22 | | on this subject to the Governor and the General Assembly.
|
23 | | (Source: P.A. 93-1067, eff. 1-15-05.)
|
24 | | (40 ILCS 5/1-162 new) |
25 | | Sec. 1-162. Optional cash balance plan. |
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1 | | (a) Participation and Applicability. Beginning 12 months |
2 | | after the effective date of this Section, any Tier I employee |
3 | | who has made the election under
paragraph (1) of subsection (a) |
4 | | or (a-5) of Section 14-106.5, 15-132.9, or 16-122.9 may elect |
5 | | to participate in the optional cash balance plan created under |
6 | | this Section. |
7 | | The Board of Trustees of the applicable retirement system |
8 | | shall promulgate rules to create an annual election wherein a |
9 | | person eligible to participate in the optional cash balance |
10 | | plan may elect to participate, and an active employee who is a |
11 | | participant in the plan may elect to cease active |
12 | | participation. The election to cease active participation |
13 | | shall not disqualify the employee from eligibility to receive |
14 | | an interest credit under subsection (f), a distribution upon |
15 | | termination under subsection (f-10), a refund under subsection |
16 | | (f-15), a retirement annuity under subsection (g), or a |
17 | | survivor's annuity under subsection (k), or from eligibility to |
18 | | resume active participation in the optional cash balance plan |
19 | | in a subsequent year. |
20 | | (b) Title. The package of benefits provided under this |
21 | | Section may be referred to as the "optional cash balance plan". |
22 | | Persons subject to the provisions of this Section may be |
23 | | referred to as "participants in the optional cash balance |
24 | | plan". |
25 | | (b-5) Definitions. As used in this Section: |
26 | | "Account" means the notional cash balance account |
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1 | | established under this Section for a participant in the |
2 | | optional cash balance plan. |
3 | | "Salary" means "compensation" as defined in Article 14, |
4 | | "earnings" as defined in Article 15, and "salary" as defined in |
5 | | Article 15, whichever is applicable, without regard to the |
6 | | limitation in subsection (b-5) of Section 1-160. |
7 | | "Tier I employee" means a person who is a Tier I employee |
8 | | under the applicable Article of this Code. |
9 | | (c) Cash Balance Account. A notional cash balance account |
10 | | shall be established by the applicable retirement system for |
11 | | each participant in the optional cash balance plan. The account |
12 | | is notional and does not contain any actual money segregated |
13 | | from the commingled assets of the retirement system. The cash |
14 | | balance in the account is to be used in calculating benefits as |
15 | | provided in this Section, but is not to be used in the |
16 | | calculation of any refund, transfer, or other benefit under the |
17 | | applicable Article of this Code. |
18 | | The amounts to be credited to the cash balance account |
19 | | shall consist of (i) amounts contributed by or on behalf of the |
20 | | participant as employee contributions, (ii) notional employer |
21 | | contributions, and (iii) interest credit that is attributable |
22 | | to the account, all as provided in this Section. |
23 | | Whenever necessary for the prompt calculation or |
24 | | administration, or when the System lacks information necessary |
25 | | to the calculation or administration otherwise required of or |
26 | | for a benefit under this Section, the applicable retirement |
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1 | | system may estimate an amount to be credited to or debited from |
2 | | a participant's cash balance account and then adjust the amount |
3 | | so credited or debited when more accurate information becomes |
4 | | available. |
5 | | The applicable retirement system shall give to each |
6 | | participant in the optional cash balance plan who has not yet |
7 | | retired annual notice of (1) the balance in the participant's |
8 | | cash balance account and (2) an estimate of the retirement |
9 | | annuity that will be payable to the participant if he or she |
10 | | retires at age 59 1/2. |
11 | | (d) Employee Contributions. In addition to the other |
12 | | contributions required under the applicable Article, each |
13 | | participant shall make contributions to the applicable |
14 | | retirement system at the rate of 2% of each payment of salary. |
15 | | The amount of each contribution shall be credited to the |
16 | | participant's cash balance account upon receipt and after the |
17 | | retirement system's reconciliation of the contribution. |
18 | | (e) Optional Employer Contributions. Employers may make
|
19 | | optional additional contributions to the applicable retirement |
20 | | system on behalf of their employees who are participants in the |
21 | | optional cash balance plan in accordance with procedures |
22 | | prescribed by the retirement system, to
the extent permitted by |
23 | | federal law and the rules prescribed by the retirement system. |
24 | | The optional additional contributions under this subsection |
25 | | are actual monetary contributions to the retirement system, and |
26 | | the amount of each optional additional contribution shall be |
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1 | | credited to the participant's cash balance account upon receipt |
2 | | and after the retirement system's reconciliation of the |
3 | | contribution. |
4 | | (f) Interest Credit. An amount representing earnings on |
5 | | investments shall be determined by the retirement system in |
6 | | accordance with this Section and credited to the participant's |
7 | | cash balance account for each fiscal year in which there is a |
8 | | positive balance in that account; except that no additional |
9 | | interest credit shall be credited while an annuity based on the |
10 | | account is being paid. The interest credit amount shall be a |
11 | | percentage of the average quarterly balance in the cash balance |
12 | | account during that fiscal year, and shall be calculated on |
13 | | June 30. |
14 | | The percentage shall be the assumed treasury rate for the |
15 | | previous fiscal year, unless neither the retirement system's |
16 | | actual rate of investment earnings for the previous fiscal year |
17 | | nor the retirement system's actual rate of investment earnings |
18 | | for the five-year period ending at the end of the previous |
19 | | fiscal year is less than the assumed treasury rate. |
20 | | If both the retirement system's actual rate of investment |
21 | | earnings for the previous fiscal year and the actual rate of |
22 | | investment earnings for the five-year period ending at the end |
23 | | of the previous fiscal year are at least the assumed treasury |
24 | | rate, then the percentage shall be: |
25 | | (i) the assumed treasury rate, plus |
26 | | (ii) two-thirds of the amount of the actual rate of |
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1 | | investment earnings for the previous fiscal year that |
2 | | exceeds the assumed treasury rate. |
3 | | However, in no event shall the percentage applied under this |
4 | | subsection exceed 10%. |
5 | | For the purposes of this subsection only, "previous fiscal |
6 | | year" means fiscal year ending one year before the interest |
7 | | rate is calculated. |
8 | | For the purposes of this subsection only, "assumed treasury |
9 | | rate" means the average annual yield of the 30-year U.S. |
10 | | Treasury Bond over the previous fiscal year, but not less than |
11 | | 4%. |
12 | | When a person applies for a benefit under this Section, the |
13 | | retirement system shall apply an interest credit based on a |
14 | | proration of an estimate of what the interest credit will be |
15 | | for the relevant year. When the retirement system certifies the |
16 | |