Sen. Daniel Biss
Filed: 2/27/2013
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1 | AMENDMENT TO SENATE BILL 35
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2 | AMENDMENT NO. ______. Amend Senate Bill 35 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 3. The Illinois Public Labor Relations Act is | ||||||
5 | amended by changing Sections 4 and 15 as follows: | ||||||
6 | (5 ILCS 315/4) (from Ch. 48, par. 1604)
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7 | Sec. 4. Management Rights. Employers shall not be required | ||||||
8 | to bargain
over matters of inherent managerial policy, which | ||||||
9 | shall include such areas
of discretion or policy as the | ||||||
10 | functions of the employer, standards of
services,
its overall | ||||||
11 | budget, the organizational structure and selection of new
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12 | employees, examination techniques
and direction of employees. | ||||||
13 | Employers, however, shall be required to bargain
collectively | ||||||
14 | with regard to
policy matters directly affecting wages, hours | ||||||
15 | and terms and conditions of employment
as well as the impact | ||||||
16 | thereon upon request by employee representatives , but |
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1 | excluding the changes, the impact of changes, and the | ||||||
2 | implementation of the changes set forth in this amendatory Act | ||||||
3 | of the 98th General Assembly .
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4 | To preserve the rights of employers and exclusive | ||||||
5 | representatives which
have established collective bargaining | ||||||
6 | relationships or negotiated collective
bargaining agreements | ||||||
7 | prior to the effective date of this Act, employers
shall be | ||||||
8 | required to bargain collectively with regard to any matter | ||||||
9 | concerning
wages, hours or conditions of employment about which | ||||||
10 | they have bargained
for and agreed to in a collective | ||||||
11 | bargaining agreement
prior to the effective date of this Act , | ||||||
12 | but excluding the changes, the impact of changes, and the | ||||||
13 | implementation of the changes set forth in this amendatory Act | ||||||
14 | of the 98th General Assembly .
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15 | The chief judge of the judicial circuit that employs a | ||||||
16 | public employee who
is
a court reporter, as defined in the | ||||||
17 | Court Reporters Act, has the authority to
hire, appoint, | ||||||
18 | promote, evaluate, discipline, and discharge court reporters
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19 | within that judicial circuit.
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20 | Nothing in this amendatory Act of the 94th General Assembly | ||||||
21 | shall
be construed to intrude upon the judicial functions of | ||||||
22 | any court. This
amendatory Act of the 94th General Assembly | ||||||
23 | applies only to nonjudicial
administrative matters relating to | ||||||
24 | the collective bargaining rights of court
reporters.
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25 | (Source: P.A. 94-98, eff. 7-1-05.)
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1 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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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 by this | ||||||
9 | amendatory Act of the 98th 96th General Assembly), executive | ||||||
10 | order or administrative
regulation relating to wages, hours and | ||||||
11 | conditions of employment and employment
relations, the | ||||||
12 | provisions of this Act or any collective bargaining agreement
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13 | negotiated thereunder shall prevail and control.
Nothing in | ||||||
14 | this Act shall be construed to replace or diminish the
rights | ||||||
15 | of employees established by Sections 28 and 28a of the | ||||||
16 | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | ||||||
17 | of the Regional Transportation
Authority Act. The provisions of | ||||||
18 | this Act are subject to the changes made by this amendatory Act | ||||||
19 | of the 98th General Assembly and Section 5 of the State | ||||||
20 | Employees Group Insurance Act of 1971. Nothing in this Act | ||||||
21 | shall be construed to replace the necessity of complaints | ||||||
22 | against a sworn peace officer, as defined in Section 2(a) of | ||||||
23 | the Uniform Peace Officer Disciplinary Act, from having a | ||||||
24 | complaint supported by a sworn affidavit.
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25 | (b) Except as provided in subsection (a) above, any | ||||||
26 | collective bargaining
contract between a public employer and a |
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1 | labor organization executed pursuant
to this Act shall | ||||||
2 | supersede any contrary statutes, charters, ordinances, rules
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3 | or regulations relating to wages, hours and conditions of | ||||||
4 | employment and
employment relations adopted by the public | ||||||
5 | employer or its agents. Any collective
bargaining agreement | ||||||
6 | entered into prior to the effective date of this Act
shall | ||||||
7 | remain in full force during its duration.
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8 | (c) It is the public policy of this State, pursuant to | ||||||
9 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
10 | Illinois Constitution, that the
provisions of this Act are the | ||||||
11 | exclusive exercise by the State of powers
and functions which | ||||||
12 | might otherwise be exercised by home rule units. Such
powers | ||||||
13 | and functions may not be exercised concurrently, either | ||||||
14 | directly
or indirectly, by any unit of local government, | ||||||
15 | including any home rule
unit, except as otherwise authorized by | ||||||
16 | this Act.
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17 | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
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18 | Section 5. The Governor's Office of Management and Budget | ||||||
19 | Act is amended by changing Sections 7 and 8 as follows:
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20 | (20 ILCS 3005/7) (from Ch. 127, par. 417)
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21 | Sec. 7.
All statements and estimates of expenditures | ||||||
22 | submitted to the
Office in connection with the preparation of a | ||||||
23 | State budget, and any other
estimates of expenditures, | ||||||
24 | supporting requests for appropriations, shall be
formulated |
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1 | according to the various functions and activities for which the
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2 | respective department, office or institution of the State | ||||||
3 | government
(including the elective officers in the executive | ||||||
4 | department and including
the University of Illinois and the | ||||||
5 | judicial department) is responsible. All
such statements and | ||||||
6 | estimates of expenditures relating to a particular
function or | ||||||
7 | activity shall be further formulated or subject to analysis in
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8 | accordance with the following classification of objects:
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9 | (1) Personal services
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10 | (2) State contribution for employee group insurance
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11 | (3) Contractual services
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12 | (4) Travel
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13 | (5) Commodities
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14 | (6) Equipment
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15 | (7) Permanent improvements
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16 | (8) Land
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17 | (9) Electronic Data Processing
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18 | (10) Telecommunication services
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19 | (11) Operation of Automotive Equipment
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20 | (12) Contingencies
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21 | (13) Reserve
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22 | (14) Interest
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23 | (15) Awards and Grants
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24 | (16) Debt Retirement
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25 | (17) Non-cost Charges .
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26 | (18) State retirement contribution for annual normal cost |
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1 | (19) State retirement contribution for unfunded accrued | ||||||
2 | liability. | ||||||
3 | (Source: P.A. 93-25, eff. 6-20-03 .)
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4 | (20 ILCS 3005/8) (from Ch. 127, par. 418)
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5 | Sec. 8.
When used in connection with a State budget or | ||||||
6 | expenditure or
estimate, items (1) through (16) in the | ||||||
7 | classification of objects stated in
Section 7 shall have the | ||||||
8 | meanings ascribed to those items in Sections 14
through 24.7, | ||||||
9 | respectively, of the State Finance Act. "An Act in relation to | ||||||
10 | State finance",
approved June 10, 1919, as amended.
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11 | When used in connection with a State budget or expenditure | ||||||
12 | or
estimate, items (18) and (19) in the classification of | ||||||
13 | objects stated in
Section 7 shall have the meanings ascribed to | ||||||
14 | those items in Sections 24.12 and 24.13, respectively, of the | ||||||
15 | State Finance Act. | ||||||
16 | (Source: P.A. 82-325.)
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17 | Section 10. The State Finance Act is amended by changing | ||||||
18 | Section 13 and by adding Sections 24.12 and 24.13 as follows:
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19 | (30 ILCS 105/13) (from Ch. 127, par. 149)
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20 | Sec. 13.
The objects and purposes for which appropriations | ||||||
21 | are made
are classified and standardized by items as follows:
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22 | (1) Personal services;
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23 | (2) State contribution for employee group insurance;
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1 | (3) Contractual services;
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2 | (4) Travel;
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3 | (5) Commodities;
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4 | (6) Equipment;
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5 | (7) Permanent improvements;
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6 | (8) Land;
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7 | (9) Electronic Data Processing;
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8 | (10) Operation of automotive equipment;
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9 | (11) Telecommunications services;
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10 | (12) Contingencies;
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11 | (13) Reserve;
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12 | (14) Interest;
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13 | (15) Awards and Grants;
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14 | (16) Debt Retirement;
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15 | (17) Non-Cost Charges;
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16 | (18) State retirement contribution for annual normal cost; | ||||||
17 | (19) State retirement contribution for unfunded accrued | ||||||
18 | liability; | ||||||
19 | (20) (18) Purchase Contract for Real Estate.
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20 | When an appropriation is made to an officer, department, | ||||||
21 | institution,
board, commission or other agency, or to a private | ||||||
22 | association or
corporation, in one or more of the items above | ||||||
23 | specified, such
appropriation shall be construed in accordance | ||||||
24 | with the definitions and
limitations specified in this Act, | ||||||
25 | unless the appropriation act
otherwise provides.
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26 | An appropriation for a purpose other than one specified and |
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1 | defined
in this Act may be made only as an additional, separate | ||||||
2 | and distinct
item, specifically stating the object and purpose | ||||||
3 | thereof.
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4 | (Source: P.A. 84-263; 84-264.)
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5 | (30 ILCS 105/24.12 new) | ||||||
6 | Sec. 24.12. "State retirement contribution for annual | ||||||
7 | normal cost" defined. The term "State retirement contribution | ||||||
8 | for annual normal cost" means the portion of the total required | ||||||
9 | State contribution to a retirement system for a fiscal year | ||||||
10 | that represents the State's portion of the System's projected | ||||||
11 | normal cost for that fiscal year, as determined and certified | ||||||
12 | by the board of trustees of the retirement system in | ||||||
13 | conformance with the applicable provisions of the Illinois | ||||||
14 | Pension Code. | ||||||
15 | (30 ILCS 105/24.13 new) | ||||||
16 | Sec. 24.13. "State retirement contribution for unfunded | ||||||
17 | accrued liability" defined. The term "State retirement | ||||||
18 | contribution for unfunded accrued liability" means the portion | ||||||
19 | of the total required State contribution to a retirement system | ||||||
20 | for a fiscal year that is not included in the State retirement | ||||||
21 | contribution for annual normal cost. | ||||||
22 | Section 15. The Budget Stabilization Act is amended by | ||||||
23 | changing Sections 20 and 25 as follows: |
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1 | (30 ILCS 122/20) | ||||||
2 | Sec. 20. Pension Stabilization Fund. | ||||||
3 | (a) The Pension Stabilization Fund is hereby created as a | ||||||
4 | special fund in the State treasury. Moneys in the fund shall be | ||||||
5 | used for the sole purpose of making payments to the designated | ||||||
6 | retirement systems as provided in Section 25.
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7 | (b) For each fiscal year when the General Assembly's
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8 | appropriations and transfers or diversions as required by law
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9 | from general funds do not exceed 99% of the
estimated general | ||||||
10 | funds revenues pursuant to subsection (a)
of Section 10, the | ||||||
11 | Comptroller shall transfer from the
General Revenue Fund as | ||||||
12 | provided by this Section a total
amount equal to 0.5% of the | ||||||
13 | estimated general funds revenues
to the Pension Stabilization | ||||||
14 | Fund. | ||||||
15 | (c) For each fiscal year through State fiscal year 2013, | ||||||
16 | when the General Assembly's
appropriations and transfers or | ||||||
17 | diversions as required by law
from general funds do not exceed | ||||||
18 | 98% of the
estimated general funds revenues pursuant to | ||||||
19 | subsection (b)
of Section 10, the Comptroller shall transfer | ||||||
20 | from the
General Revenue Fund as provided by this Section a | ||||||
21 | total
amount equal to 1.0% of the estimated general funds | ||||||
22 | revenues
to the Pension Stabilization Fund. | ||||||
23 | (c-10) In State fiscal year 2020 and each fiscal year | ||||||
24 | thereafter, the State Comptroller shall order transferred and | ||||||
25 | the State Treasurer shall transfer $1,000,000,000 from the |
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1 | General Revenue Fund to the Pension Stabilization Fund. | ||||||
2 | (c-15) The transfers made pursuant to subsection (c-10) of | ||||||
3 | this Section shall continue through State fiscal year 2045 or | ||||||
4 | until each of the designated retirement systems, as defined in | ||||||
5 | Section 25, has achieved the funding ratio prescribed by law | ||||||
6 | for that retirement system, whichever occurs first; provided | ||||||
7 | that those transfers shall not be made after any provision of | ||||||
8 | this Act that is designated as inseverable in Section 97 of | ||||||
9 | this Act is declared to be unconstitutional or invalid other | ||||||
10 | than as applied. | ||||||
11 | (d) The Comptroller shall transfer 1/12 of the total
amount | ||||||
12 | to be transferred each fiscal year under this Section
into the | ||||||
13 | Pension Stabilization Fund on the first day of each
month of | ||||||
14 | that fiscal year or as soon thereafter as possible; except that | ||||||
15 | the final transfer of the fiscal year shall be made as soon as | ||||||
16 | practical after the August 31 following the end of the fiscal | ||||||
17 | year. | ||||||
18 | Until State fiscal year 2014, before Before the final | ||||||
19 | transfer for a fiscal year is made, the Comptroller shall | ||||||
20 | reconcile the estimated general funds revenues used in | ||||||
21 | calculating the other transfers under this Section for that | ||||||
22 | fiscal year with the actual general funds revenues for that | ||||||
23 | fiscal year. The
final transfer for the fiscal year shall be | ||||||
24 | adjusted so that the
total amount transferred under this | ||||||
25 | Section for that fiscal year is equal to the percentage | ||||||
26 | specified in subsection
(b) or (c) of this Section, whichever |
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1 | is applicable, of the actual
general funds revenues for that | ||||||
2 | fiscal year. The actual general funds revenues for the fiscal | ||||||
3 | year shall be calculated in a manner consistent with subsection | ||||||
4 | (c) of
Section 10 of this Act.
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5 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
6 | (30 ILCS 122/25)
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7 | Sec. 25. Transfers from the Pension Stabilization Fund. | ||||||
8 | (a) As used in this Section, "designated retirement | ||||||
9 | systems" means: | ||||||
10 | (1) the State Employees' Retirement System of
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11 | Illinois; | ||||||
12 | (2) the Teachers' Retirement System of the State of
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13 | Illinois; | ||||||
14 | (3) the State Universities Retirement System; | ||||||
15 | (4) the Judges Retirement System of Illinois; and | ||||||
16 | (5) the General Assembly Retirement System. | ||||||
17 | (b) As soon as may be practical after any money is | ||||||
18 | deposited into the Pension Stabilization Fund, the State | ||||||
19 | Comptroller shall apportion the deposited amount among the | ||||||
20 | designated retirement systems and the State Comptroller and | ||||||
21 | State Treasurer shall pay the apportioned amounts to the | ||||||
22 | designated retirement systems. The amount deposited shall be | ||||||
23 | apportioned among the designated retirement systems in the same | ||||||
24 | proportion as their respective portions of the
total actuarial | ||||||
25 | reserve deficiency of the designated retirement systems, as |
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1 | most
recently determined by the Governor's Office of Management | ||||||
2 | and
Budget. Amounts received by a designated retirement system | ||||||
3 | under this Section shall be used for funding the unfunded | ||||||
4 | liabilities of the retirement system. Payments under this | ||||||
5 | Section are authorized by the continuing appropriation under | ||||||
6 | Section 1.7 of the State Pension Funds Continuing Appropriation | ||||||
7 | Act. | ||||||
8 | (c) At the request of the State Comptroller, the Governor's | ||||||
9 | Office of Management and Budget shall
determine the individual | ||||||
10 | and total actuarial reserve deficiencies of the
designated | ||||||
11 | retirement systems. For this purpose, the
Governor's Office of | ||||||
12 | Management and Budget shall consider the
latest available audit | ||||||
13 | and actuarial reports of each of the
retirement systems and the | ||||||
14 | relevant reports and statistics of
the Public Pension Division | ||||||
15 | of the Department of
Financial and Professional Regulation. | ||||||
16 | (d) Payments to the designated retirement systems under | ||||||
17 | this Section shall be in addition to, and not in lieu of, any | ||||||
18 | State contributions required under Section 2-124, 14-131, | ||||||
19 | 15-155, 16-158, or 18-131 of the Illinois Pension Code. | ||||||
20 | Payments to the designated retirement systems under this | ||||||
21 | Section, transferred after the effective date of this | ||||||
22 | amendatory Act of the 98th General Assembly, do not reduce and | ||||||
23 | do not constitute payment of any portion of the required State | ||||||
24 | contribution under Article 2, 14, 15, 16, or 18 of the Illinois | ||||||
25 | Pension Code in that fiscal year. Such amounts shall not | ||||||
26 | reduce, and shall not be included in the calculation of, the |
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1 | required State contribution under Article 2, 14, 15, 16, or 18 | ||||||
2 | of the Illinois Pension Code in any future year, until the | ||||||
3 | designated retirement system has received payment of | ||||||
4 | contributions pursuant to this Act.
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5 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
6 | Section 20. The Illinois Pension Code is amended by | ||||||
7 | changing Sections 1-103.3, 1-160, 2-108, 2-119, 2-119.1, | ||||||
8 | 2-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 14-103.10, 14-107, | ||||||
9 | 14-108, 14-110, 14-114, 14-131, 14-132, 14-133, 14-135.08, | ||||||
10 | 14-152.1, 15-111, 15-113.6, 15-113.7, 15-135, 15-136, 15-139, | ||||||
11 | 15-153.2, 15-155, 15-156, 15-157, 15-165, 15-198, 16-121, | ||||||
12 | 16-132, 16-133, 16-133.1, 16-152, 16-158, 16-158.1, 16-203, | ||||||
13 | 20-121, 20-123, 20-124, and 20-125 and by adding Sections | ||||||
14 | 2-105.1, 2-105.2, 14-103.40, 14-103.41, 15-103.4, 15-107.1, | ||||||
15 | 15-107.2, 15-107.3, 15-155.1, 15-158.5, 16-106.4, 16-106.5, | ||||||
16 | 16-106.6, 16-152.8, and 16-158.2 as follows:
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17 | (40 ILCS 5/1-103.3)
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18 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
19 | standard.
| ||||||
20 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
21 | of 1994 that change the method of
calculating, certifying, and | ||||||
22 | paying the required State contributions to the
retirement | ||||||
23 | systems established under Articles 2, 14, 15, 16, and 18 shall
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24 | first apply to the State contributions required for State |
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1 | fiscal year 1996.
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2 | (b) (Blank) The General Assembly declares that a funding | ||||||
3 | ratio (the ratio of a
retirement system's total assets to its | ||||||
4 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
5 | State-funded retirement systems in Illinois, and it
finds that | ||||||
6 | a funding ratio of 90% is now the generally-recognized norm
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7 | throughout the nation for public employee retirement systems | ||||||
8 | that are
considered to be financially secure and funded in an | ||||||
9 | appropriate and
responsible manner .
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10 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
11 | Government Forecasting and Accountability, in consultation | ||||||
12 | with the affected retirement systems and the
Governor's Office | ||||||
13 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
14 | consider and determine whether the funding goals 90% funding | ||||||
15 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
16 | continue subsection (b) continues to represent an appropriate | ||||||
17 | funding goals goal for
those State-funded retirement systems in | ||||||
18 | Illinois , and it shall report its findings
and recommendations | ||||||
19 | on this subject to the Governor and the General Assembly.
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20 | (Source: P.A. 93-1067, eff. 1-15-05.)
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21 | (40 ILCS 5/1-160) | ||||||
22 | Sec. 1-160. Provisions applicable to new hires. | ||||||
23 | (a) The provisions of this Section apply to a person who, | ||||||
24 | on or after January 1, 2011, first becomes a member or a | ||||||
25 | participant under any reciprocal retirement system or pension |
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1 | fund established under this Code, other than a retirement | ||||||
2 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
3 | or 18 of this Code, notwithstanding any other provision of this | ||||||
4 | Code to the contrary, but do not apply (i) to any self-managed | ||||||
5 | plan established under this Code, (ii) to any person with | ||||||
6 | respect to service as a sheriff's law enforcement employee | ||||||
7 | under Article 7, (iii) or to any participant of the retirement | ||||||
8 | plan established under Section 22-101 , or (iv) to any person | ||||||
9 | who first becomes, on or after January 1, 2014, a Tier 3 | ||||||
10 | employee in a retirement system established under Article 15 or | ||||||
11 | 16 of this Code . | ||||||
12 | (b) "Final average salary" means the average monthly (or | ||||||
13 | annual) salary obtained by dividing the total salary or | ||||||
14 | earnings calculated under the Article applicable to the member | ||||||
15 | or participant during the 96 consecutive months (or 8 | ||||||
16 | consecutive years) of service within the last 120 months (or 10 | ||||||
17 | years) of service in which the total salary or earnings | ||||||
18 | calculated under the applicable Article was the highest by the | ||||||
19 | number of months (or years) of service in that period. For the | ||||||
20 | purposes of a person who first becomes a member or participant | ||||||
21 | of any retirement system or pension fund to which this Section | ||||||
22 | applies on or after January 1, 2011, in this Code, "final | ||||||
23 | average salary" shall be substituted for the following: | ||||||
24 | (1) In Articles 7 (except for service as sheriff's law | ||||||
25 | enforcement employees) and 15, "final rate of earnings". | ||||||
26 | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
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1 | annual salary for any 4 consecutive years within the last | ||||||
2 | 10 years of service immediately preceding the date of | ||||||
3 | withdrawal". | ||||||
4 | (3) In Article 13, "average final salary". | ||||||
5 | (4) In Article 14, "final average compensation". | ||||||
6 | (5) In Article 17, "average salary". | ||||||
7 | (6) In Section 22-207, "wages or salary received by him | ||||||
8 | at the date of retirement or discharge". | ||||||
9 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
10 | this Code (including without limitation the calculation of | ||||||
11 | benefits and employee contributions), the annual earnings, | ||||||
12 | salary, or wages (based on the plan year) of a member or | ||||||
13 | participant to whom this Section applies shall not exceed | ||||||
14 | $106,800; however, that amount shall annually thereafter be | ||||||
15 | increased by the lesser of (i) 3% of that amount, including all | ||||||
16 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
17 | percentage increase (but not less than zero) in the consumer | ||||||
18 | price index-u
for the 12 months ending with the September | ||||||
19 | preceding each November 1, including all previous adjustments. | ||||||
20 | For the purposes of this Section, "consumer price index-u" | ||||||
21 | means
the index published by the Bureau of Labor Statistics of | ||||||
22 | the United States
Department of Labor that measures the average | ||||||
23 | change in prices of goods and
services purchased by all urban | ||||||
24 | consumers, United States city average, all
items, 1982-84 = | ||||||
25 | 100. The new amount resulting from each annual adjustment
shall | ||||||
26 | be determined by the Public Pension Division of the Department |
| |||||||
| |||||||
1 | of Insurance and made available to the boards of the retirement | ||||||
2 | systems and pension funds by November 1 of each year. | ||||||
3 | (c) A member or participant is entitled to a retirement
| ||||||
4 | annuity upon written application if he or she has attained age | ||||||
5 | 67 and has at least 10 years of service credit and is otherwise | ||||||
6 | eligible under the requirements of the applicable Article. | ||||||
7 | A member or participant who has attained age 62 and has at | ||||||
8 | least 10 years of service credit and is otherwise eligible | ||||||
9 | under the requirements of the applicable Article may elect to | ||||||
10 | receive the lower retirement annuity provided
in subsection (d) | ||||||
11 | of this Section. | ||||||
12 | (d) The retirement annuity of a member or participant who | ||||||
13 | is retiring after attaining age 62 with at least 10 years of | ||||||
14 | service credit shall be reduced by one-half
of 1% for each full | ||||||
15 | month that the member's age is under age 67. | ||||||
16 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
17 | subject to annual increases on the January 1 occurring either | ||||||
18 | on or after the attainment of age 67 or the first anniversary | ||||||
19 | of the annuity start date, whichever is later. Each annual | ||||||
20 | increase shall be calculated at 3% or one-half the annual | ||||||
21 | unadjusted percentage increase (but not less than zero) in the | ||||||
22 | consumer price index-u for the 12 months ending with the | ||||||
23 | September preceding each November 1, whichever is less, of the | ||||||
24 | originally granted retirement annuity. If the annual | ||||||
25 | unadjusted percentage change in the consumer price index-u for | ||||||
26 | the 12 months ending with the September preceding each November |
| |||||||
| |||||||
1 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
2 | increased. | ||||||
3 | (f) The initial survivor's or widow's annuity of an | ||||||
4 | otherwise eligible survivor or widow of a retired member or | ||||||
5 | participant who first became a member or participant on or | ||||||
6 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
7 | retired member's or participant's retirement annuity at the | ||||||
8 | date of death. In the case of the death of a member or | ||||||
9 | participant who has not retired and who first became a member | ||||||
10 | or participant on or after January 1, 2011, eligibility for a | ||||||
11 | survivor's or widow's annuity shall be determined by the | ||||||
12 | applicable Article of this Code. The initial benefit shall be | ||||||
13 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
14 | child's annuity of an otherwise eligible child shall be in the | ||||||
15 | amount prescribed under each Article if applicable. Any | ||||||
16 | survivor's or widow's annuity shall be increased (1) on each | ||||||
17 | January 1 occurring on or after the commencement of the annuity | ||||||
18 | if
the deceased member died while receiving a retirement | ||||||
19 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
20 | after the first anniversary
of the commencement of the annuity. | ||||||
21 | Each annual increase shall be calculated at 3% or one-half the | ||||||
22 | annual unadjusted percentage increase (but not less than zero) | ||||||
23 | in the consumer price index-u for the 12 months ending with the | ||||||
24 | September preceding each November 1, whichever is less, of the | ||||||
25 | originally granted survivor's annuity. If the annual | ||||||
26 | unadjusted percentage change in the consumer price index-u for |
| |||||||
| |||||||
1 | the 12 months ending with the September preceding each November | ||||||
2 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
3 | increased. | ||||||
4 | (g) The benefits in Section 14-110 apply only if the person | ||||||
5 | is a State policeman, a fire fighter in the fire protection | ||||||
6 | service of a department, or a security employee of the | ||||||
7 | Department of Corrections or the Department of Juvenile | ||||||
8 | Justice, as those terms are defined in subsection (b) of | ||||||
9 | Section 14-110. A person who meets the requirements of this | ||||||
10 | Section is entitled to an annuity calculated under the | ||||||
11 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
12 | retirement annuity, only if the person has withdrawn from | ||||||
13 | service with not less than 20
years of eligible creditable | ||||||
14 | service and has attained age 60, regardless of whether
the | ||||||
15 | attainment of age 60 occurs while the person is
still in | ||||||
16 | service. | ||||||
17 | (h) If a person who first becomes a member or a participant | ||||||
18 | of a retirement system or pension fund subject to this Section | ||||||
19 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
20 | or retirement pension under that system or fund and becomes a | ||||||
21 | member or participant under any other system or fund created by | ||||||
22 | this Code and is employed on a full-time basis, except for | ||||||
23 | those members or participants exempted from the provisions of | ||||||
24 | this Section under subsection (a) of this Section, then the | ||||||
25 | person's retirement annuity or retirement pension under that | ||||||
26 | system or fund shall be suspended during that employment. Upon |
| |||||||
| |||||||
1 | termination of that employment, the person's retirement | ||||||
2 | annuity or retirement pension payments shall resume and be | ||||||
3 | recalculated if recalculation is provided for under the | ||||||
4 | applicable Article of this Code. | ||||||
5 | If a person who first becomes a member of a retirement | ||||||
6 | system or pension fund subject to this Section on or after | ||||||
7 | January 1, 2012 and is receiving a retirement annuity or | ||||||
8 | retirement pension under that system or fund and accepts on a | ||||||
9 | contractual basis a position to provide services to a | ||||||
10 | governmental entity from which he or she has retired, then that | ||||||
11 | person's annuity or retirement pension earned as an active | ||||||
12 | employee of the employer shall be suspended during that | ||||||
13 | contractual service. A person receiving an annuity or | ||||||
14 | retirement pension under this Code shall notify the pension | ||||||
15 | fund or retirement system from which he or she is receiving an | ||||||
16 | annuity or retirement pension, as well as his or her | ||||||
17 | contractual employer, of his or her retirement status before | ||||||
18 | accepting contractual employment. A person who fails to submit | ||||||
19 | such notification shall be guilty of a Class A misdemeanor and | ||||||
20 | required to pay a fine of $1,000. Upon termination of that | ||||||
21 | contractual employment, the person's retirement annuity or | ||||||
22 | retirement pension payments shall resume and, if appropriate, | ||||||
23 | be recalculated under the applicable provisions of this Code. | ||||||
24 | (i) Notwithstanding any other provision of this Section, a | ||||||
25 | person who first becomes a participant of the retirement system | ||||||
26 | established under Article 15 on or after January 1, 2011 shall |
| |||||||
| |||||||
1 | have the option to enroll in the self-managed plan created | ||||||
2 | under Section 15-158.2 of this Code. | ||||||
3 | (j) In the case of a conflict between the provisions of | ||||||
4 | this Section and any other provision of this Code, the | ||||||
5 | provisions of this Section shall control.
| ||||||
6 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; | ||||||
7 | 97-609, eff. 1-1-12.) | ||||||
8 | (40 ILCS 5/2-105.1 new) | ||||||
9 | Sec. 2-105.1. Tier I participant. "Tier I participant": A | ||||||
10 | participant who first became a participant before January 1, | ||||||
11 | 2011. | ||||||
12 | (40 ILCS 5/2-105.2 new) | ||||||
13 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
14 | former Tier I participant who is receiving a retirement | ||||||
15 | annuity.
| ||||||
16 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
17 | Sec. 2-108. Salary. "Salary": (1) For members of the | ||||||
18 | General Assembly,
the total compensation paid to the member by | ||||||
19 | the State for one
year of service, including the additional | ||||||
20 | amounts, if any, paid to
the member as an officer pursuant to | ||||||
21 | Section 1 of "An Act
in relation to the compensation and | ||||||
22 | emoluments of the members of the
General Assembly", approved | ||||||
23 | December 6, 1907, as now or hereafter
amended.
|
| |||||||
| |||||||
1 | (2) For the State executive officers specified
in Section | ||||||
2 | 2-105, the total compensation paid to the member for one year
| ||||||
3 | of service.
| ||||||
4 | (3) For members of the System who are participants under | ||||||
5 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
6 | of the House of
Representatives or Secretary or Assistant | ||||||
7 | Secretary of the Senate, the
total compensation paid to the | ||||||
8 | member for one year of service, but not to
exceed the salary of | ||||||
9 | the highest salaried officer of the General Assembly.
| ||||||
10 | However, in the event that federal law results in any | ||||||
11 | participant
receiving imputed income based on the value of | ||||||
12 | group term life insurance
provided by the State, such imputed | ||||||
13 | income shall not be included in salary
for the purposes of this | ||||||
14 | Article.
| ||||||
15 | Notwithstanding any other provision of this Code, the | ||||||
16 | salary of a Tier I participant for the purposes of this Code | ||||||
17 | shall not exceed, for periods of service in a term of office | ||||||
18 | beginning on or after the effective date of this amendatory Act | ||||||
19 | of the 98th General Assembly, the greater of (i) the annual | ||||||
20 | contribution and benefit base established for the applicable | ||||||
21 | year by the Commissioner of Social Security under the federal | ||||||
22 | Social Security Act or (ii) the annual salary of the | ||||||
23 | participant during the 365 days immediately preceding that | ||||||
24 | effective date. | ||||||
25 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
| ||||||
2 | Sec. 2-119. Retirement annuity - conditions for | ||||||
3 | eligibility. | ||||||
4 | (a)
A participant whose service as a
member is terminated, | ||||||
5 | regardless of age or cause, is entitled to a retirement
annuity | ||||||
6 | beginning on the date specified by the participant in
a written | ||||||
7 | application subject to the following conditions:
| ||||||
8 | 1. The date the annuity begins does not precede
the | ||||||
9 | date of final
termination of service, or is not more than | ||||||
10 | 30 days before the receipt
of the application
by the board | ||||||
11 | in the case of annuities based on disability or one year | ||||||
12 | before
the receipt of the application in the case of | ||||||
13 | annuities
based on attained age;
| ||||||
14 | 2. The participant meets one of the following | ||||||
15 | eligibility requirements: | ||||||
16 | For a participant who first becomes a participant of | ||||||
17 | this System before January 1, 2011 (the effective date of | ||||||
18 | Public Act 96-889):
| ||||||
19 | (A) He or she has attained age 55 and has at least | ||||||
20 | 8 years of service credit;
| ||||||
21 | (B) He or she has attained age 62 and terminated | ||||||
22 | service after July 1,
1971 with at least 4 years of | ||||||
23 | service credit; or
| ||||||
24 | (C) He or she has completed 8 years of service and | ||||||
25 | has become
permanently disabled and as a consequence, | ||||||
26 | is unable to perform the duties
of his or her office.
|
| |||||||
| |||||||
1 | For a participant who first becomes a participant of | ||||||
2 | this System on or after January 1, 2011 (the effective date | ||||||
3 | of Public Act 96-889), he or she has attained age 67 and | ||||||
4 | has at least 8 years of service credit. | ||||||
5 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
6 | Tier I participant who begins receiving a retirement annuity | ||||||
7 | under this Section after July 1, 2013: | ||||||
8 | (1) If the Tier I participant is at least 45 years old | ||||||
9 | on the effective date of this amendatory Act of the 98th | ||||||
10 | General Assembly, then the references to age 55 and 62 in | ||||||
11 | subsection (a) of this Section remain unchanged. | ||||||
12 | (2) If the Tier I participant is at least 40 but less | ||||||
13 | than 45 years old on the effective date of this amendatory | ||||||
14 | Act of the 98th General Assembly, then the references to | ||||||
15 | age 55 and 62 in subsection (a) of this Section are | ||||||
16 | increased by one year. | ||||||
17 | (3) If the Tier I participant is at least 35 but less | ||||||
18 | than 40 years old on the effective date of this amendatory | ||||||
19 | Act of the 98th General Assembly, then the references to | ||||||
20 | age 55 and 62 in subsection (a) of this Section are | ||||||
21 | increased by 3 years. | ||||||
22 | (4) If the Tier I participant is less than 35 years old | ||||||
23 | on the effective date of this amendatory Act of the 98th | ||||||
24 | General Assembly, then the references to age 55 and 62 in | ||||||
25 | subsection (a) of this Section are increased by 5 years. | ||||||
26 | Notwithstanding Section 1-103.1, this subsection (a-5) |
| |||||||
| |||||||
1 | applies without regard to whether or not the Tier I member is | ||||||
2 | in active service under this Article on or after the effective | ||||||
3 | date of this amendatory Act of the 98th General Assembly. | ||||||
4 | (a-5) A participant who first becomes a participant of this | ||||||
5 | System on or after January 1, 2011 (the effective date of | ||||||
6 | Public Act 96-889) who has attained age 62 and has at least 8 | ||||||
7 | years of service credit may elect to receive the lower | ||||||
8 | retirement annuity provided
in paragraph (c) of Section | ||||||
9 | 2-119.01 of this Code. | ||||||
10 | (b) A participant shall be considered permanently disabled | ||||||
11 | only if:
(1) disability occurs while in service and is
of such | ||||||
12 | a nature
as to prevent him or her from reasonably performing | ||||||
13 | the duties of his
or her office at
the time; and (2) the board | ||||||
14 | has received a written certificate by at
least 2 licensed | ||||||
15 | physicians appointed by the board stating that the member is
| ||||||
16 | disabled and that the disability is likely to be permanent.
| ||||||
17 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
18 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| ||||||
19 | Sec. 2-119.1. Automatic increase in retirement annuity.
| ||||||
20 | (a) Except as provided in subsections (a-1) and (a-2), a A | ||||||
21 | participant who retires after June 30, 1967, and who has not
| ||||||
22 | received an initial increase under this Section before the | ||||||
23 | effective date
of this amendatory Act of 1991, shall, in | ||||||
24 | January or July next following
the first anniversary of | ||||||
25 | retirement, whichever occurs first, and in the same
month of |
| |||||||
| |||||||
1 | each year thereafter, but in no event prior to age 60, have the | ||||||
2 | amount
of the originally granted retirement annuity increased | ||||||
3 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
4 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
5 | thereafter, 3%. Annuitants who have received an initial
| ||||||
6 | increase under this subsection prior to the effective date of | ||||||
7 | this amendatory
Act of 1991 shall continue to receive their | ||||||
8 | annual increases in the same month
as the initial increase.
| ||||||
9 | (a-1) Notwithstanding any other provision of this Article, | ||||||
10 | for a Tier I retiree, the amount of each automatic annual | ||||||
11 | increase in retirement annuity occurring on or after the | ||||||
12 | effective date of this amendatory Act of the 98th General | ||||||
13 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
14 | payable at the time of the increase, including previous | ||||||
15 | increases granted. | ||||||
16 | (a-2) Notwithstanding any other provision of this Article, | ||||||
17 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
18 | first be subject to annual increases on the January 1 occurring | ||||||
19 | on or next after the attainment of age 67 or the January 1 | ||||||
20 | occurring on or next after the fifth anniversary of the annuity | ||||||
21 | start date, whichever occurs earlier. If on the effective date | ||||||
22 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
23 | retiree has already received an annual increase under this | ||||||
24 | Section but does not yet meet the new eligibility requirements | ||||||
25 | of this subsection, the annual increases already received shall | ||||||
26 | continue in force, but no additional annual increase shall be |
| |||||||
| |||||||
1 | granted until the Tier I retiree meets the new eligibility | ||||||
2 | requirements. | ||||||
3 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
4 | and (a-2) apply without regard to whether or not the Tier I | ||||||
5 | retiree is in active service under this Article on or after the | ||||||
6 | effective date of this amendatory Act of the 98th General | ||||||
7 | Assembly. | ||||||
8 | (b) Beginning January 1, 1990, for eligible participants | ||||||
9 | who remain
in service after attaining 20 years of creditable | ||||||
10 | service, the 3% increases
provided under subsection (a) shall | ||||||
11 | begin to accrue on the January 1 next
following the date upon | ||||||
12 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
13 | years of creditable service, whichever occurs later, and shall
| ||||||
14 | continue to accrue while the participant remains in service; | ||||||
15 | such increases
shall become payable on January 1 or July 1, | ||||||
16 | whichever occurs first, next
following the first anniversary of | ||||||
17 | retirement. For any person who has service
credit in the System | ||||||
18 | for the entire period from January 15, 1969 through
December | ||||||
19 | 31, 1992, regardless of the date of termination of service, the
| ||||||
20 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
21 | be deemed to
mean age 50.
| ||||||
22 | This subsection (b) does not apply to any person who first | ||||||
23 | becomes a
member of the System after August 8, 2003 ( the | ||||||
24 | effective date of Public Act 93-494) this amendatory Act of
the | ||||||
25 | 93rd General Assembly .
| ||||||
26 | (b-5) Notwithstanding any other provision of this Article, |
| |||||||
| |||||||
1 | a participant who first becomes a participant on or after | ||||||
2 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
3 | shall, in January or July next following the first anniversary | ||||||
4 | of retirement, whichever occurs first, and in the same month of | ||||||
5 | each year thereafter, but in no event prior to age 67, have the | ||||||
6 | amount of the originally granted retirement annuity then being | ||||||
7 | paid increased by 3% or one-half the annual unadjusted | ||||||
8 | percentage increase in the Consumer Price Index for All Urban | ||||||
9 | Consumers as determined by the Public Pension Division of the | ||||||
10 | Department of Insurance under subsection (a) of Section | ||||||
11 | 2-108.1, whichever is less. The changes made to this subsection | ||||||
12 | by this amendatory Act of the 98th General Assembly do not | ||||||
13 | apply to any automatic annual increase granted under this | ||||||
14 | subsection before the effective date of this amendatory Act. | ||||||
15 | (c) The foregoing provisions relating to automatic | ||||||
16 | increases are not
applicable to a participant who retires | ||||||
17 | before having made contributions
(at the rate prescribed in | ||||||
18 | Section 2-126) for automatic increases for less
than the | ||||||
19 | equivalent of one full year. However, in order to be eligible | ||||||
20 | for
the automatic increases, such a participant may make | ||||||
21 | arrangements to pay
to the system the amount required to bring | ||||||
22 | the total contributions for the
automatic increase to the | ||||||
23 | equivalent of one year's contributions based upon
his or her | ||||||
24 | last salary.
| ||||||
25 | (d) A participant who terminated service prior to July 1, | ||||||
26 | 1967, with at
least 14 years of service is entitled to an |
| |||||||
| |||||||
1 | increase in retirement annuity
beginning January, 1976, and to | ||||||
2 | additional increases in January of each
year thereafter.
| ||||||
3 | The initial increase shall be 1 1/2% of the originally | ||||||
4 | granted retirement
annuity multiplied by the number of full | ||||||
5 | years that the annuitant was in
receipt of such annuity prior | ||||||
6 | to January 1, 1972, plus 2% of the originally
granted | ||||||
7 | retirement annuity for each year after that date. The | ||||||
8 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
9 | originally granted
retirement annuity for each year through | ||||||
10 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
11 | (e) Beginning January 1, 1990, all automatic annual | ||||||
12 | increases payable
under this Section shall be calculated as a | ||||||
13 | percentage of the total annuity
payable at the time of the | ||||||
14 | increase, including previous increases granted
under this | ||||||
15 | Article.
| ||||||
16 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
17 | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
| ||||||
18 | Sec. 2-121.1. Survivor's annuity - amount.
| ||||||
19 | (a) A surviving spouse shall be entitled to 66 2/3% of the | ||||||
20 | amount of
retirement annuity to which the participant or | ||||||
21 | annuitant was entitled on
the date of death, without regard to | ||||||
22 | whether the participant had attained
age 55 prior to his or her | ||||||
23 | death, subject to a minimum payment of 10% of
salary. If a | ||||||
24 | surviving spouse, regardless of age, has in his or her care
at | ||||||
25 | the date of death any eligible child or children of the |
| |||||||
| |||||||
1 | participant, the
survivor's annuity shall be the greater of the | ||||||
2 | following: (1) 66 2/3% of
the amount of retirement annuity to | ||||||
3 | which the participant or annuitant was
entitled on the date of | ||||||
4 | death, or (2) 30% of the participant's salary
increased by 10% | ||||||
5 | of salary on account of each such child, subject to a
total | ||||||
6 | payment for the surviving spouse and children of 50% of salary. | ||||||
7 | If
eligible children survive but there is no surviving spouse, | ||||||
8 | or if the
surviving spouse dies or becomes disqualified by
| ||||||
9 | remarriage while eligible children survive, each
eligible | ||||||
10 | child shall be entitled to an annuity of 20% of salary, subject
| ||||||
11 | to a maximum total payment for all such children of 50% of | ||||||
12 | salary.
| ||||||
13 | However, the survivor's annuity payable under this Section | ||||||
14 | shall not be
less than 100% of the amount of retirement annuity | ||||||
15 | to which the participant
or annuitant was entitled on the date | ||||||
16 | of death, if he or she is survived by
a dependent disabled | ||||||
17 | child.
| ||||||
18 | The salary to be used for determining these benefits shall | ||||||
19 | be the
salary used for determining the amount of retirement | ||||||
20 | annuity as provided
in Section 2-119.01.
| ||||||
21 | (b) Upon the death of a participant after the termination | ||||||
22 | of service or
upon death of an annuitant, the maximum total | ||||||
23 | payment to a surviving spouse
and eligible children, or to | ||||||
24 | eligible children alone if there is no surviving
spouse, shall | ||||||
25 | be 75% of the retirement annuity to which the participant
or | ||||||
26 | annuitant was entitled, unless there is a dependent disabled |
| |||||||
| |||||||
1 | child
among the survivors.
| ||||||
2 | (c) When a child ceases to be an eligible child, the | ||||||
3 | annuity to that
child, or to the surviving spouse on account of | ||||||
4 | that child, shall thereupon
cease, and the annuity payable to | ||||||
5 | the surviving spouse or other eligible
children shall be | ||||||
6 | recalculated if necessary.
| ||||||
7 | Upon the ineligibility of the last eligible child, the | ||||||
8 | annuity shall
immediately revert to the amount payable upon | ||||||
9 | death of a participant or
annuitant who leaves no eligible | ||||||
10 | children. If the surviving spouse is then
under age 50, the | ||||||
11 | annuity as revised shall be deferred until the attainment
of | ||||||
12 | age 50.
| ||||||
13 | (d) Beginning January 1, 1990, every survivor's annuity | ||||||
14 | shall be increased
(1) on each January 1 occurring on or after | ||||||
15 | the commencement of the annuity if
the deceased member died | ||||||
16 | while receiving a retirement annuity, or (2) in
other cases, on | ||||||
17 | each January 1 occurring on or after the first anniversary
of | ||||||
18 | the commencement of the annuity, by an amount equal to 3% of | ||||||
19 | the current
amount of the annuity, including any previous | ||||||
20 | increases under this Article.
Such increases shall apply | ||||||
21 | without regard to whether the deceased member
was in service on | ||||||
22 | or after the effective date of this amendatory Act of
1991, but | ||||||
23 | shall not accrue for any period prior to January 1, 1990.
| ||||||
24 | (d-5) Notwithstanding any other provision of this Article, | ||||||
25 | the initial survivor's annuity of a survivor of a participant | ||||||
26 | who first becomes a participant on or after January 1, 2011 |
| |||||||
| |||||||
1 | (the effective date of Public Act 96-889) shall be in the | ||||||
2 | amount of 66 2/3% of the amount of the retirement annuity to | ||||||
3 | which the participant or annuitant was entitled on the date of | ||||||
4 | death and shall be increased (1) on each January 1 occurring on | ||||||
5 | or after the commencement of the annuity if
the deceased member | ||||||
6 | died while receiving a retirement annuity or (2) in
other | ||||||
7 | cases, on each January 1 occurring on or after the first | ||||||
8 | anniversary
of the commencement of the annuity, by an amount | ||||||
9 | equal to 3% or one-half the annual unadjusted percentage | ||||||
10 | increase in the Consumer Price Index for All Urban Consumers as | ||||||
11 | determined by the Public Pension Division of the Department of | ||||||
12 | Insurance under subsection (a) of Section 2-108.1, whichever is | ||||||
13 | less, of the originally granted survivor's annuity then being | ||||||
14 | paid . The changes made to this subsection by this amendatory | ||||||
15 | Act of the 98th General Assembly do not apply to any automatic | ||||||
16 | annual increase granted under this subsection before the | ||||||
17 | effective date of this amendatory Act. | ||||||
18 | (e) Notwithstanding any other provision of this Article, | ||||||
19 | beginning
January 1, 1990, the minimum survivor's annuity | ||||||
20 | payable to any person who
is entitled to receive a survivor's | ||||||
21 | annuity under this Article shall be
$300 per month, without | ||||||
22 | regard to whether or not the deceased participant
was in | ||||||
23 | service on the effective date of this amendatory Act of 1989.
| ||||||
24 | (f) In the case of a proportional survivor's annuity | ||||||
25 | arising under
the Retirement Systems Reciprocal Act where the | ||||||
26 | amount payable by the
System on January 1, 1993 is less than |
| |||||||
| |||||||
1 | $300 per month, the amount payable
by the System shall be | ||||||
2 | increased beginning on that date by a monthly amount
equal to | ||||||
3 | $2 for each full year that has expired since the annuity began.
| ||||||
4 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
5 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
6 | Sec. 2-124. Contributions by State.
| ||||||
7 | (a) The State shall make contributions to the System by
| ||||||
8 | appropriations of amounts which, together with the | ||||||
9 | contributions of
participants, interest earned on investments, | ||||||
10 | and other income
will meet the cost of maintaining and | ||||||
11 | administering the System on a 100% 90%
funded basis in | ||||||
12 | accordance with actuarial recommendations by the end of State | ||||||
13 | fiscal year 2043 .
| ||||||
14 | (b) The Board shall determine the amount of State
| ||||||
15 | contributions required for each fiscal year on the basis of the
| ||||||
16 | actuarial tables and other assumptions adopted by the Board and | ||||||
17 | the
prescribed rate of interest, using the formula in | ||||||
18 | subsection (c).
| ||||||
19 | (c) For State fiscal years 2014 through 2043, the minimum | ||||||
20 | contribution
to the System to be made by the State for each | ||||||
21 | fiscal year shall be an amount
determined by the System to be | ||||||
22 | equal to the sum of (1) the State's portion of the projected | ||||||
23 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
24 | to bring the total assets of the
System up to 100% of the total | ||||||
25 | actuarial liabilities of the System by the end of
State fiscal |
| |||||||
| |||||||
1 | year 2043. In making these determinations, the required State
| ||||||
2 | contribution shall be calculated each year as a level | ||||||
3 | percentage of payroll
over the years remaining to and including | ||||||
4 | fiscal year 2043 and shall be
determined under the projected | ||||||
5 | unit credit actuarial cost method. | ||||||
6 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
7 | minimum contribution
to the System to be made by the State for | ||||||
8 | each fiscal year shall be an amount
determined by the System to | ||||||
9 | be sufficient to bring the total assets of the
System up to 90% | ||||||
10 | of the total actuarial liabilities of the System by the end of
| ||||||
11 | State fiscal year 2045. In making these determinations, the | ||||||
12 | required State
contribution shall be calculated each year as a | ||||||
13 | level percentage of payroll
over the years remaining to and | ||||||
14 | including fiscal year 2045 and shall be
determined under the | ||||||
15 | projected unit credit actuarial cost method.
| ||||||
16 | For State fiscal years 1996 through 2005, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | so that by State fiscal year 2011, the
State is contributing at | ||||||
20 | the rate required under this Section.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State
contribution for State fiscal year 2006 is | ||||||
23 | $4,157,000.
| ||||||
24 | Notwithstanding any other provision of this Article, the | ||||||
25 | total required State
contribution for State fiscal year 2007 is | ||||||
26 | $5,220,300.
|
| |||||||
| |||||||
1 | For each of State fiscal years 2008 through 2009, the State | ||||||
2 | contribution to
the System, as a percentage of the applicable | ||||||
3 | employee payroll, shall be
increased in equal annual increments | ||||||
4 | from the required State contribution for State fiscal year | ||||||
5 | 2007, so that by State fiscal year 2011, the
State is | ||||||
6 | contributing at the rate otherwise required under this Section.
| ||||||
7 | Notwithstanding any other provision of this Article, the | ||||||
8 | total required State contribution for State fiscal year 2010 is | ||||||
9 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
10 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
11 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
12 | expenses determined by the System's share of total bond | ||||||
13 | proceeds, (ii) any amounts received from the General Revenue | ||||||
14 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
15 | proceeds due to the issuance of discounted bonds, if | ||||||
16 | applicable. | ||||||
17 | Notwithstanding any other provision of this Article, the
| ||||||
18 | total required State contribution for State fiscal year 2011 is
| ||||||
19 | the amount recertified by the System on or before April 1, 2011 | ||||||
20 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
21 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
22 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
23 | bond sale
expenses determined by the System's share of total | ||||||
24 | bond
proceeds, (ii) any amounts received from the General | ||||||
25 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
26 | bond
proceeds due to the issuance of discounted bonds, if
|
| |||||||
| |||||||
1 | applicable. | ||||||
2 | Beginning in State fiscal year 2044, the minimum State | ||||||
3 | contribution for each fiscal year shall be the amount needed to | ||||||
4 | maintain the total assets of the System at 100% of the total | ||||||
5 | actuarial liabilities of the System. | ||||||
6 | Beginning in State fiscal year 2046, the minimum State | ||||||
7 | contribution for
each fiscal year shall be the amount needed to | ||||||
8 | maintain the total assets of
the System at 90% of the total | ||||||
9 | actuarial liabilities of the System.
| ||||||
10 | Amounts received by the System pursuant to Section 25 of | ||||||
11 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
12 | Finance Act in any fiscal year do not reduce and do not | ||||||
13 | constitute payment of any portion of the minimum State | ||||||
14 | contribution required under this Article in that fiscal year. | ||||||
15 | Such amounts shall not reduce, and shall not be included in the | ||||||
16 | calculation of, the required State contributions under this | ||||||
17 | Article in any future year until the System has reached a | ||||||
18 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
19 | to the "required State contribution" or any substantially | ||||||
20 | similar term does not include or apply to any amounts payable | ||||||
21 | to the System under Section 25 of the Budget Stabilization 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
| ||||||
26 | certified under Section 2-134, shall not exceed an amount equal |
| |||||||
| |||||||
1 | to (i) the
amount of the required State contribution that would | ||||||
2 | have been calculated under
this Section for that fiscal year if | ||||||
3 | the System had not received any payments
under subsection (d) | ||||||
4 | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | ||||||
5 | the portion of the State's total debt service payments for that | ||||||
6 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
7 | purposes of that Section 7.2, as determined
and certified by | ||||||
8 | the Comptroller, that is the same as the System's portion of
| ||||||
9 | the total moneys distributed under subsection (d) of Section | ||||||
10 | 7.2 of the General
Obligation Bond Act. In determining this | ||||||
11 | maximum for State fiscal years 2008 through 2010, however, the | ||||||
12 | amount referred to in item (i) shall be increased, as a | ||||||
13 | percentage of the applicable employee payroll, in equal | ||||||
14 | increments calculated from the sum of the required State | ||||||
15 | contribution for State fiscal year 2007 plus the applicable | ||||||
16 | portion of the State's total debt service payments for fiscal | ||||||
17 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
18 | purposes of Section 7.2 of the General
Obligation Bond Act, so | ||||||
19 | that, by State fiscal year 2011, the
State is contributing at | ||||||
20 | the rate otherwise required under this Section.
| ||||||
21 | (d) For purposes of determining the required State | ||||||
22 | contribution to the System, the value of the System's assets | ||||||
23 | shall be equal to the actuarial value of the System's assets, | ||||||
24 | which shall be calculated as follows: | ||||||
25 | As of June 30, 2008, the actuarial value of the System's | ||||||
26 | assets shall be equal to the market value of the assets as of |
| |||||||
| |||||||
1 | that date. In determining the actuarial value of the System's | ||||||
2 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
3 | gains or losses from investment return incurred in a fiscal | ||||||
4 | year shall be recognized in equal annual amounts over the | ||||||
5 | 5-year period following that fiscal year. | ||||||
6 | (e) For purposes of determining the required State | ||||||
7 | contribution to the system for a particular year, the actuarial | ||||||
8 | value of assets shall be assumed to earn a rate of return equal | ||||||
9 | to the system's actuarially assumed rate of return. | ||||||
10 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
11 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
12 | 7-13-12.)
| ||||||
13 | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
| ||||||
14 | Sec. 2-125. Obligations of State ; funding guarantee . | ||||||
15 | (a) The payment of (1) the required State contributions, | ||||||
16 | (2) all benefits
granted under this system and (3) all expenses | ||||||
17 | of administration and
operation are obligations of the State to | ||||||
18 | the extent specified in this
Article.
| ||||||
19 | (b) All income, interest and dividends derived from | ||||||
20 | deposits and investments
shall be credited to the account of | ||||||
21 | the system in the State Treasury and
used to pay benefits under | ||||||
22 | this Article.
| ||||||
23 | (c) Beginning July 1, 2013, the State shall be | ||||||
24 | contractually obligated to contribute to the System under | ||||||
25 | Section 2-124 in each State fiscal year an amount not less than |
| |||||||
| |||||||
1 | the sum of (i) the State's normal cost for that year and
(ii) | ||||||
2 | the portion of the unfunded accrued liability assigned to that | ||||||
3 | year by law in accordance with a schedule that distributes | ||||||
4 | payments equitably over a reasonable period of time and in | ||||||
5 | accordance with accepted actuarial practices. The obligations | ||||||
6 | created under this subsection (c) are contractual obligations | ||||||
7 | protected and enforceable under Article I, Section 16 and | ||||||
8 | Article XIII, Section 5 of the Illinois Constitution. | ||||||
9 | Notwithstanding any other provision of law, if the State | ||||||
10 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
11 | this subsection, the System may bring a mandamus action in the | ||||||
12 | Circuit Court of Sangamon County to compel the State to make | ||||||
13 | that payment, irrespective of other remedies that
may be | ||||||
14 | available to the System. In ordering the State to make the | ||||||
15 | required payment, the court may order a reasonable payment | ||||||
16 | schedule to enable the State to make the required payment | ||||||
17 | without significantly imperiling the public health, safety, or | ||||||
18 | welfare. | ||||||
19 | Any payments required to be made by the State pursuant to | ||||||
20 | this subsection (c)
are expressly subordinated to the payment | ||||||
21 | of the principal, interest, and premium, if any, on any
bonded | ||||||
22 | debt obligation of the State or any other State-created entity, | ||||||
23 | either currently outstanding or to
be issued, for which the | ||||||
24 | source of repayment or security thereon is derived directly or | ||||||
25 | indirectly from
tax revenues collected by the State or any | ||||||
26 | other State-created entity. Payments on such bonded
|
| |||||||
| |||||||
1 | obligations include any statutory fund transfers or other | ||||||
2 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
3 | in State law or bond indentures, into debt service funds or | ||||||
4 | accounts of the State
related to such bonded obligations, | ||||||
5 | consistent with the payment schedules associated with such
| ||||||
6 | obligations. | ||||||
7 | (Source: P.A. 83-1440.)
| ||||||
8 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| ||||||
9 | Sec. 2-126. Contributions by participants.
| ||||||
10 | (a) Each participant shall contribute toward the cost of | ||||||
11 | his or her
retirement annuity a percentage of each payment of | ||||||
12 | salary received by him or
her for service as a member as | ||||||
13 | follows: for service between October 31, 1947
and January 1, | ||||||
14 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
15 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
16 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
17 | service after December 31, 1981, 8 1/2%.
| ||||||
18 | (a-5) In addition to the contributions otherwise required | ||||||
19 | under this Article, each Tier I participant shall also make the | ||||||
20 | following contributions toward the cost of his or her | ||||||
21 | retirement annuity from each payment
of salary received by him | ||||||
22 | or her for service as a member: | ||||||
23 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
24 | 1% of salary; and | ||||||
25 | (2) beginning on July 1, 2014, 2% of salary. |
| |||||||
| |||||||
1 | (b) Beginning August 2, 1949, each male participant, and | ||||||
2 | from July 1,
1971, each female participant shall contribute | ||||||
3 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
4 | A participant who has no eligible survivor's annuity | ||||||
5 | beneficiary may elect
to cease making contributions for | ||||||
6 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
7 | shall not be payable upon the death of a person who has
made | ||||||
8 | this election, unless prior to that death the election has been | ||||||
9 | revoked
and the amount of the contributions that would have | ||||||
10 | been paid under this
subsection in the absence of the election | ||||||
11 | is paid to the System, together
with interest at the rate of 4% | ||||||
12 | per year from the date the contributions
would have been made | ||||||
13 | to the date of payment.
| ||||||
14 | (c) Beginning July 1, 1967, each participant shall | ||||||
15 | contribute 1% of
salary towards the cost of automatic increase | ||||||
16 | in annuity provided in
Section 2-119.1. These contributions | ||||||
17 | shall be made concurrently with
contributions for retirement | ||||||
18 | annuity purposes.
| ||||||
19 | (d) In addition, each participant serving as an officer of | ||||||
20 | the General
Assembly shall contribute, for the same purposes | ||||||
21 | and at the same rates
as are required of a regular participant, | ||||||
22 | on each additional payment
received as an officer. If the | ||||||
23 | participant serves as an
officer for at least 2 but less than 4 | ||||||
24 | years, he or she shall
contribute an amount equal to the amount | ||||||
25 | that would have been contributed
had the participant served as | ||||||
26 | an officer for 4 years. Persons who serve
as officers in the |
| |||||||
| |||||||
1 | 87th General Assembly but cannot receive the additional
payment | ||||||
2 | to officers because of the ban on increases in salary during | ||||||
3 | their
terms may nonetheless make contributions based on those | ||||||
4 | additional payments
for the purpose of having the additional | ||||||
5 | payments included in their highest
salary for annuity purposes; | ||||||
6 | however, persons electing to make these
additional | ||||||
7 | contributions must also pay an amount representing the
| ||||||
8 | corresponding employer contributions, as calculated by the | ||||||
9 | System.
| ||||||
10 | (e) Notwithstanding any other provision of this Article, | ||||||
11 | the required contribution of a participant who first becomes a | ||||||
12 | participant on or after January 1, 2011 shall not exceed the | ||||||
13 | contribution that would be due under this Article if that | ||||||
14 | participant's highest salary for annuity purposes were | ||||||
15 | $106,800, plus any increases in that amount under Section | ||||||
16 | 2-108.1. | ||||||
17 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
18 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
19 | Sec. 2-134. To certify required State contributions and | ||||||
20 | submit vouchers.
| ||||||
21 | (a) The Board shall certify to the Governor on or before | ||||||
22 | December 15 of each
year through until December 15, 2011 the | ||||||
23 | amount of the required State contribution to the System for the | ||||||
24 | next
fiscal year and shall specifically identify the System's | ||||||
25 | projected State normal cost for that fiscal year . The |
| |||||||
| |||||||
1 | certification shall include a copy of the actuarial
| ||||||
2 | recommendations upon which it is based and shall specifically | ||||||
3 | identify the System's projected State normal cost for that | ||||||
4 | fiscal year .
| ||||||
5 | (a-5) On or before November 1 of each year, beginning | ||||||
6 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
7 | the Governor, and the General Assembly a proposed certification | ||||||
8 | of the amount of the required State contribution to the System | ||||||
9 | for the next fiscal year, along with all of the actuarial | ||||||
10 | assumptions, calculations, and data upon which that proposed | ||||||
11 | certification is based. On or before January 1 of each year , | ||||||
12 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
13 | preliminary report concerning the proposed certification and | ||||||
14 | identifying, if necessary, recommended changes in actuarial | ||||||
15 | assumptions that the Board must consider before finalizing its | ||||||
16 | certification of the required State contributions. | ||||||
17 | On or before January 15, 2013 and every January 15 | ||||||
18 | thereafter, the Board shall certify to the Governor and the | ||||||
19 | General Assembly the amount of the required State contribution | ||||||
20 | for the next fiscal year. The Board's certification shall | ||||||
21 | include a copy of the actuarial recommendations upon which it | ||||||
22 | is based and shall specifically identify the System's projected | ||||||
23 | State normal cost for that fiscal year. The Board's | ||||||
24 | certification must note any deviations from the State Actuary's | ||||||
25 | recommended changes, the reason or reasons for not following | ||||||
26 | the State Actuary's recommended changes, and the fiscal impact |
| |||||||
| |||||||
1 | of not following the State Actuary's recommended changes on the | ||||||
2 | required State contribution. | ||||||
3 | (a-7) On or before May 1, 2004, the Board shall recalculate | ||||||
4 | and recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
| ||||||
9 | On or before July 1, 2005, the Board shall recalculate and | ||||||
10 | recertify
to the Governor the amount of the required State
| ||||||
11 | contribution to the System for State fiscal year 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by this amendatory Act of the 94th General Assembly.
| ||||||
14 | On or before April 1, 2011, the Board shall recalculate and | ||||||
15 | recertify to the Governor the amount of the required State | ||||||
16 | contribution to the System for State fiscal year 2011, applying | ||||||
17 | the changes made by Public Act 96-889 to the System's assets | ||||||
18 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
19 | was approved on that date. | ||||||
20 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
21 | possible after the
15th day of each month the Board shall | ||||||
22 | submit vouchers for payment of State
contributions to the | ||||||
23 | System, in a total monthly amount of one-twelfth of the
| ||||||
24 | required annual State contribution certified under subsection | ||||||
25 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
26 | General Assembly through June 30, 2004, the Board shall not
|
| |||||||
| |||||||
1 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
2 | of the
fiscal year 2004 certified contribution amount | ||||||
3 | determined
under this Section after taking into consideration | ||||||
4 | the transfer to the
System under subsection (d) of Section | ||||||
5 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
6 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
7 | funds appropriated to the System for that fiscal year. If in | ||||||
8 | any month
the amount remaining unexpended from all other | ||||||
9 | appropriations to the System for
the applicable fiscal year | ||||||
10 | (including the appropriations to the System under
Section 8.12 | ||||||
11 | of the State Finance Act and Section 1 of the State Pension | ||||||
12 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
13 | lawfully vouchered under
this Section, the difference shall be | ||||||
14 | paid from the General Revenue Fund under
the continuing | ||||||
15 | appropriation authority provided in Section 1.1 of the State
| ||||||
16 | Pension Funds Continuing Appropriation Act.
| ||||||
17 | (c) The full amount of any annual appropriation for the | ||||||
18 | System for
State fiscal year 1995 shall be transferred and made | ||||||
19 | available to the System
at the beginning of that fiscal year at | ||||||
20 | the request of the Board.
Any excess funds remaining at the end | ||||||
21 | of any fiscal year from appropriations
shall be retained by the | ||||||
22 | System as a general reserve to meet the System's
accrued | ||||||
23 | liabilities.
| ||||||
24 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
25 | 97-694, eff. 6-18-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-162)
| ||||||
2 | Sec. 2-162. Application and expiration of new benefit | ||||||
3 | increases. | ||||||
4 | (a) As used in this Section, "new benefit increase" means | ||||||
5 | an increase in the amount of any benefit provided under this | ||||||
6 | Article, or an expansion of the conditions of eligibility for | ||||||
7 | any benefit under this Article, that results from an amendment | ||||||
8 | to this Code that takes effect after the effective date of this | ||||||
9 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
10 | increase", however, does not include any benefit increase | ||||||
11 | resulting from the changes made to this Article by this | ||||||
12 | amendatory Act of the 98th General Assembly. | ||||||
13 | (b) Notwithstanding any other provision of this Code or any | ||||||
14 | subsequent amendment to this Code, every new benefit increase | ||||||
15 | is subject to this Section and shall be deemed to be granted | ||||||
16 | only in conformance with and contingent upon compliance with | ||||||
17 | the provisions of this Section.
| ||||||
18 | (c) The Public Act enacting a new benefit increase must | ||||||
19 | identify and provide for payment to the System of additional | ||||||
20 | funding at least sufficient to fund the resulting annual | ||||||
21 | increase in cost to the System as it accrues. | ||||||
22 | Every new benefit increase is contingent upon the General | ||||||
23 | Assembly providing the additional funding required under this | ||||||
24 | subsection. The Commission on Government Forecasting and | ||||||
25 | Accountability shall analyze whether adequate additional | ||||||
26 | funding has been provided for the new benefit increase and |
| |||||||
| |||||||
1 | shall report its analysis to the Public Pension Division of the | ||||||
2 | Department of Financial and Professional Regulation. A new | ||||||
3 | benefit increase created by a Public Act that does not include | ||||||
4 | the additional funding required under this subsection is null | ||||||
5 | and void. If the Public Pension Division determines that the | ||||||
6 | additional funding provided for a new benefit increase under | ||||||
7 | this subsection is or has become inadequate, it may so certify | ||||||
8 | to the Governor and the State Comptroller and, in the absence | ||||||
9 | of corrective action by the General Assembly, the new benefit | ||||||
10 | increase shall expire at the end of the fiscal year in which | ||||||
11 | the certification is made.
| ||||||
12 | (d) Every new benefit increase shall expire 5 years after | ||||||
13 | its effective date or on such earlier date as may be specified | ||||||
14 | in the language enacting the new benefit increase or provided | ||||||
15 | under subsection (c). This does not prevent the General | ||||||
16 | Assembly from extending or re-creating a new benefit increase | ||||||
17 | by law. | ||||||
18 | (e) Except as otherwise provided in the language creating | ||||||
19 | the new benefit increase, a new benefit increase that expires | ||||||
20 | under this Section continues to apply to persons who applied | ||||||
21 | and qualified for the affected benefit while the new benefit | ||||||
22 | increase was in effect and to the affected beneficiaries and | ||||||
23 | alternate payees of such persons, but does not apply to any | ||||||
24 | other person, including without limitation a person who | ||||||
25 | continues in service after the expiration date and did not | ||||||
26 | apply and qualify for the affected benefit while the new |
| |||||||
| |||||||
1 | benefit increase was in effect.
| ||||||
2 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
3 | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
| ||||||
4 | Sec. 14-103.10. Compensation.
| ||||||
5 | (a) For periods of service prior to January 1, 1978, the | ||||||
6 | full rate of salary
or wages payable to an employee for | ||||||
7 | personal services performed if he worked
the full normal | ||||||
8 | working period for his position, subject to the following
| ||||||
9 | maximum amounts: (1) prior to July 1, 1951, $400 per month or | ||||||
10 | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 | ||||||
11 | inclusive, $625 per month or $7,500
per year; (3) beginning | ||||||
12 | July 1, 1957, no limitation.
| ||||||
13 | In the case of service of an employee in a position | ||||||
14 | involving
part-time employment, compensation shall be | ||||||
15 | determined according to the
employees' earnings record.
| ||||||
16 | (b) For periods of service on and after January 1, 1978, | ||||||
17 | all
remuneration for personal services performed defined as | ||||||
18 | "wages" under
the Social Security Enabling Act, including that | ||||||
19 | part of such
remuneration which is in excess of any maximum | ||||||
20 | limitation provided in
such Act, and including any benefits | ||||||
21 | received by an employee under a sick
pay plan in effect before | ||||||
22 | January 1, 1981, but excluding lump sum salary
payments:
| ||||||
23 | (1) for vacation,
| ||||||
24 | (2) for accumulated unused sick leave,
| ||||||
25 | (3) upon discharge or dismissal,
|
| |||||||
| |||||||
1 | (4) for approved holidays.
| ||||||
2 | (c) For periods of service on or after December 16, 1978, | ||||||
3 | compensation
also includes any benefits, other than lump sum | ||||||
4 | salary payments made at
termination of employment, which an | ||||||
5 | employee receives or is eligible to
receive under a sick pay | ||||||
6 | plan authorized by law.
| ||||||
7 | (d) For periods of service after September 30, 1985, | ||||||
8 | compensation also
includes any remuneration for personal | ||||||
9 | services not included as "wages"
under the Social Security | ||||||
10 | Enabling Act, which is deducted for purposes of
participation | ||||||
11 | in a program established pursuant to Section 125 of the
| ||||||
12 | Internal Revenue Code or its successor laws.
| ||||||
13 | (e) For members for which Section 1-160 applies for periods | ||||||
14 | of service on and after January 1, 2011, all remuneration for | ||||||
15 | personal services performed defined as "wages" under the Social | ||||||
16 | Security Enabling Act, excluding remuneration that is in excess | ||||||
17 | of the annual earnings, salary, or wages of a member or | ||||||
18 | participant, as provided in subsection (b-5) of Section 1-160, | ||||||
19 | but including any benefits received by an employee under a sick | ||||||
20 | pay plan in effect before January 1, 1981.
Compensation shall | ||||||
21 | exclude lump sum salary payments: | ||||||
22 | (1) for vacation; | ||||||
23 | (2) for accumulated unused sick leave; | ||||||
24 | (3) upon discharge or dismissal; and | ||||||
25 | (4) for approved holidays. | ||||||
26 | (f) Notwithstanding any other provision of this Code, the |
| |||||||
| |||||||
1 | compensation of a Tier I member for the purposes of this Code | ||||||
2 | shall not exceed, for periods of service on or after the | ||||||
3 | effective date of this amendatory Act of the 98th General | ||||||
4 | Assembly, the greater of (i) the annual contribution and | ||||||
5 | benefit base established for the applicable year by the | ||||||
6 | Commissioner of Social Security under the federal Social | ||||||
7 | Security Act or (ii) the annual compensation of the member | ||||||
8 | during the 365 days immediately preceding that effective date; | ||||||
9 | except that this limitation does not apply to a member's | ||||||
10 | compensation that is determined under an employment contract or | ||||||
11 | collective bargaining agreement that is in effect on the | ||||||
12 | effective date of this amendatory Act of the 98th General | ||||||
13 | Assembly and has not been amended or renewed after that date. | ||||||
14 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
15 | (40 ILCS 5/14-103.40 new) | ||||||
16 | Sec. 14-103.40. Tier I member. "Tier I member": A member of | ||||||
17 | this System who first became a member or participant before | ||||||
18 | January 1, 2011 under any reciprocal retirement system or | ||||||
19 | pension fund established under this Code other than a | ||||||
20 | retirement system or pension fund established under Article 2, | ||||||
21 | 3, 4, 5, 6, or 18 of this Code. | ||||||
22 | (40 ILCS 5/14-103.41 new) | ||||||
23 | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former | ||||||
24 | Tier I member who is receiving a retirement annuity.
|
| |||||||
| |||||||
1 | (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
| ||||||
2 | Sec. 14-107. Retirement annuity - service and age - | ||||||
3 | conditions. | ||||||
4 | (a) A member is entitled to a retirement annuity after | ||||||
5 | having at least 8 years of
creditable service.
| ||||||
6 | (b) A member who has at least 35 years of creditable | ||||||
7 | service may claim his
or her retirement annuity at any age.
A | ||||||
8 | member having at least 8 years of creditable service but less | ||||||
9 | than 35 may
claim his or her retirement annuity upon or after | ||||||
10 | attainment of age 60
or, beginning January 1, 2001, any lesser | ||||||
11 | age which, when added to the
number of years of his or her | ||||||
12 | creditable service, equals at least 85.
A member upon or after | ||||||
13 | attainment of age 55 having at least 25 years of creditable | ||||||
14 | service (30 years if retirement is before
January 1, 2001) may | ||||||
15 | elect to receive the lower retirement annuity provided
in | ||||||
16 | paragraph (c) of Section 14-108 of this Code. For purposes of | ||||||
17 | the rule
of 85, portions of years shall be counted in whole | ||||||
18 | months.
| ||||||
19 | (c) Notwithstanding subsection (b) of this Section, for a | ||||||
20 | Tier I member who begins receiving a retirement annuity under | ||||||
21 | this Article after July 1, 2013: | ||||||
22 | (1) If the Tier I member is at least 45 years old on | ||||||
23 | the effective date of this amendatory Act of the 98th | ||||||
24 | General Assembly, then the references to age 55 and 60 in | ||||||
25 | subsection (b) of this Section remain unchanged and the |
| |||||||
| |||||||
1 | references to 85 in subsection (b) of this Section remain | ||||||
2 | unchanged. | ||||||
3 | (2) If the Tier I member is at least 40 but less than | ||||||
4 | 45 years old on the effective date of this amendatory Act | ||||||
5 | of the 98th General Assembly, then the references to age 55 | ||||||
6 | and 60 in subsection (b) of this Section are increased by | ||||||
7 | one year and the references to 85 in subsection (b) are | ||||||
8 | increased to 87. | ||||||
9 | (3) If the Tier I member is at least 35 but less than | ||||||
10 | 40 years old on the effective date of this amendatory Act | ||||||
11 | of the 98th General Assembly, then the references to age 55 | ||||||
12 | and 60 in subsection (b) of this Section are increased by 3 | ||||||
13 | years and the references to 85 in subsection (b) are | ||||||
14 | increased to 91. | ||||||
15 | (4) If the Tier I member is less than 35 years old on | ||||||
16 | the effective date of this amendatory Act of the 98th | ||||||
17 | General Assembly, then the references to age 55 and 60 in | ||||||
18 | subsection (b) of this Section are increased by 5 years and | ||||||
19 | the references to 85 in subsection (b) are increased to 95. | ||||||
20 | Notwithstanding Section 1-103.1, this subsection (c) | ||||||
21 | applies without regard to whether or not the Tier I member is | ||||||
22 | in active service under this Article on or after the effective | ||||||
23 | date of this amendatory Act of the 98th General Assembly. | ||||||
24 | (d) The allowance shall begin with the first full calendar | ||||||
25 | month specified in the
member's application therefor, the first | ||||||
26 | day of which shall not be before the
date of withdrawal as |
| |||||||
| |||||||
1 | approved by the board. Regardless of the date of
withdrawal, | ||||||
2 | the allowance need not begin within one year of application
| ||||||
3 | therefor.
| ||||||
4 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
5 | (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
| ||||||
6 | Sec. 14-108. Amount of retirement annuity. A member who has | ||||||
7 | contributed to the System for at least 12 months shall
be | ||||||
8 | entitled to a prior service annuity for each year of certified | ||||||
9 | prior
service credited to him, except that a member shall | ||||||
10 | receive 1/3 of the prior
service annuity for each year of | ||||||
11 | service for which contributions have been
made and all of such | ||||||
12 | annuity shall be payable after the member has made
| ||||||
13 | contributions for a period of 3 years. Proportionate amounts | ||||||
14 | shall be payable
for service of less than a full year after | ||||||
15 | completion of at least 12 months.
| ||||||
16 | The total period of service to be considered in | ||||||
17 | establishing the measure
of prior service annuity shall include | ||||||
18 | service credited in the Teachers'
Retirement System of the | ||||||
19 | State of Illinois and the State Universities
Retirement System | ||||||
20 | for which contributions have been made by the member to
such | ||||||
21 | systems; provided that at least 1 year of the total period of 3 | ||||||
22 | years
prescribed for the allowance of a full measure of prior | ||||||
23 | service annuity
shall consist of membership service in this | ||||||
24 | system for which credit has been
granted.
| ||||||
25 | (a) In the case of a member who retires on or after January |
| |||||||
| |||||||
1 | 1, 1998 and
is a noncovered employee, the retirement annuity | ||||||
2 | for membership service and
prior service shall be 2.2% of final | ||||||
3 | average compensation for each year of
service. Any service | ||||||
4 | credit established as a covered employee shall be
computed as | ||||||
5 | stated in
paragraph (b).
| ||||||
6 | (b) In the case of a member who retires on or after January | ||||||
7 | 1, 1998
and is a covered employee, the retirement annuity for | ||||||
8 | membership
service and prior service shall be computed as | ||||||
9 | stated in paragraph (a) for
all service credit established as a | ||||||
10 | noncovered employee; for service credit
established as a | ||||||
11 | covered employee it shall be 1.67% of final average
| ||||||
12 | compensation for each year of service.
| ||||||
13 | (c) For a member
retiring after attaining age 55 but before | ||||||
14 | age 60 with at least 30 but less
than 35 years of creditable | ||||||
15 | service if retirement is before January 1, 2001, or
with at | ||||||
16 | least 25 but less than 30 years of creditable service if | ||||||
17 | retirement is
on or after January 1, 2001, the retirement | ||||||
18 | annuity shall be reduced by 1/2
of 1% for each month that the | ||||||
19 | member's age is under age 60 at the time of
retirement. For | ||||||
20 | members to whom subsection (c) of Section 14-107 applies, the | ||||||
21 | references to age 55 and 60 in this subsection (c) are | ||||||
22 | increased as provided in subsection (c) of Section 14-107.
| ||||||
23 | (d) A retirement annuity shall not exceed 75% of final | ||||||
24 | average compensation,
subject to such extension as may result | ||||||
25 | from the application of Section 14-114
or Section 14-115.
| ||||||
26 | (e) The retirement annuity payable to any covered employee |
| |||||||
| |||||||
1 | who is a member
of the System and in service on January 1, | ||||||
2 | 1969, or in service thereafter
in 1969 as a result of | ||||||
3 | legislation enacted by the Illinois General Assembly
| ||||||
4 | transferring the member to State employment from county | ||||||
5 | employment in a
county Department of Public Aid in counties of | ||||||
6 | 3,000,000 or more population,
under a plan of coordination with | ||||||
7 | the Old Age, Survivors and Disability
provisions thereof, if | ||||||
8 | not fully insured for Old Age Insurance payments
under the | ||||||
9 | Federal Old Age, Survivors and Disability Insurance provisions
| ||||||
10 | at the date of acceptance of a retirement annuity, shall not be | ||||||
11 | less than
the amount for which the member would have been | ||||||
12 | eligible if coordination
were not applicable.
| ||||||
13 | (f) The retirement annuity payable to any covered employee | ||||||
14 | who is a member
of the System and in service on January 1, | ||||||
15 | 1969, or in service thereafter
in 1969 as a result of the | ||||||
16 | legislation designated in the immediately preceding
paragraph, | ||||||
17 | if fully insured for Old Age Insurance payments under the | ||||||
18 | Federal
Social Security Act at the date of acceptance of a | ||||||
19 | retirement annuity, shall
not be less than an amount which when | ||||||
20 | added to the Primary Insurance Benefit
payable to the member | ||||||
21 | upon attainment of age 65 under such Federal Act,
will equal | ||||||
22 | the annuity which would otherwise be payable if the coordinated
| ||||||
23 | plan of coverage were not applicable.
| ||||||
24 | (g) In the case of a member who is a noncovered employee, | ||||||
25 | the retirement
annuity for membership service as a security | ||||||
26 | employee of the Department of
Corrections or security employee |
| |||||||
| |||||||
1 | of the Department of Human Services shall
be: if retirement | ||||||
2 | occurs on or after January 1, 2001, 3% of final average
| ||||||
3 | compensation for each year of creditable service; or if | ||||||
4 | retirement occurs
before January 1, 2001, 1.9% of final average | ||||||
5 | compensation for each of the
first 10 years of service, 2.1% | ||||||
6 | for each of the next 10 years of
service, 2.25% for each year | ||||||
7 | of service in excess of 20 but not
exceeding 30, and 2.5% for | ||||||
8 | each year in excess of 30; except that the
annuity may be | ||||||
9 | calculated under subsection (a) rather than this subsection (g)
| ||||||
10 | if the resulting annuity is greater.
| ||||||
11 | (h) In the case of a member who is a covered employee, the | ||||||
12 | retirement
annuity for membership service as a security | ||||||
13 | employee of the Department of
Corrections or security employee | ||||||
14 | of the Department of Human Services shall
be: if retirement | ||||||
15 | occurs on or after January 1, 2001, 2.5% of final average
| ||||||
16 | compensation for each year of creditable service; if retirement | ||||||
17 | occurs before
January 1, 2001, 1.67% of final average | ||||||
18 | compensation for each of the first
10 years of service, 1.90% | ||||||
19 | for each of the next 10 years of
service, 2.10% for each year | ||||||
20 | of service in excess of 20 but not
exceeding 30, and 2.30% for | ||||||
21 | each year in excess of 30.
| ||||||
22 | (i) For the purposes of this Section and Section 14-133 of | ||||||
23 | this Act,
the term "security employee of the Department of | ||||||
24 | Corrections" and the term
"security employee of the Department | ||||||
25 | of Human Services" shall have the
meanings ascribed to them in | ||||||
26 | subsection (c) of Section 14-110.
|
| |||||||
| |||||||
1 | (j) The retirement annuity computed pursuant to paragraphs | ||||||
2 | (g) or (h)
shall be applicable only to those security employees | ||||||
3 | of the Department of
Corrections and security employees of the | ||||||
4 | Department of Human Services who
have at least 20 years of | ||||||
5 | membership service and who are not eligible for
the alternative | ||||||
6 | retirement annuity provided under Section 14-110. However,
| ||||||
7 | persons transferring to this System under Section 14-108.2 or | ||||||
8 | 14-108.2c
who have service credit under Article 16 of this Code | ||||||
9 | may count such service
toward establishing their eligibility | ||||||
10 | under the 20-year service requirement of
this subsection; but | ||||||
11 | such service may be used only for establishing such
| ||||||
12 | eligibility, and not for the purpose of increasing or | ||||||
13 | calculating any benefit.
| ||||||
14 | (k) (Blank).
| ||||||
15 | (l) The changes to this Section made by this amendatory Act | ||||||
16 | of 1997
(changing certain retirement annuity formulas from a | ||||||
17 | stepped rate to a flat
rate) apply to members who retire on or | ||||||
18 | after January 1, 1998, without regard
to whether employment | ||||||
19 | terminated before the effective date of this amendatory
Act of | ||||||
20 | 1997. An annuity shall not be calculated in steps by using the | ||||||
21 | new flat
rate for some steps and the superseded stepped rate | ||||||
22 | for other steps of the same
type of service.
| ||||||
23 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
| ||||||
24 | (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
| ||||||
25 | Sec. 14-110. Alternative retirement annuity.
|
| |||||||
| |||||||
1 | (a) Any member who has withdrawn from service with not less | ||||||
2 | than 20
years of eligible creditable service and has attained | ||||||
3 | age 55, and any
member who has withdrawn from service with not | ||||||
4 | less than 25 years of
eligible creditable service and has | ||||||
5 | attained age 50, regardless of whether
the attainment of either | ||||||
6 | of the specified ages occurs while the member is
still in | ||||||
7 | service, shall be entitled to receive at the option of the | ||||||
8 | member,
in lieu of the regular or minimum retirement annuity, a | ||||||
9 | retirement annuity
computed as follows:
| ||||||
10 | (i) for periods of service as a noncovered employee:
if | ||||||
11 | retirement occurs on or after January 1, 2001, 3% of final
| ||||||
12 | average compensation for each year of creditable service; | ||||||
13 | if retirement occurs
before January 1, 2001, 2 1/4% of | ||||||
14 | final average compensation for each of the
first 10 years | ||||||
15 | of creditable service, 2 1/2% for each year above 10 years | ||||||
16 | to
and including 20 years of creditable service, and 2 3/4% | ||||||
17 | for each year of
creditable service above 20 years; and
| ||||||
18 | (ii) for periods of eligible creditable service as a | ||||||
19 | covered employee:
if retirement occurs on or after January | ||||||
20 | 1, 2001, 2.5% of final average
compensation for each year | ||||||
21 | of creditable service; if retirement occurs before
January | ||||||
22 | 1, 2001, 1.67% of final average compensation for each of | ||||||
23 | the first
10 years of such service, 1.90% for each of the | ||||||
24 | next 10 years of such service,
2.10% for each year of such | ||||||
25 | service in excess of 20 but not exceeding 30, and
2.30% for | ||||||
26 | each year in excess of 30.
|
| |||||||
| |||||||
1 | Such annuity shall be subject to a maximum of 75% of final | ||||||
2 | average
compensation if retirement occurs before January 1, | ||||||
3 | 2001 or to a maximum
of 80% of final average compensation if | ||||||
4 | retirement occurs on or after January
1, 2001.
| ||||||
5 | These rates shall not be applicable to any service | ||||||
6 | performed
by a member as a covered employee which is not | ||||||
7 | eligible creditable service.
Service as a covered employee | ||||||
8 | which is not eligible creditable service
shall be subject to | ||||||
9 | the rates and provisions of Section 14-108.
| ||||||
10 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
11 | Tier I member who begins receiving a retirement annuity under | ||||||
12 | this Section after July 1, 2013: | ||||||
13 | (1) If the Tier I member is at least 45 years old on | ||||||
14 | the effective date of this amendatory Act of the 98th | ||||||
15 | General Assembly, then the references to age 50 and 55 in | ||||||
16 | subsection (a) of this Section remain unchanged. | ||||||
17 | (2) If the Tier I member is at least 40 but less than | ||||||
18 | 45 years old on the effective date of this amendatory Act | ||||||
19 | of the 98th General Assembly, then the references to age 50 | ||||||
20 | and 55 in subsection (a) of this Section are increased by | ||||||
21 | one year. | ||||||
22 | (3) If the Tier I member is at least 35 but less than | ||||||
23 | 40 years old on the effective date of this amendatory Act | ||||||
24 | of the 98th General Assembly, then the references to age 50 | ||||||
25 | and 55 in subsection (a) of this Section are increased by 3 | ||||||
26 | years. |
| |||||||
| |||||||
1 | (4) If the Tier I member is less than 35 years old on | ||||||
2 | the effective date of this amendatory Act of the 98th | ||||||
3 | General Assembly, then the references to age 50 and 55 in | ||||||
4 | subsection (a) of this Section are increased by 5 years. | ||||||
5 | Notwithstanding Section 1-103.1, this subsection (a-5) | ||||||
6 | applies without regard to whether or not the Tier I member is | ||||||
7 | in active service under this Article on or after the effective | ||||||
8 | date of this amendatory Act of the 98th General Assembly. | ||||||
9 | (b) For the purpose of this Section, "eligible creditable | ||||||
10 | service" means
creditable service resulting from service in one | ||||||
11 | or more of the following
positions:
| ||||||
12 | (1) State policeman;
| ||||||
13 | (2) fire fighter in the fire protection service of a | ||||||
14 | department;
| ||||||
15 | (3) air pilot;
| ||||||
16 | (4) special agent;
| ||||||
17 | (5) investigator for the Secretary of State;
| ||||||
18 | (6) conservation police officer;
| ||||||
19 | (7) investigator for the Department of Revenue or the | ||||||
20 | Illinois Gaming Board;
| ||||||
21 | (8) security employee of the Department of Human | ||||||
22 | Services;
| ||||||
23 | (9) Central Management Services security police | ||||||
24 | officer;
| ||||||
25 | (10) security employee of the Department of | ||||||
26 | Corrections or the Department of Juvenile Justice;
|
| |||||||
| |||||||
1 | (11) dangerous drugs investigator;
| ||||||
2 | (12) investigator for the Department of State Police;
| ||||||
3 | (13) investigator for the Office of the Attorney | ||||||
4 | General;
| ||||||
5 | (14) controlled substance inspector;
| ||||||
6 | (15) investigator for the Office of the State's | ||||||
7 | Attorneys Appellate
Prosecutor;
| ||||||
8 | (16) Commerce Commission police officer;
| ||||||
9 | (17) arson investigator;
| ||||||
10 | (18) State highway maintenance worker.
| ||||||
11 | A person employed in one of the positions specified in this | ||||||
12 | subsection is
entitled to eligible creditable service for | ||||||
13 | service credit earned under this
Article while undergoing the | ||||||
14 | basic police training course approved by the
Illinois Law | ||||||
15 | Enforcement Training
Standards Board, if
completion of that | ||||||
16 | training is required of persons serving in that position.
For | ||||||
17 | the purposes of this Code, service during the required basic | ||||||
18 | police
training course shall be deemed performance of the | ||||||
19 | duties of the specified
position, even though the person is not | ||||||
20 | a sworn peace officer at the time of
the training.
| ||||||
21 | (c) For the purposes of this Section:
| ||||||
22 | (1) The term "state policeman" includes any title or | ||||||
23 | position
in the Department of State Police that is held by | ||||||
24 | an individual employed
under the State Police Act.
| ||||||
25 | (2) The term "fire fighter in the fire protection | ||||||
26 | service of a
department" includes all officers in such fire |
| |||||||
| |||||||
1 | protection service
including fire chiefs and assistant | ||||||
2 | fire chiefs.
| ||||||
3 | (3) The term "air pilot" includes any employee whose | ||||||
4 | official job
description on file in the Department of | ||||||
5 | Central Management Services, or
in the department by which | ||||||
6 | he is employed if that department is not covered
by the | ||||||
7 | Personnel Code, states that his principal duty is the | ||||||
8 | operation of
aircraft, and who possesses a pilot's license; | ||||||
9 | however, the change in this
definition made by this | ||||||
10 | amendatory Act of 1983 shall not operate to exclude
any | ||||||
11 | noncovered employee who was an "air pilot" for the purposes | ||||||
12 | of this
Section on January 1, 1984.
| ||||||
13 | (4) The term "special agent" means any person who by | ||||||
14 | reason of
employment by the Division of Narcotic Control, | ||||||
15 | the Bureau of Investigation
or, after July 1, 1977, the | ||||||
16 | Division of Criminal Investigation, the
Division of | ||||||
17 | Internal Investigation, the Division of Operations, or any
| ||||||
18 | other Division or organizational
entity in the Department | ||||||
19 | of State Police is vested by law with duties to
maintain | ||||||
20 | public order, investigate violations of the criminal law of | ||||||
21 | this
State, enforce the laws of this State, make arrests | ||||||
22 | and recover property.
The term "special agent" includes any | ||||||
23 | title or position in the Department
of State Police that is | ||||||
24 | held by an individual employed under the State
Police Act.
| ||||||
25 | (5) The term "investigator for the Secretary of State" | ||||||
26 | means any person
employed by the Office of the Secretary of |
| |||||||
| |||||||
1 | State and vested with such
investigative duties as render | ||||||
2 | him ineligible for coverage under the Social
Security Act | ||||||
3 | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and | ||||||
4 | 218(l)(1)
of that Act.
| ||||||
5 | A person who became employed as an investigator for the | ||||||
6 | Secretary of
State between January 1, 1967 and December 31, | ||||||
7 | 1975, and who has served as
such until attainment of age | ||||||
8 | 60, either continuously or with a single break
in service | ||||||
9 | of not more than 3 years duration, which break terminated | ||||||
10 | before
January 1, 1976, shall be entitled to have his | ||||||
11 | retirement annuity
calculated in accordance with | ||||||
12 | subsection (a), notwithstanding
that he has less than 20 | ||||||
13 | years of credit for such service.
| ||||||
14 | (6) The term "Conservation Police Officer" means any | ||||||
15 | person employed
by the Division of Law Enforcement of the | ||||||
16 | Department of Natural Resources and
vested with such law | ||||||
17 | enforcement duties as render him ineligible for coverage
| ||||||
18 | under the Social Security Act by reason of Sections | ||||||
19 | 218(d)(5)(A), 218(d)(8)(D),
and 218(l)(1) of that Act. The | ||||||
20 | term "Conservation Police Officer" includes
the positions | ||||||
21 | of Chief Conservation Police Administrator and Assistant
| ||||||
22 | Conservation Police Administrator.
| ||||||
23 | (7) The term "investigator for the Department of | ||||||
24 | Revenue" means any
person employed by the Department of | ||||||
25 | Revenue and vested with such
investigative duties as render | ||||||
26 | him ineligible for coverage under the Social
Security Act |
| |||||||
| |||||||
1 | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and | ||||||
2 | 218(l)(1)
of that Act.
| ||||||
3 | The term "investigator for the Illinois Gaming Board" | ||||||
4 | means any
person employed as such by the Illinois Gaming | ||||||
5 | Board and vested with such
peace officer duties as render | ||||||
6 | the person ineligible for coverage under the Social
| ||||||
7 | Security Act by reason of Sections 218(d)(5)(A), | ||||||
8 | 218(d)(8)(D), and 218(l)(1)
of that Act.
| ||||||
9 | (8) The term "security employee of the Department of | ||||||
10 | Human Services"
means any person employed by the Department | ||||||
11 | of Human Services who (i) is
employed at the Chester Mental | ||||||
12 | Health Center and has daily contact with the
residents | ||||||
13 | thereof, (ii) is employed within a security unit at a | ||||||
14 | facility
operated by the Department and has daily contact | ||||||
15 | with the residents of the
security unit, (iii) is employed | ||||||
16 | at a facility operated by the Department
that includes a | ||||||
17 | security unit and is regularly scheduled to work at least
| ||||||
18 | 50% of his or her working hours within that security unit, | ||||||
19 | or (iv) is a mental health police officer.
"Mental health | ||||||
20 | police officer" means any person employed by the Department | ||||||
21 | of
Human Services in a position pertaining to the | ||||||
22 | Department's mental health and
developmental disabilities | ||||||
23 | functions who is vested with such law enforcement
duties as | ||||||
24 | render the person ineligible for coverage under the Social | ||||||
25 | Security
Act by reason of Sections 218(d)(5)(A), | ||||||
26 | 218(d)(8)(D) and 218(l)(1) of that
Act. "Security unit" |
| |||||||
| |||||||
1 | means that portion of a facility that is devoted to
the | ||||||
2 | care, containment, and treatment of persons committed to | ||||||
3 | the Department of
Human Services as sexually violent | ||||||
4 | persons, persons unfit to stand trial, or
persons not | ||||||
5 | guilty by reason of insanity. With respect to past | ||||||
6 | employment,
references to the Department of Human Services | ||||||
7 | include its predecessor, the
Department of Mental Health | ||||||
8 | and Developmental Disabilities.
| ||||||
9 | The changes made to this subdivision (c)(8) by Public | ||||||
10 | Act 92-14 apply to persons who retire on or after January | ||||||
11 | 1,
2001, notwithstanding Section 1-103.1.
| ||||||
12 | (9) "Central Management Services security police | ||||||
13 | officer" means any
person employed by the Department of | ||||||
14 | Central Management Services who is
vested with such law | ||||||
15 | enforcement duties as render him ineligible for
coverage | ||||||
16 | under the Social Security Act by reason of Sections | ||||||
17 | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
| ||||||
18 | (10) For a member who first became an employee under | ||||||
19 | this Article before July 1, 2005, the term "security | ||||||
20 | employee of the Department of Corrections or the Department | ||||||
21 | of Juvenile Justice"
means any employee of the Department | ||||||
22 | of Corrections or the Department of Juvenile Justice or the | ||||||
23 | former
Department of Personnel, and any member or employee | ||||||
24 | of the Prisoner
Review Board, who has daily contact with | ||||||
25 | inmates or youth by working within a
correctional facility | ||||||
26 | or Juvenile facility operated by the Department of Juvenile |
| |||||||
| |||||||
1 | Justice or who is a parole officer or an employee who has
| ||||||
2 | direct contact with committed persons in the performance of | ||||||
3 | his or her
job duties. For a member who first becomes an | ||||||
4 | employee under this Article on or after July 1, 2005, the | ||||||
5 | term means an employee of the Department of Corrections or | ||||||
6 | the Department of Juvenile Justice who is any of the | ||||||
7 | following: (i) officially headquartered at a correctional | ||||||
8 | facility or Juvenile facility operated by the Department of | ||||||
9 | Juvenile Justice, (ii) a parole officer, (iii) a member of | ||||||
10 | the apprehension unit, (iv) a member of the intelligence | ||||||
11 | unit, (v) a member of the sort team, or (vi) an | ||||||
12 | investigator.
| ||||||
13 | (11) The term "dangerous drugs investigator" means any | ||||||
14 | person who is
employed as such by the Department of Human | ||||||
15 | Services.
| ||||||
16 | (12) The term "investigator for the Department of State | ||||||
17 | Police" means
a person employed by the Department of State | ||||||
18 | Police who is vested under
Section 4 of the Narcotic | ||||||
19 | Control Division Abolition Act with such
law enforcement | ||||||
20 | powers as render him ineligible for coverage under the
| ||||||
21 | Social Security Act by reason of Sections 218(d)(5)(A), | ||||||
22 | 218(d)(8)(D) and
218(l)(1) of that Act.
| ||||||
23 | (13) "Investigator for the Office of the Attorney | ||||||
24 | General" means any
person who is employed as such by the | ||||||
25 | Office of the Attorney General and
is vested with such | ||||||
26 | investigative duties as render him ineligible for
coverage |
| |||||||
| |||||||
1 | under the Social Security Act by reason of Sections | ||||||
2 | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. For | ||||||
3 | the period before January 1,
1989, the term includes all | ||||||
4 | persons who were employed as investigators by the
Office of | ||||||
5 | the Attorney General, without regard to social security | ||||||
6 | status.
| ||||||
7 | (14) "Controlled substance inspector" means any person | ||||||
8 | who is employed
as such by the Department of Professional | ||||||
9 | Regulation and is vested with such
law enforcement duties | ||||||
10 | as render him ineligible for coverage under the Social
| ||||||
11 | Security Act by reason of Sections 218(d)(5)(A), | ||||||
12 | 218(d)(8)(D) and 218(l)(1) of
that Act. The term | ||||||
13 | "controlled substance inspector" includes the Program
| ||||||
14 | Executive of Enforcement and the Assistant Program | ||||||
15 | Executive of Enforcement.
| ||||||
16 | (15) The term "investigator for the Office of the | ||||||
17 | State's Attorneys
Appellate Prosecutor" means a person | ||||||
18 | employed in that capacity on a full
time basis under the | ||||||
19 | authority of Section 7.06 of the State's Attorneys
| ||||||
20 | Appellate Prosecutor's Act.
| ||||||
21 | (16) "Commerce Commission police officer" means any | ||||||
22 | person employed
by the Illinois Commerce Commission who is | ||||||
23 | vested with such law
enforcement duties as render him | ||||||
24 | ineligible for coverage under the Social
Security Act by | ||||||
25 | reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
| ||||||
26 | 218(l)(1) of that Act.
|
| |||||||
| |||||||
1 | (17) "Arson investigator" means any person who is | ||||||
2 | employed as such by
the Office of the State Fire Marshal | ||||||
3 | and is vested with such law enforcement
duties as render | ||||||
4 | the person ineligible for coverage under the Social | ||||||
5 | Security
Act by reason of Sections 218(d)(5)(A), | ||||||
6 | 218(d)(8)(D), and 218(l)(1) of that
Act. A person who was | ||||||
7 | employed as an arson
investigator on January 1, 1995 and is | ||||||
8 | no longer in service but not yet
receiving a retirement | ||||||
9 | annuity may convert his or her creditable service for
| ||||||
10 | employment as an arson investigator into eligible | ||||||
11 | creditable service by paying
to the System the difference | ||||||
12 | between the employee contributions actually paid
for that | ||||||
13 | service and the amounts that would have been contributed if | ||||||
14 | the
applicant were contributing at the rate applicable to | ||||||
15 | persons with the same
social security status earning | ||||||
16 | eligible creditable service on the date of
application.
| ||||||
17 | (18) The term "State highway maintenance worker" means | ||||||
18 | a person who is
either of the following:
| ||||||
19 | (i) A person employed on a full-time basis by the | ||||||
20 | Illinois
Department of Transportation in the position | ||||||
21 | of
highway maintainer,
highway maintenance lead | ||||||
22 | worker,
highway maintenance lead/lead worker,
heavy | ||||||
23 | construction equipment operator,
power shovel | ||||||
24 | operator, or
bridge mechanic; and
whose principal | ||||||
25 | responsibility is to perform, on the roadway, the | ||||||
26 | actual
maintenance necessary to keep the highways that |
| |||||||
| |||||||
1 | form a part of the State
highway system in serviceable | ||||||
2 | condition for vehicular traffic.
| ||||||
3 | (ii) A person employed on a full-time basis by the | ||||||
4 | Illinois
State Toll Highway Authority in the position | ||||||
5 | of
equipment operator/laborer H-4,
equipment | ||||||
6 | operator/laborer H-6,
welder H-4,
welder H-6,
| ||||||
7 | mechanical/electrical H-4,
mechanical/electrical H-6,
| ||||||
8 | water/sewer H-4,
water/sewer H-6,
sign maker/hanger | ||||||
9 | H-4,
sign maker/hanger H-6,
roadway lighting H-4,
| ||||||
10 | roadway lighting H-6,
structural H-4,
structural H-6,
| ||||||
11 | painter H-4, or
painter H-6; and
whose principal | ||||||
12 | responsibility is to perform, on the roadway, the | ||||||
13 | actual
maintenance necessary to keep the Authority's | ||||||
14 | tollways in serviceable condition
for vehicular | ||||||
15 | traffic.
| ||||||
16 | (d) A security employee of the Department of Corrections or | ||||||
17 | the Department of Juvenile Justice, and a security
employee of | ||||||
18 | the Department of Human Services who is not a mental health | ||||||
19 | police
officer, shall not be eligible for the alternative | ||||||
20 | retirement annuity provided
by this Section unless he or she | ||||||
21 | meets the following minimum age and service
requirements at the | ||||||
22 | time of retirement:
| ||||||
23 | (i) 25 years of eligible creditable service and age 55; | ||||||
24 | or
| ||||||
25 | (ii) beginning January 1, 1987, 25 years of eligible | ||||||
26 | creditable service
and age 54, or 24 years of eligible |
| |||||||
| |||||||
1 | creditable service and age 55; or
| ||||||
2 | (iii) beginning January 1, 1988, 25 years of eligible | ||||||
3 | creditable service
and age 53, or 23 years of eligible | ||||||
4 | creditable service and age 55; or
| ||||||
5 | (iv) beginning January 1, 1989, 25 years of eligible | ||||||
6 | creditable service
and age 52, or 22 years of eligible | ||||||
7 | creditable service and age 55; or
| ||||||
8 | (v) beginning January 1, 1990, 25 years of eligible | ||||||
9 | creditable service
and age 51, or 21 years of eligible | ||||||
10 | creditable service and age 55; or
| ||||||
11 | (vi) beginning January 1, 1991, 25 years of eligible | ||||||
12 | creditable service
and age 50, or 20 years of eligible | ||||||
13 | creditable service and age 55.
| ||||||
14 | For members to whom subsection (a-5) of this Section | ||||||
15 | applies, the references to age 50 and 55 in item (vi) of this | ||||||
16 | subsection are increased as provided in subsection (a-5). | ||||||
17 | Persons who have service credit under Article 16 of this | ||||||
18 | Code for service
as a security employee of the Department of | ||||||
19 | Corrections or the Department of Juvenile Justice, or the | ||||||
20 | Department
of Human Services in a position requiring | ||||||
21 | certification as a teacher may
count such service toward | ||||||
22 | establishing their eligibility under the service
requirements | ||||||
23 | of this Section; but such service may be used only for
| ||||||
24 | establishing such eligibility, and not for the purpose of | ||||||
25 | increasing or
calculating any benefit.
| ||||||
26 | (e) If a member enters military service while working in a |
| |||||||
| |||||||
1 | position in
which eligible creditable service may be earned, | ||||||
2 | and returns to State
service in the same or another such | ||||||
3 | position, and fulfills in all other
respects the conditions | ||||||
4 | prescribed in this Article for credit for military
service, | ||||||
5 | such military service shall be credited as eligible creditable
| ||||||
6 | service for the purposes of the retirement annuity prescribed | ||||||
7 | in this Section.
| ||||||
8 | (f) For purposes of calculating retirement annuities under | ||||||
9 | this
Section, periods of service rendered after December 31, | ||||||
10 | 1968 and before
October 1, 1975 as a covered employee in the | ||||||
11 | position of special agent,
conservation police officer, mental | ||||||
12 | health police officer, or investigator
for the Secretary of | ||||||
13 | State, shall be deemed to have been service as a
noncovered | ||||||
14 | employee, provided that the employee pays to the System prior | ||||||
15 | to
retirement an amount equal to (1) the difference between the | ||||||
16 | employee
contributions that would have been required for such | ||||||
17 | service as a
noncovered employee, and the amount of employee | ||||||
18 | contributions actually
paid, plus (2) if payment is made after | ||||||
19 | July 31, 1987, regular interest
on the amount specified in item | ||||||
20 | (1) from the date of service to the date
of payment.
| ||||||
21 | For purposes of calculating retirement annuities under | ||||||
22 | this Section,
periods of service rendered after December 31, | ||||||
23 | 1968 and before January 1,
1982 as a covered employee in the | ||||||
24 | position of investigator for the
Department of Revenue shall be | ||||||
25 | deemed to have been service as a noncovered
employee, provided | ||||||
26 | that the employee pays to the System prior to retirement
an |
| |||||||
| |||||||
1 | amount equal to (1) the difference between the employee | ||||||
2 | contributions
that would have been required for such service as | ||||||
3 | a noncovered employee,
and the amount of employee contributions | ||||||
4 | actually paid, plus (2) if payment
is made after January 1, | ||||||
5 | 1990, regular interest on the amount specified in
item (1) from | ||||||
6 | the date of service to the date of payment.
| ||||||
7 | (g) A State policeman may elect, not later than January 1, | ||||||
8 | 1990, to
establish eligible creditable service for up to 10 | ||||||
9 | years of his service as
a policeman under Article 3, by filing | ||||||
10 | a written election with the Board,
accompanied by payment of an | ||||||
11 | amount to be determined by the Board, equal to
(i) the | ||||||
12 | difference between the amount of employee and employer
| ||||||
13 | contributions transferred to the System under Section 3-110.5, | ||||||
14 | and the
amounts that would have been contributed had such | ||||||
15 | contributions been made
at the rates applicable to State | ||||||
16 | policemen, plus (ii) interest thereon at
the effective rate for | ||||||
17 | each year, compounded annually, from the date of
service to the | ||||||
18 | date of payment.
| ||||||
19 | Subject to the limitation in subsection (i), a State | ||||||
20 | policeman may elect,
not later than July 1, 1993, to establish | ||||||
21 | eligible creditable service for
up to 10 years of his service | ||||||
22 | as a member of the County Police Department
under Article 9, by | ||||||
23 | filing a written election with the Board, accompanied
by | ||||||
24 | payment of an amount to be determined by the Board, equal to | ||||||
25 | (i) the
difference between the amount of employee and employer | ||||||
26 | contributions
transferred to the System under Section 9-121.10 |
| |||||||
| |||||||
1 | and the amounts that would
have been contributed had those | ||||||
2 | contributions been made at the rates
applicable to State | ||||||
3 | policemen, plus (ii) interest thereon at the effective
rate for | ||||||
4 | each year, compounded annually, from the date of service to the
| ||||||
5 | date of payment.
| ||||||
6 | (h) Subject to the limitation in subsection (i), a State | ||||||
7 | policeman or
investigator for the Secretary of State may elect | ||||||
8 | to establish eligible
creditable service for up to 12 years of | ||||||
9 | his service as a policeman under
Article 5, by filing a written | ||||||
10 | election with the Board on or before January
31, 1992, and | ||||||
11 | paying to the System by January 31, 1994 an amount to be
| ||||||
12 | determined by the Board, equal to (i) the difference between | ||||||
13 | the amount of
employee and employer contributions transferred | ||||||
14 | to the System under Section
5-236, and the amounts that would | ||||||
15 | have been contributed had such
contributions been made at the | ||||||
16 | rates applicable to State policemen, plus
(ii) interest thereon | ||||||
17 | at the effective rate for each year, compounded
annually, from | ||||||
18 | the date of service to the date of payment.
| ||||||
19 | Subject to the limitation in subsection (i), a State | ||||||
20 | policeman,
conservation police officer, or investigator for | ||||||
21 | the Secretary of State may
elect to establish eligible | ||||||
22 | creditable service for up to 10 years of
service as a sheriff's | ||||||
23 | law enforcement employee under Article 7, by filing
a written | ||||||
24 | election with the Board on or before January 31, 1993, and | ||||||
25 | paying
to the System by January 31, 1994 an amount to be | ||||||
26 | determined by the Board,
equal to (i) the difference between |
| |||||||
| |||||||
1 | the amount of employee and
employer contributions transferred | ||||||
2 | to the System under Section
7-139.7, and the amounts that would | ||||||
3 | have been contributed had such
contributions been made at the | ||||||
4 | rates applicable to State policemen, plus
(ii) interest thereon | ||||||
5 | at the effective rate for each year, compounded
annually, from | ||||||
6 | the date of service to the date of payment.
| ||||||
7 | Subject to the limitation in subsection (i), a State | ||||||
8 | policeman,
conservation police officer, or investigator for | ||||||
9 | the Secretary of State may
elect to establish eligible | ||||||
10 | creditable service for up to 5 years of
service as a police | ||||||
11 | officer under Article 3, a policeman under Article 5, a | ||||||
12 | sheriff's law enforcement employee under Article 7, a member of | ||||||
13 | the county police department under Article 9, or a police | ||||||
14 | officer under Article 15 by filing
a written election with the | ||||||
15 | Board and paying
to the System an amount to be determined by | ||||||
16 | the Board,
equal to (i) the difference between the amount of | ||||||
17 | employee and
employer contributions transferred to the System | ||||||
18 | under Section
3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 | ||||||
19 | and the amounts that would have been contributed had such
| ||||||
20 | contributions been made at the rates applicable to State | ||||||
21 | policemen, plus
(ii) interest thereon at the effective rate for | ||||||
22 | each year, compounded
annually, from the date of service to the | ||||||
23 | date of payment. | ||||||
24 | Subject to the limitation in subsection (i), an | ||||||
25 | investigator for the Office of the Attorney General, or an | ||||||
26 | investigator for the Department of Revenue, may elect to |
| |||||||
| |||||||
1 | establish eligible creditable service for up to 5 years of | ||||||
2 | service as a police officer under Article 3, a policeman under | ||||||
3 | Article 5, a sheriff's law enforcement employee under Article | ||||||
4 | 7, or a member of the county police department under Article 9 | ||||||
5 | by filing a written election with the Board within 6 months | ||||||
6 | after August 25, 2009 (the effective date of Public Act 96-745) | ||||||
7 | and paying to the System an amount to be determined by the | ||||||
8 | Board, equal to (i) the difference between the amount of | ||||||
9 | employee and employer contributions transferred to the System | ||||||
10 | under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the | ||||||
11 | amounts that would have been contributed had such contributions | ||||||
12 | been made at the rates applicable to State policemen, plus (ii) | ||||||
13 | interest thereon at the actuarially assumed rate for each year, | ||||||
14 | compounded annually, from the date of service to the date of | ||||||
15 | payment. | ||||||
16 | Subject to the limitation in subsection (i), a State | ||||||
17 | policeman, conservation police officer, investigator for the | ||||||
18 | Office of the Attorney General, an investigator for the | ||||||
19 | Department of Revenue, or investigator for the Secretary of | ||||||
20 | State may elect to establish eligible creditable service for up | ||||||
21 | to 5 years of service as a person employed by a participating | ||||||
22 | municipality to perform police duties, or law enforcement | ||||||
23 | officer employed on a full-time basis by a forest preserve | ||||||
24 | district under Article 7, a county corrections officer, or a | ||||||
25 | court services officer under Article 9, by filing a written | ||||||
26 | election with the Board within 6 months after August 25, 2009 |
| |||||||
| |||||||
1 | (the effective date of Public Act 96-745) and paying to the | ||||||
2 | System an amount to be determined by the Board, equal to (i) | ||||||
3 | the difference between the amount of employee and employer | ||||||
4 | contributions transferred to the System under Sections 7-139.8 | ||||||
5 | and 9-121.10 and the amounts that would have been contributed | ||||||
6 | had such contributions been made at the rates applicable to | ||||||
7 | State policemen, plus (ii) interest thereon at the actuarially | ||||||
8 | assumed rate for each year, compounded annually, from the date | ||||||
9 | of service to the date of payment. | ||||||
10 | (i) The total amount of eligible creditable service | ||||||
11 | established by any
person under subsections (g), (h), (j), (k), | ||||||
12 | and (l) of this
Section shall not exceed 12 years.
| ||||||
13 | (j) Subject to the limitation in subsection (i), an | ||||||
14 | investigator for
the Office of the State's Attorneys Appellate | ||||||
15 | Prosecutor or a controlled
substance inspector may elect to
| ||||||
16 | establish eligible creditable service for up to 10 years of his | ||||||
17 | service as
a policeman under Article 3 or a sheriff's law | ||||||
18 | enforcement employee under
Article 7, by filing a written | ||||||
19 | election with the Board, accompanied by
payment of an amount to | ||||||
20 | be determined by the Board, equal to (1) the
difference between | ||||||
21 | the amount of employee and employer contributions
transferred | ||||||
22 | to the System under Section 3-110.6 or 7-139.8, and the amounts
| ||||||
23 | that would have been contributed had such contributions been | ||||||
24 | made at the
rates applicable to State policemen, plus (2) | ||||||
25 | interest thereon at the
effective rate for each year, | ||||||
26 | compounded annually, from the date of service
to the date of |
| |||||||
| |||||||
1 | payment.
| ||||||
2 | (k) Subject to the limitation in subsection (i) of this | ||||||
3 | Section, an
alternative formula employee may elect to establish | ||||||
4 | eligible creditable
service for periods spent as a full-time | ||||||
5 | law enforcement officer or full-time
corrections officer | ||||||
6 | employed by the federal government or by a state or local
| ||||||
7 | government located outside of Illinois, for which credit is not | ||||||
8 | held in any
other public employee pension fund or retirement | ||||||
9 | system. To obtain this
credit, the applicant must file a | ||||||
10 | written application with the Board by March
31, 1998, | ||||||
11 | accompanied by evidence of eligibility acceptable to the Board | ||||||
12 | and
payment of an amount to be determined by the Board, equal | ||||||
13 | to (1) employee
contributions for the credit being established, | ||||||
14 | based upon the applicant's
salary on the first day as an | ||||||
15 | alternative formula employee after the employment
for which | ||||||
16 | credit is being established and the rates then applicable to
| ||||||
17 | alternative formula employees, plus (2) an amount determined by | ||||||
18 | the Board
to be the employer's normal cost of the benefits | ||||||
19 | accrued for the credit being
established, plus (3) regular | ||||||
20 | interest on the amounts in items (1) and (2) from
the first day | ||||||
21 | as an alternative formula employee after the employment for | ||||||
22 | which
credit is being established to the date of payment.
| ||||||
23 | (l) Subject to the limitation in subsection (i), a security | ||||||
24 | employee of
the Department of Corrections may elect, not later | ||||||
25 | than July 1, 1998, to
establish eligible creditable service for | ||||||
26 | up to 10 years of his or her service
as a policeman under |
| |||||||
| |||||||
1 | Article 3, by filing a written election with the Board,
| ||||||
2 | accompanied by payment of an amount to be determined by the | ||||||
3 | Board, equal to
(i) the difference between the amount of | ||||||
4 | employee and employer contributions
transferred to the System | ||||||
5 | under Section 3-110.5, and the amounts that would
have been | ||||||
6 | contributed had such contributions been made at the rates | ||||||
7 | applicable
to security employees of the Department of | ||||||
8 | Corrections, plus (ii) interest
thereon at the effective rate | ||||||
9 | for each year, compounded annually, from the date
of service to | ||||||
10 | the date of payment.
| ||||||
11 | (m) The amendatory changes to this Section made by this | ||||||
12 | amendatory Act of the 94th General Assembly apply only to: (1) | ||||||
13 | security employees of the Department of Juvenile Justice | ||||||
14 | employed by the Department of Corrections before the effective | ||||||
15 | date of this amendatory Act of the 94th General Assembly and | ||||||
16 | transferred to the Department of Juvenile Justice by this | ||||||
17 | amendatory Act of the 94th General Assembly; and (2) persons | ||||||
18 | employed by the Department of Juvenile Justice on or after the | ||||||
19 | effective date of this amendatory Act of the 94th General | ||||||
20 | Assembly who are required by subsection (b) of Section 3-2.5-15 | ||||||
21 | of the Unified Code of Corrections to have a bachelor's or | ||||||
22 | advanced degree from an accredited college or university with a | ||||||
23 | specialization in criminal justice, education, psychology, | ||||||
24 | social work, or a closely related social science or, in the | ||||||
25 | case of persons who provide vocational training, who are | ||||||
26 | required to have adequate knowledge in the skill for which they |
| |||||||
| |||||||
1 | are providing the vocational training.
| ||||||
2 | (n) A person employed in a position under subsection (b) of | ||||||
3 | this Section who has purchased service credit under subsection | ||||||
4 | (j) of Section 14-104 or subsection (b) of Section 14-105 in | ||||||
5 | any other capacity under this Article may convert up to 5 years | ||||||
6 | of that service credit into service credit covered under this | ||||||
7 | Section by paying to the Fund an amount equal to (1) the | ||||||
8 | additional employee contribution required under Section | ||||||
9 | 14-133, plus (2) the additional employer contribution required | ||||||
10 | under Section 14-131, plus (3) interest on items (1) and (2) at | ||||||
11 | the actuarially assumed rate from the date of the service to | ||||||
12 | the date of payment. | ||||||
13 | (Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09; | ||||||
14 | 96-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff. | ||||||
15 | 7-2-10.)
| ||||||
16 | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
| ||||||
17 | Sec. 14-114. Automatic increase in retirement annuity.
| ||||||
18 | (a) Except as provided in subsections (a-1) and (a-2), any | ||||||
19 | Any person receiving a retirement annuity under this Article | ||||||
20 | who
retires having attained age 60, or who retires before age | ||||||
21 | 60 having at
least 35 years of creditable service, or who | ||||||
22 | retires on or after January
1, 2001 at an age which, when added | ||||||
23 | to the number of years of his or her
creditable service, equals | ||||||
24 | at least 85, shall, on January 1 next
following the first full | ||||||
25 | year of retirement, have the amount of the then fixed
and |
| |||||||
| |||||||
1 | payable monthly retirement annuity increased 3%. Any person | ||||||
2 | receiving a
retirement annuity under this Article who retires | ||||||
3 | before attainment of age 60
and with less than (i) 35 years of | ||||||
4 | creditable service if retirement
is before January 1, 2001, or | ||||||
5 | (ii) the number of years of creditable service
which, when | ||||||
6 | added to the member's age, would equal 85, if retirement is on
| ||||||
7 | or after January 1, 2001, shall have the amount of the fixed | ||||||
8 | and payable
retirement annuity increased by 3% on the January 1 | ||||||
9 | occurring on or next
following (1) attainment of age 60, or (2) | ||||||
10 | the first anniversary of retirement,
whichever occurs later. | ||||||
11 | However, for persons who receive the alternative
retirement | ||||||
12 | annuity under Section 14-110, references in this subsection (a) | ||||||
13 | to
attainment of age 60 shall be deemed to refer to attainment | ||||||
14 | of age 55. For a
person receiving early retirement incentives | ||||||
15 | under Section 14-108.3 whose
retirement annuity began after | ||||||
16 | January 1, 1992 pursuant to an extension granted
under | ||||||
17 | subsection (e) of that Section, the first anniversary of | ||||||
18 | retirement shall
be deemed to be January 1, 1993.
For a person | ||||||
19 | who retires on or after June 28, 2001 and on or before October | ||||||
20 | 1, 2001,
and whose retirement annuity is calculated, in whole | ||||||
21 | or in part, under Section
14-110 or subsection (g) or (h) of | ||||||
22 | Section 14-108, the first anniversary of
retirement shall be | ||||||
23 | deemed to be January 1, 2002.
| ||||||
24 | On each January 1 following the date of the initial | ||||||
25 | increase under this
subsection, the employee's monthly | ||||||
26 | retirement annuity shall be increased
by an additional 3%.
|
| |||||||
| |||||||
1 | Beginning January 1, 1990 and except as provided in | ||||||
2 | subsections (a-1) and (a-2) , all automatic annual increases | ||||||
3 | payable under
this Section shall be calculated as a percentage | ||||||
4 | of the total annuity
payable at the time of the increase, | ||||||
5 | including previous increases granted
under this Article.
| ||||||
6 | (a-1) Notwithstanding any other provision of this Article, | ||||||
7 | for a Tier I retiree, the amount of each automatic annual | ||||||
8 | increase in retirement annuity occurring on or after the | ||||||
9 | effective date of this amendatory Act of the 98th General | ||||||
10 | Assembly shall be the lesser of $600 ($750 if the annuity is | ||||||
11 | based primarily upon service as a noncovered employee) or 3% of | ||||||
12 | the total annuity
payable at the time of the increase, | ||||||
13 | including previous increases granted. | ||||||
14 | (a-2) Notwithstanding any other provision of this Article, | ||||||
15 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
16 | first be subject to annual increases on the January 1 occurring | ||||||
17 | on or next after the attainment of age 67 or the January 1 | ||||||
18 | occurring on or next after the fifth anniversary of the annuity | ||||||
19 | start date, whichever occurs earlier. If on the effective date | ||||||
20 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
21 | retiree has already received an annual increase under this | ||||||
22 | Section but does not yet meet the new eligibility requirements | ||||||
23 | of this subsection, the annual increases already received shall | ||||||
24 | continue in force, but no additional annual increase shall be | ||||||
25 | granted until the Tier I retiree meets the new eligibility | ||||||
26 | requirements. |
| |||||||
| |||||||
1 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
2 | and (a-2) apply without regard to whether or not the Tier I | ||||||
3 | retiree is in active service under this Article on or after the | ||||||
4 | effective date of this amendatory Act of the 98th General | ||||||
5 | Assembly. | ||||||
6 | (b) The provisions of subsection (a) of this Section shall | ||||||
7 | be
applicable to an employee only if the employee makes the | ||||||
8 | additional
contributions required after December 31, 1969 for | ||||||
9 | the purpose of the
automatic increases for not less than the | ||||||
10 | equivalent of one full year.
If an employee becomes an | ||||||
11 | annuitant before his additional contributions
equal one full | ||||||
12 | year's contributions based on his salary at the date of
| ||||||
13 | retirement, the employee may pay the necessary balance of the
| ||||||
14 | contributions to the system, without interest, and be eligible | ||||||
15 | for the
increasing annuity authorized by this Section.
| ||||||
16 | (c) The provisions of subsection (a) of this Section shall | ||||||
17 | not be
applicable to any annuitant who is on retirement on | ||||||
18 | December 31, 1969, and
thereafter returns to State service, | ||||||
19 | unless the member has established at
least one year of | ||||||
20 | additional creditable service following reentry into service.
| ||||||
21 | (d) In addition to other increases which may be provided by | ||||||
22 | this Section,
on January 1, 1981 any annuitant who was | ||||||
23 | receiving a retirement annuity
on or before January 1, 1971 | ||||||
24 | shall have his retirement annuity then being
paid increased $1 | ||||||
25 | per month for each year of creditable service. On January
1, | ||||||
26 | 1982, any annuitant who began receiving a retirement annuity on |
| |||||||
| |||||||
1 | or
before January 1, 1977, shall have his retirement annuity | ||||||
2 | then being paid
increased $1 per month for each year of | ||||||
3 | creditable service.
| ||||||
4 | On January 1, 1987, any annuitant who began receiving a | ||||||
5 | retirement
annuity on or before January 1, 1977, shall have the | ||||||
6 | monthly retirement annuity
increased by an amount equal to 8¢ | ||||||
7 | per year of creditable service times the
number of years that | ||||||
8 | have elapsed since the annuity began.
| ||||||
9 | (e) Every person who receives the alternative retirement | ||||||
10 | annuity under
Section 14-110 and who is eligible to receive the | ||||||
11 | 3% increase under subsection
(a) on January 1, 1986, shall also | ||||||
12 | receive on that date a one-time increase
in retirement annuity | ||||||
13 | equal to the difference between (1) his actual
retirement | ||||||
14 | annuity on that date, including any increases received under
| ||||||
15 | subsection (a), and (2) the amount of retirement annuity he | ||||||
16 | would have
received on that date if the amendments to | ||||||
17 | subsection (a) made by Public
Act 84-162 had been in effect | ||||||
18 | since the date of his retirement.
| ||||||
19 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
| ||||||
20 | 92-651, eff. 7-11-02.)
| ||||||
21 | (40 ILCS 5/14-131)
| ||||||
22 | Sec. 14-131. Contributions by State.
| ||||||
23 | (a) The State shall make contributions to the System by | ||||||
24 | appropriations of
amounts which, together with other employer | ||||||
25 | contributions from trust, federal,
and other funds, employee |
| |||||||
| |||||||
1 | contributions, investment income, and other income,
will be | ||||||
2 | sufficient to meet the cost of maintaining and administering | ||||||
3 | the System
on a 100% 90% funded basis in accordance with | ||||||
4 | actuarial recommendations by the end of State fiscal year 2043 .
| ||||||
5 | For the purposes of this Section and Section 14-135.08, | ||||||
6 | references to State
contributions refer only to employer | ||||||
7 | contributions and do not include employee
contributions that | ||||||
8 | are picked up or otherwise paid by the State or a
department on | ||||||
9 | behalf of the employee.
| ||||||
10 | (b) The Board shall determine the total amount of State | ||||||
11 | contributions
required for each fiscal year on the basis of the | ||||||
12 | actuarial tables and other
assumptions adopted by the Board, | ||||||
13 | using the formula in subsection (e).
| ||||||
14 | The Board shall also determine a State contribution rate | ||||||
15 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
16 | based on the total required State
contribution for that fiscal | ||||||
17 | year (less the amount received by the System from
| ||||||
18 | appropriations under Section 8.12 of the State Finance Act and | ||||||
19 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
20 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
21 | immediately preceding the applicable November 15
certification | ||||||
22 | deadline), the estimated payroll (including all forms of
| ||||||
23 | compensation) for personal services rendered by eligible | ||||||
24 | employees, and the
recommendations of the actuary.
| ||||||
25 | For the purposes of this Section and Section 14.1 of the | ||||||
26 | State Finance Act,
the term "eligible employees" includes |
| |||||||
| |||||||
1 | employees who participate in the System,
persons who may elect | ||||||
2 | to participate in the System but have not so elected,
persons | ||||||
3 | who are serving a qualifying period that is required for | ||||||
4 | participation,
and annuitants employed by a department as | ||||||
5 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
6 | (c) Contributions shall be made by the several departments | ||||||
7 | for each pay
period by warrants drawn by the State Comptroller | ||||||
8 | against their respective
funds or appropriations based upon | ||||||
9 | vouchers stating the amount to be so
contributed. These amounts | ||||||
10 | shall be based on the full rate certified by the
Board under | ||||||
11 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
12 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
13 | payment of the final payroll from fiscal year 2004
| ||||||
14 | appropriations, the several departments shall not make | ||||||
15 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
16 | instead make payments
as required under subsection (a-1) of | ||||||
17 | Section 14.1 of the State Finance Act.
The several departments | ||||||
18 | shall resume those contributions at the commencement of
fiscal | ||||||
19 | year 2005.
| ||||||
20 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
21 | fiscal years 2010, 2012, and 2013 only, contributions by the | ||||||
22 | several departments are not required to be made for General | ||||||
23 | Revenue Funds payrolls processed by the Comptroller. Payrolls | ||||||
24 | paid by the several departments from all other State funds must | ||||||
25 | continue to be processed pursuant to subsection (c) of this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | ||||||
2 | or as soon as possible after the 15th day of each month, the | ||||||
3 | Board shall submit vouchers for payment of State contributions | ||||||
4 | to the System, in a total monthly amount of one-twelfth of the | ||||||
5 | fiscal year General Revenue Fund contribution as certified by | ||||||
6 | the System pursuant to Section 14-135.08 of the Illinois | ||||||
7 | Pension Code. | ||||||
8 | (d) If an employee is paid from trust funds or federal | ||||||
9 | funds, the
department or other employer shall pay employer | ||||||
10 | contributions from those funds
to the System at the certified | ||||||
11 | rate, unless the terms of the trust or the
federal-State | ||||||
12 | agreement preclude the use of the funds for that purpose, in
| ||||||
13 | which case the required employer contributions shall be paid by | ||||||
14 | the State.
From the effective date of this amendatory
Act of | ||||||
15 | the 93rd General Assembly through the payment of the final
| ||||||
16 | payroll from fiscal year 2004 appropriations, the department or | ||||||
17 | other
employer shall not pay contributions for the remainder of | ||||||
18 | fiscal year
2004 but shall instead make payments as required | ||||||
19 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
20 | Act. The department or other employer shall
resume payment of
| ||||||
21 | contributions at the commencement of fiscal year 2005.
| ||||||
22 | (e) For State fiscal years 2014 through 2043, the minimum | ||||||
23 | contribution
to the System to be made by the State for each | ||||||
24 | fiscal year shall be an amount
determined by the System to be | ||||||
25 | equal to the sum of (1) the State's portion of the projected | ||||||
26 | normal cost for that fiscal year, plus (2) an amount sufficient |
| |||||||
| |||||||
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 minimum | ||||||
9 | contribution
to the System to be made by the State for each | ||||||
10 | fiscal year shall be an amount
determined by the System to be | ||||||
11 | sufficient to bring the total assets of the
System up to 90% of | ||||||
12 | 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; except that
(i) for State | ||||||
23 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
24 | law of this State, the certified percentage of the applicable | ||||||
25 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
26 | creditable service under Section
14-110 and 6.500% for all |
| |||||||
| |||||||
1 | other employees, notwithstanding any contrary
certification | ||||||
2 | made under Section 14-135.08 before the effective date of this
| ||||||
3 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
4 | State fiscal years, the State contribution to
the System shall | ||||||
5 | not be less than the following indicated percentages of the
| ||||||
6 | applicable employee payroll, even if the indicated percentage | ||||||
7 | will produce a
State contribution in excess of the amount | ||||||
8 | otherwise required under this
subsection and subsection (a):
| ||||||
9 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
10 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
11 | Notwithstanding any other provision of this Article, the | ||||||
12 | total required State
contribution to the System for State | ||||||
13 | fiscal year 2006 is $203,783,900.
| ||||||
14 | Notwithstanding any other provision of this Article, the | ||||||
15 | total required State
contribution to the System for State | ||||||
16 | fiscal year 2007 is $344,164,400.
| ||||||
17 | For each of State fiscal years 2008 through 2009, the State | ||||||
18 | contribution to
the System, as a percentage of the applicable | ||||||
19 | employee payroll, shall be
increased in equal annual increments | ||||||
20 | from the required State contribution for State fiscal year | ||||||
21 | 2007, so that by State fiscal year 2011, the
State is | ||||||
22 | contributing at the rate otherwise required under this Section.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State General Revenue Fund contribution for | ||||||
25 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
26 | the proceeds of bonds sold in fiscal year 2010 pursuant to |
| |||||||
| |||||||
1 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
2 | pro rata share of bond sale expenses determined by the System's | ||||||
3 | share of total bond proceeds, (ii) any amounts received from | ||||||
4 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
5 | reduction in bond proceeds due to the issuance of discounted | ||||||
6 | bonds, if applicable. | ||||||
7 | Notwithstanding any other provision of this Article, the
| ||||||
8 | total required State General Revenue Fund contribution for
| ||||||
9 | State fiscal year 2011 is the amount recertified by the System | ||||||
10 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
11 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
12 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
13 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
14 | determined by the System's
share of total bond proceeds, (ii) | ||||||
15 | any amounts received from
the General Revenue Fund in fiscal | ||||||
16 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
17 | issuance of discounted
bonds, if applicable. | ||||||
18 | Beginning in State fiscal year 2044, the minimum State | ||||||
19 | contribution for each fiscal year shall be the amount needed to | ||||||
20 | maintain the total assets of the System at 100% of the total | ||||||
21 | actuarial liabilities of the System. | ||||||
22 | Beginning in State fiscal year 2046, the minimum State | ||||||
23 | contribution for
each fiscal year shall be the amount needed to | ||||||
24 | maintain the total assets of
the System at 90% of the total | ||||||
25 | actuarial liabilities of the System.
| ||||||
26 | Amounts received by the System pursuant to Section 25 of |
| |||||||
| |||||||
1 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
2 | Finance Act in any fiscal year do not reduce and do not | ||||||
3 | constitute payment of any portion of the minimum State | ||||||
4 | contribution required under this Article in that fiscal year. | ||||||
5 | Such amounts shall not reduce, and shall not be included in the | ||||||
6 | calculation of, the required State contributions under this | ||||||
7 | Article in any future year until the System has reached a | ||||||
8 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
9 | to the "required State contribution" or any substantially | ||||||
10 | similar term does not include or apply to any amounts payable | ||||||
11 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
12 | Notwithstanding any other provision of this Section, the | ||||||
13 | required State
contribution for State fiscal year 2005 and for | ||||||
14 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
15 | fiscal year 2013 , as
calculated under this Section and
| ||||||
16 | certified under Section 14-135.08, shall not exceed an amount | ||||||
17 | equal to (i) the
amount of the required State contribution that | ||||||
18 | would have been calculated under
this Section for that fiscal | ||||||
19 | year if the System had not received any payments
under | ||||||
20 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
21 | Act, minus
(ii) the portion of the State's total debt service | ||||||
22 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
23 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
24 | and certified by the Comptroller, that is the same as the | ||||||
25 | System's portion of
the total moneys distributed under | ||||||
26 | subsection (d) of Section 7.2 of the General
Obligation Bond |
| |||||||
| |||||||
1 | Act. In determining this maximum for State fiscal years 2008 | ||||||
2 | through 2010, however, the amount referred to in item (i) shall | ||||||
3 | be increased, as a percentage of the applicable employee | ||||||
4 | payroll, in equal increments calculated from the sum of the | ||||||
5 | required State contribution for State fiscal year 2007 plus the | ||||||
6 | applicable portion of the State's total debt service payments | ||||||
7 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
8 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
9 | Act, so that, by State fiscal year 2011, the
State is | ||||||
10 | contributing at the rate otherwise required under this Section.
| ||||||
11 | (f) After the submission of all payments for eligible | ||||||
12 | employees
from personal services line items in fiscal year 2004 | ||||||
13 | have been made,
the Comptroller shall provide to the System a | ||||||
14 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
15 | for personal services that would
have been covered by payments | ||||||
16 | to the System under this Section if the
provisions of this | ||||||
17 | amendatory Act of the 93rd General Assembly had not been
| ||||||
18 | enacted. Upon
receipt of the certification, the System shall | ||||||
19 | determine the amount
due to the System based on the full rate | ||||||
20 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
21 | 2004 in order to meet the State's
obligation under this | ||||||
22 | Section. The System shall compare this amount
due to the amount | ||||||
23 | received by the System in fiscal year 2004 through
payments | ||||||
24 | under this Section and under Section 6z-61 of the State Finance | ||||||
25 | Act.
If the amount
due is more than the amount received, the | ||||||
26 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
| |||||||
| |||||||
1 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
2 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
3 | Continuing Appropriation Act. If the amount due is less than | ||||||
4 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
5 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
6 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
7 | the Pension Contribution Fund as soon as practicable
after the | ||||||
8 | certification.
| ||||||
9 | (g) For purposes of determining the required State | ||||||
10 | contribution to the System, the value of the System's assets | ||||||
11 | shall be equal to the actuarial value of the System's assets, | ||||||
12 | which shall be calculated as follows: | ||||||
13 | As of June 30, 2008, the actuarial value of the System's | ||||||
14 | assets shall be equal to the market value of the assets as of | ||||||
15 | that date. In determining the actuarial value of the System's | ||||||
16 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
17 | gains or losses from investment return incurred in a fiscal | ||||||
18 | year shall be recognized in equal annual amounts over the | ||||||
19 | 5-year period following that fiscal year. | ||||||
20 | (h) For purposes of determining the required State | ||||||
21 | contribution to the System for a particular year, the actuarial | ||||||
22 | value of assets shall be assumed to earn a rate of return equal | ||||||
23 | to the System's actuarially assumed rate of return. | ||||||
24 | (i) After the submission of all payments for eligible | ||||||
25 | employees from personal services line items paid from the | ||||||
26 | General Revenue Fund in fiscal year 2010 have been made, the |
| |||||||
| |||||||
1 | Comptroller shall provide to the System a certification of the | ||||||
2 | sum of all fiscal year 2010 expenditures for personal services | ||||||
3 | that would have been covered by payments to the System under | ||||||
4 | this Section if the provisions of this amendatory Act of the | ||||||
5 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
6 | certification, the System shall determine the amount due to the | ||||||
7 | System based on the full rate certified by the Board under | ||||||
8 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
9 | State's obligation under this Section. The System shall compare | ||||||
10 | this amount due to the amount received by the System in fiscal | ||||||
11 | year 2010 through payments under this Section. If the amount | ||||||
12 | due is more than the amount received, the difference shall be | ||||||
13 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
14 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
15 | under Section 1.2 of the State Pension Funds Continuing | ||||||
16 | Appropriation Act. If the amount due is less than the amount | ||||||
17 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
18 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
19 | 2010 Overpayment shall be repaid by the System to the General | ||||||
20 | Revenue Fund as soon as practicable after the certification. | ||||||
21 | (j) After the submission of all payments for eligible | ||||||
22 | employees from personal services line items paid from the | ||||||
23 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
24 | Comptroller shall provide to the System a certification of the | ||||||
25 | sum of all fiscal year 2011 expenditures for personal services | ||||||
26 | that would have been covered by payments to the System under |
| |||||||
| |||||||
1 | this Section if the provisions of this amendatory Act of the | ||||||
2 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
3 | certification, the System shall determine the amount due to the | ||||||
4 | System based on the full rate certified by the Board under | ||||||
5 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
6 | State's obligation under this Section. The System shall compare | ||||||
7 | this amount due to the amount received by the System in fiscal | ||||||
8 | year 2011 through payments under this Section. If the amount | ||||||
9 | due is more than the amount received, the difference shall be | ||||||
10 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
11 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
12 | under Section 1.2 of the State Pension Funds Continuing | ||||||
13 | Appropriation Act. If the amount due is less than the amount | ||||||
14 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
15 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
16 | 2011 Overpayment shall be repaid by the System to the General | ||||||
17 | Revenue Fund as soon as practicable after the certification. | ||||||
18 | (k) For fiscal years 2012 and 2013 only, after the | ||||||
19 | submission of all payments for eligible employees from personal | ||||||
20 | services line items paid from the General Revenue Fund in the | ||||||
21 | fiscal year have been made, the Comptroller shall provide to | ||||||
22 | the System a certification of the sum of all expenditures in | ||||||
23 | the fiscal year for personal services. Upon receipt of the | ||||||
24 | certification, the System shall determine the amount due to the | ||||||
25 | System based on the full rate certified by the Board under | ||||||
26 | Section 14-135.08 for the fiscal year in order to meet the |
| |||||||
| |||||||
1 | State's obligation under this Section. The System shall compare | ||||||
2 | this amount due to the amount received by the System for the | ||||||
3 | fiscal year. If the amount due is more than the amount | ||||||
4 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
5 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
6 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
7 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
8 | due is less than the amount received, the difference shall be | ||||||
9 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
10 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
11 | by the System to the General Revenue Fund as soon as | ||||||
12 | practicable after the certification. | ||||||
13 | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | ||||||
14 | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
15 | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | ||||||
16 | eff. 6-30-12.)
| ||||||
17 | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| ||||||
18 | Sec. 14-132. Obligations of State ; funding guarantee . | ||||||
19 | (a) The payment of the required department
contributions, | ||||||
20 | all allowances,
annuities, benefits granted under this | ||||||
21 | Article, and all expenses of
administration of the system are | ||||||
22 | obligations of the State of Illinois to
the extent specified in | ||||||
23 | this Article.
| ||||||
24 | (b) All income of the system
shall be credited to a | ||||||
25 | separate account for this system in the State
treasury and |
| |||||||
| |||||||
1 | shall be used to pay allowances, annuities, benefits and
| ||||||
2 | administration expense.
| ||||||
3 | (c) Beginning July 1, 2013, the State shall be | ||||||
4 | contractually obligated to contribute to the System under | ||||||
5 | Section 14-131 in each State fiscal year an amount not less | ||||||
6 | than the sum of (i) the State's normal cost for that year and
| ||||||
7 | (ii) the portion of the unfunded accrued liability assigned to | ||||||
8 | that year by law in accordance with a schedule that distributes | ||||||
9 | payments equitably over a reasonable period of time and in | ||||||
10 | accordance with accepted actuarial practices. The obligations | ||||||
11 | created under this subsection (c) are contractual obligations | ||||||
12 | protected and enforceable under Article I, Section 16 and | ||||||
13 | Article XIII, 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 subsection (c)
are expressly subordinated to the payment | ||||||
26 | of the principal, interest, and premium, if any, on any
bonded |
| |||||||
| |||||||
1 | debt 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 | (Source: P.A. 80-841.)
| ||||||
13 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
14 | Sec. 14-133. Contributions on behalf of members.
| ||||||
15 | (a) Each participating employee shall make contributions | ||||||
16 | to the System,
based on the employee's compensation, as | ||||||
17 | follows:
| ||||||
18 | (1) Covered employees, except as indicated below, 3.5% | ||||||
19 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
20 | annuity;
| ||||||
21 | (2) Noncovered employees, except as indicated below, | ||||||
22 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
23 | annuity;
| ||||||
24 | (3) Noncovered employees serving in a position in which | ||||||
25 | "eligible
creditable service" as defined in Section 14-110 |
| |||||||
| |||||||
1 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
2 | following amount for retirement annuity: 8.5% through | ||||||
3 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
4 | in 2004 and thereafter;
| ||||||
5 | (4) Covered employees serving in a position in which | ||||||
6 | "eligible creditable
service" as defined in Section 14-110 | ||||||
7 | may be earned, 0.5% for a widow or survivors annuity
plus | ||||||
8 | the following amount for retirement annuity: 5% through | ||||||
9 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
10 | and thereafter;
| ||||||
11 | (5) Each security employee of the Department of | ||||||
12 | Corrections
or of the Department of Human Services who is a | ||||||
13 | covered employee, 0.5% for a widow or survivors annuity
| ||||||
14 | plus the following amount for retirement annuity: 5% | ||||||
15 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | ||||||
16 | in 2004 and thereafter;
| ||||||
17 | (6) Each security employee of the Department of | ||||||
18 | Corrections
or of the Department of Human Services who is | ||||||
19 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
20 | plus the following amount for retirement annuity: 8.5% | ||||||
21 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | ||||||
22 | 11.5% in 2004 and thereafter.
| ||||||
23 | (a-5) In addition to the contributions otherwise required | ||||||
24 | under this Article, each Tier I member shall also make the | ||||||
25 | following contributions for retirement annuity from each | ||||||
26 | payment
of compensation: |
| |||||||
| |||||||
1 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
2 | 1% of compensation; and | ||||||
3 | (2) beginning on July 1, 2014, 2% of compensation. | ||||||
4 | (b) Contributions shall be in the form of a deduction from
| ||||||
5 | compensation and shall be made notwithstanding that the | ||||||
6 | compensation
paid in cash to the employee shall be reduced | ||||||
7 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
8 | member is deemed to consent and
agree to the deductions from | ||||||
9 | compensation provided for in this Article,
and shall receipt in | ||||||
10 | full for salary or compensation.
| ||||||
11 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
12 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
13 | Sec. 14-135.08. To certify required State contributions. | ||||||
14 | (a)
To certify to the Governor and to each department, on | ||||||
15 | or before
November 15 of each year through until November 15, | ||||||
16 | 2011, the required rate for State contributions to the
System | ||||||
17 | for the next State fiscal year, as determined under subsection | ||||||
18 | (b) of
Section 14-131. The certification to the Governor under | ||||||
19 | this subsection (a) shall include a copy of the
actuarial | ||||||
20 | recommendations upon which the rate is based and shall | ||||||
21 | specifically identify the System's projected State normal cost | ||||||
22 | for that fiscal year .
| ||||||
23 | (a-5) On or before November 1 of each year, beginning | ||||||
24 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
25 | the Governor, and the General Assembly a proposed certification |
| |||||||
| |||||||
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) The certifications under subsections (a) and (a-5) | ||||||
23 | shall include an additional amount necessary to pay all | ||||||
24 | principal of and interest on those general obligation bonds due | ||||||
25 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
26 | General Obligation Bond Act and issued to provide the proceeds |
| |||||||
| |||||||
1 | deposited by the State with the System in July 2003, | ||||||
2 | representing deposits other than amounts reserved under | ||||||
3 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
4 | fiscal year 2005, the Board shall make a supplemental | ||||||
5 | certification of the additional amount necessary to pay all | ||||||
6 | principal of and interest on those general obligation bonds due | ||||||
7 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
8 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
9 | the proceeds deposited by the State with the System in July | ||||||
10 | 2003, representing deposits other than amounts reserved under | ||||||
11 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
12 | practical after the effective date of this amendatory Act of | ||||||
13 | the 93rd General Assembly.
| ||||||
14 | On or before May 1, 2004, the Board shall recalculate and | ||||||
15 | recertify
to the Governor and to each department the amount of | ||||||
16 | the required State
contribution to the System and the required | ||||||
17 | rates for State contributions
to the System for State fiscal | ||||||
18 | year 2005, taking into account the amounts
appropriated to and | ||||||
19 | received by the System under subsection (d) of Section
7.2 of | ||||||
20 | the General Obligation Bond Act.
| ||||||
21 | On or before July 1, 2005, the Board shall recalculate and | ||||||
22 | recertify
to the Governor and to each department the amount of | ||||||
23 | the required State
contribution to the System and the required | ||||||
24 | rates for State contributions
to the System for State fiscal | ||||||
25 | year 2006, taking into account the changes in required State | ||||||
26 | contributions made by this amendatory Act of the 94th General |
| |||||||
| |||||||
1 | Assembly.
| ||||||
2 | On or before April 1, 2011, the Board shall recalculate and | ||||||
3 | recertify to the Governor and to each department the amount of | ||||||
4 | the required State contribution to the System for State fiscal | ||||||
5 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
6 | the System's assets and liabilities as of June 30, 2009 as | ||||||
7 | though Public Act 96-889 was approved on that date. | ||||||
8 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
9 | 97-694, eff. 6-18-12.)
| ||||||
10 | (40 ILCS 5/14-152.1)
| ||||||
11 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
12 | increases. | ||||||
13 | (a) As used in this Section, "new benefit increase" means | ||||||
14 | an increase in the amount of any benefit provided under this | ||||||
15 | Article, or an expansion of the conditions of eligibility for | ||||||
16 | any benefit under this Article, that results from an amendment | ||||||
17 | to this Code that takes effect after June 1, 2005 (the | ||||||
18 | effective date of Public Act 94-4). "New benefit increase", | ||||||
19 | however, does not include any benefit increase resulting from | ||||||
20 | the changes made to this Article by Public Act 96-37 or by this | ||||||
21 | amendatory Act of the 98th 96th General Assembly.
| ||||||
22 | (b) Notwithstanding any other provision of this Code or any | ||||||
23 | subsequent amendment to this Code, every new benefit increase | ||||||
24 | is subject to this Section and shall be deemed to be granted | ||||||
25 | only in conformance with and contingent upon compliance with |
| |||||||
| |||||||
1 | the provisions of this Section.
| ||||||
2 | (c) The Public Act enacting a new benefit increase must | ||||||
3 | identify and provide for payment to the System of additional | ||||||
4 | funding at least sufficient to fund the resulting annual | ||||||
5 | increase in cost to the System as it accrues. | ||||||
6 | Every new benefit increase is contingent upon the General | ||||||
7 | Assembly providing the additional funding required under this | ||||||
8 | subsection. The Commission on Government Forecasting and | ||||||
9 | Accountability shall analyze whether adequate additional | ||||||
10 | funding has been provided for the new benefit increase and | ||||||
11 | shall report its analysis to the Public Pension Division of the | ||||||
12 | Department of Financial and Professional Regulation. A new | ||||||
13 | benefit increase created by a Public Act that does not include | ||||||
14 | the additional funding required under this subsection is null | ||||||
15 | and void. If the Public Pension Division determines that the | ||||||
16 | additional funding provided for a new benefit increase under | ||||||
17 | this subsection is or has become inadequate, it may so certify | ||||||
18 | to the Governor and the State Comptroller and, in the absence | ||||||
19 | of corrective action by the General Assembly, the new benefit | ||||||
20 | increase shall expire at the end of the fiscal year in which | ||||||
21 | the certification is made.
| ||||||
22 | (d) Every new benefit increase shall expire 5 years after | ||||||
23 | its effective date or on such earlier date as may be specified | ||||||
24 | in the language enacting the new benefit increase or provided | ||||||
25 | under subsection (c). This does not prevent the General | ||||||
26 | Assembly from extending or re-creating a new benefit increase |
| |||||||
| |||||||
1 | by law. | ||||||
2 | (e) Except as otherwise provided in the language creating | ||||||
3 | the new benefit increase, a new benefit increase that expires | ||||||
4 | under this Section continues to apply to persons who applied | ||||||
5 | and qualified for the affected benefit while the new benefit | ||||||
6 | increase was in effect and to the affected beneficiaries and | ||||||
7 | alternate payees of such persons, but does not apply to any | ||||||
8 | other person, including without limitation a person who | ||||||
9 | continues in service after the expiration date and did not | ||||||
10 | apply and qualify for the affected benefit while the new | ||||||
11 | benefit increase was in effect.
| ||||||
12 | (Source: P.A. 96-37, eff. 7-13-09.) | ||||||
13 | (40 ILCS 5/15-103.4 new) | ||||||
14 | Sec. 15-103.4. Tier 3 retirement plan. "Tier 3 retirement | ||||||
15 | plan": The composite defined-contribution, defined-benefit | ||||||
16 | retirement program maintained under the System as described in | ||||||
17 | Section 15-158.5. | ||||||
18 | The Tier 3 retirement plan consists of a defined-benefit | ||||||
19 | component and a defined-contribution component; both | ||||||
20 | components apply to all participants in the Tier 3 retirement | ||||||
21 | plan. | ||||||
22 | (40 ILCS 5/15-107.1 new) | ||||||
23 | Sec. 15-107.1. Tier I participant. "Tier I participant": A | ||||||
24 | participant under this Article, other than a participant in the |
| |||||||
| |||||||
1 | self-managed plan under Section 15-158.2, who first became a | ||||||
2 | member or participant before January 1, 2011 under any | ||||||
3 | reciprocal retirement system or pension fund established under | ||||||
4 | this Code other than a retirement system or pension fund | ||||||
5 | established under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
6 | (40 ILCS 5/15-107.2 new) | ||||||
7 | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former | ||||||
8 | Tier I participant who is receiving a retirement annuity. | ||||||
9 | A person does not become a Tier I retiree by virtue of | ||||||
10 | receiving a reversionary, survivors, beneficiary, or | ||||||
11 | disability annuity. | ||||||
12 | (40 ILCS 5/15-107.3 new) | ||||||
13 | Sec. 15-107.3. Tier 3 employee. "Tier 3 employee": An | ||||||
14 | employee, other than a participant in the self-managed plan | ||||||
15 | under Section 15-158.2, who first becomes a participant on or | ||||||
16 | after January 1, 2014; and an employee who first became a | ||||||
17 | participant on or after January 1, 2011 but before January 1, | ||||||
18 | 2014 and has elected to transfer his or her pension credits to | ||||||
19 | the Tier 3 retirement plan.
| ||||||
20 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
21 | Sec. 15-111. Earnings.
"Earnings": An amount paid for | ||||||
22 | personal services equal to the sum of
the basic compensation | ||||||
23 | plus extra compensation for summer teaching,
overtime or other |
| |||||||
| |||||||
1 | extra service. For periods for which an employee receives
| ||||||
2 | service credit under subsection (c) of Section 15-113.1 or | ||||||
3 | Section 15-113.2,
earnings are equal to the basic compensation | ||||||
4 | on which contributions are
paid by the employee during such | ||||||
5 | periods. Compensation for employment which is
irregular, | ||||||
6 | intermittent and temporary shall not be considered earnings, | ||||||
7 | unless
the participant is also receiving earnings from the | ||||||
8 | employer as an employee
under Section 15-107.
| ||||||
9 | With respect to transition pay paid by the University of | ||||||
10 | Illinois to a
person who was a participating employee employed | ||||||
11 | in the fire department of
the University of Illinois's | ||||||
12 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
13 | of that fire department:
| ||||||
14 | (1) "Earnings" includes transition pay paid to the | ||||||
15 | employee on or after
the effective date of this amendatory | ||||||
16 | Act of the 91st General Assembly.
| ||||||
17 | (2) "Earnings" includes transition pay paid to the | ||||||
18 | employee before the
effective date of this amendatory Act | ||||||
19 | of the 91st General Assembly only if (i)
employee | ||||||
20 | contributions under Section 15-157 have been withheld from | ||||||
21 | that
transition pay or (ii) the employee pays to the System | ||||||
22 | before January 1, 2001
an amount representing employee | ||||||
23 | contributions under Section 15-157 on that
transition pay. | ||||||
24 | Employee contributions under item (ii) may be paid in a | ||||||
25 | lump
sum, by withholding from additional transition pay | ||||||
26 | accruing before January 1,
2001, or in any other manner |
| |||||||
| |||||||
1 | approved by the System. Upon payment of the
employee | ||||||
2 | contributions on transition pay, the corresponding | ||||||
3 | employer
contributions become an obligation of the State.
| ||||||
4 | (f) Notwithstanding any other provision of this Code, the | ||||||
5 | earnings of a Tier I participant or a Tier 3 employee for the | ||||||
6 | purposes of this Code shall not exceed, for periods of service | ||||||
7 | on or after the effective date of this amendatory Act of the | ||||||
8 | 98th General Assembly, the greater of (i) the annual | ||||||
9 | contribution and benefit base established for the applicable | ||||||
10 | year by the Commissioner of Social Security under the federal | ||||||
11 | Social Security Act or (ii) the annual earnings of the | ||||||
12 | participant during the 365 days immediately preceding that | ||||||
13 | effective date; except that this limitation does not apply to a | ||||||
14 | participant's earnings that are determined under an employment | ||||||
15 | contract or collective bargaining agreement that is in effect | ||||||
16 | on the effective date of this amendatory Act of the 98th | ||||||
17 | General Assembly and has not been amended or renewed after that | ||||||
18 | date. | ||||||
19 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
20 | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
| ||||||
21 | Sec. 15-113.6. Service for employment in public schools. | ||||||
22 | "Service for
employment in public schools": Includes
those | ||||||
23 | periods not exceeding the lesser of 10 years or 2/3 of the | ||||||
24 | service
granted under other Sections of this Article dealing | ||||||
25 | with service credit,
during which a person who entered the |
| |||||||
| |||||||
1 | system after September 1, 1974 was
employed full time by a | ||||||
2 | public common school, public college and public
university, or | ||||||
3 | by an agency or instrumentality of any of the foregoing,
of any | ||||||
4 | state, territory, dependency or possession of the United States | ||||||
5 | of
America, including the Philippine Islands, or a school
| ||||||
6 | operated by or under
the auspices of any agency or department | ||||||
7 | of any other state, if the person
(1) cannot qualify for a | ||||||
8 | retirement pension or other benefit based upon
employer
| ||||||
9 | contributions from another retirement system, exclusive of | ||||||
10 | federal social
security, based in whole or in part upon this | ||||||
11 | employment, and (2) pays the
lesser of (A) an amount equal to | ||||||
12 | 8% of his or her annual basic compensation
on the date of | ||||||
13 | becoming a participating employee subsequent to this service
| ||||||
14 | multiplied by the number of years of such service, together | ||||||
15 | with compound
interest from the date participation begins to | ||||||
16 | the date payment is received
by the board at the rate of 6% per | ||||||
17 | annum through August 31, 1982, and at
the effective rates after | ||||||
18 | that date, and (B) 50% of the actuarial value
of the increase | ||||||
19 | in the retirement annuity provided by this service, and
(3) | ||||||
20 | contributes for at least 5 years subsequent to this employment | ||||||
21 | to one
or more of the following systems: the State Universities | ||||||
22 | Retirement System,
the Teachers' Retirement System of the State | ||||||
23 | of Illinois, and the Public
School Teachers' Pension and | ||||||
24 | Retirement Fund of Chicago.
| ||||||
25 | The service granted under this Section shall not be | ||||||
26 | considered in determining
whether the person has the minimum of |
| |||||||
| |||||||
1 | 8 years of service required to qualify
for a retirement annuity | ||||||
2 | at age 55 or the 5 years of service required to
qualify for a | ||||||
3 | retirement annuity at age 62, as provided in Section 15-135, or | ||||||
4 | the 10 years required by subsection (c) of Section 1-160 , or | ||||||
5 | the 5 years of service required by Section 15-158.5 for a | ||||||
6 | person who first becomes a participant on or after January 1, | ||||||
7 | 2011 .
The maximum allowable service of 10 years for this | ||||||
8 | governmental employment
shall be reduced by the service credit | ||||||
9 | which is validated under paragraph
(2) of subsection (b) of | ||||||
10 | Section 16-127 and paragraph 1 of Section 17-133.
| ||||||
11 | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
| ||||||
12 | (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
| ||||||
13 | Sec. 15-113.7. Service for other public employment. | ||||||
14 | "Service for
other public employment": Includes those periods | ||||||
15 | not exceeding the lesser of
10 years or 2/3 of the service | ||||||
16 | granted under other Sections of this Article
dealing with | ||||||
17 | service credit, during which a person was employed full time by
| ||||||
18 | the United States government, or by the government of a state, | ||||||
19 | or by a
political subdivision of a state, or by an agency or | ||||||
20 | instrumentality of any of
the foregoing, if the person (1) | ||||||
21 | cannot qualify for a retirement pension or
other benefit based | ||||||
22 | upon employer contributions from another retirement system,
| ||||||
23 | exclusive of federal social security, based in whole or in part | ||||||
24 | upon this
employment, and (2) pays the lesser of (A) an amount | ||||||
25 | equal to 8% of his or her
annual basic compensation on the date |
| |||||||
| |||||||
1 | of becoming a participating employee
subsequent to this service | ||||||
2 | multiplied by the number of years of such service,
together | ||||||
3 | with compound interest from the date participation begins to | ||||||
4 | the date
payment is received by the board at the rate of 6% per | ||||||
5 | annum through August 31,
1982, and at the effective rates after | ||||||
6 | that date, and (B) 50% of the actuarial
value of the increase | ||||||
7 | in the retirement annuity provided by this service, and
(3) | ||||||
8 | contributes for at least 5 years subsequent to this employment | ||||||
9 | to one or
more of the following systems: the State Universities | ||||||
10 | Retirement System, the
Teachers' Retirement System of the State | ||||||
11 | of Illinois, and the Public School
Teachers' Pension and | ||||||
12 | Retirement Fund of Chicago. If a function of a
governmental | ||||||
13 | unit as defined by Section 20-107 is transferred by law, in | ||||||
14 | whole
or in part to an employer, and an employee transfers | ||||||
15 | employment from this
governmental unit to such employer within | ||||||
16 | 6 months of the transfer of the
function, the payment for | ||||||
17 | service authorized under this Section shall not
exceed the | ||||||
18 | amount which would have been payable for this service to the
| ||||||
19 | retirement system covering the governmental unit from which the | ||||||
20 | function was
transferred.
| ||||||
21 | The service granted under this Section shall not be | ||||||
22 | considered in determining
whether the person has the minimum of | ||||||
23 | 8 years of service required to qualify
for a retirement annuity | ||||||
24 | at age 55 or the 5 years of service required to
qualify for a | ||||||
25 | retirement annuity at age 62, as provided in Section 15-135 , | ||||||
26 | the 10 years required by subsection (c) of Section 1-160, or |
| |||||||
| |||||||
1 | the 5 years of service required by Section 15-158.5 .
The | ||||||
2 | maximum allowable service of 10 years for this governmental | ||||||
3 | employment
shall be reduced by the service credit which is | ||||||
4 | validated under paragraph
(2) of subsection (b) of Section | ||||||
5 | 16-127 and paragraph one of Section 17-133.
| ||||||
6 | Except as hereinafter provided, this Section shall not | ||||||
7 | apply to
persons who become participants in the system after | ||||||
8 | September 1, 1974.
| ||||||
9 | (Source: P.A. 95-83, eff. 8-13-07.)
| ||||||
10 | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| ||||||
11 | Sec. 15-135. Retirement annuities - Conditions.
| ||||||
12 | (a) A participant who retires in one of the following | ||||||
13 | specified years with
the specified amount of service is | ||||||
14 | entitled to a retirement annuity at any age
under the | ||||||
15 | retirement program applicable to the participant:
| ||||||
16 | 35 years if retirement is in 1997 or before;
| ||||||
17 | 34 years if retirement is in 1998;
| ||||||
18 | 33 years if retirement is in 1999;
| ||||||
19 | 32 years if retirement is in 2000;
| ||||||
20 | 31 years if retirement is in 2001;
| ||||||
21 | 30 years if retirement is in 2002 or later.
| ||||||
22 | A participant with 8 or more years of service after | ||||||
23 | September 1, 1941, is
entitled to a retirement annuity on or | ||||||
24 | after attainment of age 55.
| ||||||
25 | A participant with at least 5 but less than 8 years
of |
| |||||||
| |||||||
1 | service after September 1, 1941, is entitled to a retirement | ||||||
2 | annuity on
or after attainment of age 62.
| ||||||
3 | A participant who has at least 25 years of service in this | ||||||
4 | system as a
police officer or firefighter is entitled to a | ||||||
5 | retirement
annuity on or after the attainment of age 50, if | ||||||
6 | Rule 4 of Section
15-136 is applicable to the participant.
| ||||||
7 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
8 | Tier I participant who begins receiving a retirement annuity | ||||||
9 | under this Article after July 1, 2013: | ||||||
10 | (1) If the Tier I participant is at least 45 years old | ||||||
11 | on the effective date of this amendatory Act of the 98th | ||||||
12 | General Assembly, then the reference to retirement with 30 | ||||||
13 | years of service as well as the references to age 50, 55, | ||||||
14 | and 62 in subsection (a) of this Section remain unchanged. | ||||||
15 | (2) If the Tier I participant is at least 40 but less | ||||||
16 | than 45 years old on the effective date of this amendatory | ||||||
17 | Act of the 98th General Assembly, then the reference to | ||||||
18 | retirement with 30 years of service as well as the | ||||||
19 | references to age 50, 55, and 62 in subsection (a) of this | ||||||
20 | Section shall be increased by one year. | ||||||
21 | (3) If the Tier I participant is at least 35 but less | ||||||
22 | than 40 years old on the effective date of this amendatory | ||||||
23 | Act of the 98th General Assembly, then the reference to | ||||||
24 | retirement with 30 years of service as well as the | ||||||
25 | references to age 50, 55, and 62 in subsection (a) of this | ||||||
26 | Section shall be increased by 3 years. |
| |||||||
| |||||||
1 | (4) If the Tier I participant is less than 35 years old | ||||||
2 | on the effective date of this amendatory Act of the 98th | ||||||
3 | General Assembly, then the reference to retirement with 30 | ||||||
4 | years of service as well as the references to age 50, 55, | ||||||
5 | and 62 in subsection (a) of this Section shall be increased | ||||||
6 | by 5 years. | ||||||
7 | Notwithstanding Section 1-103.1, this subsection (a-5) | ||||||
8 | applies without regard to whether or not the Tier I participant | ||||||
9 | is in active service under this Article on or after the | ||||||
10 | effective date of this amendatory Act of the 98th General | ||||||
11 | Assembly. | ||||||
12 | (b) The annuity payment period shall begin on the date | ||||||
13 | specified by the
participant or the recipient of a disability | ||||||
14 | retirement annuity submitting a written application, which | ||||||
15 | date shall not be prior
to termination of employment or more | ||||||
16 | than one year before the application is
received by the board; | ||||||
17 | however, if the participant is not an employee of an
employer | ||||||
18 | participating in this System or in a participating system as | ||||||
19 | defined
in Article 20 of this Code on April 1 of the calendar | ||||||
20 | year next following
the calendar year in which the participant | ||||||
21 | attains age 70 1/2, the annuity
payment period shall begin on | ||||||
22 | that date regardless of whether an application
has been filed.
| ||||||
23 | (c) An annuity is not payable if the amount provided under | ||||||
24 | Section
15-136 is less than $10 per month.
| ||||||
25 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
2 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
3 | of this
Section 15-136 apply only to those participants who are | ||||||
4 | participating in the
traditional benefit package or the | ||||||
5 | portable benefit package and do not
apply to participants who | ||||||
6 | are participating in the self-managed plan.
| ||||||
7 | (a) The amount of a participant's retirement annuity, | ||||||
8 | expressed in the form
of a single-life annuity, shall be | ||||||
9 | determined by whichever of the following
rules is applicable | ||||||
10 | and provides the largest annuity:
| ||||||
11 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
12 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
13 | for each of the next 10 years of
service, 2.10% for each year | ||||||
14 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
15 | each year in excess of 30; or for persons who retire on or
| ||||||
16 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
17 | each year of
service.
| ||||||
18 | Rule 2: The retirement annuity shall be the sum of the | ||||||
19 | following,
determined from amounts credited to the participant | ||||||
20 | in accordance with the
actuarial tables and the effective rate | ||||||
21 | of interest in effect at the
time the retirement annuity | ||||||
22 | begins:
| ||||||
23 | (i) the normal annuity which can be provided on an | ||||||
24 | actuarially
equivalent basis, by the accumulated normal | ||||||
25 | contributions as of
the date the annuity begins;
| ||||||
26 | (ii) an annuity from employer contributions of an |
| |||||||
| |||||||
1 | amount equal to that
which can be provided on an | ||||||
2 | actuarially equivalent basis from the accumulated
normal | ||||||
3 | contributions made by the participant under Section | ||||||
4 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
5 | accumulated normal contributions made by
the participant; | ||||||
6 | and
| ||||||
7 | (iii) the annuity that can be provided on an | ||||||
8 | actuarially equivalent basis
from the entire contribution | ||||||
9 | made by the participant under Section 15-113.3.
| ||||||
10 | For the purpose of calculating an annuity under this Rule | ||||||
11 | 2, the contribution required under subsection (c-5) of Section | ||||||
12 | 15-157 shall not be considered when determining the | ||||||
13 | participant's accumulated normal contributions under clause | ||||||
14 | (i) or the employer contribution under clause (ii). | ||||||
15 | With respect to a police officer or firefighter who retires | ||||||
16 | on or after
August 14, 1998, the accumulated normal | ||||||
17 | contributions taken into account under
clauses (i) and (ii) of | ||||||
18 | this Rule 2 shall include the additional normal
contributions | ||||||
19 | made by the police officer or firefighter under Section
| ||||||
20 | 15-157(a).
| ||||||
21 | The amount of a retirement annuity calculated under this | ||||||
22 | Rule 2 shall
be computed solely on the basis of the | ||||||
23 | participant's accumulated normal
contributions, as specified | ||||||
24 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
25 | or employer contribution for early retirement under
Section | ||||||
26 | 15-136.2 nor any other employer contribution shall be used in |
| |||||||
| |||||||
1 | the
calculation of the amount of a retirement annuity under | ||||||
2 | this Rule 2.
| ||||||
3 | This amendatory Act of the 91st General Assembly is a | ||||||
4 | clarification of
existing law and applies to every participant | ||||||
5 | and annuitant without regard to
whether status as an employee | ||||||
6 | terminates before the effective date of this
amendatory Act.
| ||||||
7 | This Rule 2 does not apply to a person who first becomes an | ||||||
8 | employee under this Article on or after July 1, 2005.
| ||||||
9 | Rule 3: The retirement annuity of a participant who is | ||||||
10 | employed
at least one-half time during the period on which his | ||||||
11 | or her final rate of
earnings is based, shall be equal to the | ||||||
12 | participant's years of service
not to exceed 30, multiplied by | ||||||
13 | (1) $96 if the participant's final rate
of earnings is less | ||||||
14 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
15 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
16 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
17 | the final rate
of earnings is at least $5,500 but less than | ||||||
18 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
19 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
20 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
21 | the final rate of earnings is at least $8,500 but
less than | ||||||
22 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
23 | more, except that the annuity for those persons having made an | ||||||
24 | election under
Section 15-154(a-1) shall be calculated and | ||||||
25 | payable under the portable
retirement benefit program pursuant | ||||||
26 | to the provisions of Section 15-136.4.
|
| |||||||
| |||||||
1 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
2 | more years of
service as a police officer or firefighter, and a | ||||||
3 | participant who is age 55 or
over and has at least 20 but less | ||||||
4 | than 25 years of service as a police officer
or firefighter, | ||||||
5 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
6 | final rate of earnings for each of the first 10 years of | ||||||
7 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
8 | the next 10 years of service as a
police officer or | ||||||
9 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
10 | officer or firefighter in excess of 20. The retirement annuity | ||||||
11 | for all other
service shall be computed under Rule 1.
| ||||||
12 | For purposes of this Rule 4, a participant's service as a | ||||||
13 | firefighter
shall also include the following:
| ||||||
14 | (i) service that is performed while the person is an | ||||||
15 | employee under
subsection (h) of Section 15-107; and
| ||||||
16 | (ii) in the case of an individual who was a | ||||||
17 | participating employee
employed in the fire department of | ||||||
18 | the University of Illinois's
Champaign-Urbana campus | ||||||
19 | immediately prior to the elimination of that fire
| ||||||
20 | department and who immediately after the elimination of | ||||||
21 | that fire department
transferred to another job with the | ||||||
22 | University of Illinois, service performed
as an employee of | ||||||
23 | the University of Illinois in a position other than police
| ||||||
24 | officer or firefighter, from the date of that transfer | ||||||
25 | until the employee's
next termination of service with the | ||||||
26 | University of Illinois.
|
| |||||||
| |||||||
1 | Rule 5: The retirement annuity of a participant who elected | ||||||
2 | early
retirement under the provisions of Section 15-136.2 and | ||||||
3 | who, on or before
February 16, 1995, brought administrative | ||||||
4 | proceedings pursuant to the
administrative rules adopted by the | ||||||
5 | System to challenge the calculation of his
or her retirement | ||||||
6 | annuity shall be the sum of the following, determined from
| ||||||
7 | amounts credited to the participant in accordance with the | ||||||
8 | actuarial tables and
the prescribed rate of interest in effect | ||||||
9 | at the time the retirement annuity
begins:
| ||||||
10 | (i) the normal annuity which can be provided on an | ||||||
11 | actuarially equivalent
basis, by the accumulated normal | ||||||
12 | contributions as of the date the annuity
begins; and
| ||||||
13 | (ii) an annuity from employer contributions of an | ||||||
14 | amount equal to that
which can be provided on an | ||||||
15 | actuarially equivalent basis from the accumulated
normal | ||||||
16 | contributions made by the participant under Section | ||||||
17 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
18 | accumulated normal contributions made by the
participant; | ||||||
19 | and
| ||||||
20 | (iii) an annuity which can be provided on an | ||||||
21 | actuarially equivalent basis
from the employee | ||||||
22 | contribution for early retirement under Section 15-136.2, | ||||||
23 | and
an annuity from employer contributions of an amount | ||||||
24 | equal to that which can be
provided on an actuarially | ||||||
25 | equivalent basis from the employee contribution for
early | ||||||
26 | retirement under Section 15-136.2.
|
| |||||||
| |||||||
1 | In no event shall a retirement annuity under this Rule 5 be | ||||||
2 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
3 | obtained by dividing the
combined employee and employer | ||||||
4 | contributions made under Section 15-136.2 by the
System's | ||||||
5 | annuity factor for the age of the participant at the beginning | ||||||
6 | of the
annuity payment period and (2) the amount equal to the | ||||||
7 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
8 | Section 15-136(b) as if no
contributions had been made under | ||||||
9 | Section 15-136.2.
| ||||||
10 | With respect to a participant who is qualified for a | ||||||
11 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
12 | began before the effective date of this
amendatory Act of the | ||||||
13 | 91st General Assembly, and for whom an employee
contribution | ||||||
14 | was made under Section 15-136.2, the System shall recalculate | ||||||
15 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
16 | additional amounts due
in the manner provided in Section | ||||||
17 | 15-186.1 for benefits mistakenly set too low.
| ||||||
18 | The amount of a retirement annuity calculated under this | ||||||
19 | Rule 5 shall be
computed solely on the basis of those | ||||||
20 | contributions specifically set forth in
this Rule 5. Except as | ||||||
21 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
22 | nor employer contribution for early retirement under Section | ||||||
23 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
24 | the calculation of the
amount of a retirement annuity under | ||||||
25 | this Rule 5.
| ||||||
26 | The General Assembly has adopted the changes set forth in |
| |||||||
| |||||||
1 | Section 25 of this
amendatory Act of the 91st General Assembly | ||||||
2 | in recognition that the decision of
the Appellate Court for the | ||||||
3 | Fourth District in Mattis v. State Universities
Retirement | ||||||
4 | System et al. might be deemed to give some right to the | ||||||
5 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
6 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
7 | implementation of the decision of the
Appellate Court for the | ||||||
8 | Fourth District in Mattis v. State Universities
Retirement | ||||||
9 | System et al. with respect to that plaintiff.
| ||||||
10 | The changes made by Section 25 of this amendatory Act of | ||||||
11 | the 91st General
Assembly apply without regard to whether the | ||||||
12 | person is in service as an
employee on or after its effective | ||||||
13 | date.
| ||||||
14 | (b) The retirement annuity provided under Rules 1 and 3 | ||||||
15 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
16 | participant is under age 60 at the
time of retirement. However, | ||||||
17 | this reduction shall not apply in the following
cases:
| ||||||
18 | (1) For a disabled participant whose disability | ||||||
19 | benefits have been
discontinued because he or she has | ||||||
20 | exhausted eligibility for disability
benefits under clause | ||||||
21 | (6) of Section 15-152;
| ||||||
22 | (2) For a participant who has at least the number of | ||||||
23 | years of service
required to retire at any age under | ||||||
24 | subsection (a) of Section 15-135; or
| ||||||
25 | (3) For that portion of a retirement annuity which has | ||||||
26 | been provided on
account of service of the participant |
| |||||||
| |||||||
1 | during periods when he or she performed
the duties of a | ||||||
2 | police officer or firefighter, if these duties were | ||||||
3 | performed
for at least 5 years immediately preceding the | ||||||
4 | date the retirement annuity
is to begin.
| ||||||
5 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
6 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
7 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
8 | Code of 1986, as such Section may be
amended from time to time | ||||||
9 | and as such benefit limits shall be adjusted by
the | ||||||
10 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
11 | earnings.
| ||||||
12 | (d) Subject to the provisions of subsections (d-1) and | ||||||
13 | (d-2), an An annuitant whose status as an employee terminates | ||||||
14 | after August 14,
1969 shall receive automatic increases in his | ||||||
15 | or her retirement annuity as
follows:
| ||||||
16 | Effective January 1 immediately following the date the | ||||||
17 | retirement annuity
begins, the annuitant shall receive an | ||||||
18 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
19 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
20 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
21 | multiplied by
the number of full months which elapsed from the | ||||||
22 | date the retirement annuity
payments began to January 1, 1972, | ||||||
23 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
24 | months which elapsed from January 1, 1972, or the date the
| ||||||
25 | retirement annuity payments began, whichever is later, to | ||||||
26 | January 1, 1978, plus
0.25% of such annuity multiplied by the |
| |||||||
| |||||||
1 | number of full months which elapsed
from January 1, 1978, or | ||||||
2 | the date the retirement annuity payments began,
whichever is | ||||||
3 | later, to the effective date of the increase.
| ||||||
4 | The annuitant shall receive an increase in his or her | ||||||
5 | monthly retirement
annuity on each January 1 thereafter during | ||||||
6 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
7 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | ||||||
8 | this Section. The change made under this subsection by P.A. | ||||||
9 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
10 | annuitant whose status as
an employee terminates before or | ||||||
11 | after that date.
| ||||||
12 | Beginning January 1, 1990 and except as provided in | ||||||
13 | subsections (d-1) and (d-2) , all automatic annual increases | ||||||
14 | payable under
this Section shall be calculated as a percentage | ||||||
15 | of the total annuity
payable at the time of the increase, | ||||||
16 | including all increases previously
granted under this Article.
| ||||||
17 | The change made in this subsection by P.A. 85-1008 is | ||||||
18 | effective January
26, 1988, and is applicable without regard to | ||||||
19 | whether status as an employee
terminated before that date.
| ||||||
20 | (d-1) Notwithstanding any other provision of this Article, | ||||||
21 | for a Tier I retiree, the amount of each automatic annual | ||||||
22 | increase in retirement annuity occurring on or after the | ||||||
23 | effective date of this amendatory Act of the 98th General | ||||||
24 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
25 | payable at the time of the increase, including previous | ||||||
26 | increases granted. |
| |||||||
| |||||||
1 | (d-2) Notwithstanding any other provision of this Article, | ||||||
2 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
3 | first be subject to annual increases on the January 1 occurring | ||||||
4 | on or next after the attainment of age 67 or the January 1 | ||||||
5 | occurring on or next after the fifth anniversary of the annuity | ||||||
6 | start date, whichever occurs earlier. If on the effective date | ||||||
7 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
8 | retiree has already received an annual increase under this | ||||||
9 | Section but does not yet meet the new eligibility requirements | ||||||
10 | of this subsection, the annual increases already received shall | ||||||
11 | continue in force, but no additional annual increase shall be | ||||||
12 | granted until the Tier I retiree meets the new eligibility | ||||||
13 | requirements. | ||||||
14 | (d-3) Notwithstanding Section 1-103.1, subsections (d-1) | ||||||
15 | and (d-2) apply without regard to whether or not the Tier I | ||||||
16 | retiree is in active service under this Article on or after the | ||||||
17 | effective date of this amendatory Act of the 98th General | ||||||
18 | Assembly. | ||||||
19 | (e) If, on January 1, 1987, or the date the retirement | ||||||
20 | annuity payment
period begins, whichever is later, the sum of | ||||||
21 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
22 | Section
and the automatic annual increases provided under the | ||||||
23 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
24 | the retirement
annuity which would be provided by Rule 3, the | ||||||
25 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
26 | the date the
retirement annuity payment period begins, |
| |||||||
| |||||||
1 | whichever is later, to the amount
which would be provided by | ||||||
2 | Rule 3 of this Section. Such increased
amount shall be | ||||||
3 | considered as the retirement annuity in determining
benefits | ||||||
4 | provided under other Sections of this Article. This paragraph
| ||||||
5 | applies without regard to whether status as an employee | ||||||
6 | terminated before the
effective date of this amendatory Act of | ||||||
7 | 1987, provided that the annuitant was
employed at least | ||||||
8 | one-half time during the period on which the final rate of
| ||||||
9 | earnings was based.
| ||||||
10 | (f) A participant is entitled to such additional annuity as | ||||||
11 | may be provided
on an actuarially equivalent basis, by any | ||||||
12 | accumulated
additional contributions to his or her credit. | ||||||
13 | However,
the additional contributions made by the participant | ||||||
14 | toward the automatic
increases in annuity provided under this | ||||||
15 | Section and the contributions made under subsection (c-5) of | ||||||
16 | Section 15-157 by this amendatory Act of the 98th General | ||||||
17 | Assembly shall not be taken into
account in determining the | ||||||
18 | amount of such additional annuity.
| ||||||
19 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
20 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
21 | or in part to an employer, and (2)
a participant transfers | ||||||
22 | employment from such governmental unit to such employer
within | ||||||
23 | 6 months after the transfer of the function, and (3) the sum of | ||||||
24 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
25 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
26 | participant by all other retirement
systems covered by Article |
| |||||||
| |||||||
1 | 20, and (C) the initial primary insurance amount to
which the | ||||||
2 | participant is entitled under the Social Security Act, is less | ||||||
3 | than
the retirement annuity which would have been payable if | ||||||
4 | all of the
participant's pension credits validated under | ||||||
5 | Section 20-109 had been validated
under this system, a | ||||||
6 | supplemental annuity equal to the difference in such
amounts | ||||||
7 | shall be payable to the participant.
| ||||||
8 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
9 | retirement annuity on or before January 1, 1971 shall have his | ||||||
10 | or her
retirement annuity then being paid increased $1 per | ||||||
11 | month for
each year of creditable service. On January 1, 1982, | ||||||
12 | an annuitant whose
retirement annuity began on or before | ||||||
13 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
14 | being paid increased $1 per month for each year of
creditable | ||||||
15 | service.
| ||||||
16 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
17 | annuity began on or
before January 1, 1977, shall have the | ||||||
18 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
19 | per year of creditable service times the number of years
that | ||||||
20 | have elapsed since the annuity began.
| ||||||
21 | (j) For participants to whom subsection (a-5) of Section | ||||||
22 | 15-135 applies, the references to age 50, 55, and 62 in this | ||||||
23 | Section are increased as provided in subsection (a-5) of | ||||||
24 | Section 15-135. | ||||||
25 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| ||||||
2 | Sec. 15-139. Retirement annuities; cancellation; suspended | ||||||
3 | during
employment. | ||||||
4 | (a) If an annuitant returns to employment for an employer
| ||||||
5 | within 60 days after the beginning of the retirement annuity | ||||||
6 | payment
period, the retirement annuity shall be cancelled, and | ||||||
7 | the annuitant shall
refund to the System the total amount of | ||||||
8 | the retirement annuity payments
which he or she received. If | ||||||
9 | the retirement annuity is cancelled, the
participant shall | ||||||
10 | continue to participate in the System.
| ||||||
11 | (b) If an annuitant retires prior to age 60 and receives or | ||||||
12 | becomes
entitled to receive during any month compensation in | ||||||
13 | excess of the monthly
retirement annuity (including any | ||||||
14 | automatic annual increases) for services
performed after the | ||||||
15 | date of retirement for any employer under this System, that
| ||||||
16 | portion of the monthly
retirement annuity provided by employer | ||||||
17 | contributions shall not be payable.
| ||||||
18 | If an annuitant retires at age 60 or over and receives
or | ||||||
19 | becomes entitled to receive during any academic year | ||||||
20 | compensation in
excess of the difference between his or her | ||||||
21 | highest annual earnings prior
to retirement and his or her | ||||||
22 | annual retirement annuity computed under Rule
1, Rule 2, Rule | ||||||
23 | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| ||||||
24 | 15-136.4 or 15-158.5 ,
for services performed after
the date of | ||||||
25 | retirement for any employer under this System, that portion of
| ||||||
26 | the monthly retirement annuity provided by employer |
| |||||||
| |||||||
1 | contributions shall be
reduced by an amount equal to the | ||||||
2 | compensation that exceeds such difference.
| ||||||
3 | However, any remuneration received for serving as a member | ||||||
4 | of the
Illinois Educational Labor Relations Board shall be | ||||||
5 | excluded from
"compensation" for the purposes of this | ||||||
6 | subsection (b), and serving as a
member of the Illinois | ||||||
7 | Educational Labor Relations Board shall not be
deemed to be a | ||||||
8 | return to employment for the purposes of this Section.
This | ||||||
9 | provision applies without regard to whether service was | ||||||
10 | terminated
prior to the effective date of this amendatory Act | ||||||
11 | of 1991.
| ||||||
12 | (c) If an employer certifies that an annuitant has been | ||||||
13 | reemployed
on a permanent and continuous basis or in a position
| ||||||
14 | in which the annuitant is expected to serve for at least 9 | ||||||
15 | months, the
annuitant shall resume his or her status as a | ||||||
16 | participating employee
and shall be entitled to all rights | ||||||
17 | applicable to
participating employees upon filing with the | ||||||
18 | board an
election to forgo all annuity payments during the | ||||||
19 | period
of reemployment. Upon subsequent retirement, the | ||||||
20 | retirement
annuity shall consist of the annuity which was | ||||||
21 | terminated by the reemployment,
plus the additional retirement | ||||||
22 | annuity based upon service
granted during the period of | ||||||
23 | reemployment, but the combined retirement
annuity shall not | ||||||
24 | exceed the maximum
annuity applicable on the date of the last | ||||||
25 | retirement.
| ||||||
26 | The total service and earnings credited before and after |
| |||||||
| |||||||
1 | the initial
date of retirement shall be considered in | ||||||
2 | determining eligibility of the
employee or the employee's | ||||||
3 | beneficiary to benefits under this
Article, and in calculating | ||||||
4 | final rate of earnings.
| ||||||
5 | In determining the death benefit
payable to a beneficiary | ||||||
6 | of an annuitant who again becomes a participating
employee | ||||||
7 | under this Section, accumulated normal and additional
| ||||||
8 | contributions shall be considered as the sum of the accumulated | ||||||
9 | normal and
additional contributions at the date of initial | ||||||
10 | retirement and the
accumulated normal and additional | ||||||
11 | contributions credited after that date,
less the sum of the | ||||||
12 | annuity payments received by the annuitant.
| ||||||
13 | The survivors insurance benefits provided under Section | ||||||
14 | 15-145 shall not
be applicable to an annuitant who resumes his | ||||||
15 | or her status as a
participating employee, unless the | ||||||
16 | annuitant, at the time of initial
retirement, has a survivors | ||||||
17 | insurance beneficiary who could qualify
for such benefits.
| ||||||
18 | If the participant's employment is terminated because of | ||||||
19 | circumstances
other than death before 9 months from the date of | ||||||
20 | reemployment, the
provisions of this Section regarding | ||||||
21 | resumption of status as a
participating employee shall not | ||||||
22 | apply. The normal and survivors insurance
contributions which | ||||||
23 | are deducted during this period shall be refunded to
the | ||||||
24 | annuitant without interest, and subsequent benefits under this | ||||||
25 | Article
shall be the same as those which were applicable prior | ||||||
26 | to the date the
annuitant resumed employment.
|
| |||||||
| |||||||
1 | The amendments made to this Section by this amendatory Act | ||||||
2 | of the 91st
General Assembly apply without regard to whether | ||||||
3 | the annuitant was in service
on or after the effective date of | ||||||
4 | this amendatory Act.
| ||||||
5 | This Section also applies to retirement annuities under the | ||||||
6 | Tier 3 retirement plan established under Section 15-158.5. | ||||||
7 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
8 | (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
| ||||||
9 | Sec. 15-153.2. Disability retirement annuity. A | ||||||
10 | participant whose
disability benefits are discontinued under | ||||||
11 | the provisions of clause (6) of
Section 15-152 and who is not a | ||||||
12 | participant in the optional retirement plan
established under | ||||||
13 | Section 15-158.2 is entitled to a disability
retirement annuity | ||||||
14 | of 35% of the basic compensation which was payable to the
| ||||||
15 | participant at the time that disability began, provided that | ||||||
16 | the board determines that the participant has a medically | ||||||
17 | determinable physical or
mental impairment that prevents him or | ||||||
18 | her from
engaging in any substantial gainful activity, and | ||||||
19 | which can be expected to
result in death or which has lasted or | ||||||
20 | can be expected to last for a continuous
period of not less | ||||||
21 | than 12 months.
| ||||||
22 | The board's determination of whether a participant is | ||||||
23 | disabled shall be
based upon:
| ||||||
24 | (i) a written certificate from one or more licensed and | ||||||
25 | practicing
physicians appointed by or acceptable to the |
| |||||||
| |||||||
1 | board, stating that the
participant is unable to engage in | ||||||
2 | any substantial gainful activity; and
| ||||||
3 | (ii) any other medical examinations, hospital records, | ||||||
4 | laboratory
results, or other information necessary for | ||||||
5 | determining the employment
capacity and condition of the | ||||||
6 | participant.
| ||||||
7 | The terms "medically determinable physical or mental | ||||||
8 | impairment" and
"substantial gainful activity" shall have the | ||||||
9 | meanings ascribed to them in the
federal Social Security Act, | ||||||
10 | as now or hereafter amended, and the
regulations issued | ||||||
11 | thereunder.
| ||||||
12 | The disability retirement annuity payment period shall | ||||||
13 | begin immediately
following the expiration of the disability | ||||||
14 | benefit payments under clause
(6) of Section 15-152 and shall | ||||||
15 | be discontinued for a recipient of a disability retirement | ||||||
16 | annuity when (1) the physical or
mental impairment no longer | ||||||
17 | prevents the participant from engaging in any
substantial | ||||||
18 | gainful activity, (2) the participant dies or (3) the | ||||||
19 | participant
elects to receive a retirement annuity under | ||||||
20 | Sections 15-135 and 15-136 or Section 15-158.5 .
If a person's | ||||||
21 | disability retirement annuity is discontinued under clause
| ||||||
22 | (1), all rights and credits accrued in the system on the date | ||||||
23 | that the
disability retirement annuity began shall be restored, | ||||||
24 | and the disability
retirement annuity paid shall be considered | ||||||
25 | as disability payments under
clause (6) of Section 15-152.
| ||||||
26 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
2 | Sec. 15-155. Employer contributions.
| ||||||
3 | (a) The State of Illinois shall make contributions by | ||||||
4 | appropriations of
amounts which, together with the other | ||||||
5 | employer contributions from trust,
federal, and other funds , | ||||||
6 | employee contributions, income from investments,
and other | ||||||
7 | income of this System, will be sufficient to meet the cost of
| ||||||
8 | maintaining and administering the System on a 100% 90% funded | ||||||
9 | basis in accordance
with actuarial recommendations by the end | ||||||
10 | of State fiscal year 2043 .
| ||||||
11 | The Board shall determine the amount of State contributions | ||||||
12 | required for
each fiscal year on the basis of the actuarial | ||||||
13 | tables and other assumptions
adopted by the Board and the | ||||||
14 | recommendations of the actuary, using the formula
in subsection | ||||||
15 | (a-1).
| ||||||
16 | (a-1) For State fiscal years 2014 through 2043, the minimum | ||||||
17 | contribution
to the System to be made by the State for each | ||||||
18 | fiscal year shall be an amount
determined by the System to be | ||||||
19 | equal to the sum of (1) the State's portion of the projected | ||||||
20 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
21 | to bring the total assets of the
System up to 100% of the total | ||||||
22 | actuarial liabilities of the System by the end of
State fiscal | ||||||
23 | year 2043. In making these determinations, the required State
| ||||||
24 | contribution shall be calculated each year as a level | ||||||
25 | percentage of payroll
over the years remaining to and including |
| |||||||
| |||||||
1 | fiscal year 2043 and shall be
determined under the projected | ||||||
2 | unit credit actuarial cost method. | ||||||
3 | Beginning in State fiscal year 2044, the minimum State | ||||||
4 | contribution for each fiscal year shall be the amount needed to | ||||||
5 | maintain the total assets of the System at 100% of the total | ||||||
6 | actuarial liabilities of the System. | ||||||
7 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
8 | minimum contribution
to the System to be made by the State for | ||||||
9 | each fiscal year shall be an amount
determined by the System to | ||||||
10 | be sufficient to bring the total assets of the
System up to 90% | ||||||
11 | of the total actuarial liabilities of the System by the end of
| ||||||
12 | State fiscal year 2045. In making these determinations, the | ||||||
13 | required State
contribution shall be calculated each year as a | ||||||
14 | level percentage of payroll
over the years remaining to and | ||||||
15 | including fiscal year 2045 and shall be
determined under the | ||||||
16 | projected unit credit actuarial cost method.
| ||||||
17 | For State fiscal years 1996 through 2005, the State | ||||||
18 | contribution to
the System, as a percentage of the applicable | ||||||
19 | employee payroll, shall be
increased in equal annual increments | ||||||
20 | so that by State fiscal year 2011, the
State is contributing at | ||||||
21 | the rate required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2006 is | ||||||
24 | $166,641,900.
| ||||||
25 | Notwithstanding any other provision of this Article, the | ||||||
26 | total required State
contribution for State fiscal year 2007 is |
| |||||||
| |||||||
1 | $252,064,100.
| ||||||
2 | For each of State fiscal years 2008 through 2009, the State | ||||||
3 | contribution to
the System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be
increased in equal annual increments | ||||||
5 | from the required State contribution for State fiscal year | ||||||
6 | 2007, so that by State fiscal year 2011, the
State is | ||||||
7 | contributing at the rate otherwise required under this Section.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State contribution for State fiscal year 2010 is | ||||||
10 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
11 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
12 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
13 | share of bond sale expenses determined by the System's share of | ||||||
14 | total bond proceeds, (ii) any amounts received from the General | ||||||
15 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
16 | proceeds due to the issuance of discounted bonds, if | ||||||
17 | applicable. | ||||||
18 | Notwithstanding any other provision of this Article, the
| ||||||
19 | total required State contribution for State fiscal year 2011 is
| ||||||
20 | the amount recertified by the System on or before April 1, 2011 | ||||||
21 | pursuant to Section 15-165 and shall be made from the State | ||||||
22 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
23 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
24 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
25 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
26 | received from the General
Revenue Fund in fiscal year 2011, and |
| |||||||
| |||||||
1 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
2 | discounted bonds, if
applicable. | ||||||
3 | Beginning in State fiscal year 2046, the minimum State | ||||||
4 | contribution for
each fiscal year shall be the amount needed to | ||||||
5 | maintain the total assets of
the System at 90% of the total | ||||||
6 | actuarial liabilities of the System.
| ||||||
7 | Amounts received by the System pursuant to Section 25 of | ||||||
8 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
9 | Finance Act in any fiscal year do not reduce and do not | ||||||
10 | constitute payment of any portion of the minimum State | ||||||
11 | contribution required under this Article in that fiscal year. | ||||||
12 | Such amounts shall not reduce, and shall not be included in the | ||||||
13 | calculation of, the required State contributions under this | ||||||
14 | Article in any future year until the System has reached a | ||||||
15 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
16 | to the "required State contribution" or any substantially | ||||||
17 | similar term does not include or apply to any amounts payable | ||||||
18 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
19 | Notwithstanding any other provision of this Section, the | ||||||
20 | required State
contribution for State fiscal year 2005 and for | ||||||
21 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
22 | fiscal year 2013 , as
calculated under this Section and
| ||||||
23 | certified under Section 15-165, shall not exceed an amount | ||||||
24 | equal to (i) the
amount of the required State contribution that | ||||||
25 | would have been calculated under
this Section for that fiscal | ||||||
26 | year if the System had not received any payments
under |
| |||||||
| |||||||
1 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
2 | Act, minus
(ii) the portion of the State's total debt service | ||||||
3 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
4 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
5 | and certified by the Comptroller, that is the same as the | ||||||
6 | System's portion of
the total moneys distributed under | ||||||
7 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
8 | Act. In determining this maximum for State fiscal years 2008 | ||||||
9 | through 2010, however, the amount referred to in item (i) shall | ||||||
10 | be increased, as a percentage of the applicable employee | ||||||
11 | payroll, in equal increments calculated from the sum of the | ||||||
12 | required State contribution for State fiscal year 2007 plus the | ||||||
13 | applicable portion of the State's total debt service payments | ||||||
14 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
15 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
16 | Act, so that, by State fiscal year 2011, the
State is | ||||||
17 | contributing at the rate otherwise required under this Section.
| ||||||
18 | (b) If an employee is paid from trust or federal funds, the | ||||||
19 | employer
shall pay to the Board contributions from those funds | ||||||
20 | which are
sufficient to cover the accruing normal costs on | ||||||
21 | behalf of the employee.
However, universities having employees | ||||||
22 | who are compensated out of local
auxiliary funds, income funds, | ||||||
23 | or service enterprise funds are not required
to pay such | ||||||
24 | contributions on behalf of those employees. The local auxiliary
| ||||||
25 | funds, income funds, and service enterprise funds of | ||||||
26 | universities shall not be
considered trust funds for the |
| |||||||
| |||||||
1 | purpose of this Article, but funds of alumni
associations, | ||||||
2 | foundations, and athletic associations which are affiliated | ||||||
3 | with
the universities included as employers under this Article | ||||||
4 | and other employers
which do not receive State appropriations | ||||||
5 | are considered to be trust funds for
the purpose of this | ||||||
6 | Article.
| ||||||
7 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
8 | each make
employer contributions to this System for their | ||||||
9 | respective firefighter
employees who participate in this | ||||||
10 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
11 | of contributions to be made by those municipalities shall
be | ||||||
12 | determined annually by the Board on the basis of the actuarial | ||||||
13 | assumptions
adopted by the Board and the recommendations of the | ||||||
14 | actuary, and shall be
expressed as a percentage of salary for | ||||||
15 | each such employee. The Board shall
certify the rate to the | ||||||
16 | affected municipalities as soon as may be practical.
The | ||||||
17 | employer contributions required under this subsection shall be | ||||||
18 | remitted by
the municipality to the System at the same time and | ||||||
19 | in the same manner as
employee contributions.
| ||||||
20 | (c) Through State fiscal year 1995: The total employer | ||||||
21 | contribution shall
be apportioned among the various funds of | ||||||
22 | the State and other employers,
whether trust, federal, or other | ||||||
23 | funds, in accordance with actuarial procedures
approved by the | ||||||
24 | Board. State of Illinois contributions for employers receiving
| ||||||
25 | State appropriations for personal services shall be payable | ||||||
26 | from appropriations
made to the employers or to the System. The |
| |||||||
| |||||||
1 | contributions for Class I
community colleges covering earnings | ||||||
2 | other than those paid from trust and
federal funds, shall be | ||||||
3 | payable solely from appropriations to the Illinois
Community | ||||||
4 | College Board or the System for employer contributions.
| ||||||
5 | (d) Beginning in State fiscal year 1996, the required State | ||||||
6 | contributions
to the System shall be appropriated directly to | ||||||
7 | the System and shall be payable
through vouchers issued in | ||||||
8 | accordance with subsection (c) of Section 15-165, except as | ||||||
9 | provided in subsection (g).
| ||||||
10 | (e) The State Comptroller shall draw warrants payable to | ||||||
11 | the System upon
proper certification by the System or by the | ||||||
12 | employer in accordance with the
appropriation laws and this | ||||||
13 | Code.
| ||||||
14 | (f) Normal costs under this Section means liability for
| ||||||
15 | pensions and other benefits which accrues to the System because | ||||||
16 | of the
credits earned for service rendered by the participants | ||||||
17 | during the
fiscal year and expenses of administering the | ||||||
18 | System, but shall not
include the principal of or any | ||||||
19 | redemption premium or interest on any bonds
issued by the Board | ||||||
20 | or any expenses incurred or deposits required in
connection | ||||||
21 | therewith.
| ||||||
22 | (g) If the amount of a participant's earnings for any | ||||||
23 | academic year used to determine the final rate of earnings, | ||||||
24 | determined on a full-time equivalent basis, exceeds the amount | ||||||
25 | of his or her earnings with the same employer for the previous | ||||||
26 | academic year, determined on a full-time equivalent basis, by |
| |||||||
| |||||||
1 | more than 6%, the participant's employer shall pay to the | ||||||
2 | System, in addition to all other payments required under this | ||||||
3 | Section and in accordance with guidelines established by the | ||||||
4 | System, the present value of the increase in benefits resulting | ||||||
5 | from the portion of the increase in earnings that is in excess | ||||||
6 | of 6%. This present value shall be computed by the System on | ||||||
7 | the basis of the actuarial assumptions and tables used in the | ||||||
8 | most recent actuarial valuation of the System that is available | ||||||
9 | at the time of the computation. The System may require the | ||||||
10 | employer to provide any pertinent information or | ||||||
11 | documentation. | ||||||
12 | Whenever it determines that a payment is or may be required | ||||||
13 | under this subsection (g), the System shall calculate the | ||||||
14 | amount of the payment and bill the employer for that amount. | ||||||
15 | The bill shall specify the calculations used to determine the | ||||||
16 | amount due. If the employer disputes the amount of the bill, it | ||||||
17 | may, within 30 days after receipt of the bill, apply to the | ||||||
18 | System in writing for a recalculation. The application must | ||||||
19 | specify in detail the grounds of the dispute and, if the | ||||||
20 | employer asserts that the calculation is subject to subsection | ||||||
21 | (h) or (i) of this Section, must include an affidavit setting | ||||||
22 | forth and attesting to all facts within the employer's | ||||||
23 | knowledge that are pertinent to the applicability of subsection | ||||||
24 | (h) or (i). Upon receiving a timely application for | ||||||
25 | recalculation, the System shall review the application and, if | ||||||
26 | appropriate, recalculate the amount due.
|
| |||||||
| |||||||
1 | The employer contributions required under this subsection | ||||||
2 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
3 | after receipt of the bill. If the employer contributions are | ||||||
4 | not paid within 90 days after receipt of the bill, then | ||||||
5 | interest will be charged at a rate equal to the System's annual | ||||||
6 | actuarially assumed rate of return on investment compounded | ||||||
7 | annually from the 91st day after receipt of the bill. Payments | ||||||
8 | must be concluded within 3 years after the employer's receipt | ||||||
9 | of the bill. | ||||||
10 | (h) This subsection (h) applies only to payments made or | ||||||
11 | salary increases given on or after June 1, 2005 but before July | ||||||
12 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
13 | require the System to refund any payments received before July | ||||||
14 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
15 | When assessing payment for any amount due under subsection | ||||||
16 | (g), the System shall exclude earnings increases paid to | ||||||
17 | participants under contracts or collective bargaining | ||||||
18 | agreements entered into, amended, or renewed before June 1, | ||||||
19 | 2005.
| ||||||
20 | When assessing payment for any amount due under subsection | ||||||
21 | (g), the System shall exclude earnings increases paid to a | ||||||
22 | participant at a time when the participant is 10 or more years | ||||||
23 | from retirement eligibility under Section 15-135.
| ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (g), the System shall exclude earnings increases resulting from | ||||||
26 | overload work, including a contract for summer teaching, or |
| |||||||
| |||||||
1 | overtime when the employer has certified to the System, and the | ||||||
2 | System has approved the certification, that: (i) in the case of | ||||||
3 | overloads (A) the overload work is for the sole purpose of | ||||||
4 | academic instruction in excess of the standard number of | ||||||
5 | instruction hours for a full-time employee occurring during the | ||||||
6 | academic year that the overload is paid and (B) the earnings | ||||||
7 | increases are equal to or less than the rate of pay for | ||||||
8 | academic instruction computed using the participant's current | ||||||
9 | salary rate and work schedule; and (ii) in the case of | ||||||
10 | overtime, the overtime was necessary for the educational | ||||||
11 | mission. | ||||||
12 | When assessing payment for any amount due under subsection | ||||||
13 | (g), the System shall exclude any earnings increase resulting | ||||||
14 | from (i) a promotion for which the employee moves from one | ||||||
15 | classification to a higher classification under the State | ||||||
16 | Universities Civil Service System, (ii) a promotion in academic | ||||||
17 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
18 | promotion that the Illinois Community College Board has | ||||||
19 | recommended in accordance with subsection (k) of this Section. | ||||||
20 | These earnings increases shall be excluded only if the | ||||||
21 | promotion is to a position that has existed and been filled by | ||||||
22 | a member for no less than one complete academic year and the | ||||||
23 | earnings increase as a result of the promotion is an increase | ||||||
24 | that results in an amount no greater than the average salary | ||||||
25 | paid for other similar positions. | ||||||
26 | (i) When assessing payment for any amount due under |
| |||||||
| |||||||
1 | subsection (g), the System shall exclude any salary increase | ||||||
2 | described in subsection (h) of this Section given on or after | ||||||
3 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
4 | collective bargaining agreement entered into, amended, or | ||||||
5 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
6 | Notwithstanding any other provision of this Section, any | ||||||
7 | payments made or salary increases given after June 30, 2014 | ||||||
8 | shall be used in assessing payment for any amount due under | ||||||
9 | subsection (g) of this Section.
| ||||||
10 | (j) The System shall prepare a report and file copies of | ||||||
11 | the report with the Governor and the General Assembly by | ||||||
12 | January 1, 2007 that contains all of the following information: | ||||||
13 | (1) The number of recalculations required by the | ||||||
14 | changes made to this Section by Public Act 94-1057 for each | ||||||
15 | employer. | ||||||
16 | (2) The dollar amount by which each employer's | ||||||
17 | contribution to the System was changed due to | ||||||
18 | recalculations required by Public Act 94-1057. | ||||||
19 | (3) The total amount the System received from each | ||||||
20 | employer as a result of the changes made to this Section by | ||||||
21 | Public Act 94-4. | ||||||
22 | (4) The increase in the required State contribution | ||||||
23 | resulting from the changes made to this Section by Public | ||||||
24 | Act 94-1057. | ||||||
25 | (k) The Illinois Community College Board shall adopt rules | ||||||
26 | for recommending lists of promotional positions submitted to |
| |||||||
| |||||||
1 | the Board by community colleges and for reviewing the | ||||||
2 | promotional lists on an annual basis. When recommending | ||||||
3 | promotional lists, the Board shall consider the similarity of | ||||||
4 | the positions submitted to those positions recognized for State | ||||||
5 | universities by the State Universities Civil Service System. | ||||||
6 | The Illinois Community College Board shall file a copy of its | ||||||
7 | findings with the System. The System shall consider the | ||||||
8 | findings of the Illinois Community College Board when making | ||||||
9 | determinations under this Section. The System shall not exclude | ||||||
10 | any earnings increases resulting from a promotion when the | ||||||
11 | promotion was not submitted by a community college. Nothing in | ||||||
12 | this subsection (k) shall require any community college to | ||||||
13 | submit any information to the Community College Board.
| ||||||
14 | (l) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (m) For purposes of determining the required State | ||||||
26 | contribution to the system for a particular year, the actuarial |
| |||||||
| |||||||
1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the system's actuarially assumed rate of return. | ||||||
3 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
4 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
5 | 7-13-12; revised 10-17-12.)
| ||||||
6 | (40 ILCS 5/15-155.1 new) | ||||||
7 | Sec. 15-155.1. Actions to enforce payments by employers | ||||||
8 | other than the State. Any employer, other than the State, that | ||||||
9 | fails to transmit to the System contributions required of
it | ||||||
10 | under this Article or contributions required of employees, for | ||||||
11 | more
than 90 days after such contributions are due, is subject | ||||||
12 | to the following:
after giving notice to the employer, the | ||||||
13 | System may certify
to the State Comptroller or the Illinois | ||||||
14 | Community College Board, whichever is applicable, the
amounts | ||||||
15 | of such delinquent payments and the State Comptroller or the | ||||||
16 | Illinois Community College Board, whichever is applicable, | ||||||
17 | shall deduct the amounts so certified
or any part thereof from | ||||||
18 | any State funds to be remitted
to the employer and shall
pay | ||||||
19 | the amount so deducted to the System. If State funds from which
| ||||||
20 | such deductions may be made are not available, the System may | ||||||
21 | proceed
against the employer to recover the
amounts of such | ||||||
22 | delinquent payments in the appropriate circuit court. | ||||||
23 | The System may provide for an
audit of the records of an | ||||||
24 | employer, other than the State, as
may be required to establish | ||||||
25 | the amounts of required contributions.
The employer shall make |
| |||||||
| |||||||
1 | its records
available to the System for the purpose of such | ||||||
2 | audit. The cost of such
audit shall be added to the amount of | ||||||
3 | the delinquent payments and may
be recovered by the System from | ||||||
4 | the employer at the same time and in the same manner as the | ||||||
5 | delinquent payments
are recovered.
| ||||||
6 | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
| ||||||
7 | Sec. 15-156. Obligations of State ; funding guarantees . | ||||||
8 | (a) The payment of (1) the
required State contributions, | ||||||
9 | (2) all benefits
granted under this system and (3) all expenses | ||||||
10 | in connection with the
administration and operation thereof are | ||||||
11 | obligations of the State of
Illinois to the extent specified in | ||||||
12 | this Article. The accumulated
employee normal, additional and | ||||||
13 | survivors insurance contributions
credited to the accounts of | ||||||
14 | active and inactive participants
shall not be used to pay the | ||||||
15 | State's share of the obligations.
| ||||||
16 | (b) Beginning July 1, 2013, the State shall be | ||||||
17 | contractually obligated to contribute to the System under | ||||||
18 | Section 15-155 in each State fiscal year an amount not less | ||||||
19 | than the sum of (i) the State's normal cost for that year and
| ||||||
20 | (ii) the portion of the unfunded accrued liability assigned to | ||||||
21 | that year by law in accordance with a schedule that distributes | ||||||
22 | payments equitably over a reasonable period of time and in | ||||||
23 | accordance with accepted actuarial practices. The obligations | ||||||
24 | created under this subsection (b) are contractual obligations | ||||||
25 | protected and enforceable under Article I, Section 16 and |
| |||||||
| |||||||
1 | Article XIII, Section 5 of the Illinois Constitution. | ||||||
2 | Notwithstanding any other provision of law, if the State | ||||||
3 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
4 | this subsection, the System may bring a mandamus action in the | ||||||
5 | Circuit Court of Sangamon or Champaign County to compel the | ||||||
6 | State to make that payment, irrespective of other remedies that
| ||||||
7 | may be available to the System. In ordering the State to make | ||||||
8 | the required payment, the court may order a reasonable payment | ||||||
9 | schedule to enable the State to make the required payment | ||||||
10 | without significantly imperiling the public health, safety, or | ||||||
11 | welfare. | ||||||
12 | Any payments required to be made by the State pursuant to | ||||||
13 | this subsection (b)
are expressly subordinated to the payment | ||||||
14 | of the principal, interest, and premium, if any, on any
bonded | ||||||
15 | debt obligation of the State or any other State-created entity, | ||||||
16 | either currently outstanding or to
be issued, for which the | ||||||
17 | source of repayment or security thereon is derived directly or | ||||||
18 | indirectly from
tax revenues collected by the State or any | ||||||
19 | other State-created entity. Payments on such bonded
| ||||||
20 | obligations include any statutory fund transfers or other | ||||||
21 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
22 | in State law or bond indentures, into debt service funds or | ||||||
23 | accounts of the State
related to such bonded obligations, | ||||||
24 | consistent with the payment schedules associated with such
| ||||||
25 | obligations. | ||||||
26 | (Source: P.A. 83-1440.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
2 | Sec. 15-157. Employee Contributions.
| ||||||
3 | (a) Each participating employee
shall make contributions | ||||||
4 | towards the retirement
benefits payable under the retirement | ||||||
5 | program applicable to the
employee from each payment
of | ||||||
6 | earnings applicable to employment under this system on and | ||||||
7 | after the
date of becoming a participant as follows: Prior to | ||||||
8 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
9 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
10 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
11 | are to be considered as normal contributions for purposes
of | ||||||
12 | this Article.
| ||||||
13 | Each participant who is a police officer or firefighter | ||||||
14 | shall make normal
contributions of 8% of each payment of | ||||||
15 | earnings applicable to employment as a
police officer or | ||||||
16 | firefighter under this system on or after September 1, 1981,
| ||||||
17 | unless he or she files with the board within 60 days after the | ||||||
18 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
19 | the board receives notice that
he or she is employed as a | ||||||
20 | police officer or firefighter, whichever is later,
a written | ||||||
21 | notice waiving the retirement formula provided by Rule 4 of | ||||||
22 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
23 | participant had met the
conditions set forth in Section | ||||||
24 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
25 | 1991 but failed to make the additional normal contributions
|
| |||||||
| |||||||
1 | required by this paragraph, he or she may elect to pay the | ||||||
2 | additional
contributions plus compound interest at the | ||||||
3 | effective rate. If such payment
is received by the board, the | ||||||
4 | service shall be considered as police officer
service in | ||||||
5 | calculating the retirement annuity under Rule 4 of Section | ||||||
6 | 15-136.
While performing service described in clause (i) or | ||||||
7 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
8 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
9 | of determining the rate of employee contributions
under this | ||||||
10 | Section.
| ||||||
11 | (b) Starting September 1, 1969, each participating | ||||||
12 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
13 | earnings to finance a portion
of the cost of the annual | ||||||
14 | increases in retirement annuity provided under
Section 15-136, | ||||||
15 | except that with respect to participants in the
self-managed | ||||||
16 | plan this additional contribution shall be used to finance the
| ||||||
17 | benefits obtained under that retirement program.
| ||||||
18 | (c) In addition to the amounts described in subsections (a) | ||||||
19 | and (b) of this
Section, each participating employee shall make | ||||||
20 | contributions of 1% of earnings
applicable under this system on | ||||||
21 | and after August 1, 1959. The contributions
made under this | ||||||
22 | subsection (c) shall be considered as survivor's insurance
| ||||||
23 | contributions for purposes of this Article if the employee is | ||||||
24 | covered under
the traditional benefit package, and such | ||||||
25 | contributions shall be considered
as additional contributions | ||||||
26 | for purposes of this Article if the employee is
participating |
| |||||||
| |||||||
1 | in the self-managed plan or has elected to participate in the
| ||||||
2 | portable benefit package and has completed the applicable | ||||||
3 | one-year waiting
period. Contributions in excess of $80 during | ||||||
4 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
5 | of $120 during any fiscal year thereafter until
September 1, | ||||||
6 | 1971 shall be considered as additional contributions for | ||||||
7 | purposes
of this Article.
| ||||||
8 | (c-5) In addition to the contributions otherwise required | ||||||
9 | under this Article, each Tier I participant shall also make the | ||||||
10 | following contributions toward the retirement
benefits payable | ||||||
11 | under the retirement program applicable to the
employee from | ||||||
12 | each payment
of earnings applicable to employment under this | ||||||
13 | system: | ||||||
14 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
15 | 1% of earnings; and | ||||||
16 | (2) beginning on July 1, 2014, 2% of earnings. | ||||||
17 | Except as otherwise specified, these contributions are to | ||||||
18 | be considered as normal contributions for purposes
of this | ||||||
19 | Article. | ||||||
20 | (d) If the board by board rule so permits and subject to | ||||||
21 | such conditions
and limitations as may be specified in its | ||||||
22 | rules, a participant may make
other additional contributions of | ||||||
23 | such percentage of earnings or amounts as
the participant shall | ||||||
24 | elect in a written notice thereof received by the board.
| ||||||
25 | (e) That fraction of a participant's total accumulated | ||||||
26 | normal
contributions, the numerator of which is equal to the |
| |||||||
| |||||||
1 | number of years of
service in excess of that which is required | ||||||
2 | to qualify for the maximum
retirement annuity, and the | ||||||
3 | denominator of which is equal to the total
service of the | ||||||
4 | participant, shall be considered as accumulated additional
| ||||||
5 | contributions. The determination of the applicable maximum | ||||||
6 | annuity and
the adjustment in contributions required by this | ||||||
7 | provision shall be made
as of the date of the participant's | ||||||
8 | retirement.
| ||||||
9 | (f) Notwithstanding the foregoing, a participating | ||||||
10 | employee shall not
be required to make contributions under this | ||||||
11 | Section after the date upon
which continuance of such | ||||||
12 | contributions would otherwise cause his or her
retirement | ||||||
13 | annuity to exceed the maximum retirement annuity as specified | ||||||
14 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
15 | (g) A participating employee may make contributions for the | ||||||
16 | purchase of
service credit under this Article.
| ||||||
17 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
18 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
19 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| ||||||
20 | (40 ILCS 5/15-158.5 new) | ||||||
21 | Sec. 15-158.5. Tier 3 retirement plan. | ||||||
22 | (a) Contents of Tier 3 retirement plan.
The Tier 3 | ||||||
23 | retirement plan consists of a defined-benefit component and a | ||||||
24 | defined-contribution component; both components apply to all | ||||||
25 | participants in the Tier 3 retirement plan. The plan also |
| |||||||
| |||||||
1 | includes provisions relating to contributions and refunds. | ||||||
2 | The defined-benefit component includes a retirement | ||||||
3 | annuity as provided under this Section, a surviving spouse | ||||||
4 | annuity as provided under this Section, and a disability | ||||||
5 | benefit as
provided in this Section. | ||||||
6 | The defined-contribution component shall be a defined | ||||||
7 | contribution plan that shall be established by the System. Each | ||||||
8 | participant shall have an individual account whose assets are | ||||||
9 | managed by the System, which shall design a target-date or | ||||||
10 | life-cycle investment allocation mechanism for this plan. This | ||||||
11 | mechanism shall invest all assets in participants' defined | ||||||
12 | contribution accounts in vehicles already in use by the | ||||||
13 | System's defined-benefit Fund, but the specific allocation | ||||||
14 | will vary with the participant's age, with more aggressive | ||||||
15 | investments for younger participants and more conservative | ||||||
16 | investments for older participants. | ||||||
17 | The balance in a participant's defined-contribution | ||||||
18 | account shall be a function exclusively of employee | ||||||
19 | contributions as described in subsection (g), employer | ||||||
20 | contributions as described in subsection (h), and actual | ||||||
21 | investment returns net of fees and administrative costs as | ||||||
22 | certified by the System. | ||||||
23 | Subsequent to retirement, a participant may access the | ||||||
24 | assets in his or her defined-contribution account by taking | ||||||
25 | lump-sum disbursements, rolling over the balance into another | ||||||
26 | qualified plan, or purchasing an annuity or other insurance |
| |||||||
| |||||||
1 | product to the extent allowable under federal law. Under no | ||||||
2 | circumstances shall the State or employer be exposed to any | ||||||
3 | investment or actuarial risk in the determination of benefit | ||||||
4 | levels. | ||||||
5 | The defined-contribution component of the Tier 3 | ||||||
6 | retirement plan does not include any of the following with | ||||||
7 | respect to service performed while participating in the Tier 3 | ||||||
8 | retirement plan: retirement annuities, death benefits, | ||||||
9 | survivors insurance, or disability benefits
payable directly | ||||||
10 | from the System as provided in Sections 15-135 through 15-153.3 | ||||||
11 | (except Section 15-139) or Section 1-160; refunds determined | ||||||
12 | under Section 15-154; or participation in the self-managed plan | ||||||
13 | under Section 15-158.2, except as provided in subsection (c) of | ||||||
14 | this Section. | ||||||
15 | Participation in the Tier 3 retirement plan under this | ||||||
16 | Section constitutes
membership in the State Universities | ||||||
17 | Retirement System. Participants in the Tier 3 retirement plan | ||||||
18 | remain subject to the provisions of this Article that apply to | ||||||
19 | participants generally and that do not depend upon the benefit | ||||||
20 | package or plan. A participant in the Tier 3 retirement plan is | ||||||
21 | entitled to the applicable benefits of
Article 20 of this Code. | ||||||
22 | The Tier 3 retirement plan is subject to the provisions of | ||||||
23 | Article 1 of this Code that apply to retirement systems | ||||||
24 | generally and must be qualified under the Internal Revenue Code | ||||||
25 | of 1986. | ||||||
26 | (b) Definitions. As used in this Section: |
| |||||||
| |||||||
1 | "Consumer Price Index-U" means
the Consumer Price Index | ||||||
2 | published by the Bureau of Labor Statistics of the United | ||||||
3 | States
Department of Labor that measures the average change in | ||||||
4 | prices of goods and
services purchased by all urban consumers, | ||||||
5 | United States city average, all
items, 1982-84 = 100. | ||||||
6 | "Final rate of earnings" means: | ||||||
7 | (1) for an employee who is paid on an hourly basis or | ||||||
8 | who receives an annual salary in installments during 12 | ||||||
9 | months of each academic year, the average annual earnings | ||||||
10 | obtained by dividing by 8 the total earnings of the | ||||||
11 | employee during the 96 consecutive months in which the | ||||||
12 | total earnings were the highest within the last 120 months | ||||||
13 | prior to termination; | ||||||
14 | (2) for any other employee, the average annual earnings | ||||||
15 | during the 8 consecutive academic years within the 10 years | ||||||
16 | prior to termination in which the employee's earnings were | ||||||
17 | the highest; and | ||||||
18 | (3) for an employee with less than 96 consecutive | ||||||
19 | months or 8 consecutive academic years of service, | ||||||
20 | whichever is necessary, the average earnings during his or | ||||||
21 | her entire period of service. | ||||||
22 | (c) Participation. An employee who first becomes a | ||||||
23 | participant of the System on or after January 1, 2014 shall | ||||||
24 | participate in the Tier 3 retirement plan in lieu of | ||||||
25 | participation in the traditional benefit package or the | ||||||
26 | portable benefit package. However, an employee who first |
| |||||||
| |||||||
1 | becomes a participant of the System on or after January 1, 2014 | ||||||
2 | shall have the option to elect to participate in the | ||||||
3 | self-managed plan established under Section 15-158.2 in lieu of | ||||||
4 | participating in the Tier 3 retirement plan. | ||||||
5 | An employee who first became a participant of this System | ||||||
6 | on or after January 1, 2011 and before January 1, 2014 may | ||||||
7 | choose to transfer his or her pension credits into the Tier 3 | ||||||
8 | retirement plan by making, on or before June 1, 2014, an | ||||||
9 | irrevocable election to transfer his or her pension credits | ||||||
10 | into the Tier 3 retirement plan. An employee so electing will | ||||||
11 | be credited with employee contributions and employer normal | ||||||
12 | cost contributions plus interest at the actual rate of return. | ||||||
13 | The System shall calculate the total cost of transferring an | ||||||
14 | equal amount of service credit into the Tier 3 defined benefit | ||||||
15 | plan and use the credited contributions to cover the cost of | ||||||
16 | the transfer. Any unused contributions shall be deposited into | ||||||
17 | the employee's defined contribution account. | ||||||
18 | (d) Retirement annuity. | ||||||
19 | (1) A participant in the Tier 3 retirement plan is | ||||||
20 | entitled to a retirement annuity under this Section upon | ||||||
21 | written application if he or she has attained age 67, has | ||||||
22 | at least 5 years of service credit, and has terminated | ||||||
23 | employment under this Article. | ||||||
24 | A participant in the Tier 3 retirement plan is entitled | ||||||
25 | to a reduced retirement annuity upon written application if | ||||||
26 | he or she has attained age 62 but is below age 67 at the |
| |||||||
| |||||||
1 | time of retirement, has at least 10 years of service | ||||||
2 | credit, and has terminated employment under this Article. | ||||||
3 | (2) The retirement annuity shall be 1.1% of the final | ||||||
4 | rate of earnings for each year of creditable service. If | ||||||
5 | the participant has not attained age 67 at the time of | ||||||
6 | retirement, the retirement annuity shall be reduced by | ||||||
7 | one-half of 1% for each full month by which the age at | ||||||
8 | retirement is less than age 67. | ||||||
9 | (3) An eligible person may elect to have his or her | ||||||
10 | retirement annuity under this Section determined in | ||||||
11 | accordance with Article 20 of this Code. | ||||||
12 | (4) A retirement annuity under this Section is subject | ||||||
13 | to the provisions of Section 15-139. | ||||||
14 | (5) A retirement annuity under this Section shall be | ||||||
15 | subject to annual increases on each January 1 occurring on | ||||||
16 | or after the attainment of age 67 or the first anniversary | ||||||
17 | of the annuity start date, whichever is later. Each annual | ||||||
18 | increase shall be a percentage of the originally granted | ||||||
19 | retirement annuity equal to 3% or one-half of the annual | ||||||
20 | unadjusted percentage increase in the Consumer Price | ||||||
21 | Index-U for the 12 months ending with the preceding | ||||||
22 | September, whichever is less. If that annual unadjusted | ||||||
23 | percentage change is zero or there is a decrease, then the | ||||||
24 | annuity shall not be increased. | ||||||
25 | (e) Survivor's annuity. | ||||||
26 | (1) Eligibility for and the duration of a survivor's |
| |||||||
| |||||||
1 | annuity under this Section shall be determined in the same | ||||||
2 | manner as eligibility for survivor's insurance benefits | ||||||
3 | under Section 15-145. | ||||||
4 | (2) The initial survivor's annuity of an eligible | ||||||
5 | survivor of a retired participant in the Tier 3 retirement | ||||||
6 | plan shall be in the amount of 66 2/3% of the retired | ||||||
7 | participant's retirement annuity at the date of death. | ||||||
8 | The initial survivor's annuity of an eligible survivor | ||||||
9 | of a participant in the Tier 3 retirement plan who was not | ||||||
10 | retired shall be 66 2/3% of the retirement annuity that | ||||||
11 | would have been payable under this Section if the deceased | ||||||
12 | participant had retired on the date of death, disregarding | ||||||
13 | the minimum age required for retirement. | ||||||
14 | (3) A survivor's annuity shall be increased on each | ||||||
15 | January 1 occurring on or after the first anniversary
of | ||||||
16 | the commencement of the annuity. Each annual increase shall | ||||||
17 | be a percentage of the originally granted survivor's | ||||||
18 | annuity equal to 3% or one-half of the annual unadjusted | ||||||
19 | percentage increase in the Consumer Price Index-U for the | ||||||
20 | 12 months ending with the preceding September, whichever is | ||||||
21 | less. If that annual unadjusted percentage change is zero | ||||||
22 | or there is a decrease, then the annuity shall not be | ||||||
23 | increased. | ||||||
24 | (f) Disability benefit. | ||||||
25 | (1) A participant in the Tier 3 retirement plan is | ||||||
26 | eligible for the disability benefit provided under this |
| |||||||
| |||||||
1 | subsection subject to the conditions of eligibility | ||||||
2 | specified in Section 15-150. | ||||||
3 | (2) The disability benefit provided under this | ||||||
4 | subsection shall begin to accrue as specified in Section | ||||||
5 | 15-151. | ||||||
6 | (3) The disability benefit provided under this | ||||||
7 | subsection shall be discontinued in accordance with | ||||||
8 | Section 15-152. | ||||||
9 | (4) The disability benefit provided under this | ||||||
10 | subsection shall be an amount determined as specified in | ||||||
11 | Section 15-153. | ||||||
12 | (5) The disability benefit provided under this | ||||||
13 | subsection shall be reduced in accordance with Section | ||||||
14 | 15-153.1. | ||||||
15 | (6) The provisions of Section 15-153.2 apply to any | ||||||
16 | participant whose disability benefit under this subsection | ||||||
17 | is discontinued by the operation of clause (6) of Section | ||||||
18 | 15-152 and who is not a participant in the self-managed | ||||||
19 | plan. | ||||||
20 | (7) The disability benefit provided under this Section | ||||||
21 | shall be increased on each January 1 occurring on or after | ||||||
22 | the first anniversary
of the commencement of that benefit. | ||||||
23 | Each annual increase shall be a percentage of the | ||||||
24 | disability benefit then payable, including any previous | ||||||
25 | increases, equal to 3% or one-half of the annual unadjusted | ||||||
26 | percentage increase in the Consumer Price Index-U for the |
| |||||||
| |||||||
1 | 12 months ending with the preceding September, whichever is | ||||||
2 | less. If that annual unadjusted percentage change is zero | ||||||
3 | or there is a decrease, then the disability benefit shall | ||||||
4 | not be increased. | ||||||
5 | An amount of employer contributions shall be used for the | ||||||
6 | purpose of providing the disability
benefit under this | ||||||
7 | subsection to the participant. Prior to the beginning of each | ||||||
8 | plan
year under the Tier 3 retirement plan, the Board of | ||||||
9 | Trustees shall determine, as a
percentage of earnings, the | ||||||
10 | amount of employer contributions to be allocated
during that | ||||||
11 | plan year for providing a disability benefit for employees in | ||||||
12 | the
Tier 3 retirement plan. | ||||||
13 | (g) Employee contributions. In lieu of the employee | ||||||
14 | contributions required under Section 15-157, each employee who | ||||||
15 | is a participant in the Tier 3 retirement plan shall contribute | ||||||
16 | to the System an amount equal to 4% of each payment of earnings | ||||||
17 | to fund the defined-benefit component of the Tier 3 retirement | ||||||
18 | plan and an amount equal to 5% of each payment of earnings to | ||||||
19 | fund the defined-contribution component of the Tier 3 | ||||||
20 | retirement plan. These contributions shall be deducted from the | ||||||
21 | employee's earnings and may be picked up by the employer for | ||||||
22 | federal tax purposes under Section 15-157.1. These | ||||||
23 | contributions are a condition of employment. | ||||||
24 | A Tier 3 employee may make additional contributions to the | ||||||
25 | defined-contribution component of the Tier 3 retirement plan in | ||||||
26 | accordance with the procedures prescribed by the System, to the |
| |||||||
| |||||||
1 | extent permitted under the rules of the plan. | ||||||
2 | (h) Actual employer contributions. | ||||||
3 | (1) To fund the Tier 3 retirement plan, the actual | ||||||
4 | employer of an employee who participates in the Tier 3 | ||||||
5 | retirement plan shall annually contribute to the System an | ||||||
6 | amount determined by the System equal to the sum of: (i) | ||||||
7 | the annual employer's normal cost of the defined-benefit | ||||||
8 | component of the Tier 3 retirement plan for employees of | ||||||
9 | that employer, (ii) any unfunded accrued liability arising | ||||||
10 | from the Tier 3 retirement plan assigned to the employer | ||||||
11 | that year in accordance with subsection (h-5), and (iii) | ||||||
12 | any optional matching contribution to be made for that year | ||||||
13 | to the defined-contribution accounts of the local | ||||||
14 | employers' employees by the local employer pursuant to a | ||||||
15 | collective bargaining agreement or other employment | ||||||
16 | contract, provided that the optional matching contribution | ||||||
17 | shall not be less than 3% or greater than 10% of the | ||||||
18 | applicable employee salary. | ||||||
19 | (2) Each year, the retirement system shall obtain an | ||||||
20 | actuarial estimate of the annual normal cost of the | ||||||
21 | defined-benefit component of the Tier 3 retirement plan. | ||||||
22 | (3) The contributions required under this subsection | ||||||
23 | (h) are in addition to the contributions required under | ||||||
24 | Section 15-155 and any other contributions required under | ||||||
25 | this Article. | ||||||
26 | (4) In no event shall a participant have an option of |
| |||||||
| |||||||
1 | receiving any portion of the local employer contributions | ||||||
2 | to the defined-benefit plan in cash. | ||||||
3 | (h-5) For use in determining the employer's contribution | ||||||
4 | for unfunded accrued liability under item (ii) of paragraph (1) | ||||||
5 | of subsection (h), the System shall maintain a separate account | ||||||
6 | for each employer. The separate account shall be maintained in | ||||||
7 | such form and detail as the System determines to be | ||||||
8 | appropriate. The separate account shall reflect the following | ||||||
9 | items to the extent that they are attributable to that employer | ||||||
10 | and arise on or after the effective date of this amendatory Act | ||||||
11 | of the 98th General Assembly: employer contributions, employee | ||||||
12 | contributions, investment returns, payments of benefits, and | ||||||
13 | that employer's proportionate share of the System's | ||||||
14 | administrative expenses. | ||||||
15 | In the event that the Board determines that there is a | ||||||
16 | deficiency or surplus in the account of an employer, the Board | ||||||
17 | shall determine the employer's contribution rate as required by | ||||||
18 | item (ii) of paragraph (1) of subsection (h) so as to address | ||||||
19 | that deficiency or surplus over a reasonable period of time as | ||||||
20 | determined by the Board, which shall be no more than 10 years. | ||||||
21 | (i) Refunds. Refunds of employee contributions to the | ||||||
22 | defined-benefit component of the Tier 3 retirement plan and | ||||||
23 | vested employer contributions to the defined-benefit component | ||||||
24 | of the Tier 3 retirement plan shall be calculated in accordance | ||||||
25 | with Section 15-154.
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
2 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
3 | (a) The Board shall certify to the Governor on or before | ||||||
4 | November 15 of each
year through until November 15, 2011 the | ||||||
5 | appropriation required from State funds for the purposes of | ||||||
6 | this
System for the following fiscal year. The certification | ||||||
7 | under this subsection (a) shall include a copy
of the actuarial | ||||||
8 | recommendations upon which it is based and shall specifically | ||||||
9 | identify the System's projected State normal cost for that | ||||||
10 | fiscal year and the projected State cost for the self-managed | ||||||
11 | plan for that fiscal year .
| ||||||
12 | On or before May 1, 2004, the Board shall recalculate and | ||||||
13 | recertify to
the Governor the amount of the required State | ||||||
14 | contribution to the System for
State fiscal year 2005, taking | ||||||
15 | into account the amounts appropriated to and
received by the | ||||||
16 | System under subsection (d) of Section 7.2 of the General
| ||||||
17 | Obligation Bond Act.
| ||||||
18 | On or before July 1, 2005, 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 2006, taking | ||||||
21 | into account the changes in required State contributions made | ||||||
22 | by this amendatory Act of the 94th General Assembly.
| ||||||
23 | On or before April 1, 2011, the Board shall recalculate and | ||||||
24 | recertify to the Governor the amount of the required State | ||||||
25 | contribution to the System for State fiscal year 2011, applying | ||||||
26 | the changes made by Public Act 96-889 to the System's assets |
| |||||||
| |||||||
1 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
2 | was approved on that date. | ||||||
3 | (a-5) On or before November 1 of each year, beginning | ||||||
4 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
5 | the Governor, and the General Assembly a proposed certification | ||||||
6 | of the amount of the required State contribution to the System | ||||||
7 | for the next fiscal year, along with all of the actuarial | ||||||
8 | assumptions, calculations, and data upon which that proposed | ||||||
9 | certification is based. On or before January 1 of each year, | ||||||
10 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
11 | preliminary report concerning the proposed certification and | ||||||
12 | identifying, if necessary, recommended changes in actuarial | ||||||
13 | assumptions that the Board must consider before finalizing its | ||||||
14 | certification of the required State contributions. | ||||||
15 | On or before January 15, 2013 and each January 15 | ||||||
16 | thereafter, the Board shall certify to the Governor and the | ||||||
17 | General Assembly the amount of the required State contribution | ||||||
18 | for the next fiscal year. The certification shall include a | ||||||
19 | copy of the actuarial
recommendations upon which it is based | ||||||
20 | and shall specifically identify the System's projected State | ||||||
21 | normal cost for that fiscal year and the projected State cost | ||||||
22 | for the self-managed plan for that fiscal year. The Board's | ||||||
23 | certification must note, in a written response to the State | ||||||
24 | Actuary, any deviations from the State Actuary's recommended | ||||||
25 | changes, the reason or reasons for not following the State | ||||||
26 | Actuary's recommended changes, and the fiscal impact of not |
| |||||||
| |||||||
1 | following the State Actuary's recommended changes on the | ||||||
2 | required State contribution. | ||||||
3 | (b) The Board shall certify to the State Comptroller or | ||||||
4 | employer, as the
case may be, from time to time, by its | ||||||
5 | president and secretary, with its seal
attached, the amounts | ||||||
6 | payable to the System from the various funds.
| ||||||
7 | (c) 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 (b) 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.
| ||||||
21 | If in any month the amount remaining unexpended from all | ||||||
22 | other
appropriations to the System for the applicable fiscal | ||||||
23 | year (including the
appropriations to the System under Section | ||||||
24 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
25 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
26 | amount lawfully vouchered under this Section, the difference |
| |||||||
| |||||||
1 | shall be paid
from the General Revenue Fund under the | ||||||
2 | continuing appropriation authority
provided in Section 1.1 of | ||||||
3 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
4 | (d) So long as the payments received are the full amount | ||||||
5 | lawfully
vouchered under this Section, payments received by the | ||||||
6 | System under this
Section shall be applied first toward the | ||||||
7 | employer contribution to the
self-managed plan established | ||||||
8 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
9 | the employer's portion of the normal costs of the System,
as | ||||||
10 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
11 | be applied
toward the unfunded actuarial liabilities of the | ||||||
12 | System.
| ||||||
13 | (e) In the event that the System does not receive, as a | ||||||
14 | result of
legislative enactment or otherwise, payments | ||||||
15 | sufficient to
fully fund the employer contribution to the | ||||||
16 | self-managed plan
established under Section 15-158.2 and to | ||||||
17 | fully fund that portion of the
employer's portion of the normal | ||||||
18 | costs of the System, as calculated in
accordance with Section | ||||||
19 | 15-155(a-1), then any payments received shall be
applied | ||||||
20 | proportionately to the optional retirement program established | ||||||
21 | under
Section 15-158.2 and to the employer's portion of the | ||||||
22 | normal costs of the
System, as calculated in accordance with | ||||||
23 | Section 15-155(a-1).
| ||||||
24 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
25 | 97-694, eff. 6-18-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-198)
| ||||||
2 | Sec. 15-198. Application and expiration of new benefit | ||||||
3 | increases. | ||||||
4 | (a) As used in this Section, "new benefit increase" means | ||||||
5 | an increase in the amount of any benefit provided under this | ||||||
6 | Article, or an expansion of the conditions of eligibility for | ||||||
7 | any benefit under this Article or Article 1 , that results from | ||||||
8 | an amendment to this Code that takes effect after the effective | ||||||
9 | date of this amendatory Act of the 94th General Assembly. "New | ||||||
10 | benefit increase", however, does not include any benefit | ||||||
11 | increase resulting from the changes made to this Article or | ||||||
12 | Article 1 by this amendatory Act of the 98th General Assembly. | ||||||
13 | (b) Notwithstanding any other provision of this Code or any | ||||||
14 | subsequent amendment to this Code, every new benefit increase | ||||||
15 | is subject to this Section and shall be deemed to be granted | ||||||
16 | only in conformance with and contingent upon compliance with | ||||||
17 | the provisions of this Section.
| ||||||
18 | (c) The Public Act enacting a new benefit increase must | ||||||
19 | identify and provide for payment to the System of additional | ||||||
20 | funding at least sufficient to fund the resulting annual | ||||||
21 | increase in cost to the System as it accrues. | ||||||
22 | Every new benefit increase is contingent upon the General | ||||||
23 | Assembly providing the additional funding required under this | ||||||
24 | subsection. The Commission on Government Forecasting and | ||||||
25 | Accountability shall analyze whether adequate additional | ||||||
26 | funding has been provided for the new benefit increase and |
| |||||||
| |||||||
1 | shall report its analysis to the Public Pension Division of the | ||||||
2 | Department of Financial and Professional Regulation. A new | ||||||
3 | benefit increase created by a Public Act that does not include | ||||||
4 | the additional funding required under this subsection is null | ||||||
5 | and void. If the Public Pension Division determines that the | ||||||
6 | additional funding provided for a new benefit increase under | ||||||
7 | this subsection is or has become inadequate, it may so certify | ||||||
8 | to the Governor and the State Comptroller and, in the absence | ||||||
9 | of corrective action by the General Assembly, the new benefit | ||||||
10 | increase shall expire at the end of the fiscal year in which | ||||||
11 | the certification is made.
| ||||||
12 | (d) Every new benefit increase shall expire 5 years after | ||||||
13 | its effective date or on such earlier date as may be specified | ||||||
14 | in the language enacting the new benefit increase or provided | ||||||
15 | under subsection (c). This does not prevent the General | ||||||
16 | Assembly from extending or re-creating a new benefit increase | ||||||
17 | by law. | ||||||
18 | (e) Except as otherwise provided in the language creating | ||||||
19 | the new benefit increase, a new benefit increase that expires | ||||||
20 | under this Section continues to apply to persons who applied | ||||||
21 | and qualified for the affected benefit while the new benefit | ||||||
22 | increase was in effect and to the affected beneficiaries and | ||||||
23 | alternate payees of such persons, but does not apply to any | ||||||
24 | other person, including without limitation a person who | ||||||
25 | continues in service after the expiration date and did not | ||||||
26 | apply and qualify for the affected benefit while the new |
| |||||||
| |||||||
1 | benefit increase was in effect.
| ||||||
2 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
3 | (40 ILCS 5/16-106.4 new) | ||||||
4 | Sec. 16-106.4. Tier I member. "Tier I member": A member | ||||||
5 | under this Article who first became a member or participant | ||||||
6 | before January 1, 2011 under any reciprocal retirement system | ||||||
7 | or pension fund established under this Code other than a | ||||||
8 | retirement system or pension fund established under Article 2, | ||||||
9 | 3, 4, 5, 6, or 18 of this Code. | ||||||
10 | (40 ILCS 5/16-106.5 new) | ||||||
11 | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former | ||||||
12 | Tier I member who is receiving a retirement annuity. | ||||||
13 | (40 ILCS 5/16-106.6 new) | ||||||
14 | Sec. 16-106.6. Tier 3 employee. "Tier 3 employee": A | ||||||
15 | teacher who first becomes a member on or after January 1, 2014 | ||||||
16 | and is subject to Section 16-152.8 of this Article; and a | ||||||
17 | teacher who first became a member on or after January 1, 2011 | ||||||
18 | but before January 1, 2014 and has elected to transfer his or | ||||||
19 | her pension credits to the Tier 3 retirement plan.
| ||||||
20 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
| ||||||
21 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
22 | received by a teacher during any
school year and recognized by |
| |||||||
| |||||||
1 | the system in accordance with
rules of the board. For purposes | ||||||
2 | of this Section, "school year" includes
the regular school term | ||||||
3 | plus any additional period for which a teacher is
compensated | ||||||
4 | and such compensation is recognized by the rules of the board.
| ||||||
5 | Notwithstanding any other provision of this Code, the | ||||||
6 | salary of a Tier I member or Tier 3 employee for the purposes | ||||||
7 | of this Code shall not exceed, for periods of service on or | ||||||
8 | after the effective date of this amendatory Act of the 98th | ||||||
9 | General Assembly, the greater of (i) the annual contribution | ||||||
10 | and benefit base established for the applicable year by the | ||||||
11 | Commissioner of Social Security under the federal Social | ||||||
12 | Security Act or (ii) the annual salary of the member during the | ||||||
13 | 365 days immediately preceding that effective date; except that | ||||||
14 | this limitation does not apply to a member's salary that is | ||||||
15 | determined under an employment contract or collective | ||||||
16 | bargaining agreement that is in effect on the effective date of | ||||||
17 | this amendatory Act of the 98th General Assembly and has not | ||||||
18 | been amended or renewed after that date. | ||||||
19 | (Source: P.A. 84-1028.)
| ||||||
20 | (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
| ||||||
21 | Sec. 16-132. Retirement annuity eligibility. | ||||||
22 | (a) A member who has at least 20 years of creditable | ||||||
23 | service is entitled to a
retirement annuity upon or after | ||||||
24 | attainment of age 55.
A member who has at least 10 but less | ||||||
25 | than 20 years of creditable service is
entitled to a retirement |
| |||||||
| |||||||
1 | annuity upon or after attainment of age 60.
A member who has at | ||||||
2 | least 5 but less than 10 years of creditable service is
| ||||||
3 | entitled to a retirement annuity upon or after attainment of | ||||||
4 | age 62.
A member who (i) has earned during the period | ||||||
5 | immediately preceding the last
day of service at least one year | ||||||
6 | of contributing creditable service as an
employee of a | ||||||
7 | department as defined in Section 14-103.04, (ii) has earned at
| ||||||
8 | least 5 years of contributing creditable service as an employee | ||||||
9 | of a department
as defined in Section 14-103.04, and (iii) | ||||||
10 | retires on or after January 1, 2001
is entitled to a retirement | ||||||
11 | annuity upon or after attainment of an age which,
when added to | ||||||
12 | the number of years of his or her total creditable service,
| ||||||
13 | equals at least 85. Portions of years shall be counted as | ||||||
14 | decimal equivalents.
| ||||||
15 | A member who is eligible to receive a retirement annuity of | ||||||
16 | at least 74.6% of
final average salary and will attain age 55 | ||||||
17 | on or before December 31 during the
year which commences on | ||||||
18 | July 1 shall be deemed to attain age 55 on the
preceding June | ||||||
19 | 1.
| ||||||
20 | (b) Notwithstanding subsection (a) of this Section, for a | ||||||
21 | Tier I member who begins receiving a retirement annuity under | ||||||
22 | this Article after July 1, 2013: | ||||||
23 | (1) If the Tier I member is at least 45 years old on | ||||||
24 | the effective date of this amendatory Act of the 98th | ||||||
25 | General Assembly, then the references to age 55, 60, and 62 | ||||||
26 | in subsection (a) of this Section remain unchanged and the |
| |||||||
| |||||||
1 | reference to 85 in subsection (a) of this Section remains | ||||||
2 | unchanged. | ||||||
3 | (2) If the Tier I member is at least 40 but less than | ||||||
4 | 45 years old on the effective date of this amendatory Act | ||||||
5 | of the 98th General Assembly, then the references to age | ||||||
6 | 55, 60, and 62 in subsection (a) of this Section are | ||||||
7 | increased by one year and the reference to 85 in subsection | ||||||
8 | (a) is increased to 87. | ||||||
9 | (3) If the Tier I member is at least 35 but less than | ||||||
10 | 40 years old on the effective date of this amendatory Act | ||||||
11 | of the 98th General Assembly, then the references to age | ||||||
12 | 55, 60, and 62 in subsection (a) of this Section are | ||||||
13 | increased by 3 years and the reference to 85 in subsection | ||||||
14 | (a) is increased to 91. | ||||||
15 | (4) If the Tier I member is less than 35 years old on | ||||||
16 | the effective date of this amendatory Act of the 98th | ||||||
17 | General Assembly, then the references to age 55, 60, and 62 | ||||||
18 | in subsection (a) of this Section are increased by 5 years | ||||||
19 | and the reference to 85 in subsection (a) is increased to | ||||||
20 | 95. | ||||||
21 | Notwithstanding Section 1-103.1, this subsection (b) | ||||||
22 | applies without regard to whether or not the Tier I member is | ||||||
23 | in active service under this Article on or after the effective | ||||||
24 | date of this amendatory Act of the 98th General Assembly. | ||||||
25 | (c) A member meeting the above eligibility conditions is | ||||||
26 | entitled to a retirement
annuity upon written application to |
| |||||||
| |||||||
1 | the board setting forth the date the member
wishes the | ||||||
2 | retirement annuity to commence. However, the effective date of | ||||||
3 | the
retirement annuity shall be no earlier than the day | ||||||
4 | following the last day of
creditable service, regardless of the | ||||||
5 | date of official termination of
employment.
| ||||||
6 | (d) To be eligible for a retirement annuity, a member shall | ||||||
7 | not be employed
as a teacher in the schools included under this | ||||||
8 | System or under Article 17,
except (i) as provided in Section | ||||||
9 | 16-118 or 16-150.1, (ii) if
the member is disabled (in which | ||||||
10 | event, eligibility for salary must cease),
or (iii) if the | ||||||
11 | System is required by federal law to commence
payment due to | ||||||
12 | the member's age; the changes to this sentence made by Public | ||||||
13 | Act 93-320 this
amendatory Act of the 93rd General Assembly | ||||||
14 | apply without
regard to whether the member terminated | ||||||
15 | employment before or after its
effective date.
| ||||||
16 | (Source: P.A. 93-320, eff. 7-23-03.)
| ||||||
17 | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| ||||||
18 | Sec. 16-133. Retirement annuity; amount.
| ||||||
19 | (a) The amount of the retirement annuity shall be (i) in | ||||||
20 | the case of a person who first became a teacher under this | ||||||
21 | Article before July 1, 2005, the larger of the
amounts | ||||||
22 | determined under paragraphs (A) and (B) below, or (ii) in the | ||||||
23 | case of a person who first becomes a teacher under this Article | ||||||
24 | on or after July 1, 2005, the amount determined under the | ||||||
25 | applicable provisions of paragraph (B):
|
| |||||||
| |||||||
1 | (A) An amount consisting of the sum of the following:
| ||||||
2 | (1) An amount that can be provided on an | ||||||
3 | actuarially equivalent basis
by the member's | ||||||
4 | accumulated contributions at the time of retirement; | ||||||
5 | and
| ||||||
6 | (2) The sum of (i) the amount that can be provided | ||||||
7 | on an actuarially
equivalent basis by the member's | ||||||
8 | accumulated contributions representing
service prior | ||||||
9 | to July 1, 1947, and (ii) the amount that can be | ||||||
10 | provided on
an actuarially equivalent basis by the | ||||||
11 | amount obtained by multiplying 1.4
times the member's | ||||||
12 | accumulated contributions covering service subsequent | ||||||
13 | to
June 30, 1947; and
| ||||||
14 | (3) If there is prior service, 2 times the amount | ||||||
15 | that would have been
determined under subparagraph (2) | ||||||
16 | of paragraph (A) above on account of
contributions | ||||||
17 | which would have been made during the period of prior | ||||||
18 | service
creditable to the member had the System been in | ||||||
19 | operation and had the
member made contributions at the | ||||||
20 | contribution rate in effect prior to
July 1, 1947.
| ||||||
21 | For the purpose of calculating the sum provided under | ||||||
22 | this paragraph (A), the contribution required under | ||||||
23 | subsection (a-5) of Section 16-152 shall not be considered | ||||||
24 | when determining the amount of the member's accumulated | ||||||
25 | contributions under subparagraph (1) or (2). | ||||||
26 | This paragraph (A) does not apply to a person who first |
| |||||||
| |||||||
1 | becomes a teacher under this Article on or after July 1, | ||||||
2 | 2005.
| ||||||
3 | (B) An amount consisting of the greater of the | ||||||
4 | following:
| ||||||
5 | (1) For creditable service earned before July 1, | ||||||
6 | 1998 that has not
been augmented under Section | ||||||
7 | 16-129.1: 1.67% of final average salary for
each of the | ||||||
8 | first 10 years of creditable service, 1.90% of final | ||||||
9 | average salary
for each year in excess of 10 but not | ||||||
10 | exceeding 20, 2.10% of final average
salary for each | ||||||
11 | year in excess of 20 but not exceeding 30, and 2.30% of | ||||||
12 | final
average salary for each year in excess of 30; and
| ||||||
13 | For creditable service earned on or after July 1, | ||||||
14 | 1998 by a member who
has at least 24 years of | ||||||
15 | creditable service on July 1, 1998 and who
does not | ||||||
16 | elect to augment service under Section 16-129.1: 2.2% | ||||||
17 | of final
average salary for each year of creditable | ||||||
18 | service earned on or after July 1,
1998 but before the | ||||||
19 | member reaches a total of 30 years of creditable | ||||||
20 | service
and 2.3% of final average salary for each year | ||||||
21 | of creditable service earned
on or after July 1, 1998 | ||||||
22 | and after the member reaches a total of 30 years of
| ||||||
23 | creditable service; and
| ||||||
24 | For all other creditable service: 2.2% of final | ||||||
25 | average salary
for each year of creditable service; or
| ||||||
26 | (2) 1.5% of final average salary for each year of
|
| |||||||
| |||||||
1 | creditable service plus the sum $7.50 for each of the | ||||||
2 | first 20 years of
creditable service.
| ||||||
3 | The amount of the retirement annuity determined under this | ||||||
4 | paragraph (B)
shall be reduced by 1/2 of 1% for each month | ||||||
5 | that the member is less than
age 60 at the time the | ||||||
6 | retirement annuity begins. However, this reduction
shall | ||||||
7 | not apply (i) if the member has at least 35 years of | ||||||
8 | creditable service,
or (ii) if the member retires on | ||||||
9 | account of disability under Section 16-149.2
of this | ||||||
10 | Article with at least 20 years of creditable service, or | ||||||
11 | (iii) if
the member (1) has earned during the period | ||||||
12 | immediately preceding the last
day of service at least one | ||||||
13 | year of contributing creditable service as an
employee of a | ||||||
14 | department as defined in Section 14-103.04, (2) has earned | ||||||
15 | at
least 5 years of contributing creditable service as an | ||||||
16 | employee of a department
as defined in Section 14-103.04, | ||||||
17 | (3) retires on or after January 1, 2001, and
(4) retires | ||||||
18 | having attained an age which, when added to the number of | ||||||
19 | years of
his or her total creditable service, equals at | ||||||
20 | least 85. Portions of years
shall be counted as decimal | ||||||
21 | equivalents. For participants to whom subsection (b) of | ||||||
22 | Section 16-132 applies, the reference to age 60 in this | ||||||
23 | paragraph and the reference to 85 in this paragraph are | ||||||
24 | increased as provided in subsection (b) of Section 16-132.
| ||||||
25 | (b) For purposes of this Section, final average salary | ||||||
26 | shall be the
average salary for the highest 4 consecutive years |
| |||||||
| |||||||
1 | within the last 10 years
of creditable service as determined | ||||||
2 | under rules of the board. The minimum
final average salary | ||||||
3 | shall be considered to be $2,400 per year.
| ||||||
4 | In the determination of final average salary for members | ||||||
5 | other than
elected officials and their appointees when such | ||||||
6 | appointees are allowed by
statute, that part of a member's | ||||||
7 | salary for any year beginning after June
30, 1979 which exceeds | ||||||
8 | the member's annual full-time salary rate with the
same | ||||||
9 | employer for the preceding year by more than 20% shall be | ||||||
10 | excluded.
The exclusion shall not apply in any year in which | ||||||
11 | the member's creditable
earnings are less than 50% of the | ||||||
12 | preceding year's mean salary for downstate
teachers as | ||||||
13 | determined by the survey of school district salaries provided | ||||||
14 | in
Section 2-3.103 of the School Code.
| ||||||
15 | (c) In determining the amount of the retirement annuity | ||||||
16 | under paragraph
(B) of this Section, a fractional year shall be | ||||||
17 | granted proportional credit.
| ||||||
18 | (d) The retirement annuity determined under paragraph (B) | ||||||
19 | of this Section
shall be available only to members who render | ||||||
20 | teaching service after July
1, 1947 for which member | ||||||
21 | contributions are required, and to annuitants who
re-enter | ||||||
22 | under the provisions of Section 16-150.
| ||||||
23 | (e) The maximum retirement annuity provided under | ||||||
24 | paragraph (B) of this
Section shall be 75% of final average | ||||||
25 | salary.
| ||||||
26 | (f) A member retiring after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act
of 1998 shall receive a pension equal to 75% of | ||||||
2 | final average salary if the
member is qualified to receive a | ||||||
3 | retirement annuity equal to at least 74.6%
of final average | ||||||
4 | salary under this Article or as proportional annuities under
| ||||||
5 | Article 20 of this Code.
| ||||||
6 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
7 | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| ||||||
8 | Sec. 16-133.1. Automatic annual increase in annuity.
| ||||||
9 | (a) Each member with creditable service and retiring on or | ||||||
10 | after August 26,
1969 is entitled to the automatic annual | ||||||
11 | increases in annuity provided under
this Section while | ||||||
12 | receiving a retirement annuity or disability retirement
| ||||||
13 | annuity from the system.
| ||||||
14 | An annuitant shall first be entitled to an initial increase | ||||||
15 | under this
Section on the January 1 next following the first | ||||||
16 | anniversary of retirement,
or January 1 of the year next | ||||||
17 | following attainment of age 61, whichever is
later. At such | ||||||
18 | time, the system shall pay an initial increase determined as
| ||||||
19 | follows or as provided in subsections (a-1) and (a-2) :
| ||||||
20 | (1) 1.5% of the originally granted retirement annuity | ||||||
21 | or disability
retirement annuity multiplied by the number | ||||||
22 | of years elapsed, if any, from the date of retirement
until | ||||||
23 | January 1, 1972, plus
| ||||||
24 | (2) 2% of the originally granted annuity multiplied by | ||||||
25 | the number of
years elapsed, if any, from the date of |
| |||||||
| |||||||
1 | retirement or January
1, 1972, whichever is later, until | ||||||
2 | January 1, 1978, plus
| ||||||
3 | (3) 3% of the originally granted annuity multiplied by | ||||||
4 | the number
of years elapsed from the date of retirement or | ||||||
5 | January 1,
1978, whichever is later, until the effective | ||||||
6 | date of the initial
increase.
| ||||||
7 | However, the initial annual increase calculated under this | ||||||
8 | Section for the
recipient of a disability retirement annuity | ||||||
9 | granted under Section 16-149.2
shall be reduced by an amount | ||||||
10 | equal to the total of all increases in that
annuity received | ||||||
11 | under Section 16-149.5 (but not exceeding 100% of the amount
of | ||||||
12 | the initial increase otherwise provided under this Section).
| ||||||
13 | Following the initial increase, automatic annual increases | ||||||
14 | in annuity shall
be payable on each January 1 thereafter during | ||||||
15 | the lifetime of the annuitant,
determined as a percentage of | ||||||
16 | the originally granted retirement annuity
or disability | ||||||
17 | retirement annuity for increases granted prior to January
1, | ||||||
18 | 1990, and calculated as a percentage of the total amount of | ||||||
19 | annuity,
including previous increases under this Section, for | ||||||
20 | increases granted on
or after January 1, 1990, as follows: 1.5% | ||||||
21 | for periods prior to January 1,
1972, 2% for periods after | ||||||
22 | December 31, 1971 and prior to January 1, 1978,
and 3% for | ||||||
23 | periods after December 31, 1977 , or as provided in subsections | ||||||
24 | (a-1) and (a-2) .
| ||||||
25 | (a-1) Notwithstanding any other provision of this Article, | ||||||
26 | for a Tier I retiree, the amount of each automatic annual |
| |||||||
| |||||||
1 | increase in retirement annuity occurring on or after the | ||||||
2 | effective date of this amendatory Act of the 98th General | ||||||
3 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
4 | payable at the time of the increase, including previous | ||||||
5 | increases granted. | ||||||
6 | (a-2) Notwithstanding any other provision of this Article, | ||||||
7 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
8 | first be subject to annual increases on the January 1 occurring | ||||||
9 | on or next after the attainment of age 67 or the January 1 | ||||||
10 | occurring on or next after the fifth anniversary of the annuity | ||||||
11 | start date, whichever occurs earlier. If on the effective date | ||||||
12 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
13 | retiree has already received an annual increase under this | ||||||
14 | Section but does not yet meet the new eligibility requirements | ||||||
15 | of this subsection, the annual increases already received shall | ||||||
16 | continue in force, but no additional annual increase shall be | ||||||
17 | granted until the Tier I retiree meets the new eligibility | ||||||
18 | requirements. | ||||||
19 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
20 | and (a-2) apply without regard to whether or not the Tier I | ||||||
21 | retiree is in active service under this Article on or after the | ||||||
22 | effective date of this amendatory Act of the 98th General | ||||||
23 | Assembly. | ||||||
24 | (b) The automatic annual increases in annuity provided | ||||||
25 | under this Section
shall not be applicable unless a member has | ||||||
26 | made contributions toward such
increases for a period |
| |||||||
| |||||||
1 | equivalent to one full year of creditable service.
If a member | ||||||
2 | contributes for service performed after August 26, 1969 but
the | ||||||
3 | member becomes an annuitant before such contributions amount to | ||||||
4 | one
full year's contributions based on the salary at the date | ||||||
5 | of retirement,
he or she may pay the necessary balance of the | ||||||
6 | contributions to the system
and be eligible for the automatic | ||||||
7 | annual increases in annuity provided under
this Section.
| ||||||
8 | (c) Each member shall make contributions toward the cost of | ||||||
9 | the automatic
annual increases in annuity as provided under | ||||||
10 | Section 16-152.
| ||||||
11 | (d) An annuitant receiving a retirement annuity or | ||||||
12 | disability retirement
annuity on July 1, 1969, who subsequently | ||||||
13 | re-enters service as a teacher
is eligible for the automatic | ||||||
14 | annual increases in annuity provided under
this Section if he | ||||||
15 | or she renders at least one year of creditable service
| ||||||
16 | following the latest re-entry.
| ||||||
17 | (e) In addition to the automatic annual increases in | ||||||
18 | annuity provided
under this Section, an annuitant who meets the | ||||||
19 | service requirements of this
Section and whose retirement | ||||||
20 | annuity or disability retirement annuity began
on or before | ||||||
21 | January 1, 1971 shall receive, on January 1, 1981, an increase
| ||||||
22 | in the annuity then being paid of one dollar per month for each | ||||||
23 | year of
creditable service. On January 1, 1982, an annuitant | ||||||
24 | whose retirement
annuity or disability retirement annuity | ||||||
25 | began on or before January 1, 1977
shall receive an increase in | ||||||
26 | the annuity then being paid of one dollar per
month for each |
| |||||||
| |||||||
1 | year of creditable service.
| ||||||
2 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
3 | began
on or before January 1, 1977, shall receive an increase | ||||||
4 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
5 | creditable service times the
number of years that have elapsed | ||||||
6 | since the annuity began.
| ||||||
7 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
8 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
9 | Sec. 16-152. Contributions by members.
| ||||||
10 | (a) Each member shall make contributions for membership | ||||||
11 | service to this
System as follows:
| ||||||
12 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
13 | salary towards the
cost of the retirement annuity. Such | ||||||
14 | contributions shall be deemed "normal
contributions".
| ||||||
15 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
16 | of salary toward
the cost of the automatic annual increase | ||||||
17 | in retirement annuity provided
under Section 16-133.1.
| ||||||
18 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
19 | salary towards the
cost of survivor benefits. Such | ||||||
20 | contributions shall not be credited to
the individual | ||||||
21 | account of the member and shall not be subject to refund
| ||||||
22 | except as provided under Section 16-143.2.
| ||||||
23 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
24 | salary toward the cost of the early retirement without | ||||||
25 | discount option provided under Section 16-133.2. This |
| |||||||
| |||||||
1 | contribution shall cease upon termination of the early | ||||||
2 | retirement without discount option as provided in Section | ||||||
3 | 16-176.
| ||||||
4 | (a-5) In addition to the contributions otherwise required | ||||||
5 | under this Article, each Tier I member shall also make the | ||||||
6 | following contributions toward the cost of the retirement | ||||||
7 | annuity from each payment
of salary: | ||||||
8 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
9 | 1% of salary; and | ||||||
10 | (2) beginning on July 1, 2014, 2% of salary. | ||||||
11 | Except as otherwise specified, these contributions are to | ||||||
12 | be considered as normal contributions for purposes
of this | ||||||
13 | Article. | ||||||
14 | (b) The minimum required contribution for any year of | ||||||
15 | full-time
teaching service shall be $192.
| ||||||
16 | (c) Contributions shall not be required of any annuitant | ||||||
17 | receiving
a retirement annuity who is given employment as | ||||||
18 | permitted under Section 16-118 or 16-150.1.
| ||||||
19 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
20 | retires with
more than 34 years of creditable service, and | ||||||
21 | (iii) does not elect to qualify
for the augmented rate under | ||||||
22 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
23 | to receive a partial refund of contributions made under this
| ||||||
24 | Section for service occurring after the later of June 30, 1998 | ||||||
25 | or attainment
of 34 years of creditable service, in an amount | ||||||
26 | equal to 1.00% of the salary
upon which those contributions |
| |||||||
| |||||||
1 | were based.
| ||||||
2 | (e) A member's contributions toward the cost of early | ||||||
3 | retirement without discount made under item (a)(4) of this | ||||||
4 | Section shall not be refunded if the member has elected early | ||||||
5 | retirement without discount under Section 16-133.2 and has | ||||||
6 | begun to receive a retirement annuity under this Article | ||||||
7 | calculated in accordance with that election. Otherwise, a | ||||||
8 | member's contributions toward the cost of early retirement | ||||||
9 | without discount made under item (a)(4) of this Section shall | ||||||
10 | be refunded according to whichever one of the following | ||||||
11 | circumstances occurs first: | ||||||
12 | (1) The contributions shall be refunded to the member, | ||||||
13 | without interest, within 120 days after the member's | ||||||
14 | retirement annuity commences, if the member does not elect | ||||||
15 | early retirement without discount under Section 16-133.2. | ||||||
16 | (2) The contributions shall be included, without | ||||||
17 | interest, in any refund claimed by the member under Section | ||||||
18 | 16-151. | ||||||
19 | (3) The contributions shall be refunded to the member's | ||||||
20 | designated beneficiary (or if there is no beneficiary, to | ||||||
21 | the member's estate), without interest, if the member dies | ||||||
22 | without having begun to receive a retirement annuity under | ||||||
23 | this Article. | ||||||
24 | (4) The contributions shall be refunded to the member, | ||||||
25 | without interest, within 120 days after the early | ||||||
26 | retirement without discount option provided under Section |
| |||||||
| |||||||
1 | 16-133.2 is terminated under Section 16-176.
| ||||||
2 | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| ||||||
3 | (40 ILCS 5/16-152.8 new) | ||||||
4 | Sec. 16-152.8. Tier 3 retirement plan. | ||||||
5 | (a) Contents of Tier 3 retirement plan.
The Tier 3 | ||||||
6 | retirement plan consists of a defined-benefit component and a | ||||||
7 | defined-contribution component; both components apply to all | ||||||
8 | participants in the Tier 3 retirement plan. The plan also | ||||||
9 | includes provisions relating to contributions and refunds. | ||||||
10 | The defined-benefit component includes a retirement | ||||||
11 | annuity as provided under this Section, a surviving spouse | ||||||
12 | annuity as provided under this Section, and a disability | ||||||
13 | benefit as
provided in this Section. | ||||||
14 | The defined-contribution component shall be a defined | ||||||
15 | contribution plan that shall be established by the System. Each | ||||||
16 | participant shall have an individual account whose assets are | ||||||
17 | managed by the System, which shall design a target-date or | ||||||
18 | life-cycle investment allocation mechanism for this plan. This | ||||||
19 | mechanism shall invest all assets in participants' defined | ||||||
20 | contribution accounts in vehicles already in use by the | ||||||
21 | System's defined-benefit Fund, but the specific allocation | ||||||
22 | will vary with the participant's age, with more aggressive | ||||||
23 | investments for younger participants and more conservative | ||||||
24 | investments for older participants. | ||||||
25 | The balance in a participant's defined-contribution |
| |||||||
| |||||||
1 | account shall be a function exclusively of employee | ||||||
2 | contributions as described in subsection (g), employer | ||||||
3 | contributions as described in subsection (h), and actual | ||||||
4 | investment returns net of fees and administrative costs as | ||||||
5 | certified by the System. | ||||||
6 | Subsequent to retirement, a participant may access the | ||||||
7 | assets in his or her defined-contribution account by taking | ||||||
8 | lump-sum disbursements, rolling over the balance into another | ||||||
9 | qualified plan, or purchasing an annuity or other insurance | ||||||
10 | product to the extent allowable under federal law. Under no | ||||||
11 | circumstances shall the State or employer be exposed to any | ||||||
12 | investment or actuarial risk in the determination of benefit | ||||||
13 | levels. | ||||||
14 | The defined-contribution component of the Tier 3 | ||||||
15 | retirement plan does not include any of the following with | ||||||
16 | respect to service performed while participating in the Tier 3 | ||||||
17 | retirement plan: retirement annuities, reversionary annuities, | ||||||
18 | death benefits, survivors' benefits, or disability benefits
| ||||||
19 | payable directly from the System as provided in Sections 16-132 | ||||||
20 | through 16-149.6 (except Section 16-149.2) or Section 1-160; or | ||||||
21 | refunds determined under Section 16-151. | ||||||
22 | Participation in the Tier 3 retirement plan under this | ||||||
23 | Section constitutes
membership in the Teachers' Retirement | ||||||
24 | System of the State of Illinois. Participants in the Tier 3 | ||||||
25 | retirement plan remain subject to the provisions of this | ||||||
26 | Article that apply to participants generally and that do not |
| |||||||
| |||||||
1 | depend upon the benefit package or plan. A participant in the | ||||||
2 | Tier 3 retirement plan is entitled to the applicable benefits | ||||||
3 | of
Article 20 of this Code. | ||||||
4 | The Tier 3 retirement plan is subject to the provisions of | ||||||
5 | Article 1 of this Code that apply to retirement systems | ||||||
6 | generally and must be qualified under the Internal Revenue Code | ||||||
7 | of 1986. | ||||||
8 | (b) Definitions. As used in this Section: | ||||||
9 | "Consumer Price Index-U" means
the Consumer Price Index | ||||||
10 | published by the Bureau of Labor Statistics of the United | ||||||
11 | States
Department of Labor that measures the average change in | ||||||
12 | prices of goods and
services purchased by all urban consumers, | ||||||
13 | United States city average, all
items, 1982-84 = 100. | ||||||
14 | "Final average salary" means: | ||||||
15 | (1) for a teacher who is paid on an hourly basis or who | ||||||
16 | receives an annual salary in installments during 12 months | ||||||
17 | of each school year, the average annual salary obtained by | ||||||
18 | dividing by 8 the total salary of the teacher during the 96 | ||||||
19 | consecutive months in which the total salary was the | ||||||
20 | highest within the last 120 months prior to termination; | ||||||
21 | (2) for any other teacher, the average annual salary | ||||||
22 | during the 8 consecutive school years within the 10 years | ||||||
23 | prior to termination in which the teacher's salary was the | ||||||
24 | highest; and | ||||||
25 | (3) for a teacher with less than 96 consecutive months | ||||||
26 | or 8 consecutive school years of service, whichever is |
| |||||||
| |||||||
1 | necessary, the average salary during his or her entire | ||||||
2 | period of service. | ||||||
3 | (c) Participation. A teacher who first becomes a member of | ||||||
4 | the System on or after January 1, 2014 shall, with respect to | ||||||
5 | service under this Article, participate in the Tier 3 | ||||||
6 | retirement plan only and not, except as specified in this | ||||||
7 | Section, any other benefit package provided under this Article | ||||||
8 | or Section 1-160. | ||||||
9 | A teacher who first became a member of this System on or | ||||||
10 | after January 1, 2011 and before January 1, 2014 may choose to | ||||||
11 | transfer his or her pension credits into the Tier 3 retirement | ||||||
12 | plan by making, on or before June 1, 2014, an irrevocable | ||||||
13 | election to transfer his or her pension credits into the Tier 3 | ||||||
14 | retirement plan. A teacher so electing will be credited with | ||||||
15 | employee contributions and employer normal cost contributions | ||||||
16 | plus interest at the actual rate of return. The System shall | ||||||
17 | calculate the total cost of transferring an equal amount of | ||||||
18 | service credit into the Tier 3 defined benefit plan and use the | ||||||
19 | credited contributions to cover the cost of the transfer. Any | ||||||
20 | unused contributions shall be deposited into the member's | ||||||
21 | defined contribution account. | ||||||
22 | (d) Retirement annuity. | ||||||
23 | (1) A participant in the Tier 3 retirement plan is | ||||||
24 | entitled to a retirement annuity under this Section upon | ||||||
25 | written application if he or she has attained age 67, has | ||||||
26 | at least 5 years of service credit, and has terminated |
| |||||||
| |||||||
1 | employment under this Article. | ||||||
2 | A participant in the Tier 3 retirement plan is entitled | ||||||
3 | to a reduced retirement annuity upon written application if | ||||||
4 | he or she has attained age 62 but is below age 67 at the | ||||||
5 | time of retirement, has at least 10 years of service | ||||||
6 | credit, and has terminated employment under this Article. | ||||||
7 | (2) The retirement annuity shall be 1.1% of the final | ||||||
8 | average salary for each year of creditable service. If the | ||||||
9 | participant has not attained age 67 at the time of | ||||||
10 | retirement, the retirement annuity shall be reduced by | ||||||
11 | one-half of 1% for each full month by which the age at | ||||||
12 | retirement is less than age 67. | ||||||
13 | (3) An eligible person may elect to have his or her | ||||||
14 | retirement annuity under this Section determined in | ||||||
15 | accordance with Article 20 of this Code. | ||||||
16 | (4) A retirement annuity under this Section shall be | ||||||
17 | subject to annual increases on each January 1 occurring on | ||||||
18 | or after the attainment of age 67 or the first anniversary | ||||||
19 | of the annuity start date, whichever is later. Each annual | ||||||
20 | increase shall be a percentage of the originally granted | ||||||
21 | retirement annuity equal to 3% or one-half of the annual | ||||||
22 | unadjusted percentage increase in the Consumer Price | ||||||
23 | Index-U for the 12 months ending with the preceding | ||||||
24 | September, whichever is less. If that annual unadjusted | ||||||
25 | percentage change is zero or there is a decrease, then the | ||||||
26 | annuity shall not be increased. |
| |||||||
| |||||||
1 | (e) Survivor's annuity. | ||||||
2 | (1) Eligibility for and the duration of a survivor's | ||||||
3 | annuity under this Section shall be determined in the same | ||||||
4 | manner as eligibility for survivors' benefits under this | ||||||
5 | Article. | ||||||
6 | (2) The initial survivor's annuity of an eligible | ||||||
7 | survivor of a retired participant in the Tier 3 retirement | ||||||
8 | plan shall be in the amount of 66 2/3% of the retired | ||||||
9 | participant's retirement annuity at the date of death. | ||||||
10 | The initial survivor's annuity of an eligible survivor | ||||||
11 | of a participant in the Tier 3 retirement plan who was not | ||||||
12 | retired shall be 66 2/3% of the retirement annuity that | ||||||
13 | would have been payable under this Section if the deceased | ||||||
14 | participant had retired on the date of death, disregarding | ||||||
15 | the minimum age required for retirement. | ||||||
16 | (3) A survivor's annuity shall be increased on each | ||||||
17 | January 1 occurring on or after the first anniversary
of | ||||||
18 | the commencement of the annuity. Each annual increase shall | ||||||
19 | be a percentage of the originally granted survivor's | ||||||
20 | annuity equal to 3% or one-half of the annual unadjusted | ||||||
21 | percentage increase in the Consumer Price Index-U for the | ||||||
22 | 12 months ending with the preceding September, whichever is | ||||||
23 | less. If that annual unadjusted percentage change is zero | ||||||
24 | or there is a decrease, then the annuity shall not be | ||||||
25 | increased. | ||||||
26 | (f) Disability benefit. |
| |||||||
| |||||||
1 | (1) A participant in the Tier 3 retirement plan is | ||||||
2 | eligible for the disability benefit provided under this | ||||||
3 | subsection subject to the conditions of eligibility | ||||||
4 | specified in Section 16-149. | ||||||
5 | (2) The disability benefit provided under this | ||||||
6 | subsection shall begin to accrue as specified in Section | ||||||
7 | 16-149. | ||||||
8 | (3) The disability benefit provided under this | ||||||
9 | subsection shall be discontinued in accordance with | ||||||
10 | Section 16-149. | ||||||
11 | (4) The disability benefit provided under this | ||||||
12 | subsection shall be an amount determined as specified in | ||||||
13 | Section 16-149. | ||||||
14 | (5) The provisions of Section 16-149.2 apply to any | ||||||
15 | participant whose disability benefit under this subsection | ||||||
16 | is discontinued by the operation of Section 16-149 and who | ||||||
17 | is not a participant in the self-managed plan. | ||||||
18 | (6) The disability benefit provided under this Section | ||||||
19 | shall be increased on each January 1 occurring on or after | ||||||
20 | the first anniversary
of the commencement of that benefit. | ||||||
21 | Each annual increase shall be a percentage of the | ||||||
22 | disability benefit then payable, including any previous | ||||||
23 | increases, equal to 3% or one-half of the annual unadjusted | ||||||
24 | percentage increase in the Consumer Price Index-U for the | ||||||
25 | 12 months ending with the preceding September, whichever is | ||||||
26 | less. If that annual unadjusted percentage change is zero |
| |||||||
| |||||||
1 | or there is a decrease, then the disability benefit shall | ||||||
2 | not be increased. | ||||||
3 | An amount of employer contributions shall be used for the | ||||||
4 | purpose of providing the disability
benefit under this | ||||||
5 | subsection to the participant. Prior to the beginning of each | ||||||
6 | plan
year under the Tier 3 retirement plan, the Board of | ||||||
7 | Trustees shall determine, as a
percentage of salary, the amount | ||||||
8 | of employer contributions to be allocated
during that plan year | ||||||
9 | for providing a disability benefit for teachers in the
Tier 3 | ||||||
10 | retirement plan. | ||||||
11 | (g) Teacher contributions. In lieu of the member | ||||||
12 | contributions required under Section 16-152, each teacher who | ||||||
13 | is a participant in the Tier 3 retirement plan shall contribute | ||||||
14 | to the System an amount equal to 4% of each payment of salary | ||||||
15 | to fund the defined-benefit component of the Tier 3 retirement | ||||||
16 | plan and an amount equal to 5% of each payment of salary to | ||||||
17 | fund the defined-contribution component of the Tier 3 | ||||||
18 | retirement plan. These contributions shall be deducted from the | ||||||
19 | teacher's salary and may be picked up by the employer for | ||||||
20 | federal tax purposes under Section 16-152.1. These | ||||||
21 | contributions are a condition of employment. | ||||||
22 | A Tier 3 employee may make additional contributions to the | ||||||
23 | defined-contribution component of the Tier 3 retirement plan in | ||||||
24 | accordance with the procedures prescribed by the System, to the | ||||||
25 | extent permitted under the rules of the plan. | ||||||
26 | (h) Actual employer contributions. |
| |||||||
| |||||||
1 | (1) To fund the Tier 3 retirement plan, the actual | ||||||
2 | employer of a teacher who participates in the Tier 3 | ||||||
3 | retirement plan shall annually contribute to the System an | ||||||
4 | amount determined by the System equal to the sum of: (i) | ||||||
5 | the annual employer's normal cost of the defined-benefit | ||||||
6 | component of the Tier 3 retirement plan for teachers of | ||||||
7 | that employer, (ii) any unfunded accrued liability arising | ||||||
8 | from the Tier 3 retirement plan assigned to the employer | ||||||
9 | that year in accordance with subsection (h-5), and (iii) | ||||||
10 | any optional matching contribution to be made for that year | ||||||
11 | to the defined-contribution accounts of the local | ||||||
12 | employers' teachers by the local employer pursuant to a | ||||||
13 | collective bargaining agreement or other employment | ||||||
14 | contract, provided that the optional matching contribution | ||||||
15 | shall not be less than 3% or greater than 10% of the | ||||||
16 | applicable teacher salary. | ||||||
17 | (2) Each year, the retirement system shall obtain an | ||||||
18 | actuarial estimate of the annual normal cost of the | ||||||
19 | defined-benefit component of the Tier 3 retirement plan. | ||||||
20 | (3) The contributions required under this subsection | ||||||
21 | (h) are in addition to the contributions required under | ||||||
22 | Section 16-158 and any other contributions required under | ||||||
23 | this Article. | ||||||
24 | (4) In no event shall a participant have an option of | ||||||
25 | receiving any portion of the local employer contributions | ||||||
26 | to the defined-benefit plan in cash. |
| |||||||
| |||||||
1 | (h-5) For use in determining the employer's contribution | ||||||
2 | for unfunded accrued liability under item (ii) of paragraph (1) | ||||||
3 | of subsection (h), the System shall maintain a separate account | ||||||
4 | for each employer. The separate account shall be maintained in | ||||||
5 | such form and detail as the System determines to be | ||||||
6 | appropriate. The separate account shall reflect the following | ||||||
7 | items to the extent that they are attributable to that employer | ||||||
8 | and arise on or after the effective date of this amendatory Act | ||||||
9 | of the 98th General Assembly: employer contributions, employee | ||||||
10 | contributions, investment returns, payments of benefits, and | ||||||
11 | that employer's proportionate share of the System's | ||||||
12 | administrative expenses. | ||||||
13 | In the event that the Board determines that there is a | ||||||
14 | deficiency or surplus in the account of an employer, the Board | ||||||
15 | shall determine the employer's contribution rate as required by | ||||||
16 | item (ii) of paragraph (1) of subsection (h) so as to address | ||||||
17 | that deficiency or surplus over a reasonable period of time as | ||||||
18 | determined by the Board, which shall be no more than 10 years. | ||||||
19 | (i) Refunds. Refunds of teacher contributions to the | ||||||
20 | defined-benefit component of the Tier 3 retirement plan and | ||||||
21 | vested employer contributions to the defined-benefit component | ||||||
22 | of the Tier 3 retirement plan shall be calculated in accordance | ||||||
23 | with Section 16-138.
| ||||||
24 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
25 | Sec. 16-158. Contributions by State and other employing |
| |||||||
| |||||||
1 | units.
| ||||||
2 | (a) The State shall make contributions to the System by | ||||||
3 | means of
appropriations from the Common School Fund and other | ||||||
4 | State funds of amounts
which, together with other employer | ||||||
5 | contributions, employee contributions,
investment income, and | ||||||
6 | other income, will be sufficient to meet the cost of
| ||||||
7 | maintaining and administering the System on a 100% 90% funded | ||||||
8 | basis in accordance
with actuarial recommendations by the end | ||||||
9 | of State fiscal year 2043 .
| ||||||
10 | The Board shall determine the amount of State contributions | ||||||
11 | required for
each fiscal year on the basis of the actuarial | ||||||
12 | tables and other assumptions
adopted by the Board and the | ||||||
13 | recommendations of the actuary, using the formula
in subsection | ||||||
14 | (b-3).
| ||||||
15 | (a-1) Annually, on or before November 15 through until | ||||||
16 | November 15, 2011, the Board shall certify to the
Governor the | ||||||
17 | amount of the required State contribution for the coming fiscal
| ||||||
18 | year. The certification under this subsection (a-1) shall | ||||||
19 | include a copy of the actuarial recommendations
upon which it | ||||||
20 | is based and shall specifically identify the System's projected | ||||||
21 | State normal cost for that fiscal year .
| ||||||
22 | On or before May 1, 2004, 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 2005, taking | ||||||
25 | into account the amounts appropriated to and
received by the | ||||||
26 | System under subsection (d) of Section 7.2 of the General
|
| |||||||
| |||||||
1 | Obligation Bond Act.
| ||||||
2 | On or before July 1, 2005, the Board shall recalculate and | ||||||
3 | recertify
to the Governor the amount of the required State
| ||||||
4 | contribution to the System for State fiscal year 2006, taking | ||||||
5 | into account the changes in required State contributions made | ||||||
6 | by this amendatory Act of the 94th General Assembly.
| ||||||
7 | On or before April 1, 2011, 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 2011, applying | ||||||
10 | the changes made by Public Act 96-889 to the System's assets | ||||||
11 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
12 | was approved on that date. | ||||||
13 | (a-5) On or before November 1 of each year, beginning | ||||||
14 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
15 | the Governor, and the General Assembly a proposed certification | ||||||
16 | of the amount of the required State contribution to the System | ||||||
17 | for the next fiscal year, along with all of the actuarial | ||||||
18 | assumptions, calculations, and data upon which that proposed | ||||||
19 | certification is based. On or before January 1 of each year, | ||||||
20 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
21 | preliminary report concerning the proposed certification and | ||||||
22 | identifying, if necessary, recommended changes in actuarial | ||||||
23 | assumptions that the Board must consider before finalizing its | ||||||
24 | certification of the required State contributions. | ||||||
25 | On or before January 15, 2013 and each January 15 | ||||||
26 | thereafter, the Board shall certify to the Governor and the |
| |||||||
| |||||||
1 | General Assembly the amount of the required State contribution | ||||||
2 | for the next fiscal year. The certification shall include a | ||||||
3 | copy of the actuarial
recommendations upon which it is based | ||||||
4 | and shall specifically identify the System's projected State | ||||||
5 | normal cost for that fiscal year. The Board's certification | ||||||
6 | must note any deviations from the State Actuary's recommended | ||||||
7 | changes, the reason or reasons for not following the State | ||||||
8 | Actuary's recommended changes, and the fiscal impact of not | ||||||
9 | following the State Actuary's recommended changes on the | ||||||
10 | required State contribution. | ||||||
11 | (b) Through State fiscal year 1995, the State contributions | ||||||
12 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
13 | the School Code.
| ||||||
14 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
15 | of each month,
or as soon thereafter as may be practicable, the | ||||||
16 | Board shall submit vouchers
for payment of State contributions | ||||||
17 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
18 | required annual State contribution certified under
subsection | ||||||
19 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
20 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
21 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
22 | excess of the fiscal year 2004
certified contribution amount | ||||||
23 | determined under this Section
after taking into consideration | ||||||
24 | the transfer to the System
under subsection (a) of Section | ||||||
25 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
26 | the State Comptroller and
Treasurer by warrants drawn on the |
| |||||||
| |||||||
1 | funds appropriated to the System for that
fiscal year.
| ||||||
2 | If in any month the amount remaining unexpended from all | ||||||
3 | other appropriations
to the System for the applicable fiscal | ||||||
4 | year (including the appropriations to
the System under Section | ||||||
5 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
6 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
7 | amount
lawfully vouchered under this subsection, the | ||||||
8 | difference shall be paid from the
Common School Fund under the | ||||||
9 | continuing appropriation authority provided in
Section 1.1 of | ||||||
10 | the State Pension Funds Continuing Appropriation Act.
| ||||||
11 | (b-2) Allocations from the Common School Fund apportioned | ||||||
12 | to school
districts not coming under this System shall not be | ||||||
13 | diminished or affected by
the provisions of this Article.
| ||||||
14 | (b-3) For State fiscal years 2014 through 2043, the minimum | ||||||
15 | contribution
to the System to be made by the State for each | ||||||
16 | fiscal year shall be an amount
determined by the System to be | ||||||
17 | equal to the sum of (1) the State's portion of the projected | ||||||
18 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
19 | to bring the total assets of the
System up to 100% of the total | ||||||
20 | actuarial liabilities of the System by the end of
State fiscal | ||||||
21 | year 2043. In making these determinations, the required State
| ||||||
22 | contribution shall be calculated each year as a level | ||||||
23 | percentage of payroll
over the years remaining to and including | ||||||
24 | fiscal year 2043 and shall be
determined under the projected | ||||||
25 | unit credit actuarial cost method. | ||||||
26 | Beginning in State fiscal year 2044, the minimum State |
| |||||||
| |||||||
1 | contribution for each fiscal year shall be the amount needed to | ||||||
2 | maintain the total assets of the System at 100% of the total | ||||||
3 | actuarial liabilities of the System. | ||||||
4 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
5 | minimum contribution
to the System to be made by the State for | ||||||
6 | each fiscal year shall be an amount
determined by the System to | ||||||
7 | be sufficient to bring the total assets of the
System up to 90% | ||||||
8 | of 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; except that in the
| ||||||
19 | following specified State fiscal years, the State contribution | ||||||
20 | to the System
shall not be less than the following indicated | ||||||
21 | percentages of the applicable
employee payroll, even if the | ||||||
22 | indicated percentage will produce a State
contribution in | ||||||
23 | excess of the amount otherwise required under this subsection
| ||||||
24 | and subsection (a), and notwithstanding any contrary | ||||||
25 | certification made under
subsection (a-1) before the effective | ||||||
26 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
| |||||||
| |||||||
1 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
2 | 2003; and
13.56% in FY 2004.
| ||||||
3 | Notwithstanding any other provision of this Article, the | ||||||
4 | total required State
contribution for State fiscal year 2006 is | ||||||
5 | $534,627,700.
| ||||||
6 | Notwithstanding any other provision of this Article, the | ||||||
7 | total required State
contribution for State fiscal year 2007 is | ||||||
8 | $738,014,500.
| ||||||
9 | For each of State fiscal years 2008 through 2009, the State | ||||||
10 | contribution to
the System, as a percentage of the applicable | ||||||
11 | employee payroll, shall be
increased in equal annual increments | ||||||
12 | from the required State contribution for State fiscal year | ||||||
13 | 2007, so that by State fiscal year 2011, the
State is | ||||||
14 | contributing at the rate otherwise required under this Section.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State contribution for State fiscal year 2010 is | ||||||
17 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
18 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
19 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
20 | expenses determined by the System's share of total bond | ||||||
21 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
22 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
23 | due to the issuance of discounted bonds, if applicable. | ||||||
24 | Notwithstanding any other provision of this Article, the
| ||||||
25 | total required State contribution for State fiscal year 2011 is
| ||||||
26 | the amount recertified by the System on or before April 1, 2011 |
| |||||||
| |||||||
1 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
2 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
3 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
4 | pro rata share of bond sale
expenses determined by the System's | ||||||
5 | share of total bond
proceeds, (ii) any amounts received from | ||||||
6 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
7 | reduction in bond proceeds
due to the issuance of discounted | ||||||
8 | bonds, if applicable. This amount shall include, in addition to | ||||||
9 | the amount certified by the System, an amount necessary to meet | ||||||
10 | employer contributions required by the State as an employer | ||||||
11 | under paragraph (e) of this Section, which may also be used by | ||||||
12 | the System for contributions required by paragraph (a) of | ||||||
13 | Section 16-127. | ||||||
14 | Beginning in State fiscal year 2046, the minimum State | ||||||
15 | contribution for
each fiscal year shall be the amount needed to | ||||||
16 | maintain the total assets of
the System at 90% of the total | ||||||
17 | actuarial liabilities of the System.
| ||||||
18 | Amounts received by the System pursuant to Section 25 of | ||||||
19 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
20 | Finance Act in any fiscal year do not reduce and do not | ||||||
21 | constitute payment of any portion of the minimum State | ||||||
22 | contribution required under this Article in that fiscal year. | ||||||
23 | Such amounts shall not reduce, and shall not be included in the | ||||||
24 | calculation of, the required State contributions under this | ||||||
25 | Article in any future year until the System has reached a | ||||||
26 | funding ratio of at least 100% 90% . A reference in this Article |
| |||||||
| |||||||
1 | to the "required State contribution" or any substantially | ||||||
2 | similar term does not include or apply to any amounts payable | ||||||
3 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
4 | Notwithstanding any other provision of this Section, the | ||||||
5 | required State
contribution for State fiscal year 2005 and for | ||||||
6 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
7 | fiscal year 2013 , as
calculated under this Section and
| ||||||
8 | certified under subsection (a-1), shall not exceed an amount | ||||||
9 | equal to (i) the
amount of the required State contribution that | ||||||
10 | would have been calculated under
this Section for that fiscal | ||||||
11 | year if the System had not received any payments
under | ||||||
12 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
13 | Act, minus
(ii) the portion of the State's total debt service | ||||||
14 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
15 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
16 | and certified by the Comptroller, that is the same as the | ||||||
17 | System's portion of
the total moneys distributed under | ||||||
18 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
19 | Act. In determining this maximum for State fiscal years 2008 | ||||||
20 | through 2010, however, the amount referred to in item (i) shall | ||||||
21 | be increased, as a percentage of the applicable employee | ||||||
22 | payroll, in equal increments calculated from the sum of the | ||||||
23 | required State contribution for State fiscal year 2007 plus the | ||||||
24 | applicable portion of the State's total debt service payments | ||||||
25 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
26 | for the purposes of Section 7.2 of the General
Obligation Bond |
| |||||||
| |||||||
1 | Act, so that, by State fiscal year 2011, the
State is | ||||||
2 | contributing at the rate otherwise required under this Section.
| ||||||
3 | (c) Payment of the required State contributions and of all | ||||||
4 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
5 | other benefits granted
under or assumed by this System, and all | ||||||
6 | expenses in connection with the
administration and operation | ||||||
7 | thereof, are obligations of the State.
| ||||||
8 | If members are paid from special trust or federal funds | ||||||
9 | which are
administered by the employing unit, whether school | ||||||
10 | district or other
unit, the employing unit shall pay to the | ||||||
11 | System from such
funds the full accruing retirement costs based | ||||||
12 | upon that
service, as determined by the System. Employer | ||||||
13 | contributions, based on
salary paid to members from federal | ||||||
14 | funds, may be forwarded by the distributing
agency of the State | ||||||
15 | of Illinois to the System prior to allocation, in an
amount | ||||||
16 | determined in accordance with guidelines established by such
| ||||||
17 | agency and the System.
| ||||||
18 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
19 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
20 | employer's normal cost
of benefits based upon the teacher's | ||||||
21 | service, in addition to
employee contributions, as determined | ||||||
22 | by the System. Such employer
contributions shall be forwarded | ||||||
23 | monthly in accordance with guidelines
established by the | ||||||
24 | System.
| ||||||
25 | However, with respect to benefits granted under Section | ||||||
26 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
| |||||||
| |||||||
1 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
2 | (rather than 20%) of the member's
highest annual salary rate | ||||||
3 | for each year of creditable service granted, and
the employer | ||||||
4 | shall also pay the required employee contribution on behalf of
| ||||||
5 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
6 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
7 | 16-106 who is serving in that capacity
while on leave of | ||||||
8 | absence from another employer under this Article shall not
be | ||||||
9 | considered an employee of the employer from which the teacher | ||||||
10 | is on leave.
| ||||||
11 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
12 | shall pay to the System an employer contribution computed as | ||||||
13 | follows:
| ||||||
14 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
15 | employer
contribution shall be equal to 0.3% of each | ||||||
16 | teacher's salary.
| ||||||
17 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
18 | contribution shall be equal to 0.58% of each teacher's | ||||||
19 | salary.
| ||||||
20 | The school district or other employing unit may pay these | ||||||
21 | employer
contributions out of any source of funding available | ||||||
22 | for that purpose and
shall forward the contributions to the | ||||||
23 | System on the schedule established
for the payment of member | ||||||
24 | contributions.
| ||||||
25 | These employer contributions are intended to offset a | ||||||
26 | portion of the cost
to the System of the increases in |
| |||||||
| |||||||
1 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
2 | Each employer of teachers is entitled to a credit against | ||||||
3 | the contributions
required under this subsection (e) with | ||||||
4 | respect to salaries paid to teachers
for the period January 1, | ||||||
5 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
6 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
7 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
8 | paid to teachers for that
period.
| ||||||
9 | The additional 1% employee contribution required under | ||||||
10 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
11 | responsibility of the teacher and not the
teacher's employer, | ||||||
12 | unless the employer agrees, through collective bargaining
or | ||||||
13 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
14 | If an employer is required by a contract in effect on May | ||||||
15 | 1, 1998 between the
employer and an employee organization to | ||||||
16 | pay, on behalf of all its full-time
employees
covered by this | ||||||
17 | Article, all mandatory employee contributions required under
| ||||||
18 | this Article, then the employer shall be excused from paying | ||||||
19 | the employer
contribution required under this subsection (e) | ||||||
20 | for the balance of the term
of that contract. The employer and | ||||||
21 | the employee organization shall jointly
certify to the System | ||||||
22 | the existence of the contractual requirement, in such
form as | ||||||
23 | the System may prescribe. This exclusion shall cease upon the
| ||||||
24 | termination, extension, or renewal of the contract at any time | ||||||
25 | after May 1,
1998.
| ||||||
26 | (f) If the amount of a teacher's salary for any school year |
| |||||||
| |||||||
1 | used to determine final average salary exceeds the member's | ||||||
2 | annual full-time salary rate with the same employer for the | ||||||
3 | previous school year by more than 6%, the teacher's employer | ||||||
4 | shall pay to the System, in addition to all other payments | ||||||
5 | required under this Section and in accordance with guidelines | ||||||
6 | established by the System, the present value of the increase in | ||||||
7 | benefits resulting from the portion of the increase in salary | ||||||
8 | that is in excess of 6%. This present value shall be computed | ||||||
9 | by the System on the basis of the actuarial assumptions and | ||||||
10 | tables used in the most recent actuarial valuation of the | ||||||
11 | System that is available at the time of the computation. If a | ||||||
12 | teacher's salary for the 2005-2006 school year is used to | ||||||
13 | determine final average salary under this subsection (f), then | ||||||
14 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
15 | shall apply in calculating whether the increase in his or her | ||||||
16 | salary is in excess of 6%. For the purposes of this Section, | ||||||
17 | change in employment under Section 10-21.12 of the School Code | ||||||
18 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
19 | The System may require the employer to provide any pertinent | ||||||
20 | information or documentation.
The changes made to this | ||||||
21 | subsection (f) by this amendatory Act of the 94th General | ||||||
22 | Assembly apply without regard to whether the teacher was in | ||||||
23 | service on or after its effective date.
| ||||||
24 | Whenever it determines that a payment is or may be required | ||||||
25 | under this subsection, the System shall calculate the amount of | ||||||
26 | the payment and bill the employer for that amount. The bill |
| |||||||
| |||||||
1 | shall specify the calculations used to determine the amount | ||||||
2 | due. If the employer disputes the amount of the bill, it may, | ||||||
3 | within 30 days after receipt of the bill, apply to the System | ||||||
4 | in writing for a recalculation. The application must specify in | ||||||
5 | detail the grounds of the dispute and, if the employer asserts | ||||||
6 | that the calculation is subject to subsection (g) or (h) of | ||||||
7 | this Section, must include an affidavit setting forth and | ||||||
8 | attesting to all facts within the employer's knowledge that are | ||||||
9 | pertinent to the applicability of that subsection. Upon | ||||||
10 | receiving a timely application for recalculation, the System | ||||||
11 | shall review the application and, if appropriate, recalculate | ||||||
12 | the amount due.
| ||||||
13 | The employer contributions required under this subsection | ||||||
14 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
15 | receipt of the bill. If the employer contributions are not paid | ||||||
16 | within 90 days after receipt of the bill, then interest will be | ||||||
17 | charged at a rate equal to the System's annual actuarially | ||||||
18 | assumed rate of return on investment compounded annually from | ||||||
19 | the 91st day after receipt of the bill. Payments must be | ||||||
20 | concluded within 3 years after the employer's receipt of the | ||||||
21 | bill.
| ||||||
22 | (g) This subsection (g) applies only to payments made or | ||||||
23 | salary increases given on or after June 1, 2005 but before July | ||||||
24 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
25 | require the System to refund any payments received before
July | ||||||
26 | 31, 2006 (the effective date of Public Act 94-1057). |
| |||||||
| |||||||
1 | When assessing payment for any amount due under subsection | ||||||
2 | (f), the System shall exclude salary increases paid to teachers | ||||||
3 | under contracts or collective bargaining agreements entered | ||||||
4 | into, amended, or renewed before June 1, 2005.
| ||||||
5 | When assessing payment for any amount due under subsection | ||||||
6 | (f), the System shall exclude salary increases paid to a | ||||||
7 | teacher at a time when the teacher is 10 or more years from | ||||||
8 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
9 | When assessing payment for any amount due under subsection | ||||||
10 | (f), the System shall exclude salary increases resulting from | ||||||
11 | overload work, including summer school, when the school | ||||||
12 | district has certified to the System, and the System has | ||||||
13 | approved the certification, that (i) the overload work is for | ||||||
14 | the sole purpose of classroom instruction in excess of the | ||||||
15 | standard number of classes for a full-time teacher in a school | ||||||
16 | district during a school year and (ii) the salary increases are | ||||||
17 | equal to or less than the rate of pay for classroom instruction | ||||||
18 | computed on the teacher's current salary and work schedule.
| ||||||
19 | When assessing payment for any amount due under subsection | ||||||
20 | (f), the System shall exclude a salary increase resulting from | ||||||
21 | a promotion (i) for which the employee is required to hold a | ||||||
22 | certificate or supervisory endorsement issued by the State | ||||||
23 | Teacher Certification Board that is a different certification | ||||||
24 | or supervisory endorsement than is required for the teacher's | ||||||
25 | previous position and (ii) to a position that has existed and | ||||||
26 | been filled by a member for no less than one complete academic |
| |||||||
| |||||||
1 | year and the salary increase from the promotion is an increase | ||||||
2 | that results in an amount no greater than the lesser of the | ||||||
3 | average salary paid for other similar positions in the district | ||||||
4 | requiring the same certification or the amount stipulated in | ||||||
5 | the collective bargaining agreement for a similar position | ||||||
6 | requiring the same certification.
| ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (f), the System shall exclude any payment to the teacher from | ||||||
9 | the State of Illinois or the State Board of Education over | ||||||
10 | which the employer does not have discretion, notwithstanding | ||||||
11 | that the payment is included in the computation of final | ||||||
12 | average salary.
| ||||||
13 | (h) When assessing payment for any amount due under | ||||||
14 | subsection (f), the System shall exclude any salary increase | ||||||
15 | described in subsection (g) of this Section given on or after | ||||||
16 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
17 | collective bargaining agreement entered into, amended, or | ||||||
18 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
19 | Notwithstanding any other provision of this Section, any | ||||||
20 | payments made or salary increases given after June 30, 2014 | ||||||
21 | shall be used in assessing payment for any amount due under | ||||||
22 | subsection (f) of this Section.
| ||||||
23 | (i) The System shall prepare a report and file copies of | ||||||
24 | the report with the Governor and the General Assembly by | ||||||
25 | January 1, 2007 that contains all of the following information: | ||||||
26 | (1) The number of recalculations required by the |
| |||||||
| |||||||
1 | changes made to this Section by Public Act 94-1057 for each | ||||||
2 | employer. | ||||||
3 | (2) The dollar amount by which each employer's | ||||||
4 | contribution to the System was changed due to | ||||||
5 | recalculations required by Public Act 94-1057. | ||||||
6 | (3) The total amount the System received from each | ||||||
7 | employer as a result of the changes made to this Section by | ||||||
8 | Public Act 94-4. | ||||||
9 | (4) The increase in the required State contribution | ||||||
10 | resulting from the changes made to this Section by Public | ||||||
11 | Act 94-1057.
| ||||||
12 | (j) For purposes of determining the required State | ||||||
13 | contribution to the System, the value of the System's assets | ||||||
14 | shall be equal to the actuarial value of the System's assets, | ||||||
15 | which shall be calculated as follows: | ||||||
16 | As of June 30, 2008, the actuarial value of the System's | ||||||
17 | assets shall be equal to the market value of the assets as of | ||||||
18 | that date. In determining the actuarial value of the System's | ||||||
19 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
20 | gains or losses from investment return incurred in a fiscal | ||||||
21 | year shall be recognized in equal annual amounts over the | ||||||
22 | 5-year period following that fiscal year. | ||||||
23 | (k) For purposes of determining the required State | ||||||
24 | contribution to the system for a particular year, the actuarial | ||||||
25 | value of assets shall be assumed to earn a rate of return equal | ||||||
26 | to the system's actuarially assumed rate of return. |
| |||||||
| |||||||
1 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
2 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
3 | 6-18-12; 97-813, eff. 7-13-12.)
| ||||||
4 | (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
| ||||||
5 | Sec. 16-158.1. Actions to enforce payments by school | ||||||
6 | districts and
other employing units other than the State . Any | ||||||
7 | school district or other
employing unit , other than the State, | ||||||
8 | that fails failing to transmit to the System contributions | ||||||
9 | required of
it under this Article or contributions required of | ||||||
10 | teachers, for more
than 90 days after such contributions are | ||||||
11 | due is subject to the following:
after giving notice to the | ||||||
12 | district or other unit, the System may certify
to the State | ||||||
13 | Comptroller or the Regional Superintendent of Schools the
| ||||||
14 | amounts of such delinquent payments and the State Comptroller | ||||||
15 | or the
Regional Superintendent of Schools shall deduct the | ||||||
16 | amounts so certified
or any part thereof from any State funds | ||||||
17 | to be remitted
to the school district or other employing unit | ||||||
18 | involved and shall
pay the amount so deducted to the System. If | ||||||
19 | State funds from which
such deductions may be made are not | ||||||
20 | available, the System may proceed
against the school district | ||||||
21 | or other employing unit to recover the
amounts of such | ||||||
22 | delinquent payments in the appropriate circuit court.
| ||||||
23 | The System may provide for an
audit of the records of a | ||||||
24 | school district or other employing unit , other than the State, | ||||||
25 | as
may be required to establish the amounts of required |
| |||||||
| |||||||
1 | contributions.
The school district or other employing unit | ||||||
2 | shall make its records
available to the System for the purpose | ||||||
3 | of such audit. The cost of such
audit shall be added to the | ||||||
4 | amount of the delinquent payments and shall
be recovered by the | ||||||
5 | System from the school district or other employing
unit at the | ||||||
6 | same time and in the same manner as the delinquent payments
are | ||||||
7 | recovered.
| ||||||
8 | (Source: P.A. 90-448, eff. 8-16-97.)
| ||||||
9 | (40 ILCS 5/16-158.2 new) | ||||||
10 | Sec. 16-158.2. Obligations of State; funding guarantee. | ||||||
11 | Beginning July 1, 2013, the State shall be contractually | ||||||
12 | obligated to contribute to the System under Section 16-158 in | ||||||
13 | each State fiscal year an amount not less than the sum of (i) | ||||||
14 | the State's normal cost for that year and
(ii) the portion of | ||||||
15 | the unfunded accrued liability assigned to that year by law in | ||||||
16 | accordance with a schedule that distributes payments equitably | ||||||
17 | over a reasonable period of time and in accordance with | ||||||
18 | accepted actuarial practices. The obligations created under | ||||||
19 | this Section are contractual obligations protected and | ||||||
20 | enforceable under Article I, Section 16 and Article XIII, | ||||||
21 | 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 Section, the System may bring a mandamus action in the | ||||||
25 | Circuit Court of Sangamon County to compel the State to make |
| |||||||
| |||||||
1 | that payment, irrespective of other remedies that
may be | ||||||
2 | available to the System. In ordering the State to make the | ||||||
3 | required payment, the court may order a reasonable payment | ||||||
4 | schedule to enable the State to make the required payment | ||||||
5 | without significantly imperiling the public health, safety, or | ||||||
6 | welfare. | ||||||
7 | Any payments required to be made by the State pursuant to | ||||||
8 | this Section are expressly subordinated to the payment of the | ||||||
9 | principal, interest, and premium, if any, on any
bonded debt | ||||||
10 | obligation of the State or any other State-created entity, | ||||||
11 | either currently outstanding or to
be issued, for which the | ||||||
12 | source of repayment or security thereon is derived directly or | ||||||
13 | indirectly from
tax revenues collected by the State or any | ||||||
14 | other State-created entity. Payments on such bonded
| ||||||
15 | obligations include any statutory fund transfers or other | ||||||
16 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
17 | in State law or bond indentures, into debt service funds or | ||||||
18 | accounts of the State
related to such bonded obligations, | ||||||
19 | consistent with the payment schedules associated with such
| ||||||
20 | obligations. | ||||||
21 | (40 ILCS 5/16-203)
| ||||||
22 | Sec. 16-203. Application and expiration of new benefit | ||||||
23 | increases. | ||||||
24 | (a) As used in this Section, "new benefit increase" means | ||||||
25 | an increase in the amount of any benefit provided under this |
| |||||||
| |||||||
1 | Article, or an expansion of the conditions of eligibility for | ||||||
2 | any benefit under this Article, that results from an amendment | ||||||
3 | to this Code that takes effect after June 1, 2005 (the | ||||||
4 | effective date of Public Act 94-4). "New benefit increase", | ||||||
5 | however, does not include any benefit increase resulting from | ||||||
6 | the changes made to this Article or Article 1 by Public Act | ||||||
7 | 95-910 or this amendatory Act of the 98th 95th General | ||||||
8 | Assembly. | ||||||
9 | (b) Notwithstanding any other provision of this Code or any | ||||||
10 | subsequent amendment to this Code, every new benefit increase | ||||||
11 | is subject to this Section and shall be deemed to be granted | ||||||
12 | only in conformance with and contingent upon compliance with | ||||||
13 | the provisions of this Section.
| ||||||
14 | (c) The Public Act enacting a new benefit increase must | ||||||
15 | identify and provide for payment to the System of additional | ||||||
16 | funding at least sufficient to fund the resulting annual | ||||||
17 | increase in cost to the System as it accrues. | ||||||
18 | Every new benefit increase is contingent upon the General | ||||||
19 | Assembly providing the additional funding required under this | ||||||
20 | subsection. The Commission on Government Forecasting and | ||||||
21 | Accountability shall analyze whether adequate additional | ||||||
22 | funding has been provided for the new benefit increase and | ||||||
23 | shall report its analysis to the Public Pension Division of the | ||||||
24 | Department of Financial and Professional Regulation. A new | ||||||
25 | benefit increase created by a Public Act that does not include | ||||||
26 | the additional funding required under this subsection is null |
| |||||||
| |||||||
1 | and void. If the Public Pension Division determines that the | ||||||
2 | additional funding provided for a new benefit increase under | ||||||
3 | this subsection is or has become inadequate, it may so certify | ||||||
4 | to the Governor and the State Comptroller and, in the absence | ||||||
5 | of corrective action by the General Assembly, the new benefit | ||||||
6 | increase shall expire at the end of the fiscal year in which | ||||||
7 | the certification is made.
| ||||||
8 | (d) Every new benefit increase shall expire 5 years after | ||||||
9 | its effective date or on such earlier date as may be specified | ||||||
10 | in the language enacting the new benefit increase or provided | ||||||
11 | under subsection (c). This does not prevent the General | ||||||
12 | Assembly from extending or re-creating a new benefit increase | ||||||
13 | by law. | ||||||
14 | (e) Except as otherwise provided in the language creating | ||||||
15 | the new benefit increase, a new benefit increase that expires | ||||||
16 | under this Section continues to apply to persons who applied | ||||||
17 | and qualified for the affected benefit while the new benefit | ||||||
18 | increase was in effect and to the affected beneficiaries and | ||||||
19 | alternate payees of such persons, but does not apply to any | ||||||
20 | other person, including without limitation a person who | ||||||
21 | continues in service after the expiration date and did not | ||||||
22 | apply and qualify for the affected benefit while the new | ||||||
23 | benefit increase was in effect.
| ||||||
24 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
25 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
|
| |||||||
| |||||||
1 | Sec. 20-121. Calculation of proportional retirement | ||||||
2 | annuities. Upon
retirement of the employee, a proportional | ||||||
3 | retirement annuity shall be computed
by each participating | ||||||
4 | system in which pension credit has been established on
the | ||||||
5 | basis of pension credits under each system. The computation | ||||||
6 | shall be in
accordance with the formula or method prescribed by | ||||||
7 | each participating system
which is in effect at the date of the | ||||||
8 | employee's latest withdrawal from service
covered by any of the | ||||||
9 | systems in which he has pension credits which he elects
to have | ||||||
10 | considered under this Article. However, the amount of any | ||||||
11 | retirement
annuity payable under the self-managed plan | ||||||
12 | established under Section 15-158.2
of this Code or under the | ||||||
13 | defined-contribution component of a Tier 3 retirement plan | ||||||
14 | established under Section 15-158.5 or 16-152.8 depends solely | ||||||
15 | on the value of the participant's vested account
balances and | ||||||
16 | is not subject to any proportional adjustment under this
| ||||||
17 | Section.
| ||||||
18 | Combined pension credit under all retirement systems | ||||||
19 | subject to this
Article shall be considered in determining | ||||||
20 | whether the minimum qualification
has been met and the formula | ||||||
21 | or method of computation which shall be applied.
If a system | ||||||
22 | has a step-rate formula for calculation of the retirement | ||||||
23 | annuity,
pension credits covering previous service which have | ||||||
24 | been established under
another system shall be considered in | ||||||
25 | determining which range or ranges of
the step-rate formula are | ||||||
26 | to be applicable to the employee.
|
| |||||||
| |||||||
1 | Interest on pension credit shall continue to accumulate in | ||||||
2 | accordance with
the provisions of the law governing the | ||||||
3 | retirement system in which the same
has been established during | ||||||
4 | the time an employee is in the service of another
employer, on | ||||||
5 | the assumption such employee, for interest purposes for pension
| ||||||
6 | credit, is continuing in the service covered by such retirement | ||||||
7 | system.
| ||||||
8 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
9 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
10 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
11 | a retirement
annuity shall be applicable to a survivor's | ||||||
12 | annuity. Appropriate credits shall
be established for | ||||||
13 | survivor's annuity purposes in those participating systems
| ||||||
14 | which provide survivor's annuities, according to the same | ||||||
15 | conditions and
subject to the same limitations and restrictions | ||||||
16 | herein prescribed for a
retirement annuity. If a participating | ||||||
17 | system has no survivor's annuity
benefit, or if the survivor's | ||||||
18 | annuity benefit under that system is waived,
pension credit | ||||||
19 | established in that system shall not be considered
in | ||||||
20 | determining eligibility for or the amount of the survivor's | ||||||
21 | annuity which
may be payable by any other participating system.
| ||||||
22 | For persons who participate in the self-managed plan | ||||||
23 | established under
Section 15-158.2 or the portable benefit | ||||||
24 | package established under Section
15-136.4 , or in a Tier 3 | ||||||
25 | retirement plan established under Section 15-158.5 , pension |
| |||||||
| |||||||
1 | credit established under Article 15 may be considered in
| ||||||
2 | determining eligibility for or the amount of the survivor's | ||||||
3 | annuity that is
payable by any other participating system, but | ||||||
4 | pension credit established in
any other system shall not result | ||||||
5 | in any right to a survivor's annuity under
the Article 15 | ||||||
6 | system.
| ||||||
7 | For persons who participate in the Tier 3 retirement plan | ||||||
8 | established under Section 16-152.8, pension credit established | ||||||
9 | under Article 16 may be considered in
determining eligibility | ||||||
10 | for or the amount of the survivor's annuity that is
payable by | ||||||
11 | any other participating system, but pension credit established | ||||||
12 | in
any other system shall not result in any right to a | ||||||
13 | survivor's annuity under
the Article 16 system. | ||||||
14 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
15 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
16 | Sec. 20-124. Maximum benefits. | ||||||
17 | (a) In no event shall the combined retirement
or survivors | ||||||
18 | annuities exceed the highest annuity which would have been | ||||||
19 | payable
by any participating system in which the employee has | ||||||
20 | pension credits, if all
of his pension credits had been | ||||||
21 | validated in that system.
| ||||||
22 | If the combined annuities should exceed the highest maximum | ||||||
23 | as determined
in accordance with this Section, the respective | ||||||
24 | annuities shall be reduced
proportionately according to the | ||||||
25 | ratio which the amount of each proportional
annuity bears to |
| |||||||
| |||||||
1 | the aggregate of all such annuities.
| ||||||
2 | (b) In the case of a participant in the self-managed plan | ||||||
3 | established under
Section 15-158.2 of this Code to whom the | ||||||
4 | provisions of this Article apply:
| ||||||
5 | (i) For purposes of calculating the combined | ||||||
6 | retirement annuity and
the proportionate reduction, if | ||||||
7 | any, in a retirement annuity other than one
payable under | ||||||
8 | the self-managed plan, the amount of the Article 15 | ||||||
9 | retirement
annuity shall be deemed to be the highest | ||||||
10 | annuity to which the annuitant would
have been entitled if | ||||||
11 | he or she had participated in the traditional benefit
| ||||||
12 | package as defined in Section 15-103.1 rather than the | ||||||
13 | self-managed plan.
| ||||||
14 | (ii) For purposes of calculating the combined | ||||||
15 | survivor's annuity and
the proportionate reduction, if | ||||||
16 | any, in a survivor's annuity other than one
payable under | ||||||
17 | the self-managed plan, the amount of the Article 15 | ||||||
18 | survivor's
annuity shall be deemed to be the highest | ||||||
19 | survivor's annuity to which the
survivor would have been | ||||||
20 | entitled if the deceased employee had participated in
the | ||||||
21 | traditional benefit package as defined in Section 15-103.1 | ||||||
22 | rather than the
self-managed plan.
| ||||||
23 | (iii) Benefits payable under the self-managed plan are | ||||||
24 | not subject to
proportionate reduction under this Section.
| ||||||
25 | (c) In the case of a participant in a Tier 3 retirement | ||||||
26 | plan established under
Section 15-158.5 of this Code to whom |
| |||||||
| |||||||
1 | the provisions of this Article apply: | ||||||
2 | (i) For purposes of calculating the combined | ||||||
3 | retirement annuity and
the proportionate reduction, if | ||||||
4 | any, in a retirement annuity other than one payable under | ||||||
5 | Article 15 of this Code, the amount of the Article 15 | ||||||
6 | retirement
annuity shall be deemed to be the amount of the | ||||||
7 | retirement annuity payable under the defined-benefit | ||||||
8 | component of the Tier 3 retirement plan, but shall not | ||||||
9 | include any benefit payable under the defined-contribution | ||||||
10 | component of the Tier 3 retirement plan. | ||||||
11 | (ii) For purposes of calculating the combined | ||||||
12 | survivor's annuity and
the proportionate reduction, if | ||||||
13 | any, in a survivor's annuity other than one
payable under | ||||||
14 | Article 15 of this Code, the amount of the Article 15 | ||||||
15 | survivor's
annuity shall be deemed to be the amount of the | ||||||
16 | survivor's annuity payable under the defined benefit | ||||||
17 | portion of the Tier 3 retirement plan, but shall not | ||||||
18 | include any benefit payable under the defined-contribution | ||||||
19 | component of the Tier 3 retirement plan. | ||||||
20 | (iii) Benefits payable under the defined-contribution | ||||||
21 | component of the Tier 3 retirement plan established under | ||||||
22 | Section 15-158.5 are not subject to
proportionate | ||||||
23 | reduction under this Section. | ||||||
24 | (d) In the case of a participant in a Tier 3 retirement | ||||||
25 | plan established under
Section 16-152.8 of this Code to whom | ||||||
26 | the provisions of this Article apply: |
| |||||||
| |||||||
1 | (i) For purposes of calculating the combined | ||||||
2 | retirement annuity and
the proportionate reduction, if | ||||||
3 | any, in a retirement annuity other than one payable under | ||||||
4 | Article 16 of this Code, the amount of the Article 16 | ||||||
5 | retirement
annuity shall be deemed to be the amount of the | ||||||
6 | retirement annuity payable under the defined-benefit | ||||||
7 | component of the Tier 3 retirement plan, but shall not | ||||||
8 | include any benefit payable under the defined-contribution | ||||||
9 | component of the Tier 3 retirement plan. | ||||||
10 | (ii) For purposes of calculating the combined | ||||||
11 | survivor's annuity and
the proportionate reduction, if | ||||||
12 | any, in a survivor's annuity other than one
payable under | ||||||
13 | Article 16 of this Code, the amount of the Article 16 | ||||||
14 | survivor's
annuity shall be deemed to be the amount of the | ||||||
15 | survivor's annuity payable under the defined benefit | ||||||
16 | portion of the Tier 3 retirement plan, but shall not | ||||||
17 | include any benefit payable under the defined-contribution | ||||||
18 | component of the Tier 3 retirement plan. | ||||||
19 | (iii) Benefits payable under the defined-contribution | ||||||
20 | component of the Tier 3 retirement plan established under | ||||||
21 | Section 16-152.8 are not subject to
proportionate | ||||||
22 | reduction under this Section. | ||||||
23 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
24 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
25 | Sec. 20-125. Return to employment - suspension of benefits. |
| |||||||
| |||||||
1 | If a retired
employee returns to employment which is covered by | ||||||
2 | a system from which he is
receiving a proportional annuity | ||||||
3 | under this Article, his proportional annuity
from all | ||||||
4 | participating systems shall be suspended during the period of
| ||||||
5 | re-employment, except that this suspension does not apply to | ||||||
6 | any
distributions payable under the self-managed plan | ||||||
7 | established under Section
15-158.2 or under the | ||||||
8 | defined-contribution component of a Tier 3 retirement plan | ||||||
9 | established under Section 15-158.5 or 16-152.8 of this Code.
| ||||||
10 | The provisions of the Article under which such employment | ||||||
11 | would be
covered shall govern the determination of whether the | ||||||
12 | employee has returned
to employment, and if applicable the | ||||||
13 | exemption of temporary employment or
employment not exceeding a | ||||||
14 | specified duration or frequency, for all
participating systems | ||||||
15 | from which the retired employee is receiving a
proportional | ||||||
16 | annuity under this Article, notwithstanding any contrary
| ||||||
17 | provisions in the other Articles governing such systems.
| ||||||
18 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
19 | Section 90. The State Mandates Act is amended by adding | ||||||
20 | Section 8.37 as follows: | ||||||
21 | (30 ILCS 805/8.37 new) | ||||||
22 | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
23 | of this Act, no reimbursement by the State is required for the | ||||||
24 | implementation of any mandate created by this amendatory Act of |
| |||||||
| |||||||
1 | the 98th General Assembly. | ||||||
2 | Section 97. Inseverability. The provisions of this Act are | ||||||
3 | inseverable. | ||||||
4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.".
|