Illinois General Assembly - Full Text of HB3484
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Full Text of HB3484  99th General Assembly

HB3484enr 99TH GENERAL ASSEMBLY

  
  
  

 


 
HB3484 EnrolledLRB099 09762 EFG 29972 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 15-112, 15-154, 15-157, 15-168, 16-155, and 16-169.1
6and by adding Sections 2-139.1, 14-135.11, 15-126.2, and
716-181.4 as follows:
 
8    (40 ILCS 5/2-139.1 new)
9    Sec. 2-139.1. To request information. To request from any
10member, annuitant, beneficiary, or employer such information
11as is necessary for the proper administration of the System.
 
12    (40 ILCS 5/14-135.11 new)
13    Sec. 14-135.11. To request information. To request from any
14member, annuitant, beneficiary, or employer such information
15as is necessary for the proper administration of the System.
 
16    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
17    (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19    Sec. 15-112. Final rate of earnings. "Final rate of
20earnings":
21    (a) This subsection (a) applies only to a Tier 1 member.

 

 

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1    For an employee who is paid on an hourly basis or who
2receives an annual salary in installments during 12 months of
3each academic year, the average annual earnings during the 48
4consecutive calendar month period ending with the last day of
5final termination of employment or the 4 consecutive academic
6years of service in which the employee's earnings were the
7highest, whichever is greater. For any other employee, the
8average annual earnings during the 4 consecutive academic years
9of service in which his or her earnings were the highest. For
10an employee with less than 48 months or 4 consecutive academic
11years of service, the average earnings during his or her entire
12period of service. The earnings of an employee with more than
1336 months of service under item (a) of Section 15-113.1 prior
14to the date of becoming a participant are, for such period,
15considered equal to the average earnings during the last 36
16months of such service.
17    (b) This subsection (b) applies to a Tier 2 member.
18    For an employee who is paid on an hourly basis or who
19receives an annual salary in installments during 12 months of
20each academic year, the average annual earnings obtained by
21dividing by 8 the total earnings of the employee during the 96
22consecutive months in which the total earnings were the highest
23within the last 120 months prior to termination.
24    For any other employee, the average annual earnings during
25the 8 consecutive academic years within the 10 years prior to
26termination in which the employee's earnings were the highest.

 

 

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1For an employee with less than 96 consecutive months or 8
2consecutive academic years of service, whichever is necessary,
3the average earnings during his or her entire period of
4service.
5    (c) For an employee on leave of absence with pay, or on
6leave of absence without pay who makes contributions during
7such leave, earnings are assumed to be equal to the basic
8compensation on the date the leave began.
9    (d) For an employee on disability leave, earnings are
10assumed to be equal to the basic compensation on the date
11disability occurs or the average earnings during the 24 months
12immediately preceding the month in which disability occurs,
13whichever is greater.
14    (e) For a Tier 1 member who retires on or after the
15effective date of this amendatory Act of 1997 with at least 20
16years of service as a firefighter or police officer under this
17Article, the final rate of earnings shall be the annual rate of
18earnings received by the participant on his or her last day as
19a firefighter or police officer under this Article, if that is
20greater than the final rate of earnings as calculated under the
21other provisions of this Section.
22    (f) If a Tier 1 member is an employee for at least 6 months
23during the academic year in which his or her employment is
24terminated, the annual final rate of earnings shall be 25% of
25the sum of (1) the annual basic compensation for that year, and
26(2) the amount earned during the 36 months immediately

 

 

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1preceding that year, if this is greater than the final rate of
2earnings as calculated under the other provisions of this
3Section.
4    (g) In the determination of the final rate of earnings for
5an employee, that part of an employee's earnings for any
6academic year beginning after June 30, 1997, which exceeds the
7employee's earnings with that employer for the preceding year
8by more than 20 percent shall be excluded; in the event that an
9employee has more than one employer this limitation shall be
10calculated separately for the earnings with each employer. In
11making such calculation, only the basic compensation of
12employees shall be considered, without regard to vacation or
13overtime or to contracts for summer employment.
14    (h) The following are not considered as earnings in
15determining final rate of earnings: (1) severance or separation
16pay, (2) retirement pay, (3) payment for unused sick leave, and
17(4) payments from an employer for the period used in
18determining final rate of earnings for any purpose other than
19(i) services rendered, (ii) leave of absence or vacation
20granted during that period, and (iii) vacation of up to 56 work
21days allowed upon termination of employment; except that, if
22the benefit has been collectively bargained between the
23employer and the recognized collective bargaining agent
24pursuant to the Illinois Educational Labor Relations Act,
25payment received during a period of up to 2 academic years for
26unused sick leave may be considered as earnings in accordance

 

 

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1with the applicable collective bargaining agreement, subject
2to the 20% increase limitation of this Section. Any unused sick
3leave considered as earnings under this Section shall not be
4taken into account in calculating service credit under Section
515-113.4.
6    (i) Intermittent periods of service shall be considered as
7consecutive in determining final rate of earnings.
8(Source: P.A. 98-92, eff. 7-16-13.)
 
9    (40 ILCS 5/15-126.2 new)
10    Sec. 15-126.2. Plan year. "Plan year": The 12-month period
11beginning on July 1 in any year, and ending on June 30 of the
12succeeding year.
 
13    (40 ILCS 5/15-154)  (from Ch. 108 1/2, par. 15-154)
14    Sec. 15-154. Refunds.
15    (a) A participant whose status as an employee is
16terminated, regardless of cause, or who has been on lay off
17status for more than 120 days, and who is not on leave of
18absence, is entitled to a refund of contributions upon
19application; except that not more than one such refund
20application may be made during any academic year.
21    Except as set forth in subsections (a-1) and (a-2), the
22refund shall be the sum of the accumulated normal, additional,
23and survivors insurance contributions, plus the entire
24contribution made by the participant under Section 15-113.3,

 

 

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1less the amount of interest credited on these contributions
2each year in excess of 4 1/2% of the amount on which interest
3was calculated.
4    (a-1) A person who elects, in accordance with the
5requirements of Section 15-134.5, to participate in the
6portable benefit package and who becomes a participating
7employee under that retirement program upon the conclusion of
8the one-year waiting period applicable to the portable benefit
9package election shall have his or her refund calculated in
10accordance with the provisions of subsection (a-2).
11    (a-2) The refund payable to a participant described in
12subsection (a-1) shall be the sum of the participant's
13accumulated normal and additional contributions, as defined in
14Sections 15-116 and 15-117, plus the entire contribution made
15by the participant under Section 15-113.3. If the participant
16terminates with 5 or more years of service for employment as
17defined in Section 15-113.1, he or she shall also be entitled
18to a distribution of employer contributions in an amount equal
19to the sum of the accumulated normal and additional
20contributions, as defined in Sections 15-116 and 15-117.
21    (b) Upon acceptance of a refund, the participant forfeits
22all accrued rights and credits in the System, and if
23subsequently reemployed, the participant shall be considered a
24new employee subject to all the qualifying conditions for
25participation and eligibility for benefits applicable to new
26employees. If such person again becomes a participating

 

 

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1employee and continues as such for 2 years, or is employed by
2an employer and participates for at least 2 years in the
3Federal Civil Service Retirement System, all such rights,
4credits, and previous status as a participant shall be restored
5upon repayment of the amount of the refund, together with
6compound interest thereon from the date the refund was issued
7received to the date of repayment at the rate of 6% per annum
8through August 31, 1982, and at the effective rates after that
9date. When a participant in the portable benefit package who
10received a refund which included a distribution of employer
11contributions repays a refund pursuant to this Section,
12one-half of the amount repaid shall be deemed the member's
13reinstated accumulated normal and additional contributions and
14the other half shall be allocated as an employer contribution
15to the System, except that any amount repaid for previously
16purchased military service credit under Section 15-113.3 shall
17be accounted for as such.
18    (c) If a participant covered under the traditional benefit
19package has made survivors insurance contributions, but has no
20survivors insurance beneficiary upon retirement, he or she
21shall be entitled to elect a refund of the accumulated
22survivors insurance contributions, or to elect an additional
23annuity the value of which is equal to the accumulated
24survivors insurance contributions. This election must be made
25prior to the date the person's retirement annuity is approved
26by the System.

 

 

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1    (d) A participant, upon application, is entitled to a
2refund of his or her accumulated additional contributions
3attributable to the additional contributions described in the
4last sentence of subsection (c) of Section 15-157. Upon the
5acceptance of such a refund of accumulated additional
6contributions, the participant forfeits all rights and credits
7which may have accrued because of such contributions.
8    (e) A participant who terminates his or her employee status
9and elects to waive service credit under Section 15-154.2, is
10entitled to a refund of the accumulated normal, additional and
11survivors insurance contributions, if any, which were credited
12the participant for this service, or to an additional annuity
13the value of which is equal to the accumulated normal,
14additional and survivors insurance contributions, if any;
15except that not more than one such refund application may be
16made during any academic year. Upon acceptance of this refund,
17the participant forfeits all rights and credits accrued because
18of this service.
19    (f) If a police officer or firefighter receives a
20retirement annuity under Rule 1 or 3 of Section 15-136, he or
21she shall be entitled at retirement to a refund of the
22difference between his or her accumulated normal contributions
23and the normal contributions which would have accumulated had
24such person filed a waiver of the retirement formula provided
25by Rule 4 of Section 15-136.
26    (g) If, at the time of retirement, a participant would be

 

 

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1entitled to a retirement annuity under Rule 1, 2, 3, 4, or 5 of
2Section 15-136, or under Section 15-136.4, that exceeds the
3maximum specified in clause (1) of subsection (c) of Section
415-136, he or she shall be entitled to a refund of the employee
5contributions, if any, paid under Section 15-157 after the date
6upon which continuance of such contributions would have
7otherwise caused the retirement annuity to exceed this maximum,
8plus compound interest at the effective rates.
9(Source: P.A. 92-16, eff. 6-28-01; 92-424, eff. 8-17-01;
1093-347, eff. 7-24-03.)
 
11    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 15-157. Employee Contributions.
15    (a) Each participating employee shall make contributions
16towards the retirement benefits payable under the retirement
17program applicable to the employee from each payment of
18earnings applicable to employment under this system on and
19after the date of becoming a participant as follows: Prior to
20September 1, 1949, 3 1/2% of earnings; from September 1, 1949
21to August 31, 1955, 5%; from September 1, 1955 to August 31,
221969, 6%; from September 1, 1969, 6 1/2%. These contributions
23are to be considered as normal contributions for purposes of
24this Article.
25    Each participant who is a police officer or firefighter

 

 

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1shall make normal contributions of 8% of each payment of
2earnings applicable to employment as a police officer or
3firefighter under this system on or after September 1, 1981,
4unless he or she files with the board within 60 days after the
5effective date of this amendatory Act of 1991 or 60 days after
6the board receives notice that he or she is employed as a
7police officer or firefighter, whichever is later, a written
8notice waiving the retirement formula provided by Rule 4 of
9Section 15-136. This waiver shall be irrevocable. If a
10participant had met the conditions set forth in Section
1115-132.1 prior to the effective date of this amendatory Act of
121991 but failed to make the additional normal contributions
13required by this paragraph, he or she may elect to pay the
14additional contributions plus compound interest at the
15effective rate. If such payment is received by the board, the
16service shall be considered as police officer service in
17calculating the retirement annuity under Rule 4 of Section
1815-136. While performing service described in clause (i) or
19(ii) of Rule 4 of Section 15-136, a participating employee
20shall be deemed to be employed as a firefighter for the purpose
21of determining the rate of employee contributions under this
22Section.
23    (b) Starting September 1, 1969, each participating
24employee shall make additional contributions of 1/2 of 1% of
25earnings to finance a portion of the cost of the annual
26increases in retirement annuity provided under Section 15-136,

 

 

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1except that with respect to participants in the self-managed
2plan this additional contribution shall be used to finance the
3benefits obtained under that retirement program.
4    (c) In addition to the amounts described in subsections (a)
5and (b) of this Section, each participating employee shall make
6contributions of 1% of earnings applicable under this system on
7and after August 1, 1959. The contributions made under this
8subsection (c) shall be considered as survivor's insurance
9contributions for purposes of this Article if the employee is
10covered under the traditional benefit package, and such
11contributions shall be considered as additional contributions
12for purposes of this Article if the employee is participating
13in the self-managed plan or has elected to participate in the
14portable benefit package and has completed the applicable
15one-year waiting period. Contributions in excess of $80 during
16any fiscal year beginning before August 31, 1969 and in excess
17of $120 during any fiscal year thereafter until September 1,
181971 shall be considered as additional contributions for
19purposes of this Article.
20    (d) If the board by board rule so permits and subject to
21such conditions and limitations as may be specified in its
22rules, a participant may make other additional contributions of
23such percentage of earnings or amounts as the participant shall
24elect in a written notice thereof received by the board.
25    (e) That fraction of a participant's total accumulated
26normal contributions, the numerator of which is equal to the

 

 

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1number of years of service in excess of that which is required
2to qualify for the maximum retirement annuity, and the
3denominator of which is equal to the total service of the
4participant, shall be considered as accumulated additional
5contributions. The determination of the applicable maximum
6annuity and the adjustment in contributions required by this
7provision shall be made as of the date of the participant's
8retirement.
9    (f) Notwithstanding the foregoing, a participating
10employee shall not be required to make contributions under this
11Section after the date upon which continuance of such
12contributions would otherwise cause his or her retirement
13annuity to exceed the maximum retirement annuity as specified
14in clause (1) of subsection (c) of Section 15-136.
15    (g) A participant participating employee may make
16contributions for the purchase of service credit under this
17Article; however, only a participating employee may make
18optional contributions under subsection (b) of Section
1915-157.1 of this Article.
20    (h) A Tier 2 member shall not make contributions on
21earnings that exceed the limitation as prescribed under
22subsection (b) of Section 15-111 of this Article.
23(Source: P.A. 98-92, eff. 7-16-13.)
 
24    (40 ILCS 5/15-168)  (from Ch. 108 1/2, par. 15-168)
25    Sec. 15-168. To require information. To require such

 

 

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1information as shall be necessary for the proper operation of
2the system from any participant or benefit recipient
3beneficiary or from any employer of a current or former
4participant.
5(Source: P.A. 98-92, eff. 7-16-13.)
 
6    (40 ILCS 5/16-155)  (from Ch. 108 1/2, par. 16-155)
7    Sec. 16-155. Report to system and payment of deductions.
8    (a) The governing body of each school district shall make
9two deposits each month. The deposit for member contributions
10for salary paid between the first and the fifteenth of the
11month is due by the 25th of the month. The deposit of member
12contributions for salary paid between the sixteenth and last
13day of the month is due by the 10th of the following month. All
14required contributions for salary earned during a school term
15are due by July 10 next following the close of such school
16term.
17    The governing body of each State institution coming under
18this retirement system, the State Comptroller or other State
19officer certifying payroll vouchers including payments of
20salary or wages to teachers, and any other employer of
21teachers, shall, monthly, forward to the secretary of the
22retirement system the member contributions required under this
23Article.
24    Each employer specified above shall, prior to August 15 of
25each year, forward to the System a detailed statement, verified

 

 

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1in all cases of school districts by the secretary or clerk of
2the district, of the amounts so contributed since the period
3covered by the last previous annual statement, together with
4required contributions not yet forwarded, such payments being
5payable to the System.
6    The board may prescribe rules governing the form, content,
7investigation, control, and supervision of such statements and
8may establish additional interim employer reporting
9requirements as the Board deems necessary. If no teacher in a
10school district comes under the provisions of this Article, the
11governing body of the district shall so state under the oath of
12its secretary to this system, and shall at the same time
13forward a copy of the statement to the regional superintendent
14of schools.
15    (b) If the governing body of an employer that is not a
16State agency fails to forward such required contributions
17within the time permitted in subsection (a) above, the System
18shall notify the employer of an additional amount due, equal to
19the greater of the following: (1) an amount representing the
20interest lost by the system due to late forwarding of
21contributions, calculated for the number of days which the
22employer is late in forwarding contributions at a rate of
23interest prescribed by the board, based on its investment
24experience; or (2) $50.
25    (c) If the system, on August 15, is not in receipt of the
26detailed statements required under this Section of any school

 

 

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1district or other employing unit, such school district or other
2employing unit shall pay to the system an amount equal to $250
3for each day that elapses from August 15, until the day such
4statement is filed with the system.
5(Source: P.A. 90-448, eff. 8-16-97.)
 
6    (40 ILCS 5/16-169.1)
7    Sec. 16-169.1. Testimony and the production of records. The
8secretary of the Board shall have the power to issue subpoenas
9to compel the attendance of witnesses and the production of
10documents and records, including law enforcement records
11maintained by law enforcement agencies, in conjunction with the
12determination of employer payments required under subsection
13(f) of Section 16-158, a disability claim, an administrative
14review proceeding, an attempt to obtain information to assist
15in the collection of sums due to the System, or a felony
16forfeiture investigation. The fees of witnesses for attendance
17and travel shall be the same as the fees of witnesses before
18the circuit courts of this State and shall be paid by the party
19seeking the subpoena. The Board may apply to any circuit court
20in the State for an order requiring compliance with a subpoena
21issued under this Section. Subpoenas issued under this Section
22shall be subject to applicable provisions of the Code of Civil
23Procedure.
24(Source: P.A. 94-1057, eff. 7-31-06.)
 

 

 

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1    (40 ILCS 5/16-181.4 new)
2    Sec. 16-181.4. To request information. To request such
3information from any member, annuitant, beneficiary, or
4employer as is necessary for the proper administration of the
5System.
 
6    Section 97. Severability. The provisions of this Act are
7severable under Section 1.31 of the Statute on Statutes.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.