Full Text of HB4328 96th General Assembly
HB4328 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB4328
Introduced 2/27/2009, by Rep. Dennis M. Reboletti SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/18-133 |
from Ch. 108 1/2, par. 18-133 |
40 ILCS 5/18-169 |
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Amends the Judges Article of the Illinois Pension Code. Provides that a judge who was eligible for the maximum annuity and elected to discontinue contributing to the System may file a letter with the Board cancelling the direction to discontinue contributing to the System before July 1, 2011. Requires payment of an amount equal to the total of the discontinued contributions plus interest, except that a judge who (i) elected to discontinue contributing to the System before December 10, 1999 (the effective date of Public Act 91-653) and (ii) files with the Board a letter cancelling the
direction to discontinue contributing to the System after the effective date of the amendatory Act and before July 1, 2011 must make contributions to the System based only on the amount of the increases in salary received by the judge on or after December 10, 1999 (the effective date of Public Act 91-653). Includes language exempting the changes from the new benefit increase provisions. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB4328 |
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LRB096 11780 AMC 22563 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 18-133 and 18-169 as follows:
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| (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
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| Sec. 18-133. Financing; employee contributions.
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| (a) Effective July 1, 1967, each participant is required to | 9 |
| contribute
7 1/2% of each payment of salary toward the | 10 |
| retirement annuity. Such
contributions shall continue during | 11 |
| the entire time the participant is in
service, with the | 12 |
| following exceptions:
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| (1) Contributions for the retirement annuity are not | 14 |
| required on salary
received after 18 years of service by | 15 |
| persons who were participants before
January 2, 1954.
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| (2) A participant who continues to serve as a judge | 17 |
| after becoming
eligible to receive the maximum rate of | 18 |
| annuity may elect, through a written
direction filed with | 19 |
| the Board, to discontinue contributing to the System.
Any | 20 |
| such option elected by a judge shall be irrevocable unless | 21 |
| prior to
January 1, 2011 2000 , and while continuing to
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| serve as judge, the judge (A) files with the Board a letter | 23 |
| cancelling the
direction to discontinue contributing to |
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HB4328 |
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LRB096 11780 AMC 22563 b |
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| the System and requesting that such
contributing resume, | 2 |
| and (B) except as otherwise provided in this paragraph (2), | 3 |
| pays into the System an amount equal to the total
of the | 4 |
| discontinued contributions plus interest thereon at 5% per | 5 |
| annum.
A judge who (i) elected to discontinue contributing | 6 |
| to the System before December 10, 1999 (the effective date | 7 |
| of Public Act 91-653) and (ii) files with the Board a | 8 |
| letter cancelling the
direction to discontinue | 9 |
| contributing to the System after the effective date of this | 10 |
| amendatory Act of the 96th General Assembly and before July | 11 |
| 1, 2011 must make contributions to the System based only on | 12 |
| the amount of the increases in salary received by the judge | 13 |
| on or after December 10, 1999 (the effective date of Public | 14 |
| Act 91-653). Service credits earned in any other | 15 |
| "participating system" as defined in
Article 20 of this | 16 |
| Code shall be considered for purposes of determining a
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| judge's eligibility to discontinue contributions under | 18 |
| this subdivision
(a)(2).
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| (3) A participant who (i) has attained age 60, (ii) | 20 |
| continues to serve
as a judge after becoming eligible to | 21 |
| receive the maximum rate of annuity,
and (iii) has not | 22 |
| elected to discontinue contributing to the System under
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| subdivision (a)(2) of this Section (or has revoked any such | 24 |
| election) may
elect, through a written direction filed with | 25 |
| the Board, to make contributions
to the System based only | 26 |
| on the amount of the increases in salary received by
the |
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LRB096 11780 AMC 22563 b |
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| judge on or after the date of the election, rather than the | 2 |
| total salary
received. If a judge who is making | 3 |
| contributions to the System on the
effective date of this | 4 |
| amendatory Act of the 91st General Assembly makes an
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| election to limit contributions under this subdivision | 6 |
| (a)(3) within 90 days
after that effective date, the | 7 |
| election shall be deemed to become
effective on that | 8 |
| effective date and the judge shall be entitled to receive a
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| refund of any excess contributions paid to the System | 10 |
| during that 90-day
period; any other election under this | 11 |
| subdivision (a)(3) becomes effective
on the first of the | 12 |
| month following the date of the election. An election to
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| limit contributions under this subdivision (a)(3) is | 14 |
| irrevocable. Service
credits earned in any other | 15 |
| participating system as defined in Article 20 of
this Code | 16 |
| shall be considered for purposes of determining a judge's | 17 |
| eligibility
to make an election under this subdivision | 18 |
| (a)(3).
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| (b) Beginning July 1, 1969, each participant is required to | 20 |
| contribute
1% of each payment of salary towards the automatic | 21 |
| increase in annuity
provided in Section 18-125.1. However, such | 22 |
| contributions need not be made
by any participant who has | 23 |
| elected prior to September 15, 1969, not to be
subject to the | 24 |
| automatic increase in annuity provisions.
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| (c) Effective July 13, 1953, each married participant | 26 |
| subject to the
survivor's annuity provisions is required to |
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LRB096 11780 AMC 22563 b |
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| contribute 2 1/2% of each
payment of salary, whether or not he | 2 |
| or she is required to make any other
contributions under this | 3 |
| Section. Such contributions shall be made
concurrently with the | 4 |
| contributions made for annuity purposes.
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| (Source: P.A. 91-653, eff. 12-10-99.)
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| (40 ILCS 5/18-169)
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| Sec. 18-169. Application and expiration of new benefit | 8 |
| increases. | 9 |
| (a) As used in this Section, "new benefit increase" means | 10 |
| an increase in the amount of any benefit provided under this | 11 |
| Article, or an expansion of the conditions of eligibility for | 12 |
| any benefit under this Article, that results from an amendment | 13 |
| to this Code that takes effect after June 1, 2005 ( the | 14 |
| effective date of Public Act 94-4) this amendatory Act of the | 15 |
| 94th General Assembly . "New benefit increase", however, does | 16 |
| not include any benefit increase resulting from the changes | 17 |
| made by this amendatory Act of the 96th General Assembly. | 18 |
| (b) Notwithstanding any other provision of this Code or any | 19 |
| subsequent amendment to this Code, every new benefit increase | 20 |
| is subject to this Section and shall be deemed to be granted | 21 |
| only in conformance with and contingent upon compliance with | 22 |
| the provisions of this Section.
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| (c) The Public Act enacting a new benefit increase must | 24 |
| identify and provide for payment to the System of additional | 25 |
| funding at least sufficient to fund the resulting annual |
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| increase in cost to the System as it accrues. | 2 |
| Every new benefit increase is contingent upon the General | 3 |
| Assembly providing the additional funding required under this | 4 |
| subsection. The Commission on Government Forecasting and | 5 |
| Accountability shall analyze whether adequate additional | 6 |
| funding has been provided for the new benefit increase and | 7 |
| shall report its analysis to the Public Pension Division of the | 8 |
| Department of Financial and Professional Regulation. A new | 9 |
| benefit increase created by a Public Act that does not include | 10 |
| the additional funding required under this subsection is null | 11 |
| and void. If the Public Pension Division determines that the | 12 |
| additional funding provided for a new benefit increase under | 13 |
| this subsection is or has become inadequate, it may so certify | 14 |
| to the Governor and the State Comptroller and, in the absence | 15 |
| of corrective action by the General Assembly, the new benefit | 16 |
| increase shall expire at the end of the fiscal year in which | 17 |
| the certification is made.
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| (d) Every new benefit increase shall expire 5 years after | 19 |
| its effective date or on such earlier date as may be specified | 20 |
| in the language enacting the new benefit increase or provided | 21 |
| under subsection (c). This does not prevent the General | 22 |
| Assembly from extending or re-creating a new benefit increase | 23 |
| by law. | 24 |
| (e) Except as otherwise provided in the language creating | 25 |
| the new benefit increase, a new benefit increase that expires | 26 |
| under this Section continues to apply to persons who applied |
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| and qualified for the affected benefit while the new benefit | 2 |
| increase was in effect and to the affected beneficiaries and | 3 |
| alternate payees of such persons, but does not apply to any | 4 |
| other person, including without limitation a person who | 5 |
| continues in service after the expiration date and did not | 6 |
| apply and qualify for the affected benefit while the new | 7 |
| benefit increase was in effect.
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| (Source: P.A. 94-4, eff. 6-1-05.)
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| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
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