Full Text of SB1292 96th General Assembly
SB1292ham001 96TH GENERAL ASSEMBLY
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Personnel and Pensions Committee
Filed: 5/12/2009
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| AMENDMENT TO SENATE BILL 1292
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| AMENDMENT NO. ______. Amend Senate Bill 1292 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Public Labor Relations Act is | 5 |
| amended by changing Section 15 as follows:
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| (5 ILCS 315/15) (from Ch. 48, par. 1615)
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| Sec. 15. Act Takes Precedence. | 8 |
| (a) In case of any conflict between the
provisions of this | 9 |
| Act and any other law (other than Section 5 of the State | 10 |
| Employees Group Insurance Act of 1971 and other than the | 11 |
| changes made to the Illinois Pension Code by this amendatory | 12 |
| Act of the 96th General Assembly ), executive order or | 13 |
| administrative
regulation relating to wages, hours and | 14 |
| conditions of employment and employment
relations, the | 15 |
| provisions of this Act or any collective bargaining agreement
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| negotiated thereunder shall prevail and control.
Nothing in |
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| this Act shall be construed to replace or diminish the
rights | 2 |
| of employees established by Sections 28 and 28a of the | 3 |
| Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | 4 |
| of the Regional Transportation
Authority Act. The provisions of | 5 |
| this Act are subject to Section 5 of the State Employees Group | 6 |
| Insurance Act of 1971. Nothing in this Act shall be construed | 7 |
| to replace the necessity of complaints against a sworn peace | 8 |
| officer, as defined in Section 2(a) of the Uniform Peace | 9 |
| Officer Disciplinary Act, from having a complaint supported by | 10 |
| a sworn affidavit.
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| (b) Except as provided in subsection (a) above, any | 12 |
| collective bargaining
contract between a public employer and a | 13 |
| labor organization executed pursuant
to this Act shall | 14 |
| supersede any contrary statutes, charters, ordinances, rules
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| or regulations relating to wages, hours and conditions of | 16 |
| employment and
employment relations adopted by the public | 17 |
| employer or its agents. Any collective
bargaining agreement | 18 |
| entered into prior to the effective date of this Act
shall | 19 |
| remain in full force during its duration.
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| (c) It is the public policy of this State, pursuant to | 21 |
| paragraphs (h)
and (i) of Section 6 of Article VII of the | 22 |
| Illinois Constitution, that the
provisions of this Act are the | 23 |
| exclusive exercise by the State of powers
and functions which | 24 |
| might otherwise be exercised by home rule units. Such
powers | 25 |
| and functions may not be exercised concurrently, either | 26 |
| directly
or indirectly, by any unit of local government, |
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| including any home rule
unit, except as otherwise authorized by | 2 |
| this Act.
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| (Source: P.A. 95-331, eff. 8-21-07.)
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| Section 10. The Illinois Pension Code is amended by adding | 5 |
| Sections 2-300, 2-305, 2-310, 2-315, 2-320, 2-325, 2-330, | 6 |
| 2-335, 2-340, 14-300, 14-305, 14-310, 14-315, 14-320, 14-325, | 7 |
| 14-330, 14-335, 14-340, 15-300, 15-305, 15-310, 15-315, | 8 |
| 15-320, 15-325, 15-330, 15-335, 15-340, 16-300, 16-305, | 9 |
| 16-310, 16-315, 16-320, 16-325, 16-330, 16-335, 16-340, | 10 |
| 18-300, 18-305, 18-310, 18-315, 18-320, 18-325, 18-330, | 11 |
| 18-335, and 18-340 as follows: | 12 |
| (40 ILCS 5/2-300 new)
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| Sec. 2-300. Provisions applicable to later entrants. | 14 |
| (a) The provisions of this Article following this Section | 15 |
| apply only to members who first become members on or after | 16 |
| August 1, 2009, who are referred to as "later entrants". | 17 |
| (b) Except as provided in subsection (c) of this Section, | 18 |
| the Sections of this Article before this Section do not apply | 19 |
| to members who first become members on or after August 1, 2009. | 20 |
| (c) The following Sections are also applicable to members | 21 |
| who first become members on or after August 1, 2009: Sections | 22 |
| 2-101, 2-102, 2-103, 2-104, 2-105, 2-107, 2-108, 2-109, 2-111, | 23 |
| 2-112, 2-113, 2-114, 2-116, 2-117, 2-117.1, 2-117.3, and | 24 |
| 2-121.2 and Sections 2-124 through 2-162. |
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| (d) To the extent that the Sections enumerated in | 2 |
| subsection (c) of this Section conflict with the Sections | 3 |
| following this Section, the Sections following this Section | 4 |
| shall control. | 5 |
| (e) To the extent that the applicable Sections are included | 6 |
| under subsection (c) of this Section, later entrants, including | 7 |
| survivors, are entitled to disability benefits under this | 8 |
| Article. | 9 |
| (40 ILCS 5/2-305 new)
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| Sec. 2-305. Creditable service for later entrants. | 11 |
| (a) Creditable service under this Article is subject to the | 12 |
| following conditions: | 13 |
| (1) The maximum amount of creditable service a member | 14 |
| may establish under this Article is 35 years. | 15 |
| (2) A member may only establish creditable service for | 16 |
| his or her service as a member under this Article. Except | 17 |
| as provided in subsection (b), a member may not establish | 18 |
| creditable service for any other service. | 19 |
| (3) A member may not convert any unused sick leave or | 20 |
| vacation into creditable service under this Article. | 21 |
| (b) A member may establish creditable service for up to 2 | 22 |
| years of military service, as defined in Section 2-109, before | 23 |
| becoming a member under this Article by paying to the System | 24 |
| (1) employee contributions based upon the member's salary upon | 25 |
| becoming a member under this Article, (2) an amount determined |
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| by the board to be equal to the employer's normal cost of the | 2 |
| benefit, and (3) interest on items (1) and (2) at 4% per year | 3 |
| from the date of first membership in the System to the date of | 4 |
| payment. | 5 |
| (40 ILCS 5/2-310 new)
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| Sec. 2-310. Retirement annuity; conditions for | 7 |
| eligibility; later entrants. A member may claim his or her | 8 |
| retirement annuity upon attainment of (1) the full (normal) | 9 |
| retirement age as provided in the federal Social Security Act | 10 |
| with at least 10 years of service credit or (2) age 62 with at | 11 |
| least 35 years of service credit. | 12 |
| A member may claim a reduced retirement annuity under | 13 |
| subsection (c) of Section 2-315 if he or she is at least 62 | 14 |
| years of age and has at least 10 years of service. | 15 |
| The annuity shall begin with the first full calendar month | 16 |
| specified in the member's application therefor, the first day | 17 |
| of which shall not be before the date of withdrawal as approved | 18 |
| by the board. Regardless of the date of withdrawal, the annuity | 19 |
| need not begin within one year of application therefor. | 20 |
| (40 ILCS 5/2-315 new)
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| Sec. 2-315. Retirement life annuity; amount; later | 22 |
| entrants. | 23 |
| (a) With respect to late entrants: | 24 |
| (1) "Final average salary" means the monthly salary |
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| obtained by dividing the total salary of a participant | 2 |
| during the period of: (A) the 96 consecutive months of | 3 |
| service within the last 120 months of service in which the | 4 |
| total salary was the highest or (B) the total period of | 5 |
| service, if less than 96 months, by the number of months of | 6 |
| service in such period; provided that for the purposes of a | 7 |
| retirement annuity the average salary for the last 12 | 8 |
| months of the 96 months shall not exceed the final average | 9 |
| salary by more than 25%. | 10 |
| In no event shall the monthly salary used to determined | 11 |
| final average salary exceed (i) the Social Security Covered | 12 |
| Wage Base for the given month of service or (ii) $12,500, | 13 |
| whichever is less. | 14 |
| The earnings limitations contained in this item (1) | 15 |
| apply to earnings under any other participating system | 16 |
| under the Retirement Systems Reciprocal Act that are | 17 |
| considered in calculating a proportional annuity under | 18 |
| this Article, except in the case of a person who first | 19 |
| became a member of this System before August 22, 1994. | 20 |
| (2) "Salary" means: | 21 |
| (A) For members of the General Assembly, the total | 22 |
| salary paid to the member by the State for one year of | 23 |
| service, including the additional amounts, if any, | 24 |
| paid to the member as an officer, committee chair, or | 25 |
| minority spokesman pursuant to Section 1 of General | 26 |
| Assembly Compensation Act. "Salary" shall not include |
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| any compensation or allowance for mileage, food, or | 2 |
| lodging. | 3 |
| (B) For the State executive officers specified in | 4 |
| Section 2-105, the total salary paid to the member for | 5 |
| one year of service. "Salary" shall not include any | 6 |
| compensation or allowance for mileage, food, or | 7 |
| lodging. | 8 |
| However, in the event that federal law results in any | 9 |
| participant receiving imputed income based on the value of | 10 |
| group term life insurance provided by the State, such | 11 |
| imputed income shall not be included in salary for the | 12 |
| purposes of this Article. | 13 |
| (b) The retirement life annuity shall be 2% of final | 14 |
| average salary for each year of service. | 15 |
| (c) For a member retiring after attaining age 62, the | 16 |
| retirement life annuity shall be reduced by one-half of 1% for | 17 |
| each month that the member's age is under the full (normal) | 18 |
| retirement age as provided in the federal Social Security Act. | 19 |
| (40 ILCS 5/2-320 new)
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| Sec. 2-320. Alternative forms of annuities for later | 21 |
| entrants. A participant may choose any of the following types | 22 |
| of annuities in lieu of receiving the full annuity provided in | 23 |
| Section 2-315: | 24 |
| (1) Joint and 50% survivor annuity. Under this form of | 25 |
| payment, the participant receives a reduced monthly |
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| payment for his or her lifetime with a payment equal to 50% | 2 |
| of the reduced amount payable to the participant paid to | 3 |
| the participant's designated beneficiary for the | 4 |
| beneficiary's lifetime if the beneficiary survives the | 5 |
| participant. | 6 |
| (2) Joint and 75% survivor annuity. Under this form of | 7 |
| payment, the participant receives a reduced monthly | 8 |
| payment for his or her lifetime with a payment equal to 75% | 9 |
| of the reduced amount payable to the participant paid to | 10 |
| the participant's designated beneficiary for the | 11 |
| beneficiary's lifetime if the beneficiary survives the | 12 |
| participant. | 13 |
| (3) Joint and 100% survivor annuity. Under this form of | 14 |
| payment, the participant receives a reduced monthly | 15 |
| payment for his or her lifetime with a payment equal to | 16 |
| 100% of the reduced amount payable to the participant paid | 17 |
| to the participant's designated beneficiary for the | 18 |
| beneficiary's lifetime if the beneficiary survives the | 19 |
| participant. | 20 |
| (4) Single life annuity with 60, 120, or 180 months of | 21 |
| guaranteed payments. Under this option, the participant | 22 |
| receives a reduced monthly payment for his or her lifetime. | 23 |
| If the participant dies before receiving at least the | 24 |
| number of guaranteed monthly payments, then the | 25 |
| participant's beneficiary or estate receives the remaining | 26 |
| guaranteed number of monthly payments. |
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| The Board must determine the participant's optional form of | 2 |
| annuity provided under this Section by taking into account the | 3 |
| appropriate actuarial assumptions, including without | 4 |
| limitation the participant's and beneficiary's age; applicable | 5 |
| mortality tables; and any other factors that the Board | 6 |
| determines to be relevant. For this purpose, the participant's | 7 |
| joint and survivor annuity should result in no significant | 8 |
| increase to the System's unfunded actuarial accrued liability | 9 |
| determined as of the most recent actuarial valuation, based on | 10 |
| the same assumptions and methods used to develop and report the | 11 |
| System's actuarial accrued liability and actuarial value of | 12 |
| assets under Statement No. 25 of Governmental Accounting | 13 |
| Standards Board or any subsequent applicable Statement. | 14 |
| (40 ILCS 5/2-325 new)
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| Sec. 2-325. Automatic annual increases for later entrants. | 16 |
| Notwithstanding any other provision of this Article, a person | 17 |
| receiving a retirement or survivor annuity under Sections 2-315 | 18 |
| or 2-320 shall, on the first anniversary of retirement, but not | 19 |
| before attaining age 67, and annually thereafter, have his or | 20 |
| her annuity increased by (1) 3% or (2) one-half of the | 21 |
| percentage increase, if any, in the Consumer Price Index for | 22 |
| All Urban Consumers measured from the preceding January 1 to | 23 |
| the January 1 of the year during which the increase is being | 24 |
| granted, whichever is less, of the originally granted annuity. |
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| (40 ILCS 5/2-330 new)
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| Sec. 2-330. Contributions by participants; later entrants. | 3 |
| (a) Each participant shall contribute 7% of each payment of | 4 |
| salary received by him or her for service as a member toward | 5 |
| the cost of his or her retirement annuity. In no event shall | 6 |
| contributions be deducted from salary in excess of (1) the | 7 |
| Social Security Covered Wage Base for the given calendar year | 8 |
| or (2) $150,000, whichever is less. | 9 |
| (b) Contributions shall be in the form of a deduction from | 10 |
| salary and shall be made notwithstanding that the salary paid | 11 |
| in cash to the member shall be reduced thereby below the | 12 |
| minimum prescribed by law or regulation. Each member is deemed | 13 |
| to consent and agree to the deductions from compensation | 14 |
| provided for in this Article and shall receipt in full for | 15 |
| salary or compensation. | 16 |
| (c) These contributions shall be picked up in the manner | 17 |
| provided in Section 2-126.1. | 18 |
| (40 ILCS 5/2-335 new)
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| Sec. 2-335. Refunds; later entrants. A participant who | 20 |
| ceases to be a member, other than an annuitant, shall, upon | 21 |
| written request, receive a refund of his or her total | 22 |
| contributions, plus interest at (1) 3% or (2) one-half of the | 23 |
| percentage increase, if any, in the Consumer Price Index for | 24 |
| All Urban Consumers measured from the preceding January 1 to | 25 |
| the January 1 of the year during which the interest is being |
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| credited, whichever is less, per year, not compounded. | 2 |
| Upon re-entry into service as a member, a former member may | 3 |
| reestablish any creditable service forfeited by acceptance of a | 4 |
| refund by paying to the System the full amount refunded, plus | 5 |
| interest at the actuarially assumed rate, not compounded, from | 6 |
| the date of payment of the refund to the date of repayment. | 7 |
| (40 ILCS 5/2-340 new)
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| Sec. 2-340. Re-entry after retirement; later entrants. | 9 |
| (a) An annuitant who re-enters service as a member shall | 10 |
| become a participant on the date of re-entry,less he or she | 11 |
| elects not to participate under Section 2-117, and retirement | 12 |
| annuity payments shall cease at that time. The participant | 13 |
| shall resume contributions to the system on the date of | 14 |
| re-entry at the rates then in effect and shall begin to accrue | 15 |
| additional service credit. | 16 |
| (b) Upon subsequent retirement, the participant shall be | 17 |
| entitled to a retirement annuity consisting of: (1) the amount | 18 |
| of retirement annuity previously granted and terminated by | 19 |
| re-entry into service and (2) the amount of additional | 20 |
| retirement annuity earned during the additional service. | 21 |
| (c) In computing the retirement annuity under subsection | 22 |
| (b) of this Section, the time that the member was on retirement | 23 |
| shall not interrupt the continuity of service for the | 24 |
| computation of final average compensation and the additional | 25 |
| membership service shall be considered, together with service |
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| rendered before the previous retirement, in establishing final | 2 |
| average compensation. | 3 |
| (d) A person who re-enters service within 3 years after | 4 |
| retiring may qualify to have the retirement annuity computed as | 5 |
| though the member had not previously retired by paying to the | 6 |
| System, within 5 years after re-entry and prior to subsequent | 7 |
| retirement, in a lump-sum or in installment payments, in | 8 |
| accordance with rules adopted by the board, an amount equal to | 9 |
| all retirement annuity payments received, plus interest at the | 10 |
| actuarially assumed rate from the date retirement payments were | 11 |
| suspended to the date of repayment. | 12 |
| (40 ILCS 5/14-300 new)
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| Sec. 14-300. Provisions applicable to later entrants. | 14 |
| (a) The provisions of this Article following this Section | 15 |
| apply only to employees who first become employees on or after | 16 |
| August 1, 2009, who are referred to as "later entrants". | 17 |
| (b) Except as provided in subsection (c) of this Section, | 18 |
| the Sections of this Article before this Section do not apply | 19 |
| to employees who first become employees on or after August 1, | 20 |
| 2009. | 21 |
| (c) The following Sections are also applicable to employees | 22 |
| who first become employees on or after August 1, 2009: Sections | 23 |
| 14-101, 14-102, 14-103.01, 14-103.02, 14-103.03, 14-103.04, | 24 |
| 14-103.05, 14-103.06, 14-103.07, 14-103.08, 14-103.09, | 25 |
| 14-103.10, 14-103.11, 14-103.13, 14-103.15, 14-103.16, |
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| 14-103.17, 14-103.18, 14-103.19, 14-103.22, 14-103.24, | 2 |
| 14-103.25, 14-103.26, 14-103.27, 14-103.28, 14-103.29, | 3 |
| 14-103.32, 14-103.33, 14-103.34, 14-103.35, 14-103.36, | 4 |
| 14-103.37, 14-103.38, 14-103.39, 14-104.7, 14-123, 14-123.1, | 5 |
| 14-124, 14-125, 14-125.1, 14-126, 14-127, 14-131, 14-132.2, | 6 |
| 14-132.2, and 14-133.1 and Sections 14-134 through 14-152.2. | 7 |
| (d) To the extent that the Sections enumerated in | 8 |
| subsection (c) of this Section conflict with the Sections | 9 |
| following this Section, the Sections following this Section | 10 |
| shall control. | 11 |
| (e) To the extent that the applicable Sections are included | 12 |
| under subsection (c) of this Section, later entrants, including | 13 |
| survivors, are entitled to disability benefits under this | 14 |
| Article. | 15 |
| (40 ILCS 5/14-305 new)
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| Sec. 14-305. Creditable service for later entrants. | 17 |
| (a) Creditable service under this Article is subject to the | 18 |
| following conditions: | 19 |
| (1) The maximum amount of creditable service a member | 20 |
| may establish under this Article is 35 years. | 21 |
| (2) A member may only establish creditable service for | 22 |
| his or her membership service, as defined in Section | 23 |
| 14-103.13. Except as provided in subsection (b), a member | 24 |
| may not establish creditable service for any other service. | 25 |
| (3) A member may not convert any unused sick leave or |
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| vacation into creditable service under this Article. | 2 |
| (b) A member may establish creditable service for up to 2 | 3 |
| years of military service, as defined in Section 14-103.16, | 4 |
| before becoming a member under this Article by paying to the | 5 |
| System (1) employee contributions based upon the member's | 6 |
| salary upon becoming a member under this Article, (2) an amount | 7 |
| determined by the board to be equal to the employer's normal | 8 |
| cost of the benefit, and (3) interest on items (1) and (2) at | 9 |
| the actuarially assumed rate from the date of first membership | 10 |
| in the System to the date of payment. | 11 |
| (40 ILCS 5/14-310 new)
| 12 |
| Sec. 14-310. Retirement annuity; conditions for | 13 |
| eligibility; later entrants. A member may claim his or her | 14 |
| retirement annuity upon attainment of (1) the full (normal) | 15 |
| retirement age as provided in the federal Social Security Act | 16 |
| with at least 10 years of service credit or (2) age 62 with at | 17 |
| least 35 years of service credit. | 18 |
| A member may claim a reduced retirement annuity under | 19 |
| subsection (c) of Section 14-315 if he or she is at least 62 | 20 |
| years of age and has at least 10 years of service. | 21 |
| The annuity shall begin with the first full calendar month | 22 |
| specified in the member's application therefor, the first day | 23 |
| of which shall not be before the date of withdrawal as approved | 24 |
| by the board. Regardless of the date of withdrawal, the annuity | 25 |
| need not begin within one year of application therefor. |
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| (40 ILCS 5/14-315 new)
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| Sec. 14-315. Retirement life annuity; amount; later | 3 |
| entrants. | 4 |
| (a) With respect to late entrants: | 5 |
| (1) "Final average compensation" means the monthly | 6 |
| compensation obtained by dividing the total compensation | 7 |
| of an employee during the period of: (A) the 96 consecutive | 8 |
| months of service within the last 120 months of service in | 9 |
| which the total compensation was the highest or (B) the | 10 |
| total period of service, if less than 96 months, by the | 11 |
| number of months of service in such period; provided that | 12 |
| for the purposes of a retirement annuity the average | 13 |
| compensation for the last 12 months of the 96 months shall | 14 |
| not exceed the final average compensation by more than 25%. | 15 |
| In no event shall the monthly compensation used to | 16 |
| determined final average compensation exceed (i) the | 17 |
| Social Security Covered Wage Base for the given month of | 18 |
| service or (ii) $12,500, whichever is less. | 19 |
| (2) "Compensation" means a member's base compensation | 20 |
| and does not include any overtime or bonuses. | 21 |
| (b) The retirement life annuity shall be (1) 1.5% of final | 22 |
| average compensation for each year of service for covered | 23 |
| employees or (2) 2% of final average compensation for each year | 24 |
| of service for noncovered employees. | 25 |
| (c) For a member retiring after attaining age 62, the |
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| retirement life annuity shall be reduced by one-half of 1% for | 2 |
| each month that the member's age is under the full (normal) | 3 |
| retirement age as provided in the federal Social Security Act. | 4 |
| (40 ILCS 5/14-320 new)
| 5 |
| Sec. 14-320. Alternative forms of annuities for later | 6 |
| entrants. A member may choose any of the following types of | 7 |
| annuities in lieu of receiving the full annuity provided in | 8 |
| Section 14-315: | 9 |
| (1) Joint and 50% survivor annuity. Under this form of | 10 |
| payment, the member receives a reduced monthly payment for | 11 |
| his or her lifetime with a payment equal to 50% of the | 12 |
| reduced amount payable to the member paid to the member's | 13 |
| designated beneficiary for the beneficiary's lifetime if | 14 |
| the beneficiary survives the member. | 15 |
| (2) Joint and 75% survivor annuity. Under this form of | 16 |
| payment, the member receives a reduced monthly payment for | 17 |
| his or her lifetime with a payment equal to 75% of the | 18 |
| reduced amount payable to the member paid to the member's | 19 |
| designated beneficiary for the beneficiary's lifetime if | 20 |
| the beneficiary survives the member. | 21 |
| (3) Joint and 100% survivor annuity. Under this form of | 22 |
| payment, the member receives a reduced monthly payment for | 23 |
| his or her lifetime with a payment equal to 100% of the | 24 |
| reduced amount payable to the member paid to the member's | 25 |
| designated beneficiary for the beneficiary's lifetime if |
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| the beneficiary survives the member. | 2 |
| (4) Single life annuity with 60, 120, or 180 months of | 3 |
| guaranteed payments. Under this option, the member | 4 |
| receives a reduced monthly payment for his or her lifetime. | 5 |
| If the member dies before receiving at least the number of | 6 |
| guaranteed monthly payments, then the member's beneficiary | 7 |
| or estate receives the remaining guaranteed number of | 8 |
| monthly payments. | 9 |
| The Board must determine the participant's optional form of | 10 |
| annuity provided under this Section by taking into account the | 11 |
| appropriate actuarial assumptions, including without | 12 |
| limitation the participant's and beneficiary's age; applicable | 13 |
| mortality tables; and any other factors that the Board | 14 |
| determines to be relevant. For this purpose, the participant's | 15 |
| joint and survivor annuity should result in no significant | 16 |
| increase to the System's unfunded actuarial accrued liability | 17 |
| determined as of the most recent actuarial valuation, based on | 18 |
| the same assumptions and methods used to develop and report the | 19 |
| System's actuarial accrued liability and actuarial value of | 20 |
| assets under Statement No. 25 of Governmental Accounting | 21 |
| Standards Board or any subsequent applicable Statement. | 22 |
| (40 ILCS 5/14-325 new)
| 23 |
| Sec. 14-325. Automatic annual increases for later | 24 |
| entrants. Notwithstanding any other provision of this Article, | 25 |
| a person receiving a retirement or survivor annuity under |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| Sections 14-315 or 14-320 shall, on the first anniversary of | 2 |
| retirement, but not before attaining age 67, and annually | 3 |
| thereafter, have his or her annuity increased by (1) 3% or (2) | 4 |
| one-half of the percentage increase, if any, in the Consumer | 5 |
| Price Index for All Urban Consumers measured from the preceding | 6 |
| January 1 to the January 1 of the year during which the | 7 |
| increase is being granted, whichever is less, of the originally | 8 |
| granted annuity. | 9 |
| (40 ILCS 5/14-330 new)
| 10 |
| Sec. 14-330. Contributions by members; later entrants. | 11 |
| (a) Each employee shall contribute the following | 12 |
| percentage of each payment of salary received by him or her for | 13 |
| service as an employee toward the cost of his or her retirement | 14 |
| annuity: | 15 |
| (1) Covered employees, 3%. | 16 |
| (2) Noncovered employees, 7%. | 17 |
| (b) Contributions shall be in the form of a deduction from | 18 |
| compensation and shall be made notwithstanding that the | 19 |
| compensation paid in cash to the employee shall be reduced | 20 |
| thereby below the minimum prescribed by law or regulation. Each | 21 |
| member is deemed to consent and agree to the deductions from | 22 |
| compensation provided for in this Article and shall receipt in | 23 |
| full for salary or compensation. | 24 |
| (c) These contributions shall be picked up in the manner | 25 |
| provided in Section 14-133.1. |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| (d) In no event shall contributions be deducted from salary | 2 |
| in excess of (1) the Social Security Covered Wage Base for the | 3 |
| given calendar year or (2) $150,000, whichever is less. | 4 |
| (40 ILCS 5/14-335 new)
| 5 |
| Sec. 14-335. Refunds; later entrants. An employee who | 6 |
| ceases to be a member, other than an annuitant, shall, upon | 7 |
| written request, receive a refund of his or her total | 8 |
| contributions, plus interest at (1) 3% or (2) one-half of the | 9 |
| percentage increase, if any, in the Consumer Price Index for | 10 |
| All Urban Consumers measured from the preceding January 1 to | 11 |
| the January 1 of the year during which the interest is being | 12 |
| credited, whichever is less, per year, not compounded. | 13 |
| Upon re-entry into service as a member, a former member may | 14 |
| reestablish any creditable service forfeited by acceptance of a | 15 |
| refund by paying to the System the full amount refunded, plus | 16 |
| interest at actuarially assumed rate, not compounded, from the | 17 |
| date of payment of the refund to the date of repayment. | 18 |
| (40 ILCS 5/14-340 new)
| 19 |
| Sec. 14-340. Re-entry after retirement; later entrants. | 20 |
| (a) An annuitant who re-enters service as a member shall | 21 |
| become a member on the date of re-entry and retirement annuity | 22 |
| payments shall cease at that time. The employee shall resume | 23 |
| contributions to the system on the date of re-entry at the | 24 |
| rates then in effect and shall begin to accrue additional |
|
|
|
09600SB1292ham001 |
- 20 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| service credit. | 2 |
| (b) Upon subsequent retirement, the employee shall be | 3 |
| entitled to a retirement annuity consisting of: (1) the amount | 4 |
| of retirement annuity previously granted and terminated by | 5 |
| re-entry into service and (2) the amount of additional | 6 |
| retirement annuity earned during the additional service. | 7 |
| (c) In computing the retirement annuity under subsection | 8 |
| (b) of this Section, the time that the member was on retirement | 9 |
| shall not interrupt the continuity of service for the | 10 |
| computation of final average compensation and the additional | 11 |
| membership service shall be considered, together with service | 12 |
| rendered before the previous retirement, in establishing final | 13 |
| average compensation. | 14 |
| (d) A person who re-enters service within 3 years after | 15 |
| retiring may qualify to have the retirement annuity computed as | 16 |
| though the member had not previously retired by paying to the | 17 |
| System, within 5 years after re-entry and prior to subsequent | 18 |
| retirement, in a lump-sum or in installment payments, in | 19 |
| accordance with rules adopted by the board, an amount equal to | 20 |
| all retirement annuity payments received, plus interest at the | 21 |
| actuarially assumed rate from the date retirement payments were | 22 |
| suspended to the date of repayment. | 23 |
| (40 ILCS 5/15-300 new)
| 24 |
| Sec. 15-300. Provisions applicable to later entrants. | 25 |
| (a) The provisions of this Article following this Section |
|
|
|
09600SB1292ham001 |
- 21 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| apply only to employees who first become employees on or after | 2 |
| August 1, 2009, who are referred to as "later entrants". | 3 |
| (b) Except as provided in subsection (c) of this Section, | 4 |
| the Sections of this Article before this Section do not apply | 5 |
| to employees who first become employees on or after August 1, | 6 |
| 2009. | 7 |
| (c) The following Sections are also applicable to employees | 8 |
| who first become employees on or after August 1, 2009: Sections | 9 |
| 15-101, 15-102, 15-103.2, 15-103.3, 15-104, 15-105, 15-106, | 10 |
| 15-107, 15-108, 15-109, 15-110, 15-111, 15-113, 15-113.1, | 11 |
| 15-118, 15-119, 15-124, 15-126, 15-126.1, 15-134, 15-136.4, | 12 |
| 15-150, 15-151, 15-152, 15-153, 15-153.1, 15-153.2, 15-153.3, | 13 |
| 15-155, 15-156, 15-157.1, and 15-158.2 and Sections 15-159 | 14 |
| through 15-198. | 15 |
| (d) To the extent that the Sections enumerated in | 16 |
| subsection (c) of this Section conflict with the Sections | 17 |
| following this Section, the Sections following this Section | 18 |
| shall control. | 19 |
| (e) To the extent that the applicable Sections are included | 20 |
| under subsection (c) of this Section, later entrants, including | 21 |
| survivors, are entitled to disability benefits under this | 22 |
| Article. | 23 |
| (40 ILCS 5/15-305 new)
| 24 |
| Sec. 15-305. Creditable service for later entrants. | 25 |
| (a) Creditable service under this Article is subject to the |
|
|
|
09600SB1292ham001 |
- 22 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| following conditions: | 2 |
| (1) The maximum amount of creditable service a | 3 |
| participant may establish under this Article is 35 years. | 4 |
| (2) A participant may only establish creditable | 5 |
| service for his or her service for employment with an | 6 |
| employer, as defined in Section 15-106. Except as provided | 7 |
| in subsection (b), a participant may not establish | 8 |
| creditable service for any other service. | 9 |
| (3) A participant may not convert any unused sick leave | 10 |
| or vacation into creditable service under this Article. | 11 |
| (b) A participant may establish creditable service for up | 12 |
| to 2 years of military service before becoming a participant | 13 |
| under this Article by paying to the System (1) employee | 14 |
| contributions based upon the participant's salary upon | 15 |
| becoming a participant under this Article, (2) an amount | 16 |
| determined by the board to be equal to the employer's normal | 17 |
| cost of the benefit, and (3) interest on items (1) and (2) at | 18 |
| the actuarially assumed rate from the date of first employment | 19 |
| in the System to the date of payment. | 20 |
| For the purposes of this subsection (b), "military service" | 21 |
| means periods during which a person served in the armed forces | 22 |
| of the United States for which the person received a discharge | 23 |
| other than dishonorable. | 24 |
| (40 ILCS 5/15-310 new)
| 25 |
| Sec. 15-310. Retirement annuity; conditions for |
|
|
|
09600SB1292ham001 |
- 23 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| eligibility; later entrants. A participant may claim his or her | 2 |
| retirement annuity upon attainment of (1) the full (normal) | 3 |
| retirement age as provided in the federal Social Security Act | 4 |
| with at least 10 years of service credit or (2) age 62 with at | 5 |
| least 35 years of service credit. | 6 |
| A participant may claim a reduced retirement annuity under | 7 |
| subsection (c) of Section 15-315 if he or she is at least 62 | 8 |
| years of age and has at least 10 years of service. | 9 |
| The annuity shall begin with the first full calendar month | 10 |
| specified in the participant's application therefor, the first | 11 |
| day of which shall not be before the date of withdrawal as | 12 |
| approved by the board. Regardless of the date of withdrawal, | 13 |
| the annuity need not begin within one year of application | 14 |
| therefor. | 15 |
| (40 ILCS 5/15-315 new)
| 16 |
| Sec. 15-315. Retirement life annuity; amount; employer | 17 |
| contribution; later entrants. | 18 |
| (a) With respect to late entrants: | 19 |
| (1) "Final average rate of earnings" means the monthly | 20 |
| rate of earnings obtained by dividing the total rate of | 21 |
| earnings of an employee during the period of: (A) the 96 | 22 |
| consecutive months of service within the last 120 months of | 23 |
| service in which the total rate of earnings was the highest | 24 |
| or (B) the total period of service, if less than 96 months, | 25 |
| by the number of months of service in such period; provided |
|
|
|
09600SB1292ham001 |
- 24 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| that for the purposes of a retirement annuity the average | 2 |
| rate of earnings for the last 12 months of the 96 months | 3 |
| shall not exceed the final average rate of earnings by more | 4 |
| than 25%. | 5 |
| In no event shall the monthly rate of earnings used to | 6 |
| determined final average rate of earnings exceed (i) the | 7 |
| Social Security Covered Wage Base for the given month of | 8 |
| service or (ii) $12,500, whichever is less. | 9 |
| (2) "Earnings" means a participant's base earnings and | 10 |
| does not include any overtime or bonuses. | 11 |
| (b) The retirement life annuity shall be 2% of final | 12 |
| average rate of earnings for each year of service. | 13 |
| (c) For a participant retiring after attaining age 62, the | 14 |
| retirement life annuity shall be reduced by one-half of 1% for | 15 |
| each month that the participant's age is under the full | 16 |
| (normal) retirement age as provided in the federal Social | 17 |
| Security Act. | 18 |
| (40 ILCS 5/15-320 new)
| 19 |
| Sec. 15-320. Alternative forms of annuities for later | 20 |
| entrants. | 21 |
| (a) A participant may choose any of the following types of | 22 |
| annuities in lieu of receiving the full annuity provided in | 23 |
| Section 15-315: | 24 |
| (1) Joint and 50% survivor annuity. Under this form of | 25 |
| payment, the participant receives a reduced monthly |
|
|
|
09600SB1292ham001 |
- 25 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| payment for his or her lifetime with a payment equal to 50% | 2 |
| of the reduced amount payable to the participant paid to | 3 |
| the participant's designated beneficiary for the | 4 |
| beneficiary's lifetime if the beneficiary survives the | 5 |
| participant. | 6 |
| (2) Joint and 75% survivor annuity. Under this form of | 7 |
| payment, the participant receives a reduced monthly | 8 |
| payment for his or her lifetime with a payment equal to 75% | 9 |
| of the reduced amount payable to the participant paid to | 10 |
| the participant's designated beneficiary for the | 11 |
| beneficiary's lifetime if the beneficiary survives the | 12 |
| participant. | 13 |
| (3) Joint and 100% survivor annuity. Under this form of | 14 |
| payment, the participant receives a reduced monthly | 15 |
| payment for his or her lifetime with a payment equal to | 16 |
| 100% of the reduced amount payable to the participant paid | 17 |
| to the participant's designated beneficiary for the | 18 |
| beneficiary's lifetime if the beneficiary survives the | 19 |
| participant. | 20 |
| (4) Single life annuity with 60, 120, or 180 months of | 21 |
| guaranteed payments. Under this option, the participant | 22 |
| receives a reduced monthly payment for his or her lifetime. | 23 |
| If the participant dies before receiving at least the | 24 |
| number of guaranteed monthly payments, then the | 25 |
| participant's beneficiary or estate receives the remaining | 26 |
| guaranteed number of monthly payments. |
|
|
|
09600SB1292ham001 |
- 26 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| (b) In lieu of the annuities under Section 15-315 and | 2 |
| subsection (a) of this Section, a participant may choose the | 3 |
| portable benefit package under Section 15-136.4 or the | 4 |
| self-managed plan under Section 15-158.2. | 5 |
| (c) The Board must determine the participant's optional | 6 |
| form of annuity provided under this Section by taking into | 7 |
| account the appropriate actuarial assumptions, including | 8 |
| without limitation the participant's and beneficiary's age; | 9 |
| applicable mortality tables; and any other factors that the | 10 |
| Board determines to be relevant. For this purpose, the | 11 |
| participant's joint and survivor annuity should result in no | 12 |
| significant increase to the System's unfunded actuarial | 13 |
| accrued liability determined as of the most recent actuarial | 14 |
| valuation, based on the same assumptions and methods used to | 15 |
| develop and report the System's actuarial accrued liability and | 16 |
| actuarial value of assets under Statement No. 25 of | 17 |
| Governmental Accounting Standards Board or any subsequent | 18 |
| applicable Statement. | 19 |
| (40 ILCS 5/15-325 new)
| 20 |
| Sec. 15-325. Automatic annual increases for later | 21 |
| entrants. Notwithstanding any other provision of this Article, | 22 |
| a person receiving a retirement or survivor annuity under | 23 |
| Sections 15-315 or 15-320 shall, on the first anniversary of | 24 |
| retirement, but not before attaining age 67, and annually | 25 |
| thereafter, have his or her annuity increased by (1) 3% or (2) |
|
|
|
09600SB1292ham001 |
- 27 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| one-half of the percentage increase, if any, in the Consumer | 2 |
| Price Index for All Urban Consumers measured from the preceding | 3 |
| January 1 to the January 1 of the year during which the | 4 |
| increase is being granted, whichever is less, of the originally | 5 |
| granted annuity. | 6 |
| (40 ILCS 5/15-330 new)
| 7 |
| Sec. 15-330. Contributions by participants; later | 8 |
| entrants. | 9 |
| (a) Each employee shall contribute 7% of each payment of | 10 |
| salary received by him or her for service as an employee toward | 11 |
| the cost of his or her retirement annuity. | 12 |
| (b) Contributions shall be in the form of a deduction from | 13 |
| earnings and shall be made notwithstanding that the earnings | 14 |
| paid in cash to the employee shall be reduced thereby below the | 15 |
| minimum prescribed by law or regulation. Each participant is | 16 |
| deemed to consent and agree to the deductions from earnings | 17 |
| provided for in this Article and shall receipt in full for | 18 |
| salary or compensation. | 19 |
| (c) These contributions shall be picked up in the manner | 20 |
| provided in Section 15-157.1. | 21 |
| (d) In no event shall contributions be deducted from salary | 22 |
| in excess of (1) the Social Security Covered Wage Base for the | 23 |
| given calendar year or (2) $150,000, whichever is less. | 24 |
| (40 ILCS 5/15-335 new)
|
|
|
|
09600SB1292ham001 |
- 28 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| Sec. 15-335. Refunds; later entrants. An employee who | 2 |
| ceases to be a participant, other than an annuitant, shall, | 3 |
| upon written request, receive a refund of his or her total | 4 |
| contributions, plus interest at (1) 3% or (2) one-half of the | 5 |
| percentage increase, if any, in the Consumer Price Index for | 6 |
| All Urban Consumers measured from the preceding January 1 to | 7 |
| the January 1 of the year during which the interest is being | 8 |
| credited, whichever is less, per year, not compounded. | 9 |
| Upon re-entry into service as an employee, a former | 10 |
| participant may reestablish any creditable service forfeited | 11 |
| by acceptance of a refund by paying to the System the full | 12 |
| amount refunded, plus interest at the actuarially assumed rate, | 13 |
| not compounded, from the date of payment of the refund to the | 14 |
| date of repayment. | 15 |
| (40 ILCS 5/15-340 new)
| 16 |
| Sec. 15-340. Re-entry after retirement; later entrants. | 17 |
| (a) An annuitant who re-enters service as an employee shall | 18 |
| become a participant on the date of re-entry and retirement | 19 |
| annuity payments shall cease at that time. The employee shall | 20 |
| resume contributions to the system on the date of re-entry at | 21 |
| the rates then in effect and shall begin to accrue additional | 22 |
| service credit. | 23 |
| (b) Upon subsequent retirement, the employee shall be | 24 |
| entitled to a retirement annuity consisting of: (1) the amount | 25 |
| of retirement annuity previously granted and terminated by |
|
|
|
09600SB1292ham001 |
- 29 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| re-entry into service and (2) the amount of additional | 2 |
| retirement annuity earned during the additional service. | 3 |
| (c) In computing the retirement annuity under subsection | 4 |
| (b) of this Section, the time that the employee was on | 5 |
| retirement shall not interrupt the continuity of service for | 6 |
| the computation of final average rate of earnings and the | 7 |
| additional service shall be considered, together with service | 8 |
| rendered before the previous retirement, in establishing final | 9 |
| average rate of earnings. | 10 |
| (d) A person who re-enters service within 3 years after | 11 |
| retiring may qualify to have the retirement annuity computed as | 12 |
| though the participant had not previously retired by paying to | 13 |
| the System, within 5 years after re-entry and prior to | 14 |
| subsequent retirement, in a lump-sum or in installment | 15 |
| payments, in accordance with rules adopted by the board, an | 16 |
| amount equal to all retirement annuity payments received, plus | 17 |
| interest at the actuarially assumed rate from the date | 18 |
| retirement payments were suspended to the date of repayment. | 19 |
| (40 ILCS 5/16-300 new)
| 20 |
| Sec. 16-300. Provisions applicable to later entrants. | 21 |
| (a) The provisions of this Article following this Section | 22 |
| apply only to teachers who first become teachers on or after | 23 |
| August 1, 2009, who are referred to as "later entrants". | 24 |
| (b) Except as provided in subsection (c) of this Section, | 25 |
| the Sections of this Article before this Section do not apply |
|
|
|
09600SB1292ham001 |
- 30 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| to teachers who first become teachers on or after August 1, | 2 |
| 2009. | 3 |
| (c) The following Sections are also applicable to teachers | 4 |
| who first become teachers on or after August 1, 2009: Sections | 5 |
| 16-101, 16-102, 16-103, 16-104, 16-105, 16-106, 16-106.1, | 6 |
| 16-106.2, 16-106.3, 16-107, 16-109, 16-110, 16-111.1, 16-113, | 7 |
| 16-114, 16-118, 16-121, 16-123, 16-149, 16-149.1, 16-149.2, | 8 |
| 16-149.3, 16-149.4, 16-149.5, 16-149.6, and 16-152.1 and | 9 |
| Sections 16-155 through 16-203. | 10 |
| (d) To the extent that the Sections enumerated in | 11 |
| subsection (c) of this Section conflict with the Sections | 12 |
| following this Section, the Sections following this Section | 13 |
| shall control. | 14 |
| (e) To the extent that the applicable Sections are included | 15 |
| under subsection (c) of this Section, later entrants, including | 16 |
| survivors, are entitled to disability benefits under this | 17 |
| Article. | 18 |
| (40 ILCS 5/16-305 new)
| 19 |
| Sec. 16-305. Creditable service for later entrants. | 20 |
| (a) Creditable service under this Article is subject to the | 21 |
| following conditions: | 22 |
| (1) The maximum amount of creditable service a member | 23 |
| may establish under this Article is 35 years. | 24 |
| (2) A member may only establish creditable service for | 25 |
| his or her service for employment as a teacher, as defined |
|
|
|
09600SB1292ham001 |
- 31 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| in Section 16-106. Except as provided in subsection (b), a | 2 |
| member may not establish creditable service for any other | 3 |
| service. | 4 |
| (3) A member may not convert any unused sick leave or | 5 |
| vacation into creditable service under this Article. | 6 |
| (b) A member may establish creditable service for up to 2 | 7 |
| years of military service before becoming a member under this | 8 |
| Article by paying to the System (1) employee contributions | 9 |
| based upon the member's salary upon becoming a member under | 10 |
| this Article, (2) an amount determined by the board to be equal | 11 |
| to the employer's normal cost of the benefit, and (3) interest | 12 |
| on items (1) and (2) at the actuarially assumed rate from the | 13 |
| date of first employment in the System to the date of payment. | 14 |
| For the purposes of this subsection (b), "military service" | 15 |
| means periods a person spent in active service with the | 16 |
| military forces of the United States for which the person | 17 |
| received a discharge other than dishonorable. | 18 |
| (40 ILCS 5/16-310 new)
| 19 |
| Sec. 16-310. Retirement annuity; conditions for | 20 |
| eligibility; later entrants. A member may claim his or her | 21 |
| retirement annuity upon attainment of (1) the full (normal) | 22 |
| retirement age as provided in the federal Social Security Act | 23 |
| with at least 10 years of service credit or (2) age 62 with at | 24 |
| least 35 years of service credit. | 25 |
| A member may claim a reduced retirement annuity under |
|
|
|
09600SB1292ham001 |
- 32 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| subsection (c) of Section 16-315 if he or she is at least 62 | 2 |
| years of age and has at least 10 years of service. | 3 |
| The annuity shall begin with the first full calendar month | 4 |
| specified in the member's application therefor, the first day | 5 |
| of which shall not be before the date of withdrawal as approved | 6 |
| by the board. Regardless of the date of withdrawal, the annuity | 7 |
| need not begin within one year of application therefor. | 8 |
| (40 ILCS 5/16-315 new)
| 9 |
| Sec. 16-315. Retirement life annuity; amount; employer | 10 |
| contribution; later entrants. | 11 |
| (a) With respect to late entrants: | 12 |
| (1) "Final average salary" means the monthly salary | 13 |
| obtained by dividing the total salary of a member during | 14 |
| the period of: (A) the 96 consecutive months of service | 15 |
| within the last 120 months of service in which the total | 16 |
| salary was the highest or (B) the total period of service, | 17 |
| if less than 96 months, by the number of months of service | 18 |
| in such period; provided that for the purposes of a | 19 |
| retirement annuity the average salary for the last 12 | 20 |
| months of the 96 months shall not exceed the final average | 21 |
| salary by more than 25%. | 22 |
| In no event shall the monthly salary used to determined | 23 |
| final average salary exceed (i) the Social Security Covered | 24 |
| Wage Base for the given month of service or (ii) $12,500, | 25 |
| whichever is less. |
|
|
|
09600SB1292ham001 |
- 33 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| (2) "Salary" means a member's base salary and does not | 2 |
| include any overtime or bonuses. | 3 |
| (b) The retirement life annuity shall be 2% of final | 4 |
| average salary for each year of service. | 5 |
| (c) For a member retiring after attaining age 62, the | 6 |
| retirement life annuity shall be reduced by one-half of 1% for | 7 |
| each month that the member's age is under the full (normal) | 8 |
| retirement age as provided in the federal Social Security Act. | 9 |
| (40 ILCS 5/16-320 new)
| 10 |
| Sec. 16-320. Alternative forms of annuities for later | 11 |
| entrants. A member may choose any of the following types of | 12 |
| annuities in lieu of receiving the full annuity provided in | 13 |
| Section 14-315: | 14 |
| (1) Joint and 50% survivor annuity. Under this form of | 15 |
| payment, the member receives a reduced monthly payment for | 16 |
| his or her lifetime with a payment equal to 50% of the | 17 |
| reduced amount payable to the member paid to the member's | 18 |
| designated beneficiary for the beneficiary's lifetime if | 19 |
| the beneficiary survives the member. | 20 |
| (2) Joint and 75% survivor annuity. Under this form of | 21 |
| payment, the member receives a reduced monthly payment for | 22 |
| his or her lifetime with a payment equal to 75% of the | 23 |
| reduced amount payable to the member paid to the member's | 24 |
| designated beneficiary for the beneficiary's lifetime if | 25 |
| the beneficiary survives the member. |
|
|
|
09600SB1292ham001 |
- 34 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| (3) Joint and 100% survivor annuity. Under this form of | 2 |
| payment, the member receives a reduced monthly payment for | 3 |
| his or her lifetime with a payment equal to 100% of the | 4 |
| reduced amount payable to the member paid to the member's | 5 |
| designated beneficiary for the beneficiary's lifetime if | 6 |
| the beneficiary survives the member. | 7 |
| (4) Single life annuity with 60, 120, or 180 months of | 8 |
| guaranteed payments. Under this option, the member | 9 |
| receives a reduced monthly payment for his or her lifetime. | 10 |
| If the member dies before receiving at least the number of | 11 |
| guaranteed monthly payments, then the member's beneficiary | 12 |
| or estate receives the remaining guaranteed number of | 13 |
| monthly payments. | 14 |
| The Board must determine the participant's optional form of | 15 |
| annuity provided under this Section by taking into account the | 16 |
| appropriate actuarial assumptions, including without | 17 |
| limitation the participant's and beneficiary's age; applicable | 18 |
| mortality tables; and any other factors that the Board | 19 |
| determines to be relevant. For this purpose, the participant's | 20 |
| joint and survivor annuity should result in no significant | 21 |
| increase to the System's unfunded actuarial accrued liability | 22 |
| determined as of the most recent actuarial valuation, based on | 23 |
| the same assumptions and methods used to develop and report the | 24 |
| System's actuarial accrued liability and actuarial value of | 25 |
| assets under Statement No. 25 of Governmental Accounting | 26 |
| Standards Board or any subsequent applicable Statement. |
|
|
|
09600SB1292ham001 |
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| 1 |
| (40 ILCS 5/16-325 new)
| 2 |
| Sec. 16-325. Automatic annual increases for later | 3 |
| entrants. Notwithstanding any other provision of this Article, | 4 |
| a person receiving a retirement or survivor annuity under | 5 |
| Sections 16-315 or 16-320 shall, on the first anniversary of | 6 |
| retirement, but not before attaining age 67, and annually | 7 |
| thereafter, have his or her annuity increased by (1) 3% or (2) | 8 |
| one-half of the percentage increase, if any, in the Consumer | 9 |
| Price Index for All Urban Consumers measured from the preceding | 10 |
| January 1 to the January 1 of the year during which the | 11 |
| increase is being granted, whichever is less, of the originally | 12 |
| granted annuity. | 13 |
| (40 ILCS 5/16-330 new)
| 14 |
| Sec. 16-330. Contributions by teachers; later entrants. | 15 |
| (a) Each teacher shall contribute 8% of each payment of | 16 |
| salary received by him or her for service as a teacher toward | 17 |
| the cost of his or her retirement annuity. | 18 |
| (b) Contributions shall be in the form of a deduction from | 19 |
| salary and shall be made notwithstanding that the salary paid | 20 |
| in cash to the teacher shall be reduced thereby below the | 21 |
| minimum prescribed by law or regulation. Each member is deemed | 22 |
| to consent and agree to the deductions from salary provided for | 23 |
| in this Article and shall receipt in full for salary or | 24 |
| compensation. |
|
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| 1 |
| (c) These contributions shall be picked up in the manner | 2 |
| provided in Section 16-152.1. | 3 |
| (d) In no event shall contributions be deducted from salary | 4 |
| in excess of (1) the Social Security Covered Wage Base for the | 5 |
| given calendar year or (2) $150,000, whichever is less. | 6 |
| (40 ILCS 5/16-335 new)
| 7 |
| Sec. 16-335. Refunds; later entrants. A teacher who ceases | 8 |
| to be a member, other than an annuitant, shall, upon written | 9 |
| request, receive a refund of his or her total contributions, | 10 |
| plus interest at (1) 3% or (2) one-half of the percentage | 11 |
| increase, if any, in the Consumer Price Index for All Urban | 12 |
| Consumers measured from the preceding January 1 to the January | 13 |
| 1 of the year during which the interest is being credited, | 14 |
| whichever is less, per year, not compounded. | 15 |
| Upon re-entry into service as a teacher, a former member | 16 |
| may reestablish any creditable service forfeited by acceptance | 17 |
| of a refund by paying to the System the full amount refunded, | 18 |
| plus interest at the actuarially assumed rate, not compounded, | 19 |
| from the date of payment of the refund to the date of | 20 |
| repayment. | 21 |
| (40 ILCS 5/16-340 new)
| 22 |
| Sec. 16-340. Re-entry after retirement; later entrants. | 23 |
| (a) An annuitant who re-enters service as a teacher shall | 24 |
| become a member on the date of re-entry and retirement annuity |
|
|
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| 1 |
| payments shall cease at that time. The teacher shall resume | 2 |
| contributions to the system on the date of re-entry at the | 3 |
| rates then in effect and shall begin to accrue additional | 4 |
| service credit. | 5 |
| (b) Upon subsequent retirement, the teacher shall be | 6 |
| entitled to a retirement annuity consisting of: (1) the amount | 7 |
| of retirement annuity previously granted and terminated by | 8 |
| re-entry into service and (2) the amount of additional | 9 |
| retirement annuity earned during the additional service. | 10 |
| (c) In computing the retirement annuity under subsection | 11 |
| (b) of this Section, the time that the teacher was on | 12 |
| retirement shall not interrupt the continuity of service for | 13 |
| the computation of final average salary and the additional | 14 |
| service shall be considered, together with service rendered | 15 |
| before the previous retirement, in establishing final average | 16 |
| salary. | 17 |
| (d) A person who re-enters service within 3 years after | 18 |
| retiring may qualify to have the retirement annuity computed as | 19 |
| though the member had not previously retired by paying to the | 20 |
| System, within 5 years after re-entry and prior to subsequent | 21 |
| retirement, in a lump-sum or in installment payments, in | 22 |
| accordance with rules adopted by the board, an amount equal to | 23 |
| all retirement annuity payments received, plus interest at the | 24 |
| actuarially assumed rate from the date retirement payments were | 25 |
| suspended to the date of repayment. |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| (40 ILCS 5/18-300 new)
| 2 |
| Sec. 18-300. Provisions applicable to later entrants. | 3 |
| (a) The provisions of this Article following this Section | 4 |
| apply only to judges who first become judges on or after August | 5 |
| 1, 2009, who are referred to as "later entrants". | 6 |
| (b) Except as provided in subsection (c) of this Section, | 7 |
| the Sections of this Article before this Section do not apply | 8 |
| to judges who first become judges on or after August 1, 2009. | 9 |
| (c) The following Sections are also applicable to judges | 10 |
| who first become judges on or after August 1, 2009: Sections | 11 |
| 18-101, 18-102, 18-103, 18-104, 18-105, 18-106, 18-107, | 12 |
| 18-108, 18-109, 18-110, 18-111, 18-112.5, 18-113, 18-114, | 13 |
| 18-116, 18-118, 18-119, 18-120, 18-120.1, 18-121, 18-126, | 14 |
| 18-126.1, 18-128.2, 18-131, and 18-132 and Sections 18-133.1 | 15 |
| through 18-169. | 16 |
| (d) To the extent that the Sections enumerated in | 17 |
| subsection (c) of this Section conflict with the Sections | 18 |
| following this Section, the Sections following this Section | 19 |
| shall control. | 20 |
| (e) To the extent that the applicable Sections are included | 21 |
| under subsection (c) of this Section, later entrants, including | 22 |
| survivors, are entitled to disability benefits under this | 23 |
| Article. | 24 |
| (40 ILCS 5/18-305 new)
| 25 |
| Sec. 18-305. Creditable service for later entrants. |
|
|
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| 1 |
| (a) Creditable service under this Article is subject to the | 2 |
| following conditions: | 3 |
| (1) The maximum amount of creditable service a | 4 |
| participant may establish under this Article is 35 years. | 5 |
| (2) A participant may only establish creditable | 6 |
| service for his or her service for employment as a judge, | 7 |
| as defined in Section 16-106. Except as provided in | 8 |
| subsection (b), a participant may not establish creditable | 9 |
| service for any other service. | 10 |
| (3) A participant may not convert any unused sick leave | 11 |
| or vacation into creditable service under this Article. | 12 |
| (b) A participant may establish creditable service for up | 13 |
| to 2 years of military service before becoming a participant | 14 |
| under this Article by paying to the System (1) employee | 15 |
| contributions based upon the participant's salary upon | 16 |
| becoming a participant under this Article, (2) an amount | 17 |
| determined by the board to be equal to the employer's normal | 18 |
| cost of the benefit, and (3) interest on items (1) and (2) at | 19 |
| the actuarially assumed rate from the date of first employment | 20 |
| in the System to the date of payment. | 21 |
| For the purposes of this subsection (b), "military service" | 22 |
| means periods a person spent in active service with the | 23 |
| military forces of the United States for which the person | 24 |
| received a discharge other than dishonorable. | 25 |
| (40 ILCS 5/18-310 new)
|
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| Sec. 18-310. Retirement annuity; conditions for | 2 |
| eligibility; later entrants. A participant may claim his or her | 3 |
| retirement annuity upon attainment of (1) the full (normal) | 4 |
| retirement age as provided in the federal Social Security Act | 5 |
| with at least 10 years of service credit or (2) age 62 with at | 6 |
| least 35 years of service credit. | 7 |
| A participant may claim a reduced retirement annuity under | 8 |
| subsection (c) of Section 16-315 if he or she is at least 62 | 9 |
| years of age and has at least 10 years of service. | 10 |
| The annuity shall begin with the first full calendar month | 11 |
| specified in the participant's application therefor, the first | 12 |
| day of which shall not be before the date of withdrawal as | 13 |
| approved by the board. Regardless of the date of withdrawal, | 14 |
| the annuity need not begin within one year of application | 15 |
| therefor. | 16 |
| (40 ILCS 5/18-315 new)
| 17 |
| Sec. 18-315. Retirement life annuity; amount; employer | 18 |
| contribution; later entrants. | 19 |
| (a) With respect to late entrants: | 20 |
| (1) "Final average salary" means the monthly salary | 21 |
| obtained by dividing the total salary of a participant | 22 |
| during the period of: (A) the 96 consecutive months of | 23 |
| service within the last 120 months of service in which the | 24 |
| total salary was the highest or (B) the total period of | 25 |
| service, if less than 96 months, by the number of months of |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| service in such period; provided that for the purposes of a | 2 |
| retirement annuity the average salary for the last 12 | 3 |
| months of the 96 months shall not exceed the final average | 4 |
| salary by more than 25%. | 5 |
| In no event shall the monthly salary used to determined | 6 |
| final average salary exceed (i) the Social Security Covered | 7 |
| Wage Base for the given month of service or (ii) $12,500, | 8 |
| whichever is less. | 9 |
| (2) "Salary" means a participant's base salary and does | 10 |
| not include any overtime or bonuses. | 11 |
| (b) The retirement life annuity shall be 2% of final | 12 |
| average salary for each year of service. | 13 |
| (c) For a participant retiring after attaining age 62, the | 14 |
| retirement life annuity shall be reduced by one-half of 1% for | 15 |
| each month that the participant's age is under the full | 16 |
| (normal) retirement age as provided in the federal Social | 17 |
| Security Act. | 18 |
| (40 ILCS 5/18-320 new)
| 19 |
| Sec. 18-320. Alternative forms of annuities for later | 20 |
| entrants. A participant may choose any of the following types | 21 |
| of annuities in lieu of receiving the full annuity provided in | 22 |
| Section 14-315: | 23 |
| (1) Joint and 50% survivor annuity. Under this form of | 24 |
| payment, the participant receives a reduced monthly | 25 |
| payment for his or her lifetime with a payment equal to 50% |
|
|
|
09600SB1292ham001 |
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|
| 1 |
| of the reduced amount payable to the participant paid to | 2 |
| the participant's designated beneficiary for the | 3 |
| beneficiary's lifetime if the beneficiary survives the | 4 |
| participant. | 5 |
| (2) Joint and 75% survivor annuity. Under this form of | 6 |
| payment, the participant receives a reduced monthly | 7 |
| payment for his or her lifetime with a payment equal to 75% | 8 |
| of the reduced amount payable to the participant paid to | 9 |
| the participant's designated beneficiary for the | 10 |
| beneficiary's lifetime if the beneficiary survives the | 11 |
| participant. | 12 |
| (3) Joint and 100% survivor annuity. Under this form of | 13 |
| payment, the participant receives a reduced monthly | 14 |
| payment for his or her lifetime with a payment equal to | 15 |
| 100% of the reduced amount payable to the participant paid | 16 |
| to the participant's designated beneficiary for the | 17 |
| beneficiary's lifetime if the beneficiary survives the | 18 |
| participant. | 19 |
| (4) Single life annuity with 60, 120, or 180 months of | 20 |
| guaranteed payments. Under this option, the participant | 21 |
| receives a reduced monthly payment for his or her lifetime. | 22 |
| If the participant dies before receiving at least the | 23 |
| number of guaranteed monthly payments, then the | 24 |
| participant's beneficiary or estate receives the remaining | 25 |
| guaranteed number of monthly payments. | 26 |
| The Board must determine the participant's optional form of |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| annuity provided under this Section by taking into account the | 2 |
| appropriate actuarial assumptions, including without | 3 |
| limitation the participant's and beneficiary's age; applicable | 4 |
| mortality tables; and any other factors that the Board | 5 |
| determines to be relevant. For this purpose, the participant's | 6 |
| joint and survivor annuity should result in no significant | 7 |
| increase to the System's unfunded actuarial accrued liability | 8 |
| determined as of the most recent actuarial valuation, based on | 9 |
| the same assumptions and methods used to develop and report the | 10 |
| System's actuarial accrued liability and actuarial value of | 11 |
| assets under Statement No. 25 of Governmental Accounting | 12 |
| Standards Board or any subsequent applicable Statement. | 13 |
| (40 ILCS 5/18-325 new)
| 14 |
| Sec. 18-325. Automatic annual increases for later | 15 |
| entrants. Notwithstanding any other provision of this Article, | 16 |
| a person receiving a retirement or survivor annuity under | 17 |
| Sections 16-315 or 16-320 shall, on the first anniversary of | 18 |
| retirement, but not before attaining age 67, and annually | 19 |
| thereafter, have his or her annuity increased by (1) 3% or (2) | 20 |
| one-half of the percentage increase, if any, in the Consumer | 21 |
| Price Index for All Urban Consumers measured from the preceding | 22 |
| January 1 to the January 1 of the year during which the | 23 |
| interest is being credited, whichever is less, of the | 24 |
| originally granted annuity. |
|
|
|
09600SB1292ham001 |
- 44 - |
LRB096 08007 AMC 26625 a |
|
| 1 |
| (40 ILCS 5/18-330 new)
| 2 |
| Sec. 18-330. Contributions by judges; later entrants. | 3 |
| (a) Each judge shall contribute 7% of each payment of | 4 |
| salary received by him or her for service as a judge toward the | 5 |
| cost of his or her retirement annuity. | 6 |
| (b) Contributions shall be in the form of a deduction from | 7 |
| salary and shall be made notwithstanding that the salary paid | 8 |
| in cash to the judge shall be reduced thereby below the minimum | 9 |
| prescribed by law or regulation. Each participant is deemed to | 10 |
| consent and agree to the deductions from salary provided for in | 11 |
| this Article and shall receipt in full for salary or | 12 |
| compensation. | 13 |
| (c) These contributions shall be picked up in the manner | 14 |
| provided in Section 18-133.1. | 15 |
| (d) In no event shall contributions be deducted from salary | 16 |
| in excess of (1) the Social Security Covered Wage Base for the | 17 |
| given calendar year or (2) $150,000, whichever is less. | 18 |
| (40 ILCS 5/18-335 new)
| 19 |
| Sec. 18-335. Refunds; later entrants. A judge who ceases to | 20 |
| be a participant, other than an annuitant, shall, upon written | 21 |
| request, receive a refund of his or her total contributions, | 22 |
| plus interest at (1) 3% or (2) one-half of the percentage | 23 |
| increase, if any, in the Consumer Price Index for All Urban | 24 |
| Consumers measured from the preceding January 1 to the January | 25 |
| 1 of the year during which the interest is being credited, |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| whichever is less, per year, not compounded. | 2 |
| Upon re-entry into service as a judge, a former participant | 3 |
| may reestablish any creditable service forfeited by acceptance | 4 |
| of a refund by paying to the System the full amount refunded, | 5 |
| plus interest at the actuarially assumed rate, not compounded, | 6 |
| from the date of payment of the refund to the date of | 7 |
| repayment. | 8 |
| (40 ILCS 5/18-340 new)
| 9 |
| Sec. 18-340. Re-entry after retirement; later entrants. | 10 |
| (a) An annuitant who re-enters service as a judge shall | 11 |
| become a participant on the date of re-entry and retirement | 12 |
| annuity payments shall cease at that time. The judge shall | 13 |
| resume contributions to the system on the date of re-entry at | 14 |
| the rates then in effect and shall begin to accrue additional | 15 |
| service credit. | 16 |
| (b) Upon subsequent retirement, the judge shall be entitled | 17 |
| to a retirement annuity consisting of: (1) the amount of | 18 |
| retirement annuity previously granted and terminated by | 19 |
| re-entry into service and (2) the amount of additional | 20 |
| retirement annuity earned during the additional service. | 21 |
| (c) In computing the retirement annuity under subsection | 22 |
| (b) of this Section, the time that the judge was on retirement | 23 |
| shall not interrupt the continuity of service for the | 24 |
| computation of final average salary and the additional service | 25 |
| shall be considered, together with service rendered before the |
|
|
|
09600SB1292ham001 |
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LRB096 08007 AMC 26625 a |
|
| 1 |
| previous retirement, in establishing final average salary. | 2 |
| (d) A person who re-enters service within 3 years after | 3 |
| retiring may qualify to have the retirement annuity computed as | 4 |
| though the participant had not previously retired by paying to | 5 |
| the System, within 5 years after re-entry and prior to | 6 |
| subsequent retirement, in a lump-sum or in installment | 7 |
| payments, in accordance with rules adopted by the board, an | 8 |
| amount equal to all retirement annuity payments received, plus | 9 |
| interest at the actuarially assumed rate from the date | 10 |
| retirement payments were suspended to the date of repayment. | 11 |
| Section 99. Effective date. This Act takes effect upon | 12 |
| becoming law.".
|
|