Illinois General Assembly - Full Text of SB2156
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Full Text of SB2156  97th General Assembly

SB2156 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2156

 

Introduced 2/10/2011, by Sen. Bill Brady

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-162
40 ILCS 5/14-152.1
40 ILCS 5/15-198
40 ILCS 5/16-203
40 ILCS 5/18-169

    Amends the General Assembly, State Employee, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning on the effective date of the amendatory Act, every new benefit increase is contingent upon each affected pension or retirement system (i) having been at least 90% funded according to its most recent annual actuarial valuation and (ii) having received any required State contributions that have come due since the most recent annual actuarial valuation. Specifies that a new benefit increase that does not satisfy this additional requirement is null and void, unless the enactment of that new benefit increase is required to maintain qualified plan status.


LRB097 06142 JDS 46216 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2156LRB097 06142 JDS 46216 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 2-162, 14-152.1, 15-198, 16-203, and 18-169 as
6follows:
 
7    (40 ILCS 5/2-162)
8    Sec. 2-162. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after the effective date of this
15amendatory Act of the 94th General Assembly.
16    (b) Notwithstanding any other provision of this Code or any
17subsequent amendment to this Code, every new benefit increase
18is subject to this Section and shall be deemed to be granted
19only in conformance with and contingent upon compliance with
20the provisions of this Section.
21    (c) The Public Act enacting a new benefit increase must
22identify and provide for payment to the System of additional
23funding at least sufficient to fund the resulting annual

 

 

SB2156- 2 -LRB097 06142 JDS 46216 b

1increase in cost to the System as it accrues.
2    Every new benefit increase is contingent upon the General
3Assembly providing the additional funding required under this
4subsection. The Commission on Government Forecasting and
5Accountability shall analyze whether adequate additional
6funding has been provided for the new benefit increase and
7shall report its analysis to the Public Pension Division of the
8Department of Financial and Professional Regulation. A new
9benefit increase created by a Public Act that does not include
10the additional funding required under this subsection is null
11and void. If the Public Pension Division determines that the
12additional funding provided for a new benefit increase under
13this subsection is or has become inadequate, it may so certify
14to the Governor and the State Comptroller and, in the absence
15of corrective action by the General Assembly, the new benefit
16increase shall expire at the end of the fiscal year in which
17the certification is made.
18    (c-5) Notwithstanding any other provision of this Code or
19any subsequent amendment of this Code, beginning on the
20effective date of this amendatory Act of the 97th General
21Assembly, every new benefit increase is also contingent upon
22each pension or retirement system that is created under Article
232, 14, 15, 16, or 18 (i) having been at least 90% funded
24according to its most recent annual actuarial valuation and
25(ii) having received any required State contributions that have
26come due since the most recent annual actuarial valuation. A

 

 

SB2156- 3 -LRB097 06142 JDS 46216 b

1new benefit increase that does not satisfy this additional
2requirement is null and void, unless the enactment of that new
3benefit increase is required to maintain qualified plan status.
4    (d) Every new benefit increase shall expire 5 years after
5its effective date or on such earlier date as may be specified
6in the language enacting the new benefit increase or provided
7under subsection (c). This does not prevent the General
8Assembly from extending or re-creating a new benefit increase
9by law.
10    (e) Except as otherwise provided in the language creating
11the new benefit increase, a new benefit increase that expires
12under this Section continues to apply to persons who applied
13and qualified for the affected benefit while the new benefit
14increase was in effect and to the affected beneficiaries and
15alternate payees of such persons, but does not apply to any
16other person, including without limitation a person who
17continues in service after the expiration date and did not
18apply and qualify for the affected benefit while the new
19benefit increase was in effect.
20(Source: P.A. 94-4, eff. 6-1-05.)
 
21    (40 ILCS 5/14-152.1)
22    Sec. 14-152.1. Application and expiration of new benefit
23increases.
24    (a) As used in this Section, "new benefit increase" means
25an increase in the amount of any benefit provided under this

 

 

SB2156- 4 -LRB097 06142 JDS 46216 b

1Article, or an expansion of the conditions of eligibility for
2any benefit under this Article, that results from an amendment
3to this Code that takes effect after June 1, 2005 (the
4effective date of Public Act 94-4). "New benefit increase",
5however, does not include any benefit increase resulting from
6the changes made to this Article by this amendatory Act of the
796th General Assembly.
8    (b) Notwithstanding any other provision of this Code or any
9subsequent amendment to this Code, every new benefit increase
10is subject to this Section and shall be deemed to be granted
11only in conformance with and contingent upon compliance with
12the provisions of this Section.
13    (c) The Public Act enacting a new benefit increase must
14identify and provide for payment to the System of additional
15funding at least sufficient to fund the resulting annual
16increase in cost to the System as it accrues.
17    Every new benefit increase is contingent upon the General
18Assembly providing the additional funding required under this
19subsection. The Commission on Government Forecasting and
20Accountability shall analyze whether adequate additional
21funding has been provided for the new benefit increase and
22shall report its analysis to the Public Pension Division of the
23Department of Financial and Professional Regulation. A new
24benefit increase created by a Public Act that does not include
25the additional funding required under this subsection is null
26and void. If the Public Pension Division determines that the

 

 

SB2156- 5 -LRB097 06142 JDS 46216 b

1additional funding provided for a new benefit increase under
2this subsection is or has become inadequate, it may so certify
3to the Governor and the State Comptroller and, in the absence
4of corrective action by the General Assembly, the new benefit
5increase shall expire at the end of the fiscal year in which
6the certification is made.
7    (c-5) Notwithstanding any other provision of this Code or
8any subsequent amendment of this Code, beginning on the
9effective date of this amendatory Act of the 97th General
10Assembly, every new benefit increase is also contingent upon
11each pension or retirement system that is created under Article
122, 14, 15, 16, or 18 (i) having been at least 90% funded
13according to its most recent annual actuarial valuation and
14(ii) having received any required State contributions that have
15come due since the most recent annual actuarial valuation. A
16new benefit increase that does not satisfy this additional
17requirement is null and void, unless the enactment of that new
18benefit increase is required to maintain qualified plan status.
19    (d) Every new benefit increase shall expire 5 years after
20its effective date or on such earlier date as may be specified
21in the language enacting the new benefit increase or provided
22under subsection (c). This does not prevent the General
23Assembly from extending or re-creating a new benefit increase
24by law.
25    (e) Except as otherwise provided in the language creating
26the new benefit increase, a new benefit increase that expires

 

 

SB2156- 6 -LRB097 06142 JDS 46216 b

1under this Section continues to apply to persons who applied
2and qualified for the affected benefit while the new benefit
3increase was in effect and to the affected beneficiaries and
4alternate payees of such persons, but does not apply to any
5other person, including without limitation a person who
6continues in service after the expiration date and did not
7apply and qualify for the affected benefit while the new
8benefit increase was in effect.
9(Source: P.A. 96-37, eff. 7-13-09.)
 
10    (40 ILCS 5/15-198)
11    Sec. 15-198. Application and expiration of new benefit
12increases.
13    (a) As used in this Section, "new benefit increase" means
14an increase in the amount of any benefit provided under this
15Article, or an expansion of the conditions of eligibility for
16any benefit under this Article, that results from an amendment
17to this Code that takes effect after the effective date of this
18amendatory Act of the 94th General Assembly.
19    (b) Notwithstanding any other provision of this Code or any
20subsequent amendment to this Code, every new benefit increase
21is subject to this Section and shall be deemed to be granted
22only in conformance with and contingent upon compliance with
23the provisions of this Section.
24    (c) The Public Act enacting a new benefit increase must
25identify and provide for payment to the System of additional

 

 

SB2156- 7 -LRB097 06142 JDS 46216 b

1funding at least sufficient to fund the resulting annual
2increase in cost to the System as it accrues.
3    Every new benefit increase is contingent upon the General
4Assembly providing the additional funding required under this
5subsection. The Commission on Government Forecasting and
6Accountability shall analyze whether adequate additional
7funding has been provided for the new benefit increase and
8shall report its analysis to the Public Pension Division of the
9Department of Financial and Professional Regulation. A new
10benefit increase created by a Public Act that does not include
11the additional funding required under this subsection is null
12and void. If the Public Pension Division determines that the
13additional funding provided for a new benefit increase under
14this subsection is or has become inadequate, it may so certify
15to the Governor and the State Comptroller and, in the absence
16of corrective action by the General Assembly, the new benefit
17increase shall expire at the end of the fiscal year in which
18the certification is made.
19    (c-5) Notwithstanding any other provision of this Code or
20any subsequent amendment of this Code, beginning on the
21effective date of this amendatory Act of the 97th General
22Assembly, every new benefit increase is also contingent upon
23each pension or retirement system that is created under Article
242, 14, 15, 16, or 18 (i) having been at least 90% funded
25according to its most recent annual actuarial valuation and
26(ii) having received any required State contributions that have

 

 

SB2156- 8 -LRB097 06142 JDS 46216 b

1come due since the most recent annual actuarial valuation. A
2new benefit increase that does not satisfy this additional
3requirement is null and void, unless the enactment of that new
4benefit increase is required to maintain qualified plan status.
5    (d) Every new benefit increase shall expire 5 years after
6its effective date or on such earlier date as may be specified
7in the language enacting the new benefit increase or provided
8under subsection (c). This does not prevent the General
9Assembly from extending or re-creating a new benefit increase
10by law.
11    (e) Except as otherwise provided in the language creating
12the new benefit increase, a new benefit increase that expires
13under this Section continues to apply to persons who applied
14and qualified for the affected benefit while the new benefit
15increase was in effect and to the affected beneficiaries and
16alternate payees of such persons, but does not apply to any
17other person, including without limitation a person who
18continues in service after the expiration date and did not
19apply and qualify for the affected benefit while the new
20benefit increase was in effect.
21(Source: P.A. 94-4, eff. 6-1-05.)
 
22    (40 ILCS 5/16-203)
23    Sec. 16-203. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

SB2156- 9 -LRB097 06142 JDS 46216 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to this Article by this amendatory Act of the
895th General Assembly.
9    (b) Notwithstanding any other provision of this Code or any
10subsequent amendment to this Code, every new benefit increase
11is subject to this Section and shall be deemed to be granted
12only in conformance with and contingent upon compliance with
13the provisions of this Section.
14    (c) The Public Act enacting a new benefit increase must
15identify and provide for payment to the System of additional
16funding at least sufficient to fund the resulting annual
17increase in cost to the System as it accrues.
18    Every new benefit increase is contingent upon the General
19Assembly providing the additional funding required under this
20subsection. The Commission on Government Forecasting and
21Accountability shall analyze whether adequate additional
22funding has been provided for the new benefit increase and
23shall report its analysis to the Public Pension Division of the
24Department of Financial and Professional Regulation. A new
25benefit increase created by a Public Act that does not include
26the additional funding required under this subsection is null

 

 

SB2156- 10 -LRB097 06142 JDS 46216 b

1and void. If the Public Pension Division determines that the
2additional funding provided for a new benefit increase under
3this subsection is or has become inadequate, it may so certify
4to the Governor and the State Comptroller and, in the absence
5of corrective action by the General Assembly, the new benefit
6increase shall expire at the end of the fiscal year in which
7the certification is made.
8    (c-5) Notwithstanding any other provision of this Code or
9any subsequent amendment of this Code, beginning on the
10effective date of this amendatory Act of the 97th General
11Assembly, every new benefit increase is also contingent upon
12each pension or retirement system that is created under Article
132, 14, 15, 16, or 18 (i) having been at least 90% funded
14according to its most recent annual actuarial valuation and
15(ii) having received any required State contributions that have
16come due since the most recent annual actuarial valuation. A
17new benefit increase that does not satisfy this additional
18requirement is null and void, unless the enactment of that new
19benefit increase is required to maintain qualified plan status.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

SB2156- 11 -LRB097 06142 JDS 46216 b

1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
11    (40 ILCS 5/18-169)
12    Sec. 18-169. Application and expiration of new benefit
13increases.
14    (a) As used in this Section, "new benefit increase" means
15an increase in the amount of any benefit provided under this
16Article, or an expansion of the conditions of eligibility for
17any benefit under this Article, that results from an amendment
18to this Code that takes effect after the effective date of this
19amendatory Act of the 94th General Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

SB2156- 12 -LRB097 06142 JDS 46216 b

1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Financial and Professional Regulation. A new
11benefit increase created by a Public Act that does not include
12the additional funding required under this subsection is null
13and void. If the Public Pension Division determines that the
14additional funding provided for a new benefit increase under
15this subsection is or has become inadequate, it may so certify
16to the Governor and the State Comptroller and, in the absence
17of corrective action by the General Assembly, the new benefit
18increase shall expire at the end of the fiscal year in which
19the certification is made.
20    (c-5) Notwithstanding any other provision of this Code or
21any subsequent amendment of this Code, beginning on the
22effective date of this amendatory Act of the 97th General
23Assembly, every new benefit increase is also contingent upon
24each pension or retirement system that is created under Article
252, 14, 15, 16, or 18 (i) having been at least 90% funded
26according to its most recent annual actuarial valuation and

 

 

SB2156- 13 -LRB097 06142 JDS 46216 b

1(ii) having received any required State contributions that have
2come due since the most recent annual actuarial valuation. A
3new benefit increase that does not satisfy this additional
4requirement is null and void, unless the enactment of that new
5benefit increase is required to maintain qualified plan status.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including without limitation a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 94-4, eff. 6-1-05.)