Full Text of SB2938 97th General Assembly
SB2938 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2938 Introduced 2/1/2012, by Sen. Steven M. Landek SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-105 | from Ch. 108 1/2, par. 2-105 | 40 ILCS 5/2-117 | from Ch. 108 1/2, par. 2-117 | 40 ILCS 5/2-117.4 new | | 40 ILCS 5/14-103.05 | from Ch. 108 1/2, par. 14-103.05 | 40 ILCS 5/14-104.14 new | |
|
Amends the General Assembly and State Employees Articles of the Illinois Pension Code. Provides for a person first elected or appointed to the Senate after the effective date of the amendatory Act to be a member of the State Employees' Retirement System of Illinois (rather than the General Assembly Retirement System). Allows a member of the Senate who is first appointed to that office on or after February 1, 2011 and who, prior to that date, has no service credit in the General Assembly Retirement System to transfer creditable service earned in the General Assembly Retirement System to the State Employees' Retirement System of Illinois for a limited time. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
|
| | | SB2938 | | LRB097 15497 JDS 60612 b |
|
| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-105, 2-117, and 14-103.05 and by adding Sections | 6 | | 2-117.4 and 14-104.14 as follows:
| 7 | | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
| 8 | | Sec. 2-105. Member. "Member": Members of the General | 9 | | Assembly of this
State including persons who enter military | 10 | | service while a member of the
General Assembly and any person | 11 | | serving as Governor,
Lieutenant Governor, Secretary of State, | 12 | | Treasurer, Comptroller, or Attorney
General for the period of | 13 | | service in such office.
| 14 | | Any person who has served for 10 or more years as Clerk or | 15 | | Assistant Clerk
of the House of Representatives, Secretary or | 16 | | Assistant Secretary of the
Senate, or any combination thereof, | 17 | | may elect to become a member
of this system while thenceforth | 18 | | engaged in such service by filing a
written election with the | 19 | | board. Any person so electing shall be
deemed an active member | 20 | | of the General Assembly for the purpose of validating
and | 21 | | transferring any service credits earned under any of the funds | 22 | | and systems
established under Articles 3 through 18 of this | 23 | | Code.
|
| | | SB2938 | - 2 - | LRB097 15497 JDS 60612 b |
|
| 1 | | "Member" does not include a person first elected or | 2 | | appointed to the Senate on or after the effective date of this | 3 | | amendatory Act of the 97th General Assembly. | 4 | | (Source: P.A. 85-1008.)
| 5 | | (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
| 6 | | Sec. 2-117. Participants - Election not to participate.
| 7 | | (a) Every person who was a member on November 1, 1947, or | 8 | | in military
service on such date, is subject to the provisions | 9 | | of this system beginning
upon such date, unless prior to such | 10 | | date he or she filed with the board a
written notice of | 11 | | election not to participate.
| 12 | | Every person who becomes a member after November 1, 1947, | 13 | | and who is
then not a participant becomes a participant | 14 | | beginning upon the date of
becoming a member unless (i) , | 15 | | within 24 months from that date, he or she has
filed with the | 16 | | board a written notice of election not to participate or (ii) | 17 | | within 6 months after the effective date of this amendatory Act | 18 | | of the 97th General Assembly, he or she has transferred, | 19 | | pursuant to Section 2-117.4, all of his or her credit | 20 | | accumulated under this Article to Article 14 .
| 21 | | (b) A member who has filed notice of an election not to | 22 | | participate
(and a former member who has not yet begun to | 23 | | receive a retirement
annuity under this Article) may become a | 24 | | participant with respect to the period
for which the member | 25 | | elected not to participate upon filing with the board,
before |
| | | SB2938 | - 3 - | LRB097 15497 JDS 60612 b |
|
| 1 | | April 1, 1993, a written rescission of the election not to | 2 | | participate.
Upon contributing an amount equal to the | 3 | | contributions he or she would have
made as a participant from | 4 | | November 1, 1947, or the date of becoming a member,
whichever | 5 | | is later, to the date of becoming a participant, with interest | 6 | | at the
rate of 4% per annum until the contributions are paid, | 7 | | the participant shall
receive credit for service as a member | 8 | | prior to the date of the rescission,
both before and after | 9 | | November 1, 1947. The required contributions shall be
made | 10 | | before commencement of the retirement annuity; otherwise no | 11 | | credit for
service prior to the date of participation shall be | 12 | | granted.
| 13 | | (Source: P.A. 86-273; 87-1265.)
| 14 | | (40 ILCS 5/2-117.4 new) | 15 | | Sec. 2-117.4. Transfer of creditable service to Article 14 | 16 | | fund. | 17 | | (a) A member of the Senate who is first appointed to that | 18 | | office on or after February 1, 2011 and who has accrued no | 19 | | service credit under this Article before that date may, within | 20 | | 6 months after the effective date of this Section, apply for | 21 | | the transfer of all of his or her creditable service | 22 | | accumulated under this System to the system established under | 23 | | Article 14. Such creditable service shall be transferred | 24 | | forthwith. Payment by this System to the system established | 25 | | under Article 14 shall be made at the same time and shall |
| | | SB2938 | - 4 - | LRB097 15497 JDS 60612 b |
|
| 1 | | consist of: | 2 | | (1) the amounts credited to the participant under this | 3 | | System through participant contributions, including | 4 | | interest, if any, on the date of the transfer; plus | 5 | | (2) employer contributions in an amount equal to the | 6 | | amount determined under clause (1). | 7 | | Participation in this System as to any credits transferred | 8 | | under this Section shall terminate on the date of transfer. | 9 | | (b) Any such employee who has credits and creditable | 10 | | service under the System may establish additional credits and | 11 | | creditable service for periods during which he or she could | 12 | | have elected to participate but did not so elect. Credits and | 13 | | creditable service may be established by payment to the System | 14 | | of an amount equal to the contributions he or she would have | 15 | | made if he or she had elected to participate, plus interest to | 16 | | the date of payment. | 17 | | (c) Any such employee may reinstate credits and creditable | 18 | | service terminated upon receipt of a refund, by payment to the | 19 | | System of the amount of the refund plus interest thereon to the | 20 | | date of payment.
| 21 | | (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
| 22 | | Sec. 14-103.05. Employee.
| 23 | | (a) Any person employed by a Department who receives salary
| 24 | | for personal services rendered to the Department on a warrant
| 25 | | issued pursuant to a payroll voucher certified by a Department |
| | | SB2938 | - 5 - | LRB097 15497 JDS 60612 b |
|
| 1 | | and drawn
by the State Comptroller upon the State Treasurer, | 2 | | including an elected
official described in subparagraph (d) of | 3 | | Section 14-104, shall become
an employee for purpose of | 4 | | membership in the Retirement System on the
first day of such | 5 | | employment.
| 6 | | A person entering service on or after January 1, 1972 and | 7 | | prior to January
1, 1984 shall become a member as a condition | 8 | | of employment and shall begin
making contributions as of the | 9 | | first day of employment.
| 10 | | A person entering service on or after January 1, 1984 | 11 | | shall, upon completion
of 6 months of continuous service which | 12 | | is not interrupted by a break of more
than 2 months, become a | 13 | | member as a condition of employment. Contributions
shall begin | 14 | | the first of the month after completion of the qualifying | 15 | | period.
| 16 | | A person employed by the Chicago Metropolitan Agency for | 17 | | Planning on the effective date of this amendatory Act of the | 18 | | 95th General Assembly who was a member of this System as an | 19 | | employee of the Chicago Area Transportation Study and makes an | 20 | | election under Section 14-104.13 to participate in this System | 21 | | for his or her employment with the Chicago Metropolitan Agency | 22 | | for Planning.
| 23 | | The qualifying period of 6 months of service is not | 24 | | applicable to: (1)
a person who has been granted credit for | 25 | | service in a position covered by
the State Universities | 26 | | Retirement System, the Teachers' Retirement System
of the State |
| | | SB2938 | - 6 - | LRB097 15497 JDS 60612 b |
|
| 1 | | of Illinois, the General Assembly Retirement System, or the
| 2 | | Judges Retirement System of Illinois unless that service has | 3 | | been forfeited
under the laws of those systems; (2) a person | 4 | | entering service on or
after July 1, 1991 in a noncovered | 5 | | position; (3) a person to whom Section
14-108.2a or 14-108.2b | 6 | | applies; or (4) a person to whom subsection (a-5) of this | 7 | | Section applies.
| 8 | | (a-5) A person entering service on or after December 1, | 9 | | 2010 shall become a member as a condition of employment and | 10 | | shall begin making contributions as of the first day of | 11 | | employment. A person serving in the qualifying period on | 12 | | December 1, 2010 will become a member on December 1, 2010 and | 13 | | shall begin making contributions as of December 1, 2010. | 14 | | (a-10) A person first elected or appointed to the Senate on | 15 | | or after the effective date of this amendatory Act of the 97th | 16 | | General Assembly shall be deemed an employee under this | 17 | | Article, unless that person elects not to participate in this | 18 | | System. | 19 | | (a-11) A person who elects to transfer his or her | 20 | | creditable service to this System under Section 2-117.4 shall | 21 | | be deemed an employee under this Article upon receipt of the | 22 | | amounts transferred to the System under Section 2-117.4. | 23 | | (b) The term "employee" does not include the following:
| 24 | | (1) except as otherwise provided in this Section, | 25 | | members of the State Legislature, and persons electing to | 26 | | become
members of the General Assembly Retirement System |
| | | SB2938 | - 7 - | LRB097 15497 JDS 60612 b |
|
| 1 | | pursuant to Section 2-105;
| 2 | | (2) incumbents of offices normally filled by vote of | 3 | | the people;
| 4 | | (3) except as otherwise provided in this Section, any | 5 | | person
appointed by the Governor with the advice and | 6 | | consent
of the Senate unless that person elects to | 7 | | participate in this system;
| 8 | | (3.1) any person serving as a commissioner of an ethics | 9 | | commission created under the State Officials and Employees | 10 | | Ethics Act unless that person elects to participate in this | 11 | | system with respect to that service as a commissioner;
| 12 | | (3.2) any person serving as a part-time employee in any | 13 | | of the following positions: Legislative Inspector General, | 14 | | Special Legislative Inspector General, employee of the | 15 | | Office of the Legislative Inspector General, Executive | 16 | | Director of the Legislative Ethics Commission, or staff of | 17 | | the Legislative Ethics Commission, regardless of whether | 18 | | he or she is in active service on or after July 8, 2004 | 19 | | (the effective date of Public Act 93-685), unless that | 20 | | person elects to participate in this System with respect to | 21 | | that service; in this item (3.2), a "part-time employee" is | 22 | | a person who is not required to work at least 35 hours per | 23 | | week; | 24 | | (3.3) any person who has made an election under Section | 25 | | 1-123 and who is serving either as legal counsel in the | 26 | | Office of the Governor or as Chief Deputy Attorney General;
|
| | | SB2938 | - 8 - | LRB097 15497 JDS 60612 b |
|
| 1 | | (4) except as provided in Section 14-108.2 or | 2 | | 14-108.2c, any person
who is covered or eligible to be | 3 | | covered by the Teachers' Retirement System of
the State of | 4 | | Illinois, the State Universities Retirement System, or the | 5 | | Judges
Retirement System of Illinois;
| 6 | | (5) an employee of a municipality or any other | 7 | | political subdivision
of the State;
| 8 | | (6) any person who becomes an employee after June 30, | 9 | | 1979 as a
public service employment program participant | 10 | | under the Federal
Comprehensive Employment and Training | 11 | | Act and whose wages or fringe
benefits are paid in whole or | 12 | | in part by funds provided under such Act;
| 13 | | (7) enrollees of the Illinois Young Adult Conservation | 14 | | Corps program,
administered by the Department of Natural | 15 | | Resources, authorized grantee
pursuant to Title VIII of the | 16 | | "Comprehensive Employment and Training Act of
1973", 29 USC | 17 | | 993, as now or hereafter amended;
| 18 | | (8) enrollees and temporary staff of programs | 19 | | administered by the
Department of Natural Resources under | 20 | | the Youth
Conservation Corps Act of 1970;
| 21 | | (9) any person who is a member of any professional | 22 | | licensing or
disciplinary board created under an Act | 23 | | administered by the Department of
Professional Regulation | 24 | | or a successor agency or created or re-created
after the | 25 | | effective date of this amendatory Act of 1997, and who | 26 | | receives
per diem compensation rather than a salary, |
| | | SB2938 | - 9 - | LRB097 15497 JDS 60612 b |
|
| 1 | | notwithstanding that such per diem
compensation is paid by | 2 | | warrant issued pursuant to a payroll voucher; such
persons | 3 | | have never been included in the membership of this System, | 4 | | and this
amendatory Act of 1987 (P.A. 84-1472) is not | 5 | | intended to effect any change in
the status of such | 6 | | persons;
| 7 | | (10) any person who is a member of the Illinois Health | 8 | | Care Cost
Containment Council, and receives per diem | 9 | | compensation rather than a
salary, notwithstanding that | 10 | | such per diem compensation is paid by warrant
issued | 11 | | pursuant to a payroll voucher; such persons have never been | 12 | | included
in the membership of this System, and this | 13 | | amendatory Act of 1987 is not
intended to effect any change | 14 | | in the status of such persons;
| 15 | | (11) any person who is a member of the Oil and Gas | 16 | | Board created by
Section 1.2 of the Illinois Oil and Gas | 17 | | Act, and receives per diem
compensation rather than a | 18 | | salary, notwithstanding that such per diem
compensation is | 19 | | paid by warrant issued pursuant to a payroll voucher;
| 20 | | (12) a person employed by the State Board of Higher | 21 | | Education in a position with the Illinois Century Network | 22 | | as of June 30, 2004, who remains continuously employed | 23 | | after that date by the Department of Central Management | 24 | | Services in a position with the Illinois Century Network | 25 | | and participates in the Article 15 system with respect to | 26 | | that employment;
|
| | | SB2938 | - 10 - | LRB097 15497 JDS 60612 b |
|
| 1 | | (13) any person who first becomes a member of the Civil | 2 | | Service Commission on or after January 1, 2012; | 3 | | (14) any person, other than the Director of Employment | 4 | | Security, who first becomes a member of the Board of Review | 5 | | of the Department of Employment Security on or after | 6 | | January 1, 2012; | 7 | | (15) any person who first becomes a member of the Civil | 8 | | Service Commission on or after January 1, 2012; | 9 | | (16) any person who first becomes a member of the | 10 | | Illinois Liquor Control Commission on or after January 1, | 11 | | 2012; | 12 | | (17) any person who first becomes a member of the | 13 | | Secretary of State Merit Commission on or after January 1, | 14 | | 2012; | 15 | | (18) any person who first becomes a member of the Human | 16 | | Rights Commission on or after January 1, 2012; | 17 | | (19) any person who first becomes a member of the State | 18 | | Mining Board on or after January 1, 2012; | 19 | | (20) any person who first becomes a member of the | 20 | | Property Tax Appeal Board on or after January 1, 2012; | 21 | | (21) any person who first becomes a member of the | 22 | | Illinois Racing Board on or after January 1, 2012; | 23 | | (22) any person who first becomes a member of the | 24 | | Department of State Police Merit Board on or after January | 25 | | 1, 2012; | 26 | | (23) any person who first becomes a member of the |
| | | SB2938 | - 11 - | LRB097 15497 JDS 60612 b |
|
| 1 | | Illinois State Toll Highway Authority on or after January | 2 | | 1, 2012; or | 3 | | (24) any person who first becomes a member of the | 4 | | Illinois State Board of Elections on or after January 1, | 5 | | 2012. | 6 | | (c) An individual who represents or is employed as an | 7 | | officer or employee of a statewide labor organization that | 8 | | represents members of this System may participate in the System | 9 | | and shall be deemed an employee, provided that (1) the | 10 | | individual has previously earned creditable service under this | 11 | | Article, (2) the individual files with the System an | 12 | | irrevocable election to become a participant within 6 months | 13 | | after the effective date of this amendatory Act of the 94th | 14 | | General Assembly, and (3) the individual does not receive | 15 | | credit for that employment under any other provisions of this | 16 | | Code. An employee under this subsection (c) is responsible for | 17 | | paying to the System both (i) employee contributions based on | 18 | | the actual compensation received for service with the labor | 19 | | organization and (ii) employer contributions based on the | 20 | | percentage of payroll certified by the board; all or any part | 21 | | of these contributions may be paid on the employee's behalf or | 22 | | picked up for tax purposes (if authorized under federal law) by | 23 | | the labor organization. | 24 | | A person who is an employee as defined in this subsection | 25 | | (c) may establish service credit for similar employment prior | 26 | | to becoming an employee under this subsection by paying to the |
| | | SB2938 | - 12 - | LRB097 15497 JDS 60612 b |
|
| 1 | | System for that employment the contributions specified in this | 2 | | subsection, plus interest at the effective rate from the date | 3 | | of service to the date of payment. However, credit shall not be | 4 | | granted under this subsection (c) for any such prior employment | 5 | | for which the applicant received credit under any other | 6 | | provision of this Code or during which the applicant was on a | 7 | | leave of absence.
| 8 | | (Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
| 9 | | (40 ILCS 5/14-104.14 new) | 10 | | Sec. 14-104.14. Service transferred from Article 2. | 11 | | Service also includes any period as a participant for which | 12 | | credit was established under Article 2 of this Code, subject to | 13 | | the following conditions: | 14 | | (1) the credits accrued for such employment under | 15 | | Article 2 have been transferred to this System; and | 16 | | (2) the participant has contributed to this System an | 17 | | amount equal to (A) employee contributions at the rate in | 18 | | effect for noncoordinated eligible creditable service at | 19 | | the date of membership in this System, based upon the | 20 | | salary in effect during such period of service, plus (B) | 21 | | the employer's share of the normal cost under this System | 22 | | for each year that credit is being established, based on | 23 | | the salary in effect during such period of service, plus | 24 | | (C) regular interest, compounded annually, less (D) the | 25 | | amount transferred on behalf of the participant under |
| | | SB2938 | - 13 - | LRB097 15497 JDS 60612 b |
|
| 1 | | Section 2-117.4. | 2 | | Credit established under this Section shall be deemed | 3 | | noncoordinated eligible creditable service as defined in | 4 | | Section 14-110.
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
|
|