Full Text of HB1166 98th General Assembly
HB1166ham001 98TH GENERAL ASSEMBLY | Rep. Michael J. Madigan Filed: 2/26/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1166
| 2 | | AMENDMENT NO. ______. Amend House Bill 1166 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 2-126, 14-133, 15-157, 1and 16-152 and by | 6 | | adding Sections 2-105.1, 14-103.40, 15-107.1, and 16-106.4 as | 7 | | follows: | 8 | | (40 ILCS 5/2-105.1 new) | 9 | | Sec. 2-105.1. Tier I participant. "Tier I participant": A | 10 | | participant who first became a participant before January 1, | 11 | | 2011.
| 12 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 13 | | Sec. 2-126. Contributions by participants.
| 14 | | (a) Each participant shall contribute toward the cost of | 15 | | his or her
retirement annuity a percentage of each payment of |
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| 1 | | salary received by him or
her for service as a member as | 2 | | follows: for service between October 31, 1947
and January 1, | 3 | | 1959, 5%; for service between January 1, 1959 and June 30, | 4 | | 1969,
6%; for service between July 1, 1969 and January 10, | 5 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 6 | | service after December 31, 1981, 8 1/2%.
| 7 | | (a-5) Beginning July 1, 2013, in addition to the | 8 | | contributions otherwise required under this Article, each Tier | 9 | | I participant shall contribute toward the cost of his or her
| 10 | | retirement annuity 5% of each payment of salary received by him | 11 | | or
her for service as a member. | 12 | | (b) Beginning August 2, 1949, each male participant, and | 13 | | from July 1,
1971, each female participant shall contribute | 14 | | towards the cost of the
survivor's annuity 2% of salary.
| 15 | | A participant who has no eligible survivor's annuity | 16 | | beneficiary may elect
to cease making contributions for | 17 | | survivor's annuity under this subsection.
A survivor's annuity | 18 | | shall not be payable upon the death of a person who has
made | 19 | | this election, unless prior to that death the election has been | 20 | | revoked
and the amount of the contributions that would have | 21 | | been paid under this
subsection in the absence of the election | 22 | | is paid to the System, together
with interest at the rate of 4% | 23 | | per year from the date the contributions
would have been made | 24 | | to the date of payment.
| 25 | | (c) Beginning July 1, 1967, each participant shall | 26 | | contribute 1% of
salary towards the cost of automatic increase |
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| 1 | | in annuity provided in
Section 2-119.1. These contributions | 2 | | shall be made concurrently with
contributions for retirement | 3 | | annuity purposes.
| 4 | | (d) In addition, each participant serving as an officer of | 5 | | the General
Assembly shall contribute, for the same purposes | 6 | | and at the same rates
as are required of a regular participant, | 7 | | on each additional payment
received as an officer. If the | 8 | | participant serves as an
officer for at least 2 but less than 4 | 9 | | years, he or she shall
contribute an amount equal to the amount | 10 | | that would have been contributed
had the participant served as | 11 | | an officer for 4 years. Persons who serve
as officers in the | 12 | | 87th General Assembly but cannot receive the additional
payment | 13 | | to officers because of the ban on increases in salary during | 14 | | their
terms may nonetheless make contributions based on those | 15 | | additional payments
for the purpose of having the additional | 16 | | payments included in their highest
salary for annuity purposes; | 17 | | however, persons electing to make these
additional | 18 | | contributions must also pay an amount representing the
| 19 | | corresponding employer contributions, as calculated by the | 20 | | System.
| 21 | | (e) Notwithstanding any other provision of this Article, | 22 | | the required contribution of a participant who first becomes a | 23 | | participant on or after January 1, 2011 shall not exceed the | 24 | | contribution that would be due under this Article if that | 25 | | participant's highest salary for annuity purposes were | 26 | | $106,800, plus any increases in that amount under Section |
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| 1 | | 2-108.1. | 2 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 3 | | (40 ILCS 5/14-103.40 new) | 4 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of | 5 | | this System who first became a member or participant before | 6 | | January 1, 2011 under any reciprocal retirement system or | 7 | | pension fund established under this Code other than a | 8 | | retirement system or pension fund established under Article 2, | 9 | | 3, 4, 5, 6, or 18 of this Code.
| 10 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| 11 | | Sec. 14-133. Contributions on behalf of members.
| 12 | | (a) Each participating employee shall make contributions | 13 | | to the System,
based on the employee's compensation, as | 14 | | follows:
| 15 | | (1) Covered employees, except as indicated below, 3.5% | 16 | | for
retirement annuity, and 0.5% for a widow or survivors
| 17 | | annuity;
| 18 | | (2) Noncovered employees, except as indicated below, | 19 | | 7% for retirement
annuity and 1% for a widow or survivors | 20 | | annuity;
| 21 | | (3) Noncovered employees serving in a position in which | 22 | | "eligible
creditable service" as defined in Section 14-110 | 23 | | may be earned, 1% for a widow
or survivors annuity
plus the | 24 | | following amount for retirement annuity: 8.5% through |
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| 1 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 2 | | in 2004 and thereafter;
| 3 | | (4) Covered employees serving in a position in which | 4 | | "eligible creditable
service" as defined in Section 14-110 | 5 | | may be earned, 0.5% for a widow or survivors annuity
plus | 6 | | the following amount for retirement annuity: 5% through | 7 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 8 | | and thereafter;
| 9 | | (5) Each security employee of the Department of | 10 | | Corrections
or of the Department of Human Services who is a | 11 | | covered employee, 0.5% for a widow or survivors annuity
| 12 | | plus the following amount for retirement annuity: 5% | 13 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 14 | | in 2004 and thereafter;
| 15 | | (6) Each security employee of the Department of | 16 | | Corrections
or of the Department of Human Services who is | 17 | | not a covered employee, 1% for a widow or survivors annuity
| 18 | | plus the following amount for retirement annuity: 8.5% | 19 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 20 | | 11.5% in 2004 and thereafter.
| 21 | | (a-5) Beginning July 1, 2013, in addition to the | 22 | | contributions otherwise required under this Article, each Tier | 23 | | I member shall contribute toward the cost of his or her
| 24 | | retirement annuity 5% of each payment of compensation received | 25 | | by him or
her for service as a member. | 26 | | (b) Contributions shall be in the form of a deduction from
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| 1 | | compensation and shall be made notwithstanding that the | 2 | | compensation
paid in cash to the employee shall be reduced | 3 | | thereby below the minimum
prescribed by law or regulation. Each | 4 | | member is deemed to consent and
agree to the deductions from | 5 | | compensation provided for in this Article,
and shall receipt in | 6 | | full for salary or compensation.
| 7 | | (Source: P.A. 92-14, eff. 6-28-01.)
| 8 | | (40 ILCS 5/15-107.1 new) | 9 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A | 10 | | participant under this Article, other than a participant in the | 11 | | self-managed plan under Section 15-158.2, who first became a | 12 | | member or participant before January 1, 2011 under any | 13 | | reciprocal retirement system or pension fund established under | 14 | | this Code other than a retirement system or pension fund | 15 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code.
| 16 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| 17 | | Sec. 15-157. Employee Contributions.
| 18 | | (a) Each participating employee
shall make contributions | 19 | | towards the retirement
benefits payable under the retirement | 20 | | program applicable to the
employee from each payment
of | 21 | | earnings applicable to employment under this system on and | 22 | | after the
date of becoming a participant as follows: Prior to | 23 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 24 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
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| 1 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 2 | | are to be considered as normal contributions for purposes
of | 3 | | this Article.
| 4 | | Each participant who is a police officer or firefighter | 5 | | shall make normal
contributions of 8% of each payment of | 6 | | earnings applicable to employment as a
police officer or | 7 | | firefighter under this system on or after September 1, 1981,
| 8 | | unless he or she files with the board within 60 days after the | 9 | | effective date
of this amendatory Act of 1991 or 60 days after | 10 | | the board receives notice that
he or she is employed as a | 11 | | police officer or firefighter, whichever is later,
a written | 12 | | notice waiving the retirement formula provided by Rule 4 of | 13 | | Section
15-136. This waiver shall be irrevocable. If a | 14 | | participant had met the
conditions set forth in Section | 15 | | 15-132.1 prior to the effective date of this
amendatory Act of | 16 | | 1991 but failed to make the additional normal contributions
| 17 | | required by this paragraph, he or she may elect to pay the | 18 | | additional
contributions plus compound interest at the | 19 | | effective rate. If such payment
is received by the board, the | 20 | | service shall be considered as police officer
service in | 21 | | calculating the retirement annuity under Rule 4 of Section | 22 | | 15-136.
While performing service described in clause (i) or | 23 | | (ii) of Rule 4 of Section
15-136, a participating employee | 24 | | shall be deemed to be employed as a
firefighter for the purpose | 25 | | of determining the rate of employee contributions
under this | 26 | | Section.
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| 1 | | (b) Starting September 1, 1969, each participating | 2 | | employee shall make
additional contributions of 1/2 of 1% of | 3 | | earnings to finance a portion
of the cost of the annual | 4 | | increases in retirement annuity provided under
Section 15-136, | 5 | | except that with respect to participants in the
self-managed | 6 | | plan this additional contribution shall be used to finance the
| 7 | | benefits obtained under that retirement program.
| 8 | | (c) In addition to the amounts described in subsections (a) | 9 | | and (b) of this
Section, each participating employee shall make | 10 | | contributions of 1% of earnings
applicable under this system on | 11 | | and after August 1, 1959. The contributions
made under this | 12 | | subsection (c) shall be considered as survivor's insurance
| 13 | | contributions for purposes of this Article if the employee is | 14 | | covered under
the traditional benefit package, and such | 15 | | contributions shall be considered
as additional contributions | 16 | | for purposes of this Article if the employee is
participating | 17 | | in the self-managed plan or has elected to participate in the
| 18 | | portable benefit package and has completed the applicable | 19 | | one-year waiting
period. Contributions in excess of $80 during | 20 | | any fiscal year beginning before
August 31, 1969 and in excess | 21 | | of $120 during any fiscal year thereafter until
September 1, | 22 | | 1971 shall be considered as additional contributions for | 23 | | purposes
of this Article.
| 24 | | (c-5) Beginning July 1, 2013, in addition to the | 25 | | contributions otherwise required under this Article, each Tier | 26 | | I participant shall contribute toward the cost of his or her
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| 1 | | retirement annuity 5% of each payment of earnings received by | 2 | | him or
her for service as a member. | 3 | | Except as otherwise specified, these contributions shall | 4 | | be considered as normal contributions for purposes
of this | 5 | | Article. | 6 | | (d) If the board by board rule so permits and subject to | 7 | | such conditions
and limitations as may be specified in its | 8 | | rules, a participant may make
other additional contributions of | 9 | | such percentage of earnings or amounts as
the participant shall | 10 | | elect in a written notice thereof received by the board.
| 11 | | (e) That fraction of a participant's total accumulated | 12 | | normal
contributions, the numerator of which is equal to the | 13 | | number of years of
service in excess of that which is required | 14 | | to qualify for the maximum
retirement annuity, and the | 15 | | denominator of which is equal to the total
service of the | 16 | | participant, shall be considered as accumulated additional
| 17 | | contributions. The determination of the applicable maximum | 18 | | annuity and
the adjustment in contributions required by this | 19 | | provision shall be made
as of the date of the participant's | 20 | | retirement.
| 21 | | (f) Notwithstanding the foregoing, a participating | 22 | | employee shall not
be required to make contributions under this | 23 | | Section after the date upon
which continuance of such | 24 | | contributions would otherwise cause his or her
retirement | 25 | | annuity to exceed the maximum retirement annuity as specified | 26 | | in
clause (1) of subsection (c) of Section 15-136.
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| 1 | | (g) A participating employee may make contributions for the | 2 | | purchase of
service credit under this Article.
| 3 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 4 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 5 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| 6 | | (40 ILCS 5/16-106.4 new) | 7 | | Sec. 16-106.4. Tier I member. "Tier I member": A member | 8 | | under this Article who first became a member or participant | 9 | | before January 1, 2011 under any reciprocal retirement system | 10 | | or pension fund established under this Code other than a | 11 | | retirement system or pension fund established under Article 2, | 12 | | 3, 4, 5, 6, or 18 of this Code.
| 13 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| 14 | | Sec. 16-152. Contributions by members.
| 15 | | (a) Each member shall make contributions for membership | 16 | | service to this
System as follows:
| 17 | | (1) Effective July 1, 1998, contributions of 7.50% of | 18 | | salary towards the
cost of the retirement annuity. Such | 19 | | contributions shall be deemed "normal
contributions".
| 20 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% | 21 | | of salary toward
the cost of the automatic annual increase | 22 | | in retirement annuity provided
under Section 16-133.1.
| 23 | | (3) Effective July 24, 1959, contributions of 1% of | 24 | | salary towards the
cost of survivor benefits. Such |
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| 1 | | contributions shall not be credited to
the individual | 2 | | account of the member and shall not be subject to refund
| 3 | | except as provided under Section 16-143.2.
| 4 | | (4) Effective July 1, 2005, contributions of 0.40% of | 5 | | salary toward the cost of the early retirement without | 6 | | discount option provided under Section 16-133.2. This | 7 | | contribution shall cease upon termination of the early | 8 | | retirement without discount option as provided in Section | 9 | | 16-176.
| 10 | | (a-5) Beginning July 1, 2013, in addition to the | 11 | | contributions otherwise required under this Article, each Tier | 12 | | I member shall contribute toward the cost of his or her
| 13 | | retirement annuity 5% of each payment of salary received by him | 14 | | or
her for service as a member. | 15 | | Except as otherwise specified, these contributions shall | 16 | | be considered as normal contributions for purposes
of this | 17 | | Article. | 18 | | (b) The minimum required contribution for any year of | 19 | | full-time
teaching service shall be $192.
| 20 | | (c) Contributions shall not be required of any annuitant | 21 | | receiving
a retirement annuity who is given employment as | 22 | | permitted under Section 16-118 or 16-150.1.
| 23 | | (d) A person who (i) was a member before July 1, 1998, (ii) | 24 | | retires with
more than 34 years of creditable service, and | 25 | | (iii) does not elect to qualify
for the augmented rate under | 26 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
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| 1 | | to receive a partial refund of contributions made under this
| 2 | | Section for service occurring after the later of June 30, 1998 | 3 | | or attainment
of 34 years of creditable service, in an amount | 4 | | equal to 1.00% of the salary
upon which those contributions | 5 | | were based.
| 6 | | (e) A member's contributions toward the cost of early | 7 | | retirement without discount made under item (a)(4) of this | 8 | | Section shall not be refunded if the member has elected early | 9 | | retirement without discount under Section 16-133.2 and has | 10 | | begun to receive a retirement annuity under this Article | 11 | | calculated in accordance with that election. Otherwise, a | 12 | | member's contributions toward the cost of early retirement | 13 | | without discount made under item (a)(4) of this Section shall | 14 | | be refunded according to whichever one of the following | 15 | | circumstances occurs first: | 16 | | (1) The contributions shall be refunded to the member, | 17 | | without interest, within 120 days after the member's | 18 | | retirement annuity commences, if the member does not elect | 19 | | early retirement without discount under Section 16-133.2. | 20 | | (2) The contributions shall be included, without | 21 | | interest, in any refund claimed by the member under Section | 22 | | 16-151. | 23 | | (3) The contributions shall be refunded to the member's | 24 | | designated beneficiary (or if there is no beneficiary, to | 25 | | the member's estate), without interest, if the member dies | 26 | | without having begun to receive a retirement annuity under |
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| 1 | | this Article. | 2 | | (4) The contributions shall be refunded to the member, | 3 | | without interest, within 120 days after the early | 4 | | retirement without discount option provided under Section | 5 | | 16-133.2 is terminated under Section 16-176.
| 6 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.".
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