Full Text of SB1299 99th General Assembly
SB1299 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB1299 Introduced 2/18/2015, by Sen. Kyle McCarter SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-117 | from Ch. 108 1/2, par. 2-117 | 40 ILCS 5/14-103.05 | from Ch. 108 1/2, par. 14-103.05 | 40 ILCS 5/15-134 | from Ch. 108 1/2, par. 15-134 | 40 ILCS 5/16-123 | from Ch. 108 1/2, par. 16-123 | 40 ILCS 5/18-120 | from Ch. 108 1/2, par. 18-120 |
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Amends the Illinois Pension Code. In the General Assembly and Judges Articles, authorizes a participant to terminate his or her participation in those systems. In the Downstate Teachers, State Employees, and State Universities Articles, authorizes a person to elect not to participate or to terminate his or her participation in those systems. In all 5 systems, provides that an active participant terminating participation in the system shall be entitled to a refund of his or her contributions (other than contributions to the defined contribution plan or self-managed plan) plus interest, minus any benefits received prior to terminating participation. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 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 2-117, 14-103.05, 15-134, 16-123, and 18-120 as | 6 | | follows:
| 7 | | (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
| 8 | | Sec. 2-117. Participants - Election not to participate.
| 9 | | (a) Except as provided in subsection (c), every Every | 10 | | person who was a member on November 1, 1947, or in military
| 11 | | service on such date, is subject to the provisions of this | 12 | | system beginning
upon such date, unless prior to such date he | 13 | | or she filed with the board a
written notice of election not to | 14 | | participate.
| 15 | | Every person who becomes a member after November 1, 1947, | 16 | | and who is
then not a participant becomes a participant | 17 | | beginning upon the date of
becoming a member unless, within 24 | 18 | | months from that date, he or she has
filed with the board a | 19 | | written notice of election not to participate.
| 20 | | (b) A member who has filed notice of an election not to | 21 | | participate
(and a former member who has not yet begun to | 22 | | receive a retirement
annuity under this Article) may become a | 23 | | participant with respect to the period
for which the member |
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| 1 | | elected not to participate upon filing with the board,
before | 2 | | April 1, 1993, a written rescission of the election not to | 3 | | participate.
Upon contributing an amount equal to the | 4 | | contributions he or she would have
made as a participant from | 5 | | November 1, 1947, or the date of becoming a member,
whichever | 6 | | is later, to the date of becoming a participant, with interest | 7 | | at the
rate of 4% per annum until the contributions are paid, | 8 | | the participant shall
receive credit for service as a member | 9 | | prior to the date of the rescission,
both before and after | 10 | | November 1, 1947. The required contributions shall be
made | 11 | | before commencement of the retirement annuity; otherwise no | 12 | | credit for
service prior to the date of participation shall be | 13 | | granted. | 14 | | (c) Notwithstanding any other provision of this Article, an | 15 | | active participant may terminate his or her participation in | 16 | | this System by notifying the System in writing. An active | 17 | | participant terminating participation in this System under | 18 | | this subsection shall be entitled to a refund of his or her | 19 | | contributions (other than contributions to the defined | 20 | | contribution plan under Section 2-165) plus the market rate of | 21 | | return throughout the multiple years the money was in the | 22 | | System, minus the amount of any benefits received prior to | 23 | | terminating participation.
| 24 | | (Source: P.A. 86-273; 87-1265.)
| 25 | | (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
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| 1 | | Sec. 14-103.05. Employee.
| 2 | | (a) Except as provided in subsection (d), any Any person | 3 | | employed by a Department who receives salary
for personal | 4 | | services rendered to the Department on a warrant
issued | 5 | | pursuant to a payroll voucher certified by a Department and | 6 | | drawn
by the State Comptroller upon the State Treasurer, | 7 | | including an elected
official described in subparagraph (d) of | 8 | | Section 14-104, shall become
an employee for purpose of | 9 | | membership in the Retirement System on the
first day of such | 10 | | employment.
| 11 | | A person entering service on or after January 1, 1972 and | 12 | | prior to January
1, 1984 shall become a member as a condition | 13 | | of employment and shall begin
making contributions as of the | 14 | | first day of employment.
| 15 | | A person entering service on or after January 1, 1984 | 16 | | shall, upon completion
of 6 months of continuous service which | 17 | | is not interrupted by a break of more
than 2 months, become a | 18 | | member as a condition of employment. Contributions
shall begin | 19 | | the first of the month after completion of the qualifying | 20 | | period.
| 21 | | A person employed by the Chicago Metropolitan Agency for | 22 | | Planning on the effective date of this amendatory Act of the | 23 | | 95th General Assembly who was a member of this System as an | 24 | | employee of the Chicago Area Transportation Study and makes an | 25 | | election under Section 14-104.13 to participate in this System | 26 | | for his or her employment with the Chicago Metropolitan Agency |
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| 1 | | for Planning.
| 2 | | The qualifying period of 6 months of service is not | 3 | | applicable to: (1)
a person who has been granted credit for | 4 | | service in a position covered by
the State Universities | 5 | | Retirement System, the Teachers' Retirement System
of the State | 6 | | of Illinois, the General Assembly Retirement System, or the
| 7 | | Judges Retirement System of Illinois unless that service has | 8 | | been forfeited
under the laws of those systems; (2) a person | 9 | | entering service on or
after July 1, 1991 in a noncovered | 10 | | position; (3) a person to whom Section
14-108.2a or 14-108.2b | 11 | | applies; or (4) a person to whom subsection (a-5) of this | 12 | | Section applies.
| 13 | | (a-5) Except as provided in subsection (d), a A person | 14 | | entering service on or after December 1, 2010 and before the | 15 | | effective date of this amendatory Act of the 99th General | 16 | | Assembly shall become a member as a condition of employment and | 17 | | shall begin making contributions as of the first day of | 18 | | employment. A person serving in the qualifying period on | 19 | | December 1, 2010 will become a member on December 1, 2010 and | 20 | | shall begin making contributions as of December 1, 2010. | 21 | | (b) The term "employee" does not include the following:
| 22 | | (1) members of the State Legislature, and persons | 23 | | electing to become
members of the General Assembly | 24 | | Retirement System pursuant to Section 2-105;
| 25 | | (2) incumbents of offices normally filled by vote of | 26 | | the people;
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| 1 | | (3) except as otherwise provided in this Section, any | 2 | | person
appointed by the Governor with the advice and | 3 | | consent
of the Senate unless that person elects to | 4 | | participate in this system;
| 5 | | (3.1) any person serving as a commissioner of an ethics | 6 | | commission created under the State Officials and Employees | 7 | | Ethics Act unless that person elects to participate in this | 8 | | system with respect to that service as a commissioner;
| 9 | | (3.2) any person serving as a part-time employee in any | 10 | | of the following positions: Legislative Inspector General, | 11 | | Special Legislative Inspector General, employee of the | 12 | | Office of the Legislative Inspector General, Executive | 13 | | Director of the Legislative Ethics Commission, or staff of | 14 | | the Legislative Ethics Commission, regardless of whether | 15 | | he or she is in active service on or after July 8, 2004 | 16 | | (the effective date of Public Act 93-685), unless that | 17 | | person elects to participate in this System with respect to | 18 | | that service; in this item (3.2), a "part-time employee" is | 19 | | a person who is not required to work at least 35 hours per | 20 | | week; | 21 | | (3.3) any person who has made an election under Section | 22 | | 1-123 and who is serving either as legal counsel in the | 23 | | Office of the Governor or as Chief Deputy Attorney General;
| 24 | | (4) except as provided in Section 14-108.2 or | 25 | | 14-108.2c, any person
who is covered or eligible to be | 26 | | covered by the Teachers' Retirement System of
the State of |
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| 1 | | Illinois, the State Universities Retirement System, or the | 2 | | Judges
Retirement System of Illinois;
| 3 | | (5) an employee of a municipality or any other | 4 | | political subdivision
of the State;
| 5 | | (6) any person who becomes an employee after June 30, | 6 | | 1979 as a
public service employment program participant | 7 | | under the Federal
Comprehensive Employment and Training | 8 | | Act and whose wages or fringe
benefits are paid in whole or | 9 | | in part by funds provided under such Act;
| 10 | | (7) enrollees of the Illinois Young Adult Conservation | 11 | | Corps program,
administered by the Department of Natural | 12 | | Resources, authorized grantee
pursuant to Title VIII of the | 13 | | "Comprehensive Employment and Training Act of
1973", 29 USC | 14 | | 993, as now or hereafter amended;
| 15 | | (8) enrollees and temporary staff of programs | 16 | | administered by the
Department of Natural Resources under | 17 | | the Youth
Conservation Corps Act of 1970;
| 18 | | (9) any person who is a member of any professional | 19 | | licensing or
disciplinary board created under an Act | 20 | | administered by the Department of
Professional Regulation | 21 | | or a successor agency or created or re-created
after the | 22 | | effective date of this amendatory Act of 1997, and who | 23 | | receives
per diem compensation rather than a salary, | 24 | | notwithstanding that such per diem
compensation is paid by | 25 | | warrant issued pursuant to a payroll voucher; such
persons | 26 | | have never been included in the membership of this System, |
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| 1 | | and this
amendatory Act of 1987 (P.A. 84-1472) is not | 2 | | intended to effect any change in
the status of such | 3 | | persons;
| 4 | | (10) any person who is a member of the Illinois Health | 5 | | Care Cost
Containment Council, and receives per diem | 6 | | compensation rather than a
salary, notwithstanding that | 7 | | such per diem compensation is paid by warrant
issued | 8 | | pursuant to a payroll voucher; such persons have never been | 9 | | included
in the membership of this System, and this | 10 | | amendatory Act of 1987 is not
intended to effect any change | 11 | | in the status of such persons;
| 12 | | (11) any person who is a member of the Oil and Gas | 13 | | Board created by
Section 1.2 of the Illinois Oil and Gas | 14 | | Act, and receives per diem
compensation rather than a | 15 | | salary, notwithstanding that such per diem
compensation is | 16 | | paid by warrant issued pursuant to a payroll voucher;
| 17 | | (12) a person employed by the State Board of Higher | 18 | | Education in a position with the Illinois Century Network | 19 | | as of June 30, 2004, who remains continuously employed | 20 | | after that date by the Department of Central Management | 21 | | Services in a position with the Illinois Century Network | 22 | | and participates in the Article 15 system with respect to | 23 | | that employment;
| 24 | | (13) any person who first becomes a member of the Civil | 25 | | Service Commission on or after January 1, 2012; | 26 | | (14) any person, other than the Director of Employment |
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| 1 | | Security, who first becomes a member of the Board of Review | 2 | | of the Department of Employment Security on or after | 3 | | January 1, 2012; | 4 | | (15) any person who first becomes a member of the Civil | 5 | | Service Commission on or after January 1, 2012; | 6 | | (16) any person who first becomes a member of the | 7 | | Illinois Liquor Control Commission on or after January 1, | 8 | | 2012; | 9 | | (17) any person who first becomes a member of the | 10 | | Secretary of State Merit Commission on or after January 1, | 11 | | 2012; | 12 | | (18) any person who first becomes a member of the Human | 13 | | Rights Commission on or after January 1, 2012; | 14 | | (19) any person who first becomes a member of the State | 15 | | Mining Board on or after January 1, 2012; | 16 | | (20) any person who first becomes a member of the | 17 | | Property Tax Appeal Board on or after January 1, 2012; | 18 | | (21) any person who first becomes a member of the | 19 | | Illinois Racing Board on or after January 1, 2012; | 20 | | (22) any person who first becomes a member of the | 21 | | Department of State Police Merit Board on or after January | 22 | | 1, 2012; | 23 | | (23) any person who first becomes a member of the | 24 | | Illinois State Toll Highway Authority on or after January | 25 | | 1, 2012; or | 26 | | (24) any person who first becomes a member of the |
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| 1 | | Illinois State Board of Elections on or after January 1, | 2 | | 2012. | 3 | | (c) An individual who represents or is employed as an | 4 | | officer or employee of a statewide labor organization that | 5 | | represents members of this System may participate in the System | 6 | | and shall be deemed an employee, provided that (1) the | 7 | | individual has previously earned creditable service under this | 8 | | Article, (2) the individual files with the System an | 9 | | irrevocable election to become a participant within 6 months | 10 | | after the effective date of this amendatory Act of the 94th | 11 | | General Assembly, and (3) the individual does not receive | 12 | | credit for that employment under any other provisions of this | 13 | | Code. An employee under this subsection (c) is responsible for | 14 | | paying to the System both (i) employee contributions based on | 15 | | the actual compensation received for service with the labor | 16 | | organization and (ii) employer contributions based on the | 17 | | percentage of payroll certified by the board; all or any part | 18 | | of these contributions may be paid on the employee's behalf or | 19 | | picked up for tax purposes (if authorized under federal law) by | 20 | | the labor organization. | 21 | | A person who is an employee as defined in this subsection | 22 | | (c) may establish service credit for similar employment prior | 23 | | to becoming an employee under this subsection by paying to the | 24 | | System for that employment the contributions specified in this | 25 | | subsection, plus interest at the effective rate from the date | 26 | | of service to the date of payment. However, credit shall not be |
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| 1 | | granted under this subsection (c) for any such prior employment | 2 | | for which the applicant received credit under any other | 3 | | provision of this Code or during which the applicant was on a | 4 | | leave of absence.
| 5 | | (d) Notwithstanding any other provision of this Article, | 6 | | beginning on the effective date of this amendatory Act of the | 7 | | 99th General Assembly, a person is not required, as a condition | 8 | | of employment or otherwise, to participate in this System. An | 9 | | active employee may terminate his or her participation in this | 10 | | System by notifying the System in writing. An active employee | 11 | | terminating participation in this System under this subsection | 12 | | shall be entitled to a refund of his or her contributions | 13 | | (other than contributions to the defined contribution plan | 14 | | under Section 14-155) plus regular interest, minus the amount | 15 | | of any benefits received prior to terminating participation. | 16 | | (Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
| 17 | | (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
| 18 | | Sec. 15-134. Participant.
| 19 | | (a) Except as provided in subsection (a-5), each Each | 20 | | person shall, as a condition of employment, become a | 21 | | participant
and be subject to this Article on the date that he | 22 | | or she becomes an
employee, makes an election to participate | 23 | | in, or otherwise becomes a
participant in one of the retirement | 24 | | programs offered under this Article,
whichever date is later.
| 25 | | An employee who becomes a participant shall continue to be |
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| 1 | | a participant
until he or she becomes an annuitant, dies or | 2 | | accepts a refund of
contributions.
| 3 | | (a-5) Notwithstanding any other provision of this Article, | 4 | | beginning on the effective date of this amendatory Act of the | 5 | | 99th General Assembly, a person is not required, as a condition | 6 | | of employment or otherwise, to participate in this System. An | 7 | | active employee may terminate his or her participation in this | 8 | | System by notifying the System in writing. An active employee | 9 | | terminating participation in this System under this subsection | 10 | | shall be entitled to a refund of his or her contributions | 11 | | (other than contributions to the self-managed plan under | 12 | | Section 15-158.2 or the defined contribution plan under Section | 13 | | 15-200) plus interest at the effective rate, minus the amount | 14 | | of any benefits received prior to terminating participation. | 15 | | (b) A person employed concurrently by 2 or more employers | 16 | | is
eligible to participate in the system on compensation | 17 | | received from all
employers.
| 18 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 19 | | (40 ILCS 5/16-123) (from Ch. 108 1/2, par. 16-123)
| 20 | | Sec. 16-123. Membership of System.
| 21 | | (a) Except as provided in subsection (c), the The | 22 | | membership of this System shall be composed of all teachers
| 23 | | employed after June 30, 1939 who become members as a condition | 24 | | of
employment on the date they become teachers. Membership | 25 | | shall continue
until the date a member becomes an annuitant, |
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| 1 | | dies, accepts a single-sum
retirement benefit, accepts a | 2 | | refund, or forfeits the rights to a refund.
| 3 | | (b) This Article does not apply to any person first | 4 | | employed after June
30, 1979 as a public service employment | 5 | | program participant under the Federal
Comprehensive Employment | 6 | | and Training Act and whose wages or fringe benefits
are paid in | 7 | | whole or in part by funds provided under such Act.
| 8 | | (c) Notwithstanding any other provision of this Article, | 9 | | beginning on the effective date of this amendatory Act of the | 10 | | 99th General Assembly, a person is not required, as a condition | 11 | | of employment or otherwise, to participate in this System. An | 12 | | active teacher may terminate his or her membership in this | 13 | | System by notifying the System in writing. An active teacher | 14 | | terminating his or her membership in this System under this | 15 | | subsection shall be entitled to a refund of his or her | 16 | | contributions (other than contributions to the defined | 17 | | contribution plan under Section 16-205) plus regular interest, | 18 | | minus any benefits received prior to the termination of | 19 | | membership. | 20 | | (Source: P.A. 87-11.)
| 21 | | (40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
| 22 | | Sec. 18-120. Employee participation. | 23 | | (a) Except as provided in subsection (b), an An eligible | 24 | | judge who is not a participant shall become a participant | 25 | | beginning on
the date he or she becomes an eligible judge, |
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| 1 | | unless the judge files
with the board a written notice of | 2 | | election not to
participate within 30 days of the date of being | 3 | | notified of the option.
| 4 | | A person electing not to participate shall thereafter be | 5 | | ineligible to
become a participant unless the election is | 6 | | revoked as provided in Section
18-121.
| 7 | | (b) Notwithstanding any other provision of this Article, an | 8 | | active participant may terminate his or her participation in | 9 | | this System by notifying the System in writing. An active | 10 | | participant terminating participation in this System under | 11 | | this subsection shall be entitled to a refund of his or her | 12 | | contributions plus the market rate of return throughout the | 13 | | multiple years the money was in the System, minus the amount of | 14 | | any benefits received prior to terminating participation. | 15 | | (Source: P.A. 83-1440.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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