Full Text of SB2156 99th General Assembly
SB2156ham003 99TH GENERAL ASSEMBLY | Rep. Kelly M. Burke Filed: 5/25/2016
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| 1 | | AMENDMENT TO SENATE BILL 2156
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2156, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Pension Code is amended by | 6 | | changing Sections 15-106, 15-107, 15-110, 15-111, 15-113.11, | 7 | | 15-155, 15-158.2, 15-168, and 15-168.2 and by adding Sections | 8 | | 15-111.5 and 15-113.12 as follows:
| 9 | | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
| 10 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 11 | | which has been held unconstitutional)
| 12 | | Sec. 15-106. Employer. "Employer": The University of | 13 | | Illinois, Southern
Illinois University, Chicago State | 14 | | University, Eastern Illinois University,
Governors State | 15 | | University, Illinois State University, Northeastern Illinois
| 16 | | University, Northern Illinois University, Western Illinois |
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| 1 | | University, the
State Board of Higher Education, the Illinois | 2 | | Mathematics and Science Academy,
the University Civil Service | 3 | | Merit Board, the Board of
Trustees of the State Universities | 4 | | Retirement System, the Illinois Community
College Board, | 5 | | community college
boards, any association of community college | 6 | | boards organized under Section
3-55 of the Public Community | 7 | | College Act, the Board of Examiners established
under the | 8 | | Illinois Public Accounting Act, and, only during the period for | 9 | | which
employer contributions required under Section 15-155 are | 10 | | paid, the following
organizations: the alumni associations, | 11 | | the foundations and the athletic
associations which are | 12 | | affiliated with the universities and colleges included
in this | 13 | | Section as employers. An
individual who begins employment on or | 14 | | after the effective date of this amendatory Act of the
99th | 15 | | General Assembly with any association of community college | 16 | | boards organized under
Section 3-55 of the Public Community | 17 | | College Act, the Association of Illinois Middle-Grade
Schools, | 18 | | the Illinois Association of School Administrators, the | 19 | | Illinois Association for
Supervision and Curriculum | 20 | | Development, the Illinois Principals Association, the Illinois
| 21 | | Association of School Business Officials, the Illinois Special | 22 | | Olympics, or an entity not defined
as an employer in this | 23 | | Section shall not be deemed an employee for the purposes of | 24 | | this Article
with respect to that employment and shall not be | 25 | | eligible to participate in the System with respect
to that | 26 | | employment; provided, however, that those individuals who are |
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| 1 | | both employed by such
an entity and are participating in the | 2 | | System with respect to that employment on the effective
date of | 3 | | this amendatory Act of the 99th General Assembly shall be | 4 | | allowed to continue as
participants in the System for the | 5 | | duration of that employment. | 6 | | A department as defined in Section 14-103.04 is
an employer | 7 | | for any person appointed by the Governor under the Civil
| 8 | | Administrative Code of Illinois who is a participating employee | 9 | | as defined in
Section 15-109. The Department of Central | 10 | | Management Services is an employer with respect to persons | 11 | | employed by the State Board of Higher Education in positions | 12 | | with the Illinois Century Network as of June 30, 2004 who | 13 | | remain continuously employed after that date by the Department | 14 | | of Central Management Services in positions with the Illinois | 15 | | Century Network, the Bureau of Communication and Computer | 16 | | Services, or, if applicable, any successor bureau.
| 17 | | The cities of Champaign and Urbana shall be considered
| 18 | | employers, but only during the period for which contributions | 19 | | are required to
be made under subsection (b-1) of Section | 20 | | 15-155 and only with respect to
individuals described in | 21 | | subsection (h) of Section 15-107.
| 22 | | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | 23 | | Sec. 999 .)
| 24 | | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| 25 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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| 1 | | which has been held unconstitutional)
| 2 | | Sec. 15-107. Employee.
| 3 | | (a) "Employee" means any member of the educational, | 4 | | administrative,
secretarial, clerical, mechanical, labor or | 5 | | other staff of an employer
whose employment is permanent and | 6 | | continuous or who is employed in a
position in which services | 7 | | are expected to be rendered on a continuous
basis for at least | 8 | | 4 months or one academic term, whichever is less, who
(A) | 9 | | receives payment for personal services on a warrant issued | 10 | | pursuant to
a payroll voucher certified by an employer and | 11 | | drawn by the State
Comptroller upon the State Treasurer or by | 12 | | an employer upon trust, federal
or other funds, or (B) is on a | 13 | | leave of absence without pay. Employment
which is irregular, | 14 | | intermittent or temporary shall not be considered
continuous | 15 | | for purposes of this paragraph.
| 16 | | However, a person is not an "employee" if he or she:
| 17 | | (1) is a student enrolled in and regularly attending | 18 | | classes in a
college or university which is an employer, | 19 | | and is employed on a temporary
basis at less than full | 20 | | time;
| 21 | | (2) is currently receiving a retirement annuity or a | 22 | | disability
retirement annuity under Section 15-153.2 from | 23 | | this System;
| 24 | | (3) is on a military leave of absence;
| 25 | | (4) is eligible to participate in the Federal Civil | 26 | | Service Retirement
System and is currently making |
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| 1 | | contributions to that system based upon
earnings paid by an | 2 | | employer;
| 3 | | (5) is on leave of absence without pay for more than 60 | 4 | | days
immediately following termination of disability | 5 | | benefits under this
Article;
| 6 | | (6) is hired after June 30, 1979 as a public service | 7 | | employment program
participant under the Federal | 8 | | Comprehensive Employment and Training Act
and receives | 9 | | earnings in whole or in part from funds provided under that
| 10 | | Act; or
| 11 | | (7) is employed on or after July 1, 1991 to perform | 12 | | services that
are excluded by subdivision (a)(7)(f) or | 13 | | (a)(19) of Section 210 of the
federal Social Security Act | 14 | | from the definition of employment given in that
Section (42 | 15 | | U.S.C. 410).
| 16 | | (b) Any employer may, by filing a written notice with the | 17 | | board, exclude
from the definition of "employee" all persons | 18 | | employed pursuant to a federally
funded contract entered into | 19 | | after July 1, 1982 with a federal military
department in a | 20 | | program providing training in military courses to federal
| 21 | | military personnel on a military site owned by the United | 22 | | States Government,
if this exclusion is not prohibited by the | 23 | | federally funded contract or
federal laws or rules governing | 24 | | the administration of the contract.
| 25 | | (c) Any person appointed by the Governor under the Civil | 26 | | Administrative
Code of the State is an employee, if he or she |
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| 1 | | is a participant in this
system on the effective date of the | 2 | | appointment.
| 3 | | (d) A participant on lay-off status under civil service | 4 | | rules is
considered an employee for not more than 120 days from | 5 | | the date of the lay-off.
| 6 | | (e) A participant is considered an employee during (1) the | 7 | | first 60 days
of disability leave, (2) the period, not to | 8 | | exceed one year, in which his
or her eligibility for disability | 9 | | benefits is being considered by the board
or reviewed by the | 10 | | courts, and (3) the period he or she receives disability
| 11 | | benefits under the provisions of Section 15-152, workers' | 12 | | compensation or
occupational disease benefits, or disability | 13 | | income under an insurance
contract financed wholly or partially | 14 | | by the employer.
| 15 | | (f) Absences without pay, other than formal leaves of | 16 | | absence, of less
than 30 calendar days, are not considered as | 17 | | an interruption of a person's
status as an employee. If such | 18 | | absences during any period of 12 months
exceed 30 work days, | 19 | | the employee status of the person is considered as
interrupted | 20 | | as of the 31st work day.
| 21 | | (g) A staff member whose employment contract requires | 22 | | services during
an academic term is to be considered an | 23 | | employee during the summer and
other vacation periods, unless | 24 | | he or she declines an employment contract
for the succeeding | 25 | | academic term or his or her employment status is
otherwise | 26 | | terminated, and he or she receives no earnings during these |
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| 1 | | periods.
| 2 | | (h) An individual who was a participating employee employed | 3 | | in the fire
department of the University of Illinois's | 4 | | Champaign-Urbana campus immediately
prior to the elimination | 5 | | of that fire department and who immediately after the
| 6 | | elimination of that fire department became employed by the fire | 7 | | department of
the City of Urbana or the City of Champaign shall | 8 | | continue to be considered as
an employee for purposes of this | 9 | | Article for so long as the individual remains
employed as a | 10 | | firefighter by the City of Urbana or the City of Champaign. The
| 11 | | individual shall cease to be considered an employee under this | 12 | | subsection (h)
upon the first termination of the individual's | 13 | | employment as a firefighter by
the City of Urbana or the City | 14 | | of Champaign.
| 15 | | (i) An individual who is employed on a full-time basis as | 16 | | an officer
or employee of a statewide teacher organization that | 17 | | serves System
participants or an officer of a national teacher | 18 | | organization that serves
System participants may participate | 19 | | in the System and shall be deemed an
employee, provided that | 20 | | (1) the individual has previously earned
creditable service | 21 | | under this Article, (2) the individual files with the
System an | 22 | | irrevocable election to become a participant before the | 23 | | effective date of this amendatory Act of the 97th General | 24 | | Assembly, (3) the
individual does not receive credit for that | 25 | | employment under any other Article
of this Code, and (4) the | 26 | | individual first became a full-time employee of the teacher |
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| 1 | | organization and becomes a participant before the effective | 2 | | date of this amendatory Act of the 97th General Assembly. An | 3 | | employee under this subsection (i) is responsible for paying
to | 4 | | the System both (A) employee contributions based on the actual | 5 | | compensation
received for service with the teacher | 6 | | organization and (B) employer
contributions equal to the normal | 7 | | costs (as defined in Section 15-155)
resulting from that | 8 | | service; all or any part of these contributions may be
paid on | 9 | | the employee's behalf or picked up for tax purposes (if | 10 | | authorized
under federal law) by the teacher organization.
| 11 | | A person who is an employee as defined in this subsection | 12 | | (i) may establish
service credit for similar employment prior | 13 | | to becoming an employee under this
subsection by paying to the | 14 | | System for that employment the contributions
specified in this | 15 | | subsection, plus interest at the effective rate from the
date | 16 | | of service to the date of payment. However, credit shall not be | 17 | | granted
under this subsection for any such prior employment for | 18 | | which the applicant
received credit under any other provision | 19 | | of this Code, or during which
the applicant was on a leave of | 20 | | absence under Section 15-113.2.
| 21 | | (j) A person employed by the State Board of Higher | 22 | | Education in a position with the Illinois Century Network as of | 23 | | June 30, 2004 shall be considered to be an employee for so long | 24 | | as he or she remains continuously employed after that date by | 25 | | the Department of Central Management Services in a position | 26 | | with the Illinois Century Network, the Bureau of Communication |
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| 1 | | and Computer Services, or, if applicable, any successor bureau
| 2 | | and meets the requirements of subsection (a).
| 3 | | (k) The Board shall promulgate rules with respect to | 4 | | determining whether any person is an employee within the | 5 | | meaning of this Section. In the case of doubt as to whether any | 6 | | person is an employee within the meaning of this
Section or any | 7 | | rule adopted by the Board, the decision of the Board shall be
| 8 | | final. | 9 | | (Source: P.A. 97-651, eff. 1-5-12.)
| 10 | | (40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
| 11 | | Sec. 15-110. Basic compensation. "Basic compensation": | 12 | | Subject to Section 15-111.5, the The gross
basic rate of salary | 13 | | or wages payable by an employer, including : | 14 | | (1) the
value of maintenance, board, living quarters, | 15 | | personal laundry , or other
allowances furnished in lieu of | 16 | | salary which are considered gross income
under the federal | 17 | | Federal Internal Revenue Code of 1986, as amended; , | 18 | | (2) the employee contributions required
under Section | 19 | | 15-157 ; , and | 20 | | (3) the amount paid by any employer
to a custodial | 21 | | account for investment in regulated investment company | 22 | | stocks
for the benefit of the employee pursuant to the | 23 | | University
Employees Custodial Accounts Act; "An Act in | 24 | | relation to payments
to custodial accounts for the benefit | 25 | | of employees of public institutions
of higher education", |
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| 1 | | approved September 9, 1983, and | 2 | | (4) the
amount of the premium payable by any employer | 3 | | to an
insurance company or companies on an annuity | 4 | | contract, pursuant to the
employee's election to accept a | 5 | | reduction in earnings or forego an
increase in earnings | 6 | | under Section 30c of the State Finance Act "An Act in | 7 | | relation to State
Finance," approved June 10, 1919, as | 8 | | amended , or a tax-sheltered annuity
plan approved by any | 9 | | employer ; and | 10 | | (5) the amount of any elective deferral to a deferred | 11 | | compensation plan established under
Article 24 of this Code | 12 | | pursuant to Section 457(b) of the federal Internal Revenue | 13 | | Code of 1986, as amended . | 14 | | Basic compensation does not include (1)
salary or wages for | 15 | | overtime or other extra service; (2) prospective salary
or | 16 | | wages under a summer teaching contract not yet entered upon; | 17 | | and (3)
overseas differential allowances, quarters allowances, | 18 | | post allowances,
educational allowances and transportation | 19 | | allowances paid by an employer
under a contract with the | 20 | | federal government or its agencies for
services rendered in | 21 | | other countries. If an employee elects to receive in
lieu of | 22 | | cash salary or wages, fringe benefits which are not taxable | 23 | | under
the federal Federal Internal Revenue Code of 1986, as | 24 | | amended , the amount of the cash salary or wages
which is waived | 25 | | shall be included in determining basic compensation.
| 26 | | (Source: P.A. 84-1308.)
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| 1 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| 2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 3 | | which has been held unconstitutional)
| 4 | | Sec. 15-111. Earnings.
| 5 | | (a) "Earnings": Subject to Section 15-111.5, an An amount | 6 | | paid for personal services equal to the sum of
the basic | 7 | | compensation plus extra compensation for summer teaching,
| 8 | | overtime or other extra service. For periods for which an | 9 | | employee receives
service credit under subsection (c) of | 10 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the | 11 | | basic compensation on which contributions are
paid by the | 12 | | employee during such periods. Compensation for employment | 13 | | which is
irregular, intermittent and temporary shall not be | 14 | | considered earnings, unless
the participant is also receiving | 15 | | earnings from the employer as an employee
under Section 15-107.
| 16 | | With respect to transition pay paid by the University of | 17 | | Illinois to a
person who was a participating employee employed | 18 | | in the fire department of
the University of Illinois's | 19 | | Champaign-Urbana campus immediately prior to
the elimination | 20 | | of that fire department:
| 21 | | (1) "Earnings" includes transition pay paid to the | 22 | | employee on or after
the effective date of this amendatory | 23 | | Act of the 91st General Assembly.
| 24 | | (2) "Earnings" includes transition pay paid to the | 25 | | employee before the
effective date of this amendatory Act |
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| 1 | | of the 91st General Assembly only if (i)
employee | 2 | | contributions under Section 15-157 have been withheld from | 3 | | that
transition pay or (ii) the employee pays to the System | 4 | | before January 1, 2001
an amount representing employee | 5 | | contributions under Section 15-157 on that
transition pay. | 6 | | Employee contributions under item (ii) may be paid in a | 7 | | lump
sum, by withholding from additional transition pay | 8 | | accruing before January 1,
2001, or in any other manner | 9 | | approved by the System. Upon payment of the
employee | 10 | | contributions on transition pay, the corresponding | 11 | | employer
contributions become an obligation of the State.
| 12 | | (b) For a Tier 2 member, the annual earnings shall not | 13 | | exceed $106,800; however, that amount shall annually | 14 | | thereafter be increased by the lesser of (i) 3% of that amount, | 15 | | including all previous adjustments, or (ii) one half the annual | 16 | | unadjusted percentage increase (but not less than zero) in the | 17 | | consumer price index-u for the 12 months ending with the | 18 | | September preceding each November 1, including all previous | 19 | | adjustments. | 20 | | For the purposes of this Section, "consumer price index u" | 21 | | means the index published by the Bureau of Labor Statistics of | 22 | | the United States Department of Labor that measures the average | 23 | | change in prices of goods and services purchased by all urban | 24 | | consumers, United States city average, all items, 1982-84 = | 25 | | 100. The new amount resulting from each annual adjustment shall | 26 | | be determined by the Public Pension Division of the Department |
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| 1 | | of Insurance and made available to the boards of the retirement | 2 | | systems and pension funds by November 1 of each year. | 3 | | (c) With each submission of payroll information in the | 4 | | manner prescribed by the System, the
employer shall certify | 5 | | that the payroll information is correct and complies with all | 6 | | applicable
State and federal laws. | 7 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 8 | | (40 ILCS 5/15-111.5 new) | 9 | | Sec. 15-111.5. Basic compensation and earnings | 10 | | restrictions. For an employee who first
becomes a participant | 11 | | on or after the effective date of this amendatory Act of the | 12 | | 99th General
Assembly, basic compensation under Section 15-110 | 13 | | and earnings under Section 15-111 shall
not include bonuses, | 14 | | housing allowances, vehicle allowances, social club dues, or | 15 | | athletic club dues. | 16 | | (40 ILCS 5/15-113.11) | 17 | | Sec. 15-113.11. Service for periods of voluntary or | 18 | | involuntary furlough. | 19 | | (a) A participant may establish creditable service and | 20 | | earnings credit for periods of furlough beginning on or after | 21 | | July 1, 2009 and ending on or before June 30, 2011. To receive | 22 | | this credit, the participant must (i) apply in writing to the | 23 | | System before December 31, 2011; (ii) not receive compensation | 24 | | from an employer for any furlough period; and (iii) make , on an |
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| 1 | | after-tax basis, employee contributions required under Section | 2 | | 15-157 based on the rate of basic compensation during the | 3 | | periods of furlough, plus an amount determined by the Board to | 4 | | be equal to the employer's normal cost of the benefit, plus | 5 | | compounded interest at the actuarially assumed rate from the | 6 | | date of voluntary or involuntary furlough to the date of | 7 | | payment. The participant shall provide, at the time of | 8 | | application, written certification from the employer providing | 9 | | the total number of furlough days a participant has been | 10 | | required to take.
| 11 | | (b) A participant may establish creditable service and | 12 | | earnings credit for periods of furlough beginning on or after | 13 | | July 1, 2015 and ending on or before June 30, 2017. To receive | 14 | | this credit, the participant must (i) apply in writing to the | 15 | | System before December 31, 2018; (ii) not receive compensation | 16 | | from an employer for any furlough period; and (iii) make, on an | 17 | | after-tax basis, employee contributions required under Section | 18 | | 15-157 based on the rate of basic compensation during the | 19 | | periods of furlough, plus an amount determined by the Board to | 20 | | be equal to the employer's normal cost of the benefit, plus | 21 | | compounded interest at the actuarially assumed rate from the | 22 | | date of voluntary or involuntary furlough to the date of | 23 | | payment. The participant shall provide, at the time of | 24 | | application, written certification from the employer providing | 25 | | the total number of furlough days a participant has been | 26 | | required to take. |
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| 1 | | (Source: P.A. 96-961, eff. 7-2-10.) | 2 | | (40 ILCS 5/15-113.12 new) | 3 | | Sec. 15-113.12. Earnings for periods of voluntary pay | 4 | | reduction taken in lieu of furlough. A participant may | 5 | | establish earnings credit for periods of voluntary pay | 6 | | reduction, taken in lieu of furlough, beginning on or after | 7 | | July 1, 2015 and ending on or before June 30, 2017. To receive | 8 | | this credit, the participant must: (1) apply in writing to the | 9 | | System before December 31, 2018; and (2) make, on an after-tax | 10 | | basis, employee contributions required under Section 15-157 | 11 | | based on the voluntary reduction in pay, plus an amount | 12 | | determined by the Board to be equal to the employer's normal | 13 | | cost of the benefit, plus compounded interest at the | 14 | | actuarially assumed rate from the date of voluntary reduction | 15 | | in pay to the date of payment. The participant shall provide, | 16 | | at the time of application, (i) written certification from the | 17 | | employer providing the total voluntary reduction in pay per pay | 18 | | period for each pay period with a voluntary reduction in pay | 19 | | and (ii) written certification from the employer stating that | 20 | | the voluntary reduction in pay was taken in lieu of furlough.
| 21 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 22 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 23 | | which has been held unconstitutional)
| 24 | | Sec. 15-155. Employer contributions.
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| 1 | | (a) The State of Illinois shall make contributions by | 2 | | appropriations of
amounts which, together with the other | 3 | | employer contributions from trust,
federal, and other funds, | 4 | | employee contributions, income from investments,
and other | 5 | | income of this System, will be sufficient to meet the cost of
| 6 | | maintaining and administering the System on a 90% funded basis | 7 | | in accordance
with actuarial recommendations.
| 8 | | The Board shall determine the amount of State contributions | 9 | | required for
each fiscal year on the basis of the actuarial | 10 | | tables and other assumptions
adopted by the Board and the | 11 | | recommendations of the actuary, using the formula
in subsection | 12 | | (a-1).
| 13 | | (a-1) For State fiscal years 2012 through 2045, the minimum | 14 | | contribution
to the System to be made by the State for each | 15 | | fiscal year shall be an amount
determined by the System to be | 16 | | sufficient to bring the total assets of the
System up to 90% of | 17 | | the total actuarial liabilities of the System by the end of
| 18 | | State fiscal year 2045. In making these determinations, the | 19 | | required State
contribution shall be calculated each year as a | 20 | | level percentage of payroll
over the years remaining to and | 21 | | including fiscal year 2045 and shall be
determined under the | 22 | | projected unit credit actuarial cost method.
| 23 | | For State fiscal years 1996 through 2005, the State | 24 | | contribution to
the System, as a percentage of the applicable | 25 | | employee payroll, shall be
increased in equal annual increments | 26 | | so that by State fiscal year 2011, the
State is contributing at |
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| 1 | | the rate required under this Section.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State
contribution for State fiscal year 2006 is | 4 | | $166,641,900.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State
contribution for State fiscal year 2007 is | 7 | | $252,064,100.
| 8 | | For each of State fiscal years 2008 through 2009, the State | 9 | | contribution to
the System, as a percentage of the applicable | 10 | | employee payroll, shall be
increased in equal annual increments | 11 | | from the required State contribution for State fiscal year | 12 | | 2007, so that by State fiscal year 2011, the
State is | 13 | | contributing at the rate otherwise required under this Section.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State contribution for State fiscal year 2010 is | 16 | | $702,514,000 and shall be made from the State Pensions Fund and | 17 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 18 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 19 | | share of bond sale expenses determined by the System's share of | 20 | | total bond proceeds, (ii) any amounts received from the General | 21 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 22 | | proceeds due to the issuance of discounted bonds, if | 23 | | applicable. | 24 | | Notwithstanding any other provision of this Article, the
| 25 | | total required State contribution for State fiscal year 2011 is
| 26 | | the amount recertified by the System on or before April 1, 2011 |
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| 1 | | pursuant to Section 15-165 and shall be made from the State | 2 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 3 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 4 | | less (i) the pro rata
share of bond sale expenses determined by | 5 | | the System's share of
total bond proceeds, (ii) any amounts | 6 | | received from the General
Revenue Fund in fiscal year 2011, and | 7 | | (iii) any reduction in bond
proceeds due to the issuance of | 8 | | discounted bonds, if
applicable. | 9 | | Beginning in State fiscal year 2046, the minimum State | 10 | | contribution for
each fiscal year shall be the amount needed to | 11 | | maintain the total assets of
the System at 90% of the total | 12 | | actuarial liabilities of the System.
| 13 | | Amounts received by the System pursuant to Section 25 of | 14 | | the Budget Stabilization Act or Section 8.12 of the State | 15 | | Finance Act in any fiscal year do not reduce and do not | 16 | | constitute payment of any portion of the minimum State | 17 | | contribution required under this Article in that fiscal year. | 18 | | Such amounts shall not reduce, and shall not be included in the | 19 | | calculation of, the required State contributions under this | 20 | | Article in any future year until the System has reached a | 21 | | funding ratio of at least 90%. A reference in this Article to | 22 | | the "required State contribution" or any substantially similar | 23 | | term does not include or apply to any amounts payable to the | 24 | | System under Section 25 of the Budget Stabilization Act. | 25 | | Notwithstanding any other provision of this Section, the | 26 | | required State
contribution for State fiscal year 2005 and for |
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| 1 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 2 | | under this Section and
certified under Section 15-165, shall | 3 | | not exceed an amount equal to (i) the
amount of the required | 4 | | State contribution that would have been calculated under
this | 5 | | Section for that fiscal year if the System had not received any | 6 | | payments
under subsection (d) of Section 7.2 of the General | 7 | | Obligation Bond Act, minus
(ii) the portion of the State's | 8 | | total debt service payments for that fiscal
year on the bonds | 9 | | issued in fiscal year 2003 for the purposes of that Section | 10 | | 7.2, as determined
and certified by the Comptroller, that is | 11 | | the same as the System's portion of
the total moneys | 12 | | distributed under subsection (d) of Section 7.2 of the General
| 13 | | Obligation Bond Act. In determining this maximum for State | 14 | | fiscal years 2008 through 2010, however, the amount referred to | 15 | | in item (i) shall be increased, as a percentage of the | 16 | | applicable employee payroll, in equal increments calculated | 17 | | from the sum of the required State contribution for State | 18 | | fiscal year 2007 plus the applicable portion of the State's | 19 | | total debt service payments for fiscal year 2007 on the bonds | 20 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 21 | | the General
Obligation Bond Act, so that, by State fiscal year | 22 | | 2011, the
State is contributing at the rate otherwise required | 23 | | under this Section.
| 24 | | (b) If an employee is paid from trust or federal funds, the | 25 | | employer
shall pay to the Board contributions from those funds | 26 | | which are
sufficient to cover the accruing normal costs on |
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| 1 | | behalf of the employee.
However, universities having employees | 2 | | who are compensated out of local
auxiliary funds, income funds, | 3 | | or service enterprise funds are not required
to pay such | 4 | | contributions on behalf of those employees. The local auxiliary
| 5 | | funds, income funds, and service enterprise funds of | 6 | | universities shall not be
considered trust funds for the | 7 | | purpose of this Article, but funds of alumni
associations, | 8 | | foundations, and athletic associations which are affiliated | 9 | | with
the universities included as employers under this Article | 10 | | and other employers
which do not receive State appropriations | 11 | | are considered to be trust funds for
the purpose of this | 12 | | Article.
| 13 | | (b-1) The City of Urbana and the City of Champaign shall | 14 | | each make
employer contributions to this System for their | 15 | | respective firefighter
employees who participate in this | 16 | | System pursuant to subsection (h) of Section
15-107. The rate | 17 | | of contributions to be made by those municipalities shall
be | 18 | | determined annually by the Board on the basis of the actuarial | 19 | | assumptions
adopted by the Board and the recommendations of the | 20 | | actuary, and shall be
expressed as a percentage of salary for | 21 | | each such employee. The Board shall
certify the rate to the | 22 | | affected municipalities as soon as may be practical.
The | 23 | | employer contributions required under this subsection shall be | 24 | | remitted by
the municipality to the System at the same time and | 25 | | in the same manner as
employee contributions.
| 26 | | (c) Through State fiscal year 1995: The total employer |
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| 1 | | contribution shall
be apportioned among the various funds of | 2 | | the State and other employers,
whether trust, federal, or other | 3 | | funds, in accordance with actuarial procedures
approved by the | 4 | | Board. State of Illinois contributions for employers receiving
| 5 | | State appropriations for personal services shall be payable | 6 | | from appropriations
made to the employers or to the System. The | 7 | | contributions for Class I
community colleges covering earnings | 8 | | other than those paid from trust and
federal funds, shall be | 9 | | payable solely from appropriations to the Illinois
Community | 10 | | College Board or the System for employer contributions.
| 11 | | (d) Beginning in State fiscal year 1996, the required State | 12 | | contributions
to the System shall be appropriated directly to | 13 | | the System and shall be payable
through vouchers issued in | 14 | | accordance with subsection (c) of Section 15-165, except as | 15 | | provided in subsection (g).
| 16 | | (e) The State Comptroller shall draw warrants payable to | 17 | | the System upon
proper certification by the System or by the | 18 | | employer in accordance with the
appropriation laws and this | 19 | | Code.
| 20 | | (f) Normal costs under this Section means liability for
| 21 | | pensions and other benefits which accrues to the System because | 22 | | of the
credits earned for service rendered by the participants | 23 | | during the
fiscal year and expenses of administering the | 24 | | System, but shall not
include the principal of or any | 25 | | redemption premium or interest on any bonds
issued by the Board | 26 | | or any expenses incurred or deposits required in
connection |
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| 1 | | therewith.
| 2 | | (g) If the amount of a participant's earnings for any | 3 | | academic year used to determine the final rate of earnings, | 4 | | determined on a full-time equivalent basis, exceeds the amount | 5 | | of his or her earnings with the same employer for the previous | 6 | | academic year, determined on a full-time equivalent basis, by | 7 | | more than 6%, the participant's employer shall pay to the | 8 | | System, in addition to all other payments required under this | 9 | | Section and in accordance with guidelines established by the | 10 | | System, the present value of the increase in benefits resulting | 11 | | from the portion of the increase in earnings that is in excess | 12 | | of 6%. This present value shall be computed by the System on | 13 | | the basis of the actuarial assumptions and tables used in the | 14 | | most recent actuarial valuation of the System that is available | 15 | | at the time of the computation. The System may require the | 16 | | employer to provide any pertinent information or | 17 | | documentation. | 18 | | Whenever it determines that a payment is or may be required | 19 | | under this subsection (g), the System shall calculate the | 20 | | amount of the payment and bill the employer for that amount. | 21 | | The bill shall specify the calculations used to determine the | 22 | | amount due. If the employer disputes the amount of the bill, it | 23 | | may, within 30 days after receipt of the bill, apply to the | 24 | | System in writing for a recalculation. The application must | 25 | | specify in detail the grounds of the dispute and, if the | 26 | | employer asserts that the calculation is subject to subsection |
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| 1 | | (h) or (i) of this Section, must include an affidavit setting | 2 | | forth and attesting to all facts within the employer's | 3 | | knowledge that are pertinent to the applicability of subsection | 4 | | (h) or (i). Upon receiving a timely application for | 5 | | recalculation, the System shall review the application and, if | 6 | | appropriate, recalculate the amount due.
| 7 | | The employer contributions required under this subsection | 8 | | (g) may be paid in the form of a lump sum within 90 days after | 9 | | receipt of the bill. If the employer contributions are not paid | 10 | | within 90 days after receipt of the bill, then interest will be | 11 | | charged at a rate equal to the System's annual actuarially | 12 | | assumed rate of return on investment compounded annually from | 13 | | the 91st day after receipt of the bill. Payments must be | 14 | | concluded within 3 years after the employer's receipt of the | 15 | | bill. | 16 | | When assessing payment for any amount due under this | 17 | | subsection (g), the System shall include earnings, to the | 18 | | extent not established by a participant under Section 15-113.11 | 19 | | or 15-113.12, that would have been paid to the participant had | 20 | | the participant not taken (i) periods of voluntary or | 21 | | involuntary furlough occurring on or after July 1, 2015 and on | 22 | | or before June 30, 2017 or (ii) periods of voluntary pay | 23 | | reduction in lieu of furlough occurring on or after July 1, | 24 | | 2015 and on or before June 30, 2017. Determining earnings that | 25 | | would have been paid to a participant had the participant not | 26 | | taken periods of voluntary or involuntary furlough or periods |
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| 1 | | of voluntary pay reduction shall be the responsibility of the | 2 | | employer, and shall be reported in a manner prescribed by the | 3 | | System. | 4 | | (h) This subsection (h) applies only to payments made or | 5 | | salary increases given on or after June 1, 2005 but before July | 6 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 7 | | require the System to refund any payments received before July | 8 | | 31, 2006 (the effective date of Public Act 94-1057). | 9 | | When assessing payment for any amount due under subsection | 10 | | (g), the System shall exclude earnings increases paid to | 11 | | participants under contracts or collective bargaining | 12 | | agreements entered into, amended, or renewed before June 1, | 13 | | 2005.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (g), the System shall exclude earnings increases paid to a | 16 | | participant at a time when the participant is 10 or more years | 17 | | from retirement eligibility under Section 15-135.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (g), the System shall exclude earnings increases resulting from | 20 | | overload work, including a contract for summer teaching, or | 21 | | overtime when the employer has certified to the System, and the | 22 | | System has approved the certification, that: (i) in the case of | 23 | | overloads (A) the overload work is for the sole purpose of | 24 | | academic instruction in excess of the standard number of | 25 | | instruction hours for a full-time employee occurring during the | 26 | | academic year that the overload is paid and (B) the earnings |
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| 1 | | increases are equal to or less than the rate of pay for | 2 | | academic instruction computed using the participant's current | 3 | | salary rate and work schedule; and (ii) in the case of | 4 | | overtime, the overtime was necessary for the educational | 5 | | mission. | 6 | | When assessing payment for any amount due under subsection | 7 | | (g), the System shall exclude any earnings increase resulting | 8 | | from (i) a promotion for which the employee moves from one | 9 | | classification to a higher classification under the State | 10 | | Universities Civil Service System, (ii) a promotion in academic | 11 | | rank for a tenured or tenure-track faculty position, or (iii) a | 12 | | promotion that the Illinois Community College Board has | 13 | | recommended in accordance with subsection (k) of this Section. | 14 | | These earnings increases shall be excluded only if the | 15 | | promotion is to a position that has existed and been filled by | 16 | | a member for no less than one complete academic year and the | 17 | | earnings increase as a result of the promotion is an increase | 18 | | that results in an amount no greater than the average salary | 19 | | paid for other similar positions. | 20 | | (i) When assessing payment for any amount due under | 21 | | subsection (g), the System shall exclude any salary increase | 22 | | described in subsection (h) of this Section given on or after | 23 | | July 1, 2011 but before July 1, 2014 under a contract or | 24 | | collective bargaining agreement entered into, amended, or | 25 | | renewed on or after June 1, 2005 but before July 1, 2011. | 26 | | Notwithstanding any other provision of this Section, any |
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| 1 | | payments made or salary increases given after June 30, 2014 | 2 | | shall be used in assessing payment for any amount due under | 3 | | subsection (g) of this Section.
| 4 | | (j) The System shall prepare a report and file copies of | 5 | | the report with the Governor and the General Assembly by | 6 | | January 1, 2007 that contains all of the following information: | 7 | | (1) The number of recalculations required by the | 8 | | changes made to this Section by Public Act 94-1057 for each | 9 | | employer. | 10 | | (2) The dollar amount by which each employer's | 11 | | contribution to the System was changed due to | 12 | | recalculations required by Public Act 94-1057. | 13 | | (3) The total amount the System received from each | 14 | | employer as a result of the changes made to this Section by | 15 | | Public Act 94-4. | 16 | | (4) The increase in the required State contribution | 17 | | resulting from the changes made to this Section by Public | 18 | | Act 94-1057. | 19 | | (k) The Illinois Community College Board shall adopt rules | 20 | | for recommending lists of promotional positions submitted to | 21 | | the Board by community colleges and for reviewing the | 22 | | promotional lists on an annual basis. When recommending | 23 | | promotional lists, the Board shall consider the similarity of | 24 | | the positions submitted to those positions recognized for State | 25 | | universities by the State Universities Civil Service System. | 26 | | The Illinois Community College Board shall file a copy of its |
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| 1 | | findings with the System. The System shall consider the | 2 | | findings of the Illinois Community College Board when making | 3 | | determinations under this Section. The System shall not exclude | 4 | | any earnings increases resulting from a promotion when the | 5 | | promotion was not submitted by a community college. Nothing in | 6 | | this subsection (k) shall require any community college to | 7 | | submit any information to the Community College Board.
| 8 | | (l) For purposes of determining the required State | 9 | | contribution to the System, the value of the System's assets | 10 | | shall be equal to the actuarial value of the System's assets, | 11 | | which shall be calculated as follows: | 12 | | As of June 30, 2008, the actuarial value of the System's | 13 | | assets shall be equal to the market value of the assets as of | 14 | | that date. In determining the actuarial value of the System's | 15 | | assets for fiscal years after June 30, 2008, any actuarial | 16 | | gains or losses from investment return incurred in a fiscal | 17 | | year shall be recognized in equal annual amounts over the | 18 | | 5-year period following that fiscal year. | 19 | | (m) For purposes of determining the required State | 20 | | contribution to the system for a particular year, the actuarial | 21 | | value of assets shall be assumed to earn a rate of return equal | 22 | | to the system's actuarially assumed rate of return. | 23 | | (Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13; | 24 | | 98-463, eff. 8-16-13.)
| 25 | | (40 ILCS 5/15-158.2)
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| 1 | | Sec. 15-158.2. Self-managed plan.
| 2 | | (a) Purpose. The General Assembly finds that it is | 3 | | important for colleges
and universities to be able to attract | 4 | | and retain the most qualified employees
and that in order to | 5 | | attract and retain these employees, colleges and
universities | 6 | | should have the flexibility to provide a defined contribution
| 7 | | plan as an alternative for eligible employees who elect not to | 8 | | participate
in a defined benefit retirement program provided | 9 | | under this Article.
Accordingly, the State Universities | 10 | | Retirement System is hereby authorized to
establish and | 11 | | administer a self-managed plan, which shall offer | 12 | | participating
employees the opportunity to accumulate assets | 13 | | for retirement through a
combination of employee and employer | 14 | | contributions that may be invested in
mutual funds, collective | 15 | | investment funds, or other investment products and
used to | 16 | | purchase annuity contracts, either fixed or variable or a | 17 | | combination
thereof. The plan must be qualified under the | 18 | | Internal Revenue Code of 1986.
| 19 | | (b) Adoption by employers. Each employer subject to this | 20 | | Article may
elect to adopt the self-managed plan established | 21 | | under this Section; this
election is irrevocable. An employer's | 22 | | election to adopt the self-managed
plan makes available to the | 23 | | eligible employees of that employer the elections
described in | 24 | | Section 15-134.5.
| 25 | | The State Universities Retirement System shall be the plan | 26 | | sponsor for the
self-managed plan and shall prepare a plan |
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| 1 | | document and prescribe such rules
and procedures as are | 2 | | considered necessary or desirable for the administration
of the | 3 | | self-managed plan. Consistent with its fiduciary duty to the
| 4 | | participants and beneficiaries of the self-managed plan, the | 5 | | Board of Trustees
of the System may delegate aspects of plan | 6 | | administration as it sees fit to
companies authorized to do | 7 | | business in this State, to the employers, or to a
combination | 8 | | of both.
| 9 | | (c) Selection of service providers and funding vehicles. | 10 | | The System, in
consultation with the employers, shall solicit | 11 | | proposals to provide
administrative services and funding | 12 | | vehicles for the self-managed plan from
insurance and annuity | 13 | | companies and mutual fund companies, banks, trust
companies, or | 14 | | other financial institutions authorized to do business in this
| 15 | | State. In reviewing the proposals received and approving and | 16 | | contracting with
no fewer than 2 and no more than 7 companies, | 17 | | the Board of Trustees of the System shall
consider, among other | 18 | | things, the following criteria:
| 19 | | (1) the nature and extent of the benefits that would be | 20 | | provided
to the participants;
| 21 | | (2) the reasonableness of the benefits in relation to | 22 | | the premium
charged;
| 23 | | (3) the suitability of the benefits to the needs and
| 24 | | interests of the participating employees and the employer;
| 25 | | (4) the ability of the company to provide benefits | 26 | | under the contract and
the financial stability of the |
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| 1 | | company; and
| 2 | | (5) the efficacy of the contract in the recruitment and | 3 | | retention of
employees.
| 4 | | The System, in consultation with the employers, shall | 5 | | periodically review
each approved company. A company may | 6 | | continue to provide administrative
services and funding | 7 | | vehicles for the self-managed plan only so long as
it continues | 8 | | to be an approved company under contract with the Board.
| 9 | | (d) Employee Direction. Employees who are participating in | 10 | | the program
must be allowed to direct the transfer of their | 11 | | account balances among the
various investment options offered, | 12 | | subject to applicable contractual
provisions.
The participant | 13 | | shall not be deemed a fiduciary by reason of providing such
| 14 | | investment direction. A person who is a fiduciary shall not be | 15 | | liable for any
loss resulting from such investment direction | 16 | | and shall not be deemed to have
breached any fiduciary duty by | 17 | | acting in accordance with that direction. The System shall | 18 | | provide advance notice to the participant of the participant's | 19 | | obligation to direct the investment of employee and employer | 20 | | contributions into one or more investment funds selected by the | 21 | | System at the time he or she makes his or her initial | 22 | | retirement plan selection. If a participant fails to direct the | 23 | | investment of employee and employer contributions into the | 24 | | various investment options offered to the participant when | 25 | | making his or her initial retirement election choice, that | 26 | | failure shall require the System to invest the employee and |
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| 1 | | employer contributions in a default investment fund on behalf | 2 | | of the participant, and the investment shall be deemed to have | 3 | | been made at the participant's investment direction. The | 4 | | participant has the right to transfer account balances out of | 5 | | the default investment fund during time periods designated by | 6 | | the System.
Neither the System nor the employer guarantees any | 7 | | of the investments in the
employee's account balances.
| 8 | | (e) Participation. An employee eligible to participate in | 9 | | the
self-managed plan must make a written election in | 10 | | accordance with the
provisions of Section 15-134.5 and the | 11 | | procedures established by the System.
Participation in the | 12 | | self-managed plan by an electing employee shall begin
on the | 13 | | first day of the first pay period following the later of the | 14 | | date the
employee's election is filed with the System or the | 15 | | effective date as of
which the employee's employer begins to | 16 | | offer participation in the self-managed
plan. Employers may not | 17 | | make the self-managed plan available earlier than
January 1, | 18 | | 1998. An employee's participation in any other retirement | 19 | | program
administered by the System under this Article shall | 20 | | terminate on the date that
participation in the self-managed | 21 | | plan begins.
| 22 | | An employee who has elected to participate in the | 23 | | self-managed plan under
this Section must continue | 24 | | participation while employed in an eligible
position, and may | 25 | | not participate in any other retirement program administered
by | 26 | | the System under this Article while employed by that employer |
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| 1 | | or any other
employer that has adopted the self-managed plan, | 2 | | unless the self-managed plan
is terminated in accordance with | 3 | | subsection (i).
| 4 | | Notwithstanding any other provision of this Article, a Tier | 5 | | 2 member shall have the option to enroll in the self-managed | 6 | | plan. | 7 | | Participation in the self-managed plan under this Section | 8 | | shall constitute
membership in the State Universities | 9 | | Retirement System.
| 10 | | A participant under this Section shall be entitled to the | 11 | | benefits of
Article 20 of this Code.
| 12 | | (f) Establishment of Initial Account Balance. If at the | 13 | | time an employee
elects to participate in the self-managed plan | 14 | | he or she has rights and credits
in the System due to previous | 15 | | participation in the traditional benefit package,
the System | 16 | | shall establish for the employee an opening account balance in | 17 | | the
self-managed plan, equal to the amount of contribution | 18 | | refund that the employee
would be eligible to receive under | 19 | | Section 15-154 if the employee terminated
employment on that | 20 | | date and elected a refund of contributions, except that this
| 21 | | hypothetical refund shall include interest at the effective | 22 | | rate for the
respective years. The System shall transfer assets | 23 | | from the defined benefit
retirement program to the self-managed | 24 | | plan, as a tax free transfer in
accordance with Internal | 25 | | Revenue Service guidelines, for purposes of funding
the | 26 | | employee's opening account balance.
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| 1 | | (g) No Duplication of Service Credit. Notwithstanding any | 2 | | other provision
of this Article, an employee may not purchase | 3 | | or receive service or service
credit applicable to any other | 4 | | retirement program administered by the System
under this | 5 | | Article for any period during which the employee was a | 6 | | participant
in the self-managed plan established under this | 7 | | Section.
| 8 | | (h) Contributions. The self-managed plan shall be funded by | 9 | | contributions
from employees participating in the self-managed | 10 | | plan and employer
contributions as provided in this Section.
| 11 | | The contribution rate for employees participating in the | 12 | | self-managed plan
under this Section shall be equal to the | 13 | | employee contribution rate for other
participants in the | 14 | | System, as provided in Section 15-157. This required
| 15 | | contribution shall be made as an "employer pick-up" under | 16 | | Section 414(h) of the
Internal Revenue Code of 1986 or any | 17 | | successor Section thereof. Any employee
participating in the | 18 | | System's traditional benefit package prior to his or her
| 19 | | election to participate in the self-managed plan shall continue | 20 | | to have the
employer pick up the contributions required under | 21 | | Section 15-157. However, the
amounts picked up after the | 22 | | election of the self-managed plan shall be remitted
to and | 23 | | treated as assets of the self-managed plan. In no event shall | 24 | | an
employee have an option of receiving these amounts in cash. | 25 | | Employees may make
additional contributions to the
| 26 | | self-managed plan in accordance with procedures prescribed by |
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| 1 | | the System, to
the extent permitted under rules prescribed by | 2 | | the System.
| 3 | | The program shall provide for employer contributions to be | 4 | | credited to each
self-managed plan participant at a rate of | 5 | | 7.6%
of the participating employee's salary, less the amount | 6 | | used by
the System to provide disability benefits for the | 7 | | employee.
The amounts so credited
shall be paid into the | 8 | | participant's self-managed plan accounts in a manner
to be | 9 | | prescribed by the System.
| 10 | | An amount of employer contribution, not exceeding 1% of the | 11 | | participating
employee's salary, shall be used for the purpose | 12 | | of providing the disability
benefits of the System to the | 13 | | employee. Prior to the beginning of each plan
year under the | 14 | | self-managed plan, the Board of Trustees shall determine, as a
| 15 | | percentage of salary, the amount of employer contributions to | 16 | | be allocated
during that plan year for providing disability | 17 | | benefits for employees in the
self-managed plan.
| 18 | | The State of Illinois shall make contributions by | 19 | | appropriations to the
System of the employer contributions | 20 | | required for employees who participate in
the self-managed plan | 21 | | under this Section.
The amount required shall
be certified by | 22 | | the Board of Trustees of the System and paid by the State in
| 23 | | accordance with Section 15-165. The System shall not be | 24 | | obligated to remit the
required employer contributions to any | 25 | | of the insurance and annuity
companies, mutual fund
companies, | 26 | | banks, trust companies, financial institutions, or other |
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| 1 | | sponsors
of any of the funding vehicles offered under the | 2 | | self-managed plan
until it has received the required employer | 3 | | contributions from the State. In
the event of a deficiency in | 4 | | the amount of State contributions, the System
shall implement | 5 | | those procedures described in subsection (c) of Section 15-165
| 6 | | to obtain the required funding from the General Revenue
Fund.
| 7 | | (i) Termination. The self-managed plan authorized under | 8 | | this
Section may be terminated by the System, subject to the | 9 | | terms
of any relevant
contracts, and the System shall have no | 10 | | obligation to
reestablish the self-managed plan under this | 11 | | Section. This Section does not
create a right
to continued | 12 | | participation in any self-managed plan set up by the System | 13 | | under
this Section. If the self-managed plan is terminated,
the | 14 | | participants shall have the right to participate in one of the | 15 | | other
retirement programs offered by the System and receive | 16 | | service credit in such
other retirement program for any years | 17 | | of employment following the termination.
| 18 | | (j) Vesting; Withdrawal; Return to Service. A participant | 19 | | in the
self-managed plan becomes vested in the employer | 20 | | contributions credited to his
or her accounts in the | 21 | | self-managed plan on the earliest to occur of the
following: | 22 | | (1) completion of 5 years of service with an employer described | 23 | | in
Section 15-106; (2) the death of the participating employee | 24 | | while employed by
an employer described in Section 15-106, if | 25 | | the participant has completed at
least 1 1/2 years of service; | 26 | | or (3) the participant's election to retire and
apply the |
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| 1 | | reciprocal provisions of Article 20 of this Code.
| 2 | | A participant in the self-managed plan who receives a | 3 | | distribution of his or
her vested amounts from the self-managed | 4 | | plan
while not yet eligible for retirement under this Article
| 5 | | (and Article 20, if applicable) shall forfeit all service | 6 | | credit
and accrued rights in the System; if subsequently | 7 | | re-employed, the participant
shall be considered a new
| 8 | | employee. If a former participant again becomes a participating | 9 | | employee (or
becomes employed by a participating system under | 10 | | Article 20 of this Code) and
continues as such for at least 2 | 11 | | years, all such rights, service credits, and
previous status as | 12 | | a participant shall be restored upon repayment of the amount
of | 13 | | the distribution, without interest.
| 14 | | (k) Benefit amounts. If an employee who is vested in | 15 | | employer
contributions terminates employment, the employee | 16 | | shall be entitled to a
benefit which is based on the
account | 17 | | values attributable to both employer and
employee | 18 | | contributions and any
investment return thereon.
| 19 | | If an employee who is not vested in employer contributions | 20 | | terminates
employment, the employee shall be entitled to a | 21 | | benefit based solely on the
account values attributable to the | 22 | | employee's contributions and any investment
return thereon, | 23 | | and the employer contributions and any investment return
| 24 | | thereon shall be forfeited. Any employer contributions which | 25 | | are forfeited
shall be held in escrow by the
company investing | 26 | | those contributions and shall be used as directed by the
System |
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| 1 | | for future allocations of employer contributions or for the | 2 | | restoration
of amounts previously forfeited by former | 3 | | participants who again become
participating employees.
| 4 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 5 | | (40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
| 6 | | Sec. 15-168. To require information. | 7 | | (a) To require such information as shall be necessary for | 8 | | the proper
operation of the system from any participant or | 9 | | beneficiary or annuitant benefit recipient or from any current | 10 | | or former
employer of a participant or annuitant. Such | 11 | | information may include, but is not limited to, employment
| 12 | | contracts current or former participant .
| 13 | | (b) When the System submits a request for information under | 14 | | subsection (a) of this Section, the
employer shall respond | 15 | | within 90 calendar days of the System's request. Beginning on | 16 | | the 91st
calendar day after the System's request, the System | 17 | | may assess a penalty of $250 per calendar
day until receipt of | 18 | | the information by the System, with a maximum penalty of | 19 | | $25,000. All
payments must be received within one calendar year | 20 | | after receipt of the information by the System or one
calendar | 21 | | year of reaching the maximum penalty of $25,000, whichever | 22 | | occurs earlier. If the
employer fails to make complete payment | 23 | | within the applicable timeframe, then the System may,
after | 24 | | giving notice to the employer, certify the delinquent amount to | 25 | | the State Comptroller, and
the Comptroller shall thereupon |
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| 1 | | deduct the certified delinquent amount from State funds payable
| 2 | | to the employer and pay them instead to the System. | 3 | | (c) If a participant, beneficiary, or annuitant fails to | 4 | | provide any information that is necessary for
the calculation, | 5 | | payment, or finalization of any benefit under this Article | 6 | | within 90 calendar days
of the date of the System's request | 7 | | under subsection (a) of this Section, then the System may
| 8 | | immediately cease processing the benefit and may not pay any | 9 | | additional benefit payment to the participant, beneficiary, or | 10 | | annuitant until
the requested information is provided. | 11 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
| 12 | | (40 ILCS 5/15-168.2) | 13 | | Sec. 15-168.2. Audit of employers. | 14 | | (a) Beginning August 1, 2013, the System may audit the | 15 | | employment records and payroll records of all employers. When | 16 | | the System audits an employer, it shall specify the exact | 17 | | information it requires, which may include but need not be | 18 | | limited to the names, titles, and earnings history of every | 19 | | individual receiving compensation from the employer. If an | 20 | | employer is audited by the System, then the employer must | 21 | | provide to the System all necessary documents and records | 22 | | within 60 calendar days after receiving notification from the | 23 | | System. When the System audits an employer, it shall send | 24 | | related correspondence by certified mail.
| 25 | | (b) When the System submits a request for information under |
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| 1 | | subsection (a) of this Section, the
employer shall respond | 2 | | within 60 calendar days of the System's request. Beginning on | 3 | | the 61st
calendar day after the System's request, the System | 4 | | may assess a penalty of $250 per calendar
day until receipt of | 5 | | the information by the System, with a maximum penalty of | 6 | | $25,000. All
payments must be received by the System within one | 7 | | calendar year after receipt of the
information by the System or | 8 | | one calendar year after reaching the maximum penalty of | 9 | | $25,000, whichever
occurs earlier. If the employer fails to | 10 | | make complete payment within the applicable timeframe,
then the | 11 | | System may, after giving notice to the employer, certify the | 12 | | delinquent amount to the
State Comptroller, and the Comptroller | 13 | | shall thereupon deduct the certified delinquent amount
from | 14 | | State funds payable to the employer and pay them instead to the | 15 | | System. | 16 | | (Source: P.A. 97-968, eff. 8-16-12.)".
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