Full Text of SB0369 100th General Assembly
SB0369sam001 100TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 5/30/2017
| | 10000SB0369sam001 | | LRB100 05077 RPS 27303 a |
|
| 1 | | AMENDMENT TO SENATE BILL 369
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 369 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, | 6 | | 2-126, 2-134, and 2-162 and by adding Sections 2-105.3, | 7 | | 2-107.9, 2-107.10, and 2-110.3 as follows: | 8 | | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
| 9 | | Sec. 2-101. Creation of system. A retirement system is | 10 | | created to provide
retirement annuities, survivor's annuities | 11 | | and other benefits for certain
members of the General Assembly, | 12 | | certain elected state officials , and their
beneficiaries.
| 13 | | The system shall be known as the "General Assembly | 14 | | Retirement System".
All its funds and property shall be a trust | 15 | | separate from all other
entities, maintained for the purpose of | 16 | | securing payment of annuities and
benefits under this Article.
|
| | | 10000SB0369sam001 | - 2 - | LRB100 05077 RPS 27303 a |
|
| 1 | | Participation in the retirement system created under this | 2 | | Article is
restricted to persons who became participants before | 3 | | the effective date of this amendatory Act of the 100th General | 4 | | Assembly.
Beginning on that date, the System shall not accept | 5 | | any new participants.
| 6 | | (Source: P.A. 83-1440.)
| 7 | | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
| 8 | | Sec. 2-105. Member. "Member": Members of the General | 9 | | Assembly of this
State , including persons who enter military | 10 | | service while a member of the
General Assembly , and any person | 11 | | serving as Governor, Lieutenant Governor,
Secretary of State, | 12 | | Treasurer, Comptroller, or Attorney General for the period
of | 13 | | service in such office.
| 14 | | Any person who has served for 10 or more years as Clerk or | 15 | | Assistant Clerk
of the House of Representatives, Secretary or | 16 | | Assistant Secretary of the
Senate, or any combination thereof, | 17 | | may elect to become a member
of this system while thenceforth | 18 | | engaged in such service by filing a
written election with the | 19 | | board. Any person so electing shall be
deemed an active member | 20 | | of the General Assembly for the purpose of validating
and | 21 | | transferring any service credits earned under any of the funds | 22 | | and systems
established under Articles 3 through 18 of this | 23 | | Code.
| 24 | | However, notwithstanding any other provision of this | 25 | | Article, a person
shall not be deemed a member for the purposes |
| | | 10000SB0369sam001 | - 3 - | LRB100 05077 RPS 27303 a |
|
| 1 | | of this Article unless he or she
became a participant of the | 2 | | System before the effective date of this amendatory Act of the | 3 | | 100th General Assembly.
| 4 | | (Source: P.A. 85-1008.)
| 5 | | (40 ILCS 5/2-105.3 new) | 6 | | Sec. 2-105.3. Tier 1 participant; Tier 2 participant. "Tier | 7 | | 1 participant": A participant who first became a participant | 8 | | before January 1, 2011. | 9 | | "Tier 2 participant": A participant who first became a | 10 | | participant on or after January 1, 2011.
| 11 | | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
| 12 | | Sec. 2-107. Participant. "Participant": Any member who | 13 | | elects to
participate; and any former member who elects to | 14 | | continue participation
under Section 2-117.1, for the duration | 15 | | of such continued participation. However, notwithstanding any | 16 | | other provision of this Article, a person
shall not be deemed a | 17 | | participant for the purposes of this Article unless he or she
| 18 | | became a participant of the System before the effective date of | 19 | | this amendatory Act of the 100th General Assembly.
| 20 | | (Source: P.A. 86-1488.)
| 21 | | (40 ILCS 5/2-107.9 new) | 22 | | Sec. 2-107.9. Future increase in income. "Future increase | 23 | | in income" means an increase to a Tier 1 participant's base pay |
| | | 10000SB0369sam001 | - 4 - | LRB100 05077 RPS 27303 a |
|
| 1 | | that is offered to the Tier 1 participant for one year of | 2 | | service as a member of the General Assembly for a term | 3 | | beginning on or after January 9, 2019 that qualifies as | 4 | | "salary", as defined in Section 2-108, or would qualify as | 5 | | "salary" but for the fact that it was offered to and accepted | 6 | | by the Tier 1 active participant under the condition set forth | 7 | | in subsection (c) of Section 2-110.3. | 8 | | "Future increase in income" means an increase to a Tier 1 | 9 | | participant's base pay that is offered to a Tier 1 participant | 10 | | for one year of service as Governor, Lieutenant Governor, | 11 | | Secretary of State, Treasurer, Comptroller, or Attorney | 12 | | General for a term of office beginning on or after January 7, | 13 | | 2019 that qualifies as "salary", as defined in Section 2-108, | 14 | | or would qualify as "salary" but for the fact that it was | 15 | | offered to and accepted by the Tier 1 participant under the | 16 | | condition set forth in subsection (c) of Section 2-110.3. | 17 | | "Future increase in income" means an increase to a Tier 1 | 18 | | participant's base pay that is offered to the Tier 1 | 19 | | participant for one year of service as a participant under | 20 | | Section 2-117.1, as Clerk or Assistant Clerk of the House of | 21 | | Representatives, or as Secretary or Assistant Secretary of the | 22 | | Senate after June 30, 2018 that qualifies as "salary", as | 23 | | defined in Section 2-108, or would qualify as "salary" but for | 24 | | the fact that it was offered to and accepted by the Tier 1 | 25 | | participant under the condition set forth in subsection (c) of | 26 | | Section 2-110.3. |
| | | 10000SB0369sam001 | - 5 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (40 ILCS 5/2-107.10 new) | 2 | | Sec. 2-107.10. Base pay. As used in Section 2-107.9 of this | 3 | | Code, "base pay" means the Tier 1 participant's salary for one | 4 | | year of service as a member of the General Assembly for the | 5 | | term of office expiring on January 8, 2019 or January 13, 2021, | 6 | | whichever is applicable. "Base pay" means the Tier 1 | 7 | | participant's salary for one year of service as Governor, | 8 | | Lieutenant Governor, Secretary of State, Treasurer, | 9 | | Comptroller, or Attorney General for the term of office | 10 | | expiring on January 6, 2019. "Base pay" means the Tier 1 | 11 | | participant's annualized rate of salary as of June 30, 2018 for | 12 | | one year of service as a participant under Section 2-117.1, as | 13 | | Clerk or Assistant Clerk of the House of Representatives, or as | 14 | | Secretary or Assistant Secretary of the Senate. | 15 | | For a person returning to active service as a Tier 1 | 16 | | participant for service as a member of the General Assembly, | 17 | | Governor, Lieutenant Governor, Secretary of State, Treasurer, | 18 | | Comptroller, or Attorney General after June 30, 2018, however, | 19 | | "base pay" means the salary paid to the Tier 1 participant for | 20 | | one year of service as of the participant's last date of | 21 | | service. If the salary paid to the Tier 1 participant returning | 22 | | to active service as a member of the General Assembly, | 23 | | Governor, Lieutenant Governor, Secretary of State, Treasurer, | 24 | | Comptroller, or Attorney General is lower than the salary paid | 25 | | to the Tier 1 participant for the one year of service as of the |
| | | 10000SB0369sam001 | - 6 - | LRB100 05077 RPS 27303 a |
|
| 1 | | participant's last date of service, then the lower salary | 2 | | amount shall constitute the participant's "base pay". | 3 | | For a person returning to active service as a Tier 1 | 4 | | participant for service as a participant under Section 2-117.1 | 5 | | as Clerk or Assistant Clerk of the House of Representatives or | 6 | | as Secretary or Assistant Secretary of the Senate after June | 7 | | 30, 2018, however, "base pay" means the Tier 1 participant's | 8 | | annualized rate of salary as of the participant's last date of | 9 | | service prior to July 1, 2018. | 10 | | The System shall calculate the base pay of each Tier 1 | 11 | | participant pursuant to this Section.
| 12 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| 13 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 14 | | which has been
held unconstitutional)
| 15 | | Sec. 2-108. Salary. "Salary": | 16 | | (1) For members of the General Assembly,
the total | 17 | | compensation paid to the member by the State for one
year of | 18 | | service, including the additional amounts, if any, paid to
the | 19 | | member as an officer pursuant to Section 1 of "An Act
in | 20 | | relation to the compensation and emoluments of the members of | 21 | | the
General Assembly", approved December 6, 1907, as now or | 22 | | hereafter
amended.
| 23 | | (2) For the State executive officers specified
in Section | 24 | | 2-105, the total compensation paid to the member for one year
| 25 | | of service.
|
| | | 10000SB0369sam001 | - 7 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (3) For members of the System who are participants under | 2 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | 3 | | of the House of
Representatives or Secretary or Assistant | 4 | | Secretary of the Senate, the
total compensation paid to the | 5 | | member for one year of service, but not to
exceed the salary of | 6 | | the highest salaried officer of the General Assembly.
| 7 | | However, in the event that federal law results in any | 8 | | participant
receiving imputed income based on the value of | 9 | | group term life insurance
provided by the State, such imputed | 10 | | income shall not be included in salary
for the purposes of this | 11 | | Article.
| 12 | | Notwithstanding any other provision of this Section, | 13 | | "salary" does not include any future increase in income that is | 14 | | offered for service to a Tier 1 participant under this Article | 15 | | pursuant to the condition set forth in subsection (c) of | 16 | | Section 2-110.3 and accepted under that condition by a Tier 1 | 17 | | participant who has made the election under paragraph (2) of | 18 | | subsection (a) of Section 2-110.3. | 19 | | Notwithstanding any other provision of this Section, | 20 | | "salary" does not include any consideration payment made to a | 21 | | Tier 1 participant. | 22 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| 23 | | (40 ILCS 5/2-110.3 new) | 24 | | Sec. 2-110.3. Election by Tier 1 participants. | 25 | | (a) Each active Tier 1 participant shall make an |
| | | 10000SB0369sam001 | - 8 - | LRB100 05077 RPS 27303 a |
|
| 1 | | irrevocable election either: | 2 | | (1) to agree to delay his or her eligibility for | 3 | | automatic annual increases in retirement annuity as | 4 | | provided in subsection (a-1) of Section 2-119.1 and to have | 5 | | the amount of the automatic annual increases in his or her | 6 | | retirement annuity and survivor's annuity that are | 7 | | otherwise provided for in this Article calculated, | 8 | | instead, as provided in subsection (a-1) of Section | 9 | | 2-119.1; or | 10 | | (2) to not agree to paragraph (1) of this subsection. | 11 | | The election required under this subsection (a) shall be | 12 | | made by each active Tier 1 participant no earlier than January | 13 | | 1, 2018 and no later than March 31, 2018, except that a person | 14 | | who returns to active service as a Tier 1 participant under | 15 | | this Article on or after January 1, 2018 and has not yet made | 16 | | an election under this Section must make the election under | 17 | | this subsection (a) within 60 days after returning to active | 18 | | service as a Tier 1 participant. | 19 | | If a Tier 1 participant fails for any reason to make a | 20 | | required election under this subsection within the time | 21 | | specified, then the participant shall be deemed to have made | 22 | | the election under paragraph (2) of this subsection. | 23 | | (a-5) If this Section is enjoined or stayed by an Illinois | 24 | | court or a court of competent jurisdiction pending the entry of | 25 | | a final and unappealable decision, and this Section is | 26 | | determined to be constitutional or otherwise valid by a final |
| | | 10000SB0369sam001 | - 9 - | LRB100 05077 RPS 27303 a |
|
| 1 | | unappealable decision of an Illinois court or a court of | 2 | | competent jurisdiction, then the election procedure set forth | 3 | | in subsection (a) of this Section shall commence on the 180th | 4 | | calendar day after the date of the issuance of the final | 5 | | unappealable decision and shall conclude at the end of the | 6 | | 270th calendar day after that date. | 7 | | (a-10) All elections under subsection (a) that are made or | 8 | | deemed to be made before July 1, 2018 shall take effect on July | 9 | | 1, 2018. Elections that are made or deemed to be made on or | 10 | | after July 1, 2018 shall take effect on the first day of the | 11 | | month following the month in which the election is made or | 12 | | deemed to be made. | 13 | | (b) As adequate and legal consideration provided under this | 14 | | amendatory Act of the 100th General Assembly for making an | 15 | | election under paragraph (1) of subsection (a) of this Section, | 16 | | the State of Illinois shall be expressly and irrevocably | 17 | | prohibited from offering any future increases in income to a | 18 | | Tier 1 participant who has made an election under paragraph (1) | 19 | | of subsection (a) of this Section on the condition of not | 20 | | constituting salary under Section 2-108. | 21 | | As adequate and legal consideration provided under this | 22 | | amendatory Act of the 100th General Assembly for making an | 23 | | election under paragraph (1) of subsection (a) of this Section, | 24 | | each Tier 1 participant who has made an election under | 25 | | paragraph (1) of subsection (a) of this Section shall receive a | 26 | | consideration payment equal to 10% of the contributions made by |
| | | 10000SB0369sam001 | - 10 - | LRB100 05077 RPS 27303 a |
|
| 1 | | or on behalf of the employee under Section 2-126 before the | 2 | | effective date of that election. The State Comptroller shall | 3 | | pay the consideration payment to the Tier 1 participant out of | 4 | | funds appropriated for that purpose under Section 1.9 of the | 5 | | State Pension Funds Continuing Appropriation Act. The System | 6 | | shall calculate the amount of each consideration payment and, | 7 | | by July 1, 2018, shall certify to the State Comptroller the | 8 | | amount of the consideration payment, together with the name, | 9 | | address, and any other available payment information of the | 10 | | Tier 1 participant as found in the records of the System. The | 11 | | System shall make additional calculations and certifications | 12 | | of consideration payments to the State Comptroller as the | 13 | | System deems necessary. | 14 | | (c) A Tier 1 participant who makes the election under | 15 | | paragraph (2) of subsection (a) of this Section shall not be | 16 | | subject to paragraph (1) of subsection (a) of this Section. | 17 | | However, each future increase in income offered for service as | 18 | | a member under this Article to a Tier 1 participant who has | 19 | | made the election under paragraph (2) of subsection (a) of this | 20 | | Section shall be offered expressly and irrevocably on the | 21 | | condition of not constituting salary under Section 2-108 and | 22 | | that the Tier 1 participant's acceptance of the offered future | 23 | | increase in income shall constitute his or her agreement to | 24 | | that condition. | 25 | | (d) The System shall make a good faith effort to contact | 26 | | each Tier 1 participant subject to this Section. The System |
| | | 10000SB0369sam001 | - 11 - | LRB100 05077 RPS 27303 a |
|
| 1 | | shall mail information describing the required election to each | 2 | | Tier 1 participant by United States Postal Service mail to his | 3 | | or her last known address on file with the System. If the Tier | 4 | | 1 participant is not responsive to other means of contact, it | 5 | | is sufficient for the System to publish the details of any | 6 | | required elections on its website or to publish those details | 7 | | in a regularly published newsletter or other existing public | 8 | | forum. | 9 | | Tier 1 participants who are subject to this Section shall | 10 | | be provided with an election packet containing information | 11 | | regarding their options, as well as the forms necessary to make | 12 | | the required election. Upon request, the System shall offer | 13 | | Tier 1 participants an opportunity to receive information from | 14 | | the System before making the required election. The information | 15 | | may be provided through video materials, group presentations, | 16 | | individual consultation with a member or authorized | 17 | | representative of the System in person or by telephone or other | 18 | | electronic means, or any combination of those methods. The | 19 | | System shall not provide advice or counseling with respect to | 20 | | which election a Tier 1 participant should make or specific to | 21 | | the legal or tax circumstances of or consequences to the Tier 1 | 22 | | participant. | 23 | | The System shall inform Tier 1 participants in the election | 24 | | packet required under this subsection that the Tier 1 | 25 | | participant may also wish to obtain information and counsel | 26 | | relating to the election required under this Section from any |
| | | 10000SB0369sam001 | - 12 - | LRB100 05077 RPS 27303 a |
|
| 1 | | other available source, including, but not limited to, labor | 2 | | organizations and private counsel. | 3 | | In no event shall the System, its staff, or the Board be | 4 | | held liable for any information given to a member regarding the | 5 | | elections under this Section. The System shall provide | 6 | | information concerning the impact of the election set forth in | 7 | | this Section. | 8 | | (e) Notwithstanding any other provision of law, each future | 9 | | increase in income offered by the State of Illinois for service | 10 | | as a member must be offered expressly and irrevocably on the | 11 | | condition of not constituting "salary" under Section 2-108 to | 12 | | any Tier 1 participant who has made an election under paragraph | 13 | | (2) of subsection (a) of this Section. The offer shall also | 14 | | provide that the Tier 1 participant's acceptance of the offered | 15 | | future increase in income shall constitute his or her agreement | 16 | | to the condition set forth in this subsection. | 17 | | For purposes of legislative intent, the condition set forth | 18 | | in this subsection shall be construed in a manner that ensures | 19 | | that the condition is not violated or circumvented through any | 20 | | contrivance of any kind. | 21 | | (f) A member's election under this Section is not a | 22 | | prohibited election under subdivision (j)(1) of Section 1-119 | 23 | | of this Code. | 24 | | (g) No provision of this Section shall be interpreted in a | 25 | | way that would cause the System to cease to be a qualified plan | 26 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
| | | 10000SB0369sam001 | - 13 - | LRB100 05077 RPS 27303 a |
|
| 1 | | provisions of this Section shall be subject to and implemented | 2 | | in a manner that complies with Section 11 of Article IV of the | 3 | | Illinois Constitution and Section 21 of Article V of the | 4 | | Illinois Constitution.
| 5 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 6 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 7 | | which has been
held unconstitutional)
| 8 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 9 | | (a) Except as provided in subsection (a-1), a A participant | 10 | | who retires after June 30, 1967, and who has not
received an | 11 | | initial increase under this Section before the effective date
| 12 | | of this amendatory Act of 1991, shall, in January or July next | 13 | | following
the first anniversary of retirement, whichever | 14 | | occurs first, and in the same
month of each year thereafter, | 15 | | but in no event prior to age 60, have the amount
of the | 16 | | originally granted retirement annuity increased as follows: | 17 | | for each
year through 1971, 1 1/2%; for each year from 1972 | 18 | | through 1979, 2%; and for
1980 and each year thereafter, 3%. | 19 | | Annuitants who have received an initial
increase under this | 20 | | subsection prior to the effective date of this amendatory
Act | 21 | | of 1991 shall continue to receive their annual increases in the | 22 | | same month
as the initial increase.
| 23 | | (a-1) Notwithstanding any other provision of this Article, | 24 | | for a Tier 1 participant who made the election under paragraph | 25 | | (1) of subsection (a) of Section 2-110.3: |
| | | 10000SB0369sam001 | - 14 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (1) The initial increase in retirement annuity under | 2 | | this Section shall occur on the January 1 occurring either | 3 | | on or after the attainment of age 67 or the fifth | 4 | | anniversary of the annuity start date, whichever is | 5 | | earlier. | 6 | | (2) The amount of each automatic annual increase in | 7 | | retirement annuity or survivor's annuity occurring on or | 8 | | after the effective date of that election shall be | 9 | | calculated as a percentage of the originally granted | 10 | | retirement annuity or survivor's annuity, equal to 3% or | 11 | | one-half the annual unadjusted percentage increase (but | 12 | | not less than zero) in the consumer price index-u for the | 13 | | 12 months ending with the September preceding each November | 14 | | 1, whichever is less. If the annual unadjusted percentage | 15 | | change in the consumer price index-u for the 12 months | 16 | | ending with the September preceding each November 1 is zero | 17 | | or there is a decrease, then the annuity shall not be | 18 | | increased. | 19 | | For the purposes of this Section, "consumer price index-u" | 20 | | means
the index published by the Bureau of Labor Statistics of | 21 | | the United States
Department of Labor that measures the average | 22 | | change in prices of goods and
services purchased by all urban | 23 | | consumers, United States city average, all
items, 1982-84 = | 24 | | 100. The new amount resulting from each annual adjustment
shall | 25 | | be determined by the Public Pension Division of the Department | 26 | | of Insurance and made available to the board of the retirement |
| | | 10000SB0369sam001 | - 15 - | LRB100 05077 RPS 27303 a |
|
| 1 | | system by November 1 of each year. | 2 | | (b) Beginning January 1, 1990, for eligible participants | 3 | | who remain
in service after attaining 20 years of creditable | 4 | | service, the 3% increases
provided under subsection (a) shall | 5 | | begin to accrue on the January 1 next
following the date upon | 6 | | which the participant (1) attains age 55, or (2)
attains 20 | 7 | | years of creditable service, whichever occurs later, and shall
| 8 | | continue to accrue while the participant remains in service; | 9 | | such increases
shall become payable on January 1 or July 1, | 10 | | whichever occurs first, next
following the first anniversary of | 11 | | retirement. For any person who has service
credit in the System | 12 | | for the entire period from January 15, 1969 through
December | 13 | | 31, 1992, regardless of the date of termination of service, the
| 14 | | reference to age 55 in clause (1) of this subsection (b) shall | 15 | | be deemed to
mean age 50.
| 16 | | This subsection (b) does not apply to any person who first | 17 | | becomes a
member of the System after August 8, 2003 ( the | 18 | | effective date of Public Act 93-494) this amendatory Act of
the | 19 | | 93rd General Assembly .
| 20 | | (b-5) Notwithstanding any other provision of this Article, | 21 | | a participant who first becomes a participant on or after | 22 | | January 1, 2011 (the effective date of Public Act 96-889) | 23 | | shall, in January or July next following the first anniversary | 24 | | of retirement, whichever occurs first, and in the same month of | 25 | | each year thereafter, but in no event prior to age 67, have the | 26 | | amount of the retirement annuity then being paid increased by |
| | | 10000SB0369sam001 | - 16 - | LRB100 05077 RPS 27303 a |
|
| 1 | | 3% or the annual unadjusted percentage increase in the Consumer | 2 | | Price Index for All Urban Consumers as determined by the Public | 3 | | Pension Division of the Department of Insurance under | 4 | | subsection (a) of Section 2-108.1, whichever is less. | 5 | | (c) The foregoing provisions relating to automatic | 6 | | increases are not
applicable to a participant who retires | 7 | | before having made contributions
(at the rate prescribed in | 8 | | Section 2-126) for automatic increases for less
than the | 9 | | equivalent of one full year. However, in order to be eligible | 10 | | for
the automatic increases, such a participant may make | 11 | | arrangements to pay
to the system the amount required to bring | 12 | | the total contributions for the
automatic increase to the | 13 | | equivalent of one year's contributions based upon
his or her | 14 | | last salary.
| 15 | | (d) A participant who terminated service prior to July 1, | 16 | | 1967, with at
least 14 years of service is entitled to an | 17 | | increase in retirement annuity
beginning January, 1976, and to | 18 | | additional increases in January of each
year thereafter.
| 19 | | The initial increase shall be 1 1/2% of the originally | 20 | | granted retirement
annuity multiplied by the number of full | 21 | | years that the annuitant was in
receipt of such annuity prior | 22 | | to January 1, 1972, plus 2% of the originally
granted | 23 | | retirement annuity for each year after that date. The | 24 | | subsequent
annual increases shall be at the rate of 2% of the | 25 | | originally granted
retirement annuity for each year through | 26 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
| | | 10000SB0369sam001 | - 17 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (e) Beginning January 1, 1990, and except as provided in | 2 | | subsection (a-1), all automatic annual increases payable
under | 3 | | this Section shall be calculated as a percentage of the total | 4 | | annuity
payable at the time of the increase, including previous | 5 | | increases granted
under this Article.
| 6 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 7 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 8 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 9 | | which has been
held unconstitutional)
| 10 | | Sec. 2-124. Contributions by State.
| 11 | | (a) The State shall make contributions to the System by
| 12 | | appropriations of amounts which, together with the | 13 | | contributions of
participants, interest earned on investments, | 14 | | and other income
will meet the cost of maintaining and | 15 | | administering the System on a 90%
funded basis in accordance | 16 | | with actuarial recommendations.
| 17 | | (b) The Board shall determine the amount of State
| 18 | | contributions required for each fiscal year on the basis of the
| 19 | | actuarial tables and other assumptions adopted by the Board and | 20 | | the
prescribed rate of interest, using the formula in | 21 | | subsection (c).
| 22 | | (c) For State fiscal years 2012 through 2045 (except as | 23 | | otherwise provided for fiscal year 2019) , the minimum | 24 | | contribution
to the System to be made by the State for each | 25 | | fiscal year shall be an amount
determined by the System to be |
| | | 10000SB0369sam001 | - 18 - | LRB100 05077 RPS 27303 a |
|
| 1 | | sufficient to bring the total assets of the
System up to 90% of | 2 | | the total actuarial liabilities of the System by the end of
| 3 | | State fiscal year 2045. In making these determinations, the | 4 | | required State
contribution shall be calculated each year as a | 5 | | level percentage of payroll
over the years remaining to and | 6 | | including fiscal year 2045 and shall be
determined under the | 7 | | projected unit credit actuarial cost method.
| 8 | | For State fiscal year 2019: | 9 | | (1) The initial calculation and certification shall be | 10 | | based on the amount determined above. | 11 | | (2) For purposes of the recertification due on or | 12 | | before May 1, 2018, the recalculation of the required State | 13 | | contribution for fiscal year 2019 shall take into account | 14 | | the effect on the System's liabilities of the elections | 15 | | made under Section 2-110.3. | 16 | | (3) For purposes of the recertification due on or | 17 | | before October 1, 2018, the total required State | 18 | | contribution for fiscal year 2019 shall be reduced by the | 19 | | amount of the consideration payments made to Tier 1 | 20 | | participants who made the election under paragraph (1) of | 21 | | subsection (a) of Section 2-110.3. | 22 | | For State fiscal years 1996 through 2005, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | so that by State fiscal year 2011, the
State is contributing at | 26 | | the rate required under this Section.
|
| | | 10000SB0369sam001 | - 19 - | LRB100 05077 RPS 27303 a |
|
| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2006 is | 3 | | $4,157,000.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2007 is | 6 | | $5,220,300.
| 7 | | For each of State fiscal years 2008 through 2009, the State | 8 | | contribution to
the System, as a percentage of the applicable | 9 | | employee payroll, shall be
increased in equal annual increments | 10 | | from the required State contribution for State fiscal year | 11 | | 2007, so that by State fiscal year 2011, the
State is | 12 | | contributing at the rate otherwise required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2010 is | 15 | | $10,454,000 and shall be made from the proceeds of bonds sold | 16 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 17 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 18 | | expenses determined by the System's share of total bond | 19 | | proceeds, (ii) any amounts received from the General Revenue | 20 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 21 | | proceeds due to the issuance of discounted bonds, if | 22 | | applicable. | 23 | | Notwithstanding any other provision of this Article, the
| 24 | | total required State contribution for State fiscal year 2011 is
| 25 | | the amount recertified by the System on or before April 1, 2011 | 26 | | pursuant to Section 2-134 and shall be made from the proceeds |
| | | 10000SB0369sam001 | - 20 - | LRB100 05077 RPS 27303 a |
|
| 1 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 2 | | the General
Obligation Bond Act, less (i) the pro rata share of | 3 | | bond sale
expenses determined by the System's share of total | 4 | | bond
proceeds, (ii) any amounts received from the General | 5 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 6 | | bond
proceeds due to the issuance of discounted bonds, if
| 7 | | applicable. | 8 | | Beginning in State fiscal year 2046, the minimum State | 9 | | contribution for
each fiscal year shall be the amount needed to | 10 | | maintain the total assets of
the System at 90% of the total | 11 | | actuarial liabilities of the System.
| 12 | | Amounts received by the System pursuant to Section 25 of | 13 | | the Budget Stabilization Act or Section 8.12 of the State | 14 | | Finance Act in any fiscal year do not reduce and do not | 15 | | constitute payment of any portion of the minimum State | 16 | | contribution required under this Article in that fiscal year. | 17 | | Such amounts shall not reduce, and shall not be included in the | 18 | | calculation of, the required State contributions under this | 19 | | Article in any future year until the System has reached a | 20 | | funding ratio of at least 90%. A reference in this Article to | 21 | | the "required State contribution" or any substantially similar | 22 | | term does not include or apply to any amounts payable to the | 23 | | System under Section 25 of the Budget Stabilization Act.
| 24 | | Notwithstanding any other provision of this Section, the | 25 | | required State
contribution for State fiscal year 2005 and for | 26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
| | | 10000SB0369sam001 | - 21 - | LRB100 05077 RPS 27303 a |
|
| 1 | | under this Section and
certified under Section 2-134, shall not | 2 | | exceed an amount equal to (i) the
amount of the required State | 3 | | contribution that would have been calculated under
this Section | 4 | | for that fiscal year if the System had not received any | 5 | | payments
under subsection (d) of Section 7.2 of the General | 6 | | Obligation Bond Act, minus
(ii) the portion of the State's | 7 | | total debt service payments for that fiscal
year on the bonds | 8 | | issued in fiscal year 2003 for the purposes of that Section | 9 | | 7.2, as determined
and certified by the Comptroller, that is | 10 | | the same as the System's portion of
the total moneys | 11 | | distributed under subsection (d) of Section 7.2 of the General
| 12 | | Obligation Bond Act. In determining this maximum for State | 13 | | fiscal years 2008 through 2010, however, the amount referred to | 14 | | in item (i) shall be increased, as a percentage of the | 15 | | applicable employee payroll, in equal increments calculated | 16 | | from the sum of the required State contribution for State | 17 | | fiscal year 2007 plus the applicable portion of the State's | 18 | | total debt service payments for fiscal year 2007 on the bonds | 19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 20 | | the General
Obligation Bond Act, so that, by State fiscal year | 21 | | 2011, the
State is contributing at the rate otherwise required | 22 | | under this Section.
| 23 | | (d) For purposes of determining the required State | 24 | | contribution to the System, the value of the System's assets | 25 | | shall be equal to the actuarial value of the System's assets, | 26 | | which shall be calculated as follows: |
| | | 10000SB0369sam001 | - 22 - | LRB100 05077 RPS 27303 a |
|
| 1 | | As of June 30, 2008, the actuarial value of the System's | 2 | | assets shall be equal to the market value of the assets as of | 3 | | that date. In determining the actuarial value of the System's | 4 | | assets for fiscal years after June 30, 2008, any actuarial | 5 | | gains or losses from investment return incurred in a fiscal | 6 | | year shall be recognized in equal annual amounts over the | 7 | | 5-year period following that fiscal year. | 8 | | (e) For purposes of determining the required State | 9 | | contribution to the system for a particular year, the actuarial | 10 | | value of assets shall be assumed to earn a rate of return equal | 11 | | to the system's actuarially assumed rate of return. | 12 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 13 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 14 | | 7-13-12.)
| 15 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 17 | | which has been
held unconstitutional)
| 18 | | Sec. 2-126. Contributions by participants.
| 19 | | (a) Each participant shall contribute toward the cost of | 20 | | his or her
retirement annuity a percentage of each payment of | 21 | | salary received by him or
her for service as a member as | 22 | | follows: for service between October 31, 1947
and January 1, | 23 | | 1959, 5%; for service between January 1, 1959 and June 30, | 24 | | 1969,
6%; for service between July 1, 1969 and January 10, | 25 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
| | | 10000SB0369sam001 | - 23 - | LRB100 05077 RPS 27303 a |
|
| 1 | | service after December 31, 1981, 8 1/2%.
| 2 | | (b) Beginning August 2, 1949, each male participant, and | 3 | | from July 1,
1971, each female participant shall contribute | 4 | | towards the cost of the
survivor's annuity 2% of salary.
| 5 | | A participant who has no eligible survivor's annuity | 6 | | beneficiary may elect
to cease making contributions for | 7 | | survivor's annuity under this subsection.
A survivor's annuity | 8 | | shall not be payable upon the death of a person who has
made | 9 | | this election, unless prior to that death the election has been | 10 | | revoked
and the amount of the contributions that would have | 11 | | been paid under this
subsection in the absence of the election | 12 | | is paid to the System, together
with interest at the rate of 4% | 13 | | per year from the date the contributions
would have been made | 14 | | to the date of payment.
| 15 | | (c) Beginning July 1, 1967, each participant shall | 16 | | contribute 1% of
salary towards the cost of automatic increase | 17 | | in annuity provided in
Section 2-119.1. These contributions | 18 | | shall be made concurrently with
contributions for retirement | 19 | | annuity purposes.
| 20 | | (d) In addition, each participant serving as an officer of | 21 | | the General
Assembly shall contribute, for the same purposes | 22 | | and at the same rates
as are required of a regular participant, | 23 | | on each additional payment
received as an officer. If the | 24 | | participant serves as an
officer for at least 2 but less than 4 | 25 | | years, he or she shall
contribute an amount equal to the amount | 26 | | that would have been contributed
had the participant served as |
| | | 10000SB0369sam001 | - 24 - | LRB100 05077 RPS 27303 a |
|
| 1 | | an officer for 4 years. Persons who serve
as officers in the | 2 | | 87th General Assembly but cannot receive the additional
payment | 3 | | to officers because of the ban on increases in salary during | 4 | | their
terms may nonetheless make contributions based on those | 5 | | additional payments
for the purpose of having the additional | 6 | | payments included in their highest
salary for annuity purposes; | 7 | | however, persons electing to make these
additional | 8 | | contributions must also pay an amount representing the
| 9 | | corresponding employer contributions, as calculated by the | 10 | | System.
| 11 | | (e) Notwithstanding any other provision of this Article, | 12 | | the required contribution of a participant who first becomes a | 13 | | participant on or after January 1, 2011 shall not exceed the | 14 | | contribution that would be due under this Article if that | 15 | | participant's highest salary for annuity purposes were | 16 | | $106,800, plus any increases in that amount under Section | 17 | | 2-108.1. | 18 | | (f) Beginning July 1, 2018 or the effective date of the | 19 | | Tier 1 participant's election under paragraph (1) of subsection | 20 | | (a) of Section 2-110.3, whichever is later, in lieu of the | 21 | | contributions otherwise required under this Section, each Tier | 22 | | 1 participant who made the election under paragraph (1) of | 23 | | subsection (a) of Section 2-110.3 shall contribute 8.5% of each | 24 | | payment of salary toward the cost of his or her retirement | 25 | | annuity and 1.85% of each payment of salary toward the cost of | 26 | | the survivor's annuity. |
| | | 10000SB0369sam001 | - 25 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (g) Notwithstanding subsection (f) of this Section, | 2 | | beginning July 1, 2018 or the effective date of the Tier 1 | 3 | | participant's election under paragraph (1) of subsection (a) of | 4 | | Section 2-110.3, whichever is later, in lieu of the | 5 | | contributions otherwise required under this Section, each Tier | 6 | | 1 participant who made the election under paragraph (1) of | 7 | | subsection (a) of Section 2-110.3 and has elected to cease | 8 | | making contributions for survivor's annuity under subsection | 9 | | (b) of this Section, shall contribute 8.55% of each payment of | 10 | | salary toward the cost of his or her retirement annuity. | 11 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 12 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 13 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 14 | | which has been
held unconstitutional)
| 15 | | Sec. 2-134. To certify required State contributions and | 16 | | submit vouchers.
| 17 | | (a) The Board shall certify to the Governor on or before | 18 | | December 15 of each
year until December 15, 2011 the amount of | 19 | | the required State contribution to the System for the next
| 20 | | fiscal year and shall specifically identify the System's | 21 | | projected State normal cost for that fiscal year. The | 22 | | certification shall include a copy of the actuarial
| 23 | | recommendations upon which it is based and shall specifically | 24 | | identify the System's projected State normal cost for that | 25 | | fiscal year.
|
| | | 10000SB0369sam001 | - 26 - | LRB100 05077 RPS 27303 a |
|
| 1 | | On or before November 1 of each year, beginning November 1, | 2 | | 2012, the Board shall submit to the State Actuary, the | 3 | | Governor, and the General Assembly a proposed certification of | 4 | | the amount of the required State contribution to the System for | 5 | | the next fiscal year, along with all of the actuarial | 6 | | assumptions, calculations, and data upon which that proposed | 7 | | certification is based. On or before January 1 of each year | 8 | | beginning January 1, 2013, the State Actuary shall issue a | 9 | | preliminary report concerning the proposed certification and | 10 | | identifying, if necessary, recommended changes in actuarial | 11 | | assumptions that the Board must consider before finalizing its | 12 | | certification of the required State contributions. On or before | 13 | | January 15, 2013 and every January 15 thereafter, the Board | 14 | | shall certify to the Governor and the General Assembly the | 15 | | amount of the required State contribution for the next fiscal | 16 | | year. The Board's certification must note any deviations from | 17 | | the State Actuary's recommended changes, the reason or reasons | 18 | | for not following the State Actuary's recommended changes, and | 19 | | the fiscal impact of not following the State Actuary's | 20 | | recommended changes on the required State contribution. | 21 | | On or before May 1, 2004, the Board shall recalculate and | 22 | | recertify to
the Governor the amount of the required State | 23 | | contribution to the System for
State fiscal year 2005, taking | 24 | | into account the amounts appropriated to and
received by the | 25 | | System under subsection (d) of Section 7.2 of the General
| 26 | | Obligation Bond Act.
|
| | | 10000SB0369sam001 | - 27 - | LRB100 05077 RPS 27303 a |
|
| 1 | | On or before July 1, 2005, the Board shall recalculate and | 2 | | recertify
to the Governor the amount of the required State
| 3 | | contribution to the System for State fiscal year 2006, taking | 4 | | into account the changes in required State contributions made | 5 | | by this amendatory Act of the 94th General Assembly.
| 6 | | On or before April 1, 2011, the Board shall recalculate and | 7 | | recertify to the Governor the amount of the required State | 8 | | contribution to the System for State fiscal year 2011, applying | 9 | | the changes made by Public Act 96-889 to the System's assets | 10 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 11 | | was approved on that date. | 12 | | On or before May 1, 2018, the Board shall recalculate and | 13 | | recertify
to the Governor and the General Assembly the amount | 14 | | of the required State
contribution to the System for State | 15 | | fiscal year 2019, taking into account the effect on the | 16 | | System's liabilities of the elections made under Section | 17 | | 2-110.3. | 18 | | On or before October 1, 2018, the Board shall recalculate | 19 | | and recertify to the Governor and the General Assembly the | 20 | | amount of the required State contribution to the System for | 21 | | State fiscal year 2019, taking into account the reduction | 22 | | specified under item (3) of subsection (c) of Section 2-124. | 23 | | (b) Beginning in State fiscal year 1996, on or as soon as | 24 | | possible after the
15th day of each month the Board shall | 25 | | submit vouchers for payment of State
contributions to the | 26 | | System, in a total monthly amount of one-twelfth of the
|
| | | 10000SB0369sam001 | - 28 - | LRB100 05077 RPS 27303 a |
|
| 1 | | required annual State contribution certified under subsection | 2 | | (a).
From the effective date of this amendatory Act
of the 93rd | 3 | | General Assembly through June 30, 2004, the Board shall not
| 4 | | submit vouchers for the remainder of fiscal year 2004 in excess | 5 | | of the
fiscal year 2004 certified contribution amount | 6 | | determined
under this Section after taking into consideration | 7 | | the transfer to the
System under subsection (d) of Section | 8 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 9 | | the State Comptroller and Treasurer by warrants drawn
on the | 10 | | funds appropriated to the System for that fiscal year. If in | 11 | | any month
the amount remaining unexpended from all other | 12 | | appropriations to the System for
the applicable fiscal year | 13 | | (including the appropriations to the System under
Section 8.12 | 14 | | of the State Finance Act and Section 1 of the State Pension | 15 | | Funds
Continuing Appropriation Act) is less than the amount | 16 | | lawfully vouchered under
this Section, the difference shall be | 17 | | paid from the General Revenue Fund under
the continuing | 18 | | appropriation authority provided in Section 1.1 of the State
| 19 | | Pension Funds Continuing Appropriation Act.
| 20 | | (c) The full amount of any annual appropriation for the | 21 | | System for
State fiscal year 1995 shall be transferred and made | 22 | | available to the System
at the beginning of that fiscal year at | 23 | | the request of the Board.
Any excess funds remaining at the end | 24 | | of any fiscal year from appropriations
shall be retained by the | 25 | | System as a general reserve to meet the System's
accrued | 26 | | liabilities.
|
| | | 10000SB0369sam001 | - 29 - | LRB100 05077 RPS 27303 a |
|
| 1 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | 2 | | 97-694, eff. 6-18-12.)
| 3 | | (40 ILCS 5/2-162) | 4 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 5 | | which has been
held unconstitutional)
| 6 | | Sec. 2-162. Application and expiration of new benefit | 7 | | increases. | 8 | | (a) As used in this Section, "new benefit increase" means | 9 | | an increase in the amount of any benefit provided under this | 10 | | Article, or an expansion of the conditions of eligibility for | 11 | | any benefit under this Article, that results from an amendment | 12 | | to this Code that takes effect after the effective date of this | 13 | | amendatory Act of the 94th General Assembly. "New benefit | 14 | | increase", however, does not include any benefit increase | 15 | | resulting from the changes made to this Article by this | 16 | | amendatory Act of the 100th General Assembly. | 17 | | (b) Notwithstanding any other provision of this Code or any | 18 | | subsequent amendment to this Code, every new benefit increase | 19 | | is subject to this Section and shall be deemed to be granted | 20 | | only in conformance with and contingent upon compliance with | 21 | | the provisions of this Section.
| 22 | | (c) The Public Act enacting a new benefit increase must | 23 | | identify and provide for payment to the System of additional | 24 | | funding at least sufficient to fund the resulting annual | 25 | | increase in cost to the System as it accrues. |
| | | 10000SB0369sam001 | - 30 - | LRB100 05077 RPS 27303 a |
|
| 1 | | Every new benefit increase is contingent upon the General | 2 | | Assembly providing the additional funding required under this | 3 | | subsection. The Commission on Government Forecasting and | 4 | | Accountability shall analyze whether adequate additional | 5 | | funding has been provided for the new benefit increase and | 6 | | shall report its analysis to the Public Pension Division of the | 7 | | Department of Insurance Financial and Professional Regulation . | 8 | | A new benefit increase created by a Public Act that does not | 9 | | include the additional funding required under this subsection | 10 | | is null and void. If the Public Pension Division determines | 11 | | that the additional funding provided for a new benefit increase | 12 | | under this subsection is or has become inadequate, it may so | 13 | | certify to the Governor and the State Comptroller and, in the | 14 | | absence of corrective action by the General Assembly, the new | 15 | | benefit increase shall expire at the end of the fiscal year in | 16 | | which the certification is made.
| 17 | | (d) Every new benefit increase shall expire 5 years after | 18 | | its effective date or on such earlier date as may be specified | 19 | | in the language enacting the new benefit increase or provided | 20 | | under subsection (c). This does not prevent the General | 21 | | Assembly from extending or re-creating a new benefit increase | 22 | | by law. | 23 | | (e) Except as otherwise provided in the language creating | 24 | | the new benefit increase, a new benefit increase that expires | 25 | | under this Section continues to apply to persons who applied | 26 | | and qualified for the affected benefit while the new benefit |
| | | 10000SB0369sam001 | - 31 - | LRB100 05077 RPS 27303 a |
|
| 1 | | increase was in effect and to the affected beneficiaries and | 2 | | alternate payees of such persons, but does not apply to any | 3 | | other person, including without limitation a person who | 4 | | continues in service after the expiration date and did not | 5 | | apply and qualify for the affected benefit while the new | 6 | | benefit increase was in effect.
| 7 | | (Source: P.A. 94-4, eff. 6-1-05.) | 8 | | (40 ILCS 5/2-105.1 rep.) | 9 | | Section 10. The Illinois Pension Code is amended by | 10 | | repealing Section 2-105.1. | 11 | | Section 15. The State Pension Funds Continuing | 12 | | Appropriation Act is amended by adding Section 1.9 as follows: | 13 | | (40 ILCS 15/1.9 new) | 14 | | Sec. 1.9. Appropriation for consideration payment. There | 15 | | is hereby appropriated from the General Revenue Fund to the | 16 | | State Comptroller, on a continuing basis, all amounts necessary | 17 | | for the payment of consideration payments under subsection (b) | 18 | | of Section 2-110.3 of the Illinois Pension Code, in the amounts | 19 | | certified to the State Comptroller by that retirement system. | 20 | | Section 97. Severability. The provisions of this Act are | 21 | | severable under Section 1.31 of the Statute on Statutes. |
| | | 10000SB0369sam001 | - 32 - | LRB100 05077 RPS 27303 a |
|
| 1 | | Section 999. Effective date. This Act takes effect upon | 2 | | becoming law.".
|
|