Full Text of SB2607 100th General Assembly
SB2607sam001 100TH GENERAL ASSEMBLY | Sen. John G. Mulroe Filed: 3/1/2018
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| 1 | | AMENDMENT TO SENATE BILL 2607
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2607 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 1-160 and 14-152.1 as follows:
| 6 | | (40 ILCS 5/1-160)
| 7 | | Sec. 1-160. Provisions applicable to new hires. | 8 | | (a) The provisions of this Section apply to a person who, | 9 | | on or after January 1, 2011, first becomes a member or a | 10 | | participant under any reciprocal retirement system or pension | 11 | | fund established under this Code, other than a retirement | 12 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 13 | | 15 or 18 of this Code, notwithstanding any other provision of | 14 | | this Code to the contrary, but do not apply to any self-managed | 15 | | plan established under this Code, to any person with respect to | 16 | | service as a sheriff's law enforcement employee under Article |
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| 1 | | 7, or to any participant of the retirement plan established | 2 | | under Section 22-101. Notwithstanding anything to the contrary | 3 | | in this Section, for purposes of this Section, a person who | 4 | | participated in a retirement system under Article 15 prior to | 5 | | January 1, 2011 shall be deemed a person who first became a | 6 | | member or participant prior to January 1, 2011 under any | 7 | | retirement system or pension fund subject to this Section. The | 8 | | changes made to this Section by Public Act 98-596 are a | 9 | | clarification of existing law and are intended to be | 10 | | retroactive to January 1, 2011 (the effective date of Public | 11 | | Act 96-889), notwithstanding the provisions of Section 1-103.1 | 12 | | of this Code. | 13 | | This Section does not apply to a person who first becomes a | 14 | | noncovered employee under Article 14 on or after the | 15 | | implementation date of the plan created under Section 1-161 for | 16 | | that Article, unless that person elects under subsection (b) of | 17 | | Section 1-161 to instead receive the benefits provided under | 18 | | this Section and the applicable provisions of that Article. | 19 | | This Section does not apply to a person who first becomes a | 20 | | member or participant under Article 16 on or after the | 21 | | implementation date of the plan created under Section 1-161 for | 22 | | that Article, unless that person elects under subsection (b) of | 23 | | Section 1-161 to instead receive the benefits provided under | 24 | | this Section and the applicable provisions of that Article. | 25 | | This Section does not apply to a person who elects under | 26 | | subsection (c-5) of Section 1-161 to receive the benefits under |
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| 1 | | Section 1-161. | 2 | | This Section does not apply to a person who first becomes a | 3 | | member or participant of an affected pension fund on or after 6 | 4 | | months after the resolution or ordinance date, as defined in | 5 | | Section 1-162, unless that person elects under subsection (c) | 6 | | of Section 1-162 to receive the benefits provided under this | 7 | | Section and the applicable provisions of the Article under | 8 | | which he or she is a member or participant. | 9 | | (b) "Final average salary" means the average monthly (or | 10 | | annual) salary obtained by dividing the total salary or | 11 | | earnings calculated under the Article applicable to the member | 12 | | or participant during the 96 consecutive months (or 8 | 13 | | consecutive years) of service within the last 120 months (or 10 | 14 | | years) of service in which the total salary or earnings | 15 | | calculated under the applicable Article was the highest by the | 16 | | number of months (or years) of service in that period. For the | 17 | | purposes of a person who first becomes a member or participant | 18 | | of any retirement system or pension fund to which this Section | 19 | | applies on or after January 1, 2011, in this Code, "final | 20 | | average salary" shall be substituted for the following: | 21 | | (1) In Article 7 (except for service as sheriff's law | 22 | | enforcement employees), "final rate of earnings". | 23 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 24 | | annual salary for any 4 consecutive years within the last | 25 | | 10 years of service immediately preceding the date of | 26 | | withdrawal". |
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| 1 | | (3) In Article 13, "average final salary". | 2 | | (4) In Article 14, "final average compensation". | 3 | | (5) In Article 17, "average salary". | 4 | | (6) In Section 22-207, "wages or salary received by him | 5 | | at the date of retirement or discharge". | 6 | | (b-5) Beginning on January 1, 2011, for all purposes under | 7 | | this Code (including without limitation the calculation of | 8 | | benefits and employee contributions), the annual earnings, | 9 | | salary, or wages (based on the plan year) of a member or | 10 | | participant to whom this Section applies shall not exceed | 11 | | $106,800; however, that amount shall annually thereafter be | 12 | | increased by the lesser of (i) 3% of that amount, including all | 13 | | previous adjustments, or (ii) one-half the annual unadjusted | 14 | | percentage increase (but not less than zero) in the consumer | 15 | | price index-u
for the 12 months ending with the September | 16 | | preceding each November 1, including all previous adjustments. | 17 | | For the purposes of this Section, "consumer price index-u" | 18 | | means
the index published by the Bureau of Labor Statistics of | 19 | | the United States
Department of Labor that measures the average | 20 | | change in prices of goods and
services purchased by all urban | 21 | | consumers, United States city average, all
items, 1982-84 = | 22 | | 100. The new amount resulting from each annual adjustment
shall | 23 | | be determined by the Public Pension Division of the Department | 24 | | of Insurance and made available to the boards of the retirement | 25 | | systems and pension funds by November 1 of each year. | 26 | | (c) A member or participant is entitled to a retirement
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| 1 | | annuity upon written application if he or she has attained age | 2 | | 67 (beginning January 1, 2015, age 65 with respect to service | 3 | | under Article 12 of this Code that is subject to this Section) | 4 | | and has at least 10 years of service credit and is otherwise | 5 | | eligible under the requirements of the applicable Article. | 6 | | A member or participant who has attained age 62 (beginning | 7 | | January 1, 2015, age 60 with respect to service under Article | 8 | | 12 of this Code that is subject to this Section) and has at | 9 | | least 10 years of service credit and is otherwise eligible | 10 | | under the requirements of the applicable Article may elect to | 11 | | receive the lower retirement annuity provided
in subsection (d) | 12 | | of this Section. | 13 | | (c-5) A person who first becomes a member or a participant | 14 | | under Article 8 or Article 11 of this Code on or after the | 15 | | effective date of this amendatory Act of the 100th General | 16 | | Assembly, notwithstanding any other provision of this Code to | 17 | | the contrary, is entitled to a retirement annuity upon written | 18 | | application if he or she has attained age 65 and has at least | 19 | | 10 years of service credit under Article 8 or Article 11 of | 20 | | this Code and is otherwise eligible under the requirements of | 21 | | Article 8 or Article 11 of this Code, whichever is applicable. | 22 | | (d) The retirement annuity of a member or participant who | 23 | | is retiring after attaining age 62 (beginning January 1, 2015, | 24 | | age 60 with respect to service under Article 12 of this Code | 25 | | that is subject to this Section) with at least 10 years of | 26 | | service credit shall be reduced by one-half
of 1% for each full |
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| 1 | | month that the member's age is under age 67 (beginning January | 2 | | 1, 2015, age 65 with respect to service under Article 12 of | 3 | | this Code that is subject to this Section). | 4 | | (d-5) The retirement annuity of a person who first becomes | 5 | | a member or a participant under Article 8 or Article 11 of this | 6 | | Code on or after the effective date of this amendatory Act of | 7 | | the 100th General Assembly who is retiring at age 60 with at | 8 | | least 10 years of service credit under Article 8 or Article 11 | 9 | | shall be reduced by one-half of 1% for each full month that the | 10 | | member's age is under age 65. | 11 | | (d-10) Each person who first became a member or participant | 12 | | under Article 8 or Article 11 of this Code on or after January | 13 | | 1, 2011 and prior to the effective date of this amendatory Act | 14 | | of the 100th General Assembly shall make an irrevocable | 15 | | election either: | 16 | | (i) to be eligible for the reduced retirement age | 17 | | provided in subsections (c-5)
and (d-5) of this Section, | 18 | | the eligibility for which is conditioned upon the member or | 19 | | participant agreeing to the increases in employee | 20 | | contributions for age and service annuities provided in | 21 | | subsection (a-5) of Section 8-174 of this Code (for service | 22 | | under Article 8) or subsection (a-5) of Section 11-170 of | 23 | | this Code (for service under Article 11); or | 24 | | (ii) to not agree to item (i) of this subsection | 25 | | (d-10), in which case the member or participant shall | 26 | | continue to be subject to the retirement age provisions in |
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| 1 | | subsections (c) and (d) of this Section and the employee | 2 | | contributions for age and service annuity as provided in | 3 | | subsection (a) of Section 8-174 of this Code (for service | 4 | | under Article 8) or subsection (a) of Section 11-170 of | 5 | | this Code (for service under Article 11). | 6 | | The election provided for in this subsection shall be made | 7 | | between October 1, 2017 and November 15, 2017. A person subject | 8 | | to this subsection who makes the required election shall remain | 9 | | bound by that election. A person subject to this subsection who | 10 | | fails for any reason to make the required election within the | 11 | | time specified in this subsection shall be deemed to have made | 12 | | the election under item (ii). | 13 | | (e) Any retirement annuity or supplemental annuity shall be | 14 | | subject to annual increases on the January 1 occurring either | 15 | | on or after the attainment of age 67 (beginning January 1, | 16 | | 2015, age 65 with respect to service under Article 12 of this | 17 | | Code that is subject to this Section and beginning on the | 18 | | effective date of this amendatory Act of the 100th General | 19 | | Assembly, age 65 with respect to persons who: (i) first became | 20 | | members or participants under Article 8 or Article 11 of this | 21 | | Code on or after the effective date of this amendatory Act of | 22 | | the 100th General Assembly; or (ii) first became members or | 23 | | participants under Article 8 or Article 11 of this Code on or | 24 | | after January 1, 2011 and before the effective date of this | 25 | | amendatory Act of the 100th General Assembly and made the | 26 | | election under item (i) of subsection (d-10) of this Section) |
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| 1 | | or the first anniversary of the annuity start date, whichever | 2 | | is later. Each annual increase shall be calculated at 3% or | 3 | | one-half the annual unadjusted percentage increase (but not | 4 | | less than zero) in the consumer price index-u for the 12 months | 5 | | ending with the September preceding each November 1, whichever | 6 | | is less, of the originally granted retirement annuity. If the | 7 | | annual unadjusted percentage change in the consumer price | 8 | | index-u for the 12 months ending with the September preceding | 9 | | each November 1 is zero or there is a decrease, then the | 10 | | annuity shall not be increased. | 11 | | For the purposes of Section 1-103.1 of this Code, the | 12 | | changes made to this Section by this amendatory Act of the | 13 | | 100th General Assembly are applicable without regard to whether | 14 | | the employee was in active service on or after the effective | 15 | | date of this amendatory Act of the 100th General Assembly. | 16 | | (f) The initial survivor's or widow's annuity of an | 17 | | otherwise eligible survivor or widow of a retired member or | 18 | | participant who first became a member or participant on or | 19 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 20 | | retired member's or participant's retirement annuity at the | 21 | | date of death. In the case of the death of a member or | 22 | | participant who has not retired and who first became a member | 23 | | or participant on or after January 1, 2011, eligibility for a | 24 | | survivor's or widow's annuity shall be determined by the | 25 | | applicable Article of this Code. The initial benefit shall be | 26 | | 66 2/3% of the earned annuity without a reduction due to age. A |
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| 1 | | child's annuity of an otherwise eligible child shall be in the | 2 | | amount prescribed under each Article if applicable. Any | 3 | | survivor's or widow's annuity shall be increased (1) on each | 4 | | January 1 occurring on or after the commencement of the annuity | 5 | | if
the deceased member died while receiving a retirement | 6 | | annuity or (2) in
other cases, on each January 1 occurring | 7 | | after the first anniversary
of the commencement of the annuity. | 8 | | Each annual increase shall be calculated at 3% or one-half the | 9 | | annual unadjusted percentage increase (but not less than zero) | 10 | | in the consumer price index-u for the 12 months ending with the | 11 | | September preceding each November 1, whichever is less, of the | 12 | | originally granted survivor's annuity. If the annual | 13 | | unadjusted percentage change in the consumer price index-u for | 14 | | the 12 months ending with the September preceding each November | 15 | | 1 is zero or there is a decrease, then the annuity shall not be | 16 | | increased. | 17 | | (g) The benefits in Section 14-110 apply only if the person | 18 | | is a State policeman, a fire fighter in the fire protection | 19 | | service of a department, or a security employee of the | 20 | | Department of Corrections or the Department of Juvenile | 21 | | Justice, as those terms are defined in subsection (b) of | 22 | | Section 14-110. Except for a State policeman or a security | 23 | | employee of the Department of Corrections or the Department of | 24 | | Juvenile Justice, a A person who meets the requirements of this | 25 | | Section is entitled to an annuity calculated under the | 26 | | provisions of Section 14-110, in lieu of the regular or minimum |
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| 1 | | retirement annuity, only if the person has withdrawn from | 2 | | service with not less than 20
years of eligible creditable | 3 | | service and has attained age 60, regardless of whether
the | 4 | | attainment of age 60 occurs while the person is
still in | 5 | | service. A State policeman or a security employee of the | 6 | | Department of Corrections or the Department of Juvenile Justice | 7 | | who meets the requirements of this Section is entitled to an | 8 | | annuity calculated under the provisions of Section 14-110 in | 9 | | lieu of the regular or minimum retirement annuity only if the | 10 | | person has withdrawn from service with not less than 20 years | 11 | | of eligible creditable service and has attained age 50, | 12 | | regardless of whether the attainment of age 50 occurs while the | 13 | | person is still in service. | 14 | | The changes made to this Section apply without regard to | 15 | | whether the person is in active service on or after the | 16 | | effective date of this amendatory Act of the 100th General | 17 | | Assembly. | 18 | | (h) If a person who first becomes a member or a participant | 19 | | of a retirement system or pension fund subject to this Section | 20 | | on or after January 1, 2011 is receiving a retirement annuity | 21 | | or retirement pension under that system or fund and becomes a | 22 | | member or participant under any other system or fund created by | 23 | | this Code and is employed on a full-time basis, except for | 24 | | those members or participants exempted from the provisions of | 25 | | this Section under subsection (a) of this Section, then the | 26 | | person's retirement annuity or retirement pension under that |
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| 1 | | system or fund shall be suspended during that employment. Upon | 2 | | termination of that employment, the person's retirement | 3 | | annuity or retirement pension payments shall resume and be | 4 | | recalculated if recalculation is provided for under the | 5 | | applicable Article of this Code. | 6 | | If a person who first becomes a member of a retirement | 7 | | system or pension fund subject to this Section on or after | 8 | | January 1, 2012 and is receiving a retirement annuity or | 9 | | retirement pension under that system or fund and accepts on a | 10 | | contractual basis a position to provide services to a | 11 | | governmental entity from which he or she has retired, then that | 12 | | person's annuity or retirement pension earned as an active | 13 | | employee of the employer shall be suspended during that | 14 | | contractual service. A person receiving an annuity or | 15 | | retirement pension under this Code shall notify the pension | 16 | | fund or retirement system from which he or she is receiving an | 17 | | annuity or retirement pension, as well as his or her | 18 | | contractual employer, of his or her retirement status before | 19 | | accepting contractual employment. A person who fails to submit | 20 | | such notification shall be guilty of a Class A misdemeanor and | 21 | | required to pay a fine of $1,000. Upon termination of that | 22 | | contractual employment, the person's retirement annuity or | 23 | | retirement pension payments shall resume and, if appropriate, | 24 | | be recalculated under the applicable provisions of this Code. | 25 | | (i) (Blank). | 26 | | (j) In the case of a conflict between the provisions of |
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| 1 | | this Section and any other provision of this Code, the | 2 | | provisions of this Section shall control.
| 3 | | (Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17; | 4 | | 100-563, eff. 12-8-17.) | 5 | | (40 ILCS 5/14-152.1)
| 6 | | Sec. 14-152.1. 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 June 1, 2005 (the | 13 | | effective date of Public Act 94-4). "New benefit increase", | 14 | | however, does not include any benefit increase resulting from | 15 | | the changes made to Article 1 or this Article by Public Act | 16 | | 96-37 , Public Act 100-23, or this amendatory Act of the 100th | 17 | | General Assembly or by this amendatory Act of the 100th General | 18 | | Assembly .
| 19 | | (b) Notwithstanding any other provision of this Code or any | 20 | | subsequent amendment to this Code, every new benefit increase | 21 | | is subject to this Section and shall be deemed to be granted | 22 | | only in conformance with and contingent upon compliance with | 23 | | the provisions of this Section.
| 24 | | (c) The Public Act enacting a new benefit increase must | 25 | | identify and provide for payment to the System of additional |
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| 1 | | funding at least sufficient to fund the resulting annual | 2 | | increase in cost to the System as it accrues. | 3 | | Every new benefit increase is contingent upon the General | 4 | | Assembly providing the additional funding required under this | 5 | | subsection. The Commission on Government Forecasting and | 6 | | Accountability shall analyze whether adequate additional | 7 | | funding has been provided for the new benefit increase and | 8 | | shall report its analysis to the Public Pension Division of the | 9 | | Department of Insurance. A new benefit increase created by a | 10 | | Public Act that does not include the additional funding | 11 | | required under this subsection is null and void. If the Public | 12 | | Pension Division determines that the additional funding | 13 | | provided for a new benefit increase under this subsection is or | 14 | | has become inadequate, it may so certify to the Governor and | 15 | | the State Comptroller and, in the absence of corrective action | 16 | | by the General Assembly, the new benefit increase shall expire | 17 | | at the end of the fiscal year in which the certification is | 18 | | made.
| 19 | | (d) Every new benefit increase shall expire 5 years after | 20 | | its effective date or on such earlier date as may be specified | 21 | | in the language enacting the new benefit increase or provided | 22 | | under subsection (c). This does not prevent the General | 23 | | Assembly from extending or re-creating a new benefit increase | 24 | | by law. | 25 | | (e) Except as otherwise provided in the language creating | 26 | | the new benefit increase, a new benefit increase that expires |
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| 1 | | under this Section continues to apply to persons who applied | 2 | | and qualified for the affected benefit while the new benefit | 3 | | increase was in effect and to the affected beneficiaries and | 4 | | alternate payees of such persons, but does not apply to any | 5 | | other person, including without limitation a person who | 6 | | continues in service after the expiration date and did not | 7 | | apply and qualify for the affected benefit while the new | 8 | | benefit increase was in effect.
| 9 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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