Full Text of HB4594 101st General Assembly
HB4594 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4594 Introduced 2/5/2020, by Rep. Deanne M. Mazzochi SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/14-103.05 | from Ch. 108 1/2, par. 14-103.05 |
40 ILCS 5/15-134 | from Ch. 108 1/2, par. 15-134 |
40 ILCS 5/16-123 | from Ch. 108 1/2, par. 16-123 |
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Amends the State Employees, State Universities, and Downstate Teachers Articles of the Illinois Pension Code. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing no later than 30 days after first becoming an employee. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | HB4594 | | LRB101 13341 RPS 62184 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 14-103.05, 15-134, and 16-123 as follows:
| 6 | | (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
| 7 | | Sec. 14-103.05. Employee.
| 8 | | (a) Except as provided in subsection (e), any Any person | 9 | | employed by a Department who receives salary
for personal | 10 | | services rendered to the Department on a warrant
issued | 11 | | pursuant to a payroll voucher certified by a Department and | 12 | | drawn
by the State Comptroller upon the State Treasurer, | 13 | | including an elected
official described in subparagraph (d) of | 14 | | Section 14-104, shall become
an employee for purpose of | 15 | | membership in the Retirement System on the
first day of such | 16 | | employment.
| 17 | | A person entering service on or after January 1, 1972 and | 18 | | prior to January
1, 1984 shall become a member as a condition | 19 | | of employment and shall begin
making contributions as of the | 20 | | first day of employment.
| 21 | | A person entering service on or after January 1, 1984 | 22 | | shall, upon completion
of 6 months of continuous service which | 23 | | is not interrupted by a break of more
than 2 months, become a |
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| 1 | | member as a condition of employment. Contributions
shall begin | 2 | | the first of the month after completion of the qualifying | 3 | | period.
| 4 | | A person employed by the Chicago Metropolitan Agency for | 5 | | Planning on the effective date of this amendatory Act of the | 6 | | 95th General Assembly who was a member of this System as an | 7 | | employee of the Chicago Area Transportation Study and makes an | 8 | | election under Section 14-104.13 to participate in this System | 9 | | for his or her employment with the Chicago Metropolitan Agency | 10 | | for Planning.
| 11 | | The qualifying period of 6 months of service is not | 12 | | applicable to: (1)
a person who has been granted credit for | 13 | | service in a position covered by
the State Universities | 14 | | Retirement System, the Teachers' Retirement System
of the State | 15 | | of Illinois, the General Assembly Retirement System, or the
| 16 | | Judges Retirement System of Illinois unless that service has | 17 | | been forfeited
under the laws of those systems; (2) a person | 18 | | entering service on or
after July 1, 1991 in a noncovered | 19 | | position; (3) a person to whom Section
14-108.2a or 14-108.2b | 20 | | applies; or (4) a person to whom subsection (a-5) of this | 21 | | Section applies.
| 22 | | (a-5) Except as provided in subsection (e), a A person | 23 | | entering service on or after December 1, 2010 and before the | 24 | | effective date of this amendatory Act of the 101st General | 25 | | Assembly shall become a member as a condition of employment and | 26 | | shall begin making contributions as of the first day of |
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| 1 | | employment. A person serving in the qualifying period on | 2 | | December 1, 2010 will become a member on December 1, 2010 and | 3 | | shall begin making contributions as of December 1, 2010. | 4 | | (b) The term "employee" does not include the following:
| 5 | | (1) members of the State Legislature, and persons | 6 | | electing to become
members of the General Assembly | 7 | | Retirement System pursuant to Section 2-105;
| 8 | | (2) incumbents of offices normally filled by vote of | 9 | | the people;
| 10 | | (3) except as otherwise provided in this Section, any | 11 | | person
appointed by the Governor with the advice and | 12 | | consent
of the Senate unless that person elects to | 13 | | participate in this system;
| 14 | | (3.1) any person serving as a commissioner of an ethics | 15 | | commission created under the State Officials and Employees | 16 | | Ethics Act unless that person elects to participate in this | 17 | | system with respect to that service as a commissioner;
| 18 | | (3.2) any person serving as a part-time employee in any | 19 | | of the following positions: Legislative Inspector General, | 20 | | Special Legislative Inspector General, employee of the | 21 | | Office of the Legislative Inspector General, Executive | 22 | | Director of the Legislative Ethics Commission, or staff of | 23 | | the Legislative Ethics Commission, regardless of whether | 24 | | he or she is in active service on or after July 8, 2004 | 25 | | (the effective date of Public Act 93-685), unless that | 26 | | person elects to participate in this System with respect to |
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| 1 | | that service; in this item (3.2), a "part-time employee" is | 2 | | a person who is not required to work at least 35 hours per | 3 | | week; | 4 | | (3.3) any person who has made an election under Section | 5 | | 1-123 and who is serving either as legal counsel in the | 6 | | Office of the Governor or as Chief Deputy Attorney General;
| 7 | | (4) except as provided in Section 14-108.2 or | 8 | | 14-108.2c, any person
who is covered or eligible to be | 9 | | covered by the Teachers' Retirement System of
the State of | 10 | | Illinois, the State Universities Retirement System, or the | 11 | | Judges
Retirement System of Illinois;
| 12 | | (5) an employee of a municipality or any other | 13 | | political subdivision
of the State;
| 14 | | (6) any person who becomes an employee after June 30, | 15 | | 1979 as a
public service employment program participant | 16 | | under the Federal
Comprehensive Employment and Training | 17 | | Act and whose wages or fringe
benefits are paid in whole or | 18 | | in part by funds provided under such Act;
| 19 | | (7) enrollees of the Illinois Young Adult Conservation | 20 | | Corps program,
administered by the Department of Natural | 21 | | Resources, authorized grantee
pursuant to Title VIII of the | 22 | | "Comprehensive Employment and Training Act of
1973", 29 USC | 23 | | 993, as now or hereafter amended;
| 24 | | (8) enrollees and temporary staff of programs | 25 | | administered by the
Department of Natural Resources under | 26 | | the Youth
Conservation Corps Act of 1970;
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| 1 | | (9) any person who is a member of any professional | 2 | | licensing or
disciplinary board created under an Act | 3 | | administered by the Department of
Professional Regulation | 4 | | or a successor agency or created or re-created
after the | 5 | | effective date of this amendatory Act of 1997, and who | 6 | | receives
per diem compensation rather than a salary, | 7 | | notwithstanding that such per diem
compensation is paid by | 8 | | warrant issued pursuant to a payroll voucher; such
persons | 9 | | have never been included in the membership of this System, | 10 | | and this
amendatory Act of 1987 (P.A. 84-1472) is not | 11 | | intended to effect any change in
the status of such | 12 | | persons;
| 13 | | (10) any person who is a member of the Illinois Health | 14 | | Care Cost
Containment Council, and receives per diem | 15 | | compensation rather than a
salary, notwithstanding that | 16 | | such per diem compensation is paid by warrant
issued | 17 | | pursuant to a payroll voucher; such persons have never been | 18 | | included
in the membership of this System, and this | 19 | | amendatory Act of 1987 is not
intended to effect any change | 20 | | in the status of such persons;
| 21 | | (11) any person who is a member of the Oil and Gas | 22 | | Board created by
Section 1.2 of the Illinois Oil and Gas | 23 | | Act, and receives per diem
compensation rather than a | 24 | | salary, notwithstanding that such per diem
compensation is | 25 | | paid by warrant issued pursuant to a payroll voucher;
| 26 | | (12) a person employed by the State Board of Higher |
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| 1 | | Education in a position with the Illinois Century Network | 2 | | as of June 30, 2004, who remains continuously employed | 3 | | after that date by the Department of Central Management | 4 | | Services in a position with the Illinois Century Network | 5 | | and participates in the Article 15 system with respect to | 6 | | that employment;
| 7 | | (13) any person who first becomes a member of the Civil | 8 | | Service Commission on or after January 1, 2012; | 9 | | (14) any person, other than the Director of Employment | 10 | | Security, who first becomes a member of the Board of Review | 11 | | of the Department of Employment Security on or after | 12 | | January 1, 2012; | 13 | | (15) any person who first becomes a member of the Civil | 14 | | Service Commission on or after January 1, 2012; | 15 | | (16) any person who first becomes a member of the | 16 | | Illinois Liquor Control Commission on or after January 1, | 17 | | 2012; | 18 | | (17) any person who first becomes a member of the | 19 | | Secretary of State Merit Commission on or after January 1, | 20 | | 2012; | 21 | | (18) any person who first becomes a member of the Human | 22 | | Rights Commission on or after January 1, 2012 unless he or | 23 | | she is eligible to participate in accordance with | 24 | | subsection (d) of this Section; | 25 | | (19) any person who first becomes a member of the State | 26 | | Mining Board on or after January 1, 2012; |
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| 1 | | (20) any person who first becomes a member of the | 2 | | Property Tax Appeal Board on or after January 1, 2012; | 3 | | (21) any person who first becomes a member of the | 4 | | Illinois Racing Board on or after January 1, 2012; | 5 | | (22) any person who first becomes a member of the | 6 | | Department of State Police Merit Board on or after January | 7 | | 1, 2012; | 8 | | (23) any person who first becomes a member of the | 9 | | Illinois State Toll Highway Authority on or after January | 10 | | 1, 2012; or | 11 | | (24) any person who first becomes a member of the | 12 | | Illinois State Board of Elections on or after January 1, | 13 | | 2012. | 14 | | (c) An individual who represents or is employed as an | 15 | | officer or employee of a statewide labor organization that | 16 | | represents members of this System may participate in the System | 17 | | and shall be deemed an employee, provided that (1) the | 18 | | individual has previously earned creditable service under this | 19 | | Article, (2) the individual files with the System an | 20 | | irrevocable election to become a participant within 6 months | 21 | | after the effective date of this amendatory Act of the 94th | 22 | | General Assembly, and (3) the individual does not receive | 23 | | credit for that employment under any other provisions of this | 24 | | Code. An employee under this subsection (c) is responsible for | 25 | | paying to the System both (i) employee contributions based on | 26 | | the actual compensation received for service with the labor |
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| 1 | | organization and (ii) employer contributions based on the | 2 | | percentage of payroll certified by the board; all or any part | 3 | | of these contributions may be paid on the employee's behalf or | 4 | | picked up for tax purposes (if authorized under federal law) by | 5 | | the labor organization. | 6 | | A person who is an employee as defined in this subsection | 7 | | (c) may establish service credit for similar employment prior | 8 | | to becoming an employee under this subsection by paying to the | 9 | | System for that employment the contributions specified in this | 10 | | subsection, plus interest at the effective rate from the date | 11 | | of service to the date of payment. However, credit shall not be | 12 | | granted under this subsection (c) for any such prior employment | 13 | | for which the applicant received credit under any other | 14 | | provision of this Code or during which the applicant was on a | 15 | | leave of absence.
| 16 | | (d) A person appointed as a member of the Human Rights | 17 | | Commission on or after June 1, 2019 may elect to participate in | 18 | | the System and shall be deemed an employee. Service and | 19 | | contributions shall begin on the first payroll period | 20 | | immediately following the employee's election to participate | 21 | | in the System. | 22 | | A person who is an employee as described in this subsection | 23 | | (d) may establish service credit for employment as a Human | 24 | | Rights Commissioner that occurred on or after June 1, 2019 and | 25 | | before establishing service under this subsection by paying to | 26 | | the System for that employment the contributions specified in |
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| 1 | | paragraph (1) of subsection (a) of Section 14-133, plus regular | 2 | | interest from the date of service to the date of payment. | 3 | | (e) Notwithstanding any other provision of this Article, a | 4 | | person who first becomes an employee after the effective date | 5 | | of this amendatory Act of the 101st General Assembly is not | 6 | | required, as a condition of employment or otherwise, to | 7 | | participate in this System. An employee may elect not to | 8 | | participate in this System by notifying the System in writing | 9 | | no later than 30 days after first becoming an employee. | 10 | | (Source: P.A. 101-10, eff. 6-5-19.)
| 11 | | (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
| 12 | | Sec. 15-134. Participant.
| 13 | | (a) Except as provided in subsection (a-5), each Each | 14 | | person shall, as a condition of employment, become a | 15 | | participant
and be subject to this Article on the date that he | 16 | | or she becomes an
employee, makes an election to participate | 17 | | in, or otherwise becomes a
participant in one of the retirement | 18 | | programs offered under this Article,
whichever date is later.
| 19 | | An employee who becomes a participant shall continue to be | 20 | | a participant
until he or she becomes an annuitant, dies or | 21 | | accepts a refund of
contributions.
| 22 | | (a-5) Notwithstanding any other provision of this Article, | 23 | | a person who first becomes an employee after the effective date | 24 | | of this amendatory Act of the 101st General Assembly is not | 25 | | required, as a condition of employment or otherwise, to |
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| 1 | | participate in this System. An employee may elect not to | 2 | | participate in this System by notifying the System in writing | 3 | | no later than 30 days after first becoming an employee. | 4 | | (b) A person employed concurrently by 2 or more employers | 5 | | is
eligible to participate in the system on compensation | 6 | | received from all
employers.
| 7 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 8 | | (40 ILCS 5/16-123) (from Ch. 108 1/2, par. 16-123)
| 9 | | Sec. 16-123. Membership of System.
| 10 | | (a) Except as provided in subsection (c), the The | 11 | | membership of this System shall be composed of all teachers
| 12 | | employed after June 30, 1939 who become members as a condition | 13 | | of
employment on the date they become teachers. Membership | 14 | | shall continue
until the date a member becomes an annuitant, | 15 | | dies, accepts a single-sum
retirement benefit, accepts a | 16 | | refund, or forfeits the rights to a refund.
| 17 | | (b) This Article does not apply to any person first | 18 | | employed after June
30, 1979 as a public service employment | 19 | | program participant under the Federal
Comprehensive Employment | 20 | | and Training Act and whose wages or fringe benefits
are paid in | 21 | | whole or in part by funds provided under such Act.
| 22 | | (c) Notwithstanding any other provision of this Article, a | 23 | | person who first becomes a teacher after the effective date of | 24 | | this amendatory Act of the 101st General Assembly is not | 25 | | required, as a condition of employment or otherwise, to |
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| 1 | | participate in this System. A teacher may elect not to | 2 | | participate in this System by notifying the System in writing | 3 | | no later than 30 days after first becoming a teacher. | 4 | | (Source: P.A. 87-11.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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