Full Text of SB1265 101st General Assembly
SB1265enr 101ST GENERAL ASSEMBLY |
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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 15-107, 15-110, and 15-145 as follows:
| 6 | | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| 7 | | Sec. 15-107. Employee.
| 8 | | (a) "Employee" means any member of the educational, | 9 | | administrative,
secretarial, clerical, mechanical, labor or | 10 | | other staff of an employer
whose employment is permanent and | 11 | | continuous or who is employed in a
position in which services | 12 | | are expected to be rendered on a continuous
basis for at least | 13 | | 4 months or one academic term, whichever is less, who
(A) | 14 | | receives payment for personal services on a warrant issued | 15 | | pursuant to
a payroll voucher certified by an employer and | 16 | | drawn by the State
Comptroller upon the State Treasurer or by | 17 | | an employer upon trust, federal
or other funds, or (B) is on a | 18 | | leave of absence without pay. Employment
which is irregular, | 19 | | intermittent or temporary shall not be considered
continuous | 20 | | for purposes of this paragraph.
| 21 | | However, a person is not an "employee" if he or she:
| 22 | | (1) is a student enrolled in and regularly attending | 23 | | classes in a
college or university which is an employer, |
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| 1 | | and is employed on a temporary
basis at less than full | 2 | | time;
| 3 | | (2) is currently receiving a retirement annuity or a | 4 | | disability
retirement annuity under Section 15-153.2 from | 5 | | this System;
| 6 | | (3) is on a military leave of absence;
| 7 | | (4) is eligible to participate in the Federal Civil | 8 | | Service Retirement
System and is currently making | 9 | | contributions to that system based upon
earnings paid by an | 10 | | employer;
| 11 | | (5) is on leave of absence without pay for more than 60 | 12 | | days
immediately following termination of disability | 13 | | benefits under this
Article;
| 14 | | (6) is hired after June 30, 1979 as a public service | 15 | | employment program
participant under the Federal | 16 | | Comprehensive Employment and Training Act
and receives | 17 | | earnings in whole or in part from funds provided under that
| 18 | | Act; or
| 19 | | (7) is employed on or after July 1, 1991 to perform | 20 | | services that
are excluded by subdivision (a)(7)(f) or | 21 | | (a)(19) of Section 210 of the
federal Social Security Act | 22 | | from the definition of employment given in that
Section (42 | 23 | | U.S.C. 410).
| 24 | | (b) Any employer may, by filing a written notice with the | 25 | | board, exclude
from the definition of "employee" all persons | 26 | | employed pursuant to a federally
funded contract entered into |
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| 1 | | after July 1, 1982 with a federal military
department in a | 2 | | program providing training in military courses to federal
| 3 | | military personnel on a military site owned by the United | 4 | | States Government,
if this exclusion is not prohibited by the | 5 | | federally funded contract or
federal laws or rules governing | 6 | | the administration of the contract.
| 7 | | (c) Any person appointed by the Governor under the Civil | 8 | | Administrative
Code of Illinois the State is an employee, if he | 9 | | or she is a participant in this
system on the effective date of | 10 | | the appointment.
| 11 | | (d) A participant on lay-off status under civil service | 12 | | rules is
considered an employee for not more than 120 days from | 13 | | the date of the lay-off.
| 14 | | (e) A participant is considered an employee during (1) the | 15 | | first 60 days
of disability leave, (2) the period, not to | 16 | | exceed one year, in which his
or her eligibility for disability | 17 | | benefits is being considered by the board
or reviewed by the | 18 | | courts, and (3) the period he or she receives disability
| 19 | | benefits under the provisions of Section 15-152, workers' | 20 | | compensation or
occupational disease benefits, or disability | 21 | | income under an insurance
contract financed wholly or partially | 22 | | by the employer.
| 23 | | (f) Absences without pay, other than formal leaves of | 24 | | absence, of less
than 30 calendar days, are not considered as | 25 | | an interruption of a person's
status as an employee. If such | 26 | | absences during any period of 12 months
exceed 30 work days, |
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| 1 | | the employee status of the person is considered as
interrupted | 2 | | as of the 31st work day.
| 3 | | (g) A staff member whose employment contract requires | 4 | | services during
an academic term is to be considered an | 5 | | employee during the summer and
other vacation periods, unless | 6 | | he or she declines an employment contract
for the succeeding | 7 | | academic term or his or her employment status is
otherwise | 8 | | terminated, and he or she receives no earnings during these | 9 | | periods.
| 10 | | (h) An individual who was a participating employee employed | 11 | | in the fire
department of the University of Illinois's | 12 | | Champaign-Urbana campus immediately
prior to the elimination | 13 | | of that fire department and who immediately after the
| 14 | | elimination of that fire department became employed by the fire | 15 | | department of
the City of Urbana or the City of Champaign shall | 16 | | continue to be considered as
an employee for purposes of this | 17 | | Article for so long as the individual remains
employed as a | 18 | | firefighter by the City of Urbana or the City of Champaign. The
| 19 | | individual shall cease to be considered an employee under this | 20 | | subsection (h)
upon the first termination of the individual's | 21 | | employment as a firefighter by
the City of Urbana or the City | 22 | | of Champaign.
| 23 | | (i) An individual who is employed on a full-time basis as | 24 | | an officer
or employee of a statewide teacher organization that | 25 | | serves System
participants or an officer of a national teacher | 26 | | organization that serves
System participants may participate |
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| 1 | | in the System and shall be deemed an
employee, provided that | 2 | | (1) the individual has previously earned
creditable service | 3 | | under this Article, (2) the individual files with the
System an | 4 | | irrevocable election to become a participant before January 5, | 5 | | 2012 ( the effective date of Public Act 97-651) this amendatory | 6 | | Act of the 97th General Assembly , (3) the
individual does not | 7 | | receive credit for that employment under any other Article
of | 8 | | this Code, and (4) the individual first became a full-time | 9 | | employee of the teacher organization and becomes a participant | 10 | | before January 5, 2012 ( the effective date of Public Act | 11 | | 97-651) this amendatory Act of the 97th General Assembly . An | 12 | | employee under this subsection (i) is responsible for paying
to | 13 | | the System both (A) employee contributions based on the actual | 14 | | compensation
received for service with the teacher | 15 | | organization and (B) employer
contributions equal to the normal | 16 | | costs (as defined in Section 15-155)
resulting from that | 17 | | service; all or any part of these contributions may be
paid on | 18 | | the employee's behalf or picked up for tax purposes (if | 19 | | authorized
under federal law) by the teacher organization.
| 20 | | A person who is an employee as defined in this subsection | 21 | | (i) may establish
service credit for similar employment prior | 22 | | to becoming an employee under this
subsection by paying to the | 23 | | System for that employment the contributions
specified in this | 24 | | subsection, plus interest at the effective rate from the
date | 25 | | of service to the date of payment. However, credit shall not be | 26 | | granted
under this subsection for any such prior employment for |
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| 1 | | which the applicant
received credit under any other provision | 2 | | of this Code, or during which
the applicant was on a leave of | 3 | | absence under Section 15-113.2.
| 4 | | (j) A person employed by the State Board of Higher | 5 | | Education in a position with the Illinois Century Network as of | 6 | | June 30, 2004 shall be considered to be an employee for so long | 7 | | as he or she remains continuously employed after that date by | 8 | | the Department of Central Management Services in a position | 9 | | with the Illinois Century Network, the Bureau of Communication | 10 | | and Computer Services, or, if applicable, any successor bureau
| 11 | | or the Department of Innovation and Technology and meets the | 12 | | requirements of subsection (a).
| 13 | | (k) The Board shall promulgate rules with respect to | 14 | | determining whether any person is an employee within the | 15 | | meaning of this Section. In the case of doubt as to whether any | 16 | | person is an employee within the meaning of this
Section or any | 17 | | rule adopted by the Board, the decision of the Board shall be
| 18 | | final. | 19 | | (Source: P.A. 99-830, eff. 1-1-17; 99-897, eff. 1-1-17; revised | 20 | | 9-27-18.)
| 21 | | (40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
| 22 | | Sec. 15-110. Basic compensation. "Basic compensation": | 23 | | Subject to Section 15-111.5, the gross
basic rate of salary or | 24 | | wages payable by an employer, including: | 25 | | (1) the
value of maintenance, board, living quarters, |
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| 1 | | personal laundry, or other
allowances furnished in lieu of | 2 | | salary which are considered gross income
under the federal | 3 | | Internal Revenue Code of 1986, as amended; | 4 | | (2) the employee contributions required
under Section | 5 | | 15-157; | 6 | | (3) the amount paid by any employer
to a custodial | 7 | | account for investment in regulated investment company | 8 | | stocks
for the benefit of the employee pursuant to the | 9 | | University
Employees Custodial Accounts Act; | 10 | | (4) the
amount of the premium payable by any employer | 11 | | to an
insurance company or companies on an annuity | 12 | | contract, pursuant to the
employee's election to accept a | 13 | | reduction in earnings or forego an
increase in earnings | 14 | | under Section 30c of the State Finance Act, or a | 15 | | tax-sheltered annuity
plan approved by any employer; and | 16 | | (5) the amount of any elective deferral to a deferred | 17 | | compensation plan established under this Article or
| 18 | | Article 24 of this Code pursuant to Section 457(b) of the | 19 | | federal Internal Revenue Code of 1986, as amended. | 20 | | Basic compensation does not include (1)
salary or wages for | 21 | | overtime or other extra service; (2) prospective salary
or | 22 | | wages under a summer teaching contract not yet entered upon; | 23 | | and (3)
overseas differential allowances, quarters allowances, | 24 | | post allowances,
educational allowances and transportation | 25 | | allowances paid by an employer
under a contract with the | 26 | | federal government or its agencies for
services rendered in |
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| 1 | | other countries. If an employee elects to receive in
lieu of | 2 | | cash salary or wages, fringe benefits which are not taxable | 3 | | under
the federal Internal Revenue Code of 1986, as amended, | 4 | | the amount of the cash salary or wages
which is waived shall be | 5 | | included in determining basic compensation.
| 6 | | (Source: P.A. 99-897, eff. 1-1-17 .)
| 7 | | (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
| 8 | | Sec. 15-145. Survivors insurance benefits; conditions and | 9 | | amounts.
| 10 | | (a) The survivors insurance benefits provided under this | 11 | | Section shall
be payable to the eligible survivors of a Tier 1 | 12 | | member covered under the
traditional benefit package upon the | 13 | | death of (1) a participating employee
with at least 1 1/2 years | 14 | | of service, (2) a participant who terminated
employment with at | 15 | | least 10 years of service, and (3) an annuitant in receipt
of a | 16 | | retirement annuity or disability retirement annuity under this | 17 | | Article.
| 18 | | Service under the State Employees' Retirement System of | 19 | | Illinois, the
Teachers' Retirement System of the State of | 20 | | Illinois and the Public School
Teachers' Pension and Retirement | 21 | | Fund of Chicago shall be considered in
determining eligibility | 22 | | for survivors benefits under this Section.
| 23 | | If by law, a function of a governmental unit, as defined by | 24 | | Section 20-107,
is transferred in whole or in part to an | 25 | | employer, and an employee transfers
employment from this |
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| 1 | | governmental unit to such employer within 6 months after
the | 2 | | transfer of this function, the service credits in the | 3 | | governmental unit's
retirement system which have been | 4 | | validated under Section 20-109 shall be
considered in | 5 | | determining eligibility for survivors benefits under this
| 6 | | Section.
| 7 | | (b) A surviving spouse of a deceased participant, or of a | 8 | | deceased
annuitant who did not take a refund or additional | 9 | | annuity consisting of
accumulated survivors insurance | 10 | | contributions or who repaid the refund or additional annuity, | 11 | | shall receive a survivors
annuity of 30% of the final rate of | 12 | | earnings. Payments shall begin on the
day following the | 13 | | participant's or annuitant's death or the date the surviving
| 14 | | spouse attains age 50, whichever is later, and continue until | 15 | | the death of the
surviving spouse. The annuity shall be payable | 16 | | to the surviving spouse prior
to attainment of age 50 if the | 17 | | surviving spouse has in his or her care a
deceased | 18 | | participant's or annuitant's dependent unmarried child under | 19 | | age 18
(under age 22 if a full-time student) who is eligible | 20 | | for a survivors annuity.
| 21 | | Remarriage of a surviving spouse prior to attainment of age | 22 | | 55 that occurs
before the effective date of this amendatory Act | 23 | | of the 91st General Assembly
shall disqualify him or her for | 24 | | the receipt of a survivors annuity until July
6, 2000.
| 25 | | A surviving spouse whose survivors annuity has been | 26 | | terminated due to
remarriage may apply for reinstatement of |
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| 1 | | that
annuity. The reinstated annuity shall begin to accrue on | 2 | | July 6, 2000, except
that if, on July 6, 2000, the annuity is | 3 | | payable to an eligible surviving
child or parent, payment of | 4 | | the annuity to the surviving spouse shall not be
reinstated | 5 | | until the annuity is no longer payable to any eligible | 6 | | surviving
child or parent. The reinstated annuity shall include | 7 | | any one-time or annual
increases received prior to the date of | 8 | | termination, as well as any increases
that would otherwise have | 9 | | accrued from the date of termination to the date of
| 10 | | reinstatement.
An eligible surviving spouse whose expectation | 11 | | of receiving a survivors
annuity was lost due to remarriage | 12 | | before attainment of age 50 shall also be
entitled to | 13 | | reinstatement under this subsection, but the resulting | 14 | | survivors
annuity shall not begin to accrue sooner than upon | 15 | | the surviving spouse's
attainment of age 50.
| 16 | | The changes made to this subsection by this amendatory Act | 17 | | of the 92nd
General Assembly (pertaining to remarriage prior to | 18 | | age 55 or 50) apply without
regard to whether the deceased | 19 | | participant or annuitant was in service on or
after the | 20 | | effective date of this amendatory Act.
| 21 | | (c) Each dependent unmarried child under age 18 (under age | 22 | | 22 if a
full-time student) of a deceased participant, or of a | 23 | | deceased annuitant who
did not take a refund or additional | 24 | | annuity consisting of accumulated survivors
insurance | 25 | | contributions or who repaid the refund or additional annuity,
| 26 | | shall receive a survivors annuity equal to the sum of (1) 20% |
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| 1 | | of the final rate
of earnings, and (2) 10% of the final rate of | 2 | | earnings divided by the number of
children entitled to this | 3 | | benefit. Payments shall begin on the day following
the | 4 | | participant's or annuitant's death and continue until the child | 5 | | marries,
dies, or attains age 18 (age 22 if a full-time | 6 | | student). If the child
is in the care of a surviving spouse who | 7 | | is eligible for survivors insurance
benefits, the child's | 8 | | benefit shall be paid to the surviving spouse.
| 9 | | Each unmarried child over age 18 of a deceased participant | 10 | | or of a deceased
annuitant who had a survivor's insurance | 11 | | beneficiary at the time of his or her
retirement, and who was | 12 | | dependent upon the participant or annuitant by reason
of a | 13 | | physical or mental disability which began prior to the date the | 14 | | child
attained age 18 (age 22 if a full-time student) , shall | 15 | | receive a survivor's
annuity equal to the
sum of (1) 20% of the | 16 | | final rate of earnings, and (2) 10% of the final rate
of | 17 | | earnings divided by the number of children entitled to | 18 | | survivors
benefits. Payments shall begin on the day following | 19 | | the participant's or
annuitant's death and continue until the | 20 | | child marries, dies, or is no
longer disabled. If the child is | 21 | | in the care of a surviving spouse who is
eligible for survivors | 22 | | insurance benefits, the child's benefit may be paid
to the | 23 | | surviving spouse. For the purposes of this Section, disability
| 24 | | means inability to engage in any substantial gainful activity | 25 | | by reason of
any medically determinable physical or mental | 26 | | impairment that can be
expected to result in death or that has |
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| 1 | | lasted or can be expected to last
for a continuous period of at | 2 | | least one year.
| 3 | | (d) Each dependent parent of a deceased participant, or of | 4 | | a deceased
annuitant who did not take a refund or additional | 5 | | annuity consisting of
accumulated survivors insurance | 6 | | contributions or who repaid the refund or additional annuity, | 7 | | shall receive a survivors
annuity equal to the sum of (1) 20% | 8 | | of
final rate of earnings, and (2) 10% of final rate of | 9 | | earnings divided by the
number of parents who qualify for the | 10 | | benefit. Payments shall begin when the
parent reaches age 55 or | 11 | | the day following the participant's or annuitant's
death, | 12 | | whichever is later, and continue until the parent dies. | 13 | | Remarriage of
a parent prior to attainment of age 55 shall | 14 | | disqualify the parent for the
receipt of a survivors annuity.
| 15 | | (e) In addition to the survivors annuity provided above, | 16 | | each
survivors insurance beneficiary shall, upon death of the | 17 | | participant or
annuitant, receive a lump sum payment of $1,000 | 18 | | divided by the number
of such beneficiaries.
| 19 | | (f) The changes made in this Section by Public Act 81-712 | 20 | | pertaining
to survivors annuities in cases of remarriage prior | 21 | | to age 55
shall apply to each survivors insurance beneficiary | 22 | | who
remarries after June 30, 1979, regardless of the date that | 23 | | the
participant or annuitant terminated his employment or died.
| 24 | | The change made to this Section by this amendatory Act of | 25 | | the 91st General
Assembly, pertaining to remarriage prior to | 26 | | age 55, applies without regard to
whether the deceased |
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| 1 | | participant or annuitant was in service on or after the
| 2 | | effective date of this amendatory Act of the 91st General | 3 | | Assembly.
| 4 | | (g) On January 1, 1981, any person who was receiving
a | 5 | | survivors annuity on or before January 1, 1971 shall have the
| 6 | | survivors annuity then being paid increased by 1% for each full | 7 | | year which
has elapsed from the date the annuity began. On | 8 | | January 1, 1982, any
survivor whose annuity began after January | 9 | | 1, 1971, but before January 1,
1981, shall have the survivor's | 10 | | annuity then being paid increased by 1% for
each year which has | 11 | | elapsed from the date the survivor's annuity began.
On January | 12 | | 1, 1987, any survivor who began receiving a survivor's annuity
| 13 | | on or before January 1, 1977, shall have the monthly survivor's | 14 | | annuity
increased by $1 for each full year which has elapsed | 15 | | since the date the
survivor's annuity began.
| 16 | | (h) If the sum of the lump sum and total monthly survivor | 17 | | benefits
payable under this Section upon the death of a | 18 | | participant amounts to less
than the sum of the death benefits | 19 | | payable under items (2) and (3) of
Section 15-141, the | 20 | | difference shall be paid in a lump sum to the
beneficiary of | 21 | | the participant who is living on the date that this
additional | 22 | | amount becomes payable.
| 23 | | (i) If the sum of the lump sum and total monthly survivor | 24 | | benefits payable
under this Section upon the death of an | 25 | | annuitant receiving a retirement
annuity or disability | 26 | | retirement annuity amounts to less than the death
benefit |
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| 1 | | payable under Section 15-142, the difference shall be paid to | 2 | | the
beneficiary of the annuitant who is living on the date that | 3 | | this
additional amount becomes payable.
| 4 | | (j) Effective on the later of (1) January 1, 1990, or (2) | 5 | | the
January 1 on or next after the date on which the survivor | 6 | | annuity begins,
if the deceased member died while receiving a | 7 | | retirement annuity, or in all
other cases the January 1 nearest | 8 | | the first
anniversary of the date the survivor annuity payments | 9 | | begin, every survivors
insurance beneficiary shall receive an | 10 | | increase in
his or her monthly survivors annuity of 3%. On each | 11 | | January 1 after the
initial increase, the monthly survivors | 12 | | annuity shall be increased by 3% of
the total survivors annuity | 13 | | provided under this Article, including previous
increases | 14 | | provided by this subsection. Such increases shall apply to the
| 15 | | survivors insurance beneficiaries of each participant and | 16 | | annuitant,
whether or not the employment status of the | 17 | | participant or annuitant
terminates before the effective date | 18 | | of this amendatory Act of 1990. This
subsection (j) also | 19 | | applies to persons receiving a survivor annuity
under the | 20 | | portable benefit package.
| 21 | | (k) If the Internal Revenue Code of 1986, as amended, | 22 | | requires that the
survivors benefits be payable at an age | 23 | | earlier than that specified in this
Section the benefits shall | 24 | | begin at the earlier age, in which event, the
survivor's | 25 | | beneficiary shall be entitled only to that amount which is | 26 | | equal
to the actuarial equivalent of the benefits provided by |
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| 1 | | this Section.
| 2 | | (l) The changes made to this Section and Section 15-131 by | 3 | | this amendatory
Act of 1997, relating to benefits for certain | 4 | | unmarried children who are
full-time students under age 22, | 5 | | apply without regard to whether the deceased
member was in | 6 | | service on or after the effective date of this amendatory Act
| 7 | | of 1997. These changes do not authorize the repayment of a | 8 | | refund or a
re-election of benefits, and any benefit or | 9 | | increase in benefits resulting
from these changes is not | 10 | | payable retroactively for any period before the
effective date | 11 | | of this amendatory Act of 1997.
| 12 | | (Source: P.A. 98-92, eff. 7-16-13; 99-682, eff. 7-29-16.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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