Full Text of SB1235 103rd General Assembly
SB1235 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB1235 Introduced 2/2/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/15-134.1 | from Ch. 108 1/2, par. 15-134.1 | 40 ILCS 5/15-198 | |
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Amends the State Universities Article of the Illinois Pension Code. Provides that for the purposes of computing service for academic years for any participant, one month of service means a calendar month during which the participant qualifies as an employee for any fraction of the month (instead of at least 15 or more days). Provides that the change applies to all service periods of a member who is a participant on or after January 1, 2024, except for certain service periods subject to purchases of service credit, repayment of a refund or distribution, or transfers of service if payment for such purchase, repayment, or transfer commenced prior to January 1, 2024. Provides that a provision concerning calculating a retirement annuity for a participant who has been employed at 1/2 time or less for 3 or more years shall not apply to a member who is a participant on or after January 1, 2024. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming changes. Effective immediately.
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| | A BILL FOR |
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| | | SB1235 | | LRB103 25499 RPS 51848 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 | 5 | | changing Sections 15-134.1 and 15-198 as follows:
| 6 | | (40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)
| 7 | | Sec. 15-134.1. Service calculation and adjustment.
| 8 | | (a) For the purposes of computing service for academic | 9 | | years for any participant, In computing
service, the following | 10 | | schedule shall govern: one month of service means
a calendar | 11 | | month during which a participant (i) qualifies as an employee
| 12 | | under Section 15-107 for at least 15 or more days, and (ii) | 13 | | receives any
earnings as an employee; 8 or more
months of | 14 | | service during an academic year shall constitute a year of | 15 | | service;
6 or more but less than 8 months of service during an | 16 | | academic year
shall constitute 3/4 of a year of service; 3 or | 17 | | more but less than 6 months
of service during an academic year | 18 | | shall constitute 1/2 of a
year of service; and one or more but | 19 | | less than 3 months of service during
an academic year shall | 20 | | constitute 1/4 of a year of service. No more than
one year of | 21 | | service may be granted per academic year, regardless of the
| 22 | | number of hours or percentage of time worked. This subsection | 23 | | (a) does not apply to service periods to which subsection |
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| 1 | | (a-5) applies. | 2 | | (a-5) For the purposes of computing service for academic | 3 | | years for any participant, the following schedule shall | 4 | | govern: one month of service means a calendar month during | 5 | | which a participant (i) qualifies as an employee under Section | 6 | | 15-107 for any fraction of the month, and (ii) receives any | 7 | | earnings as an employee; 8 or more months of service during an | 8 | | academic year shall constitute a year of service; 6 or more but | 9 | | less than 8 months of service during an academic year shall | 10 | | constitute 3/4 of a year of service; 3 or more but less than 6 | 11 | | months of service during an academic year shall constitute 1/2 | 12 | | of a year of service; and one or more but less than 3 months of | 13 | | service during an academic year shall constitute 1/4 of a year | 14 | | of service. No more than one year of service may be granted per | 15 | | academic year, regardless of the number of hours or percentage | 16 | | of time worked. | 17 | | This subsection (a-5) applies to all service periods of a | 18 | | member who is a participant on or after January 1, 2024; except | 19 | | that such changes shall not apply to service periods that were | 20 | | subject to: (1) a purchase under subsection (i) of Section | 21 | | 15-107, subsection (c) of Section 15-113.1, or Section | 22 | | 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or | 23 | | 15-113.11; (2) a repayment of a refund under subsection (b) of | 24 | | Section 15-154 or a distribution under subsection (j) of | 25 | | Section 15-158.2; or (3) a transfer under Section 15-113.10, | 26 | | 15-134.2, or 15-134.4 if payment for such purchase, repayment, |
| | | SB1235 | - 3 - | LRB103 25499 RPS 51848 b |
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| 1 | | or transfer commenced prior to January 1, 2024.
| 2 | | (b) In calculating a retirement annuity, if a participant | 3 | | has been employed
at 1/2 time or less for 3 or more years after | 4 | | September 1, 1959, service
shall be granted for such | 5 | | employment in excess of 3 years, in the proportion
that the | 6 | | percentage of time employed for each such year of employment
| 7 | | bears to the average annual percentage of time employed during
| 8 | | the period on which the final rate of earnings is based. This | 9 | | adjustment
shall not be made, however, in determining the | 10 | | eligibility for a retirement
annuity, disability benefits, | 11 | | additional death benefits, or survivors'
insurance. The | 12 | | percentage of time employed shall be as reported by the
| 13 | | employer. This subsection (b) shall not apply to a member who | 14 | | is a participant on or after January 1, 2024.
| 15 | | (Source: P.A. 87-8.)
| 16 | | (40 ILCS 5/15-198)
| 17 | | Sec. 15-198. Application and expiration of new benefit | 18 | | increases. | 19 | | (a) As used in this Section, "new benefit increase" means | 20 | | an increase in the amount of any benefit provided under this | 21 | | Article, or an expansion of the conditions of eligibility for | 22 | | any benefit under this Article, that results from an amendment | 23 | | to this Code that takes effect after June 1, 2005 (the | 24 | | effective date of Public Act 94-4). "New benefit increase", | 25 | | however, does not include any benefit increase resulting from |
| | | SB1235 | - 4 - | LRB103 25499 RPS 51848 b |
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| 1 | | the changes made to Article 1 or this Article by Public Act | 2 | | 100-23, Public Act 100-587, Public Act 100-769, Public Act | 3 | | 101-10, Public Act 101-610, Public Act 102-16, or this | 4 | | amendatory Act of the 103rd General Assembly or this | 5 | | amendatory Act of the 102nd General Assembly . | 6 | | (b) Notwithstanding any other provision of this Code or | 7 | | any subsequent amendment to this Code, every new benefit | 8 | | increase is subject to this Section and shall be deemed to be | 9 | | granted only in conformance with and contingent upon | 10 | | compliance with the provisions of this Section.
| 11 | | (c) The Public Act enacting a new benefit increase must | 12 | | identify and provide for payment to the System of additional | 13 | | funding at least sufficient to fund the resulting annual | 14 | | increase in cost to the System as it accrues. | 15 | | Every new benefit increase is contingent upon the General | 16 | | Assembly providing the additional funding required under this | 17 | | subsection. The Commission on Government Forecasting and | 18 | | Accountability shall analyze whether adequate additional | 19 | | funding has been provided for the new benefit increase and | 20 | | shall report its analysis to the Public Pension Division of | 21 | | the Department of Insurance. A new benefit increase created by | 22 | | a Public Act that does not include the additional funding | 23 | | required under this subsection is null and void. If the Public | 24 | | Pension Division determines that the additional funding | 25 | | provided for a new benefit increase under this subsection is | 26 | | or has become inadequate, it may so certify to the Governor and |
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| 1 | | the State Comptroller and, in the absence of corrective action | 2 | | by the General Assembly, the new benefit increase shall expire | 3 | | at the end of the fiscal year in which the certification is | 4 | | made.
| 5 | | (d) Every new benefit increase shall expire 5 years after | 6 | | its effective date or on such earlier date as may be specified | 7 | | in the language enacting the new benefit increase or provided | 8 | | under subsection (c). This does not prevent the General | 9 | | Assembly from extending or re-creating a new benefit increase | 10 | | by law. | 11 | | (e) Except as otherwise provided in the language creating | 12 | | the new benefit increase, a new benefit increase that expires | 13 | | under this Section continues to apply to persons who applied | 14 | | and qualified for the affected benefit while the new benefit | 15 | | increase was in effect and to the affected beneficiaries and | 16 | | alternate payees of such persons, but does not apply to any | 17 | | other person, including, without limitation, a person who | 18 | | continues in service after the expiration date and did not | 19 | | apply and qualify for the affected benefit while the new | 20 | | benefit increase was in effect.
| 21 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 22 | | 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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