Full Text of SB1235 103rd General Assembly
SB1235ham001 103RD GENERAL ASSEMBLY | Rep. Stephanie A. Kifowit Filed: 5/8/2023
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| 1 | | AMENDMENT TO SENATE BILL 1235
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1235 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 15-112, 15-134.1, 15-159, and 15-198 as | 6 | | follows:
| 7 | | (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
| 8 | | Sec. 15-112. Final rate of earnings. "Final rate of | 9 | | earnings": | 10 | | (a) This subsection (a) applies only to a Tier 1 member. | 11 | | For an employee who is paid on an hourly basis or who | 12 | | receives an annual salary
in installments during 12 months of | 13 | | each academic year, the average annual
earnings during the 48 | 14 | | consecutive calendar month period ending with the last
day of | 15 | | final termination of employment or the 4 consecutive academic | 16 | | years of
service in which the employee's earnings were the |
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| 1 | | highest, whichever is
greater.
For any other employee, the | 2 | | average annual earnings during the 4 consecutive
academic | 3 | | years of service in which his or her earnings were the highest.
| 4 | | For an employee with less than 48 months or 4 consecutive | 5 | | academic years of
service, the average earnings during his or | 6 | | her entire period of service.
The earnings of an employee with | 7 | | more than 36 months of service under item (a) of Section | 8 | | 15-113.1 prior to the
date of becoming a participant are, for | 9 | | such period, considered equal to the
average earnings during | 10 | | the last 36 months of such service. | 11 | | (b) This subsection (b) applies to a Tier 2 member. | 12 | | For an employee who is paid on an hourly basis or who | 13 | | receives an annual salary in installments during 12 months of | 14 | | each academic year, the average annual earnings obtained by | 15 | | dividing by 8 the total earnings of the employee during the 96 | 16 | | consecutive months in which the total earnings were the | 17 | | highest within the last 120 months prior to termination. | 18 | | For any other employee, the average annual earnings during | 19 | | the 8 consecutive academic years within the 10 years prior to | 20 | | termination in which the employee's earnings were the highest. | 21 | | For an employee with less than 96 consecutive months or 8 | 22 | | consecutive academic years of service, whichever is necessary, | 23 | | the average earnings during his or her entire period of | 24 | | service. | 25 | | (c) For an
employee on leave of absence with pay, or on | 26 | | leave of absence without pay
who makes contributions during |
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| 1 | | such leave, earnings are assumed to be equal
to the basic | 2 | | compensation on the date the leave began. | 3 | | (d) For an employee on
disability leave, earnings are | 4 | | assumed to be equal to the basic compensation
on the date | 5 | | disability occurs or the average earnings during the 24 months
| 6 | | immediately preceding the month in which disability occurs, | 7 | | whichever is
greater.
| 8 | | (e) For a Tier 1 member who retires on or after the | 9 | | effective date of this
amendatory Act of 1997 with at least 20 | 10 | | years of service as a firefighter or
police officer under this | 11 | | Article, the final rate of earnings shall be the
annual rate of | 12 | | earnings received by the participant on his or her last day as | 13 | | a
firefighter or police officer under this Article, if that is | 14 | | greater than the
final rate of earnings as calculated under | 15 | | the other provisions of this
Section.
| 16 | | (f) If a Tier 1 member is an employee for at least
6 months | 17 | | during the academic year in which his or her employment
is | 18 | | terminated, the annual final rate of earnings shall be 25% of | 19 | | the sum
of (1) the annual basic compensation for that year, and | 20 | | (2) the amount
earned during the 36 months immediately | 21 | | preceding that year, if this is
greater than the final rate of | 22 | | earnings as calculated under the other
provisions of this | 23 | | Section.
| 24 | | (g) In the determination of the final rate of earnings for | 25 | | an employee, that
part of an employee's earnings for any | 26 | | academic year beginning after June 30,
1997, which exceeds the |
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| 1 | | employee's earnings with that employer for the
preceding year | 2 | | by more than 20 percent shall be excluded; in the event
that an | 3 | | employee has more than one employer
this limitation shall be | 4 | | calculated separately for the earnings with
each employer. In | 5 | | making such calculation, only the basic compensation of
| 6 | | employees shall be considered, without regard to vacation or | 7 | | overtime or to
contracts for summer employment. Beginning | 8 | | September 1, 2024, this subsection (g) also applies to an | 9 | | employee who has been employed at 1/2 time or less for 3 or | 10 | | more years.
| 11 | | (h) The following are not considered as earnings in | 12 | | determining final rate of
earnings: (1) severance or | 13 | | separation pay, (2) retirement pay, (3)
payment for unused | 14 | | sick leave, and (4) payments from an employer for
the period | 15 | | used in determining final rate of earnings for any purpose | 16 | | other
than (i) services rendered, (ii) leave of absence or | 17 | | vacation granted
during that period, and (iii) vacation of up | 18 | | to 56 work days allowed upon
termination of employment; except | 19 | | that, if the benefit has been collectively
bargained between | 20 | | the employer and the recognized collective bargaining agent
| 21 | | pursuant to the Illinois Educational Labor Relations Act, | 22 | | payment received
during a period of up to 2 academic years for | 23 | | unused sick leave may be
considered as earnings in accordance | 24 | | with the applicable collective bargaining
agreement, subject | 25 | | to the 20% increase limitation of this Section. Any unused
| 26 | | sick leave considered as earnings under this Section shall not |
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| 1 | | be taken into
account in calculating service credit under | 2 | | Section 15-113.4.
| 3 | | (i) Intermittent periods of service shall be considered as | 4 | | consecutive in
determining final rate of earnings.
| 5 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
| 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 | 24 | | (a-5) applies. | 25 | | (a-5) For the purposes of computing service for academic |
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| 1 | | years for any participant, the following schedule shall | 2 | | govern: one month of service means a calendar month during | 3 | | which a participant (i) qualifies as an employee under Section | 4 | | 15-107 and contributes to the System, and (ii) receives any | 5 | | earnings as an employee; 8 or more months of service during an | 6 | | academic year shall constitute a year of service; 6 or more but | 7 | | less than 8 months of service during an academic year shall | 8 | | constitute 3/4 of a year of service; 3 or more but less than 6 | 9 | | months of service during an academic year shall constitute 1/2 | 10 | | of a year of service; and one or more but less than 3 months of | 11 | | service during an academic year shall constitute 1/4 of a year | 12 | | of service. No more than one year of service may be granted per | 13 | | academic year, regardless of the number of hours or percentage | 14 | | of time worked. | 15 | | This subsection (a-5) applies to all service periods of a | 16 | | member who is a participant on or after September 1, 2024; | 17 | | except that such changes shall not apply to service periods | 18 | | that were subject to: (1) a purchase under subsection (i) of | 19 | | Section 15-107, subsection (c) of Section 15-113.1, or Section | 20 | | 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or | 21 | | 15-113.11; (2) a repayment of a refund under subsection (b) of | 22 | | Section 15-154 or a distribution under subsection (j) of | 23 | | Section 15-158.2; or (3) a transfer under Section 15-113.10, | 24 | | 15-134.2, or 15-134.4 if payment for such purchase, repayment, | 25 | | or transfer commenced prior to September 1, 2024.
| 26 | | (b) In calculating a retirement annuity, if a participant |
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| 1 | | has been employed
at 1/2 time or less for 3 or more years after | 2 | | September 1, 1959, service
shall be granted for such | 3 | | employment in excess of 3 years, in the proportion
that the | 4 | | percentage of time employed for each such year of employment
| 5 | | bears to the average annual percentage of time employed during
| 6 | | the period on which the final rate of earnings is based. This | 7 | | adjustment
shall not be made, however, in determining the | 8 | | eligibility for a retirement
annuity, disability benefits, | 9 | | additional death benefits, or survivors'
insurance. The | 10 | | percentage of time employed shall be as reported by the
| 11 | | employer. This subsection (b) shall not apply to a member who | 12 | | is a participant on or after September 1, 2024.
| 13 | | (Source: P.A. 87-8.)
| 14 | | (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| 15 | | Sec. 15-159. Board created. | 16 | | (a) A board of trustees constituted as provided in
this | 17 | | Section shall administer this System. The board shall be known | 18 | | as the
Board of Trustees of the State Universities Retirement | 19 | | System.
| 20 | | (b) (Blank).
| 21 | | (c) (Blank).
| 22 | | (d) The Beginning on the 90th day after April 3, 2009 (the | 23 | | effective date of Public Act 96-6), the Board of Trustees | 24 | | shall be constituted as follows: | 25 | | (1) The Chairperson of the Board of Higher Education. |
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| 1 | | (2) Four trustees appointed by the Governor with the | 2 | | advice and consent of the Senate who may not be members of | 3 | | the system or hold an elective State office and who shall | 4 | | serve for a term of 6 years, except that the terms of the | 5 | | initial appointees under this subsection (d) shall be as | 6 | | follows: 2 for a term of 3 years and 2 for a term of 6 | 7 | | years. The term of an appointed trustee shall terminate | 8 | | immediately upon becoming a member of the system or being | 9 | | sworn into an elective State office, and the position | 10 | | shall be considered to be vacant and shall be filled | 11 | | pursuant to subsection (f) of this Section. | 12 | | (3) Four participating employees of the system to be | 13 | | elected from the contributing membership of the system by | 14 | | the
contributing members, no more than 2 of which may be | 15 | | from any of the University of Illinois campuses, who shall | 16 | | serve for a term of 6 years, except that the terms of the | 17 | | initial electees shall be as follows: 2 for a term of 3 | 18 | | years and 2 for a term of 6 years. | 19 | | (3.5) Two participating employees of the system who | 20 | | are employees of a community college and shall serve for a | 21 | | term of 6 years, one of whom shall be elected from the | 22 | | contributing membership and one of whom shall be appointed | 23 | | by the Governor. | 24 | | (4) Two annuitants of
the system who have been | 25 | | annuitants for at least one full year, to be
elected from | 26 | | and by the annuitants of the system, no more than one of |
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| 1 | | which may be from any of the University of Illinois | 2 | | campuses, who shall serve for a term of 6 years, except | 3 | | that the terms of the initial electees shall be as | 4 | | follows: one for a term of 3 years and one for a term of 6 | 5 | | years. | 6 | | The chairperson of the Board shall be appointed by the | 7 | | Governor from among the trustees. | 8 | | For the purposes of this Section, the Governor may make a | 9 | | nomination and the Senate may confirm the nominee in advance | 10 | | of the commencement of the nominee's term of office. | 11 | | (e) The 6 elected trustees shall be elected within 90 days | 12 | | after April 3, 2009 (the effective date of Public Act 96-6) for | 13 | | a term beginning on the 90th day after that effective date. The | 14 | | elected trustee under paragraph (3.5) of subsection (d) shall | 15 | | be elected within 90 days after the effective date of this | 16 | | amendatory Act of the 103rd General Assembly. Trustees shall | 17 | | be elected thereafter as terms expire for a 6-year term | 18 | | beginning July 15 next following their election, and such | 19 | | election shall be held on May 1, or on May 2 when May 1 falls | 20 | | on a Sunday. The board may establish rules for the election of | 21 | | trustees to implement the provisions of Public Act 96-6 and | 22 | | this amendatory Act of the 103rd General Assembly and for | 23 | | future elections. Candidates for the participating trustee | 24 | | shall be nominated by petitions in writing, signed by not less | 25 | | than 400 participants with their addresses shown opposite | 26 | | their names. Candidates for the annuitant trustee shall be |
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| 1 | | nominated by petitions in writing, signed by not less than 100 | 2 | | annuitants with their addresses shown opposite their names. If | 3 | | there is more than one qualified nominee for each elected | 4 | | trustee, then the board shall conduct a secret ballot election | 5 | | by mail for that trustee, in accordance with rules as | 6 | | established by the board. If there is only one qualified | 7 | | person nominated by petition for each elected trustee, then | 8 | | the election as required by this Section shall not be | 9 | | conducted for that trustee and the board shall declare such | 10 | | nominee duly elected. A vacancy occurring in the elective | 11 | | membership of the board shall be filled for the unexpired term | 12 | | by the elected trustees serving on the board for the remainder | 13 | | of the term. Nothing in this subsection shall preclude the | 14 | | adoption of rules providing for internet or phone balloting in | 15 | | addition, or as an alternative, to election by mail. | 16 | | (f) A vacancy in the appointed membership on the board of | 17 | | trustees caused by resignation,
death, expiration of term of | 18 | | office, or other reason shall be filled by a
qualified person | 19 | | appointed by the Governor for the remainder of the unexpired
| 20 | | term.
| 21 | | (g) Trustees
shall continue in office until their | 22 | | respective successors are appointed
and have qualified, except | 23 | | that a trustee elected to one of the participating employee
| 24 | | positions after the effective date of this amendatory Act of | 25 | | the 102nd General Assembly shall be disqualified immediately | 26 | | upon the termination of
his or her status as a participating |
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| 1 | | employee and a trustee elected to one of the
annuitant | 2 | | positions after the effective date of this amendatory Act of | 3 | | the 102nd General Assembly shall be disqualified immediately | 4 | | upon the termination of
his or her status as an annuitant | 5 | | receiving a retirement annuity.
| 6 | | An elected trustee who is incumbent on the effective date | 7 | | of this amendatory Act of the 102nd General Assembly whose | 8 | | status as a participating employee or annuitant has terminated | 9 | | after having been elected shall continue to serve in the | 10 | | participating employee or annuitant position to which he or | 11 | | she was elected for the remainder of the term. | 12 | | (h) Each trustee must take an oath of office
before a | 13 | | notary public of this State and shall qualify as a trustee upon | 14 | | the
presentation to the board of a certified copy of the oath. | 15 | | The oath must state
that the person will diligently and | 16 | | honestly administer the affairs of the
retirement system, and | 17 | | will not knowingly violate or willfully permit to be
violated | 18 | | any provisions of this Article.
| 19 | | Each trustee shall serve without compensation but shall be | 20 | | reimbursed for
expenses necessarily incurred in attending | 21 | | board meetings and carrying out his
or her duties as a trustee | 22 | | or officer of the system.
| 23 | | (Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
| 24 | | (40 ILCS 5/15-198)
| 25 | | Sec. 15-198. Application and expiration of new benefit |
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| 1 | | increases. | 2 | | (a) As used in this Section, "new benefit increase" means | 3 | | an increase in the amount of any benefit provided under this | 4 | | Article, or an expansion of the conditions of eligibility for | 5 | | any benefit under this Article, that results from an amendment | 6 | | to this Code that takes effect after June 1, 2005 (the | 7 | | effective date of Public Act 94-4). "New benefit increase", | 8 | | however, does not include any benefit increase resulting from | 9 | | the changes made to Article 1 or this Article by Public Act | 10 | | 100-23, Public Act 100-587, Public Act 100-769, Public Act | 11 | | 101-10, Public Act 101-610, Public Act 102-16, or this | 12 | | amendatory Act of the 103rd General Assembly or this | 13 | | amendatory Act of the 102nd General Assembly . | 14 | | (b) Notwithstanding any other provision of this Code or | 15 | | any subsequent amendment to this Code, every new benefit | 16 | | increase is subject to this Section and shall be deemed to be | 17 | | granted only in conformance with and contingent upon | 18 | | compliance with the provisions of this Section.
| 19 | | (c) The Public Act enacting a new benefit increase must | 20 | | identify and provide for payment to the System of additional | 21 | | funding at least sufficient to fund the resulting annual | 22 | | increase in cost to the System as it accrues. | 23 | | Every new benefit increase is contingent upon the General | 24 | | Assembly providing the additional funding required under this | 25 | | subsection. The Commission on Government Forecasting and | 26 | | Accountability shall analyze whether adequate additional |
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| 1 | | funding has been provided for the new benefit increase and | 2 | | shall report its analysis to the Public Pension Division of | 3 | | the Department of Insurance. A new benefit increase created by | 4 | | a Public Act that does not include the additional funding | 5 | | required under this subsection is null and void. If the Public | 6 | | Pension Division determines that the additional funding | 7 | | provided for a new benefit increase under this subsection is | 8 | | or has become inadequate, it may so certify to the Governor and | 9 | | the State Comptroller and, in the absence of corrective action | 10 | | by the General Assembly, the new benefit increase shall expire | 11 | | at the end of the fiscal year in which the certification is | 12 | | made.
| 13 | | (d) Every new benefit increase shall expire 5 years after | 14 | | its effective date or on such earlier date as may be specified | 15 | | in the language enacting the new benefit increase or provided | 16 | | under subsection (c). This does not prevent the General | 17 | | Assembly from extending or re-creating a new benefit increase | 18 | | by law. | 19 | | (e) Except as otherwise provided in the language creating | 20 | | the new benefit increase, a new benefit increase that expires | 21 | | under this Section continues to apply to persons who applied | 22 | | and qualified for the affected benefit while the new benefit | 23 | | increase was in effect and to the affected beneficiaries and | 24 | | alternate payees of such persons, but does not apply to any | 25 | | other person, including, without limitation, a person who | 26 | | continues in service after the expiration date and did not |
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| 1 | | apply and qualify for the affected benefit while the new | 2 | | benefit increase was in effect.
| 3 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 4 | | 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.) | 5 | | Section 97. Inseverability. The changes made to existing | 6 | | statutory law by this Act are mutually dependent and | 7 | | inseverable. If any change made to existing statutory law by | 8 | | this Act is held invalid other than as applied to a particular | 9 | | person or circumstance, then all changes made to existing | 10 | | statutory law by this Act are invalid in their entirety.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.".
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