Full Text of SB1646 103rd General Assembly
SB1646sam002 103RD GENERAL ASSEMBLY | Sen. Robert F. Martwick Filed: 3/24/2023
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| 1 | | AMENDMENT TO SENATE BILL 1646
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1646, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Article 1. | 6 | | Section 1-5. The Illinois Pension Code is amended by | 7 | | changing Section 11-196 and by adding Section 12-162.5 as | 8 | | follows:
| 9 | | (40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
| 10 | | Sec. 11-196. To subpoena witnesses and compel the | 11 | | production of records . To issue subpoenas to compel the | 12 | | attendance of witnesses to testify before it and to compel the | 13 | | production of documents and records upon any matter concerning | 14 | | the
Fund, including, but not limited to, in conjunction with: | 15 | | fund and allow witness fees not in excess of $6 per day. |
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| 1 | | (1) a disability claim; | 2 | | (2) an administrative review proceeding; | 3 | | (3) an attempt to obtain information to assist in the | 4 | | collection of sums due to the Fund; | 5 | | (4) obtaining any and all personal identifying | 6 | | information necessary for the administration of benefits; | 7 | | (5) the determination of the death of a benefit | 8 | | recipient or a potential benefit recipient; or | 9 | | (6) a felony forfeiture investigation. | 10 | | The fees of witnesses for attendance and travel shall be | 11 | | the same as the fees of witnesses before the circuit courts of | 12 | | this State and shall be paid by the party seeking the subpoena. | 13 | | The Board may apply to any circuit court in the State for an | 14 | | order requiring compliance with a subpoena issued under this | 15 | | Section. Subpoenas issued under this Section shall be subject | 16 | | to applicable provisions of the Code of Civil Procedure. The | 17 | | president or
other members of the board may administer oaths | 18 | | to witnesses.
| 19 | | (Source: Laws 1963, p. 161.)
| 20 | | (40 ILCS 5/12-162.5 new) | 21 | | Sec. 12-162.5. To subpoena witnesses and compel the | 22 | | production of records. To issue subpoenas to compel the | 23 | | attendance of witnesses to testify before it and to compel the | 24 | | production of documents and records upon any matter concerning | 25 | | the Fund, including, but not limited to, in conjunction with: |
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| 1 | | (1) a disability claim; | 2 | | (2) an administrative review proceeding; | 3 | | (3) an attempt to obtain information to assist in the | 4 | | collection of sums due to the Fund; | 5 | | (4) obtaining any and all personal identifying | 6 | | information necessary for the administration of benefits; | 7 | | (5) the determination of the death of a benefit | 8 | | recipient or a potential benefit recipient; or | 9 | | (6) a felony forfeiture investigation. | 10 | | The fees of witnesses for attendance and travel shall be | 11 | | the same as the fees of witnesses before the circuit courts of | 12 | | this State and shall be paid by the party seeking the subpoena. | 13 | | The Board may apply to any circuit court in the State for an | 14 | | order requiring compliance with a subpoena issued under this | 15 | | Section. Subpoenas issued under this Section shall be subject | 16 | | to applicable provisions of the Code of Civil Procedure. The | 17 | | president or other members of the board may administer oaths | 18 | | to witnesses. | 19 | | Article 2. | 20 | | Section 2-5. The Illinois Pension Code is amended by | 21 | | changing Sections 15-202, 16-204, 24-104, and 24-107 as | 22 | | follows: | 23 | | (40 ILCS 5/15-202) |
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| 1 | | Sec. 15-202. Optional deferred compensation plan. | 2 | | (a) As soon as practicable after August 10, 2018 (the | 3 | | effective date of Public Act 100-769), the System shall offer | 4 | | a deferred compensation plan that is eligible under Section | 5 | | 457(b) of the Internal Revenue Code of 1986, as amended, to | 6 | | participating employees of the System employed by employers | 7 | | described in Section 15-106 of this Code that qualify as | 8 | | eligible employers under Section 457(e)(1)(A) of the Internal | 9 | | Revenue Code of 1986, as amended. Such eligible employers | 10 | | shall adopt the plan with an effective date no later than | 11 | | September 1, 2021. Participating employees may voluntarily | 12 | | elect to make elective deferrals to the eligible deferred | 13 | | compensation plan. Eligible employers may make optional | 14 | | employer contributions to the plan on behalf of participating | 15 | | employees, which contributions may be maintained, increased, | 16 | | reduced, or eliminated at the discretion of the employer from | 17 | | plan year to plan year. The plan shall collect voluntary | 18 | | employee and optional employer contributions into an account | 19 | | for each participant and shall offer investment options to the | 20 | | participant. The plan under this Section shall be operated in | 21 | | full compliance with any applicable State and federal laws, | 22 | | and the System shall utilize generally accepted practices in | 23 | | creating and maintaining the plan for the best interest of the | 24 | | participants. In administering the deferred compensation plan, | 25 | | the System shall require that the deferred compensation plan | 26 | | recordkeeper agree that, in performing services with respect |
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| 1 | | to the deferred compensation plan, the recordkeeper: (i) will | 2 | | not use information received as a result of providing services | 3 | | with respect to the deferred compensation plan or the | 4 | | participants in the deferred compensation plan to solicit the | 5 | | participants in the deferred compensation plan for the purpose | 6 | | of cross-selling nonplan products and services, unless in | 7 | | response to a request by a participant in the deferred | 8 | | compensation plan; and (ii) will not promote, recommend, | 9 | | endorse, or solicit participants in the deferred compensation | 10 | | plan to purchase any financial products or services outside of | 11 | | the deferred compensation plan, except that links to parts of | 12 | | the recordkeeper's website that are generally available to the | 13 | | public, are about commercial products, and may be encountered | 14 | | by a participant in the regular course of navigating the | 15 | | recordkeeper's website will not constitute a violation of this | 16 | | item (ii), except that links to parts of the recordkeeper's | 17 | | website that are generally available to the public, are about | 18 | | commercial products, and may be encountered by a participant | 19 | | in the regular course of navigating the recordkeeper's website | 20 | | will not constitute a violation of this item (ii). The System | 21 | | may use funds from the employee and employer contributions to | 22 | | defray any and all costs of creating and maintaining the plan. | 23 | | The System shall produce an annual report on the participation | 24 | | in the plan and shall make the report public.
| 25 | | (b) The System shall automatically enroll in the eligible | 26 | | deferred compensation plan any employee of an eligible |
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| 1 | | employer who first becomes a participating employee of the | 2 | | System on or after July 1, 2023 under an eligible automatic | 3 | | contribution arrangement that is subject to Section 414(w) of | 4 | | the Internal Revenue Code of 1986, as amended, and the United | 5 | | States Department of Treasury regulations promulgated | 6 | | thereunder. An employee who is automatically enrolled under | 7 | | this subsection (b) shall have 3% of his or her compensation, | 8 | | as defined by the plan, for each pay period deferred on a | 9 | | pre-tax basis into his or her account, subject to any | 10 | | contribution limits applicable to the plan. The Board may | 11 | | increase the default percentage of compensation deferred under | 12 | | this subsection (b). | 13 | | An employee shall have 30 days from the date on which the | 14 | | System provides the notice required under Section 414(w) of | 15 | | the Internal Revenue Code of 1986, as amended, to elect to not | 16 | | participate in the eligible deferred compensation plan or to | 17 | | elect to increase or reduce the initial amount of elective | 18 | | deferrals made to the plan. In the absence of such affirmative | 19 | | election, the employee shall be automatically enrolled in the | 20 | | plan on the first day of the calendar month, or as soon as | 21 | | administratively practicable thereafter, following the 30th | 22 | | day from the date on which the System provides the required | 23 | | notice. An employee who has been automatically enrolled in the | 24 | | plan under this subsection (b) may elect, within 90 days of | 25 | | enrollment, to withdraw from the plan and receive a refund of | 26 | | amounts deferred, adjusted by applicable earnings and fees. An |
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| 1 | | employee making such an election shall forfeit all employer | 2 | | matching contributions, if any, made with respect to such | 3 | | refunded elective deferrals and such forfeited amounts shall | 4 | | be used to defray plan expenses. Any refunded elective | 5 | | deferrals shall be included in the employee's gross income for | 6 | | the taxable year in which the refund is issued. | 7 | | (c) The System may provide for one or more automatic | 8 | | contribution arrangements, which shall comply with all | 9 | | applicable Internal Revenue Service rules and regulations, in | 10 | | conjunction with or in lieu of the eligible automatic | 11 | | contribution arrangement under subsection (b), for | 12 | | participating employees of eligible employers whose annual | 13 | | earnings are limited by application of subsection (b) of | 14 | | Section 15-111 of this Code. The amount of elective deferrals | 15 | | made for the employee each pay period under an automatic | 16 | | contribution arrangement shall equal the default percentage | 17 | | specified by resolution of the Board multiplied by the | 18 | | employee's compensation as defined by the plan, subject to any | 19 | | contribution limits applicable to the plan, and shall be made | 20 | | on a pre-tax basis. An employee subject to this subsection (c) | 21 | | shall have 30 days from the date on which the System provides | 22 | | written notice to the employee to elect to not participate in | 23 | | the eligible deferred compensation plan or to elect to | 24 | | increase or reduce the amount of initial elective deferrals | 25 | | made to the plan. In the absence of such affirmative election, | 26 | | the employee shall be automatically enrolled in the plan |
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| 1 | | beginning the first day of the calendar month, or as soon as | 2 | | administratively practicable thereafter, following the 30th | 3 | | day from the date on which the System provides the required | 4 | | notice. | 5 | | (d) The System may provide that the default percentage for | 6 | | any employee automatically enrolled in the eligible deferred | 7 | | compensation plan under subsection (b) or (c) be increased by | 8 | | a specified percentage each plan year after the plan year in | 9 | | which the employee is automatically enrolled in the plan. The | 10 | | amount of automatic annual increases in any plan year shall | 11 | | not exceed 1% of compensation as defined by the plan. | 12 | | (e) The changes made to this Section by this amendatory | 13 | | Act of the 102nd General Assembly are corrections of existing | 14 | | law and are intended to be retroactive to the effective date of | 15 | | Public Act 100-769, notwithstanding Section 1-103.1 of this | 16 | | Code. | 17 | | (Source: P.A. 102-540, eff. 8-20-21.) | 18 | | (40 ILCS 5/16-204) | 19 | | Sec. 16-204. Optional defined contribution benefit. As | 20 | | soon as practicable after the effective date of this | 21 | | amendatory Act of the 100th General Assembly, the System shall | 22 | | offer a defined contribution benefit to active members of the | 23 | | System. The defined contribution benefit shall be an optional | 24 | | benefit to any member who chooses to participate. The defined | 25 | | contribution benefit shall collect optional employee and |
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| 1 | | optional employer contributions into an account and shall | 2 | | offer investment options to the participant. The benefit under | 3 | | this Section shall be operated in full compliance with any | 4 | | applicable State and federal laws, and the System shall | 5 | | utilize generally accepted practices in creating and | 6 | | maintaining the benefit for the best interest of the | 7 | | participants. In administering the defined contribution | 8 | | benefit, the System shall require that the defined | 9 | | contribution benefit recordkeeper agree that, in performing | 10 | | services with respect to the defined contribution benefit, the | 11 | | recordkeeper: (i) will not use information received as a | 12 | | result of providing services with respect to the defined | 13 | | contribution benefit or the participants in the defined | 14 | | contribution benefit to solicit the participants in the | 15 | | defined contribution benefit for the purpose of cross-selling | 16 | | nonplan products and services, unless in response to a request | 17 | | by a participant in the defined contribution benefit; and (ii) | 18 | | will not promote, recommend, endorse, or solicit participants | 19 | | in the defined contribution benefit to purchase any financial | 20 | | products or services outside of the defined contribution | 21 | | benefit, except that links to parts of the recordkeeper's | 22 | | website that are generally available to the public, are about | 23 | | commercial products, and may be encountered by a participant | 24 | | in the regular course of navigating the recordkeeper's website | 25 | | will not constitute a violation of this item (ii), except that | 26 | | links to parts of the recordkeeper's website that are |
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| 1 | | generally available to the public, are about commercial | 2 | | products, and may be encountered by a participant in the | 3 | | regular course of navigating the recordkeeper's website will | 4 | | not constitute a violation of this item (ii). The System may | 5 | | use funds from the employee and employer contributions to | 6 | | defray any and all costs of creating and maintaining the | 7 | | benefit. In addition, the System may use funds provided under | 8 | | Section 16-158 of this Code to defray any and all costs of | 9 | | creating and maintaining the benefit and then shall reimburse | 10 | | those costs from funds received from the employee and employer | 11 | | contributions under this Section. All employers must comply | 12 | | with the reporting and administrative functions established by | 13 | | the System and are required to implement the benefits | 14 | | established under this Section. The System shall produce an | 15 | | annual report on the participation in the benefit and shall | 16 | | make the report public.
| 17 | | As soon as is practicable on or after January 1, 2022, the | 18 | | System shall automatically enroll any employee who first | 19 | | becomes an active member or participant in the System. A | 20 | | member automatically enrolled under this Section shall have 3% | 21 | | of his or her pre-tax gross compensation for each compensation | 22 | | period deferred into his or her deferred compensation account, | 23 | | unless the member otherwise instructs the System on forms | 24 | | approved by the System. A member may elect, in a manner | 25 | | provided for by the System, to not participate in the defined | 26 | | contribution benefit or to increase or reduce the amount of |
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| 1 | | pre-tax gross compensation contributed, consistent with State | 2 | | or federal law. A member shall be automatically enrolled in | 3 | | the benefit beginning the first day of the pay period | 4 | | following the member's 30th day of employment. A member who | 5 | | has been automatically enrolled in the benefit may elect, | 6 | | within 90 days of enrollment, to withdraw from the benefit and | 7 | | receive a refund of amounts deferred, plus or minus any | 8 | | applicable earnings, investment fees, and administrative fees. | 9 | | Any refunded amount shall be included in the member's gross | 10 | | income for the taxable year in which the refund is issued. | 11 | | On or after January 1, 2023, the System may elect to | 12 | | increase the automatic annual contributions under this | 13 | | Section. The increase in the rate of contribution, however, | 14 | | shall not exceed 2% of a member's pre-tax gross compensation | 15 | | per year, and at no time shall any total contribution exceed | 16 | | any contribution limits established by State or federal law. | 17 | | (Source: P.A. 102-540, eff. 8-20-21.)
| 18 | | (40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
| 19 | | Sec. 24-104. State Employees Deferred Compensation Plan. | 20 | | In this Section, "Plan" means the State Employees Deferred | 21 | | Compensation Plan. | 22 | | The Illinois State Board of Investment created under
| 23 | | Article 22A of this Act shall develop and establish a deferred
| 24 | | compensation plan for employees of the State which shall be | 25 | | known as the
State Employees Deferred Compensation Plan. The |
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| 1 | | Plan shall provide for
the Board to review proposed investment | 2 | | offerings and shall require that
only investments determined | 3 | | to be acceptable by the Board may be used
for investing | 4 | | compensation deferred.
| 5 | | The Plan shall include appropriate provisions pertaining | 6 | | to its day
to day operation providing for methods of electing | 7 | | to defer income,
methods of changing the amount of income to be | 8 | | deferred, methods of
selecting from among investment options | 9 | | available under the plan and
such other provisions as may be | 10 | | appropriate.
| 11 | | In administering the Plan, the Board shall require that | 12 | | the Plan recordkeeper agree that, in performing services with | 13 | | respect to the Plan, the recordkeeper: (i) will not use | 14 | | information received as a result of providing services with | 15 | | respect to the Plan or the Plan's participants to solicit the | 16 | | Plan's participants for the purpose of cross-selling non-Plan | 17 | | products and services, unless in response to a request by a | 18 | | Plan participant; and (ii) will not promote, recommend, | 19 | | endorse, or solicit Plan participants to purchase any | 20 | | financial products or services outside of the Plan, except | 21 | | that links to parts of the recordkeeper's website that are | 22 | | generally available to the public, are about commercial | 23 | | products, and may be encountered by a Plan participant in the | 24 | | regular course of navigating the recordkeeper's website will | 25 | | not constitute a violation of this item (ii), except that | 26 | | links to parts of the recordkeeper's website that are |
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| 1 | | generally available to the public, are about commercial | 2 | | products, and may be encountered by a Plan participant in the | 3 | | regular course of navigating the recordkeeper's website will | 4 | | not constitute a violation of this item (ii). | 5 | | The Plan shall provide for the preparation, and | 6 | | distribution from
time to time to all eligible State | 7 | | employees, of pamphlets describing
the Plan and outlining the | 8 | | options and opportunities available to State
employees under | 9 | | the Plan.
| 10 | | The Plan established under this Section shall not be | 11 | | implemented or amended
until the Board is satisfied that
| 12 | | compensation deferred under the Plan is not subject to income | 13 | | tax for
the year in which it is earned and that the taxation of | 14 | | such
compensation will be deferred until the time of its | 15 | | distribution to the
employee.
| 16 | | The Board shall also review and oversee the administration | 17 | | of the Plan.
| 18 | | (Source: P.A. 81-671.)
| 19 | | (40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
| 20 | | Sec. 24-107. Local government plans.
| 21 | | (a) Any unit of local government or school district may
| 22 | | establish for its employees a deferred compensation plan | 23 | | program .
Participation shall be by written agreement between | 24 | | each employee and
the legislative authority of the unit of | 25 | | local government or school
district providing for the deferral |
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| 1 | | of such compensation and the
subsequent investment and | 2 | | administration of such funds.
| 3 | | (b) Any unit of local government may establish an | 4 | | employer-funded
money purchase retirement plan for those of | 5 | | its full time employees who are
not eligible to participate in | 6 | | any pension fund or retirement system
established under | 7 | | Articles 2 through 18 of this Code. Contributions to the
plan | 8 | | shall be made by the unit of local government only from general
| 9 | | purpose funds not derived from real property taxes imposed by | 10 | | the unit, at
a rate to be determined from time to time by the | 11 | | unit of local government.
However, the rate of employer | 12 | | contribution shall be (i) the same for all
employees | 13 | | participating in the plan, and (ii) not more than 10% of the
| 14 | | employee's salary.
| 15 | | Any benefits accruing to the participants in a retirement | 16 | | plan
established under this subsection shall be protected from | 17 | | impairment in
accordance with Article XIII, Section 5 of the | 18 | | Illinois Constitution.
However, the unit of local government | 19 | | establishing such a plan may
terminate it at any time, unless | 20 | | it has otherwise contractually agreed
with its participating | 21 | | employees.
| 22 | | (c) The agency or department designated by the unit of | 23 | | local government
or school district to establish and | 24 | | administer a plan or program authorized
under subsection (a) | 25 | | or (b) of this Section may invest the assets of the
plan in | 26 | | investments deemed appropriate by the agency or
department, |
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| 1 | | including but not limited to life insurance or annuity
| 2 | | contracts, and share or share certificate accounts of State or | 3 | | federal
credit unions, the accounts of which are insured as | 4 | | required by the
Illinois Credit Union Act or the Federal | 5 | | Credit Union Act, whichever is
applicable. The payment of | 6 | | employer contributions to a retirement
plan established under | 7 | | subsection (b), and investment and
payment to a participant of | 8 | | deferred compensation and income or gain
thereon, if any, | 9 | | shall not be construed to be prohibited uses of the
general | 10 | | assets of the unit of local government or school district.
| 11 | | This Section does not limit the power or authority of any | 12 | | unit of
local government, school district or any institution | 13 | | supported in whole
or in part by public funds to establish and | 14 | | administer any other
deferred compensation plans that may be | 15 | | authorized by law and deemed
appropriate by the officials of | 16 | | such subdivisions or institutions.
| 17 | | (d) In administering the deferred compensation plans | 18 | | authorized under this Section, the governing board or | 19 | | administrators of the sponsoring unit of local government or | 20 | | school district shall require that the deferred compensation | 21 | | plan recordkeeper agree that, in performing services with | 22 | | respect to the deferred compensation plan, the recordkeeper: | 23 | | (i) will not use information received as a result of providing | 24 | | services with respect to the deferred compensation plan or the | 25 | | deferred compensation plan's participants to solicit the | 26 | | participants in the deferred compensation plan for the purpose |
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| 1 | | of cross-selling nonplan products and services, unless in | 2 | | response to a request by a participant in the deferred | 3 | | compensation plan; and (ii) will not promote, recommend, | 4 | | endorse, or solicit participants in the deferred compensation | 5 | | plan to purchase any financial products or services outside of | 6 | | the deferred compensation plan, except that links to parts of | 7 | | the recordkeeper's website that are generally available to the | 8 | | public, are about commercial products, and may be encountered | 9 | | by a Plan participant in the regular course of navigating the | 10 | | recordkeeper's website will not constitute a violation of this | 11 | | item (ii). | 12 | | (Source: P.A. 87-794.)
| 13 | | Section 2-10. The University Employees Custodial Accounts | 14 | | Act is amended by changing Section 2 as follows:
| 15 | | (110 ILCS 95/2) (from Ch. 144, par. 1702)
| 16 | | Sec. 2.
The governing board of any public institution of | 17 | | higher education
has the power to establish a defined | 18 | | contribution plan to make payments to custodial accounts for | 19 | | investment in
regulated
investment company stock to provide | 20 | | retirement benefits as described in
Section 403(b)(7) of the | 21 | | Internal Revenue Code for eligible employees of
such | 22 | | institutions. Such payments shall be made with funds made | 23 | | available
by deductions from or reductions in salary or wages | 24 | | of eligible employees
who authorize in writing deductions or |
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| 1 | | reductions for such purpose. Such
stock shall be purchased | 2 | | only from persons authorized to sell such stock in
this State.
| 3 | | In administering the defined contribution plan, the | 4 | | governing board of any public institution of higher education | 5 | | shall require that the defined contribution plan recordkeeper | 6 | | agree that, in performing services with respect to the defined | 7 | | contribution plan, the recordkeeper: (i) will not use | 8 | | information received as a result of providing services with | 9 | | respect to the defined contribution plan or the participants | 10 | | in the defined contribution plan to solicit the participants | 11 | | in the defined contribution plan for the purpose of | 12 | | cross-selling nonplan products and services, unless in | 13 | | response to a request by a participant in the defined | 14 | | contribution plan; and (ii) will not promote, recommend, | 15 | | endorse, or solicit participants in the defined contribution | 16 | | plan to purchase any financial products or services outside of | 17 | | the defined contribution plan, except that links to parts of | 18 | | the recordkeeper's website that are generally available to the | 19 | | public, are about commercial products, and may be encountered | 20 | | by a participant in the regular course of navigating the | 21 | | recordkeeper's website will not constitute a violation of this | 22 | | item (ii). | 23 | | (Source: P.A. 83-261.)
| 24 | | Article 3. |
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| 1 | | Section 3-5. The Illinois Pension Code is amended by | 2 | | changing Section 1-167 as follows: | 3 | | (40 ILCS 5/1-167) | 4 | | Sec. 1-167. Prohibited disclosures. No pension fund or | 5 | | retirement system subject to this Code shall disclose the | 6 | | following information of any members or participants of any | 7 | | pension fund or retirement system: (1) the individual's home | 8 | | address (including ZIP code and county); (2) the individual's | 9 | | date of birth; (3) the individual's home and personal phone | 10 | | number; (4) the individual's personal email address; (5) | 11 | | personally identifying member or participant deduction | 12 | | information; or (6) any membership status in a labor | 13 | | organization or other voluntary association affiliated with a | 14 | | labor organization or labor federation (including whether | 15 | | participants are members of such organization, the identity of | 16 | | such organization, whether or not participants pay or | 17 | | authorize the payment of any dues or moneys to such | 18 | | organization, and the amounts of such dues or moneys). | 19 | | This Section does not apply to disclosures (i) required | 20 | | under the Freedom of Information Act, (ii) for purposes of | 21 | | conducting public operations or business, or (iii) to a labor | 22 | | organization or other voluntary association affiliated with a | 23 | | labor organization or labor federation or to the Municipal | 24 | | Employees Society of Chicago .
| 25 | | (Source: P.A. 101-620, eff. 12-20-19.) |
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| 1 | | Article 4. | 2 | | Section 4-5. The Illinois Pension Code is amended by | 3 | | changing Section 24-105.2 as follows: | 4 | | (40 ILCS 5/24-105.2) | 5 | | Sec. 24-105.2. Automatic enrollment for certain employees. | 6 | | The Department of Central Management Services shall | 7 | | automatically enroll in the State Employees Deferred | 8 | | Compensation Plan any employee who, on or after July 1, 2020, | 9 | | becomes an active member or participant of a retirement system | 10 | | created under Article 2, 14, or 18. Any agency with employees | 11 | | subject to automatic enrollment must systematically provide | 12 | | the employee data necessary for enrollment to the Department | 13 | | of Central Management Services or its designee. An employee | 14 | | automatically enrolled under this Section shall have 3% of his | 15 | | or her pre-tax gross compensation for each compensation period | 16 | | deferred into his or her deferred compensation account. The | 17 | | Board may increase the default percentage amount of | 18 | | compensation deferred into employee accounts. | 19 | | An employee hired on or after January 1, 2024 shall be | 20 | | automatically enrolled in the Plan beginning the first day of | 21 | | the pay period following the close of the notice period, | 22 | | unless the employee elects otherwise within the notice period. | 23 | | During the notice period, an employee may elect to not |
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| 1 | | participate in the Plan or to increase or reduce the amount of | 2 | | pre-tax gross compensation deferred. For the purposes of this | 3 | | Section, "notice period" means a reasonable period of time | 4 | | after the employee is provided with an automatic enrollment | 5 | | notice as required under Section 414(w) of the Internal | 6 | | Revenue Code of 1986, as amended. An employee who has been | 7 | | automatically enrolled in the Plan may elect, within 90 days | 8 | | after enrollment, to withdraw from the Plan and receive a | 9 | | refund of amounts deferred, plus or minus any applicable | 10 | | earnings, investment fees, and administrative fees. An | 11 | | employee making such an election shall forfeit all employer | 12 | | matching contributions, if any, made prior to the election. | 13 | | Any refunded amount shall be included in the employee's gross | 14 | | income for the taxable year in which the refund is issued. | 15 | | An employee hired on or after July 1, 2020 and before | 16 | | January 1, 2024 shall have 30 days from the start date of | 17 | | employment to elect to not participate in the deferred | 18 | | compensation plan or to elect to increase or reduce the amount | 19 | | of pre-tax gross compensation deferred. An employee shall be | 20 | | automatically enrolled in the Plan beginning the first day of | 21 | | the pay period following the employee's thirtieth day of | 22 | | employment. An employee who has been automatically enrolled in | 23 | | the Plan may elect, within 90 days of enrollment, to withdraw | 24 | | from the Plan and receive a refund of amounts deferred, plus or | 25 | | minus any applicable earnings, investment fees, and | 26 | | administrative fees. An employee making such an election shall |
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| 1 | | forfeit all employer matching contributions, if any, made | 2 | | prior to the election. Any refunded amount shall be included | 3 | | in the employee's gross income for the taxable year in which | 4 | | the refund is issued.
| 5 | | As soon as practicable, the Board shall establish annual, | 6 | | automatic increases to employee contribution rates for | 7 | | employees who are automatically enrolled in the Plan pursuant | 8 | | to this Section. The amount of automatic annual increases in | 9 | | any 12-month period shall not exceed 1% of compensation. | 10 | | Employees may elect to not receive automatic annual increases | 11 | | in a manner described by the Board. | 12 | | (Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.) | 13 | | Article 5. | 14 | | Section 5-5. The Illinois Pension Code is amended by | 15 | | changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as | 16 | | follows: | 17 | | (40 ILCS 5/22C-115) | 18 | | Sec. 22C-115. Board of Trustees of the Fund. | 19 | | (a) No later than February 1, 2020 (one month after the | 20 | | effective date of Public Act 101-610) or as soon thereafter as | 21 | | may be practicable, the Governor shall appoint, by and with | 22 | | the advice and consent of the Senate, a transition board of | 23 | | trustees consisting of 9 members as follows: |
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| 1 | | (1) three members representing municipalities and fire | 2 | | protection districts who are mayors, presidents, chief | 3 | | executive officers, chief financial officers, or other | 4 | | officers, executives, or department heads of | 5 | | municipalities or fire protection districts and appointed | 6 | | from among candidates recommended by the Illinois | 7 | | Municipal League; | 8 | | (2) three members representing participants who are | 9 | | participants and appointed from among candidates | 10 | | recommended by the statewide labor organization | 11 | | representing firefighters employed by at least 85 | 12 | | municipalities that is affiliated with the Illinois State | 13 | | Federation of Labor; | 14 | | (3) one member representing beneficiaries who is a | 15 | | beneficiary and appointed from among the candidate or | 16 | | candidates recommended by the statewide labor organization | 17 | | representing firefighters employed by at least 85 | 18 | | municipalities that is affiliated with the Illinois State | 19 | | Federation of Labor; | 20 | | (4) one member recommended by the Illinois Municipal | 21 | | League; and | 22 | | (5) one member who is a participant recommended by the | 23 | | statewide labor organization representing firefighters | 24 | | employed by at least 85 municipalities and that is | 25 | | affiliated with the Illinois State Federation of Labor. | 26 | | The transition board members shall serve until the initial |
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| 1 | | permanent board members are elected and qualified. | 2 | | The transition board of trustees shall select the | 3 | | chairperson of the transition board of trustees from among the | 4 | | trustees for the duration of the
transition board's tenure. | 5 | | (b) The permanent board of trustees shall consist of 9 | 6 | | members comprised as follows: | 7 | | (1) Three members who are mayors, presidents, chief | 8 | | executive officers, chief financial officers, or other | 9 | | officers, executives, or department heads of | 10 | | municipalities or fire protection districts that have | 11 | | participating pension funds and are elected by the mayors | 12 | | and presidents of municipalities or fire protection | 13 | | districts that have participating pension funds. | 14 | | (2) Three members who are participants of | 15 | | participating pension funds and elected by the | 16 | | participants of participating pension funds. | 17 | | (3) One member who is a beneficiary of a participating | 18 | | pension fund and is elected by the beneficiaries of | 19 | | participating pension funds. | 20 | | (4) One member recommended by the Illinois Municipal | 21 | | League who shall be appointed by the Governor with the | 22 | | advice and consent of the Senate. | 23 | | (5) One member recommended by the statewide labor | 24 | | organization representing firefighters employed by at | 25 | | least 85 municipalities and that is affiliated with the | 26 | | Illinois State Federation of Labor who shall be appointed |
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| 1 | | by the Governor with the advice and consent of the Senate. | 2 | | The permanent board of trustees shall select the | 3 | | chairperson of the permanent board of trustees from among the | 4 | | trustees for a term of 2 years. The holder of the office of | 5 | | chairperson shall alternate between a person elected or | 6 | | appointed under item (1) or (4) of this subsection (b) and a | 7 | | person elected or appointed under item (2), (3), or (5) of this | 8 | | subsection (b). | 9 | | (c) Each trustee shall qualify by taking an oath of office | 10 | | before the Secretary of State or the Board's appointed legal | 11 | | counsel stating that he or she will diligently and honestly | 12 | | administer the affairs of the board and will not violate or | 13 | | knowingly permit the violation of any provision of this | 14 | | Article. | 15 | | (d) Trustees shall receive no salary for service on the | 16 | | board but shall be reimbursed for travel expenses incurred | 17 | | while on business for the board according to the standards in | 18 | | effect for members of the Commission on Government Forecasting | 19 | | and Accountability . | 20 | | A municipality or fire protection district employing a | 21 | | firefighter who is an elected or appointed trustee of the | 22 | | board must allow reasonable time off with compensation for the | 23 | | firefighter to conduct official business related to his or her | 24 | | position on the board, including time for travel. The board | 25 | | shall notify the municipality or fire protection district in | 26 | | advance of the dates, times, and locations of this official |
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| 1 | | business. The Fund shall timely reimburse the municipality or | 2 | | fire protection district for the reasonable costs incurred | 3 | | that are due to the firefighter's absence. | 4 | | (e) No trustee shall have any interest in any brokerage | 5 | | fee, commission, or other profit or gain arising out of any | 6 | | investment directed by the board. This subsection does not | 7 | | preclude ownership by any member of any minority interest in | 8 | | any common stock or any corporate obligation in which an | 9 | | investment is directed by the board. | 10 | | (f) Notwithstanding any provision or interpretation of law | 11 | | to the contrary, any member of the transition board may also be | 12 | | elected or appointed as a member of the permanent board. | 13 | | Notwithstanding any provision or interpretation of law to | 14 | | the contrary, any trustee of a fund established under Article | 15 | | 4 of this Code may also be appointed as a member of the | 16 | | transition board or elected or appointed as a member of the | 17 | | permanent board. | 18 | | The restriction in Section 3.1 of the Lobbyist | 19 | | Registration Act shall not apply to a member of the transition | 20 | | board appointed pursuant to items (4) or (5) of subsection (a) | 21 | | or to a member of the permanent board appointed pursuant to | 22 | | items (4) or (5) of subsection (b).
| 23 | | (Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.) | 24 | | (40 ILCS 5/22C-116) | 25 | | Sec. 22C-116. Conduct and administration of elections; |
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| 1 | | terms of office. | 2 | | (a) For the election of the permanent trustees, the | 3 | | transition board shall administer the initial elections and | 4 | | the permanent board shall administer all subsequent elections. | 5 | | Each board shall develop and implement such procedures as it | 6 | | determines to be appropriate for the conduct of such | 7 | | elections. For the purposes of obtaining information necessary | 8 | | to conduct elections under this Section, participating pension | 9 | | funds shall cooperate with the Fund. | 10 | | (b) All nominations for election shall be by petition. | 11 | | Each petition for a trustee shall be executed as follows: | 12 | | (1) for trustees to be elected by the mayors and | 13 | | presidents of municipalities or fire protection districts | 14 | | that have participating pension funds, by at least 20 such | 15 | | mayors and presidents; except that this item (1) shall | 16 | | apply only with respect to participating pension funds; | 17 | | (2) for trustees to be elected by participants, by at | 18 | | least 400 participants; and | 19 | | (3) for trustees to be elected by beneficiaries, by at | 20 | | least 100 beneficiaries. | 21 | | (c) A separate ballot shall be used for each class of | 22 | | trustee. The board shall prepare and send ballots and ballot | 23 | | envelopes to the participants and beneficiaries eligible | 24 | | voters to vote in accordance with rules adopted by the board. | 25 | | The ballots shall contain the names of all candidates in | 26 | | alphabetical order. The ballot envelope shall have on the |
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| 1 | | outside a form of certificate stating that the person voting | 2 | | the ballot is a participant or beneficiary entitled to vote. | 3 | | Eligible voters Participants and beneficiaries , upon | 4 | | receipt of the ballot, shall vote the ballot and place it in | 5 | | the ballot envelope, seal the envelope, execute the | 6 | | certificate thereon, and return the ballot to the Fund. | 7 | | The board shall set a final date for ballot return, and | 8 | | ballots received prior to that date in a ballot envelope with a | 9 | | properly executed certificate and properly voted shall be | 10 | | valid ballots. | 11 | | The board shall set a day for counting the ballots and name | 12 | | judges and clerks of election to conduct the count of ballots | 13 | | and shall make any rules necessary for the conduct of the | 14 | | count. | 15 | | The candidate or candidates receiving the highest number | 16 | | of votes for each class of trustee shall be elected. In the | 17 | | case of a tie vote, the winner shall be determined in | 18 | | accordance with procedures developed by the Department of | 19 | | Insurance. | 20 | | In lieu of conducting elections via mail balloting as | 21 | | described in this Section, the board may instead adopt rules | 22 | | to provide for elections to be carried out solely via Internet | 23 | | balloting or phone balloting. Nothing in this Section | 24 | | prohibits the Fund from contracting with a third party to | 25 | | administer the election in accordance with this Section. | 26 | | (d) At any election, voting shall be as follows: |
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| 1 | | (1) Each person authorized to vote for an elected | 2 | | trustee may cast one vote for each related position for | 3 | | which such person is entitled to vote and may cast such | 4 | | vote for any candidate or candidates on the ballot for | 5 | | such trustee position. | 6 | | (2) If only one candidate for each position is | 7 | | properly nominated in petitions received, that candidate | 8 | | shall be deemed the winner and no election under this | 9 | | Section shall be required. | 10 | | (3) The results shall be entered in the minutes of the | 11 | | first meeting of the board following the tally of votes. | 12 | | (e) The initial election for permanent trustees shall be | 13 | | held and the permanent board shall be seated no later than 12 | 14 | | months after the effective date of this amendatory Act of the | 15 | | 101st General Assembly. Each subsequent election shall be held | 16 | | no later than 30 days prior to the end of the term of the | 17 | | incumbent trustees. | 18 | | (f) The elected trustees shall each serve for terms of 4 | 19 | | years commencing on the first business day of the first month | 20 | | after election; except that the terms of office of the | 21 | | initially elected trustees shall be as follows: | 22 | | (1) One trustee elected pursuant to item (1) of | 23 | | subsection (b) of Section 22C-115 shall serve for a term | 24 | | of 2 years and 2 trustees elected pursuant to item (1) of | 25 | | subsection (b) of Section 22C-115 shall serve for a term | 26 | | of 4 years; |
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| 1 | | (2) One trustee elected pursuant to item (2) of | 2 | | subsection (b) of Section 22C-115 shall serve for a term | 3 | | of 2 years and 2 trustees elected pursuant to item (2) of | 4 | | subsection (b) of Section 22C-115 shall serve for a term | 5 | | of 4 years; and | 6 | | (3) The trustee elected pursuant to item (3) of | 7 | | subsection (b) of Section 22C-115 shall serve for a term | 8 | | of 2 years. | 9 | | (g) The trustees appointed pursuant to items (4) and (5) | 10 | | of subsection (b) of Section 22C-115 shall each serve for a | 11 | | term of 4 years commencing on the first business day of the | 12 | | first month after the election of the elected trustees. | 13 | | (h) A member of the board who was elected pursuant to item | 14 | | (1) of subsection (b) of Section 22C-115 who ceases to serve as | 15 | | a mayor, president, chief executive officer, chief financial | 16 | | officer, or other officer, executive, or department head of a | 17 | | municipality or fire protection district that has a | 18 | | participating pension fund shall not be eligible to serve as a | 19 | | member of the board and his or her position shall be deemed | 20 | | vacant. A member of the board who was elected by the | 21 | | participants of participating pension funds who ceases to be a | 22 | | participant may serve the remainder of his or her elected | 23 | | term. | 24 | | For a vacancy of an elected trustee occurring with an | 25 | | unexpired term of 6 months or more, an election shall be | 26 | | conducted for the vacancy in accordance with Section 22C-115 |
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| 1 | | and this Section. | 2 | | For a vacancy of an elected trustee occurring with an | 3 | | unexpired term of less than 6 months , the vacancy shall be | 4 | | filled by appointment by the board for the unexpired term as | 5 | | follows: a vacancy of a member elected pursuant to item (1) of | 6 | | subsection (b) of Section 22C-115 shall be filled by a mayor, | 7 | | president, chief executive officer, chief financial officer, | 8 | | or other officer, executive, or department head of a | 9 | | municipality or fire protection district that has a | 10 | | participating pension fund; a vacancy of a member elected | 11 | | pursuant to item (2) of subsection (b) of Section 22C-115 | 12 | | shall be filled by a participant of a participating pension | 13 | | fund; and a vacancy of a member elected under item (3) of | 14 | | subsection (b) of Section 22C-115 shall be filled by a | 15 | | beneficiary of a participating pension fund. A trustee | 16 | | appointed to fill the vacancy of an elected trustee shall | 17 | | serve until a successor is elected. Special elections to fill | 18 | | the remainder of an unexpired term vacated by an elected | 19 | | trustee shall be held concurrently with and in the same manner | 20 | | as the next regular election for an elected trustee position. | 21 | | Vacancies among the appointed trustees shall be filled for | 22 | | unexpired terms by appointment in like manner as for the | 23 | | original appointments.
| 24 | | (Source: P.A. 101-610, eff. 1-1-20.) | 25 | | (40 ILCS 5/22C-119) |
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| 1 | | Sec. 22C-119. Adoption of rules. The board shall adopt | 2 | | such rules (not inconsistent with this Code) as in its | 3 | | judgment are desirable to implement and properly administer | 4 | | this Article. Such rules shall specifically provide for the | 5 | | following: (1) the implementation of the transition process | 6 | | described in Section 22C-120; (2) the process by which the | 7 | | participating pension funds may request transfer of funds; (3) | 8 | | the process for the transfer in, receipt for, and investment | 9 | | of pension assets received by the Fund after the transition | 10 | | period from the participating pension funds; (4) the process | 11 | | by which contributions from municipalities and fire protection | 12 | | districts for the benefit of the participating pension funds | 13 | | may, but are not required to, be directly transferred to the | 14 | | Fund; and (5) compensation and benefits for its employees. A | 15 | | copy of the rules adopted by the Fund shall be posted on the | 16 | | Fund's website filed with the Secretary of State and the | 17 | | Department of Insurance . The adoption and effectiveness of | 18 | | such rules shall not be subject to Article 5 of the Illinois | 19 | | Administrative Procedure Act.
| 20 | | (Source: P.A. 101-610, eff. 1-1-20.) | 21 | | (40 ILCS 5/22C-123) | 22 | | Sec. 22C-123. Custodian. The pension fund assets | 23 | | transferred to or otherwise acquired by the Fund shall be | 24 | | placed in the custody of a custodian who shall provide | 25 | | adequate safe deposit facilities for those assets and hold all |
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| 1 | | such securities, funds, and other assets subject to the order | 2 | | of the Fund. | 3 | | Each custodian shall furnish a corporate surety bond of | 4 | | such amount as the board designates, which bond shall | 5 | | indemnify the Fund, the board, and the officers and employees | 6 | | of the Fund against any loss that may result from any action or | 7 | | failure to act by the custodian or any of the custodian's | 8 | | agents , or provide insurance coverages of such type and limits | 9 | | as the board designates . All charges incidental to the | 10 | | procuring and giving of any bond shall be paid by the board and | 11 | | each bond shall be in the custody of the board.
| 12 | | (Source: P.A. 101-610, eff. 1-1-20.) | 13 | | Article 6. | 14 | | Section 6-5. The Illinois Pension Code is amended by | 15 | | changing Section 8-165 as follows:
| 16 | | (40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
| 17 | | Sec. 8-165. Re-entry into service. | 18 | | (a) Except as provided in subsection (c) or (d) , when an | 19 | | employee receiving age and service or prior service
annuity | 20 | | who has withdrawn from service after the effective date
| 21 | | re-enters service before age 65, any annuity previously | 22 | | granted and any
annuity fixed for his wife shall be cancelled. | 23 | | The employee shall be
credited for annuity purposes with sums |
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| 1 | | sufficient to provide annuities
equal to those cancelled, as | 2 | | of their ages on the date of re-entry;
provided, the maximum | 3 | | age of the wife for this purpose shall be as
provided in | 4 | | Section 8-155 of this Article.
| 5 | | The sums so credited shall provide for annuities to be | 6 | | fixed and
granted in the future. Contributions by the | 7 | | employees
and the city for
the purposes of this Article shall | 8 | | be made, and when the proper time
arrives, as provided in this | 9 | | Article, new annuities based upon the total
credit for annuity | 10 | | purposes and the entire term of his service shall be
fixed for | 11 | | the employee and his wife.
| 12 | | If the employee's wife died before he re-entered service, | 13 | | no part of
any credits for widow's or widow's prior service | 14 | | annuity at the time
annuity for his wife was fixed shall be | 15 | | credited upon re-entry into
service, and no such sums shall | 16 | | thereafter be used to provide such
annuity.
| 17 | | (b) Except as provided in subsection (c) or (d) , when an | 18 | | employee re-enters service after age 65, payments on
account | 19 | | of any annuity previously granted shall be suspended during | 20 | | the
time thereafter that he is in service, and when he again | 21 | | withdraws,
annuity payments shall be resumed. If the employee | 22 | | dies in service, his
widow shall receive the amount of annuity | 23 | | previously fixed for her.
| 24 | | (c) For school years beginning on or after July 1, 2021, an | 25 | | age and service or prior service
annuity shall not be | 26 | | cancelled in the case of an employee who is re-employed by the |
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| 1 | | Board of Education of the city as a Special Education | 2 | | Classroom Assistant or Classroom Assistant on a temporary and | 3 | | non-annual basis or on an hourly basis so long as the person: | 4 | | (1) does not work for compensation on more than 120 days in a | 5 | | school year; or (2) does not accept gross compensation for the | 6 | | re-employment in a school year in excess of $30,000. These | 7 | | limitations apply only to school years that begin on or after | 8 | | July 1, 2021. Re-employment under this subsection does not | 9 | | require contributions, result in service credit being earned | 10 | | or granted, or constitute active participation in the Fund. | 11 | | (d) For school years beginning on or after July 1, 2023, an | 12 | | age and service or prior service annuity shall not be | 13 | | cancelled in the case of an employee who is re-employed by the | 14 | | Board of Education of the city as a paraprofessional or | 15 | | related service provider on a temporary and non-annual basis | 16 | | or on an hourly basis so long as the person: (1) does not work | 17 | | for compensation on more than 120 days in a school year; or (2) | 18 | | does not accept gross compensation for the re-employment in a | 19 | | school year in excess of $30,000. These limitations apply only | 20 | | to school years that begin on or after July 1, 2023. | 21 | | Re-employment under this subsection does not require | 22 | | contributions, result in service credit being earned or | 23 | | granted, or constitute active participation in the Fund. | 24 | | (Source: P.A. 102-342, eff. 8-13-21.)
| 25 | | Article 7. |
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| 1 | | Section 7-5. The School Code is amended by changing | 2 | | Section 24-6.3 as follows:
| 3 | | (105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
| 4 | | Sec. 24-6.3. Retirement trustee leave. | 5 | | (a) Each school board
employing a teacher who is an | 6 | | elected trustee of the Teachers' Retirement
System of the | 7 | | State of Illinois shall make available to the elected trustee
| 8 | | at least 20 days of paid leave of absence per year for the | 9 | | purpose of
attending meetings of the System's Board of | 10 | | Trustees, committee meetings of
such Board, and seminars | 11 | | regarding issues for which such Board is
responsible. The | 12 | | Teachers' Retirement System of the State of Illinois shall
| 13 | | reimburse affected school districts for the actual cost of | 14 | | hiring a
substitute teacher during such leaves of absence.
| 15 | | (b) Each school board employing an employee who is an | 16 | | elected trustee of the Illinois Municipal Retirement Fund | 17 | | shall make available to the elected trustee at least 20 days of | 18 | | paid leave of absence per year for the purpose of attending | 19 | | meetings of the Fund's Board of Trustees, committee meetings | 20 | | of the Board of Trustees, and seminars regarding issues for | 21 | | which the Board of Trustees is responsible. The Illinois | 22 | | Municipal Retirement Fund may reimburse affected school | 23 | | districts for the actual cost of hiring a substitute employee | 24 | | during such leaves of absence. |
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| 1 | | (c) The school board established under Article 34 and | 2 | | employers under Article 17 of the Illinois Pension Code shall | 3 | | make available to each active teacher who is an elected | 4 | | trustee of the Board of Trustees of the Public School | 5 | | Teachers' Pension and Retirement Fund of Chicago established | 6 | | under Article 17 of the Illinois Pension Code up to 22 days of | 7 | | paid leave of absence per year for the purpose of attending | 8 | | meetings of the Board of Trustees, committee meetings of the | 9 | | Board of Trustees, and seminars regarding issues for which the | 10 | | Board of Trustees is responsible. The allocation of the days | 11 | | of paid leave shall be at the discretion of the Board of | 12 | | Trustees of the Public School Teachers' Pension and Retirement | 13 | | Fund of Chicago. | 14 | | (Source: P.A. 96-357, eff. 8-13-09.)
| 15 | | Article 8. | 16 | | Section 8-5. The Illinois Pension Code is amended by | 17 | | changing Section 16-155 as follows:
| 18 | | (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
| 19 | | Sec. 16-155. Report to system and payment of deductions.
| 20 | | (a) The employer governing body of each school district | 21 | | shall submit to the System all required reports and make two | 22 | | deposits each
month. The deposit for member contributions for | 23 | | salary paid during any between the first
and the fifteenth of |
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| 1 | | the month is due by the 10th 25th of the following month. | 2 | | Additionally, all The deposit of
member contributions for | 3 | | salary paid between the sixteenth and last day of the
month is | 4 | | due by the 10th of the following month. All required | 5 | | contributions
for salary earned during a school term are due | 6 | | by July 10 next following the
close of such school term.
| 7 | | The governing body of each State institution coming
under | 8 | | this retirement system, the State Comptroller or other State | 9 | | officer
certifying payroll vouchers including payments of | 10 | | salary or wages to
teachers, and any other employer of | 11 | | teachers, shall, monthly, forward to
the secretary of the | 12 | | retirement system the member contributions required
under this | 13 | | Article.
| 14 | | Each employer specified above shall, prior to August 15 of | 15 | | each year,
forward to the System a detailed statement, | 16 | | verified in all cases of school
districts by the secretary or | 17 | | clerk of the district, of the amounts so
contributed since the | 18 | | period covered by the last previous annual statement,
together | 19 | | with required contributions not yet forwarded, such payments | 20 | | being
payable to the System.
| 21 | | The board may prescribe rules governing the form, content, | 22 | | investigation,
control, and supervision of such statements and | 23 | | may establish additional interim employer reporting | 24 | | requirements as the Board deems necessary. If no teacher in
a | 25 | | school district comes under the provisions of this Article, | 26 | | the
governing body of the district shall so state under the |
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| 1 | | oath of its
secretary to this system, and shall at the same | 2 | | time forward a copy of
the statement to the regional | 3 | | superintendent of schools.
| 4 | | The board may also require reporting requirements that are | 5 | | different than those prescribed in this Section and may | 6 | | require different reporting requirements for different | 7 | | benefits or purposes established under this Article, | 8 | | including, but not limited to, any optional benefit plan an | 9 | | employee chooses to participate in. | 10 | | (b) If the governing body of an employer that is not a | 11 | | State agency fails to forward such
required contributions | 12 | | within the time permitted in subsection (a) above,
the System | 13 | | shall notify the employer of an additional amount
due, equal | 14 | | to
$50 per day for each day that elapses from the due date | 15 | | until the day such report and employee contributions are | 16 | | received by the System.
| 17 | | (c) If the system, on August 15, is not in receipt of the | 18 | | detailed
statements required under this Section of any school | 19 | | district or other
employing unit, such school district or | 20 | | other employing unit shall pay to
the system an amount equal to | 21 | | $250 for each day that elapses from August
15, until the day | 22 | | such statement is filed with the system.
| 23 | | (Source: P.A. 101-502, eff. 8-23-19.)
| 24 | | Article 9. |
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| 1 | | Section 9-5. The Illinois Pension Code is amended by | 2 | | changing Sections 9-108.3 and 9-161 as follows: | 3 | | (40 ILCS 5/9-108.3) | 4 | | Sec. 9-108.3. In service. "In service": Any period during | 5 | | which contributions are being made to the Fund on behalf of an | 6 | | employee except for temporary election work as described in | 7 | | subsection (c) of Section 9-161 .
| 8 | | (Source: P.A. 99-578, eff. 7-15-16.)
| 9 | | (40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
| 10 | | Sec. 9-161. Re-entry into service. (a) When an employee | 11 | | who has withdrawn from service after the
effective date | 12 | | re-enters service before age 65, any annuity previously
| 13 | | granted and any annuity fixed for his wife shall be cancelled. | 14 | | The
employee shall be credited for annuity purposes with the | 15 | | actuarial value
of annuities equal to those cancelled as of | 16 | | their ages on the date of
re-entry; provided, the maximum age | 17 | | of the wife for this purpose shall
be as provided in Section | 18 | | 9-151 of this Article. The sums so credited
shall provide for | 19 | | annuities to be fixed and granted in the future.
Contributions | 20 | | by the employee and the county for the
purposes of this
Article | 21 | | shall be made and when the proper time arrives, as provided in
| 22 | | this Article, new annuities based upon the total sums | 23 | | accumulated to his
credit for annuity purposes and the entire | 24 | | term of his service shall be
fixed for the employee and his |
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| 1 | | wife.
| 2 | | If the employee's wife has died before he re-entered | 3 | | service, no part
of any credits for widow's or widow's prior | 4 | | service annuity at the time
annuity for his wife was fixed | 5 | | shall be credited upon re-entry into
service, and no such sums | 6 | | shall thereafter be used to provide such
annuity.
| 7 | | (b) When an employee re-enters service after age 65, | 8 | | payments on
account of any annuity previously granted shall be | 9 | | suspended during the
time thereafter that he is in service, | 10 | | and when he again withdraws
annuity payments shall be resumed. | 11 | | If the employee dies in service, his
widow shall receive the | 12 | | annuity previously fixed for her.
| 13 | | (c) If an employee annuitant re-enters service as an | 14 | | election worker and provides services for a scheduled federal, | 15 | | State, or local election for a period of 60 days or less during | 16 | | a calendar year, that employee annuitant's annuity shall not | 17 | | be suspended and such employee annuitant shall not be | 18 | | considered to be in service within the meaning of Section | 19 | | 9-108.3 and is not entitled to benefits for employees in | 20 | | service. If an employee annuitant re-enters service for a | 21 | | period longer than 60 days during a calendar year, the annuity | 22 | | shall be suspended or cancelled retroactive to the initial | 23 | | date of re-entry. | 24 | | (Source: P.A. 81-1536.)
| 25 | | Article 10. |
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| 1 | | Section 10-5. The Illinois Pension Code is amended by | 2 | | changing Section 17-133 as follows: | 3 | | (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
| 4 | | Sec. 17-133. Contributions for periods of outside and | 5 | | other service.
Regularly certified and appointed teachers who | 6 | | desire to have the following
described services credited for | 7 | | pension purposes shall submit to the Board
evidence thereof | 8 | | and pay into the Fund the amounts prescribed herein:
| 9 | | 1. For teaching service by a certified teacher in the | 10 | | public
schools of the several states or in schools | 11 | | operated by or under the
auspices of the United States, a | 12 | | teacher shall pay the
contributions at the rates in force | 13 | | (a) on the date of
appointment as a regularly certified | 14 | | teacher after salary adjustments
are completed, or (b) at | 15 | | the time of reappointment after salary
adjustments are | 16 | | completed, whichever is later, but not less than $450
per | 17 | | year of service. Upon the Board's approval of such service | 18 | | and the
payment of the required contributions, service | 19 | | credit of not more than
10 years shall be granted.
| 20 | | 2. For service as a playground instructor in public | 21 | | school playgrounds,
teachers shall pay the contributions | 22 | | prescribed in this Article (a) at
the time of appointment, | 23 | | as a regularly certified teacher after salary
adjustments | 24 | | are completed, or (b) on return to service as a full time
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| 1 | | regularly certified teacher, as the case may be, provided | 2 | | such rates or
amounts shall not be less than $450 per year.
| 3 | | 3. For service prior to September 1, 1955, in the | 4 | | public schools of the
City as a substitute, evening school | 5 | | or temporary teacher, or for service
as an Americanization | 6 | | teacher prior to December 31, 1955, teachers shall pay
the | 7 | | contributions prescribed in this Article (a) at the time | 8 | | of appointment,
as a regularly certified teacher after | 9 | | salary adjustments are completed,
(b) on return to service | 10 | | as a full time regularly certified teacher, as
the case | 11 | | may be, provided such rates or amounts shall not be less | 12 | | than $450
per year; and provided further that for teachers | 13 | | employed on or after September
1, 1953, rates shall not | 14 | | include contributions for widows' pensions if the
service | 15 | | described in this sub-paragraph 3 was rendered before that | 16 | | date. Any
teacher entitled to repay a refund of | 17 | | contributions under Section 17-126 may validate service | 18 | | described in this paragraph by
payment of the amounts | 19 | | prescribed herein, together with the repayment of the
| 20 | | refund, provided that if such creditable service was the | 21 | | last service rendered
in the public schools of the City | 22 | | and is not automatically reinstated by
repayment of the | 23 | | refund, the rates or amounts shall not be less than $450 | 24 | | per
year.
| 25 | | 4. For service after June 30, 1982 as a member of the | 26 | | Board of
Education, if required to resign from an |
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| 1 | | administrative or teaching position
in order to qualify as | 2 | | a member of the Board of Education.
| 3 | | 5. For service during the 1986-87 school year as a | 4 | | teacher on a special
leave of absence with full loss of | 5 | | salary, teaching for an agency under
contract to the Board | 6 | | of Education, if the teacher returned to employment in
| 7 | | September, 1987. For service under this item 5, the | 8 | | teacher must pay the
contributions at the rates in force | 9 | | at the completion of the leave period.
| 10 | | 6. For up to 2 years of service as a teacher or | 11 | | administrator employed
by a private school registered with | 12 | | or recognized by the Illinois State Board
of Education, | 13 | | provided that the teacher (i) was certified under the law
| 14 | | governing the certification of teachers at the time the | 15 | | service was rendered,
(ii) applies in writing no later | 16 | | than 2 years after the effective date of this amendatory | 17 | | Act of the 102nd General Assembly, (iii) supplies | 18 | | satisfactory evidence of the employment, (iv) completes
at | 19 | | least 10 years of contributing service as a teacher as | 20 | | defined in
Section 17-106, (v) pays the contribution | 21 | | required in this Section, and (vi)
does not receive credit | 22 | | for that service under any other provision of this
Code. | 23 | | The member may apply for credit under this subsection and | 24 | | pay the
required contribution before completing the 10 | 25 | | years of contributing service
required under item (iv), | 26 | | but the credit may not be used until the item (iv)
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| 1 | | contributing service requirement has been met.
| 2 | | For each year of service credit to be established | 3 | | under this
subparagraph 6, a member is required to | 4 | | contribute to the System (i) the employee and employer | 5 | | contribution that would have been required had such | 6 | | service been rendered as a member based on the annual | 7 | | salary rate during the first year of full-time employment
| 8 | | as a teacher under this Article following the private | 9 | | school service, plus
(ii) interest thereon at the | 10 | | actuarially assumed rate from the date of first full-time | 11 | | employment as a teacher
under this Article following the | 12 | | private school service to the date of payment,
compounded | 13 | | annually , at a rate determined by the Board .
| 14 | | For service described in sub-paragraphs 1, 2 and 3 of this | 15 | | Section, interest
shall be charged beginning one year after | 16 | | the effective date of appointment or
reappointment.
| 17 | | Effective September 1, 1974, the interest rate to be | 18 | | charged by the
Fund on contributions provided in | 19 | | sub-paragraphs 1, 2, 3 and 4 shall
be 5% per annum compounded | 20 | | annually.
| 21 | | (Source: P.A. 102-822, eff. 5-13-22.)
| 22 | | Article 99. | 23 | | Section 99-90. The State Mandates Act is amended by adding | 24 | | Section 8.47 as follows: |
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| 1 | | (30 ILCS 805/8.47 new) | 2 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | 3 | | 8 of this Act, no reimbursement by the State is required for | 4 | | the implementation of any mandate created by this amendatory | 5 | | Act of the 103rd General Assembly.
| 6 | | Section 99-99. Effective date. This Act takes effect upon | 7 | | becoming law.".
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