Illinois General Assembly - Full Text of SB1646
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Full Text of SB1646  103rd General Assembly

SB1646sam002 103RD GENERAL ASSEMBLY

Sen. Robert F. Martwick

Filed: 3/24/2023

 

 


 

 


 
10300SB1646sam002LRB103 27811 RPS 60016 a

1
AMENDMENT TO SENATE BILL 1646

2    AMENDMENT NO. ______. Amend Senate Bill 1646, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5
"Article 1.

 
6    Section 1-5. The Illinois Pension Code is amended by
7changing Section 11-196 and by adding Section 12-162.5 as
8follows:
 
9    (40 ILCS 5/11-196)  (from Ch. 108 1/2, par. 11-196)
10    Sec. 11-196. To subpoena witnesses and compel the
11production of records. To issue subpoenas to compel the
12attendance of witnesses to testify before it and to compel the
13production of documents and records upon any matter concerning
14the Fund, including, but not limited to, in conjunction with:
15fund and allow witness fees not in excess of $6 per day.

 

 

10300SB1646sam002- 2 -LRB103 27811 RPS 60016 a

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
11the same as the fees of witnesses before the circuit courts of
12this State and shall be paid by the party seeking the subpoena.
13The Board may apply to any circuit court in the State for an
14order requiring compliance with a subpoena issued under this
15Section. Subpoenas issued under this Section shall be subject
16to applicable provisions of the Code of Civil Procedure. The
17president or other members of the board may administer oaths
18to 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
22production of records. To issue subpoenas to compel the
23attendance of witnesses to testify before it and to compel the
24production of documents and records upon any matter concerning
25the 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
11the same as the fees of witnesses before the circuit courts of
12this State and shall be paid by the party seeking the subpoena.
13The Board may apply to any circuit court in the State for an
14order requiring compliance with a subpoena issued under this
15Section. Subpoenas issued under this Section shall be subject
16to applicable provisions of the Code of Civil Procedure. The
17president or other members of the board may administer oaths
18to witnesses.
 
19
Article 2.

 
20    Section 2-5. The Illinois Pension Code is amended by
21changing Sections 15-202, 16-204, 24-104, and 24-107 as
22follows:
 
23    (40 ILCS 5/15-202)

 

 

10300SB1646sam002- 4 -LRB103 27811 RPS 60016 a

1    Sec. 15-202. Optional deferred compensation plan.
2    (a) As soon as practicable after August 10, 2018 (the
3effective date of Public Act 100-769), the System shall offer
4a deferred compensation plan that is eligible under Section
5457(b) of the Internal Revenue Code of 1986, as amended, to
6participating employees of the System employed by employers
7described in Section 15-106 of this Code that qualify as
8eligible employers under Section 457(e)(1)(A) of the Internal
9Revenue Code of 1986, as amended. Such eligible employers
10shall adopt the plan with an effective date no later than
11September 1, 2021. Participating employees may voluntarily
12elect to make elective deferrals to the eligible deferred
13compensation plan. Eligible employers may make optional
14employer contributions to the plan on behalf of participating
15employees, which contributions may be maintained, increased,
16reduced, or eliminated at the discretion of the employer from
17plan year to plan year. The plan shall collect voluntary
18employee and optional employer contributions into an account
19for each participant and shall offer investment options to the
20participant. The plan under this Section shall be operated in
21full compliance with any applicable State and federal laws,
22and the System shall utilize generally accepted practices in
23creating and maintaining the plan for the best interest of the
24participants. In administering the deferred compensation plan,
25the System shall require that the deferred compensation plan
26recordkeeper agree that, in performing services with respect

 

 

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1to the deferred compensation plan, the recordkeeper: (i) will
2not use information received as a result of providing services
3with respect to the deferred compensation plan or the
4participants in the deferred compensation plan to solicit the
5participants in the deferred compensation plan for the purpose
6of cross-selling nonplan products and services, unless in
7response to a request by a participant in the deferred
8compensation plan; and (ii) will not promote, recommend,
9endorse, or solicit participants in the deferred compensation
10plan to purchase any financial products or services outside of
11the deferred compensation plan, except that links to parts of
12the recordkeeper's website that are generally available to the
13public, are about commercial products, and may be encountered
14by a participant in the regular course of navigating the
15recordkeeper's website will not constitute a violation of this
16item (ii), except that links to parts of the recordkeeper's
17website that are generally available to the public, are about
18commercial products, and may be encountered by a participant
19in the regular course of navigating the recordkeeper's website
20will not constitute a violation of this item (ii). The System
21may use funds from the employee and employer contributions to
22defray any and all costs of creating and maintaining the plan.
23The System shall produce an annual report on the participation
24in the plan and shall make the report public.
25    (b) The System shall automatically enroll in the eligible
26deferred compensation plan any employee of an eligible

 

 

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1employer who first becomes a participating employee of the
2System on or after July 1, 2023 under an eligible automatic
3contribution arrangement that is subject to Section 414(w) of
4the Internal Revenue Code of 1986, as amended, and the United
5States Department of Treasury regulations promulgated
6thereunder. An employee who is automatically enrolled under
7this subsection (b) shall have 3% of his or her compensation,
8as defined by the plan, for each pay period deferred on a
9pre-tax basis into his or her account, subject to any
10contribution limits applicable to the plan. The Board may
11increase the default percentage of compensation deferred under
12this subsection (b).
13    An employee shall have 30 days from the date on which the
14System provides the notice required under Section 414(w) of
15the Internal Revenue Code of 1986, as amended, to elect to not
16participate in the eligible deferred compensation plan or to
17elect to increase or reduce the initial amount of elective
18deferrals made to the plan. In the absence of such affirmative
19election, the employee shall be automatically enrolled in the
20plan on the first day of the calendar month, or as soon as
21administratively practicable thereafter, following the 30th
22day from the date on which the System provides the required
23notice. An employee who has been automatically enrolled in the
24plan under this subsection (b) may elect, within 90 days of
25enrollment, to withdraw from the plan and receive a refund of
26amounts deferred, adjusted by applicable earnings and fees. An

 

 

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1employee making such an election shall forfeit all employer
2matching contributions, if any, made with respect to such
3refunded elective deferrals and such forfeited amounts shall
4be used to defray plan expenses. Any refunded elective
5deferrals shall be included in the employee's gross income for
6the taxable year in which the refund is issued.
7    (c) The System may provide for one or more automatic
8contribution arrangements, which shall comply with all
9applicable Internal Revenue Service rules and regulations, in
10conjunction with or in lieu of the eligible automatic
11contribution arrangement under subsection (b), for
12participating employees of eligible employers whose annual
13earnings are limited by application of subsection (b) of
14Section 15-111 of this Code. The amount of elective deferrals
15made for the employee each pay period under an automatic
16contribution arrangement shall equal the default percentage
17specified by resolution of the Board multiplied by the
18employee's compensation as defined by the plan, subject to any
19contribution limits applicable to the plan, and shall be made
20on a pre-tax basis. An employee subject to this subsection (c)
21shall have 30 days from the date on which the System provides
22written notice to the employee to elect to not participate in
23the eligible deferred compensation plan or to elect to
24increase or reduce the amount of initial elective deferrals
25made to the plan. In the absence of such affirmative election,
26the employee shall be automatically enrolled in the plan

 

 

10300SB1646sam002- 8 -LRB103 27811 RPS 60016 a

1beginning the first day of the calendar month, or as soon as
2administratively practicable thereafter, following the 30th
3day from the date on which the System provides the required
4notice.
5    (d) The System may provide that the default percentage for
6any employee automatically enrolled in the eligible deferred
7compensation plan under subsection (b) or (c) be increased by
8a specified percentage each plan year after the plan year in
9which the employee is automatically enrolled in the plan. The
10amount of automatic annual increases in any plan year shall
11not exceed 1% of compensation as defined by the plan.
12    (e) The changes made to this Section by this amendatory
13Act of the 102nd General Assembly are corrections of existing
14law and are intended to be retroactive to the effective date of
15Public Act 100-769, notwithstanding Section 1-103.1 of this
16Code.
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
20soon as practicable after the effective date of this
21amendatory Act of the 100th General Assembly, the System shall
22offer a defined contribution benefit to active members of the
23System. The defined contribution benefit shall be an optional
24benefit to any member who chooses to participate. The defined
25contribution benefit shall collect optional employee and

 

 

10300SB1646sam002- 9 -LRB103 27811 RPS 60016 a

1optional employer contributions into an account and shall
2offer investment options to the participant. The benefit under
3this Section shall be operated in full compliance with any
4applicable State and federal laws, and the System shall
5utilize generally accepted practices in creating and
6maintaining the benefit for the best interest of the
7participants. In administering the defined contribution
8benefit, the System shall require that the defined
9contribution benefit recordkeeper agree that, in performing
10services with respect to the defined contribution benefit, the
11recordkeeper: (i) will not use information received as a
12result of providing services with respect to the defined
13contribution benefit or the participants in the defined
14contribution benefit to solicit the participants in the
15defined contribution benefit for the purpose of cross-selling
16nonplan products and services, unless in response to a request
17by a participant in the defined contribution benefit; and (ii)
18will not promote, recommend, endorse, or solicit participants
19in the defined contribution benefit to purchase any financial
20products or services outside of the defined contribution
21benefit, except that links to parts of the recordkeeper's
22website that are generally available to the public, are about
23commercial products, and may be encountered by a participant
24in the regular course of navigating the recordkeeper's website
25will not constitute a violation of this item (ii), except that
26links to parts of the recordkeeper's website that are

 

 

10300SB1646sam002- 10 -LRB103 27811 RPS 60016 a

1generally available to the public, are about commercial
2products, and may be encountered by a participant in the
3regular course of navigating the recordkeeper's website will
4not constitute a violation of this item (ii). The System may
5use funds from the employee and employer contributions to
6defray any and all costs of creating and maintaining the
7benefit. In addition, the System may use funds provided under
8Section 16-158 of this Code to defray any and all costs of
9creating and maintaining the benefit and then shall reimburse
10those costs from funds received from the employee and employer
11contributions under this Section. All employers must comply
12with the reporting and administrative functions established by
13the System and are required to implement the benefits
14established under this Section. The System shall produce an
15annual report on the participation in the benefit and shall
16make the report public.
17    As soon as is practicable on or after January 1, 2022, the
18System shall automatically enroll any employee who first
19becomes an active member or participant in the System. A
20member automatically enrolled under this Section shall have 3%
21of his or her pre-tax gross compensation for each compensation
22period deferred into his or her deferred compensation account,
23unless the member otherwise instructs the System on forms
24approved by the System. A member may elect, in a manner
25provided for by the System, to not participate in the defined
26contribution benefit or to increase or reduce the amount of

 

 

10300SB1646sam002- 11 -LRB103 27811 RPS 60016 a

1pre-tax gross compensation contributed, consistent with State
2or federal law. A member shall be automatically enrolled in
3the benefit beginning the first day of the pay period
4following the member's 30th day of employment. A member who
5has been automatically enrolled in the benefit may elect,
6within 90 days of enrollment, to withdraw from the benefit and
7receive a refund of amounts deferred, plus or minus any
8applicable earnings, investment fees, and administrative fees.
9Any refunded amount shall be included in the member's gross
10income for the taxable year in which the refund is issued.
11    On or after January 1, 2023, the System may elect to
12increase the automatic annual contributions under this
13Section. The increase in the rate of contribution, however,
14shall not exceed 2% of a member's pre-tax gross compensation
15per year, and at no time shall any total contribution exceed
16any 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
21Compensation Plan.
22    The Illinois State Board of Investment created under
23Article 22A of this Act shall develop and establish a deferred
24compensation plan for employees of the State which shall be
25known as the State Employees Deferred Compensation Plan. The

 

 

10300SB1646sam002- 12 -LRB103 27811 RPS 60016 a

1Plan shall provide for the Board to review proposed investment
2offerings and shall require that only investments determined
3to be acceptable by the Board may be used for investing
4compensation deferred.
5    The Plan shall include appropriate provisions pertaining
6to its day to day operation providing for methods of electing
7to defer income, methods of changing the amount of income to be
8deferred, methods of selecting from among investment options
9available under the plan and such other provisions as may be
10appropriate.
11    In administering the Plan, the Board shall require that
12the Plan recordkeeper agree that, in performing services with
13respect to the Plan, the recordkeeper: (i) will not use
14information received as a result of providing services with
15respect to the Plan or the Plan's participants to solicit the
16Plan's participants for the purpose of cross-selling non-Plan
17products and services, unless in response to a request by a
18Plan participant; and (ii) will not promote, recommend,
19endorse, or solicit Plan participants to purchase any
20financial products or services outside of the Plan, except
21that links to parts of the recordkeeper's website that are
22generally available to the public, are about commercial
23products, and may be encountered by a Plan participant in the
24regular course of navigating the recordkeeper's website will
25not constitute a violation of this item (ii), except that
26links to parts of the recordkeeper's website that are

 

 

10300SB1646sam002- 13 -LRB103 27811 RPS 60016 a

1generally available to the public, are about commercial
2products, and may be encountered by a Plan participant in the
3regular course of navigating the recordkeeper's website will
4not constitute a violation of this item (ii).
5    The Plan shall provide for the preparation, and
6distribution from time to time to all eligible State
7employees, of pamphlets describing the Plan and outlining the
8options and opportunities available to State employees under
9the Plan.
10    The Plan established under this Section shall not be
11implemented or amended until the Board is satisfied that
12compensation deferred under the Plan is not subject to income
13tax for the year in which it is earned and that the taxation of
14such compensation will be deferred until the time of its
15distribution to the employee.
16    The Board shall also review and oversee the administration
17of 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
22establish for its employees a deferred compensation plan
23program. Participation shall be by written agreement between
24each employee and the legislative authority of the unit of
25local government or school district providing for the deferral

 

 

10300SB1646sam002- 14 -LRB103 27811 RPS 60016 a

1of such compensation and the subsequent investment and
2administration of such funds.
3    (b) Any unit of local government may establish an
4employer-funded money purchase retirement plan for those of
5its full time employees who are not eligible to participate in
6any pension fund or retirement system established under
7Articles 2 through 18 of this Code. Contributions to the plan
8shall be made by the unit of local government only from general
9purpose funds not derived from real property taxes imposed by
10the unit, at a rate to be determined from time to time by the
11unit of local government. However, the rate of employer
12contribution shall be (i) the same for all employees
13participating in the plan, and (ii) not more than 10% of the
14employee's salary.
15    Any benefits accruing to the participants in a retirement
16plan established under this subsection shall be protected from
17impairment in accordance with Article XIII, Section 5 of the
18Illinois Constitution. However, the unit of local government
19establishing such a plan may terminate it at any time, unless
20it has otherwise contractually agreed with its participating
21employees.
22    (c) The agency or department designated by the unit of
23local government or school district to establish and
24administer a plan or program authorized under subsection (a)
25or (b) of this Section may invest the assets of the plan in
26investments deemed appropriate by the agency or department,

 

 

10300SB1646sam002- 15 -LRB103 27811 RPS 60016 a

1including but not limited to life insurance or annuity
2contracts, and share or share certificate accounts of State or
3federal credit unions, the accounts of which are insured as
4required by the Illinois Credit Union Act or the Federal
5Credit Union Act, whichever is applicable. The payment of
6employer contributions to a retirement plan established under
7subsection (b), and investment and payment to a participant of
8deferred compensation and income or gain thereon, if any,
9shall not be construed to be prohibited uses of the general
10assets of the unit of local government or school district.
11    This Section does not limit the power or authority of any
12unit of local government, school district or any institution
13supported in whole or in part by public funds to establish and
14administer any other deferred compensation plans that may be
15authorized by law and deemed appropriate by the officials of
16such subdivisions or institutions.
17    (d) In administering the deferred compensation plans
18authorized under this Section, the governing board or
19administrators of the sponsoring unit of local government or
20school district shall require that the deferred compensation
21plan recordkeeper agree that, in performing services with
22respect to the deferred compensation plan, the recordkeeper:
23(i) will not use information received as a result of providing
24services with respect to the deferred compensation plan or the
25deferred compensation plan's participants to solicit the
26participants in the deferred compensation plan for the purpose

 

 

10300SB1646sam002- 16 -LRB103 27811 RPS 60016 a

1of cross-selling nonplan products and services, unless in
2response to a request by a participant in the deferred
3compensation plan; and (ii) will not promote, recommend,
4endorse, or solicit participants in the deferred compensation
5plan to purchase any financial products or services outside of
6the deferred compensation plan, except that links to parts of
7the recordkeeper's website that are generally available to the
8public, are about commercial products, and may be encountered
9by a Plan participant in the regular course of navigating the
10recordkeeper's website will not constitute a violation of this
11item (ii).
12(Source: P.A. 87-794.)
 
13    Section 2-10. The University Employees Custodial Accounts
14Act 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
17higher education has the power to establish a defined
18contribution plan to make payments to custodial accounts for
19investment in regulated investment company stock to provide
20retirement benefits as described in Section 403(b)(7) of the
21Internal Revenue Code for eligible employees of such
22institutions. Such payments shall be made with funds made
23available by deductions from or reductions in salary or wages
24of eligible employees who authorize in writing deductions or

 

 

10300SB1646sam002- 17 -LRB103 27811 RPS 60016 a

1reductions for such purpose. Such stock shall be purchased
2only from persons authorized to sell such stock in this State.
3    In administering the defined contribution plan, the
4governing board of any public institution of higher education
5shall require that the defined contribution plan recordkeeper
6agree that, in performing services with respect to the defined
7contribution plan, the recordkeeper: (i) will not use
8information received as a result of providing services with
9respect to the defined contribution plan or the participants
10in the defined contribution plan to solicit the participants
11in the defined contribution plan for the purpose of
12cross-selling nonplan products and services, unless in
13response to a request by a participant in the defined
14contribution plan; and (ii) will not promote, recommend,
15endorse, or solicit participants in the defined contribution
16plan to purchase any financial products or services outside of
17the defined contribution plan, except that links to parts of
18the recordkeeper's website that are generally available to the
19public, are about commercial products, and may be encountered
20by a participant in the regular course of navigating the
21recordkeeper's website will not constitute a violation of this
22item (ii).
23(Source: P.A. 83-261.)
 
24
Article 3.

 

 

 

10300SB1646sam002- 18 -LRB103 27811 RPS 60016 a

1    Section 3-5. The Illinois Pension Code is amended by
2changing Section 1-167 as follows:
 
3    (40 ILCS 5/1-167)
4    Sec. 1-167. Prohibited disclosures. No pension fund or
5retirement system subject to this Code shall disclose the
6following information of any members or participants of any
7pension fund or retirement system: (1) the individual's home
8address (including ZIP code and county); (2) the individual's
9date of birth; (3) the individual's home and personal phone
10number; (4) the individual's personal email address; (5)
11personally identifying member or participant deduction
12information; or (6) any membership status in a labor
13organization or other voluntary association affiliated with a
14labor organization or labor federation (including whether
15participants are members of such organization, the identity of
16such organization, whether or not participants pay or
17authorize the payment of any dues or moneys to such
18organization, and the amounts of such dues or moneys).
19    This Section does not apply to disclosures (i) required
20under the Freedom of Information Act, (ii) for purposes of
21conducting public operations or business, or (iii) to a labor
22organization or other voluntary association affiliated with a
23labor organization or labor federation or to the Municipal
24Employees Society of Chicago.
25(Source: P.A. 101-620, eff. 12-20-19.)
 

 

 

10300SB1646sam002- 19 -LRB103 27811 RPS 60016 a

1
Article 4.

 
2    Section 4-5. The Illinois Pension Code is amended by
3changing Section 24-105.2 as follows:
 
4    (40 ILCS 5/24-105.2)
5    Sec. 24-105.2. Automatic enrollment for certain employees.
6The Department of Central Management Services shall
7automatically enroll in the State Employees Deferred
8Compensation Plan any employee who, on or after July 1, 2020,
9becomes an active member or participant of a retirement system
10created under Article 2, 14, or 18. Any agency with employees
11subject to automatic enrollment must systematically provide
12the employee data necessary for enrollment to the Department
13of Central Management Services or its designee. An employee
14automatically enrolled under this Section shall have 3% of his
15or her pre-tax gross compensation for each compensation period
16deferred into his or her deferred compensation account. The
17Board may increase the default percentage amount of
18compensation deferred into employee accounts.
19    An employee hired on or after January 1, 2024 shall be
20automatically enrolled in the Plan beginning the first day of
21the pay period following the close of the notice period,
22unless the employee elects otherwise within the notice period.
23During the notice period, an employee may elect to not

 

 

10300SB1646sam002- 20 -LRB103 27811 RPS 60016 a

1participate in the Plan or to increase or reduce the amount of
2pre-tax gross compensation deferred. For the purposes of this
3Section, "notice period" means a reasonable period of time
4after the employee is provided with an automatic enrollment
5notice as required under Section 414(w) of the Internal
6Revenue Code of 1986, as amended. An employee who has been
7automatically enrolled in the Plan may elect, within 90 days
8after enrollment, to withdraw from the Plan and receive a
9refund of amounts deferred, plus or minus any applicable
10earnings, investment fees, and administrative fees. An
11employee making such an election shall forfeit all employer
12matching contributions, if any, made prior to the election.
13Any refunded amount shall be included in the employee's gross
14income for the taxable year in which the refund is issued.
15    An employee hired on or after July 1, 2020 and before
16January 1, 2024 shall have 30 days from the start date of
17employment to elect to not participate in the deferred
18compensation plan or to elect to increase or reduce the amount
19of pre-tax gross compensation deferred. An employee shall be
20automatically enrolled in the Plan beginning the first day of
21the pay period following the employee's thirtieth day of
22employment. An employee who has been automatically enrolled in
23the Plan may elect, within 90 days of enrollment, to withdraw
24from the Plan and receive a refund of amounts deferred, plus or
25minus any applicable earnings, investment fees, and
26administrative fees. An employee making such an election shall

 

 

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1forfeit all employer matching contributions, if any, made
2prior to the election. Any refunded amount shall be included
3in the employee's gross income for the taxable year in which
4the refund is issued.
5    As soon as practicable, the Board shall establish annual,
6automatic increases to employee contribution rates for
7employees who are automatically enrolled in the Plan pursuant
8to this Section. The amount of automatic annual increases in
9any 12-month period shall not exceed 1% of compensation.
10Employees may elect to not receive automatic annual increases
11in 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
15changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
16follows:
 
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
20effective date of Public Act 101-610) or as soon thereafter as
21may be practicable, the Governor shall appoint, by and with
22the advice and consent of the Senate, a transition board of
23trustees consisting of 9 members as follows:

 

 

10300SB1646sam002- 22 -LRB103 27811 RPS 60016 a

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

 

 

10300SB1646sam002- 23 -LRB103 27811 RPS 60016 a

1permanent board members are elected and qualified.
2    The transition board of trustees shall select the
3chairperson of the transition board of trustees from among the
4trustees for the duration of the transition board's tenure.
5    (b) The permanent board of trustees shall consist of 9
6members 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

 

 

10300SB1646sam002- 24 -LRB103 27811 RPS 60016 a

1    by the Governor with the advice and consent of the Senate.
2    The permanent board of trustees shall select the
3chairperson of the permanent board of trustees from among the
4trustees for a term of 2 years. The holder of the office of
5chairperson shall alternate between a person elected or
6appointed under item (1) or (4) of this subsection (b) and a
7person elected or appointed under item (2), (3), or (5) of this
8subsection (b).
9    (c) Each trustee shall qualify by taking an oath of office
10before the Secretary of State or the Board's appointed legal
11counsel stating that he or she will diligently and honestly
12administer the affairs of the board and will not violate or
13knowingly permit the violation of any provision of this
14Article.
15    (d) Trustees shall receive no salary for service on the
16board but shall be reimbursed for travel expenses incurred
17while on business for the board according to the standards in
18effect for members of the Commission on Government Forecasting
19and Accountability.
20    A municipality or fire protection district employing a
21firefighter who is an elected or appointed trustee of the
22board must allow reasonable time off with compensation for the
23firefighter to conduct official business related to his or her
24position on the board, including time for travel. The board
25shall notify the municipality or fire protection district in
26advance of the dates, times, and locations of this official

 

 

10300SB1646sam002- 25 -LRB103 27811 RPS 60016 a

1business. The Fund shall timely reimburse the municipality or
2fire protection district for the reasonable costs incurred
3that are due to the firefighter's absence.
4    (e) No trustee shall have any interest in any brokerage
5fee, commission, or other profit or gain arising out of any
6investment directed by the board. This subsection does not
7preclude ownership by any member of any minority interest in
8any common stock or any corporate obligation in which an
9investment is directed by the board.
10    (f) Notwithstanding any provision or interpretation of law
11to the contrary, any member of the transition board may also be
12elected or appointed as a member of the permanent board.
13    Notwithstanding any provision or interpretation of law to
14the contrary, any trustee of a fund established under Article
154 of this Code may also be appointed as a member of the
16transition board or elected or appointed as a member of the
17permanent board.
18    The restriction in Section 3.1 of the Lobbyist
19Registration Act shall not apply to a member of the transition
20board appointed pursuant to items (4) or (5) of subsection (a)
21or to a member of the permanent board appointed pursuant to
22items (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;

 

 

10300SB1646sam002- 26 -LRB103 27811 RPS 60016 a

1terms of office.
2    (a) For the election of the permanent trustees, the
3transition board shall administer the initial elections and
4the permanent board shall administer all subsequent elections.
5Each board shall develop and implement such procedures as it
6determines to be appropriate for the conduct of such
7elections. For the purposes of obtaining information necessary
8to conduct elections under this Section, participating pension
9funds shall cooperate with the Fund.
10    (b) All nominations for election shall be by petition.
11Each 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
22trustee. The board shall prepare and send ballots and ballot
23envelopes to the participants and beneficiaries eligible
24voters to vote in accordance with rules adopted by the board.
25The ballots shall contain the names of all candidates in
26alphabetical order. The ballot envelope shall have on the

 

 

10300SB1646sam002- 27 -LRB103 27811 RPS 60016 a

1outside a form of certificate stating that the person voting
2the ballot is a participant or beneficiary entitled to vote.
3    Eligible voters Participants and beneficiaries, upon
4receipt of the ballot, shall vote the ballot and place it in
5the ballot envelope, seal the envelope, execute the
6certificate thereon, and return the ballot to the Fund.
7    The board shall set a final date for ballot return, and
8ballots received prior to that date in a ballot envelope with a
9properly executed certificate and properly voted shall be
10valid ballots.
11    The board shall set a day for counting the ballots and name
12judges and clerks of election to conduct the count of ballots
13and shall make any rules necessary for the conduct of the
14count.
15    The candidate or candidates receiving the highest number
16of votes for each class of trustee shall be elected. In the
17case of a tie vote, the winner shall be determined in
18accordance with procedures developed by the Department of
19Insurance.
20    In lieu of conducting elections via mail balloting as
21described in this Section, the board may instead adopt rules
22to provide for elections to be carried out solely via Internet
23balloting or phone balloting. Nothing in this Section
24prohibits the Fund from contracting with a third party to
25administer the election in accordance with this Section.
26    (d) At any election, voting shall be as follows:

 

 

10300SB1646sam002- 28 -LRB103 27811 RPS 60016 a

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
13held and the permanent board shall be seated no later than 12
14months after the effective date of this amendatory Act of the
15101st General Assembly. Each subsequent election shall be held
16no later than 30 days prior to the end of the term of the
17incumbent trustees.
18    (f) The elected trustees shall each serve for terms of 4
19years commencing on the first business day of the first month
20after election; except that the terms of office of the
21initially 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;

 

 

10300SB1646sam002- 29 -LRB103 27811 RPS 60016 a

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)
10of subsection (b) of Section 22C-115 shall each serve for a
11term of 4 years commencing on the first business day of the
12first 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
15a mayor, president, chief executive officer, chief financial
16officer, or other officer, executive, or department head of a
17municipality or fire protection district that has a
18participating pension fund shall not be eligible to serve as a
19member of the board and his or her position shall be deemed
20vacant. A member of the board who was elected by the
21participants of participating pension funds who ceases to be a
22participant may serve the remainder of his or her elected
23term.
24    For a vacancy of an elected trustee occurring with an
25unexpired term of 6 months or more, an election shall be
26conducted for the vacancy in accordance with Section 22C-115

 

 

10300SB1646sam002- 30 -LRB103 27811 RPS 60016 a

1and this Section.
2    For a vacancy of an elected trustee occurring with an
3unexpired term of less than 6 months, the vacancy shall be
4filled by appointment by the board for the unexpired term as
5follows: a vacancy of a member elected pursuant to item (1) of
6subsection (b) of Section 22C-115 shall be filled by a mayor,
7president, chief executive officer, chief financial officer,
8or other officer, executive, or department head of a
9municipality or fire protection district that has a
10participating pension fund; a vacancy of a member elected
11pursuant to item (2) of subsection (b) of Section 22C-115
12shall be filled by a participant of a participating pension
13fund; and a vacancy of a member elected under item (3) of
14subsection (b) of Section 22C-115 shall be filled by a
15beneficiary of a participating pension fund. A trustee
16appointed to fill the vacancy of an elected trustee shall
17serve until a successor is elected. Special elections to fill
18the remainder of an unexpired term vacated by an elected
19trustee shall be held concurrently with and in the same manner
20as the next regular election for an elected trustee position.
21    Vacancies among the appointed trustees shall be filled for
22unexpired terms by appointment in like manner as for the
23original appointments.
24(Source: P.A. 101-610, eff. 1-1-20.)
 
25    (40 ILCS 5/22C-119)

 

 

10300SB1646sam002- 31 -LRB103 27811 RPS 60016 a

1    Sec. 22C-119. Adoption of rules. The board shall adopt
2such rules (not inconsistent with this Code) as in its
3judgment are desirable to implement and properly administer
4this Article. Such rules shall specifically provide for the
5following: (1) the implementation of the transition process
6described in Section 22C-120; (2) the process by which the
7participating pension funds may request transfer of funds; (3)
8the process for the transfer in, receipt for, and investment
9of pension assets received by the Fund after the transition
10period from the participating pension funds; (4) the process
11by which contributions from municipalities and fire protection
12districts for the benefit of the participating pension funds
13may, but are not required to, be directly transferred to the
14Fund; and (5) compensation and benefits for its employees. A
15copy of the rules adopted by the Fund shall be posted on the
16Fund's website filed with the Secretary of State and the
17Department of Insurance. The adoption and effectiveness of
18such rules shall not be subject to Article 5 of the Illinois
19Administrative 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
23transferred to or otherwise acquired by the Fund shall be
24placed in the custody of a custodian who shall provide
25adequate safe deposit facilities for those assets and hold all

 

 

10300SB1646sam002- 32 -LRB103 27811 RPS 60016 a

1such securities, funds, and other assets subject to the order
2of the Fund.
3    Each custodian shall furnish a corporate surety bond of
4such amount as the board designates, which bond shall
5indemnify the Fund, the board, and the officers and employees
6of the Fund against any loss that may result from any action or
7failure to act by the custodian or any of the custodian's
8agents, or provide insurance coverages of such type and limits
9as the board designates. All charges incidental to the
10procuring and giving of any bond shall be paid by the board and
11each 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
15changing 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
19employee receiving age and service or prior service annuity
20who has withdrawn from service after the effective date
21re-enters service before age 65, any annuity previously
22granted and any annuity fixed for his wife shall be cancelled.
23The employee shall be credited for annuity purposes with sums

 

 

10300SB1646sam002- 33 -LRB103 27811 RPS 60016 a

1sufficient to provide annuities equal to those cancelled, as
2of their ages on the date of re-entry; provided, the maximum
3age of the wife for this purpose shall be as provided in
4Section 8-155 of this Article.
5    The sums so credited shall provide for annuities to be
6fixed and granted in the future. Contributions by the
7employees and the city for the purposes of this Article shall
8be made, and when the proper time arrives, as provided in this
9Article, new annuities based upon the total credit for annuity
10purposes and the entire term of his service shall be fixed for
11the employee and his wife.
12    If the employee's wife died before he re-entered service,
13no part of any credits for widow's or widow's prior service
14annuity at the time annuity for his wife was fixed shall be
15credited upon re-entry into service, and no such sums shall
16thereafter be used to provide such annuity.
17    (b) Except as provided in subsection (c) or (d), when an
18employee re-enters service after age 65, payments on account
19of any annuity previously granted shall be suspended during
20the time thereafter that he is in service, and when he again
21withdraws, annuity payments shall be resumed. If the employee
22dies in service, his widow shall receive the amount of annuity
23previously fixed for her.
24    (c) For school years beginning on or after July 1, 2021, an
25age and service or prior service annuity shall not be
26cancelled in the case of an employee who is re-employed by the

 

 

10300SB1646sam002- 34 -LRB103 27811 RPS 60016 a

1Board of Education of the city as a Special Education
2Classroom Assistant or Classroom Assistant on a temporary and
3non-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
5school year; or (2) does not accept gross compensation for the
6re-employment in a school year in excess of $30,000. These
7limitations apply only to school years that begin on or after
8July 1, 2021. Re-employment under this subsection does not
9require contributions, result in service credit being earned
10or granted, or constitute active participation in the Fund.
11    (d) For school years beginning on or after July 1, 2023, an
12age and service or prior service annuity shall not be
13cancelled in the case of an employee who is re-employed by the
14Board of Education of the city as a paraprofessional or
15related service provider on a temporary and non-annual basis
16or on an hourly basis so long as the person: (1) does not work
17for compensation on more than 120 days in a school year; or (2)
18does not accept gross compensation for the re-employment in a
19school year in excess of $30,000. These limitations apply only
20to school years that begin on or after July 1, 2023.
21Re-employment under this subsection does not require
22contributions, result in service credit being earned or
23granted, or constitute active participation in the Fund.
24(Source: P.A. 102-342, eff. 8-13-21.)
 
25
Article 7.

 

 

 

10300SB1646sam002- 35 -LRB103 27811 RPS 60016 a

1    Section 7-5. The School Code is amended by changing
2Section 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
6elected trustee of the Teachers' Retirement System of the
7State of Illinois shall make available to the elected trustee
8at least 20 days of paid leave of absence per year for the
9purpose of attending meetings of the System's Board of
10Trustees, committee meetings of such Board, and seminars
11regarding issues for which such Board is responsible. The
12Teachers' Retirement System of the State of Illinois shall
13reimburse affected school districts for the actual cost of
14hiring a substitute teacher during such leaves of absence.
15    (b) Each school board employing an employee who is an
16elected trustee of the Illinois Municipal Retirement Fund
17shall make available to the elected trustee at least 20 days of
18paid leave of absence per year for the purpose of attending
19meetings of the Fund's Board of Trustees, committee meetings
20of the Board of Trustees, and seminars regarding issues for
21which the Board of Trustees is responsible. The Illinois
22Municipal Retirement Fund may reimburse affected school
23districts for the actual cost of hiring a substitute employee
24during such leaves of absence.

 

 

10300SB1646sam002- 36 -LRB103 27811 RPS 60016 a

1    (c) The school board established under Article 34 and
2employers under Article 17 of the Illinois Pension Code shall
3make available to each active teacher who is an elected
4trustee of the Board of Trustees of the Public School
5Teachers' Pension and Retirement Fund of Chicago established
6under Article 17 of the Illinois Pension Code up to 22 days of
7paid leave of absence per year for the purpose of attending
8meetings of the Board of Trustees, committee meetings of the
9Board of Trustees, and seminars regarding issues for which the
10Board of Trustees is responsible. The allocation of the days
11of paid leave shall be at the discretion of the Board of
12Trustees of the Public School Teachers' Pension and Retirement
13Fund 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
17changing 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
21shall submit to the System all required reports and make two
22deposits each month. The deposit for member contributions for
23salary paid during any between the first and the fifteenth of

 

 

10300SB1646sam002- 37 -LRB103 27811 RPS 60016 a

1the month is due by the 10th 25th of the following month.
2Additionally, all The deposit of member contributions for
3salary paid between the sixteenth and last day of the month is
4due by the 10th of the following month. All required
5contributions for salary earned during a school term are due
6by July 10 next following the close of such school term.
7    The governing body of each State institution coming under
8this retirement system, the State Comptroller or other State
9officer certifying payroll vouchers including payments of
10salary or wages to teachers, and any other employer of
11teachers, shall, monthly, forward to the secretary of the
12retirement system the member contributions required under this
13Article.
14    Each employer specified above shall, prior to August 15 of
15each year, forward to the System a detailed statement,
16verified in all cases of school districts by the secretary or
17clerk of the district, of the amounts so contributed since the
18period covered by the last previous annual statement, together
19with required contributions not yet forwarded, such payments
20being payable to the System.
21    The board may prescribe rules governing the form, content,
22investigation, control, and supervision of such statements and
23may establish additional interim employer reporting
24requirements as the Board deems necessary. If no teacher in a
25school district comes under the provisions of this Article,
26the governing body of the district shall so state under the

 

 

10300SB1646sam002- 38 -LRB103 27811 RPS 60016 a

1oath of its secretary to this system, and shall at the same
2time forward a copy of the statement to the regional
3superintendent of schools.
4    The board may also require reporting requirements that are
5different than those prescribed in this Section and may
6require different reporting requirements for different
7benefits or purposes established under this Article,
8including, but not limited to, any optional benefit plan an
9employee chooses to participate in.
10    (b) If the governing body of an employer that is not a
11State agency fails to forward such required contributions
12within the time permitted in subsection (a) above, the System
13shall notify the employer of an additional amount due, equal
14to $50 per day for each day that elapses from the due date
15until the day such report and employee contributions are
16received by the System.
17    (c) If the system, on August 15, is not in receipt of the
18detailed statements required under this Section of any school
19district or other employing unit, such school district or
20other employing unit shall pay to the system an amount equal to
21$250 for each day that elapses from August 15, until the day
22such statement is filed with the system.
23(Source: P.A. 101-502, eff. 8-23-19.)
 
24
Article 9.

 

 

 

10300SB1646sam002- 39 -LRB103 27811 RPS 60016 a

1    Section 9-5. The Illinois Pension Code is amended by
2changing 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
5which contributions are being made to the Fund on behalf of an
6employee except for temporary election work as described in
7subsection (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
11who has withdrawn from service after the effective date
12re-enters service before age 65, any annuity previously
13granted and any annuity fixed for his wife shall be cancelled.
14The employee shall be credited for annuity purposes with the
15actuarial value of annuities equal to those cancelled as of
16their ages on the date of re-entry; provided, the maximum age
17of the wife for this purpose shall be as provided in Section
189-151 of this Article. The sums so credited shall provide for
19annuities to be fixed and granted in the future. Contributions
20by the employee and the county for the purposes of this Article
21shall be made and when the proper time arrives, as provided in
22this Article, new annuities based upon the total sums
23accumulated to his credit for annuity purposes and the entire
24term of his service shall be fixed for the employee and his

 

 

10300SB1646sam002- 40 -LRB103 27811 RPS 60016 a

1wife.
2    If the employee's wife has died before he re-entered
3service, no part of any credits for widow's or widow's prior
4service annuity at the time annuity for his wife was fixed
5shall be credited upon re-entry into service, and no such sums
6shall thereafter be used to provide such annuity.
7    (b) When an employee re-enters service after age 65,
8payments on account of any annuity previously granted shall be
9suspended during the time thereafter that he is in service,
10and when he again withdraws annuity payments shall be resumed.
11If the employee dies in service, his widow shall receive the
12annuity previously fixed for her.
13    (c) If an employee annuitant re-enters service as an
14election worker and provides services for a scheduled federal,
15State, or local election for a period of 60 days or less during
16a calendar year, that employee annuitant's annuity shall not
17be suspended and such employee annuitant shall not be
18considered to be in service within the meaning of Section
199-108.3 and is not entitled to benefits for employees in
20service. If an employee annuitant re-enters service for a
21period longer than 60 days during a calendar year, the annuity
22shall be suspended or cancelled retroactive to the initial
23date of re-entry.
24(Source: P.A. 81-1536.)
 
25
Article 10.

 

 

 

10300SB1646sam002- 41 -LRB103 27811 RPS 60016 a

1    Section 10-5. The Illinois Pension Code is amended by
2changing 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
5other service. Regularly certified and appointed teachers who
6desire to have the following described services credited for
7pension purposes shall submit to the Board evidence thereof
8and 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

 

 

10300SB1646sam002- 42 -LRB103 27811 RPS 60016 a

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

 

 

10300SB1646sam002- 43 -LRB103 27811 RPS 60016 a

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)

 

 

10300SB1646sam002- 44 -LRB103 27811 RPS 60016 a

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
15Section, interest shall be charged beginning one year after
16the effective date of appointment or reappointment.
17    Effective September 1, 1974, the interest rate to be
18charged by the Fund on contributions provided in
19sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
20annually.
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
24Section 8.47 as follows:
 

 

 

10300SB1646sam002- 45 -LRB103 27811 RPS 60016 a

1    (30 ILCS 805/8.47 new)
2    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
38 of this Act, no reimbursement by the State is required for
4the implementation of any mandate created by this amendatory
5Act of the 103rd General Assembly.
 
6    Section 99-99. Effective date. This Act takes effect upon
7becoming law.".