Full Text of SB2156 97th General Assembly
SB2156 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2156 Introduced 2/10/2011, by Sen. Bill Brady SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-162 | | 40 ILCS 5/14-152.1 | | 40 ILCS 5/15-198 | | 40 ILCS 5/16-203 | | 40 ILCS 5/18-169 | |
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Amends the General Assembly, State Employee, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning on the effective date of the amendatory Act, every new benefit increase is contingent upon each affected pension or retirement system (i) having been at least 90% funded according to its most recent annual actuarial valuation and (ii) having received any required State contributions that have come due since the most recent annual actuarial valuation. Specifies that a new benefit increase that does not satisfy this additional requirement is null and void, unless the enactment of that new benefit increase is required to maintain qualified plan status.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169 as | 6 | | follows: | 7 | | (40 ILCS 5/2-162)
| 8 | | Sec. 2-162. Application and expiration of new benefit | 9 | | increases. | 10 | | (a) As used in this Section, "new benefit increase" means | 11 | | an increase in the amount of any benefit provided under this | 12 | | Article, or an expansion of the conditions of eligibility for | 13 | | any benefit under this Article, that results from an amendment | 14 | | to this Code that takes effect after the effective date of this | 15 | | amendatory Act of the 94th General Assembly. | 16 | | (b) Notwithstanding any other provision of this Code or any | 17 | | subsequent amendment to this Code, every new benefit increase | 18 | | is subject to this Section and shall be deemed to be granted | 19 | | only in conformance with and contingent upon compliance with | 20 | | the provisions of this Section.
| 21 | | (c) The Public Act enacting a new benefit increase must | 22 | | identify and provide for payment to the System of additional | 23 | | funding at least sufficient to fund the resulting annual |
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| 1 | | increase in cost to the System as it accrues. | 2 | | Every new benefit increase is contingent upon the General | 3 | | Assembly providing the additional funding required under this | 4 | | subsection. The Commission on Government Forecasting and | 5 | | Accountability shall analyze whether adequate additional | 6 | | funding has been provided for the new benefit increase and | 7 | | shall report its analysis to the Public Pension Division of the | 8 | | Department of Financial and Professional Regulation. A new | 9 | | benefit increase created by a Public Act that does not include | 10 | | the additional funding required under this subsection is null | 11 | | and void. If the Public Pension Division determines that the | 12 | | additional funding provided for a new benefit increase under | 13 | | this subsection is or has become inadequate, it may so certify | 14 | | to the Governor and the State Comptroller and, in the absence | 15 | | of corrective action by the General Assembly, the new benefit | 16 | | increase shall expire at the end of the fiscal year in which | 17 | | the certification is made.
| 18 | | (c-5) Notwithstanding any other provision of this Code or | 19 | | any subsequent amendment of this Code, beginning on the | 20 | | effective date of this amendatory Act of the 97th General | 21 | | Assembly, every new benefit increase is also contingent upon | 22 | | each pension or retirement system that is created under Article | 23 | | 2, 14, 15, 16, or 18 (i) having been at least 90% funded | 24 | | according to its most recent annual actuarial valuation and | 25 | | (ii) having received any required State contributions that have | 26 | | come due since the most recent annual actuarial valuation. A |
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| 1 | | new benefit increase that does not satisfy this additional | 2 | | requirement is null and void, unless the enactment of that new | 3 | | benefit increase is required to maintain qualified plan status. | 4 | | (d) Every new benefit increase shall expire 5 years after | 5 | | its effective date or on such earlier date as may be specified | 6 | | in the language enacting the new benefit increase or provided | 7 | | under subsection (c). This does not prevent the General | 8 | | Assembly from extending or re-creating a new benefit increase | 9 | | by law. | 10 | | (e) Except as otherwise provided in the language creating | 11 | | the new benefit increase, a new benefit increase that expires | 12 | | under this Section continues to apply to persons who applied | 13 | | and qualified for the affected benefit while the new benefit | 14 | | increase was in effect and to the affected beneficiaries and | 15 | | alternate payees of such persons, but does not apply to any | 16 | | other person, including without limitation a person who | 17 | | continues in service after the expiration date and did not | 18 | | apply and qualify for the affected benefit while the new | 19 | | benefit increase was in effect.
| 20 | | (Source: P.A. 94-4, eff. 6-1-05.) | 21 | | (40 ILCS 5/14-152.1)
| 22 | | Sec. 14-152.1. Application and expiration of new benefit | 23 | | increases. | 24 | | (a) As used in this Section, "new benefit increase" means | 25 | | an increase in the amount of any benefit provided under this |
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| 1 | | Article, or an expansion of the conditions of eligibility for | 2 | | any benefit under this Article, that results from an amendment | 3 | | to this Code that takes effect after June 1, 2005 (the | 4 | | effective date of Public Act 94-4). "New benefit increase", | 5 | | however, does not include any benefit increase resulting from | 6 | | the changes made to this Article by this amendatory Act of the | 7 | | 96th General Assembly.
| 8 | | (b) Notwithstanding any other provision of this Code or any | 9 | | subsequent amendment to this Code, every new benefit increase | 10 | | is subject to this Section and shall be deemed to be granted | 11 | | only in conformance with and contingent upon compliance with | 12 | | the provisions of this Section.
| 13 | | (c) The Public Act enacting a new benefit increase must | 14 | | identify and provide for payment to the System of additional | 15 | | funding at least sufficient to fund the resulting annual | 16 | | increase in cost to the System as it accrues. | 17 | | Every new benefit increase is contingent upon the General | 18 | | Assembly providing the additional funding required under this | 19 | | subsection. The Commission on Government Forecasting and | 20 | | Accountability shall analyze whether adequate additional | 21 | | funding has been provided for the new benefit increase and | 22 | | shall report its analysis to the Public Pension Division of the | 23 | | Department of Financial and Professional Regulation. A new | 24 | | benefit increase created by a Public Act that does not include | 25 | | the additional funding required under this subsection is null | 26 | | and void. If the Public Pension Division determines that the |
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| 1 | | additional funding provided for a new benefit increase under | 2 | | this subsection is or has become inadequate, it may so certify | 3 | | to the Governor and the State Comptroller and, in the absence | 4 | | of corrective action by the General Assembly, the new benefit | 5 | | increase shall expire at the end of the fiscal year in which | 6 | | the certification is made.
| 7 | | (c-5) Notwithstanding any other provision of this Code or | 8 | | any subsequent amendment of this Code, beginning on the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly, every new benefit increase is also contingent upon | 11 | | each pension or retirement system that is created under Article | 12 | | 2, 14, 15, 16, or 18 (i) having been at least 90% funded | 13 | | according to its most recent annual actuarial valuation and | 14 | | (ii) having received any required State contributions that have | 15 | | come due since the most recent annual actuarial valuation. A | 16 | | new benefit increase that does not satisfy this additional | 17 | | requirement is null and void, unless the enactment of that new | 18 | | benefit increase is required to maintain qualified plan status. | 19 | | (d) Every new benefit increase shall expire 5 years after | 20 | | its effective date or on such earlier date as may be specified | 21 | | in the language enacting the new benefit increase or provided | 22 | | under subsection (c). This does not prevent the General | 23 | | Assembly from extending or re-creating a new benefit increase | 24 | | by law. | 25 | | (e) Except as otherwise provided in the language creating | 26 | | the new benefit increase, a new benefit increase that expires |
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| 1 | | under this Section continues to apply to persons who applied | 2 | | and qualified for the affected benefit while the new benefit | 3 | | increase was in effect and to the affected beneficiaries and | 4 | | alternate payees of such persons, but does not apply to any | 5 | | other person, including without limitation a person who | 6 | | continues in service after the expiration date and did not | 7 | | apply and qualify for the affected benefit while the new | 8 | | benefit increase was in effect.
| 9 | | (Source: P.A. 96-37, eff. 7-13-09.) | 10 | | (40 ILCS 5/15-198)
| 11 | | Sec. 15-198. Application and expiration of new benefit | 12 | | increases. | 13 | | (a) As used in this Section, "new benefit increase" means | 14 | | an increase in the amount of any benefit provided under this | 15 | | Article, or an expansion of the conditions of eligibility for | 16 | | any benefit under this Article, that results from an amendment | 17 | | to this Code that takes effect after the effective date of this | 18 | | amendatory Act of the 94th General Assembly. | 19 | | (b) Notwithstanding any other provision of this Code or any | 20 | | subsequent amendment to this Code, every new benefit increase | 21 | | is subject to this Section and shall be deemed to be granted | 22 | | only in conformance with and contingent upon compliance with | 23 | | the provisions of this Section.
| 24 | | (c) The Public Act enacting a new benefit increase must | 25 | | identify and provide for payment to the System of additional |
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| 1 | | funding at least sufficient to fund the resulting annual | 2 | | increase in cost to the System as it accrues. | 3 | | Every new benefit increase is contingent upon the General | 4 | | Assembly providing the additional funding required under this | 5 | | subsection. The Commission on Government Forecasting and | 6 | | Accountability shall analyze whether adequate additional | 7 | | funding has been provided for the new benefit increase and | 8 | | shall report its analysis to the Public Pension Division of the | 9 | | Department of Financial and Professional Regulation. A new | 10 | | benefit increase created by a Public Act that does not include | 11 | | the additional funding required under this subsection is null | 12 | | and void. If the Public Pension Division determines that the | 13 | | additional funding provided for a new benefit increase under | 14 | | this subsection is or has become inadequate, it may so certify | 15 | | to the Governor and the State Comptroller and, in the absence | 16 | | of corrective action by the General Assembly, the new benefit | 17 | | increase shall expire at the end of the fiscal year in which | 18 | | the certification is made.
| 19 | | (c-5) Notwithstanding any other provision of this Code or | 20 | | any subsequent amendment of this Code, beginning on the | 21 | | effective date of this amendatory Act of the 97th General | 22 | | Assembly, every new benefit increase is also contingent upon | 23 | | each pension or retirement system that is created under Article | 24 | | 2, 14, 15, 16, or 18 (i) having been at least 90% funded | 25 | | according to its most recent annual actuarial valuation and | 26 | | (ii) having received any required State contributions that have |
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| 1 | | come due since the most recent annual actuarial valuation. A | 2 | | new benefit increase that does not satisfy this additional | 3 | | requirement is null and void, unless the enactment of that new | 4 | | benefit increase is required to maintain qualified plan status. | 5 | | (d) Every new benefit increase shall expire 5 years after | 6 | | its effective date or on such earlier date as may be specified | 7 | | in the language enacting the new benefit increase or provided | 8 | | under subsection (c). This does not prevent the General | 9 | | Assembly from extending or re-creating a new benefit increase | 10 | | by law. | 11 | | (e) Except as otherwise provided in the language creating | 12 | | the new benefit increase, a new benefit increase that expires | 13 | | under this Section continues to apply to persons who applied | 14 | | and qualified for the affected benefit while the new benefit | 15 | | increase was in effect and to the affected beneficiaries and | 16 | | alternate payees of such persons, but does not apply to any | 17 | | other person, including without limitation a person who | 18 | | continues in service after the expiration date and did not | 19 | | apply and qualify for the affected benefit while the new | 20 | | benefit increase was in effect.
| 21 | | (Source: P.A. 94-4, eff. 6-1-05.) | 22 | | (40 ILCS 5/16-203)
| 23 | | Sec. 16-203. Application and expiration of new benefit | 24 | | increases. | 25 | | (a) As used in this Section, "new benefit increase" means |
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| 1 | | an increase in the amount of any benefit provided under this | 2 | | Article, or an expansion of the conditions of eligibility for | 3 | | any benefit under this Article, that results from an amendment | 4 | | to this Code that takes effect after June 1, 2005 (the | 5 | | effective date of Public Act 94-4). "New benefit increase", | 6 | | however, does not include any benefit increase resulting from | 7 | | the changes made to this Article by this amendatory Act of the | 8 | | 95th General Assembly. | 9 | | (b) Notwithstanding any other provision of this Code or any | 10 | | subsequent amendment to this Code, every new benefit increase | 11 | | is subject to this Section and shall be deemed to be granted | 12 | | only in conformance with and contingent upon compliance with | 13 | | the provisions of this Section.
| 14 | | (c) The Public Act enacting a new benefit increase must | 15 | | identify and provide for payment to the System of additional | 16 | | funding at least sufficient to fund the resulting annual | 17 | | increase in cost to the System as it accrues. | 18 | | Every new benefit increase is contingent upon the General | 19 | | Assembly providing the additional funding required under this | 20 | | subsection. The Commission on Government Forecasting and | 21 | | Accountability shall analyze whether adequate additional | 22 | | funding has been provided for the new benefit increase and | 23 | | shall report its analysis to the Public Pension Division of the | 24 | | Department of Financial and Professional Regulation. A new | 25 | | benefit increase created by a Public Act that does not include | 26 | | the additional funding required under this subsection is null |
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| 1 | | and void. If the Public Pension Division determines that the | 2 | | additional funding provided for a new benefit increase under | 3 | | this subsection is or has become inadequate, it may so certify | 4 | | to the Governor and the State Comptroller and, in the absence | 5 | | of corrective action by the General Assembly, the new benefit | 6 | | increase shall expire at the end of the fiscal year in which | 7 | | the certification is made.
| 8 | | (c-5) Notwithstanding any other provision of this Code or | 9 | | any subsequent amendment of this Code, beginning on the | 10 | | effective date of this amendatory Act of the 97th General | 11 | | Assembly, every new benefit increase is also contingent upon | 12 | | each pension or retirement system that is created under Article | 13 | | 2, 14, 15, 16, or 18 (i) having been at least 90% funded | 14 | | according to its most recent annual actuarial valuation and | 15 | | (ii) having received any required State contributions that have | 16 | | come due since the most recent annual actuarial valuation. A | 17 | | new benefit increase that does not satisfy this additional | 18 | | requirement is null and void, unless the enactment of that new | 19 | | benefit increase is required to maintain qualified plan status. | 20 | | (d) Every new benefit increase shall expire 5 years after | 21 | | its effective date or on such earlier date as may be specified | 22 | | in the language enacting the new benefit increase or provided | 23 | | under subsection (c). This does not prevent the General | 24 | | Assembly from extending or re-creating a new benefit increase | 25 | | by law. | 26 | | (e) Except as otherwise provided in the language creating |
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| 1 | | the new benefit increase, a new benefit increase that expires | 2 | | under this Section continues to apply to persons who applied | 3 | | and qualified for the affected benefit while the new benefit | 4 | | increase was in effect and to the affected beneficiaries and | 5 | | alternate payees of such persons, but does not apply to any | 6 | | other person, including without limitation a person who | 7 | | continues in service after the expiration date and did not | 8 | | apply and qualify for the affected benefit while the new | 9 | | benefit increase was in effect.
| 10 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) | 11 | | (40 ILCS 5/18-169)
| 12 | | Sec. 18-169. Application and expiration of new benefit | 13 | | increases. | 14 | | (a) As used in this Section, "new benefit increase" means | 15 | | an increase in the amount of any benefit provided under this | 16 | | Article, or an expansion of the conditions of eligibility for | 17 | | any benefit under this Article, that results from an amendment | 18 | | to this Code that takes effect after the effective date of this | 19 | | amendatory Act of the 94th General Assembly. | 20 | | (b) Notwithstanding any other provision of this Code or any | 21 | | subsequent amendment to this Code, every new benefit increase | 22 | | is subject to this Section and shall be deemed to be granted | 23 | | only in conformance with and contingent upon compliance with | 24 | | the provisions of this Section.
| 25 | | (c) The Public Act enacting a new benefit increase must |
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| 1 | | identify and provide for payment to the System of additional | 2 | | funding at least sufficient to fund the resulting annual | 3 | | increase in cost to the System as it accrues. | 4 | | Every new benefit increase is contingent upon the General | 5 | | Assembly providing the additional funding required under this | 6 | | subsection. The Commission on Government Forecasting and | 7 | | Accountability shall analyze whether adequate additional | 8 | | funding has been provided for the new benefit increase and | 9 | | shall report its analysis to the Public Pension Division of the | 10 | | Department of Financial and Professional Regulation. A new | 11 | | benefit increase created by a Public Act that does not include | 12 | | the additional funding required under this subsection is null | 13 | | and void. If the Public Pension Division determines that the | 14 | | additional funding provided for a new benefit increase under | 15 | | this subsection is or has become inadequate, it may so certify | 16 | | to the Governor and the State Comptroller and, in the absence | 17 | | of corrective action by the General Assembly, the new benefit | 18 | | increase shall expire at the end of the fiscal year in which | 19 | | the certification is made.
| 20 | | (c-5) Notwithstanding any other provision of this Code or | 21 | | any subsequent amendment of this Code, beginning on the | 22 | | effective date of this amendatory Act of the 97th General | 23 | | Assembly, every new benefit increase is also contingent upon | 24 | | each pension or retirement system that is created under Article | 25 | | 2, 14, 15, 16, or 18 (i) having been at least 90% funded | 26 | | according to its most recent annual actuarial valuation and |
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| 1 | | (ii) having received any required State contributions that have | 2 | | come due since the most recent annual actuarial valuation. A | 3 | | new benefit increase that does not satisfy this additional | 4 | | requirement is null and void, unless the enactment of that new | 5 | | benefit increase is required to maintain qualified plan status. | 6 | | (d) Every new benefit increase shall expire 5 years after | 7 | | its effective date or on such earlier date as may be specified | 8 | | in the language enacting the new benefit increase or provided | 9 | | under subsection (c). This does not prevent the General | 10 | | Assembly from extending or re-creating a new benefit increase | 11 | | by law. | 12 | | (e) Except as otherwise provided in the language creating | 13 | | the new benefit increase, a new benefit increase that expires | 14 | | under this Section continues to apply to persons who applied | 15 | | and qualified for the affected benefit while the new benefit | 16 | | increase was in effect and to the affected beneficiaries and | 17 | | alternate payees of such persons, but does not apply to any | 18 | | other person, including without limitation a person who | 19 | | continues in service after the expiration date and did not | 20 | | apply and qualify for the affected benefit while the new | 21 | | benefit increase was in effect.
| 22 | | (Source: P.A. 94-4, eff. 6-1-05.)
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