Full Text of HB2497 100th General Assembly
HB2497 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2497 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/18-125 | from Ch. 108 1/2, par. 18-125 | 40 ILCS 5/18-126.1 | from Ch. 108 1/2, par. 18-126.1 | 40 ILCS 5/18-128.01 | from Ch. 108 1/2, par. 18-128.01 | 40 ILCS 5/18-133 | from Ch. 108 1/2, par. 18-133 |
|
Amends the Judges Article of the Illinois Pension Code. In provisions concerning the retirement annuity amount, specifies that the maximum annual salary of $106,800 is for all purposes under the Article; makes a related change in provisions concerning temporary total disability benefits. Provides that if 2 or more persons are eligible to receive survivor's annuities based on the same deceased participant that first serves as a judge after January 1, 2011, the calculation of the survivor's annuities shall be based on the total calculation of the survivor's annuity and divided pro rata. Makes changes in provisions concerning employee contributions to clarify to whom certain provisions apply. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
|
| | | HB2497 | | LRB100 08024 RPS 18107 b |
|
| 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 18-125, 18-126.1, 18-128.01, and 18-133 as follows:
| 6 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 7 | | Sec. 18-125. Retirement annuity amount.
| 8 | | (a) The annual retirement annuity for a participant who | 9 | | terminated
service as a judge prior to July 1, 1971 shall be | 10 | | based on the law in
effect at the time of termination of | 11 | | service.
| 12 | | (b) Except as provided in subsection (b-5), effective July | 13 | | 1, 1971, the retirement annuity for any participant
in service | 14 | | on or after such date shall be 3 1/2% of final average salary,
| 15 | | as defined in this Section, for each of the first 10 years of | 16 | | service, and
5% of such final average salary for each year of | 17 | | service in on excess of 10.
| 18 | | For purposes of this Section, final average salary for a | 19 | | participant who first serves as a judge before August 10, 2009 | 20 | | (the effective date of Public Act 96-207) shall be:
| 21 | | (1) the average salary for the last 4 years of credited | 22 | | service as a
judge for a participant who terminates service | 23 | | before July 1, 1975.
|
| | | HB2497 | - 2 - | LRB100 08024 RPS 18107 b |
|
| 1 | | (2) for a participant who terminates service after June | 2 | | 30, 1975
and before July 1, 1982, the salary on the last | 3 | | day of employment as a judge.
| 4 | | (3) for any participant who terminates service after | 5 | | June 30, 1982 and
before January 1, 1990, the average | 6 | | salary for the final year of service as
a judge.
| 7 | | (4) for a participant who terminates service on or | 8 | | after January 1,
1990 but before July 14, 1995 ( the | 9 | | effective date of Public Act 89-136) this amendatory Act of | 10 | | 1995 , the
salary on the last day of employment as a judge.
| 11 | | (5) for a participant who terminates service on or | 12 | | after July 14, 1995 ( the effective
date of Public Act | 13 | | 89-136) this amendatory Act of 1995 , the salary on the last | 14 | | day of employment
as a judge, or the highest salary | 15 | | received by the participant for employment as
a judge in a | 16 | | position held by the participant for at least 4 consecutive | 17 | | years,
whichever is greater.
| 18 | | However, in the case of a participant who elects to | 19 | | discontinue contributions
as provided in subdivision (a)(2) of | 20 | | Section 18-133, the time of such
election shall be considered | 21 | | the last day of employment in the determination
of final | 22 | | average salary under this subsection.
| 23 | | For a participant who first serves as a judge on or after | 24 | | August 10, 2009 (the effective date of Public Act 96-207) and | 25 | | before January 1, 2011 (the effective date of Public Act | 26 | | 96-889), final average salary shall be the average monthly |
| | | HB2497 | - 3 - | LRB100 08024 RPS 18107 b |
|
| 1 | | salary obtained by dividing the total salary of the participant | 2 | | during the period of: (1) the 48 consecutive months of service | 3 | | within the last 120 months of service in which the total | 4 | | compensation was the highest, or (2) the total period of | 5 | | service, if less than 48 months, by the number of months of | 6 | | service in that period. | 7 | | The maximum retirement annuity for any participant shall be | 8 | | 85% of final
average salary.
| 9 | | (b-5) Notwithstanding any other provision of this Article, | 10 | | for a participant who first serves as a judge on or after | 11 | | January 1, 2011 (the effective date of Public Act 96-889), the | 12 | | annual
retirement annuity is 3% of the
participant's final | 13 | | average salary for each year of service. The maximum retirement
| 14 | | annuity payable shall be 60% of the participant's final average | 15 | | salary. | 16 | | For a participant who first serves as a judge on or after | 17 | | January 1, 2011 (the effective date of Public Act 96-889), | 18 | | final average salary shall be the average monthly salary | 19 | | obtained by dividing the total salary of the judge during the | 20 | | 96 consecutive months of service within the last 120 months of | 21 | | service in which the total salary was the highest by the number | 22 | | of months of service in that period; however, beginning January | 23 | | 1, 2011, the annual salary for all purposes under this Article | 24 | | may not exceed $106,800, except that that amount shall annually | 25 | | thereafter be increased by the lesser of (i) 3% of that amount, | 26 | | including all previous adjustments, or (ii) the annual |
| | | HB2497 | - 4 - | LRB100 08024 RPS 18107 b |
|
| 1 | | unadjusted percentage increase (but not less than zero) in the | 2 | | consumer price index-u
for the 12 months ending with the | 3 | | September preceding each November 1. "Consumer price index-u" | 4 | | means
the index published by the Bureau of Labor Statistics of | 5 | | the United States
Department of Labor that measures the average | 6 | | change in prices of goods and
services purchased by all urban | 7 | | consumers, United States city average, all
items, 1982-84 = | 8 | | 100. The new amount resulting from each annual adjustment
shall | 9 | | be determined by the Public Pension Division of the Department | 10 | | of Insurance and made available to the Board by November 1st of | 11 | | each year. | 12 | | (c) The retirement annuity for a participant who retires | 13 | | prior to age 60
with less than 28 years of service in the | 14 | | System shall be reduced 1/2 of 1%
for each month that the | 15 | | participant's age is under 60 years at the time the
annuity | 16 | | commences. However, for a participant who retires on or after | 17 | | December 10, 1999 ( the
effective date of Public Act 91-653) | 18 | | this amendatory Act of the 91st General Assembly , the
| 19 | | percentage reduction in retirement annuity imposed under this | 20 | | subsection shall
be reduced by 5/12 of 1% for every month of | 21 | | service in this System in excess of
20 years, and therefore a | 22 | | participant with at least 26 years of service in this
System | 23 | | may retire at age 55 without any reduction in annuity.
| 24 | | The reduction in retirement annuity imposed by this | 25 | | subsection shall not
apply in the case of retirement on account | 26 | | of disability.
|
| | | HB2497 | - 5 - | LRB100 08024 RPS 18107 b |
|
| 1 | | (d) Notwithstanding any other provision of this Article, | 2 | | for a participant who first serves as a judge on or after | 3 | | January 1, 2011 (the effective date of Public Act 96-889) and | 4 | | who is retiring after attaining age 62, the retirement annuity | 5 | | shall be reduced by 1/2
of 1% for each month that the | 6 | | participant's age is under age 67 at the time the annuity | 7 | | commences. | 8 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 9 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11; revised 9-9-16.)
| 10 | | (40 ILCS 5/18-126.1) (from Ch. 108 1/2, par. 18-126.1)
| 11 | | Sec. 18-126.1. Temporary total disability. A participant
| 12 | | who has served for at least 2 years as a judge and has at least | 13 | | 2 years
of service credit shall be entitled to a temporary | 14 | | total disability
benefit provided:
| 15 | | (1) While in employment as a judge, the participant is | 16 | | found by
medical examination to be mentally or physically | 17 | | incompetent to perform his
or her duties;
| 18 | | (2) The participant does not receive or have a right to | 19 | | receive
any salary as a judge;
| 20 | | (3) The board has received written
certifications by at | 21 | | least 2 licensed and practicing physicians designated
by it | 22 | | certifying that the participant is totally disabled
and unable | 23 | | to perform the duties of his or her office as a consequence
| 24 | | thereof; and
| 25 | | (4) The participant is not engaged in any form of gainful
|
| | | HB2497 | - 6 - | LRB100 08024 RPS 18107 b |
|
| 1 | | occupation during his or her disability.
| 2 | | The benefit shall begin as of the day following
the | 3 | | removal of the judge from the payroll on account of the | 4 | | disability
and be payable during the period of disability but | 5 | | not beyond the term of
office for which the participant was | 6 | | last elected
or appointed.
| 7 | | The benefit shall be 50% of the participant's rate of | 8 | | salary
in effect at the date of removal from the payroll and | 9 | | shall be payable
monthly. The rate of salary to determine the | 10 | | benefit under this Section payable to a participant who first | 11 | | serves as a judge on or after January 1, 201l shall be subject | 12 | | to the annual salary limitation prescribed by subsection (b-5) | 13 | | of Section 18-125.
| 14 | | A participant shall receive service credit for retirement | 15 | | and survivor's
annuity purposes for the period that temporary | 16 | | disability benefits are paid.
| 17 | | The board shall prescribe rules and regulations necessary
| 18 | | for the administration of this benefit.
| 19 | | (Source: P.A. 83-1440.)
| 20 | | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| 21 | | Sec. 18-128.01. Amount of survivor's annuity.
| 22 | | (a) Upon the death of
an annuitant, his or her surviving | 23 | | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | 24 | | the annuity the annuitant was receiving immediately
prior to | 25 | | his or her death, inclusive of annual increases in the |
| | | HB2497 | - 7 - | LRB100 08024 RPS 18107 b |
|
| 1 | | retirement
annuity to the date of death.
| 2 | | (b) Upon the death of an active participant, his or her | 3 | | surviving spouse
shall receive a survivor's annuity of 66 2/3% | 4 | | of the annuity earned by the
participant as of the date of his | 5 | | or her death, determined without regard
to whether the | 6 | | participant had attained age 60 as of that time, or 7 1/2%
of | 7 | | the last salary of the decedent, whichever is greater.
| 8 | | (c) Upon the death of a participant who had terminated | 9 | | service with at
least 10 years of service, his or her surviving | 10 | | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | 11 | | the annuity earned by the deceased
participant at the date of | 12 | | death.
| 13 | | (d) Upon the death of an annuitant, active participant, or | 14 | | participant
who had terminated service with at least 10 years | 15 | | of service, each surviving
child under the age of 18 or | 16 | | disabled as defined in Section 18-128 shall
be entitled to a | 17 | | child's annuity in an amount equal to 5% of the decedent's
| 18 | | final salary, not to exceed in total for all such children the | 19 | | greater of
20% of the decedent's last salary or 66 2/3% of the | 20 | | annuity received or
earned by the decedent as provided under | 21 | | subsections (a) and (b) of this
Section. This child's annuity | 22 | | shall be paid whether or not a survivor's
annuity was elected | 23 | | under Section 18-123.
| 24 | | (e) The changes made in the survivor's annuity provisions | 25 | | by Public Act
82-306 shall apply to the survivors of a deceased | 26 | | participant or annuitant
whose death occurs on or after August |
| | | HB2497 | - 8 - | LRB100 08024 RPS 18107 b |
|
| 1 | | 21, 1981.
| 2 | | (f) Beginning January 1, 1990, every survivor's annuity | 3 | | shall be
increased
(1) on each January 1 occurring on or after | 4 | | the commencement of the annuity if
the deceased member died | 5 | | while receiving a retirement annuity, or (2) in other cases,
on | 6 | | each January 1 occurring on or after the first anniversary of
| 7 | | the commencement of the annuity, by an amount equal to 3% of | 8 | | the current
amount of the annuity, including any previous | 9 | | increases under this Article.
Such increases shall apply | 10 | | without regard to whether the deceased member
was in service on | 11 | | or after the effective date of this amendatory Act of
1991, but | 12 | | shall not accrue for any period prior to January 1, 1990.
| 13 | | (g) Notwithstanding any other provision of this Article, | 14 | | the initial survivor's annuity for a survivor of a participant | 15 | | who first serves as a judge after January 1, 2011 (the | 16 | | effective date of Public Act 96-889) shall be in the amount of | 17 | | 66 2/3% of the annuity received or earned by the decedent, and | 18 | | shall be increased (1) on each January 1 occurring on or after | 19 | | the commencement of the annuity if
the deceased participant | 20 | | died while receiving a retirement annuity, or (2) in other | 21 | | cases,
on each January 1 occurring on or after the first | 22 | | anniversary of
the commencement of the annuity, but in no event | 23 | | prior to age 67, by an amount equal to 3% or the annual | 24 | | unadjusted percentage increase in the consumer price index-u as | 25 | | determined by the Public Pension Division of the Department of | 26 | | Insurance under subsection (b-5) of Section 18-125, whichever |
| | | HB2497 | - 9 - | LRB100 08024 RPS 18107 b |
|
| 1 | | is less, of the survivor's annuity then being paid. If 2 or | 2 | | more persons are eligible to receive survivor's annuities as | 3 | | provided under this Section based on the same deceased | 4 | | participant that first serves as a judge after January 1, 2011, | 5 | | the calculation of the survivor's annuities shall be based on | 6 | | the total calculation of the survivor's annuity and divided pro | 7 | | rata. | 8 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 9 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 10 | | Sec. 18-133. Financing; employee contributions.
| 11 | | (a) Effective July 1, 1967, each participant is required to | 12 | | contribute
7 1/2% of each payment of salary toward the | 13 | | retirement annuity. Such
contributions shall continue during | 14 | | the entire time the participant is in
service, with the | 15 | | following exceptions:
| 16 | | (1) Contributions for the retirement annuity are not | 17 | | required on salary
received after 18 years of service by | 18 | | persons who were participants before
January 2, 1954.
| 19 | | (2) A participant who continues to serve as a judge | 20 | | after becoming
eligible to receive the maximum rate of | 21 | | annuity may elect, through a written
direction filed with | 22 | | the Board, to discontinue contributing to the System.
Any | 23 | | such option elected by a judge shall be irrevocable unless | 24 | | prior to
January 1, 2000, and while continuing to
serve as | 25 | | judge, the judge (A) files with the Board a letter |
| | | HB2497 | - 10 - | LRB100 08024 RPS 18107 b |
|
| 1 | | cancelling the
direction to discontinue contributing to | 2 | | the System and requesting that such
contributing resume, | 3 | | and (B) pays into the System an amount equal to the total
| 4 | | of the discontinued contributions plus interest thereon at | 5 | | 5% per annum.
Service credits earned in any other | 6 | | "participating system" as defined in
Article 20 of this | 7 | | Code shall be considered for purposes of determining a
| 8 | | judge's eligibility to discontinue contributions under | 9 | | this subdivision
(a)(2).
| 10 | | (3) A participant who (i) first serves as a judge | 11 | | before January 1, 2011 and has attained age 60, or first | 12 | | serves as a judge on or after January 1, 2011 and has | 13 | | attained age 67, (ii) continues to serve
as a judge after | 14 | | becoming eligible to receive the maximum rate of annuity,
| 15 | | and (iii) has not elected to discontinue contributing to | 16 | | the System under
subdivision (a)(2) of this Section (or has | 17 | | revoked any such election) may
elect, through a written | 18 | | direction filed with the Board, to make contributions
to | 19 | | the System based only on the amount of the increases in | 20 | | salary received by
the judge on or after the date of the | 21 | | election, rather than the total salary
received. If a judge | 22 | | who is making contributions to the System on the
effective | 23 | | date of this amendatory Act of the 91st General Assembly | 24 | | makes an
election to limit contributions under this | 25 | | subdivision (a)(3) within 90 days
after that effective | 26 | | date, the election shall be deemed to become
effective on |
| | | HB2497 | - 11 - | LRB100 08024 RPS 18107 b |
|
| 1 | | that effective date and the judge shall be entitled to | 2 | | receive a
refund of any excess contributions paid to the | 3 | | System during that 90-day
period; any other election under | 4 | | this subdivision (a)(3) becomes effective
on the first of | 5 | | the month following the date of the election. An election | 6 | | to
limit contributions under this subdivision (a)(3) is | 7 | | irrevocable. Service
credits earned in any other | 8 | | participating system as defined in Article 20 of
this Code | 9 | | shall be considered for purposes of determining a judge's | 10 | | eligibility
to make an election under this subdivision | 11 | | (a)(3).
| 12 | | (b) Beginning July 1, 1969, each participant is required to | 13 | | contribute
1% of each payment of salary towards the automatic | 14 | | increase in annuity
provided in Section 18-125.1. However, such | 15 | | contributions need not be made
by any participant who has | 16 | | elected prior to September 15, 1969, not to be
subject to the | 17 | | automatic increase in annuity provisions.
| 18 | | (c) Effective July 13, 1953, each married participant | 19 | | subject to the
survivor's annuity provisions is required to | 20 | | contribute 2 1/2% of each
payment of salary, whether or not he | 21 | | or she is required to make any other
contributions under this | 22 | | Section. Such contributions shall be made
concurrently with the | 23 | | contributions made for annuity purposes.
| 24 | | (d) Notwithstanding any other provision of this Article, | 25 | | the required contributions for a participant who first becomes | 26 | | a participant on or after January 1, 2011 shall not exceed the |
| | | HB2497 | - 12 - | LRB100 08024 RPS 18107 b |
|
| 1 | | contributions that would be due under this Article if that | 2 | | participant's highest salary for annuity purposes were | 3 | | $106,800, plus any increase in that amount under Section | 4 | | 18-125. | 5 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
|
|