Full Text of SB3600 101st General Assembly
SB3600 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3600 Introduced 2/14/2020, by Sen. Scott M. Bennett SYNOPSIS AS INTRODUCED: |
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Amends the State Universities Article of the Illinois Pension Code. Provides that if an employer employs an affected annuitant to fill a posted position that has gone unfilled for at least 180 days, then, for one and only one academic year, the employer is not required to pay a specified additional contribution. Provides that the employer shall immediately notify the System upon employing such a person.
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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 | | Section 15-139.5 as follows: | 6 | | (40 ILCS 5/15-139.5) | 7 | | Sec. 15-139.5. Return to work by affected annuitant; notice | 8 | | and contribution by employer. | 9 | | (a) An employer who employs or re-employs a person | 10 | | receiving a retirement annuity from the System in an academic | 11 | | year beginning on or after August 1, 2013 must notify the | 12 | | System of that employment within 60 days after employing the | 13 | | annuitant. The notice must include a summary of the contract of | 14 | | employment or specify the rate of compensation and the | 15 | | anticipated length of employment of that annuitant. The notice | 16 | | must specify whether the annuitant will be compensated from | 17 | | federal, corporate, foundation, or trust funds or grants of | 18 | | State funds that identify the principal investigator by name. | 19 | | The notice must include the employer's determination of whether | 20 | | or not the annuitant is an "affected annuitant" as defined in | 21 | | subsection (b). | 22 | | The employer must also record, document, and certify to the | 23 | | System (i) the amount of compensation paid to the annuitant for |
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| 1 | | employment during the academic year, and (ii) the amount of | 2 | | that compensation, if any, that comes from either federal, | 3 | | corporate, foundation, or trust funds or grants of State funds | 4 | | that identify the principal investigator by name. | 5 | | As used in this Section, "academic year" means the 12-month | 6 | | period beginning September 1. | 7 | | For the purposes of this Section, an annuitant whose | 8 | | employment by an employer extends over more than one academic | 9 | | year shall be deemed to be re-employed by that employer in each | 10 | | of those academic years. | 11 | | The System may specify the time, form, and manner of | 12 | | providing the determinations, notifications, certifications, | 13 | | and documentation required under this Section. | 14 | | (b) A person receiving a retirement annuity from the System | 15 | | becomes an "affected annuitant" on the first day of the | 16 | | academic year following the academic year in which the | 17 | | annuitant first meets the following conditions: | 18 | | (1) (Blank). | 19 | | (2) While receiving a retirement annuity under this | 20 | | Article, the annuitant was employed on or after August 1, | 21 | | 2013 by one or more employers under this Article and | 22 | | received
or became entitled to receive during an academic | 23 | | year compensation for that employment in excess of 40% of | 24 | | his or her highest annual earnings prior
to retirement; | 25 | | except that compensation paid from federal, corporate, | 26 | | foundation, or trust funds or grants of State funds that |
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| 1 | | identify the principal investigator by name is excluded. | 2 | | (3) The annuitant received an annualized retirement | 3 | | annuity under this Article of at least $10,000. | 4 | | A person who becomes an affected annuitant remains an | 5 | | affected annuitant, except for (i) any period during which the | 6 | | person returns to active service and does not receive a | 7 | | retirement annuity from the System or (ii) any period on or | 8 | | after the effective date of this amendatory Act of the 100th | 9 | | General Assembly during which an annuitant received an | 10 | | annualized retirement annuity under this Article that is less | 11 | | than $10,000. | 12 | | (c) It is the obligation of the employer to determine | 13 | | whether an annuitant is an affected annuitant before employing | 14 | | the annuitant. For that purpose the employer may require the | 15 | | annuitant to disclose and document his or her relevant prior | 16 | | employment and earnings history. Failure of the employer to | 17 | | make this determination correctly and in a timely manner or to | 18 | | include this determination with the notification required | 19 | | under subsection (a) does not excuse the employer from making | 20 | | the contribution required under subsection (e). | 21 | | The System may assist the employer in determining whether a | 22 | | person is an affected annuitant. The System shall inform the | 23 | | employer if it discovers that the employer's determination is | 24 | | inconsistent with the employment and earnings information in | 25 | | the System's records. | 26 | | (d) Upon the request of an annuitant, the System shall |
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| 1 | | certify to the annuitant or the employer the following | 2 | | information as reported by the employers, as that information | 3 | | is indicated in the records of the System: (i) the annuitant's | 4 | | highest annual earnings prior
to retirement, (ii) the | 5 | | compensation paid for that employment in each academic year, | 6 | | and (iii) whether any of that employment or compensation has | 7 | | been certified to the System as being paid from federal, | 8 | | corporate, foundation, or trust funds or grants of State funds | 9 | | that identify the principal investigator by name. The System | 10 | | shall only be required to certify information that is received | 11 | | from the employers. | 12 | | (e) In addition to the requirements of subsection (a), an | 13 | | employer who employs an affected annuitant must pay to the | 14 | | System an employer contribution in the amount and manner | 15 | | provided in this Section, unless the annuitant is compensated | 16 | | by that employer solely from federal, corporate, foundation, or | 17 | | trust funds or grants of State funds that identify the | 18 | | principal investigator by name. | 19 | | The employer contribution required under this Section for | 20 | | employment of an affected annuitant in an academic year shall | 21 | | be equal to 12 times the amount of the gross monthly retirement | 22 | | annuity payable to the annuitant for the month in which the | 23 | | first paid day of that employment in that academic year occurs, | 24 | | after any reduction in that annuity that may be imposed under | 25 | | subsection (b) of Section 15-139. | 26 | | If an affected annuitant is employed by more than one |
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| 1 | | employer in an academic year, the employer contribution | 2 | | required under this Section shall be divided among those | 3 | | employers in proportion to their respective portions of the | 4 | | total compensation paid to the affected annuitant for that | 5 | | employment during that academic year. | 6 | | If the System determines that an employer, without | 7 | | reasonable justification, has failed to make the determination | 8 | | of affected annuitant status correctly and in a timely manner, | 9 | | or has failed to notify the System or to correctly document or | 10 | | certify to the System any of the information required by this | 11 | | Section, and that failure results in a delayed determination by | 12 | | the System that a contribution is payable under this Section, | 13 | | then the amount of that employer's contribution otherwise | 14 | | determined under this Section shall be doubled. | 15 | | The System shall deem a failure to correctly determine the | 16 | | annuitant's status to be justified if the employer establishes | 17 | | to the System's satisfaction that the employer, after due | 18 | | diligence, made an erroneous determination that the annuitant | 19 | | was not an affected annuitant due to reasonable reliance on | 20 | | false or misleading information provided by the annuitant or | 21 | | another employer, or an error in the annuitant's official | 22 | | employment or earnings records. | 23 | | (f) Whenever the System determines that an employer is | 24 | | liable for a contribution under this Section, it shall so | 25 | | notify the employer and certify the amount of the contribution. | 26 | | The employer may pay the required contribution without interest |
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| 1 | | at any time within one year after receipt of the certification. | 2 | | If the employer fails to pay within that year, then interest | 3 | | shall be charged at a rate equal to the System's prescribed | 4 | | rate of interest, compounded annually from the 366th day after | 5 | | receipt of the certification from the System. Payment must be | 6 | | concluded within 2 years after receipt of the certification by | 7 | | the employer. If the employer fails to make complete payment, | 8 | | including applicable interest, within 2 years, then the System | 9 | | may, after giving notice to the employer, certify the | 10 | | delinquent amount to the State Comptroller, and the Comptroller | 11 | | shall thereupon deduct the certified delinquent amount from | 12 | | State funds payable to the employer and pay them instead to the | 13 | | System. | 14 | | (g) If an employer is required to make a contribution to | 15 | | the System as a result of employing an affected annuitant and | 16 | | the annuitant later elects to forgo his or her annuity in that | 17 | | same academic year pursuant to subsection (c) of Section | 18 | | 15-139, then the required contribution by the employer shall be | 19 | | waived, and if the contribution has already been paid, it shall | 20 | | be refunded to the employer without interest. | 21 | | (h) Notwithstanding any other provision of this Article, | 22 | | the employer contribution required under this Section shall not | 23 | | be included in the determination of any benefit under this | 24 | | Article or any other Article of this Code, regardless of | 25 | | whether the annuitant returns to active service, and is in | 26 | | addition to any other State or employer contribution required |
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| 1 | | under this Article. | 2 | | (i) Notwithstanding any other provision of this Section to | 3 | | the contrary, if an employer employs an affected annuitant in | 4 | | order to continue critical operations in the event of either an | 5 | | employee's unforeseen illness, accident, or death or a | 6 | | catastrophic incident or disaster, then, for one and only one | 7 | | academic year, the employer is not required to pay the | 8 | | contribution set forth in this Section for that annuitant. The | 9 | | employer shall, however, immediately notify the System upon | 10 | | employing a person subject to this subsection (i). For the | 11 | | purposes of this subsection (i), "critical operations" means | 12 | | teaching services, medical services, student welfare services, | 13 | | and any other services that are critical to the mission of the | 14 | | employer.
| 15 | | (i-5) Notwithstanding any other provision of this Section | 16 | | to the contrary, if an employer employs an affected annuitant | 17 | | to fill a posted position that has gone unfilled for at least | 18 | | 180 days, then, for one and only one academic year, the | 19 | | employer is not required to pay the contribution set forth in | 20 | | this Section for that annuitant. The employer shall, however, | 21 | | immediately notify the System upon employing a person subject | 22 | | to this subsection (i-5). | 23 | | (j) This Section shall be applied and coordinated with the | 24 | | regulatory obligations contained in the State Universities | 25 | | Civil Service Act. This Section shall not apply to an annuitant | 26 | | if the employer of that annuitant provides documentation to the |
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| 1 | | System that (1) the annuitant is employed in a status | 2 | | appointment position, as that term is defined in 80 Ill. Adm. | 3 | | Code 250.80, and (2) due to obligations contained under the | 4 | | State Universities Civil Service Act, the employer does not | 5 | | have the ability to limit the earnings or duration of | 6 | | employment for the annuitant while employed in the status | 7 | | appointment position. | 8 | | (Source: P.A. 100-556, eff. 12-8-17.)
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