Full Text of HB3632 98th General Assembly
HB3632 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3632 Introduced , by Rep. Dan Brady SYNOPSIS AS INTRODUCED: |
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Amends the Judges Article of the Illinois Pension Code. Defines terms. Requires Tier I employees to elect (i) to have the amount of their automatic annual increases reduced and to waive their eligibility for automatic annual increases for 2 years, (ii) to make additional employee contributions and to waive their eligibility for automatic annual increases for 3 years, or (iii) to maintain their current benefit package. Specifies that a Tier I employee who has elected either item (i) or (ii) is entitled to have future increases in income treated as pensionable income and remains eligible to participate in the State-sponsored program of health benefits during retirement. Specifies that a Tier I employee who has elected item (iii) is not eligible for any of these benefits. Requires Tier I retirees to elect (i) to delay their eligibility for automatic annual increases or (ii) to maintain their current benefit package. Specifies that a Tier I retiree who elects item (ii) becomes ineligible to participate in the State-sponsored program of health benefits during retirement. Makes conforming changes in the State Employees Group Insurance Act of 1971. Includes an inseverability provision. Effective immediately.
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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 employe benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Employees Group Insurance Act of 1971 | 5 | | is amended by adding Section 6.16 as follows: | 6 | | (5 ILCS 375/6.16 new) | 7 | | Sec. 6.16. Health benefit election for Tier I employees and | 8 | | Tier I retirees. | 9 | | (a) For purposes of this Section: | 10 | | "Eligible Tier I employee" means, except as provided in | 11 | | subsection (g) of this Section, an individual who makes or is | 12 | | deemed to have made an election under paragraph (1) of | 13 | | subsection (a) of Section 18-120.5 of the Illinois Pension | 14 | | Code. | 15 | | "Eligible Tier I retiree" means, except as provided in | 16 | | subsection (g) of this Section, an individual who makes or is | 17 | | deemed to have made an election under paragraph (1) of | 18 | | subsection (a-5) of Section 18-120.5 of the Illinois Pension | 19 | | Code. | 20 | | "Program of health benefits" means (i) a health plan, as | 21 | | defined in subsection (o) of Section 3 of this Act, that is | 22 | | designed and contracted for by the Director under this Act or | 23 | | any successor Act or (ii) if administration of that health plan |
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| 1 | | is transferred to a trust established by the State or an | 2 | | independent Board in order to provide health benefits to a | 3 | | class of a persons that includes eligible Tier I retirees, then | 4 | | the plan of health benefits provided through that trust. | 5 | | (b) As adequate and legal consideration for making an | 6 | | election under paragraph (1) of subsection (a) or (a-5) of | 7 | | Section 18-120.5 of the Illinois Pension Code, as the case may | 8 | | be, each eligible Tier I employee and each eligible Tier I | 9 | | retiree shall receive a vested and enforceable contractual | 10 | | right to participate in a program of health benefits while he | 11 | | or she qualifies as an annuitant or retired employee. That | 12 | | right also extends to such a person's dependents and survivors | 13 | | who are eligible under the applicable program of health | 14 | | benefits. | 15 | | (c) Notwithstanding subsection (b), eligible Tier I | 16 | | employees and eligible Tier I retirees may be required to make | 17 | | contributions toward the cost of coverage under a program of | 18 | | health benefits. | 19 | | (d) The vested and enforceable contractual right to a | 20 | | program of health benefits is not offered as, and shall not be | 21 | | considered, a pension or retirement benefit under Article XIII, | 22 | | Section 5 of the Illinois Constitution, the Illinois Pension | 23 | | Code, or any subsequent or successor enactment providing | 24 | | pension benefits. | 25 | | (e) Notwithstanding any other provision of law, except | 26 | | subsection (g) of this Section, a Tier I employee or Tier I |
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| 1 | | retiree who has made an election under paragraph (2) of | 2 | | subsection (a) or (a-5) of Section 18-120.5 of the Illinois | 3 | | Pension Code, as the case may be, shall not be entitled to | 4 | | participate in any program of health benefits under this Act as | 5 | | an annuitant or retired employee receiving a retirement | 6 | | annuity, regardless of any contrary election pursuant to any of | 7 | | those Sections under any other retirement system. | 8 | | Notwithstanding any other provision of law, except | 9 | | subsection (g) of this Section, a Tier I employee who is not | 10 | | entitled to participate in the program of health benefits as an | 11 | | annuitant or retired employee receiving a retirement annuity, | 12 | | due to an election under paragraph (2) of subsection (a) or | 13 | | (a-5) of Section 18-120.5 of the Illinois Pension Code, as the | 14 | | case may be, shall not be required to make contributions toward | 15 | | the program of health benefits while he or she is an employee | 16 | | or active contributor. However, an active employee may be | 17 | | required to make contributions toward health benefits he or she | 18 | | receives during active service. | 19 | | (f) The Department shall coordinate with each retirement | 20 | | system administering an election in accordance with this | 21 | | amendatory Act of the 98th General Assembly to provide | 22 | | information concerning the impact of the election of health | 23 | | benefits. Each System shall include information prepared by the | 24 | | Department in the required election packet. The Department | 25 | | shall make information available to Tier I employees and Tier I | 26 | | retirees through video materials, group presentations, |
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| 1 | | consultation by telephone or other electronic means, or any | 2 | | combination of these methods. The information in the election | 3 | | packet shall include a notice that states: "YOU ARE HEREBY | 4 | | ADVISED THAT THE PROGRAM OF HEALTH BENEFITS OFFERED IS FOR | 5 | | ACCESS TO A GROUP HEALTHCARE PLAN ADMINISTERED BY THE | 6 | | DEPARTMENT, AND YOU MAY BE REQUIRED TO PAY FOR THE FULL COST OF | 7 | | COVERAGE PROVIDED BY THE PLAN, INCLUDING ALL PREMIUM, | 8 | | DEDUCTIBLE, AND COPAY AMOUNTS." | 9 | | (g) Nothing in this Section shall be construed as applying | 10 | | to a person who is eligible to make or who made the election | 11 | | under Section 15-135.1 of the Illinois Pension Code. | 12 | | Section 10. The Illinois Pension Code is amended by | 13 | | changing Sections 18-111, 18-125.1, 18-132, 18-133, 18-140, | 14 | | and 18-169 and adding Sections 18-110.1, 18-110.2, 18-110.9, | 15 | | and 18-120.5 as follows: | 16 | | "(40 ILCS 5/18-110.1 new) | 17 | | Sec. 18-110.1. Tier I employee. "Tier I employee": A | 18 | | participant who first became a participant before January 1, | 19 | | 2011. | 20 | | (40 ILCS 5/18-110.2 new) | 21 | | Sec. 18-110.2. Tier I retiree. "Tier I retiree" means a | 22 | | former Tier I employee who is receiving a retirement annuity. |
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| 1 | | (40 ILCS 5/18-110.9 new) | 2 | | Sec. 18-110.9. Future increase in income. "Future increase | 3 | | in income": Any increase in income in any form offered for | 4 | | service as a judge under this Article after June 30, 2014 that | 5 | | would qualify as "salary", as defined in Section 18-111, but | 6 | | for the fact that the increase in income was offered to the | 7 | | judge on the condition that it not qualify as salary and was | 8 | | accepted by the judge subject to that condition.
| 9 | | (40 ILCS 5/18-111) (from Ch. 108 1/2, par. 18-111)
| 10 | | Sec. 18-111. Salary. "Salary": The total compensation paid | 11 | | for personal
services as a judge, by the State, or by the State | 12 | | and a county as
authorized by law. However, in the event that | 13 | | federal law results in any
judge receiving imputed income based | 14 | | on the value of group term life
insurance provided by the | 15 | | State, such imputed income shall not be included
in salary for | 16 | | the purposes of this Article.
| 17 | | Notwithstanding any other provision of this Section, | 18 | | "salary" does not include any future increase in income that is | 19 | | offered for service as a judge under this Article pursuant to | 20 | | the requirements of subsection (c) of Section 18-120.5 and | 21 | | accepted by a Tier I employee, or a Tier I retiree returning to | 22 | | active service, who has made the election under paragraph (2) | 23 | | of subsection (a) or (a-5) of Section 18-120.5. | 24 | | (Source: P.A. 86-273.)
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| 1 | | (40 ILCS 5/18-120.5 new) | 2 | | Sec. 18-120.5. Election by Tier I employees and Tier I | 3 | | retirees. | 4 | | (a) Each Tier I employee shall make an irrevocable election | 5 | | either: | 6 | | (1) to agree to item (i) or (ii) as set forth in this | 7 | | paragraph (1): | 8 | | (i) to have the amount of the automatic annual | 9 | | increases in his or her retirement annuity that are | 10 | | otherwise provided for in this Article calculated, | 11 | | instead, as provided in subsection (a-1) of Section | 12 | | 18-125.1, and to waive his or her eligibility for 2 | 13 | | automatic annual increases in retirement annuity as | 14 | | provided in subsection (a-2) of Section 18-125.1; or | 15 | | (ii) to waive his or her eligibility for 3 | 16 | | automatic annual increases in retirement annuity, as | 17 | | provided in subsection (a-3) of Section 18-125.1, and | 18 | | to make the contributions set forth in subsection (a-5) | 19 | | of Section 18-133; or | 20 | | (2) to not agree to item (i) or (ii) as set forth in | 21 | | paragraph (1) of this subsection. | 22 | | The election required under this subsection (a) shall be | 23 | | made by each Tier I employee no earlier than February 1, 2014 | 24 | | and no later than May 31, 2014, except that: | 25 | | (i) a person who becomes a Tier I employee under this | 26 | | Article on or after February 1, 2014 must make the election |
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| 1 | | under this subsection (a) within 60 days after becoming a | 2 | | Tier I employee; | 3 | | (ii) a person who returns to active service as a Tier I | 4 | | employee under this Article on or after February 1, 2014 | 5 | | and has not yet made an election under this Section must | 6 | | make the election under this subsection (a) within 60 days | 7 | | after returning to active service as a Tier I employee; and | 8 | | (iii) a person who made the election under subsection | 9 | | (a-5) as a Tier I retiree remains bound by that election | 10 | | and shall not make a later election under this subsection | 11 | | (a). | 12 | | If a Tier I employee fails for any reason to make a | 13 | | required election under this subsection within the time | 14 | | specified, then the employee shall be deemed to have made the | 15 | | election under paragraph (2) of this subsection. | 16 | | (a-5) Each Tier I retiree shall make an irrevocable | 17 | | election either: | 18 | | (1) to agree to the following: | 19 | | (i) to have the amount of the automatic annual | 20 | | increases in his or her retirement annuity calculated | 21 | | without regard to subsection (a-1), (a-2), or (a-3) of | 22 | | Section 18-125.1; and | 23 | | (ii) to waive his or her eligibility for 2 | 24 | | automatic annual increases in retirement annuity as | 25 | | provided in subsection (a-4) of Section 18-125.1; or | 26 | | (2) to not agree to items (i) and (ii) as set forth in |
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| 1 | | paragraph (1) of this subsection. | 2 | | The election required under this subsection (a-5) shall be | 3 | | made by each Tier I retiree no earlier than February 1, 2014 | 4 | | and no later than May 31, 2014, except that: | 5 | | (i) a person who becomes a Tier I retiree under this | 6 | | Article on or after February 1, 2014 must make the election | 7 | | under this subsection (a-5) within 60 days after becoming a | 8 | | Tier I retiree; and | 9 | | (ii) a person who made the election under subsection | 10 | | (a) as a Tier I employee remains bound by that election and | 11 | | shall not make a later election under this subsection | 12 | | (a-5). | 13 | | If a Tier I retiree fails for any reason to make a required | 14 | | election under this subsection within the time specified, then | 15 | | the Tier I retiree shall be deemed to have made the election | 16 | | under paragraph (2) of this subsection. | 17 | | (a-10) All elections under subsection (a) or (a-5) that are | 18 | | made or deemed to be made before June 1, 2014 shall take effect | 19 | | on July 1, 2014. Elections that are made or deemed to be made | 20 | | on or after June 1, 2014 shall take effect on the first day of | 21 | | the month following the month in which the election is made or | 22 | | deemed to be made. | 23 | | (b) As adequate and legal consideration provided under this | 24 | | amendatory Act of the 98th General Assembly for making an | 25 | | election under paragraph (1) of subsection (a) of this Section, | 26 | | any future increases in income offered for service as a judge |
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| 1 | | under this Article to a Tier I employee who has made an | 2 | | election under paragraph (1) of subsection (a) of this Section | 3 | | shall be offered expressly and irrevocably as constituting | 4 | | salary under Section 18-111. | 5 | | As adequate and legal consideration provided under this | 6 | | amendatory Act of the 98th General Assembly for making an | 7 | | election under paragraph (1) of subsection (a-5) of this | 8 | | Section, any future increases in income offered for service as | 9 | | a judge under this Article to a Tier I retiree who returns to | 10 | | active service after having made an election under paragraph | 11 | | (1) of subsection (a-5) of this Section shall be offered | 12 | | expressly and irrevocably as constituting salary under Section | 13 | | 18-111. | 14 | | (c) A Tier I employee who makes the election under | 15 | | paragraph (2) of subsection (a) of this Section shall not be | 16 | | subject to either item (i) or (ii) set forth in paragraph (1) | 17 | | of subsection (a) of this Section. However, any future | 18 | | increases in income offered for service as a judge under this | 19 | | Article to a Tier I employee who has made the election under | 20 | | paragraph (2) of subsection (a) of this Section shall be | 21 | | offered expressly and irrevocably as not constituting salary | 22 | | under Section 18-111, and the judge may not accept any future | 23 | | increase in income that is offered in violation of this | 24 | | requirement. | 25 | | A Tier I retiree who makes the election under paragraph (2) | 26 | | of subsection (a-5) of this Section shall not be subject to |
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| 1 | | either item (i) or (ii) set forth in paragraph (1) of | 2 | | subsection (a-5) of this Section. However, any future increases | 3 | | in income offered for service as a judge under this Article to | 4 | | a Tier I retiree who returns to active service and has made the | 5 | | election under paragraph (2) of subsection (a-5) of this | 6 | | Section shall be offered expressly and irrevocably as not | 7 | | constituting salary under Section 18-111, and the judge may not | 8 | | accept any future increase in income that is offered in | 9 | | violation of this requirement. | 10 | | (d) The System shall make a good faith effort to contact | 11 | | each Tier I employee and Tier I retiree subject to this | 12 | | Section. The System shall mail information describing the | 13 | | required election to each Tier I employee and Tier I retiree by | 14 | | United States Postal Service mail to his or her last known | 15 | | address on file with the System. If the Tier I employee or Tier | 16 | | I retiree is not responsive to other means of contact, it is | 17 | | sufficient for the System to publish the details of any | 18 | | required elections on its website or to publish those details | 19 | | in a regularly published newsletter or other existing public | 20 | | forum. | 21 | | Tier I employees and Tier I retirees who are subject to | 22 | | this Section shall be provided with an election packet | 23 | | containing information regarding their options, as well as the | 24 | | forms necessary to make the required election. Upon request, | 25 | | the System shall offer Tier I employees and Tier I retirees an | 26 | | opportunity to receive information from the System before |
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| 1 | | making the required election. The information may be provided | 2 | | through video materials, group presentations, individual | 3 | | consultation with a judge by an authorized representative of | 4 | | the System in person or by telephone or other electronic means, | 5 | | or any combination of those methods. The System shall not | 6 | | provide advice or counseling with respect to which election a | 7 | | Tier I employee or Tier I retiree should make or specific to | 8 | | the legal or tax circumstances of or consequences to the Tier I | 9 | | employee or Tier I retiree. | 10 | | The System shall inform Tier I employees and Tier I | 11 | | retirees in the election packet required under this subsection | 12 | | that the Tier I employee or Tier I retiree may also wish to | 13 | | obtain information and counsel relating to the election | 14 | | required under this Section from any other available source, | 15 | | including but not limited to labor organizations and private | 16 | | counsel. | 17 | | In no event shall the System, its staff, or the Board be | 18 | | held liable for any information given to a participant, | 19 | | beneficiary, or annuitant regarding the elections under this | 20 | | Section. The System shall coordinate with the Illinois | 21 | | Department of Central Management Services and each other | 22 | | retirement system administering an election in accordance with | 23 | | this amendatory Act of the 98th General Assembly to provide | 24 | | information concerning the impact of the election set forth in | 25 | | this Section. | 26 | | (e) Notwithstanding any other provision of law, any future |
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| 1 | | increases in income offered for service as a judge must be | 2 | | offered expressly and irrevocably as not constituting "salary" | 3 | | under Section 18-111 to any Tier I employee, or Tier I retiree | 4 | | returning to active service, who has made an election under | 5 | | paragraph (2) of subsection (a) or (a-5) of this Section | 6 | | 18-120.5. A Tier I employee, or Tier I retiree returning to | 7 | | active service, who has made an election under paragraph (2) of | 8 | | subsection (a) or (a-5) of this Section 18-120.5 shall not | 9 | | accept any future increase in income that is offered for | 10 | | service as a judge under this Article in violation of the | 11 | | requirement set forth in this subsection. | 12 | | (f) An election under this Section is not a prohibited | 13 | | election under subdivision (j)(1) of Section 1-119 of this | 14 | | Code. | 15 | | (g) No provision of this Section shall be interpreted in a | 16 | | way that would cause the System to cease to be a qualified plan | 17 | | under Section 401(a) of the Internal Revenue Code of 1986. | 18 | | (h) If this Section is determined to be unconstitutional or | 19 | | otherwise invalid by a final unappealable decision of an | 20 | | Illinois court or a court of competent jurisdiction as applied | 21 | | to Tier I employees but not as applied to Tier I retirees, then | 22 | | this Section and the changes deriving from the election | 23 | | required under this Section shall be null and void as applied | 24 | | to Tier I employees but shall remain in full effect for Tier I | 25 | | retirees. | 26 | | (i) If this Section is determined to be unconstitutional or |
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| 1 | | otherwise invalid by a final unappealable decision of an | 2 | | Illinois court or a court of competent jurisdiction as applied | 3 | | to Tier I retirees but not as applied to Tier I employees, then | 4 | | this Section and the changes deriving from the election | 5 | | required under this Section shall be null and void as applied | 6 | | to Tier I retirees but shall remain in full effect for Tier I | 7 | | employees. | 8 | | (j) If an election created by this amendatory Act in any | 9 | | other Article of this Code or any change deriving from that | 10 | | election is determined to be unconstitutional or otherwise | 11 | | invalid by a final unappealable decision of an Illinois court | 12 | | or a court of competent jurisdiction, the invalidity of that | 13 | | provision shall not in any way affect the validity of this | 14 | | Section or the changes deriving from the election required | 15 | | under this Section.
| 16 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 17 | | Sec. 18-125.1. Automatic increase in retirement annuity. | 18 | | (a) Except as provided in subsections (a-1), (a-2), (a-3), | 19 | | and (a-4), a A participant who
retires from service after June | 20 | | 30, 1969, shall, in January of the year next
following the year | 21 | | in which the first anniversary of retirement occurs, and in
| 22 | | January of each year thereafter, have the amount of his or her | 23 | | originally
granted retirement annuity increased as follows: | 24 | | for each year up to and
including 1971, 1 1/2%; for each year | 25 | | from 1972 through 1979 inclusive, 2%; and
for 1980 and each |
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| 1 | | year thereafter, 3%.
| 2 | | (a-1) Notwithstanding any other provision of this Article, | 3 | | for a Tier I employee who made the election under item (i) of | 4 | | paragraph (1) of subsection (a) of Section 18-120.5, the amount | 5 | | of each automatic annual increase in retirement annuity | 6 | | occurring on or after the effective date of that election, | 7 | | other than the initial increase, shall be 3% of the originally | 8 | | granted retirement annuity. | 9 | | (a-2) Notwithstanding any other provision of this Article, | 10 | | for a Tier I employee who made the election under item (i) of | 11 | | paragraph (1) of subsection (a) of Section 18-120.5, once the | 12 | | first annual increase under this Section has been granted, the | 13 | | next 2 scheduled annual increases after the effective date of | 14 | | that election shall be skipped, and thereafter all annual | 15 | | increases shall be granted. | 16 | | (a-3) Notwithstanding any other provision of this Article, | 17 | | for a Tier I employee who made the election under item (ii) of | 18 | | paragraph (1) of subsection (a) of Section 18-120.5, once the | 19 | | first annual increase under this Section has been granted, the | 20 | | next 3 scheduled annual increases after the effective date of | 21 | | that election shall be skipped, and thereafter all annual | 22 | | increases shall be granted. | 23 | | (a-4) Notwithstanding any other provision of this Article, | 24 | | for a Tier I retiree who made the election under paragraph (1) | 25 | | of subsection (a-5) of Section 18-120.5: | 26 | | (1) if the Tier I retiree has not received the first |
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| 1 | | annual increase under this Section as of the effective date | 2 | | of that election, then once the first annual increase under | 3 | | this Section has been granted, the next scheduled annual | 4 | | increase shall be skipped, the following annual increase | 5 | | shall be granted, the next annual increase shall be | 6 | | skipped, and thereafter all annual increases shall be | 7 | | granted; and | 8 | | (2) if the Tier I retiree has received the first annual | 9 | | increase under this Section as of the effective date of | 10 | | that election, then the next annual increase after that | 11 | | effective date shall be skipped, the following annual | 12 | | increase shall be granted, the next annual increase shall | 13 | | be skipped, and thereafter all annual increases shall be | 14 | | granted. | 15 | | (b) Notwithstanding subsections (a) and (e) of this Section | 16 | | any other provision of this Article , a retirement annuity for a | 17 | | participant who first serves as a judge on or after January 1, | 18 | | 2011 (the effective date of Public Act 96-889) shall be | 19 | | increased in January of the year next
following the year in | 20 | | which the first anniversary of retirement occurs, but in no | 21 | | event prior to age 67, and in
January of each year thereafter, | 22 | | by an amount equal to 3% or the annual percentage increase in | 23 | | the consumer price index-u as determined by the Public Pension | 24 | | Division of the Department of Insurance under subsection (b-5) | 25 | | of Section 18-125, whichever is less, of the retirement annuity | 26 | | then being paid. |
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| 1 | | (c) This Section is not applicable to a participant who | 2 | | retires before he
or she has made contributions at the rate | 3 | | prescribed in Section 18-133 for
automatic increases for not | 4 | | less than the equivalent of one full year, unless
such a | 5 | | participant arranges to pay the system the amount required to | 6 | | bring
the total contributions for the automatic increase to the | 7 | | equivalent of
one year's contribution based upon his or her | 8 | | last year's salary.
| 9 | | This Section is applicable to all participants in service | 10 | | after June 30,
1969 unless a participant has elected, prior to | 11 | | September 1,
1969, in a written direction filed with the board | 12 | | not to be subject to
the provisions of this Section. Any | 13 | | participant in service on or after
July 1, 1992 shall have the | 14 | | option of electing prior to April 1, 1993,
in a written | 15 | | direction filed with the board, to be covered by the provisions | 16 | | of
the 1969 amendatory Act. Such participant shall be required | 17 | | to make the
aforesaid additional contributions with compound | 18 | | interest at 4% per annum.
| 19 | | (d) Except as provided in subsections (a-1), (a-2), (a-3), | 20 | | and (a-4), any Any participant who has become eligible to | 21 | | receive the maximum rate of
annuity and who resumes service as | 22 | | a judge after receiving a retirement
annuity under this Article | 23 | | shall have the amount of his or her
retirement annuity | 24 | | increased by 3% of the originally granted annuity amount
for | 25 | | each year of such resumed service, beginning in January of the | 26 | | year
next following the date of such resumed service, upon |
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| 1 | | subsequent
termination of such resumed service.
| 2 | | (e) Beginning January 1, 1990, and except as provided in | 3 | | subsections (a-1) and (b), all automatic annual increases | 4 | | payable
under this Section shall be calculated as a percentage | 5 | | of the total annuity
payable at the time of the increase, | 6 | | including previous increases granted
under this Article.
| 7 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 8 | | (40 ILCS 5/18-132) (from Ch. 108 1/2, par. 18-132)
| 9 | | Sec. 18-132. Obligations of State ; funding guarantee . | 10 | | (a) The payment of (1) the required State contributions, | 11 | | (2) all benefits
granted under this system and (3) all expenses | 12 | | in connection with the
administration and operation thereof are | 13 | | the obligations of the State to
the extent specified in this | 14 | | Article.
| 15 | | (b) The State shall be contractually obligated to | 16 | | contribute to the System in each State fiscal year an amount | 17 | | not less than the sum required in Section 18-131 as that | 18 | | Section existed prior to the effective date of this amendatory | 19 | | Act of the 98th General Assembly. | 20 | | The obligations created under this subsection (b) are | 21 | | contractual obligations protected and enforceable under | 22 | | Article I, Section 16 and Article XIII, Section 5 of the | 23 | | Illinois Constitution. | 24 | | Notwithstanding any other provision of law, if the State | 25 | | fails to pay in a State fiscal year the amount guaranteed under |
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| 1 | | this subsection (b), the System may bring a mandamus action in | 2 | | the Circuit Court of Sangamon County to compel the State to | 3 | | make that payment, irrespective of other remedies that
may be | 4 | | available to the System. It shall be the mandatory fiduciary | 5 | | obligation of the Board of the System to bring that action if | 6 | | the State fails to pay in the fiscal year the amount guaranteed | 7 | | under this subsection (b). Before commencing that action, the | 8 | | Board shall submit a voucher for contributions required under | 9 | | Section 18-140. If the State fails to pay a vouchered amount | 10 | | within 90 days after receiving a voucher for that amount, then | 11 | | the Board shall submit a written request to the Comptroller | 12 | | seeking payment of that amount. A copy of the request shall be | 13 | | filed with the Secretary of State, and the Secretary of State | 14 | | shall provide copies of the request to the Governor and General | 15 | | Assembly. No earlier than the 16th day after filing a request | 16 | | with the Secretary, but no later than the 21st day after filing | 17 | | that request, the Board may commence such an action in the | 18 | | Circuit Court. If the Board fails to commence such action on or | 19 | | before the 21st day after filing the request with the Secretary | 20 | | of State, then any Tier I employee or Tier I retiree who made | 21 | | an election under paragraph (1) of subsection (a) or (a-5) of | 22 | | Section 18-120.5 may file a mandamus action against the Board | 23 | | to compel the Board to commence its mandamus action against the | 24 | | State. This subsection (b) constitutes an express waiver of the | 25 | | State's sovereign immunity. In ordering the State to make the | 26 | | required payment, the court may order a reasonable payment |
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| 1 | | schedule to enable the State to make the required payment. The | 2 | | obligations and causes of action created under this subsection | 3 | | (b) shall be in addition to any other right or remedy otherwise | 4 | | accorded by common law, or State or federal law, and nothing in | 5 | | this subsection (b) shall be construed to deny, abrogate, | 6 | | impair, or waive any such common law or statutory right or | 7 | | remedy. | 8 | | Any payments required to be made by the State pursuant to | 9 | | this subsection (b) are expressly subordinated to the payment | 10 | | of the principal, interest, and premium, if any, on any
bonded | 11 | | debt obligation of the State or any other State-created entity, | 12 | | either currently outstanding or to
be issued, for which the | 13 | | source of repayment or security thereon is derived directly or | 14 | | indirectly from
tax revenues collected by the State or any | 15 | | other State-created entity. Payments on such bonded
| 16 | | obligations include any statutory fund transfers or other | 17 | | prefunding mechanisms or formulas set forth,
now or hereafter, | 18 | | in State law or bond indentures, into debt service funds or | 19 | | accounts of the State
related to such bonded obligations, | 20 | | consistent with the payment schedules associated with such
| 21 | | obligations. | 22 | | (Source: P.A. 83-1440.)
| 23 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 24 | | Sec. 18-133. Financing; employee contributions.
| 25 | | (a) Effective July 1, 1967, each participant is required to |
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| 1 | | contribute
7 1/2% of each payment of salary toward the | 2 | | retirement annuity. Such
contributions shall continue during | 3 | | the entire time the participant is in
service, with the | 4 | | following exceptions:
| 5 | | (1) Contributions for the retirement annuity are not | 6 | | required on salary
received after 18 years of service by | 7 | | persons who were participants before
January 2, 1954.
| 8 | | (2) A participant who continues to serve as a judge | 9 | | after becoming
eligible to receive the maximum rate of | 10 | | annuity may elect, through a written
direction filed with | 11 | | the Board, to discontinue contributing to the System.
Any | 12 | | such option elected by a judge shall be irrevocable unless | 13 | | prior to
January 1, 2000, and while continuing to
serve as | 14 | | judge, the judge (A) files with the Board a letter | 15 | | cancelling the
direction to discontinue contributing to | 16 | | the System and requesting that such
contributing resume, | 17 | | and (B) pays into the System an amount equal to the total
| 18 | | of the discontinued contributions plus interest thereon at | 19 | | 5% per annum.
Service credits earned in any other | 20 | | "participating system" as defined in
Article 20 of this | 21 | | Code shall be considered for purposes of determining a
| 22 | | judge's eligibility to discontinue contributions under | 23 | | this subdivision
(a)(2).
| 24 | | (3) A participant who (i) has attained age 60, (ii) | 25 | | continues to serve
as a judge after becoming eligible to | 26 | | receive the maximum rate of annuity,
and (iii) has not |
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| 1 | | elected to discontinue contributing to the System under
| 2 | | subdivision (a)(2) of this Section (or has revoked any such | 3 | | election) may
elect, through a written direction filed with | 4 | | the Board, to make contributions
to the System based only | 5 | | on the amount of the increases in salary received by
the | 6 | | judge on or after the date of the election, rather than the | 7 | | total salary
received. If a judge who is making | 8 | | contributions to the System on the
effective date of this | 9 | | amendatory Act of the 91st General Assembly makes an
| 10 | | election to limit contributions under this subdivision | 11 | | (a)(3) within 90 days
after that effective date, the | 12 | | election shall be deemed to become
effective on that | 13 | | effective date and the judge shall be entitled to receive a
| 14 | | refund of any excess contributions paid to the System | 15 | | during that 90-day
period; any other election under this | 16 | | subdivision (a)(3) becomes effective
on the first of the | 17 | | month following the date of the election. An election to
| 18 | | limit contributions under this subdivision (a)(3) is | 19 | | irrevocable. Service
credits earned in any other | 20 | | participating system as defined in Article 20 of
this Code | 21 | | shall be considered for purposes of determining a judge's | 22 | | eligibility
to make an election under this subdivision | 23 | | (a)(3).
| 24 | | (a-5) In addition to the contributions otherwise required | 25 | | under this Article, and notwithstanding the provisions of and | 26 | | any election under subsection (a) of this Section, each Tier I |
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| 1 | | employee who made the election under item (ii) of paragraph (1) | 2 | | of subsection (a) of Section 18-120.5 shall also make the | 3 | | following contributions toward the cost of his or her | 4 | | retirement annuity from each payment
of salary received by him | 5 | | or her for service as a judge: | 6 | | (1) beginning July 1, 2014 and through June 30, 2015, | 7 | | 1% of salary; and | 8 | | (2) beginning on July 1, 2015, 2% of salary. | 9 | | (b) Beginning July 1, 1969, each participant is required to | 10 | | contribute
1% of each payment of salary towards the automatic | 11 | | increase in annuity
provided in Section 18-125.1. However, such | 12 | | contributions need not be made
by any participant who has | 13 | | elected prior to September 15, 1969, not to be
subject to the | 14 | | automatic increase in annuity provisions.
| 15 | | (c) Effective July 13, 1953, each married participant | 16 | | subject to the
survivor's annuity provisions is required to | 17 | | contribute 2 1/2% of each
payment of salary, whether or not he | 18 | | or she is required to make any other
contributions under this | 19 | | Section. Such contributions shall be made
concurrently with the | 20 | | contributions made for annuity purposes.
| 21 | | (d) Notwithstanding any other provision of this Article, | 22 | | the required contributions for a participant shall not be based | 23 | | on any salary in excess of the salary limitation applicable to | 24 | | that participant under Section 18-111 or subsection (b-5) of | 25 | | Section who first becomes a participant on or after January 1, | 26 | | 2011 shall not exceed the contributions that would be due under |
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| 1 | | this Article if that participant's highest salary for annuity | 2 | | purposes were $106,800, plus any increase in that amount under | 3 | | Section 18-125. | 4 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 5 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 6 | | Sec. 18-140. To certify required State contributions and | 7 | | submit vouchers.
| 8 | | (a) The Board shall certify to the Governor, on or before | 9 | | November 15 of
each year through until November 15, 2011, the | 10 | | amount of the required State contribution to the System for the
| 11 | | following fiscal year and shall specifically identify the | 12 | | System's projected State normal cost for that fiscal year . The | 13 | | certification under this subsection (a) shall include a copy of | 14 | | the actuarial
recommendations upon which it is based and shall | 15 | | specifically identify the System's projected State normal cost | 16 | | for that fiscal year .
| 17 | | (a-5) On or before November 1 of each year, beginning | 18 | | November 1, 2012, the Board shall submit to the State Actuary, | 19 | | the Governor, and the General Assembly a proposed certification | 20 | | of the amount of the required State contribution to the System | 21 | | for the next fiscal year, along with all of the actuarial | 22 | | assumptions, calculations, and data upon which that proposed | 23 | | certification is based. On or before January 1 of each year , | 24 | | beginning January 1, 2013, the State Actuary shall issue a | 25 | | preliminary report concerning the proposed certification and |
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| 1 | | identifying, if necessary, recommended changes in actuarial | 2 | | assumptions that the Board must consider before finalizing its | 3 | | certification of the required State contributions. | 4 | | On or before January 15, 2013 and every January 15 | 5 | | thereafter, the Board shall certify to the Governor and the | 6 | | General Assembly the amount of the required State contribution | 7 | | for the next fiscal year. The certification shall include a | 8 | | copy of the actuarial
recommendations upon which it is based | 9 | | and shall specifically identify the System's projected State | 10 | | normal cost for that fiscal year. The Board's certification | 11 | | must note any deviations from the State Actuary's recommended | 12 | | changes, the reason or reasons for not following the State | 13 | | Actuary's recommended changes, and the fiscal impact of not | 14 | | following the State Actuary's recommended changes on the | 15 | | required State contribution. | 16 | | (a-7) On or before May 1, 2004, the Board shall recalculate | 17 | | and recertify to
the Governor the amount of the required State | 18 | | contribution to the System for
State fiscal year 2005, taking | 19 | | into account the amounts appropriated to and
received by the | 20 | | System under subsection (d) of Section 7.2 of the General
| 21 | | Obligation Bond Act.
| 22 | | On or before July 1, 2005, the Board shall recalculate and | 23 | | recertify
to the Governor the amount of the required State
| 24 | | contribution to the System for State fiscal year 2006, taking | 25 | | into account the changes in required State contributions made | 26 | | by this amendatory Act of the 94th General Assembly.
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| 1 | | On or before April 1, 2011, the Board shall recalculate and | 2 | | recertify to the Governor the amount of the required State | 3 | | contribution to the System for State fiscal year 2011, applying | 4 | | the changes made by Public Act 96-889 to the System's assets | 5 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 6 | | was approved on that date. | 7 | | (b) Beginning in State fiscal year 1996, on or as soon as | 8 | | possible after
the 15th day of each month the Board shall | 9 | | submit vouchers for payment of State
contributions to the | 10 | | System, in a total monthly amount of one-twelfth of the
| 11 | | required annual State contribution certified under subsection | 12 | | (a).
From the effective date of this amendatory Act
of the 93rd | 13 | | General Assembly through June 30, 2004, the Board shall not
| 14 | | submit vouchers for the remainder of fiscal year 2004 in excess | 15 | | of the
fiscal year 2004 certified contribution amount | 16 | | determined
under this Section after taking into consideration | 17 | | the transfer to the
System under subsection (c) of Section | 18 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 19 | | the State Comptroller and Treasurer by warrants drawn
on the | 20 | | funds appropriated to the System for that fiscal year.
| 21 | | If in any month the amount remaining unexpended from all | 22 | | other
appropriations to the System for the applicable fiscal | 23 | | year (including the
appropriations to the System under Section | 24 | | 8.12 of the State Finance Act and
Section 1 of the State | 25 | | Pension Funds Continuing Appropriation Act) is less than
the | 26 | | amount lawfully vouchered under this Section, the difference |
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| 1 | | shall be paid
from the General Revenue Fund under the | 2 | | continuing appropriation authority
provided in Section 1.1 of | 3 | | the State Pension Funds Continuing Appropriation
Act.
| 4 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | 5 | | 97-694, eff. 6-18-12.)
| 6 | | (40 ILCS 5/18-169)
| 7 | | Sec. 18-169. Application and expiration of new benefit | 8 | | increases. | 9 | | (a) As used in this Section, "new benefit increase" means | 10 | | an increase in the amount of any benefit provided under this | 11 | | Article, or an expansion of the conditions of eligibility for | 12 | | any benefit under this Article, that results from an amendment | 13 | | to this Code that takes effect after the effective date of this | 14 | | amendatory Act of the 94th General Assembly. "New benefit | 15 | | increase", however, does not include any benefit increase | 16 | | resulting from the changes made to this Article by this | 17 | | amendatory Act of the 98th General Assembly. | 18 | | (b) Notwithstanding any other provision of this Code or any | 19 | | subsequent amendment to this Code, every new benefit increase | 20 | | is subject to this Section and shall be deemed to be granted | 21 | | only in conformance with and contingent upon compliance with | 22 | | the provisions of this Section.
| 23 | | (c) The Public Act enacting a new benefit increase must | 24 | | identify and provide for payment to the System of additional | 25 | | 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 | | (d) Every new benefit increase shall expire 5 years after | 19 | | its effective date or on such earlier date as may be specified | 20 | | in the language enacting the new benefit increase or provided | 21 | | under subsection (c). This does not prevent the General | 22 | | Assembly from extending or re-creating a new benefit increase | 23 | | by law. | 24 | | (e) Except as otherwise provided in the language creating | 25 | | the new benefit increase, a new benefit increase that expires | 26 | | under this Section continues to apply to persons who applied |
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| 1 | | and qualified for the affected benefit while the new benefit | 2 | | increase was in effect and to the affected beneficiaries and | 3 | | alternate payees of such persons, but does not apply to any | 4 | | other person, including without limitation a person who | 5 | | continues in service after the expiration date and did not | 6 | | apply and qualify for the affected benefit while the new | 7 | | benefit increase was in effect.
| 8 | | (Source: P.A. 94-4, eff. 6-1-05.) | 9 | | Section 97. Severability. | 10 | | (a) Except as otherwise provided in this Act, and except as | 11 | | provided in subsection (b), the provisions of this Act are | 12 | | severable under Section 1.31 of the Statute on Statutes. | 13 | | (b) If any benefit change made by this amendatory Act | 14 | | Article 18 of the Illinois Pension Code is determined to be | 15 | | unconstitutional or otherwise
invalid by a final unappealable | 16 | | decision of an Illinois court or a court of competent | 17 | | jurisdiction, then the State funding guarantee provisions | 18 | | added to that Article by this amendatory Act shall also be | 19 | | invalid,
and those funding guarantee provisions shall be | 20 | | contingent upon and inseverable from those benefit changes.
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 5 ILCS 375/6.16 new | | | 4 | | 40 ILCS 5/18-110.1 new | | | 5 | | 40 ILCS 5/18-110.2 new | | | 6 | | 40 ILCS 5/18-110.9 new | | | 7 | | 40 ILCS 5/18-111 | from Ch. 108 1/2, par. 18-111 | | 8 | | 40 ILCS 5/18-120.5 new | | | 9 | | 40 ILCS 5/18-125.1 | from Ch. 108 1/2, par. 18-125.1 | | 10 | | 40 ILCS 5/18-132 | from Ch. 108 1/2, par. 18-132 | | 11 | | 40 ILCS 5/18-133 | from Ch. 108 1/2, par. 18-133 | | 12 | | 40 ILCS 5/18-140 | from Ch. 108 1/2, par. 18-140 | | 13 | | 40 ILCS 5/18-169 | |
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