Full Text of HB3969 97th General Assembly
HB3969enr 97TH GENERAL ASSEMBLY |
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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 2-108.1 and by adding Sections 1-166 and 2-126.2 as | 6 | | follows: | 7 | | (40 ILCS 5/1-166 new) | 8 | | Sec. 1-166. Proportional annuity liability. | 9 | | (a) If a participant's final average salary in a | 10 | | participating system under the Retirement Systems Reciprocal
| 11 | | Act, other than the General Assembly Retirement System, is used | 12 | | to calculate a proportional retirement annuity for that | 13 | | participant under the General Assembly Retirement System, if | 14 | | that final average salary is higher than the highest salary for | 15 | | annuity purposes of that person under the General Assembly | 16 | | Retirement System, and if the participant retires after the | 17 | | effective date of this Section with less than 2 years of | 18 | | service that has accrued in that participating system since his | 19 | | or her last day of active participation in the General Assembly | 20 | | Retirement System, then the increased cost of the proportional | 21 | | annuity paid by the General Assembly Retirement System that is | 22 | | attributable to that higher level of compensation shall be paid | 23 | | by the employer of the participant under that other |
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| 1 | | participating system to the General Assembly Retirement System | 2 | | in the form of a lump sum
payment determined by the General | 3 | | Assembly Retirement System in accordance with its annuity | 4 | | tables and other actuarial assumptions. | 5 | | (b) For the purposes of this Section, "final average salary | 6 | | in a participating system under the Retirement Systems | 7 | | Reciprocal
Act, other than the General Assembly Retirement | 8 | | System," includes: | 9 | | (1) In Section 1-160 and Articles 16 and 18, "final | 10 | | average salary". | 11 | | (2) In Articles 7 and 15, "final rate of earnings". | 12 | | (3) In Articles 8, 9, 10, 11, and 12, "highest
average | 13 | | annual salary for any 4 consecutive years within the last | 14 | | 10 years of service immediately preceding the date of | 15 | | withdrawal". | 16 | | (4) In Article 13, "average final salary". | 17 | | (5) In Article 14, "final average compensation". | 18 | | (6) In Article 17, "average salary". | 19 | | (7) In Section 22-207, "wages or salary received by
him | 20 | | at the date of retirement or discharge". | 21 | | (c) If an employer fails to pay the amount required under | 22 | | this Section to the General Assembly Retirement System for more | 23 | | than
90 days after the payment is due, the System, after
giving | 24 | | notice to the employer, may certify to
the State Comptroller | 25 | | the amount of the delinquent payment and the
Comptroller shall | 26 | | deduct the amount so certified or any part thereof
from any |
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| 1 | | payment of State funds to the employer and shall pay the amount | 2 | | so deducted to the System. If State
funds from which such | 3 | | deductions may be made are not available, then the System
may | 4 | | proceed against the employer to recover the
amount of the | 5 | | delinquent payment in the appropriate circuit court.
| 6 | | (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
| 7 | | Sec. 2-108.1. Highest salary for annuity purposes.
| 8 | | (a) "Highest salary for annuity purposes" means whichever | 9 | | of
the following is applicable to the participant:
| 10 | | For a participant who first becomes a participant of this | 11 | | System before August 10, 2009 (the effective date of Public Act | 12 | | 96-207):
| 13 | | (1) For a participant who is a member of the General | 14 | | Assembly on his
or her last day of service: the highest | 15 | | salary that is prescribed by law,
on the participant's last | 16 | | day of service, for a member of the General
Assembly who is | 17 | | not an officer; plus, if the participant was elected or
| 18 | | appointed to serve as an officer of the General Assembly | 19 | | for 2 or more
years and has made contributions as required | 20 | | under subsection (d) of
Section 2-126, the highest | 21 | | additional amount of compensation prescribed by
law, at the | 22 | | time of the participant's service as an officer, for | 23 | | members of
the General Assembly who serve in that office.
| 24 | | (2) For a participant who holds one of the State | 25 | | executive offices
specified in Section 2-105 on his or her |
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| 1 | | last day of service: the highest
salary prescribed by law | 2 | | for service in that office on the participant's
last day of | 3 | | service.
| 4 | | (3) For a participant who is Clerk or Assistant Clerk | 5 | | of the House of Representatives or Secretary or Assistant | 6 | | Secretary of the Senate
on his or her last day of service: | 7 | | the salary received for service in that
capacity on the | 8 | | last day of service, but not to exceed the highest salary
| 9 | | (including additional compensation for service as an | 10 | | officer) that is
prescribed by law on the participant's | 11 | | last day of service for the highest
paid officer of the | 12 | | General Assembly.
| 13 | | (4) For a participant who is a continuing participant | 14 | | under Section
2-117.1 on his or her last day of service: | 15 | | the salary received for service
in that capacity on the | 16 | | last day of service, but not to exceed the highest
salary | 17 | | (including additional compensation for service as an | 18 | | officer) that
is prescribed by law on the participant's | 19 | | last day of service for the
highest paid officer of the | 20 | | General Assembly.
| 21 | | For a participant who first becomes a participant of this | 22 | | System on or after August 10, 2009 (the effective date of | 23 | | Public Act 96-207) and before January 1, 2011 (the effective | 24 | | date of Public Act 96-889), the average monthly salary obtained | 25 | | by dividing the total salary of the participant during the | 26 | | period of: (1) the 48 consecutive months of service within the |
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| 1 | | last 120 months of service in which the total compensation was | 2 | | the highest, or (2) the total period of service, if less than | 3 | | 48 months, by the number of months of service in that period. | 4 | | For a participant who first becomes a participant of this | 5 | | System on or after January 1, 2011 (the effective date of | 6 | | Public Act 96-889), the average monthly salary obtained by | 7 | | dividing the total salary of the participant during the 96 | 8 | | consecutive months of service within the last 120 months of | 9 | | service in which the total compensation was the highest by the | 10 | | number of months of service in that period; however, beginning | 11 | | January 1, 2011, the highest salary for annuity purposes may | 12 | | not exceed $106,800, except that that amount shall annually | 13 | | thereafter be increased by the lesser of (i) 3% of that amount, | 14 | | including all previous adjustments, or (ii) the annual | 15 | | unadjusted percentage increase (but not less than zero) in the | 16 | | consumer price index-u
for the 12 months ending with the | 17 | | September preceding each November 1. "Consumer price index-u" | 18 | | means
the index published by the Bureau of Labor Statistics of | 19 | | the United States
Department of Labor that measures the average | 20 | | change in prices of goods and
services purchased by all urban | 21 | | consumers, United States city average, all
items, 1982-84 = | 22 | | 100. The new amount resulting from each annual adjustment
shall | 23 | | be determined by the Public Pension Division of the Department | 24 | | of Insurance and made available to the Board by November 1 of | 25 | | each year. | 26 | | (b) The earnings limitations of subsection (a) apply to |
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| 1 | | earnings
under any other participating system under the | 2 | | Retirement Systems Reciprocal
Act that are considered in | 3 | | calculating a proportional annuity under this
Article, except | 4 | | in the case of a person who first became a member of this
| 5 | | System before August 22,
1994 and has not, on or after the | 6 | | effective date of this amendatory Act of the 97th General | 7 | | Assembly, irrevocably elected to have those limitations apply . | 8 | | The limitations of subsection (a) shall apply, however, to | 9 | | earnings
under any other participating system under the | 10 | | Retirement Systems Reciprocal
Act that are considered in | 11 | | calculating the proportional annuity of a person who first | 12 | | became a member of this
System before August 22,
1994 if, on or | 13 | | after the effective date of this amendatory Act of the 97th | 14 | | General Assembly, that member irrevocably elects to have those | 15 | | limitations apply.
| 16 | | (c) In calculating the subsection (a) earnings limitation | 17 | | to be applied to
earnings under any other participating system | 18 | | under the Retirement Systems
Reciprocal Act for the purpose of | 19 | | calculating a proportional annuity under this
Article, the | 20 | | participant's last day of service shall be deemed to mean the | 21 | | last
day of service in any participating system from which the | 22 | | person has applied
for a proportional annuity under the | 23 | | Retirement Systems Reciprocal Act.
| 24 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 25 | | 96-1490, eff. 1-1-11.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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