Full Text of HB6843 096th General Assembly
HB6843 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB6843
Introduced , by Rep. Raymond Poe SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1-160 |
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30 ILCS 805/8.34 new |
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Amends the Illinois Pension Code, if and only if Senate Bill 1946 of the 96th General Assembly becomes law, in provisions applicable to new hires, provides that a participant is entitled to a retirement
annuity beginning on the date specified by the participant in
a written application only if, on that specified date, he or she has attained age 62 (rather than age 67) and has at least 10 years of service credit and removes provisions concerning entitlement to a reduced annuity. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, but no earlier than the effective date of Section 1-160 of the Illinois Pension Code added by Senate Bill 1946 of the 96th General Assembly.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB6843 |
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LRB096 21789 AMC 39680 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. If and only if Senate Bill 1946 of the 96th | 5 |
| General Assembly becomes law, the Illinois Pension Code is | 6 |
| amended by changing Section 1-160 as follows: | 7 |
| (40 ILCS 5/1-160) | 8 |
| Sec. 1-160. Provisions applicable to new hires. | 9 |
| (a) The provisions of this Section apply to a person who | 10 |
| first becomes an employee and a participant under any | 11 |
| retirement system or pension fund under this Code, other than a | 12 |
| retirement system or pension fund established under Article 2, | 13 |
| 3, 4, 5, 6, or 18 of this Code, on or after the effective date | 14 |
| of this amendatory Act of the 96th General Assembly | 15 |
| notwithstanding any other provision of this Code to the | 16 |
| contrary, but do not apply to any self-managed plan established | 17 |
| under this Code, to any person with respect to service as a | 18 |
| sheriff's law enforcement employee under Article 7, or to any | 19 |
| participant of the retirement plan established under Section | 20 |
| 22-101. | 21 |
| (b) "Final average salary" means the average monthly salary | 22 |
| obtained by dividing the total salary of the participant during | 23 |
| the 96 consecutive months of service within the last 120 months |
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LRB096 21789 AMC 39680 b |
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| of service in which the total salary was the highest by the | 2 |
| number of months of service in that period; however, the annual | 3 |
| final average salary may not exceed $106,800, as automatically | 4 |
| increased
by the lesser of 3% or one-half of the annual | 5 |
| increase in the consumer price index-u
during the preceding | 6 |
| 12-month calendar year. For the purposes of a person who first | 7 |
| becomes an employee of any retirement system or pension fund to | 8 |
| which this Section applies on or after the effective date of | 9 |
| this amendatory Act of the 96th General Assembly, in this Code, | 10 |
| "final average salary" shall be substituted for the following: | 11 |
| (1) In Articles 7 (except for service as sheriff's law | 12 |
| enforcement employees) and 15, "final rate of earnings". | 13 |
| (2) In Articles 8, 9, 10, 11, and 12, "highest average | 14 |
| annual salary for any 4 consecutive years within the last | 15 |
| 10 years of service immediately preceding the date of | 16 |
| withdrawal". | 17 |
| (3) In Article 13, "average final salary". | 18 |
| (4) In Article 14, "final average compensation". | 19 |
| (5) In Article 17, "average salary". | 20 |
| (6) In Section 22-207, "wages or salary received by him | 21 |
| at the date of retirement or discharge". | 22 |
| For the purposes of this Section, "consumer price index-u" | 23 |
| means
the index published by the Bureau of Labor Statistics of | 24 |
| the United States
Department of Labor that measures the average | 25 |
| change in prices of goods and
services purchased by all urban | 26 |
| consumers, United States city average, all
items, 1982-84 = |
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HB6843 |
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LRB096 21789 AMC 39680 b |
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| 100. The new amount resulting from each annual adjustment
shall | 2 |
| be determined by the Public Pension Division of the Department | 3 |
| of Insurance and made available to the boards of the retirement | 4 |
| systems and pension funds. | 5 |
| (c) A participant is entitled to a retirement
annuity | 6 |
| beginning on the date specified by the participant in
a written | 7 |
| application only if, on that specified date, he or she has | 8 |
| attained age 62 67 and has at least 10 years of service credit. | 9 |
| A participant who has attained age 62 and has at least 10 | 10 |
| years of service credit may elect to receive the lower | 11 |
| retirement annuity provided
in subsection (d) of this Section. | 12 |
| (d) The retirement annuity of a participant who is retiring | 13 |
| after attaining age 62 with at least 10 years of service credit | 14 |
| shall be reduced by one-half
of 1% for each month that the | 15 |
| member's age is under age 67. | 16 |
| (d) (e) Any retirement annuity or supplemental annuity | 17 |
| shall be subject to annual increases upon (1) attainment of age | 18 |
| 62 67 or (2) the first anniversary of the commencement of the | 19 |
| annuity,
whichever occurs later. Each annual increase shall be | 20 |
| calculated at 3% or one-half the annual increase in the | 21 |
| consumer price index-u for the preceding calendar year, | 22 |
| whichever is less, of the originally granted retirement | 23 |
| annuity. If the increase in the consumer price index-u for the | 24 |
| preceding calendar year is zero or there is a decrease, then | 25 |
| the annuity shall not be increased. | 26 |
| (e) (f) The initial survivor's annuity of an otherwise |
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LRB096 21789 AMC 39680 b |
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| eligible survivor of a participant who first becomes a | 2 |
| participant on or after the effective date of this amendatory | 3 |
| Act of the 96th General Assembly shall be in the amount of 66 | 4 |
| 2/3% of the participant's earned retirement annuity at the date | 5 |
| of death and shall be increased (1) on each January 1 occurring | 6 |
| on or after the commencement of the annuity if
the deceased | 7 |
| member died while receiving a retirement annuity or (2) in
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| other cases, on each January 1 occurring after the first | 9 |
| anniversary
of the commencement of the annuity. Each annual | 10 |
| increase shall be calculated at 3% or one-half the annual | 11 |
| increase in the consumer price index-u for the preceding | 12 |
| calendar year, whichever is less, of the originally granted | 13 |
| survivor's annuity. If the increase in the consumer price | 14 |
| index-u for the preceding calendar year is zero or there is a | 15 |
| decrease, then the annuity shall not be increased. | 16 |
| (f) (g) The benefits in Section 14-110 apply only if the | 17 |
| person is a State policeman, a fire fighter in the fire | 18 |
| protection service of a department, or a security employee of | 19 |
| the Department of Corrections or the Department of Juvenile | 20 |
| Justice, as those terms are defined in subsection (b) of | 21 |
| Section 14-110. A person who meets the requirements of this | 22 |
| Section is entitled to an annuity calculated under the | 23 |
| provisions of Section 14-110, in lieu of the regular or minimum | 24 |
| retirement annuity, only if the person has withdrawn from | 25 |
| service with not less than 20
years of eligible creditable | 26 |
| service and has attained age 60, regardless of whether
the |
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LRB096 21789 AMC 39680 b |
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| attainment of age 60 occurs while the person is
still in | 2 |
| service. | 3 |
| (g) (h) If a person who first becomes a member of a | 4 |
| retirement system or pension fund subject to this Section on or | 5 |
| after the effective date of this amendatory Act of the 96th | 6 |
| General Assembly is receiving a retirement annuity or | 7 |
| retirement pension under that system or fund and accepts | 8 |
| employment in a position covered under the same Article or any | 9 |
| other Article of this Code on a full-time basis, then the | 10 |
| person's retirement annuity or retirement pension under that | 11 |
| system or fund shall be suspended during that employment. Upon | 12 |
| termination of that employment, the person's retirement | 13 |
| annuity or retirement pension payments shall resume and, if | 14 |
| appropriate, be recalculated under the applicable provisions | 15 |
| of this Code. | 16 |
| (h) (i) Notwithstanding any other provision of this | 17 |
| Section, a person who first becomes a participant of the | 18 |
| retirement system established under Article 15 on or after the | 19 |
| effective date of this amendatory Act of the 96th General | 20 |
| Assembly shall have the option to enroll in the self-managed | 21 |
| plan created under Section 15-158.2 of this Code. | 22 |
| (i) (j) In the case of a conflict between the provisions of | 23 |
| this Section and any other provision of this Code, the | 24 |
| provisions of this Section shall control.
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| (Source: 09600SB1946enr.) |
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LRB096 21789 AMC 39680 b |
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| Section 90. The State Mandates Act is amended by adding | 2 |
| Section 8.34 as follows: | 3 |
| (30 ILCS 805/8.34 new) | 4 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | 5 |
| of this Act, no reimbursement by the State is required for the | 6 |
| implementation of any mandate created by this amendatory Act of | 7 |
| the 96th General Assembly. | 8 |
| Section 95. No acceleration or delay. Where this Act makes | 9 |
| changes in a statute that is represented in this Act by text | 10 |
| that is not yet or no longer in effect (for example, a Section | 11 |
| represented by multiple versions), the use of that text does | 12 |
| not accelerate or delay the taking effect of (i) the changes | 13 |
| made by this Act or (ii) provisions derived from any other | 14 |
| Public Act.
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| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law, but no earlier than the effective date of Section | 17 |
| 1-160 of the Illinois Pension Code added by Senate Bill 1946 of | 18 |
| the 96th General Assembly.
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