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90_HB2187
40 ILCS 5/Art. 1A heading new
40 ILCS 5/1A-101 new
40 ILCS 5/1A-102 new
40 ILCS 5/1A-103 new
30 ILCS 805/8.21 new
Amends the Illinois Pension Code. Provides for the
creation of a new defined-contribution retirement plan for
all new public officers and employees. Excludes new public
officers and employees from the existing pension funds
created under the Pension Code. Pre-empts home rule power.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
LRB9003847EGfg
LRB9003847EGfg
1 AN ACT to amend the Illinois Pension Code and the State
2 Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 adding Article 1A as follows:
7 (40 ILCS 5/Art. 1A heading new)
8 ARTICLE 1A. RETIREMENT
9 PLAN FOR NEW PUBLIC EMPLOYEES
10 (40 ILCS 5/1A-101 new)
11 Sec. 1A-101. Definitions. For the purposes of this
12 Article:
13 "Public employee" means an officer or employee of the
14 State of Illinois or any political subdivision of the State,
15 or of any unit of local government or school district in
16 Illinois, or of any governmental entity created by agreement
17 between 2 or more governmental entities within this State.
18 "New public employee" means a person who first becomes a
19 public employee on or after January 1, 1999 or the date upon
20 which the retirement plan established under this Article
21 first takes effect, whichever is later.
22 "Plan" or "retirement plan" means the retirement plan for
23 new public employees established under this Article.
24 (40 ILCS 5/1A-102 new)
25 Sec. 1A-102. Limitation on existing pension funds and
26 retirement systems. Notwithstanding any other provision of
27 this Code, a new public employee shall not, by virtue of that
28 public employment, participate in any of the pension funds or
29 retirement systems established under Articles 2 through 18 of
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1 this Code.
2 (40 ILCS 5/1A-103 new)
3 Sec. 1A-103. Retirement plan for new public employees.
4 (a) By January 15, 1998, the Department of Central
5 Management Services, in consultation with the Pension Laws
6 Commission and the Public Employee Pension Fund Division of
7 the Department of Insurance, shall prepare and submit to the
8 General Assembly for consideration a defined-contribution
9 retirement plan for new public employees. The proposed
10 retirement plan shall comply with the requirements of this
11 Article and shall be consistent with nationally accepted
12 principles relating to the design of public employee
13 retirement plans.
14 (b) A retirement plan for new public employees shall be
15 established under this Article only if enacted into law by
16 the Illinois General Assembly. A retirement plan established
17 under this Article may be amended only by a law enacted by
18 the General Assembly. A retirement plan established under
19 this Article shall not be the subject of collective
20 bargaining.
21 Only one retirement plan established under this Article
22 may be in effect at any one time, and that plan shall treat
23 in an identical manner all public employees who participate
24 in the plan. The retirement plan shall comply with the
25 requirements of this Article and shall be consistent with
26 nationally accepted principles relating to the design of
27 public employee retirement plans.
28 As provided in Article XIII, Section 5 of the Illinois
29 Constitution, a retirement plan established under this
30 Article creates an enforceable contractual relationship, the
31 benefits of which may not be diminished or impaired.
32 (c) A retirement plan established under this Article
33 shall be administered by the Department of Central Management
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1 Services, either directly or through a contractual agreement
2 with an independent Plan Administrator. The retirement plan
3 shall be administered in a manner that complies with the
4 requirements of this Article and is consistent with
5 nationally accepted principles governing the management and
6 administration of public employee retirement plans.
7 (d) A new public employee shall participate in the
8 retirement plan established under this Article as a condition
9 of that public employment and shall not participate, by
10 virtue of that public employment, in any other pension fund
11 or retirement system established under this Code. No other
12 person may participate in the plan.
13 (e) A participant in the retirement plan may contribute
14 to the plan up to 15% of his or her salary. A participant
15 who does not participate in social security must contribute
16 to the plan at least 6% of his or her salary. A participant
17 who does participate in social security need not make any
18 contribution to the plan.
19 (f) The employer of a new public employee shall
20 contribute to the retirement plan an amount equal to:
21 (1) if the participant does not participate in
22 social security, 10% of the participant's salary; or
23 (2) if the participant does participate in social
24 security, 5% of the participant's salary.
25 (g) The regulation of retirement benefits for new public
26 employees is an exclusive power and function of the State.
27 This Article is a denial and limitation of home rule powers
28 under subsection (g) of Section 6 of Article VII of the
29 Illinois Constitution.
30 Section 90. The State Mandates Act is amended by adding
31 Section 8.21 as follows:
32 (30 ILCS 805/8.21 new)
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1 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
2 and 8 of this Act, no reimbursement by the State is required
3 for the implementation of any mandate created by this
4 amendatory Act of 1997.
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.