State of Illinois
92nd General Assembly
Legislation

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92_HB0432

 
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 1        AN ACT in relation to 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 State Finance Act is amended by changing
 5    Sections 14a and 15a as follows:

 6        (30 ILCS 105/14a) (from Ch. 127, par. 150a)
 7        Sec. 14a.  Payments for  unused  benefits;  use  of  sick
 8    leave.
 9        (a)  Upon  the  death  of  a  State  employee, his or her
10    estate is entitled to  receive  from  the  appropriation  for
11    personal  services  available  for  payment  of  his  or  her
12    compensation  such  sum  for accrued vacation period, accrued
13    overtime, and accrued qualifying sick  leave  as  would  have
14    been  paid or allowed to such employee had he or she survived
15    and terminated his or her employment.
16        The State Comptroller shall draw a  warrant  or  warrants
17    against  the  appropriation,  upon  receipt of a proper death
18    certificate, payable to decedent's estate, or if no estate is
19    opened, to the  person  or  persons  entitled  thereto  under
20    Section  25-1  of the Probate Act of 1975 upon receipt of the
21    affidavit referred to in that Section, for the sum due.
22        (b)  The Department of Central Management Services  shall
23    prescribe  by  rule  the  method  of  computing  the  accrued
24    vacation  period  and  accrued  overtime  for  all employees,
25    including those not otherwise subject  to  its  jurisdiction,
26    and  for  the  purposes of this Act the Department of Central
27    Management Services may require  such  reports  as  it  deems
28    necessary.   Accrued sick leave shall be computed as provided
29    in subsection (f).
30        (c)  Upon  the  retirement  or  resignation  of  a  State
31    employee from State service, his  or  her  accrued  vacation,
 
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 1    overtime  and  qualifying  sick leave shall be payable to the
 2    employee in a single lump sum payment.
 3        A lump sum payment payable under this subsection  (c)  on
 4    or  after  January 1, 2002 and before March 1, 2003 shall not
 5    be combined with or submitted on the same payroll voucher  as
 6    the employee's last payment of salary and shall be subject to
 7    withholding  at  the  following rates: 28% for federal income
 8    tax purposes and 3% for Illinois State income  tax  purposes.
 9    A  lump  sum  payment  payable under this subsection (c) to a
10    person who terminates State service during June of  2002  may
11    be  paid  during  July or August of 2002 from either a fiscal
12    year 2002 appropriation or a fiscal year 2003  appropriation.
13    However,
14        If  the  employee  returns  to employment in any capacity
15    with the same agency or department  within  30  days  of  the
16    termination  of  his  or  her  previous State employment, the
17    employee must, as  a  condition  of  his  or  her  new  State
18    employment,  repay  the  lump sum amount within 30 days after
19    his or her new State employment commences.  The amount repaid
20    shall be deposited into the fund from which the  payment  was
21    made  or  the General Revenue Fund, and the accrued vacation,
22    overtime and sick leave upon which the lump sum  payment  was
23    based  shall  be  credited  to the account of the employee in
24    accordance with the rules of the jurisdiction under which  he
25    or she is employed.
26        (d)  Upon  the  movement  of  a  State  employee  from  a
27    position  subject  to  the  Personnel  Code  to another State
28    position not subject to the Personnel Code, or to a  position
29    subject  to  the  Personnel  Code  from  a State position not
30    subject to the Personnel Code, or  upon  the  movement  of  a
31    State  employee  of  an  institution or agency subject to the
32    State  Universities  Civil  Service  System  from  one   such
33    institution  or agency to another such institution or agency,
34    his or her accrued vacation, overtime and sick leave shall be
 
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 1    credited to the employee's account  in  accordance  with  the
 2    rules  of the jurisdiction to which the State employee moved.
 3    However, if the rules preclude crediting the State employee's
 4    total accrued vacation, overtime or sick leave to his or  her
 5    account  at  the  jurisdiction to which he or she is to move,
 6    the   nontransferable   accrued   vacation,   overtime,   and
 7    qualifying sick leave shall be payable to the employee  in  a
 8    single  lump sum payment by the jurisdiction from which he or
 9    she moved.
10        (e)  Upon  the  death  of  a  State   employee   or   the
11    retirement,  indeterminate  layoff  or resignation of a State
12    employee from State service,  the  employee's  retirement  or
13    disability  benefits shall be computed as if the employee had
14    remained in the State employment at his or  her  most  recent
15    rate  of  compensation  until  his  or her accumulated unused
16    leave for vacation, overtime, sickness and personal  business
17    would  have  been  exhausted.   The  employing  agency  shall
18    certify,  in  writing  to the employee, the unused leaves the
19    employee has accrued.  This certification may be held by  the
20    employee  or  forwarded  to  the  retirement fund.  Employing
21    agencies not covered by the Personnel Code shall certify,  in
22    writing  to  the employee, the unused leaves the employee has
23    accrued.
24        (f)  Accrued sick leave shall be computed by  multiplying
25    1/2  of  the  number of days of accumulated sick leave by the
26    daily rate of compensation applicable to the employee at  the
27    time  of  his or her death, retirement, resignation, or other
28    termination of service described in this Section.
29        The payment for qualifying accrued sick leave  after  the
30    employee's   death,   retirement,   resignation,   or   other
31    termination of service provided by Public Act 83-976 shall be
32    for  sick  leave  days earned on or after January 1, 1984 and
33    before January 1, 1998.  Sick leave accumulated on  or  after
34    January  1, 1998 is not compensable under this Section at the
 
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 1    time of the employee's  death,  retirement,  resignation,  or
 2    other  termination  of  service, but may be used to establish
 3    retirement system service credit as provided in the  Illinois
 4    Pension Code.
 5        The  Department  of  Central  Management  Services  shall
 6    prescribe  by  rule  the method of computing the accrued sick
 7    leave days for all employees, including those  not  otherwise
 8    subject to its jurisdiction.  Beginning January 1, 1998, sick
 9    leave used by an employee shall be charged against his or her
10    accumulated  sick  leave in the following order:  first, sick
11    leave accumulated before January 1,  1984;  then  sick  leave
12    accumulated  on  or  after  January 1, 1998; and finally sick
13    leave accumulated on or after  January  1,  1984  but  before
14    January 1, 1998.
15    (Source: P.A. 90-65, eff. 7-7-97.)

16        (30 ILCS 105/15a) (from Ch. 127, par. 151a)
17        Sec.  15a.  Contractual  services.  The item "contractual
18    services", when used  in  an  appropriation  act,  means  and
19    includes:
20             (a)  Expenditures  incident  to  the current conduct
21        and  operation   of   an   office,   department,   board,
22        commission,  institution or agency for postage and postal
23        charges,    surety    bond    premiums,     publications,
24        subscriptions,    office   conveniences   and   services,
25        exclusive of commodities as herein defined;
26             (b)  Expenditures  for   rental   of   property   or
27        equipment, repair or maintenance of property or equipment
28        including   related   supplies,   equipment,   materials,
29        services,  replacement fixtures and repair parts, utility
30        services,  professional  or  technical  services,  moving
31        expenses  incident  to  a  new  State   employment,   and
32        transportation  charges  exclusive  of "travel" as herein
33        defined;
 
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 1             (c)  Expenditures for  the  rental  of  lodgings  in
 2        Springfield,  Illinois  and  for the payment of utilities
 3        used in connection with such  lodgings  for  all  elected
 4        State officials, who are required by Section 1, Article V
 5        of the Constitution of the State of Illinois to reside at
 6        the seat of government during their term of office;
 7             (d)  Expenditures   pursuant  to  multi-year  lease,
 8        lease-purchase  or  installment  purchase  contracts  for
 9        duplicating equipment authorized by Section  5.1  of  the
10        Illinois Purchasing Act;
11             (e)  Expenditures  of $5,000 or less per project for
12        improvements to  real  property  which,  except  for  the
13        operation   of  this  Section,  would  be  classified  as
14        "permanent improvements" as defined in Section 21;
15             (f)  Expenditures  pursuant  to  multi-year   lease,
16        lease-purchase  or  installment  purchase  contracts  for
17        land, permanent improvements or fixtures.
18        The   item  "contractual  services"  does  not,  however,
19    include any expenditures included in "operation of automotive
20    equipment" as defined in Section 24.2.
21        The item "contractual  services"  does  not  include  any
22    expenditures  for  professional, technical, or other services
23    performed for a State agency under a contract executed  after
24    July  1, the effective date of this amendatory Act of 1992 by
25    a person who was formerly employed by  that  agency  and  has
26    received   any   early  retirement  incentive  under  Section
27    14-108.3 or 16-133.3 of the Illinois Pension  Code  based  on
28    retirement  before  1993,  unless  the  official  or employee
29    executing the contract on behalf of the agency has  certified
30    that  the person performing the services either (i) possesses
31    unique expertise, or (ii) is essential to  the  operation  of
32    the agency.  This certification must be filed with the Office
33    of  the  Auditor  General  prior  to  the  execution  of  the
34    contract,  and  shall  be  made  available by that Office for
 
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 1    public  inspection  and  copying.    The  item   "contractual
 2    services" does not include any expenditures for professional,
 3    technical,  or  other  services  performed for a State agency
 4    under a contract executed after the effective  date  of  this
 5    amendatory  Act  of the 92nd General Assembly by a person who
 6    has received any early  retirement  incentive  under  Section
 7    14-108.3  or  16-133.3  of the Illinois Pension Code based on
 8    retirement in 2001 or later. A contract not payable from  the
 9    contractual services item because of this paragraph shall not
10    be  payable  from  any  other item of appropriation.  For the
11    purposes of this paragraph, the term  "agency"  includes  all
12    offices,  boards,  commissions,  departments,  agencies,  and
13    institutions of State government.
14    (Source: P.A. 91-357, eff. 7-29-99.)

15        Section  10.   The  Illinois  Pension  Code is amended by
16    changing Sections 14-108.3 and 16-133.3 as follows:

17        (40 ILCS 5/14-108.3)
18        Sec. 14-108.3.  Early retirement incentives.
19        (a)  To be eligible for the  benefits  provided  in  this
20    Section, a person must:
21             (1)  be  a  member  of  this  System who, on any day
22        during December, 2001, is (i) in active payroll status in
23        a position of employment with a department and terminates
24        that employment before the retirement annuity under  this
25        Article  begins,  or  (ii)  on  layoff status from such a
26        position with a  right  of  re-employment  or  recall  to
27        service,   or  (iii)  receiving  benefits  under  Section
28        14-123, 14-123.1 or 14-124, but only if  the  member  has
29        not been receiving those benefits for a continuous period
30        of more than 2 years as of the date of application;
31             (2)  have  not previously retired under this Article
32        or Article 2, 15, 16, 17, or 18;
 
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 1             (3)  file with the Board  before  June  1,  2002,  a
 2        written  application  requesting the benefits provided in
 3        this Section;
 4             (4)  establish eligibility to receive  a  retirement
 5        annuity  under  this  Article  (for which purpose any age
 6        enhancement or creditable  service  received  under  this
 7        Section  may  be  used) by the earlier of July 1, 2002 or
 8        the date the retirement  annuity  begins,  and  elect  to
 9        receive  the retirement annuity beginning no earlier than
10        January 1, 2002 and no later than July 1,  2002  (or  the
11        date established under subsection (d) if applicable);
12             (5)  have  attained age 50 or accumulated 30 or more
13        years of creditable service (without the use of  any  age
14        enhancement  or  creditable  service  received under this
15        Section) by the date of commencement of the annuity; and
16             (6)  by the date of  commencement  of  the  annuity,
17        have  at least 5 years of membership service earned while
18        an  employee  under  this  Article,  which  may   include
19        military  service  for  which credit is established under
20        Section 14-105(b), service during the  qualifying  period
21        for  which credit is established under Section 14-104(a),
22        and service for which  credit  has  been  established  by
23        repaying  a  refund  under  Section 14-130, but shall not
24        include service for  which  any  other  optional  service
25        credit has been established.
26        A   person  who  has  established  additional  creditable
27    service under any other early  retirement  incentive  program
28    under this Code is not eligible to participate in the program
29    of   early   retirement  incentives  established  under  this
30    Section.
31        (b)  An eligible person may establish up to  5  years  of
32    creditable  service  under this Article, in increments of one
33    month, by making the contributions  specified  in  subsection
34    (c).   In  addition,  for  each  month  of creditable service
 
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 1    established under this Section, a person's age at  retirement
 2    shall be deemed to be one month older than it actually is.
 3        The creditable service established under this Section may
 4    be   used  for  all  purposes  under  this  Article  and  the
 5    Retirement Systems Reciprocal Act, except for the computation
 6    of final average compensation under Section 14-103.12 or  the
 7    determination of compensation under this or any other Article
 8    of this Code.
 9        The age enhancement established under this Section may be
10    used   for   all   purposes  under  this  Article  (including
11    calculation of a proportionate annuity payable by this System
12    under the Retirement  Systems  Reciprocal  Act),  except  for
13    purposes  of  the  level income option in Section 14-112, the
14    reversionary annuity under Section 14-113, and  the  required
15    distributions under Section 14-121.1.
16        The age enhancement established under this Section may be
17    used in determining benefits payable under Article 16 of this
18    Code  under  the  Retirement  Systems  Reciprocal Act, if the
19    person has at least 5 years of service credit in the  Article
20    16  system that was earned while participating in that system
21    as a teacher (as defined in Section  16-106)  employed  by  a
22    department   (as   defined   in   Section  14-103.04).    Age
23    enhancement  established  under  this   Section   shall   not
24    otherwise be used in determining benefits payable under other
25    Articles of this Code under the Retirement Systems Reciprocal
26    Act.
27        (c)  For  all  creditable  service established under this
28    Section,  a  person  must  pay  to  the  System  an  employee
29    contribution to be determined by the  System,  based  on  the
30    member's  rate  of  compensation  on November 1, 2001 (or the
31    last date before November 1, 2001 for which  a  rate  can  be
32    determined)  and one-half of the retirement contribution rate
33    in effect on November 1, 2001 for the member (or for  members
34    with  the same social security and alternative formula status
 
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 1    as the member).
 2        If the member receives a lump sum payment for accumulated
 3    vacation, sick leave, and personal leave upon withdrawal from
 4    service, and the net amount of that lump sum  payment  is  at
 5    least  as  great  as  the amount of the contribution required
 6    under this Section, the entire contribution must be  paid  by
 7    the   employee  before  the  retirement  annuity  may  become
 8    payable.  If there is no such lump sum payment, or if  it  is
 9    less  than  the contribution required under this Section, the
10    member may either pay  the  entire  contribution  before  the
11    retirement annuity becomes payable or instead make an initial
12    payment  before the retirement annuity becomes payable, equal
13    to the net amount of the lump  sum  payment  for  accumulated
14    vacation,  sick  leave,  and  personal  leave,  and  have the
15    remaining amount due deducted from the retirement annuity  in
16    24 equal monthly installments beginning in the month in which
17    the   retirement   annuity   takes   effect.    The  required
18    contribution  may  be  paid  as  a  pre-tax  deduction   from
19    earnings,  but only if the required contribution is less than
20    the net amount  of  the  lump  sum  payment  for  accumulated
21    vacation, sick leave, and personal leave.
22        (d)  In  order  to ensure that the efficient operation of
23    State government  is  not  jeopardized  by  the  simultaneous
24    retirement of large numbers of key personnel, the director or
25    other  head  of  a  department may, for key employees of that
26    department,  extend  the  July  1,  2002  deadline  for   the
27    effective   date  of  a  retirement  annuity  established  in
28    subdivision (a)(4) of this Section to a date not  later  than
29    January  1, 2003 by so notifying the System in writing before
30    July 1, 2002.
31        (e)  Notwithstanding Section 14-111, an annuitant who has
32    received any age enhancement or creditable service under this
33    Section and who reenters service  under  this  Article  other
34    than  as  a temporary employee shall thereby forfeit such age
 
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 1    enhancement and creditable service, and become entitled to  a
 2    refund of the contributions made pursuant to this Section.
 3        (f)  For  the sole purpose of determining eligibility for
 4    the automatic annual increase  in  retirement  annuity  under
 5    Section  14-114,  an  annuitant  who  is  receiving any early
 6    retirement incentive under this Section and whose  retirement
 7    annuity  begins  on or before July 1, 2002 shall be deemed to
 8    have retired on January 1, 2002,  regardless  of  the  actual
 9    date of retirement.
10        (g)  The   System  shall  determine  the  amount  of  the
11    increase in unfunded accrued  liability  resulting  from  the
12    granting  of  early  retirement incentives under this Section
13    and shall report that amount to the Governor and the  Pension
14    Laws  Commission on or before April 1, 2003.  The increase in
15    liability reported under this subsection  (g)  shall  not  be
16    included   in   the   calculation   of   the  required  State
17    contribution under Section 14-131.
18        (h)  The System shall determine the amount of the  annual
19    State   contribution   necessary   to  amortize  on  a  level
20    dollar-payment basis, over  a  period  of  6  years  at  8.5%
21    interest,   compounded  annually,  an  amount  equal  to  the
22    increase  in  unfunded  accrued  liability  determined  under
23    subsection (g) minus $90,000,000.  The System  shall  certify
24    the amount of this annual State contribution to the Governor,
25    the  State  Comptroller,  the  Bureau  of the Budget, and the
26    Pension Laws Commission on or before April 1, 2003.
27        In addition to the contributions otherwise required under
28    this Article, the State shall  appropriate  and  pay  to  the
29    System  (1)  an  amount  equal to $90,000,000 in State fiscal
30    year 2003 and (2) in each of State fiscal years 2004  through
31    2009,  an  amount  equal  to  the  annual  State contribution
32    certified by the System under this subsection (h).
33        (i)  The Pension  Laws  Commission  shall  determine  and
34    report  to the General Assembly, on or before October 1, 2003
 
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 1    and annually thereafter through the year 2009,  its  estimate
 2    of  (1)  the  annual  amount  of payroll savings likely to be
 3    realized by the State as a result of the early retirement  of
 4    persons  receiving  early  retirement  incentives  under this
 5    Section and (2) the net annual savings or cost to  the  State
 6    from the program of early retirement incentives created under
 7    this Section.
 8        The   System,   the   Department  of  Central  Management
 9    Services, the Bureau of the Budget, and all other departments
10    shall provide to  the  Commission  any  assistance  that  the
11    Commission may request with respect to its reports under this
12    Section.   The  Commission may require departments to provide
13    it with any information that it  deems  necessary  or  useful
14    with  respect  to  its  reports under this Section, including
15    without limitation information about (1) the  final  earnings
16    of   former  department  employees  who  elected  to  receive
17    benefits under this Section,  (2)  the  earnings  of  current
18    department employees holding the positions vacated by persons
19    who  elected  to receive benefits under this Section, and (3)
20    positions vacated by persons who elected to receive  benefits
21    under this Section that have not yet been refilled.
22        (j)  It  is  the  purpose  of  this Section to enable the
23    State to  realize  savings  in  payroll  costs  by  replacing
24    certain  highly-compensated employees with employees who have
25    less seniority and are therefore, on the average, less highly
26    compensated.  To this end, in  State  fiscal  year  2004  the
27    General  Assembly  shall  not  fund  the positions vacated by
28    persons receiving  early  retirement  incentives  under  this
29    Section  at more than 85% of the rate of compensation payable
30    to those persons at the time of their retirement.
31        (k)  The changes made to this Section by this  amendatory
32    Act  of the 92nd General Assembly do not apply to persons who
33    retired under this Section on or before May 1, 1992.
34        (a)  To be eligible for the  benefits  provided  in  this
 
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 1    Section, a person must:
 2             (1)  be  a  member  of  this  System who, on any day
 3        during May, 1991, is (i) in active payroll  status  in  a
 4        position  of  employment  with  a  department, or (ii) on
 5        layoff status from  such  a  position  with  a  right  of
 6        re-employment  or recall to service, or (iii) on leave of
 7        absence from such a position, but only if the  member  on
 8        leave  has  not  been  receiving  benefits  under Section
 9        14-123, 14-123.1 or 14-124 for a continuous period  of  2
10        years or more as of the date of application;
11             (2)  have not retired under this Article;
12             (3)  file  with the Board before December 1, 1991, a
13        written application requesting the benefits  provided  in
14        this Section;
15             (4)  establish  eligibility  to receive a retirement
16        annuity under this Article (for  which  purpose  any  age
17        enhancement  or  creditable  service  received under this
18        Section may be used) and elect to receive the  retirement
19        annuity  beginning  not earlier than the first day of the
20        month following the month in which this amendatory Act of
21        1991 takes effect, and not later than January 1, 1992 (or
22        the date established under subsection (e) if applicable);
23             (5)  have attained age 50 or accumulated 30 or  more
24        years  of  creditable service (without the use of any age
25        enhancement or creditable  service  received  under  this
26        Section) by December 31, 1991.
27        (b)  An  eligible  person  may establish up to 5 years of
28    creditable service under this Article, in increments  of  one
29    month,  by  making  the contributions specified in subsection
30    (c).  In addition,  for  each  month  of  creditable  service
31    established  under this Section, a person's age at retirement
32    shall be deemed to be one month older than it actually is.
33        The creditable service established under this Section may
34    be  used  for  all  purposes  under  this  Article  and   the
 
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 1    Retirement Systems Reciprocal Act, except for the computation
 2    of final average compensation under Section 14-103.12, or the
 3    determination of compensation under this or any other Article
 4    of this Code.
 5        The age enhancement established under this Section may be
 6    used   for   all   purposes  under  this  Article  (including
 7    calculation of a proportionate annuity payable by this System
 8    under the Retirement  Systems  Reciprocal  Act),  except  for
 9    purposes  of  the  level income option in Section 14-112, the
10    reversionary annuity under Section 14-113, and  the  required
11    distributions   under   Section   14-121.1.    However,   age
12    enhancement  established under this Section shall not be used
13    in determining benefits payable under other Articles of  this
14    Code under the Retirement Systems Reciprocal Act.
15        (c)  For  all  creditable  service established under this
16    Section,  a  person  must  pay  to  the  System  an  employee
17    contribution to be determined by the  System,  based  on  the
18    member's  final  rate  of  compensation  and  one-half of the
19    retirement contribution rate in effect for the member on  the
20    date of withdrawal.
21        If the member receives a lump sum payment for accumulated
22    vacation,  sick leave and personal leave upon withdrawal from
23    service, and the net amount of that lump sum  payment  is  at
24    least  as  great  as  the amount of the contribution required
25    under this Section, the entire contribution (or so much of it
26    as does not exceed the contribution  limitations  of  Section
27    415 of the Internal Revenue Code of 1986) must be paid by the
28    employee  before  the  retirement annuity may become payable.
29    If there is no such lump sum payment, or if it is  less  than
30    the  contribution  required under this Section the member may
31    either pay the  entire  contribution  before  the  retirement
32    annuity  becomes  payable,  or  may  instead  make an initial
33    payment before the retirement annuity becomes payable,  equal
34    to  the  net  amount  of the lump sum payment for accumulated
 
                            -14-               LRB9203114LDpr
 1    vacation, sick leave and personal leave (or so much of it  as
 2    does  not  exceed the contribution limitations of Section 415
 3    of the Internal Revenue Code of 1986), and have the remaining
 4    amount due deducted from the retirement annuity in  24  equal
 5    monthly  installments  beginning in January of 1992 or in the
 6    month in which the retirement annuity takes effect, whichever
 7    is later.
 8        However, if the net amount of the lump  sum  payment  for
 9    accumulated vacation, sick leave and personal leave equals or
10    exceeds the contribution required under this Section, but the
11    required  contribution  exceeds  an  applicable  contribution
12    limitation  contained  in Section 415 of the Internal Revenue
13    Code of 1986, then the amount of the contribution  in  excess
14    of  the  Section  415 limitation shall instead be paid by the
15    annuitant in January of 1992 or in the  month  in  which  the
16    retirement annuity takes effect, whichever is later.  If this
17    additional  amount  is  not  paid as required, the retirement
18    annuity shall be suspended until the required contribution is
19    received.
20        (d)  In the event that the age enhancement or  creditable
21    service  received  under this Section result in  a retirement
22    benefit  that  exceeds  any  applicable  benefit   limitation
23    contained  in  Section  415  of  the Internal Revenue Code of
24    1986, the amount of the retirement benefit that  exceeds  the
25    Section  415  limitation  shall not be paid for any period to
26    which the limitation is applicable.  If no contributions  are
27    otherwise  due  in 1992 and 1993 under subsection (c) from an
28    annuitant whose retirement benefits are subject to limitation
29    under this subsection, then 10% of the contribution otherwise
30    required  under  subsection  (c)  to  be  paid   before   the
31    retirement   annuity   becomes   payable   shall  instead  be
32    contributed to the System by  the  annuitant  in  January  of
33    1993.
34        (e)  In order to ensure that the public health and safety
 
                            -15-               LRB9203114LDpr
 1    are  not  jeopardized by the simultaneous retirement of large
 2    numbers of critical personnel, the Director of  State  Police
 3    (for  State  police  officers  under  the Department of State
 4    Police) and the Director of Corrections (for  security  staff
 5    at  adult  and  juvenile institutions under the Department of
 6    Corrections) may extend the January 1, 1992 deadline for  the
 7    effective   date  of  a  retirement  annuity  established  in
 8    subdivision (a)(4) of this Section to a date not  later  than
 9    May  1,  1992, by so notifying the System in writing no later
10    than December 31, 1991.
11        In order to ensure that the efficient  operation  of  the
12    courts  of  this State is not jeopardized by the simultaneous
13    retirement of large numbers of  court  reporters,  the  Chief
14    Justice of the Illinois Supreme Court may, for official court
15    reporters  employed  in  the courts of this State, extend the
16    January  1,  1992  deadline  for  the  effective  date  of  a
17    retirement annuity established in subdivision (a)(4) of  this
18    Section to a date not later than May 1, 1992, by so notifying
19    the System in writing no later than December 31, 1991.
20        (f)  Notwithstanding Section 14-111, an annuitant who has
21    received any age enhancement or creditable service under this
22    Section  and  who  reenters  service under this Article other
23    than as a temporary employee shall thereby forfeit  such  age
24    enhancement  and creditable service, and become entitled to a
25    refund of the contributions made pursuant to this Section.
26    (Source: P.A. 87-14.)

27        (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3)
28        Sec. 16-133.3.  Early  retirement  incentives  for  State
29    employees.
30        (a)  To  be  eligible  for  the benefits provided in this
31    Section, a person must:
32             (1)  be a member of this  System  who,  on  any  day
33        during December, 2001, is (i) in active payroll status as
 
                            -16-               LRB9203114LDpr
 1        a  full-time teacher employed by a department, or (ii) on
 2        layoff status from  such  a  position  with  a  right  of
 3        re-employment  or recall to service, or (iii) receiving a
 4        disability benefit under Section 16-149 or 16-149.1,  but
 5        only  if  the  member has not been receiving that benefit
 6        for a continuous period of more than 2 years  as  of  the
 7        date of application;
 8             (2)  have  never  previously  received  a retirement
 9        annuity under this Article or Article 2, 14, 15,  17,  or
10        18;
11             (3)  file  with  the  Board  before  June 1, 2002, a
12        written application requesting the benefits  provided  in
13        this Section;
14             (4)  establish  eligibility  to receive a retirement
15        annuity under this Article (for  which  purpose  any  age
16        enhancement  or  creditable  service  received under this
17        Section may be used) by the earlier of July  1,  2002  or
18        the  date  the  retirement  annuity  begins, and elect to
19        receive the retirement annuity beginning no earlier  than
20        January  1,  2002  and no later than July 1, 2002 (or the
21        date established under subsection (d) if applicable);
22             (5)  have attained age 50 (without the  use  of  any
23        age  enhancement received under this Section) by the date
24        of commencement of the annuity; and
25             (6)  by the date of  commencement  of  the  annuity,
26        have  at  least  5  years  of service credit earned while
27        participating in the System as a teacher  employed  by  a
28        department.
29        For  the  purposes  of this Section, "department" means a
30    department as defined in Section  14-103.04  that  employs  a
31    teacher as defined in this Article.
32        A   person  who  has  established  additional  creditable
33    service under any other early  retirement  incentive  program
34    under this Code is not eligible to participate in the program
 
                            -17-               LRB9203114LDpr
 1    of   early   retirement  incentives  established  under  this
 2    Section.
 3        (b)  An eligible person may establish up to  5  years  of
 4    creditable  service  under this Article, in increments of one
 5    month, by making the contributions  specified  in  subsection
 6    (c).   In  addition,  for  each  month  of creditable service
 7    established under this Section, a person's age at  retirement
 8    shall be deemed to be one month older than it actually is.
 9        The creditable service established under this Section may
10    be   used  for  all  purposes  under  this  Article  and  the
11    Retirement Systems Reciprocal Act, except for the computation
12    of final average  salary,  the  determination  of  salary  or
13    compensation  under this Article or any other Article of this
14    Code,  or  the  determination  of  eligibility  for  or   the
15    computation of benefits under Section 16-133.2.
16        The age enhancement established under this Section may be
17    used   for   all   purposes  under  this  Article  (including
18    calculation of a proportionate annuity payable by this System
19    under the Retirement  Systems  Reciprocal  Act),  except  for
20    purposes  of a retirement annuity under Section 16-133(a)(A),
21    a reversionary annuity under  Section  16-136,  the  required
22    distributions  under  Section 16-142.3, and the determination
23    of eligibility for  or  the  computation  of  benefits  under
24    Section  16-133.2.   Age  enhancement  established under this
25    Section may be used in  determining  benefits  payable  under
26    Article   14  of  this  Code  under  the  Retirement  Systems
27    Reciprocal  Act;  age  enhancement  established  under   this
28    Section  shall  not  be  used in determining benefits payable
29    under other  Articles  of  this  Code  under  the  Retirement
30    Systems Reciprocal Act.
31        (c)  For  all  creditable  service established under this
32    Section,  a  person  must  pay  to  the  System  an  employee
33    contribution to be determined by the  System,  based  on  the
34    member's  rate  of  compensation  on November 1, 2001 (or the
 
                            -18-               LRB9203114LDpr
 1    last date before November 1, 2001 for which  a  rate  can  be
 2    determined)  and one-half of the retirement contribution rate
 3    in effect for members on November 1, 2001.
 4        If the member receives a lump sum payment for accumulated
 5    vacation, sick leave and personal leave upon withdrawal  from
 6    service,  and  the  net amount of that lump sum payment is at
 7    least as great as the amount  of  the  contribution  required
 8    under  this  Section, the entire contribution must be paid by
 9    the  employee  before  the  retirement  annuity  may   become
10    payable.   If  there is no such lump sum payment, or if it is
11    less than the contribution required under this  Section,  the
12    member  may  either  pay  the  entire contribution before the
13    retirement annuity becomes payable or instead make an initial
14    payment before the retirement annuity becomes payable,  equal
15    to  the  net  amount  of the lump sum payment for accumulated
16    vacation, sick  leave,  and  personal  leave,  and  have  the
17    remaining  amount due deducted from the retirement annuity in
18    24 equal monthly installments beginning in the month in which
19    the  retirement   annuity   takes   effect.    The   required
20    contribution   may  be  paid  as  a  pre-tax  deduction  from
21    earnings, but only if the required contribution is less  than
22    the  net  amount  of  the  lump  sum  payment for accumulated
23    vacation, sick leave, and personal leave.
24        (d)  In order to ensure that the efficient  operation  of
25    State  government  is  not  jeopardized  by  the simultaneous
26    retirement of large numbers of key personnel, the director or
27    other head of a department may, for  key  employees  of  that
28    department,   extend  the  July  1,  2002  deadline  for  the
29    effective  date  of  a  retirement  annuity  established   in
30    subdivision  (a)(4)  of this Section to a date not later than
31    January 1, 2003 by so notifying the System in writing  before
32    July 1, 2002.
33        (e)  An annuitant who has received any age enhancement or
34    creditable  service  under  this  Section  and  who  reenters
 
                            -19-               LRB9203114LDpr
 1    contributing  service  under this Article or Article 14 shall
 2    thereby forfeit that age enhancement and creditable  service,
 3    and  become  entitled  to  a refund of the contributions made
 4    pursuant to this Section.
 5        (f)  For the sole purpose of determining eligibility  for
 6    the  automatic  annual  increase  in retirement annuity under
 7    Section 16-133.1, an annuitant who  is  receiving  any  early
 8    retirement  incentive under this Section and whose retirement
 9    annuity begins on or before July 1, 2002 shall be  deemed  to
10    have  retired  on  January  1, 2002, regardless of the actual
11    date of retirement.
12        (g)  The  System  shall  determine  the  amount  of   the
13    increase  in  unfunded  accrued  liability resulting from the
14    granting of early retirement incentives  under  this  Section
15    and  shall report that amount to the Governor and the Pension
16    Laws Commission on or before April 1, 2003.  The increase  in
17    liability  reported  under  this  subsection (g) shall not be
18    included  in  the   calculation   of   the   required   State
19    contribution under Section 16-158.
20        (h)  The  System shall determine the amount of the annual
21    State  contribution  necessary  to  amortize   on   a   level
22    dollar-payment  basis,  over  a  period  of  6  years at 8.5%
23    interest,  compounded  annually,  an  amount  equal  to   the
24    increase  in  unfunded  accrued  liability  determined  under
25    subsection  (g)  minus  $1,000,000.  The System shall certify
26    the amount of this annual State contribution to the Governor,
27    the State Comptroller, the Bureau  of  the  Budget,  and  the
28    Pension Laws Commission on or before April 1, 2003.
29        In addition to the contributions otherwise required under
30    this  Article,  the  State  shall  appropriate and pay to the
31    System (1) an amount equal to $1,000,000 in State fiscal year
32    2003 and (2) in each of State fiscal years 2004 through 2009,
33    an amount equal to the annual State contribution certified by
34    the System under this subsection (h).
 
                            -20-               LRB9203114LDpr
 1        (i)  The Pension  Laws  Commission  shall  determine  and
 2    report  to the General Assembly, on or before October 1, 2003
 3    and annually thereafter through the year 2009,  its  estimate
 4    of  (1)  the  annual  amount  of payroll savings likely to be
 5    realized by the State as a result of the early retirement  of
 6    persons  receiving  early  retirement  incentives  under this
 7    Section and (2) the net annual savings or cost to  the  State
 8    from the program of early retirement incentives created under
 9    this Section.
10        The   System,   the   Department  of  Central  Management
11    Services, the Bureau of the Budget, and all other departments
12    shall provide to  the  Commission  any  assistance  that  the
13    Commission may request with respect to its reports under this
14    Section.   The  Commission may require departments to provide
15    it with any information that it  deems  necessary  or  useful
16    with  respect  to  its  reports under this Section, including
17    without limitation information about (1) the  final  earnings
18    of   former  department  employees  who  elected  to  receive
19    benefits under this Section,  (2)  the  earnings  of  current
20    department employees holding the positions vacated by persons
21    who  elected  to receive benefits under this Section, and (3)
22    positions vacated by persons who elected to receive  benefits
23    under this Section that have not yet been refilled.
24        (j)  It  is  the  purpose  of  this Section to enable the
25    State to  realize  savings  in  payroll  costs  by  replacing
26    certain  highly-compensated employees with employees who have
27    less seniority and are therefore, on the average, less highly
28    compensated.  To this end, in  State  fiscal  year  2004  the
29    General  Assembly  shall  not  fund  the positions vacated by
30    persons receiving  early  retirement  incentives  under  this
31    Section  at more than 85% of the rate of compensation payable
32    to those persons at the time of their retirement.
33        (k)  The changes made to this Section by this  amendatory
34    Act  of the 92nd General Assembly do not apply to persons who
 
                            -21-               LRB9203114LDpr
 1    retired under this Section on or before May 1, 1992.
 2        (a)  To be eligible for the  benefits  provided  in  this
 3    Section, a member must:
 4             (1)  be  a  member  of  this  System who, on any day
 5        during May, 1991, is (i) in active payroll  status  as  a
 6        full-time   teacher   employed   by   the  Department  of
 7        Rehabilitation Services, the Department  of  Corrections,
 8        the   Department   of  Mental  Health  and  Developmental
 9        Disabilities, the  Teachers'  Retirement  System  of  the
10        State  of  Illinois, the State Board of Education, or the
11        Illinois Purchased Care Review Board, or (ii)  on  layoff
12        status from such a position with a right of re-employment
13        or recall to service, or (iii) on a leave of absence from
14        such  a position, but only if the member on leave has not
15        been receiving benefits under Section 16-149 or  16-149.1
16        for a continuous period of 2 years or more as of the date
17        of application;
18             (2)  have  never  previously  received  a retirement
19        annuity under this Article or Article 14, 15 or 17;
20             (3)  file with the Board before December 1, 1991,  a
21        written  application  requesting the benefits provided in
22        this Section;
23             (4)  be eligible no later than January 1,  1992,  to
24        receive  a  retirement  annuity  under  this Article (for
25        which purpose any age enhancement or  creditable  service
26        received  under  this  Section  may be used) and elect to
27        receive the retirement annuity beginning not earlier than
28        the first day of the month following the month  in  which
29        this  amendatory  Act of 1991 takes effect, and not later
30        than January 1, 1992;
31             (5)  have attained age 50 (without the  use  of  any
32        age  enhancement received under this Section) by December
33        31, 1991;
34             (6)  have at least 5  years  of  creditable  service
 
                            -22-               LRB9203114LDpr
 1        under  this  System  or  any of the participating systems
 2        under the Retirement Systems Reciprocal Act (without  the
 3        use   of  any  creditable  service  received  under  this
 4        Section) by the effective date of the retirement annuity;
 5        and
 6             (7)  have  paid  all  applicable  contributions   as
 7        required   by   this  Section;  however,  the  date  such
 8        contributions are received by the  System  shall  not  be
 9        considered   in   determining   the   effective  date  of
10        retirement.
11        (b)  An eligible person may establish up to  5  years  of
12    creditable   service   under   this  Article  by  making  the
13    contributions specified in subsection (c).  In addition,  for
14    each  period  of  creditable  service  established under this
15    Section a person shall have his  or  her  age  at  retirement
16    deemed enhanced by an equivalent period.
17        The creditable service established under this Section may
18    be   used  for  all  purposes  under  this  Article  and  the
19    Retirement Systems Reciprocal Act, except for the computation
20    of final average  salary,  the  determination  of  salary  or
21    compensation  under this or any other Article of the Code, or
22    the determination of eligibility for and the  computation  of
23    benefits under Section 16-133.2 of this Article.
24        The age enhancement established under this Section may be
25    used   for   all   purposes  under  this  Article  (including
26    calculation of a proportionate annuity payable by this System
27    under the Retirement  Systems  Reciprocal  Act),  except  for
28    purposes  of a reversionary annuity under Section 16-136, the
29    retirement annuity under Section 16-133(a)(A),  the  required
30    distributions  under  Section 16-142.3, and the determination
31    of eligibility for and  the  computation  of  benefits  under
32    Section  16-133.2  of this Article.  However, age enhancement
33    established  under  this  Section  shall  not  be   used   in
34    determining  benefits  payable  under  other Articles of this
 
                            -23-               LRB9203114LDpr
 1    Code under the Retirement Systems Reciprocal Act.
 2        (c)  For all creditable service  established  under  this
 3    Section,  a  member  must  pay  to  the  System  an  employee
 4    contribution  consisting of 4% of the member's highest annual
 5    salary rate used in the determination of the  average  salary
 6    for  retirement  annuity  purposes  for  each year creditable
 7    service has been increased under this Section.
 8        If the member receives a lump sum payment for accumulated
 9    vacation, sick leave and personal leave upon withdrawal  from
10    service,  and  the  net amount of that lump sum payment is at
11    least as great as the amount  of  the  contribution  required
12    under  this  Section, the entire contribution must be paid by
13    the  employee  before  the  retirement  annuity  may   become
14    payable.   If  there is no such lump sum payment, or if it is
15    less than the contribution required under this  Section,  the
16    member  may  either  pay  the  entire contribution before the
17    retirement annuity becomes payable, or may  instead  make  an
18    initial   payment   before  the  retirement  annuity  becomes
19    payable, equal to the net amount of the lump sum payment  for
20    accumulated vacation, sick leave and personal leave, and have
21    the remaining amount due deducted from the retirement annuity
22    in  24  equal  monthly  installments  beginning in January of
23    1992.
24        (d)  An annuitant who has received any age enhancement or
25    creditable service  under  this  Section  and  who  re-enters
26    contributing  service under this Article or Article 14, 15 or
27    17, shall thereby forfeit such age enhancement and creditable
28    service,  and  upon  re-retirement  the  annuity   shall   be
29    recomputed.   Upon  forfeiting  creditable service under this
30    subsection, a person shall be entitled to  a  refund  of  the
31    contribution paid under this Section.
32    (Source: P.A. 89-21, eff. 7-1-95.)

33        Section   15.    The   State   Pension  Funds  Continuing
 
                            -24-               LRB9203114LDpr
 1    Appropriation  Act  is  amended  by  adding  Section  1.6  as
 2    follows:

 3        (40 ILCS 15/1.6 new)
 4        Sec. 1.6. Appropriations for early retirement programs.
 5        (a)  There  is  hereby  appropriated  from  the   General
 6    Revenue  Fund  to  the  State Employees' Retirement System of
 7    Illinois, on a continuing  annual  basis  in  each  of  State
 8    fiscal  years 2003 through 2009, the amount, if any, by which
 9    the total available amount of  all  other  appropriations  to
10    that retirement system for the payment of State contributions
11    under  subsection  (h)  of  Section  14-108.3 of the Illinois
12    Pension Code in that fiscal  year  is  less  than  the  total
13    amount  of  State contributions required for that fiscal year
14    under that subsection (h).
15        (b)  There  is  hereby  appropriated  from  the   General
16    Revenue  Fund to the Teachers' Retirement System of the State
17    of Illinois, on a continuing annual basis in  each  of  State
18    fiscal  years 2003 through 2009, the amount, if any, by which
19    the total available amount of  all  other  appropriations  to
20    that retirement system for the payment of State contributions
21    under  subsection  (h)  of  Section  16-133.3 of the Illinois
22    Pension Code in that fiscal  year  is  less  than  the  total
23    amount  of  State contributions required for that fiscal year
24    under that subsection (h).

25        Section 99. Effective date.  This Act takes  effect  upon
26    becoming law.

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