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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
92_HB2671enr HB2671 Enrolled LRB9202384EGmg 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 Section 15a as follows: 6 (30 ILCS 105/15a) (from Ch. 127, par. 151a) 7 Sec. 15a. Contractual services. The item "contractual 8 services", when used in an appropriation act, means and 9 includes: 10 (a) Expenditures incident to the current conduct 11 and operation of an office, department, board, 12 commission, institution or agency for postage and postal 13 charges, surety bond premiums, publications, 14 subscriptions, office conveniences and services, 15 exclusive of commodities as herein defined; 16 (b) Expenditures for rental of property or 17 equipment, repair or maintenance of property or equipment 18 including related supplies, equipment, materials, 19 services, replacement fixtures and repair parts, utility 20 services, professional or technical services, moving 21 expenses incident to a new State employment, and 22 transportation charges exclusive of "travel" as herein 23 defined; 24 (c) Expenditures for the rental of lodgings in 25 Springfield, Illinois and for the payment of utilities 26 used in connection with such lodgings for all elected 27 State officials, who are required by Section 1, Article V 28 of the Constitution of the State of Illinois to reside at 29 the seat of government during their term of office; 30 (d) Expenditures pursuant to multi-year lease, 31 lease-purchase or installment purchase contracts for HB2671 Enrolled -2- LRB9202384EGmg 1 duplicating equipment authorized by Section 5.1 of the 2 Illinois Purchasing Act; 3 (e) Expenditures of $5,000 or less per project for 4 improvements to real property which, except for the 5 operation of this Section, would be classified as 6 "permanent improvements" as defined in Section 21; 7 (f) Expenditures pursuant to multi-year lease, 8 lease-purchase or installment purchase contracts for 9 land, permanent improvements or fixtures. 10 The item "contractual services" does not, however, 11 include any expenditures included in "operation of automotive 12 equipment" as defined in Section 24.2. 13 The item "contractual services" does not include any 14 expenditures for professional, technical, or other services 15 performed for a State agency under a contract executed after 16 July 1,the effective date of this amendatory Act of1992 by 17 a person who was formerly employed by that agency and has 18 received any early retirement incentive under Section 19 14-108.3 or 16-133.3 of the Illinois Pension Code based on 20 retirement before 1993, unless the official or employee 21 executing the contract on behalf of the agency has certified 22 that the person performing the services either (i) possesses 23 unique expertise, or (ii) is essential to the operation of 24 the agency. This certification must be filed with the Office 25 of the Auditor General prior to the execution of the 26 contract, and shall be made available by that Office for 27 public inspection and copying. The item "contractual 28 services" does not include any expenditures for professional, 29 technical, or other services performed for a State agency 30 under a contract executed after the effective date of this 31 amendatory Act of the 92nd General Assembly by a person who 32 has received any early retirement incentive under Section 33 14-108.3 or 16-133.3 of the Illinois Pension Code based on 34 retirement in 2002 or later. A contract not payable from the HB2671 Enrolled -3- LRB9202384EGmg 1 contractual services item because of this paragraph shall not 2 be payable from any other item of appropriation. For the 3 purposes of this paragraph, the term "agency" includes all 4 offices, boards, commissions, departments, agencies, and 5 institutions of State government. 6 (Source: P.A. 91-357, eff. 7-29-99.) 7 Section 10. The Illinois Pension Code is amended by 8 changing Sections 14-105, 14-108.3 and 16-133.3 as follows: 9 (40 ILCS 5/14-105) (from Ch. 108 1/2, par. 14-105) 10 Sec. 14-105. Service credit for which contributions are 11 not required. 12 (a) Each employee in service on December 31, 1943, or 13 then on leave of absence not in conflict with Civil Service 14 rules, if such leave had not extended for more than one year 15 continuously, or who is otherwise entitled to prior service 16 credit, who becomes a member shall file with the board on a 17 form supplied by it, a detailed statement of all service 18 rendered prior to January 1, 1944, for which credit is 19 claimed. 20 Upon verification thereof, the board shall issue a prior 21 service certificate certifying length of prior service. A 22 prior service certificate shall be conclusive so long as 23 membership continues, provided, that a member may, within one 24 year from the date of original issuance of the certificate or 25 modification thereof, request the board to modify or correct 26 the certificate. 27 When membership ceases, a prior service certificate shall 28 become void, and shall be revived only under the conditions 29 specified in this Article. 30 In the computation of prior service, the following 31 schedule shall govern: 9 months of service or more during any 32 fiscal year constitutes a year of service; 6 to 9 months, 3/4 HB2671 Enrolled -4- LRB9202384EGmg 1 of a year; 3 to 6 months, 1/2 year; less than 3 months shall 2 not be considered. Credit shall not be allowed for any 3 period of absence without compensation or for less than 15 4 days service in any month, nor shall more than one year of 5 service be creditable for all service rendered in any one 6 fiscal year. 7 (b) Any member shall receive credit for military service 8 provided all of the following conditions are met: 9 (1) the member was a State employee within 6 months 10 immediately prior to entry into military service; 11 (2) the member returns as a State employee within 12 15 months after his unconditional discharge other than by 13 dishonorable discharge; and 14 (3) the member establishes creditable service for 15 State employment immediately prior to and following the 16 military service. 17 The total amount of creditable military service for any 18 member during his entire term of service shall not exceed 5 19 years in the aggregate, except that any member who on July 1, 20 1963, had accrued more than 5 years of such credit shall be 21 entitled to the total amount of such accrued credit. 22 (c) Any active member of the System who (1) was earning 23 eligible creditable service under subdivision (b)(12) of 24 Section 14-110 on January 1, 1992, and (2) has at least 17 25 years of creditable service under Article 5, and (3) is 26 eligible to transfer that creditable service to this System 27 under subsection (c) of Section 5-236 of this Code, and (4) 28 applies in writing for transfer of that creditable service to 29 this System within 30 days after the effective date of this 30 amendatory Act of 1993, shall receive eligible creditable 31 service in this System for that creditable service upon 32 receipt by this System of the amounts transferred under 33 Section 5-236. No additional contributions shall be required 34 for the transferred service. HB2671 Enrolled -5- LRB9202384EGmg 1 (d) Any active member of the system who (1) was earning 2 eligible creditable service under subdivision (b)(5) of 3 Section 14-110 on January 1, 1992, and (2) has no more than 7 4 years of creditable service as a municipal conservator of the 5 peace under Article 7, and (3) is eligible to transfer that 6 creditable service to this System under subsection (a) of 7 Section 7-139.7 of this Code, and (4) makes written 8 notification to this System by January 31, 1994, shall 9 receive eligible creditable service in this System for that 10 service upon receipt by this System of the amounts 11 transferred under Section 7-139.7. No additional 12 contributions shall be required for the transferred service. 13 (e) Any member may establish creditable service and 14 earnings credit for a period of voluntary or involuntary 15 furlough, not exceeding 5 days, beginning on or after 16 December 1, 2001 and ending before January 1, 2003, that is 17 utilized as a means of addressing a State fiscal emergency. 18 To receive this credit, the member must apply in writing to 19 the System or the member's employer before July 1, 2005. No 20 additional contribution is required for this credit. 21 (Source: P.A. 87-1265.) 22 (40 ILCS 5/14-108.3) 23 Sec. 14-108.3. Early retirement incentives. 24 (a) To be eligible for the benefits provided in this 25 Section, a person must: 26 (1) be a member of this System who, on any day 27 during June, 2002, is (i) in active payroll status in a 28 position of employment with a department and an active 29 contributor to this System with respect to that 30 employment, and terminates that employment before the 31 retirement annuity under this Article begins, or (ii) on 32 layoff status from such a position with a right of 33 re-employment or recall to service, or (iii) receiving HB2671 Enrolled -6- LRB9202384EGmg 1 benefits under Section 14-123, 14-123.1 or 14-124, but 2 only if the member has not been receiving those benefits 3 for a continuous period of more than 2 years as of the 4 date of application; 5 (2) not have received any retirement annuity under 6 this Article beginning earlier than August 1, 2002; 7 (3) file with the Board on or before December 31, 8 2002 a written application requesting the benefits 9 provided in this Section; 10 (4) terminate employment under this Article no 11 later than December 31, 2002 (or the date established 12 under subsection (d), if applicable); 13 (5) by the date of termination of service, have at 14 least 8 years of creditable service under this Article, 15 without the use of any creditable service established 16 under this Section; 17 (6) by the date of termination of service, have at 18 least 5 years of membership service earned while an 19 employee under this Article, which may include military 20 service for which credit is established under Section 21 14-105(b), service during the qualifying period for which 22 credit is established under Section 14-104(a), and 23 service for which credit has been established by repaying 24 a refund under Section 14-130, but shall not include 25 service for which any other optional service credit has 26 been established; and 27 (7) not receive any early retirement benefit under 28 Section 16-133.3 of this Code. 29 (b) An eligible person may establish up to 5 years of 30 creditable service under this Article, in increments of one 31 month, by making the contributions specified in subsection 32 (c). In addition, for each month of creditable service 33 established under this Section, a person's age at retirement 34 shall be deemed to be one month older than it actually is. HB2671 Enrolled -7- LRB9202384EGmg 1 The creditable service established under this Section may 2 be used for all purposes under this Article and the 3 Retirement Systems Reciprocal Act, except for the computation 4 of final average compensation under Section 14-103.12 or the 5 determination of compensation under this or any other Article 6 of this Code. 7 The age enhancement established under this Section may 8 not be used to enable any person to begin receiving a 9 retirement annuity calculated under Section 14-110 before 10 actually attaining age 50 (without any age enhancement under 11 this Section). The age enhancement established under this 12 Section may be used for all other purposes under this Article 13 (including calculation of a proportionate annuity payable by 14 this System under the Retirement Systems Reciprocal Act), 15 except for purposes of the level income option in Section 16 14-112, the reversionary annuity under Section 14-113, and 17 the required distributions under Section 14-121.1. 18 The age enhancement established under this Section may be 19 used in determining benefits payable under Article 16 of this 20 Code under the Retirement Systems Reciprocal Act, if the 21 person has at least 5 years of service credit in the Article 22 16 system that was earned while participating in that system 23 as a teacher (as defined in Section 16-106) employed by a 24 department (as defined in Section 14-103.04). Age 25 enhancement established under this Section shall not 26 otherwise be used in determining benefits payable under other 27 Articles of this Code under the Retirement Systems Reciprocal 28 Act. 29 (c) For all creditable service established under this 30 Section, a person must pay to the System an employee 31 contribution to be determined by the System, based on the 32 member's rate of compensation on June 1, 2002 (or the last 33 date before June 1, 2002 for which a rate can be determined) 34 and the retirement contribution rate in effect on June 1, HB2671 Enrolled -8- LRB9202384EGmg 1 2002 for the member (or for members with the same social 2 security and alternative formula status as the member). 3 If the member receives a lump sum payment for accumulated 4 vacation, sick leave and personal leave upon withdrawal from 5 service, and the net amount of that lump sum payment is at 6 least as great as the amount of the contribution required 7 under this Section, the entire contribution must be paid by 8 the employee by payroll deduction. If there is no such lump 9 sum payment, or if it is less than the contribution required 10 under this Section, the member shall make an initial payment 11 by payroll deduction, equal to the net amount of the lump sum 12 payment for accumulated vacation, sick leave, and personal 13 leave, and have the remaining amount due treated as a 14 reduction from the retirement annuity in 24 equal monthly 15 installments beginning in the month in which the retirement 16 annuity takes effect. The required contribution may be paid 17 as a pre-tax deduction from earnings. For federal and 18 Illinois tax purposes, the monthly amount by which the 19 annuitant's benefit is reduced shall not be treated as a 20 contribution by the annuitant, but rather as a reduction of 21 the annuitant's monthly benefit. 22 (c-5) The reduction in retirement annuity provided in 23 subsection (c) of Section 14-108 does not apply to the 24 annuity of a person who retires under this Section. A person 25 who has received any age enhancement or creditable service 26 under this Section may begin to receive an unreduced 27 retirement annuity upon attainment of age 55 with at least 25 28 years of creditable service (including any age enhancement 29 and creditable service established under this Section). 30 (d) In order to ensure that the efficient operation of 31 State government is not jeopardized by the simultaneous 32 retirement of large numbers of key personnel, the director or 33 other head of a department may, for key employees of that 34 department, extend the December 31, 2002 deadline for HB2671 Enrolled -9- LRB9202384EGmg 1 terminating employment under this Article established in 2 subdivision (a)(4) of this Section to a date not later than 3 April 30, 2003 by so notifying the System in writing by 4 December 31, 2002. 5 (e) Notwithstanding Section 14-111, a person who has 6 received any age enhancement or creditable service under this 7 Section and who reenters service under this Article (or as an 8 employee of a department under Article 16) other than as a 9 temporary employee thereby forfeits that age enhancement and 10 creditable service and is entitled to a refund of the 11 contributions made pursuant to this Section. 12 (f) 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 November 15, 2003. The increase 17 in liability reported under this subsection (f) shall not be 18 included in the calculation of the required State 19 contribution under Section 14-131. 20 (g) 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 10 years at 8.5% 23 interest, compounded annually, an amount equal to the 24 increase in unfunded accrued liability determined under 25 subsection (f) minus $70,000,000. 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 November 15, 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 $70,000,000 in State fiscal 32 year 2004 and (2) in each of State fiscal years 2005 through 33 2013, an amount equal to the annual State contribution 34 certified by the System under this subsection (g). HB2671 Enrolled -10- LRB9202384EGmg 1 (h) The Pension Laws Commission shall determine and 2 report to the General Assembly, on or before January 1, 2004 3 and annually thereafter through the year 2013, 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 (i) The changes made to this Section by this amendatory 25 Act of the 92nd General Assembly do not apply to persons who 26 retired under this Section on or before May 1, 1992. 27(a) To be eligible for the benefits provided in this28Section, a person must:29(1) be a member of this System who, on any day30during May, 1991, is (i) in active payroll status in a31position of employment with a department, or (ii) on32layoff status from such a position with a right of33re-employment or recall to service, or (iii) on leave of34absence from such a position, but only if the member onHB2671 Enrolled -11- LRB9202384EGmg 1leave has not been receiving benefits under Section214-123, 14-123.1 or 14-124 for a continuous period of 23years or more as of the date of application;4(2) have not retired under this Article;5(3) file with the Board before December 1, 1991, a6written application requesting the benefits provided in7this Section;8(4) establish eligibility to receive a retirement9annuity under this Article (for which purpose any age10enhancement or creditable service received under this11Section may be used) and elect to receive the retirement12annuity beginning not earlier than the first day of the13month following the month in which this amendatory Act of141991 takes effect, and not later than January 1, 1992 (or15the date established under subsection (e) if applicable);16(5) have attained age 50 or accumulated 30 or more17years of creditable service (without the use of any age18enhancement or creditable service received under this19Section) by December 31, 1991.20(b) An eligible person may establish up to 5 years of21creditable service under this Article, in increments of one22month, by making the contributions specified in subsection23(c). In addition, for each month of creditable service24established under this Section, a person's age at retirement25shall be deemed to be one month older than it actually is.26The creditable service established under this Section may27be used for all purposes under this Article and the28Retirement Systems Reciprocal Act, except for the computation29of final average compensation under Section 14-103.12, or the30determination of compensation under this or any other Article31of this Code.32The age enhancement established under this Section may be33used for all purposes under this Article (including34calculation of a proportionate annuity payable by this SystemHB2671 Enrolled -12- LRB9202384EGmg 1under the Retirement Systems Reciprocal Act), except for2purposes of the level income option in Section 14-112, the3reversionary annuity under Section 14-113, and the required4distributions under Section 14-121.1. However, age5enhancement established under this Section shall not be used6in determining benefits payable under other Articles of this7Code under the Retirement Systems Reciprocal Act.8(c) For all creditable service established under this9Section, a person must pay to the System an employee10contribution to be determined by the System, based on the11member's final rate of compensation and one-half of the12retirement contribution rate in effect for the member on the13date of withdrawal.14If the member receives a lump sum payment for accumulated15vacation, sick leave and personal leave upon withdrawal from16service, and the net amount of that lump sum payment is at17least as great as the amount of the contribution required18under this Section, the entire contribution (or so much of it19as does not exceed the contribution limitations of Section20415 of the Internal Revenue Code of 1986) must be paid by the21employee before the retirement annuity may become payable.22If there is no such lump sum payment, or if it is less than23the contribution required under this Section the member may24either pay the entire contribution before the retirement25annuity becomes payable, or may instead make an initial26payment before the retirement annuity becomes payable, equal27to the net amount of the lump sum payment for accumulated28vacation, sick leave and personal leave (or so much of it as29does not exceed the contribution limitations of Section 41530of the Internal Revenue Code of 1986), and have the remaining31amount due deducted from the retirement annuity in 24 equal32monthly installments beginning in January of 1992 or in the33month in which the retirement annuity takes effect, whichever34is later.HB2671 Enrolled -13- LRB9202384EGmg 1However, if the net amount of the lump sum payment for2accumulated vacation, sick leave and personal leave equals or3exceeds the contribution required under this Section, but the4required contribution exceeds an applicable contribution5limitation contained in Section 415 of the Internal Revenue6Code of 1986, then the amount of the contribution in excess7of the Section 415 limitation shall instead be paid by the8annuitant in January of 1992 or in the month in which the9retirement annuity takes effect, whichever is later. If this10additional amount is not paid as required, the retirement11annuity shall be suspended until the required contribution is12received.13(d) In the event that the age enhancement or creditable14service received under this Section result in a retirement15benefit that exceeds any applicable benefit limitation16contained in Section 415 of the Internal Revenue Code of171986, the amount of the retirement benefit that exceeds the18Section 415 limitation shall not be paid for any period to19which the limitation is applicable. If no contributions are20otherwise due in 1992 and 1993 under subsection (c) from an21annuitant whose retirement benefits are subject to limitation22under this subsection, then 10% of the contribution otherwise23required under subsection (c) to be paid before the24retirement annuity becomes payable shall instead be25contributed to the System by the annuitant in January of261993.27(e) In order to ensure that the public health and safety28are not jeopardized by the simultaneous retirement of large29numbers of critical personnel, the Director of State Police30(for State police officers under the Department of State31Police) and the Director of Corrections (for security staff32at adult and juvenile institutions under the Department of33Corrections) may extend the January 1, 1992 deadline for the34effective date of a retirement annuity established inHB2671 Enrolled -14- LRB9202384EGmg 1subdivision (a)(4) of this Section to a date not later than2May 1, 1992, by so notifying the System in writing no later3than December 31, 1991.4In order to ensure that the efficient operation of the5courts of this State is not jeopardized by the simultaneous6retirement of large numbers of court reporters, the Chief7Justice of the Illinois Supreme Court may, for official court8reporters employed in the courts of this State, extend the9January 1, 1992 deadline for the effective date of a10retirement annuity established in subdivision (a)(4) of this11Section to a date not later than May 1, 1992, by so notifying12the System in writing no later than December 31, 1991.13(f) Notwithstanding Section 14-111, an annuitant who has14received any age enhancement or creditable service under this15Section and who reenters service under this Article other16than as a temporary employee shall thereby forfeit such age17enhancement and creditable service, and become entitled to a18refund of the contributions made pursuant to this Section.19 (Source: P.A. 87-14.) 20 (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3) 21 Sec. 16-133.3. Early retirement incentives for State 22 employees. 23 (a) To be eligible for the benefits provided in this 24 Section, a person must: 25 (1) be a member of this System who, on any day 26 during June, 2002, is (i) in active payroll status as a 27 full-time teacher employed by a department and an active 28 contributor to this System with respect to that 29 employment, or (ii) on layoff status from such a position 30 with a right of re-employment or recall to service, or 31 (iii) receiving a disability benefit under Section 16-149 32 or 16-149.1, but only if the member has not been 33 receiving that benefit for a continuous period of more HB2671 Enrolled -15- LRB9202384EGmg 1 than 2 years as of the date of application; 2 (2) not have received any retirement annuity under 3 this Article beginning earlier than August 1, 2002; 4 (3) file with the Board on or before December 31, 5 2002 a written application requesting the benefits 6 provided in this Section; 7 (4) terminate employment under this Article no 8 later than December 31, 2002 (or the date established 9 under subsection (d), if applicable); 10 (5) by the date of termination of service, have at 11 least 8 years of creditable service under this Article, 12 without the use of any creditable service established 13 under this Section; 14 (6) by the date of termination of service, have at 15 least 5 years of service credit earned while 16 participating in the System as a teacher employed by a 17 department; and 18 (7) not receive any early retirement benefit under 19 Section 14-108.3 of this Code. 20 For the purposes of this Section, "department" means a 21 department as defined in Section 14-103.04 that employs a 22 teacher as defined in this Article. 23 (b) An eligible person may establish up to 5 years of 24 creditable service under this Article by making the 25 contributions specified in subsection (c). In addition, for 26 each period of creditable service established under this 27 Section, a person's age at retirement shall be deemed to be 28 enhanced by an equivalent period. 29 The creditable service established under this Section may 30 be used for all purposes under this Article and the 31 Retirement Systems Reciprocal Act, except for the computation 32 of final average salary, the determination of salary or 33 compensation under this Article or any other Article of this 34 Code, or the determination of eligibility for or the HB2671 Enrolled -16- LRB9202384EGmg 1 computation of benefits under Section 16-133.2. 2 The age enhancement established under this Section may be 3 used for all purposes under this Article (including 4 calculation of a proportionate annuity payable by this System 5 under the Retirement Systems Reciprocal Act), except for 6 purposes of a retirement annuity under Section 16-133(a)(A), 7 a reversionary annuity under Section 16-136, the required 8 distributions under Section 16-142.3, and the determination 9 of eligibility for or the computation of benefits under 10 Section 16-133.2. Age enhancement established under this 11 Section may be used in determining benefits payable under 12 Article 14 of this Code under the Retirement Systems 13 Reciprocal Act (subject to the limitations on the use of age 14 enhancement provided in Section 14-108.3); age enhancement 15 established under this Section shall not be used in 16 determining benefits payable under other Articles of this 17 Code under the Retirement Systems Reciprocal Act. 18 (c) For all creditable service established under this 19 Section, a person must pay to the System an employee 20 contribution to be determined by the System, equal to 9.0% of 21 the member's highest annual salary rate that would be used in 22 the determination of the average salary for retirement 23 annuity purposes if the member retired immediately after 24 withdrawal, for each year of creditable service established 25 under this Section. 26 If the member receives a lump sum payment for accumulated 27 vacation, sick leave, and personal leave upon withdrawal from 28 service, and the net amount of that lump sum payment is at 29 least as great as the amount of the contribution required 30 under this Section, the entire contribution must be paid by 31 the employee by payroll deduction. If there is no such lump 32 sum payment, or if it is less than the contribution required 33 under this Section, the member shall make an initial payment 34 by payroll deduction, equal to the net amount of the lump sum HB2671 Enrolled -17- LRB9202384EGmg 1 payment for accumulated vacation, sick leave, and personal 2 leave, and have the remaining amount due treated as a 3 reduction from the retirement annuity in 24 equal monthly 4 installments beginning in the month in which the retirement 5 annuity takes effect. The required contribution may be paid 6 as a pre-tax deduction from earnings. 7 (d) In order to ensure that the efficient operation of 8 State government is not jeopardized by the simultaneous 9 retirement of large numbers of key personnel, the director or 10 other head of a department may, for key employees of that 11 department, extend the December 31, 2002 deadline for 12 terminating employment under this Article established in 13 subdivision (a)(4) of this Section to a date not later than 14 April 30, 2003 by so notifying the System in writing by 15 December 31, 2002. 16 (e) A person who has received any age enhancement or 17 creditable service under this Section and who reenters 18 contributing service under this Article or Article 14 shall 19 thereby forfeit that age enhancement and creditable service, 20 and become entitled to a refund of the contributions made 21 pursuant to this Section. 22 (f) The System shall determine the amount of the 23 increase in unfunded accrued liability resulting from the 24 granting of early retirement incentives under this Section 25 and shall report that amount to the Governor and the Pension 26 Laws Commission on or before November 15, 2003. The increase 27 in liability reported under this subsection (f) shall not be 28 included in the calculation of the required State 29 contribution under Section 16-158. 30 (g) The System shall determine the amount of the annual 31 State contribution necessary to amortize on a level 32 dollar-payment basis, over a period of 10 years at 8.5% 33 interest, compounded annually, an amount equal to the 34 increase in unfunded accrued liability determined under HB2671 Enrolled -18- LRB9202384EGmg 1 subsection (f) minus $1,000,000. The System shall certify 2 the amount of this annual State contribution to the Governor, 3 the State Comptroller, the Bureau of the Budget, and the 4 Pension Laws Commission on or before November 15, 2003. 5 In addition to the contributions otherwise required under 6 this Article, the State shall appropriate and pay to the 7 System (1) an amount equal to $1,000,000 in State fiscal year 8 2004 and (2) in each of State fiscal years 2005 through 2013, 9 an amount equal to the annual State contribution certified by 10 the System under this subsection (g). 11 (h) The Pension Laws Commission shall determine and 12 report to the General Assembly, on or before January 1, 2004 13 and annually thereafter through the year 2013, its estimate 14 of (1) the annual amount of payroll savings likely to be 15 realized by the State as a result of the early retirement of 16 persons receiving early retirement incentives under this 17 Section and (2) the net annual savings or cost to the State 18 from the program of early retirement incentives created under 19 this Section. 20 The System, the Department of Central Management 21 Services, the Bureau of the Budget, and all other departments 22 shall provide to the Commission any assistance that the 23 Commission may request with respect to its reports under this 24 Section. The Commission may require departments to provide 25 it with any information that it deems necessary or useful 26 with respect to its reports under this Section, including 27 without limitation information about (1) the final earnings 28 of former department employees who elected to receive 29 benefits under this Section, (2) the earnings of current 30 department employees holding the positions vacated by persons 31 who elected to receive benefits under this Section, and (3) 32 positions vacated by persons who elected to receive benefits 33 under this Section that have not yet been refilled. 34 (i) The changes made to this Section by this amendatory HB2671 Enrolled -19- LRB9202384EGmg 1 Act of the 92nd General Assembly do not apply to persons who 2 retired under this Section on or before May 1, 1992. 3(a) To be eligible for the benefits provided in this4Section, a member must:5(1) be a member of this System who, on any day6during May, 1991, is (i) in active payroll status as a7full-time teacher employed by the Department of8Rehabilitation Services, the Department of Corrections,9the Department of Mental Health and Developmental10Disabilities, the Teachers' Retirement System of the11State of Illinois, the State Board of Education, or the12Illinois Purchased Care Review Board, or (ii) on layoff13status from such a position with a right of re-employment14or recall to service, or (iii) on a leave of absence from15such a position, but only if the member on leave has not16been receiving benefits under Section 16-149 or 16-149.117for a continuous period of 2 years or more as of the date18of application;19(2) have never previously received a retirement20annuity under this Article or Article 14, 15 or 17;21(3) file with the Board before December 1, 1991, a22written application requesting the benefits provided in23this Section;24(4) be eligible no later than January 1, 1992, to25receive a retirement annuity under this Article (for26which purpose any age enhancement or creditable service27received under this Section may be used) and elect to28receive the retirement annuity beginning not earlier than29the first day of the month following the month in which30this amendatory Act of 1991 takes effect, and not later31than January 1, 1992;32(5) have attained age 50 (without the use of any33age enhancement received under this Section) by December3431, 1991;HB2671 Enrolled -20- LRB9202384EGmg 1(6) have at least 5 years of creditable service2under this System or any of the participating systems3under the Retirement Systems Reciprocal Act (without the4use of any creditable service received under this5Section) by the effective date of the retirement annuity;6and7(7) have paid all applicable contributions as8required by this Section; however, the date such9contributions are received by the System shall not be10considered in determining the effective date of11retirement.12(b) An eligible person may establish up to 5 years of13creditable service under this Article by making the14contributions specified in subsection (c). In addition, for15each period of creditable service established under this16Section a person shall have his or her age at retirement17deemed enhanced by an equivalent period.18The creditable service established under this Section may19be used for all purposes under this Article and the20Retirement Systems Reciprocal Act, except for the computation21of final average salary, the determination of salary or22compensation under this or any other Article of the Code, or23the determination of eligibility for and the computation of24benefits under Section 16-133.2 of this Article.25The age enhancement established under this Section may be26used for all purposes under this Article (including27calculation of a proportionate annuity payable by this System28under the Retirement Systems Reciprocal Act), except for29purposes of a reversionary annuity under Section 16-136, the30retirement annuity under Section 16-133(a)(A), the required31distributions under Section 16-142.3, and the determination32of eligibility for and the computation of benefits under33Section 16-133.2 of this Article. However, age enhancement34established under this Section shall not be used inHB2671 Enrolled -21- LRB9202384EGmg 1determining benefits payable under other Articles of this2Code under the Retirement Systems Reciprocal Act.3(c) For all creditable service established under this4Section, a member must pay to the System an employee5contribution consisting of 4% of the member's highest annual6salary rate used in the determination of the average salary7for retirement annuity purposes for each year creditable8service has been increased under this Section.9If the member receives a lump sum payment for accumulated10vacation, sick leave and personal leave upon withdrawal from11service, and the net amount of that lump sum payment is at12least as great as the amount of the contribution required13under this Section, the entire contribution must be paid by14the employee before the retirement annuity may become15payable. If there is no such lump sum payment, or if it is16less than the contribution required under this Section, the17member may either pay the entire contribution before the18retirement annuity becomes payable, or may instead make an19initial payment before the retirement annuity becomes20payable, equal to the net amount of the lump sum payment for21accumulated vacation, sick leave and personal leave, and have22the remaining amount due deducted from the retirement annuity23in 24 equal monthly installments beginning in January of241992.25(d) An annuitant who has received any age enhancement or26creditable service under this Section and who re-enters27contributing service under this Article or Article 14, 15 or2817, shall thereby forfeit such age enhancement and creditable29service, and upon re-retirement the annuity shall be30recomputed. Upon forfeiting creditable service under this31subsection, a person shall be entitled to a refund of the32contribution paid under this Section.33 (Source: P.A. 89-21, eff. 7-1-95.) HB2671 Enrolled -22- LRB9202384EGmg 1 Section 15. The State Pension Funds Continuing 2 Appropriation Act is amended by adding Section 1.6 as 3 follows: 4 (40 ILCS 15/1.6 new) 5 Sec. 1.6. Appropriations for early retirement programs. 6 (a) There is hereby appropriated from the General 7 Revenue Fund to the State Employees' Retirement System of 8 Illinois, on a continuing annual basis in each of State 9 fiscal years 2004 through 2013, the amount, if any, by which 10 the total available amount of all other appropriations to 11 that retirement system for the payment of State contributions 12 under subsection (g) of Section 14-108.3 of the Illinois 13 Pension Code in that fiscal year is less than the total 14 amount of State contributions required for that fiscal year 15 under that subsection (g). 16 (b) There is hereby appropriated from the General 17 Revenue Fund to the Teachers' Retirement System of the State 18 of Illinois, on a continuing annual basis in each of State 19 fiscal years 2004 through 2013, the amount, if any, by which 20 the total available amount of all other appropriations to 21 that retirement system for the payment of State contributions 22 under subsection (g) of Section 16-133.3 of the Illinois 23 Pension Code in that fiscal year is less than the total 24 amount of State contributions required for that fiscal year 25 under that subsection (g). 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.