Bill Amendment: IL SB0017 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2017-01-09 - Added as Chief Co-Sponsor Sen. Christine Radogno [SB0017 Detail]
Download: Illinois-2015-SB0017-Senate_Amendment_001.html
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2017-01-09 - Added as Chief Co-Sponsor Sen. Christine Radogno [SB0017 Detail]
Download: Illinois-2015-SB0017-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 17
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2 | AMENDMENT NO. ______. Amend Senate Bill 17 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Public Labor Relations Act is | ||||||
5 | amended by changing Sections 10 and 15 and by adding Section | ||||||
6 | 7.6 as follows:
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7 | (5 ILCS 315/7.6 new) | ||||||
8 | Sec. 7.6. No collective bargaining or interest arbitration | ||||||
9 | regarding certain changes to the Illinois Pension Code. | ||||||
10 | (a) Notwithstanding any other provision of this Act, | ||||||
11 | employers shall not be required to bargain over matters | ||||||
12 | affected by the changes, the impact of the changes, and the | ||||||
13 | implementation of the changes to Article 15, 16, or 17 of the | ||||||
14 | Illinois Pension Code made by this amendatory Act of the 99th | ||||||
15 | General Assembly, which are deemed to be prohibited subjects of | ||||||
16 | bargaining. Notwithstanding any provision of this Act, the |
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1 | changes, impact of the changes, or implementation of the | ||||||
2 | changes to Article 15, 16, or 17 of the Illinois Pension Code | ||||||
3 | made by this amendatory Act of the 99th General Assembly shall | ||||||
4 | not be subject to interest arbitration or any award issued | ||||||
5 | pursuant to interest arbitration. The provisions of this | ||||||
6 | Section shall not apply to an employment contract or collective | ||||||
7 | bargaining agreement that is in effect on the effective date of | ||||||
8 | this amendatory Act of the 99th General Assembly. However, any | ||||||
9 | such contract or agreement that is modified, amended, renewed, | ||||||
10 | or superseded after the effective date of this amendatory Act | ||||||
11 | of the 99th General Assembly shall be subject to the provisions | ||||||
12 | of this Section. Each employer with active employees | ||||||
13 | participating in a retirement system or pension fund | ||||||
14 | established under Article 15, 16, or 17 of the Illinois Pension | ||||||
15 | Code shall comply with and be subject to the provisions of this | ||||||
16 | amendatory Act of the 99th General Assembly. The provisions of | ||||||
17 | this Section shall not apply to the ability of any employer and | ||||||
18 | employee representative to bargain collectively with regard to | ||||||
19 | the pick up of employee contributions pursuant to Section | ||||||
20 | 15-157.1, 16-152.1, 17-130.1, or 17-130.2 of the Illinois | ||||||
21 | Pension Code. | ||||||
22 | (b) Subject to and except for the matters set forth in | ||||||
23 | subsection (a) of this Section that are deemed prohibited | ||||||
24 | subjects of bargaining, nothing in this Section shall be | ||||||
25 | construed as otherwise limiting any of the obligations and | ||||||
26 | requirements applicable to employers under any of the |
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1 | provisions of this Act, including, but not limited to, the | ||||||
2 | requirement to bargain collectively with regard to policy | ||||||
3 | matters directly affecting wages, hours, and terms and | ||||||
4 | conditions of employment as well as the impact thereon upon | ||||||
5 | request by employee representatives. Subject to and except for | ||||||
6 | the matters set forth in subsection (a) of this Section that | ||||||
7 | are deemed prohibited subjects of bargaining, nothing in this | ||||||
8 | Section shall be construed as otherwise limiting any of the | ||||||
9 | rights of employees or employee representatives under the | ||||||
10 | provisions of this Act. | ||||||
11 | (c) In case of any conflict between this Section and any | ||||||
12 | other provisions of this Act or any other law, the provisions | ||||||
13 | of this Section shall control.
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14 | (5 ILCS 315/10) (from Ch. 48, par. 1610)
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15 | Sec. 10. Unfair labor practices.
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16 | (a) It shall be an unfair labor practice
for an employer or | ||||||
17 | its agents:
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18 | (1) to interfere with, restrain or coerce public | ||||||
19 | employees in the
exercise of the rights guaranteed in this | ||||||
20 | Act or to dominate or interfere
with the formation, | ||||||
21 | existence or administration of any labor organization
or | ||||||
22 | contribute financial or other support to it; provided, an | ||||||
23 | employer shall
not be prohibited from permitting employees | ||||||
24 | to confer with him during
working hours without loss of | ||||||
25 | time or pay;
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1 | (2) to discriminate in regard to hire or tenure of | ||||||
2 | employment or any term
or condition of employment in order | ||||||
3 | to encourage or discourage membership
in or other support | ||||||
4 | for any labor organization. Nothing in this Act or any
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5 | other law precludes a public employer from making an | ||||||
6 | agreement with a labor
organization to require as a | ||||||
7 | condition of employment the payment of a fair
share under | ||||||
8 | paragraph (e) of Section 6;
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9 | (3) to discharge or otherwise discriminate against a | ||||||
10 | public employee because
he has signed or filed an | ||||||
11 | affidavit, petition or charge or provided any
information | ||||||
12 | or testimony under this Act;
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13 | (4) subject to and except as provided in Section 7.6, | ||||||
14 | to refuse to bargain collectively in good faith with a | ||||||
15 | labor
organization which is the exclusive representative | ||||||
16 | of public employees in
an appropriate unit, including, but | ||||||
17 | not limited to, the discussing of
grievances with the | ||||||
18 | exclusive representative; however, no actions of the | ||||||
19 | employer taken to implement or otherwise comply with the | ||||||
20 | provisions of subsection (a) of Section 7.6 shall | ||||||
21 | constitute or give rise to an unfair labor practice under | ||||||
22 | this Act;
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23 | (5) to violate any of the rules and regulations | ||||||
24 | established by the Board
with jurisdiction over them | ||||||
25 | relating to the conduct of representation elections
or the | ||||||
26 | conduct affecting the representation elections;
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1 | (6) to expend or cause the expenditure of public funds | ||||||
2 | to any external
agent, individual, firm, agency, | ||||||
3 | partnership or association in any attempt
to influence the | ||||||
4 | outcome of representational elections held pursuant to
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5 | Section 9 of this Act; provided, that nothing in this | ||||||
6 | subsection shall be
construed to limit an employer's right | ||||||
7 | to internally communicate with its
employees as provided in | ||||||
8 | subsection (c) of this Section, to be represented
on any | ||||||
9 | matter pertaining to unit determinations, unfair labor | ||||||
10 | practice
charges or pre-election conferences in any formal | ||||||
11 | or informal proceeding
before the Board, or to seek or | ||||||
12 | obtain advice from legal counsel.
Nothing in this paragraph | ||||||
13 | shall be construed to prohibit an employer from
expending | ||||||
14 | or causing the expenditure of public funds on, or seeking | ||||||
15 | or
obtaining services or advice from, any organization, | ||||||
16 | group, or association
established by and including public | ||||||
17 | or educational employers, whether
covered by this Act, the | ||||||
18 | Illinois Educational Labor Relations Act or the
public | ||||||
19 | employment labor relations law of any other state or the | ||||||
20 | federal
government, provided that such services or advice | ||||||
21 | are generally available
to the membership of the | ||||||
22 | organization, group or association, and are not
offered | ||||||
23 | solely in an attempt to influence the outcome of a | ||||||
24 | particular
representational election; or
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25 | (7) to refuse to reduce a collective bargaining | ||||||
26 | agreement to writing
or to refuse to sign such agreement.
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1 | (b) It shall be an unfair labor practice for a labor | ||||||
2 | organization or its agents:
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3 | (1) to restrain or coerce public employees in the | ||||||
4 | exercise of the rights
guaranteed in this Act, provided, | ||||||
5 | (i) that this paragraph shall
not impair the right of a | ||||||
6 | labor organization to prescribe its own rules
with respect | ||||||
7 | to the acquisition or retention of membership therein or | ||||||
8 | the
determination of fair share payments and (ii) that a | ||||||
9 | labor organization
or its agents shall commit an unfair | ||||||
10 | labor practice under this paragraph in
duty of fair | ||||||
11 | representation cases only by intentional misconduct in
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12 | representing employees under this Act;
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13 | (2) to restrain or coerce a public employer in the | ||||||
14 | selection of his
representatives for the purposes of | ||||||
15 | collective bargaining or the settlement
of grievances; or
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16 | (3) to cause, or attempt to cause, an employer to | ||||||
17 | discriminate against
an employee in violation of | ||||||
18 | subsection (a)(2);
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19 | (4) to refuse to bargain collectively in good faith | ||||||
20 | with a public employer,
if it has been designated in | ||||||
21 | accordance with the provisions of this Act
as the exclusive | ||||||
22 | representative of public employees in an appropriate unit;
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23 | (5) to violate any of the rules and regulations | ||||||
24 | established by the
boards with jurisdiction over them | ||||||
25 | relating to the conduct of
representation elections or the | ||||||
26 | conduct affecting the representation elections;
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1 | (6) to discriminate against any employee because he has | ||||||
2 | signed or filed
an affidavit, petition or charge or | ||||||
3 | provided any information or testimony
under this Act;
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4 | (7) to picket or cause to be picketed, or threaten to | ||||||
5 | picket or cause
to be picketed, any public employer where | ||||||
6 | an object thereof is forcing or
requiring an employer to | ||||||
7 | recognize or bargain with a labor organization
of the | ||||||
8 | representative of its employees, or forcing or requiring | ||||||
9 | the employees
of an employer to accept or select such labor | ||||||
10 | organization as their collective
bargaining | ||||||
11 | representative, unless such labor organization is | ||||||
12 | currently
certified as the representative of such | ||||||
13 | employees:
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14 | (A) where the employer has lawfully recognized in | ||||||
15 | accordance with this
Act any labor organization and a | ||||||
16 | question concerning representation may
not | ||||||
17 | appropriately be raised under Section 9 of this Act;
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18 | (B) where within the preceding 12 months a valid | ||||||
19 | election under Section
9 of this Act has been | ||||||
20 | conducted; or
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21 | (C) where such picketing has been conducted | ||||||
22 | without a petition under Section
9 being filed within a | ||||||
23 | reasonable period of time not to exceed 30 days from
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24 | the commencement of such picketing; provided that when | ||||||
25 | such a petition has
been filed the Board shall | ||||||
26 | forthwith, without regard to the provisions of
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1 | subsection (a) of Section 9 or the absence of a showing | ||||||
2 | of a substantial
interest on the part of the labor | ||||||
3 | organization, direct an election in such
unit as the | ||||||
4 | Board finds to be appropriate and shall certify the | ||||||
5 | results
thereof; provided further, that nothing in | ||||||
6 | this subparagraph shall be construed
to prohibit any | ||||||
7 | picketing or other publicity for the purpose of | ||||||
8 | truthfully
advising the public that an employer does | ||||||
9 | not employ members of, or have a
contract with, a labor | ||||||
10 | organization unless an effect of such picketing is
to | ||||||
11 | induce any individual employed by any other person in | ||||||
12 | the course of his
employment, not to pick up, deliver, | ||||||
13 | or transport any goods or not to
perform any services; | ||||||
14 | or
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15 | (8) to refuse to reduce a collective bargaining | ||||||
16 | agreement to writing
or to refuse to sign such agreement.
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17 | (c) The expressing of any views, argument, or opinion or | ||||||
18 | the
dissemination thereof, whether in written, printed, | ||||||
19 | graphic, or visual
form, shall not constitute or be evidence of | ||||||
20 | an unfair labor practice under
any of the provisions of this | ||||||
21 | Act, if such expression contains no threat of
reprisal or force | ||||||
22 | or promise of benefit.
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23 | (Source: P.A. 86-412; 87-736 .)
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24 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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25 | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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1 | which has been
held unconstitutional)
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2 | Sec. 15. Act Takes Precedence. | ||||||
3 | (a) In case of any conflict between the
provisions of this | ||||||
4 | Act and any other law (other than Section 5 of the State | ||||||
5 | Employees Group Insurance Act of 1971 and other than the | ||||||
6 | changes made to the Illinois Pension Code by this amendatory | ||||||
7 | Act of the 96th General Assembly), executive order or | ||||||
8 | administrative
regulation relating to wages, hours and | ||||||
9 | conditions of employment and employment
relations, the | ||||||
10 | provisions of this Act or any collective bargaining agreement
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11 | negotiated thereunder shall prevail and control.
Nothing in | ||||||
12 | this Act shall be construed to replace or diminish the
rights | ||||||
13 | of employees established by Sections 28 and 28a of the | ||||||
14 | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 | ||||||
15 | of the Regional Transportation
Authority Act. The provisions of | ||||||
16 | this Act are subject to Section 5 of the State Employees Group | ||||||
17 | Insurance Act of 1971. Nothing in this Act shall be construed | ||||||
18 | to replace the necessity of complaints against a sworn peace | ||||||
19 | officer, as defined in Section 2(a) of the Uniform Peace | ||||||
20 | Officer Disciplinary Act, from having a complaint supported by | ||||||
21 | a sworn affidavit.
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22 | (b) Except as provided in subsection (a) above, any | ||||||
23 | collective bargaining
contract between a public employer and a | ||||||
24 | labor organization executed pursuant
to this Act shall | ||||||
25 | supersede any contrary statutes, charters, ordinances, rules
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26 | or regulations relating to wages, hours and conditions of |
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1 | employment and
employment relations adopted by the public | ||||||
2 | employer or its agents. Any collective
bargaining agreement | ||||||
3 | entered into prior to the effective date of this Act
shall | ||||||
4 | remain in full force during its duration.
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5 | (c) It is the public policy of this State, pursuant to | ||||||
6 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
7 | Illinois Constitution, that the
provisions of this Act are the | ||||||
8 | exclusive exercise by the State of powers
and functions which | ||||||
9 | might otherwise be exercised by home rule units. Such
powers | ||||||
10 | and functions may not be exercised concurrently, either | ||||||
11 | directly
or indirectly, by any unit of local government, | ||||||
12 | including any home rule
unit, except as otherwise authorized by | ||||||
13 | this Act. | ||||||
14 | (d) Notwithstanding any other provision of law, no | ||||||
15 | collective bargaining agreement entered into, renewed, or | ||||||
16 | extended after the effective date of this amendatory Act of the | ||||||
17 | 99th General Assembly or any arbitration award issued under | ||||||
18 | such collective bargaining agreement may violate or conflict | ||||||
19 | with the changes made by this amendatory Act of the 99th | ||||||
20 | General Assembly. | ||||||
21 | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
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22 | Section 10. The Civil Administrative Code of Illinois is | ||||||
23 | amended by adding Section 5-647 as follows:
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24 | (20 ILCS 5/5-647 new) |
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1 | Sec. 5-647. Future increases in income. A Department must | ||||||
2 | not pay, offer, or agree to pay any future increase in income, | ||||||
3 | as that term is defined in Section 15-112.1 or 16-121.1 of the | ||||||
4 | Illinois Pension Code, to any person in a manner that violates | ||||||
5 | Section 15-132.9 or 16-122.9 of the Illinois Pension Code.
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6 | Section 15. The Illinois Pension Code is amended by | ||||||
7 | changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, | ||||||
8 | 2-126, 2-134, 2-162, 15-108.1, 15-111, 15-136, 15-155, 15-157, | ||||||
9 | 15-165, 15-198, 16-121, 16-133.1, 16-136.1, 16-152, 16-158, | ||||||
10 | 16-203, 17-113.4, 17-116, 17-119.2, 17-129, 17-130, 18-131, | ||||||
11 | and 18-140 and by adding Sections 2-105.3, 2-107.9, 2-110.3, | ||||||
12 | 2-165.1, 2-166.1, 15-112.1, 15-132.9, 15-200.1, 15-201.1, | ||||||
13 | 16-107.1, 16-121.1, 16-122.9, 16-205.1, 16-206.1, 17-106.05, | ||||||
14 | 17-113.5, and 17-115.5 as follows:
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15 | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
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16 | Sec. 2-101. Creation of system. A retirement system is | ||||||
17 | created to provide
retirement annuities, survivor's annuities | ||||||
18 | and other benefits for certain
members of the General Assembly, | ||||||
19 | certain elected state officials , and their
beneficiaries.
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20 | The system shall be known as the "General Assembly | ||||||
21 | Retirement System".
All its funds and property shall be a trust | ||||||
22 | separate from all other
entities, maintained for the purpose of | ||||||
23 | securing payment of annuities and
benefits under this Article.
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24 | Participation in the retirement system created under this |
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1 | Article is
restricted to persons who became participants before | ||||||
2 | the effective date of this amendatory Act of the 99th General | ||||||
3 | Assembly.
Beginning on that date, the System shall not accept | ||||||
4 | any new participants.
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5 | (Source: P.A. 83-1440.)
| ||||||
6 | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
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7 | Sec. 2-105. Member. "Member": Members of the General | ||||||
8 | Assembly of this
State , including persons who enter military | ||||||
9 | service while a member of the
General Assembly , and any person | ||||||
10 | serving as Governor, Lieutenant Governor,
Secretary of State, | ||||||
11 | Treasurer, Comptroller, or Attorney General for the period
of | ||||||
12 | service in such office.
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13 | Any person who has served for 10 or more years as Clerk or | ||||||
14 | Assistant Clerk
of the House of Representatives, Secretary or | ||||||
15 | Assistant Secretary of the
Senate, or any combination thereof, | ||||||
16 | may elect to become a member
of this system while thenceforth | ||||||
17 | engaged in such service by filing a
written election with the | ||||||
18 | board. Any person so electing shall be
deemed an active member | ||||||
19 | of the General Assembly for the purpose of validating
and | ||||||
20 | transferring any service credits earned under any of the funds | ||||||
21 | and systems
established under Articles 3 through 18 of this | ||||||
22 | Code.
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23 | However, notwithstanding any other provision of this | ||||||
24 | Article, a person
shall not be deemed a member for the purposes | ||||||
25 | of this Article unless he or she
became a participant of the |
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1 | System before the effective date of this amendatory Act of the | ||||||
2 | 99th General Assembly.
| ||||||
3 | (Source: P.A. 85-1008.)
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4 | (40 ILCS 5/2-105.3 new) | ||||||
5 | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A | ||||||
6 | participant who first became a participant before January 1, | ||||||
7 | 2011.
| ||||||
8 | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
| ||||||
9 | Sec. 2-107. Participant. "Participant": Any member who | ||||||
10 | elects to
participate; and any former member who elects to | ||||||
11 | continue participation
under Section 2-117.1, for the duration | ||||||
12 | of such continued participation. However, notwithstanding any | ||||||
13 | other provision of this Article, a person
shall not be deemed a | ||||||
14 | participant for the purposes of this Article unless he or she
| ||||||
15 | became a participant of the System before the effective date of | ||||||
16 | this amendatory Act of the 99th General Assembly.
| ||||||
17 | (Source: P.A. 86-1488.)
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18 | (40 ILCS 5/2-107.9 new) | ||||||
19 | Sec. 2-107.9. Future increase in income. "Future increase | ||||||
20 | in income" means an increase in income in any form offered to a | ||||||
21 | Tier 1 employee for service under this Article after June 30, | ||||||
22 | 2018 that qualifies as "salary", as defined in Section 2-108, | ||||||
23 | or would qualify as "salary" but for the fact that it was |
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1 | offered to and accepted by a Tier 1 employee under the | ||||||
2 | condition set forth in subsection (c) of Section 2-110.3.
| ||||||
3 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
4 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
5 | which has been
held unconstitutional)
| ||||||
6 | Sec. 2-108. Salary. "Salary": | ||||||
7 | (1) For members of the General Assembly,
the total | ||||||
8 | compensation paid to the member by the State for one
year of | ||||||
9 | service, including the additional amounts, if any, paid to
the | ||||||
10 | member as an officer pursuant to Section 1 of "An Act
in | ||||||
11 | relation to the compensation and emoluments of the members of | ||||||
12 | the
General Assembly", approved December 6, 1907, as now or | ||||||
13 | hereafter
amended.
| ||||||
14 | (2) For the State executive officers specified
in Section | ||||||
15 | 2-105, the total compensation paid to the member for one year
| ||||||
16 | of service.
| ||||||
17 | (3) For members of the System who are participants under | ||||||
18 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
19 | of the House of
Representatives or Secretary or Assistant | ||||||
20 | Secretary of the Senate, the
total compensation paid to the | ||||||
21 | member for one year of service, but not to
exceed the salary of | ||||||
22 | the highest salaried officer of the General Assembly.
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23 | However, in the event that federal law results in any | ||||||
24 | participant
receiving imputed income based on the value of | ||||||
25 | group term life insurance
provided by the State, such imputed |
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| |||||||
1 | income shall not be included in salary
for the purposes of this | ||||||
2 | Article.
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3 | Notwithstanding any other provision of this Section, | ||||||
4 | "salary" does not include any future increase in income that is | ||||||
5 | offered for service to a Tier 1 employee under this Article | ||||||
6 | pursuant to the condition set forth in subsection (c) of | ||||||
7 | Section 2-110.3 and accepted under that condition by a Tier 1 | ||||||
8 | employee who has made the election under paragraph (2) of | ||||||
9 | subsection (a) of Section 2-110.3. | ||||||
10 | Notwithstanding any other provision of this Section, | ||||||
11 | "salary" does not include any consideration payment made to a | ||||||
12 | Tier 1 employee. | ||||||
13 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| ||||||
14 | (40 ILCS 5/2-110.3 new) | ||||||
15 | Sec. 2-110.3. Election by Tier 1 employees. | ||||||
16 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
17 | election either: | ||||||
18 | (1) to agree to delay his or her eligibility for | ||||||
19 | automatic annual increases in retirement annuity as | ||||||
20 | provided in subsection (a-1) of Section 2-119.1 and to have | ||||||
21 | the amount of the automatic annual increases in his or her | ||||||
22 | retirement annuity that are otherwise provided for in this | ||||||
23 | Article calculated, instead, as provided in subsection | ||||||
24 | (a-1) of Section 2-119.1; or | ||||||
25 | (2) to not agree to paragraph (1) of this subsection. |
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1 | The election required under this subsection (a) shall be | ||||||
2 | made by each active Tier 1 employee no earlier than January 1, | ||||||
3 | 2018 and no later than March 1, 2018, except that a person who | ||||||
4 | returns to active service as a Tier 1 employee under this | ||||||
5 | Article on or after January 1, 2018 and has not yet made an | ||||||
6 | election under this Section must make the election under this | ||||||
7 | subsection (a) within 60 days after returning to active service | ||||||
8 | as a Tier 1 employee. | ||||||
9 | If a Tier 1 employee fails for any reason to make a | ||||||
10 | required election under this subsection within the time | ||||||
11 | specified, then the employee shall be deemed to have made the | ||||||
12 | election under paragraph (2) of this subsection. | ||||||
13 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
14 | court or a court of competent jurisdiction pending the entry of | ||||||
15 | a final and unappealable decision, and this Section is | ||||||
16 | determined to be constitutional or otherwise valid by a final | ||||||
17 | unappealable decision of an Illinois court or a court of | ||||||
18 | competent jurisdiction, then the election procedure set forth | ||||||
19 | in subsection (a) of this Section shall commence on the 180th | ||||||
20 | calendar day after the date of the issuance of the final | ||||||
21 | unappealable decision and shall conclude at the end of the | ||||||
22 | 270th calendar day after that date. | ||||||
23 | (a-10) All elections under subsection (a) that are made or | ||||||
24 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
25 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
26 | after July 1, 2018 shall take effect on the first day of the |
| |||||||
| |||||||
1 | month following the month in which the election is made or | ||||||
2 | deemed to be made. | ||||||
3 | (b) As adequate and legal consideration provided under this | ||||||
4 | amendatory Act of the 99th General Assembly for making an | ||||||
5 | election under paragraph (1) of subsection (a) of this Section, | ||||||
6 | the State of Illinois shall be expressly and irrevocably | ||||||
7 | prohibited from offering any future increases in income to a | ||||||
8 | Tier 1 employee who has made an election under paragraph (1) of | ||||||
9 | subsection (a) of this Section on the condition of not | ||||||
10 | constituting salary under Section 2-108. | ||||||
11 | As adequate and legal consideration provided under this | ||||||
12 | amendatory Act of the 99th General Assembly for making an | ||||||
13 | election under paragraph (1) of subsection (a) of this Section, | ||||||
14 | each Tier 1 employee who has made an election under paragraph | ||||||
15 | (1) of subsection (a) of this Section shall receive a | ||||||
16 | consideration payment equal to 10% of the contributions made by | ||||||
17 | or on behalf of the employee under Section 2-126 before the | ||||||
18 | effective date of that election. The State Comptroller shall | ||||||
19 | pay the consideration payment to the Tier 1 employee out of | ||||||
20 | funds appropriated for that purpose under Section 1.9 of the | ||||||
21 | State Pension Funds Continuing Appropriation Act. The System | ||||||
22 | shall calculate the amount of each consideration payment and | ||||||
23 | shall certify to the State Comptroller the amount of the | ||||||
24 | consideration payment, together with the name, address, and any | ||||||
25 | other available payment information of the Tier 1 employee as | ||||||
26 | found in the records of the System. |
| |||||||
| |||||||
1 | (c) A Tier 1 employee who makes the election under | ||||||
2 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
3 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
4 | However, any future increases in income offered for service as | ||||||
5 | a member under this Article to a Tier 1 employee who has made | ||||||
6 | the election under paragraph (2) of subsection (a) of this | ||||||
7 | Section shall be offered expressly and irrevocably on the | ||||||
8 | condition of not constituting salary under Section 2-108, and | ||||||
9 | the member may not accept any future increase in income that is | ||||||
10 | offered without this condition. | ||||||
11 | (d) The System shall make a good faith effort to contact | ||||||
12 | each Tier 1 employee subject to this Section. The System shall | ||||||
13 | mail information describing the required election to each Tier | ||||||
14 | 1 employee by United States Postal Service mail to his or her | ||||||
15 | last known address on file with the System. If the Tier 1 | ||||||
16 | employee is not responsive to other means of contact, it is | ||||||
17 | sufficient for the System to publish the details of any | ||||||
18 | required elections on its website or to publish those details | ||||||
19 | in a regularly published newsletter or other existing public | ||||||
20 | forum. | ||||||
21 | Tier 1 employees who are subject to this Section shall be | ||||||
22 | provided with an election packet containing information | ||||||
23 | regarding their options, as well as the forms necessary to make | ||||||
24 | the required election. Upon request, the System shall offer | ||||||
25 | Tier 1 employees an opportunity to receive information from the | ||||||
26 | System before making the required election. The information may |
| |||||||
| |||||||
1 | be provided through video materials, group presentations, | ||||||
2 | individual consultation with a member or authorized | ||||||
3 | representative of the System in person or by telephone or other | ||||||
4 | electronic means, or any combination of those methods. The | ||||||
5 | System shall not provide advice or counseling with respect to | ||||||
6 | which election a Tier 1 employee should make or specific to the | ||||||
7 | legal or tax circumstances of or consequences to the Tier 1 | ||||||
8 | employee. | ||||||
9 | The System shall inform Tier 1 employees in the election | ||||||
10 | packet required under this subsection that the Tier 1 employee | ||||||
11 | may also wish to obtain information and counsel relating to the | ||||||
12 | election required under this Section from any other available | ||||||
13 | source, including, but not limited to, labor organizations and | ||||||
14 | private counsel. | ||||||
15 | In no event shall the System, its staff, or the Board be | ||||||
16 | held liable for any information given to a member regarding the | ||||||
17 | elections under this Section. The System shall coordinate with | ||||||
18 | the Illinois Department of Central Management Services and each | ||||||
19 | other retirement system administering an election in | ||||||
20 | accordance with this amendatory Act of the 99th General | ||||||
21 | Assembly to provide information concerning the impact of the | ||||||
22 | election set forth in this Section. | ||||||
23 | (e) Notwithstanding any other provision of law, any future | ||||||
24 | increases in income offered by the State of Illinois for | ||||||
25 | service as a member must be offered expressly and irrevocably | ||||||
26 | on the condition of not constituting "salary" under Section |
| |||||||
| |||||||
1 | 2-108 to any Tier 1 employee who has made an election under | ||||||
2 | paragraph (2) of subsection (a) of this Section. A Tier 1 | ||||||
3 | employee who has made an election under paragraph (2) of | ||||||
4 | subsection (a) of this Section shall not accept any future | ||||||
5 | increase in income that is offered for service as a member | ||||||
6 | under this Article without the condition set forth in this | ||||||
7 | subsection. | ||||||
8 | For purposes of legislative intent, the condition set forth | ||||||
9 | in this subsection shall be construed in a manner that ensures | ||||||
10 | that the condition is not violated or circumvented through any | ||||||
11 | contrivance of any kind. | ||||||
12 | (f) A member's election under this Section is not a | ||||||
13 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
14 | of this Code. | ||||||
15 | (g) No provision of this Section shall be interpreted in a | ||||||
16 | way that would cause the System to cease to be a qualified plan | ||||||
17 | under Section 401(a) of the Internal Revenue Code of 1986. The | ||||||
18 | provisions of this Section shall be subject to and implemented | ||||||
19 | in a manner that complies with Section 11 of Article IV of the | ||||||
20 | Illinois Constitution. | ||||||
21 | (h) If an election created by this amendatory Act in any | ||||||
22 | other Article of this Code or any change deriving from that | ||||||
23 | election is determined to be unconstitutional or otherwise | ||||||
24 | invalid by a final unappealable decision of an Illinois court | ||||||
25 | or a court of competent jurisdiction, the invalidity of that | ||||||
26 | provision shall not in any way affect the validity of this |
| |||||||
| |||||||
1 | Section or the changes deriving from the election required | ||||||
2 | under this Section.
| ||||||
3 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| ||||||
4 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
5 | which has been
held unconstitutional)
| ||||||
6 | Sec. 2-119.1. Automatic increase in retirement annuity.
| ||||||
7 | (a) Except as provided in subsection (a-1), a A participant | ||||||
8 | who retires after June 30, 1967, and who has not
received an | ||||||
9 | initial increase under this Section before the effective date
| ||||||
10 | of this amendatory Act of 1991, shall, in January or July next | ||||||
11 | following
the first anniversary of retirement, whichever | ||||||
12 | occurs first, and in the same
month of each year thereafter, | ||||||
13 | but in no event prior to age 60, have the amount
of the | ||||||
14 | originally granted retirement annuity increased as follows: | ||||||
15 | for each
year through 1971, 1 1/2%; for each year from 1972 | ||||||
16 | through 1979, 2%; and for
1980 and each year thereafter, 3%. | ||||||
17 | Annuitants who have received an initial
increase under this | ||||||
18 | subsection prior to the effective date of this amendatory
Act | ||||||
19 | of 1991 shall continue to receive their annual increases in the | ||||||
20 | same month
as the initial increase.
| ||||||
21 | (a-1) Notwithstanding any other provision of this Article, | ||||||
22 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
23 | of subsection (a) of Section 2-110.3: | ||||||
24 | (1) The initial increase in retirement annuity under | ||||||
25 | this Section shall occur on the January 1 occurring either |
| |||||||
| |||||||
1 | on or after the attainment of age 67 or the fifth | ||||||
2 | anniversary of the annuity start date, whichever is | ||||||
3 | earlier. | ||||||
4 | (2) The amount of each automatic annual increase in | ||||||
5 | retirement annuity occurring on or after the effective date | ||||||
6 | of that election shall be calculated as a percentage of the | ||||||
7 | originally granted retirement annuity, equal to 3% or | ||||||
8 | one-half the annual unadjusted percentage increase (but | ||||||
9 | not less than zero) in the consumer price index-u for the | ||||||
10 | 12 months ending with the September preceding each November | ||||||
11 | 1, whichever is less. If the annual unadjusted percentage | ||||||
12 | change in the consumer price index-u for the 12 months | ||||||
13 | ending with the September preceding each November 1 is zero | ||||||
14 | or there is a decrease, then the annuity shall not be | ||||||
15 | increased. | ||||||
16 | For the purposes of this Section, "consumer price index-u" | ||||||
17 | means
the index published by the Bureau of Labor Statistics of | ||||||
18 | the United States
Department of Labor that measures the average | ||||||
19 | change in prices of goods and
services purchased by all urban | ||||||
20 | consumers, United States city average, all
items, 1982-84 = | ||||||
21 | 100. The new amount resulting from each annual adjustment
shall | ||||||
22 | be determined by the Public Pension Division of the Department | ||||||
23 | of Insurance and made available to the board of the retirement | ||||||
24 | system by November 1 of each year. | ||||||
25 | (b) Beginning January 1, 1990, for eligible participants | ||||||
26 | who remain
in service after attaining 20 years of creditable |
| |||||||
| |||||||
1 | service, the 3% increases
provided under subsection (a) shall | ||||||
2 | begin to accrue on the January 1 next
following the date upon | ||||||
3 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
4 | years of creditable service, whichever occurs later, and shall
| ||||||
5 | continue to accrue while the participant remains in service; | ||||||
6 | such increases
shall become payable on January 1 or July 1, | ||||||
7 | whichever occurs first, next
following the first anniversary of | ||||||
8 | retirement. For any person who has service
credit in the System | ||||||
9 | for the entire period from January 15, 1969 through
December | ||||||
10 | 31, 1992, regardless of the date of termination of service, the
| ||||||
11 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
12 | be deemed to
mean age 50.
| ||||||
13 | This subsection (b) does not apply to any person who first | ||||||
14 | becomes a
member of the System after August 8, 2003 ( the | ||||||
15 | effective date of Public Act 93-494) this amendatory Act of
the | ||||||
16 | 93rd General Assembly .
| ||||||
17 | (b-5) Notwithstanding any other provision of this Article, | ||||||
18 | a participant who first becomes a participant on or after | ||||||
19 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
20 | shall, in January or July next following the first anniversary | ||||||
21 | of retirement, whichever occurs first, and in the same month of | ||||||
22 | each year thereafter, but in no event prior to age 67, have the | ||||||
23 | amount of the retirement annuity then being paid increased by | ||||||
24 | 3% or the annual unadjusted percentage increase in the Consumer | ||||||
25 | Price Index for All Urban Consumers as determined by the Public | ||||||
26 | Pension Division of the Department of Insurance under |
| |||||||
| |||||||
1 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
2 | (c) The foregoing provisions relating to automatic | ||||||
3 | increases are not
applicable to a participant who retires | ||||||
4 | before having made contributions
(at the rate prescribed in | ||||||
5 | Section 2-126) for automatic increases for less
than the | ||||||
6 | equivalent of one full year. However, in order to be eligible | ||||||
7 | for
the automatic increases, such a participant may make | ||||||
8 | arrangements to pay
to the system the amount required to bring | ||||||
9 | the total contributions for the
automatic increase to the | ||||||
10 | equivalent of one year's contributions based upon
his or her | ||||||
11 | last salary.
| ||||||
12 | (d) A participant who terminated service prior to July 1, | ||||||
13 | 1967, with at
least 14 years of service is entitled to an | ||||||
14 | increase in retirement annuity
beginning January, 1976, and to | ||||||
15 | additional increases in January of each
year thereafter.
| ||||||
16 | The initial increase shall be 1 1/2% of the originally | ||||||
17 | granted retirement
annuity multiplied by the number of full | ||||||
18 | years that the annuitant was in
receipt of such annuity prior | ||||||
19 | to January 1, 1972, plus 2% of the originally
granted | ||||||
20 | retirement annuity for each year after that date. The | ||||||
21 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
22 | originally granted
retirement annuity for each year through | ||||||
23 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
24 | (e) Beginning January 1, 1990, and except as provided in | ||||||
25 | subsection (a-1), all automatic annual increases payable
under | ||||||
26 | this Section shall be calculated as a percentage of the total |
| |||||||
| |||||||
1 | annuity
payable at the time of the increase, including previous | ||||||
2 | increases granted
under this Article.
| ||||||
3 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
4 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been
held unconstitutional)
| ||||||
7 | Sec. 2-124. Contributions by State.
| ||||||
8 | (a) The State shall make contributions to the System by
| ||||||
9 | appropriations of amounts which, together with the | ||||||
10 | contributions of
participants, interest earned on investments, | ||||||
11 | and other income
will meet the cost of maintaining and | ||||||
12 | administering the System on a 90%
funded basis in accordance | ||||||
13 | with actuarial recommendations.
| ||||||
14 | (b) The Board shall determine the amount of State
| ||||||
15 | contributions required for each fiscal year on the basis of the
| ||||||
16 | actuarial tables and other assumptions adopted by the Board and | ||||||
17 | the
prescribed rate of interest, using the formula in | ||||||
18 | subsection (c).
| ||||||
19 | (c) For State fiscal years 2018 through 2045 (except as | ||||||
20 | otherwise provided for fiscal year 2019), the minimum | ||||||
21 | contribution to the System to be made by the State for each | ||||||
22 | fiscal year shall be an amount determined by the System to be | ||||||
23 | sufficient to bring the total assets of the System up to 90% of | ||||||
24 | the total actuarial liabilities of the System by the end of | ||||||
25 | State fiscal year 2045. In making these determinations, the |
| |||||||
| |||||||
1 | required State contribution shall be calculated each year as a | ||||||
2 | level percentage of total payroll, including payroll that is | ||||||
3 | not deemed pensionable, over the years remaining to and | ||||||
4 | including fiscal year 2045 and shall be determined under the | ||||||
5 | projected unit credit actuarial cost method. | ||||||
6 | For State fiscal year 2019: | ||||||
7 | (1) The initial calculation and certification shall be | ||||||
8 | based on the amount determined above. | ||||||
9 | (2) For purposes of the recertification due on or | ||||||
10 | before May 1, 2018, the recalculation of the required State | ||||||
11 | contribution for fiscal year 2019 shall take into account | ||||||
12 | the effect on the System's liabilities of the elections | ||||||
13 | made under Section 2-110.3. | ||||||
14 | (3) For purposes of the recertification due on or | ||||||
15 | before October 1, 2018, the total required State | ||||||
16 | contribution for fiscal year 2019 shall be reduced by the | ||||||
17 | amount of the consideration payments made to Tier 1 | ||||||
18 | employees who made the election under paragraph (1) of | ||||||
19 | subsection (a) of Section 2-110.3. | ||||||
20 | Beginning in State fiscal year 2018, any increase or | ||||||
21 | decrease in State contribution over the prior fiscal year due | ||||||
22 | exclusively to changes in actuarial or investment assumptions | ||||||
23 | adopted by the Board shall be included in the State | ||||||
24 | contribution to the System, as a percentage of the applicable | ||||||
25 | employee payroll, and shall be increased in equal annual | ||||||
26 | increments so that by the State fiscal year occurring 5 years |
| |||||||
| |||||||
1 | after the adoption of the actuarial or investment assumptions, | ||||||
2 | the State is contributing at the rate otherwise required under | ||||||
3 | this Section. | ||||||
4 | If Section 2-110.3 is determined to be unconstitutional or | ||||||
5 | otherwise invalid by a final unappealable decision of an | ||||||
6 | Illinois court
or a court of competent jurisdiction, then the | ||||||
7 | changes made to this Section by this amendatory Act of the 99th | ||||||
8 | General Assembly shall not take effect and are repealed by | ||||||
9 | operation of law. | ||||||
10 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
11 | contribution
to the System to be made by the State for each | ||||||
12 | fiscal year shall be an amount
determined by the System to be | ||||||
13 | sufficient to bring the total assets of the
System up to 90% of | ||||||
14 | the total actuarial liabilities of the System by the end of
| ||||||
15 | State fiscal year 2045. In making these determinations, the | ||||||
16 | required State
contribution shall be calculated each year as a | ||||||
17 | level percentage of payroll
over the years remaining to and | ||||||
18 | including fiscal year 2045 and shall be
determined under the | ||||||
19 | projected unit credit actuarial cost method.
| ||||||
20 | For State fiscal years 1996 through 2005, the State | ||||||
21 | contribution to
the System, as a percentage of the applicable | ||||||
22 | employee payroll, shall be
increased in equal annual increments | ||||||
23 | so that by State fiscal year 2011, the
State is contributing at | ||||||
24 | the rate required under this Section.
| ||||||
25 | Notwithstanding any other provision of this Article, the | ||||||
26 | total required State
contribution for State fiscal year 2006 is |
| |||||||
| |||||||
1 | $4,157,000.
| ||||||
2 | Notwithstanding any other provision of this Article, the | ||||||
3 | total required State
contribution for State fiscal year 2007 is | ||||||
4 | $5,220,300.
| ||||||
5 | For each of State fiscal years 2008 through 2009, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual increments | ||||||
8 | from the required State contribution for State fiscal year | ||||||
9 | 2007, so that by State fiscal year 2011, the
State is | ||||||
10 | contributing at the rate otherwise required under this Section.
| ||||||
11 | Notwithstanding any other provision of this Article, the | ||||||
12 | total required State contribution for State fiscal year 2010 is | ||||||
13 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
14 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
15 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
16 | expenses determined by the System's share of total bond | ||||||
17 | proceeds, (ii) any amounts received from the General Revenue | ||||||
18 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
19 | proceeds due to the issuance of discounted bonds, if | ||||||
20 | applicable. | ||||||
21 | Notwithstanding any other provision of this Article, the
| ||||||
22 | total required State contribution for State fiscal year 2011 is
| ||||||
23 | the amount recertified by the System on or before April 1, 2011 | ||||||
24 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
25 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
26 | the General
Obligation Bond Act, less (i) the pro rata share of |
| |||||||
| |||||||
1 | bond sale
expenses determined by the System's share of total | ||||||
2 | bond
proceeds, (ii) any amounts received from the General | ||||||
3 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
4 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
5 | applicable. | ||||||
6 | Beginning in State fiscal year 2046, the minimum State | ||||||
7 | contribution for
each fiscal year shall be the amount needed to | ||||||
8 | maintain the total assets of
the System at 90% of the total | ||||||
9 | actuarial liabilities of the System.
| ||||||
10 | Amounts received by the System pursuant to Section 25 of | ||||||
11 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
12 | Finance Act in any fiscal year do not reduce and do not | ||||||
13 | constitute payment of any portion of the minimum State | ||||||
14 | contribution required under this Article in that fiscal year. | ||||||
15 | Such amounts shall not reduce, and shall not be included in the | ||||||
16 | calculation of, the required State contributions under this | ||||||
17 | Article in any future year until the System has reached a | ||||||
18 | funding ratio of at least 90%. A reference in this Article to | ||||||
19 | the "required State contribution" or any substantially similar | ||||||
20 | term does not include or apply to any amounts payable to the | ||||||
21 | System under Section 25 of the Budget Stabilization Act.
| ||||||
22 | Notwithstanding any other provision of this Section, the | ||||||
23 | required State
contribution for State fiscal year 2005 and for | ||||||
24 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
25 | under this Section and
certified under Section 2-134, shall not | ||||||
26 | exceed an amount equal to (i) the
amount of the required State |
| |||||||
| |||||||
1 | contribution that would have been calculated under
this Section | ||||||
2 | for that fiscal year if the System had not received any | ||||||
3 | payments
under subsection (d) of Section 7.2 of the General | ||||||
4 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
5 | total debt service payments for that fiscal
year on the bonds | ||||||
6 | issued in fiscal year 2003 for the purposes of that Section | ||||||
7 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
8 | the same as the System's portion of
the total moneys | ||||||
9 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
10 | Obligation Bond Act. In determining this maximum for State | ||||||
11 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
12 | in item (i) shall be increased, as a percentage of the | ||||||
13 | applicable employee payroll, in equal increments calculated | ||||||
14 | from the sum of the required State contribution for State | ||||||
15 | fiscal year 2007 plus the applicable portion of the State's | ||||||
16 | total debt service payments for fiscal year 2007 on the bonds | ||||||
17 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
18 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
19 | 2011, the
State is contributing at the rate otherwise required | ||||||
20 | under this Section.
| ||||||
21 | (d) For purposes of determining the required State | ||||||
22 | contribution to the System, the value of the System's assets | ||||||
23 | shall be equal to the actuarial value of the System's assets, | ||||||
24 | which shall be calculated as follows: | ||||||
25 | As of June 30, 2008, the actuarial value of the System's | ||||||
26 | assets shall be equal to the market value of the assets as of |
| |||||||
| |||||||
1 | that date. In determining the actuarial value of the System's | ||||||
2 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
3 | gains or losses from investment return incurred in a fiscal | ||||||
4 | year shall be recognized in equal annual amounts over the | ||||||
5 | 5-year period following that fiscal year. | ||||||
6 | (e) For purposes of determining the required State | ||||||
7 | contribution to the system for a particular year, the actuarial | ||||||
8 | value of assets shall be assumed to earn a rate of return equal | ||||||
9 | to the system's actuarially assumed rate of return. | ||||||
10 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
11 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
12 | 7-13-12.)
| ||||||
13 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| ||||||
14 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
15 | which has been
held unconstitutional)
| ||||||
16 | Sec. 2-126. Contributions by participants.
| ||||||
17 | (a) Each participant shall contribute toward the cost of | ||||||
18 | his or her
retirement annuity a percentage of each payment of | ||||||
19 | salary received by him or
her for service as a member as | ||||||
20 | follows: for service between October 31, 1947
and January 1, | ||||||
21 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
22 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
23 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
24 | service after December 31, 1981, 8 1/2%.
| ||||||
25 | (b) Beginning August 2, 1949, each male participant, and |
| |||||||
| |||||||
1 | from July 1,
1971, each female participant shall contribute | ||||||
2 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
3 | A participant who has no eligible survivor's annuity | ||||||
4 | beneficiary may elect
to cease making contributions for | ||||||
5 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
6 | shall not be payable upon the death of a person who has
made | ||||||
7 | this election, unless prior to that death the election has been | ||||||
8 | revoked
and the amount of the contributions that would have | ||||||
9 | been paid under this
subsection in the absence of the election | ||||||
10 | is paid to the System, together
with interest at the rate of 4% | ||||||
11 | per year from the date the contributions
would have been made | ||||||
12 | to the date of payment.
| ||||||
13 | (c) Beginning July 1, 1967, each participant shall | ||||||
14 | contribute 1% of
salary towards the cost of automatic increase | ||||||
15 | in annuity provided in
Section 2-119.1. These contributions | ||||||
16 | shall be made concurrently with
contributions for retirement | ||||||
17 | annuity purposes.
| ||||||
18 | (d) In addition, each participant serving as an officer of | ||||||
19 | the General
Assembly shall contribute, for the same purposes | ||||||
20 | and at the same rates
as are required of a regular participant, | ||||||
21 | on each additional payment
received as an officer. If the | ||||||
22 | participant serves as an
officer for at least 2 but less than 4 | ||||||
23 | years, he or she shall
contribute an amount equal to the amount | ||||||
24 | that would have been contributed
had the participant served as | ||||||
25 | an officer for 4 years. Persons who serve
as officers in the | ||||||
26 | 87th General Assembly but cannot receive the additional
payment |
| |||||||
| |||||||
1 | to officers because of the ban on increases in salary during | ||||||
2 | their
terms may nonetheless make contributions based on those | ||||||
3 | additional payments
for the purpose of having the additional | ||||||
4 | payments included in their highest
salary for annuity purposes; | ||||||
5 | however, persons electing to make these
additional | ||||||
6 | contributions must also pay an amount representing the
| ||||||
7 | corresponding employer contributions, as calculated by the | ||||||
8 | System.
| ||||||
9 | (e) Notwithstanding any other provision of this Article, | ||||||
10 | the required contribution of a participant who first becomes a | ||||||
11 | participant on or after January 1, 2011 shall not exceed the | ||||||
12 | contribution that would be due under this Article if that | ||||||
13 | participant's highest salary for annuity purposes were | ||||||
14 | $106,800, plus any increases in that amount under Section | ||||||
15 | 2-108.1. | ||||||
16 | (f) Beginning July 1, 2018 or the effective date of the | ||||||
17 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
18 | (a) of Section 2-110.3, whichever is later, in lieu of the | ||||||
19 | contributions otherwise required under this Section, each Tier | ||||||
20 | 1 employee who made the election under paragraph (1) of | ||||||
21 | subsection (a) of Section 2-110.3 shall contribute 8.5% of each | ||||||
22 | payment of salary toward the cost of his or her retirement | ||||||
23 | annuity and 1.85% of each payment of salary toward the cost of | ||||||
24 | the survivor's annuity. | ||||||
25 | (Source: P.A. 96-1490, eff. 1-1-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been
held unconstitutional)
| ||||||
4 | Sec. 2-134. To certify required State contributions and | ||||||
5 | submit vouchers.
| ||||||
6 | (a) The Board shall certify to the Governor on or before | ||||||
7 | December 15 of each
year until December 15, 2011 the amount of | ||||||
8 | the required State contribution to the System for the next
| ||||||
9 | fiscal year and shall specifically identify the System's | ||||||
10 | projected State normal cost for that fiscal year. The | ||||||
11 | certification shall include a copy of the actuarial
| ||||||
12 | recommendations upon which it is based and shall specifically | ||||||
13 | identify the System's projected State normal cost for that | ||||||
14 | fiscal year.
| ||||||
15 | On or before November 1 of each year, beginning November 1, | ||||||
16 | 2012, the Board shall submit to the State Actuary, the | ||||||
17 | Governor, and the General Assembly a proposed certification of | ||||||
18 | the amount of the required State contribution to the System for | ||||||
19 | the next fiscal year, along with all of the actuarial | ||||||
20 | assumptions, calculations, and data upon which that proposed | ||||||
21 | certification is based. On or before January 1 of each year | ||||||
22 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
23 | preliminary report concerning the proposed certification and | ||||||
24 | identifying, if necessary, recommended changes in actuarial | ||||||
25 | assumptions that the Board must consider before finalizing its | ||||||
26 | certification of the required State contributions. On or before |
| |||||||
| |||||||
1 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
2 | shall certify to the Governor and the General Assembly the | ||||||
3 | amount of the required State contribution for the next fiscal | ||||||
4 | year. The Board's certification must note any deviations from | ||||||
5 | the State Actuary's recommended changes, the reason or reasons | ||||||
6 | for not following the State Actuary's recommended changes, and | ||||||
7 | the fiscal impact of not following the State Actuary's | ||||||
8 | recommended changes on the required State contribution. | ||||||
9 | On or before May 1, 2004, the Board shall recalculate and | ||||||
10 | recertify to
the Governor the amount of the required State | ||||||
11 | contribution to the System for
State fiscal year 2005, taking | ||||||
12 | into account the amounts appropriated to and
received by the | ||||||
13 | System under subsection (d) of Section 7.2 of the General
| ||||||
14 | Obligation Bond Act.
| ||||||
15 | On or before July 1, 2005, the Board shall recalculate and | ||||||
16 | recertify
to the Governor the amount of the required State
| ||||||
17 | contribution to the System for State fiscal year 2006, taking | ||||||
18 | into account the changes in required State contributions made | ||||||
19 | by this amendatory Act of the 94th General Assembly.
| ||||||
20 | On or before April 1, 2011, the Board shall recalculate and | ||||||
21 | recertify to the Governor the amount of the required State | ||||||
22 | contribution to the System for State fiscal year 2011, applying | ||||||
23 | the changes made by Public Act 96-889 to the System's assets | ||||||
24 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
25 | was approved on that date. | ||||||
26 | As soon as practical after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 99th General Assembly, the State Actuary | ||||||
2 | and the Board shall recalculate and recertify to the Governor | ||||||
3 | and the General Assembly the amount of the State contribution | ||||||
4 | to the System for State fiscal year 2018, taking into account | ||||||
5 | the changes in required State contributions made by this | ||||||
6 | amendatory Act of the 99th General Assembly. | ||||||
7 | On or before May 1, 2018, the Board shall recalculate and | ||||||
8 | recertify
to the Governor and the General Assembly the amount | ||||||
9 | of the required State
contribution to the System for State | ||||||
10 | fiscal year 2019, taking into account the effect on the | ||||||
11 | System's liabilities of the elections made under Section | ||||||
12 | 2-110.3. | ||||||
13 | On or before October 1, 2018, the Board shall recalculate | ||||||
14 | and recertify to the Governor and the General Assembly the | ||||||
15 | amount of the required State contribution to the System for | ||||||
16 | State fiscal year 2019, taking into account the reduction | ||||||
17 | specified under item (3) of subsection (c) of Section 2-124. | ||||||
18 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
19 | possible after the
15th day of each month the Board shall | ||||||
20 | submit vouchers for payment of State
contributions to the | ||||||
21 | System, in a total monthly amount of one-twelfth of the
| ||||||
22 | required annual State contribution certified under subsection | ||||||
23 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
24 | General Assembly through June 30, 2004, the Board shall not
| ||||||
25 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
26 | of the
fiscal year 2004 certified contribution amount |
| |||||||
| |||||||
1 | determined
under this Section after taking into consideration | ||||||
2 | the transfer to the
System under subsection (d) of Section | ||||||
3 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
4 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
5 | funds appropriated to the System for that fiscal year. If in | ||||||
6 | any month
the amount remaining unexpended from all other | ||||||
7 | appropriations to the System for
the applicable fiscal year | ||||||
8 | (including the appropriations to the System under
Section 8.12 | ||||||
9 | of the State Finance Act and Section 1 of the State Pension | ||||||
10 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
11 | lawfully vouchered under
this Section, the difference shall be | ||||||
12 | paid from the General Revenue Fund under
the continuing | ||||||
13 | appropriation authority provided in Section 1.1 of the State
| ||||||
14 | Pension Funds Continuing Appropriation Act.
| ||||||
15 | (c) The full amount of any annual appropriation for the | ||||||
16 | System for
State fiscal year 1995 shall be transferred and made | ||||||
17 | available to the System
at the beginning of that fiscal year at | ||||||
18 | the request of the Board.
Any excess funds remaining at the end | ||||||
19 | of any fiscal year from appropriations
shall be retained by the | ||||||
20 | System as a general reserve to meet the System's
accrued | ||||||
21 | liabilities.
| ||||||
22 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
23 | 97-694, eff. 6-18-12.)
| ||||||
24 | (40 ILCS 5/2-162) | ||||||
25 | (Text of Section WITHOUT the changes made by P.A. 98-599, |
| |||||||
| |||||||
1 | which has been
held unconstitutional)
| ||||||
2 | Sec. 2-162. Application and expiration of new benefit | ||||||
3 | increases. | ||||||
4 | (a) As used in this Section, "new benefit increase" means | ||||||
5 | an increase in the amount of any benefit provided under this | ||||||
6 | Article, or an expansion of the conditions of eligibility for | ||||||
7 | any benefit under this Article, that results from an amendment | ||||||
8 | to this Code that takes effect after the effective date of this | ||||||
9 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
10 | increase", however, does not include any benefit increase | ||||||
11 | resulting from the changes made to this Article by this | ||||||
12 | amendatory Act of the 99th General Assembly. | ||||||
13 | (b) Notwithstanding any other provision of this Code or any | ||||||
14 | subsequent amendment to this Code, every new benefit increase | ||||||
15 | is subject to this Section and shall be deemed to be granted | ||||||
16 | only in conformance with and contingent upon compliance with | ||||||
17 | the provisions of this Section.
| ||||||
18 | (c) The Public Act enacting a new benefit increase must | ||||||
19 | identify and provide for payment to the System of additional | ||||||
20 | funding at least sufficient to fund the resulting annual | ||||||
21 | increase in cost to the System as it accrues. | ||||||
22 | Every new benefit increase is contingent upon the General | ||||||
23 | Assembly providing the additional funding required under this | ||||||
24 | subsection. The Commission on Government Forecasting and | ||||||
25 | Accountability shall analyze whether adequate additional | ||||||
26 | funding has been provided for the new benefit increase and |
| |||||||
| |||||||
1 | shall report its analysis to the Public Pension Division of the | ||||||
2 | Department of Financial and Professional Regulation. A new | ||||||
3 | benefit increase created by a Public Act that does not include | ||||||
4 | the additional funding required under this subsection is null | ||||||
5 | and void. If the Public Pension Division determines that the | ||||||
6 | additional funding provided for a new benefit increase under | ||||||
7 | this subsection is or has become inadequate, it may so certify | ||||||
8 | to the Governor and the State Comptroller and, in the absence | ||||||
9 | of corrective action by the General Assembly, the new benefit | ||||||
10 | increase shall expire at the end of the fiscal year in which | ||||||
11 | the certification is made.
| ||||||
12 | (d) Every new benefit increase shall expire 5 years after | ||||||
13 | its effective date or on such earlier date as may be specified | ||||||
14 | in the language enacting the new benefit increase or provided | ||||||
15 | under subsection (c). This does not prevent the General | ||||||
16 | Assembly from extending or re-creating a new benefit increase | ||||||
17 | by law. | ||||||
18 | (e) Except as otherwise provided in the language creating | ||||||
19 | the new benefit increase, a new benefit increase that expires | ||||||
20 | under this Section continues to apply to persons who applied | ||||||
21 | and qualified for the affected benefit while the new benefit | ||||||
22 | increase was in effect and to the affected beneficiaries and | ||||||
23 | alternate payees of such persons, but does not apply to any | ||||||
24 | other person, including without limitation a person who | ||||||
25 | continues in service after the expiration date and did not | ||||||
26 | apply and qualify for the affected benefit while the new |
| |||||||
| |||||||
1 | benefit increase was in effect.
| ||||||
2 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
3 | (40 ILCS 5/2-165.1 new) | ||||||
4 | Sec. 2-165.1. Defined contribution plan. | ||||||
5 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
6 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
7 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
8 | by the number of active Tier 1 employees on the effective date | ||||||
9 | of this Section. The defined contribution plan developed under | ||||||
10 | this Section shall be a plan that aggregates employer and | ||||||
11 | employee contributions in individual participant accounts | ||||||
12 | which, after meeting any other requirements, are used for | ||||||
13 | payouts after retirement in accordance with this Section and | ||||||
14 | any other applicable laws. | ||||||
15 | As used in this Section, "defined benefit plan" means the | ||||||
16 | retirement plan available under this Article to Tier 1 | ||||||
17 | employees who have not made the election authorized under this | ||||||
18 | Section. | ||||||
19 | (1) Under the defined contribution plan, an active
Tier | ||||||
20 | 1 employee of this System could elect to cease accruing | ||||||
21 | benefits in the defined benefit plan under this Article and | ||||||
22 | begin accruing benefits for future service in the defined | ||||||
23 | contribution plan. Service credit under the defined | ||||||
24 | contribution plan may be used for determining retirement | ||||||
25 | eligibility under the defined benefit plan. |
| |||||||
| |||||||
1 | (2) Participants in the defined contribution plan
| ||||||
2 | shall pay employee contributions at the same rate as Tier 1 | ||||||
3 | employees in this System who do not participate in the | ||||||
4 | defined contribution plan. | ||||||
5 | (3) State contributions shall be paid into the
accounts | ||||||
6 | of all participants in the defined contribution plan at a | ||||||
7 | uniform rate, expressed as a percentage of compensation and | ||||||
8 | determined for each year. This rate shall be no higher than | ||||||
9 | the employer's normal cost for Tier 1 employees in the | ||||||
10 | defined benefit plan for that year, as determined by the | ||||||
11 | System and expressed as a percentage of compensation, and | ||||||
12 | shall be no lower than 3% of compensation. The State shall | ||||||
13 | adjust this rate annually. | ||||||
14 | (4) The defined contribution plan shall require 5
years | ||||||
15 | of participation in the defined contribution plan before | ||||||
16 | vesting in State contributions. If the participant fails to | ||||||
17 | vest in them, the State contributions, and the earnings | ||||||
18 | thereon, shall be forfeited. | ||||||
19 | (5) The defined contribution plan may provide for
| ||||||
20 | participants in the plan to be eligible for defined | ||||||
21 | disability benefits. If it does, the System shall reduce | ||||||
22 | the employee contributions credited to the participant's | ||||||
23 | defined contribution plan account by an amount determined | ||||||
24 | by the System to cover the cost of offering such benefits. | ||||||
25 | (6) The defined contribution plan shall provide a
| ||||||
26 | variety of options for investments. These options shall |
| |||||||
| |||||||
1 | include investments handled by the Illinois State Board of | ||||||
2 | Investment as well as private sector investment options. | ||||||
3 | (7) The defined contribution plan shall provide a
| ||||||
4 | variety of options for payouts to retirees and their | ||||||
5 | survivors. | ||||||
6 | (8) To the extent authorized under federal law and
as | ||||||
7 | authorized by the System, the plan shall allow former | ||||||
8 | participants in the plan to transfer or roll over employee | ||||||
9 | and vested State contributions, and the earnings thereon, | ||||||
10 | into other qualified retirement plans. | ||||||
11 | (9) The System shall reduce the employee
contributions | ||||||
12 | credited to the participant's defined contribution plan | ||||||
13 | account by an amount determined by the System to cover the | ||||||
14 | cost of offering these benefits and any applicable | ||||||
15 | administrative fees. | ||||||
16 | (b) Only persons who are active Tier 1 employees of the | ||||||
17 | System on the effective date of this Section are eligible to | ||||||
18 | participate in the defined contribution plan. Participation in | ||||||
19 | the defined contribution plan shall be limited to the first 5% | ||||||
20 | of eligible persons who elect to participate. The election to | ||||||
21 | participate in the defined contribution plan is voluntary and | ||||||
22 | irrevocable. | ||||||
23 | (c) An eligible active Tier 1 employee may irrevocably | ||||||
24 | elect to participate in the defined contribution plan by filing | ||||||
25 | with the System a written application to participate that is | ||||||
26 | received by the System prior to its determination that 5% of |
| |||||||
| |||||||
1 | eligible persons have elected to participate in the defined | ||||||
2 | contribution plan. | ||||||
3 | When the System first determines that 5% of eligible | ||||||
4 | persons have elected to participate in the defined contribution | ||||||
5 | plan, the System shall provide notice to previously eligible | ||||||
6 | employees that the plan is no longer available and shall cease | ||||||
7 | accepting applications to participate. | ||||||
8 | (d) The System shall make a good faith effort to contact | ||||||
9 | each active Tier 1 employee who is eligible to participate in | ||||||
10 | the defined contribution plan. The System shall mail | ||||||
11 | information describing the option to join the defined | ||||||
12 | contribution plan to each of these employees to his or her last | ||||||
13 | known address on file with the System. If the employee is not | ||||||
14 | responsive to other means of contact, it is sufficient for the | ||||||
15 | System to publish the details of the option on its website. | ||||||
16 | Upon request for further information describing the | ||||||
17 | option, the System shall provide employees with information | ||||||
18 | from the System before exercising the option to join the plan, | ||||||
19 | including information on the impact to their vested benefits or | ||||||
20 | non-vested service. The individual consultation shall include | ||||||
21 | projections of the participant's defined benefits at | ||||||
22 | retirement or earlier termination of service and the value of | ||||||
23 | the participant's account at retirement or earlier termination | ||||||
24 | of service. The System shall not provide advice or counseling | ||||||
25 | with respect to whether the employee should exercise the | ||||||
26 | option. The System shall inform Tier 1 employees who are |
| |||||||
| |||||||
1 | eligible to participate in the defined contribution plan that | ||||||
2 | they may also wish to obtain information and counsel relating | ||||||
3 | to their option from any other available source, including but | ||||||
4 | not limited to labor organizations, private counsel, and | ||||||
5 | financial advisors. | ||||||
6 | (e) In no event shall the System, its staff, its authorized | ||||||
7 | representatives, or the Board be liable for any information | ||||||
8 | given to an employee under this Section. The System may | ||||||
9 | coordinate with the Illinois Department of Central Management | ||||||
10 | Services and other retirement systems administering a defined | ||||||
11 | contribution plan in accordance with this amendatory Act of the | ||||||
12 | 99th General Assembly to provide information concerning the | ||||||
13 | impact of the option set forth in this Section. | ||||||
14 | (f) Notwithstanding any other provision of this Section, no | ||||||
15 | person shall begin participating in the defined contribution | ||||||
16 | plan until it has attained qualified plan status and received | ||||||
17 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
18 | (g) The System shall report on its progress under this | ||||||
19 | Section, including the available details of the defined | ||||||
20 | contribution plan and the System's plans for informing eligible | ||||||
21 | Tier 1 employees about the plan, to the Governor and the | ||||||
22 | General Assembly on or before January 15, 2018. | ||||||
23 | (h) The Illinois State Board of Investments shall be the | ||||||
24 | plan sponsor for the defined contribution plan established | ||||||
25 | under this Section. | ||||||
26 | (i) The intent of this amendatory Act of the 99th General |
| |||||||
| |||||||
1 | Assembly is to ensure that the State's normal cost of | ||||||
2 | participation in the defined contribution plan is similar, and | ||||||
3 | if possible equal, to the State's normal cost of participation | ||||||
4 | in the defined benefit plan, unless a lower State's normal cost | ||||||
5 | is necessary to ensure cost neutrality. | ||||||
6 | (j) If Section 2-110.3 is determined to be unconstitutional | ||||||
7 | or otherwise invalid by a final unappealable decision of an | ||||||
8 | Illinois court
or a court of competent jurisdiction, then this | ||||||
9 | Section shall not take effect and is repealed by operation of | ||||||
10 | law.
| ||||||
11 | (40 ILCS 5/2-166.1 new) | ||||||
12 | Sec. 2-166.1. Defined contribution plan; termination. If | ||||||
13 | the defined contribution plan is terminated or becomes | ||||||
14 | inoperative pursuant to law, then each participant in the plan | ||||||
15 | shall automatically be deemed to have been a contributing Tier | ||||||
16 | 1 employee in the System's defined benefit plan during the time | ||||||
17 | in which he or she participated in the defined contribution | ||||||
18 | plan, and for that purpose the System shall be entitled to | ||||||
19 | recover the amounts in the participant's defined contribution | ||||||
20 | accounts.
| ||||||
21 | (40 ILCS 5/15-108.1) | ||||||
22 | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . | ||||||
23 | "Tier 1 member": A participant or an annuitant of a | ||||||
24 | retirement annuity under this Article, other than a participant |
| |||||||
| |||||||
1 | in the self-managed plan under Section 15-158.2, who first | ||||||
2 | became a participant or member before January 1, 2011 under any | ||||||
3 | reciprocal retirement system or pension fund established under | ||||||
4 | this Code, other than a retirement system or pension fund | ||||||
5 | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
6 | "Tier 1 member" includes a person who first became a | ||||||
7 | participant under this System before January 1, 2011 and who | ||||||
8 | accepts a refund and is subsequently reemployed by an employer | ||||||
9 | on or after January 1, 2011.
| ||||||
10 | "Tier 1 employee": An employee under this Article, other | ||||||
11 | than a participant in the self-managed plan under Section | ||||||
12 | 15-158.2, who first became a member or participant before | ||||||
13 | January 1, 2011 under any reciprocal retirement system or | ||||||
14 | pension fund established under this Code other than a | ||||||
15 | retirement system or pension fund established under Article 2, | ||||||
16 | 3, 4, 5, 6, or 18 of this Code. However, for the purposes of the | ||||||
17 | election under Section 15-132.9, "Tier 1 employee" does not | ||||||
18 | include a participant under this Article who would qualify as a | ||||||
19 | Tier 1 employee but who has made an irrevocable election on or | ||||||
20 | before June 1, 2017 to retire from service pursuant to the | ||||||
21 | terms of a collective bargaining agreement in effect on June 1, | ||||||
22 | 2017, excluding any extension, amendment, or renewal of that | ||||||
23 | agreement on or after that date, and has notified the System of | ||||||
24 | that election. | ||||||
25 | (Source: P.A. 98-92, eff. 7-16-13.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
2 | Sec. 15-111. Earnings.
| ||||||
3 | (a) "Earnings": Subject to Section 15-111.5, an amount paid | ||||||
4 | for personal services equal to the sum of
the basic | ||||||
5 | compensation plus extra compensation for summer teaching,
| ||||||
6 | overtime or other extra service. For periods for which an | ||||||
7 | employee receives
service credit under subsection (c) of | ||||||
8 | Section 15-113.1 or Section 15-113.2,
earnings are equal to the | ||||||
9 | basic compensation on which contributions are
paid by the | ||||||
10 | employee during such periods. Compensation for employment | ||||||
11 | which is
irregular, intermittent and temporary shall not be | ||||||
12 | considered earnings, unless
the participant is also receiving | ||||||
13 | earnings from the employer as an employee
under Section 15-107.
| ||||||
14 | With respect to transition pay paid by the University of | ||||||
15 | Illinois to a
person who was a participating employee employed | ||||||
16 | in the fire department of
the University of Illinois's | ||||||
17 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
18 | of that fire department:
| ||||||
19 | (1) "Earnings" includes transition pay paid to the | ||||||
20 | employee on or after
the effective date of this amendatory | ||||||
21 | Act of the 91st General Assembly.
| ||||||
22 | (2) "Earnings" includes transition pay paid to the | ||||||
23 | employee before the
effective date of this amendatory Act | ||||||
24 | of the 91st General Assembly only if (i)
employee | ||||||
25 | contributions under Section 15-157 have been withheld from | ||||||
26 | that
transition pay or (ii) the employee pays to the System |
| |||||||
| |||||||
1 | before January 1, 2001
an amount representing employee | ||||||
2 | contributions under Section 15-157 on that
transition pay. | ||||||
3 | Employee contributions under item (ii) may be paid in a | ||||||
4 | lump
sum, by withholding from additional transition pay | ||||||
5 | accruing before January 1,
2001, or in any other manner | ||||||
6 | approved by the System. Upon payment of the
employee | ||||||
7 | contributions on transition pay, the corresponding | ||||||
8 | employer
contributions become an obligation of the State.
| ||||||
9 | (a-5) Notwithstanding any other provision of this Section, | ||||||
10 | "earnings" does not include any future increase in income that | ||||||
11 | is offered for service by an employer to a Tier 1 employee | ||||||
12 | under this Article pursuant to the condition set forth in | ||||||
13 | subsection (c) of Section 15-132.9 and accepted under that | ||||||
14 | condition by a Tier 1 employee who has made the election under | ||||||
15 | paragraph (2) of subsection (a) of Section 15-132.9. | ||||||
16 | (a-10) Notwithstanding any other provision of this | ||||||
17 | Section, "earnings" does not include any consideration payment | ||||||
18 | made to a Tier 1 employee. | ||||||
19 | (b) For a Tier 2 member, the annual earnings shall not | ||||||
20 | exceed $106,800; however, that amount shall annually | ||||||
21 | thereafter be increased by the lesser of (i) 3% of that amount, | ||||||
22 | including all previous adjustments, or (ii) one half the annual | ||||||
23 | unadjusted percentage increase (but not less than zero) in the | ||||||
24 | consumer price index-u for the 12 months ending with the | ||||||
25 | September preceding each November 1, including all previous | ||||||
26 | adjustments. |
| |||||||
| |||||||
1 | For the purposes of this Section, "consumer price index u" | ||||||
2 | means the index published by the Bureau of Labor Statistics of | ||||||
3 | the United States Department of Labor that measures the average | ||||||
4 | change in prices of goods and services purchased by all urban | ||||||
5 | consumers, United States city average, all items, 1982-84 = | ||||||
6 | 100. The new amount resulting from each annual adjustment shall | ||||||
7 | be determined by the Public Pension Division of the Department | ||||||
8 | of Insurance and made available to the boards of the retirement | ||||||
9 | systems and pension funds by November 1 of each year. | ||||||
10 | (c) With each submission of payroll information in the | ||||||
11 | manner prescribed by the System, the
employer shall certify | ||||||
12 | that the payroll information is correct and complies with all | ||||||
13 | applicable
State and federal laws. | ||||||
14 | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
| ||||||
15 | (40 ILCS 5/15-112.1 new) | ||||||
16 | Sec. 15-112.1. Future increase in income. "Future increase | ||||||
17 | in income" means an increase in income in any form offered by | ||||||
18 | an employer to a Tier 1 employee for service under this Article | ||||||
19 | after June 30, 2018 that qualifies as "earnings", as defined in | ||||||
20 | Section 15-111, or would qualify as "earnings" but for the fact | ||||||
21 | that it was offered to and accepted by a Tier 1 employee under | ||||||
22 | the condition set forth in subsection (c) of Section 15-132.9. | ||||||
23 | The term "future increase in income" does not include an | ||||||
24 | increase in income in any form that is paid to a Tier 1 | ||||||
25 | employee under an employment contract or a collective |
| |||||||
| |||||||
1 | bargaining agreement that is in effect on the effective date of | ||||||
2 | this Section, but does include an increase in income in any | ||||||
3 | form pursuant to an extension, amendment, or renewal of any | ||||||
4 | such employment contract or collective bargaining agreement on | ||||||
5 | or after the effective date of this Section.
| ||||||
6 | (40 ILCS 5/15-132.9 new) | ||||||
7 | Sec. 15-132.9. Election by Tier 1 employees. | ||||||
8 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
9 | election either: | ||||||
10 | (1) to agree to delay his or her eligibility for | ||||||
11 | automatic annual increases in retirement annuity as | ||||||
12 | provided in subsection (d-1) of Section 15-136 and to have | ||||||
13 | the amount of the automatic annual increases in his or her | ||||||
14 | retirement annuity that are otherwise provided for in this | ||||||
15 | Article calculated, instead, as provided in subsection | ||||||
16 | (d-1) of Section 15-136; or | ||||||
17 | (2) to not agree to the provisions of paragraph (1) of | ||||||
18 | this subsection. | ||||||
19 | The election required under this subsection (a) shall be | ||||||
20 | made by each active Tier 1 employee no earlier than January 1, | ||||||
21 | 2018 and no later than March 31, 2018, except that: | ||||||
22 | (i) a person who becomes a Tier 1 employee under this | ||||||
23 | Article on or after January 1, 2018 must make the election | ||||||
24 | under this subsection (a) within 60 days after becoming a | ||||||
25 | Tier 1 employee; and |
| |||||||
| |||||||
1 | (ii) a person who returns to active service as a Tier 1 | ||||||
2 | employee under this Article on or after January 1, 2018 and | ||||||
3 | has not yet made an election under this Section must make | ||||||
4 | the election under this subsection (a) within 60 days after | ||||||
5 | returning to active service as a Tier 1 employee. | ||||||
6 | If a Tier 1 employee fails for any reason to make a | ||||||
7 | required election under this subsection within the time | ||||||
8 | specified, then the employee shall be deemed to have made the | ||||||
9 | election under paragraph (2) of this subsection. | ||||||
10 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
11 | court or a court of competent jurisdiction pending the entry of | ||||||
12 | a final and unappealable decision, and this Section is | ||||||
13 | determined to be constitutional or otherwise valid by a final | ||||||
14 | unappealable decision of an Illinois court or a court of | ||||||
15 | competent jurisdiction, then the election procedure set forth | ||||||
16 | in subsection (a) of this Section shall commence on the 180th | ||||||
17 | calendar day after the date of the issuance of the final | ||||||
18 | unappealable decision and shall conclude at the end of the | ||||||
19 | 270th calendar day after that date. | ||||||
20 | (a-10) All elections under subsection (a) that are made or | ||||||
21 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
22 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
23 | after July 1, 2018 shall take effect on the first day of the | ||||||
24 | month following the month in which the election is made or | ||||||
25 | deemed to be made. | ||||||
26 | (b) As adequate and legal consideration provided under this |
| |||||||
| |||||||
1 | amendatory Act of the 99th General Assembly for making an | ||||||
2 | election under paragraph (1) of subsection (a) of this Section, | ||||||
3 | the employer shall be expressly and irrevocably prohibited from | ||||||
4 | offering any future increases in income to a Tier 1 employee | ||||||
5 | who has made an election under paragraph (1) of subsection (a) | ||||||
6 | of this Section on the condition of not constituting earnings | ||||||
7 | under Section 15-111. | ||||||
8 | As adequate and legal consideration provided under this | ||||||
9 | amendatory Act of the 99th General Assembly for making an | ||||||
10 | election under paragraph (1) of subsection (a) of this Section, | ||||||
11 | each Tier 1 employee who has made an election under paragraph | ||||||
12 | (1) of subsection (a) of this Section shall receive a | ||||||
13 | consideration payment equal to 10% of the contributions made by | ||||||
14 | or on behalf of the employee under Section 15-157 before the | ||||||
15 | effective date of that election. The State Comptroller shall | ||||||
16 | pay the consideration payment to the Tier 1 employee out of | ||||||
17 | funds appropriated for that purpose under Section 1.9 of the | ||||||
18 | State Pension Funds Continuing Appropriation Act. The System | ||||||
19 | shall calculate the amount of each consideration payment and | ||||||
20 | shall certify to the State Comptroller the amount of the | ||||||
21 | consideration payment, together with the name, address, and any | ||||||
22 | other available payment information of the Tier 1 employee as | ||||||
23 | found in the records of the System. | ||||||
24 | (c) A Tier 1 employee who makes the election under | ||||||
25 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
26 | subject to paragraph (1) of subsection (a) of this Section. |
| |||||||
| |||||||
1 | However, any future increases in income offered by an employer | ||||||
2 | under this Article to a Tier 1 employee who has made the | ||||||
3 | election under paragraph (2) of subsection (a) of this Section | ||||||
4 | shall be offered by the employer expressly and irrevocably on | ||||||
5 | the condition of not constituting earnings under Section | ||||||
6 | 15-111, and the employee may not accept any future increase in | ||||||
7 | income that is offered without this condition. | ||||||
8 | (d) The System shall make a good faith effort to contact | ||||||
9 | each Tier 1 employee subject to this Section. The System shall | ||||||
10 | mail information describing the required election to each Tier | ||||||
11 | 1 employee by United States Postal Service mail to his or her | ||||||
12 | last known address on file with the System. If the Tier 1 | ||||||
13 | employee is not responsive to other means of contact, it is | ||||||
14 | sufficient for the System to publish the details of any | ||||||
15 | required elections on its website or to publish those details | ||||||
16 | in a regularly published newsletter or other existing public | ||||||
17 | forum. | ||||||
18 | Tier 1 employees who are subject to this Section shall be | ||||||
19 | provided with an election packet containing information | ||||||
20 | regarding their options, as well as the forms necessary to make | ||||||
21 | the required election. Upon request, the System shall offer | ||||||
22 | Tier 1 employees an opportunity to receive information from the | ||||||
23 | System before making the required election. The information may | ||||||
24 | consist of video materials, group presentations, individual | ||||||
25 | consultation with a member or authorized representative of the | ||||||
26 | System in person or by telephone or other electronic means, or |
| |||||||
| |||||||
1 | any combination of those methods. The System shall not provide | ||||||
2 | advice or counseling with respect to which election a Tier 1 | ||||||
3 | employee should make or specific to the legal or tax | ||||||
4 | circumstances of or consequences to the Tier 1 employee. | ||||||
5 | The System shall inform Tier 1 employees in the election | ||||||
6 | packet required under this subsection that the Tier 1 employee | ||||||
7 | may also wish to obtain information and counsel relating to the | ||||||
8 | election required under this Section from any other available | ||||||
9 | source, including, but not limited to, labor organizations and | ||||||
10 | private counsel. | ||||||
11 | In no event shall the System, its staff, or the Board be | ||||||
12 | held liable for any information given to a member regarding the | ||||||
13 | elections under this Section. The System shall coordinate with | ||||||
14 | the Illinois Department of Central Management Services and each | ||||||
15 | other retirement system administering an election in | ||||||
16 | accordance with this amendatory Act of the 99th General | ||||||
17 | Assembly to provide information concerning the impact of the | ||||||
18 | election set forth in this Section. | ||||||
19 | (e) Notwithstanding any other provision of law, an employer | ||||||
20 | under this Article is required to offer any future increases in | ||||||
21 | income expressly and irrevocably on the condition of not | ||||||
22 | constituting "earnings" under Section 15-111 to any Tier 1 | ||||||
23 | employee who has made an election under paragraph (2) of | ||||||
24 | subsection (a) of this Section. A Tier 1 employee who has made | ||||||
25 | an election under paragraph (2) of subsection (a) of this | ||||||
26 | Section shall not accept any future increase in income that is |
| |||||||
| |||||||
1 | offered by an employer under this Article without the condition | ||||||
2 | set forth in this subsection. | ||||||
3 | For purposes of legislative intent, the condition set forth | ||||||
4 | in this subsection shall be construed in a manner that ensures | ||||||
5 | that the condition is not violated or circumvented through any | ||||||
6 | contrivance of any kind. | ||||||
7 | (f) A member's election under this Section is not a | ||||||
8 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
9 | of this Code. | ||||||
10 | (g) No provision of this Section shall be interpreted in a | ||||||
11 | way that would cause the System to cease to be a qualified plan | ||||||
12 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
13 | (h) If an election created by this amendatory Act in any | ||||||
14 | other Article of this Code or any change deriving from that | ||||||
15 | election is determined to be unconstitutional or otherwise | ||||||
16 | invalid by a final unappealable decision of an Illinois court | ||||||
17 | or a court of competent jurisdiction, the invalidity of that | ||||||
18 | provision shall not in any way affect the validity of this | ||||||
19 | Section or the changes deriving from the election required | ||||||
20 | under this Section.
| ||||||
21 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
22 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
23 | which has been held unconstitutional)
| ||||||
24 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
25 | of this
Section 15-136 apply only to those participants who are |
| |||||||
| |||||||
1 | participating in the
traditional benefit package or the | ||||||
2 | portable benefit package and do not
apply to participants who | ||||||
3 | are participating in the self-managed plan.
| ||||||
4 | (a) The amount of a participant's retirement annuity, | ||||||
5 | expressed in the form
of a single-life annuity, shall be | ||||||
6 | determined by whichever of the following
rules is applicable | ||||||
7 | and provides the largest annuity:
| ||||||
8 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
9 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
10 | for each of the next 10 years of
service, 2.10% for each year | ||||||
11 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
12 | each year in excess of 30; or for persons who retire on or
| ||||||
13 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
14 | each year of
service.
| ||||||
15 | Rule 2: The retirement annuity shall be the sum of the | ||||||
16 | following,
determined from amounts credited to the participant | ||||||
17 | in accordance with the
actuarial tables and the effective rate | ||||||
18 | of interest in effect at the
time the retirement annuity | ||||||
19 | begins:
| ||||||
20 | (i) the normal annuity which can be provided on an | ||||||
21 | actuarially
equivalent basis, by the accumulated normal | ||||||
22 | contributions as of
the date the annuity begins;
| ||||||
23 | (ii) an annuity from employer contributions of an | ||||||
24 | amount equal to that
which can be provided on an | ||||||
25 | actuarially equivalent basis from the accumulated
normal | ||||||
26 | contributions made by the participant under Section |
| |||||||
| |||||||
1 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
2 | accumulated normal contributions made by
the participant; | ||||||
3 | and
| ||||||
4 | (iii) the annuity that can be provided on an | ||||||
5 | actuarially equivalent basis
from the entire contribution | ||||||
6 | made by the participant under Section 15-113.3.
| ||||||
7 | With respect to a police officer or firefighter who retires | ||||||
8 | on or after
August 14, 1998, the accumulated normal | ||||||
9 | contributions taken into account under
clauses (i) and (ii) of | ||||||
10 | this Rule 2 shall include the additional normal
contributions | ||||||
11 | made by the police officer or firefighter under Section
| ||||||
12 | 15-157(a).
| ||||||
13 | The amount of a retirement annuity calculated under this | ||||||
14 | Rule 2 shall
be computed solely on the basis of the | ||||||
15 | participant's accumulated normal
contributions, as specified | ||||||
16 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
17 | or employer contribution for early retirement under
Section | ||||||
18 | 15-136.2 nor any other employer contribution shall be used in | ||||||
19 | the
calculation of the amount of a retirement annuity under | ||||||
20 | this Rule 2.
| ||||||
21 | This amendatory Act of the 91st General Assembly is a | ||||||
22 | clarification of
existing law and applies to every participant | ||||||
23 | and annuitant without regard to
whether status as an employee | ||||||
24 | terminates before the effective date of this
amendatory Act.
| ||||||
25 | This Rule 2 does not apply to a person who first becomes an | ||||||
26 | employee under this Article on or after July 1, 2005.
|
| |||||||
| |||||||
1 | Rule 3: The retirement annuity of a participant who is | ||||||
2 | employed
at least one-half time during the period on which his | ||||||
3 | or her final rate of
earnings is based, shall be equal to the | ||||||
4 | participant's years of service
not to exceed 30, multiplied by | ||||||
5 | (1) $96 if the participant's final rate
of earnings is less | ||||||
6 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
7 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
8 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
9 | the final rate
of earnings is at least $5,500 but less than | ||||||
10 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
11 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
12 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
13 | the final rate of earnings is at least $8,500 but
less than | ||||||
14 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
15 | more, except that the annuity for those persons having made an | ||||||
16 | election under
Section 15-154(a-1) shall be calculated and | ||||||
17 | payable under the portable
retirement benefit program pursuant | ||||||
18 | to the provisions of Section 15-136.4.
| ||||||
19 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
20 | more years of
service as a police officer or firefighter, and a | ||||||
21 | participant who is age 55 or
over and has at least 20 but less | ||||||
22 | than 25 years of service as a police officer
or firefighter, | ||||||
23 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
24 | final rate of earnings for each of the first 10 years of | ||||||
25 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
26 | the next 10 years of service as a
police officer or |
| |||||||
| |||||||
1 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
2 | officer or firefighter in excess of 20. The retirement annuity | ||||||
3 | for all other
service shall be computed under Rule 1. A Tier 2 | ||||||
4 | member is eligible for a retirement annuity calculated under | ||||||
5 | Rule 4 only if that Tier 2 member meets the service | ||||||
6 | requirements for that benefit calculation as prescribed under | ||||||
7 | this Rule 4 in addition to the applicable age requirement under | ||||||
8 | subsection (a-5) of Section 15-135.
| ||||||
9 | For purposes of this Rule 4, a participant's service as a | ||||||
10 | firefighter
shall also include the following:
| ||||||
11 | (i) service that is performed while the person is an | ||||||
12 | employee under
subsection (h) of Section 15-107; and
| ||||||
13 | (ii) in the case of an individual who was a | ||||||
14 | participating employee
employed in the fire department of | ||||||
15 | the University of Illinois's
Champaign-Urbana campus | ||||||
16 | immediately prior to the elimination of that fire
| ||||||
17 | department and who immediately after the elimination of | ||||||
18 | that fire department
transferred to another job with the | ||||||
19 | University of Illinois, service performed
as an employee of | ||||||
20 | the University of Illinois in a position other than police
| ||||||
21 | officer or firefighter, from the date of that transfer | ||||||
22 | until the employee's
next termination of service with the | ||||||
23 | University of Illinois.
| ||||||
24 | (b) For a Tier 1 member, the retirement annuity provided | ||||||
25 | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | ||||||
26 | month the participant is under age 60 at the
time of |
| |||||||
| |||||||
1 | retirement. However, this reduction shall not apply in the | ||||||
2 | following
cases:
| ||||||
3 | (1) For a disabled participant whose disability | ||||||
4 | benefits have been
discontinued because he or she has | ||||||
5 | exhausted eligibility for disability
benefits under clause | ||||||
6 | (6) of Section 15-152;
| ||||||
7 | (2) For a participant who has at least the number of | ||||||
8 | years of service
required to retire at any age under | ||||||
9 | subsection (a) of Section 15-135; or
| ||||||
10 | (3) For that portion of a retirement annuity which has | ||||||
11 | been provided on
account of service of the participant | ||||||
12 | during periods when he or she performed
the duties of a | ||||||
13 | police officer or firefighter, if these duties were | ||||||
14 | performed
for at least 5 years immediately preceding the | ||||||
15 | date the retirement annuity
is to begin.
| ||||||
16 | (b-5) The retirement annuity of a Tier 2 member who is | ||||||
17 | retiring after attaining age 62 with at least 10 years of | ||||||
18 | service credit shall be reduced by 1/2 of 1% for each full | ||||||
19 | month that the member's age is under age 67. | ||||||
20 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
21 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
22 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
23 | Code of 1986, as such Section may be
amended from time to time | ||||||
24 | and as such benefit limits shall be adjusted by
the | ||||||
25 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
26 | earnings.
|
| |||||||
| |||||||
1 | (d) Subject to the provisions of subsection (d-1), a A Tier | ||||||
2 | 1 member whose status as an employee terminates after August | ||||||
3 | 14,
1969 shall receive automatic increases in his or her | ||||||
4 | retirement annuity as
follows:
| ||||||
5 | Effective January 1 immediately following the date the | ||||||
6 | retirement annuity
begins, the annuitant shall receive an | ||||||
7 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
8 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
9 | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | ||||||
10 | number of full months which elapsed from the date the | ||||||
11 | retirement annuity
payments began to January 1, 1972, plus | ||||||
12 | 0.1667% of such annuity, multiplied by
the number of full | ||||||
13 | months which elapsed from January 1, 1972, or the date the
| ||||||
14 | retirement annuity payments began, whichever is later, to | ||||||
15 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
16 | number of full months which elapsed
from January 1, 1978, or | ||||||
17 | the date the retirement annuity payments began,
whichever is | ||||||
18 | later, to the effective date of the increase.
| ||||||
19 | The annuitant shall receive an increase in his or her | ||||||
20 | monthly retirement
annuity on each January 1 thereafter during | ||||||
21 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
22 | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | ||||||
23 | Section. The change made under this subsection by P.A. 81-970 | ||||||
24 | is
effective January 1, 1980 and applies to each annuitant | ||||||
25 | whose status as
an employee terminates before or after that | ||||||
26 | date.
|
| |||||||
| |||||||
1 | Beginning January 1, 1990, and except as provided in | ||||||
2 | subsection (d-1), all automatic annual increases payable under
| ||||||
3 | this Section shall be calculated as a percentage of the total | ||||||
4 | annuity
payable at the time of the increase, including all | ||||||
5 | increases previously
granted under this Article.
| ||||||
6 | The change made in this subsection by P.A. 85-1008 is | ||||||
7 | effective January
26, 1988, and is applicable without regard to | ||||||
8 | whether status as an employee
terminated before that date.
| ||||||
9 | (d-1) Notwithstanding any other provision of this Article, | ||||||
10 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
11 | of subsection (a) of Section 15-132.9: | ||||||
12 | (1) The initial increase in retirement annuity under | ||||||
13 | this Section shall occur on the January 1 occurring either | ||||||
14 | on or after the attainment of age 67 or the fifth | ||||||
15 | anniversary of the annuity start date, whichever is | ||||||
16 | earlier. | ||||||
17 | (2) The amount of each automatic annual increase in | ||||||
18 | retirement annuity occurring on or after the effective date | ||||||
19 | of that election shall be calculated as a percentage of the | ||||||
20 | originally granted retirement annuity, equal to 3% or | ||||||
21 | one-half the annual unadjusted percentage increase (but | ||||||
22 | not less than zero) in the consumer price index-u for the | ||||||
23 | 12 months ending with the September preceding each November | ||||||
24 | 1, whichever is less. If the annual unadjusted percentage | ||||||
25 | change in the consumer price index-u for the 12 months | ||||||
26 | ending with the September preceding each November 1 is zero |
| |||||||
| |||||||
1 | or there is a decrease, then the annuity shall not be | ||||||
2 | increased. | ||||||
3 | For the purposes of this Section, "consumer price index-u" | ||||||
4 | means
the index published by the Bureau of Labor Statistics of | ||||||
5 | the United States
Department of Labor that measures the average | ||||||
6 | change in prices of goods and
services purchased by all urban | ||||||
7 | consumers, United States city average, all
items, 1982-84 = | ||||||
8 | 100. The new amount resulting from each annual adjustment
shall | ||||||
9 | be determined by the Public Pension Division of the Department | ||||||
10 | of Insurance and made available to the board of the retirement | ||||||
11 | system by November 1 of each year. | ||||||
12 | (d-5) A retirement annuity of a Tier 2 member shall receive | ||||||
13 | annual increases on the January 1 occurring either on or after | ||||||
14 | the attainment of age 67 or the first anniversary of the | ||||||
15 | annuity start date, whichever is later. Each annual increase | ||||||
16 | shall be calculated at 3% or one half the annual unadjusted | ||||||
17 | percentage increase (but not less than zero) in the consumer | ||||||
18 | price index-u for the 12 months ending with the September | ||||||
19 | preceding each November 1, whichever is less, of the originally | ||||||
20 | granted retirement annuity. If the annual unadjusted | ||||||
21 | percentage change in the consumer price index-u for the 12 | ||||||
22 | months ending with the September preceding each November 1 is | ||||||
23 | zero or there is a decrease, then the annuity shall not be | ||||||
24 | increased. | ||||||
25 | (e) If, on January 1, 1987, or the date the retirement | ||||||
26 | annuity payment
period begins, whichever is later, the sum of |
| |||||||
| |||||||
1 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
2 | Section
and the automatic annual increases provided under the | ||||||
3 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
4 | the retirement
annuity which would be provided by Rule 3, the | ||||||
5 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
6 | the date the
retirement annuity payment period begins, | ||||||
7 | whichever is later, to the amount
which would be provided by | ||||||
8 | Rule 3 of this Section. Such increased
amount shall be | ||||||
9 | considered as the retirement annuity in determining
benefits | ||||||
10 | provided under other Sections of this Article. This paragraph
| ||||||
11 | applies without regard to whether status as an employee | ||||||
12 | terminated before the
effective date of this amendatory Act of | ||||||
13 | 1987, provided that the annuitant was
employed at least | ||||||
14 | one-half time during the period on which the final rate of
| ||||||
15 | earnings was based.
| ||||||
16 | (f) A participant is entitled to such additional annuity as | ||||||
17 | may be provided
on an actuarially equivalent basis, by any | ||||||
18 | accumulated
additional contributions to his or her credit. | ||||||
19 | However,
the additional contributions made by the participant | ||||||
20 | toward the automatic
increases in annuity provided under this | ||||||
21 | Section shall not be taken into
account in determining the | ||||||
22 | amount of such additional annuity.
| ||||||
23 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
24 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
25 | or in part to an employer, and (2)
a participant transfers | ||||||
26 | employment from such governmental unit to such employer
within |
| |||||||
| |||||||
1 | 6 months after the transfer of the function, and (3) the sum of | ||||||
2 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
3 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
4 | participant by all other retirement
systems covered by Article | ||||||
5 | 20, and (C) the initial primary insurance amount to
which the | ||||||
6 | participant is entitled under the Social Security Act, is less | ||||||
7 | than
the retirement annuity which would have been payable if | ||||||
8 | all of the
participant's pension credits validated under | ||||||
9 | Section 20-109 had been validated
under this system, a | ||||||
10 | supplemental annuity equal to the difference in such
amounts | ||||||
11 | shall be payable to the participant.
| ||||||
12 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
13 | retirement annuity on or before January 1, 1971 shall have his | ||||||
14 | or her
retirement annuity then being paid increased $1 per | ||||||
15 | month for
each year of creditable service. On January 1, 1982, | ||||||
16 | an annuitant whose
retirement annuity began on or before | ||||||
17 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
18 | being paid increased $1 per month for each year of
creditable | ||||||
19 | service.
| ||||||
20 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
21 | annuity began on or
before January 1, 1977, shall have the | ||||||
22 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
23 | per year of creditable service times the number of years
that | ||||||
24 | have elapsed since the annuity began.
| ||||||
25 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | ||||||
26 | 98-92, eff. 7-16-13.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
2 | Sec. 15-155. Employer contributions.
| ||||||
3 | (a) The State of Illinois shall make contributions by | ||||||
4 | appropriations of
amounts which, together with the other | ||||||
5 | employer contributions from trust,
federal, and other funds, | ||||||
6 | employee contributions, income from investments,
and other | ||||||
7 | income of this System, will be sufficient to meet the cost of
| ||||||
8 | maintaining and administering the System on a 90% funded basis | ||||||
9 | in accordance
with actuarial recommendations.
| ||||||
10 | The Board shall determine the amount of State contributions | ||||||
11 | required for
each fiscal year on the basis of the actuarial | ||||||
12 | tables and other assumptions
adopted by the Board and the | ||||||
13 | recommendations of the actuary, using the formula
in subsection | ||||||
14 | (a-1).
| ||||||
15 | (a-1) For State fiscal years 2018 through 2045 (except as | ||||||
16 | otherwise provided for fiscal year 2019), the minimum | ||||||
17 | contribution to the System to be made by the State for each | ||||||
18 | fiscal year shall be an amount determined by the System to be | ||||||
19 | sufficient to bring the total assets of the System up to 90% of | ||||||
20 | the total actuarial liabilities of the System by the end of | ||||||
21 | State fiscal year 2045. In making these determinations, the | ||||||
22 | required State contribution shall be calculated each year as a | ||||||
23 | level percentage of total payroll, including payroll that is | ||||||
24 | not deemed pensionable, over the years remaining to and | ||||||
25 | including fiscal year 2045 and shall be determined under the |
| |||||||
| |||||||
1 | projected unit credit actuarial cost method. | ||||||
2 | For State fiscal year 2019: | ||||||
3 | (1) The initial calculation and certification shall be | ||||||
4 | based on the amount determined above. | ||||||
5 | (2) For purposes of the recertification due on or | ||||||
6 | before May 1, 2018, the recalculation of the required State | ||||||
7 | contribution for fiscal year 2019 shall take into account | ||||||
8 | the effect on the System's liabilities of the elections | ||||||
9 | made under Section 15-132.9. | ||||||
10 | (3) For purposes of the recertification due on or | ||||||
11 | before October 1, 2018, the total required State | ||||||
12 | contribution for fiscal year 2019 shall be reduced by the | ||||||
13 | amount of the consideration payments made to Tier 1 | ||||||
14 | employees who made the election under paragraph (1) of | ||||||
15 | subsection (a) of Section 15-132.9. | ||||||
16 | Beginning in State fiscal year 2018, any increase or
| ||||||
17 | decrease in State contribution over the prior fiscal year due
| ||||||
18 | exclusively to changes in actuarial or investment assumptions
| ||||||
19 | adopted by the Board shall be included in the State
| ||||||
20 | contribution to the System, as a percentage of the applicable
| ||||||
21 | employee payroll, and shall be increased in equal annual
| ||||||
22 | increments so that by the State fiscal year occurring 5 years
| ||||||
23 | after the adoption of the actuarial or investment assumptions,
| ||||||
24 | the State is contributing at the rate otherwise required under
| ||||||
25 | this Section. | ||||||
26 | For State fiscal years 2012 through 2017 2045 , the minimum |
| |||||||
| |||||||
1 | contribution
to the System to be made by the State for each | ||||||
2 | fiscal year shall be an amount
determined by the System to be | ||||||
3 | sufficient to bring the total assets of the
System up to 90% of | ||||||
4 | the total actuarial liabilities of the System by the end of
| ||||||
5 | State fiscal year 2045. In making these determinations, the | ||||||
6 | required State
contribution shall be calculated each year as a | ||||||
7 | level percentage of payroll
over the years remaining to and | ||||||
8 | including fiscal year 2045 and shall be
determined under the | ||||||
9 | projected unit credit actuarial cost method.
| ||||||
10 | For State fiscal years 1996 through 2005, the State | ||||||
11 | contribution to
the System, as a percentage of the applicable | ||||||
12 | employee payroll, shall be
increased in equal annual increments | ||||||
13 | so that by State fiscal year 2011, the
State is contributing at | ||||||
14 | the rate required under this Section.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State
contribution for State fiscal year 2006 is | ||||||
17 | $166,641,900.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2007 is | ||||||
20 | $252,064,100.
| ||||||
21 | For each of State fiscal years 2008 through 2009, the State | ||||||
22 | contribution to
the System, as a percentage of the applicable | ||||||
23 | employee payroll, shall be
increased in equal annual increments | ||||||
24 | from the required State contribution for State fiscal year | ||||||
25 | 2007, so that by State fiscal year 2011, the
State is | ||||||
26 | contributing at the rate otherwise required under this Section.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State contribution for State fiscal year 2010 is | ||||||
3 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
4 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
5 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
6 | share of bond sale expenses determined by the System's share of | ||||||
7 | total bond proceeds, (ii) any amounts received from the General | ||||||
8 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
9 | proceeds due to the issuance of discounted bonds, if | ||||||
10 | applicable. | ||||||
11 | Notwithstanding any other provision of this Article, the
| ||||||
12 | total required State contribution for State fiscal year 2011 is
| ||||||
13 | the amount recertified by the System on or before April 1, 2011 | ||||||
14 | pursuant to Section 15-165 and shall be made from the State | ||||||
15 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
16 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
17 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
18 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
19 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
20 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
21 | discounted bonds, if
applicable. | ||||||
22 | Beginning in State fiscal year 2046, the minimum State | ||||||
23 | contribution for
each fiscal year shall be the amount needed to | ||||||
24 | maintain the total assets of
the System at 90% of the total | ||||||
25 | actuarial liabilities of the System.
| ||||||
26 | Amounts received by the System pursuant to Section 25 of |
| |||||||
| |||||||
1 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
2 | Finance Act in any fiscal year do not reduce and do not | ||||||
3 | constitute payment of any portion of the minimum State | ||||||
4 | contribution required under this Article in that fiscal year. | ||||||
5 | Such amounts shall not reduce, and shall not be included in the | ||||||
6 | calculation of, the required State contributions under this | ||||||
7 | Article in any future year until the System has reached a | ||||||
8 | funding ratio of at least 90%. A reference in this Article to | ||||||
9 | the "required State contribution" or any substantially similar | ||||||
10 | term does not include or apply to any amounts payable to the | ||||||
11 | System under Section 25 of the Budget Stabilization Act. | ||||||
12 | Notwithstanding any other provision of this Section, the | ||||||
13 | required State
contribution for State fiscal year 2005 and for | ||||||
14 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
15 | under this Section and
certified under Section 15-165, shall | ||||||
16 | not exceed an amount equal to (i) the
amount of the required | ||||||
17 | State contribution that would have been calculated under
this | ||||||
18 | Section for that fiscal year if the System had not received any | ||||||
19 | payments
under subsection (d) of Section 7.2 of the General | ||||||
20 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
21 | total debt service payments for that fiscal
year on the bonds | ||||||
22 | issued in fiscal year 2003 for the purposes of that Section | ||||||
23 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
24 | the same as the System's portion of
the total moneys | ||||||
25 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
26 | Obligation Bond Act. In determining this maximum for State |
| |||||||
| |||||||
1 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
2 | in item (i) shall be increased, as a percentage of the | ||||||
3 | applicable employee payroll, in equal increments calculated | ||||||
4 | from the sum of the required State contribution for State | ||||||
5 | fiscal year 2007 plus the applicable portion of the State's | ||||||
6 | total debt service payments for fiscal year 2007 on the bonds | ||||||
7 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
8 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
9 | 2011, the
State is contributing at the rate otherwise required | ||||||
10 | under this Section.
| ||||||
11 | (b) If an employee is paid from trust or federal funds, the | ||||||
12 | employer
shall pay to the Board contributions from those funds | ||||||
13 | which are
sufficient to cover the accruing normal costs on | ||||||
14 | behalf of the employee.
However, universities having employees | ||||||
15 | who are compensated out of local
auxiliary funds, income funds, | ||||||
16 | or service enterprise funds are not required
to pay such | ||||||
17 | contributions on behalf of those employees. The local auxiliary
| ||||||
18 | funds, income funds, and service enterprise funds of | ||||||
19 | universities shall not be
considered trust funds for the | ||||||
20 | purpose of this Article, but funds of alumni
associations, | ||||||
21 | foundations, and athletic associations which are affiliated | ||||||
22 | with
the universities included as employers under this Article | ||||||
23 | and other employers
which do not receive State appropriations | ||||||
24 | are considered to be trust funds for
the purpose of this | ||||||
25 | Article.
| ||||||
26 | (b-1) The City of Urbana and the City of Champaign shall |
| |||||||
| |||||||
1 | each make
employer contributions to this System for their | ||||||
2 | respective firefighter
employees who participate in this | ||||||
3 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
4 | of contributions to be made by those municipalities shall
be | ||||||
5 | determined annually by the Board on the basis of the actuarial | ||||||
6 | assumptions
adopted by the Board and the recommendations of the | ||||||
7 | actuary, and shall be
expressed as a percentage of salary for | ||||||
8 | each such employee. The Board shall
certify the rate to the | ||||||
9 | affected municipalities as soon as may be practical.
The | ||||||
10 | employer contributions required under this subsection shall be | ||||||
11 | remitted by
the municipality to the System at the same time and | ||||||
12 | in the same manner as
employee contributions.
| ||||||
13 | (c) Through State fiscal year 1995: The total employer | ||||||
14 | contribution shall
be apportioned among the various funds of | ||||||
15 | the State and other employers,
whether trust, federal, or other | ||||||
16 | funds, in accordance with actuarial procedures
approved by the | ||||||
17 | Board. State of Illinois contributions for employers receiving
| ||||||
18 | State appropriations for personal services shall be payable | ||||||
19 | from appropriations
made to the employers or to the System. The | ||||||
20 | contributions for Class I
community colleges covering earnings | ||||||
21 | other than those paid from trust and
federal funds, shall be | ||||||
22 | payable solely from appropriations to the Illinois
Community | ||||||
23 | College Board or the System for employer contributions.
| ||||||
24 | (d) Beginning in State fiscal year 1996, the required State | ||||||
25 | contributions
to the System shall be appropriated directly to | ||||||
26 | the System and shall be payable
through vouchers issued in |
| |||||||
| |||||||
1 | accordance with subsection (c) of Section 15-165, except as | ||||||
2 | provided in subsection (g).
| ||||||
3 | (e) The State Comptroller shall draw warrants payable to | ||||||
4 | the System upon
proper certification by the System or by the | ||||||
5 | employer in accordance with the
appropriation laws and this | ||||||
6 | Code.
| ||||||
7 | (f) Normal costs under this Section means liability for
| ||||||
8 | pensions and other benefits which accrues to the System because | ||||||
9 | of the
credits earned for service rendered by the participants | ||||||
10 | during the
fiscal year and expenses of administering the | ||||||
11 | System, but shall not
include the principal of or any | ||||||
12 | redemption premium or interest on any bonds
issued by the Board | ||||||
13 | or any expenses incurred or deposits required in
connection | ||||||
14 | therewith.
| ||||||
15 | (g) For academic years beginning on or after June 1, 2005 | ||||||
16 | and before July 1, 2018, if If the amount of a participant's | ||||||
17 | earnings for any academic year used to determine the final rate | ||||||
18 | of earnings, determined on a full-time equivalent basis, | ||||||
19 | exceeds the amount of his or her earnings with the same | ||||||
20 | employer for the previous academic year, determined on a | ||||||
21 | full-time equivalent basis, by more than 6%, the participant's | ||||||
22 | employer shall pay to the System, in addition to all other | ||||||
23 | payments required under this Section and in accordance with | ||||||
24 | guidelines established by the System, the present value of the | ||||||
25 | increase in benefits resulting from the portion of the increase | ||||||
26 | in earnings that is in excess of 6%. This present value shall |
| |||||||
| |||||||
1 | be computed by the System on the basis of the actuarial | ||||||
2 | assumptions and tables used in the most recent actuarial | ||||||
3 | valuation of the System that is available at the time of the | ||||||
4 | computation. The System may require the employer to provide any | ||||||
5 | pertinent information or documentation. | ||||||
6 | Whenever it determines that a payment is or may be required | ||||||
7 | under this subsection (g), the System shall calculate the | ||||||
8 | amount of the payment and bill the employer for that amount. | ||||||
9 | The bill shall specify the calculations used to determine the | ||||||
10 | amount due. If the employer disputes the amount of the bill, it | ||||||
11 | may, within 30 days after receipt of the bill, apply to the | ||||||
12 | System in writing for a recalculation. The application must | ||||||
13 | specify in detail the grounds of the dispute and, if the | ||||||
14 | employer asserts that the calculation is subject to subsection | ||||||
15 | (h) or (i) of this Section, must include an affidavit setting | ||||||
16 | forth and attesting to all facts within the employer's | ||||||
17 | knowledge that are pertinent to the applicability of subsection | ||||||
18 | (h) or (i). Upon receiving a timely application for | ||||||
19 | recalculation, the System shall review the application and, if | ||||||
20 | appropriate, recalculate the amount due.
| ||||||
21 | The employer contributions required under this subsection | ||||||
22 | (g) may be paid in the form of a lump sum within 90 days after | ||||||
23 | receipt of the bill. If the employer contributions are not paid | ||||||
24 | within 90 days after receipt of the bill, then interest will be | ||||||
25 | charged at a rate equal to the System's annual actuarially | ||||||
26 | assumed rate of return on investment compounded annually from |
| |||||||
| |||||||
1 | the 91st day after receipt of the bill. Payments must be | ||||||
2 | concluded within 3 years after the employer's receipt of the | ||||||
3 | bill. | ||||||
4 | When assessing payment for any amount due under this | ||||||
5 | subsection (g), the System shall include earnings, to the | ||||||
6 | extent not established by a participant under Section 15-113.11 | ||||||
7 | or 15-113.12, that would have been paid to the participant had | ||||||
8 | the participant not taken (i) periods of voluntary or | ||||||
9 | involuntary furlough occurring on or after July 1, 2015 and on | ||||||
10 | or before June 30, 2017 or (ii) periods of voluntary pay | ||||||
11 | reduction in lieu of furlough occurring on or after July 1, | ||||||
12 | 2015 and on or before June 30, 2017. Determining earnings that | ||||||
13 | would have been paid to a participant had the participant not | ||||||
14 | taken periods of voluntary or involuntary furlough or periods | ||||||
15 | of voluntary pay reduction shall be the responsibility of the | ||||||
16 | employer, and shall be reported in a manner prescribed by the | ||||||
17 | System. | ||||||
18 | (g-1) For academic years beginning on or after July 1, | ||||||
19 | 2018, if the amount of a participant's earnings for any | ||||||
20 | academic year used to determine the final rate of earnings, | ||||||
21 | determined on a full-time equivalent basis, exceeds the amount | ||||||
22 | of his or her earnings with the same employer for the previous | ||||||
23 | academic year, determined on a full-time equivalent basis, by | ||||||
24 | more than the unadjusted percentage increase in the consumer | ||||||
25 | price index-u for the calendar year ending on the December 31 | ||||||
26 | immediately preceding the beginning of the academic year, then |
| |||||||
| |||||||
1 | the participant's employer shall pay to the System, in addition | ||||||
2 | to all other payments required under this Section and in | ||||||
3 | accordance with guidelines established by the System, the | ||||||
4 | present value of the increase in benefits resulting from the | ||||||
5 | portion of the increase in earnings that is in excess of the | ||||||
6 | unadjusted percentage increase in the consumer price index-u | ||||||
7 | for the applicable calendar year. This present value shall be | ||||||
8 | computed by the System on the basis of the actuarial | ||||||
9 | assumptions and tables used in the most recent actuarial | ||||||
10 | valuation of the System that is available at the time of the | ||||||
11 | computation. The System may require the employer to provide any | ||||||
12 | pertinent information or documentation. | ||||||
13 | Whenever it determines that a payment is or may be required | ||||||
14 | under this subsection (g-1), the System shall calculate the | ||||||
15 | amount of the payment and bill the employer for that amount. | ||||||
16 | The bill shall specify the calculations used to determine the | ||||||
17 | amount due. If the employer disputes the amount of the bill, it | ||||||
18 | may, within 30 days after receipt of the bill, apply to the | ||||||
19 | System in writing for a recalculation. The application must | ||||||
20 | specify in detail the grounds of the dispute and, if the | ||||||
21 | employer asserts that the calculation is subject to subsection | ||||||
22 | (i-1) of this Section, must include an affidavit setting forth | ||||||
23 | and attesting to all facts within the employer's knowledge that | ||||||
24 | are pertinent to the applicability of subsection (i-1). Upon | ||||||
25 | receiving a timely application for recalculation, the System | ||||||
26 | shall review the application and, if appropriate, recalculate |
| |||||||
| |||||||
1 | the amount due. | ||||||
2 | The employer contributions required under this subsection | ||||||
3 | (g-1) may be paid in the form of a lump sum within 90 days after | ||||||
4 | receipt of the bill. If the employer contributions are not paid | ||||||
5 | within 90 days after receipt of the bill, then interest shall | ||||||
6 | be charged at a rate equal to the System's annual actuarially | ||||||
7 | assumed rate of return on investment compounded annually from | ||||||
8 | the 91st day after receipt of the bill. Payments must be | ||||||
9 | concluded within 3 years after the employer's receipt of the | ||||||
10 | bill. | ||||||
11 | For the purposes of this Section, "consumer price index-u" | ||||||
12 | means the index published by the Bureau of Labor Statistics of | ||||||
13 | the United States Department of Labor that measures the average | ||||||
14 | change in prices of goods and services purchased by all urban | ||||||
15 | consumers, United States city average, all items, 1982-84 = | ||||||
16 | 100. The new amount resulting from each annual adjustment shall | ||||||
17 | be determined by the Public Pension Division of the Department | ||||||
18 | of Insurance and made available to the boards of the retirement | ||||||
19 | systems and pension funds by November 1 of each year. | ||||||
20 | (h) This subsection (h) applies only to payments made or | ||||||
21 | salary increases given on or after June 1, 2005 but before July | ||||||
22 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
23 | require the System to refund any payments received before July | ||||||
24 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
25 | When assessing payment for any amount due under subsection | ||||||
26 | (g), the System shall exclude earnings increases paid to |
| |||||||
| |||||||
1 | participants under contracts or collective bargaining | ||||||
2 | agreements entered into, amended, or renewed before June 1, | ||||||
3 | 2005.
| ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (g), the System shall exclude earnings increases paid to a | ||||||
6 | participant at a time when the participant is 10 or more years | ||||||
7 | from retirement eligibility under Section 15-135.
| ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (g), the System shall exclude earnings increases resulting from | ||||||
10 | overload work, including a contract for summer teaching, or | ||||||
11 | overtime when the employer has certified to the System, and the | ||||||
12 | System has approved the certification, that: (i) in the case of | ||||||
13 | overloads (A) the overload work is for the sole purpose of | ||||||
14 | academic instruction in excess of the standard number of | ||||||
15 | instruction hours for a full-time employee occurring during the | ||||||
16 | academic year that the overload is paid and (B) the earnings | ||||||
17 | increases are equal to or less than the rate of pay for | ||||||
18 | academic instruction computed using the participant's current | ||||||
19 | salary rate and work schedule; and (ii) in the case of | ||||||
20 | overtime, the overtime was necessary for the educational | ||||||
21 | mission. | ||||||
22 | When assessing payment for any amount due under subsection | ||||||
23 | (g), the System shall exclude any earnings increase resulting | ||||||
24 | from (i) a promotion for which the employee moves from one | ||||||
25 | classification to a higher classification under the State | ||||||
26 | Universities Civil Service System, (ii) a promotion in academic |
| |||||||
| |||||||
1 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
2 | promotion that the Illinois Community College Board has | ||||||
3 | recommended in accordance with subsection (k) of this Section. | ||||||
4 | These earnings increases shall be excluded only if the | ||||||
5 | promotion is to a position that has existed and been filled by | ||||||
6 | a member for no less than one complete academic year and the | ||||||
7 | earnings increase as a result of the promotion is an increase | ||||||
8 | that results in an amount no greater than the average salary | ||||||
9 | paid for other similar positions. | ||||||
10 | (i) When assessing payment for any amount due under | ||||||
11 | subsection (g), the System shall exclude any salary increase | ||||||
12 | described in subsection (h) of this Section given on or after | ||||||
13 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
14 | collective bargaining agreement entered into, amended, or | ||||||
15 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
16 | Notwithstanding any other provision of this Section, any | ||||||
17 | payments made or salary increases given after June 30, 2014 | ||||||
18 | shall be used in assessing payment for any amount due under | ||||||
19 | subsection (g) of this Section.
| ||||||
20 | (i-1) When assessing payment for any amount due under | ||||||
21 | subsection (g-1), the System shall exclude salary increases | ||||||
22 | paid to participants under contracts or collective bargaining | ||||||
23 | agreements entered into, amended, or renewed before the | ||||||
24 | effective date of this amendatory Act of the 99th General | ||||||
25 | Assembly. | ||||||
26 | (j) The System shall prepare a report and file copies of |
| |||||||
| |||||||
1 | the report with the Governor and the General Assembly by | ||||||
2 | January 1, 2007 that contains all of the following information: | ||||||
3 | (1) The number of recalculations required by the | ||||||
4 | changes made to this Section by Public Act 94-1057 for each | ||||||
5 | employer. | ||||||
6 | (2) The dollar amount by which each employer's | ||||||
7 | contribution to the System was changed due to | ||||||
8 | recalculations required by Public Act 94-1057. | ||||||
9 | (3) The total amount the System received from each | ||||||
10 | employer as a result of the changes made to this Section by | ||||||
11 | Public Act 94-4. | ||||||
12 | (4) The increase in the required State contribution | ||||||
13 | resulting from the changes made to this Section by Public | ||||||
14 | Act 94-1057. | ||||||
15 | (j-5) For academic years beginning on or after July 1, | ||||||
16 | 2018, if the amount of a participant's earnings for any | ||||||
17 | academic year, determined on a full-time equivalent basis, | ||||||
18 | exceeds the amount of the salary set for the Governor, the | ||||||
19 | participant's employer shall pay to the System, in addition to | ||||||
20 | all other payments required under this Section and in | ||||||
21 | accordance with guidelines established by the System, the | ||||||
22 | amount of the earnings that exceed the salary set for the | ||||||
23 | Governor multiplied by the level percentage of payroll used in | ||||||
24 | that fiscal year, as determined by the System, to be sufficient | ||||||
25 | to bring the total assets of the System up to 90% of the total | ||||||
26 | actuarial liabilities of the System by the end of State fiscal |
| |||||||
| |||||||
1 | year 2045. This amount shall be computed by the System on the | ||||||
2 | basis of the actuarial assumptions and tables used in the most | ||||||
3 | recent actuarial valuation of the System that is available at | ||||||
4 | the time of the computation. The System may require the | ||||||
5 | employer to provide any pertinent information or | ||||||
6 | documentation. | ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection, the System shall calculate the amount of | ||||||
9 | the payment and bill the employer for that amount. The bill | ||||||
10 | shall specify the calculations used to determine the amount | ||||||
11 | due. If the employer disputes the amount of the bill, it may, | ||||||
12 | within 30 days after receipt of the bill, apply to the System | ||||||
13 | in writing for a recalculation. The application must specify in | ||||||
14 | detail the grounds of the dispute. Upon receiving a timely | ||||||
15 | application for recalculation, the System shall review the | ||||||
16 | application and, if appropriate, recalculate the amount due. | ||||||
17 | The employer contributions required under this subsection | ||||||
18 | may be paid in the form of a lump sum within 90 days after | ||||||
19 | receipt of the bill. If the employer contributions are not paid | ||||||
20 | within 90 days after receipt of the bill, then interest will be | ||||||
21 | charged at a rate equal to the System's annual actuarially | ||||||
22 | assumed rate of return on investment compounded annually from | ||||||
23 | the 91st day after receipt of the bill. Payments must be | ||||||
24 | concluded within 3 years after the employer's receipt of the | ||||||
25 | bill. | ||||||
26 | (k) The Illinois Community College Board shall adopt rules |
| |||||||
| |||||||
1 | for recommending lists of promotional positions submitted to | ||||||
2 | the Board by community colleges and for reviewing the | ||||||
3 | promotional lists on an annual basis. When recommending | ||||||
4 | promotional lists, the Board shall consider the similarity of | ||||||
5 | the positions submitted to those positions recognized for State | ||||||
6 | universities by the State Universities Civil Service System. | ||||||
7 | The Illinois Community College Board shall file a copy of its | ||||||
8 | findings with the System. The System shall consider the | ||||||
9 | findings of the Illinois Community College Board when making | ||||||
10 | determinations under this Section. The System shall not exclude | ||||||
11 | any earnings increases resulting from a promotion when the | ||||||
12 | promotion was not submitted by a community college. Nothing in | ||||||
13 | this subsection (k) shall require any community college to | ||||||
14 | submit any information to the Community College Board.
| ||||||
15 | (l) For purposes of determining the required State | ||||||
16 | contribution to the System, the value of the System's assets | ||||||
17 | shall be equal to the actuarial value of the System's assets, | ||||||
18 | which shall be calculated as follows: | ||||||
19 | As of June 30, 2008, the actuarial value of the System's | ||||||
20 | assets shall be equal to the market value of the assets as of | ||||||
21 | that date. In determining the actuarial value of the System's | ||||||
22 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
23 | gains or losses from investment return incurred in a fiscal | ||||||
24 | year shall be recognized in equal annual amounts over the | ||||||
25 | 5-year period following that fiscal year. | ||||||
26 | (m) For purposes of determining the required State |
| |||||||
| |||||||
1 | contribution to the system for a particular year, the actuarial | ||||||
2 | value of assets shall be assumed to earn a rate of return equal | ||||||
3 | to the system's actuarially assumed rate of return. | ||||||
4 | (n) If Section 15-132.9 is determined to be | ||||||
5 | unconstitutional or otherwise invalid by a final unappealable | ||||||
6 | decision of an Illinois court or a court of competent | ||||||
7 | jurisdiction, then the changes made to this Section by this | ||||||
8 | amendatory Act of the 99th General Assembly shall not take | ||||||
9 | effect and are repealed by operation of law. | ||||||
10 | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; | ||||||
11 | 99-897, eff. 1-1-17 .)
| ||||||
12 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
13 | Sec. 15-157. Employee Contributions.
| ||||||
14 | (a) Each participating employee
shall make contributions | ||||||
15 | towards the retirement
benefits payable under the retirement | ||||||
16 | program applicable to the
employee from each payment
of | ||||||
17 | earnings applicable to employment under this system on and | ||||||
18 | after the
date of becoming a participant as follows: Prior to | ||||||
19 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
20 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
21 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
22 | are to be considered as normal contributions for purposes
of | ||||||
23 | this Article.
| ||||||
24 | Each participant who is a police officer or firefighter | ||||||
25 | shall make normal
contributions of 8% of each payment of |
| |||||||
| |||||||
1 | earnings applicable to employment as a
police officer or | ||||||
2 | firefighter under this system on or after September 1, 1981,
| ||||||
3 | unless he or she files with the board within 60 days after the | ||||||
4 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
5 | the board receives notice that
he or she is employed as a | ||||||
6 | police officer or firefighter, whichever is later,
a written | ||||||
7 | notice waiving the retirement formula provided by Rule 4 of | ||||||
8 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
9 | participant had met the
conditions set forth in Section | ||||||
10 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
11 | 1991 but failed to make the additional normal contributions
| ||||||
12 | required by this paragraph, he or she may elect to pay the | ||||||
13 | additional
contributions plus compound interest at the | ||||||
14 | effective rate. If such payment
is received by the board, the | ||||||
15 | service shall be considered as police officer
service in | ||||||
16 | calculating the retirement annuity under Rule 4 of Section | ||||||
17 | 15-136.
While performing service described in clause (i) or | ||||||
18 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
19 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
20 | of determining the rate of employee contributions
under this | ||||||
21 | Section.
| ||||||
22 | (b) Starting September 1, 1969, each participating | ||||||
23 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
24 | earnings to finance a portion
of the cost of the annual | ||||||
25 | increases in retirement annuity provided under
Section 15-136, | ||||||
26 | except that with respect to participants in the
self-managed |
| |||||||
| |||||||
1 | plan this additional contribution shall be used to finance the
| ||||||
2 | benefits obtained under that retirement program. Beginning | ||||||
3 | July 1, 2018 or the effective date of the Tier 1 employee's | ||||||
4 | election under paragraph (1) of subsection (a) of Section | ||||||
5 | 15-132.9, whichever is later, each Tier 1 employee who made the | ||||||
6 | election under paragraph (1) of subsection (a) of Section | ||||||
7 | 15-132.9 is no longer required to make contributions under this | ||||||
8 | subsection.
| ||||||
9 | (c) Except as provided in subsection (c-5), in In addition | ||||||
10 | to the amounts described in subsections (a) and (b) of this
| ||||||
11 | Section, each participating employee shall make contributions | ||||||
12 | of 1% of earnings
applicable under this system on and after | ||||||
13 | August 1, 1959. The contributions
made under this subsection | ||||||
14 | (c) shall be considered as survivor's insurance
contributions | ||||||
15 | for purposes of this Article if the employee is covered under
| ||||||
16 | the traditional benefit package, and such contributions shall | ||||||
17 | be considered
as additional contributions for purposes of this | ||||||
18 | Article if the employee is
participating in the self-managed | ||||||
19 | plan or has elected to participate in the
portable benefit | ||||||
20 | package and has completed the applicable one-year waiting
| ||||||
21 | period. Contributions in excess of $80 during any fiscal year | ||||||
22 | beginning before
August 31, 1969 and in excess of $120 during | ||||||
23 | any fiscal year thereafter until
September 1, 1971 shall be | ||||||
24 | considered as additional contributions for purposes
of this | ||||||
25 | Article.
| ||||||
26 | (c-5) Beginning July 1, 2018 or the effective date of the |
| |||||||
| |||||||
1 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
2 | (a) of Section 15-132.9, whichever is later, in lieu of the | ||||||
3 | contributions otherwise required under subsection (c), each | ||||||
4 | Tier 1 employee who made the election under paragraph (1) of | ||||||
5 | subsection (a) of Section 15-132.9 shall make contributions of | ||||||
6 | 0.7% of earnings applicable under this System and each Tier 1 | ||||||
7 | employee who is a police officer or firefighter who makes | ||||||
8 | normal contributions of 8% of each payment of earnings | ||||||
9 | applicable to employment as a police officer or firefighter | ||||||
10 | under this System and who made the election under paragraph (1) | ||||||
11 | of subsection (a) of Section 15-132.9 shall make contributions | ||||||
12 | of 0.55% of earnings applicable under this System. The | ||||||
13 | contributions made under this subsection (c-5) shall be | ||||||
14 | considered as survivor's insurance contributions for purposes | ||||||
15 | of this Article and such contributions shall be considered as | ||||||
16 | additional contributions for purposes of this Article if the | ||||||
17 | employee has elected to participate in the portable benefit | ||||||
18 | package and has completed the applicable one-year waiting | ||||||
19 | period. | ||||||
20 | (d) If the board by board rule so permits and subject to | ||||||
21 | such conditions
and limitations as may be specified in its | ||||||
22 | rules, a participant may make
other additional contributions of | ||||||
23 | such percentage of earnings or amounts as
the participant shall | ||||||
24 | elect in a written notice thereof received by the board.
| ||||||
25 | (e) That fraction of a participant's total accumulated | ||||||
26 | normal
contributions, the numerator of which is equal to the |
| |||||||
| |||||||
1 | number of years of
service in excess of that which is required | ||||||
2 | to qualify for the maximum
retirement annuity, and the | ||||||
3 | denominator of which is equal to the total
service of the | ||||||
4 | participant, shall be considered as accumulated additional
| ||||||
5 | contributions. The determination of the applicable maximum | ||||||
6 | annuity and
the adjustment in contributions required by this | ||||||
7 | provision shall be made
as of the date of the participant's | ||||||
8 | retirement.
| ||||||
9 | (f) Notwithstanding the foregoing, a participating | ||||||
10 | employee shall not
be required to make contributions under this | ||||||
11 | Section after the date upon
which continuance of such | ||||||
12 | contributions would otherwise cause his or her
retirement | ||||||
13 | annuity to exceed the maximum retirement annuity as specified | ||||||
14 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
15 | (g) A participant may make contributions for the purchase | ||||||
16 | of
service credit under this Article; however, only a | ||||||
17 | participating employee may make optional contributions under | ||||||
18 | subsection (b) of Section 15-157.1 of this Article.
| ||||||
19 | (h) A Tier 2 member shall not make contributions on | ||||||
20 | earnings that exceed the limitation as prescribed under | ||||||
21 | subsection (b) of Section 15-111 of this Article. | ||||||
22 | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
| ||||||
23 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
24 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
25 | which has been held unconstitutional)
|
| |||||||
| |||||||
1 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
2 | (a) The Board shall certify to the Governor on or before | ||||||
3 | November 15 of each
year until November 15, 2011 the | ||||||
4 | appropriation required from State funds for the purposes of | ||||||
5 | this
System for the following fiscal year. The certification | ||||||
6 | under this subsection (a) shall include a copy
of the actuarial | ||||||
7 | recommendations upon which it is based and shall specifically | ||||||
8 | identify the System's projected State normal cost for that | ||||||
9 | fiscal year and the projected State cost for the self-managed | ||||||
10 | plan for that fiscal year.
| ||||||
11 | On or before May 1, 2004, the Board shall recalculate and | ||||||
12 | recertify to
the Governor the amount of the required State | ||||||
13 | contribution to the System for
State fiscal year 2005, taking | ||||||
14 | into account the amounts appropriated to and
received by the | ||||||
15 | System under subsection (d) of Section 7.2 of the General
| ||||||
16 | Obligation Bond Act.
| ||||||
17 | On or before July 1, 2005, the Board shall recalculate and | ||||||
18 | recertify
to the Governor the amount of the required State
| ||||||
19 | contribution to the System for State fiscal year 2006, taking | ||||||
20 | into account the changes in required State contributions made | ||||||
21 | by this amendatory Act of the 94th General Assembly.
| ||||||
22 | On or before April 1, 2011, the Board shall recalculate and | ||||||
23 | recertify to the Governor the amount of the required State | ||||||
24 | contribution to the System for State fiscal year 2011, applying | ||||||
25 | the changes made by Public Act 96-889 to the System's assets | ||||||
26 | and liabilities as of June 30, 2009 as though Public Act 96-889 |
| |||||||
| |||||||
1 | was approved on that date. | ||||||
2 | (a-5) On or before November 1 of each year, beginning | ||||||
3 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
4 | the Governor, and the General Assembly a proposed certification | ||||||
5 | of the amount of the required State contribution to the System | ||||||
6 | for the next fiscal year, along with all of the actuarial | ||||||
7 | assumptions, calculations, and data upon which that proposed | ||||||
8 | certification is based. On or before January 1 of each year, | ||||||
9 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
10 | preliminary report concerning the proposed certification and | ||||||
11 | identifying, if necessary, recommended changes in actuarial | ||||||
12 | assumptions that the Board must consider before finalizing its | ||||||
13 | certification of the required State contributions. On or before | ||||||
14 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
15 | shall certify to the Governor and the General Assembly the | ||||||
16 | amount of the required State contribution for the next fiscal | ||||||
17 | year. The Board's certification must note, in a written | ||||||
18 | response to the State Actuary, any deviations from the State | ||||||
19 | Actuary's recommended changes, the reason or reasons for not | ||||||
20 | following the State Actuary's recommended changes, and the | ||||||
21 | fiscal impact of not following the State Actuary's recommended | ||||||
22 | changes on the required State contribution. | ||||||
23 | (a-10) As soon as practical after the effective date of | ||||||
24 | this amendatory Act of the 99th General Assembly, the State | ||||||
25 | Actuary and the Board shall recalculate and recertify to the | ||||||
26 | Governor and the General Assembly the amount of the State |
| |||||||
| |||||||
1 | contribution to the System for State fiscal year 2018, taking | ||||||
2 | into account the changes in required State contributions made | ||||||
3 | by this amendatory Act of the 99th General Assembly. | ||||||
4 | (a-15) On or before May 1, 2018, the Board shall | ||||||
5 | recalculate and recertify
to the Governor and the General | ||||||
6 | Assembly the amount of the required State
contribution to the | ||||||
7 | System for State fiscal year 2019, taking into account the | ||||||
8 | effect on the System's liabilities of the elections made under | ||||||
9 | Section 15-132.9. | ||||||
10 | On or before October 1, 2018, the Board shall recalculate | ||||||
11 | and recertify to the Governor and the General Assembly the | ||||||
12 | amount of the required State contribution to the System for | ||||||
13 | State fiscal year 2019, taking into account the reduction | ||||||
14 | specified under item (3) of subsection (a-1) of Section 15-155. | ||||||
15 | (b) The Board shall certify to the State Comptroller or | ||||||
16 | employer, as the
case may be, from time to time, by its | ||||||
17 | chairperson and secretary, with its seal
attached, the amounts | ||||||
18 | payable to the System from the various funds.
| ||||||
19 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
20 | possible after the
15th day of each month the Board shall | ||||||
21 | submit vouchers for payment of State
contributions to the | ||||||
22 | System, in a total monthly amount of one-twelfth of the
| ||||||
23 | required annual State contribution certified under subsection | ||||||
24 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
25 | General Assembly through June 30, 2004, the Board shall not
| ||||||
26 | submit vouchers for the remainder of fiscal year 2004 in excess |
| |||||||
| |||||||
1 | of the
fiscal year 2004 certified contribution amount | ||||||
2 | determined
under this Section after taking into consideration | ||||||
3 | the transfer to the
System under subsection (b) of Section | ||||||
4 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
5 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
6 | funds appropriated to the System for that fiscal year.
| ||||||
7 | If in any month the amount remaining unexpended from all | ||||||
8 | other
appropriations to the System for the applicable fiscal | ||||||
9 | year (including the
appropriations to the System under Section | ||||||
10 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
11 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
12 | amount lawfully vouchered under this Section, the difference | ||||||
13 | shall be paid
from the General Revenue Fund under the | ||||||
14 | continuing appropriation authority
provided in Section 1.1 of | ||||||
15 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
16 | (d) So long as the payments received are the full amount | ||||||
17 | lawfully
vouchered under this Section, payments received by the | ||||||
18 | System under this
Section shall be applied first toward the | ||||||
19 | employer contribution to the
self-managed plan established | ||||||
20 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
21 | the employer's portion of the normal costs of the System,
as | ||||||
22 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
23 | be applied
toward the unfunded actuarial liabilities of the | ||||||
24 | System.
| ||||||
25 | (e) In the event that the System does not receive, as a | ||||||
26 | result of
legislative enactment or otherwise, payments |
| |||||||
| |||||||
1 | sufficient to
fully fund the employer contribution to the | ||||||
2 | self-managed plan
established under Section 15-158.2 and to | ||||||
3 | fully fund that portion of the
employer's portion of the normal | ||||||
4 | costs of the System, as calculated in
accordance with Section | ||||||
5 | 15-155(a-1), then any payments received shall be
applied | ||||||
6 | proportionately to the optional retirement program established | ||||||
7 | under
Section 15-158.2 and to the employer's portion of the | ||||||
8 | normal costs of the
System, as calculated in accordance with | ||||||
9 | Section 15-155(a-1).
| ||||||
10 | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
| ||||||
11 | (40 ILCS 5/15-198) | ||||||
12 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
13 | which has been held unconstitutional)
| ||||||
14 | Sec. 15-198. Application and expiration of new benefit | ||||||
15 | increases. | ||||||
16 | (a) As used in this Section, "new benefit increase" means | ||||||
17 | an increase in the amount of any benefit provided under this | ||||||
18 | Article, or an expansion of the conditions of eligibility for | ||||||
19 | any benefit under this Article, that results from an amendment | ||||||
20 | to this Code that takes effect after the effective date of this | ||||||
21 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
22 | increase", however, does not include any benefit increase | ||||||
23 | resulting from the changes made to this Article by this | ||||||
24 | amendatory Act of the 99th General Assembly. | ||||||
25 | (b) Notwithstanding any other provision of this Code or any |
| |||||||
| |||||||
1 | subsequent amendment to this Code, every new benefit increase | ||||||
2 | is subject to this Section and shall be deemed to be granted | ||||||
3 | only in conformance with and contingent upon compliance with | ||||||
4 | the provisions of this Section.
| ||||||
5 | (c) The Public Act enacting a new benefit increase must | ||||||
6 | identify and provide for payment to the System of additional | ||||||
7 | funding at least sufficient to fund the resulting annual | ||||||
8 | increase in cost to the System as it accrues. | ||||||
9 | Every new benefit increase is contingent upon the General | ||||||
10 | Assembly providing the additional funding required under this | ||||||
11 | subsection. The Commission on Government Forecasting and | ||||||
12 | Accountability shall analyze whether adequate additional | ||||||
13 | funding has been provided for the new benefit increase and | ||||||
14 | shall report its analysis to the Public Pension Division of the | ||||||
15 | Department of Financial and Professional Regulation. A new | ||||||
16 | benefit increase created by a Public Act that does not include | ||||||
17 | the additional funding required under this subsection is null | ||||||
18 | and void. If the Public Pension Division determines that the | ||||||
19 | additional funding provided for a new benefit increase under | ||||||
20 | this subsection is or has become inadequate, it may so certify | ||||||
21 | to the Governor and the State Comptroller and, in the absence | ||||||
22 | of corrective action by the General Assembly, the new benefit | ||||||
23 | increase shall expire at the end of the fiscal year in which | ||||||
24 | the certification is made.
| ||||||
25 | (d) Every new benefit increase shall expire 5 years after | ||||||
26 | its effective date or on such earlier date as may be specified |
| |||||||
| |||||||
1 | in the language enacting the new benefit increase or provided | ||||||
2 | under subsection (c). This does not prevent the General | ||||||
3 | Assembly from extending or re-creating a new benefit increase | ||||||
4 | by law. | ||||||
5 | (e) Except as otherwise provided in the language creating | ||||||
6 | the new benefit increase, a new benefit increase that expires | ||||||
7 | under this Section continues to apply to persons who applied | ||||||
8 | and qualified for the affected benefit while the new benefit | ||||||
9 | increase was in effect and to the affected beneficiaries and | ||||||
10 | alternate payees of such persons, but does not apply to any | ||||||
11 | other person, including without limitation a person who | ||||||
12 | continues in service after the expiration date and did not | ||||||
13 | apply and qualify for the affected benefit while the new | ||||||
14 | benefit increase was in effect.
| ||||||
15 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
16 | (40 ILCS 5/15-200.1 new) | ||||||
17 | Sec. 15-200.1. Defined contribution plan. | ||||||
18 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
19 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
20 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
21 | by the number of active Tier 1 employees on the effective date | ||||||
22 | of this Section. The defined contribution plan developed under | ||||||
23 | this Section shall be a plan that aggregates employer and | ||||||
24 | employee contributions in individual participant accounts | ||||||
25 | which, after meeting any other requirements, are used for |
| |||||||
| |||||||
1 | payouts after retirement in accordance with this Section and | ||||||
2 | any other applicable laws. | ||||||
3 | As used in this Section, "defined benefit plan" means the | ||||||
4 | retirement plan available under this Article to Tier 1 | ||||||
5 | employees who have not made the election authorized under this | ||||||
6 | Section. | ||||||
7 | (1) Under the defined contribution plan, an active
Tier | ||||||
8 | 1 employee of this System could elect to cease accruing | ||||||
9 | benefits in the defined benefit plan under this Article and | ||||||
10 | begin accruing benefits for future service in the defined | ||||||
11 | contribution plan. Service credit under the defined | ||||||
12 | contribution plan may be used for determining retirement | ||||||
13 | eligibility under the defined benefit plan. An active Tier | ||||||
14 | 1 employee who elects to cease accruing benefits in his or | ||||||
15 | her defined benefit plan shall be prohibited from | ||||||
16 | purchasing service credit on or after the date of his or | ||||||
17 | her election. A Tier 1 employee making the irrevocable | ||||||
18 | election provided under this Section shall not receive | ||||||
19 | interest accruals to his or her Rule 2 benefit on or after | ||||||
20 | the date of his or her election. | ||||||
21 | (2) Participants in the defined contribution plan
| ||||||
22 | shall pay employee contributions at the same rate as other | ||||||
23 | participants under this Article as determined by the | ||||||
24 | System. | ||||||
25 | (3) State contributions shall be paid into the
accounts | ||||||
26 | of all participants in the defined contribution plan at a |
| |||||||
| |||||||
1 | uniform rate, expressed as a percentage of earnings and | ||||||
2 | determined for each year. This rate shall be no higher than | ||||||
3 | the employer's normal cost for Tier 1 employees in the | ||||||
4 | defined benefit plan for that year, as determined by the | ||||||
5 | System and expressed as a percentage of earnings, and shall | ||||||
6 | be no lower than 3% of earnings. The State shall adjust | ||||||
7 | this rate annually. | ||||||
8 | (4) The defined contribution plan shall require 5
years | ||||||
9 | of participation in the defined contribution plan before | ||||||
10 | vesting in State contributions. If the participant fails to | ||||||
11 | vest in them, the State contributions, and the earnings | ||||||
12 | thereon, shall be forfeited. | ||||||
13 | (5) The defined contribution plan may provide for
| ||||||
14 | participants in the plan to be eligible for the defined | ||||||
15 | disability benefits available to other participants under | ||||||
16 | this Article. If it does, the System shall reduce the | ||||||
17 | employee contributions credited to the member's defined | ||||||
18 | contribution plan account by an amount determined by the | ||||||
19 | System to cover the cost of offering such benefits. | ||||||
20 | (6) The defined contribution plan shall provide a
| ||||||
21 | variety of options for investments. These options shall | ||||||
22 | include investments handled by the System as well as | ||||||
23 | private sector investment options. | ||||||
24 | (7) The defined contribution plan shall provide a
| ||||||
25 | variety of options for payouts to retirees and their | ||||||
26 | survivors. |
| |||||||
| |||||||
1 | (8) To the extent authorized under federal law and
as | ||||||
2 | authorized by the System, the plan shall allow former | ||||||
3 | participants in the plan to transfer or roll over employee | ||||||
4 | and vested State contributions, and the earnings thereon, | ||||||
5 | into other qualified retirement plans. | ||||||
6 | (9) The System shall reduce the employee
contributions | ||||||
7 | credited to the member's defined contribution plan account | ||||||
8 | by an amount determined by the System to cover the cost of | ||||||
9 | offering these benefits and any applicable administrative | ||||||
10 | fees. | ||||||
11 | (b) Only persons who are active Tier 1 employees of the | ||||||
12 | System on the effective date of this Section are eligible to | ||||||
13 | participate in the defined contribution plan. Participation in | ||||||
14 | the defined contribution plan shall be limited to the first 5% | ||||||
15 | of eligible persons who elect to participate. The election to | ||||||
16 | participate in the defined contribution plan is voluntary and | ||||||
17 | irrevocable. | ||||||
18 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
19 | participate in the defined contribution plan by filing with the | ||||||
20 | System a written application to participate that is received by | ||||||
21 | the System prior to its determination that 5% of eligible | ||||||
22 | persons have elected to participate in the defined contribution | ||||||
23 | plan. | ||||||
24 | When the System first determines that 5% of eligible | ||||||
25 | persons have elected to participate in the defined contribution | ||||||
26 | plan, the System shall provide notice to previously eligible |
| |||||||
| |||||||
1 | employees that the plan is no longer available and shall cease | ||||||
2 | accepting applications to participate. | ||||||
3 | (d) The System shall make a good faith effort to contact | ||||||
4 | each active Tier 1 employee who is eligible to participate in | ||||||
5 | the defined contribution plan. The System shall mail | ||||||
6 | information describing the option to join the defined | ||||||
7 | contribution plan to each of these employees to his or her last | ||||||
8 | known address on file with the System. If the employee is not | ||||||
9 | responsive to other means of contact, it is sufficient for the | ||||||
10 | System to publish the details of the option on its website. | ||||||
11 | Upon request for further information describing the | ||||||
12 | option, the System shall provide employees with information | ||||||
13 | from the System before exercising the option to join the plan, | ||||||
14 | including information on the impact to their vested benefits or | ||||||
15 | non-vested service. The individual consultation shall include | ||||||
16 | projections of the member's defined benefits at retirement or | ||||||
17 | earlier termination of service and the value of the member's | ||||||
18 | account at retirement or earlier termination of service. The | ||||||
19 | System shall not provide advice or counseling with respect to | ||||||
20 | whether the employee should exercise the option. The System | ||||||
21 | shall inform Tier 1 employees who are eligible to participate | ||||||
22 | in the defined contribution plan that they may also wish to | ||||||
23 | obtain information and counsel relating to their option from | ||||||
24 | any other available source, including but not limited to labor | ||||||
25 | organizations, private counsel, and financial advisors. | ||||||
26 | (e) In no event shall the System, its staff, its authorized |
| |||||||
| |||||||
1 | representatives, or the Board be liable for any information | ||||||
2 | given to an employee under this Section. The System may | ||||||
3 | coordinate with the Illinois Department of Central Management | ||||||
4 | Services and other retirement systems administering a defined | ||||||
5 | contribution plan in accordance with this amendatory Act of the | ||||||
6 | 99th General Assembly to provide information concerning the | ||||||
7 | impact of the option set forth in this Section. | ||||||
8 | (f) Notwithstanding any other provision of this Section, no | ||||||
9 | person shall begin participating in the defined contribution | ||||||
10 | plan until it has attained qualified plan status and received | ||||||
11 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
12 | (g) The System shall report on its progress under this | ||||||
13 | Section, including the available details of the defined | ||||||
14 | contribution plan and the System's plans for informing eligible | ||||||
15 | Tier 1 employees about the plan, to the Governor and the | ||||||
16 | General Assembly on or before January 15, 2018. | ||||||
17 | (h) If an active Tier 1 employee has not made an election | ||||||
18 | under Section 15-134.5 of this Code, then the plan prescribed | ||||||
19 | under this Section shall not apply to that Tier 1 employee and | ||||||
20 | that Tier 1 employee shall remain eligible to make the election | ||||||
21 | prescribed under Section 15-134.5. | ||||||
22 | (i) The intent of this amendatory Act of the 99th General | ||||||
23 | Assembly is to ensure that the State's normal cost of | ||||||
24 | participation in the defined contribution plan is similar, and | ||||||
25 | if possible equal, to the State's normal cost of participation | ||||||
26 | in the defined benefit plan, unless a lower State's normal cost |
| |||||||
| |||||||
1 | is necessary to ensure cost neutrality. | ||||||
2 | (j) If Section 15-132.9 is determined to be | ||||||
3 | unconstitutional or otherwise invalid by a final unappealable | ||||||
4 | decision of an Illinois court or a court of competent | ||||||
5 | jurisdiction, then this Section shall not take effect and is | ||||||
6 | repealed by operation of law.
| ||||||
7 | (40 ILCS 5/15-201.1 new) | ||||||
8 | Sec. 15-201.1. Defined contribution plan; termination. If | ||||||
9 | the defined contribution plan is terminated or becomes | ||||||
10 | inoperative pursuant to law, then each participant in the plan | ||||||
11 | shall automatically be deemed to have been a contributing Tier | ||||||
12 | 1 employee participating in the System's defined benefit plan | ||||||
13 | during the time in which he or she participated in the defined | ||||||
14 | contribution plan, and for that purpose the System shall be | ||||||
15 | entitled to recover the amounts in the participant's defined | ||||||
16 | contribution accounts.
| ||||||
17 | (40 ILCS 5/16-107.1 new) | ||||||
18 | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A | ||||||
19 | teacher under this Article who first became a member or | ||||||
20 | participant before January 1, 2011 under any reciprocal | ||||||
21 | retirement system or pension fund established under this Code | ||||||
22 | other than a retirement system or pension fund established | ||||||
23 | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for | ||||||
24 | the purposes of the election under Section 16-122.9, "Tier 1 |
| |||||||
| |||||||
1 | employee" does not include a teacher under this Article who | ||||||
2 | would qualify as a Tier 1 employee but who has made an | ||||||
3 | irrevocable election on or before June 1, 2017 to retire from | ||||||
4 | service pursuant to the terms of a collective bargaining | ||||||
5 | agreement in effect on June 1, 2017, excluding any extension, | ||||||
6 | amendment, or renewal of that agreement on or after that date, | ||||||
7 | and has notified the System of that election.
| ||||||
8 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
| ||||||
9 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
10 | which has been held unconstitutional)
| ||||||
11 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
12 | received by a teacher during any
school year and recognized by | ||||||
13 | the system in accordance with
rules of the board. For purposes | ||||||
14 | of this Section, "school year" includes
the regular school term | ||||||
15 | plus any additional period for which a teacher is
compensated | ||||||
16 | and such compensation is recognized by the rules of the board.
| ||||||
17 | Notwithstanding any other provision of this Section, | ||||||
18 | "salary" does not include any future increase in income that is | ||||||
19 | offered by an employer for service as a Tier 1 employee under | ||||||
20 | this Article pursuant to the condition set forth in subsection | ||||||
21 | (c) of Section 16-122.9 and accepted under that condition by a | ||||||
22 | Tier 1 employee who has made the election under paragraph (2) | ||||||
23 | of subsection (a) of Section 16-122.9. | ||||||
24 | Notwithstanding any other provision of this Section, | ||||||
25 | "salary" does not include any consideration payment made to a |
| |||||||
| |||||||
1 | Tier 1 employee. | ||||||
2 | (Source: P.A. 84-1028.)
| ||||||
3 | (40 ILCS 5/16-121.1 new) | ||||||
4 | Sec. 16-121.1. Future increase in income. "Future increase | ||||||
5 | in income" means an increase in income in any form offered by | ||||||
6 | an employer to a Tier 1 employee for service under this Article | ||||||
7 | after June 30, 2018 that qualifies as "salary", as defined in | ||||||
8 | Section 16-121, or would qualify as "salary" but for the fact | ||||||
9 | that it was offered to and accepted by a Tier 1 employee under | ||||||
10 | the condition set forth in subsection (c) of Section 16-122.9. | ||||||
11 | The term "future increase in income" does not include an | ||||||
12 | increase in income in any form that is paid to a Tier 1 | ||||||
13 | employee under an employment contract or a collective | ||||||
14 | bargaining agreement that is in effect on the effective date of | ||||||
15 | this Section, but does include an increase in income in any | ||||||
16 | form pursuant to an extension, amendment, or renewal of any | ||||||
17 | such employment contract or collective bargaining agreement on | ||||||
18 | or after the effective date of this Section.
| ||||||
19 | (40 ILCS 5/16-122.9 new) | ||||||
20 | Sec. 16-122.9. Election by Tier 1 employees. | ||||||
21 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
22 | election either: | ||||||
23 | (1) to agree to delay his or her eligibility for | ||||||
24 | automatic annual increases in retirement annuity as |
| |||||||
| |||||||
1 | provided in subsection (a-1) of Section 16-133.1 or | ||||||
2 | subsection (b-1) of Section 16-136.1, whichever is | ||||||
3 | applicable, and to have the amount of the automatic annual | ||||||
4 | increases in his or her retirement annuity that are | ||||||
5 | otherwise provided for in this Article calculated, | ||||||
6 | instead, as provided in subsection (a-1) of Section | ||||||
7 | 16-133.1 or subsection (b-1) of Section 16-136.1, | ||||||
8 | whichever is applicable; or | ||||||
9 | (2) to not agree to paragraph (1) of this subsection. | ||||||
10 | The election required under this subsection (a) shall be | ||||||
11 | made by each active Tier 1 employee no earlier than January 1, | ||||||
12 | 2018 and no later than March 31, 2018, except that: | ||||||
13 | (i) a person who becomes a Tier 1 employee under this | ||||||
14 | Article on or after February 1, 2018 must make the election | ||||||
15 | under this subsection (a) within 60 days after becoming a | ||||||
16 | Tier 1 employee; and | ||||||
17 | (ii) a person who returns to active service as a Tier 1 | ||||||
18 | employee under this Article on or after February 1, 2018 | ||||||
19 | and has not yet made an election under this Section must | ||||||
20 | make the election under this subsection (a) within 60 days | ||||||
21 | after returning to active service as a Tier 1 employee. | ||||||
22 | If a Tier 1 employee fails for any reason to make a | ||||||
23 | required election under this subsection within the time | ||||||
24 | specified, then the employee shall be deemed to have made the | ||||||
25 | election under paragraph (2) of this subsection. | ||||||
26 | (a-5) If this Section is enjoined or stayed by an Illinois |
| |||||||
| |||||||
1 | court or a court of competent jurisdiction pending the entry of | ||||||
2 | a final and unappealable decision, and this Section is | ||||||
3 | determined to be constitutional or otherwise valid by a final | ||||||
4 | unappealable decision of an Illinois court or a court of | ||||||
5 | competent jurisdiction, then the election procedure set forth | ||||||
6 | in subsection (a) of this Section shall commence on the 180th | ||||||
7 | calendar day after the date of the issuance of the final | ||||||
8 | unappealable decision and shall conclude at the end of the | ||||||
9 | 270th calendar day after that date. | ||||||
10 | (a-10) All elections under subsection (a) that are made or | ||||||
11 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
12 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
13 | after July 1, 2018 shall take effect on the first day of the | ||||||
14 | month following the month in which the election is made or | ||||||
15 | deemed to be made. | ||||||
16 | (b) As adequate and legal consideration provided under this | ||||||
17 | amendatory Act of the 99th General Assembly for making an | ||||||
18 | election under paragraph (1) of subsection (a) of this Section, | ||||||
19 | an employer shall be expressly and irrevocably prohibited from | ||||||
20 | offering any future increases in income to a Tier 1 employee | ||||||
21 | who has made an election under paragraph (1) of subsection (a) | ||||||
22 | of this Section on the condition of not constituting salary | ||||||
23 | under Section 16-121. | ||||||
24 | As adequate and legal consideration provided under this | ||||||
25 | amendatory Act of the 99th General Assembly for making an | ||||||
26 | election under paragraph (1) of subsection (a) of this Section, |
| |||||||
| |||||||
1 | each Tier 1 employee who has made an election under paragraph | ||||||
2 | (1) of subsection (a) of this Section shall receive a | ||||||
3 | consideration payment equal to 10% of the contributions made by | ||||||
4 | or on behalf of the employee under paragraphs (1), (2), and (3) | ||||||
5 | of subsection (a) of Section 16-152 before the effective date | ||||||
6 | of that election. The State Comptroller shall pay the | ||||||
7 | consideration payment to the Tier 1 employee out of funds | ||||||
8 | appropriated for that purpose under Section 1.9 of the State | ||||||
9 | Pension Funds Continuing Appropriation Act. The System shall | ||||||
10 | calculate the amount of each consideration payment and shall | ||||||
11 | certify to the State Comptroller the amount of the | ||||||
12 | consideration payment, together with the name, address, and any | ||||||
13 | other available payment information of the Tier 1 employee as | ||||||
14 | found in the records of the System. | ||||||
15 | (c) A Tier 1 employee who makes the election under | ||||||
16 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
17 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
18 | However, any future increases in income offered by an employer | ||||||
19 | under this Article to a Tier 1 employee who has made the | ||||||
20 | election under paragraph (2) of subsection (a) of this Section | ||||||
21 | shall be offered by the employer expressly and irrevocably on | ||||||
22 | the condition of not constituting salary under Section 16-121, | ||||||
23 | and the employee may not accept any future increase in income | ||||||
24 | that is offered without this condition. | ||||||
25 | (d) The System shall make a good faith effort to contact | ||||||
26 | each Tier 1 employee subject to this Section. The System shall |
| |||||||
| |||||||
1 | mail information describing the required election to each Tier | ||||||
2 | 1 employee by United States Postal Service mail to his or her | ||||||
3 | last known address on file with the System. If the Tier 1 | ||||||
4 | employee is not responsive to other means of contact, it is | ||||||
5 | sufficient for the System to publish the details of any | ||||||
6 | required elections on its website or to publish those details | ||||||
7 | in a regularly published newsletter or other existing public | ||||||
8 | forum. | ||||||
9 | Tier 1 employees who are subject to this Section shall be | ||||||
10 | provided with an election packet containing information | ||||||
11 | regarding their options, as well as the forms necessary to make | ||||||
12 | the required election. Upon request, the System shall offer | ||||||
13 | Tier 1 employees an opportunity to receive information from the | ||||||
14 | System before making the required election. The information may | ||||||
15 | consist of video materials, group presentations, individual | ||||||
16 | consultation with a member or authorized representative of the | ||||||
17 | System in person or by telephone or other electronic means, or | ||||||
18 | any combination of those methods. The System shall not provide | ||||||
19 | advice or counseling with respect to which election a Tier 1 | ||||||
20 | employee should make or specific to the legal or tax | ||||||
21 | circumstances of or consequences to the Tier 1 employee. | ||||||
22 | The System shall inform Tier 1 employees in the election | ||||||
23 | packet required under this subsection that the Tier 1 employee | ||||||
24 | may also wish to obtain information and counsel relating to the | ||||||
25 | election required under this Section from any other available | ||||||
26 | source, including, but not limited to, labor organizations and |
| |||||||
| |||||||
1 | private counsel. | ||||||
2 | In no event shall the System, its staff, or the Board be | ||||||
3 | held liable for any information given to a member regarding the | ||||||
4 | elections under this Section. The System shall coordinate with | ||||||
5 | the Illinois Department of Central Management Services and each | ||||||
6 | other retirement system administering an election in | ||||||
7 | accordance with this amendatory Act of the 99th General | ||||||
8 | Assembly to provide information concerning the impact of the | ||||||
9 | election set forth in this Section. | ||||||
10 | (e) Notwithstanding any other provision of law, an employer | ||||||
11 | under this Article is required to offer any future increases in | ||||||
12 | income expressly and irrevocably on the condition of not | ||||||
13 | constituting "salary" under Section 16-121 to any Tier 1 | ||||||
14 | employee who has made an election under paragraph (2) of | ||||||
15 | subsection (a) of this Section. A Tier 1 employee who has made | ||||||
16 | an election under paragraph (2) of subsection (a) of this | ||||||
17 | Section shall not accept any future increase in income that is | ||||||
18 | offered by an employer under this Article without the condition | ||||||
19 | set forth in this subsection. | ||||||
20 | For purposes of legislative intent, the condition set forth | ||||||
21 | in this subsection shall be construed in a manner that ensures | ||||||
22 | that the condition is not violated or circumvented through any | ||||||
23 | contrivance of any kind. | ||||||
24 | (f) A member's election under this Section is not a | ||||||
25 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
26 | of this Code. |
| |||||||
| |||||||
1 | (g) No provision of this Section shall be interpreted in a | ||||||
2 | way that would cause the System to cease to be a qualified plan | ||||||
3 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
4 | (h) If an election created by this amendatory Act in any | ||||||
5 | other Article of this Code or any change deriving from that | ||||||
6 | election is determined to be unconstitutional or otherwise | ||||||
7 | invalid by a final unappealable decision of an Illinois court | ||||||
8 | or a court of competent jurisdiction, the invalidity of that | ||||||
9 | provision shall not in any way affect the validity of this | ||||||
10 | Section or the changes deriving from the election required | ||||||
11 | under this Section.
| ||||||
12 | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| ||||||
13 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
14 | which has been held unconstitutional)
| ||||||
15 | Sec. 16-133.1. Automatic annual increase in annuity.
| ||||||
16 | (a) Each member with creditable service and retiring on or | ||||||
17 | after August 26,
1969 is entitled to the automatic annual | ||||||
18 | increases in annuity provided under
this Section while | ||||||
19 | receiving a retirement annuity or disability retirement
| ||||||
20 | annuity from the system.
| ||||||
21 | Except as otherwise provided in subsection (a-1), an An | ||||||
22 | annuitant shall first be entitled to an initial increase under | ||||||
23 | this
Section on the January 1 next following the first | ||||||
24 | anniversary of retirement,
or January 1 of the year next | ||||||
25 | following attainment of age 61, whichever is
later. At such |
| |||||||
| |||||||
1 | time, the system shall pay an initial increase determined as
| ||||||
2 | follows:
| ||||||
3 | (1) 1.5% of the originally granted retirement annuity | ||||||
4 | or disability
retirement annuity multiplied by the number | ||||||
5 | of years elapsed, if any, from the date of retirement
until | ||||||
6 | January 1, 1972, plus
| ||||||
7 | (2) 2% of the originally granted annuity multiplied by | ||||||
8 | the number of
years elapsed, if any, from the date of | ||||||
9 | retirement or January
1, 1972, whichever is later, until | ||||||
10 | January 1, 1978, plus
| ||||||
11 | (3) 3% of the originally granted annuity multiplied by | ||||||
12 | the number
of years elapsed from the date of retirement or | ||||||
13 | January 1,
1978, whichever is later, until the effective | ||||||
14 | date of the initial
increase.
| ||||||
15 | However, the initial annual increase calculated under this | ||||||
16 | Section for the
recipient of a disability retirement annuity | ||||||
17 | granted under Section 16-149.2
shall be reduced by an amount | ||||||
18 | equal to the total of all increases in that
annuity received | ||||||
19 | under Section 16-149.5 (but not exceeding 100% of the amount
of | ||||||
20 | the initial increase otherwise provided under this Section).
| ||||||
21 | Except as otherwise provided in subsection (a-1), | ||||||
22 | following Following the initial increase, automatic annual | ||||||
23 | increases in annuity shall
be payable on each January 1 | ||||||
24 | thereafter during the lifetime of the annuitant,
determined as | ||||||
25 | a percentage of the originally granted retirement annuity
or | ||||||
26 | disability retirement annuity for increases granted prior to |
| |||||||
| |||||||
1 | January
1, 1990, and calculated as a percentage of the total | ||||||
2 | amount of annuity,
including previous increases under this | ||||||
3 | Section, for increases granted on
or after January 1, 1990, as | ||||||
4 | follows: 1.5% for periods prior to January 1,
1972, 2% for | ||||||
5 | periods after December 31, 1971 and prior to January 1, 1978,
| ||||||
6 | and 3% for periods after December 31, 1977.
| ||||||
7 | (a-1) Notwithstanding any other provision of this Article, | ||||||
8 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
9 | of subsection (a) of Section 16-122.9: | ||||||
10 | (1) The initial increase in retirement annuity under | ||||||
11 | this Section shall occur on the January 1 occurring either | ||||||
12 | on or after the attainment of age 67 or the fifth | ||||||
13 | anniversary of the annuity start date, whichever is | ||||||
14 | earlier. | ||||||
15 | (2) The amount of each automatic annual increase in | ||||||
16 | retirement annuity occurring on or after the effective date | ||||||
17 | of that election shall be calculated as a percentage of the | ||||||
18 | originally granted retirement annuity, equal to 3% or | ||||||
19 | one-half the annual unadjusted percentage increase (but | ||||||
20 | not less than zero) in the consumer price index-u for the | ||||||
21 | 12 months ending with the September preceding each November | ||||||
22 | 1, whichever is less. If the annual unadjusted percentage | ||||||
23 | change in the consumer price index-u for the 12 months | ||||||
24 | ending with the September preceding each November 1 is zero | ||||||
25 | or there is a decrease, then the annuity shall not be | ||||||
26 | increased. |
| |||||||
| |||||||
1 | For the purposes of this Section, "consumer price index-u" | ||||||
2 | means
the index published by the Bureau of Labor Statistics of | ||||||
3 | the United States
Department of Labor that measures the average | ||||||
4 | change in prices of goods and
services purchased by all urban | ||||||
5 | consumers, United States city average, all
items, 1982-84 = | ||||||
6 | 100. The new amount resulting from each annual adjustment
shall | ||||||
7 | be determined by the Public Pension Division of the Department | ||||||
8 | of Insurance and made available to the board of the retirement | ||||||
9 | system by November 1 of each year. | ||||||
10 | (b) The automatic annual increases in annuity provided | ||||||
11 | under this Section
shall not be applicable unless a member has | ||||||
12 | made contributions toward such
increases for a period | ||||||
13 | equivalent to one full year of creditable service.
If a member | ||||||
14 | contributes for service performed after August 26, 1969 but
the | ||||||
15 | member becomes an annuitant before such contributions amount to | ||||||
16 | one
full year's contributions based on the salary at the date | ||||||
17 | of retirement,
he or she may pay the necessary balance of the | ||||||
18 | contributions to the system
and be eligible for the automatic | ||||||
19 | annual increases in annuity provided under
this Section.
| ||||||
20 | (c) Each member shall make contributions toward the cost of | ||||||
21 | the automatic
annual increases in annuity as provided under | ||||||
22 | Section 16-152.
| ||||||
23 | (d) An annuitant receiving a retirement annuity or | ||||||
24 | disability retirement
annuity on July 1, 1969, who subsequently | ||||||
25 | re-enters service as a teacher
is eligible for the automatic | ||||||
26 | annual increases in annuity provided under
this Section if he |
| |||||||
| |||||||
1 | or she renders at least one year of creditable service
| ||||||
2 | following the latest re-entry.
| ||||||
3 | (e) In addition to the automatic annual increases in | ||||||
4 | annuity provided
under this Section, an annuitant who meets the | ||||||
5 | service requirements of this
Section and whose retirement | ||||||
6 | annuity or disability retirement annuity began
on or before | ||||||
7 | January 1, 1971 shall receive, on January 1, 1981, an increase
| ||||||
8 | in the annuity then being paid of one dollar per month for each | ||||||
9 | year of
creditable service. On January 1, 1982, an annuitant | ||||||
10 | whose retirement
annuity or disability retirement annuity | ||||||
11 | began on or before January 1, 1977
shall receive an increase in | ||||||
12 | the annuity then being paid of one dollar per
month for each | ||||||
13 | year of creditable service.
| ||||||
14 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
15 | began
on or before January 1, 1977, shall receive an increase | ||||||
16 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
17 | creditable service times the
number of years that have elapsed | ||||||
18 | since the annuity began.
| ||||||
19 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
20 | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
| ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been held unconstitutional)
| ||||||
23 | Sec. 16-136.1. Annual increase for certain annuitants. | ||||||
24 | (a) Any annuitant receiving a retirement annuity on June | ||||||
25 | 30, 1969 and
any member retiring after June 30, 1969 shall be |
| |||||||
| |||||||
1 | eligible for the annual
increases provided under this Section | ||||||
2 | provided the annuitant is ineligible
for the automatic annual | ||||||
3 | increase in annuity provided under Section
16-133.1, and | ||||||
4 | provided further that (1) retirement occurred at age 55 or over
| ||||||
5 | and was based on 5 or more years of creditable service or (2) | ||||||
6 | if
retirement occurred prior to age 55, the retirement annuity
| ||||||
7 | was based on 20 or more years of creditable service.
| ||||||
8 | (b) Except as otherwise provided in subsection (b-1), an An | ||||||
9 | annuitant entitled to increases under this Section shall be | ||||||
10 | entitled
to the initial increase as of the later of: (1) | ||||||
11 | January 1 following
attainment of age 65, (2) January 1 | ||||||
12 | following the first anniversary
of retirement, or (3) the first | ||||||
13 | day of the month following receipt of
the required qualifying | ||||||
14 | contribution from the annuitant. The initial monthly
increase | ||||||
15 | shall be computed on the basis of the period elapsed between
| ||||||
16 | the later of the date of last retirement or attainment of age | ||||||
17 | 50 and the
date of qualification for the initial increase, at | ||||||
18 | the rate of 1 1/2% of
the original monthly retirement annuity | ||||||
19 | per year for periods
prior to September 1, 1971, and at the | ||||||
20 | rate of 2% per year for periods between
September 1, 1971 and | ||||||
21 | September 1, 1978, and at the rate of 3% per year
for periods | ||||||
22 | thereafter.
| ||||||
23 | Except as otherwise provided in subsection (b-1), if | ||||||
24 | applicable, an An annuitant who has received an initial | ||||||
25 | increase under this Section ,
shall be entitled, on each January | ||||||
26 | 1 following the granting of the
initial increase, to an |
| |||||||
| |||||||
1 | increase of 3% of the original monthly retirement
annuity for | ||||||
2 | increases granted prior to January 1, 1990, and equal to 3%
of | ||||||
3 | the total annuity, including previous increases under this | ||||||
4 | Section, for
increases granted on or after January 1, 1990. The | ||||||
5 | original monthly
retirement annuity for computations under | ||||||
6 | this subsection
(b) shall be considered to be $83.34 for any | ||||||
7 | annuitant entitled to benefits
under Section 16-134. The | ||||||
8 | minimum original disability retirement annuity
for | ||||||
9 | computations under this subsection (b) shall be considered to | ||||||
10 | be
$33.34 per month for any annuitant retired on account of | ||||||
11 | disability.
| ||||||
12 | (b-1) Notwithstanding any other provision of this Article, | ||||||
13 | for a Tier 1 employee who made the election under paragraph (1) | ||||||
14 | of subsection (a) of Section 16-122.9: | ||||||
15 | (1) The initial increase in retirement annuity under | ||||||
16 | this Section shall occur on the January 1 occurring either | ||||||
17 | on or after the attainment of age 67 or the fifth | ||||||
18 | anniversary of the annuity start date, whichever is | ||||||
19 | earlier. | ||||||
20 | (2) The amount of each automatic annual increase in | ||||||
21 | retirement annuity occurring on or after the effective date | ||||||
22 | of that election shall be calculated as a percentage of the | ||||||
23 | originally granted retirement annuity, equal to 3% or | ||||||
24 | one-half the annual unadjusted percentage increase (but | ||||||
25 | not less than zero) in the consumer price index-u for the | ||||||
26 | 12 months ending with the September preceding each November |
| |||||||
| |||||||
1 | 1, whichever is less. If the annual unadjusted percentage | ||||||
2 | change in the consumer price index-u for the 12 months | ||||||
3 | ending with the September preceding each November 1 is zero | ||||||
4 | or there is a decrease, then the annuity shall not be | ||||||
5 | increased. | ||||||
6 | For the purposes of this Section, "consumer price index-u" | ||||||
7 | means
the index published by the Bureau of Labor Statistics of | ||||||
8 | the United States
Department of Labor that measures the average | ||||||
9 | change in prices of goods and
services purchased by all urban | ||||||
10 | consumers, United States city average, all
items, 1982-84 = | ||||||
11 | 100. The new amount resulting from each annual adjustment
shall | ||||||
12 | be determined by the Public Pension Division of the Department | ||||||
13 | of Insurance and made available to the board of the retirement | ||||||
14 | system by November 1 of each year. | ||||||
15 | (c) An annuitant who otherwise qualifies for annual
| ||||||
16 | increases under this Section must make a one-time payment of
1% | ||||||
17 | of the monthly final average salary for each full year of the | ||||||
18 | creditable
service forming the basis of the retirement annuity | ||||||
19 | or, if the
retirement annuity was not computed using final | ||||||
20 | average salary, 1% of the
original monthly retirement annuity | ||||||
21 | for each full year of service
forming the basis of the | ||||||
22 | retirement annuity.
| ||||||
23 | (d) In addition to other increases which may be provided by | ||||||
24 | this Section,
regardless of creditable service, annuitants not | ||||||
25 | meeting
the service requirements of Section 16-133.1 and whose | ||||||
26 | retirement annuity
began on or before January 1, 1971 shall |
| |||||||
| |||||||
1 | receive, on January
1, 1981, an increase in the retirement | ||||||
2 | annuity then being paid
of one dollar per month for each year | ||||||
3 | of creditable service forming
the basis of the retirement | ||||||
4 | allowance. On January 1, 1982, annuitants
whose retirement | ||||||
5 | annuity began on or before January 1, 1977, shall receive
an | ||||||
6 | increase in the retirement annuity then being paid of one | ||||||
7 | dollar per
month for each year of creditable service.
| ||||||
8 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
9 | began
on or before January 1, 1977, shall receive an increase | ||||||
10 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
11 | creditable service times the
number of years that have elapsed | ||||||
12 | since the annuity began.
| ||||||
13 | (Source: P.A. 86-273.)
| ||||||
14 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
15 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
16 | which has been held unconstitutional)
| ||||||
17 | Sec. 16-152. Contributions by members.
| ||||||
18 | (a) Except as otherwise provided in subsection (a-5), each | ||||||
19 | Each member shall make contributions for membership service to | ||||||
20 | this
System as follows:
| ||||||
21 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
22 | salary towards the
cost of the retirement annuity. Such | ||||||
23 | contributions shall be deemed "normal
contributions".
| ||||||
24 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
25 | of salary toward
the cost of the automatic annual increase |
| |||||||
| |||||||
1 | in retirement annuity provided
under Section 16-133.1.
| ||||||
2 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
3 | salary towards the
cost of survivor benefits. Such | ||||||
4 | contributions shall not be credited to
the individual | ||||||
5 | account of the member and shall not be subject to refund
| ||||||
6 | except as provided under Section 16-143.2.
| ||||||
7 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
8 | salary toward the cost of the early retirement without | ||||||
9 | discount option provided under Section 16-133.2. This | ||||||
10 | contribution shall cease upon termination of the early | ||||||
11 | retirement without discount option as provided in Section | ||||||
12 | 16-133.2.
| ||||||
13 | (a-5) Beginning July 1, 2018 or the effective date of the | ||||||
14 | Tier 1 employee's election under paragraph (1) of subsection | ||||||
15 | (a) of Section 16-122.9, whichever is later, in lieu of the | ||||||
16 | contributions otherwise required under subsection (a), each | ||||||
17 | Tier 1 employee who made the election under paragraph (1) of | ||||||
18 | subsection (a) of Section 16-122.9 shall make contributions as | ||||||
19 | follows: | ||||||
20 | (1) Contributions of 7.50% of salary towards the cost | ||||||
21 | of the retirement annuity. Such contributions shall be | ||||||
22 | deemed "normal contributions". | ||||||
23 | (2) Contributions of 0.60% towards the cost of survivor | ||||||
24 | benefits. Such contributions shall not be credited to the | ||||||
25 | individual account of the member and shall not be subject | ||||||
26 | to refund except as provided in Section 16-143.2. |
| |||||||
| |||||||
1 | (3) Contributions of 0.40% of salary toward the cost of | ||||||
2 | the early retirement without discount option provided | ||||||
3 | under Section 16-133.2. This contribution shall cease upon | ||||||
4 | termination of the early retirement without discount | ||||||
5 | option as provided in Section 16-133.2. | ||||||
6 | (b) The minimum required contribution for any year of | ||||||
7 | full-time
teaching service shall be $192.
| ||||||
8 | (c) Contributions shall not be required of any annuitant | ||||||
9 | receiving
a retirement annuity who is given employment as | ||||||
10 | permitted under Section 16-118 or 16-150.1.
| ||||||
11 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
12 | retires with
more than 34 years of creditable service, and | ||||||
13 | (iii) does not elect to qualify
for the augmented rate under | ||||||
14 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
15 | to receive a partial refund of contributions made under this
| ||||||
16 | Section for service occurring after the later of June 30, 1998 | ||||||
17 | or attainment
of 34 years of creditable service, in an amount | ||||||
18 | equal to 1.00% of the salary
upon which those contributions | ||||||
19 | were based.
| ||||||
20 | (e) A member's contributions toward the cost of early | ||||||
21 | retirement without discount made under item (a)(4) of this | ||||||
22 | Section shall not be refunded if the member has elected early | ||||||
23 | retirement without discount under Section 16-133.2 and has | ||||||
24 | begun to receive a retirement annuity under this Article | ||||||
25 | calculated in accordance with that election. Otherwise, a | ||||||
26 | member's contributions toward the cost of early retirement |
| |||||||
| |||||||
1 | without discount made under item (a)(4) of this Section shall | ||||||
2 | be refunded according to whichever one of the following | ||||||
3 | circumstances occurs first: | ||||||
4 | (1) The contributions shall be refunded to the member, | ||||||
5 | without interest, within 120 days after the member's | ||||||
6 | retirement annuity commences, if the member does not elect | ||||||
7 | early retirement without discount under Section 16-133.2. | ||||||
8 | (2) The contributions shall be included, without | ||||||
9 | interest, in any refund claimed by the member under Section | ||||||
10 | 16-151. | ||||||
11 | (3) The contributions shall be refunded to the member's | ||||||
12 | designated beneficiary (or if there is no beneficiary, to | ||||||
13 | the member's estate), without interest, if the member dies | ||||||
14 | without having begun to receive a retirement annuity under | ||||||
15 | this Article. | ||||||
16 | (4) The contributions shall be refunded to the member, | ||||||
17 | without interest, if the early retirement without discount | ||||||
18 | option provided under subsection (d) of Section 16-133.2 is | ||||||
19 | terminated. In that event, the System shall provide to the | ||||||
20 | member, within 120 days after the option is terminated, an | ||||||
21 | application for a refund of those contributions. | ||||||
22 | (Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, | ||||||
23 | eff. 7-28-16.)
| ||||||
24 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
25 | (Text of Section WITHOUT the changes made by P.A. 98-599, |
| |||||||
| |||||||
1 | which has been held unconstitutional)
| ||||||
2 | Sec. 16-158. Contributions by State and other employing | ||||||
3 | units.
| ||||||
4 | (a) The State shall make contributions to the System by | ||||||
5 | means of
appropriations from the Common School Fund and other | ||||||
6 | State funds of amounts
which, together with other employer | ||||||
7 | contributions, employee contributions,
investment income, and | ||||||
8 | other income, will be sufficient to meet the cost of
| ||||||
9 | maintaining and administering the System on a 90% funded basis | ||||||
10 | in accordance
with actuarial recommendations.
| ||||||
11 | The Board shall determine the amount of State contributions | ||||||
12 | required for
each fiscal year on the basis of the actuarial | ||||||
13 | tables and other assumptions
adopted by the Board and the | ||||||
14 | recommendations of the actuary, using the formula
in subsection | ||||||
15 | (b-3).
| ||||||
16 | (a-1) Annually, on or before November 15 until November 15, | ||||||
17 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
18 | required State contribution for the coming fiscal
year. The | ||||||
19 | certification under this subsection (a-1) shall include a copy | ||||||
20 | of the actuarial recommendations
upon which it is based and | ||||||
21 | shall specifically identify the System's projected State | ||||||
22 | normal cost for that fiscal year.
| ||||||
23 | On or before May 1, 2004, the Board shall recalculate and | ||||||
24 | recertify to
the Governor the amount of the required State | ||||||
25 | contribution to the System for
State fiscal year 2005, taking | ||||||
26 | into account the amounts appropriated to and
received by the |
| |||||||
| |||||||
1 | System under subsection (d) of Section 7.2 of the General
| ||||||
2 | Obligation Bond Act.
| ||||||
3 | On or before July 1, 2005, the Board shall recalculate and | ||||||
4 | recertify
to the Governor the amount of the required State
| ||||||
5 | contribution to the System for State fiscal year 2006, taking | ||||||
6 | into account the changes in required State contributions made | ||||||
7 | by this amendatory Act of the 94th General Assembly.
| ||||||
8 | On or before April 1, 2011, the Board shall recalculate and | ||||||
9 | recertify to the Governor the amount of the required State | ||||||
10 | contribution to the System for State fiscal year 2011, applying | ||||||
11 | the changes made by Public Act 96-889 to the System's assets | ||||||
12 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
13 | was approved on that date. | ||||||
14 | (a-5) On or before November 1 of each year, beginning | ||||||
15 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
16 | the Governor, and the General Assembly a proposed certification | ||||||
17 | of the amount of the required State contribution to the System | ||||||
18 | for the next fiscal year, along with all of the actuarial | ||||||
19 | assumptions, calculations, and data upon which that proposed | ||||||
20 | certification is based. On or before January 1 of each year, | ||||||
21 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
22 | preliminary report concerning the proposed certification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. On or before | ||||||
26 | January 15, 2013 and each January 15 thereafter, the Board |
| |||||||
| |||||||
1 | shall certify to the Governor and the General Assembly the | ||||||
2 | amount of the required State contribution for the next fiscal | ||||||
3 | year. The Board's certification must note any deviations from | ||||||
4 | the State Actuary's recommended changes, the reason or reasons | ||||||
5 | for not following the State Actuary's recommended changes, and | ||||||
6 | the fiscal impact of not following the State Actuary's | ||||||
7 | recommended changes on the required State contribution. | ||||||
8 | (a-10) As soon as practical after the effective date of | ||||||
9 | this amendatory Act of the 99th General Assembly, the State | ||||||
10 | Actuary and the Board shall recalculate and recertify to the | ||||||
11 | Governor and the General Assembly the amount of the State | ||||||
12 | contribution to the System for State fiscal year 2018, taking | ||||||
13 | into account the changes in required State contributions made | ||||||
14 | by this amendatory Act of the 99th General Assembly. | ||||||
15 | (a-15) On or before May 1, 2018, the Board shall | ||||||
16 | recalculate and recertify
to the Governor and the General | ||||||
17 | Assembly the amount of the required State
contribution to the | ||||||
18 | System for State fiscal year 2019, taking into account the | ||||||
19 | effect on the System's liabilities of the elections made under | ||||||
20 | Section 16-122.9. | ||||||
21 | On or before October 1, 2018, the Board shall recalculate | ||||||
22 | and recertify to the Governor and the General Assembly the | ||||||
23 | amount of the required State contribution to the System for | ||||||
24 | State fiscal year 2019, taking into account the reduction | ||||||
25 | specified under item (3) of subsection (b-3) of this Section. | ||||||
26 | (b) Through State fiscal year 1995, the State contributions |
| |||||||
| |||||||
1 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
2 | the School Code.
| ||||||
3 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
4 | of each month,
or as soon thereafter as may be practicable, the | ||||||
5 | Board shall submit vouchers
for payment of State contributions | ||||||
6 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
7 | required annual State contribution certified under
subsection | ||||||
8 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
9 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
10 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
11 | excess of the fiscal year 2004
certified contribution amount | ||||||
12 | determined under this Section
after taking into consideration | ||||||
13 | the transfer to the System
under subsection (a) of Section | ||||||
14 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
15 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
16 | funds appropriated to the System for that
fiscal year.
| ||||||
17 | If in any month the amount remaining unexpended from all | ||||||
18 | other appropriations
to the System for the applicable fiscal | ||||||
19 | year (including the appropriations to
the System under Section | ||||||
20 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
21 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
22 | amount
lawfully vouchered under this subsection, the | ||||||
23 | difference shall be paid from the
Common School Fund under the | ||||||
24 | continuing appropriation authority provided in
Section 1.1 of | ||||||
25 | the State Pension Funds Continuing Appropriation Act.
| ||||||
26 | (b-2) Allocations from the Common School Fund apportioned |
| |||||||
| |||||||
1 | to school
districts not coming under this System shall not be | ||||||
2 | diminished or affected by
the provisions of this Article.
| ||||||
3 | (b-3) For State fiscal years 2018 through 2045 (except as | ||||||
4 | otherwise provided for fiscal year 2019), the minimum | ||||||
5 | contribution to the System to be made by the State for each | ||||||
6 | fiscal year shall be an amount determined by the System to be | ||||||
7 | sufficient to bring the total assets of the System up to 90% of | ||||||
8 | the total actuarial liabilities of the System by the end of | ||||||
9 | State fiscal year 2045. In making these determinations, the | ||||||
10 | required State contribution shall be calculated each year as a | ||||||
11 | level percentage of total payroll, including payroll that is | ||||||
12 | not deemed pensionable, over the years remaining to and | ||||||
13 | including fiscal year 2045 and shall be determined under the | ||||||
14 | projected unit credit actuarial cost method. | ||||||
15 | For State fiscal year 2019: | ||||||
16 | (1) The initial calculation and certification shall be | ||||||
17 | based on the amount determined above. | ||||||
18 | (2) For purposes of the recertification due on or | ||||||
19 | before May 1, 2018, the recalculation of the required State | ||||||
20 | contribution for fiscal year 2019 shall take into account | ||||||
21 | the effect on the System's liabilities of the elections | ||||||
22 | made under Section 16-122.9. | ||||||
23 | (3) For purposes of the recertification due on or | ||||||
24 | before October 1, 2018, the total required State | ||||||
25 | contribution for fiscal year 2019 shall be reduced by the | ||||||
26 | amount of the consideration payments made to Tier 1 |
| |||||||
| |||||||
1 | employees who made the election under paragraph (1) of | ||||||
2 | subsection (a) of Section 16-122.9. | ||||||
3 | Beginning in State fiscal year 2018, any increase or | ||||||
4 | decrease in State contribution over the prior fiscal year due | ||||||
5 | exclusively to changes in actuarial or investment assumptions | ||||||
6 | adopted by the Board shall be included in the State | ||||||
7 | contribution to the System, as a percentage of the applicable | ||||||
8 | employee payroll, and shall be increased in equal annual | ||||||
9 | increments so that by the State fiscal year occurring 5 years | ||||||
10 | after the adoption of the actuarial or investment assumptions, | ||||||
11 | the State is contributing at the rate otherwise required under | ||||||
12 | this Section. | ||||||
13 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
14 | contribution
to the System to be made by the State for each | ||||||
15 | fiscal year shall be an amount
determined by the System to be | ||||||
16 | sufficient to bring the total assets of the
System up to 90% of | ||||||
17 | the total actuarial liabilities of the System by the end of
| ||||||
18 | State fiscal year 2045. In making these determinations, the | ||||||
19 | required State
contribution shall be calculated each year as a | ||||||
20 | level percentage of payroll
over the years remaining to and | ||||||
21 | including fiscal year 2045 and shall be
determined under the | ||||||
22 | projected unit credit actuarial cost method.
| ||||||
23 | For State fiscal years 1996 through 2005, the State | ||||||
24 | contribution to the
System, as a percentage of the applicable | ||||||
25 | employee payroll, shall be increased
in equal annual increments | ||||||
26 | so that by State fiscal year 2011, the State is
contributing at |
| |||||||
| |||||||
1 | the rate required under this Section; except that in the
| ||||||
2 | following specified State fiscal years, the State contribution | ||||||
3 | to the System
shall not be less than the following indicated | ||||||
4 | percentages of the applicable
employee payroll, even if the | ||||||
5 | indicated percentage will produce a State
contribution in | ||||||
6 | excess of the amount otherwise required under this subsection
| ||||||
7 | and subsection (a), and notwithstanding any contrary | ||||||
8 | certification made under
subsection (a-1) before the effective | ||||||
9 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
10 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
11 | 2003; and
13.56% in FY 2004.
| ||||||
12 | Notwithstanding any other provision of this Article, the | ||||||
13 | total required State
contribution for State fiscal year 2006 is | ||||||
14 | $534,627,700.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State
contribution for State fiscal year 2007 is | ||||||
17 | $738,014,500.
| ||||||
18 | For each of State fiscal years 2008 through 2009, the State | ||||||
19 | contribution to
the System, as a percentage of the applicable | ||||||
20 | employee payroll, shall be
increased in equal annual increments | ||||||
21 | from the required State contribution for State fiscal year | ||||||
22 | 2007, so that by State fiscal year 2011, the
State is | ||||||
23 | contributing at the rate otherwise required under this Section.
| ||||||
24 | Notwithstanding any other provision of this Article, the | ||||||
25 | total required State contribution for State fiscal year 2010 is | ||||||
26 | $2,089,268,000 and shall be made from the proceeds of bonds |
| |||||||
| |||||||
1 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
2 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
3 | expenses determined by the System's share of total bond | ||||||
4 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
5 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
6 | due to the issuance of discounted bonds, if applicable. | ||||||
7 | Notwithstanding any other provision of this Article, the
| ||||||
8 | total required State contribution for State fiscal year 2011 is
| ||||||
9 | the amount recertified by the System on or before April 1, 2011 | ||||||
10 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
11 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
12 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
13 | pro rata share of bond sale
expenses determined by the System's | ||||||
14 | share of total bond
proceeds, (ii) any amounts received from | ||||||
15 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
16 | reduction in bond proceeds
due to the issuance of discounted | ||||||
17 | bonds, if applicable. This amount shall include, in addition to | ||||||
18 | the amount certified by the System, an amount necessary to meet | ||||||
19 | employer contributions required by the State as an employer | ||||||
20 | under paragraph (e) of this Section, which may also be used by | ||||||
21 | the System for contributions required by paragraph (a) of | ||||||
22 | Section 16-127. | ||||||
23 | Beginning in State fiscal year 2046, the minimum State | ||||||
24 | contribution for
each fiscal year shall be the amount needed to | ||||||
25 | maintain the total assets of
the System at 90% of the total | ||||||
26 | actuarial liabilities of the System.
|
| |||||||
| |||||||
1 | Amounts received by the System pursuant to Section 25 of | ||||||
2 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
3 | Finance Act in any fiscal year do not reduce and do not | ||||||
4 | constitute payment of any portion of the minimum State | ||||||
5 | contribution required under this Article in that fiscal year. | ||||||
6 | Such amounts shall not reduce, and shall not be included in the | ||||||
7 | calculation of, the required State contributions under this | ||||||
8 | Article in any future year until the System has reached a | ||||||
9 | funding ratio of at least 90%. A reference in this Article to | ||||||
10 | the "required State contribution" or any substantially similar | ||||||
11 | term does not include or apply to any amounts payable to the | ||||||
12 | System under Section 25 of the Budget Stabilization Act. | ||||||
13 | Notwithstanding any other provision of this Section, the | ||||||
14 | required State
contribution for State fiscal year 2005 and for | ||||||
15 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
16 | under this Section and
certified under subsection (a-1), shall | ||||||
17 | not exceed an amount equal to (i) the
amount of the required | ||||||
18 | State contribution that would have been calculated under
this | ||||||
19 | Section for that fiscal year if the System had not received any | ||||||
20 | payments
under subsection (d) of Section 7.2 of the General | ||||||
21 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
22 | total debt service payments for that fiscal
year on the bonds | ||||||
23 | issued in fiscal year 2003 for the purposes of that Section | ||||||
24 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
25 | the same as the System's portion of
the total moneys | ||||||
26 | distributed under subsection (d) of Section 7.2 of the General
|
| |||||||
| |||||||
1 | Obligation Bond Act. In determining this maximum for State | ||||||
2 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
3 | in item (i) shall be increased, as a percentage of the | ||||||
4 | applicable employee payroll, in equal increments calculated | ||||||
5 | from the sum of the required State contribution for State | ||||||
6 | fiscal year 2007 plus the applicable portion of the State's | ||||||
7 | total debt service payments for fiscal year 2007 on the bonds | ||||||
8 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
9 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
10 | 2011, the
State is contributing at the rate otherwise required | ||||||
11 | under this Section.
| ||||||
12 | (c) Payment of the required State contributions and of all | ||||||
13 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
14 | other benefits granted
under or assumed by this System, and all | ||||||
15 | expenses in connection with the
administration and operation | ||||||
16 | thereof, are obligations of the State.
| ||||||
17 | If members are paid from special trust or federal funds | ||||||
18 | which are
administered by the employing unit, whether school | ||||||
19 | district or other
unit, the employing unit shall pay to the | ||||||
20 | System from such
funds the full accruing retirement costs based | ||||||
21 | upon that
service, which, beginning July 1, 2014, shall be at a | ||||||
22 | rate, expressed as a percentage of salary, equal to the total | ||||||
23 | minimum contribution
to the System to be made by the State for | ||||||
24 | that fiscal year, including both normal cost and unfunded | ||||||
25 | liability components, expressed as a percentage of payroll, as | ||||||
26 | determined by the System under subsection (b-3) of this |
| |||||||
| |||||||
1 | Section. Employer contributions, based on
salary paid to | ||||||
2 | members from federal funds, may be forwarded by the | ||||||
3 | distributing
agency of the State of Illinois to the System | ||||||
4 | prior to allocation, in an
amount determined in accordance with | ||||||
5 | guidelines established by such
agency and the System. Any | ||||||
6 | contribution for fiscal year 2015 collected as a result of the | ||||||
7 | change made by this amendatory Act of the 98th General Assembly | ||||||
8 | shall be considered a State contribution under subsection (b-3) | ||||||
9 | of this Section.
| ||||||
10 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
11 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
12 | employer's normal cost
of benefits based upon the teacher's | ||||||
13 | service, in addition to
employee contributions, as determined | ||||||
14 | by the System. Such employer
contributions shall be forwarded | ||||||
15 | monthly in accordance with guidelines
established by the | ||||||
16 | System.
| ||||||
17 | However, with respect to benefits granted under Section | ||||||
18 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
19 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
20 | (rather than 20%) of the member's
highest annual salary rate | ||||||
21 | for each year of creditable service granted, and
the employer | ||||||
22 | shall also pay the required employee contribution on behalf of
| ||||||
23 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
24 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
25 | 16-106 who is serving in that capacity
while on leave of | ||||||
26 | absence from another employer under this Article shall not
be |
| |||||||
| |||||||
1 | considered an employee of the employer from which the teacher | ||||||
2 | is on leave.
| ||||||
3 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
4 | shall pay to the System an employer contribution computed as | ||||||
5 | follows:
| ||||||
6 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
7 | employer
contribution shall be equal to 0.3% of each | ||||||
8 | teacher's salary.
| ||||||
9 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
10 | contribution shall be equal to 0.58% of each teacher's | ||||||
11 | salary.
| ||||||
12 | The school district or other employing unit may pay these | ||||||
13 | employer
contributions out of any source of funding available | ||||||
14 | for that purpose and
shall forward the contributions to the | ||||||
15 | System on the schedule established
for the payment of member | ||||||
16 | contributions.
| ||||||
17 | These employer contributions are intended to offset a | ||||||
18 | portion of the cost
to the System of the increases in | ||||||
19 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
20 | Each employer of teachers is entitled to a credit against | ||||||
21 | the contributions
required under this subsection (e) with | ||||||
22 | respect to salaries paid to teachers
for the period January 1, | ||||||
23 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
24 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
25 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
26 | paid to teachers for that
period.
|
| |||||||
| |||||||
1 | The additional 1% employee contribution required under | ||||||
2 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
3 | responsibility of the teacher and not the
teacher's employer, | ||||||
4 | unless the employer agrees, through collective bargaining
or | ||||||
5 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
6 | If an employer is required by a contract in effect on May | ||||||
7 | 1, 1998 between the
employer and an employee organization to | ||||||
8 | pay, on behalf of all its full-time
employees
covered by this | ||||||
9 | Article, all mandatory employee contributions required under
| ||||||
10 | this Article, then the employer shall be excused from paying | ||||||
11 | the employer
contribution required under this subsection (e) | ||||||
12 | for the balance of the term
of that contract. The employer and | ||||||
13 | the employee organization shall jointly
certify to the System | ||||||
14 | the existence of the contractual requirement, in such
form as | ||||||
15 | the System may prescribe. This exclusion shall cease upon the
| ||||||
16 | termination, extension, or renewal of the contract at any time | ||||||
17 | after May 1,
1998.
| ||||||
18 | (f) For school years beginning on or after June 1, 2005 and | ||||||
19 | before July 1, 2018, if If the amount of a teacher's salary for | ||||||
20 | any school year used to determine final average salary exceeds | ||||||
21 | the member's annual full-time salary rate with the same | ||||||
22 | employer for the previous school year by more than 6%, the | ||||||
23 | teacher's employer shall pay to the System, in addition to all | ||||||
24 | other payments required under this Section and in accordance | ||||||
25 | with guidelines established by the System, the present value of | ||||||
26 | the increase in benefits resulting from the portion of the |
| |||||||
| |||||||
1 | increase in salary that is in excess of 6%. This present value | ||||||
2 | shall be computed by the System on the basis of the actuarial | ||||||
3 | assumptions and tables used in the most recent actuarial | ||||||
4 | valuation of the System that is available at the time of the | ||||||
5 | computation. If a teacher's salary for the 2005-2006 school | ||||||
6 | year is used to determine final average salary under this | ||||||
7 | subsection (f), then the changes made to this subsection (f) by | ||||||
8 | Public Act 94-1057 shall apply in calculating whether the | ||||||
9 | increase in his or her salary is in excess of 6%. For the | ||||||
10 | purposes of this Section, change in employment under Section | ||||||
11 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
12 | constitute a change in employer. The System may require the | ||||||
13 | employer to provide any pertinent information or | ||||||
14 | documentation.
The changes made to this subsection (f) by this | ||||||
15 | amendatory Act of the 94th General Assembly apply without | ||||||
16 | regard to whether the teacher was in service on or after its | ||||||
17 | effective date.
| ||||||
18 | Whenever it determines that a payment is or may be required | ||||||
19 | under this subsection, the System shall calculate the amount of | ||||||
20 | the payment and bill the employer for that amount. The bill | ||||||
21 | shall specify the calculations used to determine the amount | ||||||
22 | due. If the employer disputes the amount of the bill, it may, | ||||||
23 | within 30 days after receipt of the bill, apply to the System | ||||||
24 | in writing for a recalculation. The application must specify in | ||||||
25 | detail the grounds of the dispute and, if the employer asserts | ||||||
26 | that the calculation is subject to subsection (g) or (h) of |
| |||||||
| |||||||
1 | this Section, must include an affidavit setting forth and | ||||||
2 | attesting to all facts within the employer's knowledge that are | ||||||
3 | pertinent to the applicability of that subsection. Upon | ||||||
4 | receiving a timely application for recalculation, the System | ||||||
5 | shall review the application and, if appropriate, recalculate | ||||||
6 | the amount due.
| ||||||
7 | The employer contributions required under this subsection | ||||||
8 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
9 | receipt of the bill. If the employer contributions are not paid | ||||||
10 | within 90 days after receipt of the bill, then interest will be | ||||||
11 | charged at a rate equal to the System's annual actuarially | ||||||
12 | assumed rate of return on investment compounded annually from | ||||||
13 | the 91st day after receipt of the bill. Payments must be | ||||||
14 | concluded within 3 years after the employer's receipt of the | ||||||
15 | bill.
| ||||||
16 | (f-1) For school years beginning on or after July 1, 2018, | ||||||
17 | if the amount of a teacher's salary for any school year used to | ||||||
18 | determine final average salary exceeds the member's annual | ||||||
19 | full-time salary rate with the same employer for the previous | ||||||
20 | school year by more than the unadjusted percentage increase in | ||||||
21 | the consumer price index-u for the calendar year ending on the | ||||||
22 | December 31 immediately preceding the beginning of the school | ||||||
23 | year, then the teacher's employer shall pay to the System, in | ||||||
24 | addition to all other payments required under this Section and | ||||||
25 | in accordance with guidelines established by the System, the | ||||||
26 | present value of the increase in benefits resulting from the |
| |||||||
| |||||||
1 | portion of the increase in salary that is in excess of the | ||||||
2 | unadjusted percentage increase in the consumer price index-u | ||||||
3 | for the applicable calendar year. This present value shall be | ||||||
4 | computed by the System on the basis of the actuarial | ||||||
5 | assumptions and tables used in the most recent actuarial | ||||||
6 | valuation of the System that is available at the time of the | ||||||
7 | computation. The System may require the employer to provide any | ||||||
8 | pertinent information or documentation. | ||||||
9 | Whenever it determines that a payment is or may be required | ||||||
10 | under this subsection (f-1), the System shall calculate the | ||||||
11 | amount of the payment and bill the employer for that amount. | ||||||
12 | The bill shall specify the calculations used to determine the | ||||||
13 | amount due. If the employer disputes the amount of the bill, it | ||||||
14 | may, within 30 days after receipt of the bill, apply to the | ||||||
15 | System in writing for a recalculation. The application must | ||||||
16 | specify in detail the grounds of the dispute and, if the | ||||||
17 | employer asserts that the calculation is subject to subsection | ||||||
18 | (h-1) of this Section, must include an affidavit setting forth | ||||||
19 | and attesting to all facts within the employer's knowledge that | ||||||
20 | are pertinent to the applicability of subsection (h-1). Upon | ||||||
21 | receiving a timely application for recalculation, the System | ||||||
22 | shall review the application and, if appropriate, recalculate | ||||||
23 | the amount due. | ||||||
24 | The employer contributions required under this subsection | ||||||
25 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
26 | receipt of the bill. If the employer contributions are not paid |
| |||||||
| |||||||
1 | within 90 days after receipt of the bill, then interest shall | ||||||
2 | be charged at a rate equal to the System's annual actuarially | ||||||
3 | assumed rate of return on investment compounded annually from | ||||||
4 | the 91st day after receipt of the bill. Payments must be | ||||||
5 | concluded within 3 years after the employer's receipt of the | ||||||
6 | bill. | ||||||
7 | For the purposes of this Section, "consumer price index-u" | ||||||
8 | means the index published by the Bureau of Labor Statistics of | ||||||
9 | the United States Department of Labor that measures the average | ||||||
10 | change in prices of goods and services purchased by all urban | ||||||
11 | consumers, United States city average, all items, 1982-84 = | ||||||
12 | 100. The new amount resulting from each annual adjustment shall | ||||||
13 | be determined by the Public Pension Division of the Department | ||||||
14 | of Insurance and made available to the boards of the retirement | ||||||
15 | systems and pension funds by November 1 of each year. | ||||||
16 | (g) This subsection (g) applies only to payments made or | ||||||
17 | salary increases given on or after June 1, 2005 but before July | ||||||
18 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
19 | require the System to refund any payments received before
July | ||||||
20 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
21 | When assessing payment for any amount due under subsection | ||||||
22 | (f), the System shall exclude salary increases paid to teachers | ||||||
23 | under contracts or collective bargaining agreements entered | ||||||
24 | into, amended, or renewed before June 1, 2005.
| ||||||
25 | When assessing payment for any amount due under subsection | ||||||
26 | (f), the System shall exclude salary increases paid to a |
| |||||||
| |||||||
1 | teacher at a time when the teacher is 10 or more years from | ||||||
2 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
3 | When assessing payment for any amount due under subsection | ||||||
4 | (f), the System shall exclude salary increases resulting from | ||||||
5 | overload work, including summer school, when the school | ||||||
6 | district has certified to the System, and the System has | ||||||
7 | approved the certification, that (i) the overload work is for | ||||||
8 | the sole purpose of classroom instruction in excess of the | ||||||
9 | standard number of classes for a full-time teacher in a school | ||||||
10 | district during a school year and (ii) the salary increases are | ||||||
11 | equal to or less than the rate of pay for classroom instruction | ||||||
12 | computed on the teacher's current salary and work schedule.
| ||||||
13 | When assessing payment for any amount due under subsection | ||||||
14 | (f), the System shall exclude a salary increase resulting from | ||||||
15 | a promotion (i) for which the employee is required to hold a | ||||||
16 | certificate or supervisory endorsement issued by the State | ||||||
17 | Teacher Certification Board that is a different certification | ||||||
18 | or supervisory endorsement than is required for the teacher's | ||||||
19 | previous position and (ii) to a position that has existed and | ||||||
20 | been filled by a member for no less than one complete academic | ||||||
21 | year and the salary increase from the promotion is an increase | ||||||
22 | that results in an amount no greater than the lesser of the | ||||||
23 | average salary paid for other similar positions in the district | ||||||
24 | requiring the same certification or the amount stipulated in | ||||||
25 | the collective bargaining agreement for a similar position | ||||||
26 | requiring the same certification.
|
| |||||||
| |||||||
1 | When assessing payment for any amount due under subsection | ||||||
2 | (f), the System shall exclude any payment to the teacher from | ||||||
3 | the State of Illinois or the State Board of Education over | ||||||
4 | which the employer does not have discretion, notwithstanding | ||||||
5 | that the payment is included in the computation of final | ||||||
6 | average salary.
| ||||||
7 | (h) When assessing payment for any amount due under | ||||||
8 | subsection (f), the System shall exclude any salary increase | ||||||
9 | described in subsection (g) of this Section given on or after | ||||||
10 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
11 | collective bargaining agreement entered into, amended, or | ||||||
12 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
13 | Notwithstanding any other provision of this Section, any | ||||||
14 | payments made or salary increases given after June 30, 2014 | ||||||
15 | shall be used in assessing payment for any amount due under | ||||||
16 | subsection (f) of this Section.
| ||||||
17 | (h-1) When assessing payment for any amount due under | ||||||
18 | subsection (f-1), the System shall exclude earnings increases | ||||||
19 | paid to participants under contracts or collective bargaining | ||||||
20 | agreements entered into, amended, or renewed before the | ||||||
21 | effective date of this amendatory Act of the 99th General | ||||||
22 | Assembly. | ||||||
23 | (i) The System shall prepare a report and file copies of | ||||||
24 | the report with the Governor and the General Assembly by | ||||||
25 | January 1, 2007 that contains all of the following information: | ||||||
26 | (1) The number of recalculations required by the |
| |||||||
| |||||||
1 | changes made to this Section by Public Act 94-1057 for each | ||||||
2 | employer. | ||||||
3 | (2) The dollar amount by which each employer's | ||||||
4 | contribution to the System was changed due to | ||||||
5 | recalculations required by Public Act 94-1057. | ||||||
6 | (3) The total amount the System received from each | ||||||
7 | employer as a result of the changes made to this Section by | ||||||
8 | Public Act 94-4. | ||||||
9 | (4) The increase in the required State contribution | ||||||
10 | resulting from the changes made to this Section by Public | ||||||
11 | Act 94-1057.
| ||||||
12 | (i-5) For school years beginning on or after July 1, 2018, | ||||||
13 | if the amount of a participant's salary for any school year, | ||||||
14 | determined on a full-time equivalent basis, exceeds the amount | ||||||
15 | of the salary set for the Governor, the participant's employer | ||||||
16 | shall pay to the System, in addition to all other payments | ||||||
17 | required under this Section and in accordance with guidelines | ||||||
18 | established by the System, the amount of earnings that exceed | ||||||
19 | the salary set for the Governor multiplied by the level | ||||||
20 | percentage of payroll used in that fiscal year as determined by | ||||||
21 | the System to be sufficient to bring the total assets of the | ||||||
22 | System up to 90% of the total actuarial liabilities of the | ||||||
23 | System by the end of State fiscal year 2045. This amount shall | ||||||
24 | be computed by the System on the basis of the actuarial | ||||||
25 | assumptions and tables used in the most recent actuarial | ||||||
26 | valuation of the System that is available at the time of the |
| |||||||
| |||||||
1 | computation. The System may require the employer to provide any | ||||||
2 | pertinent information or documentation. | ||||||
3 | Whenever it determines that a payment is or may be required | ||||||
4 | under this subsection, the System shall calculate the amount of | ||||||
5 | the payment and bill the employer for that amount. The bill | ||||||
6 | shall specify the calculations used to determine the amount | ||||||
7 | due. If the employer disputes the amount of the bill, it may, | ||||||
8 | within 30 days after receipt of the bill, apply to the System | ||||||
9 | in writing for a recalculation. The application must specify in | ||||||
10 | detail the grounds of the dispute. Upon receiving a timely | ||||||
11 | application for recalculation, the System shall review the | ||||||
12 | application and, if appropriate, recalculate the amount due. | ||||||
13 | The employer contributions required under this subsection | ||||||
14 | may be paid in the form of a lump sum within 90 days after | ||||||
15 | receipt of the bill. If the employer contributions are not paid | ||||||
16 | within 90 days after receipt of the bill, then interest will be | ||||||
17 | charged at a rate equal to the System's annual actuarially | ||||||
18 | assumed rate of return on investment compounded annually from | ||||||
19 | the 91st day after receipt of the bill. Payments must be | ||||||
20 | concluded within 3 years after the employer's receipt of the | ||||||
21 | bill. | ||||||
22 | (j) For purposes of determining the required State | ||||||
23 | contribution to the System, the value of the System's assets | ||||||
24 | shall be equal to the actuarial value of the System's assets, | ||||||
25 | which shall be calculated as follows: | ||||||
26 | As of June 30, 2008, the actuarial value of the System's |
| |||||||
| |||||||
1 | assets shall be equal to the market value of the assets as of | ||||||
2 | that date. In determining the actuarial value of the System's | ||||||
3 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
4 | gains or losses from investment return incurred in a fiscal | ||||||
5 | year shall be recognized in equal annual amounts over the | ||||||
6 | 5-year period following that fiscal year. | ||||||
7 | (k) For purposes of determining the required State | ||||||
8 | contribution to the system for a particular year, the actuarial | ||||||
9 | value of assets shall be assumed to earn a rate of return equal | ||||||
10 | to the system's actuarially assumed rate of return. | ||||||
11 | (l) If Section 16-122.9 is determined to be | ||||||
12 | unconstitutional or otherwise invalid by a final unappealable | ||||||
13 | decision of an Illinois court or a court of competent | ||||||
14 | jurisdiction, then the changes made to this Section by this | ||||||
15 | amendatory Act of the 99th General Assembly shall not take | ||||||
16 | effect and are repealed by operation of law. | ||||||
17 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
18 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
19 | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
| ||||||
20 | (40 ILCS 5/16-203) | ||||||
21 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
22 | which has been held unconstitutional)
| ||||||
23 | Sec. 16-203. Application and expiration of new benefit | ||||||
24 | increases. | ||||||
25 | (a) As used in this Section, "new benefit increase" means |
| |||||||
| |||||||
1 | an increase in the amount of any benefit provided under this | ||||||
2 | Article, or an expansion of the conditions of eligibility for | ||||||
3 | any benefit under this Article, that results from an amendment | ||||||
4 | to this Code that takes effect after June 1, 2005 (the | ||||||
5 | effective date of Public Act 94-4). "New benefit increase", | ||||||
6 | however, does not include any benefit increase resulting from | ||||||
7 | the changes made to this Article by Public Act 95-910 or this | ||||||
8 | amendatory Act of the 99th 95th General Assembly. | ||||||
9 | (b) Notwithstanding any other provision of this Code or any | ||||||
10 | subsequent amendment to this Code, every new benefit increase | ||||||
11 | is subject to this Section and shall be deemed to be granted | ||||||
12 | only in conformance with and contingent upon compliance with | ||||||
13 | the provisions of this Section.
| ||||||
14 | (c) The Public Act enacting a new benefit increase must | ||||||
15 | identify and provide for payment to the System of additional | ||||||
16 | funding at least sufficient to fund the resulting annual | ||||||
17 | increase in cost to the System as it accrues. | ||||||
18 | Every new benefit increase is contingent upon the General | ||||||
19 | Assembly providing the additional funding required under this | ||||||
20 | subsection. The Commission on Government Forecasting and | ||||||
21 | Accountability shall analyze whether adequate additional | ||||||
22 | funding has been provided for the new benefit increase and | ||||||
23 | shall report its analysis to the Public Pension Division of the | ||||||
24 | Department of Financial and Professional Regulation. A new | ||||||
25 | benefit increase created by a Public Act that does not include | ||||||
26 | the additional funding required under this subsection is null |
| |||||||
| |||||||
1 | and void. If the Public Pension Division determines that the | ||||||
2 | additional funding provided for a new benefit increase under | ||||||
3 | this subsection is or has become inadequate, it may so certify | ||||||
4 | to the Governor and the State Comptroller and, in the absence | ||||||
5 | of corrective action by the General Assembly, the new benefit | ||||||
6 | increase shall expire at the end of the fiscal year in which | ||||||
7 | the certification is made.
| ||||||
8 | (d) Every new benefit increase shall expire 5 years after | ||||||
9 | its effective date or on such earlier date as may be specified | ||||||
10 | in the language enacting the new benefit increase or provided | ||||||
11 | under subsection (c). This does not prevent the General | ||||||
12 | Assembly from extending or re-creating a new benefit increase | ||||||
13 | by law. | ||||||
14 | (e) Except as otherwise provided in the language creating | ||||||
15 | the new benefit increase, a new benefit increase that expires | ||||||
16 | under this Section continues to apply to persons who applied | ||||||
17 | and qualified for the affected benefit while the new benefit | ||||||
18 | increase was in effect and to the affected beneficiaries and | ||||||
19 | alternate payees of such persons, but does not apply to any | ||||||
20 | other person, including without limitation a person who | ||||||
21 | continues in service after the expiration date and did not | ||||||
22 | apply and qualify for the affected benefit while the new | ||||||
23 | benefit increase was in effect.
| ||||||
24 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
25 | (40 ILCS 5/16-205.1 new) |
| |||||||
| |||||||
1 | Sec. 16-205.1. Defined contribution plan. | ||||||
2 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
3 | a voluntary defined contribution plan for up to 5% of eligible | ||||||
4 | active Tier 1 employees. The System shall determine the 5% cap | ||||||
5 | by the number of active Tier 1 employees on the effective date | ||||||
6 | of this Section. The defined contribution plan developed under | ||||||
7 | this Section shall be a plan that aggregates employer and | ||||||
8 | employee contributions in individual participant accounts | ||||||
9 | which, after meeting any other requirements, are used for | ||||||
10 | payouts after retirement in accordance with this Section and | ||||||
11 | any other applicable laws. | ||||||
12 | As used in this Section, "defined benefit plan" means the | ||||||
13 | retirement plan available under this Article to Tier 1 | ||||||
14 | employees who have not made the election authorized under this | ||||||
15 | Section. | ||||||
16 | (1) Under the defined contribution plan, an active
Tier | ||||||
17 | 1 employee of this System could elect to cease accruing | ||||||
18 | benefits in the defined benefit plan under this Article and | ||||||
19 | begin accruing benefits for future service in the defined | ||||||
20 | contribution plan. Service credit under the defined | ||||||
21 | contribution plan may be used for determining retirement | ||||||
22 | eligibility under the defined benefit plan. An active Tier | ||||||
23 | 1 employee who elects to cease accruing benefits in his or | ||||||
24 | her defined benefit plan shall be prohibited from | ||||||
25 | purchasing service credit on or after the date of his or | ||||||
26 | her election. A Tier 1 employee making the irrevocable |
| |||||||
| |||||||
1 | election provided under this Section shall not receive | ||||||
2 | interest accruals to his or her benefit under paragraph (A) | ||||||
3 | of subsection (a) of Section 16-133 on or after the date of | ||||||
4 | his or her election. | ||||||
5 | (2) Participants in the defined contribution plan
| ||||||
6 | shall pay employee contributions at the same rate as Tier 1 | ||||||
7 | employees in this System who do not participate in the | ||||||
8 | defined contribution plan. | ||||||
9 | (3) State contributions shall be paid into the
accounts | ||||||
10 | of all participants in the defined contribution plan at a | ||||||
11 | uniform rate, expressed as a percentage of salary and | ||||||
12 | determined for each year. This rate shall be no higher than | ||||||
13 | the employer's normal cost for Tier 1 employees in the | ||||||
14 | defined benefit plan for that year, as determined by the | ||||||
15 | System and expressed as a percentage of salary, and shall | ||||||
16 | be no lower than 0% of salary. The State shall adjust this | ||||||
17 | rate annually. | ||||||
18 | (4) The defined contribution plan shall require 5
years | ||||||
19 | of participation in the defined contribution plan before | ||||||
20 | vesting in State contributions. If the participant fails to | ||||||
21 | vest in them, the State contributions, and the earnings | ||||||
22 | thereon, shall be forfeited. | ||||||
23 | (5) The defined contribution plan may provide for
| ||||||
24 | participants in the plan to be eligible for the defined | ||||||
25 | disability benefits available to other participants under | ||||||
26 | this Article. If it does, the System shall reduce the |
| |||||||
| |||||||
1 | employee contributions credited to the member's defined | ||||||
2 | contribution plan account by an amount determined by the | ||||||
3 | System to cover the cost of offering such benefits. | ||||||
4 | (6) The defined contribution plan shall provide a
| ||||||
5 | variety of options for investments. These options shall | ||||||
6 | include investments in a fund created by the System and | ||||||
7 | managed in accordance with legal and fiduciary standards, | ||||||
8 | as well as investment options otherwise available. | ||||||
9 | (7) The defined contribution plan shall provide a
| ||||||
10 | variety of options for payouts to retirees and their | ||||||
11 | survivors. | ||||||
12 | (8) To the extent authorized under federal law and
as | ||||||
13 | authorized by the System, the plan shall allow former | ||||||
14 | participants in the plan to transfer or roll over employee | ||||||
15 | and vested State contributions, and the earnings thereon, | ||||||
16 | into other qualified retirement plans. | ||||||
17 | (9) The System shall reduce the employee
contributions | ||||||
18 | credited to the member's defined contribution plan account | ||||||
19 | by an amount determined by the System to cover the cost of | ||||||
20 | offering these benefits and any applicable administrative | ||||||
21 | fees. | ||||||
22 | (b) Only persons who are active Tier 1 employees of the | ||||||
23 | System on the effective date of this Section are eligible to | ||||||
24 | participate in the defined contribution plan. Participation in | ||||||
25 | the defined contribution plan shall be limited to the first 5% | ||||||
26 | of eligible persons who elect to participate. The election to |
| |||||||
| |||||||
1 | participate in the defined contribution plan is voluntary and | ||||||
2 | irrevocable. | ||||||
3 | (c) An eligible Tier 1 employee may irrevocably elect to | ||||||
4 | participate in the defined contribution plan by filing with the | ||||||
5 | System a written application to participate that is received by | ||||||
6 | the System prior to its determination that 5% of eligible | ||||||
7 | persons have elected to participate in the defined contribution | ||||||
8 | plan. | ||||||
9 | When the System first determines that 5% of eligible | ||||||
10 | persons have elected to participate in the defined contribution | ||||||
11 | plan, the System shall provide notice to previously eligible | ||||||
12 | employees that the plan is no longer available and shall cease | ||||||
13 | accepting applications to participate. | ||||||
14 | (d) The System shall make a good faith effort to contact | ||||||
15 | each active Tier 1 employee who is eligible to participate in | ||||||
16 | the defined contribution plan. The System shall mail | ||||||
17 | information describing the option to join the defined | ||||||
18 | contribution plan to each of these employees to his or her last | ||||||
19 | known address on file with the System. If the employee is not | ||||||
20 | responsive to other means of contact, it is sufficient for the | ||||||
21 | System to publish the details of the option on its website. | ||||||
22 | Upon request for further information describing the | ||||||
23 | option, the System shall provide employees with information | ||||||
24 | from the System before exercising the option to join the plan, | ||||||
25 | including information on the impact to their vested benefits or | ||||||
26 | non-vested service. The individual consultation shall include |
| |||||||
| |||||||
1 | projections of the member's defined benefits at retirement or | ||||||
2 | earlier termination of service and the value of the member's | ||||||
3 | account at retirement or earlier termination of service. The | ||||||
4 | System shall not provide advice or counseling with respect to | ||||||
5 | whether the employee should exercise the option. The System | ||||||
6 | shall inform Tier 1 employees who are eligible to participate | ||||||
7 | in the defined contribution plan that they may also wish to | ||||||
8 | obtain information and counsel relating to their option from | ||||||
9 | any other available source, including but not limited to labor | ||||||
10 | organizations, private counsel, and financial advisors. | ||||||
11 | (e) In no event shall the System, its staff, its authorized | ||||||
12 | representatives, or the Board be liable for any information | ||||||
13 | given to an employee under this Section. The System may | ||||||
14 | coordinate with the Illinois Department of Central Management | ||||||
15 | Services and other retirement systems administering a defined | ||||||
16 | contribution plan in accordance with this amendatory Act of the | ||||||
17 | 99th General Assembly to provide information concerning the | ||||||
18 | impact of the option set forth in this Section. | ||||||
19 | (f) Notwithstanding any other provision of this Section, no | ||||||
20 | person shall begin participating in the defined contribution | ||||||
21 | plan until it has attained qualified plan status and received | ||||||
22 | all necessary approvals from the U.S. Internal Revenue Service. | ||||||
23 | (g) The System shall report on its progress under this | ||||||
24 | Section, including the available details of the defined | ||||||
25 | contribution plan and the System's plans for informing eligible | ||||||
26 | Tier 1 employees about the plan, to the Governor and the |
| |||||||
| |||||||
1 | General Assembly on or before January 15, 2018. | ||||||
2 | (h) The intent of this amendatory Act of the 99th General | ||||||
3 | Assembly is to ensure that the State's normal cost of | ||||||
4 | participation in the defined contribution plan is similar, and | ||||||
5 | if possible equal, to the State's normal cost of participation | ||||||
6 | in the defined benefit plan, unless a lower State's normal cost | ||||||
7 | is necessary to ensure cost neutrality. | ||||||
8 | (i) If Section 16-122.9 is determined to be | ||||||
9 | unconstitutional or otherwise invalid by a final unappealable | ||||||
10 | decision of an Illinois court or a court of competent | ||||||
11 | jurisdiction, then this Section shall not take effect and is | ||||||
12 | repealed by operation of law.
| ||||||
13 | (40 ILCS 5/16-206.1 new) | ||||||
14 | Sec. 16-206.1. Defined contribution plan; termination. If | ||||||
15 | the defined contribution plan is terminated or becomes | ||||||
16 | inoperative pursuant to law, then each participant in the plan | ||||||
17 | shall automatically be deemed to have been a contributing Tier | ||||||
18 | 1 employee in the System's defined benefit plan during the time | ||||||
19 | in which he or she participated in the defined contribution | ||||||
20 | plan, and for that purpose the System shall be entitled to | ||||||
21 | recover the amounts in the participant's defined contribution | ||||||
22 | accounts.
| ||||||
23 | (40 ILCS 5/17-106.05 new) | ||||||
24 | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
|
| |||||||
| |||||||
1 | teacher under this Article who first became a member or
| ||||||
2 | participant before January 1, 2011 under any reciprocal
| ||||||
3 | retirement system or pension fund established under this Code
| ||||||
4 | other than a retirement system or pension fund established
| ||||||
5 | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
| ||||||
6 | the purposes of the election under Section 17-115.5, "Tier 1 | ||||||
7 | employee" does
not include a teacher under this Article who | ||||||
8 | would qualify as a
Tier 1 employee but who has made an | ||||||
9 | irrevocable election on or
before June 1, 2017 to retire from | ||||||
10 | service pursuant to the terms of a collective bargaining | ||||||
11 | agreement in effect on June 1,
2017, excluding any extension, | ||||||
12 | amendment, or renewal of that
agreement on or after that date, | ||||||
13 | and has notified the Fund of
that election.
| ||||||
14 | (40 ILCS 5/17-113.4 new) | ||||||
15 | Sec. 17-113.4. Salary. "Salary" means any income in any | ||||||
16 | form that qualifies as "average salary" or "annual rate of | ||||||
17 | salary" for purposes of paragraph (1) of subsection (c) of | ||||||
18 | Section 17-116 and "salary" for payroll deduction purposes | ||||||
19 | under Sections 17-130, 17-131, and 17-132. | ||||||
20 | Notwithstanding any other provision of this Section, | ||||||
21 | "salary" does not include any future increase in income that is
| ||||||
22 | offered by an employer for service as a Tier 1 employee under
| ||||||
23 | this Article pursuant to the condition set forth in subsection | ||||||
24 | (c) of
Section 17-115.5 and accepted under that condition by a | ||||||
25 | Tier 1 employee who has made
the election under paragraph (2) |
| |||||||
| |||||||
1 | of subsection (a) of Section
17-115.5.
| ||||||
2 | (40 ILCS 5/17-113.5 new) | ||||||
3 | Sec. 17-113.5. Future increase in income. "Future increase
| ||||||
4 | in income" means an increase in income in any form offered by
| ||||||
5 | an employer to a Tier 1 employee for service under this Article
| ||||||
6 | after June 30, 2018 that qualifies as "salary", as defined in
| ||||||
7 | Section 17-113.4, or would qualify as "salary" but for the fact
| ||||||
8 | that it was offered to and accepted by a Tier 1 employee under | ||||||
9 | the condition set forth in subsection (c) of
Section 17-115.5. | ||||||
10 | The term "future increase in income" does not
include an | ||||||
11 | increase in income in any form that is paid to a
Tier 1 | ||||||
12 | employee under an employment contract or a collective
| ||||||
13 | bargaining agreement that is in effect on the effective date of
| ||||||
14 | this Section, but does include an increase in income in any
| ||||||
15 | form pursuant to an extension, amendment, or renewal of any
| ||||||
16 | such employment contract or collective bargaining agreement on
| ||||||
17 | or after the effective date of this Section.
| ||||||
18 | (40 ILCS 5/17-115.5 new) | ||||||
19 | Sec. 17-115.5. Election by Tier 1 employees. | ||||||
20 | (a) Each active Tier 1 employee shall make an irrevocable | ||||||
21 | election either: | ||||||
22 | (1) to agree to delay his or her eligibility for | ||||||
23 | automatic annual increases in service retirement pension | ||||||
24 | as provided in Section 17-119.2 and to have the amount of |
| |||||||
| |||||||
1 | the automatic annual increases in his or her service | ||||||
2 | retirement pension that are otherwise provided for in this | ||||||
3 | Article calculated, instead, as provided in Section | ||||||
4 | 17-119.2; or | ||||||
5 | (2) to not agree to paragraph (1) of this subsection. | ||||||
6 | The election required under this subsection (a) shall be | ||||||
7 | made by each active Tier 1 employee no earlier than January 1, | ||||||
8 | 2018 and no later than March 31, 2018, except that: | ||||||
9 | (i) a person who becomes a Tier 1 employee under this | ||||||
10 | Article on or after January 1, 2018 must make the election | ||||||
11 | under this subsection (a) within 60 days after becoming a | ||||||
12 | Tier 1 employee; and | ||||||
13 | (ii) a person who returns to active service as a Tier 1 | ||||||
14 | employee under this Article on or after January 1, 2018 and | ||||||
15 | has not yet made an election under this Section must make | ||||||
16 | the election under this subsection (a) within 60 days after | ||||||
17 | returning to active service as a Tier 1 employee. | ||||||
18 | If a Tier 1 employee fails for any reason to make a | ||||||
19 | required election under this subsection within the time | ||||||
20 | specified, then the employee shall be deemed to have made the | ||||||
21 | election under paragraph (2) of this subsection. | ||||||
22 | (a-5) If this Section is enjoined or stayed by an Illinois | ||||||
23 | court or a court of competent jurisdiction pending the entry of | ||||||
24 | a final and unappealable decision, and this Section is | ||||||
25 | determined to be constitutional or otherwise valid by a final | ||||||
26 | unappealable decision of an Illinois court or a court of |
| |||||||
| |||||||
1 | competent jurisdiction, then the election procedure set forth | ||||||
2 | in subsection (a) of this Section shall commence on the 180th | ||||||
3 | calendar day after the date of the issuance of the final | ||||||
4 | unappealable decision and shall conclude at the end of the | ||||||
5 | 270th calendar day after that date. | ||||||
6 | (a-10) All elections under subsection (a) that are made or | ||||||
7 | deemed to be made before July 1, 2018 shall take effect on July | ||||||
8 | 1, 2018. Elections that are made or deemed to be made on or | ||||||
9 | after July 1, 2018 shall take effect on the first day of the | ||||||
10 | month following the month in which the election is made or | ||||||
11 | deemed to be made. | ||||||
12 | (b) As adequate and legal consideration provided under this | ||||||
13 | amendatory Act of the 99th General Assembly for making an | ||||||
14 | election under paragraph (1) of subsection (a) of this Section, | ||||||
15 | an employer shall be expressly and irrevocably prohibited from | ||||||
16 | offering any future increases in income to a Tier 1 employee | ||||||
17 | who has made an election under paragraph (1) of subsection (a) | ||||||
18 | of this Section on the condition of not constituting salary | ||||||
19 | under Section 17-113.4. | ||||||
20 | As adequate and legal consideration provided under this | ||||||
21 | amendatory Act of the 99th General Assembly for making an | ||||||
22 | election under paragraph (1) of subsection (a) of this Section, | ||||||
23 | each Tier 1 employee who has made an election under paragraph | ||||||
24 | (1) of subsection (a) of this Section shall receive a | ||||||
25 | consideration payment equal to 10% of the contributions made by | ||||||
26 | or on behalf of the employee under Section 17-130 before the |
| |||||||
| |||||||
1 | effective date of that election. The Fund shall timely make the | ||||||
2 | consideration payment to the Tier 1 employee. | ||||||
3 | (c) A Tier 1 employee who makes the election under | ||||||
4 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
5 | subject to paragraph (1) of subsection (a) of this Section. | ||||||
6 | However, any future increases in income offered by an employer | ||||||
7 | under this Article to a Tier 1 employee who has made the | ||||||
8 | election under paragraph (2) of subsection (a) of this Section | ||||||
9 | shall be offered by the employer expressly and irrevocably on | ||||||
10 | the condition of not constituting salary under Section | ||||||
11 | 17-113.4, and the employee may not accept any future increase | ||||||
12 | in income that is offered without this condition. | ||||||
13 | (d) The Fund shall make a good faith effort to contact each | ||||||
14 | Tier 1 employee subject to this Section. The Fund shall mail | ||||||
15 | information describing the required election to each Tier 1 | ||||||
16 | employee by United States Postal Service mail to his or her | ||||||
17 | last known address on file with the Fund. If the Tier 1 | ||||||
18 | employee is not responsive to other means of contact, it is | ||||||
19 | sufficient for the Fund to publish the details of any required | ||||||
20 | elections on its website or to publish those details in a | ||||||
21 | regularly published newsletter or other existing public forum. | ||||||
22 | Tier 1 employees who are subject to this Section shall be | ||||||
23 | provided with an election packet containing information | ||||||
24 | regarding their options, as well as the forms necessary to make | ||||||
25 | the required election. Upon request, the Fund shall offer Tier | ||||||
26 | 1 employees an opportunity to receive information from the Fund |
| |||||||
| |||||||
1 | before making the required election. The information may | ||||||
2 | consist of video materials, group presentations, individual | ||||||
3 | consultation with a member or authorized representative of the | ||||||
4 | Fund in person or by telephone or other electronic means, or | ||||||
5 | any combination of those methods. The Fund shall not provide | ||||||
6 | advice or counseling with respect to which election a Tier 1 | ||||||
7 | employee should make or specific to the legal or tax | ||||||
8 | circumstances of or consequences to the Tier 1 employee. | ||||||
9 | The Fund shall inform Tier 1 employees in the election | ||||||
10 | packet required under this subsection that the Tier 1 employee | ||||||
11 | may also wish to obtain information and counsel relating to the | ||||||
12 | election required under this Section from any other available | ||||||
13 | source, including, but not limited to, labor organizations and | ||||||
14 | private counsel. | ||||||
15 | In no event shall the Fund, its staff, or the Board be held | ||||||
16 | liable for any information given to a member regarding the | ||||||
17 | elections under this Section. The Fund shall coordinate with | ||||||
18 | the Illinois Department of Central Management Services and each | ||||||
19 | other retirement system administering an election in | ||||||
20 | accordance with this amendatory Act of the 99th General | ||||||
21 | Assembly to provide information concerning the impact of the | ||||||
22 | election set forth in this Section. | ||||||
23 | (e) Notwithstanding any other provision of law, an employer | ||||||
24 | under this Article is required to offer any future increases in | ||||||
25 | income expressly and irrevocably on the condition of not | ||||||
26 | constituting "salary" under Section 17-113.4 to any Tier 1 |
| |||||||
| |||||||
1 | employee who has made an election under paragraph (2) of | ||||||
2 | subsection (a) of this Section. A Tier 1 employee who has made | ||||||
3 | an election under paragraph (2) of subsection (a) of this | ||||||
4 | Section shall not accept any future increase in income that is | ||||||
5 | offered by an employer under this Article without the condition | ||||||
6 | set forth in this subsection. | ||||||
7 | For purposes of legislative intent, the condition set forth | ||||||
8 | in this subsection shall be construed in a manner that ensures | ||||||
9 | that the condition is not violated or circumvented through any | ||||||
10 | contrivance of any kind. | ||||||
11 | (f) A member's election under this Section is not a | ||||||
12 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
13 | of this Code. | ||||||
14 | (g) No provision of this Section shall be interpreted in a | ||||||
15 | way that would cause the Fund to cease to be a qualified plan | ||||||
16 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
17 | (h) If an election created by this amendatory Act in any | ||||||
18 | other Article of this Code or any change deriving from that | ||||||
19 | election is determined to be unconstitutional or otherwise | ||||||
20 | invalid by a final unappealable decision of an Illinois court | ||||||
21 | or a court of competent jurisdiction, the invalidity of that | ||||||
22 | provision shall not in any way affect the validity of this | ||||||
23 | Section or the changes deriving from the election required | ||||||
24 | under this Section.
| ||||||
25 | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
|
| |||||||
| |||||||
1 | Sec. 17-116. Service retirement pension.
| ||||||
2 | (a) Each teacher having 20 years of service upon attainment | ||||||
3 | of age 55,
or who thereafter attains age 55 shall be entitled | ||||||
4 | to a service retirement
pension upon or after attainment of age | ||||||
5 | 55; and each teacher in service on or
after July 1, 1971, with | ||||||
6 | 5 or more but less than 20 years of service shall be
entitled | ||||||
7 | to receive a service retirement pension upon or after | ||||||
8 | attainment of
age 62.
| ||||||
9 | (b) The service retirement pension
for a teacher who | ||||||
10 | retires on or after June 25, 1971, at age
60 or over, shall be | ||||||
11 | calculated as follows:
| ||||||
12 | (1) For creditable service earned before July 1, 1998 | ||||||
13 | that has not been
augmented under Section 17-119.1: 1.67% | ||||||
14 | for each of the first 10 years
of service; 1.90% for each | ||||||
15 | of the next 10 years of service; 2.10% for
each year of | ||||||
16 | service in excess of 20 but not exceeding 30; and 2.30% for
| ||||||
17 | each year of service in excess of 30, based upon average | ||||||
18 | salary as
herein defined.
| ||||||
19 | (2) For creditable service earned on or after July 1, | ||||||
20 | 1998 by a member
who has at least 30 years of creditable | ||||||
21 | service on July 1, 1998 and who does
not elect to augment | ||||||
22 | service under Section 17-119.1: 2.3% of average salary
for | ||||||
23 | each year of creditable service earned on or after July 1, | ||||||
24 | 1998.
| ||||||
25 | (3) For all other creditable service: 2.2% of average | ||||||
26 | salary
for each year of creditable service.
|
| |||||||
| |||||||
1 | (c) When computing such service retirement pensions, the
| ||||||
2 | following conditions shall apply:
| ||||||
3 | 1. Average salary shall consist of the average annual | ||||||
4 | rate of salary
for the 4 consecutive years of validated | ||||||
5 | service within the last 10 years
of service when such | ||||||
6 | average annual rate was highest. In the determination
of | ||||||
7 | average salary for retirement allowance purposes, for | ||||||
8 | members who
commenced employment after August 31, 1979, | ||||||
9 | that part of the salary for any
year shall be excluded | ||||||
10 | which exceeds the annual full-time salary rate for
the | ||||||
11 | preceding year by more than 20%. In the case of a member | ||||||
12 | who commenced
employment before August 31, 1979 and who | ||||||
13 | receives salary during any year
after September 1, 1983 | ||||||
14 | which exceeds the annual full time salary rate for
the | ||||||
15 | preceding year by more than 20%,
an Employer and other | ||||||
16 | employers of
eligible contributors as defined in Section | ||||||
17 | 17-106
shall pay to the Fund an amount equal to the present | ||||||
18 | value of the
additional service retirement pension | ||||||
19 | resulting from such excess salary.
The present value of the | ||||||
20 | additional service retirement pension shall be
computed by | ||||||
21 | the Board on the basis of actuarial tables adopted by the
| ||||||
22 | Board. If a member elects to receive a pension from this | ||||||
23 | Fund
provided by
Section 20-121, his salary under the State | ||||||
24 | Universities Retirement System
and the Teachers' | ||||||
25 | Retirement System of the State of Illinois shall be
| ||||||
26 | considered in determining such average salary. Amounts |
| |||||||
| |||||||
1 | paid after the
effective date of this amendatory Act of | ||||||
2 | 1991 for unused vacation time
earned after that effective | ||||||
3 | date shall not under any circumstances be
included in the | ||||||
4 | calculation of average salary or the annual rate of salary
| ||||||
5 | for the purposes of this Article.
| ||||||
6 | 2. Proportionate credit shall be given for validated | ||||||
7 | service of less
than one year.
| ||||||
8 | 3. For retirement at age 60 or over the pension shall | ||||||
9 | be payable at
the full rate.
| ||||||
10 | 4. For separation from service below age 60 to a | ||||||
11 | minimum age of 55,
the pension shall be discounted at the | ||||||
12 | rate of 1/2 of one per cent for
each month that the age of | ||||||
13 | the contributor is less than 60, but a
teacher may elect to | ||||||
14 | defer the effective date of pension in order to
eliminate | ||||||
15 | or reduce this discount. This discount shall not be | ||||||
16 | applicable
to any participant who has at least 34 years of | ||||||
17 | service or a
retirement pension of at least 74.6% of | ||||||
18 | average salary on the date the
retirement annuity begins.
| ||||||
19 | 5. No additional pension shall be granted for service | ||||||
20 | exceeding 45
years. Beginning June 26, 1971 no pension | ||||||
21 | shall exceed the greater of
$1,500 per month or 75% of | ||||||
22 | average salary as herein defined.
| ||||||
23 | 6. Service retirement pensions shall begin on the | ||||||
24 | effective date of
resignation, retirement, the day | ||||||
25 | following the close of the payroll
period for which service | ||||||
26 | credit was validated, or the time the person
resigning or |
| |||||||
| |||||||
1 | retiring attains age 55, or on a date elected by the
| ||||||
2 | teacher, whichever shall be latest; provided that, for a | ||||||
3 | person who first becomes a member after the effective date | ||||||
4 | of this amendatory Act of the 99th General Assembly, the | ||||||
5 | benefit shall not commence more than one year prior to the | ||||||
6 | date of the Fund's receipt of an application for the | ||||||
7 | benefit.
| ||||||
8 | 7. A member who is eligible to receive a retirement | ||||||
9 | pension of at least
74.6% of average salary and will attain | ||||||
10 | age 55 on or before December 31
during the year which | ||||||
11 | commences on July 1 shall be deemed to attain age 55 on
the | ||||||
12 | preceding June 1.
| ||||||
13 | 8. A member retiring after the effective date of this | ||||||
14 | amendatory Act
of 1998 shall receive a pension equal to 75% | ||||||
15 | of average salary if the
member is qualified to receive a | ||||||
16 | retirement pension equal to at least 74.6%
of average | ||||||
17 | salary under this Article or as proportional annuities | ||||||
18 | under
Article 20 of this Code.
| ||||||
19 | (d) Notwithstanding any other provision of this Section, | ||||||
20 | annual salary does not include any future increase in income | ||||||
21 | that is
offered for service to a Tier 1 employee under this | ||||||
22 | Article pursuant to the condition set forth in subsection (c) | ||||||
23 | of Section
17-115.5 and accepted under that condition by a Tier | ||||||
24 | 1 employee who has made the
election under paragraph (2) of | ||||||
25 | subsection (a) of Section
17-115.5. | ||||||
26 | Notwithstanding any other provision of this Section,
|
| |||||||
| |||||||
1 | annual salary does not include any consideration payment made | ||||||
2 | to a
Tier 1 employee. | ||||||
3 | (Source: P.A. 99-702, eff. 7-29-16.)
| ||||||
4 | (40 ILCS 5/17-119.2 new) | ||||||
5 | Sec. 17-119.2. Automatic annual increases in service | ||||||
6 | retirement pension for certain Tier 1 employees. | ||||||
7 | Notwithstanding any other provision of this Article, for a Tier | ||||||
8 | 1 employee who made the election under paragraph (1) of | ||||||
9 | subsection (a) of Section 17-115.5: | ||||||
10 | (1) The initial increase in service retirement pension | ||||||
11 | shall occur on the January 1 occurring either on or after | ||||||
12 | the attainment of age 67 or the fifth anniversary of the | ||||||
13 | pension start date, whichever is earlier. | ||||||
14 | (2) The amount of each automatic annual increase in | ||||||
15 | service retirement pension occurring on or after the | ||||||
16 | effective date of that election shall be calculated as a | ||||||
17 | percentage of the originally granted service retirement | ||||||
18 | pension, equal to 3% or one-half the annual unadjusted | ||||||
19 | percentage increase (but
not less than zero) in the | ||||||
20 | consumer price index-u for the
12 months ending with the | ||||||
21 | September preceding each November
1, whichever is less. If | ||||||
22 | the annual unadjusted percentage
change in the consumer | ||||||
23 | price index-u for the 12 months ending with the September | ||||||
24 | preceding each November 1 is zero
or there is a decrease, | ||||||
25 | then the annuity shall not be
increased. |
| |||||||
| |||||||
1 | For the purposes of this Section, "consumer price index-u"
| ||||||
2 | means the index published by the Bureau of Labor Statistics of
| ||||||
3 | the United States Department of Labor that measures the average
| ||||||
4 | change in prices of goods and services purchased by all urban
| ||||||
5 | consumers, United States city average, all items, 1982-84 =
| ||||||
6 | 100. The new amount resulting from each annual adjustment shall
| ||||||
7 | be determined by the Public Pension Division of the Department
| ||||||
8 | of Insurance and made available to the Board by November 1 of | ||||||
9 | each year.
| ||||||
10 | (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) | ||||||
11 | Sec. 17-129. Employer contributions; deficiency in Fund. | ||||||
12 | (a) If in any fiscal year of the Board of Education ending | ||||||
13 | prior to 1997 the
total amounts paid to the Fund from the Board | ||||||
14 | of Education (other than under
this subsection, and other than | ||||||
15 | amounts used for making or "picking up"
contributions on behalf | ||||||
16 | of teachers) and from the State do not equal the total
| ||||||
17 | contributions made by or on behalf of the teachers for such | ||||||
18 | year, or if the
total income of the Fund in any such fiscal | ||||||
19 | year of the Board of Education from
all sources is less than | ||||||
20 | the total such expenditures by the Fund for such year,
the | ||||||
21 | Board of Education shall, in the next succeeding year, in | ||||||
22 | addition to any
other payment to the Fund set apart and | ||||||
23 | appropriate from moneys from its tax
levy for educational | ||||||
24 | purposes, a sum sufficient to remove such deficiency or
| ||||||
25 | deficiencies, and promptly pay such sum into the Fund in order |
| |||||||
| |||||||
1 | to restore any
of the reserves of the Fund that may have been | ||||||
2 | so temporarily applied. Any
amounts received by the Fund after | ||||||
3 | December 4, 1997 from State appropriations, including under | ||||||
4 | Section
17-127, shall be a credit against and shall fully | ||||||
5 | satisfy any obligation that
may have arisen, or be claimed to | ||||||
6 | have arisen, under this subsection (a) as a
result of any | ||||||
7 | deficiency or deficiencies in the fiscal year of the Board of
| ||||||
8 | Education ending in calendar year 1997. | ||||||
9 | (b) (i) Notwithstanding any other provision of this | ||||||
10 | Section, and notwithstanding any prior certification by the | ||||||
11 | Board under subsection (c) for fiscal year 2011, the Board of | ||||||
12 | Education's total required contribution to the Fund for fiscal | ||||||
13 | year 2011 under this Section is $187,000,000. | ||||||
14 | (ii) Notwithstanding any other provision of this Section, | ||||||
15 | the Board of Education's total required contribution to the | ||||||
16 | Fund for fiscal year 2012 under this Section is $192,000,000. | ||||||
17 | (iii) Notwithstanding any other provision of this Section, | ||||||
18 | the Board of Education's total required contribution to the | ||||||
19 | Fund for fiscal year 2013 under this Section is $196,000,000. | ||||||
20 | (iv) For fiscal years 2014 through 2059, the minimum | ||||||
21 | contribution to the Fund to be made by the Board of Education | ||||||
22 | in each fiscal year shall be an amount determined by the Fund | ||||||
23 | to be sufficient to bring the total assets of the Fund up to | ||||||
24 | 90% of the total actuarial liabilities of the Fund by the end | ||||||
25 | of fiscal year 2059. In making these determinations, the | ||||||
26 | required Board of Education contribution shall be calculated |
| |||||||
| |||||||
1 | each year as a level percentage of the applicable employee | ||||||
2 | payrolls over the years remaining to and including fiscal year | ||||||
3 | 2059 and shall be determined under the projected unit credit | ||||||
4 | actuarial cost method. | ||||||
5 | (v) Beginning in fiscal year 2060, the minimum Board of | ||||||
6 | Education contribution for each fiscal year shall be the amount | ||||||
7 | needed to maintain the total assets of the Fund at 90% of the | ||||||
8 | total actuarial liabilities of the Fund. | ||||||
9 | (vi) Notwithstanding any other provision of this | ||||||
10 | subsection (b), for any fiscal year, the contribution to the | ||||||
11 | Fund from the Board of Education shall not be required to be in | ||||||
12 | excess of the amount calculated as needed to maintain the | ||||||
13 | assets (or cause the assets to be) at the 90% level by the end | ||||||
14 | of the fiscal year. | ||||||
15 | (vii) Any contribution by the State to or for the benefit | ||||||
16 | of the Fund, including, without limitation, as referred to | ||||||
17 | under Section 17-127, shall be a credit against any | ||||||
18 | contribution required to be made by the Board of Education | ||||||
19 | under this subsection (b). | ||||||
20 | (c) The Board shall determine the amount of Board of | ||||||
21 | Education
contributions required for each fiscal year on the | ||||||
22 | basis of the actuarial
tables and other assumptions adopted by | ||||||
23 | the Board and the recommendations of
the actuary, in order to | ||||||
24 | meet the minimum contribution requirements of
subsections (a) | ||||||
25 | and (b). Annually, on or before February 28, the Board shall
| ||||||
26 | certify to the Board of Education the amount of the required |
| |||||||
| |||||||
1 | Board of Education
contribution for the coming fiscal year. The | ||||||
2 | certification shall include a
copy of the actuarial | ||||||
3 | recommendations upon which it is based. | ||||||
4 | (d) On or before May 1, 2018, the Board shall recalculate | ||||||
5 | and
recertify to the Board of Education the amount of the | ||||||
6 | required Board of Education contribution to the Fund for State | ||||||
7 | fiscal year 2019, taking into account the effect on the Fund's | ||||||
8 | liabilities of the elections made under Section 17-115.5. | ||||||
9 | (Source: P.A. 96-889, eff. 4-14-10.)
| ||||||
10 | (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
| ||||||
11 | Sec. 17-130. Participants' contributions by payroll | ||||||
12 | deductions.
| ||||||
13 | (a) Except as provided in subsection (a-5), there There | ||||||
14 | shall be deducted from the salary of each teacher 7.50% of his | ||||||
15 | salary for service or disability retirement pension and
0.5% of | ||||||
16 | salary for the annual increase in base pension.
| ||||||
17 | In addition, there shall be deducted from the salary of | ||||||
18 | each teacher
1% of his salary for survivors' and children's | ||||||
19 | pensions.
| ||||||
20 | (a-5) Beginning on July 1, 2018 or the effective date of | ||||||
21 | the Tier 1 employee's election under paragraph (1) of Section | ||||||
22 | 17-115.5, whichever is later, in lieu of the contributions | ||||||
23 | otherwise required under subsection (a), each Tier 1 employee | ||||||
24 | who made the election under paragraph (1) of Section 17-115.5 | ||||||
25 | shall make contributions of 7.50% of salary for service or |
| |||||||
| |||||||
1 | disability retirement pension and 0.6% of salary for survivors' | ||||||
2 | and children's pensions. | ||||||
3 | (b) An Employer and any employer of eligible contributors | ||||||
4 | as defined in
Section 17-106 is authorized to make the | ||||||
5 | necessary deductions from the salaries
of its teachers. Such | ||||||
6 | amounts shall be included as a part of the Fund. An
Employer | ||||||
7 | and any employer of eligible contributors as defined in Section | ||||||
8 | 17-106
shall formulate such rules and regulations as may be | ||||||
9 | necessary to give effect
to the provisions of this Section.
| ||||||
10 | (c) All persons employed as teachers shall, by such | ||||||
11 | employment,
accept the provisions of this Article and of | ||||||
12 | Sections 34-83 to 34-85,
inclusive, of "The School Code", | ||||||
13 | approved March 18, 1961, as amended,
and thereupon become | ||||||
14 | contributors to the Fund in accordance with the
terms thereof. | ||||||
15 | The provisions of this Article and of those Sections
shall | ||||||
16 | become a part of the contract of employment.
| ||||||
17 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
18 | retires with
more than 34 years of creditable service, and | ||||||
19 | (iii) does not elect to qualify
for the augmented rate under | ||||||
20 | Section 17-119.1 shall be entitled, at the time of
retirement, | ||||||
21 | to receive a partial refund of contributions made under this
| ||||||
22 | Section for service occurring after the later of June 30, 1998 | ||||||
23 | or attainment of
34 years of creditable service, in an amount | ||||||
24 | equal to 1.00% of the salary upon
which those contributions | ||||||
25 | were based.
| ||||||
26 | (Source: P.A. 97-8, eff. 6-13-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| ||||||
2 | Sec. 18-131. Financing; employer contributions.
| ||||||
3 | (a) The State of Illinois shall make contributions to this | ||||||
4 | System by
appropriations of the amounts which, together with | ||||||
5 | the contributions of
participants, net earnings on | ||||||
6 | investments, and other income, will meet the
costs of | ||||||
7 | maintaining and administering this System on a 90% funded basis | ||||||
8 | in
accordance with actuarial recommendations.
| ||||||
9 | (b) The Board shall determine the amount of State | ||||||
10 | contributions
required for each fiscal year on the basis of the | ||||||
11 | actuarial tables and other
assumptions adopted by the Board and | ||||||
12 | the prescribed rate of interest, using
the formula in | ||||||
13 | subsection (c).
| ||||||
14 | (c) For State fiscal years 2018 through 2045, the minimum | ||||||
15 | contribution to the System to be made by the State for each | ||||||
16 | fiscal year shall be an amount determined by the System to be | ||||||
17 | sufficient to bring the total assets of the System up to 90% of | ||||||
18 | the total actuarial liabilities of the System by the end of | ||||||
19 | State fiscal year 2045. In making these determinations, the | ||||||
20 | required State contribution shall be calculated each year as a | ||||||
21 | level percentage of total payroll, including payroll that is | ||||||
22 | not deemed pensionable, over the years remaining to and | ||||||
23 | including fiscal year 2045 and shall be determined under the | ||||||
24 | projected unit credit actuarial cost method. | ||||||
25 | Beginning in State fiscal year 2018, any increase or |
| |||||||
| |||||||
1 | decrease in State contribution over the prior fiscal year due | ||||||
2 | exclusively to changes in actuarial or investment assumptions | ||||||
3 | adopted by the Board shall be included in the State | ||||||
4 | contribution to the System, as a percentage of the applicable | ||||||
5 | employee payroll, and shall be increased in equal annual | ||||||
6 | increments so that by the State fiscal year occurring 5 years | ||||||
7 | after the adoption of the actuarial or investment assumptions, | ||||||
8 | the State is contributing at the rate otherwise required under | ||||||
9 | this Section. | ||||||
10 | If Section 2-110.3, 15-132.9, 16-122.9, or 17-115.5 is | ||||||
11 | determined to be unconstitutional or
otherwise invalid by a | ||||||
12 | final unappealable decision of an
Illinois court or a court of | ||||||
13 | competent jurisdiction, then the
changes made to this Section | ||||||
14 | by this amendatory Act of the 99th
General Assembly shall not | ||||||
15 | take effect and are repealed by
operation of law. | ||||||
16 | For State fiscal years 2012 through 2017 2045 , the minimum | ||||||
17 | contribution
to the System to be made by the State for each | ||||||
18 | fiscal year shall be an amount
determined by the System to be | ||||||
19 | sufficient to bring the total assets of the
System up to 90% of | ||||||
20 | the total actuarial liabilities of the System by the end of
| ||||||
21 | State fiscal year 2045. In making these determinations, the | ||||||
22 | required State
contribution shall be calculated each year as a | ||||||
23 | level percentage of payroll
over the years remaining to and | ||||||
24 | including fiscal year 2045 and shall be
determined under the | ||||||
25 | projected unit credit actuarial cost method.
| ||||||
26 | For State fiscal years 1996 through 2005, the State |
| |||||||
| |||||||
1 | contribution to
the System, as a percentage of the applicable | ||||||
2 | employee payroll, shall be
increased in equal annual increments | ||||||
3 | so that by State fiscal year 2011, the
State is contributing at | ||||||
4 | the rate required under this Section.
| ||||||
5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State
contribution for State fiscal year 2006 is | ||||||
7 | $29,189,400.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State
contribution for State fiscal year 2007 is | ||||||
10 | $35,236,800.
| ||||||
11 | For each of State fiscal years 2008 through 2009, the State | ||||||
12 | contribution to
the System, as a percentage of the applicable | ||||||
13 | employee payroll, shall be
increased in equal annual increments | ||||||
14 | from the required State contribution for State fiscal year | ||||||
15 | 2007, so that by State fiscal year 2011, the
State is | ||||||
16 | contributing at the rate otherwise required under this Section.
| ||||||
17 | Notwithstanding any other provision of this Article, the | ||||||
18 | total required State contribution for State fiscal year 2010 is | ||||||
19 | $78,832,000 and shall be made from the proceeds of bonds sold | ||||||
20 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
21 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
22 | expenses determined by the System's share of total bond | ||||||
23 | proceeds, (ii) any amounts received from the General Revenue | ||||||
24 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
25 | proceeds due to the issuance of discounted bonds, if | ||||||
26 | applicable. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State contribution for State fiscal year 2011 is
| ||||||
3 | the amount recertified by the System on or before April 1, 2011 | ||||||
4 | pursuant to Section 18-140 and shall be made from the proceeds | ||||||
5 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
6 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
7 | bond sale
expenses determined by the System's share of total | ||||||
8 | bond
proceeds, (ii) any amounts received from the General | ||||||
9 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
10 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
11 | applicable. | ||||||
12 | Beginning in State fiscal year 2046, the minimum State | ||||||
13 | contribution for
each fiscal year shall be the amount needed to | ||||||
14 | maintain the total assets of
the System at 90% of the total | ||||||
15 | actuarial liabilities of the System.
| ||||||
16 | Amounts received by the System pursuant to Section 25 of | ||||||
17 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
18 | Finance Act in any fiscal year do not reduce and do not | ||||||
19 | constitute payment of any portion of the minimum State | ||||||
20 | contribution required under this Article in that fiscal year. | ||||||
21 | Such amounts shall not reduce, and shall not be included in the | ||||||
22 | calculation of, the required State contributions under this | ||||||
23 | Article in any future year until the System has reached a | ||||||
24 | funding ratio of at least 90%. A reference in this Article to | ||||||
25 | the "required State contribution" or any substantially similar | ||||||
26 | term does not include or apply to any amounts payable to the |
| |||||||
| |||||||
1 | System under Section 25 of the Budget Stabilization Act.
| ||||||
2 | Notwithstanding any other provision of this Section, the | ||||||
3 | required State
contribution for State fiscal year 2005 and for | ||||||
4 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
5 | under this Section and
certified under Section 18-140, shall | ||||||
6 | not exceed an amount equal to (i) the
amount of the required | ||||||
7 | State contribution that would have been calculated under
this | ||||||
8 | Section for that fiscal year if the System had not received any | ||||||
9 | payments
under subsection (d) of Section 7.2 of the General | ||||||
10 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
11 | total debt service payments for that fiscal
year on the bonds | ||||||
12 | issued in fiscal year 2003 for the purposes of that Section | ||||||
13 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
14 | the same as the System's portion of
the total moneys | ||||||
15 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
16 | Obligation Bond Act. In determining this maximum for State | ||||||
17 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
18 | in item (i) shall be increased, as a percentage of the | ||||||
19 | applicable employee payroll, in equal increments calculated | ||||||
20 | from the sum of the required State contribution for State | ||||||
21 | fiscal year 2007 plus the applicable portion of the State's | ||||||
22 | total debt service payments for fiscal year 2007 on the bonds | ||||||
23 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
24 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
25 | 2011, the
State is contributing at the rate otherwise required | ||||||
26 | under this Section.
|
| |||||||
| |||||||
1 | (d) For purposes of determining the required State | ||||||
2 | contribution to the System, the value of the System's assets | ||||||
3 | shall be equal to the actuarial value of the System's assets, | ||||||
4 | which shall be calculated as follows: | ||||||
5 | As of June 30, 2008, the actuarial value of the System's | ||||||
6 | assets shall be equal to the market value of the assets as of | ||||||
7 | that date. In determining the actuarial value of the System's | ||||||
8 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
9 | gains or losses from investment return incurred in a fiscal | ||||||
10 | year shall be recognized in equal annual amounts over the | ||||||
11 | 5-year period following that fiscal year. | ||||||
12 | (e) For purposes of determining the required State | ||||||
13 | contribution to the system for a particular year, the actuarial | ||||||
14 | value of assets shall be assumed to earn a rate of return equal | ||||||
15 | to the system's actuarially assumed rate of return. | ||||||
16 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
17 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
18 | 7-13-12.)
| ||||||
19 | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| ||||||
20 | Sec. 18-140. To certify required State contributions and | ||||||
21 | submit vouchers.
| ||||||
22 | (a) The Board shall certify to the Governor, on or before | ||||||
23 | November 15 of
each year until November 15, 2011, the amount of | ||||||
24 | the required State contribution to the System for the
following | ||||||
25 | fiscal year and shall specifically identify the System's |
| |||||||
| |||||||
1 | projected State normal cost for that fiscal year. The | ||||||
2 | certification shall include a copy of the actuarial
| ||||||
3 | recommendations upon which it is based and shall specifically | ||||||
4 | identify the System's projected State normal cost for that | ||||||
5 | fiscal year.
| ||||||
6 | On or before November 1 of each year, beginning November 1, | ||||||
7 | 2012, the Board shall submit to the State Actuary, the | ||||||
8 | Governor, and the General Assembly a proposed certification of | ||||||
9 | the amount of the required State contribution to the System for | ||||||
10 | the next fiscal year, along with all of the actuarial | ||||||
11 | assumptions, calculations, and data upon which that proposed | ||||||
12 | certification is based. On or before January 1 of each year | ||||||
13 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
14 | preliminary report concerning the proposed certification and | ||||||
15 | identifying, if necessary, recommended changes in actuarial | ||||||
16 | assumptions that the Board must consider before finalizing its | ||||||
17 | certification of the required State contributions. On or before | ||||||
18 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
19 | shall certify to the Governor and the General Assembly the | ||||||
20 | amount of the required State contribution for the next fiscal | ||||||
21 | year. The Board's certification must note any deviations from | ||||||
22 | the State Actuary's recommended changes, the reason or reasons | ||||||
23 | for not following the State Actuary's recommended changes, and | ||||||
24 | the fiscal impact of not following the State Actuary's | ||||||
25 | recommended changes on the required State contribution. | ||||||
26 | On or before May 1, 2004, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to
the Governor the amount of the required State | ||||||
2 | contribution to the System for
State fiscal year 2005, taking | ||||||
3 | into account the amounts appropriated to and
received by the | ||||||
4 | System under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act.
| ||||||
6 | On or before July 1, 2005, the Board shall recalculate and | ||||||
7 | recertify
to the Governor the amount of the required State
| ||||||
8 | contribution to the System for State fiscal year 2006, taking | ||||||
9 | into account the changes in required State contributions made | ||||||
10 | by this amendatory Act of the 94th General Assembly.
| ||||||
11 | On or before April 1, 2011, the Board shall recalculate and | ||||||
12 | recertify to the Governor the amount of the required State | ||||||
13 | contribution to the System for State fiscal year 2011, applying | ||||||
14 | the changes made by Public Act 96-889 to the System's assets | ||||||
15 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
16 | was approved on that date. | ||||||
17 | As soon as practical after the effective date of this | ||||||
18 | amendatory Act of the 99th General Assembly, the State Actuary | ||||||
19 | and the Board shall recalculate and recertify to the Governor | ||||||
20 | and the General Assembly the amount of the State contribution | ||||||
21 | to the System for State fiscal year 2017, taking into account | ||||||
22 | the changes in required State contributions made by this | ||||||
23 | amendatory Act of the 99th General Assembly. | ||||||
24 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
25 | possible after
the 15th day of each month the Board shall | ||||||
26 | submit vouchers for payment of State
contributions to the |
| |||||||
| |||||||
1 | System, in a total monthly amount of one-twelfth of the
| ||||||
2 | required annual State contribution certified under subsection | ||||||
3 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
4 | General Assembly through June 30, 2004, the Board shall not
| ||||||
5 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
6 | of the
fiscal year 2004 certified contribution amount | ||||||
7 | determined
under this Section after taking into consideration | ||||||
8 | the transfer to the
System under subsection (c) of Section | ||||||
9 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
10 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
11 | funds appropriated to the System for that fiscal year.
| ||||||
12 | If in any month the amount remaining unexpended from all | ||||||
13 | other
appropriations to the System for the applicable fiscal | ||||||
14 | year (including the
appropriations to the System under Section | ||||||
15 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
16 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
17 | amount lawfully vouchered under this Section, the difference | ||||||
18 | shall be paid
from the General Revenue Fund under the | ||||||
19 | continuing appropriation authority
provided in Section 1.1 of | ||||||
20 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
21 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
22 | 97-694, eff. 6-18-12.)
| ||||||
23 | (40 ILCS 5/2-165 rep.) | ||||||
24 | (40 ILCS 5/2-166 rep.) | ||||||
25 | (40 ILCS 5/15-200 rep.) |
| |||||||
| |||||||
1 | (40 ILCS 5/15-201 rep.) | ||||||
2 | (40 ILCS 5/16-205 rep.) | ||||||
3 | (40 ILCS 5/16-206 rep.) | ||||||
4 | Section 20. The Illinois Pension Code is amended by | ||||||
5 | repealing Sections 2-165, 2-166, 15-200, 15-201, 16-205, and | ||||||
6 | 16-206.
| ||||||
7 | Section 25. The State Pension Funds Continuing | ||||||
8 | Appropriation Act is amended by adding Section 1.9 as follows:
| ||||||
9 | (40 ILCS 15/1.9 new) | ||||||
10 | Sec. 1.9. Appropriation for consideration payment. There | ||||||
11 | is hereby appropriated from the General Revenue Fund to the | ||||||
12 | State Comptroller, on a continuing basis, all amounts necessary | ||||||
13 | for the payment of consideration payments under subsection (b) | ||||||
14 | of Sections 2-110.3, 15-132.9, and 16-122.9 of the Illinois | ||||||
15 | Pension Code, in the amounts certified to the State Comptroller | ||||||
16 | by the respective retirement system or pension fund.
| ||||||
17 | Section 30. The School Code is amended by changing Sections | ||||||
18 | 24-1, 24-8, and 34-18.53 as follows:
| ||||||
19 | (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
| ||||||
20 | Sec. 24-1.
Appointment-Salaries-Payment-School | ||||||
21 | month-School term.)
School boards shall appoint all teachers, | ||||||
22 | determine qualifications of
employment
and fix the amount of |
| |||||||
| |||||||
1 | their
salaries subject to any limitation set forth in this Act | ||||||
2 | and subject to any applicable restrictions in Section 16-122.9 | ||||||
3 | of the Illinois Pension Code . They shall pay
the wages of | ||||||
4 | teachers monthly, subject, however, to the provisions of
| ||||||
5 | Section 24-21. The school month shall be the same as the | ||||||
6 | calendar month
but by resolution the school board may adopt for | ||||||
7 | its use a month of 20
days, including holidays. The school term | ||||||
8 | shall consist of at least the
minimum number of pupil | ||||||
9 | attendance days required by Section 10-19, any
additional legal | ||||||
10 | school holidays, days of teachers' institutes, or
equivalent | ||||||
11 | professional educational experiences, and one or two days at
| ||||||
12 | the beginning of the school term when used as a teachers' | ||||||
13 | workshop.
| ||||||
14 | (Source: P.A. 80-249.)
| ||||||
15 | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| ||||||
16 | Sec. 24-8. Minimum salary. In fixing the salaries of | ||||||
17 | teachers, school boards shall pay those who
serve on a | ||||||
18 | full-time basis not less than a rate for the school year that
| ||||||
19 | is based upon training completed in a recognized institution of | ||||||
20 | higher
learning, as follows: for the school year beginning July | ||||||
21 | 1, 1980 and
thereafter, less than a bachelor's degree, $9,000; | ||||||
22 | 120 semester hours or
more and a bachelor's degree, $10,000; | ||||||
23 | 150 semester hours or more and a
master's degree, $11,000.
| ||||||
24 | Based upon previous public school
experience in this State | ||||||
25 | or any other State, territory, dependency or
possession of the |
| |||||||
| |||||||
1 | United States, or in schools operated by or under the
auspices | ||||||
2 | of the United States, teachers who serve on a full-time basis
| ||||||
3 | shall have their salaries increased to at least the following | ||||||
4 | amounts
above the starting salary for a teacher in such | ||||||
5 | district in the same
classification: with less than a | ||||||
6 | bachelor's degree, $750 after 5 years;
with 120 semester hours | ||||||
7 | or more and a bachelor's degree, $1,000 after 5
years and | ||||||
8 | $1,600 after 8 years; with 150 semester hours or more and a | ||||||
9 | master's
degree, $1,250 after 5 years, $2,000 after 8 years and | ||||||
10 | $2,750 after 13 years. However, any salary increase is subject | ||||||
11 | to any applicable restrictions in Section 16-122.9 of the | ||||||
12 | Illinois Pension Code.
| ||||||
13 | For the purpose of this Section a teacher's salary shall | ||||||
14 | include any amount
paid by the school district on behalf of the | ||||||
15 | teacher, as teacher contributions,
to the Teachers' Retirement | ||||||
16 | System of the State of Illinois.
| ||||||
17 | If a school board establishes a schedule for teachers' | ||||||
18 | salaries based
on education and experience, not inconsistent | ||||||
19 | with this Section, all certificated
nurses employed by that | ||||||
20 | board shall be paid in accordance with the provisions
of such | ||||||
21 | schedule (subject to any applicable restrictions in Section | ||||||
22 | 16-122.9 of the Illinois Pension Code) .
| ||||||
23 | For purposes of this Section, a teacher who submits a | ||||||
24 | certificate of
completion to the school office prior to the | ||||||
25 | first day of the school
term shall be considered to have the | ||||||
26 | degree stated in such certificate.
|
| |||||||
| |||||||
1 | (Source: P.A. 83-913.)
| ||||||
2 | (105 ILCS 5/34-18.53 new) | ||||||
3 | Sec. 34-18.53. Future increase in income. The Board of | ||||||
4 | Education must not pay, offer, or agree to pay any future | ||||||
5 | increase in income, as that term is defined in Section 17-113.5 | ||||||
6 | of the Illinois Pension Code, to any person in a manner that | ||||||
7 | violates Section 17-115.5 of the Illinois Pension Code.
| ||||||
8 | Section 35. The State Universities Civil Service Act is | ||||||
9 | amended by changing Section 36d as follows:
| ||||||
10 | (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
| ||||||
11 | Sec. 36d. Powers and duties of the Merit Board. The Merit | ||||||
12 | Board shall have the power and duty-
| ||||||
13 | (1) To approve a classification plan prepared under its | ||||||
14 | direction,
assigning to each class positions of | ||||||
15 | substantially similar duties. The
Merit Board shall have | ||||||
16 | power to delegate to its Director the duty of
assigning | ||||||
17 | each position in the classified service to the appropriate
| ||||||
18 | class in the classification plan approved by the Merit | ||||||
19 | Board.
| ||||||
20 | (2) To prescribe the duties of each class of positions | ||||||
21 | and the
qualifications required by employment in that | ||||||
22 | class.
| ||||||
23 | (3) To prescribe the range of compensation for each |
| |||||||
| |||||||
1 | class or to fix
a single rate of compensation for employees | ||||||
2 | in a particular class; and
to establish other conditions of | ||||||
3 | employment which an employer and
employee representatives | ||||||
4 | have agreed upon as fair and equitable. The
Merit Board | ||||||
5 | shall direct the payment of the "prevailing rate of wages"
| ||||||
6 | in those classifications in which, on January 1, 1952, any | ||||||
7 | employer is
paying such prevailing rate and in such other | ||||||
8 | classes as the Merit Board
may thereafter determine. | ||||||
9 | "Prevailing rate of wages" as used herein
shall be the | ||||||
10 | wages paid generally in the locality in which the work is
| ||||||
11 | being performed to employees engaged in work of a similar | ||||||
12 | character.
Subject to any applicable restrictions in | ||||||
13 | Section 15-132.9 or 16-122.9 of the Illinois Pension Code, | ||||||
14 | each Each employer covered by the University System shall | ||||||
15 | be authorized to
negotiate with representatives of | ||||||
16 | employees to determine appropriate
ranges or rates of | ||||||
17 | compensation or other conditions of employment and
may | ||||||
18 | recommend to the Merit Board for establishment the rates or | ||||||
19 | ranges
or other conditions of employment which the employer | ||||||
20 | and employee
representatives have agreed upon as fair and | ||||||
21 | equitable , but excluding the changes, the impact of | ||||||
22 | changes, and the implementation of the changes set forth in | ||||||
23 | this amendatory Act of the 99th General Assembly . Any rates | ||||||
24 | or
ranges established prior to January 1, 1952, and | ||||||
25 | hereafter, shall not be
changed except in accordance with | ||||||
26 | the procedures herein provided.
|
| |||||||
| |||||||
1 | (4) To recommend to the institutions and agencies | ||||||
2 | specified in
Section 36e standards for hours of work, | ||||||
3 | holidays, sick leave, overtime
compensation and vacation | ||||||
4 | for the purpose of improving conditions of
employment | ||||||
5 | covered therein and for the purpose of insuring conformity
| ||||||
6 | with the prevailing rate principal.
| ||||||
7 | (5) To prescribe standards of examination for each | ||||||
8 | class, the
examinations to be related to the duties of such | ||||||
9 | class. The Merit Board
shall have power to delegate to the | ||||||
10 | Director and his staff the
preparation, conduct and grading | ||||||
11 | of examinations. Examinations may be
written, oral, by | ||||||
12 | statement of training and experience, in the form of
tests | ||||||
13 | of knowledge, skill, capacity, intellect, aptitude; or, by | ||||||
14 | any
other method, which in the judgment of the Merit Board | ||||||
15 | is reasonable and
practical for any particular | ||||||
16 | classification. Different examining
procedures may be | ||||||
17 | determined for the examinations in different
| ||||||
18 | classifications but all examinations in the same | ||||||
19 | classification shall be
uniform.
| ||||||
20 | (6) To authorize the continuous recruitment of | ||||||
21 | personnel and to that
end, to delegate to the Director and | ||||||
22 | his staff the power and the duty to
conduct open and | ||||||
23 | continuous competitive examinations for all
| ||||||
24 | classifications of employment.
| ||||||
25 | (7) To cause to be established from the results of | ||||||
26 | examinations
registers for each class of positions in the |
| |||||||
| |||||||
1 | classified service of the
State Universities Civil Service | ||||||
2 | System, of the persons who shall
attain the minimum mark | ||||||
3 | fixed by the Merit Board for the examination;
and such | ||||||
4 | persons shall take rank upon the registers as candidates in | ||||||
5 | the
order of their relative excellence as determined by | ||||||
6 | examination, without
reference to priority of time of | ||||||
7 | examination.
| ||||||
8 | (8) To provide by its rules for promotions in the | ||||||
9 | classified
service. Vacancies shall be filled by promotion | ||||||
10 | whenever practicable.
For the purpose of this paragraph, an | ||||||
11 | advancement in class shall
constitute a promotion.
| ||||||
12 | (9) To set a probationary period of employment of no | ||||||
13 | less than 6 months
and no longer than 12 months for each | ||||||
14 | class of positions in the classification
plan, the length | ||||||
15 | of the probationary period for each class to be determined
| ||||||
16 | by the Director.
| ||||||
17 | (10) To provide by its rules for employment at regular | ||||||
18 | rates of
compensation of persons with physical | ||||||
19 | disabilities in positions in which the
disability does not | ||||||
20 | prevent the individual from furnishing satisfactory
| ||||||
21 | service.
| ||||||
22 | (11) To make and publish rules, to carry out the | ||||||
23 | purpose of the
State Universities Civil Service System and | ||||||
24 | for examination, appointments,
transfers and removals and | ||||||
25 | for maintaining and keeping records of the
efficiency of | ||||||
26 | officers and employees and groups of officers and
employees |
| |||||||
| |||||||
1 | in accordance with the provisions of Sections 36b to 36q,
| ||||||
2 | inclusive, and said Merit Board may from time to time make | ||||||
3 | changes in
such rules.
| ||||||
4 | (12) To appoint a Director and such assistants and | ||||||
5 | other clerical
and technical help as may be necessary | ||||||
6 | efficiently to administer
Sections 36b to 36q, inclusive. | ||||||
7 | To authorize the Director to appoint an
assistant resident | ||||||
8 | at the place of employment of each employer specified
in | ||||||
9 | Section 36e and this assistant may be authorized to give | ||||||
10 | examinations
and to certify names from the regional | ||||||
11 | registers provided in Section
36k.
| ||||||
12 | (13) To submit to the Governor of this state on or | ||||||
13 | before November 1
of each year prior to the regular session | ||||||
14 | of the General Assembly a
report of the University System's | ||||||
15 | business and an estimate of the amount
of appropriation | ||||||
16 | from state funds required for the purpose of
administering | ||||||
17 | the University System.
| ||||||
18 | (Source: P.A. 99-143, eff. 7-27-15.)
| ||||||
19 | Section 40. The University of Illinois Act is amended by | ||||||
20 | adding Section 100 as follows:
| ||||||
21 | (110 ILCS 305/100 new) | ||||||
22 | Sec. 100. Future increases in income. The University of | ||||||
23 | Illinois must not pay, offer, or agree to pay any future | ||||||
24 | increase in income, as that term is defined in Section 15-112.1 |
| |||||||
| |||||||
1 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
2 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
3 | Illinois Pension Code.
| ||||||
4 | Section 45. The Southern Illinois University Management | ||||||
5 | Act is amended by adding Section 85 as follows:
| ||||||
6 | (110 ILCS 520/85 new) | ||||||
7 | Sec. 85. Future increases in income. Southern Illinois | ||||||
8 | University must not pay, offer, or agree to pay any future | ||||||
9 | increase in income, as that term is defined in Section 15-112.1 | ||||||
10 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
11 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
12 | Illinois Pension Code.
| ||||||
13 | Section 50. The Chicago State University Law is amended by | ||||||
14 | adding Section 5-195 as follows:
| ||||||
15 | (110 ILCS 660/5-195 new) | ||||||
16 | Sec. 5-195. Future increases in income. Chicago State | ||||||
17 | University must not pay, offer, or agree to pay any future | ||||||
18 | increase in income, as that term is defined in Section 15-112.1 | ||||||
19 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
20 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
21 | Illinois Pension Code.
|
| |||||||
| |||||||
1 | Section 55. The Eastern Illinois University Law is amended | ||||||
2 | by adding Section 10-195 as follows:
| ||||||
3 | (110 ILCS 665/10-195 new) | ||||||
4 | Sec. 10-195. Future increases in income. Eastern Illinois | ||||||
5 | University must not pay, offer, or agree to pay any future | ||||||
6 | increase in income, as that term is defined in Section 15-112.1 | ||||||
7 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
8 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
9 | Illinois Pension Code.
| ||||||
10 | Section 60. The Governors State University Law is amended | ||||||
11 | by adding Section 15-195 as follows:
| ||||||
12 | (110 ILCS 670/15-195 new) | ||||||
13 | Sec. 15-195. Future increases in income. Governors State | ||||||
14 | University must not pay, offer, or agree to pay any future | ||||||
15 | increase in income, as that term is defined in Section 15-112.1 | ||||||
16 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
17 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
18 | Illinois Pension Code.
| ||||||
19 | Section 65. The Illinois State University Law is amended by | ||||||
20 | adding Section 20-200 as follows:
| ||||||
21 | (110 ILCS 675/20-200 new) |
| |||||||
| |||||||
1 | Sec. 20-200. Future increases in income. Illinois State | ||||||
2 | University must not pay, offer, or agree to pay any future | ||||||
3 | increase in income, as that term is defined in Section 15-112.1 | ||||||
4 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
5 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
6 | Illinois Pension Code.
| ||||||
7 | Section 70. The Northeastern Illinois University Law is | ||||||
8 | amended by adding Section 25-195 as follows:
| ||||||
9 | (110 ILCS 680/25-195 new) | ||||||
10 | Sec. 25-195. Future increases in income. Northeastern | ||||||
11 | Illinois University must not pay, offer, or agree to pay any | ||||||
12 | future increase in income, as that term is defined in Section | ||||||
13 | 15-112.1 or 16-121.1 of the Illinois Pension Code, to any | ||||||
14 | person in a manner that violates Section 15-132.9 or 16-122.9 | ||||||
15 | of the Illinois Pension Code.
| ||||||
16 | Section 75. The Northern Illinois University Law is amended | ||||||
17 | by adding Section 30-205 as follows:
| ||||||
18 | (110 ILCS 685/30-205 new) | ||||||
19 | Sec. 30-205. Future increases in income. Northern Illinois | ||||||
20 | University must not pay, offer, or agree to pay any future | ||||||
21 | increase in income, as that term is defined in Section 15-112.1 | ||||||
22 | or 16-121.1 of the Illinois Pension Code, to any person in a |
| |||||||
| |||||||
1 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
2 | Illinois Pension Code.
| ||||||
3 | Section 80. The Western Illinois University Law is amended | ||||||
4 | by adding Section 35-200 as follows:
| ||||||
5 | (110 ILCS 690/35-200 new) | ||||||
6 | Sec. 35-200. Future increases in income. Western Illinois | ||||||
7 | University must not pay, offer, or agree to pay any future | ||||||
8 | increase in income, as that term is defined in Section 15-112.1 | ||||||
9 | or 16-121.1 of the Illinois Pension Code, to any person in a | ||||||
10 | manner that violates Section 15-132.9 or 16-122.9 of the | ||||||
11 | Illinois Pension Code.
| ||||||
12 | Section 85. The Public Community College Act is amended by | ||||||
13 | changing Sections 3-26 and 3-42 as follows:
| ||||||
14 | (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
| ||||||
15 | Sec. 3-26.
(a) To make appointments and fix the salaries of | ||||||
16 | a
chief administrative officer, who shall be the executive
| ||||||
17 | officer of the board, other administrative personnel , and all | ||||||
18 | teachers , but subject to any applicable restrictions in Section | ||||||
19 | 15-132.9 or 16-122.9 of the Illinois Pension Code .
In making | ||||||
20 | these appointments and fixing the salaries, the board may
make | ||||||
21 | no discrimination on account of sex, race, creed, color or | ||||||
22 | national origin.
|
| |||||||
| |||||||
1 | (b) Upon the written request of an employee, to
withhold | ||||||
2 | from the compensation of that employee the membership
dues of | ||||||
3 | such employee
payable to any specified labor organization
as | ||||||
4 | defined in the Illinois Educational Labor Relations Act. Under | ||||||
5 | such
arrangement, an amount shall be withheld for each regular | ||||||
6 | payroll period
which is equal to the prorata share of the | ||||||
7 | annual membership dues plus
any payments or contributions and | ||||||
8 | the
board shall pay such withholding to the specified labor | ||||||
9 | organization
within 10 working days from the time of the | ||||||
10 | withholding.
| ||||||
11 | (Source: P.A. 83-1014.)
| ||||||
12 | (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
| ||||||
13 | Sec. 3-42.
To employ such personnel as may be needed, to | ||||||
14 | establish policies
governing their employment and dismissal, | ||||||
15 | and to fix the amount of their
compensation , subject to any | ||||||
16 | applicable restrictions in Section 15-132.9 or 16-122.9 of the | ||||||
17 | Illinois Pension Code . In the employment, establishment of | ||||||
18 | policies and fixing of
compensation the board may make no | ||||||
19 | discrimination on account of sex, race,
creed, color or | ||||||
20 | national origin.
| ||||||
21 | Residence within any community college district or outside | ||||||
22 | any community
college district shall not be considered:
| ||||||
23 | (a) in determining whether to retain or not retain any | ||||||
24 | employee of a community
college employed prior to July 1, | ||||||
25 | 1977 or prior to the adoption by the community
college |
| |||||||
| |||||||
1 | board of a resolution making residency within the community | ||||||
2 | college
district of some or all employees a condition of | ||||||
3 | employment, whichever is later;
| ||||||
4 | (b) in assigning, promoting or transferring any | ||||||
5 | employee of a community
college to an office or position | ||||||
6 | employed prior to July 1, 1977 or prior
to the adoption by | ||||||
7 | the community college board of a resolution making | ||||||
8 | residency
within the community college district of some or | ||||||
9 | all employees a condition
of employment, whichever is | ||||||
10 | later; or
| ||||||
11 | (c) in determining the salary or other compensation of | ||||||
12 | any employee of
a community college.
| ||||||
13 | (Source: P.A. 80-248.)
| ||||||
14 | Section 90. The Illinois Educational Labor Relations Act is | ||||||
15 | amended by changing Sections 4, 14, and 17 and by adding | ||||||
16 | Section 10.6 as follows:
| ||||||
17 | (115 ILCS 5/4) (from Ch. 48, par. 1704)
| ||||||
18 | Sec. 4. Employer rights. Employers shall not be required to | ||||||
19 | bargain over matters of inherent
managerial policy, which shall | ||||||
20 | include such areas of discretion or policy
as the functions of | ||||||
21 | the employer, standards of services, its overall
budget, the | ||||||
22 | organizational structure and selection of new employees and
| ||||||
23 | direction of employees. Employers, however, shall be required | ||||||
24 | to bargain
collectively with regard to policy matters directly |
| |||||||
| |||||||
1 | affecting wages (but subject to any applicable restrictions in | ||||||
2 | Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois Pension | ||||||
3 | Code) , hours
and terms and conditions of employment as well as | ||||||
4 | the impact thereon upon
request by employee representatives , | ||||||
5 | but excluding the changes, the impact of changes, and the | ||||||
6 | implementation of the changes set forth in this amendatory Act | ||||||
7 | of the 99th General Assembly . To preserve the rights of | ||||||
8 | employers
and exclusive representatives which have established | ||||||
9 | collective bargaining
relationships or negotiated collective | ||||||
10 | bargaining agreements prior to the
effective date of this Act, | ||||||
11 | employers shall be required to bargain
collectively with regard | ||||||
12 | to any matter concerning wages (but subject to any applicable | ||||||
13 | restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the | ||||||
14 | Illinois Pension Code) , hours or
conditions of employment about | ||||||
15 | which they have bargained for and agreed to
in a collective | ||||||
16 | bargaining agreement prior to the effective date of this Act , | ||||||
17 | but excluding the changes, the impact of changes, and the | ||||||
18 | implementation of the changes set forth in this amendatory Act | ||||||
19 | of the 99th General Assembly .
| ||||||
20 | (Source: P.A. 83-1014.)
| ||||||
21 | (115 ILCS 5/10.6 new) | ||||||
22 | Sec. 10.6. No collective bargaining or interest | ||||||
23 | arbitration regarding certain changes to the Illinois Pension | ||||||
24 | Code. | ||||||
25 | (a) Notwithstanding any other provision of this Act, |
| |||||||
| |||||||
1 | employers shall not be required to bargain over matters | ||||||
2 | affected by the changes, the impact of the changes, and the | ||||||
3 | implementation of the changes to Article 15, 16, or 17 of the | ||||||
4 | Illinois Pension Code made by this amendatory Act of the 99th | ||||||
5 | General Assembly, which are deemed to be prohibited subjects of | ||||||
6 | bargaining. Notwithstanding any provision of this Act, the | ||||||
7 | changes, impact of the changes, or implementation of the | ||||||
8 | changes to Article 15, 16, or 17 of the Illinois Pension Code | ||||||
9 | made by this amendatory Act of the 99th General Assembly shall | ||||||
10 | not be subject to interest arbitration or any award issued | ||||||
11 | pursuant to interest arbitration. The provisions of this | ||||||
12 | Section shall not apply to an employment contract or collective | ||||||
13 | bargaining agreement that is in effect on the effective date of | ||||||
14 | this amendatory Act of the 99th General Assembly. However, any | ||||||
15 | such contract or agreement that is modified, amended, renewed, | ||||||
16 | or superseded after the effective date of this amendatory Act | ||||||
17 | of the 99th General Assembly shall be subject to the provisions | ||||||
18 | of this Section. The provisions of this Section shall not apply | ||||||
19 | to the ability of any employer and employee representative to | ||||||
20 | bargain collectively with regard to the pick up of employee | ||||||
21 | contributions pursuant to Section 15-157.1, 16-152.1, | ||||||
22 | 17-130.1, or 17-130.2 of the Illinois Pension Code. | ||||||
23 | (b) Nothing in this Section shall be construed as otherwise | ||||||
24 | limiting any of the obligations and requirements applicable to | ||||||
25 | employers under any of the provisions of this Act, including, | ||||||
26 | but not limited to, the requirement to bargain collectively |
| |||||||
| |||||||
1 | with regard to policy matters directly affecting wages, hours, | ||||||
2 | and terms and conditions of employment as well as the impact | ||||||
3 | thereon upon request by employee representatives, except for | ||||||
4 | the matters set forth in subsection (a) of this Section that | ||||||
5 | are deemed prohibited subjects of bargaining. Nothing in this | ||||||
6 | Section shall be construed as otherwise limiting any of the | ||||||
7 | rights of employees or employee representatives under the | ||||||
8 | provisions of this Act, except for the matters set forth in | ||||||
9 | subsection (a) of this Section that are deemed prohibited | ||||||
10 | subjects of bargaining. | ||||||
11 | (c) In case of any conflict between this Section and any | ||||||
12 | other provisions of this Act or any other law, the provisions | ||||||
13 | of this Section shall control.
| ||||||
14 | (115 ILCS 5/14) (from Ch. 48, par. 1714)
| ||||||
15 | Sec. 14. Unfair labor practices.
| ||||||
16 | (a) Educational employers, their agents
or representatives | ||||||
17 | are prohibited from:
| ||||||
18 | (1) Interfering, restraining or coercing employees in | ||||||
19 | the exercise of
the rights guaranteed under this Act.
| ||||||
20 | (2) Dominating or interfering with the formation, | ||||||
21 | existence or
administration of any employee organization.
| ||||||
22 | (3) Discriminating in regard to hire or tenure of | ||||||
23 | employment or any term
or condition of employment to | ||||||
24 | encourage or discourage membership in any
employee | ||||||
25 | organization.
|
| |||||||
| |||||||
1 | (4) Discharging or otherwise discriminating against an | ||||||
2 | employee because
he or she has signed or filed an | ||||||
3 | affidavit, authorization card, petition or
complaint or | ||||||
4 | given any information or testimony under this Act.
| ||||||
5 | (5) Subject to and except as provided in Section 10.6, | ||||||
6 | refusing Refusing to bargain collectively in good faith | ||||||
7 | with an employee
representative which is the exclusive | ||||||
8 | representative of employees in an
appropriate unit, | ||||||
9 | including but not limited to the discussing of grievances
| ||||||
10 | with the exclusive representative; provided, however, that | ||||||
11 | if an alleged
unfair labor practice involves | ||||||
12 | interpretation or application of the terms
of a collective | ||||||
13 | bargaining agreement and said agreement contains a
| ||||||
14 | grievance and arbitration procedure, the Board may defer | ||||||
15 | the resolution of
such dispute to the grievance and | ||||||
16 | arbitration procedure contained in said
agreement. | ||||||
17 | However, no actions of the employer taken to implement or | ||||||
18 | otherwise comply with the provisions of subsection (a) of | ||||||
19 | Section 10.6 shall constitute or give rise to an unfair | ||||||
20 | labor practice under this Act.
| ||||||
21 | (6) Refusing to reduce a collective bargaining | ||||||
22 | agreement to writing and
signing such agreement.
| ||||||
23 | (7) Violating any of the rules and regulations | ||||||
24 | promulgated by the Board
regulating the conduct of | ||||||
25 | representation elections.
| ||||||
26 | (8) Refusing to comply with the provisions of a binding |
| |||||||
| |||||||
1 | arbitration award.
| ||||||
2 | (9) Expending or causing the expenditure of public | ||||||
3 | funds to any
external agent, individual, firm, agency, | ||||||
4 | partnership or association in any
attempt to influence the | ||||||
5 | outcome of representational elections held
pursuant to | ||||||
6 | paragraph (c) of Section 7 of this Act; provided, that | ||||||
7 | nothing
in this subsection shall be construed to limit an | ||||||
8 | employer's right to be
represented on any matter pertaining | ||||||
9 | to unit determinations, unfair labor
practice charges or | ||||||
10 | pre-election conferences in any formal or informal
| ||||||
11 | proceeding before the Board, or to seek or obtain advice | ||||||
12 | from legal counsel.
Nothing in this paragraph shall be | ||||||
13 | construed to prohibit an employer from
expending or causing | ||||||
14 | the expenditure of public funds on, or seeking or
obtaining | ||||||
15 | services or advice from, any organization, group or | ||||||
16 | association
established by, and including educational or | ||||||
17 | public employers, whether or
not covered by this Act, the | ||||||
18 | Illinois Public Labor Relations Act or the
public | ||||||
19 | employment labor relations law of any other state or the | ||||||
20 | federal
government, provided that such services or advice | ||||||
21 | are generally available
to the membership of the | ||||||
22 | organization, group, or association, and are not
offered | ||||||
23 | solely in an attempt to influence the outcome of a | ||||||
24 | particular
representational election.
| ||||||
25 | (b) Employee organizations, their agents or | ||||||
26 | representatives or educational
employees are prohibited from:
|
| |||||||
| |||||||
1 | (1) Restraining or coercing employees in the exercise | ||||||
2 | of the rights
guaranteed under this Act, provided that a | ||||||
3 | labor organization or its
agents shall commit an unfair | ||||||
4 | labor practice under this paragraph in duty
of fair | ||||||
5 | representation cases only by intentional misconduct in | ||||||
6 | representing
employees under this Act.
| ||||||
7 | (2) Restraining or coercing an educational employer in | ||||||
8 | the selection of
his representative for the purposes of | ||||||
9 | collective bargaining or the adjustment
of grievances.
| ||||||
10 | (3) Refusing to bargain collectively in good faith with | ||||||
11 | an educational
employer, if they have been designated in | ||||||
12 | accordance with the provisions
of this Act as the exclusive | ||||||
13 | representative of employees in an appropriate
unit.
| ||||||
14 | (4) Violating any of the rules and regulations | ||||||
15 | promulgated by the Board
regulating the conduct of | ||||||
16 | representation elections.
| ||||||
17 | (5) Refusing to reduce a collective bargaining | ||||||
18 | agreement to writing and
signing such agreement.
| ||||||
19 | (6) Refusing to comply with the provisions of a binding | ||||||
20 | arbitration award.
| ||||||
21 | (c) The expressing of any views, argument, opinion or the
| ||||||
22 | dissemination thereof, whether in written, printed, graphic or | ||||||
23 | visual form,
shall not constitute or be evidence of an unfair | ||||||
24 | labor practice under any
of the provisions of this Act, if such | ||||||
25 | expression contains no threat of
reprisal or force or promise | ||||||
26 | of benefit.
|
| |||||||
| |||||||
1 | (d) The actions of a Financial Oversight Panel created | ||||||
2 | pursuant to Section
1A-8
of the School Code due to a district | ||||||
3 | violating a financial plan shall not
constitute or be evidence | ||||||
4 | of an unfair labor practice under any of the
provisions of this | ||||||
5 | Act. Such actions include, but are not limited to,
reviewing, | ||||||
6 | approving, or rejecting a school district budget or a | ||||||
7 | collective
bargaining agreement.
| ||||||
8 | (Source: P.A. 89-572, eff. 7-30-96.)
| ||||||
9 | (115 ILCS 5/17) (from Ch. 48, par. 1717)
| ||||||
10 | Sec. 17. Effect on other laws. In case of any conflict | ||||||
11 | between the
provisions of this Act and any other law (other | ||||||
12 | than Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois | ||||||
13 | Pension Code) , executive order or administrative
regulation, | ||||||
14 | the provisions of this Act shall prevail and control.
The | ||||||
15 | provisions of this Act are subject to any applicable | ||||||
16 | restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the | ||||||
17 | Illinois Pension Code, as well as the changes, impact of | ||||||
18 | changes, and implementation of changes set forth in this | ||||||
19 | amendatory Act of the 99th General Assembly. Nothing in this | ||||||
20 | Act shall be construed to replace or diminish the rights
of | ||||||
21 | employees established by Section 36d of "An Act to create the | ||||||
22 | State Universities
Civil Service System", approved May 11, | ||||||
23 | 1905, as amended or modified.
| ||||||
24 | (Source: P.A. 83-1014.)
|
| |||||||
| |||||||
1 | Section 900. The State Mandates Act is amended by adding | ||||||
2 | Section 8.40 as follows:
| ||||||
3 | (30 ILCS 805/8.40 new) | ||||||
4 | Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
5 | of this Act, no reimbursement by the State is required for the | ||||||
6 | implementation of any mandate created by this amendatory Act of | ||||||
7 | the 99th General Assembly.
| ||||||
8 | Section 970. Severability. Except as otherwise provided in | ||||||
9 | this Act, the provisions of this Act are severable under | ||||||
10 | Section 1.31 of the Statute on Statutes.
| ||||||
11 | Section 999. Effective date. This Act takes effect upon | ||||||
12 | becoming law.".
|