Bill Amendment: IL SB0777 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PEN CD-SURS-ADMINISTRATIVE

Status: 2016-05-31 - Public Act . . . . . . . . . 99-0506 [SB0777 Detail]

Download: Illinois-2015-SB0777-House_Amendment_003.html

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Rep. Elaine Nekritz

Filed: 5/25/2015

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AMENDMENT TO SENATE BILL 777
AMENDMENT NO. ______. Amend Senate Bill 777 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 15-112, 15-154, 15-157, 15-168, 16-155, and
16-169.1 and by adding Sections 2-139.1, 14-135.11, 15-126.2,
and 16-181.4 as follows:
(40 ILCS 5/2-139.1 new)
Sec. 2-139.1. To request information. To request from any
member, annuitant, beneficiary, or employer such information
as is necessary for the proper administration of the System.
(40 ILCS 5/14-135.11 new)
Sec. 14-135.11. To request information. To request from any
member, annuitant, beneficiary, or employer such information
as is necessary for the proper administration of the System.

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(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings":
(a) This subsection (a) applies only to a Tier 1 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings during the 48
consecutive calendar month period ending with the last day of
final termination of employment or the 4 consecutive academic
years of service in which the employee's earnings were the
highest, whichever is greater. For any other employee, the
average annual earnings during the 4 consecutive academic years
of service in which his or her earnings were the highest. For
an employee with less than 48 months or 4 consecutive academic
years of service, the average earnings during his or her entire
period of service. The earnings of an employee with more than
36 months of service under item (a) of Section 15-113.1 prior
to the date of becoming a participant are, for such period,
considered equal to the average earnings during the last 36
months of such service.
(b) This subsection (b) applies to a Tier 2 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of

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each academic year, the average annual earnings obtained by
dividing by 8 the total earnings of the employee during the 96
consecutive months in which the total earnings were the highest
within the last 120 months prior to termination.
For any other employee, the average annual earnings during
the 8 consecutive academic years within the 10 years prior to
termination in which the employee's earnings were the highest.
For an employee with less than 96 consecutive months or 8
consecutive academic years of service, whichever is necessary,
the average earnings during his or her entire period of
service.
(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after the
effective date of this amendatory Act of 1997 with at least 20
years of service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate of
earnings received by the participant on his or her last day as
a firefighter or police officer under this Article, if that is

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greater than the final rate of earnings as calculated under the
other provisions of this Section.
(f) If a Tier 1 member is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year, and
(2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this
Section.
(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year
by more than 20 percent shall be excluded; in the event that an
employee has more than one employer this limitation shall be
calculated separately for the earnings with each employer. In
making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or
overtime or to contracts for summer employment.
(h) The following are not considered as earnings in
determining final rate of earnings: (1) severance or separation
pay, (2) retirement pay, (3) payment for unused sick leave, and
(4) payments from an employer for the period used in
determining final rate of earnings for any purpose other than
(i) services rendered, (ii) leave of absence or vacation

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granted during that period, and (iii) vacation of up to 56 work
days allowed upon termination of employment; except that, if
the benefit has been collectively bargained between the
employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance
with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section. Any unused sick
leave considered as earnings under this Section shall not be
taken into account in calculating service credit under Section
15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-126.2 new)
Sec. 15-126.2. Plan year. "Plan year": The 12-month period
beginning on July 1 in any year, and ending on June 30 of the
succeeding year.
(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154. Refunds.
(a) A participant whose status as an employee is
terminated, regardless of cause, or who has been on lay off
status for more than 120 days, and who is not on leave of

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absence, is entitled to a refund of contributions upon
application; except that not more than one such refund
application may be made during any academic year.
Except as set forth in subsections (a-1) and (a-2), the
refund shall be the sum of the accumulated normal, additional,
and survivors insurance contributions, plus the entire
contribution made by the participant under Section 15-113.3,
less the amount of interest credited on these contributions
each year in excess of 4 1/2% of the amount on which interest
was calculated.
(a-1) A person who elects, in accordance with the
requirements of Section 15-134.5, to participate in the
portable benefit package and who becomes a participating
employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable benefit
package election shall have his or her refund calculated in
accordance with the provisions of subsection (a-2).
(a-2) The refund payable to a participant described in
subsection (a-1) shall be the sum of the participant's
accumulated normal and additional contributions, as defined in
Sections 15-116 and 15-117, plus the entire contribution made
by the participant under Section 15-113.3. If the participant
terminates with 5 or more years of service for employment as
defined in Section 15-113.1, he or she shall also be entitled
to a distribution of employer contributions in an amount equal
to the sum of the accumulated normal and additional

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contributions, as defined in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant forfeits
all accrued rights and credits in the System, and if
subsequently reemployed, the participant shall be considered a
new employee subject to all the qualifying conditions for
participation and eligibility for benefits applicable to new
employees. If such person again becomes a participating
employee and continues as such for 2 years, or is employed by
an employer and participates for at least 2 years in the
Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be restored
upon repayment of the amount of the refund, together with
compound interest thereon from the date the refund was issued
received to the date of repayment at the rate of 6% per annum
through August 31, 1982, and at the effective rates after that
date. When a participant in the portable benefit package who
received a refund which included a distribution of employer
contributions repays a refund pursuant to this Section,
one-half of the amount repaid shall be deemed the member's
reinstated accumulated normal and additional contributions and
the other half shall be allocated as an employer contribution
to the System, except that any amount repaid for previously
purchased military service credit under Section 15-113.3 shall
be accounted for as such.
(c) If a participant covered under the traditional benefit
package has made survivors insurance contributions, but has no

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survivors insurance beneficiary upon retirement, he or she
shall be entitled to elect a refund of the accumulated
survivors insurance contributions, or to elect an additional
annuity the value of which is equal to the accumulated
survivors insurance contributions. This election must be made
prior to the date the person's retirement annuity is approved
by the System.
(d) A participant, upon application, is entitled to a
refund of his or her accumulated additional contributions
attributable to the additional contributions described in the
last sentence of subsection (c) of Section 15-157. Upon the
acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and credits
which may have accrued because of such contributions.
(e) A participant who terminates his or her employee status
and elects to waive service credit under Section 15-154.2, is
entitled to a refund of the accumulated normal, additional and
survivors insurance contributions, if any, which were credited
the participant for this service, or to an additional annuity
the value of which is equal to the accumulated normal,
additional and survivors insurance contributions, if any;
except that not more than one such refund application may be
made during any academic year. Upon acceptance of this refund,
the participant forfeits all rights and credits accrued because
of this service.
(f) If a police officer or firefighter receives a

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retirement annuity under Rule 1 or 3 of Section 15-136, he or
she shall be entitled at retirement to a refund of the
difference between his or her accumulated normal contributions
and the normal contributions which would have accumulated had
such person filed a waiver of the retirement formula provided
by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would be
entitled to a retirement annuity under Rule 1, 2, 3, 4, or 5 of
Section 15-136, or under Section 15-136.4, that exceeds the
maximum specified in clause (1) of subsection (c) of Section
15-136, he or she shall be entitled to a refund of the employee
contributions, if any, paid under Section 15-157 after the date
upon which continuance of such contributions would have
otherwise caused the retirement annuity to exceed this maximum,
plus compound interest at the effective rates.
(Source: P.A. 92-16, eff. 6-28-01; 92-424, eff. 8-17-01;
93-347, eff. 7-24-03.)
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement benefits payable under the retirement
program applicable to the employee from each payment of
earnings applicable to employment under this system on and

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after the date of becoming a participant as follows: Prior to
September 1, 1949, 3 1/2% of earnings; from September 1, 1949
to August 31, 1955, 5%; from September 1, 1955 to August 31,
1969, 6%; from September 1, 1969, 6 1/2%. These contributions
are to be considered as normal contributions for purposes of
this Article.
Each participant who is a police officer or firefighter
shall make normal contributions of 8% of each payment of
earnings applicable to employment as a police officer or
firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after the
effective date of this amendatory Act of 1991 or 60 days after
the board receives notice that he or she is employed as a
police officer or firefighter, whichever is later, a written
notice waiving the retirement formula provided by Rule 4 of
Section 15-136. This waiver shall be irrevocable. If a
participant had met the conditions set forth in Section
15-132.1 prior to the effective date of this amendatory Act of
1991 but failed to make the additional normal contributions
required by this paragraph, he or she may elect to pay the
additional contributions plus compound interest at the
effective rate. If such payment is received by the board, the
service shall be considered as police officer service in
calculating the retirement annuity under Rule 4 of Section
15-136. While performing service described in clause (i) or
(ii) of Rule 4 of Section 15-136, a participating employee

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shall be deemed to be employed as a firefighter for the purpose
of determining the rate of employee contributions under this
Section.
(b) Starting September 1, 1969, each participating
employee shall make additional contributions of 1/2 of 1% of
earnings to finance a portion of the cost of the annual
increases in retirement annuity provided under Section 15-136,
except that with respect to participants in the self-managed
plan this additional contribution shall be used to finance the
benefits obtained under that retirement program.
(c) In addition to the amounts described in subsections (a)
and (b) of this Section, each participating employee shall make
contributions of 1% of earnings applicable under this system on
and after August 1, 1959. The contributions made under this
subsection (c) shall be considered as survivor's insurance
contributions for purposes of this Article if the employee is
covered under the traditional benefit package, and such
contributions shall be considered as additional contributions
for purposes of this Article if the employee is participating
in the self-managed plan or has elected to participate in the
portable benefit package and has completed the applicable
one-year waiting period. Contributions in excess of $80 during
any fiscal year beginning before August 31, 1969 and in excess
of $120 during any fiscal year thereafter until September 1,
1971 shall be considered as additional contributions for
purposes of this Article.

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(d) If the board by board rule so permits and subject to
such conditions and limitations as may be specified in its
rules, a participant may make other additional contributions of
such percentage of earnings or amounts as the participant shall
elect in a written notice thereof received by the board.
(e) That fraction of a participant's total accumulated
normal contributions, the numerator of which is equal to the
number of years of service in excess of that which is required
to qualify for the maximum retirement annuity, and the
denominator of which is equal to the total service of the
participant, shall be considered as accumulated additional
contributions. The determination of the applicable maximum
annuity and the adjustment in contributions required by this
provision shall be made as of the date of the participant's
retirement.
(f) Notwithstanding the foregoing, a participating
employee shall not be required to make contributions under this
Section after the date upon which continuance of such
contributions would otherwise cause his or her retirement
annuity to exceed the maximum retirement annuity as specified
in clause (1) of subsection (c) of Section 15-136.
(g) A participant participating employee may make
contributions for the purchase of service credit under this
Article; however, only a participating employee may make
optional contributions under subsection (b) of Section
15-157.1 of this Article.

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(h) A Tier 2 member shall not make contributions on
earnings that exceed the limitation as prescribed under
subsection (b) of Section 15-111 of this Article .
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
Sec. 15-168. To require information. To require such
information as shall be necessary for the proper operation of
the system from any participant or benefit recipient
beneficiary or from any employer of a current or former
participant.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
Sec. 16-155. Report to system and payment of deductions.
(a) The governing body of each school district shall make
two deposits each month. The deposit for member contributions
for salary paid between the first and the fifteenth of the
month is due by the 25th of the month. The deposit of member
contributions for salary paid between the sixteenth and last
day of the month is due by the 10th of the following month. All
required contributions for salary earned during a school term
are due by July 10 next following the close of such school
term.
The governing body of each State institution coming under
this retirement system, the State Comptroller or other State

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officer certifying payroll vouchers including payments of
salary or wages to teachers, and any other employer of
teachers, shall, monthly, forward to the secretary of the
retirement system the member contributions required under this
Article.
Each employer specified above shall, prior to August 15 of
each year, forward to the System a detailed statement, verified
in all cases of school districts by the secretary or clerk of
the district, of the amounts so contributed since the period
covered by the last previous annual statement, together with
required contributions not yet forwarded, such payments being
payable to the System.
The board may prescribe rules governing the form, content,
investigation, control, and supervision of such statements and
may establish additional interim employer reporting
requirements as the Board deems necessary. If no teacher in a
school district comes under the provisions of this Article, the
governing body of the district shall so state under the oath of
its secretary to this system, and shall at the same time
forward a copy of the statement to the regional superintendent
of schools.
(b) If the governing body of an employer that is not a
State agency fails to forward such required contributions
within the time permitted in subsection (a) above, the System
shall notify the employer of an additional amount due, equal to
the greater of the following: (1) an amount representing the

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interest lost by the system due to late forwarding of
contributions, calculated for the number of days which the
employer is late in forwarding contributions at a rate of
interest prescribed by the board, based on its investment
experience; or (2) $50.
(c) If the system, on August 15, is not in receipt of the
detailed statements required under this Section of any school
district or other employing unit, such school district or other
employing unit shall pay to the system an amount equal to $250
for each day that elapses from August 15, until the day such
statement is filed with the system.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/16-169.1)
Sec. 16-169.1. Testimony and the production of records. The
secretary of the Board shall have the power to issue subpoenas
to compel the attendance of witnesses and the production of
documents and records, including law enforcement records
maintained by law enforcement agencies, in conjunction with the
determination of employer payments required under subsection
(f) of Section 16-158, a disability claim, an administrative
review proceeding, an attempt to obtain information to assist
in the collection of sums due to the System, or a felony
forfeiture investigation. The fees of witnesses for attendance
and travel shall be the same as the fees of witnesses before
the circuit courts of this State and shall be paid by the party

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seeking the subpoena. The Board may apply to any circuit court
in the State for an order requiring compliance with a subpoena
issued under this Section. Subpoenas issued under this Section
shall be subject to applicable provisions of the Code of Civil
Procedure.
(Source: P.A. 94-1057, eff. 7-31-06.)
(40 ILCS 5/16-181.4 new)
Sec. 16-181.4. To request information. To request such
information from any member, annuitant, beneficiary, or
employer as is necessary for the proper administration of the
System.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.".