Bill Amendment: IL SB1012 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2019-01-09 - Session Sine Die [SB1012 Detail]
Download: Illinois-2017-SB1012-Senate_Amendment_001.html
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2019-01-09 - Session Sine Die [SB1012 Detail]
Download: Illinois-2017-SB1012-Senate_Amendment_001.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1012
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1012 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The State Employees Group Insurance Act of 1971 | ||||||
5 | is amended by changing Sections 3 and 10 as follows:
| ||||||
6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
| ||||||
7 | Sec. 3. Definitions. Unless the context otherwise | ||||||
8 | requires, the
following words and phrases as used in this Act | ||||||
9 | shall have the following
meanings. The Department may define | ||||||
10 | these and other words and phrases
separately for the purpose of | ||||||
11 | implementing specific programs providing benefits
under this | ||||||
12 | Act.
| ||||||
13 | (a) "Administrative service organization" means any | ||||||
14 | person, firm or
corporation experienced in the handling of | ||||||
15 | claims which is
fully qualified, financially sound and capable | ||||||
16 | of meeting the service
requirements of a contract of |
| |||||||
| |||||||
1 | administration executed with the Department.
| ||||||
2 | (b) "Annuitant" means (1) an employee who retires, or has | ||||||
3 | retired,
on or after January 1, 1966 on an immediate annuity | ||||||
4 | under the provisions
of Article Articles 2 (including an | ||||||
5 | employee who, in lieu of receiving an annuity under that | ||||||
6 | Article, has retired under the Tier 3 plan established under | ||||||
7 | Section 2-165.5 of that Article) , 14 (including an employee who | ||||||
8 | has elected to receive an alternative retirement cancellation | ||||||
9 | payment under Section 14-108.5 of the Illinois Pension Code in | ||||||
10 | lieu of an annuity or an employee who, in lieu of receiving an | ||||||
11 | annuity under that Article, has retired under the Tier 3 plan | ||||||
12 | established under Section 14-155.5 of that Article ), or 15 | ||||||
13 | (including an employee who has retired under the optional
| ||||||
14 | retirement program established under Section 15-158.2 or the | ||||||
15 | Tier 3 plan established under Section 15-155.5 of the Illinois | ||||||
16 | Pension Code ),
paragraphs (2), (3), or (5) of Section 16-106 | ||||||
17 | (including an employee who, in lieu of receiving an annuity | ||||||
18 | under that Article, has retired under the Tier 3 plan | ||||||
19 | established under Section 16-205.5 of the Illinois Pension | ||||||
20 | Code) , or
Article 18 (including an employee who, in lieu of | ||||||
21 | receiving an annuity under that Article, has retired under the | ||||||
22 | Tier 3 plan established under Section 18-121.5 of that Article) | ||||||
23 | of the Illinois Pension Code; (2) any person who was receiving
| ||||||
24 | group insurance coverage under this Act as of March 31, 1978 by
| ||||||
25 | reason of his status as an annuitant, even though the annuity | ||||||
26 | in relation
to which such coverage was provided is a |
| |||||||
| |||||||
1 | proportional annuity based on less
than the minimum period of | ||||||
2 | service required for a retirement annuity in
the system | ||||||
3 | involved; (3) any person not otherwise covered by this Act
who | ||||||
4 | has retired as a participating member under Article 2 of the | ||||||
5 | Illinois
Pension Code but is ineligible for the retirement | ||||||
6 | annuity under Section
2-119 of the Illinois Pension Code; (4) | ||||||
7 | the spouse of any person who
is receiving a retirement annuity | ||||||
8 | under Article 18 of the Illinois Pension
Code and who is | ||||||
9 | covered under a group health insurance program sponsored
by a | ||||||
10 | governmental employer other than the State of Illinois and who | ||||||
11 | has
irrevocably elected to waive his or her coverage under this | ||||||
12 | Act and to have
his or her spouse considered as the "annuitant" | ||||||
13 | under this Act and not as
a "dependent"; or (5) an employee who | ||||||
14 | retires, or has retired, from a
qualified position, as | ||||||
15 | determined according to rules promulgated by the
Director, | ||||||
16 | under a qualified local government, a qualified rehabilitation
| ||||||
17 | facility, a qualified domestic violence shelter or service, or | ||||||
18 | a qualified child advocacy center. (For definition
of "retired | ||||||
19 | employee", see (p) post).
| ||||||
20 | (b-5) (Blank).
| ||||||
21 | (b-6) (Blank).
| ||||||
22 | (b-7) (Blank).
| ||||||
23 | (c) "Carrier" means (1) an insurance company, a corporation | ||||||
24 | organized
under the Limited Health Service Organization Act or | ||||||
25 | the Voluntary Health
Services Plan Act, a partnership, or other | ||||||
26 | nongovernmental organization,
which is authorized to do group |
| |||||||
| |||||||
1 | life or group health insurance business in
Illinois, or (2) the | ||||||
2 | State of Illinois as a self-insurer.
| ||||||
3 | (d) "Compensation" means salary or wages payable on a | ||||||
4 | regular
payroll by the State Treasurer on a warrant of the | ||||||
5 | State Comptroller out
of any State, trust or federal fund, or | ||||||
6 | by the Governor of the State
through a disbursing officer of | ||||||
7 | the State out of a trust or out of
federal funds, or by any | ||||||
8 | Department out of State, trust, federal or
other funds held by | ||||||
9 | the State Treasurer or the Department, to any person
for | ||||||
10 | personal services currently performed, and ordinary or | ||||||
11 | accidental
disability benefits under Articles 2, 14, 15 | ||||||
12 | (including ordinary or accidental
disability benefits under | ||||||
13 | the optional retirement program established under
Section | ||||||
14 | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | ||||||
15 | Article 18 of the Illinois Pension Code, for disability
| ||||||
16 | incurred after January 1, 1966, or benefits payable under the | ||||||
17 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
18 | payable under a sick
pay plan established in accordance with | ||||||
19 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
20 | salary or wages paid to an employee of any
qualified local | ||||||
21 | government, qualified rehabilitation facility,
qualified | ||||||
22 | domestic violence shelter or service, or qualified child | ||||||
23 | advocacy center.
| ||||||
24 | (e) "Commission" means the State Employees Group Insurance | ||||||
25 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
26 | 1984, "Commission"
as used in this Act means the Commission on |
| |||||||
| |||||||
1 | Government Forecasting and Accountability as
established by | ||||||
2 | the Legislative Commission Reorganization Act of 1984.
| ||||||
3 | (f) "Contributory", when referred to as contributory | ||||||
4 | coverage, shall
mean optional coverages or benefits elected by | ||||||
5 | the member toward the cost of
which such member makes | ||||||
6 | contribution, or which are funded in whole or in part
through | ||||||
7 | the acceptance of a reduction in earnings or the foregoing of | ||||||
8 | an
increase in earnings by an employee, as distinguished from | ||||||
9 | noncontributory
coverage or benefits which are paid entirely by | ||||||
10 | the State of Illinois
without reduction of the member's salary.
| ||||||
11 | (g) "Department" means any department, institution, board,
| ||||||
12 | commission, officer, court or any agency of the State | ||||||
13 | government
receiving appropriations and having power to | ||||||
14 | certify payrolls to the
Comptroller authorizing payments of | ||||||
15 | salary and wages against such
appropriations as are made by the | ||||||
16 | General Assembly from any State fund, or
against trust funds | ||||||
17 | held by the State Treasurer and includes boards of
trustees of | ||||||
18 | the retirement systems created by Articles 2, 14, 15, 16 and
18 | ||||||
19 | of the Illinois Pension Code. "Department" also includes the | ||||||
20 | Illinois
Comprehensive Health Insurance Board, the Board of | ||||||
21 | Examiners established under
the Illinois Public Accounting | ||||||
22 | Act, and the Illinois Finance Authority.
| ||||||
23 | (h) "Dependent", when the term is used in the context of | ||||||
24 | the health
and life plan, means a member's spouse and any child | ||||||
25 | (1) from
birth to age 26 including an adopted child, a child | ||||||
26 | who lives with the
member from the time of the filing of a |
| |||||||
| |||||||
1 | petition for adoption until entry
of an order of adoption, a | ||||||
2 | stepchild or adjudicated child, or a child who lives with the | ||||||
3 | member
if such member is a court appointed guardian of the | ||||||
4 | child or (2)
age 19 or over who has a mental or physical | ||||||
5 | disability from a cause originating prior to the age of 19 (age | ||||||
6 | 26 if enrolled as an adult child dependent). For
the health | ||||||
7 | plan only, the term "dependent" also includes (1) any person
| ||||||
8 | enrolled prior to the effective date of this Section who is | ||||||
9 | dependent upon
the member to the extent that the member may | ||||||
10 | claim such person as a
dependent for income tax deduction | ||||||
11 | purposes and (2) any person who
has received after June 30, | ||||||
12 | 2000 an organ transplant and who is financially
dependent upon | ||||||
13 | the member and eligible to be claimed as a dependent for income
| ||||||
14 | tax purposes. A member requesting to cover any dependent must | ||||||
15 | provide documentation as requested by the Department of Central | ||||||
16 | Management Services and file with the Department any and all | ||||||
17 | forms required by the Department.
| ||||||
18 | (i) "Director" means the Director of the Illinois | ||||||
19 | Department of Central
Management Services.
| ||||||
20 | (j) "Eligibility period" means the period of time a member | ||||||
21 | has to
elect enrollment in programs or to select benefits | ||||||
22 | without regard to
age, sex or health.
| ||||||
23 | (k) "Employee" means and includes each officer or employee | ||||||
24 | in the
service of a department who (1) receives his | ||||||
25 | compensation for
service rendered to the department on a | ||||||
26 | warrant issued pursuant to a payroll
certified by a department |
| |||||||
| |||||||
1 | or on a warrant or check issued and drawn by a
department upon | ||||||
2 | a trust, federal or other fund or on a warrant issued
pursuant | ||||||
3 | to a payroll certified by an elected or duly appointed officer
| ||||||
4 | of the State or who receives payment of the performance of | ||||||
5 | personal
services on a warrant issued pursuant to a payroll | ||||||
6 | certified by a
Department and drawn by the Comptroller upon the | ||||||
7 | State Treasurer against
appropriations made by the General | ||||||
8 | Assembly from any fund or against
trust funds held by the State | ||||||
9 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
10 | position normally requiring actual performance of duty
during | ||||||
11 | not less than 1/2 of a normal work period, as established by | ||||||
12 | the
Director in cooperation with each department, except that | ||||||
13 | persons elected
by popular vote will be considered employees | ||||||
14 | during the entire
term for which they are elected regardless of | ||||||
15 | hours devoted to the
service of the State, and (3) except that | ||||||
16 | "employee" does not include any
person who is not eligible by | ||||||
17 | reason of such person's employment to
participate in one of the | ||||||
18 | State retirement systems under Articles 2, 14, 15
(either the | ||||||
19 | regular Article 15 system or the optional retirement program
| ||||||
20 | established under Section 15-158.2) or 18, or under paragraph | ||||||
21 | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | ||||||
22 | Code, but such term does include persons who are employed | ||||||
23 | during
the 6 month qualifying period under Article 14 of the | ||||||
24 | Illinois Pension
Code. Such term also includes any person who | ||||||
25 | (1) after January 1, 1966,
is receiving ordinary or accidental | ||||||
26 | disability benefits under Articles
2, 14, 15 (including |
| |||||||
| |||||||
1 | ordinary or accidental disability benefits under the
optional | ||||||
2 | retirement program established under Section 15-158.2), | ||||||
3 | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | ||||||
4 | the
Illinois Pension Code, for disability incurred after | ||||||
5 | January 1, 1966, (2)
receives total permanent or total | ||||||
6 | temporary disability under the Workers'
Compensation Act or | ||||||
7 | Occupational Disease Act as a result of injuries
sustained or | ||||||
8 | illness contracted in the course of employment with the
State | ||||||
9 | of Illinois, or (3) is not otherwise covered under this Act and | ||||||
10 | has
retired as a participating member under Article 2 of the | ||||||
11 | Illinois Pension
Code but is ineligible for the retirement | ||||||
12 | annuity under Section 2-119 of
the Illinois Pension Code. | ||||||
13 | However, a person who satisfies the criteria
of the foregoing | ||||||
14 | definition of "employee" except that such person is made
| ||||||
15 | ineligible to participate in the State Universities Retirement | ||||||
16 | System by
clause (4) of subsection (a) of Section 15-107 of the | ||||||
17 | Illinois Pension
Code is also an "employee" for the purposes of | ||||||
18 | this Act. "Employee" also
includes any person receiving or | ||||||
19 | eligible for benefits under a sick pay
plan established in | ||||||
20 | accordance with Section 36 of the State Finance Act.
"Employee" | ||||||
21 | also includes (i) each officer or employee in the service of a
| ||||||
22 | qualified local government, including persons appointed as | ||||||
23 | trustees of
sanitary districts regardless of hours devoted to | ||||||
24 | the service of the
sanitary district, (ii) each employee in the | ||||||
25 | service of a qualified
rehabilitation facility, (iii) each | ||||||
26 | full-time employee in the service of a
qualified domestic |
| |||||||
| |||||||
1 | violence shelter or service, and (iv) each full-time employee | ||||||
2 | in the service of a qualified child advocacy center, as | ||||||
3 | determined according to
rules promulgated by the Director.
| ||||||
4 | (l) "Member" means an employee, annuitant, retired | ||||||
5 | employee or survivor. In the case of an annuitant or retired | ||||||
6 | employee who first becomes an annuitant or retired employee on | ||||||
7 | or after the effective date of this amendatory Act of the 97th | ||||||
8 | General Assembly, the individual must meet the minimum vesting | ||||||
9 | requirements of the applicable retirement system in order to be | ||||||
10 | eligible for group insurance benefits under that system. In the | ||||||
11 | case of a survivor who first becomes a survivor on or after the | ||||||
12 | effective date of this amendatory Act of the 97th General | ||||||
13 | Assembly, the deceased employee, annuitant, or retired | ||||||
14 | employee upon whom the annuity is based must have been eligible | ||||||
15 | to participate in the group insurance system under the | ||||||
16 | applicable retirement system in order for the survivor to be | ||||||
17 | eligible for group insurance benefits under that system.
| ||||||
18 | (m) "Optional coverages or benefits" means those coverages | ||||||
19 | or
benefits available to the member on his or her voluntary | ||||||
20 | election, and at
his or her own expense.
| ||||||
21 | (n) "Program" means the group life insurance, health | ||||||
22 | benefits and other
employee benefits designed and contracted | ||||||
23 | for by the Director under this Act.
| ||||||
24 | (o) "Health plan" means a health benefits
program offered
| ||||||
25 | by the State of Illinois for persons eligible for the plan.
| ||||||
26 | (p) "Retired employee" means any person who would be an |
| |||||||
| |||||||
1 | annuitant as
that term is defined herein but for the fact that | ||||||
2 | such person retired prior to
January 1, 1966. Such term also | ||||||
3 | includes any person formerly employed by
the University of | ||||||
4 | Illinois in the Cooperative Extension Service who would
be an | ||||||
5 | annuitant but for the fact that such person was made ineligible | ||||||
6 | to
participate in the State Universities Retirement System by | ||||||
7 | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| ||||||
8 | Pension Code.
| ||||||
9 | (q) "Survivor" means a person receiving an annuity as a | ||||||
10 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
11 | includes: (1) the surviving
dependent of a person who satisfies | ||||||
12 | the definition of "employee" except that
such person is made | ||||||
13 | ineligible to participate in the State Universities
Retirement | ||||||
14 | System by clause (4) of subsection (a)
of Section 15-107 of the | ||||||
15 | Illinois Pension Code; (2) the surviving
dependent of any | ||||||
16 | person formerly employed by the University of Illinois in
the | ||||||
17 | Cooperative Extension Service who would be an annuitant except | ||||||
18 | for the
fact that such person was made ineligible to | ||||||
19 | participate in the State
Universities Retirement System by | ||||||
20 | clause (4) of subsection (a) of Section
15-107 of the Illinois | ||||||
21 | Pension Code; and (3) the surviving dependent of a person who | ||||||
22 | was an annuitant under this Act by virtue of receiving an | ||||||
23 | alternative retirement cancellation payment under Section | ||||||
24 | 14-108.5 of the Illinois Pension Code.
| ||||||
25 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
26 | of Illinois, created under Article 14 of the Illinois Pension |
| |||||||
| |||||||
1 | Code.
| ||||||
2 | (q-3) "SURS" means the State Universities Retirement | ||||||
3 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
4 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
5 | State of Illinois, created under Article 16 of the Illinois | ||||||
6 | Pension Code.
| ||||||
7 | (q-5) (Blank).
| ||||||
8 | (q-6) (Blank).
| ||||||
9 | (q-7) (Blank).
| ||||||
10 | (r) "Medical services" means the services provided within | ||||||
11 | the scope
of their licenses by practitioners in all categories | ||||||
12 | licensed under the
Medical Practice Act of 1987.
| ||||||
13 | (s) "Unit of local government" means any county, | ||||||
14 | municipality,
township, school district (including a | ||||||
15 | combination of school districts under
the Intergovernmental | ||||||
16 | Cooperation Act), special district or other unit,
designated as | ||||||
17 | a
unit of local government by law, which exercises limited | ||||||
18 | governmental
powers or powers in respect to limited | ||||||
19 | governmental subjects, any
not-for-profit association with a | ||||||
20 | membership that primarily includes
townships and township | ||||||
21 | officials, that has duties that include provision of
research | ||||||
22 | service, dissemination of information, and other acts for the
| ||||||
23 | purpose of improving township government, and that is funded | ||||||
24 | wholly or
partly in accordance with Section 85-15 of the | ||||||
25 | Township Code; any
not-for-profit corporation or association, | ||||||
26 | with a membership consisting
primarily of municipalities, that |
| |||||||
| |||||||
1 | operates its own utility system, and
provides research, | ||||||
2 | training, dissemination of information, or other acts to
| ||||||
3 | promote cooperation between and among municipalities that | ||||||
4 | provide utility
services and for the advancement of the goals | ||||||
5 | and purposes of its
membership;
the Southern Illinois | ||||||
6 | Collegiate Common Market, which is a consortium of higher
| ||||||
7 | education institutions in Southern Illinois; the Illinois | ||||||
8 | Association of
Park Districts; and any hospital provider that | ||||||
9 | is owned by a county that has 100 or fewer hospital beds and | ||||||
10 | has not already joined the program. "Qualified
local | ||||||
11 | government" means a unit of local government approved by the | ||||||
12 | Director and
participating in a program created under | ||||||
13 | subsection (i) of Section 10 of this
Act.
| ||||||
14 | (t) "Qualified rehabilitation facility" means any | ||||||
15 | not-for-profit
organization that is accredited by the | ||||||
16 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
17 | certified by the Department
of Human Services (as successor to | ||||||
18 | the Department of Mental Health
and Developmental | ||||||
19 | Disabilities) to provide services to persons with
disabilities
| ||||||
20 | and which receives funds from the State of Illinois for | ||||||
21 | providing those
services, approved by the Director and | ||||||
22 | participating in a program created
under subsection (j) of | ||||||
23 | Section 10 of this Act.
| ||||||
24 | (u) "Qualified domestic violence shelter or service" means | ||||||
25 | any Illinois
domestic violence shelter or service and its | ||||||
26 | administrative offices funded
by the Department of Human |
| |||||||
| |||||||
1 | Services (as successor to the Illinois Department of
Public | ||||||
2 | Aid),
approved by the Director and
participating in a program | ||||||
3 | created under subsection (k) of Section 10.
| ||||||
4 | (v) "TRS benefit recipient" means a person who:
| ||||||
5 | (1) is not a "member" as defined in this Section; and
| ||||||
6 | (2) is receiving a monthly benefit or retirement | ||||||
7 | annuity
under Article 16 of the Illinois Pension Code; and
| ||||||
8 | (3) either (i) has at least 8 years of creditable | ||||||
9 | service under Article
16 of the Illinois Pension Code, or | ||||||
10 | (ii) was enrolled in the health insurance
program offered | ||||||
11 | under that Article on January 1, 1996, or (iii) is the | ||||||
12 | survivor
of a benefit recipient who had at least 8
years of | ||||||
13 | creditable service under Article 16 of the Illinois Pension | ||||||
14 | Code or
was enrolled in the health insurance program | ||||||
15 | offered under that Article on
the effective date of this | ||||||
16 | amendatory Act of 1995, or (iv) is a recipient or
survivor | ||||||
17 | of a recipient of a disability benefit under Article 16 of | ||||||
18 | the
Illinois Pension Code.
| ||||||
19 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
20 | (1) is not a "member" or "dependent" as defined in this | ||||||
21 | Section; and
| ||||||
22 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
23 | dependent parent who
is receiving at least half of his or | ||||||
24 | her support from the TRS benefit
recipient, or (C) natural, | ||||||
25 | step, adjudicated, or adopted child who is (i) under age | ||||||
26 | 26, (ii) was, on January 1, 1996, participating as a |
| |||||||
| |||||||
1 | dependent
beneficiary in the health insurance program | ||||||
2 | offered under Article 16 of the
Illinois Pension Code, or | ||||||
3 | (iii) age 19 or over who has a mental or physical | ||||||
4 | disability from a cause originating prior to the age of 19 | ||||||
5 | (age 26 if enrolled as an adult child).
| ||||||
6 | "TRS dependent beneficiary" does not include, as indicated | ||||||
7 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
8 | survivor of a TRS benefit recipient who first becomes a | ||||||
9 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
10 | the effective date of this amendatory Act of the 97th General | ||||||
11 | Assembly unless that dependent would have been eligible for | ||||||
12 | coverage as a dependent of the deceased TRS benefit recipient | ||||||
13 | upon whom the survivor benefit is based. | ||||||
14 | (x) "Military leave" refers to individuals in basic
| ||||||
15 | training for reserves, special/advanced training, annual | ||||||
16 | training, emergency
call up, activation by the President of the | ||||||
17 | United States, or any other training or duty in service to the | ||||||
18 | United States Armed Forces.
| ||||||
19 | (y) (Blank).
| ||||||
20 | (z) "Community college benefit recipient" means a person | ||||||
21 | who:
| ||||||
22 | (1) is not a "member" as defined in this Section; and
| ||||||
23 | (2) is receiving a monthly survivor's annuity or | ||||||
24 | retirement annuity
under Article 15 of the Illinois Pension | ||||||
25 | Code; and
| ||||||
26 | (3) either (i) was a full-time employee of a community |
| |||||||
| |||||||
1 | college district or
an association of community college | ||||||
2 | boards created under the Public Community
College Act | ||||||
3 | (other than an employee whose last employer under Article | ||||||
4 | 15 of the
Illinois Pension Code was a community college | ||||||
5 | district subject to Article VII
of the Public Community | ||||||
6 | College Act) and was eligible to participate in a group
| ||||||
7 | health benefit plan as an employee during the time of | ||||||
8 | employment with a
community college district (other than a | ||||||
9 | community college district subject to
Article VII of the | ||||||
10 | Public Community College Act) or an association of | ||||||
11 | community
college boards, or (ii) is the survivor of a | ||||||
12 | person described in item (i).
| ||||||
13 | (aa) "Community college dependent beneficiary" means a | ||||||
14 | person who:
| ||||||
15 | (1) is not a "member" or "dependent" as defined in this | ||||||
16 | Section; and
| ||||||
17 | (2) is a community college benefit recipient's: (A) | ||||||
18 | spouse, (B) dependent
parent who is receiving at least half | ||||||
19 | of his or her support from the community
college benefit | ||||||
20 | recipient, or (C) natural, step, adjudicated, or adopted | ||||||
21 | child who is (i)
under age 26, or (ii)
age 19 or over and | ||||||
22 | has a mental or physical disability from a cause | ||||||
23 | originating prior to the age of 19 (age 26 if enrolled as | ||||||
24 | an adult child).
| ||||||
25 | "Community college dependent beneficiary" does not | ||||||
26 | include, as indicated under paragraph (2) of this subsection |
| |||||||
| |||||||
1 | (aa), a dependent of the survivor of a community college | ||||||
2 | benefit recipient who first becomes a dependent of a survivor | ||||||
3 | of a community college benefit recipient on or after the | ||||||
4 | effective date of this amendatory Act of the 97th General | ||||||
5 | Assembly unless that dependent would have been eligible for | ||||||
6 | coverage as a dependent of the deceased community college | ||||||
7 | benefit recipient upon whom the survivor annuity is based. | ||||||
8 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
9 | child advocacy center and its administrative offices funded by | ||||||
10 | the Department of Children and Family Services, as defined by | ||||||
11 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
12 | the Director and participating in a program created under | ||||||
13 | subsection (n) of Section 10.
| ||||||
14 | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
| ||||||
15 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
16 | Sec. 10. Contributions by the State and members.
| ||||||
17 | (a) The State shall pay the cost of basic non-contributory | ||||||
18 | group life
insurance and, subject to member paid contributions | ||||||
19 | set by the Department or
required by this Section and except as | ||||||
20 | provided in this Section, the basic program of group health | ||||||
21 | benefits on each
eligible member, except a member, not | ||||||
22 | otherwise
covered by this Act, who has retired as a | ||||||
23 | participating member under Article 2
of the Illinois Pension | ||||||
24 | Code but is ineligible for the retirement annuity under
Section | ||||||
25 | 2-119 of the Illinois Pension Code, and part of each eligible |
| |||||||
| |||||||
1 | member's
and retired member's premiums for health insurance | ||||||
2 | coverage for enrolled
dependents as provided by Section 9. The | ||||||
3 | State shall pay the cost of the basic
program of group health | ||||||
4 | benefits only after benefits are reduced by the amount
of | ||||||
5 | benefits covered by Medicare for all members and dependents
who | ||||||
6 | are eligible for benefits under Social Security or
the Railroad | ||||||
7 | Retirement system or who had sufficient Medicare-covered
| ||||||
8 | government employment, except that such reduction in benefits | ||||||
9 | shall apply only
to those members and dependents who (1) first | ||||||
10 | become eligible
for such Medicare coverage on or after July 1, | ||||||
11 | 1992; or (2) are
Medicare-eligible members or dependents of a | ||||||
12 | local government unit which began
participation in the program | ||||||
13 | on or after July 1, 1992; or (3) remain eligible
for, but no | ||||||
14 | longer receive Medicare coverage which they had been receiving | ||||||
15 | on
or after July 1, 1992. The Department may determine the | ||||||
16 | aggregate level of the
State's contribution on the basis of | ||||||
17 | actual cost of medical services adjusted
for age, sex or | ||||||
18 | geographic or other demographic characteristics which affect
| ||||||
19 | the costs of such programs.
| ||||||
20 | The cost of participation in the basic program of group | ||||||
21 | health benefits
for the dependent or survivor of a living or | ||||||
22 | deceased retired employee who was
formerly employed by the | ||||||
23 | University of Illinois in the Cooperative Extension
Service and | ||||||
24 | would be an annuitant but for the fact that he or she was made
| ||||||
25 | ineligible to participate in the State Universities Retirement | ||||||
26 | System by clause
(4) of subsection (a) of Section 15-107 of the |
| |||||||
| |||||||
1 | Illinois Pension Code shall not
be greater than the cost of | ||||||
2 | participation that would otherwise apply to that
dependent or | ||||||
3 | survivor if he or she were the dependent or survivor of an
| ||||||
4 | annuitant under the State Universities Retirement System.
| ||||||
5 | (a-1) (Blank).
| ||||||
6 | (a-2) (Blank).
| ||||||
7 | (a-3) (Blank).
| ||||||
8 | (a-4) (Blank).
| ||||||
9 | (a-5) (Blank).
| ||||||
10 | (a-6) (Blank).
| ||||||
11 | (a-7) (Blank).
| ||||||
12 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
13 | waive or terminate coverage in
the program of group health | ||||||
14 | benefits. Any such annuitant, survivor, or retired employee
who | ||||||
15 | has waived or terminated coverage may enroll or re-enroll in | ||||||
16 | the
program of group health benefits only during the annual | ||||||
17 | benefit choice period,
as determined by the Director; except | ||||||
18 | that in the event of termination of
coverage due to nonpayment | ||||||
19 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
20 | not re-enroll in the program.
| ||||||
21 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
22 | Act of the 97th General Assembly, the Director of Central | ||||||
23 | Management Services shall, on an annual basis, determine the | ||||||
24 | amount that the State shall contribute toward the basic program | ||||||
25 | of group health benefits on behalf of annuitants (including | ||||||
26 | individuals who (i) participated in the General Assembly |
| |||||||
| |||||||
1 | Retirement System, the State Employees' Retirement System of | ||||||
2 | Illinois, the State Universities Retirement System, the | ||||||
3 | Teachers' Retirement System of the State of Illinois, or the | ||||||
4 | Judges Retirement System of Illinois and (ii) qualify as | ||||||
5 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
6 | survivors (including individuals who (i) receive an annuity as | ||||||
7 | a survivor of an individual who participated in the General | ||||||
8 | Assembly Retirement System, the State Employees' Retirement | ||||||
9 | System of Illinois, the State Universities Retirement System, | ||||||
10 | the Teachers' Retirement System of the State of Illinois, or | ||||||
11 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
12 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
13 | retired employees (as defined in subsection (p) of Section 3 of | ||||||
14 | this Act). The remainder of the cost of coverage for each | ||||||
15 | annuitant, survivor, or retired employee, as determined by the | ||||||
16 | Director of Central Management Services, shall be the | ||||||
17 | responsibility of that annuitant, survivor, or retired | ||||||
18 | employee. | ||||||
19 | Contributions required of annuitants, survivors, and | ||||||
20 | retired employees shall be the same for all retirement systems | ||||||
21 | and shall also be based on whether an individual has made an | ||||||
22 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
23 | Contributions may be based on annuitants', survivors', or | ||||||
24 | retired employees' Medicare eligibility, but may not be based | ||||||
25 | on Social Security eligibility. | ||||||
26 | (a-9) No later than May 1 of each calendar year, the |
| |||||||
| |||||||
1 | Director
of Central Management Services shall certify in | ||||||
2 | writing to the Executive
Secretary of the State Employees' | ||||||
3 | Retirement System of Illinois the amounts
of the Medicare | ||||||
4 | supplement health care premiums and the amounts of the
health | ||||||
5 | care premiums for all other retirees who are not Medicare | ||||||
6 | eligible.
| ||||||
7 | A separate calculation of the premiums based upon the | ||||||
8 | actual cost of each
health care plan shall be so certified.
| ||||||
9 | The Director of Central Management Services shall provide | ||||||
10 | to the
Executive Secretary of the State Employees' Retirement | ||||||
11 | System of
Illinois such information, statistics, and other data | ||||||
12 | as he or she
may require to review the premium amounts | ||||||
13 | certified by the Director
of Central Management Services.
| ||||||
14 | The Department of Central Management Services, or any | ||||||
15 | successor agency designated to procure healthcare contracts | ||||||
16 | pursuant to this Act, is authorized to establish funds, | ||||||
17 | separate accounts provided by any bank or banks as defined by | ||||||
18 | the Illinois Banking Act, or separate accounts provided by any | ||||||
19 | savings and loan association or associations as defined by the | ||||||
20 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
21 | Director, outside the State treasury, for the purpose of | ||||||
22 | receiving the transfer of moneys from the Local Government | ||||||
23 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
24 | rules further defining the methodology for the transfers. Any | ||||||
25 | interest earned by moneys in the funds or accounts shall inure | ||||||
26 | to the Local Government Health Insurance Reserve Fund. The |
| |||||||
| |||||||
1 | transferred moneys, and interest accrued thereon, shall be used | ||||||
2 | exclusively for transfers to administrative service | ||||||
3 | organizations or their financial institutions for payments of | ||||||
4 | claims to claimants and providers under the self-insurance | ||||||
5 | health plan. The transferred moneys, and interest accrued | ||||||
6 | thereon, shall not be used for any other purpose including, but | ||||||
7 | not limited to, reimbursement of administration fees due the | ||||||
8 | administrative service organization pursuant to its contract | ||||||
9 | or contracts with the Department.
| ||||||
10 | (a-10) For purposes of determining State contributions | ||||||
11 | under this Section, service established under a Tier 3 plan | ||||||
12 | under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code | ||||||
13 | shall be included in determining an employee's creditable | ||||||
14 | service. Any credit terminated as part of a transfer of | ||||||
15 | contributions to a Tier 3 plan under Article 2, 14, 15, 16, or | ||||||
16 | 18 of the Illinois Pension Code shall also be included in | ||||||
17 | determining an employee's creditable service. | ||||||
18 | (b) State employees who become eligible for this program on | ||||||
19 | or after January
1, 1980 in positions normally requiring actual | ||||||
20 | performance of duty not less
than 1/2 of a normal work period | ||||||
21 | but not equal to that of a normal work period,
shall be given | ||||||
22 | the option of participating in the available program. If the
| ||||||
23 | employee elects coverage, the State shall contribute on behalf | ||||||
24 | of such employee
to the cost of the employee's benefit and any | ||||||
25 | applicable dependent supplement,
that sum which bears the same | ||||||
26 | percentage as that percentage of time the
employee regularly |
| |||||||
| |||||||
1 | works when compared to normal work period.
| ||||||
2 | (c) The basic non-contributory coverage from the basic | ||||||
3 | program of
group health benefits shall be continued for each | ||||||
4 | employee not in pay status or
on active service by reason of | ||||||
5 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
6 | educational leave of absence or sabbatical leave, or (3)
| ||||||
7 | military leave. This coverage shall continue until
expiration | ||||||
8 | of authorized leave and return to active service, but not to | ||||||
9 | exceed
24 months for leaves under item (1) or (2). This | ||||||
10 | 24-month limitation and the
requirement of returning to active | ||||||
11 | service shall not apply to persons receiving
ordinary or | ||||||
12 | accidental disability benefits or retirement benefits through | ||||||
13 | the
appropriate State retirement system or benefits under the | ||||||
14 | Workers' Compensation
or Occupational Disease Act.
| ||||||
15 | (d) The basic group life insurance coverage shall continue, | ||||||
16 | with
full State contribution, where such person is (1) absent | ||||||
17 | from active
service by reason of disability arising from any | ||||||
18 | cause other than
self-inflicted, (2) on authorized educational | ||||||
19 | leave of absence or
sabbatical leave, or (3) on military leave.
| ||||||
20 | (e) Where the person is in non-pay status for a period in | ||||||
21 | excess of
30 days or on leave of absence, other than by reason | ||||||
22 | of disability,
educational or sabbatical leave, or military | ||||||
23 | leave, such
person may continue coverage only by making | ||||||
24 | personal
payment equal to the amount normally contributed by | ||||||
25 | the State on such person's
behalf. Such payments and coverage | ||||||
26 | may be continued: (1) until such time as
the person returns to |
| |||||||
| |||||||
1 | a status eligible for coverage at State expense, but not
to | ||||||
2 | exceed 24 months or (2) until such person's employment or | ||||||
3 | annuitant status
with the State is terminated (exclusive of any | ||||||
4 | additional service imposed pursuant to law).
| ||||||
5 | (f) The Department shall establish by rule the extent to | ||||||
6 | which other
employee benefits will continue for persons in | ||||||
7 | non-pay status or who are
not in active service.
| ||||||
8 | (g) The State shall not pay the cost of the basic | ||||||
9 | non-contributory
group life insurance, program of health | ||||||
10 | benefits and other employee benefits
for members who are | ||||||
11 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
12 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
13 | survivors shall be paid by the survivors or by the University | ||||||
14 | of Illinois
Cooperative Extension Service, or any combination | ||||||
15 | thereof.
However, the State shall pay the amount of the | ||||||
16 | reduction in the cost of
participation, if any, resulting from | ||||||
17 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
18 | the 91st General Assembly.
| ||||||
19 | (h) Those persons occupying positions with any department | ||||||
20 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
21 | of the Personnel Code
who are not considered employees under | ||||||
22 | this Act shall be given the option
of participating in the | ||||||
23 | programs of group life insurance, health benefits and
other | ||||||
24 | employee benefits. Such persons electing coverage may | ||||||
25 | participate only
by making payment equal to the amount normally | ||||||
26 | contributed by the State for
similarly situated employees. Such |
| |||||||
| |||||||
1 | amounts shall be determined by the
Director. Such payments and | ||||||
2 | coverage may be continued until such time as the
person becomes | ||||||
3 | an employee pursuant to this Act or such person's appointment | ||||||
4 | is
terminated.
| ||||||
5 | (i) Any unit of local government within the State of | ||||||
6 | Illinois
may apply to the Director to have its employees, | ||||||
7 | annuitants, and their
dependents provided group health | ||||||
8 | coverage under this Act on a non-insured
basis. To participate, | ||||||
9 | a unit of local government must agree to enroll
all of its | ||||||
10 | employees, who may select coverage under either the State group
| ||||||
11 | health benefits plan or a health maintenance organization that | ||||||
12 | has
contracted with the State to be available as a health care | ||||||
13 | provider for
employees as defined in this Act. A unit of local | ||||||
14 | government must remit the
entire cost of providing coverage | ||||||
15 | under the State group health benefits plan
or, for coverage | ||||||
16 | under a health maintenance organization, an amount determined
| ||||||
17 | by the Director based on an analysis of the sex, age, | ||||||
18 | geographic location, or
other relevant demographic variables | ||||||
19 | for its employees, except that the unit of
local government | ||||||
20 | shall not be required to enroll those of its employees who are
| ||||||
21 | covered spouses or dependents under this plan or another group | ||||||
22 | policy or plan
providing health benefits as long as (1) an | ||||||
23 | appropriate official from the unit
of local government attests | ||||||
24 | that each employee not enrolled is a covered spouse
or | ||||||
25 | dependent under this plan or another group policy or plan, and | ||||||
26 | (2) at least
50% of the employees are enrolled and the unit of |
| |||||||
| |||||||
1 | local government remits
the entire cost of providing coverage | ||||||
2 | to those employees, except that a
participating school district | ||||||
3 | must have enrolled at least 50% of its full-time
employees who | ||||||
4 | have not waived coverage under the district's group health
plan | ||||||
5 | by participating in a component of the district's cafeteria | ||||||
6 | plan. A
participating school district is not required to enroll | ||||||
7 | a full-time employee
who has waived coverage under the | ||||||
8 | district's health plan, provided that an
appropriate official | ||||||
9 | from the participating school district attests that the
| ||||||
10 | full-time employee has waived coverage by participating in a | ||||||
11 | component of the
district's cafeteria plan. For the purposes of | ||||||
12 | this subsection, "participating
school district" includes a | ||||||
13 | unit of local government whose primary purpose is
education as | ||||||
14 | defined by the Department's rules.
| ||||||
15 | Employees of a participating unit of local government who | ||||||
16 | are not enrolled
due to coverage under another group health | ||||||
17 | policy or plan may enroll in
the event of a qualifying change | ||||||
18 | in status, special enrollment, special
circumstance as defined | ||||||
19 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
20 | participating unit of local government may also elect to cover | ||||||
21 | its
annuitants. Dependent coverage shall be offered on an | ||||||
22 | optional basis, with the
costs paid by the unit of local | ||||||
23 | government, its employees, or some combination
of the two as | ||||||
24 | determined by the unit of local government. The unit of local
| ||||||
25 | government shall be responsible for timely collection and | ||||||
26 | transmission of
dependent premiums.
|
| |||||||
| |||||||
1 | The Director shall annually determine monthly rates of | ||||||
2 | payment, subject
to the following constraints:
| ||||||
3 | (1) In the first year of coverage, the rates shall be | ||||||
4 | equal to the
amount normally charged to State employees for | ||||||
5 | elected optional coverages
or for enrolled dependents | ||||||
6 | coverages or other contributory coverages, or
contributed | ||||||
7 | by the State for basic insurance coverages on behalf of its
| ||||||
8 | employees, adjusted for differences between State | ||||||
9 | employees and employees
of the local government in age, | ||||||
10 | sex, geographic location or other relevant
demographic | ||||||
11 | variables, plus an amount sufficient to pay for the | ||||||
12 | additional
administrative costs of providing coverage to | ||||||
13 | employees of the unit of
local government and their | ||||||
14 | dependents.
| ||||||
15 | (2) In subsequent years, a further adjustment shall be | ||||||
16 | made to reflect
the actual prior years' claims experience | ||||||
17 | of the employees of the unit of
local government.
| ||||||
18 | In the case of coverage of local government employees under | ||||||
19 | a health
maintenance organization, the Director shall annually | ||||||
20 | determine for each
participating unit of local government the | ||||||
21 | maximum monthly amount the unit
may contribute toward that | ||||||
22 | coverage, based on an analysis of (i) the age,
sex, geographic | ||||||
23 | location, and other relevant demographic variables of the
| ||||||
24 | unit's employees and (ii) the cost to cover those employees | ||||||
25 | under the State
group health benefits plan. The Director may | ||||||
26 | similarly determine the
maximum monthly amount each unit of |
| |||||||
| |||||||
1 | local government may contribute toward
coverage of its | ||||||
2 | employees' dependents under a health maintenance organization.
| ||||||
3 | Monthly payments by the unit of local government or its | ||||||
4 | employees for
group health benefits plan or health maintenance | ||||||
5 | organization coverage shall
be deposited in the Local | ||||||
6 | Government Health Insurance Reserve Fund.
| ||||||
7 | The Local Government Health Insurance Reserve Fund is | ||||||
8 | hereby created as a nonappropriated trust fund to be held | ||||||
9 | outside the State Treasury, with the State Treasurer as | ||||||
10 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
11 | shall be a continuing
fund not subject to fiscal year | ||||||
12 | limitations. The Local Government Health Insurance Reserve | ||||||
13 | Fund is not subject to administrative charges or charge-backs, | ||||||
14 | including but not limited to those authorized under Section 8h | ||||||
15 | of the State Finance Act. All revenues arising from the | ||||||
16 | administration of the health benefits program established | ||||||
17 | under this Section shall be deposited into the Local Government | ||||||
18 | Health Insurance Reserve Fund. Any interest earned on moneys in | ||||||
19 | the Local Government Health Insurance Reserve Fund shall be | ||||||
20 | deposited into the Fund. All expenditures from this Fund
shall | ||||||
21 | be used for payments for health care benefits for local | ||||||
22 | government and rehabilitation facility
employees, annuitants, | ||||||
23 | and dependents, and to reimburse the Department or
its | ||||||
24 | administrative service organization for all expenses incurred | ||||||
25 | in the
administration of benefits. No other State funds may be | ||||||
26 | used for these
purposes.
|
| |||||||
| |||||||
1 | A local government employer's participation or desire to | ||||||
2 | participate
in a program created under this subsection shall | ||||||
3 | not limit that employer's
duty to bargain with the | ||||||
4 | representative of any collective bargaining unit
of its | ||||||
5 | employees.
| ||||||
6 | (j) Any rehabilitation facility within the State of | ||||||
7 | Illinois may apply
to the Director to have its employees, | ||||||
8 | annuitants, and their eligible
dependents provided group | ||||||
9 | health coverage under this Act on a non-insured
basis. To | ||||||
10 | participate, a rehabilitation facility must agree to enroll all
| ||||||
11 | of its employees and remit the entire cost of providing such | ||||||
12 | coverage for
its employees, except that the rehabilitation | ||||||
13 | facility shall not be
required to enroll those of its employees | ||||||
14 | who are covered spouses or
dependents under this plan or | ||||||
15 | another group policy or plan providing health
benefits as long | ||||||
16 | as (1) an appropriate official from the rehabilitation
facility | ||||||
17 | attests that each employee not enrolled is a covered spouse or
| ||||||
18 | dependent under this plan or another group policy or plan, and | ||||||
19 | (2) at least
50% of the employees are enrolled and the | ||||||
20 | rehabilitation facility remits
the entire cost of providing | ||||||
21 | coverage to those employees. Employees of a
participating | ||||||
22 | rehabilitation facility who are not enrolled due to coverage
| ||||||
23 | under another group health policy or plan may enroll
in the | ||||||
24 | event of a qualifying change in status, special enrollment, | ||||||
25 | special
circumstance as defined by the Director, or during the | ||||||
26 | annual Benefit Choice
Period. A participating rehabilitation |
| |||||||
| |||||||
1 | facility may also elect
to cover its annuitants. Dependent | ||||||
2 | coverage shall be offered on an optional
basis, with the costs | ||||||
3 | paid by the rehabilitation facility, its employees, or
some | ||||||
4 | combination of the 2 as determined by the rehabilitation | ||||||
5 | facility. The
rehabilitation facility shall be responsible for | ||||||
6 | timely collection and
transmission of dependent premiums.
| ||||||
7 | The Director shall annually determine quarterly rates of | ||||||
8 | payment, subject
to the following constraints:
| ||||||
9 | (1) In the first year of coverage, the rates shall be | ||||||
10 | equal to the amount
normally charged to State employees for | ||||||
11 | elected optional coverages or for
enrolled dependents | ||||||
12 | coverages or other contributory coverages on behalf of
its | ||||||
13 | employees, adjusted for differences between State | ||||||
14 | employees and
employees of the rehabilitation facility in | ||||||
15 | age, sex, geographic location
or other relevant | ||||||
16 | demographic variables, plus an amount sufficient to pay
for | ||||||
17 | the additional administrative costs of providing coverage | ||||||
18 | to employees
of the rehabilitation facility and their | ||||||
19 | dependents.
| ||||||
20 | (2) In subsequent years, a further adjustment shall be | ||||||
21 | made to reflect
the actual prior years' claims experience | ||||||
22 | of the employees of the
rehabilitation facility.
| ||||||
23 | Monthly payments by the rehabilitation facility or its | ||||||
24 | employees for
group health benefits shall be deposited in the | ||||||
25 | Local Government Health
Insurance Reserve Fund.
| ||||||
26 | (k) Any domestic violence shelter or service within the |
| |||||||
| |||||||
1 | State of Illinois
may apply to the Director to have its | ||||||
2 | employees, annuitants, and their
dependents provided group | ||||||
3 | health coverage under this Act on a non-insured
basis. To | ||||||
4 | participate, a domestic violence shelter or service must agree | ||||||
5 | to
enroll all of its employees and pay the entire cost of | ||||||
6 | providing such coverage
for its employees. The domestic | ||||||
7 | violence shelter shall not be required to enroll those of its | ||||||
8 | employees who are covered spouses or dependents under this plan | ||||||
9 | or another group policy or plan providing health benefits as | ||||||
10 | long as (1) an appropriate official from the domestic violence | ||||||
11 | shelter attests that each employee not enrolled is a covered | ||||||
12 | spouse or dependent under this plan or another group policy or | ||||||
13 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
14 | domestic violence shelter remits the entire cost of providing | ||||||
15 | coverage to those employees. Employees of a participating | ||||||
16 | domestic violence shelter who are not enrolled due to coverage | ||||||
17 | under another group health policy or plan may enroll in the | ||||||
18 | event of a qualifying change in status, special enrollment, or | ||||||
19 | special circumstance as defined by the Director or during the | ||||||
20 | annual Benefit Choice Period. A participating domestic | ||||||
21 | violence shelter may also elect
to cover its annuitants. | ||||||
22 | Dependent coverage shall be offered on an optional
basis, with
| ||||||
23 | employees, or some combination of the 2 as determined by the | ||||||
24 | domestic violence
shelter or service. The domestic violence | ||||||
25 | shelter or service shall be
responsible for timely collection | ||||||
26 | and transmission of dependent premiums.
|
| |||||||
| |||||||
1 | The Director shall annually determine rates of payment,
| ||||||
2 | subject to the following constraints:
| ||||||
3 | (1) In the first year of coverage, the rates shall be | ||||||
4 | equal to the
amount normally charged to State employees for | ||||||
5 | elected optional coverages
or for enrolled dependents | ||||||
6 | coverages or other contributory coverages on
behalf of its | ||||||
7 | employees, adjusted for differences between State | ||||||
8 | employees and
employees of the domestic violence shelter or | ||||||
9 | service in age, sex, geographic
location or other relevant | ||||||
10 | demographic variables, plus an amount sufficient
to pay for | ||||||
11 | the additional administrative costs of providing coverage | ||||||
12 | to
employees of the domestic violence shelter or service | ||||||
13 | and their dependents.
| ||||||
14 | (2) In subsequent years, a further adjustment shall be | ||||||
15 | made to reflect
the actual prior years' claims experience | ||||||
16 | of the employees of the domestic
violence shelter or | ||||||
17 | service.
| ||||||
18 | Monthly payments by the domestic violence shelter or | ||||||
19 | service or its employees
for group health insurance shall be | ||||||
20 | deposited in the Local Government Health
Insurance Reserve | ||||||
21 | Fund.
| ||||||
22 | (l) A public community college or entity organized pursuant | ||||||
23 | to the
Public Community College Act may apply to the Director | ||||||
24 | initially to have
only annuitants not covered prior to July 1, | ||||||
25 | 1992 by the district's health
plan provided health coverage | ||||||
26 | under this Act on a non-insured basis. The
community college |
| |||||||
| |||||||
1 | must execute a 2-year contract to participate in the
Local | ||||||
2 | Government Health Plan.
Any annuitant may enroll in the event | ||||||
3 | of a qualifying change in status, special
enrollment, special | ||||||
4 | circumstance as defined by the Director, or during the
annual | ||||||
5 | Benefit Choice Period.
| ||||||
6 | The Director shall annually determine monthly rates of | ||||||
7 | payment subject to
the following constraints: for those | ||||||
8 | community colleges with annuitants
only enrolled, first year | ||||||
9 | rates shall be equal to the average cost to cover
claims for a | ||||||
10 | State member adjusted for demographics, Medicare
| ||||||
11 | participation, and other factors; and in the second year, a | ||||||
12 | further adjustment
of rates shall be made to reflect the actual | ||||||
13 | first year's claims experience
of the covered annuitants.
| ||||||
14 | (l-5) The provisions of subsection (l) become inoperative | ||||||
15 | on July 1, 1999.
| ||||||
16 | (m) The Director shall adopt any rules deemed necessary for
| ||||||
17 | implementation of this amendatory Act of 1989 (Public Act | ||||||
18 | 86-978).
| ||||||
19 | (n) Any child advocacy center within the State of Illinois | ||||||
20 | may apply to the Director to have its employees, annuitants, | ||||||
21 | and their dependents provided group health coverage under this | ||||||
22 | Act on a non-insured basis. To participate, a child advocacy | ||||||
23 | center must agree to enroll all of its employees and pay the | ||||||
24 | entire cost of providing coverage for its employees. The child
| ||||||
25 | advocacy center shall not be required to enroll those of its
| ||||||
26 | employees who are covered spouses or dependents under this plan
|
| |||||||
| |||||||
1 | or another group policy or plan providing health benefits as
| ||||||
2 | long as (1) an appropriate official from the child advocacy
| ||||||
3 | center attests that each employee not enrolled is a covered
| ||||||
4 | spouse or dependent under this plan or another group policy or
| ||||||
5 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
6 | child advocacy center remits the entire cost of providing | ||||||
7 | coverage to those employees. Employees of a participating child | ||||||
8 | advocacy center who are not enrolled due to coverage under | ||||||
9 | another group health policy or plan may enroll in the event of | ||||||
10 | a qualifying change in status, special enrollment, or special | ||||||
11 | circumstance as defined by the Director or during the annual | ||||||
12 | Benefit Choice Period. A participating child advocacy center | ||||||
13 | may also elect to cover its annuitants. Dependent coverage | ||||||
14 | shall be offered on an optional basis, with the costs paid by | ||||||
15 | the child advocacy center, its employees, or some combination | ||||||
16 | of the 2 as determined by the child advocacy center. The child | ||||||
17 | advocacy center shall be responsible for timely collection and | ||||||
18 | transmission of dependent premiums. | ||||||
19 | The Director shall annually determine rates of payment, | ||||||
20 | subject to the following constraints: | ||||||
21 | (1) In the first year of coverage, the rates shall be | ||||||
22 | equal to the amount normally charged to State employees for | ||||||
23 | elected optional coverages or for enrolled dependents | ||||||
24 | coverages or other contributory coverages on behalf of its | ||||||
25 | employees, adjusted for differences between State | ||||||
26 | employees and employees of the child advocacy center in |
| |||||||
| |||||||
1 | age, sex, geographic location, or other relevant | ||||||
2 | demographic variables, plus an amount sufficient to pay for | ||||||
3 | the additional administrative costs of providing coverage | ||||||
4 | to employees of the child advocacy center and their | ||||||
5 | dependents. | ||||||
6 | (2) In subsequent years, a further adjustment shall be | ||||||
7 | made to reflect the actual prior years' claims experience | ||||||
8 | of the employees of the child advocacy center. | ||||||
9 | Monthly payments by the child advocacy center or its | ||||||
10 | employees for group health insurance shall be deposited into | ||||||
11 | the Local Government Health Insurance Reserve Fund. | ||||||
12 | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
| ||||||
13 | Section 10. The Illinois Pension Code is amended by | ||||||
14 | changing Sections 1-160, 2-162, 14-152.1, 15-108.1, 15-108.2, | ||||||
15 | 15-198, 16-203, 18-124, 18-125, 18-125.1, 18-127, 18-128.01, | ||||||
16 | 18-133, 18-169, 20-121, 20-123, 20-124, and 20-125 and by | ||||||
17 | adding Sections 2-105.3, 2-165.5, 14-103.41, 14-103.42, | ||||||
18 | 14-103.43, 14-155.5, 15-108.3, 15-200.5, 16-106.40, 16-106.41, | ||||||
19 | 16-106.42, 16-205.5, 18-110.1, 18-110.2, 18-110.3, and | ||||||
20 | 18-121.5 as follows:
| ||||||
21 | (40 ILCS 5/1-160)
| ||||||
22 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
23 | which has been held unconstitutional) | ||||||
24 | Sec. 1-160. Provisions applicable to new hires. |
| |||||||
| |||||||
1 | (a) The provisions of this Section apply to a person who, | ||||||
2 | on or after January 1, 2011, first becomes a member or a | ||||||
3 | participant under any reciprocal retirement system or pension | ||||||
4 | fund established under this Code, other than a retirement | ||||||
5 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
6 | 15 or 18 of this Code, notwithstanding any other provision of | ||||||
7 | this Code to the contrary, but do not apply to any self-managed | ||||||
8 | plan established under this Code, to any person with respect to | ||||||
9 | service as a sheriff's law enforcement employee under Article | ||||||
10 | 7, or to any participant of the retirement plan established | ||||||
11 | under Section 22-101. Notwithstanding anything to the contrary | ||||||
12 | in this Section, for purposes of this Section, a person who | ||||||
13 | participated in a retirement system under Article 15 prior to | ||||||
14 | January 1, 2011 shall be deemed a person who first became a | ||||||
15 | member or participant prior to January 1, 2011 under any | ||||||
16 | retirement system or pension fund subject to this Section. The | ||||||
17 | changes made to this Section by Public Act 98-596 this | ||||||
18 | amendatory Act of the 98th General Assembly are a clarification | ||||||
19 | of existing law and are intended to be retroactive to January | ||||||
20 | 1, 2011 ( the effective date of Public Act 96-889 ) , | ||||||
21 | notwithstanding the provisions of Section 1-103.1 of this Code. | ||||||
22 | The provisions of this Section do not apply to service | ||||||
23 | under a Tier 3 plan established under Article 2, 14, 15, 16, or | ||||||
24 | 18 of this Code. | ||||||
25 | (b) "Final average salary" means the average monthly (or | ||||||
26 | annual) salary obtained by dividing the total salary or |
| |||||||
| |||||||
1 | earnings calculated under the Article applicable to the member | ||||||
2 | or participant during the 96 consecutive months (or 8 | ||||||
3 | consecutive years) of service within the last 120 months (or 10 | ||||||
4 | years) of service in which the total salary or earnings | ||||||
5 | calculated under the applicable Article was the highest by the | ||||||
6 | number of months (or years) of service in that period. For the | ||||||
7 | purposes of a person who first becomes a member or participant | ||||||
8 | of any retirement system or pension fund to which this Section | ||||||
9 | applies on or after January 1, 2011, in this Code, "final | ||||||
10 | average salary" shall be substituted for the following: | ||||||
11 | (1) In Article 7 (except for service as sheriff's law | ||||||
12 | enforcement employees), "final rate of earnings". | ||||||
13 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
14 | annual salary for any 4 consecutive years within the last | ||||||
15 | 10 years of service immediately preceding the date of | ||||||
16 | withdrawal". | ||||||
17 | (3) In Article 13, "average final salary". | ||||||
18 | (4) In Article 14, "final average compensation". | ||||||
19 | (5) In Article 17, "average salary". | ||||||
20 | (6) In Section 22-207, "wages or salary received by him | ||||||
21 | at the date of retirement or discharge". | ||||||
22 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
23 | this Code (including without limitation the calculation of | ||||||
24 | benefits and employee contributions), the annual earnings, | ||||||
25 | salary, or wages (based on the plan year) of a member or | ||||||
26 | participant to whom this Section applies shall not exceed |
| |||||||
| |||||||
1 | $106,800; however, that amount shall annually thereafter be | ||||||
2 | increased by the lesser of (i) 3% of that amount, including all | ||||||
3 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
4 | percentage increase (but not less than zero) in the consumer | ||||||
5 | price index-u
for the 12 months ending with the September | ||||||
6 | preceding each November 1, including all previous adjustments. | ||||||
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 | (c) A member or participant is entitled to a retirement
| ||||||
17 | annuity upon written application if he or she has attained age | ||||||
18 | 67 (beginning January 1, 2015, age 65 with respect to service | ||||||
19 | under Article 12 of this Code that is subject to this Section) | ||||||
20 | and has at least 10 years of service credit and is otherwise | ||||||
21 | eligible under the requirements of the applicable Article. | ||||||
22 | A member or participant who has attained age 62 (beginning | ||||||
23 | January 1, 2015, age 60 with respect to service under Article | ||||||
24 | 12 of this Code that is subject to this Section) and has at | ||||||
25 | least 10 years of service credit and is otherwise eligible | ||||||
26 | under the requirements of the applicable Article may elect to |
| |||||||
| |||||||
1 | receive the lower retirement annuity provided
in subsection (d) | ||||||
2 | of this Section. | ||||||
3 | (d) The retirement annuity of a member or participant who | ||||||
4 | is retiring after attaining age 62 (beginning January 1, 2015, | ||||||
5 | age 60 with respect to service under Article 12 of this Code | ||||||
6 | that is subject to this Section) with at least 10 years of | ||||||
7 | service credit shall be reduced by one-half
of 1% for each full | ||||||
8 | month that the member's age is under age 67 (beginning January | ||||||
9 | 1, 2015, age 65 with respect to service under Article 12 of | ||||||
10 | this Code that is subject to this Section). | ||||||
11 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
12 | subject to annual increases on the January 1 occurring either | ||||||
13 | on or after the attainment of age 67 (beginning January 1, | ||||||
14 | 2015, age 65 with respect to service under Article 12 of this | ||||||
15 | Code that is subject to this Section) or the first anniversary | ||||||
16 | of the annuity start date, whichever is later. Each annual | ||||||
17 | increase shall be calculated at 3% or one-half the annual | ||||||
18 | unadjusted percentage increase (but not less than zero) in the | ||||||
19 | consumer price index-u for the 12 months ending with the | ||||||
20 | September preceding each November 1, whichever is less, of the | ||||||
21 | originally granted retirement annuity. If the annual | ||||||
22 | unadjusted percentage change in the consumer price index-u for | ||||||
23 | the 12 months ending with the September preceding each November | ||||||
24 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
25 | increased. | ||||||
26 | (f) The initial survivor's or widow's annuity of an |
| |||||||
| |||||||
1 | otherwise eligible survivor or widow of a retired member or | ||||||
2 | participant who first became a member or participant on or | ||||||
3 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
4 | retired member's or participant's retirement annuity at the | ||||||
5 | date of death. In the case of the death of a member or | ||||||
6 | participant who has not retired and who first became a member | ||||||
7 | or participant on or after January 1, 2011, eligibility for a | ||||||
8 | survivor's or widow's annuity shall be determined by the | ||||||
9 | applicable Article of this Code. The initial benefit shall be | ||||||
10 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
11 | child's annuity of an otherwise eligible child shall be in the | ||||||
12 | amount prescribed under each Article if applicable. Any | ||||||
13 | survivor's or widow's annuity shall be increased (1) on each | ||||||
14 | January 1 occurring on or after the commencement of the annuity | ||||||
15 | if
the deceased member died while receiving a retirement | ||||||
16 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
17 | after the first anniversary
of the commencement of the annuity. | ||||||
18 | Each annual increase shall be calculated at 3% or one-half the | ||||||
19 | annual unadjusted percentage increase (but not less than zero) | ||||||
20 | in the consumer price index-u for the 12 months ending with the | ||||||
21 | September preceding each November 1, whichever is less, of the | ||||||
22 | originally granted survivor's annuity. If the annual | ||||||
23 | unadjusted percentage change in the consumer price index-u for | ||||||
24 | the 12 months ending with the September preceding each November | ||||||
25 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
26 | increased. |
| |||||||
| |||||||
1 | (g) The benefits in Section 14-110 apply only if the person | ||||||
2 | is a State policeman, a fire fighter in the fire protection | ||||||
3 | service of a department, or a security employee of the | ||||||
4 | Department of Corrections or the Department of Juvenile | ||||||
5 | Justice, as those terms are defined in subsection (b) of | ||||||
6 | Section 14-110. A person who meets the requirements of this | ||||||
7 | Section is entitled to an annuity calculated under the | ||||||
8 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
9 | retirement annuity, only if the person has withdrawn from | ||||||
10 | service with not less than 20
years of eligible creditable | ||||||
11 | service and has attained age 60, regardless of whether
the | ||||||
12 | attainment of age 60 occurs while the person is
still in | ||||||
13 | service. | ||||||
14 | (h) If a person who first becomes a member or a participant | ||||||
15 | of a retirement system or pension fund subject to this Section | ||||||
16 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
17 | or retirement pension under that system or fund and becomes a | ||||||
18 | member or participant under any other system or fund created by | ||||||
19 | this Code and is employed on a full-time basis, except for | ||||||
20 | those members or participants exempted from the provisions of | ||||||
21 | this Section under subsection (a) of this Section, then the | ||||||
22 | person's retirement annuity or retirement pension under that | ||||||
23 | system or fund shall be suspended during that employment. Upon | ||||||
24 | termination of that employment, the person's retirement | ||||||
25 | annuity or retirement pension payments shall resume and be | ||||||
26 | recalculated if recalculation is provided for under the |
| |||||||
| |||||||
1 | applicable Article of this Code. | ||||||
2 | If a person who first becomes a member of a retirement | ||||||
3 | system or pension fund subject to this Section on or after | ||||||
4 | January 1, 2012 and is receiving a retirement annuity or | ||||||
5 | retirement pension under that system or fund and accepts on a | ||||||
6 | contractual basis a position to provide services to a | ||||||
7 | governmental entity from which he or she has retired, then that | ||||||
8 | person's annuity or retirement pension earned as an active | ||||||
9 | employee of the employer shall be suspended during that | ||||||
10 | contractual service. A person receiving an annuity or | ||||||
11 | retirement pension under this Code shall notify the pension | ||||||
12 | fund or retirement system from which he or she is receiving an | ||||||
13 | annuity or retirement pension, as well as his or her | ||||||
14 | contractual employer, of his or her retirement status before | ||||||
15 | accepting contractual employment. A person who fails to submit | ||||||
16 | such notification shall be guilty of a Class A misdemeanor and | ||||||
17 | required to pay a fine of $1,000. Upon termination of that | ||||||
18 | contractual employment, the person's retirement annuity or | ||||||
19 | retirement pension payments shall resume and, if appropriate, | ||||||
20 | be recalculated under the applicable provisions of this Code. | ||||||
21 | (i) (Blank). | ||||||
22 | (j) In the case of a conflict between the provisions of | ||||||
23 | this Section and any other provision of this Code, the | ||||||
24 | provisions of this Section shall control.
| ||||||
25 | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | ||||||
26 | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-105.3 new) | ||||||
2 | Sec. 2-105.3. Tier 1 participant; Tier 2 participant; Tier | ||||||
3 | 3 participant. | ||||||
4 | "Tier 1 participant": A participant who first became a | ||||||
5 | participant before January 1, 2011. | ||||||
6 | In the case of a Tier 1 participant who elects to | ||||||
7 | participate in the Tier 3 plan under Section 2-165.5 of this | ||||||
8 | Code, that participant shall be deemed a Tier 1 participant | ||||||
9 | only with respect to service performed or established before | ||||||
10 | the effective date of that election. | ||||||
11 | "Tier 2 participant": A participant who first became a | ||||||
12 | participant on or after January 1, 2011. | ||||||
13 | In the case of a Tier 2 participant who elects to | ||||||
14 | participate in the Tier 3 plan under Section 2-165.5 of this | ||||||
15 | Code, that Tier 2 member shall be deemed a Tier 2 member only | ||||||
16 | with respect to service performed or established before the | ||||||
17 | effective date of that election. | ||||||
18 | "Tier 3 participant": A participant who first becomes a | ||||||
19 | participant on or after July 1, 2018 or a Tier 1 or Tier 2 | ||||||
20 | participant who elects to participate in the Tier 3 plan under | ||||||
21 | Section 2-165.5 of this Code, but only with respect to service | ||||||
22 | performed on or after the effective date of that election.
| ||||||
23 | (40 ILCS 5/2-162) | ||||||
24 | (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 100th 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 5/2-165.5 new) | ||||||
4 | Sec. 2-165.5. Tier 3 plan. | ||||||
5 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
6 | a Tier 3 plan. The Tier 3 plan developed under this Section | ||||||
7 | shall be a plan that aggregates State and employee | ||||||
8 | contributions in individual participant accounts which, after | ||||||
9 | meeting any other requirements, are used for payouts after | ||||||
10 | retirement in accordance with this Section and any other | ||||||
11 | applicable laws. | ||||||
12 | As used in this Section, "defined benefit plan" means the | ||||||
13 | retirement plan available under this Article to Tier 1 or Tier | ||||||
14 | 2 participants who have not made the election authorized under | ||||||
15 | this Section. | ||||||
16 | (1) All persons who begin to participate in this System | ||||||
17 | on or after July 1, 2018 shall participate in the Tier 3 | ||||||
18 | plan rather than the defined benefit plan. | ||||||
19 | (2) A participant in the Tier 3 plan shall pay employee | ||||||
20 | contributions at a rate determined by the participant, but | ||||||
21 | not less than 3% of salary and not more than a percentage | ||||||
22 | of salary determined by the Board in accordance with the | ||||||
23 | requirements of State and federal law. | ||||||
24 | (3) State contributions shall be paid into the accounts | ||||||
25 | of all participants in the Tier 3 plan at a uniform rate, |
| |||||||
| |||||||
1 | expressed as a percentage of salary and determined for each | ||||||
2 | year. This rate shall be no higher than 7.6% of salary and | ||||||
3 | shall be no lower than 3% of salary. The State shall adjust | ||||||
4 | this rate annually. | ||||||
5 | (4) The Tier 3 plan shall require 5 years of | ||||||
6 | participation in the Tier 3 plan before vesting in State | ||||||
7 | contributions. If the participant fails to vest in them, | ||||||
8 | the State contributions, and the earnings thereon, shall be | ||||||
9 | forfeited. | ||||||
10 | (5) The Tier 3 plan shall provide a variety of options | ||||||
11 | for investments. These options shall include investments | ||||||
12 | handled by the Illinois State Board of Investment as well | ||||||
13 | as private sector investment options. | ||||||
14 | (6) The Tier 3 plan shall provide a variety of options | ||||||
15 | for payouts to participants in the Tier 3 plan who are no | ||||||
16 | longer active in the System and their survivors. | ||||||
17 | (7) To the extent authorized under federal law and as | ||||||
18 | authorized by the System, the plan shall allow former | ||||||
19 | participants in the plan to transfer or roll over employee | ||||||
20 | and vested State contributions, and the earnings thereon, | ||||||
21 | from the Tier 3 plan into other qualified retirement plans. | ||||||
22 | (8) The System shall reduce the employee contributions | ||||||
23 | credited to the participant's Tier 3 plan account by an | ||||||
24 | amount determined by the System to cover the cost of | ||||||
25 | offering these benefits and any applicable administrative | ||||||
26 | fees. |
| |||||||
| |||||||
1 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
2 | participant of this System may elect, in writing, to cease | ||||||
3 | accruing benefits in the defined benefit plan and begin | ||||||
4 | accruing benefits for future service in the Tier 3 plan. The | ||||||
5 | election to participate in the Tier 3 plan is voluntary and | ||||||
6 | irrevocable. | ||||||
7 | (1) Service credit under the Tier 3 plan may be used | ||||||
8 | for determining retirement eligibility under the defined | ||||||
9 | benefit plan. | ||||||
10 | (2) The System shall make a good faith effort to | ||||||
11 | contact all active Tier 1 and Tier 2 participants who are | ||||||
12 | eligible to participate in the Tier 3 plan. The System | ||||||
13 | shall mail information describing the option to join the | ||||||
14 | Tier 3 plan to each of these employees to his or her last | ||||||
15 | known address on file with
the System. If the employee is | ||||||
16 | not responsive to other means of contact, it is sufficient | ||||||
17 | for the System to publish the details of the option on its | ||||||
18 | website. | ||||||
19 | (3) Upon request for further information describing | ||||||
20 | the option, the System shall provide employees with | ||||||
21 | information from the System before exercising the option to | ||||||
22 | join the plan, including information on the impact to their | ||||||
23 | benefits and service. The individual consultation shall | ||||||
24 | include projections of the participant's defined benefits | ||||||
25 | at retirement or earlier termination of service and the | ||||||
26 | value of the participant's account at retirement or earlier |
| |||||||
| |||||||
1 | termination of service. The System shall not provide advice | ||||||
2 | or counseling with respect to whether the employee should | ||||||
3 | exercise the option. The System shall inform Tier 1 and | ||||||
4 | Tier 2 participants who are eligible to participate in the | ||||||
5 | Tier 3 plan that they may also wish to obtain information | ||||||
6 | and counsel relating to their option from any other | ||||||
7 | available source, including but not limited to private | ||||||
8 | counsel and financial advisors. | ||||||
9 | (b-5) A Tier 1 or Tier 2 participant who elects to | ||||||
10 | participate in the Tier 3 plan may irrevocably elect to | ||||||
11 | terminate all participation in the defined benefit plan. Upon | ||||||
12 | that election, the System shall transfer to the participant's | ||||||
13 | individual account an amount equal to the amount of | ||||||
14 | contribution refund that the participant would be eligible to | ||||||
15 | receive if the member terminated employment on that date and | ||||||
16 | elected a refund of contributions, including the prescribed | ||||||
17 | rate of interest for the respective years. The System shall | ||||||
18 | make the transfer as a tax free transfer in accordance with | ||||||
19 | Internal Revenue Service guidelines, for purposes of funding | ||||||
20 | the amount credited to the participant's individual account. | ||||||
21 | (c) In no event shall the System, its staff, its authorized | ||||||
22 | representatives, or the Board be liable for any information | ||||||
23 | given to an employee under this Section. The System may | ||||||
24 | coordinate with the Illinois Department of Central Management | ||||||
25 | Services and other retirement systems administering a Tier 3 | ||||||
26 | plan in accordance with this amendatory Act of the 100th |
| |||||||
| |||||||
1 | General Assembly to provide information concerning the impact | ||||||
2 | of the Tier 3 plan set forth in this Section. | ||||||
3 | (d) Notwithstanding any other provision of this Section, no | ||||||
4 | person shall begin participating in the Tier 3 plan until it | ||||||
5 | has attained qualified plan status and received all necessary | ||||||
6 | approvals from the U.S. Internal Revenue Service. | ||||||
7 | (e) The System shall report on its progress under this | ||||||
8 | Section, including the available details of the Tier 3 plan and | ||||||
9 | the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
10 | participants about the plan, to the Governor and the General | ||||||
11 | Assembly on or before January 15, 2018. | ||||||
12 | (f) The Illinois State Board of Investment shall be the | ||||||
13 | plan sponsor for the Tier 3 plan established under this | ||||||
14 | Section. | ||||||
15 | (g) The intent of this amendatory Act of the 100th General | ||||||
16 | Assembly is to ensure that the State's normal cost of | ||||||
17 | participation in the Tier 3 plan is similar, and if possible | ||||||
18 | equal, to the State's normal cost of participation in the | ||||||
19 | defined benefit plan, unless a lower State's normal cost is | ||||||
20 | necessary to ensure cost neutrality.
| ||||||
21 | (40 ILCS 5/14-103.41 new) | ||||||
22 | Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member of | ||||||
23 | this System who first became a member or participant before | ||||||
24 | January 1, 2011 under any reciprocal retirement system or | ||||||
25 | pension fund established under this Code other than a |
| |||||||
| |||||||
1 | retirement system or pension fund established under Article 2, | ||||||
2 | 3, 4, 5, 6, or 18 of this Code. | ||||||
3 | In the case of a Tier 1 member who elects to participate in
| ||||||
4 | the Tier 3 plan under Section 14-155.5 of this Code, that Tier
| ||||||
5 | 1 member shall be deemed a Tier 1 member only with respect to
| ||||||
6 | service performed or established before the effective date of
| ||||||
7 | that election.
| ||||||
8 | (40 ILCS 5/14-103.42 new) | ||||||
9 | Sec. 14-103.42. Tier 2 member. "Tier 2 member": A member of | ||||||
10 | this System who first becomes a member under this Article on or | ||||||
11 | after January 1, 2011 and who is not a Tier 1 member. | ||||||
12 | In the case of a Tier 2 member who elects to participate in | ||||||
13 | the Tier 3 plan under Section 14-155.5 of this Code, that Tier | ||||||
14 | 2 member shall be deemed a Tier 2 member only with respect to | ||||||
15 | service performed or established before the effective date of | ||||||
16 | that election.
| ||||||
17 | (40 ILCS 5/14-103.43 new) | ||||||
18 | Sec. 14-103.43. Tier 3 member. "Tier 3 member": A member of | ||||||
19 | this System who first becomes a member on or after July 1, 2018 | ||||||
20 | or a Tier 1 or Tier 2 member who elects to participate in the | ||||||
21 | Tier 3 plan under Section 14-155.5 of this Code, but only with | ||||||
22 | respect to service performed on or after the effective date of | ||||||
23 | that election.
|
| |||||||
| |||||||
1 | (40 ILCS 5/14-152.1) | ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been held unconstitutional)
| ||||||
4 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
5 | increases. | ||||||
6 | (a) As used in this Section, "new benefit increase" means | ||||||
7 | an increase in the amount of any benefit provided under this | ||||||
8 | Article, or an expansion of the conditions of eligibility for | ||||||
9 | any benefit under this Article, that results from an amendment | ||||||
10 | to this Code that takes effect after June 1, 2005 (the | ||||||
11 | effective date of Public Act 94-4). "New benefit increase", | ||||||
12 | however, does not include any benefit increase resulting from | ||||||
13 | the changes made to this Article by Public Act 96-37 or this | ||||||
14 | amendatory Act of the 100th General Assembly this amendatory | ||||||
15 | Act of the 96th General Assembly .
| ||||||
16 | (b) Notwithstanding any other provision of this Code or any | ||||||
17 | subsequent amendment to this Code, every new benefit increase | ||||||
18 | is subject to this Section and shall be deemed to be granted | ||||||
19 | only in conformance with and contingent upon compliance with | ||||||
20 | the provisions of this Section.
| ||||||
21 | (c) The Public Act enacting a new benefit increase must | ||||||
22 | identify and provide for payment to the System of additional | ||||||
23 | funding at least sufficient to fund the resulting annual | ||||||
24 | increase in cost to the System as it accrues. | ||||||
25 | Every new benefit increase is contingent upon the General | ||||||
26 | Assembly providing the additional funding required under this |
| |||||||
| |||||||
1 | subsection. The Commission on Government Forecasting and | ||||||
2 | Accountability shall analyze whether adequate additional | ||||||
3 | funding has been provided for the new benefit increase and | ||||||
4 | shall report its analysis to the Public Pension Division of the | ||||||
5 | Department of Financial and Professional Regulation. A new | ||||||
6 | benefit increase created by a Public Act that does not include | ||||||
7 | the additional funding required under this subsection is null | ||||||
8 | and void. If the Public Pension Division determines that the | ||||||
9 | additional funding provided for a new benefit increase under | ||||||
10 | this subsection is or has become inadequate, it may so certify | ||||||
11 | to the Governor and the State Comptroller and, in the absence | ||||||
12 | of corrective action by the General Assembly, the new benefit | ||||||
13 | increase shall expire at the end of the fiscal year in which | ||||||
14 | the certification is made.
| ||||||
15 | (d) Every new benefit increase shall expire 5 years after | ||||||
16 | its effective date or on such earlier date as may be specified | ||||||
17 | in the language enacting the new benefit increase or provided | ||||||
18 | under subsection (c). This does not prevent the General | ||||||
19 | Assembly from extending or re-creating a new benefit increase | ||||||
20 | by law. | ||||||
21 | (e) Except as otherwise provided in the language creating | ||||||
22 | the new benefit increase, a new benefit increase that expires | ||||||
23 | under this Section continues to apply to persons who applied | ||||||
24 | and qualified for the affected benefit while the new benefit | ||||||
25 | increase was in effect and to the affected beneficiaries and | ||||||
26 | alternate payees of such persons, but does not apply to any |
| |||||||
| |||||||
1 | other person, including without limitation a person who | ||||||
2 | continues in service after the expiration date and did not | ||||||
3 | apply and qualify for the affected benefit while the new | ||||||
4 | benefit increase was in effect.
| ||||||
5 | (Source: P.A. 96-37, eff. 7-13-09.)
| ||||||
6 | (40 ILCS 5/14-155.5 new) | ||||||
7 | Sec. 14-155.5. Tier 3 plan. | ||||||
8 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
9 | a Tier 3 plan. The Tier 3 plan developed under this Section | ||||||
10 | shall be a plan that aggregates State and employee | ||||||
11 | contributions in individual participant accounts which, after | ||||||
12 | meeting any other requirements, are used for payouts after | ||||||
13 | retirement in accordance with this Section and any other | ||||||
14 | applicable laws. | ||||||
15 | As used in this Section, "defined benefit plan" means the | ||||||
16 | retirement plan available under this Article to Tier 1 or Tier | ||||||
17 | 2 members who have not made the election authorized under this | ||||||
18 | Section. | ||||||
19 | (1) All persons who begin to participate in this System | ||||||
20 | on or after July 1, 2018 shall participate in the Tier 3 | ||||||
21 | plan rather than the defined benefit plan. | ||||||
22 | (2) A participant in the Tier 3 plan shall pay employee | ||||||
23 | contributions at a rate determined by the participant, but | ||||||
24 | not less than 3% of compensation and not more than a | ||||||
25 | percentage of compensation determined by the board in |
| |||||||
| |||||||
1 | accordance with the requirements of State and federal law. | ||||||
2 | (3) State contributions shall be paid into the accounts | ||||||
3 | of all participants in the Tier 3 plan at a uniform rate, | ||||||
4 | expressed as a percentage of compensation and determined | ||||||
5 | for each year. This rate shall be no higher than 7.6% of | ||||||
6 | compensation and shall be no lower than 3% of compensation. | ||||||
7 | The State shall adjust this rate annually. | ||||||
8 | (4) The Tier 3 plan shall require 5 years of | ||||||
9 | participation in the Tier 3 plan before vesting in State | ||||||
10 | contributions. If the participant fails to vest in them, | ||||||
11 | the State contributions, and the earnings thereon, shall be | ||||||
12 | forfeited. | ||||||
13 | (5) The Tier 3 plan may provide for participants in the | ||||||
14 | plan to be eligible for the defined disability benefits | ||||||
15 | available to other participants under this Article. If it | ||||||
16 | does, the System shall reduce the employee contributions | ||||||
17 | credited to the member's Tier 3 plan account by an amount | ||||||
18 | determined by the System to cover the cost of offering such | ||||||
19 | benefits. | ||||||
20 | (6) The Tier 3 plan shall provide a variety of options | ||||||
21 | for investments. These options shall include investments | ||||||
22 | handled by the Illinois State Board of Investment as well | ||||||
23 | as private sector investment options. | ||||||
24 | (7) The Tier 3 plan shall provide a variety of options | ||||||
25 | for payouts to participants in the Tier 3 plan who are no | ||||||
26 | longer active in the System and their 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 | from the Tier 3 plan into other qualified retirement plans. | ||||||
6 | (9) The System shall reduce the employee contributions | ||||||
7 | credited to the member's Tier 3 plan account by an amount | ||||||
8 | determined by the System to cover the cost of offering | ||||||
9 | these benefits and any applicable administrative fees. | ||||||
10 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
11 | member of this System may elect, in writing, to cease accruing | ||||||
12 | benefits in the defined benefit plan and begin accruing | ||||||
13 | benefits for future service in the Tier 3 plan. The election to | ||||||
14 | participate in the Tier 3 plan is voluntary and irrevocable. | ||||||
15 | (1) Service credit under the Tier 3 plan may be used | ||||||
16 | for determining retirement eligibility under the defined | ||||||
17 | benefit plan. | ||||||
18 | (2) The System shall make a good faith effort to | ||||||
19 | contact all active Tier 1 and Tier 2 members who are | ||||||
20 | eligible to participate in the Tier 3 plan. The System | ||||||
21 | shall mail information describing the option to join the | ||||||
22 | Tier 3 plan to each of these employees to his or her last | ||||||
23 | known address on file with the System. If the employee is | ||||||
24 | not responsive to other means of contact, it is sufficient | ||||||
25 | for the System to publish the details of the option on its | ||||||
26 | website. |
| |||||||
| |||||||
1 | (3) Upon request for further information describing | ||||||
2 | the option, the System shall provide employees with | ||||||
3 | information from the System before exercising the option to | ||||||
4 | join the plan, including information on the impact to their | ||||||
5 | benefits and service. The individual consultation shall | ||||||
6 | include projections of the member's defined benefits at | ||||||
7 | retirement or earlier termination of service and the value | ||||||
8 | of the member's account at retirement or earlier | ||||||
9 | termination of service. The System shall not provide advice | ||||||
10 | or counseling with respect to whether the employee should | ||||||
11 | exercise the option. The System shall inform Tier 1 and | ||||||
12 | Tier 2 members who are eligible to participate in the Tier | ||||||
13 | 3 plan that they may also wish to obtain information and | ||||||
14 | counsel relating to their option from any other available | ||||||
15 | source, including but not limited to labor organizations, | ||||||
16 | private counsel, and financial advisors. | ||||||
17 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
18 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
19 | participation in the defined benefit plan. Upon that election, | ||||||
20 | the System shall transfer to the member's individual account an | ||||||
21 | amount equal to the amount of contribution refund that the | ||||||
22 | member would be eligible to receive if the member terminated | ||||||
23 | employment on that date and elected a refund of contributions, | ||||||
24 | including regular interest for the respective years. The System | ||||||
25 | shall make the transfer as a tax free transfer in accordance | ||||||
26 | with Internal Revenue Service guidelines, for purposes of |
| |||||||
| |||||||
1 | funding the amount credited to the member's individual account. | ||||||
2 | (c) In no event shall the System, its staff, its authorized | ||||||
3 | representatives, or the Board be liable for any information | ||||||
4 | given to an employee under this Section. The System may | ||||||
5 | coordinate with the Illinois Department of Central Management | ||||||
6 | Services and other retirement systems administering a Tier 3 | ||||||
7 | plan in accordance with this amendatory Act of the 100th | ||||||
8 | General Assembly to provide information concerning the impact | ||||||
9 | of the Tier 3 plan set forth in this Section. | ||||||
10 | (d) Notwithstanding any other provision of this Section, no | ||||||
11 | person shall begin participating in the Tier 3 plan until it | ||||||
12 | has attained qualified plan status and received all necessary | ||||||
13 | approvals from the U.S. Internal Revenue Service. | ||||||
14 | (e) The System shall report on its progress under this | ||||||
15 | Section, including the available details of the Tier 3 plan and | ||||||
16 | the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
17 | members about the plan, to the Governor and the General | ||||||
18 | Assembly on or before January 15, 2018. | ||||||
19 | (f) The Illinois State Board of Investment shall be the | ||||||
20 | plan sponsor for the Tier 3 plan established under this | ||||||
21 | Section. | ||||||
22 | (g) The intent of this amendatory Act of the 100th General | ||||||
23 | Assembly is to ensure that the State's normal cost of | ||||||
24 | participation in the Tier 3 plan is similar, and if possible | ||||||
25 | equal, to the State's normal cost of participation in the | ||||||
26 | defined benefit plan, unless a lower State's normal cost is |
| |||||||
| |||||||
1 | necessary to ensure cost neutrality.
| ||||||
2 | (40 ILCS 5/15-108.1) | ||||||
3 | Sec. 15-108.1. Tier 1 member. "Tier 1 member": A | ||||||
4 | participant or an annuitant of a retirement annuity under this | ||||||
5 | Article, other than a participant in the self-managed plan | ||||||
6 | under Section 15-158.2, who first became a participant or | ||||||
7 | member before January 1, 2011 under any reciprocal retirement | ||||||
8 | system or pension fund established under this Code, other than | ||||||
9 | a retirement system or pension fund established under Articles | ||||||
10 | 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a | ||||||
11 | person who first became a participant under this System before | ||||||
12 | January 1, 2011 and who accepts a refund and is subsequently | ||||||
13 | reemployed by an employer on or after January 1, 2011.
| ||||||
14 | In the case of a Tier 1 member who elects to participate in | ||||||
15 | the Tier 3 plan under Section 15-200.5 of this Code, that Tier | ||||||
16 | 1 member shall be deemed a Tier 1 member only with respect to | ||||||
17 | service performed or established before the effective date of | ||||||
18 | that election. | ||||||
19 | (Source: P.A. 98-92, eff. 7-16-13.)
| ||||||
20 | (40 ILCS 5/15-108.2) | ||||||
21 | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who | ||||||
22 | first becomes a participant under this Article on or after | ||||||
23 | January 1, 2011, other than a person in the self-managed plan | ||||||
24 | established under Section 15-158.2, unless the person is |
| |||||||
| |||||||
1 | otherwise a Tier 1 member. The changes made to this Section by | ||||||
2 | this amendatory Act of the 98th General Assembly are a | ||||||
3 | correction of existing law and are intended to be retroactive | ||||||
4 | to the effective date of Public Act 96-889, notwithstanding the | ||||||
5 | provisions of Section 1-103.1 of this Code.
| ||||||
6 | In the case of a Tier 2 member who elects to participate in | ||||||
7 | the Tier 3 plan under Section 15-200.5 of this Code, that Tier | ||||||
8 | 2 member shall be deemed a Tier 2 member only with respect to | ||||||
9 | service performed or established before the effective date of | ||||||
10 | that election. | ||||||
11 | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
| ||||||
12 | (40 ILCS 5/15-108.3 new) | ||||||
13 | Sec. 15-108.3. Tier 3 member. "Tier 3 member": A person who | ||||||
14 | first becomes a participant under this Article on or after July | ||||||
15 | 1, 2018 or a Tier 1 or Tier 2 member who elects to participate | ||||||
16 | in the Tier 3 plan under Section 15-200.5 of this Code, but | ||||||
17 | only with respect to service performed on or after the | ||||||
18 | effective date of that election.
| ||||||
19 | (40 ILCS 5/15-198) | ||||||
20 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
21 | which has been held unconstitutional)
| ||||||
22 | Sec. 15-198. Application and expiration of new benefit | ||||||
23 | increases. | ||||||
24 | (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 the effective date of this | ||||||
5 | amendatory Act of the 94th General Assembly. "New benefit
| ||||||
6 | increase", however, does not include any benefit increase
| ||||||
7 | resulting from the changes made by this
amendatory Act of the | ||||||
8 | 100th 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.)
| ||||||
25 | (40 ILCS 5/15-200.5 new) |
| |||||||
| |||||||
1 | Sec. 15-200.5. Tier 3 plan. | ||||||
2 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
3 | a Tier 3 plan. The Tier 3 plan developed under this Section | ||||||
4 | shall be a plan that aggregates State and employee | ||||||
5 | contributions in individual participant accounts which, after | ||||||
6 | meeting any other requirements, are used for payouts after | ||||||
7 | retirement in accordance with this Section and any other | ||||||
8 | applicable laws. | ||||||
9 | As used in this Section, "defined benefit plan" means the | ||||||
10 | traditional benefit package or the portable benefit package | ||||||
11 | available under this Article to Tier 1 or Tier 2 members who | ||||||
12 | have not made the election authorized under this Section and do | ||||||
13 | not participate in the self-managed plan under Section | ||||||
14 | 15-158.2. | ||||||
15 | (1) All persons who begin to participate in this System | ||||||
16 | on or after July 1, 2018 shall participate in the Tier 3 | ||||||
17 | plan rather than the defined benefit plan or the | ||||||
18 | self-managed plan under Section 15-158.2. | ||||||
19 | (2) A participant in the Tier 3 plan shall pay employee | ||||||
20 | contributions at a rate determined by the participant, but | ||||||
21 | not less than 3% of earnings and not more than a percentage | ||||||
22 | of earnings determined by the Board in accordance with the | ||||||
23 | requirements of State and federal law. | ||||||
24 | (3) State contributions shall be paid into the accounts | ||||||
25 | of all participants in the Tier 3 plan at a uniform rate, | ||||||
26 | expressed as a percentage of earnings and determined for |
| |||||||
| |||||||
1 | each year. This rate shall be no higher than 7.6% of | ||||||
2 | earnings and shall be no lower than 3% of earnings. The | ||||||
3 | State shall adjust this rate annually. | ||||||
4 | (4) The Tier 3 plan shall require 5 years of | ||||||
5 | participation in the Tier 3 plan before vesting in State | ||||||
6 | contributions. If the participant fails to vest in them, | ||||||
7 | the State contributions, and the earnings thereon, shall be | ||||||
8 | forfeited. | ||||||
9 | (5) The Tier 3 plan may provide for participants in the | ||||||
10 | plan to be eligible for the defined disability benefits | ||||||
11 | available to other participants under this Article. If it | ||||||
12 | does, the System shall reduce the employee contributions | ||||||
13 | credited to the member's Tier 3 plan account by an amount | ||||||
14 | determined by the System to cover the cost of offering such | ||||||
15 | benefits. | ||||||
16 | (6) The Tier 3 plan shall provide a variety of options | ||||||
17 | for investments. These options shall include investments | ||||||
18 | handled by the System as well as private sector investment | ||||||
19 | options. | ||||||
20 | (7) The Tier 3 plan shall provide a variety of options | ||||||
21 | for payouts to participants in the Tier 3 plan who are no | ||||||
22 | longer active in the System and their survivors. | ||||||
23 | (8) To the extent authorized under federal law and as | ||||||
24 | authorized by the System, the plan shall allow former | ||||||
25 | participants in the plan to transfer or roll over employee | ||||||
26 | and vested State contributions, and the earnings thereon, |
| |||||||
| |||||||
1 | from the Tier 3 plan into other qualified retirement plans. | ||||||
2 | (9) The System shall reduce the employee contributions | ||||||
3 | credited to the member's Tier 3 plan account by an amount | ||||||
4 | determined by the System to cover the cost of offering | ||||||
5 | these benefits and any applicable administrative fees. | ||||||
6 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
7 | member of this System may elect, in writing, to cease accruing | ||||||
8 | benefits in the defined benefit plan and begin accruing | ||||||
9 | benefits for future service in the Tier 3 plan. An active Tier | ||||||
10 | 1 or Tier 2 member who elects to cease accruing benefits in his | ||||||
11 | or her defined benefit plan shall be prohibited from purchasing | ||||||
12 | service credit on or after the date of his or her election. A | ||||||
13 | Tier 1 or Tier 2 member who elects to participate in the Tier 3 | ||||||
14 | plan shall not receive interest accruals to his or her Rule 2 | ||||||
15 | benefit on or after the date of his or her election. The | ||||||
16 | election to participate in the Tier 3 plan is voluntary and | ||||||
17 | irrevocable. | ||||||
18 | (1) Service credit under the Tier 3 plan may be used | ||||||
19 | for determining retirement eligibility under the defined | ||||||
20 | benefit plan. | ||||||
21 | (2) The System shall make a good faith effort to | ||||||
22 | contact all active Tier 1 and Tier 2 members who are | ||||||
23 | eligible to participate in the Tier 3 plan. The System | ||||||
24 | shall mail information describing the option to join the | ||||||
25 | Tier 3 plan to each of these employees to his or her last | ||||||
26 | known address on file with the System. If the employee is |
| |||||||
| |||||||
1 | not responsive to other means of contact, it is sufficient | ||||||
2 | for the System to publish the details of the option on its | ||||||
3 | website. | ||||||
4 | (3) Upon request for further information describing | ||||||
5 | the option, the System shall provide employees with | ||||||
6 | information from the System before exercising the option to | ||||||
7 | join the plan, including information on the impact to their | ||||||
8 | benefits and service. The individual consultation shall | ||||||
9 | include projections of the member's defined benefits at | ||||||
10 | retirement or earlier termination of service and the value | ||||||
11 | of the member's account at retirement or earlier | ||||||
12 | termination of service. The System shall not provide advice | ||||||
13 | or counseling with respect to whether the employee should | ||||||
14 | exercise the option. The System shall inform Tier 1 and | ||||||
15 | Tier 2 members who are eligible to participate in the Tier | ||||||
16 | 3 plan that they may also wish to obtain information and | ||||||
17 | counsel relating to their option from any other available | ||||||
18 | source, including but not limited to labor organizations, | ||||||
19 | private counsel, and financial advisors. | ||||||
20 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
21 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
22 | participation in the defined benefit plan. Upon that election, | ||||||
23 | the System shall transfer to the member's individual account an | ||||||
24 | amount equal to the amount of contribution refund that the | ||||||
25 | member would be eligible to receive if the member terminated | ||||||
26 | employment on that date and elected a refund of contributions, |
| |||||||
| |||||||
1 | including interest at the effective rate for the respective | ||||||
2 | years. The System shall make the transfer as a tax free | ||||||
3 | transfer in accordance with Internal Revenue Service | ||||||
4 | guidelines, for purposes of funding the amount credited to the | ||||||
5 | member's individual account. | ||||||
6 | (c) 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 Tier 3 | ||||||
11 | plan in accordance with this amendatory Act of the 100th | ||||||
12 | General Assembly to provide information concerning the impact | ||||||
13 | of the Tier 3 plan set forth in this Section. | ||||||
14 | (d) Notwithstanding any other provision of this Section, no | ||||||
15 | person shall begin participating in the Tier 3 plan until it | ||||||
16 | has attained qualified plan status and received all necessary | ||||||
17 | approvals from the U.S. Internal Revenue Service. | ||||||
18 | (e) The System shall report on its progress under this | ||||||
19 | Section, including the available details of the Tier 3 plan and | ||||||
20 | the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
21 | members about the plan, to the Governor and the General | ||||||
22 | Assembly on or before January 15, 2018. | ||||||
23 | (f) The intent of this amendatory Act of the 100th General | ||||||
24 | Assembly is to ensure that the State's normal cost of | ||||||
25 | participation in the Tier 3 plan is similar, and if possible | ||||||
26 | equal, to the State's normal cost of participation in the |
| |||||||
| |||||||
1 | defined benefit plan, unless a lower State's normal cost is | ||||||
2 | necessary to ensure cost neutrality.
| ||||||
3 | (40 ILCS 5/16-106.40 new) | ||||||
4 | Sec. 16-106.40. Tier 1 member. "Tier 1 member": A member | ||||||
5 | under this Article who first became a member or participant | ||||||
6 | before January 1, 2011 under any reciprocal retirement system | ||||||
7 | or pension fund established under this Code other than a | ||||||
8 | retirement system or pension fund established under Article 2, | ||||||
9 | 3, 4, 5, 6, or 18 of this Code. | ||||||
10 | In the case of a Tier 1 member who elects to participate in | ||||||
11 | the Tier 3 plan under Section 16-205.5 of this Code, that Tier | ||||||
12 | 1 member shall be deemed a Tier 1 member only with respect to | ||||||
13 | service performed or established before the effective date of | ||||||
14 | that election.
| ||||||
15 | (40 ILCS 5/16-106.41 new) | ||||||
16 | Sec. 16-106.41. Tier 2 member. "Tier 2 member": A member of | ||||||
17 | the System who first becomes a member under this Article on or | ||||||
18 | after January 1, 2011 and who is not a Tier 1 member. | ||||||
19 | In the case of a Tier 2 member who elects to participate in | ||||||
20 | the Tier 3 plan under Section 16-205.5 of this Code, the Tier 2 | ||||||
21 | member shall be deemed a Tier 2 member only with respect to | ||||||
22 | service performed or established before the effective date of | ||||||
23 | that election.
|
| |||||||
| |||||||
1 | (40 ILCS 5/16-106.42 new) | ||||||
2 | Sec. 16-106.42. Tier 3 member. "Tier 3 member": A member of | ||||||
3 | the System who first becomes a member under this Article on or | ||||||
4 | after July 1, 2018 or a Tier 1 or Tier 2 member who elects to | ||||||
5 | participate in the Tier 3 plan under Section 16-205.5 of this | ||||||
6 | Code, but only with respect to service performed on or after | ||||||
7 | the effective date of that election.
| ||||||
8 | (40 ILCS 5/16-203) | ||||||
9 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
10 | which has been held unconstitutional)
| ||||||
11 | Sec. 16-203. Application and expiration of new benefit | ||||||
12 | increases. | ||||||
13 | (a) As used in this Section, "new benefit increase" means | ||||||
14 | an increase in the amount of any benefit provided under this | ||||||
15 | Article, or an expansion of the conditions of eligibility for | ||||||
16 | any benefit under this Article, that results from an amendment | ||||||
17 | to this Code that takes effect after June 1, 2005 (the | ||||||
18 | effective date of Public Act 94-4). "New benefit increase", | ||||||
19 | however, does not include any benefit increase resulting from | ||||||
20 | the changes made to this Article by Public Act 95-910 or this | ||||||
21 | amendatory Act of the 100th General Assembly this amendatory | ||||||
22 | Act of the 95th General Assembly . | ||||||
23 | (b) Notwithstanding any other provision of this Code or any | ||||||
24 | subsequent amendment to this Code, every new benefit increase | ||||||
25 | is subject to this Section and shall be deemed to be granted |
| |||||||
| |||||||
1 | only in conformance with and contingent upon compliance with | ||||||
2 | the provisions of this Section.
| ||||||
3 | (c) The Public Act enacting a new benefit increase must | ||||||
4 | identify and provide for payment to the System of additional | ||||||
5 | funding at least sufficient to fund the resulting annual | ||||||
6 | increase in cost to the System as it accrues. | ||||||
7 | Every new benefit increase is contingent upon the General | ||||||
8 | Assembly providing the additional funding required under this | ||||||
9 | subsection. The Commission on Government Forecasting and | ||||||
10 | Accountability shall analyze whether adequate additional | ||||||
11 | funding has been provided for the new benefit increase and | ||||||
12 | shall report its analysis to the Public Pension Division of the | ||||||
13 | Department of Financial and Professional Regulation. A new | ||||||
14 | benefit increase created by a Public Act that does not include | ||||||
15 | the additional funding required under this subsection is null | ||||||
16 | and void. If the Public Pension Division determines that the | ||||||
17 | additional funding provided for a new benefit increase under | ||||||
18 | this subsection is or has become inadequate, it may so certify | ||||||
19 | to the Governor and the State Comptroller and, in the absence | ||||||
20 | of corrective action by the General Assembly, the new benefit | ||||||
21 | increase shall expire at the end of the fiscal year in which | ||||||
22 | the certification is made.
| ||||||
23 | (d) Every new benefit increase shall expire 5 years after | ||||||
24 | its effective date or on such earlier date as may be specified | ||||||
25 | in the language enacting the new benefit increase or provided | ||||||
26 | under subsection (c). This does not prevent the General |
| |||||||
| |||||||
1 | Assembly from extending or re-creating a new benefit increase | ||||||
2 | by law. | ||||||
3 | (e) Except as otherwise provided in the language creating | ||||||
4 | the new benefit increase, a new benefit increase that expires | ||||||
5 | under this Section continues to apply to persons who applied | ||||||
6 | and qualified for the affected benefit while the new benefit | ||||||
7 | increase was in effect and to the affected beneficiaries and | ||||||
8 | alternate payees of such persons, but does not apply to any | ||||||
9 | other person, including without limitation a person who | ||||||
10 | continues in service after the expiration date and did not | ||||||
11 | apply and qualify for the affected benefit while the new | ||||||
12 | benefit increase was in effect.
| ||||||
13 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
14 | (40 ILCS 5/16-205.5 new) | ||||||
15 | Sec. 16-205.5. Tier 3 plan. | ||||||
16 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
17 | a Tier 3 plan. The Tier 3 plan developed under this Section | ||||||
18 | shall be a plan that aggregates State and employee | ||||||
19 | contributions in individual participant accounts which, after | ||||||
20 | meeting any other requirements, are used for payouts after | ||||||
21 | retirement in accordance with this Section and any other | ||||||
22 | applicable laws. | ||||||
23 | As used in this Section, "defined benefit plan" means the | ||||||
24 | retirement plan available under this Article to Tier 1 or Tier | ||||||
25 | 2 members who have not made the election authorized under this |
| |||||||
| |||||||
1 | Section. | ||||||
2 | (1) All persons who begin to participate in this System | ||||||
3 | on or after July 1, 2018 shall participate in the Tier 3 | ||||||
4 | plan rather than the defined benefit plan. | ||||||
5 | (2) A participant in the Tier 3 plan shall pay employee | ||||||
6 | contributions at a rate determined by the participant, but | ||||||
7 | not less than 3% of salary and not more than a percentage | ||||||
8 | of salary determined by the Board in accordance with the | ||||||
9 | requirements of State and federal law. | ||||||
10 | (3) State contributions shall be paid into the accounts | ||||||
11 | of all participants in the Tier 3 plan at a uniform rate, | ||||||
12 | expressed as a percentage of salary and determined for each | ||||||
13 | year. This rate shall be no higher than 7.6% of salary and | ||||||
14 | shall be no lower than 3% of salary. The State shall adjust | ||||||
15 | this rate annually. | ||||||
16 | (4) The Tier 3 plan shall require 5 years of | ||||||
17 | participation in the Tier 3 plan before vesting in State | ||||||
18 | contributions. If the participant fails to vest in them, | ||||||
19 | the State contributions, and the earnings thereon, shall be | ||||||
20 | forfeited. | ||||||
21 | (5) The Tier 3 plan may provide for participants in the | ||||||
22 | plan to be eligible for the defined disability benefits | ||||||
23 | available to other participants under this Article. If it | ||||||
24 | does, the System shall reduce the employee contributions | ||||||
25 | credited to the member's Tier 3 plan account by an amount | ||||||
26 | determined by the System to cover the cost of offering such |
| |||||||
| |||||||
1 | benefits. | ||||||
2 | (6) The Tier 3 plan shall provide a variety of options | ||||||
3 | for investments. These options shall include investments | ||||||
4 | in a fund created by the System and managed in accordance | ||||||
5 | with legal and fiduciary standards, as well as investment | ||||||
6 | options otherwise available. | ||||||
7 | (7) The Tier 3 plan shall provide a variety of options | ||||||
8 | for payouts to participants in the Tier 3 plan who are no | ||||||
9 | longer active in the System and their survivors. | ||||||
10 | (8) To the extent authorized under federal law and as | ||||||
11 | authorized by the System, the plan shall allow former | ||||||
12 | participants in the plan to transfer or roll over employee | ||||||
13 | and vested State contributions, and the earnings thereon, | ||||||
14 | from the Tier 3 plan into other qualified retirement plans. | ||||||
15 | (9) The System shall reduce the employee contributions | ||||||
16 | credited to the member's Tier 3 plan account by an amount | ||||||
17 | determined by the System to cover the cost of offering | ||||||
18 | these benefits and any applicable administrative fees. | ||||||
19 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
20 | member of this System may elect, in writing, to cease accruing | ||||||
21 | benefits in the defined benefit plan and begin accruing | ||||||
22 | benefits for future service in the Tier 3 plan. An active Tier | ||||||
23 | 1 or Tier 2 member who elects to cease accruing benefits in his | ||||||
24 | or her defined benefit plan shall be prohibited from purchasing | ||||||
25 | service credit on or after the date of his or her election. A | ||||||
26 | Tier 1 or Tier 2 member making the irrevocable election |
| |||||||
| |||||||
1 | provided under this subsection shall not receive interest | ||||||
2 | accruals to his or her benefit under paragraph (A) of | ||||||
3 | subsection (a) of Section 16-133 of this Code on or after the | ||||||
4 | date of his or her election. The election to participate in the | ||||||
5 | Tier 3 plan is voluntary and irrevocable. | ||||||
6 | (1) Service credit under the Tier 3 plan may be used | ||||||
7 | for determining retirement eligibility under the defined | ||||||
8 | benefit plan. | ||||||
9 | (2) The System shall make a good faith effort to | ||||||
10 | contact all active Tier 1 and Tier 2 members who are | ||||||
11 | eligible to participate in the Tier 3 plan. The System | ||||||
12 | shall mail information describing the option to join the | ||||||
13 | Tier 3 plan to each of these employees to his or her last | ||||||
14 | known address on file with the System. If the employee is | ||||||
15 | not responsive to other means of contact, it is sufficient | ||||||
16 | for the System to publish the details of the option on its | ||||||
17 | website. | ||||||
18 | (3) Upon request for further information describing | ||||||
19 | the option, the System shall provide employees with | ||||||
20 | information from the System before exercising the option to | ||||||
21 | join the plan, including information on the impact to their | ||||||
22 | benefits and service. The individual consultation shall | ||||||
23 | include projections of the member's defined benefits at | ||||||
24 | retirement or earlier termination of service and the value | ||||||
25 | of the member's account at retirement or earlier | ||||||
26 | termination of service. The System shall not provide advice |
| |||||||
| |||||||
1 | or counseling with respect to whether the employee should | ||||||
2 | exercise the option. The System shall inform Tier 1 and | ||||||
3 | Tier 2 members who are eligible to participate in the Tier | ||||||
4 | 3 plan that they may also wish to obtain information and | ||||||
5 | counsel relating to their option from any other available | ||||||
6 | source, including but not limited to labor organizations, | ||||||
7 | private counsel, and financial advisors. | ||||||
8 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
9 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
10 | participation in the defined benefit plan. Upon that election, | ||||||
11 | the System shall transfer to the member's individual account an | ||||||
12 | amount equal to the amount of contribution refund that the | ||||||
13 | member would be eligible to receive if the member terminated | ||||||
14 | employment on that date and elected a refund of contributions, | ||||||
15 | including regular interest for the respective years. The System | ||||||
16 | shall make the transfer as a tax free transfer in accordance | ||||||
17 | with Internal Revenue Service guidelines, for purposes of | ||||||
18 | funding the amount credited to the member's individual account. | ||||||
19 | (c) In no event shall the System, its staff, its authorized | ||||||
20 | representatives, or the Board be liable for any information | ||||||
21 | given to an employee under this Section. The System may | ||||||
22 | coordinate with the Illinois Department of Central Management | ||||||
23 | Services and other retirement systems administering a Tier 3 | ||||||
24 | plan in accordance with this amendatory Act of the 100th | ||||||
25 | General Assembly to provide information concerning the impact | ||||||
26 | of the Tier 3 plan set forth in this Section. |
| |||||||
| |||||||
1 | (d) Notwithstanding any other provision of this Section, no | ||||||
2 | person shall begin participating in the Tier 3 plan until it | ||||||
3 | has attained qualified plan status and received all necessary | ||||||
4 | approvals from the U.S. Internal Revenue Service. | ||||||
5 | (e) The System shall report on its progress under this | ||||||
6 | Section, including the available details of the Tier 3 plan and | ||||||
7 | the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
8 | members about the plan, to the Governor and the General | ||||||
9 | Assembly on or before January 15, 2018. | ||||||
10 | (f) The intent of this amendatory Act of the 100th General | ||||||
11 | Assembly is to ensure that the State's normal cost of | ||||||
12 | participation in the Tier 3 plan is similar, and if possible | ||||||
13 | equal, to the State's normal cost of participation in the | ||||||
14 | defined benefit plan, unless a lower State's normal cost is | ||||||
15 | necessary to ensure cost neutrality.
| ||||||
16 | (40 ILCS 5/18-110.1 new) | ||||||
17 | Sec. 18-110.1. Tier 1 participant. "Tier 1 participant": A | ||||||
18 | participant who first became a participant of this System | ||||||
19 | before January 1, 2011. | ||||||
20 | In the case of a Tier 1 participant who elects to | ||||||
21 | participate in the Tier 3 plan under Section 18-121.5 of this | ||||||
22 | Code, that Tier 1 participant shall be deemed a Tier 1 | ||||||
23 | participant only with respect to service performed or | ||||||
24 | established before the effective date of that election.
|
| |||||||
| |||||||
1 | (40 ILCS 5/18-110.2 new) | ||||||
2 | Sec. 18-110.2. Tier 2 participant. "Tier 2 participant": A | ||||||
3 | participant who first becomes a participant of this System on | ||||||
4 | or after January 1, 2011. | ||||||
5 | In the case of a Tier 2 participant who elects to | ||||||
6 | participate in the Tier 3 plan under Section 18-121.5 of this | ||||||
7 | Code, that Tier 2 participant shall be deemed a Tier 2 | ||||||
8 | participant only with respect to service performed or | ||||||
9 | established before the effective date of that election.
| ||||||
10 | (40 ILCS 5/18-110.3 new) | ||||||
11 | Sec. 18-110.3. Tier 3 participant. "Tier 3 participant": A | ||||||
12 | participant who first becomes a participant of this System on | ||||||
13 | or after July 1, 2018 or a Tier 1 or Tier 2 participant who | ||||||
14 | elects to participate in the Tier 3 plan under Section 18-121.5 | ||||||
15 | of this Code, but only with respect to service performed on or | ||||||
16 | after the effective date of that election.
| ||||||
17 | (40 ILCS 5/18-121.5 new) | ||||||
18 | Sec. 18-121.5. Tier 3 plan. | ||||||
19 | (a) By July 1, 2018, the System shall prepare and implement | ||||||
20 | a Tier 3 plan. The Tier 3 plan developed under this Section | ||||||
21 | shall be a plan that aggregates State and employee | ||||||
22 | contributions in individual participant accounts which, after | ||||||
23 | meeting any other requirements, are used for payouts after | ||||||
24 | retirement in accordance with this Section and any other |
| |||||||
| |||||||
1 | applicable laws. | ||||||
2 | As used in this Section, "defined benefit plan" means the | ||||||
3 | retirement plan available under this Article to Tier 1 or Tier | ||||||
4 | 2 participants who have not made the election authorized under | ||||||
5 | this Section. | ||||||
6 | (1) All persons who begin to participate in this System | ||||||
7 | on or after July 1, 2018 shall participate in the Tier 3 | ||||||
8 | plan rather than the defined benefit plan. | ||||||
9 | (2) A participant in the Tier 3 plan shall pay employee | ||||||
10 | contributions at a rate determined by the participant, but | ||||||
11 | not less than 3% of salary and not more than a percentage | ||||||
12 | of salary determined by the Board in accordance with the | ||||||
13 | requirements of State and federal law. | ||||||
14 | (3) State contributions shall be paid into the accounts | ||||||
15 | of all participants in the Tier 3 plan at a uniform rate, | ||||||
16 | expressed as a percentage of salary and determined for each | ||||||
17 | year. This rate shall be no higher than 7.6% of salary and | ||||||
18 | shall be no lower than 3% of salary. The State shall adjust | ||||||
19 | this rate annually. | ||||||
20 | (4) The Tier 3 plan shall require 5 years of | ||||||
21 | participation in the Tier 3 plan before vesting in State | ||||||
22 | contributions. If the participant fails to vest in them, | ||||||
23 | the State contributions, and the earnings thereon, shall be | ||||||
24 | forfeited. | ||||||
25 | (5) The Tier 3 plan may provide for participants in the | ||||||
26 | plan to be eligible for defined disability benefits. If it |
| |||||||
| |||||||
1 | does, the System shall reduce the employee contributions | ||||||
2 | credited to the participant's Tier 3 plan account by an | ||||||
3 | amount determined by the System to cover the cost of | ||||||
4 | offering such benefits. | ||||||
5 | (6) The Tier 3 plan shall provide a variety of options | ||||||
6 | for investments. These options shall include investments | ||||||
7 | handled by the Illinois State Board of Investment as well | ||||||
8 | as private sector investment options. | ||||||
9 | (7) The Tier 3 plan shall provide a variety of options | ||||||
10 | for payouts to participants in the Tier 3 plan who are no | ||||||
11 | longer active in the System and their 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 participant's Tier 3 plan account by an | ||||||
19 | amount determined by the System to cover the cost of | ||||||
20 | offering these benefits and any applicable administrative | ||||||
21 | fees. | ||||||
22 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
23 | participant of this System may elect, in writing, to cease | ||||||
24 | accruing benefits in the defined benefit plan and begin | ||||||
25 | accruing benefits for future service in the Tier 3 plan. The | ||||||
26 | election to participate in the Tier 3 plan is voluntary and |
| |||||||
| |||||||
1 | irrevocable. | ||||||
2 | (1) Service credit under the Tier 3 plan may be used | ||||||
3 | for determining retirement eligibility under the defined | ||||||
4 | benefit plan. | ||||||
5 | (2) The System shall make a good faith effort to | ||||||
6 | contact all active Tier 1 and Tier 2 participants who are | ||||||
7 | eligible to participate in the Tier 3 plan. The System | ||||||
8 | shall mail information describing the option to join the | ||||||
9 | Tier 3 plan to each of these employees to his or her last | ||||||
10 | known address on file with the System. If the employee is | ||||||
11 | not responsive to other means of contact, it is sufficient | ||||||
12 | for the System to publish the details of the option on its | ||||||
13 | website. | ||||||
14 | (3) Upon request for further information describing | ||||||
15 | the option, the System shall provide employees with | ||||||
16 | information from the System before exercising the option to | ||||||
17 | join the plan, including information on the impact to their | ||||||
18 | benefits and service. The individual consultation shall | ||||||
19 | include projections of the participant's defined benefits | ||||||
20 | at retirement or earlier termination of service and the | ||||||
21 | value of the participant's account at retirement or earlier | ||||||
22 | termination of service. The System shall not provide advice | ||||||
23 | or counseling with respect to whether the employee should | ||||||
24 | exercise the option. The System shall inform Tier 1 and | ||||||
25 | Tier 2 participants who are eligible to participate in the | ||||||
26 | Tier 3 plan that they may also wish to obtain information |
| |||||||
| |||||||
1 | and counsel relating to their option from any other | ||||||
2 | available source, including but not limited to private | ||||||
3 | counsel and financial advisors. | ||||||
4 | (b-5) A Tier 1 or Tier 2 participant who elects to | ||||||
5 | participate in the Tier 3 plan may irrevocably elect to | ||||||
6 | terminate all participation in the defined benefit plan. Upon | ||||||
7 | that election, the System shall transfer to the participant's | ||||||
8 | individual account an amount equal to the amount of | ||||||
9 | contribution refund that the participant would be eligible to | ||||||
10 | receive if the participant terminated employment on that date | ||||||
11 | and elected a refund of contributions, including interest at | ||||||
12 | the prescribed rate of interest for the respective years. The | ||||||
13 | System shall make the transfer as a tax free transfer in | ||||||
14 | accordance with Internal Revenue Service guidelines, for | ||||||
15 | purposes of funding the amount credited to the participant's | ||||||
16 | individual account. | ||||||
17 | (c) In no event shall the System, its staff, its authorized | ||||||
18 | representatives, or the Board be liable for any information | ||||||
19 | given to an employee under this Section. The System may | ||||||
20 | coordinate with the Illinois Department of Central Management | ||||||
21 | Services and other retirement systems administering a Tier 3 | ||||||
22 | plan in accordance with this amendatory Act of the 100th | ||||||
23 | General Assembly to provide information concerning the impact | ||||||
24 | of the Tier 3 plan set forth in this Section. | ||||||
25 | (d) Notwithstanding any other provision of this Section, no | ||||||
26 | person shall begin participating in the Tier 3 plan until it |
| |||||||
| |||||||
1 | has attained qualified plan status and received all necessary | ||||||
2 | approvals from the U.S. Internal Revenue Service. | ||||||
3 | (e) The System shall report on its progress under this | ||||||
4 | Section, including the available details of the Tier 3 plan and | ||||||
5 | the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
6 | participants about the plan, to the Governor and the General | ||||||
7 | Assembly on or before January 15, 2018. | ||||||
8 | (f) The Illinois State Board of Investment shall be the | ||||||
9 | plan sponsor for the Tier 3 plan established under this | ||||||
10 | Section. | ||||||
11 | (g) The intent of this amendatory Act of the 100th General | ||||||
12 | Assembly is to ensure that the State's normal cost of | ||||||
13 | participation in the Tier 3 plan is similar, and if possible | ||||||
14 | equal, to the State's normal cost of participation in the | ||||||
15 | defined benefit plan, unless a lower State's normal cost is | ||||||
16 | necessary to ensure cost neutrality.
| ||||||
17 | (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
| ||||||
18 | Sec. 18-124. Retirement annuities - conditions for | ||||||
19 | eligibility. | ||||||
20 | (a) This subsection (a) applies to a Tier 1 participant who | ||||||
21 | first serves as a judge before the effective date of this | ||||||
22 | amendatory Act of the 96th General Assembly . | ||||||
23 | A
participant whose employment as a judge is terminated, | ||||||
24 | regardless of age
or cause is entitled to a retirement annuity | ||||||
25 | beginning on
the date specified in a written application |
| |||||||
| |||||||
1 | subject to the
following:
| ||||||
2 | (1) the date the annuity begins is subsequent
to the | ||||||
3 | date of final
termination of employment, or the date 30 | ||||||
4 | days prior to the receipt of
the application by the board | ||||||
5 | for annuities based on
disability, or one year before the | ||||||
6 | receipt of the application by the
board for annuities based | ||||||
7 | on attained age;
| ||||||
8 | (2) the participant is at least age 55, or has
become | ||||||
9 | permanently disabled and as
a consequence is unable to | ||||||
10 | perform the duties of his or her office;
| ||||||
11 | (3) the participant has at least 10 years of service
| ||||||
12 | credit except that a participant terminating service after | ||||||
13 | June
30 1975, with at least 6 years of service credit, | ||||||
14 | shall be entitled to
a retirement annuity at age 62 or | ||||||
15 | over;
| ||||||
16 | (4) the participant is not receiving or entitled
to | ||||||
17 | receive, at the date of
retirement, any salary from an | ||||||
18 | employer for service currently performed.
| ||||||
19 | (b) This subsection (b) applies to a Tier 2 participant who | ||||||
20 | first serves as a judge on or after the effective date of this | ||||||
21 | amendatory Act of the 96th General Assembly . | ||||||
22 | A participant who has at least 8 years of creditable | ||||||
23 | service is
entitled to a retirement annuity when he or she has | ||||||
24 | attained age 67. | ||||||
25 | A member who has attained age 62 and has at least 8 years | ||||||
26 | of service credit may elect to receive the lower retirement |
| |||||||
| |||||||
1 | annuity provided
in subsection (d) of Section 18-125 of this | ||||||
2 | Code. | ||||||
3 | (Source: P.A. 96-889, eff. 1-1-11 .)
| ||||||
4 | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| ||||||
5 | Sec. 18-125. Retirement annuity amount.
| ||||||
6 | (a) The annual retirement annuity for a participant who | ||||||
7 | terminated
service as a judge prior to July 1, 1971 shall be | ||||||
8 | based on the law in
effect at the time of termination of | ||||||
9 | service.
| ||||||
10 | (b) Except as provided in subsection (b-5), effective July | ||||||
11 | 1, 1971, the retirement annuity for any participant
in service | ||||||
12 | on or after such date shall be 3 1/2% of final average salary,
| ||||||
13 | as defined in this Section, for each of the first 10 years of | ||||||
14 | service, and
5% of such final average salary for each year of | ||||||
15 | service in on excess of 10.
| ||||||
16 | For purposes of this Section, final average salary for a | ||||||
17 | Tier 1 participant who first serves as a judge before August | ||||||
18 | 10, 2009 (the effective date of Public Act 96-207) shall be:
| ||||||
19 | (1) the average salary for the last 4 years of credited | ||||||
20 | service as a
judge for a participant who terminates service | ||||||
21 | before July 1, 1975.
| ||||||
22 | (2) for a participant who terminates service after June | ||||||
23 | 30, 1975
and before July 1, 1982, the salary on the last | ||||||
24 | day of employment as a judge.
| ||||||
25 | (3) for any participant who terminates service after |
| |||||||
| |||||||
1 | June 30, 1982 and
before January 1, 1990, the average | ||||||
2 | salary for the final year of service as
a judge.
| ||||||
3 | (4) for a participant who terminates service on or | ||||||
4 | after January 1,
1990 but before July 14, 1995 ( the | ||||||
5 | effective date of Public Act 89-136) this amendatory Act of | ||||||
6 | 1995 , the
salary on the last day of employment as a judge.
| ||||||
7 | (5) for a participant who terminates service on or | ||||||
8 | after July 14, 1995 ( the effective
date of Public Act | ||||||
9 | 89-136) this amendatory Act of 1995 , the salary on the last | ||||||
10 | day of employment
as a judge, or the highest salary | ||||||
11 | received by the participant for employment as
a judge in a | ||||||
12 | position held by the participant for at least 4 consecutive | ||||||
13 | years,
whichever is greater.
| ||||||
14 | However, in the case of a participant who elects to | ||||||
15 | discontinue contributions
as provided in subdivision (a)(2) of | ||||||
16 | Section 18-133, the time of such
election shall be considered | ||||||
17 | the last day of employment in the determination
of final | ||||||
18 | average salary under this subsection.
| ||||||
19 | For a Tier 1 participant who first serves as a judge on or | ||||||
20 | after August 10, 2009 (the effective date of Public Act 96-207) | ||||||
21 | and before January 1, 2011 (the effective date of Public Act | ||||||
22 | 96-889) , final average salary shall be the average monthly | ||||||
23 | salary obtained by dividing the total salary of the participant | ||||||
24 | during the period of: (1) the 48 consecutive months of service | ||||||
25 | within the last 120 months of service in which the total | ||||||
26 | compensation was the highest, or (2) the total period of |
| |||||||
| |||||||
1 | service, if less than 48 months, by the number of months of | ||||||
2 | service in that period. | ||||||
3 | The maximum retirement annuity for any participant shall be | ||||||
4 | 85% of final
average salary.
| ||||||
5 | (b-5) Notwithstanding any other provision of this Article, | ||||||
6 | for a Tier 2 participant who first serves as a judge on or | ||||||
7 | after January 1, 2011 (the effective date of Public Act | ||||||
8 | 96-889) , the annual
retirement annuity is 3% of the
| ||||||
9 | participant's final average salary for each year of service. | ||||||
10 | The maximum retirement
annuity payable shall be 60% of the | ||||||
11 | participant's final average salary. | ||||||
12 | For a Tier 2 participant who first serves as a judge on or | ||||||
13 | after January 1, 2011 (the effective date of Public Act | ||||||
14 | 96-889) , final average salary shall be the average monthly | ||||||
15 | salary obtained by dividing the total salary of the judge | ||||||
16 | during the 96 consecutive months of service within the last 120 | ||||||
17 | months of service in which the total salary was the highest by | ||||||
18 | the number of months of service in that period; however, | ||||||
19 | beginning January 1, 2011, the annual salary may not exceed | ||||||
20 | $106,800, except that that amount shall annually thereafter be | ||||||
21 | increased by the lesser of (i) 3% of that amount, including all | ||||||
22 | previous adjustments, or (ii) the annual unadjusted percentage | ||||||
23 | increase (but not less than zero) in the consumer price index-u
| ||||||
24 | for the 12 months ending with the September preceding each | ||||||
25 | November 1. "Consumer price index-u" means
the index published | ||||||
26 | by the Bureau of Labor Statistics of the United States
|
| |||||||
| |||||||
1 | Department of Labor that measures the average change in prices | ||||||
2 | of goods and
services purchased by all urban consumers, United | ||||||
3 | States city average, all
items, 1982-84 = 100. The new amount | ||||||
4 | resulting from each annual adjustment
shall be determined by | ||||||
5 | the Public Pension Division of the Department of Insurance and | ||||||
6 | made available to the Board by November 1st of each year. | ||||||
7 | (c) The retirement annuity for a participant who retires | ||||||
8 | prior to age 60
with less than 28 years of service in the | ||||||
9 | System shall be reduced 1/2 of 1%
for each month that the | ||||||
10 | participant's age is under 60 years at the time the
annuity | ||||||
11 | commences. However, for a participant who retires on or after | ||||||
12 | December 10, 1999 ( the
effective date of Public Act 91-653) | ||||||
13 | this amendatory Act of the 91st General Assembly , the
| ||||||
14 | percentage reduction in retirement annuity imposed under this | ||||||
15 | subsection shall
be reduced by 5/12 of 1% for every month of | ||||||
16 | service in this System in excess of
20 years, and therefore a | ||||||
17 | participant with at least 26 years of service in this
System | ||||||
18 | may retire at age 55 without any reduction in annuity.
| ||||||
19 | The reduction in retirement annuity imposed by this | ||||||
20 | subsection shall not
apply in the case of retirement on account | ||||||
21 | of disability.
| ||||||
22 | (d) Notwithstanding any other provision of this Article, | ||||||
23 | for a Tier 2 participant who first serves as a judge on or | ||||||
24 | after January 1, 2011 (the effective date of Public Act 96-889) | ||||||
25 | and who is retiring after attaining age 62, the retirement | ||||||
26 | annuity shall be reduced by 1/2
of 1% for each month that the |
| |||||||
| |||||||
1 | participant's age is under age 67 at the time the annuity | ||||||
2 | commences. | ||||||
3 | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | ||||||
4 | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11; revised 9-9-16.)
| ||||||
5 | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| ||||||
6 | Sec. 18-125.1. Automatic increase in retirement annuity. A | ||||||
7 | participant who
retires from service after June 30, 1969, | ||||||
8 | shall, in January of the year next
following the year in which | ||||||
9 | the first anniversary of retirement occurs, and in
January of | ||||||
10 | each year thereafter, have the amount of his or her originally
| ||||||
11 | granted retirement annuity increased as follows: for each year | ||||||
12 | up to and
including 1971, 1 1/2%; for each year from 1972 | ||||||
13 | through 1979 inclusive, 2%; and
for 1980 and each year | ||||||
14 | thereafter, 3%.
| ||||||
15 | Notwithstanding any other provision of this Article, a | ||||||
16 | retirement annuity for a Tier 2 participant who first serves as | ||||||
17 | a judge on or after January 1, 2011 (the effective date of | ||||||
18 | Public Act 96-889) shall be increased in January of the year | ||||||
19 | next
following the year in which the first anniversary of | ||||||
20 | retirement occurs, but in no event prior to age 67, and in
| ||||||
21 | January of each year thereafter, by an amount equal to 3% or | ||||||
22 | the annual percentage increase in the consumer price index-u as | ||||||
23 | determined by the Public Pension Division of the Department of | ||||||
24 | Insurance under subsection (b-5) of Section 18-125, whichever | ||||||
25 | is less, of the retirement annuity then being paid. |
| |||||||
| |||||||
1 | This Section is not applicable to a participant who retires | ||||||
2 | before he
or she has made contributions at the rate prescribed | ||||||
3 | in Section 18-133 for
automatic increases for not less than the | ||||||
4 | equivalent of one full year, unless
such a participant arranges | ||||||
5 | to pay the system the amount required to bring
the total | ||||||
6 | contributions for the automatic increase to the equivalent of
| ||||||
7 | one year's contribution based upon his or her last year's | ||||||
8 | salary.
| ||||||
9 | This Section is applicable to all participants (other than | ||||||
10 | Tier 3 participants who do not have any service credit as a | ||||||
11 | Tier 1 or Tier 2 participant) in service after June 30,
1969 | ||||||
12 | unless a participant has elected, prior to September 1,
1969, | ||||||
13 | in a written direction filed with the board not to be subject | ||||||
14 | to
the provisions of this Section. Any participant in service | ||||||
15 | on or after
July 1, 1992 shall have the option of electing | ||||||
16 | prior to April 1, 1993,
in a written direction filed with the | ||||||
17 | board, to be covered by the provisions of
the 1969 amendatory | ||||||
18 | Act. Such participant shall be required to make the
aforesaid | ||||||
19 | additional contributions with compound interest at 4% per | ||||||
20 | annum.
| ||||||
21 | Any participant who has become eligible to receive the | ||||||
22 | maximum rate of
annuity and who resumes service as a judge | ||||||
23 | after receiving a retirement
annuity under this Article shall | ||||||
24 | have the amount of his or her
retirement annuity increased by | ||||||
25 | 3% of the originally granted annuity amount
for each year of | ||||||
26 | such resumed service, beginning in January of the year
next |
| |||||||
| |||||||
1 | following the date of such resumed service, upon subsequent
| ||||||
2 | termination of such resumed service.
| ||||||
3 | Beginning January 1, 1990, all automatic annual increases | ||||||
4 | payable
under this Section shall be calculated as a percentage | ||||||
5 | of the total annuity
payable at the time of the increase, | ||||||
6 | including previous increases granted
under this Article.
| ||||||
7 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
8 | (40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
| ||||||
9 | Sec. 18-127. Retirement annuity - suspension on | ||||||
10 | reemployment.
| ||||||
11 | (a) A participant receiving a retirement annuity who is | ||||||
12 | regularly
employed for compensation by an employer other than a | ||||||
13 | county, in any
capacity, shall have his or her retirement | ||||||
14 | annuity payments suspended
during such employment. Upon | ||||||
15 | termination of such employment, retirement
annuity payments at | ||||||
16 | the previous rate shall be resumed.
| ||||||
17 | If such a participant resumes service as a judge, he or she
| ||||||
18 | shall receive credit for any additional service. Upon | ||||||
19 | subsequent
retirement, his or her retirement annuity shall be | ||||||
20 | the amount previously
granted, plus the amount earned by the | ||||||
21 | additional judicial service under
the provisions in effect | ||||||
22 | during the period of such additional service.
However, if the | ||||||
23 | participant was receiving the maximum rate of annuity at
the | ||||||
24 | time of re-employment, he or she may elect, in a written | ||||||
25 | direction
filed with the board, not to receive any additional |
| |||||||
| |||||||
1 | service credit during
the period of re-employment. In such | ||||||
2 | case, contributions shall not be
required during the period of | ||||||
3 | re-employment. Any such election shall be
irrevocable.
| ||||||
4 | (b) Beginning January 1, 1991, any participant receiving a | ||||||
5 | retirement
annuity who accepts temporary employment from an | ||||||
6 | employer other than a
county for a period not exceeding 75 | ||||||
7 | working days in any calendar year
shall not be deemed to be | ||||||
8 | regularly employed for compensation or to have
resumed service | ||||||
9 | as a judge for the purposes of this Article. A day shall
be | ||||||
10 | considered a working day if the annuitant performs on it any of | ||||||
11 | his
duties under the temporary employment agreement.
| ||||||
12 | (c) Except as provided in subsection (a), beginning January | ||||||
13 | 1, 1993,
retirement annuities shall not be subject to | ||||||
14 | suspension upon resumption of
employment for an employer, and | ||||||
15 | any retirement annuity that is then so
suspended shall be | ||||||
16 | reinstated on that date.
| ||||||
17 | (d) The changes made in this Section by this amendatory Act | ||||||
18 | of 1993
shall apply to judges no longer in service on its | ||||||
19 | effective date, as well as to
judges serving on or after that | ||||||
20 | date.
| ||||||
21 | (e) A participant receiving a retirement
annuity under this | ||||||
22 | Article who serves as a part-time employee in any of the | ||||||
23 | following positions: Legislative Inspector General, Special | ||||||
24 | Legislative Inspector General, employee of the Office of the | ||||||
25 | Legislative Inspector General, Executive Director of the | ||||||
26 | Legislative Ethics Commission, or staff of the Legislative |
| |||||||
| |||||||
1 | Ethics Commission, but has not elected to participate in the | ||||||
2 | Article 14 System with respect to that service, shall not be | ||||||
3 | deemed to be regularly employed for compensation by an employer | ||||||
4 | other than a county, nor to have
resumed service as a judge, on | ||||||
5 | the basis of that service, and the retirement annuity payments | ||||||
6 | and other benefits of that person under this Code shall not be | ||||||
7 | suspended, diminished, or otherwise impaired solely as a | ||||||
8 | consequence of that service. This subsection (e) applies | ||||||
9 | without regard to whether the person is in service as a judge | ||||||
10 | under this Article on or after the effective date of this | ||||||
11 | amendatory Act of the 93rd General Assembly. In this | ||||||
12 | subsection, a "part-time employee" is a person who is not | ||||||
13 | required to work at least 35 hours per week.
| ||||||
14 | (f) A participant receiving a retirement annuity under this | ||||||
15 | Article who has made an election under Section 1-123 and who is | ||||||
16 | serving either as legal counsel in the Office of the Governor | ||||||
17 | or as Chief Deputy Attorney General shall not be deemed to be | ||||||
18 | regularly employed for compensation by an employer other than a | ||||||
19 | county, nor to have resumed service as a judge, on the basis of | ||||||
20 | that service, and the retirement annuity payments and other | ||||||
21 | benefits of that person under this Code shall not be suspended, | ||||||
22 | diminished, or otherwise impaired solely as a consequence of | ||||||
23 | that service. This subsection (f) applies without regard to | ||||||
24 | whether the person is in service as a judge under this Article | ||||||
25 | on or after the effective date of this amendatory Act of the | ||||||
26 | 93rd General Assembly.
|
| |||||||
| |||||||
1 | (g) Notwithstanding any other provision of this Article, if | ||||||
2 | a Tier 2 participant person who first becomes a participant | ||||||
3 | under this System on or after January 1, 2011 (the effective | ||||||
4 | date of this amendatory Act of the 96th General Assembly) is | ||||||
5 | receiving a retirement annuity under this Article and becomes a | ||||||
6 | member or participant under this Article or any other Article | ||||||
7 | of this Code and is employed on a full-time basis, then the | ||||||
8 | person's retirement annuity under this System shall be | ||||||
9 | suspended during that employment. Upon termination of that | ||||||
10 | employment, the person's retirement annuity shall resume and, | ||||||
11 | if appropriate, be recalculated under the applicable | ||||||
12 | provisions of this Article. | ||||||
13 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
14 | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| ||||||
15 | Sec. 18-128.01. Amount of survivor's annuity.
| ||||||
16 | (a) Upon the death of
an annuitant, his or her surviving | ||||||
17 | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | ||||||
18 | the annuity the annuitant was receiving immediately
prior to | ||||||
19 | his or her death, inclusive of annual increases in the | ||||||
20 | retirement
annuity to the date of death.
| ||||||
21 | (b) Upon the death of an active participant, his or her | ||||||
22 | surviving spouse
shall receive a survivor's annuity of 66 2/3% | ||||||
23 | of the annuity earned by the
participant as of the date of his | ||||||
24 | or her death, determined without regard
to whether the | ||||||
25 | participant had attained age 60 as of that time, or 7 1/2%
of |
| |||||||
| |||||||
1 | the last salary of the decedent, whichever is greater.
| ||||||
2 | (c) Upon the death of a participant who had terminated | ||||||
3 | service with at
least 10 years of service, his or her surviving | ||||||
4 | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | ||||||
5 | the annuity earned by the deceased
participant at the date of | ||||||
6 | death.
| ||||||
7 | (d) Upon the death of an annuitant, active participant, or | ||||||
8 | participant
who had terminated service with at least 10 years | ||||||
9 | of service, each surviving
child under the age of 18 or | ||||||
10 | disabled as defined in Section 18-128 shall
be entitled to a | ||||||
11 | child's annuity in an amount equal to 5% of the decedent's
| ||||||
12 | final salary, not to exceed in total for all such children the | ||||||
13 | greater of
20% of the decedent's last salary or 66 2/3% of the | ||||||
14 | annuity received or
earned by the decedent as provided under | ||||||
15 | subsections (a) and (b) of this
Section. This child's annuity | ||||||
16 | shall be paid whether or not a survivor's
annuity was elected | ||||||
17 | under Section 18-123.
| ||||||
18 | (e) The changes made in the survivor's annuity provisions | ||||||
19 | by Public Act
82-306 shall apply to the survivors of a deceased | ||||||
20 | participant or annuitant
whose death occurs on or after August | ||||||
21 | 21, 1981.
| ||||||
22 | (f) Beginning January 1, 1990, every survivor's annuity | ||||||
23 | shall be
increased
(1) on each January 1 occurring on or after | ||||||
24 | the commencement of the annuity if
the deceased member died | ||||||
25 | while receiving a retirement annuity, or (2) in other cases,
on | ||||||
26 | each January 1 occurring on or after the first anniversary of
|
| |||||||
| |||||||
1 | the commencement of the annuity, by an amount equal to 3% of | ||||||
2 | the current
amount of the annuity, including any previous | ||||||
3 | increases under this Article.
Such increases shall apply | ||||||
4 | without regard to whether the deceased member
was in service on | ||||||
5 | or after the effective date of this amendatory Act of
1991, but | ||||||
6 | shall not accrue for any period prior to January 1, 1990.
| ||||||
7 | (g) Notwithstanding any other provision of this Article, | ||||||
8 | the initial survivor's annuity for a survivor of a Tier 2 | ||||||
9 | participant who first serves as a judge after January 1, 2011 | ||||||
10 | (the effective date of Public Act 96-889) shall be in the | ||||||
11 | amount of 66 2/3% of the annuity received or earned by the | ||||||
12 | decedent, and shall be increased (1) on each January 1 | ||||||
13 | occurring on or after the commencement of the annuity if
the | ||||||
14 | deceased participant died while receiving a retirement | ||||||
15 | annuity, or (2) in other cases,
on each January 1 occurring on | ||||||
16 | or after the first anniversary of
the commencement of the | ||||||
17 | annuity, but in no event prior to age 67, by an amount equal to | ||||||
18 | 3% or the annual unadjusted percentage increase in the consumer | ||||||
19 | price index-u as determined by the Public Pension Division of | ||||||
20 | the Department of Insurance under subsection (b-5) of Section | ||||||
21 | 18-125, whichever is less, of the survivor's annuity then being | ||||||
22 | paid. | ||||||
23 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
24 | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| ||||||
25 | Sec. 18-133. Financing; employee contributions.
|
| |||||||
| |||||||
1 | (a) Effective July 1, 1967, each participant is required to | ||||||
2 | contribute
7 1/2% of each payment of salary toward the | ||||||
3 | retirement annuity. Such
contributions shall continue during | ||||||
4 | the entire time the participant is in
service, with the | ||||||
5 | following exceptions:
| ||||||
6 | (1) Contributions for the retirement annuity are not | ||||||
7 | required on salary
received after 18 years of service by | ||||||
8 | persons who were participants before
January 2, 1954.
| ||||||
9 | (2) A participant who continues to serve as a judge | ||||||
10 | after becoming
eligible to receive the maximum rate of | ||||||
11 | annuity may elect, through a written
direction filed with | ||||||
12 | the Board, to discontinue contributing to the System.
Any | ||||||
13 | such option elected by a judge shall be irrevocable unless | ||||||
14 | prior to
January 1, 2000, and while continuing to
serve as | ||||||
15 | judge, the judge (A) files with the Board a letter | ||||||
16 | cancelling the
direction to discontinue contributing to | ||||||
17 | the System and requesting that such
contributing resume, | ||||||
18 | and (B) pays into the System an amount equal to the total
| ||||||
19 | of the discontinued contributions plus interest thereon at | ||||||
20 | 5% per annum.
Service credits earned in any other | ||||||
21 | "participating system" as defined in
Article 20 of this | ||||||
22 | Code shall be considered for purposes of determining a
| ||||||
23 | judge's eligibility to discontinue contributions under | ||||||
24 | this subdivision
(a)(2).
| ||||||
25 | (3) A participant who (i) has attained age 60, (ii) | ||||||
26 | continues to serve
as a judge after becoming eligible to |
| |||||||
| |||||||
1 | receive the maximum rate of annuity,
and (iii) has not | ||||||
2 | elected to discontinue contributing to the System under
| ||||||
3 | subdivision (a)(2) of this Section (or has revoked any such | ||||||
4 | election) may
elect, through a written direction filed with | ||||||
5 | the Board, to make contributions
to the System based only | ||||||
6 | on the amount of the increases in salary received by
the | ||||||
7 | judge on or after the date of the election, rather than the | ||||||
8 | total salary
received. If a judge who is making | ||||||
9 | contributions to the System on the
effective date of this | ||||||
10 | amendatory Act of the 91st General Assembly makes an
| ||||||
11 | election to limit contributions under this subdivision | ||||||
12 | (a)(3) within 90 days
after that effective date, the | ||||||
13 | election shall be deemed to become
effective on that | ||||||
14 | effective date and the judge shall be entitled to receive a
| ||||||
15 | refund of any excess contributions paid to the System | ||||||
16 | during that 90-day
period; any other election under this | ||||||
17 | subdivision (a)(3) becomes effective
on the first of the | ||||||
18 | month following the date of the election. An election to
| ||||||
19 | limit contributions under this subdivision (a)(3) is | ||||||
20 | irrevocable. Service
credits earned in any other | ||||||
21 | participating system as defined in Article 20 of
this Code | ||||||
22 | shall be considered for purposes of determining a judge's | ||||||
23 | eligibility
to make an election under this subdivision | ||||||
24 | (a)(3).
| ||||||
25 | (b) Beginning July 1, 1969, each participant is required to | ||||||
26 | contribute
1% of each payment of salary towards the automatic |
| |||||||
| |||||||
1 | increase in annuity
provided in Section 18-125.1. However, such | ||||||
2 | contributions need not be made
by any participant who has | ||||||
3 | elected prior to September 15, 1969, not to be
subject to the | ||||||
4 | automatic increase in annuity provisions.
| ||||||
5 | (c) Effective July 13, 1953, each married participant | ||||||
6 | subject to the
survivor's annuity provisions is required to | ||||||
7 | contribute 2 1/2% of each
payment of salary, whether or not he | ||||||
8 | or she is required to make any other
contributions under this | ||||||
9 | Section. Such contributions shall be made
concurrently with the | ||||||
10 | contributions made for annuity purposes.
| ||||||
11 | (d) Notwithstanding any other provision of this Article, | ||||||
12 | the required contributions for a Tier 2 participant who first | ||||||
13 | becomes a participant on or after January 1, 2011 shall not | ||||||
14 | exceed the contributions that would be due under this Article | ||||||
15 | if that participant's highest salary for annuity purposes were | ||||||
16 | $106,800, plus any increase in that amount under Section | ||||||
17 | 18-125. | ||||||
18 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
19 | (40 ILCS 5/18-169)
| ||||||
20 | Sec. 18-169. Application and expiration of new benefit | ||||||
21 | increases. | ||||||
22 | (a) As used in this Section, "new benefit increase" means | ||||||
23 | an increase in the amount of any benefit provided under this | ||||||
24 | Article, or an expansion of the conditions of eligibility for | ||||||
25 | any benefit under this Article, that results from an amendment |
| |||||||
| |||||||
1 | to this Code that takes effect after the effective date of this | ||||||
2 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
3 | increase", however, does not include any benefit increase | ||||||
4 | resulting from the changes made by this amendatory Act of the | ||||||
5 | 100th General Assembly. | ||||||
6 | (b) Notwithstanding any other provision of this Code or any | ||||||
7 | subsequent amendment to this Code, every new benefit increase | ||||||
8 | is subject to this Section and shall be deemed to be granted | ||||||
9 | only in conformance with and contingent upon compliance with | ||||||
10 | the provisions of this Section.
| ||||||
11 | (c) The Public Act enacting a new benefit increase must | ||||||
12 | identify and provide for payment to the System of additional | ||||||
13 | funding at least sufficient to fund the resulting annual | ||||||
14 | increase in cost to the System as it accrues. | ||||||
15 | Every new benefit increase is contingent upon the General | ||||||
16 | Assembly providing the additional funding required under this | ||||||
17 | subsection. The Commission on Government Forecasting and | ||||||
18 | Accountability shall analyze whether adequate additional | ||||||
19 | funding has been provided for the new benefit increase and | ||||||
20 | shall report its analysis to the Public Pension Division of the | ||||||
21 | Department of Financial and Professional Regulation. A new | ||||||
22 | benefit increase created by a Public Act that does not include | ||||||
23 | the additional funding required under this subsection is null | ||||||
24 | and void. If the Public Pension Division determines that the | ||||||
25 | additional funding provided for a new benefit increase under | ||||||
26 | this subsection is or has become inadequate, it may so certify |
| |||||||
| |||||||
1 | to the Governor and the State Comptroller and, in the absence | ||||||
2 | of corrective action by the General Assembly, the new benefit | ||||||
3 | increase shall expire at the end of the fiscal year in which | ||||||
4 | the certification is made.
| ||||||
5 | (d) Every new benefit increase shall expire 5 years after | ||||||
6 | its effective date or on such earlier date as may be specified | ||||||
7 | in the language enacting the new benefit increase or provided | ||||||
8 | under subsection (c). This does not prevent the General | ||||||
9 | Assembly from extending or re-creating a new benefit increase | ||||||
10 | by law. | ||||||
11 | (e) Except as otherwise provided in the language creating | ||||||
12 | the new benefit increase, a new benefit increase that expires | ||||||
13 | under this Section continues to apply to persons who applied | ||||||
14 | and qualified for the affected benefit while the new benefit | ||||||
15 | increase was in effect and to the affected beneficiaries and | ||||||
16 | alternate payees of such persons, but does not apply to any | ||||||
17 | other person, including without limitation a person who | ||||||
18 | continues in service after the expiration date and did not | ||||||
19 | apply and qualify for the affected benefit while the new | ||||||
20 | benefit increase was in effect.
| ||||||
21 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
22 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
23 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
24 | which has been held unconstitutional)
| ||||||
25 | Sec. 20-121. Calculation of proportional retirement |
| |||||||
| |||||||
1 | annuities. | ||||||
2 | (a) Upon
retirement of the employee, a proportional | ||||||
3 | retirement annuity shall be computed
by each participating | ||||||
4 | system in which pension credit has been established on
the | ||||||
5 | basis of pension credits under each system. The computation | ||||||
6 | shall be in
accordance with the formula or method prescribed by | ||||||
7 | each participating system
which is in effect at the date of the | ||||||
8 | employee's latest withdrawal from service
covered by any of the | ||||||
9 | systems in which he has pension credits which he elects
to have | ||||||
10 | considered under this Article. However, the amount of any | ||||||
11 | retirement
annuity payable under the self-managed plan | ||||||
12 | established under Section 15-158.2
of this Code depends solely | ||||||
13 | on the value of the participant's vested account
balances and | ||||||
14 | is not subject to any proportional adjustment under this
| ||||||
15 | Section.
| ||||||
16 | (a-5) For persons who participate in a Tier 3 plan | ||||||
17 | established under Article 2, 14, 15, 16, or 18 of this Code to | ||||||
18 | whom the provisions of this Article apply, the pension credits | ||||||
19 | established under the Tier 3 plan may be considered in
| ||||||
20 | determining eligibility for or the amount of the defined | ||||||
21 | benefit retirement annuity that is
payable by any other | ||||||
22 | participating system. | ||||||
23 | (b) Combined pension credit under all retirement systems | ||||||
24 | subject to this
Article shall be considered in determining | ||||||
25 | whether the minimum qualification
has been met and the formula | ||||||
26 | or method of computation which shall be applied , except as may |
| |||||||
| |||||||
1 | be otherwise provided with respect to vesting in State or | ||||||
2 | employer contributions in a Tier 3 plan .
If a system has a | ||||||
3 | step-rate formula for calculation of the retirement annuity,
| ||||||
4 | pension credits covering previous service which have been | ||||||
5 | established under
another system shall be considered in | ||||||
6 | determining which range or ranges of
the step-rate formula are | ||||||
7 | to be applicable to the employee.
| ||||||
8 | (c) Interest on pension credit shall continue to accumulate | ||||||
9 | in accordance with
the provisions of the law governing the | ||||||
10 | retirement system in which the same
has been established during | ||||||
11 | the time an employee is in the service of another
employer, on | ||||||
12 | the assumption such employee, for interest purposes for pension
| ||||||
13 | credit, is continuing in the service covered by such retirement | ||||||
14 | system.
| ||||||
15 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
16 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
17 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
18 | which has been held unconstitutional)
| ||||||
19 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
20 | a retirement
annuity shall be applicable to a survivor's | ||||||
21 | annuity. Appropriate credits shall
be established for | ||||||
22 | survivor's annuity purposes in those participating systems
| ||||||
23 | which provide survivor's annuities, according to the same | ||||||
24 | conditions and
subject to the same limitations and restrictions | ||||||
25 | herein prescribed for a
retirement annuity. If a participating |
| |||||||
| |||||||
1 | system has no survivor's annuity
benefit, or if the survivor's | ||||||
2 | annuity benefit under that system is waived,
pension credit | ||||||
3 | established in that system shall not be considered
in | ||||||
4 | determining eligibility for or the amount of the survivor's | ||||||
5 | annuity which
may be payable by any other participating system.
| ||||||
6 | For persons who participate in the self-managed plan | ||||||
7 | established under
Section 15-158.2 or the portable benefit | ||||||
8 | package established under Section
15-136.4, pension credit | ||||||
9 | established under Article 15 may be considered in
determining | ||||||
10 | eligibility for or the amount of the survivor's annuity that is
| ||||||
11 | payable by any other participating system, but pension credit | ||||||
12 | established in
any other system shall not result in any right | ||||||
13 | to a survivor's annuity under
the Article 15 system.
| ||||||
14 | For persons who participate in a Tier 3 plan established | ||||||
15 | under Article 2, 14, 15, 16, or 18 of this Code to whom the | ||||||
16 | provisions of this Article apply, the pension credits | ||||||
17 | established under the Tier 3 plan may be considered in
| ||||||
18 | determining eligibility for or the amount of the defined | ||||||
19 | benefit survivor's annuity that is
payable by any other | ||||||
20 | participating system, but pension credits established in
any | ||||||
21 | other system shall not result in any right to or increase in | ||||||
22 | the value of a survivor's annuity under
the Tier 3 plan, which | ||||||
23 | depends solely on the options chosen and the value of the | ||||||
24 | participant's vested account
balances and is not subject to any | ||||||
25 | proportional adjustment under this
Section. | ||||||
26 | (Source: P.A. 91-887, eff. 7-6-00.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
3 | which has been held unconstitutional)
| ||||||
4 | Sec. 20-124. Maximum benefits. | ||||||
5 | (a) In no event shall the combined retirement
or survivors | ||||||
6 | annuities exceed the highest annuity which would have been | ||||||
7 | payable
by any participating system in which the employee has | ||||||
8 | pension credits, if all
of his pension credits had been | ||||||
9 | validated in that system.
| ||||||
10 | If the combined annuities should exceed the highest maximum | ||||||
11 | as determined
in accordance with this Section, the respective | ||||||
12 | annuities shall be reduced
proportionately according to the | ||||||
13 | ratio which the amount of each proportional
annuity bears to | ||||||
14 | the aggregate of all such annuities.
| ||||||
15 | (b) In the case of a participant in the self-managed plan | ||||||
16 | established under
Section 15-158.2 of this Code to whom the | ||||||
17 | provisions of this Article apply:
| ||||||
18 | (i) For purposes of calculating the combined | ||||||
19 | retirement annuity and
the proportionate reduction, if | ||||||
20 | any, in a retirement annuity other than one
payable under | ||||||
21 | the self-managed plan, the amount of the Article 15 | ||||||
22 | retirement
annuity shall be deemed to be the highest | ||||||
23 | annuity to which the annuitant would
have been entitled if | ||||||
24 | he or she had participated in the traditional benefit
| ||||||
25 | package as defined in Section 15-103.1 rather than the |
| |||||||
| |||||||
1 | self-managed plan.
| ||||||
2 | (ii) For purposes of calculating the combined | ||||||
3 | survivor's annuity and
the proportionate reduction, if | ||||||
4 | any, in a survivor's annuity other than one
payable under | ||||||
5 | the self-managed plan, the amount of the Article 15 | ||||||
6 | survivor's
annuity shall be deemed to be the highest | ||||||
7 | survivor's annuity to which the
survivor would have been | ||||||
8 | entitled if the deceased employee had participated in
the | ||||||
9 | traditional benefit package as defined in Section 15-103.1 | ||||||
10 | rather than the
self-managed plan.
| ||||||
11 | (iii) Benefits payable under the self-managed plan are | ||||||
12 | not subject to
proportionate reduction under this Section.
| ||||||
13 | (c) In the case of a participant in a Tier 3 plan | ||||||
14 | established under
Article 2, 14, 15, 16, or 18 of this Code to | ||||||
15 | whom the provisions of this Article apply: | ||||||
16 | (i) For purposes of calculating the combined | ||||||
17 | retirement annuity and
the proportionate reduction, if | ||||||
18 | any, in a defined benefit retirement annuity, any benefit | ||||||
19 | payable under the Tier 3 plan shall not be considered. | ||||||
20 | (ii) For purposes of calculating the combined | ||||||
21 | survivor's annuity and
the proportionate reduction, if | ||||||
22 | any, in a defined benefit survivor's annuity, any benefit | ||||||
23 | payable under the Tier 3 plan shall not be considered. | ||||||
24 | (iii) Benefits payable under a Tier 3 plan established | ||||||
25 | under Article 2, 14, 15, 16, or 18 of this Code are not | ||||||
26 | subject to
proportionate reduction under this Section. |
| |||||||
| |||||||
1 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
2 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been held unconstitutional)
| ||||||
5 | Sec. 20-125. Return to employment - suspension of benefits. | ||||||
6 | If a retired
employee returns to employment which is covered by | ||||||
7 | a system from which he is
receiving a proportional annuity | ||||||
8 | under this Article, his proportional annuity
from all | ||||||
9 | participating systems shall be suspended during the period of
| ||||||
10 | re-employment, except that this suspension does not apply to | ||||||
11 | any
distributions payable under the self-managed plan | ||||||
12 | established under Section
15-158.2 of this Code or under a Tier | ||||||
13 | 3 plan established under Article 2, 14, 15, 16, or 18 of this | ||||||
14 | Code .
| ||||||
15 | The provisions of the Article under which such employment | ||||||
16 | would be
covered shall govern the determination of whether the | ||||||
17 | employee has returned
to employment, and if applicable the | ||||||
18 | exemption of temporary employment or
employment not exceeding a | ||||||
19 | specified duration or frequency, for all
participating systems | ||||||
20 | from which the retired employee is receiving a
proportional | ||||||
21 | annuity under this Article, notwithstanding any contrary
| ||||||
22 | provisions in the other Articles governing such systems.
| ||||||
23 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
24 | (40 ILCS 5/2-165 rep.) |
| |||||||
| |||||||
1 | (40 ILCS 5/2-166 rep.) | ||||||
2 | (40 ILCS 5/14-155 rep.) | ||||||
3 | (40 ILCS 5/14-156 rep.) | ||||||
4 | (40 ILCS 5/15-200 rep.) | ||||||
5 | (40 ILCS 5/15-201 rep.) | ||||||
6 | (40 ILCS 5/16-205 rep.) | ||||||
7 | (40 ILCS 5/16-206 rep.) | ||||||
8 | Section 15. The Illinois Pension Code is amended by | ||||||
9 | repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200, | ||||||
10 | 15-201, 16-205, and 16-206.
| ||||||
11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.".
|