Bill Text: IL HB0299 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the State Universities Article of the Illinois Pension Code. In a provision concerning return to work by an affected annuitant, provides that a person who becomes an affected annuitant remains an affected annuitant, except for any period on or after the effective date of the amendatory Act during which an annuitant received an annualized retirement annuity that is less than $10,000. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2017-11-08 - Passed Both Houses [HB0299 Detail]

Download: Illinois-2017-HB0299-Enrolled.html



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1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Sections 15-113, 15-135, 15-139.5, 15-152, 15-153.2, and
615-168.1 as follows:
7 (40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
8 Sec. 15-113. Service. "Service": The periods defined in
9Sections 15-113.1 through 15-113.9 and Sections Section
1015-113.11 through 15-113.12.
11(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
12 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
13 (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15 Sec. 15-135. Retirement annuities - Conditions.
16 (a) This subsection (a) applies only to a Tier 1 member. A
17participant who retires in one of the following specified years
18with the specified amount of service is entitled to a
19retirement annuity at any age under the retirement program
20applicable to the participant:
21 35 years if retirement is in 1997 or before;
22 34 years if retirement is in 1998;

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1 33 years if retirement is in 1999;
2 32 years if retirement is in 2000;
3 31 years if retirement is in 2001;
4 30 years if retirement is in 2002 or later.
5 A participant with 8 or more years of service after
6September 1, 1941, is entitled to a retirement annuity on or
7after attainment of age 55.
8 A participant with at least 5 but less than 8 years of
9service after September 1, 1941, is entitled to a retirement
10annuity on or after attainment of age 62.
11 A participant who has at least 25 years of service in this
12system as a police officer or firefighter is entitled to a
13retirement annuity on or after the attainment of age 50, if
14Rule 4 of Section 15-136 is applicable to the participant.
15 (a-5) A Tier 2 member is entitled to a retirement annuity
16upon written application if he or she has attained age 67 and
17has at least 10 years of service credit and is otherwise
18eligible under the requirements of this Article. A Tier 2
19member who has attained age 62 and has at least 10 years of
20service credit and is otherwise eligible under the requirements
21of this Article may elect to receive the lower retirement
22annuity provided in subsection (b-5) of Section 15-136 of this
23Article.
24 (b) The annuity payment period shall begin on the date
25specified by the participant or the recipient of a disability
26retirement annuity submitting a written application. For a

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1participant, the date on which the annuity payment period
2begins , which date shall not be prior to termination of
3employment or more than one year before the application is
4received by the board; however, if the participant is not an
5employee of an employer participating in this System or in a
6participating system as defined in Article 20 of this Code on
7April 1 of the calendar year next following the calendar year
8in which the participant attains age 70 1/2, the annuity
9payment period shall begin on that date regardless of whether
10an application has been filed. For a recipient of a disability
11retirement annuity, the date on which the annuity payment
12period begins shall not be prior to the discontinuation of the
13disability retirement annuity under Section 15-153.2.
14 (c) An annuity is not payable if the amount provided under
15Section 15-136 is less than $10 per month.
16(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1798-92, eff. 7-16-13.)
18 (40 ILCS 5/15-139.5)
19 Sec. 15-139.5. Return to work by affected annuitant; notice
20and contribution by employer.
21 (a) An employer who employs or re-employs a person
22receiving a retirement annuity from the System in an academic
23year beginning on or after August 1, 2013 must notify the
24System of that employment within 60 days after employing the
25annuitant. The notice must include a summary of the contract of

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1employment or specify the rate of compensation and the
2anticipated length of employment of that annuitant. The notice
3must specify whether the annuitant will be compensated from
4federal, corporate, foundation, or trust funds or grants of
5State funds that identify the principal investigator by name.
6The notice must include the employer's determination of whether
7or not the annuitant is an "affected annuitant" as defined in
8subsection (b).
9 The employer must also record, document, and certify to the
10System (i) the amount of compensation paid to the annuitant for
11employment during the academic year, and (ii) the amount of
12that compensation, if any, that comes from either federal,
13corporate, foundation, or trust funds or grants of State funds
14that identify the principal investigator by name.
15 As used in this Section, "academic year" means the 12-month
16period beginning September 1.
17 For the purposes of this Section, an annuitant whose
18employment by an employer extends over more than one academic
19year shall be deemed to be re-employed by that employer in each
20of those academic years.
21 The System may specify the time, form, and manner of
22providing the determinations, notifications, certifications,
23and documentation required under this Section.
24 (b) A person receiving a retirement annuity from the System
25becomes an "affected annuitant" on the first day of the
26academic year following the academic year in which the

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1annuitant first meets the following conditions:
2 (1) (Blank).
3 (2) While receiving a retirement annuity under this
4 Article, the annuitant was employed on or after August 1,
5 2013 by one or more employers under this Article and
6 received or became entitled to receive during an academic
7 year compensation for that employment in excess of 40% of
8 his or her highest annual earnings prior to retirement;
9 except that compensation paid from federal, corporate,
10 foundation, or trust funds or grants of State funds that
11 identify the principal investigator by name is excluded.
12 (3) The annuitant received an annualized retirement
13 annuity under this Article of at least $10,000.
14 A person who becomes an affected annuitant remains an
15affected annuitant, except for (i) any period during which the
16person returns to active service and does not receive a
17retirement annuity from the System or (ii) any period on or
18after the effective date of this amendatory Act of the 100th
19General Assembly during which an annuitant received an
20annualized retirement annuity under this Article that is less
21than $10,000.
22 (c) It is the obligation of the employer to determine
23whether an annuitant is an affected annuitant before employing
24the annuitant. For that purpose the employer may require the
25annuitant to disclose and document his or her relevant prior
26employment and earnings history. Failure of the employer to

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1make this determination correctly and in a timely manner or to
2include this determination with the notification required
3under subsection (a) does not excuse the employer from making
4the contribution required under subsection (e).
5 The System may assist the employer in determining whether a
6person is an affected annuitant. The System shall inform the
7employer if it discovers that the employer's determination is
8inconsistent with the employment and earnings information in
9the System's records.
10 (d) Upon the request of an annuitant, the System shall
11certify to the annuitant or the employer the following
12information as reported by the employers, as that information
13is indicated in the records of the System: (i) the annuitant's
14highest annual earnings prior to retirement, (ii) the
15compensation paid for that employment in each academic year,
16and (iii) whether any of that employment or compensation has
17been certified to the System as being paid from federal,
18corporate, foundation, or trust funds or grants of State funds
19that identify the principal investigator by name. The System
20shall only be required to certify information that is received
21from the employers.
22 (e) In addition to the requirements of subsection (a), an
23employer who employs an affected annuitant must pay to the
24System an employer contribution in the amount and manner
25provided in this Section, unless the annuitant is compensated
26by that employer solely from federal, corporate, foundation, or

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1trust funds or grants of State funds that identify the
2principal investigator by name.
3 The employer contribution required under this Section for
4employment of an affected annuitant in an academic year shall
5be equal to 12 times the amount of the gross monthly retirement
6annuity payable to the annuitant for the month in which the
7first paid day of that employment in that academic year occurs,
8after any reduction in that annuity that may be imposed under
9subsection (b) of Section 15-139.
10 If an affected annuitant is employed by more than one
11employer in an academic year, the employer contribution
12required under this Section shall be divided among those
13employers in proportion to their respective portions of the
14total compensation paid to the affected annuitant for that
15employment during that academic year.
16 If the System determines that an employer, without
17reasonable justification, has failed to make the determination
18of affected annuitant status correctly and in a timely manner,
19or has failed to notify the System or to correctly document or
20certify to the System any of the information required by this
21Section, and that failure results in a delayed determination by
22the System that a contribution is payable under this Section,
23then the amount of that employer's contribution otherwise
24determined under this Section shall be doubled.
25 The System shall deem a failure to correctly determine the
26annuitant's status to be justified if the employer establishes

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1to the System's satisfaction that the employer, after due
2diligence, made an erroneous determination that the annuitant
3was not an affected annuitant due to reasonable reliance on
4false or misleading information provided by the annuitant or
5another employer, or an error in the annuitant's official
6employment or earnings records.
7 (f) Whenever the System determines that an employer is
8liable for a contribution under this Section, it shall so
9notify the employer and certify the amount of the contribution.
10The employer may pay the required contribution without interest
11at any time within one year after receipt of the certification.
12If the employer fails to pay within that year, then interest
13shall be charged at a rate equal to the System's prescribed
14rate of interest, compounded annually from the 366th day after
15receipt of the certification from the System. Payment must be
16concluded within 2 years after receipt of the certification by
17the employer. If the employer fails to make complete payment,
18including applicable interest, within 2 years, then the System
19may, after giving notice to the employer, certify the
20delinquent amount to the State Comptroller, and the Comptroller
21shall thereupon deduct the certified delinquent amount from
22State funds payable to the employer and pay them instead to the
23System.
24 (g) If an employer is required to make a contribution to
25the System as a result of employing an affected annuitant and
26the annuitant later elects to forgo his or her annuity in that

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1same academic year pursuant to subsection (c) of Section
215-139, then the required contribution by the employer shall be
3waived, and if the contribution has already been paid, it shall
4be refunded to the employer without interest.
5 (h) Notwithstanding any other provision of this Article,
6the employer contribution required under this Section shall not
7be included in the determination of any benefit under this
8Article or any other Article of this Code, regardless of
9whether the annuitant returns to active service, and is in
10addition to any other State or employer contribution required
11under this Article.
12 (i) Notwithstanding any other provision of this Section to
13the contrary, if an employer employs an affected annuitant in
14order to continue critical operations in the event of either an
15employee's unforeseen illness, accident, or death or a
16catastrophic incident or disaster, then, for one and only one
17academic year, the employer is not required to pay the
18contribution set forth in this Section for that annuitant. The
19employer shall, however, immediately notify the System upon
20employing a person subject to this subsection (i). For the
21purposes of this subsection (i), "critical operations" means
22teaching services, medical services, student welfare services,
23and any other services that are critical to the mission of the
24employer.
25 (j) This Section shall be applied and coordinated with the
26regulatory obligations contained in the State Universities

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1Civil Service Act. This Section shall not apply to an annuitant
2if the employer of that annuitant provides documentation to the
3System that (1) the annuitant is employed in a status
4appointment position, as that term is defined in 80 Ill. Adm.
5Code 250.80, and (2) due to obligations contained under the
6State Universities Civil Service Act, the employer does not
7have the ability to limit the earnings or duration of
8employment for the annuitant while employed in the status
9appointment position.
10(Source: P.A. 97-968, eff. 8-16-12; 98-596, eff. 11-19-13;
1198-1144, eff. 6-1-15.)
12 (40 ILCS 5/15-152) (from Ch. 108 1/2, par. 15-152)
13 Sec. 15-152. Disability benefits - Duration. Disability
14benefits shall be discontinued when the earliest of the
15following occurs: (1) when disability ceases, (2) upon refusal
16of the participant to submit to a reasonable physical
17examination by a physician approved by the board, (3) upon
18refusal of the participant to accept any position, assigned in
19good faith by an employer, the duties of which could reasonably
20be performed by the participant and the earnings of which would
21be at least equal to the disability benefit payable under this
22Article, (4) upon September 1, following the participant's 70th
23birthday, if the disability benefit commenced prior to
24attainment of age 65, (5) the end of the month following the
25fifth anniversary of the date disability benefits commenced, if

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1such benefits began after the attainment of age 65, or (6) when
2the total disability benefits paid equal 50% of the
3participant's total earnings for the entire period of
4employment for which service has been granted prior to the date
5disability benefits began to accrue, or (7) upon failure of the
6participant to provide an earnings verification necessary to
7determine continuance of benefits. If the disability was caused
8by an on-the-job accident, and the participant is granted
9workers' compensation or occupational disease payments from
10the employer or the State of Illinois, the limitation in clause
11(6) shall not be applicable.
12 Service and earnings credits under the State Employees'
13Retirement System of Illinois and the Teachers' Retirement
14System of the State of Illinois shall be considered in
15determining the employee's eligibility for, and the duration of
16disability benefits.
17 If, by law, a function of a governmental unit, as defined
18by Section 20-107 is transferred in whole or in part to an
19employer and an employee transfers employment from the
20governmental unit to such employer within 6 months after the
21transfer of this function, the pension credits in the
22governmental unit's retirement system which have been
23validated under Section 20-109, shall be treated the same as
24pension credits in this Section in determining an employee's
25eligibility for, and the duration of disability benefits.
26(Source: P.A. 86-273.)

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1 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
2 Sec. 15-153.2. Disability retirement annuity. A
3participant whose disability benefits are discontinued under
4the provisions of clause (6) of Section 15-152 and who is not a
5participant in the optional retirement plan established under
6Section 15-158.2 is entitled to a disability retirement annuity
7of 35% of the basic compensation which was payable to the
8participant at the time that disability began, provided that
9the board determines that the participant has a medically
10determinable physical or mental impairment that prevents him or
11her from engaging in any substantial gainful activity, and
12which can be expected to result in death or which has lasted or
13can be expected to last for a continuous period of not less
14than 12 months.
15 The board's determination of whether a participant is
16disabled shall be based upon:
17 (i) a written certificate from one or more licensed and
18 practicing physicians appointed by or acceptable to the
19 board, stating that the participant is unable to engage in
20 any substantial gainful activity; and
21 (ii) any other medical examinations, hospital records,
22 laboratory results, or other information necessary for
23 determining the employment capacity and condition of the
24 participant.
25 The terms "medically determinable physical or mental

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1impairment" and "substantial gainful activity" shall have the
2meanings ascribed to them in the federal Social Security Act,
3as now or hereafter amended, and the regulations issued
4thereunder.
5 The disability retirement annuity payment period shall
6begin immediately following the expiration of the disability
7benefit payments under clause (6) of Section 15-152 and shall
8be discontinued for a recipient of a disability retirement
9annuity when (1) the physical or mental impairment no longer
10prevents the recipient participant from engaging in any
11substantial gainful activity, (2) the recipient participant
12dies, or (3) the recipient participant elects to receive a
13retirement annuity under Sections 15-135 and 15-136, (4) the
14recipient refuses to submit to a reasonable physical
15examination by a physician approved by the board, or (5) the
16recipient fails to provide an earnings verification necessary
17to determine continuance of benefits. If a person's disability
18retirement annuity is discontinued under clause (1), all rights
19and credits accrued in the system on the date that the
20disability retirement annuity began shall be restored, and the
21disability retirement annuity paid shall be considered as
22disability payments under clause (6) of Section 15-152.
23 The board shall adopt rules governing the filing,
24investigation, control, and supervision of disability
25retirement annuity claims. Costs incurred by a claimant in
26connection with completing a claim for a disability retirement

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1annuity shall be paid: (A) by the claimant in the case of the
2one required medical examination, medical certificate, and any
3other requirements generally imposed by the board on all
4disability retirement annuity claimants; and (B) by the System
5in the case of any additional medical examination or other
6additional requirement imposed on a particular claimant that is
7not imposed generally on all disability retirement annuity
8claimants.
9(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
10 (40 ILCS 5/15-168.1)
11 Sec. 15-168.1. Testimony and the production of records. The
12secretary of the Board shall have the power to issue subpoenas
13to compel the attendance of witnesses and the production of
14documents and records, including law enforcement records
15maintained by law enforcement agencies, in conjunction with:
16 (1) the determination of employer payments required
17 under subsection (g) of Section 15-155; ,
18 (2) a disability claim; ,
19 (3) an administrative review proceeding; ,
20 (4) an attempt to obtain information to assist in the
21 collection of sums due to the System;
22 (5) obtaining any and all personal identifying
23 information necessary for the administration of benefits;
24 (6) the determination of the death of a benefit
25 recipient or a potential benefit recipient; or

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1 (7) a felony forfeiture investigation.
2 The fees of witnesses for attendance and travel shall be
3the same as the fees of witnesses before the circuit courts of
4this State and shall be paid by the party seeking the subpoena.
5The Board may apply to any circuit court in the State for an
6order requiring compliance with a subpoena issued under this
7Section. Subpoenas issued under this Section shall be subject
8to applicable provisions of the Code of Civil Procedure.
9(Source: P.A. 94-1057, eff. 7-31-06.)
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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