Illinois-2017-HB0315-Introduced

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0315

Introduced , by Rep. Mark Batinick

SYNOPSIS AS INTRODUCED:

See Index

Amends the General Assembly, State Employee, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. No later than January 1, 2018, requires each System to calculate the net present value of the pension benefits for each eligible person and to offer that eligible person the opportunity to elect to receive an accelerated pension benefit payment equal to 70% of the net present value of his or her pension benefits in lieu of receiving any pension benefit. Provides that the election must be made before July 1, 2018 and if a person elects to receive an accelerated pension benefit payment, his or her credits and creditable service under that Article shall be terminated upon receipt of the accelerated pension benefit payment; except that the terminated service credit shall be used for the purposes of determining participation and benefits under the State Employees Group Insurance Act of 1971. Makes other changes. Amends the State Employees Group Insurance Act of 1971 to make related changes. Amends the Illinois Finance Authority Act. Requires the Authority to issue bonds if the amount of the accelerated pension benefit payments exceed the amount appropriated to each System for those payments. Amends the General Obligation Bond Act. Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to be sold to pay for accelerated pension benefit payments to eligible persons. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Obligation Acceleration Bond Fund. Effective immediately.

LRB100 06229 RPS 16264 b

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The State 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

17 administration executed with the Department.

18 (b) "Annuitant" means (1) an employee who retires, or has

19 retired, on or after January 1, 1966 on an immediate annuity

20 under the provisions of Articles 2(including an employee who

21 meets the criteria for retirement, but in lieu of receiving an

22 annuity under that Article has elected to receive an

23 accelerated pension benefit payment under Section 2-154.5 of

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1 that Article), 14 (including an employee who has elected to

2 receive an alternative retirement cancellation payment under

3 Section 14-108.5 of the Illinois Pension Code in lieu of an

4 annuity or who meets the criteria for retirement, but in lieu

5 of receiving an annuity under that Article has elected to

6 receive an accelerated pension benefit payment under Section

7 14-147.5 of that Article), 15 (including an employee who has

8 retired under the optional retirement program established

9 under Section 15-158.2 or who meets the criteria for retirement

10 but in lieu of receiving an annuity under that Article has

11 elected to receive an accelerated pension benefit payment under

12 Section 15-185.5 of the Article), paragraphs (2), (3), or (5)

13 of Section 16-106 (including an employee who meets the criteria

14 for retirement, but in lieu of receiving an annuity under that

15 Article has elected to receive an accelerated pension benefit

16 payment under Section 16-190.5 of the Illinois Pension Code),

17 or Article 18(including an employee who meets the criteria for

18 retirement, but in lieu of receiving an annuity under that

19 Article, has elected to receive an accelerated pension benefit

20 payment under Section 18-161.5 of that Article) of the Illinois

21 Pension Code; (2) any person who was receiving group insurance

22 coverage under this Act as of March 31, 1978 by reason of his

23 status as an annuitant, even though the annuity in relation to

24 which such coverage was provided is a proportional annuity

25 based on less than the minimum period of service required for a

26 retirement annuity in the system involved; (3) any person not

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1 otherwise covered by this Act who has retired as a

2 participating member under Article 2 of the Illinois Pension

3 Code but is ineligible for the retirement annuity under Section

4 2-119 of the Illinois Pension Code; (4) the spouse of any

5 person who is receiving a retirement annuity under Article 18

6 of the Illinois Pension Code and who is covered under a group

7 health insurance program sponsored by a governmental employer

8 other than the State of Illinois and who has irrevocably

9 elected to waive his or her coverage under this Act and to have

10 his or her spouse considered as the "annuitant" under this Act

11 and not as a "dependent"; or (5) an employee who retires, or

12 has retired, from a qualified position, as determined according

13 to rules promulgated by the Director, under a qualified local

14 government, a qualified rehabilitation facility, a qualified

15 domestic violence shelter or service, or a qualified child

16 advocacy center. (For definition of "retired employee", see (p)

17 post).

18 (b-5) (Blank).

19 (b-6) (Blank).

20 (b-7) (Blank).

21 (c) "Carrier" means (1) an insurance company, a corporation

22 organized under the Limited Health Service Organization Act or

23 the Voluntary Health Services Plan Act, a partnership, or other

24 nongovernmental organization, which is authorized to do group

25 life or group health insurance business in Illinois, or (2) the

26 State of Illinois as a self-insurer.

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1 (d) "Compensation" means salary or wages payable on a

2 regular payroll by the State Treasurer on a warrant of the

3 State Comptroller out of any State, trust or federal fund, or

4 by the Governor of the State through a disbursing officer of

5 the State out of a trust or out of federal funds, or by any

6 Department out of State, trust, federal or other funds held by

7 the State Treasurer or the Department, to any person for

8 personal services currently performed, and ordinary or

9 accidental disability benefits under Articles 2, 14, 15

10 (including ordinary or accidental disability benefits under

11 the optional retirement program established under Section

12 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or

13 Article 18 of the Illinois Pension Code, for disability

14 incurred after January 1, 1966, or benefits payable under the

15 Workers' Compensation or Occupational Diseases Act or benefits

16 payable under a sick pay plan established in accordance with

17 Section 36 of the State Finance Act. "Compensation" also means

18 salary or wages paid to an employee of any qualified local

19 government, qualified rehabilitation facility, qualified

20 domestic violence shelter or service, or qualified child

21 advocacy center.

22 (e) "Commission" means the State Employees Group Insurance

23 Advisory Commission authorized by this Act. Commencing July 1,

24 1984, "Commission" as used in this Act means the Commission on

25 Government Forecasting and Accountability as established by

26 the Legislative Commission Reorganization Act of 1984.

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1 (f) "Contributory", when referred to as contributory

2 coverage, shall mean optional coverages or benefits elected by

3 the member toward the cost of which such member makes

4 contribution, or which are funded in whole or in part through

5 the acceptance of a reduction in earnings or the foregoing of

6 an increase in earnings by an employee, as distinguished from

7 noncontributory coverage or benefits which are paid entirely by

8 the State of Illinois without reduction of the member's salary.

9 (g) "Department" means any department, institution, board,

10 commission, officer, court or any agency of the State

11 government receiving appropriations and having power to

12 certify payrolls to the Comptroller authorizing payments of

13 salary and wages against such appropriations as are made by the

14 General Assembly from any State fund, or against trust funds

15 held by the State Treasurer and includes boards of trustees of

16 the retirement systems created by Articles 2, 14, 15, 16 and 18

17 of the Illinois Pension Code. "Department" also includes the

18 Illinois Comprehensive Health Insurance Board, the Board of

19 Examiners established under the Illinois Public Accounting

20 Act, and the Illinois Finance Authority.

21 (h) "Dependent", when the term is used in the context of

22 the health and life plan, means a member's spouse and any child

23 (1) from birth to age 26 including an adopted child, a child

24 who lives with the member from the time of the filing of a

25 petition for adoption until entry of an order of adoption, a

26 stepchild or adjudicated child, or a child who lives with the

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1 member if such member is a court appointed guardian of the

2 child or (2) age 19 or over who has a mental or physical

3 disability from a cause originating prior to the age of 19 (age

4 26 if enrolled as an adult child dependent). For the health

5 plan only, the term "dependent" also includes (1) any person

6 enrolled prior to the effective date of this Section who is

7 dependent upon the member to the extent that the member may

8 claim such person as a dependent for income tax deduction

9 purposes and (2) any person who has received after June 30,

10 2000 an organ transplant and who is financially dependent upon

11 the member and eligible to be claimed as a dependent for income

12 tax purposes. A member requesting to cover any dependent must

13 provide documentation as requested by the Department of Central

14 Management Services and file with the Department any and all

15 forms required by the Department.

16 (i) "Director" means the Director of the Illinois

17 Department of Central Management Services.

18 (j) "Eligibility period" means the period of time a member

19 has to elect enrollment in programs or to select benefits

20 without regard to age, sex or health.

21 (k) "Employee" means and includes each officer or employee

22 in the service of a department who (1) receives his

23 compensation for service rendered to the department on a

24 warrant issued pursuant to a payroll certified by a department

25 or on a warrant or check issued and drawn by a department upon

26 a trust, federal or other fund or on a warrant issued pursuant

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1 to a payroll certified by an elected or duly appointed officer

2 of the State or who receives payment of the performance of

3 personal services on a warrant issued pursuant to a payroll

4 certified by a Department and drawn by the Comptroller upon the

5 State Treasurer against appropriations made by the General

6 Assembly from any fund or against trust funds held by the State

7 Treasurer, and (2) is employed full-time or part-time in a

8 position normally requiring actual performance of duty during

9 not less than 1/2 of a normal work period, as established by

10 the Director in cooperation with each department, except that

11 persons elected by popular vote will be considered employees

12 during the entire term for which they are elected regardless of

13 hours devoted to the service of the State, and (3) except that

14 "employee" does not include any person who is not eligible by

15 reason of such person's employment to participate in one of the

16 State retirement systems under Articles 2, 14, 15 (either the

17 regular Article 15 system or the optional retirement program

18 established under Section 15-158.2) or 18, or under paragraph

19 (2), (3), or (5) of Section 16-106, of the Illinois Pension

20 Code, but such term does include persons who are employed

21 during the 6 month qualifying period under Article 14 of the

22 Illinois Pension Code. Such term also includes any person who

23 (1) after January 1, 1966, is receiving ordinary or accidental

24 disability benefits under Articles 2, 14, 15 (including

25 ordinary or accidental disability benefits under the optional

26 retirement program established under Section 15-158.2),

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1 paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of

2 the Illinois Pension Code, for disability incurred after

3 January 1, 1966, (2) receives total permanent or total

4 temporary disability under the Workers' Compensation Act or

5 Occupational Disease Act as a result of injuries sustained or

6 illness contracted in the course of employment with the State

7 of Illinois, or (3) is not otherwise covered under this Act and

8 has retired as a participating member under Article 2 of the

9 Illinois Pension Code but is ineligible for the retirement

10 annuity under Section 2-119 of the Illinois Pension Code.

11 However, a person who satisfies the criteria of the foregoing

12 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 is also an "employee" for the purposes of

16 this Act. "Employee" also includes any person receiving or

17 eligible for benefits under a sick pay plan established in

18 accordance with Section 36 of the State Finance Act. "Employee"

19 also includes (i) each officer or employee in the service of a

20 qualified local government, including persons appointed as

21 trustees of sanitary districts regardless of hours devoted to

22 the service of the sanitary district, (ii) each employee in the

23 service of a qualified rehabilitation facility, (iii) each

24 full-time employee in the service of a qualified domestic

25 violence shelter or service, and (iv) each full-time employee

26 in the service of a qualified child advocacy center, as

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1 determined according to rules promulgated by the Director.

2 (l) "Member" means an employee, annuitant, retired

3 employee or survivor. In the case of an annuitant or retired

4 employee who first becomes an annuitant or retired employee on

5 or after the effective date of this amendatory Act of the 97th

6 General Assembly, the individual must meet the minimum vesting

7 requirements of the applicable retirement system in order to be

8 eligible for group insurance benefits under that system. In the

9 case of a survivor who first becomes a survivor on or after the

10 effective date of this amendatory Act of the 97th General

11 Assembly, the deceased employee, annuitant, or retired

12 employee upon whom the annuity is based must have been eligible

13 to participate in the group insurance system under the

14 applicable retirement system in order for the survivor to be

15 eligible for group insurance benefits under that system.

16 (m) "Optional coverages or benefits" means those coverages

17 or benefits available to the member on his or her voluntary

18 election, and at his or her own expense.

19 (n) "Program" means the group life insurance, health

20 benefits and other employee benefits designed and contracted

21 for by the Director under this Act.

22 (o) "Health plan" means a health benefits program offered

23 by the State of Illinois for persons eligible for the plan.

24 (p) "Retired employee" means any person who would be an

25 annuitant as that term is defined herein but for the fact that

26 such person retired prior to January 1, 1966. Such term also

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1 includes any person formerly employed by the University of

2 Illinois in the Cooperative Extension Service who would be an

3 annuitant but for the fact that such person was made ineligible

4 to participate in the State Universities Retirement System by

5 clause (4) of subsection (a) of Section 15-107 of the Illinois

6 Pension Code.

7 (q) "Survivor" means a person receiving an annuity as a

8 survivor of an employee or of an annuitant. "Survivor" also

9 includes: (1) the surviving dependent of a person who satisfies

10 the definition of "employee" except that such person is made

11 ineligible to participate in the State Universities Retirement

12 System by clause (4) of subsection (a) of Section 15-107 of the

13 Illinois Pension Code; (2) the surviving dependent of any

14 person formerly employed by the University of Illinois in the

15 Cooperative Extension Service who would be an annuitant except

16 for the fact that such person was made ineligible to

17 participate in the State Universities Retirement System by

18 clause (4) of subsection (a) of Section 15-107 of the Illinois

19 Pension Code; and (3) the surviving dependent of a person who

20 was an annuitant under this Act by virtue of receiving an

21 alternative retirement cancellation payment under Section

22 14-108.5 of the Illinois Pension Code.

23 (q-2) "SERS" means the State Employees' Retirement System

24 of Illinois, created under Article 14 of the Illinois Pension

25 Code.

26 (q-3) "SURS" means the State Universities Retirement

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1 System, created under Article 15 of the Illinois Pension Code.

2 (q-4) "TRS" means the Teachers' Retirement System of the

3 State of Illinois, created under Article 16 of the Illinois

4 Pension Code.

5 (q-5) (Blank).

6 (q-6) (Blank).

7 (q-7) (Blank).

8 (r) "Medical services" means the services provided within

9 the scope of their licenses by practitioners in all categories

10 licensed under the Medical Practice Act of 1987.

11 (s) "Unit of local government" means any county,

12 municipality, township, school district (including a

13 combination of school districts under the Intergovernmental

14 Cooperation Act), special district or other unit, designated as

15 a unit of local government by law, which exercises limited

16 governmental powers or powers in respect to limited

17 governmental subjects, any not-for-profit association with a

18 membership that primarily includes townships and township

19 officials, that has duties that include provision of research

20 service, dissemination of information, and other acts for the

21 purpose of improving township government, and that is funded

22 wholly or partly in accordance with Section 85-15 of the

23 Township Code; any not-for-profit corporation or association,

24 with a membership consisting primarily of municipalities, that

25 operates its own utility system, and provides research,

26 training, dissemination of information, or other acts to

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1 promote cooperation between and among municipalities that

2 provide utility services and for the advancement of the goals

3 and purposes of its membership; the Southern Illinois

4 Collegiate Common Market, which is a consortium of higher

5 education institutions in Southern Illinois; the Illinois

6 Association of Park Districts; and any hospital provider that

7 is owned by a county that has 100 or fewer hospital beds and

8 has not already joined the program. "Qualified local

9 government" means a unit of local government approved by the

10 Director and participating in a program created under

11 subsection (i) of Section 10 of this Act.

12 (t) "Qualified rehabilitation facility" means any

13 not-for-profit organization that is accredited by the

14 Commission on Accreditation of Rehabilitation Facilities or

15 certified by the Department of Human Services (as successor to

16 the Department of Mental Health and Developmental

17 Disabilities) to provide services to persons with disabilities

18 and which receives funds from the State of Illinois for

19 providing those services, approved by the Director and

20 participating in a program created under subsection (j) of

21 Section 10 of this Act.

22 (u) "Qualified domestic violence shelter or service" means

23 any Illinois domestic violence shelter or service and its

24 administrative offices funded by the Department of Human

25 Services (as successor to the Illinois Department of Public

26 Aid), approved by the Director and participating in a program

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1 created under subsection (k) of Section 10.

2 (v) "TRS benefit recipient" means a person who:

3 (1) is not a "member" as defined in this Section; and

4 (2) is receiving a monthly benefit or retirement

5 annuity under Article 16 of the Illinois Pension Code; and

6 (3) either (i) has at least 8 years of creditable

7 service under Article 16 of the Illinois Pension Code, or

8 (ii) was enrolled in the health insurance program offered

9 under that Article on January 1, 1996, or (iii) is the

10 survivor of a benefit recipient who had at least 8 years of

11 creditable service under Article 16 of the Illinois Pension

12 Code or was enrolled in the health insurance program

13 offered under that Article on the effective date of this

14 amendatory Act of 1995, or (iv) is a recipient or survivor

15 of a recipient of a disability benefit under Article 16 of

16 the Illinois Pension Code.

17 (w) "TRS dependent beneficiary" means a person who:

18 (1) is not a "member" or "dependent" as defined in this

19 Section; and

20 (2) is a TRS benefit recipient's: (A) spouse, (B)

21 dependent parent who is receiving at least half of his or

22 her support from the TRS benefit recipient, or (C) natural,

23 step, adjudicated, or adopted child who is (i) under age

24 26, (ii) was, on January 1, 1996, participating as a

25 dependent beneficiary in the health insurance program

26 offered under Article 16 of the Illinois Pension Code, or

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1 (iii) age 19 or over who has a mental or physical

2 disability from a cause originating prior to the age of 19

3 (age 26 if enrolled as an adult child).

4 "TRS dependent beneficiary" does not include, as indicated

5 under paragraph (2) of this subsection (w), a dependent of the

6 survivor of a TRS benefit recipient who first becomes a

7 dependent of a survivor of a TRS benefit recipient on or after

8 the effective date of this amendatory Act of the 97th General

9 Assembly unless that dependent would have been eligible for

10 coverage as a dependent of the deceased TRS benefit recipient

11 upon whom the survivor benefit is based.

12 (x) "Military leave" refers to individuals in basic

13 training for reserves, special/advanced training, annual

14 training, emergency call up, activation by the President of the

15 United States, or any other training or duty in service to the

16 United States Armed Forces.

17 (y) (Blank).

18 (z) "Community college benefit recipient" means a person

19 who:

20 (1) is not a "member" as defined in this Section; and

21 (2) is receiving a monthly survivor's annuity or

22 retirement annuity under Article 15 of the Illinois Pension

23 Code; and

24 (3) either (i) was a full-time employee of a community

25 college district or an association of community college

26 boards created under the Public Community College Act

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1 (other than an employee whose last employer under Article

2 15 of the Illinois Pension Code was a community college

3 district subject to Article VII of the Public Community

4 College Act) and was eligible to participate in a group

5 health benefit plan as an employee during the time of

6 employment with a community college district (other than a

7 community college district subject to Article VII of the

8 Public Community College Act) or an association of

9 community college boards, or (ii) is the survivor of a

10 person described in item (i).

11 (aa) "Community college dependent beneficiary" means a

12 person who:

13 (1) is not a "member" or "dependent" as defined in this

14 Section; and

15 (2) is a community college benefit recipient's: (A)

16 spouse, (B) dependent parent who is receiving at least half

17 of his or her support from the community college benefit

18 recipient, or (C) natural, step, adjudicated, or adopted

19 child who is (i) under age 26, or (ii) age 19 or over and

20 has a mental or physical disability from a cause

21 originating prior to the age of 19 (age 26 if enrolled as

22 an adult child).

23 "Community college dependent beneficiary" does not

24 include, as indicated under paragraph (2) of this subsection

25 (aa), a dependent of the survivor of a community college

26 benefit recipient who first becomes a dependent of a survivor

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1 of a community college benefit recipient on or after the

2 effective date of this amendatory Act of the 97th General

3 Assembly unless that dependent would have been eligible for

4 coverage as a dependent of the deceased community college

5 benefit recipient upon whom the survivor annuity is based.

6 (bb) "Qualified child advocacy center" means any Illinois

7 child advocacy center and its administrative offices funded by

8 the Department of Children and Family Services, as defined by

9 the Children's Advocacy Center Act (55 ILCS 80/), approved by

10 the Director and participating in a program created under

11 subsection (n) of Section 10.

12 (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)

13 (5 ILCS 375/10) (from Ch. 127, par. 530)

14 Sec. 10. Contributions by the State and members.

15 (a) The State shall pay the cost of basic non-contributory

16 group life insurance and, subject to member paid contributions

17 set by the Department or required by this Section and except as

18 provided in this Section, the basic program of group health

19 benefits on each eligible member, except a member, not

20 otherwise covered by this Act, who has retired as a

21 participating member under Article 2 of the Illinois Pension

22 Code but is ineligible for the retirement annuity under Section

23 2-119 of the Illinois Pension Code, and part of each eligible

24 member's and retired member's premiums for health insurance

25 coverage for enrolled dependents as provided by Section 9. The

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1 State shall pay the cost of the basic program of group health

2 benefits only after benefits are reduced by the amount of

3 benefits covered by Medicare for all members and dependents who

4 are eligible for benefits under Social Security or the Railroad

5 Retirement system or who had sufficient Medicare-covered

6 government employment, except that such reduction in benefits

7 shall apply only to those members and dependents who (1) first

8 become eligible for such Medicare coverage on or after July 1,

9 1992; or (2) are Medicare-eligible members or dependents of a

10 local government unit which began participation in the program

11 on or after July 1, 1992; or (3) remain eligible for, but no

12 longer receive Medicare coverage which they had been receiving

13 on or after July 1, 1992. The Department may determine the

14 aggregate level of the State's contribution on the basis of

15 actual cost of medical services adjusted for age, sex or

16 geographic or other demographic characteristics which affect

17 the costs of such programs.

18 The cost of participation in the basic program of group

19 health benefits for the dependent or survivor of a living or

20 deceased retired employee who was formerly employed by the

21 University of Illinois in the Cooperative Extension Service and

22 would be an annuitant but for the fact that he or she was made

23 ineligible to participate in the State Universities Retirement

24 System by clause (4) of subsection (a) of Section 15-107 of the

25 Illinois Pension Code shall not be greater than the cost of

26 participation that would otherwise apply to that dependent or

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1 survivor if he or she were the dependent or survivor of an

2 annuitant under the State Universities Retirement System.

3 (a-1) (Blank).

4 (a-2) (Blank).

5 (a-3) (Blank).

6 (a-4) (Blank).

7 (a-5) (Blank).

8 (a-6) (Blank).

9 (a-7) (Blank).

10 (a-8) Any annuitant, survivor, or retired employee may

11 waive or terminate coverage in the program of group health

12 benefits. Any such annuitant, survivor, or retired employee who

13 has waived or terminated coverage may enroll or re-enroll in

14 the program of group health benefits only during the annual

15 benefit choice period, as determined by the Director; except

16 that in the event of termination of coverage due to nonpayment

17 of premiums, the annuitant, survivor, or retired employee may

18 not re-enroll in the program.

19 (a-8.5) Beginning on the effective date of this amendatory

20 Act of the 97th General Assembly, the Director of Central

21 Management Services shall, on an annual basis, determine the

22 amount that the State shall contribute toward the basic program

23 of group health benefits on behalf of annuitants (including

24 individuals who (i) participated in the General Assembly

25 Retirement System, the State Employees' Retirement System of

26 Illinois, the State Universities Retirement System, the

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1 Teachers' Retirement System of the State of Illinois, or the

2 Judges Retirement System of Illinois and (ii) qualify as

3 annuitants under subsection (b) of Section 3 of this Act),

4 survivors (including individuals who (i) receive an annuity as

5 a survivor of an individual who participated in the General

6 Assembly Retirement System, the State Employees' Retirement

7 System of Illinois, the State Universities Retirement System,

8 the Teachers' Retirement System of the State of Illinois, or

9 the Judges Retirement System of Illinois and (ii) qualify as

10 survivors under subsection (q) of Section 3 of this Act), and

11 retired employees (as defined in subsection (p) of Section 3 of

12 this Act). The remainder of the cost of coverage for each

13 annuitant, survivor, or retired employee, as determined by the

14 Director of Central Management Services, shall be the

15 responsibility of that annuitant, survivor, or retired

16 employee.

17 Contributions required of annuitants, survivors, and

18 retired employees shall be the same for all retirement systems

19 and shall also be based on whether an individual has made an

20 election under Section 15-135.1 of the Illinois Pension Code.

21 Contributions may be based on annuitants', survivors', or

22 retired employees' Medicare eligibility, but may not be based

23 on Social Security eligibility.

24 (a-9) No later than May 1 of each calendar year, the

25 Director of Central Management Services shall certify in

26 writing to the Executive Secretary of the State Employees'

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1 Retirement System of Illinois the amounts of the Medicare

2 supplement health care premiums and the amounts of the health

3 care premiums for all other retirees who are not Medicare

4 eligible.

5 A separate calculation of the premiums based upon the

6 actual cost of each health care plan shall be so certified.

7 The Director of Central Management Services shall provide

8 to the Executive Secretary of the State Employees' Retirement

9 System of Illinois such information, statistics, and other data

10 as he or she may require to review the premium amounts

11 certified by the Director of Central Management Services.

12 The Department of Central Management Services, or any

13 successor agency designated to procure healthcare contracts

14 pursuant to this Act, is authorized to establish funds,

15 separate accounts provided by any bank or banks as defined by

16 the Illinois Banking Act, or separate accounts provided by any

17 savings and loan association or associations as defined by the

18 Illinois Savings and Loan Act of 1985 to be held by the

19 Director, outside the State treasury, for the purpose of

20 receiving the transfer of moneys from the Local Government

21 Health Insurance Reserve Fund. The Department may promulgate

22 rules further defining the methodology for the transfers. Any

23 interest earned by moneys in the funds or accounts shall inure

24 to the Local Government Health Insurance Reserve Fund. The

25 transferred moneys, and interest accrued thereon, shall be used

26 exclusively for transfers to administrative service

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LRB100 06229 RPS 16264 b

1 organizations or their financial institutions for payments of

2 claims to claimants and providers under the self-insurance

3 health plan. The transferred moneys, and interest accrued

4 thereon, shall not be used for any other purpose including, but

5 not limited to, reimbursement of administration fees due the

6 administrative service organization pursuant to its contract

7 or contracts with the Department.

8 (a-10) To the extent that participation, benefits, or

9 premiums under this Act are based on a person's service credit

10 under an Article of the Illinois Pension Code, service credit

11 terminated in exchange for an accelerated pension benefit

12 payment under Section 2-154.5, 14-147.5, 15-185.5, 16-190.5,

13 or 18-161.5 of that Code shall be included in determining a

14 person's service credit for the purposes of this Act.

15 (b) State employees who become eligible for this program on

16 or after January 1, 1980 in positions normally requiring actual

17 performance of duty not less than 1/2 of a normal work period

18 but not equal to that of a normal work period, shall be given

19 the option of participating in the available program. If the

20 employee elects coverage, the State shall contribute on behalf

21 of such employee to the cost of the employee's benefit and any

22 applicable dependent supplement, that sum which bears the same

23 percentage as that percentage of time the employee regularly

24 works when compared to normal work period.

25 (c) The basic non-contributory coverage from the basic

26 program of group health benefits shall be continued for each

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LRB100 06229 RPS 16264 b

1 employee not in pay status or on active service by reason of

2 (1) leave of absence due to illness or injury, (2) authorized

3 educational leave of absence or sabbatical leave, or (3)

4 military leave. This coverage shall continue until expiration

5 of authorized leave and return to active service, but not to

6 exceed 24 months for leaves under item (1) or (2). This

7 24-month limitation and the requirement of returning to active

8 service shall not apply to persons receiving ordinary or

9 accidental disability benefits or retirement benefits through

10 the appropriate State retirement system or benefits under the

11 Workers' Compensation or Occupational Disease Act.

12 (d) The basic group life insurance coverage shall continue,

13 with full State contribution, where such person is (1) absent

14 from active service by reason of disability arising from any

15 cause other than self-inflicted, (2) on authorized educational

16 leave of absence or sabbatical leave, or (3) on military leave.

17 (e) Where the person is in non-pay status for a period in

18 excess of 30 days or on leave of absence, other than by reason

19 of disability, educational or sabbatical leave, or military

20 leave, such person may continue coverage only by making

21 personal payment equal to the amount normally contributed by

22 the State on such person's behalf. Such payments and coverage

23 may be continued: (1) until such time as the person returns to

24 a status eligible for coverage at State expense, but not to

25 exceed 24 months or (2) until such person's employment or

26 annuitant status with the State is terminated (exclusive of any

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LRB100 06229 RPS 16264 b

1 additional service imposed pursuant to law).

2 (f) The Department shall establish by rule the extent to

3 which other employee benefits will continue for persons in

4 non-pay status or who are not in active service.

5 (g) The State shall not pay the cost of the basic

6 non-contributory group life insurance, program of health

7 benefits and other employee benefits for members who are

8 survivors as defined by paragraphs (1) and (2) of subsection

9 (q) of Section 3 of this Act. The costs of benefits for these

10 survivors shall be paid by the survivors or by the University

11 of Illinois Cooperative Extension Service, or any combination

12 thereof. However, the State shall pay the amount of the

13 reduction in the cost of participation, if any, resulting from

14 the amendment to subsection (a) made by this amendatory Act of

15 the 91st General Assembly.

16 (h) Those persons occupying positions with any department

17 as a result of emergency appointments pursuant to Section 8b.8

18 of the Personnel Code who are not considered employees under

19 this Act shall be given the option of participating in the

20 programs of group life insurance, health benefits and other

21 employee benefits. Such persons electing coverage may

22 participate only by making payment equal to the amount normally

23 contributed by the State for similarly situated employees. Such

24 amounts shall be determined by the Director. Such payments and

25 coverage may be continued until such time as the person becomes

26 an employee pursuant to this Act or such person's appointment

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LRB100 06229 RPS 16264 b

1 is terminated.

2 (i) Any unit of local government within the State of

3 Illinois may apply to the Director to have its employees,

4 annuitants, and their dependents provided group health

5 coverage under this Act on a non-insured basis. To participate,

6 a unit of local government must agree to enroll all of its

7 employees, who may select coverage under either the State group

8 health benefits plan or a health maintenance organization that

9 has contracted with the State to be available as a health care

10 provider for employees as defined in this Act. A unit of local

11 government must remit the entire cost of providing coverage

12 under the State group health benefits plan or, for coverage

13 under a health maintenance organization, an amount determined

14 by the Director based on an analysis of the sex, age,

15 geographic location, or other relevant demographic variables

16 for its employees, except that the unit of local government

17 shall not be required to enroll those of its employees who are

18 covered spouses or dependents under this plan or another group

19 policy or plan providing health benefits as long as (1) an

20 appropriate official from the unit of local government attests

21 that each employee not enrolled is a covered spouse or

22 dependent under this plan or another group policy or plan, and

23 (2) at least 50% of the employees are enrolled and the unit of

24 local government remits the entire cost of providing coverage

25 to those employees, except that a participating school district

26 must have enrolled at least 50% of its full-time employees who

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LRB100 06229 RPS 16264 b

1 have not waived coverage under the district's group health plan

2 by participating in a component of the district's cafeteria

3 plan. A participating school district is not required to enroll

4 a full-time employee who has waived coverage under the

5 district's health plan, provided that an appropriate official

6 from the participating school district attests that the

7 full-time employee has waived coverage by participating in a

8 component of the district's cafeteria plan. For the purposes of

9 this subsection, "participating school district" includes a

10 unit of local government whose primary purpose is education as

11 defined by the Department's rules.

12 Employees of a participating unit of local government who

13 are not enrolled due to coverage under another group health

14 policy or plan may enroll in the event of a qualifying change

15 in status, special enrollment, special circumstance as defined

16 by the Director, or during the annual Benefit Choice Period. A

17 participating unit of local government may also elect to cover

18 its annuitants. Dependent coverage shall be offered on an

19 optional basis, with the costs paid by the unit of local

20 government, its employees, or some combination of the two as

21 determined by the unit of local government. The unit of local

22 government shall be responsible for timely collection and

23 transmission of dependent premiums.

24 The Director shall annually determine monthly rates of

25 payment, subject to the following constraints:

26 (1) In the first year of coverage, the rates shall be

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LRB100 06229 RPS 16264 b

1 equal to the amount normally charged to State employees for

2 elected optional coverages or for enrolled dependents

3 coverages or other contributory coverages, or contributed

4 by the State for basic insurance coverages on behalf of its

5 employees, adjusted for differences between State

6 employees and employees of the local government in age,

7 sex, geographic location or other relevant demographic

8 variables, plus an amount sufficient to pay for the

9 additional administrative costs of providing coverage to

10 employees of the unit of local government and their

11 dependents.

12 (2) In subsequent years, a further adjustment shall be

13 made to reflect the actual prior years' claims experience

14 of the employees of the unit of local government.

15 In the case of coverage of local government employees under

16 a health maintenance organization, the Director shall annually

17 determine for each participating unit of local government the

18 maximum monthly amount the unit may contribute toward that

19 coverage, based on an analysis of (i) the age, sex, geographic

20 location, and other relevant demographic variables of the

21 unit's employees and (ii) the cost to cover those employees

22 under the State group health benefits plan. The Director may

23 similarly determine the maximum monthly amount each unit of

24 local government may contribute toward coverage of its

25 employees' dependents under a health maintenance organization.

26 Monthly payments by the unit of local government or its

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LRB100 06229 RPS 16264 b

1 employees for group health benefits plan or health maintenance

2 organization coverage shall be deposited in the Local

3 Government Health Insurance Reserve Fund.

4 The Local Government Health Insurance Reserve Fund is

5 hereby created as a nonappropriated trust fund to be held

6 outside the State Treasury, with the State Treasurer as

7 custodian. The Local Government Health Insurance Reserve Fund

8 shall be a continuing fund not subject to fiscal year

9 limitations. The Local Government Health Insurance Reserve

10 Fund is not subject to administrative charges or charge-backs,

11 including but not limited to those authorized under Section 8h

12 of the State Finance Act. All revenues arising from the

13 administration of the health benefits program established

14 under this Section shall be deposited into the Local Government

15 Health Insurance Reserve Fund. Any interest earned on moneys in

16 the Local Government Health Insurance Reserve Fund shall be

17 deposited into the Fund. All expenditures from this Fund shall

18 be used for payments for health care benefits for local

19 government and rehabilitation facility employees, annuitants,

20 and dependents, and to reimburse the Department or its

21 administrative service organization for all expenses incurred

22 in the administration of benefits. No other State funds may be

23 used for these purposes.

24 A local government employer's participation or desire to

25 participate in a program created under this subsection shall

26 not limit that employer's duty to bargain with the

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LRB100 06229 RPS 16264 b

1 representative of any collective bargaining unit of its

2 employees.

3 (j) Any rehabilitation facility within the State of

4 Illinois may apply to the Director to have its employees,

5 annuitants, and their eligible dependents provided group

6 health coverage under this Act on a non-insured basis. To

7 participate, a rehabilitation facility must agree to enroll all

8 of its employees and remit the entire cost of providing such

9 coverage for its employees, except that the rehabilitation

10 facility shall not be required to enroll those of its employees

11 who are covered spouses or dependents under this plan or

12 another group policy or plan providing health benefits as long

13 as (1) an appropriate official from the rehabilitation facility

14 attests that each employee not enrolled is a covered spouse or

15 dependent under this plan or another group policy or plan, and

16 (2) at least 50% of the employees are enrolled and the

17 rehabilitation facility remits the entire cost of providing

18 coverage to those employees. Employees of a participating

19 rehabilitation facility who are not enrolled due to coverage

20 under another group health policy or plan may enroll in the

21 event of a qualifying change in status, special enrollment,

22 special circumstance as defined by the Director, or during the

23 annual Benefit Choice Period. A participating rehabilitation

24 facility may also elect to cover its annuitants. Dependent

25 coverage shall be offered on an optional basis, with the costs

26 paid by the rehabilitation facility, its employees, or some

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LRB100 06229 RPS 16264 b

1 combination of the 2 as determined by the rehabilitation

2 facility. The rehabilitation facility shall be responsible for

3 timely collection and transmission of dependent premiums.

4 The Director shall annually determine quarterly rates of

5 payment, subject to the following constraints:

6 (1) In the first year of coverage, the rates shall be

7 equal to the amount normally charged to State employees for

8 elected optional coverages or for enrolled dependents

9 coverages or other contributory coverages on behalf of its

10 employees, adjusted for differences between State

11 employees and employees of the rehabilitation facility in

12 age, sex, geographic location or other relevant

13 demographic variables, plus an amount sufficient to pay for

14 the additional administrative costs of providing coverage

15 to employees of the rehabilitation facility and their

16 dependents.

17 (2) In subsequent years, a further adjustment shall be

18 made to reflect the actual prior years' claims experience

19 of the employees of the rehabilitation facility.

20 Monthly payments by the rehabilitation facility or its

21 employees for group health benefits shall be deposited in the

22 Local Government Health Insurance Reserve Fund.

23 (k) Any domestic violence shelter or service within the

24 State of Illinois may apply to the Director to have its

25 employees, annuitants, and their dependents provided group

26 health coverage under this Act on a non-insured basis. To

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LRB100 06229 RPS 16264 b

1 participate, a domestic violence shelter or service must agree

2 to enroll all of its employees and pay the entire cost of

3 providing such coverage for its employees. The domestic

4 violence shelter shall not be required to enroll those of its

5 employees who are covered spouses or dependents under this plan

6 or another group policy or plan providing health benefits as

7 long as (1) an appropriate official from the domestic violence

8 shelter attests that each employee not enrolled is a covered

9 spouse or dependent under this plan or another group policy or

10 plan and (2) at least 50% of the employees are enrolled and the

11 domestic violence shelter remits the entire cost of providing

12 coverage to those employees. Employees of a participating

13 domestic violence shelter who are not enrolled due to coverage

14 under another group health policy or plan may enroll in the

15 event of a qualifying change in status, special enrollment, or

16 special circumstance as defined by the Director or during the

17 annual Benefit Choice Period. A participating domestic

18 violence shelter may also elect to cover its annuitants.

19 Dependent coverage shall be offered on an optional basis, with

20 employees, or some combination of the 2 as determined by the

21 domestic violence shelter or service. The domestic violence

22 shelter or service shall be responsible for timely collection

23 and transmission of dependent premiums.

24 The Director shall annually determine rates of payment,

25 subject to the following constraints:

26 (1) In the first year of coverage, the rates shall be

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LRB100 06229 RPS 16264 b

1 equal to the amount normally charged to State employees for

2 elected optional coverages or for enrolled dependents

3 coverages or other contributory coverages on behalf of its

4 employees, adjusted for differences between State

5 employees and employees of the domestic violence shelter or

6 service in age, sex, geographic location or other relevant

7 demographic variables, plus an amount sufficient to pay for

8 the additional administrative costs of providing coverage

9 to employees of the domestic violence shelter or service

10 and their dependents.

11 (2) In subsequent years, a further adjustment shall be

12 made to reflect the actual prior years' claims experience

13 of the employees of the domestic violence shelter or

14 service.

15 Monthly payments by the domestic violence shelter or

16 service or its employees for group health insurance shall be

17 deposited in the Local Government Health Insurance Reserve

18 Fund.

19 (l) A public community college or entity organized pursuant

20 to the Public Community College Act may apply to the Director

21 initially to have only annuitants not covered prior to July 1,

22 1992 by the district's health plan provided health coverage

23 under this Act on a non-insured basis. The community college

24 must execute a 2-year contract to participate in the Local

25 Government Health Plan. Any annuitant may enroll in the event

26 of a qualifying change in status, special enrollment, special

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LRB100 06229 RPS 16264 b

1 circumstance as defined by the Director, or during the annual

2 Benefit Choice Period.

3 The Director shall annually determine monthly rates of

4 payment subject to the following constraints: for those

5 community colleges with annuitants only enrolled, first year

6 rates shall be equal to the average cost to cover claims for a

7 State member adjusted for demographics, Medicare

8 participation, and other factors; and in the second year, a

9 further adjustment of rates shall be made to reflect the actual

10 first year's claims experience of the covered annuitants.

11 (l-5) The provisions of subsection (l) become inoperative

12 on July 1, 1999.

13 (m) The Director shall adopt any rules deemed necessary for

14 implementation of this amendatory Act of 1989 (Public Act

15 86-978).

16 (n) Any child advocacy center within the State of Illinois

17 may apply to the Director to have its employees, annuitants,

18 and their dependents provided group health coverage under this

19 Act on a non-insured basis. To participate, a child advocacy

20 center must agree to enroll all of its employees and pay the

21 entire cost of providing coverage for its employees. The child

22 advocacy center shall not be required to enroll those of its

23 employees who are covered spouses or dependents under this plan

24 or another group policy or plan providing health benefits as

25 long as (1) an appropriate official from the child advocacy

26 center attests that each employee not enrolled is a covered

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LRB100 06229 RPS 16264 b

1 spouse or dependent under this plan or another group policy or

2 plan and (2) at least 50% of the employees are enrolled and the

3 child advocacy center remits the entire cost of providing

4 coverage to those employees. Employees of a participating child

5 advocacy center who are not enrolled due to coverage under

6 another group health policy or plan may enroll in the event of

7 a qualifying change in status, special enrollment, or special

8 circumstance as defined by the Director or during the annual

9 Benefit Choice Period. A participating child advocacy center

10 may also elect to cover its annuitants. Dependent coverage

11 shall be offered on an optional basis, with the costs paid by

12 the child advocacy center, its employees, or some combination

13 of the 2 as determined by the child advocacy center. The child

14 advocacy center shall be responsible for timely collection and

15 transmission of dependent premiums.

16 The Director shall annually determine rates of payment,

17 subject to the following constraints:

18 (1) In the first year of coverage, the rates shall be

19 equal to the amount normally charged to State employees for

20 elected optional coverages or for enrolled dependents

21 coverages or other contributory coverages on behalf of its

22 employees, adjusted for differences between State

23 employees and employees of the child advocacy center in

24 age, sex, geographic location, or other relevant

25 demographic variables, plus an amount sufficient to pay for

26 the additional administrative costs of providing coverage

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LRB100 06229 RPS 16264 b

1 to employees of the child advocacy center and their

2 dependents.

3 (2) In subsequent years, a further adjustment shall be

4 made to reflect the actual prior years' claims experience

5 of the employees of the child advocacy center.

6 Monthly payments by the child advocacy center or its

7 employees for group health insurance shall be deposited into

8 the Local Government Health Insurance Reserve Fund.

9 (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)

10 Section 10. The Illinois Finance Authority Act is amended

11 by changing Section 801-40 as follows:

12 (20 ILCS 3501/801-40)

13 Sec. 801-40. In addition to the powers otherwise authorized

14 by law and in addition to the foregoing general corporate

15 powers, the Authority shall also have the following additional

16 specific powers to be exercised in furtherance of the purposes

17 of this Act.

18 (a) The Authority shall have power (i) to accept grants,

19 loans or appropriations from the federal government or the

20 State, or any agency or instrumentality thereof, to be used for

21 the operating expenses of the Authority, or for any purposes of

22 the Authority, including the making of direct loans of such

23 funds with respect to projects, and (ii) to enter into any

24 agreement with the federal government or the State, or any

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LRB100 06229 RPS 16264 b

1 agency or instrumentality thereof, in relationship to such

2 grants, loans or appropriations.

3 (b) The Authority shall have power to procure and enter

4 into contracts for any type of insurance and indemnity

5 agreements covering loss or damage to property from any cause,

6 including loss of use and occupancy, or covering any other

7 insurable risk.

8 (c) The Authority shall have the continuing power to issue

9 bonds for its corporate purposes. Bonds may be issued by the

10 Authority in one or more series and may provide for the payment

11 of any interest deemed necessary on such bonds, of the costs of

12 issuance of such bonds, of any premium on any insurance, or of

13 the cost of any guarantees, letters of credit or other similar

14 documents, may provide for the funding of the reserves deemed

15 necessary in connection with such bonds, and may provide for

16 the refunding or advance refunding of any bonds or for accounts

17 deemed necessary in connection with any purpose of the

18 Authority. The bonds may bear interest payable at any time or

19 times and at any rate or rates, notwithstanding any other

20 provision of law to the contrary, and such rate or rates may be

21 established by an index or formula which may be implemented or

22 established by persons appointed or retained therefor by the

23 Authority, or may bear no interest or may bear interest payable

24 at maturity or upon redemption prior to maturity, may bear such

25 date or dates, may be payable at such time or times and at such

26 place or places, may mature at any time or times not later than

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LRB100 06229 RPS 16264 b

1 40 years from the date of issuance, may be sold at public or

2 private sale at such time or times and at such price or prices,

3 may be secured by such pledges, reserves, guarantees, letters

4 of credit, insurance contracts or other similar credit support

5 or liquidity instruments, may be executed in such manner, may

6 be subject to redemption prior to maturity, may provide for the

7 registration of the bonds, and may be subject to such other

8 terms and conditions all as may be provided by the resolution

9 or indenture authorizing the issuance of such bonds. The holder

10 or holders of any bonds issued by the Authority may bring suits

11 at law or proceedings in equity to compel the performance and

12 observance by any person or by the Authority or any of its

13 agents or employees of any contract or covenant made with the

14 holders of such bonds and to compel such person or the

15 Authority and any of its agents or employees to perform any

16 duties required to be performed for the benefit of the holders

17 of any such bonds by the provision of the resolution

18 authorizing their issuance, and to enjoin such person or the

19 Authority and any of its agents or employees from taking any

20 action in conflict with any such contract or covenant.

21 Notwithstanding the form and tenor of any such bonds and in the

22 absence of any express recital on the face thereof that it is

23 non-negotiable, all such bonds shall be negotiable

24 instruments. Pending the preparation and execution of any such

25 bonds, temporary bonds may be issued as provided by the

26 resolution. The bonds shall be sold by the Authority in such

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LRB100 06229 RPS 16264 b

1 manner as it shall determine. The bonds may be secured as

2 provided in the authorizing resolution by the receipts,

3 revenues, income and other available funds of the Authority and

4 by any amounts derived by the Authority from the loan agreement

5 or lease agreement with respect to the project or projects; and

6 bonds may be issued as general obligations of the Authority

7 payable from such revenues, funds and obligations of the

8 Authority as the bond resolution shall provide, or may be

9 issued as limited obligations with a claim for payment solely

10 from such revenues, funds and obligations as the bond

11 resolution shall provide. The Authority may grant a specific

12 pledge or assignment of and lien on or security interest in

13 such rights, revenues, income, or amounts and may grant a

14 specific pledge or assignment of and lien on or security

15 interest in any reserves, funds or accounts established in the

16 resolution authorizing the issuance of bonds. Any such pledge,

17 assignment, lien or security interest for the benefit of the

18 holders of the Authority's bonds shall be valid and binding

19 from the time the bonds are issued without any physical

20 delivery or further act, and shall be valid and binding as

21 against and prior to the claims of all other parties having

22 claims against the Authority or any other person irrespective

23 of whether the other parties have notice of the pledge,

24 assignment, lien or security interest. As evidence of such

25 pledge, assignment, lien and security interest, the Authority

26 may execute and deliver a mortgage, trust agreement, indenture

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LRB100 06229 RPS 16264 b

1 or security agreement or an assignment thereof. A remedy for

2 any breach or default of the terms of any such agreement by the

3 Authority may be by mandamus proceedings in any court of

4 competent jurisdiction to compel the performance and

5 compliance therewith, but the agreement may prescribe by whom

6 or on whose behalf such action may be instituted. It is

7 expressly understood that the Authority may, but need not,

8 acquire title to any project with respect to which it exercises

9 its authority.

10 (c-5) The Authority shall have the power to issue State

11 Pension Obligation Acceleration Bonds if in any fiscal year the

12 amount appropriated for all accelerated pension benefit

13 payments is less than the amount required for those payments.

14 The proceeds from the State Pension Obligation Acceleration

15 Bonds issued under this subsection may only be used to pay for

16 accelerated pension benefit payments for the fiscal year in

17 which the State Pension Obligation Acceleration Bonds are

18 issued.

19 The Authority shall not have outstanding at any one time

20 State Pension Obligation Acceleration Bonds for any of the

21 purposes of this subsection in an aggregate principal amount

22 exceeding $250,000,000, excluding bonds issued to refund

23 outstanding State Pension Obligation Acceleration Bonds.

24 (d) With respect to the powers granted by this Act, the

25 Authority may adopt rules and regulations prescribing the

26 procedures by which persons may apply for assistance under this

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LRB100 06229 RPS 16264 b

1 Act. Nothing herein shall be deemed to preclude the Authority,

2 prior to the filing of any formal application, from conducting

3 preliminary discussions and investigations with respect to the

4 subject matter of any prospective application.

5 (e) The Authority shall have power to acquire by purchase,

6 lease, gift or otherwise any property or rights therein from

7 any person useful for its purposes, whether improved for the

8 purposes of any prospective project, or unimproved. The

9 Authority may also accept any donation of funds for its

10 purposes from any such source. The Authority shall have no

11 independent power of condemnation but may acquire any property

12 or rights therein obtained upon condemnation by any other

13 authority, governmental entity or unit of local government with

14 such power.

15 (f) The Authority shall have power to develop, construct

16 and improve either under its own direction, or through

17 collaboration with any approved applicant, or to acquire

18 through purchase or otherwise, any project, using for such

19 purpose the proceeds derived from the sale of its bonds or from

20 governmental loans or grants, and to hold title in the name of

21 the Authority to such projects.

22 (g) The Authority shall have power to lease pursuant to a

23 lease agreement any project so developed and constructed or

24 acquired to the approved tenant on such terms and conditions as

25 may be appropriate to further the purposes of this Act and to

26 maintain the credit of the Authority. Any such lease may

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LRB100 06229 RPS 16264 b

1 provide for either the Authority or the approved tenant to

2 assume initially, in whole or in part, the costs of

3 maintenance, repair and improvements during the leasehold

4 period. In no case, however, shall the total rentals from any

5 project during any initial leasehold period or the total loan

6 repayments to be made pursuant to any loan agreement, be less

7 than an amount necessary to return over such lease or loan

8 period (1) all costs incurred in connection with the

9 development, construction, acquisition or improvement of the

10 project and for repair, maintenance and improvements thereto

11 during the period of the lease or loan; provided, however, that

12 the rentals or loan repayments need not include costs met

13 through the use of funds other than those obtained by the

14 Authority through the issuance of its bonds or governmental

15 loans; (2) a reasonable percentage additive to be agreed upon

16 by the Authority and the borrower or tenant to cover a properly

17 allocable portion of the Authority's general expenses,

18 including, but not limited to, administrative expenses,

19 salaries and general insurance, and (3) an amount sufficient to

20 pay when due all principal of, interest and premium, if any on,

21 any bonds issued by the Authority with respect to the project.

22 The portion of total rentals payable under clause (3) of this

23 subsection (g) shall be deposited in such special accounts,

24 including all sinking funds, acquisition or construction

25 funds, debt service and other funds as provided by any

26 resolution, mortgage or trust agreement of the Authority

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LRB100 06229 RPS 16264 b

1 pursuant to which any bond is issued.

2 (h) The Authority has the power, upon the termination of

3 any leasehold period of any project, to sell or lease for a

4 further term or terms such project on such terms and conditions

5 as the Authority shall deem reasonable and consistent with the

6 purposes of the Act. The net proceeds from all such sales and

7 the revenues or income from such leases shall be used to

8 satisfy any indebtedness of the Authority with respect to such

9 project and any balance may be used to pay any expenses of the

10 Authority or be used for the further development, construction,

11 acquisition or improvement of projects. In the event any

12 project is vacated by a tenant prior to the termination of the

13 initial leasehold period, the Authority shall sell or lease the

14 facilities of the project on the most advantageous terms

15 available. The net proceeds of any such disposition shall be

16 treated in the same manner as the proceeds from sales or the

17 revenues or income from leases subsequent to the termination of

18 any initial leasehold period.

19 (i) The Authority shall have the power to make loans to

20 persons to finance a project, to enter into loan agreements

21 with respect thereto, and to accept guarantees from persons of

22 its loans or the resultant evidences of obligations of the

23 Authority.

24 (j) The Authority may fix, determine, charge and collect

25 any premiums, fees, charges, costs and expenses, including,

26 without limitation, any application fees, commitment fees,

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LRB100 06229 RPS 16264 b

1 program fees, financing charges or publication fees from any

2 person in connection with its activities under this Act.

3 (k) In addition to the funds established as provided

4 herein, the Authority shall have the power to create and

5 establish such reserve funds and accounts as may be necessary

6 or desirable to accomplish its purposes under this Act and to

7 deposit its available monies into the funds and accounts.

8 (l) At the request of the governing body of any unit of

9 local government, the Authority is authorized to market such

10 local government's revenue bond offerings by preparing bond

11 issues for sale, advertising for sealed bids, receiving bids at

12 its offices, making the award to the bidder that offers the

13 most favorable terms or arranging for negotiated placements or

14 underwritings of such securities. The Authority may, at its

15 discretion, offer for concurrent sale the revenue bonds of

16 several local governments. Sales by the Authority of revenue

17 bonds under this Section shall in no way imply State guarantee

18 of such debt issue. The Authority may require such financial

19 information from participating local governments as it deems

20 necessary in order to carry out the purposes of this subsection

21 (1).

22 (m) The Authority may make grants to any county to which

23 Division 5-37 of the Counties Code is applicable to assist in

24 the financing of capital development, construction and

25 renovation of new or existing facilities for hospitals and

26 health care facilities under that Act. Such grants may only be

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1 made from funds appropriated for such purposes from the Build

2 Illinois Bond Fund.

3 (n) The Authority may establish an urban development action

4 grant program for the purpose of assisting municipalities in

5 Illinois which are experiencing severe economic distress to

6 help stimulate economic development activities needed to aid in

7 economic recovery. The Authority shall determine the types of

8 activities and projects for which the urban development action

9 grants may be used, provided that such projects and activities

10 are broadly defined to include all reasonable projects and

11 activities the primary objectives of which are the development

12 of viable urban communities, including decent housing and a

13 suitable living environment, and expansion of economic

14 opportunity, principally for persons of low and moderate

15 incomes. The Authority shall enter into grant agreements from

16 monies appropriated for such purposes from the Build Illinois

17 Bond Fund. The Authority shall monitor the use of the grants,

18 and shall provide for audits of the funds as well as recovery

19 by the Authority of any funds determined to have been spent in

20 violation of this subsection (n) or any rule or regulation

21 promulgated hereunder. The Authority shall provide technical

22 assistance with regard to the effective use of the urban

23 development action grants. The Authority shall file an annual

24 report to the General Assembly concerning the progress of the

25 grant program.

26 (o) The Authority may establish a Housing Partnership

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1 Program whereby the Authority provides zero-interest loans to

2 municipalities for the purpose of assisting in the financing of

3 projects for the rehabilitation of affordable multi-family

4 housing for low and moderate income residents. The Authority

5 may provide such loans only upon a municipality's providing

6 evidence that it has obtained private funding for the

7 rehabilitation project. The Authority shall provide 3 State

8 dollars for every 7 dollars obtained by the municipality from

9 sources other than the State of Illinois. The loans shall be

10 made from monies appropriated for such purpose from the Build

11 Illinois Bond Fund. The total amount of loans available under

12 the Housing Partnership Program shall not exceed $30,000,000.

13 State loan monies under this subsection shall be used only for

14 the acquisition and rehabilitation of existing buildings

15 containing 4 or more dwelling units. The terms of any loan made

16 by the municipality under this subsection shall require

17 repayment of the loan to the municipality upon any sale or

18 other transfer of the project.

19 (p) The Authority may award grants to universities and

20 research institutions, research consortiums and other

21 not-for-profit entities for the purposes of: remodeling or

22 otherwise physically altering existing laboratory or research

23 facilities, expansion or physical additions to existing

24 laboratory or research facilities, construction of new

25 laboratory or research facilities or acquisition of modern

26 equipment to support laboratory or research operations

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1 provided that such grants (i) be used solely in support of

2 project and equipment acquisitions which enhance technology

3 transfer, and (ii) not constitute more than 60 percent of the

4 total project or acquisition cost.

5 (q) Grants may be awarded by the Authority to units of

6 local government for the purpose of developing the appropriate

7 infrastructure or defraying other costs to the local government

8 in support of laboratory or research facilities provided that

9 such grants may not exceed 40% of the cost to the unit of local

10 government.

11 (r) The Authority may establish a Direct Loan Program to

12 make loans to individuals, partnerships or corporations for the

13 purpose of an industrial project, as defined in Section 801-10

14 of this Act. For the purposes of such program and not by way of

15 limitation on any other program of the Authority, the Authority

16 shall have the power to issue bonds, notes, or other evidences

17 of indebtedness including commercial paper for purposes of

18 providing a fund of capital from which it may make such loans.

19 The Authority shall have the power to use any appropriations

20 from the State made especially for the Authority's Direct Loan

21 Program for additional capital to make such loans or for the

22 purposes of reserve funds or pledged funds which secure the

23 Authority's obligations of repayment of any bond, note or other

24 form of indebtedness established for the purpose of providing

25 capital for which it intends to make such loans under the

26 Direct Loan Program. For the purpose of obtaining such capital,

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1 the Authority may also enter into agreements with financial

2 institutions and other persons for the purpose of selling loans

3 and developing a secondary market for such loans. Loans made

4 under the Direct Loan Program may be in an amount not to exceed

5 $300,000 and shall be made for a portion of an industrial

6 project which does not exceed 50% of the total project. No loan

7 may be made by the Authority unless approved by the affirmative

8 vote of at least 8 members of the board. The Authority shall

9 establish procedures and publish rules which shall provide for

10 the submission, review, and analysis of each direct loan

11 application and which shall preserve the ability of each board

12 member to reach an individual business judgment regarding the

13 propriety of making each direct loan. The collective discretion

14 of the board to approve or disapprove each loan shall be

15 unencumbered. The Authority may establish and collect such fees

16 and charges, determine and enforce such terms and conditions,

17 and charge such interest rates as it determines to be necessary

18 and appropriate to the successful administration of the Direct

19 Loan Program. The Authority may require such interests in

20 collateral and such guarantees as it determines are necessary

21 to project the Authority's interest in the repayment of the

22 principal and interest of each loan made under the Direct Loan

23 Program.

24 (s) The Authority may guarantee private loans to third

25 parties up to a specified dollar amount in order to promote

26 economic development in this State.

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1 (t) The Authority may adopt rules and regulations as may be

2 necessary or advisable to implement the powers conferred by

3 this Act.

4 (u) The Authority shall have the power to issue bonds,

5 notes or other evidences of indebtedness, which may be used to

6 make loans to units of local government which are authorized to

7 enter into loan agreements and other documents and to issue

8 bonds, notes and other evidences of indebtedness for the

9 purpose of financing the protection of storm sewer outfalls,

10 the construction of adequate storm sewer outfalls, and the

11 provision for flood protection of sanitary sewage treatment

12 plans, in counties that have established a stormwater

13 management planning committee in accordance with Section

14 5-1062 of the Counties Code. Any such loan shall be made by the

15 Authority pursuant to the provisions of Section 820-5 to 820-60

16 of this Act. The unit of local government shall pay back to the

17 Authority the principal amount of the loan, plus annual

18 interest as determined by the Authority. The Authority shall

19 have the power, subject to appropriations by the General

20 Assembly, to subsidize or buy down a portion of the interest on

21 such loans, up to 4% per annum.

22 (v) The Authority may accept security interests as provided

23 in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.

24 (w) Moral Obligation. In the event that the Authority

25 determines that monies of the Authority will not be sufficient

26 for the payment of the principal of and interest on its bonds

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1 during the next State fiscal year, the Chairperson, as soon as

2 practicable, shall certify to the Governor the amount required

3 by the Authority to enable it to pay such principal of and

4 interest on the bonds. The Governor shall submit the amount so

5 certified to the General Assembly as soon as practicable, but

6 no later than the end of the current State fiscal year. This

7 subsection shall apply only to any bonds or notes as to which

8 the Authority shall have determined, in the resolution

9 authorizing the issuance of the bonds or notes, that this

10 subsection shall apply. Whenever the Authority makes such a

11 determination, that fact shall be plainly stated on the face of

12 the bonds or notes and that fact shall also be reported to the

13 Governor. In the event of a withdrawal of moneys from a reserve

14 fund established with respect to any issue or issues of bonds

15 of the Authority to pay principal or interest on those bonds,

16 the Chairperson of the Authority, as soon as practicable, shall

17 certify to the Governor the amount required to restore the

18 reserve fund to the level required in the resolution or

19 indenture securing those bonds. The Governor shall submit the

20 amount so certified to the General Assembly as soon as

21 practicable, but no later than the end of the current State

22 fiscal year. The Authority shall obtain written approval from

23 the Governor for any bonds and notes to be issued under this

24 Section. In addition to any other bonds authorized to be issued

25 under Sections 825-60, 825-65(e), 830-25 and 845-5, the

26 principal amount of Authority bonds outstanding issued under

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1 this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS

2 360/2-6(c), which have been assumed by the Authority, shall not

3 exceed $150,000,000. This subsection (w) shall in no way be

4 applied to any bonds issued by the Authority on behalf of the

5 Illinois Power Agency under Section 825-90 of this Act.

6 (x) The Authority may enter into agreements or contracts

7 with any person necessary or appropriate to place the payment

8 obligations of the Authority under any of its bonds in whole or

9 in part on any interest rate basis, cash flow basis, or other

10 basis desired by the Authority, including without limitation

11 agreements or contracts commonly known as "interest rate swap

12 agreements", "forward payment conversion agreements", and

13 "futures", or agreements or contracts to exchange cash flows or

14 a series of payments, or agreements or contracts, including

15 without limitation agreements or contracts commonly known as

16 "options", "puts", or "calls", to hedge payment, rate spread,

17 or similar exposure; provided that any such agreement or

18 contract shall not constitute an obligation for borrowed money

19 and shall not be taken into account under Section 845-5 of this

20 Act or any other debt limit of the Authority or the State of

21 Illinois.

22 (y) The Authority shall publish summaries of projects and

23 actions approved by the members of the Authority on its

24 website. These summaries shall include, but not be limited to,

25 information regarding the:

26 (1) project;

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1 (2) Board's action or actions;

2 (3) purpose of the project;

3 (4) Authority's program and contribution;

4 (5) volume cap;

5 (6) jobs retained;

6 (7) projected new jobs;

7 (8) construction jobs created;

8 (9) estimated sources and uses of funds;

9 (10) financing summary;

10 (11) project summary;

11 (12) business summary;

12 (13) ownership or economic disclosure statement;

13 (14) professional and financial information;

14 (15) service area; and

15 (16) legislative district.

16 The disclosure of information pursuant to this subsection

17 shall comply with the Freedom of Information Act.

18 (Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;

19 95-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of

20 P.A. 96-793 for the effective date of changes made by P.A.

21 96-795).)

22 Section 15. The State Finance Act is amended by adding

23 Section 5.878 as follows:

24 (30 ILCS 105/5.878 new)

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1 Sec. 5.878. The State Pension Obligation Acceleration Bond

2 Fund.

3 Section 20. The General Obligation Bond Act is amended by

4 changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding

5 Section 7.6 as follows:

6 (30 ILCS 330/2) (from Ch. 127, par. 652)

7 Sec. 2. Authorization for Bonds. The State of Illinois is

8 authorized to issue, sell and provide for the retirement of

9 General Obligation Bonds of the State of Illinois for the

10 categories and specific purposes expressed in Sections 2

11 through 8 of this Act, in the total amount of $50,167,925,743

12 ~~$49,917,925,743~~.

13 The bonds authorized in this Section 2 and in Section 16 of

14 this Act are herein called "Bonds".

15 Of the total amount of Bonds authorized in this Act, up to

16 $2,200,000,000 in aggregate original principal amount may be

17 issued and sold in accordance with the Baccalaureate Savings

18 Act in the form of General Obligation College Savings Bonds.

19 Of the total amount of Bonds authorized in this Act, up to

20 $300,000,000 in aggregate original principal amount may be

21 issued and sold in accordance with the Retirement Savings Act

22 in the form of General Obligation Retirement Savings Bonds.

23 Of the total amount of Bonds authorized in this Act, the

24 additional $10,000,000,000 authorized by Public Act 93-2, the

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1 $3,466,000,000 authorized by Public Act 96-43, and the

2 $4,096,348,300 authorized by Public Act 96-1497 shall be used

3 solely as provided in Section 7.2.

4 Of the total amount of Bonds authorized in this Act, the

5 additional $250,000,000 authorized by this amendatory Act of

6 the 100th General Assembly shall be used solely as provided in

7 Section 7.6.

8 The issuance and sale of Bonds pursuant to the General

9 Obligation Bond Act is an economical and efficient method of

10 financing the long-term capital needs of the State. This Act

11 will permit the issuance of a multi-purpose General Obligation

12 Bond with uniform terms and features. This will not only lower

13 the cost of registration but also reduce the overall cost of

14 issuing debt by improving the marketability of Illinois General

15 Obligation Bonds.

16 (Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;

17 97-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.

18 8-16-13; 98-781, eff. 7-22-14.)

19 (30 ILCS 330/2.5)

20 Sec. 2.5. Limitation on issuance of Bonds.

21 (a) Except as provided in subsection (b), no Bonds may be

22 issued if, after the issuance, in the next State fiscal year

23 after the issuance of the Bonds, the amount of debt service

24 (including principal, whether payable at maturity or pursuant

25 to mandatory sinking fund installments, and interest) on all

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1 then-outstanding Bonds, other than (i) Bonds authorized by this

2 amendatory Act of the 100th General Assembly, (ii) Bonds

3 authorized by Public Act 96-43, and (iii) ~~other than~~ Bonds

4 authorized by Public Act 96-1497, would exceed 7% of the

5 aggregate appropriations from the general funds (which consist

6 of the General Revenue Fund, the Common School Fund, the

7 General Revenue Common School Special Account Fund, and the

8 Education Assistance Fund) and the Road Fund for the fiscal

9 year immediately prior to the fiscal year of the issuance.

10 (b) If the Comptroller and Treasurer each consent in

11 writing, Bonds may be issued even if the issuance does not

12 comply with subsection (a). In addition, $2,000,000,000 in

13 Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,

14 and $2,000,000,000 in Refunding Bonds under Section 16, may be

15 issued during State fiscal year 2017 without complying with

16 subsection (a).

17 (Source: P.A. 99-523, eff. 6-30-16.)

18 (30 ILCS 330/7.6 new)

19 Sec. 7.6. State Pension Obligation Acceleration Bonds.

20 (a) As used in this Act, "State Pension Obligation

21 Acceleration Bonds" means Bonds authorized by this amendatory

22 Act of the 100th General Assembly and used for the purposes set

23 forth in subsection (c-5) of Section 801-40 of the Illinois

24 Finance Authority Act.

25 (b) State Pension Obligation Acceleration Bonds in the

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1 amount of $250,000,000 are hereby authorized to be used for the

2 purposes set forth in subsection (c-5) of Section 801-40 of the

3 Illinois Finance Authority Act.

4 (c) The proceeds of State Pension Obligation Acceleration

5 Bonds authorized in subsection (b) of this Section, less the

6 amounts authorized in the Bond Sale Order to be directly paid

7 out for bond sale expenses under Section 8, shall be deposited

8 directly into the State Pension Obligation Acceleration Bond

9 Fund, and the Comptroller and the Treasurer shall, as soon as

10 practical, make payments as contemplated by subsection (c-5) of

11 Section 801-40 of the Illinois Finance Authority Act.

12 (d) There is created the State Pension Obligation

13 Acceleration Bond Fund as a special fund in the State Treasury.

14 Funds deposited in the State Pension Obligation Acceleration

15 Bond Fund may only be used for the purposes set forth in

16 subsection (c-5) of Section 801-40 of the Illinois Finance

17 Authority Act or for the payment of principal and interest due

18 on State Pension Obligation Acceleration Bonds.

19 (30 ILCS 330/9) (from Ch. 127, par. 659)

20 Sec. 9. Conditions for Issuance and Sale of Bonds -

21 Requirements for Bonds.

22 (a) Except as otherwise provided in this subsection and

23 subsection (h), Bonds shall be issued and sold from time to

24 time, in one or more series, in such amounts and at such prices

25 as may be directed by the Governor, upon recommendation by the

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1 Director of the Governor's Office of Management and Budget.

2 Bonds shall be in such form (either coupon, registered or book

3 entry), in such denominations, payable within 25 years from

4 their date, subject to such terms of redemption with or without

5 premium, bear interest payable at such times and at such fixed

6 or variable rate or rates, and be dated as shall be fixed and

7 determined by the Director of the Governor's Office of

8 Management and Budget in the order authorizing the issuance and

9 sale of any series of Bonds, which order shall be approved by

10 the Governor and is herein called a "Bond Sale Order"; provided

11 however, that interest payable at fixed or variable rates shall

12 not exceed that permitted in the Bond Authorization Act, as now

13 or hereafter amended. Bonds shall be payable at such place or

14 places, within or without the State of Illinois, and may be

15 made registrable as to either principal or as to both principal

16 and interest, as shall be specified in the Bond Sale Order.

17 Bonds may be callable or subject to purchase and retirement or

18 tender and remarketing as fixed and determined in the Bond Sale

19 Order. Bonds, other than Bonds issued under Section 3 of this

20 Act for the costs associated with the purchase and

21 implementation of information technology, (i) except for

22 refunding Bonds satisfying the requirements of Section 16 of

23 this Act and sold during fiscal year 2009, 2010, 2011, or 2017

24 must be issued with principal or mandatory redemption amounts

25 in equal amounts, with the first maturity issued occurring

26 within the fiscal year in which the Bonds are issued or within

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1 the next succeeding fiscal year and (ii) must mature or be

2 subject to mandatory redemption each fiscal year thereafter up

3 to 25 years, except for refunding Bonds satisfying the

4 requirements of Section 16 of this Act and sold during fiscal

5 year 2009, 2010, or 2011 which must mature or be subject to

6 mandatory redemption each fiscal year thereafter up to 16

7 years. Bonds issued under Section 3 of this Act for the costs

8 associated with the purchase and implementation of information

9 technology must be issued with principal or mandatory

10 redemption amounts in equal amounts, with the first maturity

11 issued occurring with the fiscal year in which the respective

12 bonds are issued or with the next succeeding fiscal year, with

13 the respective bonds issued maturing or subject to mandatory

14 redemption each fiscal year thereafter up to 10 years.

15 Notwithstanding any provision of this Act to the contrary, the

16 Bonds authorized by Public Act 96-43 shall be payable within 5

17 years from their date and must be issued with principal or

18 mandatory redemption amounts in equal amounts, with payment of

19 principal or mandatory redemption beginning in the first fiscal

20 year following the fiscal year in which the Bonds are issued.

21 Notwithstanding any provision of this Act to the contrary,

22 the Bonds authorized by Public Act 96-1497 shall be payable

23 within 8 years from their date and shall be issued with payment

24 of maturing principal or scheduled mandatory redemptions in

25 accordance with the following schedule, except the following

26 amounts shall be prorated if less than the total additional

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1 amount of Bonds authorized by Public Act 96-1497 are issued:

2 Fiscal Year After Issuance Amount

3 1-2 $0

4 3 $110,712,120

5 4 $332,136,360

6 5 $664,272,720

7 6-8 $996,409,080

8 In the case of any series of Bonds bearing interest at a

9 variable interest rate ("Variable Rate Bonds"), in lieu of

10 determining the rate or rates at which such series of Variable

11 Rate Bonds shall bear interest and the price or prices at which

12 such Variable Rate Bonds shall be initially sold or remarketed

13 (in the event of purchase and subsequent resale), the Bond Sale

14 Order may provide that such interest rates and prices may vary

15 from time to time depending on criteria established in such

16 Bond Sale Order, which criteria may include, without

17 limitation, references to indices or variations in interest

18 rates as may, in the judgment of a remarketing agent, be

19 necessary to cause Variable Rate Bonds of such series to be

20 remarketable from time to time at a price equal to their

21 principal amount, and may provide for appointment of a bank,

22 trust company, investment bank, or other financial institution

23 to serve as remarketing agent in that connection. The Bond Sale

24 Order may provide that alternative interest rates or provisions

25 for establishing alternative interest rates, different

26 security or claim priorities, or different call or amortization

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1 provisions will apply during such times as Variable Rate Bonds

2 of any series are held by a person providing credit or

3 liquidity enhancement arrangements for such Bonds as

4 authorized in subsection (b) of this Section. The Bond Sale

5 Order may also provide for such variable interest rates to be

6 established pursuant to a process generally known as an auction

7 rate process and may provide for appointment of one or more

8 financial institutions to serve as auction agents and

9 broker-dealers in connection with the establishment of such

10 interest rates and the sale and remarketing of such Bonds.

11 (b) In connection with the issuance of any series of Bonds,

12 the State may enter into arrangements to provide additional

13 security and liquidity for such Bonds, including, without

14 limitation, bond or interest rate insurance or letters of

15 credit, lines of credit, bond purchase contracts, or other

16 arrangements whereby funds are made available to retire or

17 purchase Bonds, thereby assuring the ability of owners of the

18 Bonds to sell or redeem their Bonds. The State may enter into

19 contracts and may agree to pay fees to persons providing such

20 arrangements, but only under circumstances where the Director

21 of the Governor's Office of Management and Budget certifies

22 that he or she reasonably expects the total interest paid or to

23 be paid on the Bonds, together with the fees for the

24 arrangements (being treated as if interest), would not, taken

25 together, cause the Bonds to bear interest, calculated to their

26 stated maturity, at a rate in excess of the rate that the Bonds

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1 would bear in the absence of such arrangements.

2 The State may, with respect to Bonds issued or anticipated

3 to be issued, participate in and enter into arrangements with

4 respect to interest rate protection or exchange agreements,

5 guarantees, or financial futures contracts for the purpose of

6 limiting, reducing, or managing interest rate exposure. The

7 authority granted under this paragraph, however, shall not

8 increase the principal amount of Bonds authorized to be issued

9 by law. The arrangements may be executed and delivered by the

10 Director of the Governor's Office of Management and Budget on

11 behalf of the State. Net payments for such arrangements shall

12 constitute interest on the Bonds and shall be paid from the

13 General Obligation Bond Retirement and Interest Fund. The

14 Director of the Governor's Office of Management and Budget

15 shall at least annually certify to the Governor and the State

16 Comptroller his or her estimate of the amounts of such net

17 payments to be included in the calculation of interest required

18 to be paid by the State.

19 (c) Prior to the issuance of any Variable Rate Bonds

20 pursuant to subsection (a), the Director of the Governor's

21 Office of Management and Budget shall adopt an interest rate

22 risk management policy providing that the amount of the State's

23 variable rate exposure with respect to Bonds shall not exceed

24 20%. This policy shall remain in effect while any Bonds are

25 outstanding and the issuance of Bonds shall be subject to the

26 terms of such policy. The terms of this policy may be amended

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1 from time to time by the Director of the Governor's Office of

2 Management and Budget but in no event shall any amendment cause

3 the permitted level of the State's variable rate exposure with

4 respect to Bonds to exceed 20%.

5 (d) "Build America Bonds" in this Section means Bonds

6 authorized by Section 54AA of the Internal Revenue Code of

7 1986, as amended ("Internal Revenue Code"), and bonds issued

8 from time to time to refund or continue to refund "Build

9 America Bonds".

10 (e) Notwithstanding any other provision of this Section,

11 Qualified School Construction Bonds shall be issued and sold

12 from time to time, in one or more series, in such amounts and

13 at such prices as may be directed by the Governor, upon

14 recommendation by the Director of the Governor's Office of

15 Management and Budget. Qualified School Construction Bonds

16 shall be in such form (either coupon, registered or book

17 entry), in such denominations, payable within 25 years from

18 their date, subject to such terms of redemption with or without

19 premium, and if the Qualified School Construction Bonds are

20 issued with a supplemental coupon, bear interest payable at

21 such times and at such fixed or variable rate or rates, and be

22 dated as shall be fixed and determined by the Director of the

23 Governor's Office of Management and Budget in the order

24 authorizing the issuance and sale of any series of Qualified

25 School Construction Bonds, which order shall be approved by the

26 Governor and is herein called a "Bond Sale Order"; except that

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1 interest payable at fixed or variable rates, if any, shall not

2 exceed that permitted in the Bond Authorization Act, as now or

3 hereafter amended. Qualified School Construction Bonds shall

4 be payable at such place or places, within or without the State

5 of Illinois, and may be made registrable as to either principal

6 or as to both principal and interest, as shall be specified in

7 the Bond Sale Order. Qualified School Construction Bonds may be

8 callable or subject to purchase and retirement or tender and

9 remarketing as fixed and determined in the Bond Sale Order.

10 Qualified School Construction Bonds must be issued with

11 principal or mandatory redemption amounts or sinking fund

12 payments into the General Obligation Bond Retirement and

13 Interest Fund (or subaccount therefor) in equal amounts, with

14 the first maturity issued, mandatory redemption payment or

15 sinking fund payment occurring within the fiscal year in which

16 the Qualified School Construction Bonds are issued or within

17 the next succeeding fiscal year, with Qualified School

18 Construction Bonds issued maturing or subject to mandatory

19 redemption or with sinking fund payments thereof deposited each

20 fiscal year thereafter up to 25 years. Sinking fund payments

21 set forth in this subsection shall be permitted only to the

22 extent authorized in Section 54F of the Internal Revenue Code

23 or as otherwise determined by the Director of the Governor's

24 Office of Management and Budget. "Qualified School

25 Construction Bonds" in this subsection means Bonds authorized

26 by Section 54F of the Internal Revenue Code and for bonds

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1 issued from time to time to refund or continue to refund such

2 "Qualified School Construction Bonds".

3 (f) Beginning with the next issuance by the Governor's

4 Office of Management and Budget to the Procurement Policy Board

5 of a request for quotation for the purpose of formulating a new

6 pool of qualified underwriting banks list, all entities

7 responding to such a request for quotation for inclusion on

8 that list shall provide a written report to the Governor's

9 Office of Management and Budget and the Illinois Comptroller.

10 The written report submitted to the Comptroller shall (i) be

11 published on the Comptroller's Internet website and (ii) be

12 used by the Governor's Office of Management and Budget for the

13 purposes of scoring such a request for quotation. The written

14 report, at a minimum, shall:

15 (1) disclose whether, within the past 3 months,

16 pursuant to its credit default swap market-making

17 activities, the firm has entered into any State of Illinois

18 credit default swaps ("CDS");

19 (2) include, in the event of State of Illinois CDS

20 activity, disclosure of the firm's cumulative notional

21 volume of State of Illinois CDS trades and the firm's

22 outstanding gross and net notional amount of State of

23 Illinois CDS, as of the end of the current 3-month period;

24 (3) indicate, pursuant to the firm's proprietary

25 trading activities, disclosure of whether the firm, within

26 the past 3 months, has entered into any proprietary trades

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1 for its own account in State of Illinois CDS;

2 (4) include, in the event of State of Illinois

3 proprietary trades, disclosure of the firm's outstanding

4 gross and net notional amount of proprietary State of

5 Illinois CDS and whether the net position is short or long

6 credit protection, as of the end of the current 3-month

7 period;

8 (5) list all time periods during the past 3 months

9 during which the firm held net long or net short State of

10 Illinois CDS proprietary credit protection positions, the

11 amount of such positions, and whether those positions were

12 net long or net short credit protection positions; and

13 (6) indicate whether, within the previous 3 months, the

14 firm released any publicly available research or marketing

15 reports that reference State of Illinois CDS and include

16 those research or marketing reports as attachments.

17 (g) All entities included on a Governor's Office of

18 Management and Budget's pool of qualified underwriting banks

19 list shall, as soon as possible after March 18, 2011 (the

20 effective date of Public Act 96-1554), but not later than

21 January 21, 2011, and on a quarterly fiscal basis thereafter,

22 provide a written report to the Governor's Office of Management

23 and Budget and the Illinois Comptroller. The written reports

24 submitted to the Comptroller shall be published on the

25 Comptroller's Internet website. The written reports, at a

26 minimum, shall:

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1 (1) disclose whether, within the past 3 months,

2 pursuant to its credit default swap market-making

3 activities, the firm has entered into any State of Illinois

4 credit default swaps ("CDS");

5 (2) include, in the event of State of Illinois CDS

6 activity, disclosure of the firm's cumulative notional

7 volume of State of Illinois CDS trades and the firm's

8 outstanding gross and net notional amount of State of

9 Illinois CDS, as of the end of the current 3-month period;

10 (3) indicate, pursuant to the firm's proprietary

11 trading activities, disclosure of whether the firm, within

12 the past 3 months, has entered into any proprietary trades

13 for its own account in State of Illinois CDS;

14 (4) include, in the event of State of Illinois

15 proprietary trades, disclosure of the firm's outstanding

16 gross and net notional amount of proprietary State of

17 Illinois CDS and whether the net position is short or long

18 credit protection, as of the end of the current 3-month

19 period;

20 (5) list all time periods during the past 3 months

21 during which the firm held net long or net short State of

22 Illinois CDS proprietary credit protection positions, the

23 amount of such positions, and whether those positions were

24 net long or net short credit protection positions; and

25 (6) indicate whether, within the previous 3 months, the

26 firm released any publicly available research or marketing

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1 reports that reference State of Illinois CDS and include

2 those research or marketing reports as attachments.

3 (h) Notwithstanding any other provision of this Section,

4 for purposes of maximizing market efficiencies and cost

5 savings, State Pension Obligation Acceleration Bonds may be

6 issued and sold from time to time, in one or more series, in

7 such amounts and at such prices as may be directed by the

8 Governor, upon recommendation by the Director of the Governor's

9 Office of Management and Budget. State Pension Obligation

10 Acceleration Bonds shall be in such form, either coupon,

11 registered, or book entry, in such denominations, shall bear

12 interest payable at such times and at such fixed or variable

13 rate or rates, and be dated as shall be fixed and determined by

14 the Director of the Governor's Office of Management and Budget

15 in the order authorizing the issuance and sale of any series of

16 State Pension Obligation Acceleration Bonds, which order shall

17 be approved by the Governor and is herein called a "Bond Sale

18 Order"; provided, however, that interest payable at fixed or

19 variable rates shall not exceed that permitted in the Bond

20 Authorization Act. State Pension Obligation Acceleration Bonds

21 shall be payable at such place or places, within or without the

22 State of Illinois, and may be made registrable as to either

23 principal or as to both principal and interest, as shall be

24 specified in the Bond Sale Order. State Pension Obligation

25 Acceleration Bonds may be callable or subject to purchase and

26 retirement or tender and remarketing as fixed and determined in

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1 the Bond Sale Order.

2 (Source: P.A. 99-523, eff. 6-30-16.)

3 (30 ILCS 330/11) (from Ch. 127, par. 661)

4 Sec. 11. Sale of Bonds. Except as otherwise provided in

5 this Section, Bonds shall be sold from time to time pursuant to

6 notice of sale and public bid or by negotiated sale in such

7 amounts and at such times as is directed by the Governor, upon

8 recommendation by the Director of the Governor's Office of

9 Management and Budget. At least 25%, based on total principal

10 amount, of all Bonds issued each fiscal year shall be sold

11 pursuant to notice of sale and public bid. At all times during

12 each fiscal year, no more than 75%, based on total principal

13 amount, of the Bonds issued each fiscal year, shall have been

14 sold by negotiated sale. Failure to satisfy the requirements in

15 the preceding 2 sentences shall not affect the validity of any

16 previously issued Bonds; provided that all Bonds authorized by

17 Public Act 96-43 and Public Act 96-1497 shall not be included

18 in determining compliance for any fiscal year with the

19 requirements of the preceding 2 sentences; and further provided

20 that refunding Bonds satisfying the requirements of Section 16

21 of this Act and sold during fiscal year 2009, 2010, 2011, or

22 2017 shall not be subject to the requirements in the preceding

23 2 sentences.

24 If any Bonds, including refunding Bonds, are to be sold by

25 negotiated sale, the Director of the Governor's Office of

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1 Management and Budget shall comply with the competitive request

2 for proposal process set forth in the Illinois Procurement Code

3 and all other applicable requirements of that Code.

4 If Bonds are to be sold pursuant to notice of sale and

5 public bid, the Director of the Governor's Office of Management

6 and Budget may, from time to time, as Bonds are to be sold,

7 advertise the sale of the Bonds in at least 2 daily newspapers,

8 one of which is published in the City of Springfield and one in

9 the City of Chicago. The sale of the Bonds shall also be

10 advertised in the volume of the Illinois Procurement Bulletin

11 that is published by the Department of Central Management

12 Services, and shall be published once at least 10 days prior to

13 the date fixed for the opening of the bids. The Director of the

14 Governor's Office of Management and Budget may reschedule the

15 date of sale upon the giving of such additional notice as the

16 Director deems adequate to inform prospective bidders of such

17 change; provided, however, that all other conditions of the

18 sale shall continue as originally advertised.

19 Executed Bonds shall, upon payment therefor, be delivered

20 to the purchaser, and the proceeds of Bonds shall be paid into

21 the State Treasury as directed by Section 12 of this Act.

22 All State Pension Obligation Acceleration Bonds shall

23 comply with this Section. Notwithstanding anything to the

24 contrary, however, for purposes of complying with this Section,

25 State Pension Obligation Acceleration Bonds, regardless of the

26 number of series or issuances sold thereunder, shall be

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1 considered a single issue or series. Furthermore, for purposes

2 of complying with the competitive bidding requirements of this

3 Section, the words "at all times" shall not apply to any such

4 sale of the State Pension Obligation Acceleration Bonds. The

5 Director of the Governor's Office of Management and Budget

6 shall determine the time and manner of any competitive sale of

7 the State Pension Obligation Acceleration Bonds; however, that

8 sale shall under no circumstances take place later than 60 days

9 after the State closes the sale of 75% of the State Pension

10 Obligation Acceleration Bonds by negotiated sale.

11 (Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)

12 (30 ILCS 330/12) (from Ch. 127, par. 662)

13 Sec. 12. Allocation of Proceeds from Sale of Bonds.

14 (a) Proceeds from the sale of Bonds, authorized by Section

15 3 of this Act, shall be deposited in the separate fund known as

16 the Capital Development Fund.

17 (b) Proceeds from the sale of Bonds, authorized by

18 paragraph (a) of Section 4 of this Act, shall be deposited in

19 the separate fund known as the Transportation Bond, Series A

20 Fund.

21 (c) Proceeds from the sale of Bonds, authorized by

22 paragraphs (b) and (c) of Section 4 of this Act, shall be

23 deposited in the separate fund known as the Transportation

24 Bond, Series B Fund.

25 (c-1) Proceeds from the sale of Bonds, authorized by

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1 paragraph (d) of Section 4 of this Act, shall be deposited into

2 the Transportation Bond Series D Fund, which is hereby created.

3 (d) Proceeds from the sale of Bonds, authorized by Section

4 5 of this Act, shall be deposited in the separate fund known as

5 the School Construction Fund.

6 (e) Proceeds from the sale of Bonds, authorized by Section

7 6 of this Act, shall be deposited in the separate fund known as

8 the Anti-Pollution Fund.

9 (f) Proceeds from the sale of Bonds, authorized by Section

10 7 of this Act, shall be deposited in the separate fund known as

11 the Coal Development Fund.

12 (f-2) Proceeds from the sale of Bonds, authorized by

13 Section 7.2 of this Act, shall be deposited as set forth in

14 Section 7.2.

15 (f-5) Proceeds from the sale of Bonds, authorized by

16 Section 7.5 of this Act, shall be deposited as set forth in

17 Section 7.5.

18 (f-7) Proceeds from the sale of Bonds, authorized by

19 Section 7.6 of this Act, shall be deposited as set forth in

20 Section 7.6.

21 (g) Proceeds from the sale of Bonds, authorized by Section

22 8 of this Act, shall be deposited in the Capital Development

23 Fund.

24 (h) Subsequent to the issuance of any Bonds for the

25 purposes described in Sections 2 through 8 of this Act, the

26 Governor and the Director of the Governor's Office of

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1 Management and Budget may provide for the reallocation of

2 unspent proceeds of such Bonds to any other purposes authorized

3 under said Sections of this Act, subject to the limitations on

4 aggregate principal amounts contained therein. Upon any such

5 reallocation, such unspent proceeds shall be transferred to the

6 appropriate funds as determined by reference to paragraphs (a)

7 through (g) of this Section.

8 (Source: P.A. 96-36, eff. 7-13-09.)

9 (30 ILCS 330/13) (from Ch. 127, par. 663)

10 Sec. 13. Appropriation of Proceeds from Sale of Bonds.

11 (a) At all times, the proceeds from the sale of Bonds

12 issued pursuant to this Act are subject to appropriation by the

13 General Assembly and, except as provided inSections 7.2 and

14 7.6 ~~Section 7.2~~, may be obligated or expended only with the

15 written approval of the Governor, in such amounts, at such

16 times, and for such purposes as the respective State agencies,

17 as defined in Section 1-7 of the Illinois State Auditing Act,

18 as amended, deem necessary or desirable for the specific

19 purposes contemplated in Sections 2 through 8 of this Act.

20 Notwithstanding any other provision of this Act, proceeds from

21 the sale of Bonds issued pursuant to this Act appropriated by

22 the General Assembly to the Architect of the Capitol may be

23 obligated or expended by the Architect of the Capitol without

24 the written approval of the Governor.

25 (b) Proceeds from the sale of Bonds for the purpose of

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1 development of coal and alternative forms of energy shall be

2 expended in such amounts and at such times as the Department of

3 Commerce and Economic Opportunity, with the advice and

4 recommendation of the Illinois Coal Development Board for coal

5 development projects, may deem necessary and desirable for the

6 specific purpose contemplated by Section 7 of this Act. In

7 considering the approval of projects to be funded, the

8 Department of Commerce and Economic Opportunity shall give

9 special consideration to projects designed to remove sulfur and

10 other pollutants in the preparation and utilization of coal,

11 and in the use and operation of electric utility generating

12 plants and industrial facilities which utilize Illinois coal as

13 their primary source of fuel.

14 (c) Except as directed in subsection (c-1) or (c-2), any

15 monies received by any officer or employee of the state

16 representing a reimbursement of expenditures previously paid

17 from general obligation bond proceeds shall be deposited into

18 the General Obligation Bond Retirement and Interest Fund

19 authorized in Section 14 of this Act.

20 (c-1) Any money received by the Department of

21 Transportation as reimbursement for expenditures for high

22 speed rail purposes pursuant to appropriations from the

23 Transportation Bond, Series B Fund for (i) CREATE (Chicago

24 Region Environmental and Transportation Efficiency), (ii) High

25 Speed Rail, or (iii) AMTRAK projects authorized by the federal

26 government under the provisions of the American Recovery and

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1 Reinvestment Act of 2009 or the Safe Accountable Flexible

2 Efficient Transportation Equity Act�A Legacy for Users

3 (SAFETEA-LU), or any successor federal transportation

4 authorization Act, shall be deposited into the Federal High

5 Speed Rail Trust Fund.

6 (c-2) Any money received by the Department of

7 Transportation as reimbursement for expenditures for transit

8 capital purposes pursuant to appropriations from the

9 Transportation Bond, Series B Fund for projects authorized by

10 the federal government under the provisions of the American

11 Recovery and Reinvestment Act of 2009 or the Safe Accountable

12 Flexible Efficient Transportation Equity Act�A Legacy for

13 Users (SAFETEA-LU), or any successor federal transportation

14 authorization Act, shall be deposited into the Federal Mass

15 Transit Trust Fund.

16 (Source: P.A. 98-674, eff. 6-30-14.)

17 Section 25. The Illinois Pension Code is amended by adding

18 Sections 2-154.5, 2-154.6, 14-147.5, 14-147.6, 15-185.5,

19 15-185.6, 16-190.5, 16-190.6, 18-161.5, and 18-161.6 and

20 amending Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169

21 as follows:

22 (40 ILCS 5/2-154.5 new)

23 Sec. 2-154.5. Accelerated pension benefit payment.

24 (a) As used in this Section:

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1 "Eligible person" means a person who:

2 (1) has terminated service;

3 (2) has accrued sufficient service credit to be

4 eligible to receive a retirement annuity under this

5 Article;

6 (3) has not received any retirement annuity under this

7 Article; and

8 (4) does not have a QILDRO in effect against him or her

9 under this Article.

10 "Pension benefit" means the benefits under this Article, or

11 Article 1 as it relates to those benefits, including any

12 anticipated annual increases, that an eligible person is

13 entitled to upon attainment of the applicable retirement age.

14 "Pension benefit" also includes applicable survivor's or

15 disability benefits.

16 (b) Before January 1, 2018, the System shall calculate,

17 using actuarial tables and other assumptions adopted by the

18 Board, the net present value of pension benefits for each

19 eligible person and shall offer each eligible person the

20 opportunity to irrevocably elect to receive an amount

21 determined by the System to be equal to 70% of the net present

22 value of his or her pension benefits in lieu of receiving any

23 pension benefit. The offer shall specify the dollar amount that

24 the eligible person will receive if he or she so elects and

25 shall expire when a subsequent offer is made to an eligible

26 person. The System shall make a good faith effort to contact

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1 every eligible person to notify him or her of the election and

2 of the amount of the accelerated pension benefit payment.

3 Beginning January 1, 2018 and until July 1, 2018, an

4 eligible person may irrevocably elect to receive an accelerated

5 pension benefit payment in the amount that the System offers

6 under this subsection in lieu of receiving any pension benefit.

7 A person who elects to receive an accelerated pension benefit

8 payment under this Section may not elect to proceed under the

9 Retirement Systems Reciprocal Act with respect to service under

10 this Article.

11 (c) A person's credits and creditable service under this

12 Article shall be terminated upon the person's receipt of an

13 accelerated pension benefit payment under this Section, and no

14 other benefit shall be paid under this Article based on those

15 terminated credits and creditable service, including any

16 retirement, survivor, or other benefit; except that to the

17 extent that participation, benefits, or premiums under the

18 State Employees Group Insurance Act of 1971 are based on the

19 amount of service credit, the terminated service credit shall

20 be used for that purpose.

21 (d) If a person who has received an accelerated pension

22 benefit payment under this Section returns to active service

23 under this Article, then:

24 (1) Any benefits under the System earned as a result of

25 that return to active service shall be based solely on the

26 person's credits and creditable service arising from the

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1 return to active service.

2 (2) The accelerated pension benefit payment may not be

3 repaid to the System, and the terminated credits and

4 creditable service may not under any circumstances be

5 reinstated.

6 (e) As a condition of receiving an accelerated pension

7 benefit payment, an eligible person must have another

8 retirement plan or account qualified under the Internal Revenue

9 Code of 1986, as amended, for the accelerated pension benefit

10 payment to be rolled into. The accelerated pension benefit

11 payment under this Section may be subject to withholding or

12 payment of applicable taxes, but to the extent permitted by

13 federal law, a person who receives an accelerated pension

14 benefit payment under this Section must direct the System to

15 pay all of that payment as a rollover into another retirement

16 plan or account qualified under the Internal Revenue Code of

17 1986, as amended.

18 (f) Before January 1, 2019, the Board shall certify to the

19 Illinois Finance Authority and the General Assembly the amount

20 by which the total amount of accelerated pension benefit

21 payments made under this Section exceed the amount appropriated

22 to the System for the purpose of making those payments.

23 (g) The Board shall adopt any rules necessary to implement

24 this Section.

25 (h) No provision of this Section shall be interpreted in a

26 way that would cause the applicable System to cease to be a

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1 qualified plan under the Internal Revenue Code of 1986.

2 (40 ILCS 5/2-162)

3 (Text of Section WITHOUT the changes made by P.A. 98-599,

4 which has been held unconstitutional)

5 Sec. 2-162. Application and expiration of new benefit

6 increases.

7 (a) As used in this Section, "new benefit increase" means

8 an increase in the amount of any benefit provided under this

9 Article, or an expansion of the conditions of eligibility for

10 any benefit under this Article, that results from an amendment

11 to this Code that takes effect after June 1, 2005 (the

12 effective date of Public Act 94-4). "New benefit increase",

13 however, does not include any benefit increase resulting from

14 the changes made to this Article by this amendatory Act of the

15 100th General Assembly ~~the effective date of this amendatory~~

16 ~~Act of the 94th General Assembly~~.

17 (b) Notwithstanding any other provision of this Code or any

18 subsequent amendment to this Code, every new benefit increase

19 is subject to this Section and shall be deemed to be granted

20 only in conformance with and contingent upon compliance with

21 the provisions of this Section.

22 (c) The Public Act enacting a new benefit increase must

23 identify and provide for payment to the System of additional

24 funding at least sufficient to fund the resulting annual

25 increase in cost to the System as it accrues.

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1 Every new benefit increase is contingent upon the General

2 Assembly providing the additional funding required under this

3 subsection. The Commission on Government Forecasting and

4 Accountability shall analyze whether adequate additional

5 funding has been provided for the new benefit increase and

6 shall report its analysis to the Public Pension Division of the

7 Department of Financial and Professional Regulation. A new

8 benefit increase created by a Public Act that does not include

9 the additional funding required under this subsection is null

10 and void. If the Public Pension Division determines that the

11 additional funding provided for a new benefit increase under

12 this subsection is or has become inadequate, it may so certify

13 to the Governor and the State Comptroller and, in the absence

14 of corrective action by the General Assembly, the new benefit

15 increase shall expire at the end of the fiscal year in which

16 the certification is made.

17 (d) Every new benefit increase shall expire 5 years after

18 its effective date or on such earlier date as may be specified

19 in the language enacting the new benefit increase or provided

20 under subsection (c). This does not prevent the General

21 Assembly from extending or re-creating a new benefit increase

22 by law.

23 (e) Except as otherwise provided in the language creating

24 the new benefit increase, a new benefit increase that expires

25 under this Section continues to apply to persons who applied

26 and qualified for the affected benefit while the new benefit

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1 increase was in effect and to the affected beneficiaries and

2 alternate payees of such persons, but does not apply to any

3 other person, including without limitation a person who

4 continues in service after the expiration date and did not

5 apply and qualify for the affected benefit while the new

6 benefit increase was in effect.

7 (Source: P.A. 94-4, eff. 6-1-05.)

8 (40 ILCS 5/14-147.5 new)

9 Sec. 14-147.5. Accelerated pension benefit payment.

10 (a) As used in this Section:

11 "Eligible person" means a person who:

12 (1) has terminated service;

13 (2) has accrued sufficient service credit to be

14 eligible to receive a retirement annuity under this

15 Article;

16 (3) has not received any retirement annuity under this

17 Article; and

18 (4) does not have a QILDRO in effect against him or her

19 under this Article.

20 "Pension benefit" means the benefits under this Article, or

21 Article 1 as it relates to those benefits, including any

22 anticipated annual increases, that an eligible person is

23 entitled to upon attainment of the applicable retirement age.

24 "Pension benefit" also includes applicable survivor's or

25 disability benefits.

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1 (b) Before January 1, 2018, the System shall calculate,

2 using actuarial tables and other assumptions adopted by the

3 Board, the net present value of pension benefits for each

4 eligible person and shall offer each eligible person the

5 opportunity to irrevocably elect to receive an amount

6 determined by the System to be equal to 70% of the net present

7 value of his or her pension benefits in lieu of receiving any

8 pension benefit. The offer shall specify the dollar amount that

9 the eligible person will receive if he or she so elects and

10 shall expire when a subsequent offer is made to an eligible

11 person. The System shall make a good faith effort to contact

12 every eligible person to notify him or her of the election and

13 of the amount of the accelerated pension benefit payment.

14 Beginning January 1, 2018 and until July 1, 2018, an

15 eligible person may irrevocably elect to receive an accelerated

16 pension benefit payment in the amount that the System offers

17 under this subsection in lieu of receiving any pension benefit.

18 A person who elects to receive an accelerated pension benefit

19 payment under this Section may not elect to proceed under the

20 Retirement Systems Reciprocal Act with respect to service under

21 this Article.

22 (c) A person's credits and creditable service under this

23 Article shall be terminated upon the person's receipt of an

24 accelerated pension benefit payment under this Section, and no

25 other benefit shall be paid under this Article based on those

26 terminated credits and creditable service, including any

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1 retirement, survivor, or other benefit; except that to the

2 extent that participation, benefits, or premiums under the

3 State Employees Group Insurance Act of 1971 are based on the

4 amount of service credit, the terminated service credit shall

5 be used for that purpose.

6 (d) If a person who has received an accelerated pension

7 benefit payment under this Section returns to active service

8 under this Article, then:

9 (1) Any benefits under the System earned as a result of

10 that return to active service shall be based solely on the

11 person's credits and creditable service arising from the

12 return to active service.

13 (2) The accelerated pension benefit payment may not be

14 repaid to the System, and the terminated credits and

15 creditable service may not under any circumstances be

16 reinstated.

17 (e) As a condition of receiving an accelerated pension

18 benefit payment, an eligible person must have another

19 retirement plan or account qualified under the Internal Revenue

20 Code of 1986, as amended, for the accelerated pension benefit

21 payment to be rolled into. The accelerated pension benefit

22 payment under this Section may be subject to withholding or

23 payment of applicable taxes, but to the extent permitted by

24 federal law, a person who receives an accelerated pension

25 benefit payment under this Section must direct the System to

26 pay all of that payment as a rollover into another retirement

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1 plan or account qualified under the Internal Revenue Code of

2 1986, as amended.

3 (f) Before January 1, 2019, the Board shall certify to the

4 Illinois Finance Authority and the General Assembly the amount

5 by which the total amount of accelerated pension benefit

6 payments made under this Section exceed the amount appropriated

7 to the System for the purpose of making those payments.

8 (g) The Board shall adopt any rules necessary to implement

9 this Section.

10 (h) No provision of this Section shall be interpreted in a

11 way that would cause the applicable System to cease to be a

12 qualified plan under the Internal Revenue Code of 1986.

13 (40 ILCS 5/14-152.1)

14 (Text of Section WITHOUT the changes made by P.A. 98-599,

15 which has been held unconstitutional)

16 Sec. 14-152.1. Application and expiration of new benefit

17 increases.

18 (a) As used in this Section, "new benefit increase" means

19 an increase in the amount of any benefit provided under this

20 Article, or an expansion of the conditions of eligibility for

21 any benefit under this Article, that results from an amendment

22 to this Code that takes effect after June 1, 2005 (the

23 effective date of Public Act 94-4). "New benefit increase",

24 however, does not include any benefit increase resulting from

25 the changes made to this Article by Public Act 96-37 or by this

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1 amendatory Act of the 100th General Assembly ~~this amendatory~~

2 ~~Act of the 96th General Assembly~~.

3 (b) Notwithstanding any other provision of this Code or any

4 subsequent amendment to this Code, every new benefit increase

5 is subject to this Section and shall be deemed to be granted

6 only in conformance with and contingent upon compliance with

7 the provisions of this Section.

8 (c) The Public Act enacting a new benefit increase must

9 identify and provide for payment to the System of additional

10 funding at least sufficient to fund the resulting annual

11 increase in cost to the System as it accrues.

12 Every new benefit increase is contingent upon the General

13 Assembly providing the additional funding required under this

14 subsection. The Commission on Government Forecasting and

15 Accountability shall analyze whether adequate additional

16 funding has been provided for the new benefit increase and

17 shall report its analysis to the Public Pension Division of the

18 Department of Financial and Professional Regulation. A new

19 benefit increase created by a Public Act that does not include

20 the additional funding required under this subsection is null

21 and void. If the Public Pension Division determines that the

22 additional funding provided for a new benefit increase under

23 this subsection is or has become inadequate, it may so certify

24 to the Governor and the State Comptroller and, in the absence

25 of corrective action by the General Assembly, the new benefit

26 increase shall expire at the end of the fiscal year in which

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1 the certification is made.

2 (d) Every new benefit increase shall expire 5 years after

3 its effective date or on such earlier date as may be specified

4 in the language enacting the new benefit increase or provided

5 under subsection (c). This does not prevent the General

6 Assembly from extending or re-creating a new benefit increase

7 by law.

8 (e) Except as otherwise provided in the language creating

9 the new benefit increase, a new benefit increase that expires

10 under this Section continues to apply to persons who applied

11 and qualified for the affected benefit while the new benefit

12 increase was in effect and to the affected beneficiaries and

13 alternate payees of such persons, but does not apply to any

14 other person, including without limitation a person who

15 continues in service after the expiration date and did not

16 apply and qualify for the affected benefit while the new

17 benefit increase was in effect.

18 (Source: P.A. 96-37, eff. 7-13-09.)

19 (40 ILCS 5/15-185.5 new)

20 Sec. 15-185.5. Accelerated pension benefit payment.

21 (a) As used in this Section:

22 "Eligible person" means a person who:

23 (1) has terminated service;

24 (2) has accrued sufficient service credit to be

25 eligible to receive a retirement annuity under this

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1 Article;

2 (3) has not received any retirement annuity under this

3 Article;

4 (4) does not have a QILDRO in effect against him or her

5 under this Article; and

6 (5) is not a participant in the self-managed plan under

7 Section 15-158.2.

8 "Pension benefit" means the benefits under this Article, or

9 Article 1 as it relates to those benefits, including any

10 anticipated annual increases, that an eligible person is

11 entitled to upon attainment of the applicable retirement age.

12 "Pension benefit" also includes applicable survivor's or

13 disability benefits.

14 (b) Before January 1, 2018, the System shall calculate,

15 using actuarial tables and other assumptions adopted by the

16 Board, the net present value of pension benefits for each

17 eligible person and shall offer each eligible person the

18 opportunity to irrevocably elect to receive an amount

19 determined by the System to be equal to 70% of the net present

20 value of his or her pension benefits in lieu of receiving any

21 pension benefit. The offer shall specify the dollar amount that

22 the eligible person will receive if he or she so elects and

23 shall expire when a subsequent offer is made to an eligible

24 person. The System shall make a good faith effort to contact

25 every eligible person to notify him or her of the election and

26 of the amount of the accelerated pension benefit payment.

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1 Beginning January 1, 2018 and until July 1, 2018, an

2 eligible person may irrevocably elect to receive an accelerated

3 pension benefit payment in the amount that the System offers

4 under this subsection in lieu of receiving any pension benefit.

5 A person who elects to receive an accelerated pension benefit

6 payment under this Section may not elect to proceed under the

7 Retirement Systems Reciprocal Act with respect to service under

8 this Article.

9 (c) A person's credits and creditable service under this

10 Article shall be terminated upon the person's receipt of an

11 accelerated pension benefit payment under this Section, and no

12 other benefit shall be paid under this Article based on those

13 terminated credits and creditable service, including any

14 retirement, survivor, or other benefit; except that to the

15 extent that participation, benefits, or premiums under the

16 State Employees Group Insurance Act of 1971 are based on the

17 amount of service credit, the terminated service credit shall

18 be used for that purpose.

19 (d) If a person who has received an accelerated pension

20 benefit payment under this Section returns to active service

21 under this Article, then:

22 (1) Any benefits under the System earned as a result of

23 that return to active service shall be based solely on the

24 person's credits and creditable service arising from the

25 return to active service.

26 (2) The accelerated pension benefit payment may not be

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1 repaid to the System, and the terminated credits and

2 creditable service may not under any circumstances be

3 reinstated.

4 (e) As a condition of receiving an accelerated pension

5 benefit payment, an eligible person must have another

6 retirement plan or account qualified under the Internal Revenue

7 Code of 1986, as amended, for the accelerated pension benefit

8 payment to be rolled into. The accelerated pension benefit

9 payment under this Section may be subject to withholding or

10 payment of applicable taxes, but to the extent permitted by

11 federal law, a person who receives an accelerated pension

12 benefit payment under this Section must direct the System to

13 pay all of that payment as a rollover into another retirement

14 plan or account qualified under the Internal Revenue Code of

15 1986, as amended.

16 (f) Before January 1, 2019, the Board shall certify to the

17 Illinois Finance Authority and the General Assembly the amount

18 by which the total amount of accelerated pension benefit

19 payments made under this Section exceed the amount appropriated

20 to the System for the purpose of making those payments.

21 (g) The Board shall adopt any rules necessary to implement

22 this Section.

23 (h) No provision of this Section shall be interpreted in a

24 way that would cause the applicable System to cease to be a

25 qualified plan under the Internal Revenue Code of 1986.

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1 (40 ILCS 5/15-198)

2 (Text of Section WITHOUT the changes made by P.A. 98-599,

3 which has been held unconstitutional)

4 Sec. 15-198. 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 this amendatory Act of the

14 100th General Assembly ~~the effective date of this amendatory~~

15 ~~Act of the 94th 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

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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

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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. 94-4, eff. 6-1-05.)

6 (40 ILCS 5/16-190.5 new)

7 Sec. 16-190.5. Accelerated pension benefit payment.

8 (a) As used in this Section:

9 "Eligible person" means a person who:

10 (1) has terminated service;

11 (2) has accrued sufficient service credit to be

12 eligible to receive a retirement annuity under this

13 Article;

14 (3) has not received any retirement annuity under this

15 Article; and

16 (4) does not have a QILDRO in effect against him or her

17 under this Article.

18 "Pension benefit" means the benefits under this Article, or

19 Article 1 as it relates to those benefits, including any

20 anticipated annual increases, that an eligible person is

21 entitled to upon attainment of the applicable retirement age.

22 "Pension benefit" also includes applicable survivor's or

23 disability benefits.

24 (b) Before January 1, 2018, the System shall calculate,

25 using actuarial tables and other assumptions adopted by the

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1 Board, the net present value of pension benefits for each

2 eligible person and shall offer each eligible person the

3 opportunity to irrevocably elect to receive an amount

4 determined by the System to be equal to 70% of the net present

5 value of his or her pension benefits in lieu of receiving any

6 pension benefit. The offer shall specify the dollar amount that

7 the eligible person will receive if he or she so elects and

8 shall expire when a subsequent offer is made to an eligible

9 person. The System shall make a good faith effort to contact

10 every eligible person to notify him or her of the election and

11 of the amount of the accelerated pension benefit payment.

12 Beginning January 1, 2018 and until July 1, 2018, an

13 eligible person may irrevocably elect to receive an accelerated

14 pension benefit payment in the amount that the System offers

15 under this subsection in lieu of receiving any pension benefit.

16 A person who elects to receive an accelerated pension benefit

17 payment under this Section may not elect to proceed under the

18 Retirement Systems Reciprocal Act with respect to service under

19 this Article.

20 (c) A person's credits and creditable service under this

21 Article shall be terminated upon the person's receipt of an

22 accelerated pension benefit payment under this Section, and no

23 other benefit shall be paid under this Article based on those

24 terminated credits and creditable service, including any

25 retirement, survivor, or other benefit; except that to the

26 extent that participation, benefits, or premiums under the

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1 State Employees Group Insurance Act of 1971 are based on the

2 amount of service credit, the terminated service credit shall

3 be used for that purpose.

4 (d) If a person who has received an accelerated pension

5 benefit payment under this Section returns to active service

6 under this Article, then:

7 (1) Any benefits under the System earned as a result of

8 that return to active service shall be based solely on the

9 person's credits and creditable service arising from the

10 return to active service.

11 (2) The accelerated pension benefit payment may not be

12 repaid to the System, and the terminated credits and

13 creditable service may not under any circumstances be

14 reinstated.

15 (e) As a condition of receiving an accelerated pension

16 benefit payment, an eligible person must have another

17 retirement plan or account qualified under the Internal Revenue

18 Code of 1986, as amended, for the accelerated pension benefit

19 payment to be rolled into. The accelerated pension benefit

20 payment under this Section may be subject to withholding or

21 payment of applicable taxes, but to the extent permitted by

22 federal law, a person who receives an accelerated pension

23 benefit payment under this Section must direct the System to

24 pay all of that payment as a rollover into another retirement

25 plan or account qualified under the Internal Revenue Code of

26 1986, as amended.

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LRB100 06229 RPS 16264 b

1 (f) Before January 1, 2019, the Board shall certify to the

2 Illinois Finance Authority and the General Assembly the amount

3 by which the total amount of accelerated pension benefit

4 payments made under this Section exceed the amount appropriated

5 to the System for the purpose of making those payments.

6 (g) The Board shall adopt any rules necessary to implement

7 this Section.

8 (h) No provision of this Section shall be interpreted in a

9 way that would cause the applicable System to cease to be a

10 qualified plan under the Internal Revenue Code of 1986.

11 (40 ILCS 5/16-203)

12 (Text of Section WITHOUT the changes made by P.A. 98-599,

13 which has been held unconstitutional)

14 Sec. 16-203. Application and expiration of new benefit

15 increases.

16 (a) As used in this Section, "new benefit increase" means

17 an increase in the amount of any benefit provided under this

18 Article, or an expansion of the conditions of eligibility for

19 any benefit under this Article, that results from an amendment

20 to this Code that takes effect after June 1, 2005 (the

21 effective date of Public Act 94-4). "New benefit increase",

22 however, does not include any benefit increase resulting from

23 the changes made to this Article by Public Act 95-910 or by

24 this amendatory Act of the 100th General Assembly ~~this~~

25 ~~amendatory Act of the 95th General Assembly~~.

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LRB100 06229 RPS 16264 b

1 (b) Notwithstanding any other provision of this Code or any

2 subsequent amendment to this Code, every new benefit increase

3 is subject to this Section and shall be deemed to be granted

4 only in conformance with and contingent upon compliance with

5 the provisions of this Section.

6 (c) The Public Act enacting a new benefit increase must

7 identify and provide for payment to the System of additional

8 funding at least sufficient to fund the resulting annual

9 increase in cost to the System as it accrues.

10 Every new benefit increase is contingent upon the General

11 Assembly providing the additional funding required under this

12 subsection. The Commission on Government Forecasting and

13 Accountability shall analyze whether adequate additional

14 funding has been provided for the new benefit increase and

15 shall report its analysis to the Public Pension Division of the

16 Department of Financial and Professional Regulation. A new

17 benefit increase created by a Public Act that does not include

18 the additional funding required under this subsection is null

19 and void. If the Public Pension Division determines that the

20 additional funding provided for a new benefit increase under

21 this subsection is or has become inadequate, it may so certify

22 to the Governor and the State Comptroller and, in the absence

23 of corrective action by the General Assembly, the new benefit

24 increase shall expire at the end of the fiscal year in which

25 the certification is made.

26 (d) Every new benefit increase shall expire 5 years after

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LRB100 06229 RPS 16264 b

1 its effective date or on such earlier date as may be specified

2 in the language enacting the new benefit increase or provided

3 under subsection (c). This does not prevent the General

4 Assembly from extending or re-creating a new benefit increase

5 by law.

6 (e) Except as otherwise provided in the language creating

7 the new benefit increase, a new benefit increase that expires

8 under this Section continues to apply to persons who applied

9 and qualified for the affected benefit while the new benefit

10 increase was in effect and to the affected beneficiaries and

11 alternate payees of such persons, but does not apply to any

12 other person, including without limitation a person who

13 continues in service after the expiration date and did not

14 apply and qualify for the affected benefit while the new

15 benefit increase was in effect.

16 (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)

17 (40 ILCS 5/18-161.5 new)

18 Sec. 18-161.5. Accelerated pension benefit payment.

19 (a) As used in this Section:

20 "Eligible person" means a person who:

21 (1) has terminated service;

22 (2) has accrued sufficient service credit to be

23 eligible to receive a retirement annuity under this

24 Article;

25 (3) has not received any retirement annuity under this

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LRB100 06229 RPS 16264 b

1 Article; and

2 (4) does not have a QILDRO in effect against him or her

3 under this Article.

4 "Pension benefit" means the benefits under this Article, or

5 Article 1 as it relates to those benefits, including any

6 anticipated annual increases, that an eligible person is

7 entitled to upon attainment of the applicable retirement age.

8 "Pension benefit" also includes applicable survivor's or

9 disability benefits.

10 (b) Before January 1, 2018, the System shall calculate,

11 using actuarial tables and other assumptions adopted by the

12 Board, the net present value of pension benefits for each

13 eligible person and shall offer each eligible person the

14 opportunity to irrevocably elect to receive an amount

15 determined by the System to be equal to 70% of the net present

16 value of his or her pension benefits in lieu of receiving any

17 pension benefit. The offer shall specify the dollar amount that

18 the eligible person will receive if he or she so elects and

19 shall expire when a subsequent offer is made to an eligible

20 person. The System shall make a good faith effort to contact

21 every eligible person to notify him or her of the election and

22 of the amount of the accelerated pension benefit payment.

23 Beginning January 1, 2018 and until July 1, 2018, an

24 eligible person may irrevocably elect to receive an accelerated

25 pension benefit payment in the amount that the System offers

26 under this subsection in lieu of receiving any pension benefit.

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LRB100 06229 RPS 16264 b

1 A person who elects to receive an accelerated pension benefit

2 payment under this Section may not elect to proceed under the

3 Retirement Systems Reciprocal Act with respect to service under

4 this Article.

5 (c) A person's credits and creditable service under this

6 Article shall be terminated upon the person's receipt of an

7 accelerated pension benefit payment under this Section, and no

8 other benefit shall be paid under this Article based on those

9 terminated credits and creditable service, including any

10 retirement, survivor, or other benefit; except that to the

11 extent that participation, benefits, or premiums under the

12 State Employees Group Insurance Act of 1971 are based on the

13 amount of service credit, the terminated service credit shall

14 be used for that purpose.

15 (d) If a person who has received an accelerated pension

16 benefit payment under this Section returns to active service

17 under this Article, then:

18 (1) Any benefits under the System earned as a result of

19 that return to active service shall be based solely on the

20 person's credits and creditable service arising from the

21 return to active service.

22 (2) The accelerated pension benefit payment may not be

23 repaid to the System, and the terminated credits and

24 creditable service may not under any circumstances be

25 reinstated.

26 (e) As a condition of receiving an accelerated pension

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1 benefit payment, an eligible person must have another

2 retirement plan or account qualified under the Internal Revenue

3 Code of 1986, as amended, for the accelerated pension benefit

4 payment to be rolled into. The accelerated pension benefit

5 payment under this Section may be subject to withholding or

6 payment of applicable taxes, but to the extent permitted by

7 federal law, a person who receives an accelerated pension

8 benefit payment under this Section must direct the System to

9 pay all of that payment as a rollover into another retirement

10 plan or account qualified under the Internal Revenue Code of

11 1986, as amended.

12 (f) Before January 1, 2019, the Board shall certify to the

13 Illinois Finance Authority and the General Assembly the amount

14 by which the total amount of accelerated pension benefit

15 payments made under this Section exceed the amount appropriated

16 to the System for the purpose of making those payments.

17 (g) The Board shall adopt any rules necessary to implement

18 this Section.

19 (h) No provision of this Section shall be interpreted in a

20 way that would cause the applicable System to cease to be a

21 qualified plan under the Internal Revenue Code of 1986.

22 (40 ILCS 5/18-169)

23 Sec. 18-169. Application and expiration of new benefit

24 increases.

25 (a) As used in this Section, "new benefit increase" means

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LRB100 06229 RPS 16264 b

1 an increase in the amount of any benefit provided under this

2 Article, or an expansion of the conditions of eligibility for

3 any benefit under this Article, that results from an amendment

4 to this Code that takes effect after June 1, 2005 (the

5 effective date of Public Act 94-4). "New benefit increase",

6 however, does not include any benefit increase resulting from

7 the changes made to this Article by this amendatory Act of the

8 100th General Assembly ~~the effective date of this amendatory~~

9 ~~Act of the 94th General Assembly~~.

10 (b) Notwithstanding any other provision of this Code or any

11 subsequent amendment to this Code, every new benefit increase

12 is subject to this Section and shall be deemed to be granted

13 only in conformance with and contingent upon compliance with

14 the provisions of this Section.

15 (c) The Public Act enacting a new benefit increase must

16 identify and provide for payment to the System of additional

17 funding at least sufficient to fund the resulting annual

18 increase in cost to the System as it accrues.

19 Every new benefit increase is contingent upon the General

20 Assembly providing the additional funding required under this

21 subsection. The Commission on Government Forecasting and

22 Accountability shall analyze whether adequate additional

23 funding has been provided for the new benefit increase and

24 shall report its analysis to the Public Pension Division of the

25 Department of Financial and Professional Regulation. A new

26 benefit increase created by a Public Act that does not include

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LRB100 06229 RPS 16264 b

1 the additional funding required under this subsection is null

2 and void. If the Public Pension Division determines that the

3 additional funding provided for a new benefit increase under

4 this subsection is or has become inadequate, it may so certify

5 to the Governor and the State Comptroller and, in the absence

6 of corrective action by the General Assembly, the new benefit

7 increase shall expire at the end of the fiscal year in which

8 the certification is made.

9 (d) Every new benefit increase shall expire 5 years after

10 its effective date or on such earlier date as may be specified

11 in the language enacting the new benefit increase or provided

12 under subsection (c). This does not prevent the General

13 Assembly from extending or re-creating a new benefit increase

14 by law.

15 (e) Except as otherwise provided in the language creating

16 the new benefit increase, a new benefit increase that expires

17 under this Section continues to apply to persons who applied

18 and qualified for the affected benefit while the new benefit

19 increase was in effect and to the affected beneficiaries and

20 alternate payees of such persons, but does not apply to any

21 other person, including without limitation a person who

22 continues in service after the expiration date and did not

23 apply and qualify for the affected benefit while the new

24 benefit increase was in effect.

25 (Source: P.A. 94-4, eff. 6-1-05.)

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1 Section 30. The State Pension Funds Continuing

2 Appropriation Act is amended by adding Section 1.9 as follows:

3 (40 ILCS 15/1.9 new)

4 Sec. 1.9. Appropriations for State Pension Obligation

5 Acceleration Bonds. If for any reason the aggregate

6 appropriations made available are insufficient to meet the

7 levels required for the payment of principal and interest due

8 on State Pension Obligation Acceleration Bonds under Section

9 7.6 of the General Obligation Bond Act, this Section shall

10 constitute a continuing appropriation of all amounts necessary

11 for those purposes.

12 Section 99. Effective date. This Act takes effect upon

13 becoming law.

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INDEX

Statutes amended in order of appearance