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Public Act 098-0596
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SB2196 Enrolled | LRB098 03936 HLH 33955 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the |
University of Illinois School of Labor and Employment Relations |
Act.
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Section 5. School of Labor and Employment Relations; |
autonomy. The Board of Trustees of the University of Illinois |
shall operate the School of Labor and Employment Relations as a |
distinct and autonomous entity within the University of |
Illinois for the purpose of offering curricula and other |
educational programs, at the Urbana-Champaign and Chicago |
campuses and through extension services, in all phases of |
industrial and labor relations to promote research in those |
fields by maintaining a school dedicated solely to the |
faithful, honest, and impartial inquiry into labor-management |
problems of all types, and for the securement of such advances |
as will lay the foundations for future progress in the field of |
labor relations.
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Section 900. The Illinois Pension Code is amended by |
changing Sections 15-126.1, 15-139, 15-139.5, and 15-168.2 as |
follows:
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(40 ILCS 5/1-160) |
Sec. 1-160. Provisions applicable to new hires. |
(a) The provisions of this Section apply to a person who, |
on or after January 1, 2011, first becomes a member or a |
participant under any reciprocal retirement system or pension |
fund established under this Code, other than a retirement |
system or pension fund established under Article 2, 3, 4, 5, 6, |
15 or 18 of this Code, notwithstanding any other provision of |
this Code to the contrary, but do not apply to any self-managed |
plan established under this Code, to any person with respect to |
service as a sheriff's law enforcement employee under Article |
7, or to any participant of the retirement plan established |
under Section 22-101. Notwithstanding anything to the contrary |
in this Section, for purposes of this Section, a person who |
participated in a retirement system under Article 15 prior to |
January 1, 2011 shall be deemed a person who first became a |
member or participant prior to January 1, 2011 under any |
retirement system or pension fund subject to this Section. The |
changes made to this Section by this amendatory Act of the 98th |
General Assembly are a clarification of existing law and are |
intended to be retroactive to the effective date of Public Act |
96-889, notwithstanding the provisions of Section 1-103.1 of |
this Code. |
(b) "Final average salary" means the average monthly (or |
annual) salary obtained by dividing the total salary or |
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earnings calculated under the Article applicable to the member |
or participant during the 96 consecutive months (or 8 |
consecutive years) of service within the last 120 months (or 10 |
years) of service in which the total salary or earnings |
calculated under the applicable Article was the highest by the |
number of months (or years) of service in that period. For the |
purposes of a person who first becomes a member or participant |
of any retirement system or pension fund to which this Section |
applies on or after January 1, 2011, in this Code, "final |
average salary" shall be substituted for the following: |
(1) In Article 7 (except for service as sheriff's law |
enforcement employees), "final rate of earnings". |
(2) In Articles 8, 9, 10, 11, and 12, "highest average |
annual salary for any 4 consecutive years within the last |
10 years of service immediately preceding the date of |
withdrawal". |
(3) In Article 13, "average final salary". |
(4) In Article 14, "final average compensation". |
(5) In Article 17, "average salary". |
(6) In Section 22-207, "wages or salary received by him |
at the date of retirement or discharge". |
(b-5) Beginning on January 1, 2011, for all purposes under |
this Code (including without limitation the calculation of |
benefits and employee contributions), the annual earnings, |
salary, or wages (based on the plan year) of a member or |
participant to whom this Section applies shall not exceed |
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$106,800; however, that amount shall annually thereafter be |
increased by the lesser of (i) 3% of that amount, including all |
previous adjustments, or (ii) one-half the annual unadjusted |
percentage increase (but not less than zero) in the consumer |
price index-u
for the 12 months ending with the September |
preceding each November 1, including all previous adjustments. |
For the purposes of this Section, "consumer price index-u" |
means
the index published by the Bureau of Labor Statistics of |
the United States
Department of Labor that measures the average |
change in prices of goods and
services purchased by all urban |
consumers, United States city average, all
items, 1982-84 = |
100. The new amount resulting from each annual adjustment
shall |
be determined by the Public Pension Division of the Department |
of Insurance and made available to the boards of the retirement |
systems and pension funds by November 1 of each year. |
(c) A member or participant is entitled to a retirement
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annuity upon written application if he or she has attained age |
67 and has at least 10 years of service credit and is otherwise |
eligible under the requirements of the applicable Article. |
A member or participant who has attained age 62 and has at |
least 10 years of service credit and is otherwise eligible |
under the requirements of the applicable Article may elect to |
receive the lower retirement annuity provided
in subsection (d) |
of this Section. |
(d) The retirement annuity of a member or participant who |
is retiring after attaining age 62 with at least 10 years of |
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service credit shall be reduced by one-half
of 1% for each full |
month that the member's age is under age 67. |
(e) Any retirement annuity or supplemental annuity shall be |
subject to annual increases on the January 1 occurring either |
on or after the attainment of age 67 or the first anniversary |
of the annuity start date, whichever is later. Each annual |
increase shall be calculated at 3% or one-half the annual |
unadjusted percentage increase (but not less than zero) in the |
consumer price index-u for the 12 months ending with the |
September preceding each November 1, whichever is less, of the |
originally granted retirement annuity. If the annual |
unadjusted percentage change in the consumer price index-u for |
the 12 months ending with the September preceding each November |
1 is zero or there is a decrease, then the annuity shall not be |
increased. |
(f) The initial survivor's or widow's annuity of an |
otherwise eligible survivor or widow of a retired member or |
participant who first became a member or participant on or |
after January 1, 2011 shall be in the amount of 66 2/3% of the |
retired member's or participant's retirement annuity at the |
date of death. In the case of the death of a member or |
participant who has not retired and who first became a member |
or participant on or after January 1, 2011, eligibility for a |
survivor's or widow's annuity shall be determined by the |
applicable Article of this Code. The initial benefit shall be |
66 2/3% of the earned annuity without a reduction due to age. A |
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child's annuity of an otherwise eligible child shall be in the |
amount prescribed under each Article if applicable. Any |
survivor's or widow's annuity shall be increased (1) on each |
January 1 occurring on or after the commencement of the annuity |
if
the deceased member died while receiving a retirement |
annuity or (2) in
other cases, on each January 1 occurring |
after the first anniversary
of the commencement of the annuity. |
Each annual increase shall be calculated at 3% or one-half the |
annual unadjusted percentage increase (but not less than zero) |
in the consumer price index-u for the 12 months ending with the |
September preceding each November 1, whichever is less, of the |
originally granted survivor's annuity. If the annual |
unadjusted percentage change in the consumer price index-u for |
the 12 months ending with the September preceding each November |
1 is zero or there is a decrease, then the annuity shall not be |
increased. |
(g) The benefits in Section 14-110 apply only if the person |
is a State policeman, a fire fighter in the fire protection |
service of a department, or a security employee of the |
Department of Corrections or the Department of Juvenile |
Justice, as those terms are defined in subsection (b) of |
Section 14-110. A person who meets the requirements of this |
Section is entitled to an annuity calculated under the |
provisions of Section 14-110, in lieu of the regular or minimum |
retirement annuity, only if the person has withdrawn from |
service with not less than 20
years of eligible creditable |
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service and has attained age 60, regardless of whether
the |
attainment of age 60 occurs while the person is
still in |
service. |
(h) If a person who first becomes a member or a participant |
of a retirement system or pension fund subject to this Section |
on or after January 1, 2011 is receiving a retirement annuity |
or retirement pension under that system or fund and becomes a |
member or participant under any other system or fund created by |
this Code and is employed on a full-time basis, except for |
those members or participants exempted from the provisions of |
this Section under subsection (a) of this Section, then the |
person's retirement annuity or retirement pension under that |
system or fund shall be suspended during that employment. Upon |
termination of that employment, the person's retirement |
annuity or retirement pension payments shall resume and be |
recalculated if recalculation is provided for under the |
applicable Article of this Code. |
If a person who first becomes a member of a retirement |
system or pension fund subject to this Section on or after |
January 1, 2012 and is receiving a retirement annuity or |
retirement pension under that system or fund and accepts on a |
contractual basis a position to provide services to a |
governmental entity from which he or she has retired, then that |
person's annuity or retirement pension earned as an active |
employee of the employer shall be suspended during that |
contractual service. A person receiving an annuity or |
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retirement pension under this Code shall notify the pension |
fund or retirement system from which he or she is receiving an |
annuity or retirement pension, as well as his or her |
contractual employer, of his or her retirement status before |
accepting contractual employment. A person who fails to submit |
such notification shall be guilty of a Class A misdemeanor and |
required to pay a fine of $1,000. Upon termination of that |
contractual employment, the person's retirement annuity or |
retirement pension payments shall resume and, if appropriate, |
be recalculated under the applicable provisions of this Code. |
(i) (Blank). |
(j) In the case of a conflict between the provisions of |
this Section and any other provision of this Code, the |
provisions of this Section shall control.
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(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-108.2) |
Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who |
first becomes a participant under this Article on or after |
January 1, 2011, other than a person in the self-managed plan |
established under Section 15-158.2, unless the person is |
otherwise a Tier 1 member. The changes made to this Section by |
this amendatory Act of the 98th General Assembly are a |
correction of existing law and are intended to be retroactive |
to the effective date of Public Act 96-889, notwithstanding the |
provisions of Section 1-103.1 of this Code. A participant under |
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this Article, other than a participant in the self-managed plan |
under Section 15-158.2, who on or after January 1, 2011, first |
becomes a participant or member under any reciprocal retirement |
system or pension fund established under this Code.
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(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
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Sec. 15-126.1. Academic year. "Academic year": The |
12-month period
beginning on the first day of the fall term as |
determined
by each employer, or if the employer does not have |
an academic program
divided into terms, then beginning |
September 1. For the purposes of Section 15-139.5 and |
subsection (b) of Section 15-139, however, "academic year" |
means the 12-month period beginning September 1.
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(Source: P.A. 84-1472.)
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(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
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Sec. 15-139. Retirement annuities; cancellation; suspended |
during
employment. |
(a) If an annuitant returns to employment for an employer
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within 60 days after the beginning of the retirement annuity |
payment
period, the retirement annuity shall be cancelled, and |
the annuitant shall
refund to the System the total amount of |
the retirement annuity payments
which he or she received. If |
the retirement annuity is cancelled, the
participant shall |
continue to participate in the System.
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(b) If an annuitant retires prior to age 60 and receives or |
becomes
entitled to receive during any month compensation in |
excess of the monthly
retirement annuity (including any |
automatic annual increases) for services
performed after the |
date of retirement for any employer under this System, that
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portion of the monthly
retirement annuity provided by employer |
contributions shall not be payable.
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If an annuitant retires at age 60 or over and receives
or |
becomes entitled to receive during any academic year |
compensation in
excess of the difference between his or her |
highest annual earnings prior
to retirement and his or her |
annual retirement annuity computed under Rule
1, Rule 2, Rule |
3, or Rule 4 of Section 15-136, or under Section
15-136.4,
for |
services performed after
the date of retirement for any |
employer under this System, that portion of
the monthly |
retirement annuity provided by employer contributions shall be
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reduced by an amount equal to the compensation that exceeds |
such difference.
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However, any remuneration received for serving as a member |
of the
Illinois Educational Labor Relations Board shall be |
excluded from
"compensation" for the purposes of this |
subsection (b), and serving as a
member of the Illinois |
Educational Labor Relations Board shall not be
deemed to be a |
return to employment for the purposes of this Section.
This |
provision applies without regard to whether service was |
terminated
prior to the effective date of this amendatory Act |
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of 1991.
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"Academic year", as used in this subsection (b), means the |
12-month period beginning September 1. |
(c) If an employer certifies that an annuitant has been |
reemployed
on a permanent and continuous basis or in a position
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in which the annuitant is expected to serve for at least 9 |
months, the
annuitant shall resume his or her status as a |
participating employee
and shall be entitled to all rights |
applicable to
participating employees upon filing with the |
board an
election to forgo all annuity payments during the |
period
of reemployment. Upon subsequent retirement, the |
retirement
annuity shall consist of the annuity which was |
terminated by the reemployment,
plus the additional retirement |
annuity based upon service
granted during the period of |
reemployment, but the combined retirement
annuity shall not |
exceed the maximum
annuity applicable on the date of the last |
retirement.
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The total service and earnings credited before and after |
the initial
date of retirement shall be considered in |
determining eligibility of the
employee or the employee's |
beneficiary to benefits under this
Article, and in calculating |
final rate of earnings.
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In determining the death benefit
payable to a beneficiary |
of an annuitant who again becomes a participating
employee |
under this Section, accumulated normal and additional
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contributions shall be considered as the sum of the accumulated |
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normal and
additional contributions at the date of initial |
retirement and the
accumulated normal and additional |
contributions credited after that date,
less the sum of the |
annuity payments received by the annuitant.
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The survivors insurance benefits provided under Section |
15-145 shall not
be applicable to an annuitant who resumes his |
or her status as a
participating employee, unless the |
annuitant, at the time of initial
retirement, has a survivors |
insurance beneficiary who could qualify
for such benefits.
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If the participant's employment is terminated because of |
circumstances
other than death before 9 months from the date of |
reemployment, the
provisions of this Section regarding |
resumption of status as a
participating employee shall not |
apply. The normal and survivors insurance
contributions which |
are deducted during this period shall be refunded to
the |
annuitant without interest, and subsequent benefits under this |
Article
shall be the same as those which were applicable prior |
to the date the
annuitant resumed employment.
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The amendments made to this Section by this amendatory Act |
of the 91st
General Assembly apply without regard to whether |
the annuitant was in service
on or after the effective date of |
this amendatory Act.
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(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
98-92, eff. 7-16-13.)
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(40 ILCS 5/15-139.5) |
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Sec. 15-139.5. Return to work by affected annuitant; notice |
and contribution by employer. |
(a) An employer who employs or re-employs a person |
receiving a retirement annuity from the System in an academic |
year beginning on or after August 1, 2013 must notify the |
System of that employment within 60 days after employing the |
annuitant. The notice must include a summary copy of the |
contract of employment or ; if no written contract of employment |
exists, then the notice must specify the rate of compensation |
and the anticipated length of employment of that annuitant. The |
notice must specify whether the annuitant will be compensated |
from federal, corporate, foundation, or trust funds or grants |
of State funds that identify the principal investigator by |
name. The notice must include the employer's determination of |
whether or not the annuitant is an "affected annuitant" as |
defined in subsection (b). |
The employer must also record, document, and certify to the |
System (i) the number of paid days and paid weeks worked by the |
annuitant in the academic year, (ii) the amount of compensation |
paid to the annuitant for employment during the academic year, |
and (ii) (iii) the amount of that compensation, if any, that |
comes from either federal, corporate, foundation, or trust |
funds or grants of State funds that identify the principal |
investigator by name. |
As used in this Section, "academic year" means the 12-month |
period beginning September 1. has the meaning ascribed to that |
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term in Section 15-126.1; "paid day" means a day on which a |
person performs personal services for an employer and for which |
the person is compensated by the employer; and "paid week" |
means a calendar week in which a person has at least one paid |
day. |
For the purposes of this Section, an annuitant whose |
employment by an employer extends over more than one academic |
year shall be deemed to be re-employed by that employer in each |
of those academic years. |
The System may specify the time, form, and manner of |
providing the determinations, notifications, certifications, |
and documentation required under this Section. |
(b) A person receiving a retirement annuity from the System |
becomes an "affected annuitant" on the first day of the |
academic year following the academic year in which the |
annuitant first meets both of the following condition |
conditions : |
(1) (Blank). While receiving a retirement annuity |
under this Article, the annuitant has been employed on or |
after August 1, 2013 by one or more employers under this |
Article for a total of more than 18 paid weeks (which need |
not have been with the same employer or in the same |
academic year); except that any periods of employment for |
which the annuitant was compensated solely from federal, |
corporate, foundation, or trust funds or grants of State |
funds that identify the principal investigator by name are |
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excluded. |
(2) While receiving a retirement annuity under this |
Article, the annuitant was employed on or after August 1, |
2013 by one or more employers under this Article and |
received
or became entitled to receive during an academic |
year compensation for that employment in excess of 40% of |
his or her highest annual earnings prior
to retirement; |
except that compensation paid from federal, corporate, |
foundation, or trust funds or grants of State funds that |
identify the principal investigator by name is excluded. |
A person who becomes an affected annuitant remains an |
affected annuitant, except for any period during which the |
person returns to active service and does not receive a |
retirement annuity from the System. |
(c) It is the obligation of the employer to determine |
whether an annuitant is an affected annuitant before employing |
the annuitant. For that purpose the employer may require the |
annuitant to disclose and document his or her relevant prior |
employment and earnings history. Failure of the employer to |
make this determination correctly and in a timely manner or to |
include this determination with the notification required |
under subsection (a) does not excuse the employer from making |
the contribution required under subsection (e). |
The System may assist the employer in determining whether a |
person is an affected annuitant. The System shall inform the |
employer if it discovers that the employer's determination is |
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inconsistent with the employment and earnings information in |
the System's records. |
(d) Upon the request of an annuitant, the System shall |
certify to the annuitant or the employer the following |
information as reported by the employers, as that information |
is indicated in the records of the System: (i) the annuitant's |
highest annual earnings prior
to retirement, (ii) the number of |
paid weeks worked by the annuitant for an employer on or after |
August 1, 2013, (iii) the compensation paid for that employment |
in each academic year, and (iii) (iv) whether any of that |
employment or compensation has been certified to the System as |
being paid from federal, corporate, foundation, or trust funds |
or grants of State funds that identify the principal |
investigator by name. The System shall only be required to |
certify information that is received from the employers. |
(e) In addition to the requirements of subsection (a), an |
employer who employs an affected annuitant must pay to the |
System an employer contribution in the amount and manner |
provided in this Section, unless the annuitant is compensated |
by that employer solely from federal, corporate, foundation, or |
trust funds or grants of State funds that identify the |
principal investigator by name. |
The employer contribution required under this Section for |
employment of an affected annuitant in an academic year shall |
be equal to 12 times the amount of the gross monthly retirement |
annuity payable to the annuitant for the month in which the |
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first paid day of that employment in that academic year occurs, |
after any reduction in that annuity that may be imposed under |
subsection (b) of Section 15-139. |
If an affected annuitant is employed by more than one |
employer in an academic year, the employer contribution |
required under this Section shall be divided among those |
employers in proportion to their respective portions of the |
total compensation paid to the affected annuitant for that |
employment during that academic year. |
If the System determines that an employer, without |
reasonable justification, has failed to make the determination |
of affected annuitant status correctly and in a timely manner, |
or has failed to notify the System or to correctly document or |
certify to the System any of the information required by this |
Section, and that failure results in a delayed determination by |
the System that a contribution is payable under this Section, |
then the amount of that employer's contribution otherwise |
determined under this Section shall be doubled. |
The System shall deem a failure to correctly determine the |
annuitant's status to be justified if the employer establishes |
to the System's satisfaction that the employer, after due |
diligence, made an erroneous determination that the annuitant |
was not an affected annuitant due to reasonable reliance on |
false or misleading information provided by the annuitant or |
another employer, or an error in the annuitant's official |
employment or earnings records. |
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(f) Whenever the System determines that an employer is |
liable for a contribution under this Section, it shall so |
notify the employer and certify the amount of the contribution. |
The employer may pay the required contribution without interest |
at any time within one year after receipt of the certification. |
If the employer fails to pay within that year, then interest |
shall be charged at a rate equal to the System's prescribed |
rate of interest, compounded annually from the 366th day after |
receipt of the certification from the System. Payment must be |
concluded within 2 years after receipt of the certification by |
the employer. If the employer fails to make complete payment, |
including applicable interest, within 2 years, then the System |
may, after giving notice to the employer, certify the |
delinquent amount to the State Comptroller, and the Comptroller |
shall thereupon deduct the certified delinquent amount from |
State funds payable to the employer and pay them instead to the |
System. |
(g) If an employer is required to make a contribution to |
the System as a result of employing an affected annuitant and |
the annuitant later elects to forgo his or her annuity in that |
same academic year pursuant to subsection (c) of Section |
15-139, then the required contribution by the employer shall be |
waived, and if the contribution has already been paid, it shall |
be refunded to the employer without interest. |
(h) Notwithstanding any other provision of this Article, |
the employer contribution required under this Section shall not |
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be included in the determination of any benefit under this |
Article or any other Article of this Code, regardless of |
whether the annuitant returns to active service, and is in |
addition to any other State or employer contribution required |
under this Article. |
(i) Notwithstanding any other provision of this Section to |
the contrary, if an employer employs an affected annuitant in |
order to continue critical operations in the event of either an |
employee's unforeseen illness, accident, or death or a |
catastrophic incident or disaster, then, for one and only one |
academic year, the employer is not required to pay the |
contribution set forth in this Section for that annuitant. The |
employer shall, however, immediately notify the System upon |
employing a person subject to this subsection (i). For the |
purposes of this subsection (i), "critical operations" means |
teaching services, medical services, student welfare services, |
and any other services that are critical to the mission of the |
employer.
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(j) This Section shall be applied and coordinated with the |
regulatory obligations contained in the State Universities |
Civil Service Act. This Section shall not apply to an annuitant |
if the employer of that annuitant provides documentation to the |
System that (1) the annuitant is employed in a status |
appointment position, as that term is defined in 80 Ill. Adm. |
Code 250.80, and (2) due to obligations contained under the |
State Universities Civil Service Act, the employer does not |
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have the ability to limit the earnings or duration of |
employment for the annuitant while employed in the status |
appointment position. |
(Source: P.A. 97-968, eff. 8-16-12.)
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(40 ILCS 5/15-145.1) |
Sec. 15-145.1. Survivor's insurance annuities and lump sum |
payments benefits for Tier 2 Members; amount. Survivor |
eligibility, vesting, and conditions for a survivor's |
insurance annuity and lump sum payment amount payable to a |
survivor's insurance beneficiary of a deceased Tier 2 member |
shall be determined under the provisions of this Article |
applicable to survivor's insurance beneficiaries of a deceased |
Tier 1 member; however, the amount of a survivor's insurance |
annuity, including the annual increases thereon, shall be |
calculated pursuant to this Section. The initial survivor's |
insurance annuity benefit of a survivors insurance beneficiary |
of a Tier 2 annuitant member shall be in the amount of 66 2/3% |
of the Tier 2 member's retirement annuity at the date of death. |
In the case of the death of a Tier 2 member who has not retired, |
eligibility for a survivor's insurance benefit shall be |
determined by the applicable Section of this Article. The |
initial benefit shall be 66 2/3% of the earned annuity without |
a reduction due to age . A survivor's insurance annuity and |
shall be increased (1) on each January 1 occurring on or after |
the commencement of the annuity if the deceased Tier 2 member |
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died while receiving a retirement annuity or (2) in other |
cases, on each January 1 occurring after the first anniversary |
of the commencement of the benefit. Each annual increase shall |
be calculated at 3% or one half the annual unadjusted |
percentage increase (but not less than zero) in the consumer |
price index-u for the 12 months ending with the September |
preceding each November 1, whichever is less, of the originally |
granted survivor's insurance annuity benefit . If the annual |
unadjusted percentage change in the consumer price index-u for |
the 12 months ending with the September preceding each November |
1 is zero or there is a decrease, then the survivor's insurance |
annuity benefit shall not be increased. A beneficiary of a Tier |
2 member who elects the Portable Benefit Package provided under |
this Article shall not be eligible for the survivor's insurance |
annuity benefit that is provided under this Section. If 2 or |
more persons are eligible to receive survivor's insurance |
annuities benefits as provided under this Section based on the |
same deceased Tier 2 member, the calculation of the survivor's |
insurance annuities benefits shall be based on the total |
calculation of the survivor's insurance annuity benefit and |
divided pro rata. The changes made to this Section by this |
amendatory Act of the 98th General Assembly are a clarification |
of existing law and are intended to be retroactive to the |
effective date of Public Act 96-889, notwithstanding the |
provisions of Section 1-103.1 of this Code.
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(Source: P.A. 98-92, eff. 7-16-13.)
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