Bill Text: IL SB3111 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Illinois Administrative Procedure Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB3111 Detail]
Download: Illinois-2011-SB3111-Amended.html
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1 | AMENDMENT TO SENATE BILL 3111
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2 | AMENDMENT NO. ______. Amend Senate Bill 3111 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. The State Employees Group Insurance Act of 1971 | ||||||
5 | is amended by adding Section 6.16 as follows:
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6 | (5 ILCS 375/6.16 new) | ||||||
7 | Sec. 6.16. Health benefit election for Tier I employees and | ||||||
8 | Tier I retirees. | ||||||
9 | (a) For purposes of this Section: | ||||||
10 | "Eligible Tier I employee" means an individual who makes or | ||||||
11 | is deemed to have made an election under paragraph (1) of | ||||||
12 | subsection (a) of Section 2-110.3 of the Illinois Pension Code. | ||||||
13 | "Eligible Tier I retiree" means an individual who makes or | ||||||
14 | is deemed to have made an election under paragraph (1) of | ||||||
15 | subsection (a-5) of Section 2-110.3 of the Illinois Pension | ||||||
16 | Code. |
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1 | "Program of health benefits" means (i) a health plan, as | ||||||
2 | defined in subsection (o) of Section 3 of this Act, that is | ||||||
3 | designed and contracted for by the Director under this Act or | ||||||
4 | any successor Act or (ii) if administration of that health plan | ||||||
5 | is transferred to a trust established by the State or an | ||||||
6 | independent Board in order to provide health benefits to a | ||||||
7 | class of a persons that includes eligible Tier I retirees, then | ||||||
8 | the plan of health benefits provided through that trust. | ||||||
9 | (b) As adequate and legal consideration for making the | ||||||
10 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
11 | Section 2-110.3 of the Illinois Pension Code, each eligible | ||||||
12 | Tier I employee and each eligible Tier I retiree shall receive | ||||||
13 | a vested and enforceable contractual right to participate in a | ||||||
14 | program of health benefits while he or she qualifies as an | ||||||
15 | annuitant or retired employee. That right also extends to such | ||||||
16 | a person's dependents and survivors if they are eligible under | ||||||
17 | the applicable program of health benefits. | ||||||
18 | (c) Notwithstanding subsection (b), eligible Tier I | ||||||
19 | employees and eligible Tier I retirees may be required to make | ||||||
20 | contributions toward the cost of coverage under a program of | ||||||
21 | health benefits. | ||||||
22 | (d) The vested and enforceable contractual right to a | ||||||
23 | program of health benefits is not offered as, and shall not be | ||||||
24 | considered, a pension benefit under Article XIII, Section 5 of | ||||||
25 | the Illinois Constitution, the Illinois Pension Code, or any | ||||||
26 | subsequent or successor enactment providing pension benefits. |
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1 | (e) Notwithstanding any other provision of this Act, a Tier | ||||||
2 | I employee or Tier I retiree who has made an election under | ||||||
3 | paragraph (2) of subsection (a) or (a-5) of Section 2-110.3 of | ||||||
4 | the Illinois Pension Code shall not be entitled to participate | ||||||
5 | in the program of health benefits as an annuitant or retired | ||||||
6 | employee. | ||||||
7 | Notwithstanding any other provision of this Act, a Tier I | ||||||
8 | employee who is not entitled to participate in the program of | ||||||
9 | health benefits as an annuitant or retired employee due to an | ||||||
10 | election under paragraph (2) of subsection (a) or (a-5) of | ||||||
11 | Section 2-110.3 of the Illinois Pension Code shall not be | ||||||
12 | required to make contributions toward the program of health | ||||||
13 | benefits while he or she is an employee.
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14 | Section 5. The Illinois Pension Code is amended by changing | ||||||
15 | Sections 2-108, 2-119.1, 2-124, and 2-134 and by adding | ||||||
16 | Sections 2-105.1, 2-105.2, 2-107.9, and 2-110.3 as follows:
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17 | (40 ILCS 5/2-105.1 new) | ||||||
18 | Sec. 2-105.1. Tier I employee. "Tier I employee": A | ||||||
19 | participant who first became a participant before January 1, | ||||||
20 | 2011.
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21 | (40 ILCS 5/2-105.2 new) | ||||||
22 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
23 | former Tier I employee who is receiving a retirement annuity.
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1 | (40 ILCS 5/2-107.9 new) | ||||||
2 | Sec. 2-107.9. Future increase in income. "Future increase | ||||||
3 | in income": Any increase in income in any form offered for | ||||||
4 | service as a member under this Article after June 30, 2013 that | ||||||
5 | would qualify as "salary", as defined under Section 2-108, but | ||||||
6 | for the fact that the increase in income was offered to the | ||||||
7 | member on the condition that it not qualify as salary and was | ||||||
8 | accepted by the member subject to that condition.
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9 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
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10 | Sec. 2-108. Salary. "Salary": (1) For members of the | ||||||
11 | General Assembly,
the total compensation paid to the member by | ||||||
12 | the State for one
year of service, including the additional | ||||||
13 | amounts, if any, paid to
the member as an officer pursuant to | ||||||
14 | Section 1 of "An Act
in relation to the compensation and | ||||||
15 | emoluments of the members of the
General Assembly", approved | ||||||
16 | December 6, 1907, as now or hereafter
amended.
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17 | (2) For the State executive officers specified
in Section | ||||||
18 | 2-105, the total compensation paid to the member for one year
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19 | of service.
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20 | (3) For members of the System who are participants under | ||||||
21 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
22 | of the House of
Representatives or Secretary or Assistant | ||||||
23 | Secretary of the Senate, the
total compensation paid to the | ||||||
24 | member for one year of service, but not to
exceed the salary of |
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1 | the highest salaried officer of the General Assembly.
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2 | However, in the event that federal law results in any | ||||||
3 | participant
receiving imputed income based on the value of | ||||||
4 | group term life insurance
provided by the State, such imputed | ||||||
5 | income shall not be included in salary
for the purposes of this | ||||||
6 | Article.
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7 | Notwithstanding any other provision of this Section, | ||||||
8 | "salary" does not include any future increase in income that is | ||||||
9 | offered for service as a member under this Article pursuant to | ||||||
10 | the requirements of subsection (c) of Section 2-110.3 and | ||||||
11 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
12 | active service, who has made an election under paragraph (2) of | ||||||
13 | subsection (a) or (a-5) of Section Section 2-110.3. | ||||||
14 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
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15 | (40 ILCS 5/2-110.3 new) | ||||||
16 | Sec. 2-110.3. Election by Tier I employees and Tier I | ||||||
17 | retirees. | ||||||
18 | (a) Each Tier I employee shall make an irrevocable election | ||||||
19 | either: | ||||||
20 | (1) to agree to the following: | ||||||
21 | (i) to have the amount of the automatic annual | ||||||
22 | increases in his or her retirement annuity that are | ||||||
23 | otherwise provided for in this Article calculated, | ||||||
24 | instead, as provided in subsection (a-1) of Section | ||||||
25 | 2-119.1; and |
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1 | (ii) to have his or her eligibility for automatic | ||||||
2 | annual increases in retirement annuity postponed as | ||||||
3 | provided in subsection (a-2) of Section 2-119.1 and to | ||||||
4 | relinquish the additional increases provided in | ||||||
5 | subsection (b) of Section 2-119.1; or | ||||||
6 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
7 | paragraph (1) of this subsection. | ||||||
8 | The election required under this subsection (a) shall be | ||||||
9 | made by each Tier I employee no earlier than January 1, 2013 | ||||||
10 | and no later than May 31, 2013, except that: | ||||||
11 | (i) a person who becomes a Tier I employee under this | ||||||
12 | Article after January 1, 2013 must make the election under | ||||||
13 | this subsection (a) within 60 days after becoming a Tier I | ||||||
14 | employee; | ||||||
15 | (ii) a person who returns to active service as a Tier I | ||||||
16 | employee under this Article after January 1, 2013 and has | ||||||
17 | not yet made an election under this Section must make the | ||||||
18 | election under this subsection (a) within 60 days after | ||||||
19 | returning to active service as a Tier I employee; and | ||||||
20 | (iii) a person who made the election under subsection | ||||||
21 | (a-5) as a Tier I retiree remains bound by that election | ||||||
22 | and shall not make a later election under this subsection | ||||||
23 | (a). | ||||||
24 | If a Tier I employee fails for any reason to make a | ||||||
25 | required election under this subsection within the time | ||||||
26 | specified, then the employee shall be deemed to have made the |
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1 | election under paragraph (2) of this subsection. | ||||||
2 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
3 | election either: | ||||||
4 | (1) to agree to the following: | ||||||
5 | (i) to have the amount of the automatic annual | ||||||
6 | increases in his or her retirement annuity that are | ||||||
7 | otherwise provided for in this Article calculated, | ||||||
8 | instead, as provided in subsection (a-1) of Section | ||||||
9 | 2-119.1; and | ||||||
10 | (ii) to have his or her eligibility for automatic | ||||||
11 | annual increases in retirement annuity postponed as | ||||||
12 | provided in subsection (a-2) of Section 2-119.1 and to | ||||||
13 | relinquish the additional increases provided in | ||||||
14 | subsection (b) of Section 2-119.1; or | ||||||
15 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
16 | paragraph (1) of this subsection. | ||||||
17 | The election required under this subsection (a-5) shall be | ||||||
18 | made by each Tier I retiree no earlier than January 1, 2013 and | ||||||
19 | no later than May 31, 2013, except that: | ||||||
20 | (i) a person who becomes a Tier I retiree under this | ||||||
21 | Article on or after January 1, 2013 must make the election | ||||||
22 | under this subsection (a-5) within 60 days after becoming a | ||||||
23 | Tier I retiree; and | ||||||
24 | (ii) a person who made the election under subsection | ||||||
25 | (a) as a Tier I employee remains bound by that election and | ||||||
26 | shall not make a later election under this subsection |
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1 | (a-5). | ||||||
2 | If a Tier I retiree fails for any reason to make a required | ||||||
3 | election under this subsection within the time specified, then | ||||||
4 | the Tier I retiree shall be deemed to have made the election | ||||||
5 | under paragraph (2) of this subsection. | ||||||
6 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
7 | made or deemed to be made before June 1, 2013 shall take effect | ||||||
8 | on July 1, 2013. Elections that are made or deemed to be made | ||||||
9 | on or after June 1, 2013 shall take effect on the first day of | ||||||
10 | the month following the month in which the election is made or | ||||||
11 | deemed to be made. | ||||||
12 | (b) As adequate and legal consideration provided under this | ||||||
13 | amendatory Act of the 97th General Assembly for making the | ||||||
14 | election under paragraph (1) of subsection (a) of this Section, | ||||||
15 | any future increases in income offered for service as a member | ||||||
16 | under this Article to a Tier I employee who has made the | ||||||
17 | election under paragraph (1) of subsection (a) of this Section | ||||||
18 | shall be offered expressly and irrevocably as constituting | ||||||
19 | salary under Section 2-108. | ||||||
20 | As adequate and legal consideration provided under this | ||||||
21 | amendatory Act of the 97th General Assembly for making the | ||||||
22 | election under paragraph (1) of subsection (a-5) of this | ||||||
23 | Section, any future increases in income offered for service as | ||||||
24 | a member under this Article to a Tier I retiree who returns to | ||||||
25 | active service after having made the election under paragraph | ||||||
26 | (1) of subsection (a-5) of this Section shall be offered |
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1 | expressly and irrevocably as constituting salary under Section | ||||||
2 | 2-108. | ||||||
3 | (c) A Tier I employee who makes the election under | ||||||
4 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
5 | subject to items (i) and (ii) set forth in paragraph (1) of | ||||||
6 | subsection (a) of this Section. However, any future increases | ||||||
7 | in income offered for service as a member under this Article to | ||||||
8 | a Tier I employee who has made the election under paragraph (2) | ||||||
9 | of subsection (a) of this Section shall be offered expressly | ||||||
10 | and irrevocably as not constituting salary under Section 2-108, | ||||||
11 | and the member may not accept any future increase in income | ||||||
12 | that is offered in violation of this requirement. | ||||||
13 | A Tier I retiree who makes the election under paragraph (2) | ||||||
14 | of subsection (a-5) of this Section shall not be subject to | ||||||
15 | items (i) and (ii) set forth in paragraph (1) of subsection | ||||||
16 | (a-5) of this Section. However, any future increases in income | ||||||
17 | offered for service as a member under this Article to a Tier I | ||||||
18 | retiree who returns to active service and has made the election | ||||||
19 | under paragraph (2) of subsection (a-5) of this Section shall | ||||||
20 | be offered expressly and irrevocably as not constituting salary | ||||||
21 | under Section 2-108, and the member may not accept any future | ||||||
22 | increase in income that is offered in violation of this | ||||||
23 | requirement. | ||||||
24 | (d) The System shall make a good faith effort to contact | ||||||
25 | each Tier I employee and Tier I retiree subject to this | ||||||
26 | Section. The System shall mail information describing the |
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1 | required election to each Tier I employee and Tier I retiree by | ||||||
2 | United States Postal Service mail to his or her last known | ||||||
3 | address on file with the System. If the Tier I employee or Tier | ||||||
4 | I retiree is not responsive to other means of contact, it is | ||||||
5 | sufficient for the System to publish the details of any | ||||||
6 | required elections on its website or to publish those details | ||||||
7 | in a regularly published newsletter or other existing public | ||||||
8 | forum. | ||||||
9 | Tier I employees and Tier I retirees who are subject to | ||||||
10 | this Section shall be provided with an election packet | ||||||
11 | containing information regarding their options, as well as the | ||||||
12 | forms necessary to make the required election. Upon request, | ||||||
13 | the System shall offer Tier I employees and Tier I retirees an | ||||||
14 | opportunity to receive information from the System before | ||||||
15 | making the required election. The information may be provided | ||||||
16 | through video materials, group presentations, individual | ||||||
17 | consultation with a member or authorized representative of the | ||||||
18 | System in person or by telephone or other electronic means, or | ||||||
19 | any combination of those methods. The System shall not provide | ||||||
20 | advice or counseling with respect to which election a Tier I | ||||||
21 | employee or Tier I retiree should make or specific to the legal | ||||||
22 | or tax circumstances of or consequences to the Tier I employee | ||||||
23 | or Tier I retiree. | ||||||
24 | The System shall inform Tier I employees and Tier I | ||||||
25 | retirees in the election packet required under this subsection | ||||||
26 | that the Tier I employee or Tier I retiree may also wish to |
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1 | obtain information and counsel relating to the election | ||||||
2 | required under this Section from any other available source, | ||||||
3 | including but not limited to labor organizations and private | ||||||
4 | counsel. | ||||||
5 | The System shall coordinate with the Illinois Department of | ||||||
6 | Central Management Services and each other retirement system | ||||||
7 | administering an election in accordance with this amendatory | ||||||
8 | Act of the 97th General Assembly to provide information | ||||||
9 | concerning the impact of the election under this Section. | ||||||
10 | In no event shall the System, its staff, or the Board be | ||||||
11 | held liable for any information given to a member, beneficiary, | ||||||
12 | or annuitant regarding the elections under this Section. | ||||||
13 | (e) Notwithstanding any other provision of law, any future | ||||||
14 | increases in income offered for service as a member must be | ||||||
15 | offered expressly and irrevocably as not constituting "salary" | ||||||
16 | under Section 2-108 to any Tier I employee, or Tier I retiree | ||||||
17 | returning to active service, who has made an election under | ||||||
18 | paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A | ||||||
19 | Tier I employee, or Tier I retiree returning to active service, | ||||||
20 | who has made an election under paragraph (2) or subsection (a) | ||||||
21 | or (a-5) of Section 2-110.3 shall not accept any future | ||||||
22 | increase in income that is offered for service as a member | ||||||
23 | under this Article in violation of the requirement set forth in | ||||||
24 | this subsection. | ||||||
25 | (f) A member's election under this Section is not a | ||||||
26 | prohibited election under subdivision (j)(1) of Section 1-119 |
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1 | of this Code. | ||||||
2 | (g) No provision of this Section shall be interpreted in a | ||||||
3 | way that would cause the System to cease to be a qualified plan | ||||||
4 | under section 461 (a) of the Internal Revenue Code of 1986.
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5 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
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6 | Sec. 2-119.1. Automatic increase in retirement annuity.
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7 | (a) Except as provided in subsections (a-1) and (a-2), a A | ||||||
8 | participant who retires after June 30, 1967, and who has not
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9 | received an initial increase under this Section before the | ||||||
10 | effective date
of this amendatory Act of 1991, shall, in | ||||||
11 | January or July next following
the first anniversary of | ||||||
12 | retirement, whichever occurs first, and in the same
month of | ||||||
13 | each year thereafter, but in no event prior to age 60, have the | ||||||
14 | amount
of the originally granted retirement annuity increased | ||||||
15 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
16 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
17 | thereafter, 3%. Annuitants who have received an initial
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18 | increase under this subsection prior to the effective date of | ||||||
19 | this amendatory
Act of 1991 shall continue to receive their | ||||||
20 | annual increases in the same month
as the initial increase.
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21 | (a-1) Notwithstanding any other provision of this Article, | ||||||
22 | for a Tier I employee or Tier I retiree who made the election | ||||||
23 | under paragraph (1) of subsection (a) or (a-5) of Section | ||||||
24 | 2-110.3, the amount of each automatic annual increase in | ||||||
25 | retirement annuity occurring on or after the effective date of |
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1 | that election shall be 3% or one-half of the annual unadjusted | ||||||
2 | percentage increase, if any, in the Consumer Price Index-U for | ||||||
3 | the 12 months ending with the preceding September, whichever is | ||||||
4 | less, of the originally granted retirement annuity. For the | ||||||
5 | purposes of this Section, "Consumer Price Index-U" means
the | ||||||
6 | index published by the Bureau of Labor Statistics of the United | ||||||
7 | States
Department of Labor that measures the average change in | ||||||
8 | prices of goods and
services purchased by all urban consumers, | ||||||
9 | United States city average, all
items, 1982-84 = 100. | ||||||
10 | (a-2) For a Tier I employee or Tier I retiree who made the | ||||||
11 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
12 | Section 2-110.3, the monthly retirement annuity shall first be | ||||||
13 | subject to annual increases on the January 1 occurring on or | ||||||
14 | next after the attainment of age 67 or the January 1 occurring | ||||||
15 | on or next after the fifth anniversary of the annuity start | ||||||
16 | date, whichever occurs earlier. If on the effective date of the | ||||||
17 | election under paragraph (1) of subsection (a-5) of Section | ||||||
18 | 2-110.3 a Tier I retiree has already received an annual | ||||||
19 | increase under this Section but does not yet meet the new | ||||||
20 | eligibility requirements of this subsection, the annual | ||||||
21 | increases already received shall continue in force, but no | ||||||
22 | additional annual increase shall be granted until the Tier I | ||||||
23 | retiree meets the new eligibility requirements. | ||||||
24 | (b) Beginning January 1, 1990, for eligible participants | ||||||
25 | who remain
in service after attaining 20 years of creditable | ||||||
26 | service, the 3% increases
provided under subsection (a) shall |
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1 | begin to accrue on the January 1 next
following the date upon | ||||||
2 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
3 | years of creditable service, whichever occurs later, and shall
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4 | continue to accrue while the participant remains in service; | ||||||
5 | such increases
shall become payable on January 1 or July 1, | ||||||
6 | whichever occurs first, next
following the first anniversary of | ||||||
7 | retirement. For any person who has service
credit in the System | ||||||
8 | for the entire period from January 15, 1969 through
December | ||||||
9 | 31, 1992, regardless of the date of termination of service, the
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10 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
11 | be deemed to
mean age 50.
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12 | This subsection (b) does not apply to any person who first | ||||||
13 | becomes a
member of the System after August 8, 2003 ( the | ||||||
14 | effective date of Public Act 93-494) or (ii) has made the | ||||||
15 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
16 | Section 2-110.3; except that if on the effective date of the | ||||||
17 | election under paragraph (1) of subsection (a-5) of Section | ||||||
18 | 2-110.3 a Tier I retiree has already received a retirement | ||||||
19 | annuity based on any annual increases under this subsection, | ||||||
20 | those annual increases under this subsection shall continue in | ||||||
21 | force this amendatory Act of
the 93rd General Assembly .
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22 | (b-5) Notwithstanding any other provision of this Article, | ||||||
23 | a participant who first becomes a participant on or after | ||||||
24 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
25 | shall, in January or July next following the first anniversary | ||||||
26 | of retirement, whichever occurs first, and in the same month of |
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1 | each year thereafter, but in no event prior to age 67, have the | ||||||
2 | amount of the retirement annuity then being paid increased by | ||||||
3 | 3% or the annual unadjusted percentage increase in the Consumer | ||||||
4 | Price Index for All Urban Consumers as determined by the Public | ||||||
5 | Pension Division of the Department of Insurance under | ||||||
6 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
7 | (c) The foregoing provisions relating to automatic | ||||||
8 | increases are not
applicable to a participant who retires | ||||||
9 | before having made contributions
(at the rate prescribed in | ||||||
10 | Section 2-126) for automatic increases for less
than the | ||||||
11 | equivalent of one full year. However, in order to be eligible | ||||||
12 | for
the automatic increases, such a participant may make | ||||||
13 | arrangements to pay
to the system the amount required to bring | ||||||
14 | the total contributions for the
automatic increase to the | ||||||
15 | equivalent of one year's contributions based upon
his or her | ||||||
16 | last salary.
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17 | (d) A participant who terminated service prior to July 1, | ||||||
18 | 1967, with at
least 14 years of service is entitled to an | ||||||
19 | increase in retirement annuity
beginning January, 1976, and to | ||||||
20 | additional increases in January of each
year thereafter.
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21 | The initial increase shall be 1 1/2% of the originally | ||||||
22 | granted retirement
annuity multiplied by the number of full | ||||||
23 | years that the annuitant was in
receipt of such annuity prior | ||||||
24 | to January 1, 1972, plus 2% of the originally
granted | ||||||
25 | retirement annuity for each year after that date. The | ||||||
26 | subsequent
annual increases shall be at the rate of 2% of the |
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1 | originally granted
retirement annuity for each year through | ||||||
2 | 1979 and at the rate of 3% for
1980 and thereafter.
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3 | (e) Beginning January 1, 1990, all automatic annual | ||||||
4 | increases payable
under this Section shall be calculated as a | ||||||
5 | percentage of the total annuity
payable at the time of the | ||||||
6 | increase, including previous increases granted
under this | ||||||
7 | Article.
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8 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
9 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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10 | Sec. 2-124. Contributions by State.
| ||||||
11 | (a) Except as otherwise provided in this Section, the The | ||||||
12 | State shall make contributions to the System by
appropriations | ||||||
13 | of amounts which, together with the contributions of
| ||||||
14 | participants, interest earned on investments, and other income
| ||||||
15 | will meet the cost of maintaining and administering the System | ||||||
16 | on a 90%
funded basis in accordance with actuarial | ||||||
17 | recommendations.
| ||||||
18 | (b) The Board shall determine the amount of State
| ||||||
19 | contributions required for each fiscal year on the basis of the
| ||||||
20 | actuarial tables and other assumptions adopted by the Board and | ||||||
21 | the
prescribed rate of interest, using the formula in | ||||||
22 | subsection (c).
| ||||||
23 | (c) Except as otherwise provided in this Section, for For | ||||||
24 | State fiscal years 2012 through 2045, the minimum contribution
| ||||||
25 | to the System to be made by the State for each fiscal year |
| |||||||
| |||||||
1 | shall be an amount
determined by the System to be sufficient to | ||||||
2 | bring the total assets of the
System up to 90% of the total | ||||||
3 | actuarial liabilities of the System by the end of
State fiscal | ||||||
4 | year 2045. In making these determinations, the required State
| ||||||
5 | contribution shall be calculated each year as a level | ||||||
6 | percentage of payroll
over the years remaining to and including | ||||||
7 | fiscal year 2045 and shall be
determined under the projected | ||||||
8 | unit credit actuarial cost method.
| ||||||
9 | For State fiscal years 1996 through 2005, the State | ||||||
10 | contribution to
the System, as a percentage of the applicable | ||||||
11 | employee payroll, shall be
increased in equal annual increments | ||||||
12 | so that by State fiscal year 2011, the
State is contributing at | ||||||
13 | the rate required under this Section.
| ||||||
14 | Notwithstanding any other provision of this Article, the | ||||||
15 | total required State
contribution for State fiscal year 2006 is | ||||||
16 | $4,157,000.
| ||||||
17 | Notwithstanding any other provision of this Article, the | ||||||
18 | total required State
contribution for State fiscal year 2007 is | ||||||
19 | $5,220,300.
| ||||||
20 | For each of State fiscal years 2008 through 2009, the State | ||||||
21 | contribution to
the System, as a percentage of the applicable | ||||||
22 | employee payroll, shall be
increased in equal annual increments | ||||||
23 | from the required State contribution for State fiscal year | ||||||
24 | 2007, so that by State fiscal year 2011, the
State is | ||||||
25 | contributing at the rate otherwise required under this Section.
| ||||||
26 | Notwithstanding any other provision of this Article, the |
| |||||||
| |||||||
1 | total required State contribution for State fiscal year 2010 is | ||||||
2 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
3 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
4 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
5 | expenses determined by the System's share of total bond | ||||||
6 | proceeds, (ii) any amounts received from the General Revenue | ||||||
7 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
8 | proceeds due to the issuance of discounted bonds, if | ||||||
9 | applicable. | ||||||
10 | Notwithstanding any other provision of this Article, the
| ||||||
11 | total required State contribution for State fiscal year 2011 is
| ||||||
12 | the amount recertified by the System on or before April 1, 2011 | ||||||
13 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
14 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
15 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
16 | bond sale
expenses determined by the System's share of total | ||||||
17 | bond
proceeds, (ii) any amounts received from the General | ||||||
18 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
19 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
20 | applicable. | ||||||
21 | Except as otherwise provided in this Section, beginning | ||||||
22 | Beginning in State fiscal year 2046, the minimum State | ||||||
23 | contribution for
each fiscal year shall be the amount needed to | ||||||
24 | maintain the total assets of
the System at 90% of the total | ||||||
25 | actuarial liabilities of the System.
| ||||||
26 | Amounts received by the System pursuant to Section 25 of |
| |||||||
| |||||||
1 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
2 | Finance Act in any fiscal year do not reduce and do not | ||||||
3 | constitute payment of any portion of the minimum State | ||||||
4 | contribution required under this Article in that fiscal year. | ||||||
5 | Such amounts shall not reduce, and shall not be included in the | ||||||
6 | calculation of, the required State contributions under this | ||||||
7 | Article in any future year until the System has reached a | ||||||
8 | funding ratio of at least 90%. A reference in this Article to | ||||||
9 | the "required State contribution" or any substantially similar | ||||||
10 | term does not include or apply to any amounts payable to the | ||||||
11 | System under Section 25 of the Budget Stabilization Act.
| ||||||
12 | Notwithstanding any other provision of this Section, the | ||||||
13 | required State
contribution for State fiscal year 2005 and for | ||||||
14 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
15 | under this Section and
certified under Section 2-134, shall not | ||||||
16 | exceed an amount equal to (i) the
amount of the required State | ||||||
17 | contribution that would have been calculated under
this Section | ||||||
18 | for that fiscal year if the System had not received any | ||||||
19 | payments
under subsection (d) of Section 7.2 of the General | ||||||
20 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
21 | total debt service payments for that fiscal
year on the bonds | ||||||
22 | issued in fiscal year 2003 for the purposes of that Section | ||||||
23 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
24 | the same as the System's portion of
the total moneys | ||||||
25 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
26 | Obligation Bond Act. In determining this maximum for State |
| |||||||
| |||||||
1 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
2 | in item (i) shall be increased, as a percentage of the | ||||||
3 | applicable employee payroll, in equal increments calculated | ||||||
4 | from the sum of the required State contribution for State | ||||||
5 | fiscal year 2007 plus the applicable portion of the State's | ||||||
6 | total debt service payments for fiscal year 2007 on the bonds | ||||||
7 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
8 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
9 | 2011, the
State is contributing at the rate otherwise required | ||||||
10 | under this Section.
| ||||||
11 | (c-1) If at least 50% of Tier I employees making an | ||||||
12 | election under Section 2-110.3 before June 1, 2013 choose the | ||||||
13 | option under paragraph (1) of subsection (a) of that Section, | ||||||
14 | then: | ||||||
15 | (1) In lieu of the State contributions required under | ||||||
16 | subsection (c), for State fiscal years 2014 through 2043 | ||||||
17 | the minimum contribution
to the System to be made by the | ||||||
18 | State for each fiscal year shall be an amount
determined by | ||||||
19 | the System to be equal to the sum of (1) the State's | ||||||
20 | portion of the projected normal cost for that fiscal year, | ||||||
21 | plus (2) an amount sufficient to bring the total assets of | ||||||
22 | the
System up to 100% of the total actuarial liabilities of | ||||||
23 | the System by the end of
State fiscal year 2043. In making | ||||||
24 | these determinations, the required State
contribution | ||||||
25 | shall be calculated each year as a level percentage of | ||||||
26 | payroll
over the years remaining to and including fiscal |
| |||||||
| |||||||
1 | year 2043 and shall be
determined under the projected unit | ||||||
2 | credit actuarial cost method. | ||||||
3 | (2) Beginning in State fiscal year 2044, the minimum | ||||||
4 | State contribution for each fiscal year shall be the amount | ||||||
5 | needed to maintain the total assets of the System at 100% | ||||||
6 | of the total actuarial liabilities of the System. | ||||||
7 | (c-2) If less than 50% of Tier I employees making an | ||||||
8 | election under Section 2-110.3 before June 1, 2013 choose the | ||||||
9 | option under paragraph (1) of subsection (a) of that Section, | ||||||
10 | then: | ||||||
11 | (1) Instead of the annual required contribution | ||||||
12 | otherwise specified in subsection (c-1) of this Section, | ||||||
13 | the annual required contribution to the System to be made | ||||||
14 | by the State shall be determined under subsection (c) of | ||||||
15 | this Section. | ||||||
16 | (2) As soon as possible after June 1, 2013, the Board | ||||||
17 | shall recertify the annual required contribution by the | ||||||
18 | State for State fiscal year 2014. | ||||||
19 | (d) For purposes of determining the required State | ||||||
20 | contribution to the System, the value of the System's assets | ||||||
21 | shall be equal to the actuarial value of the System's assets, | ||||||
22 | which shall be calculated as follows: | ||||||
23 | As of June 30, 2008, the actuarial value of the System's | ||||||
24 | assets shall be equal to the market value of the assets as of | ||||||
25 | that date. In determining the actuarial value of the System's | ||||||
26 | assets for fiscal years after June 30, 2008, any actuarial |
| |||||||
| |||||||
1 | gains or losses from investment return incurred in a fiscal | ||||||
2 | year shall be recognized in equal annual amounts over the | ||||||
3 | 5-year period following that fiscal year. | ||||||
4 | (e) For purposes of determining the required State | ||||||
5 | contribution to the system for a particular year, the actuarial | ||||||
6 | value of assets shall be assumed to earn a rate of return equal | ||||||
7 | to the system's actuarially assumed rate of return. | ||||||
8 | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | ||||||
9 | 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff. | ||||||
10 | 3-18-11; revised 4-6-11.)
| ||||||
11 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
12 | Sec. 2-134. To certify required State contributions and | ||||||
13 | submit vouchers.
| ||||||
14 | (a) The Board shall certify to the Governor on or before | ||||||
15 | December 15 of each
year until December 15, 2011 the amount of | ||||||
16 | the required State contribution to the System for the next
| ||||||
17 | fiscal year and shall specifically identify the System's | ||||||
18 | projected State normal cost for that fiscal year . The | ||||||
19 | certification shall include a copy of the actuarial
| ||||||
20 | recommendations upon which it is based and shall specifically | ||||||
21 | identify the System's projected State normal cost for that | ||||||
22 | fiscal year .
| ||||||
23 | On or before November 1 of each year, beginning November 1, | ||||||
24 | 2012, the Board shall submit to the State Actuary, the | ||||||
25 | Governor, and the General Assembly a proposed certification of |
| |||||||
| |||||||
1 | the amount of the required State contribution to the System for | ||||||
2 | the next fiscal year, along with all of the actuarial | ||||||
3 | assumptions, calculations, and data upon which that proposed | ||||||
4 | certification is based. On or before January 1 of each year | ||||||
5 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
6 | preliminary report concerning the proposed certification and | ||||||
7 | identifying, if necessary, recommended changes in actuarial | ||||||
8 | assumptions that the Board must consider before finalizing its | ||||||
9 | certification of the required State contributions. On or before | ||||||
10 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
11 | shall certify to the Governor and the General Assembly the | ||||||
12 | amount of the required State contribution for the next fiscal | ||||||
13 | year. The Board's certification must note any deviations from | ||||||
14 | the State Actuary's recommended changes, the reason or reasons | ||||||
15 | for not following the State Actuary's recommended changes, and | ||||||
16 | the fiscal impact of not following the State Actuary's | ||||||
17 | recommended changes on the required State contribution. | ||||||
18 | On or before May 1, 2004, the Board shall recalculate and | ||||||
19 | recertify to
the Governor the amount of the required State | ||||||
20 | contribution to the System for
State fiscal year 2005, taking | ||||||
21 | into account the amounts appropriated to and
received by the | ||||||
22 | System under subsection (d) of Section 7.2 of the General
| ||||||
23 | Obligation Bond Act.
| ||||||
24 | On or before July 1, 2005, the Board shall recalculate and | ||||||
25 | recertify
to the Governor the amount of the required State
| ||||||
26 | contribution to the System for State fiscal year 2006, taking |
| |||||||
| |||||||
1 | into account the changes in required State contributions made | ||||||
2 | by this amendatory Act of the 94th General Assembly.
| ||||||
3 | On or before April 1, 2011, the Board shall recalculate and | ||||||
4 | recertify to the Governor the amount of the required State | ||||||
5 | contribution to the System for State fiscal year 2011, applying | ||||||
6 | the changes made by Public Act 96-889 to the System's assets | ||||||
7 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
8 | was approved on that date. | ||||||
9 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
10 | possible after the
15th day of each month the Board shall | ||||||
11 | submit vouchers for payment of State
contributions to the | ||||||
12 | System, in a total monthly amount of one-twelfth of the
| ||||||
13 | required annual State contribution certified under subsection | ||||||
14 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
15 | General Assembly through June 30, 2004, the Board shall not
| ||||||
16 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
17 | of the
fiscal year 2004 certified contribution amount | ||||||
18 | determined
under this Section after taking into consideration | ||||||
19 | the transfer to the
System under subsection (d) of Section | ||||||
20 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
21 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
22 | funds appropriated to the System for that fiscal year. If in | ||||||
23 | any month
the amount remaining unexpended from all other | ||||||
24 | appropriations to the System for
the applicable fiscal year | ||||||
25 | (including the appropriations to the System under
Section 8.12 | ||||||
26 | of the State Finance Act and Section 1 of the State Pension |
| |||||||
| |||||||
1 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
2 | lawfully vouchered under
this Section, the difference shall be | ||||||
3 | paid from the General Revenue Fund under
the continuing | ||||||
4 | appropriation authority provided in Section 1.1 of the State
| ||||||
5 | Pension Funds Continuing Appropriation Act.
| ||||||
6 | (c) The full amount of any annual appropriation for the | ||||||
7 | System for
State fiscal year 1995 shall be transferred and made | ||||||
8 | available to the System
at the beginning of that fiscal year at | ||||||
9 | the request of the Board.
Any excess funds remaining at the end | ||||||
10 | of any fiscal year from appropriations
shall be retained by the | ||||||
11 | System as a general reserve to meet the System's
accrued | ||||||
12 | liabilities.
| ||||||
13 | (Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11; | ||||||
14 | 96-1511, eff. 1-27-11.)
| ||||||
15 | Section 105. Inseverability. The provisions of Section | ||||||
16 | 5 of this Act are mutually dependent and inseverable. If any of | ||||||
17 | those provisions is held invalid other than as applied to a | ||||||
18 | particular person or circumstance, then all of those provisions | ||||||
19 | are invalid.
| ||||||
20 | Section 999. Effective date. This Act takes effect upon | ||||||
21 | becoming law.".
|