SB1643 103RD GENERAL ASSEMBLY

LRB103 27808 RPS 54186 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1643

Introduced 2/8/2023, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/15-134.1	from Ch. 108 1/2, par. 15-134.1
40 ILCS 5/15-175	from Ch. 108 1/2, par. 15-175
40 ILCS 5/15-181	from Ch. 108 1/2, par. 15-181
40 ILCS 5/15-186.1	from Ch. 108 1/2, par. 15-186.1
40 ILCS 5/15-198

Amends the State Universities Article of the Illinois Pension Code. Provides that in computing service: one day of service in a calendar month shall constitute a full month of service. For a participant who teaches a course or courses, a participant is deemed to be in service until the date on which the employer requires grades to be submitted for that course or courses, and that date shall be deemed to constitute a day of service. Provides that the changes made by the amendatory Act are retroactive to 2 years before the effective date of the amendatory Act. Provides that a participant may request a recalculation of his or her service based on the changes made by the amendatory Act. Requires an employer to annually provide to each of its participating employees a statement of the amount of service the employer reported to the System for that participating employee during the preceding academic year. Provides that if a person disputes the amount of any benefit payment, the amount of service credit the benefit was based on, the formula used to calculate the benefit, the calculation of the benefit, or the information provided to the System by the employer, he or she may, within 90 days after the commencement of the benefit, apply to the System in writing for a recalculation. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Sections 15-134.1, 15-175, 15-181, 15-186.1, and 15-198 as follows:

(40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)

Sec. 15-134.1. Service calculation and adjustment.

(a) In computing service, the following schedule shall govern: one month of service means a calendar month during which a participant (i) qualifies as an employee under Section 15-107 for at least 15 or more days, and (ii) receives any earnings as an employee; 8 or more months of service during an academic year shall constitute a year of service; 6 or more but less than 8 months of service during an academic year shall constitute 3/4 of a year of service; 3 or more but less than 6 months of service during an academic year shall constitute 1/2 of a year of service; and one or more but less than 3 months of service during an academic year shall constitute 1/4 of a year of service. No more than one year of service may be granted per academic year, regardless of the number of hours or percentage of time worked.

(a-5) Notwithstanding subsection (a), for the purposes of computing service, one day of service in a calendar month shall constitute a full month of service. For a participant who teaches a course or courses, a participant is deemed to be in service until the date on which the employer requires grades for that course or courses to be submitted, and that date shall be deemed to constitute a day of service. No more than one year of service may be granted per academic year, regardless of the number of hours or percentage of time worked.

(b) In calculating a retirement annuity, if a participant has been employed at 1/2 time or less for 3 or more years after September 1, 1959, service shall be granted for such employment in excess of 3 years, in the proportion that the percentage of time employed for each such year of employment bears to the average annual percentage of time employed during the period on which the final rate of earnings is based. This adjustment shall not be made, however, in determining the eligibility for a retirement annuity, disability benefits, additional death benefits, or survivors' insurance. The percentage of time employed shall be as reported by the employer.

(c) The changes made by this amendatory Act of the 103rd General Assembly apply retroactively to 2 years before the effective date of this amendatory Act of the 103rd General Assembly. A participant may request that the System recalculate his or her service based on the changes made by this amendatory Act of the 103rd General Assembly.

(Source: P.A. 87-8.)

(40 ILCS 5/15-175) (from Ch. 108 1/2, par. 15-175)

Sec. 15-175. To provide statements.

To make available to the participants and annuitants a financial statement including a summary of the report of the certified public accountant; and to submit an individual statement specifying the accumulations to the credit, as of the latest date practicable, of any participant so requesting; and to annually provide the formula for calculating pension benefits to any employee who is not a full-time employee.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)

Sec. 15-181. Duties of employers.

(a) Each employer, in preparing payroll vouchers for participating employees, shall indicate, in addition to other information: (1) the amount of employee contributions and survivors insurance contributions required under Section 15-157, (2) the gross earnings payable to each employee, and (3) the total of all contributions required under Section 15-157.

(b) Each employer, in drawing warrants or checks against trust or federal funds for items of salary on payroll vouchers certified by employers, shall draw such warrants or checks to participating employees for the amount of cash salary or wages specified for the period, and shall draw a warrant or check to this system for the total of the contributions required under Section 15-157. The warrant or check drawn to this system, together with the additional copy of the payroll supplied by the employer, shall be transmitted immediately to the board.

(c) The City of Champaign and the City of Urbana, as employers of persons who participate in this System pursuant to subsection (h) of Section 15-107, shall each collect and transmit to the System from each payroll the employee contributions required under Section 15-157, together with such payroll documentation as the Board may require, at the time that the payroll is paid.

(d) Each employer shall annually provide to its participating employees a statement of the amount of service the employer reported to the System for that participating employee during the preceding academic year.

(Source: P.A. 90-576, eff. 3-31-98; 91-887, eff. 7-6-00.)

(40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)

Sec. 15-186.1. Mistake in benefit calculation and overpayment recovery.

(a) Mistake in benefit calculation. If the System mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the effective rate from the date the unpaid amounts accrued to the date of payment.

If the benefit was mistakenly set too high, the System may recover the amount overpaid from the recipient thereof, plus interest at the effective rate from the date of overpayment to the date of recovery, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied or information omitted by the affected member or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the System the excess amounts received in error.

(b) Overpayment recovery. Regardless of the date an overpayment is discovered, if the System determines that the overpayment has occurred for any reason other than those specified in subsection (a) of this Section, the System may recover the overpayment from the recipient thereof or the recipient's estate, plus interest at the effective rate from the date of the overpayment to the date of recovery, either directly or by deducting such amount from the remaining benefits payable to the recipient or the recipient's estate, or by any other means available to the System. This subsection (b) applies to overpayments occurring before, on, or after the effective date of this amendatory Act of the 102nd General Assembly.

If a person disputes the amount of any benefit payment, the amount of service credit the benefit was based on, the formula used to calculate the benefit, the calculation of the benefit, or the information provided to the System by the employer, he or she may, within 90 days after the commencement of the benefit, apply to the System in writing for a recalculation.

(Source: P.A. 102-746, eff. 5-6-22.)

(40 ILCS 5/15-198)

Sec. 15-198. Application and expiration of new benefit increases.

(a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 100-23, Public Act 100-587, Public Act 100-769, Public Act 101-10, Public Act 101-610, Public Act 102-16, or this amendatory Act of the 103rd General Assembly or this amendatory Act of the 102nd General Assembly.

(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.

(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.

Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.

(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.

(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.

(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)

Section 99. Effective date. This Act takes effect upon becoming law.