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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing
| ||||||||||||||||||||||||||||
5 | Sections 16-133 and 16-158 as follows:
| ||||||||||||||||||||||||||||
6 | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| ||||||||||||||||||||||||||||
7 | Sec. 16-133. Retirement annuity; amount.
| ||||||||||||||||||||||||||||
8 | (a) The amount of the retirement annuity shall be the | ||||||||||||||||||||||||||||
9 | larger of the
amounts determined under paragraphs (A) and (B) | ||||||||||||||||||||||||||||
10 | below:
| ||||||||||||||||||||||||||||
11 | (A) An amount consisting of the sum of the following:
| ||||||||||||||||||||||||||||
12 | (1) An amount that can be provided on an | ||||||||||||||||||||||||||||
13 | actuarially equivalent basis
by the member's | ||||||||||||||||||||||||||||
14 | accumulated contributions at the time of retirement; | ||||||||||||||||||||||||||||
15 | and
| ||||||||||||||||||||||||||||
16 | (2) The sum of (i) the amount that can be provided | ||||||||||||||||||||||||||||
17 | on an actuarially
equivalent basis by the member's | ||||||||||||||||||||||||||||
18 | accumulated contributions representing
service prior | ||||||||||||||||||||||||||||
19 | to July 1, 1947, and (ii) the amount that can be | ||||||||||||||||||||||||||||
20 | provided on
an actuarially equivalent basis by the | ||||||||||||||||||||||||||||
21 | amount obtained by multiplying 1.4
times the member's | ||||||||||||||||||||||||||||
22 | accumulated contributions covering service subsequent | ||||||||||||||||||||||||||||
23 | to
June 30, 1947; and
| ||||||||||||||||||||||||||||
24 | (3) If there is prior service, 2 times the amount | ||||||||||||||||||||||||||||
25 | that would have been
determined under subparagraph (2) | ||||||||||||||||||||||||||||
26 | of paragraph (A) above on account of
contributions | ||||||||||||||||||||||||||||
27 | which would have been made during the period of prior | ||||||||||||||||||||||||||||
28 | service
creditable to the member had the System been in | ||||||||||||||||||||||||||||
29 | operation and had the
member made contributions at the | ||||||||||||||||||||||||||||
30 | contribution rate in effect prior to
July 1, 1947.
| ||||||||||||||||||||||||||||
31 | (B) An amount consisting of the greater of the | ||||||||||||||||||||||||||||
32 | following:
|
| |||||||
| |||||||
1 | (1) For creditable service earned before July 1, | ||||||
2 | 1998 that has not
been augmented under Section | ||||||
3 | 16-129.1: 1.67% of final average salary for
each of the | ||||||
4 | first 10 years of creditable service, 1.90% of final | ||||||
5 | average salary
for each year in excess of 10 but not | ||||||
6 | exceeding 20, 2.10% of final average
salary for each | ||||||
7 | year in excess of 20 but not exceeding 30, and 2.30% of | ||||||
8 | final
average salary for each year in excess of 30; and
| ||||||
9 | For creditable service earned on or after July 1, | ||||||
10 | 1998 by a member who
has at least 24 years of | ||||||
11 | creditable service on July 1, 1998 and who
does not | ||||||
12 | elect to augment service under Section 16-129.1: 2.2% | ||||||
13 | of final
average salary for each year of creditable | ||||||
14 | service earned on or after July 1,
1998 but before the | ||||||
15 | member reaches a total of 30 years of creditable | ||||||
16 | service
and 2.3% of final average salary for each year | ||||||
17 | of creditable service earned
on or after July 1, 1998 | ||||||
18 | and after the member reaches a total of 30 years of
| ||||||
19 | creditable service; and
| ||||||
20 | For all other creditable service: 2.2% of final | ||||||
21 | average salary
for each year of creditable service; or
| ||||||
22 | (2) 1.5% of final average salary for each year of
| ||||||
23 | creditable service plus the sum $7.50 for each of the | ||||||
24 | first 20 years of
creditable service.
| ||||||
25 | The amount of the retirement annuity determined under this | ||||||
26 | paragraph (B)
shall be reduced by 1/2 of 1% for each month | ||||||
27 | that the member is less than
age 60 at the time the | ||||||
28 | retirement annuity begins. However, this reduction
shall | ||||||
29 | not apply (i) if the member has at least 35 years of | ||||||
30 | creditable service,
or (ii) if the member retires on | ||||||
31 | account of disability under Section 16-149.2
of this | ||||||
32 | Article with at least 20 years of creditable service, or | ||||||
33 | (iii) if
the member (1) has earned during the period | ||||||
34 | immediately preceding the last
day of service at least one | ||||||
35 | year of contributing creditable service as an
employee of a | ||||||
36 | department as defined in Section 14-103.04, (2) has earned |
| |||||||
| |||||||
1 | at
least 5 years of contributing creditable service as an | ||||||
2 | employee of a department
as defined in Section 14-103.04, | ||||||
3 | (3) retires on or after January 1, 2001, and
(4) retires | ||||||
4 | having attained an age which, when added to the number of | ||||||
5 | years of
his or her total creditable service, equals at | ||||||
6 | least 85. Portions of years
shall be counted as decimal | ||||||
7 | equivalents.
| ||||||
8 | (b) For purposes of this Section, final average salary | ||||||
9 | shall be the
average salary for the highest 4 consecutive years | ||||||
10 | within the last 10 years
of creditable service as determined | ||||||
11 | under rules of the board. For persons
who enter service under | ||||||
12 | this Article on or after the effective date of this
amendatory | ||||||
13 | Act of the 93rd General Assembly, for the purpose of computing | ||||||
14 | final
average salary under this subsection, salary does not | ||||||
15 | include any lump sum
payment. For persons who entered service | ||||||
16 | under this
Article before the effective date of this amendatory | ||||||
17 | Act of the 93rd General
Assembly, final average salary shall be | ||||||
18 | computed under this subsection in the
same manner as | ||||||
19 | immediately before that effective date. The minimum final
| ||||||
20 | average salary shall be considered to be $2,400 per year.
| ||||||
21 | In the determination of final average salary for members | ||||||
22 | other than
elected officials and their appointees when such | ||||||
23 | appointees are allowed by
statute, that part of a member's | ||||||
24 | salary for any year beginning after June
30, 1979 which exceeds | ||||||
25 | the member's annual full-time salary rate with the
same | ||||||
26 | employer for the preceding year by more than 20% shall be | ||||||
27 | excluded.
The exclusion shall not apply in any year in which | ||||||
28 | the member's creditable
earnings are less than 50% of the | ||||||
29 | preceding year's mean salary for downstate
teachers as | ||||||
30 | determined by the survey of school district salaries provided | ||||||
31 | in
Section 2-3.103 of the School Code.
| ||||||
32 | (c) In determining the amount of the retirement annuity | ||||||
33 | under paragraph
(B) of this Section, a fractional year shall be | ||||||
34 | granted proportional credit.
| ||||||
35 | (d) The retirement annuity determined under paragraph (B) | ||||||
36 | of this Section
shall be available only to members who render |
| |||||||
| |||||||
1 | teaching service after July
1, 1947 for which member | ||||||
2 | contributions are required, and to annuitants who
re-enter | ||||||
3 | under the provisions of Section 16-150.
| ||||||
4 | (e) The maximum retirement annuity provided under | ||||||
5 | paragraph (B) of this
Section shall be 75% of final average | ||||||
6 | salary.
| ||||||
7 | (f) A member retiring after the effective date of this | ||||||
8 | amendatory Act
of 1998 shall receive a pension equal to 75% of | ||||||
9 | final average salary if the
member is qualified to receive a | ||||||
10 | retirement annuity equal to at least 74.6%
of final average | ||||||
11 | salary under this Article or as proportional annuities under
| ||||||
12 | Article 20 of this Code.
| ||||||
13 | (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99; 91-887, | ||||||
14 | eff.
7-6-00; 91-927, eff. 12-14-00.)
| ||||||
15 | (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
| ||||||
16 | Sec. 16-158. Contributions by State and other employing | ||||||
17 | units.
| ||||||
18 | (a) The State shall make contributions to the System by | ||||||
19 | means of
appropriations from the Common School Fund and other | ||||||
20 | State funds of amounts
which, together with other employer | ||||||
21 | contributions, employee contributions,
investment income, and | ||||||
22 | other income, will be sufficient to meet the cost of
| ||||||
23 | maintaining and administering the System on a 90% funded basis | ||||||
24 | in accordance
with actuarial recommendations.
| ||||||
25 | The Board shall determine the amount of State contributions | ||||||
26 | required for
each fiscal year on the basis of the actuarial | ||||||
27 | tables and other assumptions
adopted by the Board and the | ||||||
28 | recommendations of the actuary, using the formula
in subsection | ||||||
29 | (b-3).
| ||||||
30 | (a-1) Annually, on or before November 15, the Board shall | ||||||
31 | certify to the
Governor the amount of the required State | ||||||
32 | contribution for the coming fiscal
year. The certification | ||||||
33 | shall include a copy of the actuarial recommendations
upon | ||||||
34 | which it is based.
| ||||||
35 | On or before May 1, 2004, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to
the Governor the amount of the required State | ||||||
2 | contribution to the System for
State fiscal year 2005, taking | ||||||
3 | into account the amounts appropriated to and
received by the | ||||||
4 | System under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act.
| ||||||
6 | (b) Through State fiscal year 1995, the State contributions | ||||||
7 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
8 | the School Code.
| ||||||
9 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
10 | of each month,
or as soon thereafter as may be practicable, the | ||||||
11 | Board shall submit vouchers
for payment of State contributions | ||||||
12 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
13 | required annual State contribution certified under
subsection | ||||||
14 | (a-1). These vouchers shall be paid by the State Comptroller | ||||||
15 | and
Treasurer by warrants drawn on the funds appropriated to | ||||||
16 | the System for that
fiscal year.
| ||||||
17 | If in any month the amount remaining unexpended from all | ||||||
18 | other appropriations
to the System for the applicable fiscal | ||||||
19 | year (including the appropriations to
the System under Section | ||||||
20 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
21 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
22 | amount
lawfully vouchered under this subsection, the | ||||||
23 | difference shall be paid from the
Common School Fund under the | ||||||
24 | continuing appropriation authority provided in
Section 1.1 of | ||||||
25 | the State Pension Funds Continuing Appropriation Act.
| ||||||
26 | (b-2) Allocations from the Common School Fund apportioned | ||||||
27 | to school
districts not coming under this System shall not be | ||||||
28 | diminished or affected by
the provisions of this Article.
| ||||||
29 | (b-3) For State fiscal years 2011 through 2045, the minimum | ||||||
30 | contribution
to the System to be made by the State for each | ||||||
31 | fiscal year shall be an amount
determined by the System to be | ||||||
32 | sufficient to bring the total assets of the
System up to 90% of | ||||||
33 | the total actuarial liabilities of the System by the end of
| ||||||
34 | State fiscal year 2045. In making these determinations, the | ||||||
35 | required State
contribution shall be calculated each year as a | ||||||
36 | level percentage of payroll
over the years remaining to and |
| |||||||
| |||||||
1 | including fiscal year 2045 and shall be
determined under the | ||||||
2 | projected unit credit actuarial cost method.
| ||||||
3 | For State fiscal years 1996 through 2010, the State | ||||||
4 | contribution to the
System, as a percentage of the applicable | ||||||
5 | employee payroll, shall be increased
in equal annual increments | ||||||
6 | so that by State fiscal year 2011, the State is
contributing at | ||||||
7 | the rate required under this Section; except that in the
| ||||||
8 | following specified State fiscal years, the State contribution | ||||||
9 | to the System
shall not be less than the following indicated | ||||||
10 | percentages of the applicable
employee payroll, even if the | ||||||
11 | indicated percentage will produce a State
contribution in | ||||||
12 | excess of the amount otherwise required under this subsection
| ||||||
13 | and subsection (a), and notwithstanding any contrary | ||||||
14 | certification made under
subsection (a-1) before the effective | ||||||
15 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
16 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
17 | 2003; and
13.56% in FY 2004.
| ||||||
18 | Beginning in State fiscal year 2046, the minimum State | ||||||
19 | contribution for
each fiscal year shall be the amount needed to | ||||||
20 | maintain the total assets of
the System at 90% of the total | ||||||
21 | actuarial liabilities of the System.
| ||||||
22 | Notwithstanding any other provision of this Section, the | ||||||
23 | required State
contribution for State fiscal year 2005 and each | ||||||
24 | fiscal year thereafter, as
calculated under this Section and
| ||||||
25 | certified under subsection (a-1), shall not exceed an amount | ||||||
26 | equal to (i) the
amount of the required State contribution that | ||||||
27 | would have been calculated under
this Section for that fiscal | ||||||
28 | year if the System had not received any payments
under | ||||||
29 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
30 | Act, minus
(ii) the portion of the State's total debt service | ||||||
31 | payments for that fiscal
year on the bonds issued for the | ||||||
32 | purposes of that Section 7.2, as determined
and certified by | ||||||
33 | the Comptroller, that is the same as the System's portion of
| ||||||
34 | the total moneys distributed under subsection (d) of Section | ||||||
35 | 7.2 of the General
Obligation Bond Act.
| ||||||
36 | (b-4) If the amount of a teacher's salary for any school |
| |||||||
| |||||||
1 | year used to
determine final average salary is increased over | ||||||
2 | the amount of his or her
salary with the same employer for the | ||||||
3 | previous school year by an amount greater
than the increase | ||||||
4 | that would result from the application of Motions 15 and 16
of | ||||||
5 | the Report of the Compensation Review Board of April 25,
1990, | ||||||
6 | as approved by Senate Joint Resolution 192 of the 86th General
| ||||||
7 | Assembly, the teacher's employer shall pay to the System, in | ||||||
8 | addition to all
other payments required under this Section and | ||||||
9 | in accordance with guidelines
established by the System, the | ||||||
10 | present value of the increase in benefits
resulting from the | ||||||
11 | portion of the increase in salary that is in excess of the
| ||||||
12 | increase that would result from the application of Motions 15
| ||||||
13 | and 16 of the Report of the Compensation Review Board of April | ||||||
14 | 25, 1990, as
approved by Senate Joint Resolution 192 of the | ||||||
15 | 86th General Assembly. The
present value of the increase in | ||||||
16 | benefits resulting from the portion of the
increase in salary | ||||||
17 | that is in excess of the increase that would result from the
| ||||||
18 | application of Motions 15 and 16 of the Report of the
| ||||||
19 | Compensation Review Board of April 25, 1990, as approved by | ||||||
20 | Senate Joint
Resolution 192 of the 86th General Assembly, shall | ||||||
21 | be computed by the Board on
the basis of the same actuarial | ||||||
22 | assumptions and tables used by the Board for
the most recent | ||||||
23 | actuarial valuation that are available at the time of the
| ||||||
24 | computation. The employer contributions required under this | ||||||
25 | subsection (b-4)
may be paid in the form of a lump sum within | ||||||
26 | 60 days after the teacher begins
receiving benefits under this | ||||||
27 | Article or in substantially equal installments
over a period of | ||||||
28 | up to 3 years beginning at the time the teacher begins
| ||||||
29 | receiving benefits under this Article.
| ||||||
30 | For the purposes of this subsection (b-4), the term "the | ||||||
31 | increase that would result from the application of Motions 15 | ||||||
32 | and 16 of the Report of the Compensation Review Board of April | ||||||
33 | 25, 1990, as approved by Senate Joint Resolution 192 of the | ||||||
34 | 86th General Assembly means an increase in salary on July 1, | ||||||
35 | 2004 and July 1 of each year thereafter by the lesser of (i) | ||||||
36 | the cost of living index known as the Employment Cost Index, |
| |||||||
| |||||||
1 | Wages, and Salaries, By Occupation and Industry Group: State | ||||||
2 | and Local Government Workers: Public Administration as | ||||||
3 | published by the United States Department of Labor, Bureau of | ||||||
4 | Labor Statistics, applicable for the calendar year immediately | ||||||
5 | preceding the calendar year in which the respective July 1st | ||||||
6 | increase is scheduled or (ii) 5% of the current salary.
| ||||||
7 | The provisions of this subsection (b-4) apply to salaries | ||||||
8 | paid to teachers
under contracts or collective bargaining | ||||||
9 | agreements entered into, amended, or
renewed on or after the | ||||||
10 | effective date of this amendatory Act of the 93rd
General | ||||||
11 | Assembly.
| ||||||
12 | (c) Payment of the required State contributions and of all | ||||||
13 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
14 | other benefits granted
under or assumed by this System, and all | ||||||
15 | expenses in connection with the
administration and operation | ||||||
16 | thereof, are obligations of the State.
| ||||||
17 | If members are paid from special trust or federal funds | ||||||
18 | which are
administered by the employing unit, whether school | ||||||
19 | district or other
unit, the employing unit shall pay to the | ||||||
20 | System from such
funds the full accruing retirement costs based | ||||||
21 | upon that
service, as determined by the System. Employer | ||||||
22 | contributions, based on
salary paid to members from federal | ||||||
23 | funds, may be forwarded by the distributing
agency of the State | ||||||
24 | of Illinois to the System prior to allocation, in an
amount | ||||||
25 | determined in accordance with guidelines established by such
| ||||||
26 | agency and the System.
| ||||||
27 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
28 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
29 | employer's normal cost
of benefits based upon the teacher's | ||||||
30 | service, in addition to
employee contributions, as determined | ||||||
31 | by the System. Such employer
contributions shall be forwarded | ||||||
32 | monthly in accordance with guidelines
established by the | ||||||
33 | System.
| ||||||
34 | However, with respect to benefits granted under Section | ||||||
35 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
36 | of Section 16-106, the
employer's contribution shall be 12% |
| |||||||
| |||||||
1 | (rather than 20%) of the member's
highest annual salary rate | ||||||
2 | for each year of creditable service granted, and
the employer | ||||||
3 | shall also pay the required employee contribution on behalf of
| ||||||
4 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
5 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
6 | 16-106 who is serving in that capacity
while on leave of | ||||||
7 | absence from another employer under this Article shall not
be | ||||||
8 | considered an employee of the employer from which the teacher | ||||||
9 | is on leave.
| ||||||
10 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
11 | shall pay to the System an employer contribution computed as | ||||||
12 | follows:
| ||||||
13 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
14 | employer
contribution shall be equal to 0.3% of each | ||||||
15 | teacher's salary.
| ||||||
16 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
17 | contribution shall be equal to 0.58% of each teacher's | ||||||
18 | salary.
| ||||||
19 | The school district or other employing unit may pay these | ||||||
20 | employer
contributions out of any source of funding available | ||||||
21 | for that purpose and
shall forward the contributions to the | ||||||
22 | System on the schedule established
for the payment of member | ||||||
23 | contributions.
| ||||||
24 | These employer contributions are intended to offset a | ||||||
25 | portion of the cost
to the System of the increases in | ||||||
26 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
27 | Each employer of teachers is entitled to a credit against | ||||||
28 | the contributions
required under this subsection (e) with | ||||||
29 | respect to salaries paid to teachers
for the period January 1, | ||||||
30 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
31 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
32 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
33 | paid to teachers for that
period.
| ||||||
34 | The additional 1% employee contribution required under | ||||||
35 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
36 | responsibility of the teacher and not the
teacher's employer, |
| |||||||
| |||||||
1 | unless the employer agrees, through collective bargaining
or | ||||||
2 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
3 | If an employer is required by a contract in effect on May | ||||||
4 | 1, 1998 between the
employer and an employee organization to | ||||||
5 | pay, on behalf of all its full-time
employees
covered by this | ||||||
6 | Article, all mandatory employee contributions required under
| ||||||
7 | this Article, then the employer shall be excused from paying | ||||||
8 | the employer
contribution required under this subsection (e) | ||||||
9 | for the balance of the term
of that contract. The employer and | ||||||
10 | the employee organization shall jointly
certify to the System | ||||||
11 | the existence of the contractual requirement, in such
form as | ||||||
12 | the System may prescribe. This exclusion shall cease upon the
| ||||||
13 | termination, extension, or renewal of the contract at any time | ||||||
14 | after May 1,
1998.
| ||||||
15 | (Source: P.A. 92-505, eff. 12-20-01; 93-2, eff. 4-7-03.)
| ||||||
16 | Section 90. The State Mandates Act is amended by adding | ||||||
17 | Section 8.28 as
follows:
| ||||||
18 | (30 ILCS 805/8.28 new)
| ||||||
19 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and | ||||||
20 | 8 of this
Act, no reimbursement by the State is required for | ||||||
21 | the implementation of
any mandate created by this amendatory | ||||||
22 | Act of the 93rd General Assembly.
| ||||||
23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law. |