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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:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Sections
14-108.3 and 16-133.3 as follows:
| ||||||||||||||||||||||||||
6 | (40 ILCS 5/14-108.3)
| ||||||||||||||||||||||||||
7 | Sec. 14-108.3. Early retirement incentives.
| ||||||||||||||||||||||||||
8 | (a) To be eligible for the benefits provided in this | ||||||||||||||||||||||||||
9 | Section, a person
must:
| ||||||||||||||||||||||||||
10 | (1) be a member of this System who, on any day during | ||||||||||||||||||||||||||
11 | June, 2002, is
(i) in active payroll status in a position | ||||||||||||||||||||||||||
12 | of employment with a department
and an active contributor | ||||||||||||||||||||||||||
13 | to this System with respect to that employment,
and | ||||||||||||||||||||||||||
14 | terminates that employment before the retirement annuity | ||||||||||||||||||||||||||
15 | under this
Article begins, or (ii) on layoff status from | ||||||||||||||||||||||||||
16 | such a position with a right of
re-employment or recall to | ||||||||||||||||||||||||||
17 | service, or (iii) receiving benefits under Section
14-123, | ||||||||||||||||||||||||||
18 | 14-123.1 or 14-124, but only if the member has not been | ||||||||||||||||||||||||||
19 | receiving
those benefits for a continuous period of more | ||||||||||||||||||||||||||
20 | than 2 years as of the date
of application;
| ||||||||||||||||||||||||||
21 | (2) not have received any retirement annuity under this | ||||||||||||||||||||||||||
22 | Article
beginning earlier than August 1, 2002;
| ||||||||||||||||||||||||||
23 | (3) file with the Board on or before December 31, 2004
| ||||||||||||||||||||||||||
24 | 2002 a written
application requesting the benefits | ||||||||||||||||||||||||||
25 | provided in this Section;
| ||||||||||||||||||||||||||
26 | (4) terminate employment under this Article no later | ||||||||||||||||||||||||||
27 | than December 31, 2004
2002 (or the date established under | ||||||||||||||||||||||||||
28 | subsection (d), if applicable);
| ||||||||||||||||||||||||||
29 | (5) by the date of termination of service, have at | ||||||||||||||||||||||||||
30 | least 8 years of
creditable service under this Article, | ||||||||||||||||||||||||||
31 | without the use of any creditable
service established under | ||||||||||||||||||||||||||
32 | this Section;
|
| |||||||
|
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1 | (6) by the date of termination of service, have at | ||||||
2 | least 5 years
of membership service earned while an | ||||||
3 | employee under this Article, which may
include military | ||||||
4 | service for which credit is established under Section
| ||||||
5 | 14-105(b), service during the qualifying period for which | ||||||
6 | credit is
established under Section 14-104(a), and service | ||||||
7 | for which credit has been
established by repaying a refund | ||||||
8 | under Section 14-130, but shall not include
service for | ||||||
9 | which any other optional service credit has been | ||||||
10 | established; and
| ||||||
11 | (7) not receive any early retirement benefit under | ||||||
12 | Section 16-133.3 of
this Code , unless he or she forfeited | ||||||
13 | that benefit as a result of reentering contributing Service | ||||||
14 | under this Article or Article 16 .
| ||||||
15 | (b)
An eligible person may establish up to 5 years of | ||||||
16 | creditable service
under this Article, in increments of one | ||||||
17 | month, by making the contributions
specified in subsection (c). | ||||||
18 | In addition, for each month of creditable
service established | ||||||
19 | under this Section, a person's age at retirement shall
be | ||||||
20 | deemed to be one month older than it actually is.
| ||||||
21 | The creditable service established under this Section may | ||||||
22 | be used for
all purposes under this Article and the Retirement | ||||||
23 | Systems Reciprocal Act,
except for the computation of final | ||||||
24 | average compensation under Section
14-103.12 or the | ||||||
25 | determination of compensation under this or any other
Article | ||||||
26 | of this Code.
| ||||||
27 | The age enhancement established under this Section may not | ||||||
28 | be used to
enable any person to begin receiving a retirement | ||||||
29 | annuity calculated under
Section 14-110 before actually | ||||||
30 | attaining age 50 (without any age enhancement
under this | ||||||
31 | Section). The age enhancement established under this Section | ||||||
32 | may
be used for all other purposes under this Article | ||||||
33 | (including calculation of
a proportionate annuity payable by | ||||||
34 | this System under the Retirement Systems
Reciprocal Act), | ||||||
35 | except for purposes of the level income option in Section
| ||||||
36 | 14-112, the reversionary annuity under Section 14-113, and the |
| |||||||
|
|||||||
1 | required
distributions under Section 14-121.1.
| ||||||
2 | The age enhancement established under this Section may be | ||||||
3 | used in
determining benefits payable under Article 16 of this | ||||||
4 | Code under the
Retirement Systems Reciprocal Act, if the person | ||||||
5 | has at least 5 years of
service credit in the Article 16 system | ||||||
6 | that was earned while participating
in that system as a teacher | ||||||
7 | (as defined in Section 16-106) employed by a
department (as | ||||||
8 | defined in Section 14-103.04).
Age enhancement established | ||||||
9 | under this Section shall not otherwise be used
in determining | ||||||
10 | benefits payable under other Articles of this Code under the
| ||||||
11 | Retirement Systems Reciprocal Act.
| ||||||
12 | (c) For all creditable service established under this | ||||||
13 | Section, a person
must pay to the System an employee | ||||||
14 | contribution to be determined by the
System, based on the | ||||||
15 | member's rate of compensation on June 1, 2002 (or
the last date | ||||||
16 | before June 1, 2002 for which a rate can be determined) and
the | ||||||
17 | retirement contribution rate in effect on June 1, 2002 for the | ||||||
18 | member
(or for members with the same social security and | ||||||
19 | alternative formula status
as the member).
| ||||||
20 | If the member receives a lump sum payment for accumulated | ||||||
21 | vacation, sick
leave and personal leave upon withdrawal from | ||||||
22 | service, and the net amount of
that lump sum payment is at | ||||||
23 | least as great as the amount of the contribution
required under | ||||||
24 | this Section, the entire contribution must be paid by the
| ||||||
25 | employee by payroll deduction. If there is no such lump sum | ||||||
26 | payment, or if
it is less than the contribution required under | ||||||
27 | this Section, the member shall
make an initial payment by | ||||||
28 | payroll deduction, equal to the net amount of the
lump sum | ||||||
29 | payment for accumulated vacation, sick leave, and personal | ||||||
30 | leave,
and have the remaining amount due treated as a reduction | ||||||
31 | from the retirement
annuity in 24 equal monthly installments | ||||||
32 | beginning in the month in which the
retirement annuity takes | ||||||
33 | effect. The required contribution may be paid as a
pre-tax | ||||||
34 | deduction from earnings. For federal and Illinois tax purposes, | ||||||
35 | the
monthly amount by which the annuitant's benefit is reduced | ||||||
36 | shall not be
treated as a contribution by the annuitant, but |
| |||||||
|
|||||||
1 | rather as a reduction of the
annuitant's monthly benefit.
| ||||||
2 | (c-5) The reduction in retirement annuity provided in | ||||||
3 | subsection (c) of
Section 14-108 does not apply to the annuity | ||||||
4 | of a person who retires under this
Section. A person who has | ||||||
5 | received any age enhancement or creditable service
under this | ||||||
6 | Section may begin to receive an unreduced retirement annuity | ||||||
7 | upon
attainment of age 55 with at least 25 years of creditable | ||||||
8 | service (including
any age enhancement and creditable service | ||||||
9 | established under this Section).
| ||||||
10 | (d) In order to ensure that the efficient operation of | ||||||
11 | State government
is not jeopardized by the simultaneous | ||||||
12 | retirement of large numbers of key
personnel, the director or | ||||||
13 | other head of a department may, for key employees
of that | ||||||
14 | department, extend the December 31, 2002 deadline for | ||||||
15 | terminating
employment under this Article established in | ||||||
16 | subdivision (a)(4) of this
Section to a date not later than | ||||||
17 | April 30, 2003 by so notifying the System
in writing by | ||||||
18 | December 31, 2002.
| ||||||
19 | (e) Notwithstanding Section 14-111, a person who has | ||||||
20 | received any
age enhancement or creditable service under this | ||||||
21 | Section and who reenters
service under this Article (or as an | ||||||
22 | employee of a department under Article
16) other than as a | ||||||
23 | temporary employee thereby forfeits that age enhancement
and | ||||||
24 | creditable service and is entitled to a refund of the | ||||||
25 | contributions
made pursuant to this Section.
| ||||||
26 | (f) The System shall determine the amount of the increase | ||||||
27 | in unfunded
accrued liability resulting from the granting of | ||||||
28 | early retirement incentives
under this Section and shall report | ||||||
29 | that amount to the Governor and the
Pension Laws Commission (or | ||||||
30 | its successor, the Economic and Fiscal
Commission) on or before | ||||||
31 | November 15,
2003. The increase in
liability reported under | ||||||
32 | this subsection (f) shall not be included in the
calculation of | ||||||
33 | the required State contribution under Section 14-131.
| ||||||
34 | (g) The System shall determine the amount of the annual | ||||||
35 | State contribution
necessary to amortize on a level | ||||||
36 | dollar-payment basis, over a period of 10
years at 8.5% |
| |||||||
|
|||||||
1 | interest, compounded annually, an amount equal to the increase | ||||||
2 | in
unfunded accrued liability determined under subsection (f) | ||||||
3 | minus $70,000,000.
The System shall certify the amount of this | ||||||
4 | annual State contribution to the
Governor, the State | ||||||
5 | Comptroller, the
Governor's Office of Management and Budget | ||||||
6 | (formerly
Bureau of the Budget), and the Pension Laws
| ||||||
7 | Commission (or its successor, the Economic and Fiscal | ||||||
8 | Commission) on or
before November 15, 2003.
| ||||||
9 | In addition to the contributions otherwise required under | ||||||
10 | this Article,
the State shall appropriate and pay to the System | ||||||
11 | (1) an amount equal to
$70,000,000 in State fiscal year 2004 | ||||||
12 | and (2) in each of State fiscal years
2005 through 2013, an | ||||||
13 | amount equal to the annual State contribution certified
by the | ||||||
14 | System under this subsection (g).
| ||||||
15 | (h) The Pension Laws Commission (or its successor, the | ||||||
16 | Economic and Fiscal
Commission) shall determine
and report to | ||||||
17 | the General
Assembly, on or before January 1, 2004 and annually | ||||||
18 | thereafter through the year
2013, its estimate of (1) the | ||||||
19 | annual amount of payroll savings likely to be
realized by the | ||||||
20 | State as a result of the early retirement of persons receiving
| ||||||
21 | early retirement incentives under this Section and (2) the net | ||||||
22 | annual savings
or cost to the State from the program of early | ||||||
23 | retirement incentives created
under this Section.
| ||||||
24 | The System, the Department of Central Management Services, | ||||||
25 | the
Governor's Office of Management and Budget (formerly
Bureau | ||||||
26 | of
the Budget), and all other departments shall provide to the | ||||||
27 | Commission any
assistance that the Commission may request with | ||||||
28 | respect to its reports under
this Section. The Commission may | ||||||
29 | require departments to provide it with any
information that it | ||||||
30 | deems necessary or useful with respect to its reports under
| ||||||
31 | this Section, including without limitation information about | ||||||
32 | (1) the final
earnings of former department employees who | ||||||
33 | elected to receive benefits under
this Section, (2) the | ||||||
34 | earnings of current department employees holding the
positions | ||||||
35 | vacated by persons who elected to receive benefits under this
| ||||||
36 | Section, and (3) positions vacated by persons who elected to |
| |||||||
|
|||||||
1 | receive benefits
under this Section that have not yet been | ||||||
2 | refilled.
| ||||||
3 | (i) The changes made to this Section by this amendatory Act | ||||||
4 | of the 92nd
General Assembly do not apply to persons who | ||||||
5 | retired under this Section on or
before May 1, 1992.
| ||||||
6 | (Source: P.A. 92-566, eff. 6-25-02; 93-632, eff. 2-1-04.)
| ||||||
7 | (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3) | ||||||
8 | Sec. 16-133.3. Early retirement incentives for State | ||||||
9 | employees.
| ||||||
10 | (a) To be eligible for the benefits provided in this | ||||||
11 | Section, a person
must:
| ||||||
12 | (1) be a member of this System who, on any day during | ||||||
13 | June, 2002, is
(i) in active payroll status as a full-time | ||||||
14 | teacher employed by a department
and an active contributor | ||||||
15 | to this System with respect to that employment, or
(ii) on | ||||||
16 | layoff status from such a position with a right of | ||||||
17 | re-employment or
recall to service, or (iii) receiving a | ||||||
18 | disability benefit under Section
16-149 or 16-149.1, but | ||||||
19 | only if the member has not been receiving that benefit
for | ||||||
20 | a continuous period of more than 2 years as of the date of | ||||||
21 | application;
| ||||||
22 | (2) not have received any retirement annuity under this | ||||||
23 | Article
beginning earlier than August 1, 2002;
| ||||||
24 | (3) file with the Board on or before December 31, 2004
| ||||||
25 | 2002 a written
application requesting the benefits | ||||||
26 | provided in this Section;
| ||||||
27 | (4) terminate employment under this Article no later | ||||||
28 | than December 31, 2004
2002 (or the date established under | ||||||
29 | subsection (d), if applicable);
| ||||||
30 | (5) by the date of termination of service, have at | ||||||
31 | least 8 years of
creditable service under this Article, | ||||||
32 | without the use of any creditable
service established under | ||||||
33 | this Section;
| ||||||
34 | (6) by the date of termination of service, have at | ||||||
35 | least 5 years
of service credit earned while participating |
| |||||||
|
|||||||
1 | in the System as a teacher
employed by a department; and
| ||||||
2 | (7) not receive any early retirement benefit under | ||||||
3 | Section 14-108.3 of
this Code.
| ||||||
4 | For the purposes of this Section, "department" means a | ||||||
5 | department as defined
in Section 14-103.04 that employs a | ||||||
6 | teacher as defined in this Article.
| ||||||
7 | (b) An eligible person may establish up to 5 years of | ||||||
8 | creditable service
under this Article by making the | ||||||
9 | contributions
specified in subsection (c). In addition, for | ||||||
10 | each period of creditable
service established under this | ||||||
11 | Section, a person's age at retirement shall
be deemed to be | ||||||
12 | enhanced by an equivalent period.
| ||||||
13 | The creditable service established under this Section may | ||||||
14 | be used for all
purposes under this Article and the Retirement | ||||||
15 | Systems Reciprocal Act,
except for the computation of final | ||||||
16 | average salary, the determination of salary
or compensation | ||||||
17 | under this Article or any other Article of this Code, or the
| ||||||
18 | determination of eligibility for or the computation of benefits | ||||||
19 | under Section
16-133.2.
| ||||||
20 | The age enhancement established under this Section may be | ||||||
21 | used for all
purposes under this Article (including calculation | ||||||
22 | of a proportionate annuity
payable by this System under the | ||||||
23 | Retirement Systems Reciprocal Act), except for
purposes of a | ||||||
24 | retirement annuity under Section 16-133(a)(A), a
reversionary | ||||||
25 | annuity under Section 16-136, the required distributions under
| ||||||
26 | Section 16-142.3, and the determination of eligibility for or | ||||||
27 | the computation
of benefits under Section 16-133.2. Age | ||||||
28 | enhancement established under this
Section may be used in | ||||||
29 | determining benefits payable under Article 14 of this
Code | ||||||
30 | under the Retirement Systems Reciprocal Act (subject to the | ||||||
31 | limitations
on the use of age enhancement provided in Section | ||||||
32 | 14-108.3); age enhancement
established under this Section | ||||||
33 | shall not be used in determining benefits
payable under other | ||||||
34 | Articles of this Code under the Retirement Systems
Reciprocal | ||||||
35 | Act.
| ||||||
36 | (c) For all creditable service established under this |
| |||||||
|
|||||||
1 | Section, a person
must pay to the System an employee | ||||||
2 | contribution to be determined by the
System, equal to 9.0% of | ||||||
3 | the member's highest annual salary rate that would be
used in | ||||||
4 | the determination of the average salary for retirement annuity | ||||||
5 | purposes
if the member retired immediately after withdrawal, | ||||||
6 | for each year of creditable
service established under this | ||||||
7 | Section.
| ||||||
8 | If the member receives a lump sum payment for accumulated | ||||||
9 | vacation, sick
leave, and personal leave upon withdrawal from | ||||||
10 | service, and the net amount of
that lump sum payment is at | ||||||
11 | least as great as the amount of the contribution
required under | ||||||
12 | this Section, the entire contribution must be paid by the
| ||||||
13 | employee by payroll deduction. If there is no such lump sum | ||||||
14 | payment, or if it
is less than the contribution required under | ||||||
15 | this Section, the member shall
make an initial payment by | ||||||
16 | payroll deduction, equal to the net amount of the
lump sum | ||||||
17 | payment for accumulated vacation, sick leave, and personal | ||||||
18 | leave,
and have the remaining amount due treated as a reduction | ||||||
19 | from the retirement
annuity in 24 equal monthly installments | ||||||
20 | beginning in the month in which the
retirement annuity takes | ||||||
21 | effect. The required contribution may be paid as a
pre-tax | ||||||
22 | deduction from earnings.
| ||||||
23 | (d) In order to ensure that the efficient operation of | ||||||
24 | State government
is not jeopardized by the simultaneous | ||||||
25 | retirement of large numbers of key
personnel, the director or | ||||||
26 | other head of a department may, for key employees
of that | ||||||
27 | department, extend the December 31, 2002 deadline for | ||||||
28 | terminating
employment under this Article established in | ||||||
29 | subdivision (a)(4) of this
Section to a date not later than | ||||||
30 | April 30, 2003 by so notifying the
System in writing by | ||||||
31 | December 31, 2002.
| ||||||
32 | (e) A person who has received any age enhancement or | ||||||
33 | creditable service
under this Section and who reenters | ||||||
34 | contributing service under this Article or
Article 14 shall | ||||||
35 | thereby forfeit that age enhancement and creditable service,
| ||||||
36 | and become entitled to a refund of the contributions made |
| |||||||
|
|||||||
1 | pursuant to this
Section.
| ||||||
2 | (f) The System shall determine the amount of the increase | ||||||
3 | in unfunded
accrued liability resulting from the granting of | ||||||
4 | early retirement incentives
under this Section and shall report | ||||||
5 | that amount to the Governor and the
Pension Laws Commission (or | ||||||
6 | its successor, the Economic and Fiscal
Commission) on or before | ||||||
7 | November 15,
2003. The increase in
liability reported under | ||||||
8 | this subsection (f) shall not be included in the
calculation of | ||||||
9 | the required State contribution under Section 16-158.
| ||||||
10 | (g) The System shall determine the amount of the annual | ||||||
11 | State contribution
necessary to amortize on a level | ||||||
12 | dollar-payment basis, over a period of 10
years at 8.5% | ||||||
13 | interest, compounded annually, an amount equal to the increase | ||||||
14 | in
unfunded accrued liability determined under subsection (f) | ||||||
15 | minus $1,000,000.
The System shall certify the amount of this | ||||||
16 | annual State contribution to the
Governor, the State | ||||||
17 | Comptroller, the
Governor's Office of Management and Budget | ||||||
18 | (formerly
Bureau of the Budget), and the Pension Laws
| ||||||
19 | Commission (or its successor, the Economic and Fiscal | ||||||
20 | Commission) on or
before November 15, 2003.
| ||||||
21 | In addition to the contributions otherwise required under | ||||||
22 | this Article,
the State shall appropriate and pay to the System | ||||||
23 | (1) an amount equal to
$1,000,000 in State fiscal year 2004 and | ||||||
24 | (2) in each of State fiscal years
2005 through 2013, an amount | ||||||
25 | equal to the annual State contribution certified
by the System | ||||||
26 | under this subsection (g).
| ||||||
27 | (h) The Pension Laws Commission (or its successor, the | ||||||
28 | Economic and Fiscal
Commission) shall determine
and report to | ||||||
29 | the General
Assembly, on or before January 1, 2004 and annually | ||||||
30 | thereafter through the year
2013, its estimate of (1) the | ||||||
31 | annual amount of payroll savings likely to be
realized by the | ||||||
32 | State as a result of the early retirement of persons receiving
| ||||||
33 | early retirement incentives under this Section and (2) the net | ||||||
34 | annual savings
or cost to the State from the program of early | ||||||
35 | retirement incentives created
under this Section.
| ||||||
36 | The System, the Department of Central Management Services, |
| |||||||
|
|||||||
1 | the
Governor's Office of Management and Budget (formerly
Bureau | ||||||
2 | of
the Budget), and all other departments shall provide to the | ||||||
3 | Commission any
assistance that the Commission may request with | ||||||
4 | respect to its reports under
this Section. The Commission may | ||||||
5 | require departments to provide it with any
information that it | ||||||
6 | deems necessary or useful with respect to its reports under
| ||||||
7 | this Section, including without limitation information about | ||||||
8 | (1) the final
earnings of former department employees who | ||||||
9 | elected to receive benefits under
this Section, (2) the | ||||||
10 | earnings of current department employees holding the
positions | ||||||
11 | vacated by persons who elected to receive benefits under this
| ||||||
12 | Section, and (3) positions vacated by persons who elected to | ||||||
13 | receive benefits
under this Section that have not yet been | ||||||
14 | refilled.
| ||||||
15 | (i) The changes made to this Section by this amendatory Act | ||||||
16 | of the 92nd
General Assembly do not apply to persons who | ||||||
17 | retired under this Section on or
before May 1, 1992.
| ||||||
18 | (Source: P.A. 92-566, eff. 6-25-02; 93-632, eff. 2-1-04.)
| ||||||
19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.
|