SB2493 94TH GENERAL ASSEMBLY

LRB094 18792 AMC 54198 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2493

Introduced 1/18/2006, by Sen. Larry K. Bomke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/15-113.7a new
40 ILCS 5/15-198

Amends the State Universities Article of the Illinois Pension Code. Includes within the definition of "service" periods not exceeding 2 years during which a person served in the Peace Corps, provided that the person (1) applies for the service on or after the effective date and before June 1, 2007 and (2) pays to the System the actuarial value of the increase in benefits resulting from the service. Includes language exempting the changes from provisions concerning new benefit increases. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

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 adding Sections 15-113.7a and 15-198 as follows:

(40 ILCS 5/15-113.7a new)

Sec. 15-113.7a. Service for periods of service with the Peace Corps. "Service for periods of service with the Peace Corps" means those periods not exceeding 2 years during which a person served in the Peace Corps, provided that the person (1) applies for the service on or after the effective date and before June 1, 2007 and (2) pays to the System the actuarial value of the increase in the benefits resulting from the service.

(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) this amendatory Act of the 94th General Assembly. "New benefit increase", however, does not include any benefit increase resulting from the changes made to this Article by this amendatory Act of the 94th 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 Financial and Professional Regulation. 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. 94-4, eff. 6-1-05.)

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