SB3276 99TH GENERAL ASSEMBLY

LRB099 20579 RPS 45133 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3276

Introduced 2/19/2016, by Sen. Matt Murphy

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Pension Code. Authorizes units of local government to provide alternative retirement plans in lieu of or in addition to the existing plan under the applicable Article. Provides that the alternative retirement plan may include a defined-benefit component, a defined contribution component, or both, and may include disability or survivor benefits and any other benefits that are permitted under federal law. Provides that the alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable. Provides that service credit received under an alternative retirement plan may not be transferred to any other fund and may not be used under the Retirement Systems Reciprocal Act (Article 20 of the Code). Amends the Illinois Public Labor Relations Act and the Illinois Educational Labor Relations Act. Provides that employers shall not be required to bargain over the changes made by the amendatory Act.

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 Public Labor Relations Act is amended by adding Section 7.6 as follows:

(5 ILCS 315/7.6 new)

Sec. 7.6. Mandatory collective bargaining regarding alternative retirement plans not required. Notwithstanding any other provision of this Act, employers shall not be subject to mandatory collective bargaining with regard to the adoption or implementation of an alternative retirement plan authorized by this amendatory Act of the 99th General Assembly.

Section 10. The Illinois Pension Code is amended by changing Sections 3-150, 4-142, and 10-103 and by adding Sections 3-101.5, 4-101.5, 5-101.5, 6-101.5, 7-101.5, 8-101.5, 9-101.5, 10-101.5, 11-101.5, 12-101.5, 13-101.5, 15-101.5, 16-101.5, and 17-101.5 as follows:

(40 ILCS 5/3-101.5 new)

Sec. 3-101.5. Alternative retirement plan; local control of benefits.

(a) The corporate authorities of a municipality subject to this Article may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system.

(d) Providing an alternative retirement plan does not release the municipality from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the municipality in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/3-150) (from Ch. 108 1/2, par. 3-150)

Sec. 3-150. Applicability of home rule powers. A home rule unit, as defined in Article VII of the 1970 Illinois Constitution or any amendment thereto, shall have no power to change, alter, or amend in any way the provisions of this Article, except as provided in Section 3-101.5. A home rule unit which is a municipality, as defined in Section 3-103, shall not provide for, singly or as a part of any plan or program, by any means whatsoever, any type of retirement or annuity benefit to a police officer other than through establishment of a fund as provided in this Article, except as provided in Section 3-101.5.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-101.5 new)

Sec. 4-101.5. Alternative retirement plan; local control of benefits.

(a) The corporate authorities of a municipality subject to this Article may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system.

(d) Providing an alternative retirement plan does not release the municipality from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the municipality in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/4-142) (from Ch. 108 1/2, par. 4-142)

Sec. 4-142. Applicability of home rule powers. A home rule unit, as defined in Article VII of the 1970 Illinois Constitution or any amendment thereto, shall have no power to change, alter, or amend in any way the provisions of this Article, except as provided in Section 4-101.5. A home rule unit which is a municipality, as defined in Section 4-103, shall not provide for, singly or as a part of any plan or program, by any means whatsoever, any type of retirement or annuity benefit to a firefighter other than through establishment of a fund as provided in this Article as now or hereafter amended, except as provided in Section 4-101.5.

(Source: P.A. 83-1440.)

(40 ILCS 5/5-101.5 new)

Sec. 5-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system.

(d) Providing an alternative retirement plan does not release the city from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/6-101.5 new)

Sec. 6-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system.

(d) Providing an alternative retirement plan does not release the city from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/7-101.5 new)

Sec. 7-101.5. Alternative retirement plan; local control of benefits.

(a) The governing body of a municipality or instrumentality may, at any time on or after the effective date of this Section, provide by ordinance or resolution, whichever is applicable, for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the municipality or instrumentality from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the municipality or instrumentality in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan and shall remain subject to the provisions of the Agreement with the State Agency, as provided in Section 7-170, for Social Security purposes to the extent permitted under federal law. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any other mandatory provision of the existing retirement plan.

(40 ILCS 5/8-101.5 new)

Sec. 8-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the city from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/9-101.5 new)

Sec. 9-101.5. Alternative retirement plan; local control of benefits.

(a) The county board may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article. An alternative retirement plan established under this Section shall not apply to Article 10.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the county from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the county in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/10-101.5 new)

Sec. 10-101.5. Alternative retirement plan; local control of benefits.

(a) The district may, at any time on or after the effective date of this Section, provide by resolution for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the district from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the district in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/10-103) (from Ch. 108 1/2, par. 10-103)

Sec. 10-103. Members, contributions and benefits. Except for alternative retirement plans established under Section 10-101.5, the The board shall cause the same deductions to be made from salaries and, subject to Section 10-109, allow the same annuities, refunds and benefits for employees of the district as are made and allowed for employees of the county.

(Source: P.A. 95-1036, eff. 2-17-09.)

(40 ILCS 5/11-101.5 new)

Sec. 11-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the city from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/12-101.5 new)

Sec. 12-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the city from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/13-101.5 new)

Sec. 13-101.5. Alternative retirement plan; local control of benefits.

(a) The Metropolitan Water Reclamation District of Greater Chicago may, at any time on or after the effective date of this Section, provide by ordinance for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the Metropolitan Water Reclamation District of Greater Chicago from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the city in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/15-101.5 new)

Sec. 15-101.5. Alternative retirement plan; local control of benefits by community colleges.

(a) The board of trustees of a community college district that is an employer under this Article may, at any time on or after the effective date of this Section, provide by resolution for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the community college district from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. The alternative retirement plan provided by the community college district shall be funded with contributions from that community college district and its employees who participate in the alternative retirement plan. In no event may the community college district in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be participants in the System who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/16-101.5 new)

Sec. 16-101.5. Alternative retirement plan; local control of benefits by school districts.

(a) The governing body of a school district that is an employer under this Article may, at any time on or after the effective date of this Section, provide by resolution for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new teachers. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the school district from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. The alternative retirement plan provided by the school district shall be funded with contributions from that school district and its employees who participate in the alternative retirement plan. In no event may the school district in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be participants in the System who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

(40 ILCS 5/17-101.5 new)

Sec. 17-101.5. Alternative retirement plan; local control of benefits.

(a) The city council may, at any time on or after the effective date of this Section, provide by resolution for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for eligible new teachers. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the city or the Board of Education from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. The alternative retirement plan provided by the city shall be funded with contributions from the city or the Board of Education, and the teachers who participate in the alternative retirement plan. In no event may the city or the Board of Education in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any mandatory provisions of the existing retirement plan.

Section 15. The Illinois Educational Labor Relations Act is amended by adding Section 10.6 as follows:

(115 ILCS 5/10.6 new)

Sec. 10.6. Mandatory collective bargaining regarding alternative retirement plans not required. Notwithstanding any other provision of this Act, employers shall not be subject to mandatory collective bargaining with regard to the adoption or implementation of an alternative retirement plan authorized by this amendatory Act of the 99th General Assembly.