102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3046

 

Introduced 1/5/2022, 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.


LRB102 19906 RPS 28683 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3046LRB102 19906 RPS 28683 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 15-134.1, 15-175, 15-181, 15-186.1, and
615-198 as follows:
 
7    (40 ILCS 5/15-134.1)  (from Ch. 108 1/2, par. 15-134.1)
8    Sec. 15-134.1. Service calculation and adjustment.
9    (a) In computing service, the following schedule shall
10govern: one month of service means a calendar month during
11which a participant (i) qualifies as an employee under Section
1215-107 for at least 15 or more days, and (ii) receives any
13earnings as an employee; 8 or more months of service during an
14academic year shall constitute a year of service; 6 or more but
15less than 8 months of service during an academic year shall
16constitute 3/4 of a year of service; 3 or more but less than 6
17months of service during an academic year shall constitute 1/2
18of a year of service; and one or more but less than 3 months of
19service during an academic year shall constitute 1/4 of a year
20of service. No more than one year of service may be granted per
21academic year, regardless of the number of hours or percentage
22of time worked.
23    (a-5) Notwithstanding subsection (a), for the purposes of

 

 

SB3046- 2 -LRB102 19906 RPS 28683 b

1computing service, one day of service in a calendar month
2shall constitute a full month of service. For a participant
3who teaches a course or courses, a participant is deemed to be
4in service until the date on which the employer requires
5grades for that course or courses to be submitted, and that
6date shall be deemed to constitute a day of service. No more
7than one year of service may be granted per academic year,
8regardless of the number of hours or percentage of time
9worked.
10    (b) In calculating a retirement annuity, if a participant
11has been employed at 1/2 time or less for 3 or more years after
12September 1, 1959, service shall be granted for such
13employment in excess of 3 years, in the proportion that the
14percentage of time employed for each such year of employment
15bears to the average annual percentage of time employed during
16the period on which the final rate of earnings is based. This
17adjustment shall not be made, however, in determining the
18eligibility for a retirement annuity, disability benefits,
19additional death benefits, or survivors' insurance. The
20percentage of time employed shall be as reported by the
21employer.
22    (c) The changes made by this amendatory Act of the 102nd
23General Assembly apply retroactively to 2 years before the
24effective date of this amendatory Act of the 102nd General
25Assembly. A participant may request that the System
26recalculate his or her service based on the changes made by

 

 

SB3046- 3 -LRB102 19906 RPS 28683 b

1this amendatory Act of the 102nd General Assembly.
2(Source: P.A. 87-8.)
 
3    (40 ILCS 5/15-175)  (from Ch. 108 1/2, par. 15-175)
4    Sec. 15-175. To provide statements.
5    To make available to the participants and annuitants a
6financial statement including a summary of the report of the
7certified public accountant; and to submit an individual
8statement specifying the accumulations to the credit, as of
9the latest date practicable, of any participant so requesting;
10and to annually provide the formula for calculating pension
11benefits to any employee who is not a full-time employee.
12(Source: Laws 1963, p. 161.)
 
13    (40 ILCS 5/15-181)  (from Ch. 108 1/2, par. 15-181)
14    Sec. 15-181. Duties of employers.
15    (a) Each employer, in preparing payroll vouchers for
16participating employees, shall indicate, in addition to other
17information: (1) the amount of employee contributions and
18survivors insurance contributions required under Section
1915-157, (2) the gross earnings payable to each employee, and
20(3) the total of all contributions required under Section
2115-157.
22    (b) Each employer, in drawing warrants or checks against
23trust or federal funds for items of salary on payroll vouchers
24certified by employers, shall draw such warrants or checks to

 

 

SB3046- 4 -LRB102 19906 RPS 28683 b

1participating employees for the amount of cash salary or wages
2specified for the period, and shall draw a warrant or check to
3this system for the total of the contributions required under
4Section 15-157. The warrant or check drawn to this system,
5together with the additional copy of the payroll supplied by
6the employer, shall be transmitted immediately to the board.
7    (c) The City of Champaign and the City of Urbana, as
8employers of persons who participate in this System pursuant
9to subsection (h) of Section 15-107, shall each collect and
10transmit to the System from each payroll the employee
11contributions required under Section 15-157, together with
12such payroll documentation as the Board may require, at the
13time that the payroll is paid.
14    (d) Each employer shall annually provide to its
15participating employees a statement of the amount of service
16the employer reported to the System for that participating
17employee during the preceding academic year.
18(Source: P.A. 90-576, eff. 3-31-98; 91-887, eff. 7-6-00.)
 
19    (40 ILCS 5/15-186.1)  (from Ch. 108 1/2, par. 15-186.1)
20    Sec. 15-186.1. Mistake in benefit. If the System
21mistakenly sets any benefit at an incorrect amount, it shall
22recalculate the benefit as soon as may be practicable after
23the mistake is discovered.
24    If the benefit was mistakenly set too low, the System
25shall make a lump sum payment to the recipient of an amount

 

 

SB3046- 5 -LRB102 19906 RPS 28683 b

1equal to the difference between the benefits that should have
2been paid and those actually paid, plus interest at the
3effective rate from the date the unpaid amounts accrued to the
4date of payment.
5    If the benefit was mistakenly set too high, the System may
6recover the amount overpaid from the recipient thereof, plus
7interest at the effective rate from the date of overpayment to
8the date of recovery, either directly or by deducting such
9amount from the remaining benefits payable to the recipient.
10However, if (1) the amount of the benefit was mistakenly set
11too high, and (2) the error was undiscovered for 3 years or
12longer, and (3) the error was not the result of incorrect
13information supplied by the affected member or beneficiary,
14then upon discovery of the mistake the benefit shall be
15adjusted to the correct level, but the recipient of the
16benefit need not repay to the System the excess amounts
17received in error.
18    If a person disputes the amount of any benefit payment,
19the amount of service credit the benefit was based on, the
20formula used to calculate the benefit, the calculation of the
21benefit, or the information provided to the System by the
22employer, he or she may, within 90 days after the commencement
23of the benefit, apply to the System in writing for a
24recalculation.
25(Source: P.A. 93-347, eff. 7-24-03.)
 

 

 

SB3046- 6 -LRB102 19906 RPS 28683 b

1    (40 ILCS 5/15-198)
2    Sec. 15-198. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after June 1, 2005 (the
9effective date of Public Act 94-4). "New benefit increase",
10however, does not include any benefit increase resulting from
11the changes made to Article 1 or this Article by Public Act
12100-23, Public Act 100-587, Public Act 100-769, Public Act
13101-10, Public Act 101-610, Public Act 102-16, or this
14amendatory Act of the 102nd General Assembly or this
15amendatory Act of the 102nd General Assembly.
16    (b) Notwithstanding any other provision of this Code or
17any subsequent amendment to this Code, every new benefit
18increase is subject to this Section and shall be deemed to be
19granted only in conformance with and contingent upon
20compliance with the provisions of this Section.
21    (c) The Public Act enacting a new benefit increase must
22identify and provide for payment to the System of additional
23funding at least sufficient to fund the resulting annual
24increase in cost to the System as it accrues.
25    Every new benefit increase is contingent upon the General
26Assembly providing the additional funding required under this

 

 

SB3046- 7 -LRB102 19906 RPS 28683 b

1subsection. The Commission on Government Forecasting and
2Accountability shall analyze whether adequate additional
3funding has been provided for the new benefit increase and
4shall report its analysis to the Public Pension Division of
5the Department of Insurance. A new benefit increase created by
6a Public Act that does not include the additional funding
7required under this subsection is null and void. If the Public
8Pension Division determines that the additional funding
9provided for a new benefit increase under this subsection is
10or has become inadequate, it may so certify to the Governor and
11the State Comptroller and, in the absence of corrective action
12by the General Assembly, the new benefit increase shall expire
13at the end of the fiscal year in which the certification is
14made.
15    (d) Every new benefit increase shall expire 5 years after
16its effective date or on such earlier date as may be specified
17in the language enacting the new benefit increase or provided
18under subsection (c). This does not prevent the General
19Assembly from extending or re-creating a new benefit increase
20by law.
21    (e) Except as otherwise provided in the language creating
22the new benefit increase, a new benefit increase that expires
23under this Section continues to apply to persons who applied
24and qualified for the affected benefit while the new benefit
25increase was in effect and to the affected beneficiaries and
26alternate payees of such persons, but does not apply to any

 

 

SB3046- 8 -LRB102 19906 RPS 28683 b

1other person, including, without limitation, a person who
2continues in service after the expiration date and did not
3apply and qualify for the affected benefit while the new
4benefit increase was in effect.
5(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
6101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.