102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3954

 

Introduced 1/21/2022, by Sen. Dave Syverson

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-132  from Ch. 108 1/2, par. 16-132
40 ILCS 5/16-203

    Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that the effective date of a retirement annuity may be after the date of official termination of employment but before de minimis posttermination employment as long as such employment is (1) less than 10 days in length, (2) less than $2,000 in compensation, and (3) is deemed de minimis by the System. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.


LRB102 23200 RPS 32362 b

 

 

A BILL FOR

 

SB3954LRB102 23200 RPS 32362 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 16-132 and 16-203 as follows:
 
6    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 16-132. Retirement annuity eligibility. A member who
10has at least 20 years of creditable service is entitled to a
11retirement annuity upon or after attainment of age 55. A
12member who has at least 10 but less than 20 years of creditable
13service is entitled to a retirement annuity upon or after
14attainment of age 60. A member who has at least 5 but less than
1510 years of creditable service is entitled to a retirement
16annuity upon or after attainment of age 62. A member who (i)
17has earned during the period immediately preceding the last
18day of service at least one year of contributing creditable
19service as an employee of a department as defined in Section
2014-103.04, (ii) has earned at least 5 years of contributing
21creditable service as an employee of a department as defined
22in Section 14-103.04, and (iii) retires on or after January 1,
232001 is entitled to a retirement annuity upon or after

 

 

SB3954- 2 -LRB102 23200 RPS 32362 b

1attainment of an age which, when added to the number of years
2of his or her total creditable service, equals at least 85.
3Portions of years shall be counted as decimal equivalents.
4    A member who is eligible to receive a retirement annuity
5of at least 74.6% of final average salary and will attain age
655 on or before December 31 during the year which commences on
7July 1 shall be deemed to attain age 55 on the preceding June
81.
9    A member meeting the above eligibility conditions is
10entitled to a retirement annuity upon written application to
11the board setting forth the date the member wishes the
12retirement annuity to commence. However, the effective date of
13the retirement annuity shall be no earlier than the day
14following the last day of creditable service, regardless of
15the date of official termination of employment; except that
16the effective date of a retirement annuity may be after the
17date of official termination of employment but before de
18minimis posttermination employment as long as such employment
19is (1) less than 10 days in length, (2) less than $2,000 in
20compensation, and (3) is deemed de minimis by the System.
21    To be eligible for a retirement annuity, a member shall
22not be employed as a teacher in the schools included under this
23System or under Article 17, except (i) as provided in Section
2416-118 or 16-150.1, (ii) if the member is disabled (in which
25event, eligibility for salary must cease), or (iii) if the
26System is required by federal law to commence payment due to

 

 

SB3954- 3 -LRB102 23200 RPS 32362 b

1the member's age; the changes to this sentence made by this
2amendatory Act of the 93rd General Assembly apply without
3regard to whether the member terminated employment before or
4after its effective date.
5(Source: P.A. 93-320, eff. 7-23-03.)
 
6    (40 ILCS 5/16-203)
7    Sec. 16-203. Application and expiration of new benefit
8increases.
9    (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after June 1, 2005 (the
14effective date of Public Act 94-4). "New benefit increase",
15however, does not include any benefit increase resulting from
16the changes made to Article 1 or this Article by Public Act
1795-910, Public Act 100-23, Public Act 100-587, Public Act
18100-743, Public Act 100-769, Public Act 101-10, or Public Act
19101-49, Public Act 102-16, or this amendatory Act of the 102nd
20General Assembly this amendatory Act of the 102nd General
21Assembly.
22    (b) Notwithstanding any other provision of this Code or
23any subsequent amendment to this Code, every new benefit
24increase is subject to this Section and shall be deemed to be
25granted only in conformance with and contingent upon

 

 

SB3954- 4 -LRB102 23200 RPS 32362 b

1compliance with the provisions of this Section.
2    (c) The Public Act enacting a new benefit increase must
3identify and provide for payment to the System of additional
4funding at least sufficient to fund the resulting annual
5increase in cost to the System as it accrues.
6    Every new benefit increase is contingent upon the General
7Assembly providing the additional funding required under this
8subsection. The Commission on Government Forecasting and
9Accountability shall analyze whether adequate additional
10funding has been provided for the new benefit increase and
11shall report its analysis to the Public Pension Division of
12the Department of Insurance. A new benefit increase created by
13a Public Act that does not include the additional funding
14required under this subsection is null and void. If the Public
15Pension Division determines that the additional funding
16provided for a new benefit increase under this subsection is
17or has become inadequate, it may so certify to the Governor and
18the State Comptroller and, in the absence of corrective action
19by the General Assembly, the new benefit increase shall expire
20at the end of the fiscal year in which the certification is
21made.
22    (d) Every new benefit increase shall expire 5 years after
23its effective date or on such earlier date as may be specified
24in the language enacting the new benefit increase or provided
25under subsection (c). This does not prevent the General
26Assembly from extending or re-creating a new benefit increase

 

 

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1by law.
2    (e) Except as otherwise provided in the language creating
3the new benefit increase, a new benefit increase that expires
4under this Section continues to apply to persons who applied
5and qualified for the affected benefit while the new benefit
6increase was in effect and to the affected beneficiaries and
7alternate payees of such persons, but does not apply to any
8other person, including, without limitation, a person who
9continues in service after the expiration date and did not
10apply and qualify for the affected benefit while the new
11benefit increase was in effect.
12(Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19;
13101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff.
148-20-21; revised 10-15-21.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.