103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5798

 

Introduced 4/2/2024, by Rep. Blaine Wilhour

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-163 new
40 ILCS 5/14-152.1
40 ILCS 5/15-198
40 ILCS 5/16-203
30 ILCS 805/8.48 new

    Amends the General Provisions Article of the Illinois Pension Code. Defines "eligible Tier 2 member" as a member who first became a member under a retirement system or pension fund established under the Code on or after January 1, 2011 and whose service under the applicable Article is not eligible for Social Security coverage. Defines "hypothetical Social Security benefit" as the value of the Social Security benefit an eligible Tier 2 member would receive if the eligible Tier 2 member's service had been eligible for Social Security coverage. Provides that if an eligible Tier 2 member would receive a pension benefit that is less than the eligible Tier 2 member's hypothetical Social Security benefit, then the eligible Tier 2 member's pension benefit shall be increased to the amount of the hypothetical Social Security benefit plus $1. Provides that the determination shall be made on an annual basis, and the amount of the pension benefit shall be adjusted annually. In the State Employees, State Universities, and Downstate Teachers Articles, provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement by the State.


LRB103 40085 RPS 71606 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB5798LRB103 40085 RPS 71606 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 adding
5Section 1-163 and by changing Sections 14-152.1, 15-198, and
616-203 as follows:
 
7    (40 ILCS 5/1-163 new)
8    Sec. 1-163. Minimum pension benefit for noncovered
9employees.
10    (a) In this Section:
11    "Eligible Tier 2 member" means a member who first became a
12member or participant of a retirement system or pension fund
13established under this Code on or after January 1, 2011 and
14whose service under the applicable Article is not eligible for
15Social Security coverage.
16    "Hypothetical Social Security benefit" means the value of
17the Social Security benefit an eligible Tier 2 member would
18receive if the eligible Tier 2 member's service had been
19eligible for Social Security coverage.
20    (b) If an eligible Tier 2 member would receive a pension
21benefit that is less than the eligible Tier 2 member's
22hypothetical Social Security benefit, then the eligible Tier 2
23member's pension benefit shall be increased to the amount of

 

 

HB5798- 2 -LRB103 40085 RPS 71606 b

1the hypothetical Social Security benefit plus $1. This
2determination shall be made on an annual basis, and the amount
3of the pension benefit shall be adjusted annually.
 
4    (40 ILCS 5/14-152.1)
5    Sec. 14-152.1. Application and expiration of new benefit
6increases.
7    (a) As used in this Section, "new benefit increase" means
8an increase in the amount of any benefit provided under this
9Article, or an expansion of the conditions of eligibility for
10any benefit under this Article, that results from an amendment
11to this Code that takes effect after June 1, 2005 (the
12effective date of Public Act 94-4). "New benefit increase",
13however, does not include any benefit increase resulting from
14the changes made to Article 1 or this Article by Public Act
1596-37, Public Act 100-23, Public Act 100-587, Public Act
16100-611, Public Act 101-10, Public Act 101-610, Public Act
17102-210, Public Act 102-856, Public Act 102-956, or this
18amendatory Act of the 103rd General Assembly this amendatory
19Act of the 102nd General Assembly.
20    (b) Notwithstanding any other provision of this Code or
21any subsequent amendment to this Code, every new benefit
22increase is subject to this Section and shall be deemed to be
23granted only in conformance with and contingent upon
24compliance with the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

HB5798- 3 -LRB103 40085 RPS 71606 b

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

 

 

HB5798- 4 -LRB103 40085 RPS 71606 b

1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including, without limitation, a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
11101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
121-1-23; 102-956, eff. 5-27-22.)
 
13    (40 ILCS 5/15-198)
14    Sec. 15-198. Application and expiration of new benefit
15increases.
16    (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from
23the changes made to Article 1 or this Article by Public Act
24100-23, Public Act 100-587, Public Act 100-769, Public Act
25101-10, Public Act 101-610, Public Act 102-16, Public Act

 

 

HB5798- 5 -LRB103 40085 RPS 71606 b

1103-80, Public Act 103-548, or this amendatory Act of the
2103rd General Assembly or this amendatory Act of the 103rd
3General Assembly.
4    (b) Notwithstanding any other provision of this Code or
5any subsequent amendment to this Code, every new benefit
6increase is subject to this Section and shall be deemed to be
7granted only in conformance with and contingent upon
8compliance with the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the System of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the System as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection. The Commission on Government Forecasting and
16Accountability shall analyze whether adequate additional
17funding has been provided for the new benefit increase and
18shall report its analysis to the Public Pension Division of
19the Department of Insurance. A new benefit increase created by
20a Public Act that does not include the additional funding
21required under this subsection is null and void. If the Public
22Pension Division determines that the additional funding
23provided for a new benefit increase under this subsection is
24or has become inadequate, it may so certify to the Governor and
25the State Comptroller and, in the absence of corrective action
26by the General Assembly, the new benefit increase shall expire

 

 

HB5798- 6 -LRB103 40085 RPS 71606 b

1at the end of the fiscal year in which the certification is
2made.
3    (d) Every new benefit increase shall expire 5 years after
4its effective date or on such earlier date as may be specified
5in the language enacting the new benefit increase or provided
6under subsection (c). This does not prevent the General
7Assembly from extending or re-creating a new benefit increase
8by law.
9    (e) Except as otherwise provided in the language creating
10the new benefit increase, a new benefit increase that expires
11under this Section continues to apply to persons who applied
12and qualified for the affected benefit while the new benefit
13increase was in effect and to the affected beneficiaries and
14alternate payees of such persons, but does not apply to any
15other person, including, without limitation, a person who
16continues in service after the expiration date and did not
17apply and qualify for the affected benefit while the new
18benefit increase was in effect.
19(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
20103-548, eff. 8-11-23; revised 8-31-23.)
 
21    (40 ILCS 5/16-203)
22    Sec. 16-203. Application and expiration of new benefit
23increases.
24    (a) As used in this Section, "new benefit increase" means
25an increase in the amount of any benefit provided under this

 

 

HB5798- 7 -LRB103 40085 RPS 71606 b

1Article, or an expansion of the conditions of eligibility for
2any benefit under this Article, that results from an amendment
3to this Code that takes effect after June 1, 2005 (the
4effective date of Public Act 94-4). "New benefit increase",
5however, does not include any benefit increase resulting from
6the changes made to Article 1 or this Article by Public Act
795-910, Public Act 100-23, Public Act 100-587, Public Act
8100-743, Public Act 100-769, Public Act 101-10, Public Act
9101-49, Public Act 102-16, or Public Act 102-871, or this
10amendatory Act of the 103rd General Assembly.
11    (b) Notwithstanding any other provision of this Code or
12any subsequent amendment to this Code, every new benefit
13increase is subject to this Section and shall be deemed to be
14granted only in conformance with and contingent upon
15compliance with the provisions of this Section.
16    (c) The Public Act enacting a new benefit increase must
17identify and provide for payment to the System of additional
18funding at least sufficient to fund the resulting annual
19increase in cost to the System as it accrues.
20    Every new benefit increase is contingent upon the General
21Assembly providing the additional funding required under this
22subsection. The Commission on Government Forecasting and
23Accountability shall analyze whether adequate additional
24funding has been provided for the new benefit increase and
25shall report its analysis to the Public Pension Division of
26the Department of Insurance. A new benefit increase created by

 

 

HB5798- 8 -LRB103 40085 RPS 71606 b

1a Public Act that does not include the additional funding
2required under this subsection is null and void. If the Public
3Pension Division determines that the additional funding
4provided for a new benefit increase under this subsection is
5or has become inadequate, it may so certify to the Governor and
6the State Comptroller and, in the absence of corrective action
7by the General Assembly, the new benefit increase shall expire
8at the end of the fiscal year in which the certification is
9made.
10    (d) Every new benefit increase shall expire 5 years after
11its effective date or on such earlier date as may be specified
12in the language enacting the new benefit increase or provided
13under subsection (c). This does not prevent the General
14Assembly from extending or re-creating a new benefit increase
15by law.
16    (e) Except as otherwise provided in the language creating
17the new benefit increase, a new benefit increase that expires
18under this Section continues to apply to persons who applied
19and qualified for the affected benefit while the new benefit
20increase was in effect and to the affected beneficiaries and
21alternate payees of such persons, but does not apply to any
22other person, including, without limitation, a person who
23continues in service after the expiration date and did not
24apply and qualify for the affected benefit while the new
25benefit increase was in effect.
26(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;

 

 

HB5798- 9 -LRB103 40085 RPS 71606 b

1102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
26-30-23.)
 
3    Section 90. The State Mandates Act is amended by adding
4Section 8.48 as follows:
 
5    (30 ILCS 805/8.48 new)
6    Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
78 of this Act, no reimbursement by the State is required for
8the implementation of any mandate created by this amendatory
9Act of the 103rd General Assembly.