96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6843

 

Introduced , by Rep. Raymond Poe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
30 ILCS 805/8.34 new

    Amends the Illinois Pension Code, if and only if Senate Bill 1946 of the 96th General Assembly becomes law, in provisions applicable to new hires, provides that a participant is entitled to a retirement annuity beginning on the date specified by the participant in a written application only if, on that specified date, he or she has attained age 62 (rather than age 67) and has at least 10 years of service credit and removes provisions concerning entitlement to a reduced annuity. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, but no earlier than the effective date of Section 1-160 of the Illinois Pension Code added by Senate Bill 1946 of the 96th General Assembly.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. If and only if Senate Bill 1946 of the 96th
5 General Assembly becomes law, the Illinois Pension Code is
6 amended by changing Section 1-160 as follows:
 
7     (40 ILCS 5/1-160)
8     Sec. 1-160. Provisions applicable to new hires.
9     (a) The provisions of this Section apply to a person who
10 first becomes an employee and a participant under any
11 retirement system or pension fund under this Code, other than a
12 retirement system or pension fund established under Article 2,
13 3, 4, 5, 6, or 18 of this Code, on or after the effective date
14 of this amendatory Act of the 96th General Assembly
15 notwithstanding any other provision of this Code to the
16 contrary, but do not apply to any self-managed plan established
17 under this Code, to any person with respect to service as a
18 sheriff's law enforcement employee under Article 7, or to any
19 participant of the retirement plan established under Section
20 22-101.
21     (b) "Final average salary" means the average monthly salary
22 obtained by dividing the total salary of the participant during
23 the 96 consecutive months of service within the last 120 months

 

 

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1 of service in which the total salary was the highest by the
2 number of months of service in that period; however, the annual
3 final average salary may not exceed $106,800, as automatically
4 increased by the lesser of 3% or one-half of the annual
5 increase in the consumer price index-u during the preceding
6 12-month calendar year. For the purposes of a person who first
7 becomes an employee of any retirement system or pension fund to
8 which this Section applies on or after the effective date of
9 this amendatory Act of the 96th General Assembly, in this Code,
10 "final average salary" shall be substituted for the following:
11         (1) In Articles 7 (except for service as sheriff's law
12     enforcement employees) and 15, "final rate of earnings".
13         (2) In Articles 8, 9, 10, 11, and 12, "highest average
14     annual salary for any 4 consecutive years within the last
15     10 years of service immediately preceding the date of
16     withdrawal".
17         (3) In Article 13, "average final salary".
18         (4) In Article 14, "final average compensation".
19         (5) In Article 17, "average salary".
20         (6) In Section 22-207, "wages or salary received by him
21     at the date of retirement or discharge".
22     For the purposes of this Section, "consumer price index-u"
23 means the index published by the Bureau of Labor Statistics of
24 the United States Department of Labor that measures the average
25 change in prices of goods and services purchased by all urban
26 consumers, United States city average, all items, 1982-84 =

 

 

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1 100. The new amount resulting from each annual adjustment shall
2 be determined by the Public Pension Division of the Department
3 of Insurance and made available to the boards of the retirement
4 systems and pension funds.
5     (c) A participant is entitled to a retirement annuity
6 beginning on the date specified by the participant in a written
7 application only if, on that specified date, he or she has
8 attained age 62 67 and has at least 10 years of service credit.
9     A participant who has attained age 62 and has at least 10
10 years of service credit may elect to receive the lower
11 retirement annuity provided in subsection (d) of this Section.
12     (d) The retirement annuity of a participant who is retiring
13 after attaining age 62 with at least 10 years of service credit
14 shall be reduced by one-half of 1% for each month that the
15 member's age is under age 67.
16     (d) (e) Any retirement annuity or supplemental annuity
17 shall be subject to annual increases upon (1) attainment of age
18 62 67 or (2) the first anniversary of the commencement of the
19 annuity, whichever occurs later. Each annual increase shall be
20 calculated at 3% or one-half the annual increase in the
21 consumer price index-u for the preceding calendar year,
22 whichever is less, of the originally granted retirement
23 annuity. If the increase in the consumer price index-u for the
24 preceding calendar year is zero or there is a decrease, then
25 the annuity shall not be increased.
26     (e) (f) The initial survivor's annuity of an otherwise

 

 

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1 eligible survivor of a participant who first becomes a
2 participant on or after the effective date of this amendatory
3 Act of the 96th General Assembly shall be in the amount of 66
4 2/3% of the participant's earned retirement annuity at the date
5 of death and shall be increased (1) on each January 1 occurring
6 on or after the commencement of the annuity if the deceased
7 member died while receiving a retirement annuity or (2) in
8 other cases, on each January 1 occurring after the first
9 anniversary of the commencement of the annuity. Each annual
10 increase shall be calculated at 3% or one-half the annual
11 increase in the consumer price index-u for the preceding
12 calendar year, whichever is less, of the originally granted
13 survivor's annuity. If the increase in the consumer price
14 index-u for the preceding calendar year is zero or there is a
15 decrease, then the annuity shall not be increased.
16     (f) (g) The benefits in Section 14-110 apply only if the
17 person is a State policeman, a fire fighter in the fire
18 protection service of a department, or a security employee of
19 the Department of Corrections or the Department of Juvenile
20 Justice, as those terms are defined in subsection (b) of
21 Section 14-110. A person who meets the requirements of this
22 Section is entitled to an annuity calculated under the
23 provisions of Section 14-110, in lieu of the regular or minimum
24 retirement annuity, only if the person has withdrawn from
25 service with not less than 20 years of eligible creditable
26 service and has attained age 60, regardless of whether the

 

 

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1 attainment of age 60 occurs while the person is still in
2 service.
3     (g) (h) If a person who first becomes a member of a
4 retirement system or pension fund subject to this Section on or
5 after the effective date of this amendatory Act of the 96th
6 General Assembly is receiving a retirement annuity or
7 retirement pension under that system or fund and accepts
8 employment in a position covered under the same Article or any
9 other Article of this Code on a full-time basis, then the
10 person's retirement annuity or retirement pension under that
11 system or fund shall be suspended during that employment. Upon
12 termination of that employment, the person's retirement
13 annuity or retirement pension payments shall resume and, if
14 appropriate, be recalculated under the applicable provisions
15 of this Code.
16     (h) (i) Notwithstanding any other provision of this
17 Section, a person who first becomes a participant of the
18 retirement system established under Article 15 on or after the
19 effective date of this amendatory Act of the 96th General
20 Assembly shall have the option to enroll in the self-managed
21 plan created under Section 15-158.2 of this Code.
22     (i) (j) In the case of a conflict between the provisions of
23 this Section and any other provision of this Code, the
24 provisions of this Section shall control.
25 (Source: 09600SB1946enr.)
 

 

 

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1     Section 90. The State Mandates Act is amended by adding
2 Section 8.34 as follows:
 
3     (30 ILCS 805/8.34 new)
4     Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8
5 of this Act, no reimbursement by the State is required for the
6 implementation of any mandate created by this amendatory Act of
7 the 96th General Assembly.
 
8     Section 95. No acceleration or delay. Where this Act makes
9 changes in a statute that is represented in this Act by text
10 that is not yet or no longer in effect (for example, a Section
11 represented by multiple versions), the use of that text does
12 not accelerate or delay the taking effect of (i) the changes
13 made by this Act or (ii) provisions derived from any other
14 Public Act.
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law, but no earlier than the effective date of Section
17 1-160 of the Illinois Pension Code added by Senate Bill 1946 of
18 the 96th General Assembly.