Rep. Elaine Nekritz

Filed: 5/20/2015

 

 


 

 


 
09900SB0777ham001LRB099 07693 RPS 35804 a

1
AMENDMENT TO SENATE BILL 777

2    AMENDMENT NO. ______. Amend Senate Bill 777 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 15-112, 15-154, 15-157, 16-132, 16-155, and
616-169.1 and by adding Sections 2-139.1, 14-135.11, 15-126.2,
7and 16-181.4 as follows:
 
8    (40 ILCS 5/2-139.1 new)
9    Sec. 2-139.1. To request information. To request from any
10member, annuitant, beneficiary, or employer such information
11as is necessary for the proper administration of the System.
 
12    (40 ILCS 5/14-135.11 new)
13    Sec. 14-135.11. To request information. To request from any
14member, annuitant, beneficiary, or employer such information
15as is necessary for the proper administration of the System.
 

 

 

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1    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 15-112. Final rate of earnings. "Final rate of
5earnings":
6    (a) This subsection (a) applies only to a Tier 1 member.
7    For an employee who is paid on an hourly basis or who
8receives an annual salary in installments during 12 months of
9each academic year, the average annual earnings during the 48
10consecutive calendar month period ending with the last day of
11final termination of employment or the 4 consecutive academic
12years of service in which the employee's earnings were the
13highest, whichever is greater. For any other employee, the
14average annual earnings during the 4 consecutive academic years
15of service in which his or her earnings were the highest. For
16an employee with less than 48 months or 4 consecutive academic
17years of service, the average earnings during his or her entire
18period of service. The earnings of an employee with more than
1936 months of service under item (a) of Section 15-113.1 prior
20to the date of becoming a participant are, for such period,
21considered equal to the average earnings during the last 36
22months of such service.
23    (b) This subsection (b) applies to a Tier 2 member.
24    For an employee who is paid on an hourly basis or who
25receives an annual salary in installments during 12 months of

 

 

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1each academic year, the average annual earnings obtained by
2dividing by 8 the total earnings of the employee during the 96
3consecutive months in which the total earnings were the highest
4within the last 120 months prior to termination.
5    For any other employee, the average annual earnings during
6the 8 consecutive academic years within the 10 years prior to
7termination in which the employee's earnings were the highest.
8For an employee with less than 96 consecutive months or 8
9consecutive academic years of service, whichever is necessary,
10the average earnings during his or her entire period of
11service.
12    (c) For an employee on leave of absence with pay, or on
13leave of absence without pay who makes contributions during
14such leave, earnings are assumed to be equal to the basic
15compensation on the date the leave began.
16    (d) For an employee on disability leave, earnings are
17assumed to be equal to the basic compensation on the date
18disability occurs or the average earnings during the 24 months
19immediately preceding the month in which disability occurs,
20whichever is greater.
21    (e) For a Tier 1 member who retires on or after the
22effective date of this amendatory Act of 1997 with at least 20
23years of service as a firefighter or police officer under this
24Article, the final rate of earnings shall be the annual rate of
25earnings received by the participant on his or her last day as
26a firefighter or police officer under this Article, if that is

 

 

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1greater than the final rate of earnings as calculated under the
2other provisions of this Section.
3    (f) If a Tier 1 member is an employee for at least 6 months
4during the academic year in which his or her employment is
5terminated, the annual final rate of earnings shall be 25% of
6the sum of (1) the annual basic compensation for that year, and
7(2) the amount earned during the 36 months immediately
8preceding that year, if this is greater than the final rate of
9earnings as calculated under the other provisions of this
10Section.
11    (g) In the determination of the final rate of earnings for
12an employee, that part of an employee's earnings for any
13academic year beginning after June 30, 1997, which exceeds the
14employee's earnings with that employer for the preceding year
15by more than 20 percent shall be excluded; in the event that an
16employee has more than one employer this limitation shall be
17calculated separately for the earnings with each employer. In
18making such calculation, only the basic compensation of
19employees shall be considered, without regard to vacation or
20overtime or to contracts for summer employment.
21    (h) The following are not considered as earnings in
22determining final rate of earnings: (1) severance or separation
23pay, (2) retirement pay, (3) payment for unused sick leave, and
24(4) payments from an employer for the period used in
25determining final rate of earnings for any purpose other than
26(i) services rendered, (ii) leave of absence or vacation

 

 

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1granted during that period, and (iii) vacation of up to 56 work
2days allowed upon termination of employment; except that, if
3the benefit has been collectively bargained between the
4employer and the recognized collective bargaining agent
5pursuant to the Illinois Educational Labor Relations Act,
6payment received during a period of up to 2 academic years for
7unused sick leave may be considered as earnings in accordance
8with the applicable collective bargaining agreement, subject
9to the 20% increase limitation of this Section. Any unused sick
10leave considered as earnings under this Section shall not be
11taken into account in calculating service credit under Section
1215-113.4.
13    (i) Intermittent periods of service shall be considered as
14consecutive in determining final rate of earnings.
15(Source: P.A. 98-92, eff. 7-16-13.)
 
16    (40 ILCS 5/15-126.2 new)
17    Sec. 15-126.2. Plan year. "Plan year": The 12-month period
18beginning on July 1 in any year, and ending on June 30 of the
19succeeding year.
 
20    (40 ILCS 5/15-154)  (from Ch. 108 1/2, par. 15-154)
21    Sec. 15-154. Refunds.
22    (a) A participant whose status as an employee is
23terminated, regardless of cause, or who has been on lay off
24status for more than 120 days, and who is not on leave of

 

 

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1absence, is entitled to a refund of contributions upon
2application; except that not more than one such refund
3application may be made during any academic year.
4    Except as set forth in subsections (a-1) and (a-2), the
5refund shall be the sum of the accumulated normal, additional,
6and survivors insurance contributions, plus the entire
7contribution made by the participant under Section 15-113.3,
8less the amount of interest credited on these contributions
9each year in excess of 4 1/2% of the amount on which interest
10was calculated.
11    (a-1) A person who elects, in accordance with the
12requirements of Section 15-134.5, to participate in the
13portable benefit package and who becomes a participating
14employee under that retirement program upon the conclusion of
15the one-year waiting period applicable to the portable benefit
16package election shall have his or her refund calculated in
17accordance with the provisions of subsection (a-2).
18    (a-2) The refund payable to a participant described in
19subsection (a-1) shall be the sum of the participant's
20accumulated normal and additional contributions, as defined in
21Sections 15-116 and 15-117, plus the entire contribution made
22by the participant under Section 15-113.3. If the participant
23terminates with 5 or more years of service for employment as
24defined in Section 15-113.1, he or she shall also be entitled
25to a distribution of employer contributions in an amount equal
26to the sum of the accumulated normal and additional

 

 

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1contributions, as defined in Sections 15-116 and 15-117.
2    (b) Upon acceptance of a refund, the participant forfeits
3all accrued rights and credits in the System, and if
4subsequently reemployed, the participant shall be considered a
5new employee subject to all the qualifying conditions for
6participation and eligibility for benefits applicable to new
7employees. If such person again becomes a participating
8employee and continues as such for 2 years, or is employed by
9an employer and participates for at least 2 years in the
10Federal Civil Service Retirement System, all such rights,
11credits, and previous status as a participant shall be restored
12upon repayment of the amount of the refund, together with
13compound interest thereon from the date the refund was issued
14received to the date of repayment at the rate of 6% per annum
15through August 31, 1982, and at the effective rates after that
16date. When a participant in the portable benefit package who
17received a refund which included a distribution of employer
18contributions repays a refund pursuant to this Section,
19one-half of the amount repaid shall be deemed the member's
20reinstated accumulated normal and additional contributions and
21the other half shall be allocated as an employer contribution
22to the System, except that any amount repaid for previously
23purchased military service credit under Section 15-113.3 shall
24be accounted for as such.
25    (c) If a participant covered under the traditional benefit
26package has made survivors insurance contributions, but has no

 

 

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1survivors insurance beneficiary upon retirement, he or she
2shall be entitled to elect a refund of the accumulated
3survivors insurance contributions, or to elect an additional
4annuity the value of which is equal to the accumulated
5survivors insurance contributions. This election must be made
6prior to the date the person's retirement annuity is approved
7by the System.
8    (d) A participant, upon application, is entitled to a
9refund of his or her accumulated additional contributions
10attributable to the additional contributions described in the
11last sentence of subsection (c) of Section 15-157. Upon the
12acceptance of such a refund of accumulated additional
13contributions, the participant forfeits all rights and credits
14which may have accrued because of such contributions.
15    (e) A participant who terminates his or her employee status
16and elects to waive service credit under Section 15-154.2, is
17entitled to a refund of the accumulated normal, additional and
18survivors insurance contributions, if any, which were credited
19the participant for this service, or to an additional annuity
20the value of which is equal to the accumulated normal,
21additional and survivors insurance contributions, if any;
22except that not more than one such refund application may be
23made during any academic year. Upon acceptance of this refund,
24the participant forfeits all rights and credits accrued because
25of this service.
26    (f) If a police officer or firefighter receives a

 

 

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1retirement annuity under Rule 1 or 3 of Section 15-136, he or
2she shall be entitled at retirement to a refund of the
3difference between his or her accumulated normal contributions
4and the normal contributions which would have accumulated had
5such person filed a waiver of the retirement formula provided
6by Rule 4 of Section 15-136.
7    (g) If, at the time of retirement, a participant would be
8entitled to a retirement annuity under Rule 1, 2, 3, 4, or 5 of
9Section 15-136, or under Section 15-136.4, that exceeds the
10maximum specified in clause (1) of subsection (c) of Section
1115-136, he or she shall be entitled to a refund of the employee
12contributions, if any, paid under Section 15-157 after the date
13upon which continuance of such contributions would have
14otherwise caused the retirement annuity to exceed this maximum,
15plus compound interest at the effective rates.
16(Source: P.A. 92-16, eff. 6-28-01; 92-424, eff. 8-17-01;
1793-347, eff. 7-24-03.)
 
18    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
19    (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21    Sec. 15-157. Employee Contributions.
22    (a) Each participating employee shall make contributions
23towards the retirement benefits payable under the retirement
24program applicable to the employee from each payment of
25earnings applicable to employment under this system on and

 

 

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1after the date of becoming a participant as follows: Prior to
2September 1, 1949, 3 1/2% of earnings; from September 1, 1949
3to August 31, 1955, 5%; from September 1, 1955 to August 31,
41969, 6%; from September 1, 1969, 6 1/2%. These contributions
5are to be considered as normal contributions for purposes of
6this Article.
7    Each participant who is a police officer or firefighter
8shall make normal contributions of 8% of each payment of
9earnings applicable to employment as a police officer or
10firefighter under this system on or after September 1, 1981,
11unless he or she files with the board within 60 days after the
12effective date of this amendatory Act of 1991 or 60 days after
13the board receives notice that he or she is employed as a
14police officer or firefighter, whichever is later, a written
15notice waiving the retirement formula provided by Rule 4 of
16Section 15-136. This waiver shall be irrevocable. If a
17participant had met the conditions set forth in Section
1815-132.1 prior to the effective date of this amendatory Act of
191991 but failed to make the additional normal contributions
20required by this paragraph, he or she may elect to pay the
21additional contributions plus compound interest at the
22effective rate. If such payment is received by the board, the
23service shall be considered as police officer service in
24calculating the retirement annuity under Rule 4 of Section
2515-136. While performing service described in clause (i) or
26(ii) of Rule 4 of Section 15-136, a participating employee

 

 

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1shall be deemed to be employed as a firefighter for the purpose
2of determining the rate of employee contributions under this
3Section.
4    (b) Starting September 1, 1969, each participating
5employee shall make additional contributions of 1/2 of 1% of
6earnings to finance a portion of the cost of the annual
7increases in retirement annuity provided under Section 15-136,
8except that with respect to participants in the self-managed
9plan this additional contribution shall be used to finance the
10benefits obtained under that retirement program.
11    (c) In addition to the amounts described in subsections (a)
12and (b) of this Section, each participating employee shall make
13contributions of 1% of earnings applicable under this system on
14and after August 1, 1959. The contributions made under this
15subsection (c) shall be considered as survivor's insurance
16contributions for purposes of this Article if the employee is
17covered under the traditional benefit package, and such
18contributions shall be considered as additional contributions
19for purposes of this Article if the employee is participating
20in the self-managed plan or has elected to participate in the
21portable benefit package and has completed the applicable
22one-year waiting period. Contributions in excess of $80 during
23any fiscal year beginning before August 31, 1969 and in excess
24of $120 during any fiscal year thereafter until September 1,
251971 shall be considered as additional contributions for
26purposes of this Article.

 

 

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1    (d) If the board by board rule so permits and subject to
2such conditions and limitations as may be specified in its
3rules, a participant may make other additional contributions of
4such percentage of earnings or amounts as the participant shall
5elect in a written notice thereof received by the board.
6    (e) That fraction of a participant's total accumulated
7normal contributions, the numerator of which is equal to the
8number of years of service in excess of that which is required
9to qualify for the maximum retirement annuity, and the
10denominator of which is equal to the total service of the
11participant, shall be considered as accumulated additional
12contributions. The determination of the applicable maximum
13annuity and the adjustment in contributions required by this
14provision shall be made as of the date of the participant's
15retirement.
16    (f) Notwithstanding the foregoing, a participating
17employee shall not be required to make contributions under this
18Section after the date upon which continuance of such
19contributions would otherwise cause his or her retirement
20annuity to exceed the maximum retirement annuity as specified
21in clause (1) of subsection (c) of Section 15-136.
22    (g) A participant participating employee may make
23contributions for the purchase of service credit under this
24Article; however, only a participating employee may make
25optional contributions under subsection (b) of Section
2615-157.1 of this Article.

 

 

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1    (h) A Tier 2 member shall not make contributions on
2earnings that exceed the limitation as prescribed under
3subsection (b) of Section 15-111 of this Article .
4(Source: P.A. 98-92, eff. 7-16-13.)
 
5    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
6    (Text of Section WITHOUT the changes made by P.A. 98-599,
7which has been held unconstitutional)
8    Sec. 16-132. Retirement annuity eligibility. A member who
9has at least 20 years of creditable service is entitled to a
10retirement annuity upon or after attainment of age 55. A member
11who has at least 10 but less than 20 years of creditable
12service is entitled to a retirement annuity upon or after
13attainment of age 60. A member who has at least 5 but less than
1410 years of creditable service is entitled to a retirement
15annuity upon or after attainment of age 62. A member who (i)
16has earned during the period immediately preceding the last day
17of service at least one year of contributing creditable service
18as an employee of a department as defined in Section 14-103.04,
19(ii) has earned at least 5 years of contributing creditable
20service as an employee of a department as defined in Section
2114-103.04, and (iii) retires on or after January 1, 2001 is
22entitled to a retirement annuity upon or after attainment of an
23age which, when added to the number of years of his or her
24total creditable service, equals at least 85. Portions of years
25shall be counted as decimal equivalents.

 

 

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1    A member who is eligible to receive a retirement annuity of
2at least 74.6% of final average salary and will attain age 55
3on or before December 31 during the year which commences on
4July 1 shall be deemed to attain age 55 on the preceding June
51.
6    A member meeting the above eligibility conditions is
7entitled to a retirement annuity upon written application to
8the board setting forth the date the member wishes the
9retirement annuity to commence. However, the effective date of
10the retirement annuity shall be (i) no earlier than the day
11following the last day of creditable service, regardless of the
12date of official termination of employment, and (ii) in the
13case of a member who is not eligible to retire on the effective
14date of this amendatory Act of the 99th General Assembly, no
15more than 2 years before the date of receipt by the System of
16the application for retirement.
17    For the purpose of Section 1-103.1, the change to this
18Section made by this amendatory Act of the 99th General
19Assembly is limited to annuities granted on or after the
20effective date of this amendatory Act, without regard to
21whether the member is in service on or after that effective
22date.
23    To be eligible for a retirement annuity, a member shall not
24be employed as a teacher in the schools included under this
25System or under Article 17, except (i) as provided in Section
2616-118 or 16-150.1, (ii) if the member is disabled (in which

 

 

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1event, eligibility for salary must cease), or (iii) if the
2System is required by federal law to commence payment due to
3the member's age; the changes to this sentence made by this
4amendatory Act of the 93rd General Assembly apply without
5regard to whether the member terminated employment before or
6after its effective date.
7(Source: P.A. 93-320, eff. 7-23-03.)
 
8    (40 ILCS 5/16-155)  (from Ch. 108 1/2, par. 16-155)
9    Sec. 16-155. Report to system and payment of deductions.
10    (a) The governing body of each school district shall make
11two deposits each month. The deposit for member contributions
12for salary paid between the first and the fifteenth of the
13month is due by the 25th of the month. The deposit of member
14contributions for salary paid between the sixteenth and last
15day of the month is due by the 10th of the following month. All
16required contributions for salary earned during a school term
17are due by July 10 next following the close of such school
18term.
19    The governing body of each State institution coming under
20this retirement system, the State Comptroller or other State
21officer certifying payroll vouchers including payments of
22salary or wages to teachers, and any other employer of
23teachers, shall, monthly, forward to the secretary of the
24retirement system the member contributions required under this
25Article.

 

 

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1    Each employer specified above shall, prior to August 15 of
2each year, forward to the System a detailed statement, verified
3in all cases of school districts by the secretary or clerk of
4the district, of the amounts so contributed since the period
5covered by the last previous annual statement, together with
6required contributions not yet forwarded, such payments being
7payable to the System.
8    The board may prescribe rules governing the form, content,
9investigation, control, and supervision of such statements and
10may establish additional interim employer reporting
11requirements as the Board deems necessary. If no teacher in a
12school district comes under the provisions of this Article, the
13governing body of the district shall so state under the oath of
14its secretary to this system, and shall at the same time
15forward a copy of the statement to the regional superintendent
16of schools.
17    (b) If the governing body of an employer that is not a
18State agency fails to forward such required contributions
19within the time permitted in subsection (a) above, the System
20shall notify the employer of an additional amount due, equal to
21the greater of the following: (1) an amount representing the
22interest lost by the system due to late forwarding of
23contributions, calculated for the number of days which the
24employer is late in forwarding contributions at a rate of
25interest prescribed by the board, based on its investment
26experience; or (2) $50.

 

 

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1    (c) If the system, on August 15, is not in receipt of the
2detailed statements required under this Section of any school
3district or other employing unit, such school district or other
4employing unit shall pay to the system an amount equal to $250
5for each day that elapses from August 15, until the day such
6statement is filed with the system.
7(Source: P.A. 90-448, eff. 8-16-97.)
 
8    (40 ILCS 5/16-169.1)
9    Sec. 16-169.1. Testimony and the production of records. The
10secretary of the Board shall have the power to issue subpoenas
11to compel the attendance of witnesses and the production of
12documents and records, including law enforcement records
13maintained by law enforcement agencies, in conjunction with the
14determination of employer payments required under subsection
15(f) of Section 16-158, a disability claim, an administrative
16review proceeding, an attempt to obtain information to assist
17in the collection of sums due to the System, or a felony
18forfeiture investigation. The fees of witnesses for attendance
19and travel shall be the same as the fees of witnesses before
20the circuit courts of this State and shall be paid by the party
21seeking the subpoena. The Board may apply to any circuit court
22in the State for an order requiring compliance with a subpoena
23issued under this Section. Subpoenas issued under this Section
24shall be subject to applicable provisions of the Code of Civil
25Procedure.

 

 

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1(Source: P.A. 94-1057, eff. 7-31-06.)
 
2    (40 ILCS 5/16-181.4 new)
3    Sec. 16-181.4. To request information. To request such
4information from any member, annuitant, beneficiary, or
5employer as is necessary for the proper administration of the
6System.
 
7    (40 ILCS 5/16-149.6 rep.)
8    Section 10. The Illinois Pension Code is amended by
9repealing Section 16-149.6.
 
10    Section 97. Severability. The provisions of this Act are
11severable under Section 1.31 of the Statute on Statutes.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".