99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1299

 

Introduced 2/18/2015, by Sen. Kyle McCarter

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-117  from Ch. 108 1/2, par. 2-117
40 ILCS 5/14-103.05  from Ch. 108 1/2, par. 14-103.05
40 ILCS 5/15-134  from Ch. 108 1/2, par. 15-134
40 ILCS 5/16-123  from Ch. 108 1/2, par. 16-123
40 ILCS 5/18-120  from Ch. 108 1/2, par. 18-120

    Amends the Illinois Pension Code. In the General Assembly and Judges Articles, authorizes a participant to terminate his or her participation in those systems. In the Downstate Teachers, State Employees, and State Universities Articles, authorizes a person to elect not to participate or to terminate his or her participation in those systems. In all 5 systems, provides that an active participant terminating participation in the system shall be entitled to a refund of his or her contributions (other than contributions to the defined contribution plan or self-managed plan) plus interest, minus any benefits received prior to terminating participation. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1299LRB099 09521 EFG 29729 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 changing
5Sections 2-117, 14-103.05, 15-134, 16-123, and 18-120 as
6follows:
 
7    (40 ILCS 5/2-117)  (from Ch. 108 1/2, par. 2-117)
8    Sec. 2-117. Participants - Election not to participate.
9    (a) Except as provided in subsection (c), every Every
10person who was a member on November 1, 1947, or in military
11service on such date, is subject to the provisions of this
12system beginning upon such date, unless prior to such date he
13or she filed with the board a written notice of election not to
14participate.
15    Every person who becomes a member after November 1, 1947,
16and who is then not a participant becomes a participant
17beginning upon the date of becoming a member unless, within 24
18months from that date, he or she has filed with the board a
19written notice of election not to participate.
20    (b) A member who has filed notice of an election not to
21participate (and a former member who has not yet begun to
22receive a retirement annuity under this Article) may become a
23participant with respect to the period for which the member

 

 

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1elected not to participate upon filing with the board, before
2April 1, 1993, a written rescission of the election not to
3participate. Upon contributing an amount equal to the
4contributions he or she would have made as a participant from
5November 1, 1947, or the date of becoming a member, whichever
6is later, to the date of becoming a participant, with interest
7at the rate of 4% per annum until the contributions are paid,
8the participant shall receive credit for service as a member
9prior to the date of the rescission, both before and after
10November 1, 1947. The required contributions shall be made
11before commencement of the retirement annuity; otherwise no
12credit for service prior to the date of participation shall be
13granted.
14    (c) Notwithstanding any other provision of this Article, an
15active participant may terminate his or her participation in
16this System by notifying the System in writing. An active
17participant terminating participation in this System under
18this subsection shall be entitled to a refund of his or her
19contributions (other than contributions to the defined
20contribution plan under Section 2-165) plus the market rate of
21return throughout the multiple years the money was in the
22System, minus the amount of any benefits received prior to
23terminating participation.
24(Source: P.A. 86-273; 87-1265.)
 
25    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)

 

 

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1    Sec. 14-103.05. Employee.
2    (a) Except as provided in subsection (d), any Any person
3employed by a Department who receives salary for personal
4services rendered to the Department on a warrant issued
5pursuant to a payroll voucher certified by a Department and
6drawn by the State Comptroller upon the State Treasurer,
7including an elected official described in subparagraph (d) of
8Section 14-104, shall become an employee for purpose of
9membership in the Retirement System on the first day of such
10employment.
11    A person entering service on or after January 1, 1972 and
12prior to January 1, 1984 shall become a member as a condition
13of employment and shall begin making contributions as of the
14first day of employment.
15    A person entering service on or after January 1, 1984
16shall, upon completion of 6 months of continuous service which
17is not interrupted by a break of more than 2 months, become a
18member as a condition of employment. Contributions shall begin
19the first of the month after completion of the qualifying
20period.
21    A person employed by the Chicago Metropolitan Agency for
22Planning on the effective date of this amendatory Act of the
2395th General Assembly who was a member of this System as an
24employee of the Chicago Area Transportation Study and makes an
25election under Section 14-104.13 to participate in this System
26for his or her employment with the Chicago Metropolitan Agency

 

 

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1for Planning.
2    The qualifying period of 6 months of service is not
3applicable to: (1) a person who has been granted credit for
4service in a position covered by the State Universities
5Retirement System, the Teachers' Retirement System of the State
6of Illinois, the General Assembly Retirement System, or the
7Judges Retirement System of Illinois unless that service has
8been forfeited under the laws of those systems; (2) a person
9entering service on or after July 1, 1991 in a noncovered
10position; (3) a person to whom Section 14-108.2a or 14-108.2b
11applies; or (4) a person to whom subsection (a-5) of this
12Section applies.
13    (a-5) Except as provided in subsection (d), a A person
14entering service on or after December 1, 2010 and before the
15effective date of this amendatory Act of the 99th General
16Assembly shall become a member as a condition of employment and
17shall begin making contributions as of the first day of
18employment. A person serving in the qualifying period on
19December 1, 2010 will become a member on December 1, 2010 and
20shall begin making contributions as of December 1, 2010.
21    (b) The term "employee" does not include the following:
22        (1) members of the State Legislature, and persons
23    electing to become members of the General Assembly
24    Retirement System pursuant to Section 2-105;
25        (2) incumbents of offices normally filled by vote of
26    the people;

 

 

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1        (3) except as otherwise provided in this Section, any
2    person appointed by the Governor with the advice and
3    consent of the Senate unless that person elects to
4    participate in this system;
5        (3.1) any person serving as a commissioner of an ethics
6    commission created under the State Officials and Employees
7    Ethics Act unless that person elects to participate in this
8    system with respect to that service as a commissioner;
9        (3.2) any person serving as a part-time employee in any
10    of the following positions: Legislative Inspector General,
11    Special Legislative Inspector General, employee of the
12    Office of the Legislative Inspector General, Executive
13    Director of the Legislative Ethics Commission, or staff of
14    the Legislative Ethics Commission, regardless of whether
15    he or she is in active service on or after July 8, 2004
16    (the effective date of Public Act 93-685), unless that
17    person elects to participate in this System with respect to
18    that service; in this item (3.2), a "part-time employee" is
19    a person who is not required to work at least 35 hours per
20    week;
21        (3.3) any person who has made an election under Section
22    1-123 and who is serving either as legal counsel in the
23    Office of the Governor or as Chief Deputy Attorney General;
24        (4) except as provided in Section 14-108.2 or
25    14-108.2c, any person who is covered or eligible to be
26    covered by the Teachers' Retirement System of the State of

 

 

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1    Illinois, the State Universities Retirement System, or the
2    Judges Retirement System of Illinois;
3        (5) an employee of a municipality or any other
4    political subdivision of the State;
5        (6) any person who becomes an employee after June 30,
6    1979 as a public service employment program participant
7    under the Federal Comprehensive Employment and Training
8    Act and whose wages or fringe benefits are paid in whole or
9    in part by funds provided under such Act;
10        (7) enrollees of the Illinois Young Adult Conservation
11    Corps program, administered by the Department of Natural
12    Resources, authorized grantee pursuant to Title VIII of the
13    "Comprehensive Employment and Training Act of 1973", 29 USC
14    993, as now or hereafter amended;
15        (8) enrollees and temporary staff of programs
16    administered by the Department of Natural Resources under
17    the Youth Conservation Corps Act of 1970;
18        (9) any person who is a member of any professional
19    licensing or disciplinary board created under an Act
20    administered by the Department of Professional Regulation
21    or a successor agency or created or re-created after the
22    effective date of this amendatory Act of 1997, and who
23    receives per diem compensation rather than a salary,
24    notwithstanding that such per diem compensation is paid by
25    warrant issued pursuant to a payroll voucher; such persons
26    have never been included in the membership of this System,

 

 

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1    and this amendatory Act of 1987 (P.A. 84-1472) is not
2    intended to effect any change in the status of such
3    persons;
4        (10) any person who is a member of the Illinois Health
5    Care Cost Containment Council, and receives per diem
6    compensation rather than a salary, notwithstanding that
7    such per diem compensation is paid by warrant issued
8    pursuant to a payroll voucher; such persons have never been
9    included in the membership of this System, and this
10    amendatory Act of 1987 is not intended to effect any change
11    in the status of such persons;
12        (11) any person who is a member of the Oil and Gas
13    Board created by Section 1.2 of the Illinois Oil and Gas
14    Act, and receives per diem compensation rather than a
15    salary, notwithstanding that such per diem compensation is
16    paid by warrant issued pursuant to a payroll voucher;
17        (12) a person employed by the State Board of Higher
18    Education in a position with the Illinois Century Network
19    as of June 30, 2004, who remains continuously employed
20    after that date by the Department of Central Management
21    Services in a position with the Illinois Century Network
22    and participates in the Article 15 system with respect to
23    that employment;
24        (13) any person who first becomes a member of the Civil
25    Service Commission on or after January 1, 2012;
26        (14) any person, other than the Director of Employment

 

 

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1    Security, who first becomes a member of the Board of Review
2    of the Department of Employment Security on or after
3    January 1, 2012;
4        (15) any person who first becomes a member of the Civil
5    Service Commission on or after January 1, 2012;
6        (16) any person who first becomes a member of the
7    Illinois Liquor Control Commission on or after January 1,
8    2012;
9        (17) any person who first becomes a member of the
10    Secretary of State Merit Commission on or after January 1,
11    2012;
12        (18) any person who first becomes a member of the Human
13    Rights Commission on or after January 1, 2012;
14        (19) any person who first becomes a member of the State
15    Mining Board on or after January 1, 2012;
16        (20) any person who first becomes a member of the
17    Property Tax Appeal Board on or after January 1, 2012;
18        (21) any person who first becomes a member of the
19    Illinois Racing Board on or after January 1, 2012;
20        (22) any person who first becomes a member of the
21    Department of State Police Merit Board on or after January
22    1, 2012;
23        (23) any person who first becomes a member of the
24    Illinois State Toll Highway Authority on or after January
25    1, 2012; or
26        (24) any person who first becomes a member of the

 

 

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1    Illinois State Board of Elections on or after January 1,
2    2012.
3    (c) An individual who represents or is employed as an
4officer or employee of a statewide labor organization that
5represents members of this System may participate in the System
6and shall be deemed an employee, provided that (1) the
7individual has previously earned creditable service under this
8Article, (2) the individual files with the System an
9irrevocable election to become a participant within 6 months
10after the effective date of this amendatory Act of the 94th
11General Assembly, and (3) the individual does not receive
12credit for that employment under any other provisions of this
13Code. An employee under this subsection (c) is responsible for
14paying to the System both (i) employee contributions based on
15the actual compensation received for service with the labor
16organization and (ii) employer contributions based on the
17percentage of payroll certified by the board; all or any part
18of these contributions may be paid on the employee's behalf or
19picked up for tax purposes (if authorized under federal law) by
20the labor organization.
21    A person who is an employee as defined in this subsection
22(c) may establish service credit for similar employment prior
23to becoming an employee under this subsection by paying to the
24System for that employment the contributions specified in this
25subsection, plus interest at the effective rate from the date
26of service to the date of payment. However, credit shall not be

 

 

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1granted under this subsection (c) for any such prior employment
2for which the applicant received credit under any other
3provision of this Code or during which the applicant was on a
4leave of absence.
5    (d) Notwithstanding any other provision of this Article,
6beginning on the effective date of this amendatory Act of the
799th General Assembly, a person is not required, as a condition
8of employment or otherwise, to participate in this System. An
9active employee may terminate his or her participation in this
10System by notifying the System in writing. An active employee
11terminating participation in this System under this subsection
12shall be entitled to a refund of his or her contributions
13(other than contributions to the defined contribution plan
14under Section 14-155) plus regular interest, minus the amount
15of any benefits received prior to terminating participation.
16(Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
 
17    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
18    Sec. 15-134. Participant.
19    (a) Except as provided in subsection (a-5), each Each
20person shall, as a condition of employment, become a
21participant and be subject to this Article on the date that he
22or she becomes an employee, makes an election to participate
23in, or otherwise becomes a participant in one of the retirement
24programs offered under this Article, whichever date is later.
25    An employee who becomes a participant shall continue to be

 

 

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1a participant until he or she becomes an annuitant, dies or
2accepts a refund of contributions.
3    (a-5) Notwithstanding any other provision of this Article,
4beginning on the effective date of this amendatory Act of the
599th General Assembly, a person is not required, as a condition
6of employment or otherwise, to participate in this System. An
7active employee may terminate his or her participation in this
8System by notifying the System in writing. An active employee
9terminating participation in this System under this subsection
10shall be entitled to a refund of his or her contributions
11(other than contributions to the self-managed plan under
12Section 15-158.2 or the defined contribution plan under Section
1315-200) plus interest at the effective rate, minus the amount
14of any benefits received prior to terminating participation.
15    (b) A person employed concurrently by 2 or more employers
16is eligible to participate in the system on compensation
17received from all employers.
18(Source: P.A. 98-92, eff. 7-16-13.)
 
19    (40 ILCS 5/16-123)  (from Ch. 108 1/2, par. 16-123)
20    Sec. 16-123. Membership of System.
21    (a) Except as provided in subsection (c), the The
22membership of this System shall be composed of all teachers
23employed after June 30, 1939 who become members as a condition
24of employment on the date they become teachers. Membership
25shall continue until the date a member becomes an annuitant,

 

 

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1dies, accepts a single-sum retirement benefit, accepts a
2refund, or forfeits the rights to a refund.
3    (b) This Article does not apply to any person first
4employed after June 30, 1979 as a public service employment
5program participant under the Federal Comprehensive Employment
6and Training Act and whose wages or fringe benefits are paid in
7whole or in part by funds provided under such Act.
8    (c) Notwithstanding any other provision of this Article,
9beginning on the effective date of this amendatory Act of the
1099th General Assembly, a person is not required, as a condition
11of employment or otherwise, to participate in this System. An
12active teacher may terminate his or her membership in this
13System by notifying the System in writing. An active teacher
14terminating his or her membership in this System under this
15subsection shall be entitled to a refund of his or her
16contributions (other than contributions to the defined
17contribution plan under Section 16-205) plus regular interest,
18minus any benefits received prior to the termination of
19membership.
20(Source: P.A. 87-11.)
 
21    (40 ILCS 5/18-120)  (from Ch. 108 1/2, par. 18-120)
22    Sec. 18-120. Employee participation.
23    (a) Except as provided in subsection (b), an An eligible
24judge who is not a participant shall become a participant
25beginning on the date he or she becomes an eligible judge,

 

 

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1unless the judge files with the board a written notice of
2election not to participate within 30 days of the date of being
3notified of the option.
4    A person electing not to participate shall thereafter be
5ineligible to become a participant unless the election is
6revoked as provided in Section 18-121.
7    (b) Notwithstanding any other provision of this Article, an
8active participant may terminate his or her participation in
9this System by notifying the System in writing. An active
10participant terminating participation in this System under
11this subsection shall be entitled to a refund of his or her
12contributions plus the market rate of return throughout the
13multiple years the money was in the System, minus the amount of
14any benefits received prior to terminating participation.
15(Source: P.A. 83-1440.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.