Sen. Bill Cunningham

Filed: 2/25/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2156

2    AMENDMENT NO. ______. Amend Senate Bill 2156 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 15-106, 15-107, 15-110, 15-111, 15-168, and
615-168.2 and by adding Section 15-111.5 as follows:
 
7    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 15-106. Employer. "Employer": The University of
11Illinois, Southern Illinois University, Chicago State
12University, Eastern Illinois University, Governors State
13University, Illinois State University, Northeastern Illinois
14University, Northern Illinois University, Western Illinois
15University, the State Board of Higher Education, the Illinois
16Mathematics and Science Academy, the University Civil Service

 

 

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1Merit Board, the Board of Trustees of the State Universities
2Retirement System, the Illinois Community College Board,
3community college boards, any association of community college
4boards organized under Section 3-55 of the Public Community
5College Act, the Board of Examiners established under the
6Illinois Public Accounting Act, and, only during the period for
7which employer contributions required under Section 15-155 are
8paid, the following organizations: the alumni associations,
9the foundations and the athletic associations which are
10affiliated with the universities and colleges included in this
11Section as employers. An individual that begins employment on
12or after the effective date of this amendatory Act of the 99th
13General Assembly with any association of community college
14boards organized under Section 3-55 of the Public Community
15College Act, the Association of Illinois Middle-Grade Schools,
16the Illinois Association of School Administrators, the
17Illinois Association for Supervision and Curriculum
18Development, the Illinois Principals Association, the Illinois
19Association of School Business Officials, the Illinois Special
20Olympics, or an entity not defined as an employer in this
21Section shall not be deemed an employee for the purposes of
22this Article with respect to that employment and shall not be
23eligible to participate in the System with respect to that
24employment; provided, however, that those individuals who are
25both employed by such an entity and are participating in the
26System with respect to that employment on the effective date of

 

 

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1this amendatory Act of the 99th General Assembly shall be
2allowed to continue as participants in the System for the
3duration of that employment.
4    A department as defined in Section 14-103.04 is an employer
5for any person appointed by the Governor under the Civil
6Administrative Code of Illinois who is a participating employee
7as defined in Section 15-109. The Department of Central
8Management Services is an employer with respect to persons
9employed by the State Board of Higher Education in positions
10with the Illinois Century Network as of June 30, 2004 who
11remain continuously employed after that date by the Department
12of Central Management Services in positions with the Illinois
13Century Network, the Bureau of Communication and Computer
14Services, or, if applicable, any successor bureau.
15    The cities of Champaign and Urbana shall be considered
16employers, but only during the period for which contributions
17are required to be made under subsection (b-1) of Section
1815-155 and only with respect to individuals described in
19subsection (h) of Section 15-107.
20(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
21Sec. 999.)
 
22    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 15-107. Employee.

 

 

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1    (a) "Employee" means any member of the educational,
2administrative, secretarial, clerical, mechanical, labor or
3other staff of an employer whose employment is permanent and
4continuous or who is employed in a position in which services
5are expected to be rendered on a continuous basis for at least
64 months or one academic term, whichever is less, who (A)
7receives payment for personal services on a warrant issued
8pursuant to a payroll voucher certified by an employer and
9drawn by the State Comptroller upon the State Treasurer or by
10an employer upon trust, federal or other funds, or (B) is on a
11leave of absence without pay. Employment which is irregular,
12intermittent or temporary shall not be considered continuous
13for purposes of this paragraph.
14    However, a person is not an "employee" if he or she:
15        (1) is a student enrolled in and regularly attending
16    classes in a college or university which is an employer,
17    and is employed on a temporary basis at less than full
18    time;
19        (2) is currently receiving a retirement annuity or a
20    disability retirement annuity under Section 15-153.2 from
21    this System;
22        (3) is on a military leave of absence;
23        (4) is eligible to participate in the Federal Civil
24    Service Retirement System and is currently making
25    contributions to that system based upon earnings paid by an
26    employer;

 

 

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1        (5) is on leave of absence without pay for more than 60
2    days immediately following termination of disability
3    benefits under this Article;
4        (6) is hired after June 30, 1979 as a public service
5    employment program participant under the Federal
6    Comprehensive Employment and Training Act and receives
7    earnings in whole or in part from funds provided under that
8    Act; or
9        (7) is employed on or after July 1, 1991 to perform
10    services that are excluded by subdivision (a)(7)(f) or
11    (a)(19) of Section 210 of the federal Social Security Act
12    from the definition of employment given in that Section (42
13    U.S.C. 410).
14    (b) Any employer may, by filing a written notice with the
15board, exclude from the definition of "employee" all persons
16employed pursuant to a federally funded contract entered into
17after July 1, 1982 with a federal military department in a
18program providing training in military courses to federal
19military personnel on a military site owned by the United
20States Government, if this exclusion is not prohibited by the
21federally funded contract or federal laws or rules governing
22the administration of the contract.
23    (c) Any person appointed by the Governor under the Civil
24Administrative Code of the State is an employee, if he or she
25is a participant in this system on the effective date of the
26appointment.

 

 

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1    (d) A participant on lay-off status under civil service
2rules is considered an employee for not more than 120 days from
3the date of the lay-off.
4    (e) A participant is considered an employee during (1) the
5first 60 days of disability leave, (2) the period, not to
6exceed one year, in which his or her eligibility for disability
7benefits is being considered by the board or reviewed by the
8courts, and (3) the period he or she receives disability
9benefits under the provisions of Section 15-152, workers'
10compensation or occupational disease benefits, or disability
11income under an insurance contract financed wholly or partially
12by the employer.
13    (f) Absences without pay, other than formal leaves of
14absence, of less than 30 calendar days, are not considered as
15an interruption of a person's status as an employee. If such
16absences during any period of 12 months exceed 30 work days,
17the employee status of the person is considered as interrupted
18as of the 31st work day.
19    (g) A staff member whose employment contract requires
20services during an academic term is to be considered an
21employee during the summer and other vacation periods, unless
22he or she declines an employment contract for the succeeding
23academic term or his or her employment status is otherwise
24terminated, and he or she receives no earnings during these
25periods.
26    (h) An individual who was a participating employee employed

 

 

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1in the fire department of the University of Illinois's
2Champaign-Urbana campus immediately prior to the elimination
3of that fire department and who immediately after the
4elimination of that fire department became employed by the fire
5department of the City of Urbana or the City of Champaign shall
6continue to be considered as an employee for purposes of this
7Article for so long as the individual remains employed as a
8firefighter by the City of Urbana or the City of Champaign. The
9individual shall cease to be considered an employee under this
10subsection (h) upon the first termination of the individual's
11employment as a firefighter by the City of Urbana or the City
12of Champaign.
13    (i) An individual who is employed on a full-time basis as
14an officer or employee of a statewide teacher organization that
15serves System participants or an officer of a national teacher
16organization that serves System participants may participate
17in the System and shall be deemed an employee, provided that
18(1) the individual has previously earned creditable service
19under this Article, (2) the individual files with the System an
20irrevocable election to become a participant before the
21effective date of this amendatory Act of the 97th General
22Assembly, (3) the individual does not receive credit for that
23employment under any other Article of this Code, and (4) the
24individual first became a full-time employee of the teacher
25organization and becomes a participant before the effective
26date of this amendatory Act of the 97th General Assembly. An

 

 

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1employee under this subsection (i) is responsible for paying to
2the System both (A) employee contributions based on the actual
3compensation received for service with the teacher
4organization and (B) employer contributions equal to the normal
5costs (as defined in Section 15-155) resulting from that
6service; all or any part of these contributions may be paid on
7the employee's behalf or picked up for tax purposes (if
8authorized under federal law) by the teacher organization.
9    A person who is an employee as defined in this subsection
10(i) may establish service credit for similar employment prior
11to becoming an employee under this subsection by paying to the
12System for that employment the contributions specified in this
13subsection, plus interest at the effective rate from the date
14of service to the date of payment. However, credit shall not be
15granted under this subsection for any such prior employment for
16which the applicant received credit under any other provision
17of this Code, or during which the applicant was on a leave of
18absence under Section 15-113.2.
19    (j) A person employed by the State Board of Higher
20Education in a position with the Illinois Century Network as of
21June 30, 2004 shall be considered to be an employee for so long
22as he or she remains continuously employed after that date by
23the Department of Central Management Services in a position
24with the Illinois Century Network, the Bureau of Communication
25and Computer Services, or, if applicable, any successor bureau
26and meets the requirements of subsection (a).

 

 

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1    (k) In the case of doubt as to whether any person is an
2employee within the meaning of this Section or any rule adopted
3by the Board, the decision of the Board shall be final.
4(Source: P.A. 97-651, eff. 1-5-12.)
 
5    (40 ILCS 5/15-110)  (from Ch. 108 1/2, par. 15-110)
6    Sec. 15-110. Basic compensation. "Basic compensation":
7Subject to Section 15-111.5, the The gross basic rate of salary
8or wages payable by an employer, including:
9        (1) the value of maintenance, board, living quarters,
10    personal laundry, or other allowances furnished in lieu of
11    salary which are considered gross income under the federal
12    Federal Internal Revenue Code of 1986, as amended; ,
13        (2) the employee contributions required under Section
14    15-157; , and
15        (3) the amount paid by any employer to a custodial
16    account for investment in regulated investment company
17    stocks for the benefit of the employee pursuant to the
18    University Employees Custodial Accounts Act; "An Act in
19    relation to payments to custodial accounts for the benefit
20    of employees of public institutions of higher education",
21    approved September 9, 1983, and
22        (4) the amount of the premium payable by any employer
23    to an insurance company or companies on an annuity
24    contract, pursuant to the employee's election to accept a
25    reduction in earnings or forego an increase in earnings

 

 

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1    under Section 30c of the State Finance Act "An Act in
2    relation to State Finance," approved June 10, 1919, as
3    amended, or a tax-sheltered annuity plan approved by any
4    employer; and
5        (5) the amount of any elective deferral to a deferred
6    compensation plan established under Article 24 of this Code
7    pursuant to Section 457(b) of the federal Internal Revenue
8    Code of 1986, as amended.
9    Basic compensation does not include (1) salary or wages for
10overtime or other extra service; (2) prospective salary or
11wages under a summer teaching contract not yet entered upon;
12and (3) overseas differential allowances, quarters allowances,
13post allowances, educational allowances and transportation
14allowances paid by an employer under a contract with the
15federal government or its agencies for services rendered in
16other countries. If an employee elects to receive in lieu of
17cash salary or wages, fringe benefits which are not taxable
18under the federal Federal Internal Revenue Code of 1986, as
19amended, the amount of the cash salary or wages which is waived
20shall be included in determining basic compensation.
21(Source: P.A. 84-1308.)
 
22    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 15-111. Earnings.

 

 

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1    (a) "Earnings": Subject to Section 15-111.5, an An amount
2paid for personal services equal to the sum of the basic
3compensation plus extra compensation for summer teaching,
4overtime or other extra service. For periods for which an
5employee receives service credit under subsection (c) of
6Section 15-113.1 or Section 15-113.2, earnings are equal to the
7basic compensation on which contributions are paid by the
8employee during such periods. Compensation for employment
9which is irregular, intermittent and temporary shall not be
10considered earnings, unless the participant is also receiving
11earnings from the employer as an employee under Section 15-107.
12    With respect to transition pay paid by the University of
13Illinois to a person who was a participating employee employed
14in the fire department of the University of Illinois's
15Champaign-Urbana campus immediately prior to the elimination
16of that fire department:
17        (1) "Earnings" includes transition pay paid to the
18    employee on or after the effective date of this amendatory
19    Act of the 91st General Assembly.
20        (2) "Earnings" includes transition pay paid to the
21    employee before the effective date of this amendatory Act
22    of the 91st General Assembly only if (i) employee
23    contributions under Section 15-157 have been withheld from
24    that transition pay or (ii) the employee pays to the System
25    before January 1, 2001 an amount representing employee
26    contributions under Section 15-157 on that transition pay.

 

 

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1    Employee contributions under item (ii) may be paid in a
2    lump sum, by withholding from additional transition pay
3    accruing before January 1, 2001, or in any other manner
4    approved by the System. Upon payment of the employee
5    contributions on transition pay, the corresponding
6    employer contributions become an obligation of the State.
7    (b) For a Tier 2 member, the annual earnings shall not
8exceed $106,800; however, that amount shall annually
9thereafter be increased by the lesser of (i) 3% of that amount,
10including all previous adjustments, or (ii) one half the annual
11unadjusted percentage increase (but not less than zero) in the
12consumer price index-u for the 12 months ending with the
13September preceding each November 1, including all previous
14adjustments.
15    For the purposes of this Section, "consumer price index u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the boards of the retirement
23systems and pension funds by November 1 of each year.
24    (c) With each submission of payroll information in the
25manner prescribed by the System, the employer shall certify
26that the payroll information is correct and complies with all

 

 

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1applicable State and federal laws.
2(Source: P.A. 98-92, eff. 7-16-13.)
 
3    (40 ILCS 5/15-111.5 new)
4    Sec. 15-111.5. Basic compensation and earnings
5restrictions. For an employee who first becomes a participant
6on or after the effective date of this amendatory Act of the
799th General Assembly, basic compensation under Section 15-110
8and earnings under Section 15-111 shall not include housing
9allowances, vehicle allowances, or club memberships or dues.
 
10    (40 ILCS 5/15-168)  (from Ch. 108 1/2, par. 15-168)
11    Sec. 15-168. To require information.
12    (a) To require such information as shall be necessary for
13the proper operation of the system from any participant or
14beneficiary or annuitant benefit recipient or from any current
15or former employer of a participant or annuitant. Such
16information may include, but is not limited to, employment
17contracts current or former participant.
18    (b) When the System submits a request for information under
19subsection (a) of this Section, the employer shall respond
20within 90 calendar days of the System's request. Beginning on
21the 91st calendar day after the System's request, the System
22may assess a penalty of $500 per calendar day until receipt of
23the information by the System, with a maximum penalty of
24$50,000. All payments must be received within one calendar year

 

 

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1after receipt of the information by the System or one calendar
2year of reaching the maximum penalty of $50,000, whichever
3occurs earlier. If the employer fails to make complete payment
4within the applicable timeframe, then the System may, after
5giving notice to the employer, certify the delinquent amount to
6the State Comptroller, and the Comptroller shall thereupon
7deduct the certified delinquent amount from State funds payable
8to the employer and pay them instead to the System.
9    (c) If a participant, beneficiary, or annuitant fails to
10provide any information that is necessary for the calculation,
11payment, or finalization of any benefit under this Article
12within 90 calendar days of the date of the System's request
13under subsection (a) of this Section, then the System may
14immediately cease processing the benefit and may not pay any
15additional benefit payment to the participant, beneficiary, or
16annuitant until the requested information is provided.
17(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
 
18    (40 ILCS 5/15-168.2)
19    Sec. 15-168.2. Audit of employers.
20    (a) Beginning August 1, 2013, the System may audit the
21employment records and payroll records of all employers. When
22the System audits an employer, it shall specify the exact
23information it requires, which may include but need not be
24limited to the names, titles, and earnings history of every
25individual receiving compensation from the employer. If an

 

 

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1employer is audited by the System, then the employer must
2provide to the System all necessary documents and records
3within 60 calendar days after receiving notification from the
4System. When the System audits an employer, it shall send
5related correspondence by certified mail.
6    (b) When the System submits a request for information under
7subsection (a) of this Section, the employer shall respond
8within 60 calendar days of the System's request. Beginning on
9the 61st calendar day after the System's request, the System
10may assess a penalty of $500 per calendar day until receipt of
11the information by the System, with a maximum penalty of
12$50,000. All payments must be received by the System within one
13calendar year after receipt of the information by the System or
14one calendar year after reaching the maximum penalty of
15$50,000, whichever occurs earlier. If the employer fails to
16make complete payment within the applicable timeframe, then the
17System may, after giving notice to the employer, certify the
18delinquent amount to the State Comptroller, and the Comptroller
19shall thereupon deduct the certified delinquent amount from
20State funds payable to the employer and pay them instead to the
21System.
22(Source: P.A. 97-968, eff. 8-16-12.)".