99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3132

 

Introduced 2/19/2016, by Sen. Wm. Sam McCann

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-104  from Ch. 108 1/2, par. 14-104
40 ILCS 5/14-152.1

    Amends the State Employee Article of the Illinois Pension Code. In a provision relating to purchasing service credit for certain military service, deletes the requirement of paying an additional amount representing the employer's normal cost of the benefit plus interest. Provides that this change does not entitle any person to a refund of contributions or interest already paid. Excludes the change from the definition of "new benefit increase". Effective immediately.


LRB099 19977 RPS 44376 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3132LRB099 19977 RPS 44376 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 14-104 and 14-152.1 as follows:
 
6    (40 ILCS 5/14-104)  (from Ch. 108 1/2, par. 14-104)
7    Sec. 14-104. Service for which contributions permitted.
8Contributions provided for in this Section shall cover the
9period of service granted. Except as otherwise provided in this
10Section, the contributions shall be based upon the employee's
11compensation and contribution rate in effect on the date he
12last became a member of the System; provided that for all
13employment prior to January 1, 1969 the contribution rate shall
14be that in effect for a noncovered employee on the date he last
15became a member of the System. Except as otherwise provided in
16this Section, contributions permitted under this Section shall
17include regular interest from the date an employee last became
18a member of the System to the date of payment.
19    These contributions must be paid in full before retirement
20either in a lump sum or in installment payments in accordance
21with such rules as may be adopted by the board.
22    (a) Any member may make contributions as required in this
23Section for any period of service, subsequent to the date of

 

 

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1establishment, but prior to the date of membership.
2    (b) Any employee who had been previously excluded from
3membership because of age at entry and subsequently became
4eligible may elect to make contributions as required in this
5Section for the period of service during which he was
6ineligible.
7    (c) An employee of the Department of Insurance who, after
8January 1, 1944 but prior to becoming eligible for membership,
9received salary from funds of insurance companies in the
10process of rehabilitation, liquidation, conservation or
11dissolution, may elect to make contributions as required in
12this Section for such service.
13    (d) Any employee who rendered service in a State office to
14which he was elected, or rendered service in the elective
15office of Clerk of the Appellate Court prior to the date he
16became a member, may make contributions for such service as
17required in this Section. Any member who served by appointment
18of the Governor under the Civil Administrative Code of Illinois
19and did not participate in this System may make contributions
20as required in this Section for such service.
21    (e) Any person employed by the United States government or
22any instrumentality or agency thereof from January 1, 1942
23through November 15, 1946 as the result of a transfer from
24State service by executive order of the President of the United
25States shall be entitled to prior service credit covering the
26period from January 1, 1942 through December 31, 1943 as

 

 

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1provided for in this Article and to membership service credit
2for the period from January 1, 1944 through November 15, 1946
3by making the contributions required in this Section. A person
4so employed on January 1, 1944 but whose employment began after
5January 1, 1942 may qualify for prior service and membership
6service credit under the same conditions.
7    (f) An employee of the Department of Labor of the State of
8Illinois who performed services for and under the supervision
9of that Department prior to January 1, 1944 but who was
10compensated for those services directly by federal funds and
11not by a warrant of the Auditor of Public Accounts paid by the
12State Treasurer may establish credit for such employment by
13making the contributions required in this Section. An employee
14of the Department of Agriculture of the State of Illinois, who
15performed services for and under the supervision of that
16Department prior to June 1, 1963, but was compensated for those
17services directly by federal funds and not paid by a warrant of
18the Auditor of Public Accounts paid by the State Treasurer, and
19who did not contribute to any other public employee retirement
20system for such service, may establish credit for such
21employment by making the contributions required in this
22Section.
23    (g) Any employee who executed a waiver of membership within
2460 days prior to January 1, 1944 may, at any time while in the
25service of a department, file with the board a rescission of
26such waiver. Upon making the contributions required by this

 

 

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1Section, the member shall be granted the creditable service
2that would have been received if the waiver had not been
3executed.
4    (h) Until May 1, 1990, an employee who was employed on a
5full-time basis by a regional planning commission for at least
65 continuous years may establish creditable service for such
7employment by making the contributions required under this
8Section, provided that any credits earned by the employee in
9the commission's retirement plan have been terminated.
10    (i) Any person who rendered full time contractual services
11to the General Assembly as a member of a legislative staff may
12establish service credit for up to 8 years of such services by
13making the contributions required under this Section, provided
14that application therefor is made not later than July 1, 1991.
15    (j) By paying the contributions otherwise required under
16this Section, plus an amount determined by the Board to be
17equal to the employer's normal cost of the benefit plus
18interest, but with all of the interest calculated from the date
19the employee last became a member of the System or November 19,
201991, whichever is later, to the date of payment, an employee
21may establish service credit for a period of up to 4 years
22spent in active military service for which he does not qualify
23for credit under Section 14-105, provided that (1) he was not
24dishonorably discharged from such military service, and (2) the
25amount of service credit established by a member under this
26subsection (j), when added to the amount of military service

 

 

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1credit granted to the member under subsection (b) of Section
214-105, shall not exceed 5 years.
3    This amendatory Act of the 99th General Assembly applies to
4credit purchased by a member on or after its effective date and
5does not entitle any person to a refund of contributions or
6interest already paid. The change in the manner of calculating
7interest under this subsection (j) made by this amendatory Act
8of the 92nd General Assembly applies to credit purchased by an
9employee on or after its effective date and does not entitle
10any person to a refund of contributions or interest already
11paid. In compliance with Section 14-152.1 of this Act
12concerning new benefit increases, any new benefit increase as a
13result of the changes to this subsection (j) made by Public Act
1495-483 is funded through the employee contributions provided
15for in this subsection (j). Any new benefit increase as a
16result of the changes made to this subsection (j) by Public Act
1795-483 is exempt from the provisions of subsection (d) of
18Section 14-152.1.
19    (k) An employee who was employed on a full-time basis by
20the Illinois State's Attorneys Association Statewide Appellate
21Assistance Service LEAA-ILEC grant project prior to the time
22that project became the State's Attorneys Appellate Service
23Commission, now the Office of the State's Attorneys Appellate
24Prosecutor, an agency of State government, may establish
25creditable service for not more than 60 months service for such
26employment by making contributions required under this

 

 

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1Section.
2    (l) By paying the contributions otherwise required under
3this Section, plus an amount determined by the Board to be
4equal to the employer's normal cost of the benefit plus
5interest, a member may establish service credit for periods of
6less than one year spent on authorized leave of absence from
7service, provided that (1) the period of leave began on or
8after January 1, 1982 and (2) any credit established by the
9member for the period of leave in any other public employee
10retirement system has been terminated. A member may establish
11service credit under this subsection for more than one period
12of authorized leave, and in that case the total period of
13service credit established by the member under this subsection
14may exceed one year. In determining the contributions required
15for establishing service credit under this subsection, the
16interest shall be calculated from the beginning of the leave of
17absence to the date of payment.
18    (l-5) By paying the contributions otherwise required under
19this Section, plus an amount determined by the Board to be
20equal to the employer's normal cost of the benefit plus
21interest, a member may establish service credit for periods of
22up to 2 years spent on authorized leave of absence from
23service, provided that during that leave the member represented
24or was employed as an officer or employee of a statewide labor
25organization that represents members of this System. In
26determining the contributions required for establishing

 

 

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1service credit under this subsection, the interest shall be
2calculated from the beginning of the leave of absence to the
3date of payment.
4    (m) Any person who rendered contractual services to a
5member of the General Assembly as a worker in the member's
6district office may establish creditable service for up to 3
7years of those contractual services by making the contributions
8required under this Section. The System shall determine a
9full-time salary equivalent for the purpose of calculating the
10required contribution. To establish credit under this
11subsection, the applicant must apply to the System by March 1,
121998.
13    (n) Any person who rendered contractual services to a
14member of the General Assembly as a worker providing
15constituent services to persons in the member's district may
16establish creditable service for up to 8 years of those
17contractual services by making the contributions required
18under this Section. The System shall determine a full-time
19salary equivalent for the purpose of calculating the required
20contribution. To establish credit under this subsection, the
21applicant must apply to the System by March 1, 1998.
22    (o) A member who participated in the Illinois Legislative
23Staff Internship Program may establish creditable service for
24up to one year of that participation by making the contribution
25required under this Section. The System shall determine a
26full-time salary equivalent for the purpose of calculating the

 

 

SB3132- 8 -LRB099 19977 RPS 44376 b

1required contribution. Credit may not be established under this
2subsection for any period for which service credit is
3established under any other provision of this Code.
4    (p) By paying the contributions otherwise required under
5this Section, plus an amount determined by the Board to be
6equal to the employer's normal cost of the benefit plus
7interest, a member may establish service credit for a period of
8up to 8 years during which he or she was employed by the
9Visually Handicapped Managers of Illinois in a vending program
10operated under a contractual agreement with the Department of
11Rehabilitation Services or its successor agency.
12    This subsection (p) applies without regard to whether the
13person was in service on or after the effective date of this
14amendatory Act of the 94th General Assembly. In the case of a
15person who is receiving a retirement annuity on that effective
16date, the increase, if any, shall begin to accrue on the first
17annuity payment date following receipt by the System of the
18contributions required under this subsection (p).
19    (q) By paying the required contributions under this
20Section, plus an amount determined by the Board to be equal to
21the employer's normal cost of the benefit plus interest, an
22employee who was laid off but returned to any State employment
23may establish creditable service for the period of the layoff,
24provided that (1) the applicant applies for the creditable
25service under this subsection (q) within 6 months after July
2627, 2010 (the effective date of Public Act 96-1320), (2) the

 

 

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1applicant does not receive credit for that period under any
2other provision of this Code, (3) at the time of the layoff,
3the applicant is not in an initial probationary status
4consistent with the rules of the Department of Central
5Management Services, and (4) the total amount of creditable
6service established by the applicant under this subsection (q)
7does not exceed 3 years. For service established under this
8subsection (q), the required employee contribution shall be
9based on the rate of compensation earned by the employee on the
10date of returning to employment after the layoff and the
11contribution rate then in effect, and the required interest
12shall be calculated at the actuarially assumed rate from the
13date of returning to employment after the layoff to the date of
14payment. Funding for any new benefit increase, as defined in
15Section 14-152.1 of this Act, that is created under this
16subsection (q) will be provided by the employee contributions
17required under this subsection (q).
18    (r) A member who participated in the University of Illinois
19Government Public Service Internship Program (GPSI) may
20establish creditable service for up to 2 years of that
21participation by making the contribution required under this
22Section, plus an amount determined by the Board to be equal to
23the employer's normal cost of the benefit plus interest. The
24System shall determine a full-time salary equivalent for the
25purpose of calculating the required contribution. Credit may
26not be established under this subsection for any period for

 

 

SB3132- 10 -LRB099 19977 RPS 44376 b

1which service credit is established under any other provision
2of this Code.
3    (s) A member who worked as a nurse under a contractual
4agreement for the Department of Public Aid, or its successor
5agency, the Department of Human Services, in the Client
6Assessment Unit and was subsequently determined to be a State
7employee by the United States Internal Revenue Service and the
8Illinois Labor Relations Board may establish creditable
9service for those contractual services by making the
10contributions required under this Section. To establish credit
11under this subsection, the applicant must apply to the System
12by July 1, 2008.
13    The Department of Human Services shall pay an employer
14contribution based upon an amount determined by the Board to be
15equal to the employer's normal cost of the benefit, plus
16interest.
17    In compliance with Section 14-152.1 added by Public Act
1894-4, the cost of the benefits provided by Public Act 95-583
19are offset by the required employee and employer contributions.
20    (t) Any person who rendered contractual services on a
21full-time basis to the Illinois Institute of Natural Resources
22and the Illinois Department of Energy and Natural Resources may
23establish creditable service for up to 4 years of those
24contractual services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit plus

 

 

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1interest at the actuarially assumed rate from the first day of
2the service for which credit is being established to the date
3of payment. To establish credit under this subsection (t), the
4applicant must apply to the System within 6 months after July
527, 2010 (the effective date of Public Act 96-1320).
6    (u) By paying the required contributions under this
7Section, plus an amount determined by the Board to be equal to
8the employer's normal cost of the benefit, plus interest, a
9member may establish creditable service and earnings credit for
10periods of furlough beginning on or after July 1, 2008. To
11receive this credit, the participant must (i) apply in writing
12to the System before December 31, 2011 and (ii) not receive
13compensation for the furlough period. For service established
14under this subsection, the required employee contribution
15shall be based on the rate of compensation earned by the
16employee immediately following the date of the first furlough
17day in the time period specified in this subsection (u), and
18the required interest shall be calculated at the actuarially
19assumed rate from the date of the furlough to the date of
20payment.
21    (v) Any member who rendered full-time contractual services
22to an Illinois Veterans Home operated by the Department of
23Veterans' Affairs may establish service credit for up to 8
24years of such services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit, plus

 

 

SB3132- 12 -LRB099 19977 RPS 44376 b

1interest at the actuarially assumed rate. To establish credit
2under this subsection, the applicant must apply to the System
3no later than 6 months after July 27, 2010 (the effective date
4of Public Act 96-1320).
5(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
696-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
77-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
88-12-11.)
 
9    (40 ILCS 5/14-152.1)
10    (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 14-152.1. Application and expiration of new benefit
13increases.
14    (a) As used in this Section, "new benefit increase" means
15an increase in the amount of any benefit provided under this
16Article, or an expansion of the conditions of eligibility for
17any benefit under this Article, that results from an amendment
18to this Code that takes effect after June 1, 2005 (the
19effective date of Public Act 94-4). "New benefit increase",
20however, does not include any benefit increase resulting from
21the changes made to this Article by Public Act 96-37 or this
22amendatory Act of the 99th General Assembly this amendatory Act
23of the 96th General Assembly.
24    (b) Notwithstanding any other provision of this Code or any
25subsequent amendment to this Code, every new benefit increase

 

 

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

 

 

SB3132- 14 -LRB099 19977 RPS 44376 b

1under subsection (c). This does not prevent the General
2Assembly from extending or re-creating a new benefit increase
3by law.
4    (e) Except as otherwise provided in the language creating
5the new benefit increase, a new benefit increase that expires
6under this Section continues to apply to persons who applied
7and qualified for the affected benefit while the new benefit
8increase was in effect and to the affected beneficiaries and
9alternate payees of such persons, but does not apply to any
10other person, including without limitation a person who
11continues in service after the expiration date and did not
12apply and qualify for the affected benefit while the new
13benefit increase was in effect.
14(Source: P.A. 96-37, eff. 7-13-09.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.