Illinois General Assembly - Bill Status for SB2156

Replaces everything after the enacting clause. Amends the State Universities Article of the Illinois Pension Code. For an employee who first becomes a participant on or after the effective date of the amendatory Act, excludes housing allowances, vehicle allowances, and club memberships or dues from the calculation of basic compensation and earnings. Provides that the definition of "basic compensation" includes the amount of any elective deferral to a deferred compensation plan under the Illinois Pension Code. Provides that in the case of doubt as to whether any person meets the definition of "employee", the decision of the Board shall be final. Provides that an individual that begins employment with certain entities or an entity not defined in the Article as an employer on or after the effective date of the amendatory Act shall not be eligible to participate in the System. Provides that when the System requests information from an employer, the employer shall respond to the request within 90 calendar days. Provides that when the System requests employment records and payroll records of an employer, the employer shall respond within 60 calendar days. Authorizes the System to assess a penalty of $500 per day, up to a maximum of $50,000, on an employer who fails to respond to certain requests for information after a certain number of days. Provides that if a participant, beneficiary, or annuitant fails to provide any information that is necessary for the calculation, payment, or finalization of any benefit under the Article within 90 calendar days, then the System may immediately cease processing the benefit and may not pay any additional benefit payment to the participant, beneficiary, or annuitant until the requested information is provided.

Replaces everything after the enacting clause with the engrossed bill plus House Amendment No. 2, and the following additional provisions: Further amends the State Universities Article of the Illinois Pension Code. Provides that a participant may establish creditable service and earnings credit for periods of furlough (or voluntary reduction in pay taken in lieu of furlough) beginning on or after July 1, 2015 and ending on or before June 30, 2017 by paying, on an after-tax basis, specified employee and employer contributions, plus interest. In the provision requiring employers to make an additional contribution to the System under certain circumstances when an employee receives an increase in annual earnings exceeding 6%, provides that when assessing payment, the System shall include earnings that would have been paid to a participant had the participant not taken periods of voluntary or involuntary furlough (or voluntary reduction in pay taken in lieu of furlough) on or after July 1, 2015 and on or before June 30, 2017. Requires the employer to report such earnings in a manner prescribed by the System. Also requires the System to provide advance notice to a participant in the self-managed plan of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. Provides that if a participant in the self-managed plan fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, the System shall invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction. Provides that the participant has the right to transfer account balances out of the default investment fund during time periods designated by the System.

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