Illinois General Assembly - Full Text of HB2465
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Full Text of HB2465  102nd General Assembly

HB2465 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2465

 

Introduced 2/19/2021, by Rep. Deanne M. Mazzochi

 

SYNOPSIS AS INTRODUCED:
 
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

    Amends the State Employees, State Universities, and Downstate Teachers Articles of the Illinois Pension Code. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing no later than 30 days after first becoming an employee. Effective immediately.


LRB102 13351 RPS 18695 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2465LRB102 13351 RPS 18695 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
5changing Sections 14-103.05, 15-134, and 16-123 as follows:
 
6    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
7    Sec. 14-103.05. Employee.
8    (a) Except as provided in subsection (e), any Any person
9employed by a Department who receives salary for personal
10services rendered to the Department on a warrant issued
11pursuant to a payroll voucher certified by a Department and
12drawn by the State Comptroller upon the State Treasurer,
13including an elected official described in subparagraph (d) of
14Section 14-104, shall become an employee for purpose of
15membership in the Retirement System on the first day of such
16employment.
17    A person entering service on or after January 1, 1972 and
18prior to January 1, 1984 shall become a member as a condition
19of employment and shall begin making contributions as of the
20first day of employment.
21    A person entering service on or after January 1, 1984
22shall, upon completion of 6 months of continuous service which
23is not interrupted by a break of more than 2 months, become a

 

 

HB2465- 2 -LRB102 13351 RPS 18695 b

1member as a condition of employment. Contributions shall begin
2the first of the month after completion of the qualifying
3period.
4    A person employed by the Chicago Metropolitan Agency for
5Planning on the effective date of this amendatory Act of the
695th General Assembly who was a member of this System as an
7employee of the Chicago Area Transportation Study and makes an
8election under Section 14-104.13 to participate in this System
9for his or her employment with the Chicago Metropolitan Agency
10for Planning.
11    The qualifying period of 6 months of service is not
12applicable to: (1) a person who has been granted credit for
13service in a position covered by the State Universities
14Retirement System, the Teachers' Retirement System of the
15State of Illinois, the General Assembly Retirement System, or
16the Judges Retirement System of Illinois unless that service
17has been forfeited under the laws of those systems; (2) a
18person entering service on or after July 1, 1991 in a
19noncovered position; (3) a person to whom Section 14-108.2a or
2014-108.2b applies; or (4) a person to whom subsection (a-5) of
21this Section applies.
22    (a-5) Except as provided in subsection (e), a A person
23entering service on or after December 1, 2010 and before the
24effective date of this amendatory Act of the 102nd General
25Assembly shall become a member as a condition of employment
26and shall begin making contributions as of the first day of

 

 

HB2465- 3 -LRB102 13351 RPS 18695 b

1employment. A person serving in the qualifying period on
2December 1, 2010 will become a member on December 1, 2010 and
3shall begin making contributions as of December 1, 2010.
4    (b) The term "employee" does not include the following:
5        (1) members of the State Legislature, and persons
6    electing to become members of the General Assembly
7    Retirement System pursuant to Section 2-105;
8        (2) incumbents of offices normally filled by vote of
9    the people;
10        (3) except as otherwise provided in this Section, any
11    person appointed by the Governor with the advice and
12    consent of the Senate unless that person elects to
13    participate in this system;
14        (3.1) any person serving as a commissioner of an
15    ethics commission created under the State Officials and
16    Employees Ethics Act unless that person elects to
17    participate in this system with respect to that service as
18    a commissioner;
19        (3.2) any person serving as a part-time employee in
20    any of the following positions: Legislative Inspector
21    General, Special Legislative Inspector General, employee
22    of the Office of the Legislative Inspector General,
23    Executive Director of the Legislative Ethics Commission,
24    or staff of the Legislative Ethics Commission, regardless
25    of whether he or she is in active service on or after July
26    8, 2004 (the effective date of Public Act 93-685), unless

 

 

HB2465- 4 -LRB102 13351 RPS 18695 b

1    that person elects to participate in this System with
2    respect to that service; in this item (3.2), a "part-time
3    employee" is a person who is not required to work at least
4    35 hours per week;
5        (3.3) any person who has made an election under
6    Section 1-123 and who is serving either as legal counsel
7    in the Office of the Governor or as Chief Deputy Attorney
8    General;
9        (4) except as provided in Section 14-108.2 or
10    14-108.2c, any person who is covered or eligible to be
11    covered by the Teachers' Retirement System of the State of
12    Illinois, the State Universities Retirement System, or the
13    Judges Retirement System of Illinois;
14        (5) an employee of a municipality or any other
15    political subdivision of the State;
16        (6) any person who becomes an employee after June 30,
17    1979 as a public service employment program participant
18    under the Federal Comprehensive Employment and Training
19    Act and whose wages or fringe benefits are paid in whole or
20    in part by funds provided under such Act;
21        (7) enrollees of the Illinois Young Adult Conservation
22    Corps program, administered by the Department of Natural
23    Resources, authorized grantee pursuant to Title VIII of
24    the "Comprehensive Employment and Training Act of 1973",
25    29 USC 993, as now or hereafter amended;
26        (8) enrollees and temporary staff of programs

 

 

HB2465- 5 -LRB102 13351 RPS 18695 b

1    administered by the Department of Natural Resources under
2    the Youth Conservation Corps Act of 1970;
3        (9) any person who is a member of any professional
4    licensing or disciplinary board created under an Act
5    administered by the Department of Professional Regulation
6    or a successor agency or created or re-created after the
7    effective date of this amendatory Act of 1997, and who
8    receives per diem compensation rather than a salary,
9    notwithstanding that such per diem compensation is paid by
10    warrant issued pursuant to a payroll voucher; such persons
11    have never been included in the membership of this System,
12    and this amendatory Act of 1987 (P.A. 84-1472) is not
13    intended to effect any change in the status of such
14    persons;
15        (10) any person who is a member of the Illinois Health
16    Care Cost Containment Council, and receives per diem
17    compensation rather than a salary, notwithstanding that
18    such per diem compensation is paid by warrant issued
19    pursuant to a payroll voucher; such persons have never
20    been included in the membership of this System, and this
21    amendatory Act of 1987 is not intended to effect any
22    change in the status of such persons;
23        (11) any person who is a member of the Oil and Gas
24    Board created by Section 1.2 of the Illinois Oil and Gas
25    Act, and receives per diem compensation rather than a
26    salary, notwithstanding that such per diem compensation is

 

 

HB2465- 6 -LRB102 13351 RPS 18695 b

1    paid by warrant issued pursuant to a payroll voucher;
2        (12) a person employed by the State Board of Higher
3    Education in a position with the Illinois Century Network
4    as of June 30, 2004, who remains continuously employed
5    after that date by the Department of Central Management
6    Services in a position with the Illinois Century Network
7    and participates in the Article 15 system with respect to
8    that employment;
9        (13) any person who first becomes a member of the
10    Civil Service Commission on or after January 1, 2012;
11        (14) any person, other than the Director of Employment
12    Security, who first becomes a member of the Board of
13    Review of the Department of Employment Security on or
14    after January 1, 2012;
15        (15) any person who first becomes a member of the
16    Civil Service Commission on or after January 1, 2012;
17        (16) any person who first becomes a member of the
18    Illinois Liquor Control Commission on or after January 1,
19    2012;
20        (17) any person who first becomes a member of the
21    Secretary of State Merit Commission on or after January 1,
22    2012;
23        (18) any person who first becomes a member of the
24    Human Rights Commission on or after January 1, 2012 unless
25    he or she is eligible to participate in accordance with
26    subsection (d) of this Section;

 

 

HB2465- 7 -LRB102 13351 RPS 18695 b

1        (19) any person who first becomes a member of the
2    State Mining Board on or after January 1, 2012;
3        (20) any person who first becomes a member of the
4    Property Tax Appeal Board on or after January 1, 2012;
5        (21) any person who first becomes a member of the
6    Illinois Racing Board on or after January 1, 2012;
7        (22) any person who first becomes a member of the
8    Department of State Police Merit Board on or after January
9    1, 2012;
10        (23) any person who first becomes a member of the
11    Illinois State Toll Highway Authority on or after January
12    1, 2012; or
13        (24) any person who first becomes a member of the
14    Illinois State Board of Elections on or after January 1,
15    2012.
16    (c) An individual who represents or is employed as an
17officer or employee of a statewide labor organization that
18represents members of this System may participate in the
19System and shall be deemed an employee, provided that (1) the
20individual has previously earned creditable service under this
21Article, (2) the individual files with the System an
22irrevocable election to become a participant within 6 months
23after the effective date of this amendatory Act of the 94th
24General Assembly, and (3) the individual does not receive
25credit for that employment under any other provisions of this
26Code. An employee under this subsection (c) is responsible for

 

 

HB2465- 8 -LRB102 13351 RPS 18695 b

1paying to the System both (i) employee contributions based on
2the actual compensation received for service with the labor
3organization and (ii) employer contributions based on the
4percentage of payroll certified by the board; all or any part
5of these contributions may be paid on the employee's behalf or
6picked up for tax purposes (if authorized under federal law)
7by the labor organization.
8    A person who is an employee as defined in this subsection
9(c) may establish service credit for similar employment prior
10to becoming an employee under this subsection by paying to the
11System for that employment the contributions specified in this
12subsection, plus interest at the effective rate from the date
13of service to the date of payment. However, credit shall not be
14granted under this subsection (c) for any such prior
15employment for which the applicant received credit under any
16other provision of this Code or during which the applicant was
17on a leave of absence.
18    (d) A person appointed as a member of the Human Rights
19Commission on or after June 1, 2019 may elect to participate in
20the System and shall be deemed an employee. Service and
21contributions shall begin on the first payroll period
22immediately following the employee's election to participate
23in the System.
24    A person who is an employee as described in this
25subsection (d) may establish service credit for employment as
26a Human Rights Commissioner that occurred on or after June 1,

 

 

HB2465- 9 -LRB102 13351 RPS 18695 b

12019 and before establishing service under this subsection by
2paying to the System for that employment the contributions
3specified in paragraph (1) of subsection (a) of Section
414-133, plus regular interest from the date of service to the
5date of payment.
6    (e) Notwithstanding any other provision of this Article, a
7person who first becomes an employee after the effective date
8of this amendatory Act of the 102nd General Assembly is not
9required, as a condition of employment or otherwise, to
10participate in this System. An employee may elect not to
11participate in this System by notifying the System in writing
12no later than 30 days after first becoming an employee.
13(Source: P.A. 101-10, eff. 6-5-19.)
 
14    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
15    Sec. 15-134. Participant.
16    (a) Except as provided in subsection (a-5), each Each
17person shall, as a condition of employment, become a
18participant and be subject to this Article on the date that he
19or she becomes an employee, makes an election to participate
20in, or otherwise becomes a participant in one of the
21retirement programs offered under this Article, whichever date
22is later.
23    An employee who becomes a participant shall continue to be
24a participant until he or she becomes an annuitant, dies or
25accepts a refund of contributions.

 

 

HB2465- 10 -LRB102 13351 RPS 18695 b

1    (a-5) Notwithstanding any other provision of this Article,
2a person who first becomes an employee after the effective
3date of this amendatory Act of the 102nd General Assembly is
4not required, as a condition of employment or otherwise, to
5participate in this System. An employee may elect not to
6participate in this System by notifying the System in writing
7no later than 30 days after first becoming an employee.
8    (b) A person employed concurrently by 2 or more employers
9is eligible to participate in the system on compensation
10received from all employers.
11(Source: P.A. 98-92, eff. 7-16-13.)
 
12    (40 ILCS 5/16-123)  (from Ch. 108 1/2, par. 16-123)
13    Sec. 16-123. Membership of System.
14    (a) Except as provided in subsection (c), the The
15membership of this System shall be composed of all teachers
16employed after June 30, 1939 who become members as a condition
17of employment on the date they become teachers. Membership
18shall continue until the date a member becomes an annuitant,
19dies, accepts a single-sum retirement benefit, accepts a
20refund, or forfeits the rights to a refund.
21    (b) This Article does not apply to any person first
22employed after June 30, 1979 as a public service employment
23program participant under the Federal Comprehensive Employment
24and Training Act and whose wages or fringe benefits are paid in
25whole or in part by funds provided under such Act.

 

 

HB2465- 11 -LRB102 13351 RPS 18695 b

1    (c) Notwithstanding any other provision of this Article, a
2person who first becomes a teacher after the effective date of
3this amendatory Act of the 102nd General Assembly is not
4required, as a condition of employment or otherwise, to
5participate in this System. A teacher may elect not to
6participate in this System by notifying the System in writing
7no later than 30 days after first becoming a teacher.
8(Source: P.A. 87-11.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.