Illinois General Assembly - Full Text of SB1884
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Full Text of SB1884  95th General Assembly

SB1884 95TH GENERAL ASSEMBLY


 


 
95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1884

 

Introduced 1/10/2008, by Sen. Larry K. Bomke

 

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

    Amends the State Employee Article of the Illinois Pension Code. Allows an employee who was laid off but returned to any State employment to establish creditable service for the period of the layoff, provided that (1) the applicant applies for the creditable service within 6 months after the effective date of this amendatory Act, (2) the applicant does not receive credit for that period under any other provision of this Code, (3) at the time of the layoff, the applicant is not in an initial probationary status consistent with the rules of the Department of Central Management Services, and (4) the total amount of creditable service established by the applicant under the provisions does not exceed 3 years. Provides that the funding for any new benefit increase created will be provided by employee contributions. Effective immediately.


LRB095 14084 AMC 39941 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1884 LRB095 14084 AMC 39941 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 14-104 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.
8 Contributions provided for in this Section shall cover the
9 period of service granted. Except as otherwise provided in this
10 Section, the contributions shall be based upon the employee's
11 compensation and contribution rate in effect on the date he
12 last became a member of the System; provided that for all
13 employment prior to January 1, 1969 the contribution rate shall
14 be that in effect for a noncovered employee on the date he last
15 became a member of the System. Except as otherwise provided in
16 this Section, contributions permitted under this Section shall
17 include regular interest from the date an employee last became
18 a member of the System to the date of payment.
19     These contributions must be paid in full before retirement
20 either in a lump sum or in installment payments in accordance
21 with such rules as may be adopted by the board.
22     (a) Any member may make contributions as required in this
23 Section for any period of service, subsequent to the date of

 

 

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

 

 

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1 provided for in this Article and to membership service credit
2 for the period from January 1, 1944 through November 15, 1946
3 by making the contributions required in this Section. A person
4 so employed on January 1, 1944 but whose employment began after
5 January 1, 1942 may qualify for prior service and membership
6 service credit under the same conditions.
7     (f) An employee of the Department of Labor of the State of
8 Illinois who performed services for and under the supervision
9 of that Department prior to January 1, 1944 but who was
10 compensated for those services directly by federal funds and
11 not by a warrant of the Auditor of Public Accounts paid by the
12 State Treasurer may establish credit for such employment by
13 making the contributions required in this Section. An employee
14 of the Department of Agriculture of the State of Illinois, who
15 performed services for and under the supervision of that
16 Department prior to June 1, 1963, but was compensated for those
17 services directly by federal funds and not paid by a warrant of
18 the Auditor of Public Accounts paid by the State Treasurer, and
19 who did not contribute to any other public employee retirement
20 system for such service, may establish credit for such
21 employment by making the contributions required in this
22 Section.
23     (g) Any employee who executed a waiver of membership within
24 60 days prior to January 1, 1944 may, at any time while in the
25 service of a department, file with the board a rescission of
26 such waiver. Upon making the contributions required by this

 

 

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1 Section, the member shall be granted the creditable service
2 that would have been received if the waiver had not been
3 executed.
4     (h) Until May 1, 1990, an employee who was employed on a
5 full-time basis by a regional planning commission for at least
6 5 continuous years may establish creditable service for such
7 employment by making the contributions required under this
8 Section, provided that any credits earned by the employee in
9 the commission's retirement plan have been terminated.
10     (i) Any person who rendered full time contractual services
11 to the General Assembly as a member of a legislative staff may
12 establish service credit for up to 8 years of such services by
13 making the contributions required under this Section, provided
14 that application therefor is made not later than July 1, 1991.
15     (j) By paying the contributions otherwise required under
16 this Section, plus an amount determined by the Board to be
17 equal to the employer's normal cost of the benefit plus
18 interest, but with all of the interest calculated from the date
19 the employee last became a member of the System or November 19,
20 1991, whichever is later, to the date of payment, an employee
21 may establish service credit for a period of up to 4 years
22 spent in active military service for which he does not qualify
23 for credit under Section 14-105, provided that (1) he was not
24 dishonorably discharged from such military service, and (2) the
25 amount of service credit established by a member under this
26 subsection (j), when added to the amount of military service

 

 

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1 credit granted to the member under subsection (b) of Section
2 14-105, shall not exceed 5 years. The change in the manner of
3 calculating interest under this subsection (j) made by this
4 amendatory Act of the 92nd General Assembly applies to credit
5 purchased by an employee on or after its effective date and
6 does not entitle any person to a refund of contributions or
7 interest already paid. In compliance with Section 14-152.1 of
8 this Act concerning new benefit increases, any new benefit
9 increase as a result of the changes to this subsection (j) made
10 by Public Act 95-483 this amendatory Act of the 95th General
11 Assembly is funded through the employee contributions provided
12 for in this subsection (j). Any new benefit increase as a
13 result of the changes made to this subsection (j) by Public Act
14 95-483 this amendatory Act of the 95th General Assembly is
15 exempt from the provisions of subsection (d) of Section
16 14-152.1.
17     (k) An employee who was employed on a full-time basis by
18 the Illinois State's Attorneys Association Statewide Appellate
19 Assistance Service LEAA-ILEC grant project prior to the time
20 that project became the State's Attorneys Appellate Service
21 Commission, now the Office of the State's Attorneys Appellate
22 Prosecutor, an agency of State government, may establish
23 creditable service for not more than 60 months service for such
24 employment by making contributions required under this
25 Section.
26     (l) By paying the contributions otherwise required under

 

 

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

 

 

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1 date of payment.
2     (m) Any person who rendered contractual services to a
3 member of the General Assembly as a worker in the member's
4 district office may establish creditable service for up to 3
5 years of those contractual services by making the contributions
6 required under this Section. The System shall determine a
7 full-time salary equivalent for the purpose of calculating the
8 required contribution. To establish credit under this
9 subsection, the applicant must apply to the System by March 1,
10 1998.
11     (n) Any person who rendered contractual services to a
12 member of the General Assembly as a worker providing
13 constituent services to persons in the member's district may
14 establish creditable service for up to 8 years of those
15 contractual services by making the contributions required
16 under this Section. The System shall determine a full-time
17 salary equivalent for the purpose of calculating the required
18 contribution. To establish credit under this subsection, the
19 applicant must apply to the System by March 1, 1998.
20     (o) A member who participated in the Illinois Legislative
21 Staff Internship Program may establish creditable service for
22 up to one year of that participation by making the contribution
23 required under this Section. The System shall determine a
24 full-time salary equivalent for the purpose of calculating the
25 required contribution. Credit may not be established under this
26 subsection for any period for which service credit is

 

 

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1 established under any other provision of this Code.
2     (p) By paying the contributions otherwise required under
3 this Section, plus an amount determined by the Board to be
4 equal to the employer's normal cost of the benefit plus
5 interest, a member may establish service credit for a period of
6 up to 8 years during which he or she was employed by the
7 Visually Handicapped Managers of Illinois in a vending program
8 operated under a contractual agreement with the Department of
9 Rehabilitation Services or its successor agency.
10     This subsection (p) applies without regard to whether the
11 person was in service on or after the effective date of this
12 amendatory Act of the 94th General Assembly. In the case of a
13 person who is receiving a retirement annuity on that effective
14 date, the increase, if any, shall begin to accrue on the first
15 annuity payment date following receipt by the System of the
16 contributions required under this subsection (p).
17     (q) By paying the required contributions under this
18 Section, plus an amount determined by the Board to be equal to
19 the employer's normal cost of the benefit plus interest, an
20 employee who was laid off but returned to any State employment
21 under circumstances in which the employee is considered to have
22 been in continuous service for purposes of determining
23 seniority may establish creditable service for the period of
24 the layoff, provided that (1) the applicant applies for the
25 creditable service under this subsection (q) within 6 months
26 after the effective date of this amendatory Act of the 95th

 

 

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1 94th General Assembly, (2) the applicant does not receive
2 credit for that period under any other provision of this Code,
3 (3) at the time of the layoff, the applicant is not in an
4 initial probationary status consistent with the rules of the
5 Department of Central Management Services, and (4) the total
6 amount of creditable service established by the applicant under
7 this subsection (q) does not exceed 3 years. For service
8 established under this subsection (q), the required employee
9 contribution shall be based on the rate of compensation earned
10 by the employee on the date of returning to employment after
11 the layoff and the contribution rate then in effect, and the
12 required interest shall be calculated from the date of
13 returning to employment after the layoff to the date of
14 payment. Funding for any new benefit increase, as defined in
15 Section 14-152.1 of this Act, that is created under this
16 subsection (q) will be provided by the employee contributions
17 required under this subsection (q).
18     (r) A member who participated in the University of Illinois
19 Government Public Service Internship Program (GPSI) may
20 establish creditable service for up to 2 years of that
21 participation by making the contribution required under this
22 Section, plus an amount determined by the Board to be equal to
23 the employer's normal cost of the benefit plus interest. The
24 System shall determine a full-time salary equivalent for the
25 purpose of calculating the required contribution. Credit may
26 not be established under this subsection for any period for

 

 

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1 which service credit is established under any other provision
2 of this Code.
3     (s) (r) A member who worked as a nurse under a contractual
4 agreement for the Department of Public Aid, or its successor
5 agency, the Department of Human Services, in the Client
6 Assessment Unit and was subsequently determined to be a State
7 employee by the United States Internal Revenue Service and the
8 Illinois Labor Relations Board may establish creditable
9 service for those contractual services by making the
10 contributions required under this Section. To establish credit
11 under this subsection, the applicant must apply to the System
12 by July 1, 2008.
13     The Department of Human Services shall pay an employer
14 contribution based upon an amount determined by the Board to be
15 equal to the employer's normal cost of the benefit, plus
16 interest.
17     In compliance with Section 14-152.1 added by Public Act
18 94-4, the cost of the benefits provided by Public Act 95-583
19 this amendatory Act of the 95th General Assembly are offset by
20 the required employee and employer contributions.
21 (Source: P.A. 94-612, eff. 8-18-05; 94-1111, eff. 2-27-07;
22 95-483, eff. 8-28-07; 95-583, eff. 8-31-07; 95-652, eff.
23 10-11-07; revised 11-9-07.)
 
24     Section 99. Effective date. This Act takes effect upon
25 becoming law.