Full Text of SB1345 100th General Assembly
SB1345enr 100TH GENERAL ASSEMBLY |
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| 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 | | Sections 1-160 and 15-108.2 as follows:
| 6 | | (40 ILCS 5/1-160)
| 7 | | Sec. 1-160. Provisions applicable to new hires. | 8 | | (a) The provisions of this Section apply to a person who, | 9 | | on or after January 1, 2011, first becomes a member or a | 10 | | participant under any reciprocal retirement system or pension | 11 | | fund established under this Code, other than a retirement | 12 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 13 | | 15 or 18 of this Code, notwithstanding any other provision of | 14 | | this Code to the contrary, but do not apply to any self-managed | 15 | | plan established under this Code, to any person with respect to | 16 | | service as a sheriff's law enforcement employee under Article | 17 | | 7, or to any participant of the retirement plan established | 18 | | under Section 22-101. Notwithstanding anything to the contrary | 19 | | in this Section, for purposes of this Section, a person who | 20 | | participated in a retirement system under Article 15 prior to | 21 | | January 1, 2011 shall be deemed a person who first became a | 22 | | member or participant prior to January 1, 2011 under any | 23 | | retirement system or pension fund subject to this Section. The |
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| 1 | | changes made to this Section by Public Act 98-596 are a | 2 | | clarification of existing law and are intended to be | 3 | | retroactive to January 1, 2011 (the effective date of Public | 4 | | Act 96-889), notwithstanding the provisions of Section 1-103.1 | 5 | | of this Code. | 6 | | This Section does not apply to a person who first becomes a | 7 | | noncovered employee member or participant under Article 14 on | 8 | | or after the implementation date of the plan created under | 9 | | Section 1-161 for that Article, unless that person elects under | 10 | | subsection (b) of Section 1-161 to instead receive the benefits | 11 | | provided under this Section and the applicable provisions of | 12 | | that Article. | 13 | | This Section does not apply to a person who first becomes a | 14 | | member or participant under Article 16 on or after the | 15 | | implementation date of the plan created under Section 1-161 for | 16 | | that Article, unless that person elects under subsection (b) of | 17 | | Section 1-161 to instead receive the benefits provided under | 18 | | this Section and the applicable provisions of that Article. | 19 | | This Section does not apply to a person who elects under | 20 | | subsection (c-5) of Section 1-161 to receive the benefits under | 21 | | Section 1-161. | 22 | | This Section does not apply to a person who first becomes a | 23 | | member or participant of an affected pension fund on or after 6 | 24 | | months after the resolution or ordinance date, as defined in | 25 | | Section 1-162, unless that person elects under subsection (c) | 26 | | of Section 1-162 to receive the benefits provided under this |
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| 1 | | Section and the applicable provisions of the Article under | 2 | | which he or she is a member or participant. | 3 | | (b) "Final average salary" means the average monthly (or | 4 | | annual) salary obtained by dividing the total salary or | 5 | | earnings calculated under the Article applicable to the member | 6 | | or participant during the 96 consecutive months (or 8 | 7 | | consecutive years) of service within the last 120 months (or 10 | 8 | | years) of service in which the total salary or earnings | 9 | | calculated under the applicable Article was the highest by the | 10 | | number of months (or years) of service in that period. For the | 11 | | purposes of a person who first becomes a member or participant | 12 | | of any retirement system or pension fund to which this Section | 13 | | applies on or after January 1, 2011, in this Code, "final | 14 | | average salary" shall be substituted for the following: | 15 | | (1) In Article 7 (except for service as sheriff's law | 16 | | enforcement employees), "final rate of earnings". | 17 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 18 | | annual salary for any 4 consecutive years within the last | 19 | | 10 years of service immediately preceding the date of | 20 | | withdrawal". | 21 | | (3) In Article 13, "average final salary". | 22 | | (4) In Article 14, "final average compensation". | 23 | | (5) In Article 17, "average salary". | 24 | | (6) In Section 22-207, "wages or salary received by him | 25 | | at the date of retirement or discharge". | 26 | | (b-5) Beginning on January 1, 2011, for all purposes under |
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| 1 | | this Code (including without limitation the calculation of | 2 | | benefits and employee contributions), the annual earnings, | 3 | | salary, or wages (based on the plan year) of a member or | 4 | | participant to whom this Section applies shall not exceed | 5 | | $106,800; however, that amount shall annually thereafter be | 6 | | increased by the lesser of (i) 3% of that amount, including all | 7 | | previous adjustments, or (ii) one-half the annual unadjusted | 8 | | percentage increase (but not less than zero) in the consumer | 9 | | price index-u
for the 12 months ending with the September | 10 | | preceding each November 1, including all previous adjustments. | 11 | | For the purposes of this Section, "consumer price index-u" | 12 | | means
the index published by the Bureau of Labor Statistics of | 13 | | the United States
Department of Labor that measures the average | 14 | | change in prices of goods and
services purchased by all urban | 15 | | consumers, United States city average, all
items, 1982-84 = | 16 | | 100. The new amount resulting from each annual adjustment
shall | 17 | | be determined by the Public Pension Division of the Department | 18 | | of Insurance and made available to the boards of the retirement | 19 | | systems and pension funds by November 1 of each year. | 20 | | (c) A member or participant is entitled to a retirement
| 21 | | annuity upon written application if he or she has attained age | 22 | | 67 (beginning January 1, 2015, age 65 with respect to service | 23 | | under Article 12 of this Code that is subject to this Section) | 24 | | and has at least 10 years of service credit and is otherwise | 25 | | eligible under the requirements of the applicable Article. | 26 | | A member or participant who has attained age 62 (beginning |
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| 1 | | January 1, 2015, age 60 with respect to service under Article | 2 | | 12 of this Code that is subject to this Section) and has at | 3 | | least 10 years of service credit and is otherwise eligible | 4 | | under the requirements of the applicable Article may elect to | 5 | | receive the lower retirement annuity provided
in subsection (d) | 6 | | of this Section. | 7 | | (c-5) A person who first becomes a member or a participant | 8 | | under Article 8 or Article 11 of this Code on or after the | 9 | | effective date of this amendatory Act of the 100th General | 10 | | Assembly, notwithstanding any other provision of this Code to | 11 | | the contrary, is entitled to a retirement annuity upon written | 12 | | application if he or she has attained age 65 and has at least | 13 | | 10 years of service credit under Article 8 or Article 11 of | 14 | | this Code and is otherwise eligible under the requirements of | 15 | | Article 8 or Article 11 of this Code, whichever is applicable. | 16 | | (d) The retirement annuity of a member or participant who | 17 | | is retiring after attaining age 62 (beginning January 1, 2015, | 18 | | age 60 with respect to service under Article 12 of this Code | 19 | | that is subject to this Section) with at least 10 years of | 20 | | service credit shall be reduced by one-half
of 1% for each full | 21 | | month that the member's age is under age 67 (beginning January | 22 | | 1, 2015, age 65 with respect to service under Article 12 of | 23 | | this Code that is subject to this Section). | 24 | | (d-5) The retirement annuity of a person who first becomes | 25 | | a member or a participant under Article 8 or Article 11 of this | 26 | | Code on or after the effective date of this amendatory Act of |
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| 1 | | the 100th General Assembly who is retiring at age 60 with at | 2 | | least 10 years of service credit under Article 8 or Article 11 | 3 | | shall be reduced by one-half of 1% for each full month that the | 4 | | member's age is under age 65. | 5 | | (d-10) Each person who first became a member or participant | 6 | | under Article 8 or Article 11 of this Code on or after January | 7 | | 1, 2011 and prior to the effective date of this amendatory Act | 8 | | of the 100th General Assembly shall make an irrevocable | 9 | | election either: | 10 | | (i) to be eligible for the reduced retirement age | 11 | | provided in subsections (c-5)
and (d-5) of this Section, | 12 | | the eligibility for which is conditioned upon the member or | 13 | | participant agreeing to the increases in employee | 14 | | contributions for age and service annuities provided in | 15 | | subsection (a-5) of Section 8-174 of this Code (for service | 16 | | under Article 8) or subsection (a-5) of Section 11-170 of | 17 | | this Code (for service under Article 11); or | 18 | | (ii) to not agree to item (i) of this subsection | 19 | | (d-10), in which case the member or participant shall | 20 | | continue to be subject to the retirement age provisions in | 21 | | subsections (c) and (d) of this Section and the employee | 22 | | contributions for age and service annuity as provided in | 23 | | subsection (a) of Section 8-174 of this Code (for service | 24 | | under Article 8) or subsection (a) of Section 11-170 of | 25 | | this Code (for service under Article 11). | 26 | | The election provided for in this subsection shall be made |
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| 1 | | between October 1, 2017 and November 15, 2017. A person subject | 2 | | to this subsection who makes the required election shall remain | 3 | | bound by that election. A person subject to this subsection who | 4 | | fails for any reason to make the required election within the | 5 | | time specified in this subsection shall be deemed to have made | 6 | | the election under item (ii). | 7 | | (e) Any retirement annuity or supplemental annuity shall be | 8 | | subject to annual increases on the January 1 occurring either | 9 | | on or after the attainment of age 67 (beginning January 1, | 10 | | 2015, age 65 with respect to service under Article 12 of this | 11 | | Code that is subject to this Section and beginning on the | 12 | | effective date of this amendatory Act of the 100th General | 13 | | Assembly, age 65 with respect to persons who: (i) first became | 14 | | members or participants under Article 8 or Article 11 of this | 15 | | Code on or after the effective date of this amendatory Act of | 16 | | the 100th General Assembly; or (ii) first became members or | 17 | | participants under Article 8 or Article 11 of this Code on or | 18 | | after January 1, 2011 and before the effective date of this | 19 | | amendatory Act of the 100th General Assembly and made the | 20 | | election under item (i) of subsection (d-10) of this Section) | 21 | | or the first anniversary of the annuity start date, whichever | 22 | | is later. Each annual increase shall be calculated at 3% or | 23 | | one-half the annual unadjusted percentage increase (but not | 24 | | less than zero) in the consumer price index-u for the 12 months | 25 | | ending with the September preceding each November 1, whichever | 26 | | is less, of the originally granted retirement annuity. If the |
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| 1 | | annual unadjusted percentage change in the consumer price | 2 | | index-u for the 12 months ending with the September preceding | 3 | | each November 1 is zero or there is a decrease, then the | 4 | | annuity shall not be increased. | 5 | | For the purposes of Section 1-103.1 of this Code, the | 6 | | changes made to this Section by this amendatory Act of the | 7 | | 100th General Assembly are applicable without regard to whether | 8 | | the employee was in active service on or after the effective | 9 | | date of this amendatory Act of the 100th General Assembly. | 10 | | (f) The initial survivor's or widow's annuity of an | 11 | | otherwise eligible survivor or widow of a retired member or | 12 | | participant who first became a member or participant on or | 13 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 14 | | retired member's or participant's retirement annuity at the | 15 | | date of death. In the case of the death of a member or | 16 | | participant who has not retired and who first became a member | 17 | | or participant on or after January 1, 2011, eligibility for a | 18 | | survivor's or widow's annuity shall be determined by the | 19 | | applicable Article of this Code. The initial benefit shall be | 20 | | 66 2/3% of the earned annuity without a reduction due to age. A | 21 | | child's annuity of an otherwise eligible child shall be in the | 22 | | amount prescribed under each Article if applicable. Any | 23 | | survivor's or widow's annuity shall be increased (1) on each | 24 | | January 1 occurring on or after the commencement of the annuity | 25 | | if
the deceased member died while receiving a retirement | 26 | | annuity or (2) in
other cases, on each January 1 occurring |
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| 1 | | after the first anniversary
of the commencement of the annuity. | 2 | | Each annual increase shall be calculated at 3% or one-half the | 3 | | annual unadjusted percentage increase (but not less than zero) | 4 | | in the consumer price index-u for the 12 months ending with the | 5 | | September preceding each November 1, whichever is less, of the | 6 | | originally granted survivor's annuity. If the annual | 7 | | unadjusted percentage change in the consumer price index-u for | 8 | | the 12 months ending with the September preceding each November | 9 | | 1 is zero or there is a decrease, then the annuity shall not be | 10 | | increased. | 11 | | (g) The benefits in Section 14-110 apply only if the person | 12 | | is a State policeman, a fire fighter in the fire protection | 13 | | service of a department, or a security employee of the | 14 | | Department of Corrections or the Department of Juvenile | 15 | | Justice, as those terms are defined in subsection (b) of | 16 | | Section 14-110. A person who meets the requirements of this | 17 | | Section is entitled to an annuity calculated under the | 18 | | provisions of Section 14-110, in lieu of the regular or minimum | 19 | | retirement annuity, only if the person has withdrawn from | 20 | | service with not less than 20
years of eligible creditable | 21 | | service and has attained age 60, regardless of whether
the | 22 | | attainment of age 60 occurs while the person is
still in | 23 | | service. | 24 | | (h) If a person who first becomes a member or a participant | 25 | | of a retirement system or pension fund subject to this Section | 26 | | on or after January 1, 2011 is receiving a retirement annuity |
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| 1 | | or retirement pension under that system or fund and becomes a | 2 | | member or participant under any other system or fund created by | 3 | | this Code and is employed on a full-time basis, except for | 4 | | those members or participants exempted from the provisions of | 5 | | this Section under subsection (a) of this Section, then the | 6 | | person's retirement annuity or retirement pension under that | 7 | | system or fund shall be suspended during that employment. Upon | 8 | | termination of that employment, the person's retirement | 9 | | annuity or retirement pension payments shall resume and be | 10 | | recalculated if recalculation is provided for under the | 11 | | applicable Article of this Code. | 12 | | If a person who first becomes a member of a retirement | 13 | | system or pension fund subject to this Section on or after | 14 | | January 1, 2012 and is receiving a retirement annuity or | 15 | | retirement pension under that system or fund and accepts on a | 16 | | contractual basis a position to provide services to a | 17 | | governmental entity from which he or she has retired, then that | 18 | | person's annuity or retirement pension earned as an active | 19 | | employee of the employer shall be suspended during that | 20 | | contractual service. A person receiving an annuity or | 21 | | retirement pension under this Code shall notify the pension | 22 | | fund or retirement system from which he or she is receiving an | 23 | | annuity or retirement pension, as well as his or her | 24 | | contractual employer, of his or her retirement status before | 25 | | accepting contractual employment. A person who fails to submit | 26 | | such notification shall be guilty of a Class A misdemeanor and |
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| 1 | | required to pay a fine of $1,000. Upon termination of that | 2 | | contractual employment, the person's retirement annuity or | 3 | | retirement pension payments shall resume and, if appropriate, | 4 | | be recalculated under the applicable provisions of this Code. | 5 | | (i) (Blank). | 6 | | (j) In the case of a conflict between the provisions of | 7 | | this Section and any other provision of this Code, the | 8 | | provisions of this Section shall control.
| 9 | | (Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17.) | 10 | | (40 ILCS 5/15-108.2) | 11 | | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who | 12 | | first becomes a participant under this Article on or after | 13 | | January 1, 2011 and before the implementation date, as defined | 14 | | under subsection (a) of Section 1-161, determined by the Board | 15 | | 6 months after the effective date of this amendatory Act of the | 16 | | 100th General Assembly , other than a person in the self-managed | 17 | | plan established under Section 15-158.2 or a person who makes | 18 | | the election under subsection (c) of Section 1-161, unless the | 19 | | person is otherwise a Tier 1 member. The changes made to this | 20 | | Section by this amendatory Act of the 98th General Assembly are | 21 | | a correction of existing law and are intended to be retroactive | 22 | | to the effective date of Public Act 96-889, notwithstanding the | 23 | | provisions of Section 1-103.1 of this Code.
| 24 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 25 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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