Illinois General Assembly - Full Text of HB1712
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Full Text of HB1712  103rd General Assembly


Rep. Norine K. Hammond

Filed: 3/2/2023





10300HB1712ham001LRB103 27924 RPS 57925 a


2    AMENDMENT NO. ______. Amend House Bill 1712 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 15-103.1, 15-103.2, 15-103.3, 15-107,
615-135, 15-153.3, and 15-198 and by adding Sections 3-110.15,
715-113.13, and 15-153.4 as follows:
8    (40 ILCS 5/3-110.15 new)
9    Sec. 3-110.15. Transfer to Article 15. A participant who
10is actively employed as a police officer under Article 15 may
11make a written election to transfer up to 10 years of
12creditable service from a fund established under this Article
13to the State Universities Retirement System established under
14Article 15. Upon receiving a written election by a participant
15under this Section, the creditable service shall be
16transferred to the State Universities Retirement System as



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1soon as practicable upon payment by the police pension fund to
2the State Universities Retirement System of an amount equal
4        (1) the amounts accumulated to the credit of the
5    applicant on the books of the fund on the date of the
6    transfer; and
7        (2) employer contributions in an amount equal to the
8    amount determined under paragraph (1).
9    Participation in the police pension fund with respect to
10the service to be transferred shall terminate on the date of
11transfer. This Section does not allow reinstatement of credits
12in this Article that were previously forfeited.
13    (40 ILCS 5/15-103.1)
14    Sec. 15-103.1. Traditional Benefit Package. "Traditional
15benefit package": The defined benefit retirement program
16maintained under the System which includes retirement
17annuities payable directly from the System as provided in
18Sections 15-135 through 15-140 (but disregarding Section
1915-136.4), disability retirement annuities payable under
20Section 15-153.2, line of duty disability annuities under
21Section 15-153.4, death benefits payable directly from the
22System as provided in Sections 15-141 through 15-144,
23survivors insurance benefits payable directly from the System
24as provided in Sections 15-145 through 15-149, and
25contribution refunds as provided in Section 15-154. The



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1traditional benefit package also includes disability benefits
2as provided in Sections 15-150 through 15-153.3.
3(Source: P.A. 90-766, eff. 8-14-98.)
4    (40 ILCS 5/15-103.2)
5    Sec. 15-103.2. Portable Benefit Package. "Portable benefit
6package": The defined benefit retirement program maintained
7under the System which includes retirement annuities payable
8directly from the System as provided in Sections 15-135
9through 15-139 (specifically including Section 15-136.4),
10disability retirement annuities payable under Section
1115-153.2, line of duty disability annuities under Section
1215-153.4, death benefits payable directly from the System as
13provided in Sections 15-141 through 15-144, and contribution
14refunds as provided in Section 15-154. The portable benefit
15package also includes disability benefits as provided in
16Sections 15-150 through 15-153.3. The portable benefit package
17does not include the survivors insurance benefits payable
18directly from the System as provided in Sections 15-145
19through 15-149.
20(Source: P.A. 90-766, eff. 8-14-98.)
21    (40 ILCS 5/15-103.3)
22    Sec. 15-103.3. Self-Managed Plan. "Self-managed plan": The
23defined contribution retirement program maintained under the
24System as described in Section 15-158.2. The self-managed plan



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1also includes disability benefits as provided in Sections
215-150 through 15-153.4 15-153.3 (but disregarding disability
3retirement annuities under Section 15-153.2). The self-managed
4plan does not include retirement annuities, death benefits, or
5survivors insurance benefits payable directly from the System
6as provided in Sections 15-135 through 15-149 and Section
715-153.2, or refunds determined under Section 15-154.
8(Source: P.A. 90-766, eff. 8-14-98.)
9    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
10    Sec. 15-107. Employee.
11    (a) "Employee" means any member of the educational,
12administrative, secretarial, clerical, mechanical, labor or
13other staff of an employer whose employment is permanent and
14continuous or who is employed in a position in which services
15are expected to be rendered on a continuous basis for at least
164 months or one academic term, whichever is less, who (A)
17receives payment for personal services on a warrant issued
18pursuant to a payroll voucher certified by an employer and
19drawn by the State Comptroller upon the State Treasurer or by
20an employer upon trust, federal or other funds, or (B) is on a
21leave of absence without pay. Employment which is irregular,
22intermittent or temporary shall not be considered continuous
23for purposes of this paragraph.
24    However, a person is not an "employee" if he or she:
25        (1) is a student enrolled in and regularly attending



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1    classes in a college or university which is an employer,
2    and is employed on a temporary basis at less than full
3    time;
4        (2) is currently receiving a retirement annuity or a
5    disability retirement annuity under Section 15-153.2 from
6    this System;
7        (3) is on a military leave of absence;
8        (4) is eligible to participate in the Federal Civil
9    Service Retirement System and is currently making
10    contributions to that system based upon earnings paid by
11    an employer;
12        (5) is on leave of absence without pay for more than 60
13    days immediately following termination of disability
14    benefits under this Article;
15        (6) is hired after June 30, 1979 as a public service
16    employment program participant under the Federal
17    Comprehensive Employment and Training Act and receives
18    earnings in whole or in part from funds provided under
19    that Act; or
20        (7) is employed on or after July 1, 1991 to perform
21    services that are excluded by subdivision (a)(7)(f) or
22    (a)(19) of Section 210 of the federal Social Security Act
23    from the definition of employment given in that Section
24    (42 U.S.C. 410); or .
25        (8) receives a line of duty disability annuity under
26    Section 15-153.4.



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1    (b) Any employer may, by filing a written notice with the
2board, exclude from the definition of "employee" all persons
3employed pursuant to a federally funded contract entered into
4after July 1, 1982 with a federal military department in a
5program providing training in military courses to federal
6military personnel on a military site owned by the United
7States Government, if this exclusion is not prohibited by the
8federally funded contract or federal laws or rules governing
9the administration of the contract.
10    (c) Any person appointed by the Governor under the Civil
11Administrative Code of Illinois is an employee, if he or she is
12a participant in this system on the effective date of the
14    (d) A participant on lay-off status under civil service
15rules is considered an employee for not more than 120 days from
16the date of the lay-off.
17    (e) A participant is considered an employee during (1) the
18first 60 days of disability leave, (2) the period, not to
19exceed one year, in which his or her eligibility for
20disability benefits is being considered by the board or
21reviewed by the courts, and (3) the period he or she receives
22disability benefits under the provisions of Section 15-152,
23workers' compensation or occupational disease benefits, or
24disability income under an insurance contract financed wholly
25or partially by the employer.
26    (f) Absences without pay, other than formal leaves of



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1absence, of less than 30 calendar days, are not considered as
2an interruption of a person's status as an employee. If such
3absences during any period of 12 months exceed 30 work days,
4the employee status of the person is considered as interrupted
5as of the 31st work day.
6    (g) A staff member whose employment contract requires
7services during an academic term is to be considered an
8employee during the summer and other vacation periods, unless
9he or she declines an employment contract for the succeeding
10academic term or his or her employment status is otherwise
11terminated, and he or she receives no earnings during these
13    (h) An individual who was a participating employee
14employed in the fire department of the University of
15Illinois's Champaign-Urbana campus immediately prior to the
16elimination of that fire department and who immediately after
17the elimination of that fire department became employed by the
18fire department of the City of Urbana or the City of Champaign
19shall continue to be considered as an employee for purposes of
20this Article for so long as the individual remains employed as
21a firefighter by the City of Urbana or the City of Champaign.
22The individual shall cease to be considered an employee under
23this subsection (h) upon the first termination of the
24individual's employment as a firefighter by the City of Urbana
25or the City of Champaign.
26    (i) An individual who is employed on a full-time basis as



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1an officer or employee of a statewide teacher organization
2that serves System participants or an officer of a national
3teacher organization that serves System participants may
4participate in the System and shall be deemed an employee,
5provided that (1) the individual has previously earned
6creditable service under this Article, (2) the individual
7files with the System an irrevocable election to become a
8participant before January 5, 2012 (the effective date of
9Public Act 97-651), (3) the individual does not receive credit
10for that employment under any other Article of this Code, and
11(4) the individual first became a full-time employee of the
12teacher organization and becomes a participant before January
135, 2012 (the effective date of Public Act 97-651). An employee
14under this subsection (i) is responsible for paying to the
15System both (A) employee contributions based on the actual
16compensation received for service with the teacher
17organization and (B) employer contributions equal to the
18normal costs (as defined in Section 15-155) resulting from
19that service; all or any part of these contributions may be
20paid on the employee's behalf or picked up for tax purposes (if
21authorized under federal law) by the teacher organization.
22    A person who is an employee as defined in this subsection
23(i) may establish service credit for similar employment prior
24to becoming an employee under this subsection by paying to the
25System for that employment the contributions specified in this
26subsection, plus interest at the effective rate from the date



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1of service to the date of payment. However, credit shall not be
2granted under this subsection for any such prior employment
3for which the applicant received credit under any other
4provision of this Code, or during which the applicant was on a
5leave of absence under Section 15-113.2.
6    (j) A person employed by the State Board of Higher
7Education in a position with the Illinois Century Network as
8of June 30, 2004 shall be considered to be an employee for so
9long as he or she remains continuously employed after that
10date by the Department of Central Management Services in a
11position with the Illinois Century Network, the Bureau of
12Communication and Computer Services, or, if applicable, any
13successor bureau or the Department of Innovation and
14Technology and meets the requirements of subsection (a).
15    (k) The Board shall promulgate rules with respect to
16determining whether any person is an employee within the
17meaning of this Section. In the case of doubt as to whether any
18person is an employee within the meaning of this Section or any
19rule adopted by the Board, the decision of the Board shall be
21(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)
22    (40 ILCS 5/15-113.13 new)
23    Sec. 15-113.13. Transfer from Article 3. A police officer
24may elect to transfer up to 10 years of service credit to the
25System as set forth in Section 3-110.15. To establish



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1creditable service under this Section, the police officer may
2elect to do either of the following:
3        (1) pay to the System an amount to be determined by the
4    Board, equal to (i) the difference between the amount of
5    employee and employer contributions transferred to the
6    System under Section 3-110.15 and the amounts that would
7    have been contributed had such contributions been made at
8    the rates applicable to a police officer under this
9    Article, plus (ii) interest thereon at the actuarially
10    assumed rate, compounded annually, from the date of
11    service to the date of payment; or
12        (2) have the amount of his or her creditable service
13    established under this Section reduced by an amount
14    corresponding to the amount by which (i) the employer and
15    employee contributions that would have been required if he
16    or she had participated in the System as a police officer
17    during the period for which credit is being transferred,
18    plus interest thereon at the actuarially assumed rate,
19    compounded annually, from the date of termination of the
20    service for which credit is being transferred to the date
21    of payment, exceeds (ii) the amount actually transferred
22    to the System.
23    Notwithstanding the amount transferred by the Article 3
24fund pursuant to Section 3-110.15, in no event shall the
25service credit established under this Section exceed the
26lesser of 10 years or the actual amount of service credit that



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1had been earned in the Article 3 fund.
2    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
3    Sec. 15-135. Retirement annuities; conditions.
4    (a) This subsection (a) applies only to a Tier 1 member. A
5participant who retires in one of the following specified
6years with the specified amount of service is entitled to a
7retirement annuity at any age under the retirement program
8applicable to the participant:
9        35 years if retirement is in 1997 or before;
10        34 years if retirement is in 1998;
11        33 years if retirement is in 1999;
12        32 years if retirement is in 2000;
13        31 years if retirement is in 2001;
14        30 years if retirement is in 2002 or later.
15    A participant with 8 or more years of service after
16September 1, 1941, is entitled to a retirement annuity on or
17after attainment of age 55.
18    A participant with at least 5 but less than 8 years of
19service after September 1, 1941, is entitled to a retirement
20annuity on or after attainment of age 62.
21    A participant who has at least 25 years of service in this
22system as a police officer or firefighter is entitled to a
23retirement annuity on or after the attainment of age 50, if
24Rule 4 of Section 15-136 is applicable to the participant.
25    (a-5) A Tier 2 member is entitled to a retirement annuity



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1upon written application if he or she has attained age 67 and
2has at least 10 years of service credit and is otherwise
3eligible under the requirements of this Article. A Tier 2
4member who has attained age 62 and has at least 10 years of
5service credit and is otherwise eligible under the
6requirements of this Article may elect to receive the lower
7retirement annuity provided in subsection (b-5) of Section
815-136 of this Article.
9    (a-10) A Tier 2 member who has at least 20 years of service
10in this system as a police officer or firefighter is entitled
11to a retirement annuity upon written application on or after
12the attainment of age 60 if Rule 4 of Section 15-136 is
13applicable to the participant. A Tier 2 member who has at least
1420 years of service in this system as a police officer is
15entitled to a retirement annuity upon written application on
16or after the attainment of age 55 if Rule 4 of Section 15-136
17is applicable to the participant. The changes made to this
18subsection by this amendatory Act of the 103rd General
19Assembly and Public Act 101-610 this amendatory Act of the
20101st General Assembly apply retroactively to January 1, 2011.
21    (b) The annuity payment period shall begin on the date
22specified by the participant or the recipient of a disability
23retirement annuity submitting a written application. For a
24participant, the date on which the annuity payment period
25begins shall not be prior to termination of employment or more
26than one year before the application is received by the board;



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1however, if the participant is not an employee of an employer
2participating in this System or in a participating system as
3defined in Article 20 of this Code on April 1 of the calendar
4year next following the calendar year in which the participant
5attains the age specified under Section 401(a)(9) of the
6Internal Revenue Code of 1986, as amended, the annuity payment
7period shall begin on that date regardless of whether an
8application has been filed. For a recipient of a disability
9retirement annuity, the date on which the annuity payment
10period begins shall not be prior to the discontinuation of the
11disability retirement annuity under Section 15-153.2.
12    (c) An annuity is not payable if the amount provided under
13Section 15-136 is less than $10 per month.
14(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
15    (40 ILCS 5/15-153.3)  (from Ch. 108 1/2, par. 15-153.3)
16    Sec. 15-153.3. Automatic increase in disability benefit.
17Each disability benefit payable under Section 15-150 and
18calculated under Section 15-153 or 15-153.2 and each line of
19duty disability annuity under Section 15-153.4 that has not
20yet received an initial increase under this Section shall be
21increased by 0.25% of the monthly disability benefit
22multiplied by the number of full months that have elapsed
23since the benefit began on January 1, 2002 or the January 1
24next following the granting of the benefit, whichever occurs



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1    On each January 1 following the initial increase under
2this Section, the disability benefit shall be increased by 3%
3of the current amount of the benefit, including prior
4increases under this Article.
5    The changes made to this Section by this amendatory Act of
6the 92nd General Assembly apply without regard to whether the
7benefit recipient was in service on or after the effective
8date of this amendatory Act.
9(Source: P.A. 92-749, eff. 8-2-02.)
10    (40 ILCS 5/15-153.4 new)
11    Sec. 15-153.4. Line of duty disability annuity.
12    (a) This Section applies only to police officers, and the
13annuities provided under this Section are in lieu of the
14benefits under Section 15-150, disability retirement
15annuities, and retirement annuities. If a police officer, as
16the result of sickness, accident, or injury incurred in or
17resulting from the performance of an act of duty, is found to
18be physically or mentally disabled for service as a police
19officer so as to render necessary his or her suspension or
20retirement from the police service or is found to be unable to
21perform his or her duties as a police officer by reason of
22heart disease, stroke, tuberculosis, or any disease of the
23lungs or respiratory tract, resulting from service as a police
24officer, then the police officer shall be entitled to a line of
25duty disability annuity under this Section equal to the



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1greater of: (1) 65% of the salary attached to the rank on the
2police force held by the officer at the date of suspension of
3duty or retirement; or (2) the retirement annuity that the
4police officer would be eligible to receive if he or she
5retired (but not including any automatic annual increase in
6that retirement annuity). The amount of the benefit shall be
7subject to the reductions specified in Section 15-153.1.
8    Any police officer who suffers a heart attack or stroke as
9a result of the performance and discharge of police duty shall
10be considered to have been injured in the performance of an act
11of duty and shall be eligible for the benefits provided under
12this Section.
13    A police officer shall be considered to be in the
14performance of an act of duty while on any assignment approved
15by the police officer's chief, whether the assignment is on or
16off the employer's property.
17    (b) A line of duty disability annuity shall not be paid
18unless there is filed with the Board certificates of the
19police officer's disability, subscribed and sworn to by the
20police officer if he or she is not under legal disability, or
21by a representative if the police officer is under legal
22disability, and by the police surgeon (if there is one) and 3
23practicing physicians selected by the Board. The Board may
24require other evidence of disability. Medical examination of a
25police officer receiving a line of duty disability annuity
26shall be made at least once each year prior to attainment of



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1age 50, as verification of the continuance of disability for
2service as a police officer. No examination shall be required
3after age 50.
4    (c) The System may take appropriate steps to verify the
5applicant's disability and earnings status and, for this
6purpose, may request from the Department of Revenue a
7certified copy of the applicant's Illinois income tax return
8for any year for which an annuity under this Section is payable
9or has been paid.
10    (d) A disabled police officer who (1) is receiving a line
11of duty disability annuity, (2) annually files with the
12System, while the line of duty disability annuity remains
13payable, a written application for the benefits of this
14subsection, including an affidavit stating that the applicant
15has not earned any income from gainful employment during the
16most recently concluded tax year and a copy of his or her most
17recent Illinois income tax return, (3) has service credit
18under this Article for at least 7 years of active duty, and (4)
19has been receiving the annuity under this Section for a period
20that, when added to the officer's total service credit under
21this Article, equals at least 20 years, shall be eligible to
22receive an annual noncompounded increase in his or her annuity
23under this Section, equal to 3% of the original annuity. The
24annual increase shall accrue on each anniversary of the
25initial payment date of the line of duty disability annuity
26under this Section for so long as the annuity remains payable



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1to the disabled police officer and the required annual
2application is made, except that the annual increases under
3this Section shall cease if the disabled police officer earns
4income from gainful employment. Within 60 days after accepting
5an initial application under this Section, the System shall
6pay to the disabled police officer, in a lump sum without
7interest, the amounts resulting from the annual increases that
8have accrued retroactively.
9    (e) This Section is not limited to persons in active
10service on or after the effective date of this amendatory Act
11of the 103rd General Assembly, but it applies only to an
12annuity that is payable under this Section to a disabled
13police officer (rather than a survivor). Upon the death of the
14disabled police officer, the line of duty disability annuity
15payable under this Section to his or her survivors shall
16include any annual increases previously received, but no
17additional increases shall accrue under this subsection.
18    (f) If a police officer who receives a line of duty
19disability annuity under this Section dies while still
20disabled, the line of duty disability annuity under this
21Section shall continue to be paid to his or her survivors in
22the sequence provided in Section 15-145 in lieu of the
23survivors insurance benefits provided in Section 15-145,
24unless the survivors insurance benefits are greater.
25    (g) The Board shall adopt rules governing the filing,
26investigation, control, and supervision of line of duty



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1disability annuity claims.
2    (40 ILCS 5/15-198)
3    Sec. 15-198. Application and expiration of new benefit
5    (a) As used in this Section, "new benefit increase" means
6an increase in the amount of any benefit provided under this
7Article, or an expansion of the conditions of eligibility for
8any benefit under this Article, that results from an amendment
9to this Code that takes effect after June 1, 2005 (the
10effective date of Public Act 94-4). "New benefit increase",
11however, does not include any benefit increase resulting from
12the changes made to Article 1 or this Article by Public Act
13100-23, Public Act 100-587, Public Act 100-769, Public Act
14101-10, Public Act 101-610, Public Act 102-16, or this
15amendatory Act of the 103rd General Assembly this amendatory
16Act of the 102nd General Assembly.
17    (b) Notwithstanding any other provision of this Code or
18any subsequent amendment to this Code, every new benefit
19increase is subject to this Section and shall be deemed to be
20granted only in conformance with and contingent upon
21compliance with the provisions of this Section.
22    (c) The Public Act enacting a new benefit increase must
23identify and provide for payment to the System of additional
24funding at least sufficient to fund the resulting annual
25increase in cost to the System as it accrues.



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1    Every new benefit increase is contingent upon the General
2Assembly providing the additional funding required under this
3subsection. The Commission on Government Forecasting and
4Accountability shall analyze whether adequate additional
5funding has been provided for the new benefit increase and
6shall report its analysis to the Public Pension Division of
7the Department of Insurance. A new benefit increase created by
8a Public Act that does not include the additional funding
9required under this subsection is null and void. If the Public
10Pension Division determines that the additional funding
11provided for a new benefit increase under this subsection is
12or has become inadequate, it may so certify to the Governor and
13the State Comptroller and, in the absence of corrective action
14by the General Assembly, the new benefit increase shall expire
15at the end of the fiscal year in which the certification is
17    (d) Every new benefit increase shall expire 5 years after
18its effective date or on such earlier date as may be specified
19in the language enacting the new benefit increase or provided
20under subsection (c). This does not prevent the General
21Assembly from extending or re-creating a new benefit increase
22by law.
23    (e) Except as otherwise provided in the language creating
24the new benefit increase, a new benefit increase that expires
25under this Section continues to apply to persons who applied
26and qualified for the affected benefit while the new benefit



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1increase was in effect and to the affected beneficiaries and
2alternate payees of such persons, but does not apply to any
3other person, including, without limitation, a person who
4continues in service after the expiration date and did not
5apply and qualify for the affected benefit while the new
6benefit increase was in effect.
7(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
8101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
9    Section 90. The State Mandates Act is amended by adding
10Section 8.47 as follows:
11    (30 ILCS 805/8.47 new)
12    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
138 of this Act, no reimbursement by the State is required for
14the implementation of any mandate created by this amendatory
15Act of the 103rd General Assembly.".