Full Text of SB2433 93rd General Assembly
SB2433 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2433
Introduced 2/3/2004, by Vince Demuzio SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/16-106 |
from Ch. 108 1/2, par. 16-106 |
40 ILCS 5/16-118 |
from Ch. 108 1/2, par. 16-118 |
40 ILCS 5/16-133.3 |
from Ch. 108 1/2, par. 16-133.3 |
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Amends the Illinois Pension Code. Provides that an annuitant may accept employment as a teacher with the Illinois School for the Deaf or the Illinois School for the Visually Impaired for an unlimited period without impairing his or her status as a retired teacher if (1) the annuitant accepts that employment in order to fill a vacancy caused by a lack of qualified applicants for teaching positions at either of those schools and (2) the annuitant is qualified to fill that vacancy. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2433 |
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LRB093 20500 LRD 46292 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 16-106, 16-118 and 16-133.3 as follows:
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| (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
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| Sec. 16-106. Teacher. "Teacher": The following | 8 |
| individuals, provided
that, for employment prior to July 1, | 9 |
| 1990, they are employed on a
full-time basis, or if not | 10 |
| full-time, on a permanent and continuous basis
in a position in | 11 |
| which services are expected to be rendered for at least
one | 12 |
| school term:
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| (1) Any educational, administrative, professional or | 14 |
| other staff employed
in the public common schools included | 15 |
| within this system in a position
requiring certification | 16 |
| under the law governing the certification of
teachers;
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| (2) Any educational, administrative, professional or | 18 |
| other staff employed
in any facility of the Department of | 19 |
| Children and Family Services or the
Department of Human | 20 |
| Services, in a position requiring certification under
the | 21 |
| law governing the certification of teachers, and any person | 22 |
| who (i)
works in such a position for the Department of | 23 |
| Corrections, (ii) was a member
of this System on May 31, | 24 |
| 1987, and (iii) did not elect to become a member of
the | 25 |
| State Employees' Retirement System pursuant to Section | 26 |
| 14-108.2 of this
Code; except that "teacher" does not | 27 |
| include any person who (A) becomes
a security employee of | 28 |
| the Department of Human Services, as defined in
Section | 29 |
| 14-110, after June 28, 2001 (the effective date of Public | 30 |
| Act
92-14), or (B) becomes a member of the State Employees'
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| Retirement System pursuant to Section 14-108.2c of this | 32 |
| Code;
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| (3) Any regional superintendent of schools, assistant | 2 |
| regional
superintendent of schools, State Superintendent | 3 |
| of Education; any person
employed by the State Board of | 4 |
| Education as an executive; any executive of
the boards | 5 |
| engaged in the service of public common school education in
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| school districts covered under this system of which the | 7 |
| State
Superintendent of Education is an ex-officio member;
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| (4) Any employee of a school board association | 9 |
| operating in compliance
with Article 23 of the School Code | 10 |
| who is certificated under the law
governing the | 11 |
| certification of teachers;
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| (5) Any person employed by the retirement system
who:
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| (i) was an employee of and a participant in the | 14 |
| system on August 17,
2001 (the effective date of Public | 15 |
| Act 92-416), or
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| (ii) becomes an employee of the system on or after | 17 |
| August 17, 2001;
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| (6) Any educational, administrative, professional or | 19 |
| other staff
employed by and under the supervision and | 20 |
| control of a regional
superintendent of schools, provided | 21 |
| such employment position requires the
person to be | 22 |
| certificated under the law governing the certification of
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| teachers and is in an educational program serving 2 or more | 24 |
| districts in
accordance with a joint agreement authorized | 25 |
| by the School Code or by federal
legislation;
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| (7) Any educational, administrative, professional or | 27 |
| other staff employed
in an educational program serving 2 or | 28 |
| more school districts in accordance
with a joint agreement | 29 |
| authorized by the School Code or by federal
legislation and | 30 |
| in a position requiring certification under the laws
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| governing the certification of teachers;
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| (8) Any officer or employee of a statewide teacher | 33 |
| organization or
officer of a national teacher organization | 34 |
| who is certified under the law
governing certification of | 35 |
| teachers, provided: (i) the individual had
previously | 36 |
| established creditable service under this Article, (ii) |
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| the
individual files with the system an irrevocable | 2 |
| election to become a member,
and (iii) the individual does | 3 |
| not receive credit for such service under any
other Article | 4 |
| of this Code;
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| (9) Any educational, administrative, professional, or | 6 |
| other staff
employed in a charter school operating in | 7 |
| compliance with the Charter
Schools Law who is certificated | 8 |
| under the law governing the certification
of teachers.
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| An annuitant receiving a retirement annuity under this | 10 |
| Article or under
Article 17 of this Code who is employed by a | 11 |
| board of education
or other employer as permitted under Section | 12 |
| 16-118
or 16-150.1 is not a "teacher" for purposes of this | 13 |
| Article. A person who
has received a single-sum retirement | 14 |
| benefit under Section 16-136.4 of this
Article is not a | 15 |
| "teacher" for purposes of this Article. An annuitant receiving | 16 |
| a retirement annuity who accepts employment as a teacher with | 17 |
| the Illinois School for the Deaf or the Illinois School for the | 18 |
| Visually Impaired to fill a vacancy caused by a lack of | 19 |
| qualified applicants for teaching positions at either of those | 20 |
| schools and who is qualified to fill that vacancy and who is | 21 |
| authorized under subsection (a) of Section 16-118 to accept | 22 |
| that employment without impairing his or her status as a | 23 |
| retired teacher is not a "teacher" for purposes of this Article | 24 |
| with respect to that employment.
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| (Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01;
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| 92-651, eff. 7-11-02; 93-320, eff. 7-23-03.)
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| (40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118)
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| Sec. 16-118. Retirement. "Retirement": Entry upon a | 30 |
| retirement annuity
or receipt of a single-sum retirement | 31 |
| benefit granted under this Article
after termination of active | 32 |
| service as a teacher.
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| (a) An annuitant receiving a retirement annuity other than | 34 |
| a disability
retirement annuity may accept employment as a | 35 |
| teacher from a school board
or other employer specified in |
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| Section 16-106 without impairing retirement
status, if that | 2 |
| employment: (1) is not within the school year during which
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| service was terminated; and (2) does not exceed 100 paid days | 4 |
| or 500 paid
hours in any school year (during the period | 5 |
| beginning July 1, 2001 through
June 30, 2006, 120 paid days or | 6 |
| 600 paid hours in each school year). Where
such permitted | 7 |
| employment is partly on a daily and partly on an hourly basis,
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| a day shall be considered as 5 hours. Notwithstanding any | 9 |
| provision in this subsection (a) to the contrary, the | 10 |
| limitations in items (1) and (2) of this subsection (a) do not | 11 |
| apply to an annuitant receiving a retirement annuity, including | 12 |
| an annuitant who took advantage of the program of early | 13 |
| retirement benefits provided under Section 16-133.3, but not | 14 |
| including an annuitant receiving a disability
retirement | 15 |
| annuity, if (i) the annuitant accepts employment as a teacher | 16 |
| with the Illinois School for the Deaf or the Illinois School | 17 |
| for the Visually Impaired to fill a vacancy caused by a lack of | 18 |
| qualified applicants for teaching positions at either of those | 19 |
| schools and (ii) the annuitant is qualified to fill that | 20 |
| vacancy.
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| (b) Subsection (a) does not apply to an annuitant who | 22 |
| returns to teaching
under the program established in Section | 23 |
| 16-150.1, for the duration of his or
her participation in that | 24 |
| program.
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| (Source: P.A. 92-416, eff. 8-17-01; 93-320, eff. 7-23-03.)
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| (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3)
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| Sec. 16-133.3. Early retirement incentives for State | 28 |
| employees.
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| (a) To be eligible for the benefits provided in this | 30 |
| Section, a person
must:
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| (1) be a member of this System who, on any day during | 32 |
| June, 2002, is
(i) in active payroll status as a full-time | 33 |
| teacher employed by a department
and an active contributor | 34 |
| to this System with respect to that employment, or
(ii) on | 35 |
| layoff status from such a position with a right of |
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| re-employment or
recall to service, or (iii) receiving a | 2 |
| disability benefit under Section
16-149 or 16-149.1, but | 3 |
| only if the member has not been receiving that benefit
for | 4 |
| a continuous period of more than 2 years as of the date of | 5 |
| application;
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| (2) not have received any retirement annuity under this | 7 |
| Article
beginning earlier than August 1, 2002;
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| (3) file with the Board on or before December 31, 2002 | 9 |
| a written
application requesting the benefits provided in | 10 |
| this Section;
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| (4) terminate employment under this Article no later | 12 |
| than December 31,
2002 (or the date established under | 13 |
| subsection (d), if applicable);
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| (5) by the date of termination of service, have at | 15 |
| least 8 years of
creditable service under this Article, | 16 |
| without the use of any creditable
service established under | 17 |
| this Section;
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| (6) by the date of termination of service, have at | 19 |
| least 5 years
of service credit earned while participating | 20 |
| in the System as a teacher
employed by a department; and
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| (7) not receive any early retirement benefit under | 22 |
| Section 14-108.3 of
this Code.
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| For the purposes of this Section, "department" means a | 24 |
| department as defined
in Section 14-103.04 that employs a | 25 |
| teacher as defined in this Article.
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| (b) An eligible person may establish up to 5 years of | 27 |
| creditable service
under this Article by making the | 28 |
| contributions
specified in subsection (c). In addition, for | 29 |
| each period of creditable
service established under this | 30 |
| Section, a person's age at retirement shall
be deemed to be | 31 |
| enhanced by an equivalent period.
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| The creditable service established under this Section may | 33 |
| be used for all
purposes under this Article and the Retirement | 34 |
| Systems Reciprocal Act,
except for the computation of final | 35 |
| average salary, the determination of salary
or compensation | 36 |
| under this Article or any other Article of this Code, or the
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| determination of eligibility for or the computation of benefits | 2 |
| under Section
16-133.2.
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| The age enhancement established under this Section may be | 4 |
| used for all
purposes under this Article (including calculation | 5 |
| of a proportionate annuity
payable by this System under the | 6 |
| Retirement Systems Reciprocal Act), except for
purposes of a | 7 |
| retirement annuity under Section 16-133(a)(A), a
reversionary | 8 |
| annuity under Section 16-136, the required distributions under
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| Section 16-142.3, and the determination of eligibility for or | 10 |
| the computation
of benefits under Section 16-133.2. Age | 11 |
| enhancement established under this
Section may be used in | 12 |
| determining benefits payable under Article 14 of this
Code | 13 |
| under the Retirement Systems Reciprocal Act (subject to the | 14 |
| limitations
on the use of age enhancement provided in Section | 15 |
| 14-108.3); age enhancement
established under this Section | 16 |
| shall not be used in determining benefits
payable under other | 17 |
| Articles of this Code under the Retirement Systems
Reciprocal | 18 |
| Act.
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| (c) For all creditable service established under this | 20 |
| Section, a person
must pay to the System an employee | 21 |
| contribution to be determined by the
System, equal to 9.0% of | 22 |
| the member's highest annual salary rate that would be
used in | 23 |
| the determination of the average salary for retirement annuity | 24 |
| purposes
if the member retired immediately after withdrawal, | 25 |
| for each year of creditable
service established under this | 26 |
| Section.
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| If the member receives a lump sum payment for accumulated | 28 |
| vacation, sick
leave, and personal leave upon withdrawal from | 29 |
| service, and the net amount of
that lump sum payment is at | 30 |
| least as great as the amount of the contribution
required under | 31 |
| this Section, the entire contribution must be paid by the
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| employee by payroll deduction. If there is no such lump sum | 33 |
| payment, or if it
is less than the contribution required under | 34 |
| this Section, the member shall
make an initial payment by | 35 |
| payroll deduction, equal to the net amount of the
lump sum | 36 |
| payment for accumulated vacation, sick leave, and personal |
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| leave,
and have the remaining amount due treated as a reduction | 2 |
| from the retirement
annuity in 24 equal monthly installments | 3 |
| beginning in the month in which the
retirement annuity takes | 4 |
| effect. The required contribution may be paid as a
pre-tax | 5 |
| deduction from earnings.
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| (d) In order to ensure that the efficient operation of | 7 |
| State government
is not jeopardized by the simultaneous | 8 |
| retirement of large numbers of key
personnel, the director or | 9 |
| other head of a department may, for key employees
of that | 10 |
| department, extend the December 31, 2002 deadline for | 11 |
| terminating
employment under this Article established in | 12 |
| subdivision (a)(4) of this
Section to a date not later than | 13 |
| April 30, 2003 by so notifying the
System in writing by | 14 |
| December 31, 2002.
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| (e) Except as otherwise provided in Section 16-118, a
A | 16 |
| person who has received any age enhancement or creditable | 17 |
| service
under this Section and who reenters contributing | 18 |
| service under this Article or
Article 14 shall thereby forfeit | 19 |
| that age enhancement and creditable service,
and become | 20 |
| entitled to a refund of the contributions made pursuant to this
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| Section.
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| (f) The System shall determine the amount of the increase | 23 |
| in unfunded
accrued liability resulting from the granting of | 24 |
| early retirement incentives
under this Section and shall report | 25 |
| that amount to the Governor and the
Pension Laws Commission (or | 26 |
| its successor, the Economic and Fiscal
Commission) on or before | 27 |
| November 15,
2003. The increase in
liability reported under | 28 |
| this subsection (f) shall not be included in the
calculation of | 29 |
| the required State contribution under Section 16-158.
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| (g) The System shall determine the amount of the annual | 31 |
| State contribution
necessary to amortize on a level | 32 |
| dollar-payment basis, over a period of 10
years at 8.5% | 33 |
| interest, compounded annually, an amount equal to the increase | 34 |
| in
unfunded accrued liability determined under subsection (f) | 35 |
| minus $1,000,000.
The System shall certify the amount of this | 36 |
| annual State contribution to the
Governor, the State |
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| Comptroller, the
Governor's Office of Management and Budget | 2 |
| (formerly
Bureau of the Budget), and the Pension Laws
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| Commission (or its successor, the Economic and Fiscal | 4 |
| Commission) on or
before November 15, 2003.
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| In addition to the contributions otherwise required under | 6 |
| this Article,
the State shall appropriate and pay to the System | 7 |
| (1) an amount equal to
$1,000,000 in State fiscal year 2004 and | 8 |
| (2) in each of State fiscal years
2005 through 2013, an amount | 9 |
| equal to the annual State contribution certified
by the System | 10 |
| under this subsection (g).
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| (h) The Pension Laws Commission (or its successor, the | 12 |
| Economic and Fiscal
Commission) shall determine
and report to | 13 |
| the General
Assembly, on or before January 1, 2004 and annually | 14 |
| thereafter through the year
2013, its estimate of (1) the | 15 |
| annual amount of payroll savings likely to be
realized by the | 16 |
| State as a result of the early retirement of persons receiving
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| early retirement incentives under this Section and (2) the net | 18 |
| annual savings
or cost to the State from the program of early | 19 |
| retirement incentives created
under this Section.
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| The System, the Department of Central Management Services, | 21 |
| the
Governor's Office of Management and Budget (formerly
Bureau | 22 |
| of
the Budget), and all other departments shall provide to the | 23 |
| Commission any
assistance that the Commission may request with | 24 |
| respect to its reports under
this Section. The Commission may | 25 |
| require departments to provide it with any
information that it | 26 |
| deems necessary or useful with respect to its reports under
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| this Section, including without limitation information about | 28 |
| (1) the final
earnings of former department employees who | 29 |
| elected to receive benefits under
this Section, (2) the | 30 |
| earnings of current department employees holding the
positions | 31 |
| vacated by persons who elected to receive benefits under this
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| Section, and (3) positions vacated by persons who elected to | 33 |
| receive benefits
under this Section that have not yet been | 34 |
| refilled.
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| (i) The changes made to this Section by this amendatory Act | 36 |
| of the 92nd
General Assembly do not apply to persons who |
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| retired under this Section on or
before May 1, 1992.
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| (Source: P.A. 92-566, eff. 6-25-02; 93-632, eff. 2-1-04.)
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| Section 99. Effective date. This Act takes effect upon | 4 |
| becoming law.
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