Full Text of HB2500 99th General Assembly
HB2500 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB2500 Introduced 2/18/2015, by Rep. Daniel J. Burke SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Pension Code. In provisions that are applicable to new hires, provides that the alternative retirement annuity in the State Employees Article of the Code is available to any person employed in a title or position by a State agency or the Office of Secretary of State and vested with such investigative, law enforcement, or peace officer duties as render him or her ineligible for coverage under the Social Security Act (instead of only to a person who is a State policeman, fire fighter in the fire protection service of a department, or security employee of the Department of Corrections or the Department of Juvenile Justice).
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | HB2500 | | LRB099 08754 RPS 28922 b |
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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 | | Section 1-160 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 |
| | | HB2500 | - 2 - | LRB099 08754 RPS 28922 b |
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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 the effective date of Public Act 96-889, | 4 | | notwithstanding the provisions of Section 1-103.1 of this Code. | 5 | | (b) "Final average salary" means the average monthly (or | 6 | | annual) salary obtained by dividing the total salary or | 7 | | earnings calculated under the Article applicable to the member | 8 | | or participant during the 96 consecutive months (or 8 | 9 | | consecutive years) of service within the last 120 months (or 10 | 10 | | years) of service in which the total salary or earnings | 11 | | calculated under the applicable Article was the highest by the | 12 | | number of months (or years) of service in that period. For the | 13 | | purposes of a person who first becomes a member or participant | 14 | | of any retirement system or pension fund to which this Section | 15 | | applies on or after January 1, 2011, in this Code, "final | 16 | | average salary" shall be substituted for the following: | 17 | | (1) In Article 7 (except for service as sheriff's law | 18 | | enforcement employees), "final rate of earnings". | 19 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 20 | | annual salary for any 4 consecutive years within the last | 21 | | 10 years of service immediately preceding the date of | 22 | | withdrawal". | 23 | | (3) In Article 13, "average final salary". | 24 | | (4) In Article 14, "final average compensation". | 25 | | (5) In Article 17, "average salary". | 26 | | (6) In Section 22-207, "wages or salary received by him |
| | | HB2500 | - 3 - | LRB099 08754 RPS 28922 b |
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| 1 | | at the date of retirement or discharge". | 2 | | (b-5) Beginning on January 1, 2011, for all purposes under | 3 | | this Code (including without limitation the calculation of | 4 | | benefits and employee contributions), the annual earnings, | 5 | | salary, or wages (based on the plan year) of a member or | 6 | | participant to whom this Section applies shall not exceed | 7 | | $106,800; however, that amount shall annually thereafter be | 8 | | increased by the lesser of (i) 3% of that amount, including all | 9 | | previous adjustments, or (ii) one-half the annual unadjusted | 10 | | percentage increase (but not less than zero) in the consumer | 11 | | price index-u
for the 12 months ending with the September | 12 | | preceding each November 1, including all previous adjustments. | 13 | | For the purposes of this Section, "consumer price index-u" | 14 | | means
the index published by the Bureau of Labor Statistics of | 15 | | the United States
Department of Labor that measures the average | 16 | | change in prices of goods and
services purchased by all urban | 17 | | consumers, United States city average, all
items, 1982-84 = | 18 | | 100. The new amount resulting from each annual adjustment
shall | 19 | | be determined by the Public Pension Division of the Department | 20 | | of Insurance and made available to the boards of the retirement | 21 | | systems and pension funds by November 1 of each year. | 22 | | (c) A member or participant is entitled to a retirement
| 23 | | annuity upon written application if he or she has attained age | 24 | | 67 (beginning January 1, 2015, age 65 with respect to service | 25 | | under Article 8, 11, or 12 of this Code that is subject to this | 26 | | Section) and has at least 10 years of service credit and is |
| | | HB2500 | - 4 - | LRB099 08754 RPS 28922 b |
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| 1 | | otherwise eligible under the requirements of the applicable | 2 | | Article. | 3 | | A member or participant who has attained age 62 (beginning | 4 | | January 1, 2015, age 60 with respect to service under Article | 5 | | 8, 11, or 12 of this Code that is subject to this Section) and | 6 | | has at least 10 years of service credit and is otherwise | 7 | | eligible under the requirements of the applicable Article may | 8 | | elect to receive the lower retirement annuity provided
in | 9 | | subsection (d) of this Section. | 10 | | (d) The retirement annuity of a member or participant who | 11 | | is retiring after attaining age 62 (beginning January 1, 2015, | 12 | | age 60 with respect to service under Article 8, 11, or 12 of | 13 | | this Code that is subject to this Section) with at least 10 | 14 | | years of service credit shall be reduced by one-half
of 1% for | 15 | | each full month that the member's age is under age 67 | 16 | | (beginning January 1, 2015, age 65 with respect to service | 17 | | under Article 8, 11, or 12 of this Code that is subject to this | 18 | | Section). | 19 | | (e) Any retirement annuity or supplemental annuity shall be | 20 | | subject to annual increases on the January 1 occurring either | 21 | | on or after the attainment of age 67 (beginning January 1, | 22 | | 2015, age 65 with respect to service under Article 8, 11, or 12 | 23 | | of this Code that is subject to this Section) or the first | 24 | | anniversary (the second anniversary with respect to service | 25 | | under Article 8 or 11) of the annuity start date, whichever is | 26 | | later. Each annual increase shall be calculated at 3% or |
| | | HB2500 | - 5 - | LRB099 08754 RPS 28922 b |
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| 1 | | one-half the annual unadjusted percentage increase (but not | 2 | | less than zero) in the consumer price index-u for the 12 months | 3 | | ending with the September preceding each November 1, whichever | 4 | | is less, of the originally granted retirement annuity. If the | 5 | | annual unadjusted percentage change in the consumer price | 6 | | index-u for the 12 months ending with the September preceding | 7 | | each November 1 is zero or there is a decrease, then the | 8 | | annuity shall not be increased. | 9 | | Notwithstanding any provision of this Section to the | 10 | | contrary, with respect to service under Article 8 or 11 of this | 11 | | Code that is subject to this Section, no annual increase under | 12 | | this subsection shall be paid or accrue to any person in year | 13 | | 2025. In all other years, the Fund shall continue to pay annual | 14 | | increases as provided in this Section. | 15 | | Notwithstanding Section 1-103.1 of this Code, the changes | 16 | | in this amendatory Act of the 98th General Assembly are | 17 | | applicable without regard to whether the employee was in active | 18 | | service on or after the effective date of this amendatory Act | 19 | | of the 98th General Assembly. | 20 | | (f) The initial survivor's or widow's annuity of an | 21 | | otherwise eligible survivor or widow of a retired member or | 22 | | participant who first became a member or participant on or | 23 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 24 | | retired member's or participant's retirement annuity at the | 25 | | date of death. In the case of the death of a member or | 26 | | participant who has not retired and who first became a member |
| | | HB2500 | - 6 - | LRB099 08754 RPS 28922 b |
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| 1 | | or participant on or after January 1, 2011, eligibility for a | 2 | | survivor's or widow's annuity shall be determined by the | 3 | | applicable Article of this Code. The initial benefit shall be | 4 | | 66 2/3% of the earned annuity without a reduction due to age. A | 5 | | child's annuity of an otherwise eligible child shall be in the | 6 | | amount prescribed under each Article if applicable. Any | 7 | | survivor's or widow's annuity shall be increased (1) on each | 8 | | January 1 occurring on or after the commencement of the annuity | 9 | | if
the deceased member died while receiving a retirement | 10 | | annuity or (2) in
other cases, on each January 1 occurring | 11 | | after the first anniversary
of the commencement of the annuity. | 12 | | Each annual increase shall be calculated at 3% or one-half the | 13 | | annual unadjusted percentage increase (but not less than zero) | 14 | | in the consumer price index-u for the 12 months ending with the | 15 | | September preceding each November 1, whichever is less, of the | 16 | | originally granted survivor's annuity. If the annual | 17 | | unadjusted percentage change in the consumer price index-u for | 18 | | the 12 months ending with the September preceding each November | 19 | | 1 is zero or there is a decrease, then the annuity shall not be | 20 | | increased. | 21 | | (g) The benefits in Section 14-110 apply only if the person | 22 | | is employed in a title or position by any State agency or the | 23 | | Office of Secretary of State and vested with such | 24 | | investigative, law enforcement, or peace officer duties as | 25 | | render him or her ineligible for coverage under the Social | 26 | | Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), |
| | | HB2500 | - 7 - | LRB099 08754 RPS 28922 b |
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| 1 | | and 218(l)(1) of that Act, including a State policeman, a fire | 2 | | fighter in the fire protection service of a department, or a | 3 | | security employee of the Department of Corrections or the | 4 | | Department of Juvenile Justice, as those terms are defined in | 5 | | subsection (b) of Section 14-110. A person who meets the | 6 | | requirements of this Section is entitled to an annuity | 7 | | calculated under the provisions of Section 14-110, in lieu of | 8 | | the regular or minimum retirement annuity, only if the person | 9 | | has withdrawn from service with not less than 20
years of | 10 | | eligible creditable service and has attained age 60, regardless | 11 | | of whether
the attainment of age 60 occurs while the person is
| 12 | | still in service. | 13 | | (h) If a person who first becomes a member or a participant | 14 | | of a retirement system or pension fund subject to this Section | 15 | | on or after January 1, 2011 is receiving a retirement annuity | 16 | | or retirement pension under that system or fund and becomes a | 17 | | member or participant under any other system or fund created by | 18 | | this Code and is employed on a full-time basis, except for | 19 | | those members or participants exempted from the provisions of | 20 | | this Section under subsection (a) of this Section, then the | 21 | | person's retirement annuity or retirement pension under that | 22 | | system or fund shall be suspended during that employment. Upon | 23 | | termination of that employment, the person's retirement | 24 | | annuity or retirement pension payments shall resume and be | 25 | | recalculated if recalculation is provided for under the | 26 | | applicable Article of this Code. |
| | | HB2500 | - 8 - | LRB099 08754 RPS 28922 b |
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| 1 | | If a person who first becomes a member of a retirement | 2 | | system or pension fund subject to this Section on or after | 3 | | January 1, 2012 and is receiving a retirement annuity or | 4 | | retirement pension under that system or fund and accepts on a | 5 | | contractual basis a position to provide services to a | 6 | | governmental entity from which he or she has retired, then that | 7 | | person's annuity or retirement pension earned as an active | 8 | | employee of the employer shall be suspended during that | 9 | | contractual service. A person receiving an annuity or | 10 | | retirement pension under this Code shall notify the pension | 11 | | fund or retirement system from which he or she is receiving an | 12 | | annuity or retirement pension, as well as his or her | 13 | | contractual employer, of his or her retirement status before | 14 | | accepting contractual employment. A person who fails to submit | 15 | | such notification shall be guilty of a Class A misdemeanor and | 16 | | required to pay a fine of $1,000. Upon termination of that | 17 | | contractual employment, the person's retirement annuity or | 18 | | retirement pension payments shall resume and, if appropriate, | 19 | | be recalculated under the applicable provisions of this Code. | 20 | | (i) (Blank). | 21 | | (j) In the case of a conflict between the provisions of | 22 | | this Section and any other provision of this Code, the | 23 | | provisions of this Section shall control.
| 24 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | 25 | | eff. 11-19-13; 98-622, eff. 6-1-14; 98-641, eff. 6-9-14.)
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