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90_SB0665ham002
LRB9000602EGfgam31
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665, AS AMENDED,
3 with reference to the page and line numbers of House
4 Amendment 1, on page 2, in line 11, after ",", by inserting
5 "the Board of Trustees of the Teachers' Retirement System of
6 the State of Illinois,"; and
7 on page 2, in line 13, by changing "14," to "14, 16,"; and
8 on page 2, in line 22, by changing "15," to "15, 16,"; and
9 on page 30, in line 32, by changing "16-151," to "16-143,
10 16-151, 16-152.1, 16-154,"; and
11 on page 135, by inserting below line 3 the following:
12 "(40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
13 Sec. 16-143. Survivors' benefits - other conditions and
14 limitations. The benefits provided under Sections 16-141 and
15 16-142, shall be subject to the following further conditions
16 and limitations:
17 (1) The period during which a member was in receipt of a
18 disability or occupational disability benefit shall be
19 considered as creditable service at the annual salary rate on
20 which the member last made contributions.
21 (2) All service prior to July 24, 1959, for which
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1 creditable service is granted towards a retirement annuity
2 shall be considered as creditable service.
3 (3) No benefits shall be payable unless a member, or a
4 disabled member, returning to service, has made contributions
5 to the system for at least one month after July 24, 1959,
6 except that an annuitant must have contributed to the system
7 for at least 1 year of creditable service after July 24,
8 1959.
9 (4) Creditable service under the State Employees'
10 Retirement System of Illinois, the State Universities
11 Retirement System and the Public School Teachers' Pension and
12 Retirement Fund of Chicago shall be considered in determining
13 whether the member has met the creditable service
14 requirement.
15 (5) If an eligible beneficiary qualifies for a
16 survivors' benefit because of pension credits established by
17 the participant or annuitant in another system covered by
18 Article 20, and the combined survivors' benefits exceed the
19 highest survivors' benefit payable by either system based
20 upon the combined pension credits, the survivors' benefit
21 payable by this system shall be reduced to that amount which
22 when added to the survivors' benefit payable by the other
23 system would equal this highest survivors' benefit. If the
24 other system has a similar provision for adjustment of the
25 survivors' benefit, the respective proportional survivors'
26 benefits shall be reduced proportionately according to the
27 ratio which the amount of each proportional survivors'
28 benefit bears to the aggregate of all proportional survivors'
29 benefits. If a survivors' benefit is payable by another
30 system covered by Article 20, and the survivor elects to
31 waive the monthly survivors' benefit and accept a lump sum
32 payment or death benefit in lieu of the monthly survivors'
33 benefit, this system shall, for the purpose of adjusting the
34 monthly survivors' benefit under this paragraph, assume that
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1 the survivor had been entitled to a monthly survivors'
2 benefit which, in accordance with actuarial tables of this
3 system, is the actuarial equivalent of the amount of the lump
4 sum payment or death benefit.
5 (6) Remarriage of a surviving spouse prior to attainment
6 of age 55 shall terminate his or her survivors' benefits.
7 (7) The benefits payable to an eligible child shall
8 terminate when the eligible child marries, dies, or attains
9 age 18 (age 22 if a full-time student); except that benefits
10 payable to a dependent disabled eligible child shall
11 terminate only when the eligible child dies or ceases to be
12 disabled.
13 (Source: P.A. 86-1488.)"; and
14 on page 136, by inserting below line 9 the following:
15 "(40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)
16 Sec. 16-152.1. Pickup Pick up of contributions.
17 (a) Each employer may pick up the member contributions
18 required under Section 16-152 for all salary earned after
19 December 31, 1981. If an employer decides not to pick up the
20 member contributions, the amount that would have been picked
21 up shall continue to be deducted from salary. If
22 contributions are picked up, they shall be treated as
23 employer contributions in determining tax treatment under the
24 United States Internal Revenue Code. The employer shall pay
25 these member contributions from the same source of funds
26 which is used in paying salary to the member. The employer
27 may pick up these contributions by a reduction in the cash
28 salary of the member or by an offset against a future salary
29 increase or by a combination of a reduction in salary and
30 offset against a future salary increase. If member
31 contributions are picked up, they shall be treated for all
32 purposes of this Article 16 in the same manner as member
33 contributions made prior to the date the pick up began.
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1 (b) The State Board of Education shall pick up the
2 contributions of regional superintendents required under
3 Section 16-152 for all salary earned for the 1982 calendar
4 year and thereafter.
5 (c) Effective July 1, 1983, each employer shall pick up
6 the member contributions required under Section 16-152 for
7 all salary earned after such date. Contributions so picked
8 up shall be treated as employer contributions in determining
9 tax treatment under the United States Internal Revenue Code.
10 The employer shall pay these member contributions from the
11 same source of funds which is used in paying salary to the
12 member. The employer may pick up these contributions by a
13 reduction in the cash salary of the member or by an offset
14 against a future salary increase or by a combination of a
15 reduction in salary and offset against a future salary
16 increase. Member contributions so picked up shall be treated
17 for all purposes of this Article 16 in the same manner as
18 member contributions made prior to the date the pick up
19 began.
20 (d) Subject to the requirements of federal law and the
21 rules of the board, beginning July 1, 1998 a member who is
22 employed on a full-time basis may elect to have the employer
23 pick up optional contributions that the member has elected to
24 pay to the System, and the contributions so picked up shall
25 be treated as employer contributions for the purposes of
26 determining federal tax treatment. The election to have
27 optional contributions picked up is irrevocable. At the time
28 of making the election, the member shall execute a binding,
29 irrevocable payroll deduction authorization. Upon receiving
30 notice of the election, the employer shall pick up the
31 contributions by a reduction in the cash salary of the member
32 and shall pay the contributions from the same source of funds
33 that is used to pay earnings to the member.
34 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/16-154) (from Ch. 108 1/2, par. 16-154)
2 Sec. 16-154. Deductions from salary.
3 (a) Required contributions. The governing body of each
4 school district and of each employing unit State institution
5 coming under this System, and the State Comptroller or other
6 State officer certifying payroll vouchers, including payments
7 of salary or wages to teachers, shall pick up or retain on
8 every pay day the contributions required under Section 16-152
9 of each member. Each governing body or officer shall furnish
10 a statement to each member showing the amount picked up or
11 retained from his or her salary.
12 (b) Optional contributions. For the purposes of this
13 Section and Section 16-152.1, "optional contributions" means
14 contributions that a member elects to make in order to
15 establish optional service credit or to reinstate creditable
16 service that was terminated upon payment of a refund.
17 The governing body of each school district and of each
18 employing unit coming under this System and the State
19 Comptroller or other State officer certifying payroll
20 vouchers shall take the steps necessary to comply with the
21 requirements of Section 414(h)(2) of the Internal Revenue
22 Code of 1986, as amended, to permit the pickup of optional
23 contributions on a tax-deferred basis. Beginning July 1,
24 1998, a school district or other employing unit shall not
25 withhold optional contributions from the salary of any member
26 on an after-tax basis.
27 (Source: P.A. 83-1440.)"; and
28 on page 137, in line 16, by changing "district" to "employer
29 district"; and
30 on page 137, in line 20, by changing "school district" to
31 "employer school district".