Public Act 095-0083
 		





HB0857 Enrolled
LRB095 06238 AMC 26332 b






    AN ACT concerning public employee benefits.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 15-113.6, 15-113.7, 15-141, 15-158.3, and 15-178 as 
follows:
 



    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)



    Sec. 15-113.6. Service for employment in public schools. 
"Service for
employment in public schools":  Includes
those 
periods not exceeding the lesser of 10 years or 2/3 of the 
service
granted under other Sections of this Article dealing 
with service credit,
during which a person who entered the 
system after September 1, 1974 was
employed full time by a 
public common school, public college and public
university, or 
by an agency or instrumentality of any of the foregoing,
of any 
state, territory, dependency or possession of the United States 
of
America, including the Philippine Islands, or a school

operated by or under
the auspices of any agency or department 
of any other state, if the person
(1) cannot qualify for a 
retirement pension or other benefit based upon
employer

contributions from another retirement system, exclusive of 
federal social
security, based in whole or in part upon this 
employment, and (2) pays the
lesser of  (A) an amount equal to 
8% of his or her annual basic compensation
on the date of 
becoming a participating employee subsequent to this service

multiplied by the number of years of such service, together 
with compound
interest from the date participation begins to 
the date payment is received
by the board at the rate of 6% per 
annum through August 31, 1982, and at
the effective rates after 
that date, and (B) 50% of the actuarial value
of the increase 
in the retirement annuity provided by this service, and
(3) 
contributes for at least 5 years subsequent to this employment 
to one
or more of the following systems: the State Universities 
Retirement System,
the Teachers' Retirement System of the State 
of Illinois, and the Public
School Teachers' Pension and 
Retirement Fund of Chicago.

    The service granted under this Section shall not be 
considered in determining
whether the person has the minimum of 
8 years of service required to qualify
for a retirement annuity 
at age 55 or the 5 years of service required to
qualify for a 
retirement annuity at age 62, as provided in Section 15-135.

The maximum allowable service of 10 years for this governmental 
employment
shall be reduced by the service credit which is 
validated under paragraph
(2) of  subsection (b)
(3) of Section 
16-127 and paragraph 1 of Section 17-133.

(Source: P.A. 91-357, eff. 7-29-99.)

 



    (40 ILCS 5/15-113.7)  (from Ch. 108 1/2, par. 15-113.7)



    Sec. 15-113.7. Service for other public employment. 
"Service for
other public employment":  Includes those periods 
not exceeding the lesser of
10 years or 2/3 of the service 
granted under other Sections of this Article
dealing with 
service credit, during which a person was employed full time by

the United States government, or by the government of a state, 
or by a
political subdivision of a state, or by an agency or 
instrumentality of any of
the foregoing, if the person (1) 
cannot qualify for a retirement pension or
other benefit based 
upon employer contributions from another retirement system,

exclusive of federal social security, based in whole or in part 
upon this
employment, and (2) pays the lesser of (A) an amount 
equal to 8% of his or her
annual basic compensation on the date 
of becoming a participating employee
subsequent to this service 
multiplied by the number of years of such service,
together 
with compound interest from the date participation begins to 
the date
payment is received by the board at the rate of 6% per 
annum through August 31,
1982, and at the effective rates after 
that date, and (B) 50% of the actuarial
value of the increase 
in the retirement annuity provided by this service, and
(3) 
contributes for at least 5 years subsequent to this employment 
to one or
more of the following systems:  the State Universities 
Retirement System, the
Teachers' Retirement System of the State 
of Illinois, and the Public School
Teachers' Pension and 
Retirement Fund of Chicago.  If a function of a
governmental 
unit as defined by Section 20-107 is transferred by law, in 
whole
or in part to an employer, and an employee transfers 
employment from this
governmental unit to such employer within 
6 months of the transfer of the
function, the payment for 
service authorized under this Section shall not
exceed the 
amount which would have been payable for this service to the

retirement system covering the governmental unit from which the 
function was
transferred.

    The service granted under this Section shall not be 
considered in determining
whether the person has the minimum of 
8 years of service required to qualify
for a retirement annuity 
at age 55 or the 5 years of service required to
qualify for a 
retirement annuity at age 62, as provided in Section 15-135.

The maximum allowable service of 10 years for this governmental 
employment
shall be reduced by the service credit which is 
validated under paragraph
(2) of subsection (b)
(3) of Section 
16-127 and paragraph one of Section 17-133.

    Except as hereinafter provided, this Section shall not 
apply to
persons who become participants in the system after 
September 1, 1974. 

(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

 



    (40 ILCS 5/15-141)  (from Ch. 108 1/2, par. 15-141)



    Sec. 15-141. Death benefits - Death of participant. 

    (a) The beneficiary of a participant under the traditional 
benefit
package is entitled to a death benefit equal to the sum 
of (1) the employee's
accumulated normal and additional

contributions on the date of death, (2) the employee's 
accumulated
survivors insurance contributions on the date of 
death, if a survivors
insurance benefit is not payable, (3) an 
amount equal to the employee's
final rate of earnings, but not 
more than $5,000, if
(i) the beneficiary, under rules of the 
board, was dependent upon the
participant, (ii) the participant 
was a participating employee
immediately prior to his or her 
death, and (iii) a survivors insurance benefit
is not payable, 
and (4) $2,500 if (i) the beneficiary was not dependent
upon 
the participant, (ii) the participant was a participating 
employee
immediately prior to his or her death, and (iii) a 
survivors insurance benefit
is not payable.

    (b) If the participant has elected to participate in the

portable benefit package and has completed the one-year waiting 
period
required under subsection (e) of Section 15-134.5, the 
death benefit
shall be equal to the employee's accumulated 
normal and additional
contributions on the date of death plus, 
if the employee died with 1.5 or more years of service for 
employment as defined in Section 15-113.1,
employer 
contributions in an amount equal to the sum of the accumulated 
normal
and additional contributions;  except that if a 
pre-retirement survivor annuity
is payable under Section 
15-136.4, the death benefit payable under this
paragraph shall 
be reduced, but to not less than zero, by the actuarial value

of the benefit payable to the surviving spouse.  If the 
recipient of a
pre-retirement survivor annuity dies before an 
amount equal to all accumulated
normal and additional 
contributions as of the date of death have been paid out,
the 
remaining difference shall be paid to the member's beneficiary.  
The
primary beneficiary of the participant must be his or her 
spouse unless the
spouse has consented to the designation of 
another beneficiary in the manner
described in subsection (d) 
of Section 15-136.4.

    (c) If payments are made under any State or federal 
workers'
compensation or occupational diseases law because of 
the death of an
employee, the portion of the death benefit 
payable from employer
contributions shall be reduced by the 
total amount of the payments.

(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; 
91-877, eff. 7-6-00.)

 
    (40 ILCS 5/15-158.3)

    Sec. 15-158.3. Reports on cost reduction; effect on 
retirement at any age
with 30 years of service.


    (a)
On or before November 15, 2001 and on or before 
November 15th of each
year thereafter, the Board shall have the 
System's actuary prepare a report
showing, on a fiscal year by 
fiscal year basis, the actual rate of
participation in the 
self-managed plan
authorized by Section
15-158.2, (i) by 
employees of the System's covered higher educational

institutions who were hired on or after the implementation date 
of the
self-managed plan and (ii) by other System
participants.


    The actuary's report must also quantify the extent to which 
employee optional
retirement plan participation has reduced 
the State's required contributions to
the System, expressed 
both in dollars and as a percentage of covered payroll,
in 
relation to what the State's contributions to the System would 
have been
(1) if the self-managed plan had not been

implemented, and (2) if
45% of employees of the System's 
covered higher educational institutions who
were hired on or 
after the implementation date of the self-managed plan had

elected to participate in the self-managed plan and 10%
of 
other System participants had transferred to the self-managed 
plan
following its implementation.


    (b) On or before November 15th of 2001 and on or before 
November 15th of
each year thereafter, the Illinois Board of 
Higher Education, in conjunction
with the
                     Bureau of the
Budget 
(now Governor's Office of Management and Budget) shall prepare 
a
report showing, on a
fiscal year by fiscal year basis, the 
amount by which the costs associated with
compensable sick 
leave have been reduced as a result of the termination of

compensable sick leave accrual on and after January 1, 1998 by 
employees of
higher education institutions who are 
participants in the System.


    (c) On or before November 15 of 2001 and on or before 
November 15th of each
year thereafter, the Department of 
Central Management Services shall prepare a
report showing, on

a fiscal year by fiscal year basis, the amount by which the 
State's cost for
health insurance coverage under the State 
Employees Group Insurance Act
of 1971 for retirees of the 
State's universities and their survivors has
declined as a 
result of requiring some of those retirees and survivors to

contribute to the cost of their basic health insurance.  These 
year-by-year
reductions in cost must be quantified both in 
dollars and as a level percentage
of payroll covered by the 
System.


    (d) The reports required under subsections (a), (b), and 
(c) shall be
disseminated to the Board, the Pension Laws

Commission (until it ceases to exist), the Commission on 
Government Forecasting and Accountability, the Illinois Board 
of Higher Education, and the
Governor.


    (e) The reports required under subsections (a), (b), and 
(c) shall be
taken into account by the Pension
Laws Commission 
(or its successor, the Commission on Government Forecasting and 
Accountability) in
making any recommendation to extend by 
legislation beyond
December 31, 2002 the provision that allows 
a System participant to retire at
any age with 30 or more years 
of service as authorized in Section 15-135.
If that provision 
is extended beyond December 31, 2002, and if the most recent

report under subsection (a) indicates that actual State 
contributions to the
System for the period during which the 
self-managed plan has been in
operation have exceeded the 
projected State contributions under the assumptions
in clause 
(2) of subsection (a), then any extension of the provision 
beyond
December 31, 2002 must require that the System's higher 
educational
institutions and agencies cover any funding 
deficiency through an annual
payment to the System out of 
appropriate resources of their own.


(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)

 



    (40 ILCS 5/15-178)  (from Ch. 108 1/2, par. 15-178)


    Sec. 15-178. Duties of the State Comptroller and payroll 
officers. The State Comptroller and employer payroll officers, 
in drawing warrants
and checks for items of salary on payroll 
vouchers certified by
employers, shall draw such warrants and 
checks
to participating employees for the amount of salary or 
wages specified
for the period, and shall draw a warrant,
or

check, or electronic funds transfer to this system for the

total of the contributions required under Section 15-157. All

warrants and electronic funds transfers covering such 
contributions, and
together with
a deduction register 
pertaining to the
payroll supplied by the employer, shall be

transmitted immediately to the board.

    The Comptroller shall draw warrants or prepare direct 
deposit transmittals
upon the State Treasurer payable
from 
funds appropriated for the purposes specified in this Article 
upon
the presentation of vouchers approved by the board.

(Source: P.A. 87-8.)


 

    (40 ILCS 5/15-167.3 rep.)


    Section 10. The Illinois Pension Code is amended  by 
repealing Section 15-167.3.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.





Effective Date:  8/13/2007