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Public Act 095-0083
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| HB0857 Enrolled |
LRB095 06238 AMC 26332 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 |
Sections 15-113.6, 15-113.7, 15-141, 15-158.3, and 15-178 as |
follows:
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(40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
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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
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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
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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 |
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8% of his or her annual basic compensation
on the date of |
becoming a participating employee subsequent to this service
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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.
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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.
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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.
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(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
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Sec. 15-113.7. Service for other public employment. |
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"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
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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,
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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 |
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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
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retirement system covering the governmental unit from which the |
function was
transferred.
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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.
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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.
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Except as hereinafter provided, this Section shall not |
apply to
persons who become participants in the system after |
September 1, 1974.
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(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
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Sec. 15-141. Death benefits - Death of participant.
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(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
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contributions on the date of death, (2) the employee's |
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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.
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(b) If the participant has elected to participate in the
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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
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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 |
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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.
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(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.
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(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; |
91-877, eff. 7-6-00.)
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(40 ILCS 5/15-158.3)
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Sec. 15-158.3. Reports on cost reduction; effect on |
retirement at any age
with 30 years of service.
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(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
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institutions who were hired on or after the implementation date |
of the
self-managed plan and (ii) by other System
participants.
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The actuary's report must also quantify the extent to which |
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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
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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
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elected to participate in the self-managed plan and 10%
of |
other System participants had transferred to the self-managed |
plan
following its implementation.
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(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
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compensable sick leave accrual on and after January 1, 1998 by |
employees of
higher education institutions who are |
participants in the System.
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(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
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a fiscal year by fiscal year basis, the amount by which the |
State's cost for
health insurance coverage under the State |
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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
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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.
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(d) The reports required under subsections (a), (b), and |
(c) shall be
disseminated to the Board, the Pension Laws
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Commission (until it ceases to exist), the Commission on |
Government Forecasting and Accountability, the Illinois Board |
of Higher Education, and the
Governor.
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(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
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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 |
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educational
institutions and agencies cover any funding |
deficiency through an annual
payment to the System out of |
appropriate resources of their own.
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(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/15-178) (from Ch. 108 1/2, par. 15-178)
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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
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check, or electronic funds transfer to this system for the
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total of the contributions required under Section 15-157. All
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warrants and electronic funds transfers covering such |
contributions, and
together with
a deduction register |
pertaining to the
payroll supplied by the employer, shall be
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transmitted immediately to the board.
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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.
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(Source: P.A. 87-8.)
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(40 ILCS 5/15-167.3 rep.)
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Section 10. The Illinois Pension Code is amended by |