Public Act 097-0967
 
HB3969 EnrolledLRB097 16460 EFG 61624 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 
Section 2-108.1 and  by adding Sections 1-166 and 2-126.2 as 
follows:
 
    (40 ILCS 5/1-166 new)
    Sec. 1-166. Proportional annuity liability. 
    (a) If a participant's final average salary in a 
participating system under the Retirement Systems Reciprocal

Act, other than the General Assembly Retirement System, is  used 
to calculate a proportional retirement annuity for that 
participant under the General Assembly Retirement System, if 
that final average salary is  higher than the highest salary for 
annuity purposes  of that person under the General Assembly 
Retirement System, and if the participant retires after the 
effective date of this Section with less than 2 years of 
service that has accrued in that participating system since his 
or her last day of active participation in the General Assembly 
Retirement System, then the increased cost of the proportional 
annuity paid by the  General Assembly Retirement System that is 
attributable to that higher level of compensation shall be paid 
by  the employer of the participant under that other 
participating system to the General Assembly Retirement System 
in the form of a lump sum
payment determined by the General 
Assembly Retirement System in accordance with its annuity 
tables and other actuarial assumptions.
    (b) For the purposes of this Section, "final average salary 
in a participating system under the Retirement Systems 
Reciprocal
Act, other than the General Assembly Retirement 
System," includes:
        (1) In Section 1-160 and Articles 16 and 18, "final 
    average salary". 
        (2) In Articles 7 and 15, "final rate of earnings".
        (3) In Articles 8, 9, 10, 11, and 12, "highest

average 
    annual salary for any 4 consecutive years within the last 
    10 years of service immediately preceding the date of 
    withdrawal".
        (4) In Article 13, "average final salary".
        (5) In Article 14, "final average compensation".
        (6) In Article 17, "average salary".
        (7) In Section 22-207, "wages or salary received by

him 
    at the date of retirement or discharge". 
    (c) If an employer fails to pay the amount required under 
this Section to the General Assembly Retirement System for more 
than
90 days after the payment is due, the System, after
giving 
notice to the employer, may certify to
the State Comptroller 
the amount of the delinquent payment and the
Comptroller shall 
deduct the amount so certified or any part thereof
from any 
payment  of State funds to the employer and shall pay the amount 
so deducted to the System.  If State
funds from which such 
deductions may be made are not available, then the System
may 
proceed against the employer to recover the
amount of the 
delinquent payment in the appropriate circuit court. 
 


    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)




    Sec. 2-108.1. Highest salary for annuity purposes. 

    (a) "Highest salary for annuity purposes" means whichever 
of
the following is applicable to the participant:

    For a participant who first becomes a participant of this 
System before August 10, 2009 (the effective date of Public Act 
96-207): 

        (1) For a participant who is a member of the General 
    Assembly on his
or her last day of service: the highest 
    salary that is prescribed by law,
on the participant's last 
    day of service, for a member of the General
Assembly who is 
    not an officer; plus, if the participant was elected or

    appointed to serve as an officer of the General Assembly 
    for 2 or more
years and has made contributions as required 
    under subsection (d) of
Section 2-126, the highest 
    additional amount of compensation prescribed by
law, at the 
    time of the participant's service as an officer, for 
    members of
the General Assembly who serve in that office.


        (2) For a participant who holds one of the State 
    executive offices
specified in Section 2-105 on his or her 
    last day of service: the highest
salary prescribed by law 
    for service in that office on the participant's
last day of 
    service.


        (3) For a participant who is Clerk or Assistant Clerk 
    of the House of Representatives or Secretary or Assistant 
    Secretary of the Senate
on his or her last day of service: 
    the salary received for service in that
capacity on the 
    last day of service, but not to exceed the highest salary

    (including additional compensation for service as an 
    officer) that is
prescribed by law on the participant's 
    last day of service for the highest
paid officer of the 
    General Assembly.


        (4) For a participant who is a continuing participant 
    under Section
2-117.1 on his or her last day of service: 
    the salary received for service
in that capacity on the 
    last day of service, but not to exceed the highest
salary 
    (including additional compensation for service as an 
    officer) that
is prescribed by law on the participant's 
    last day of service for the
highest paid officer of the 
    General Assembly.

    For a participant who first becomes a participant of this 
System on or after August 10, 2009 (the effective date of 
Public Act 96-207) and before January 1, 2011 (the effective 
date of Public Act 96-889), the average monthly salary obtained 
by dividing the total salary of the participant during the 
period of: (1) the 48 consecutive months of service within the 
last 120 months of service in which the total compensation was 
the highest, or (2) the total period of service, if less than 
48 months, by the number of months of service in that period. 
    For a participant who first becomes a participant of this 
System on or after January 1, 2011 (the effective date of 
Public Act 96-889), the average monthly salary obtained by 
dividing the total salary of the participant during the 96 
consecutive months of service within the last 120 months of 
service in which the total compensation was the highest by the 
number of months of service in that period; however, beginning 
January 1, 2011, the highest salary for annuity purposes may 
not exceed $106,800, except that that amount shall annually 
thereafter be increased by the lesser of (i) 3% of that amount, 
including all previous adjustments, or (ii) the annual 
unadjusted percentage increase (but not less than zero) in the 
consumer price index-u
for the 12 months ending with the 
September preceding each November 1.  "Consumer price index-u" 
means
the index published by the Bureau of Labor Statistics of 
the United States
Department of Labor that measures the average 
change in prices of goods and
services purchased by all urban 
consumers, United States city average, all
items, 1982-84 = 
100.  The new amount resulting from each annual adjustment
shall 
be determined by the Public Pension Division of the Department 
of Insurance and made available to the Board by November 1 of 
each year. 
    (b) The earnings limitations of subsection (a) apply to 
earnings
under any other participating system under the 
Retirement Systems Reciprocal
Act that are considered in 
calculating a proportional annuity under this
Article, except 
in the case of a person who first became a member of this

System before August 22,
1994 and has not, on or after the 
effective date of this amendatory Act of the 97th General 
Assembly, irrevocably elected to have those limitations apply. 
The limitations of subsection (a) shall apply, however, to 
earnings
under any other participating system under the 
Retirement Systems Reciprocal
Act that are considered in 
calculating the proportional annuity of a person who first 
became a member of this
System before August 22,
1994 if, on or 
after the effective date of this amendatory Act of the 97th 
General Assembly, that member irrevocably elects to have those 
limitations apply.

    (c) In calculating the subsection (a) earnings limitation 
to be applied to
earnings under any other participating system 
under the Retirement Systems
Reciprocal Act for the purpose of 
calculating a proportional annuity under this
Article, the 
participant's last day of service shall be deemed to mean the 
last
day of service in any participating system from which the 
person has applied
for a proportional annuity under the 
Retirement Systems Reciprocal Act.

(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 
96-1490, eff. 1-1-11.)

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