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Public Act 099-0450
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| HB3484 Enrolled | LRB099 09762 EFG 29972 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 15-112, 15-154, 15-157, 15-168, 16-155, and 16-169.1 |
and by adding Sections 2-139.1, 14-135.11, 15-126.2, and |
16-181.4 as follows:
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(40 ILCS 5/2-139.1 new) |
Sec. 2-139.1. To request information. To request from any |
member, annuitant, beneficiary, or employer such information |
as is necessary for the proper administration of the System.
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(40 ILCS 5/14-135.11 new) |
Sec. 14-135.11. To request information. To request from any |
member, annuitant, beneficiary, or employer such information |
as is necessary for the proper administration of the System.
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(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
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(Text of Section WITHOUT the changes made by P.A. 98-599, |
which has been held unconstitutional)
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Sec. 15-112. Final rate of earnings. "Final rate of |
earnings": |
(a) This subsection (a) applies only to a Tier 1 member. |
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For an employee who is paid on an hourly basis or who |
receives an annual salary
in installments during 12 months of |
each academic year, the average annual
earnings during the 48 |
consecutive calendar month period ending with the last
day of |
final termination of employment or the 4 consecutive academic |
years of
service in which the employee's earnings were the |
highest, whichever is
greater.
For any other employee, the |
average annual earnings during the 4 consecutive
academic years |
of service in which his or her earnings were the highest.
For |
an employee with less than 48 months or 4 consecutive academic |
years of
service, the average earnings during his or her entire |
period of service.
The earnings of an employee with more than |
36 months of service under item (a) of Section 15-113.1 prior |
to the
date of becoming a participant are, for such period, |
considered equal to the
average earnings during the last 36 |
months of such service. |
(b) This subsection (b) applies to a Tier 2 member. |
For an employee who is paid on an hourly basis or who |
receives an annual salary in installments during 12 months of |
each academic year, the average annual earnings obtained by |
dividing by 8 the total earnings of the employee during the 96 |
consecutive months in which the total earnings were the highest |
within the last 120 months prior to termination. |
For any other employee, the average annual earnings during |
the 8 consecutive academic years within the 10 years prior to |
termination in which the employee's earnings were the highest. |
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For an employee with less than 96 consecutive months or 8 |
consecutive academic years of service, whichever is necessary, |
the average earnings during his or her entire period of |
service. |
(c) For an
employee on leave of absence with pay, or on |
leave of absence without pay
who makes contributions during |
such leave, earnings are assumed to be equal
to the basic |
compensation on the date the leave began. |
(d) For an employee on
disability leave, earnings are |
assumed to be equal to the basic compensation
on the date |
disability occurs or the average earnings during the 24 months
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immediately preceding the month in which disability occurs, |
whichever is
greater.
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(e) For a Tier 1 member who retires on or after the |
effective date of this
amendatory Act of 1997 with at least 20 |
years of service as a firefighter or
police officer under this |
Article, the final rate of earnings shall be the
annual rate of |
earnings received by the participant on his or her last day as |
a
firefighter or police officer under this Article, if that is |
greater than the
final rate of earnings as calculated under the |
other provisions of this
Section.
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(f) If a Tier 1 member is an employee for at least
6 months |
during the academic year in which his or her employment
is |
terminated, the annual final rate of earnings shall be 25% of |
the sum
of (1) the annual basic compensation for that year, and |
(2) the amount
earned during the 36 months immediately |
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preceding that year, if this is
greater than the final rate of |
earnings as calculated under the other
provisions of this |
Section.
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(g) In the determination of the final rate of earnings for |
an employee, that
part of an employee's earnings for any |
academic year beginning after June 30,
1997, which exceeds the |
employee's earnings with that employer for the
preceding year |
by more than 20 percent shall be excluded; in the event
that an |
employee has more than one employer
this limitation shall be |
calculated separately for the earnings with
each employer. In |
making such calculation, only the basic compensation of
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employees shall be considered, without regard to vacation or |
overtime or to
contracts for summer employment.
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(h) The following are not considered as earnings in |
determining final rate of
earnings: (1) severance or separation |
pay, (2) retirement pay, (3)
payment for unused sick leave, and |
(4) payments from an employer for
the period used in |
determining final rate of earnings for any purpose other
than |
(i) services rendered, (ii) leave of absence or vacation |
granted
during that period, and (iii) vacation of up to 56 work |
days allowed upon
termination of employment; except that, if |
the benefit has been collectively
bargained between the |
employer and the recognized collective bargaining agent
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pursuant to the Illinois Educational Labor Relations Act, |
payment received
during a period of up to 2 academic years for |
unused sick leave may be
considered as earnings in accordance |
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with the applicable collective bargaining
agreement, subject |
to the 20% increase limitation of this Section. Any unused
sick |
leave considered as earnings under this Section shall not be |
taken into
account in calculating service credit under Section |
15-113.4.
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(i) Intermittent periods of service shall be considered as |
consecutive in
determining final rate of earnings.
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(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-126.2 new) |
Sec. 15-126.2. Plan year. "Plan year": The 12-month period |
beginning on July 1 in any year, and ending on June 30 of the |
succeeding year.
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(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
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Sec. 15-154. Refunds.
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(a) A participant whose status as an employee is |
terminated, regardless of
cause, or who has been on lay off |
status for more than 120 days, and who is not
on leave of |
absence, is entitled to a refund of contributions upon |
application;
except that not more than one such refund |
application may be made during any
academic year.
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Except as set forth in subsections (a-1) and (a-2), the |
refund shall
be the sum of the accumulated normal, additional, |
and survivors insurance
contributions, plus the entire |
contribution made by the participant under
Section 15-113.3, |
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less the amount of interest credited on these contributions
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each year in excess of 4 1/2% of the amount on which interest |
was calculated.
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(a-1) A person who elects, in accordance with the |
requirements of Section
15-134.5, to participate in the |
portable benefit package and who becomes a
participating |
employee under that retirement program upon the conclusion of
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the one-year waiting period applicable to the portable benefit |
package election
shall have his or her refund calculated in |
accordance with the provisions of
subsection (a-2).
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(a-2) The refund payable to a participant described in |
subsection (a-1)
shall be the sum of the participant's |
accumulated normal and additional
contributions, as defined in |
Sections 15-116 and 15-117, plus the entire
contribution made |
by the participant under Section 15-113.3. If the
participant |
terminates with 5 or more years of service for employment as
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defined in Section 15-113.1, he or she shall also be entitled |
to a distribution
of employer contributions in an amount equal |
to the sum of the accumulated
normal and additional |
contributions, as defined in Sections 15-116 and 15-117.
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(b) Upon acceptance of a refund, the participant forfeits |
all
accrued rights and credits in the System, and if |
subsequently reemployed, the
participant shall be considered a |
new employee subject to all the qualifying
conditions for |
participation and eligibility for benefits applicable to new
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employees. If such person again becomes a participating |
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employee and continues
as such for 2 years, or is employed by |
an employer and participates for at
least 2 years in the |
Federal Civil Service Retirement System, all such rights,
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credits, and previous status as a participant shall be restored |
upon repayment
of the amount of the refund, together with |
compound interest thereon from the
date the refund was issued |
received to the date of repayment at the rate of 6% per
annum |
through August 31, 1982, and at the effective rates after that |
date.
When a participant in the portable benefit package who |
received a refund
which included a distribution of employer |
contributions repays a refund
pursuant to this Section, |
one-half of the amount repaid shall be deemed the
member's |
reinstated accumulated normal and additional contributions and |
the
other half shall be allocated as an employer contribution |
to the System,
except that any amount repaid for previously |
purchased military service
credit under Section 15-113.3 shall |
be accounted for as such.
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(c) If a participant covered under the traditional
benefit |
package has made survivors insurance contributions, but has no
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survivors insurance beneficiary upon retirement, he or she |
shall be entitled
to elect a refund of the accumulated |
survivors insurance contributions, or to
elect an additional |
annuity the value of which is equal to the accumulated
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survivors insurance contributions. This election must be made |
prior to the
date the person's retirement annuity is approved |
by the System.
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(d) A participant, upon application, is entitled to a |
refund of his
or her accumulated additional contributions |
attributable to the additional
contributions described in the |
last sentence of subsection (c) of Section
15-157. Upon the |
acceptance of such a refund of accumulated additional
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contributions, the participant forfeits all rights and credits |
which may
have accrued because of such contributions.
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(e) A participant who terminates his or her employee status |
and elects to
waive service credit under Section 15-154.2, is |
entitled to a refund of the
accumulated normal, additional and |
survivors insurance contributions, if any,
which were credited |
the participant for this service, or to an additional
annuity |
the value of which is equal to the accumulated normal, |
additional and
survivors insurance contributions, if any; |
except that not more than one such
refund application may be |
made during any academic year. Upon acceptance of
this refund, |
the participant forfeits all rights and credits accrued because
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of this service.
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(f) If a police officer or firefighter receives a |
retirement annuity
under Rule 1 or 3 of Section 15-136, he or |
she shall be entitled at
retirement to a refund of the |
difference between his or her accumulated
normal contributions |
and the normal contributions which would have
accumulated had |
such person filed a waiver of the retirement formula
provided |
by Rule 4 of Section 15-136.
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(g) If, at the time of retirement, a participant would be |
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entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of |
Section 15-136, or under
Section 15-136.4, that exceeds
the |
maximum specified in clause (1) of subsection (c) of Section |
15-136, he
or she shall be entitled to a refund of the employee |
contributions, if any,
paid under Section 15-157 after the date |
upon which continuance of such
contributions would have |
otherwise caused the retirement annuity to exceed
this maximum, |
plus compound interest at the effective rates.
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(Source: P.A. 92-16, eff. 6-28-01;
92-424, eff. 8-17-01; |
93-347, eff. 7-24-03.)
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(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
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(Text of Section WITHOUT the changes made by P.A. 98-599, |
which has been held unconstitutional)
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Sec. 15-157. Employee Contributions.
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(a) Each participating employee
shall make contributions |
towards the retirement
benefits payable under the retirement |
program applicable to the
employee from each payment
of |
earnings applicable to employment under this system on and |
after the
date of becoming a participant as follows: Prior to |
September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
are to be considered as normal contributions for purposes
of |
this Article.
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Each participant who is a police officer or firefighter |
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shall make normal
contributions of 8% of each payment of |
earnings applicable to employment as a
police officer or |
firefighter under this system on or after September 1, 1981,
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unless he or she files with the board within 60 days after the |
effective date
of this amendatory Act of 1991 or 60 days after |
the board receives notice that
he or she is employed as a |
police officer or firefighter, whichever is later,
a written |
notice waiving the retirement formula provided by Rule 4 of |
Section
15-136. This waiver shall be irrevocable. If a |
participant had met the
conditions set forth in Section |
15-132.1 prior to the effective date of this
amendatory Act of |
1991 but failed to make the additional normal contributions
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required by this paragraph, he or she may elect to pay the |
additional
contributions plus compound interest at the |
effective rate. If such payment
is received by the board, the |
service shall be considered as police officer
service in |
calculating the retirement annuity under Rule 4 of Section |
15-136.
While performing service described in clause (i) or |
(ii) of Rule 4 of Section
15-136, a participating employee |
shall be deemed to be employed as a
firefighter for the purpose |
of determining the rate of employee contributions
under this |
Section.
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(b) Starting September 1, 1969, each participating |
employee shall make
additional contributions of 1/2 of 1% of |
earnings to finance a portion
of the cost of the annual |
increases in retirement annuity provided under
Section 15-136, |
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except that with respect to participants in the
self-managed |
plan this additional contribution shall be used to finance the
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benefits obtained under that retirement program.
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(c) In addition to the amounts described in subsections (a) |
and (b) of this
Section, each participating employee shall make |
contributions of 1% of earnings
applicable under this system on |
and after August 1, 1959. The contributions
made under this |
subsection (c) shall be considered as survivor's insurance
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contributions for purposes of this Article if the employee is |
covered under
the traditional benefit package, and such |
contributions shall be considered
as additional contributions |
for purposes of this Article if the employee is
participating |
in the self-managed plan or has elected to participate in the
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portable benefit package and has completed the applicable |
one-year waiting
period. Contributions in excess of $80 during |
any fiscal year beginning before
August 31, 1969 and in excess |
of $120 during any fiscal year thereafter until
September 1, |
1971 shall be considered as additional contributions for |
purposes
of this Article.
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(d) If the board by board rule so permits and subject to |
such conditions
and limitations as may be specified in its |
rules, a participant may make
other additional contributions of |
such percentage of earnings or amounts as
the participant shall |
elect in a written notice thereof received by the board.
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(e) That fraction of a participant's total accumulated |
normal
contributions, the numerator of which is equal to the |
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number of years of
service in excess of that which is required |
to qualify for the maximum
retirement annuity, and the |
denominator of which is equal to the total
service of the |
participant, shall be considered as accumulated additional
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contributions. The determination of the applicable maximum |
annuity and
the adjustment in contributions required by this |
provision shall be made
as of the date of the participant's |
retirement.
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(f) Notwithstanding the foregoing, a participating |
employee shall not
be required to make contributions under this |
Section after the date upon
which continuance of such |
contributions would otherwise cause his or her
retirement |
annuity to exceed the maximum retirement annuity as specified |
in
clause (1) of subsection (c) of Section 15-136.
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(g) A participant participating employee may make |
contributions for the purchase of
service credit under this |
Article; however, only a participating employee may make |
optional contributions under subsection (b) of Section |
15-157.1 of this Article.
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(h) A Tier 2 member shall not make contributions on |
earnings that exceed the limitation as prescribed under |
subsection (b) of Section 15-111 of this Article. |
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
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Sec. 15-168. To require information. To require such |
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information as shall be necessary for the proper
operation of |
the system from any participant or benefit recipient |
beneficiary or from any
employer of a current or former |
participant.
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(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
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Sec. 16-155. Report to system and payment of deductions.
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(a) The governing body of each school district shall make |
two deposits each
month. The deposit for member contributions |
for salary paid between the first
and the fifteenth of the |
month is due by the 25th of the month. The deposit of
member |
contributions for salary paid between the sixteenth and last |
day of the
month is due by the 10th of the following month. All |
required contributions
for salary earned during a school term |
are due by July 10 next following the
close of such school |
term.
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The governing body of each State institution coming
under |
this retirement system, the State Comptroller or other State |
officer
certifying payroll vouchers including payments of |
salary or wages to
teachers, and any other employer of |
teachers, shall, monthly, forward to
the secretary of the |
retirement system the member contributions required
under this |
Article.
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Each employer specified above shall, prior to August 15 of |
each year,
forward to the System a detailed statement, verified |
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in all cases of school
districts by the secretary or clerk of |
the district, of the amounts so
contributed since the period |
covered by the last previous annual statement,
together with |
required contributions not yet forwarded, such payments being
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payable to the System.
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The board may prescribe rules governing the form, content, |
investigation,
control, and supervision of such statements and |
may establish additional interim employer reporting |
requirements as the Board deems necessary. If no teacher in
a |
school district comes under the provisions of this Article, the
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governing body of the district shall so state under the oath of |
its
secretary to this system, and shall at the same time |
forward a copy of
the statement to the regional superintendent |
of schools.
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(b) If the governing body of an employer that is not a |
State agency fails to forward such
required contributions |
within the time permitted in subsection (a) above,
the System |
shall notify the employer of an additional amount
due, equal to
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the greater of the following: (1) an amount representing the |
interest lost
by the system due to late forwarding of |
contributions, calculated for the
number of days which the |
employer is late in forwarding
contributions at a rate of |
interest prescribed by the board, based on its
investment |
experience; or (2) $50.
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(c) If the system, on August 15, is not in receipt of the |
detailed
statements required under this Section of any school |
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district or other
employing unit, such school district or other |
employing unit shall pay to
the system an amount equal to $250 |
for each day that elapses from August
15, until the day such |
statement is filed with the system.
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(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-169.1)
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Sec. 16-169.1. Testimony and the production of records. The |
secretary of
the Board shall have the power to issue subpoenas |
to compel the attendance of
witnesses and the production of |
documents and records, including law
enforcement records |
maintained by law enforcement agencies, in conjunction with
the |
determination of employer payments required under subsection |
(f) of Section 16-158, a disability claim, an administrative |
review proceeding, an attempt to obtain information to assist |
in the collection of sums due to the System, or a felony |
forfeiture
investigation. The
fees of witnesses for attendance |
and travel shall be the same as the fees of
witnesses before |
the circuit courts of this State and shall be paid by the
party |
seeking the subpoena. The Board may apply to any circuit court |
in the
State for an order requiring compliance with a subpoena |
issued under this
Section. Subpoenas issued under this Section |
shall be subject to applicable
provisions of the Code of Civil |
Procedure.
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(Source: P.A. 94-1057, eff. 7-31-06.)
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