Public Act 100-0556
Public Act 0556 100TH GENERAL ASSEMBLY
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Public Act 100-0556
| | HB0299 Enrolled | LRB100 05275 RPS 15285 b |
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| 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, 15-135, 15-139.5, 15-152, 15-153.2, and | 15-168.1 as follows:
| (40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
| Sec. 15-113. Service. "Service": The periods defined in | Sections
15-113.1 through 15-113.9 and Sections Section | 15-113.11 through 15-113.12.
| (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| (Text of Section WITHOUT the changes made by P.A. 98-599, | which has been held unconstitutional) | Sec. 15-135. Retirement annuities - Conditions.
| (a) This subsection (a) applies only to a Tier 1 member. A | participant who retires in one of the following specified years | with
the specified amount of service is entitled to a | retirement annuity at any age
under the retirement program | applicable to the participant:
| 35 years if retirement is in 1997 or before;
| 34 years if retirement is in 1998;
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| 33 years if retirement is in 1999;
| 32 years if retirement is in 2000;
| 31 years if retirement is in 2001;
| 30 years if retirement is in 2002 or later.
| A participant with 8 or more years of service after | September 1, 1941, is
entitled to a retirement annuity on or | after attainment of age 55.
| A participant with at least 5 but less than 8 years
of | service after September 1, 1941, is entitled to a retirement | annuity on
or after attainment of age 62.
| A participant who has at least 25 years of service in this | system as a
police officer or firefighter is entitled to a | retirement
annuity on or after the attainment of age 50, if | Rule 4 of Section
15-136 is applicable to the participant.
| (a-5) A Tier 2 member is entitled to a retirement annuity | upon written application if he or she has attained age 67 and | has at least 10 years of service credit and is otherwise | eligible under the requirements of this Article. A Tier 2 | member who has attained age 62 and has at least 10 years of | service credit and is otherwise eligible under the requirements | of this Article may elect to receive the lower retirement | annuity provided in subsection (b-5) of Section 15-136 of this | Article. | (b) The annuity payment period shall begin on the date | specified by the
participant or the recipient of a disability | retirement annuity submitting a written application. For a |
| participant, the date on which the annuity payment period | begins , which date shall not be prior
to termination of | employment or more than one year before the application is
| received by the board; however, if the participant is not an | employee of an
employer participating in this System or in a | participating system as defined
in Article 20 of this Code on | April 1 of the calendar year next following
the calendar year | in which the participant attains age 70 1/2, the annuity
| payment period shall begin on that date regardless of whether | an application
has been filed. For a recipient of a disability | retirement annuity, the date on which the annuity payment | period begins shall not be prior to the discontinuation of the | disability retirement annuity under Section 15-153.2.
| (c) An annuity is not payable if the amount provided under | Section
15-136 is less than $10 per month.
| (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | 98-92, eff. 7-16-13.)
| (40 ILCS 5/15-139.5) | Sec. 15-139.5. Return to work by affected annuitant; notice | and contribution by employer. | (a) An employer who employs or re-employs a person | receiving a retirement annuity from the System in an academic | year beginning on or after August 1, 2013 must notify the | System of that employment within 60 days after employing the | annuitant. The notice must include a summary of the contract of |
| employment or specify the rate of compensation and the | anticipated length of employment of that annuitant. The notice | must specify whether the annuitant will be compensated from | federal, corporate, foundation, or trust funds or grants of | State funds that identify the principal investigator by name. | The notice must include the employer's determination of whether | or not the annuitant is an "affected annuitant" as defined in | subsection (b). | The employer must also record, document, and certify to the | System (i) the amount of compensation paid to the annuitant for | employment during the academic year, and (ii) the amount of | that compensation, if any, that comes from either federal, | corporate, foundation, or trust funds or grants of State funds | that identify the principal investigator by name. | As used in this Section, "academic year" means the 12-month | period beginning September 1. | For the purposes of this Section, an annuitant whose | employment by an employer extends over more than one academic | year shall be deemed to be re-employed by that employer in each | of those academic years. | The System may specify the time, form, and manner of | providing the determinations, notifications, certifications, | and documentation required under this Section. | (b) A person receiving a retirement annuity from the System | becomes an "affected annuitant" on the first day of the | academic year following the academic year in which the |
| annuitant first meets the following conditions: | (1) (Blank). | (2) While receiving a retirement annuity under this | Article, the annuitant was employed on or after August 1, | 2013 by one or more employers under this Article and | received
or became entitled to receive during an academic | year compensation for that employment in excess of 40% of | his or her highest annual earnings prior
to retirement; | except that compensation paid from federal, corporate, | foundation, or trust funds or grants of State funds that | identify the principal investigator by name is excluded. | (3) The annuitant received an annualized retirement | annuity under this Article of at least $10,000. | A person who becomes an affected annuitant remains an | affected annuitant, except for (i) any period during which the | person returns to active service and does not receive a | retirement annuity from the System or (ii) any period on or | after the effective date of this amendatory Act of the 100th | General Assembly during which an annuitant received an | annualized retirement annuity under this Article that is less | than $10,000. | (c) It is the obligation of the employer to determine | whether an annuitant is an affected annuitant before employing | the annuitant. For that purpose the employer may require the | annuitant to disclose and document his or her relevant prior | employment and earnings history. Failure of the employer to |
| make this determination correctly and in a timely manner or to | include this determination with the notification required | under subsection (a) does not excuse the employer from making | the contribution required under subsection (e). | The System may assist the employer in determining whether a | person is an affected annuitant. The System shall inform the | employer if it discovers that the employer's determination is | inconsistent with the employment and earnings information in | the System's records. | (d) Upon the request of an annuitant, the System shall | certify to the annuitant or the employer the following | information as reported by the employers, as that information | is indicated in the records of the System: (i) the annuitant's | highest annual earnings prior
to retirement, (ii) the | compensation paid for that employment in each academic year, | and (iii) whether any of that employment or compensation has | been certified to the System as being paid from federal, | corporate, foundation, or trust funds or grants of State funds | that identify the principal investigator by name. The System | shall only be required to certify information that is received | from the employers. | (e) In addition to the requirements of subsection (a), an | employer who employs an affected annuitant must pay to the | System an employer contribution in the amount and manner | provided in this Section, unless the annuitant is compensated | by that employer solely from federal, corporate, foundation, or |
| trust funds or grants of State funds that identify the | principal investigator by name. | The employer contribution required under this Section for | employment of an affected annuitant in an academic year shall | be equal to 12 times the amount of the gross monthly retirement | annuity payable to the annuitant for the month in which the | first paid day of that employment in that academic year occurs, | after any reduction in that annuity that may be imposed under | subsection (b) of Section 15-139. | If an affected annuitant is employed by more than one | employer in an academic year, the employer contribution | required under this Section shall be divided among those | employers in proportion to their respective portions of the | total compensation paid to the affected annuitant for that | employment during that academic year. | If the System determines that an employer, without | reasonable justification, has failed to make the determination | of affected annuitant status correctly and in a timely manner, | or has failed to notify the System or to correctly document or | certify to the System any of the information required by this | Section, and that failure results in a delayed determination by | the System that a contribution is payable under this Section, | then the amount of that employer's contribution otherwise | determined under this Section shall be doubled. | The System shall deem a failure to correctly determine the | annuitant's status to be justified if the employer establishes |
| to the System's satisfaction that the employer, after due | diligence, made an erroneous determination that the annuitant | was not an affected annuitant due to reasonable reliance on | false or misleading information provided by the annuitant or | another employer, or an error in the annuitant's official | employment or earnings records. | (f) Whenever the System determines that an employer is | liable for a contribution under this Section, it shall so | notify the employer and certify the amount of the contribution. | The employer may pay the required contribution without interest | at any time within one year after receipt of the certification. | If the employer fails to pay within that year, then interest | shall be charged at a rate equal to the System's prescribed | rate of interest, compounded annually from the 366th day after | receipt of the certification from the System. Payment must be | concluded within 2 years after receipt of the certification by | the employer. If the employer fails to make complete payment, | including applicable interest, within 2 years, then the System | may, after giving notice to the employer, certify the | delinquent amount to the State Comptroller, and the Comptroller | shall thereupon deduct the certified delinquent amount from | State funds payable to the employer and pay them instead to the | System. | (g) If an employer is required to make a contribution to | the System as a result of employing an affected annuitant and | the annuitant later elects to forgo his or her annuity in that |
| same academic year pursuant to subsection (c) of Section | 15-139, then the required contribution by the employer shall be | waived, and if the contribution has already been paid, it shall | be refunded to the employer without interest. | (h) Notwithstanding any other provision of this Article, | the employer contribution required under this Section shall not | be included in the determination of any benefit under this | Article or any other Article of this Code, regardless of | whether the annuitant returns to active service, and is in | addition to any other State or employer contribution required | under this Article. | (i) Notwithstanding any other provision of this Section to | the contrary, if an employer employs an affected annuitant in | order to continue critical operations in the event of either an | employee's unforeseen illness, accident, or death or a | catastrophic incident or disaster, then, for one and only one | academic year, the employer is not required to pay the | contribution set forth in this Section for that annuitant. The | employer shall, however, immediately notify the System upon | employing a person subject to this subsection (i). For the | purposes of this subsection (i), "critical operations" means | teaching services, medical services, student welfare services, | and any other services that are critical to the mission of the | employer.
| (j) This Section shall be applied and coordinated with the | regulatory obligations contained in the State Universities |
| Civil Service Act. This Section shall not apply to an annuitant | if the employer of that annuitant provides documentation to the | System that (1) the annuitant is employed in a status | appointment position, as that term is defined in 80 Ill. Adm. | Code 250.80, and (2) due to obligations contained under the | State Universities Civil Service Act, the employer does not | have the ability to limit the earnings or duration of | employment for the annuitant while employed in the status | appointment position. | (Source: P.A. 97-968, eff. 8-16-12; 98-596, eff. 11-19-13; | 98-1144, eff. 6-1-15.)
| (40 ILCS 5/15-152) (from Ch. 108 1/2, par. 15-152)
| Sec. 15-152. Disability benefits - Duration. Disability | benefits shall be discontinued when the earliest of the | following
occurs: (1) when disability ceases, (2) upon refusal
| of the participant to submit to a reasonable physical
| examination by a physician approved by the board, (3) upon | refusal of
the participant to accept any position, assigned in | good faith by an
employer, the duties of which could reasonably | be performed by the participant
and the earnings of which would | be at least equal to the disability benefit
payable under this | Article, (4) upon September 1,
following the participant's 70th | birthday,
if the disability benefit commenced prior to | attainment of age 65, (5)
the end of the month following the | fifth anniversary of the
date disability benefits commenced, if |
| such benefits began after the
attainment of age 65, or (6) when | the total disability
benefits paid equal 50% of the | participant's
total earnings for the entire period of
| employment for which service has been granted prior to the date
| disability benefits began to accrue, or (7) upon failure of the | participant to provide an earnings verification necessary to | determine continuance of benefits. If the disability was caused | by
an on-the-job accident, and the participant is granted | workers'
compensation or occupational disease payments from | the employer or the
State of Illinois, the limitation in clause | (6) shall not be applicable.
| Service and earnings credits under the State Employees' | Retirement
System of Illinois and the Teachers' Retirement | System of the State of
Illinois shall be considered in | determining the employee's eligibility
for, and the duration of | disability benefits.
| If, by law, a function of a governmental unit, as
defined | by Section 20-107 is transferred in whole or in
part to an | employer and an employee transfers employment from the
| governmental unit to such employer within 6 months after the | transfer of
this function, the pension credits in the | governmental unit's retirement
system which have been | validated under
Section 20-109, shall be treated the same as | pension credits in this Section
in determining an employee's | eligibility
for, and the duration of disability benefits.
| (Source: P.A. 86-273.)
|
| (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
| Sec. 15-153.2. Disability retirement annuity. A | participant whose
disability benefits are discontinued under | the provisions of clause (6) of
Section 15-152 and who is not a | participant in the optional retirement plan
established under | Section 15-158.2 is entitled to a disability
retirement annuity | of 35% of the basic compensation which was payable to the
| participant at the time that disability began, provided that | the board determines that the participant has a medically | determinable physical or
mental impairment that prevents him or | her from
engaging in any substantial gainful activity, and | which can be expected to
result in death or which has lasted or | can be expected to last for a continuous
period of not less | than 12 months.
| The board's determination of whether a participant is | disabled shall be
based upon:
| (i) a written certificate from one or more licensed and | practicing
physicians appointed by or acceptable to the | board, stating that the
participant is unable to engage in | any substantial gainful activity; and
| (ii) any other medical examinations, hospital records, | laboratory
results, or other information necessary for | determining the employment
capacity and condition of the | participant.
| The terms "medically determinable physical or mental |
| impairment" and
"substantial gainful activity" shall have the | meanings ascribed to them in the
federal Social Security Act, | as now or hereafter amended, and the
regulations issued | thereunder.
| The disability retirement annuity payment period shall | begin immediately
following the expiration of the disability | benefit payments under clause
(6) of Section 15-152 and shall | be discontinued for a recipient of a disability retirement | annuity when (1) the physical or
mental impairment no longer | prevents the recipient participant from engaging in any
| substantial gainful activity, (2) the recipient participant | dies, or (3) the recipient participant
elects to receive a | retirement annuity under Sections 15-135 and 15-136, (4) the | recipient refuses to submit to a reasonable physical | examination by a physician approved by the board, or (5) the | recipient fails to provide an earnings verification necessary | to determine continuance of benefits.
If a person's disability | retirement annuity is discontinued under clause
(1), all rights | and credits accrued in the system on the date that the
| disability retirement annuity began shall be restored, and the | disability
retirement annuity paid shall be considered as | disability payments under
clause (6) of Section 15-152.
| The board shall adopt rules governing the filing, | investigation, control, and supervision of disability | retirement annuity claims. Costs incurred by a claimant in | connection with completing a claim for a disability retirement |
| annuity shall be paid: (A) by the claimant in the case of the | one required medical examination, medical certificate, and any | other requirements generally imposed by the board on all | disability retirement annuity claimants; and (B) by the System | in the case of any additional medical examination or other | additional requirement imposed on a particular claimant that is | not imposed generally on all disability retirement annuity | claimants. | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| (40 ILCS 5/15-168.1)
| Sec. 15-168.1. 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: | (1) the determination of employer payments required | under subsection (g) of Section 15-155; , | (2) a disability
claim; , | (3) an administrative review proceeding; , | (4) an attempt to obtain information to assist in the | collection of sums due to the System; | (5) obtaining any and all personal identifying | information necessary for the administration of benefits; | (6) the determination of the death of a benefit | recipient or a potential benefit recipient; or |
| (7) 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.
| (Source: P.A. 94-1057, eff. 7-31-06.)
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 12/8/2017
|
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