Illinois 98th Regular Session Status: Enacted

SB 1 — PEN CD-REFORM STATE SYSTEMS

Last action — Public Act . . . . . . . . . 98-0599

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 09, 2013. Enacted.

Prognosis

Advancing 54% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    0 primary, 1 co-sponsors signed on.

  • Mixed recorded votes

    5 passed, 2 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amends the General Provisions, General Assembly, Illinois Municipal Retirement Fund (IMRF), State Employee, State Universities, Downstate Teacher, and Judges Articles of the Illinois Pension Code. Contains a Part A, which is intended by the General Assembly as a stand-alone reform of the General Assembly, State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code and takes effect upon becoming law. Contains a Part B, which is intended to provide alternative provisions that take effect only if and when a corresponding portion of Part A is determined to be unconstitutional or otherwise invalid or unenforceable. In Part A, caps pensionable salary, temporarily suspends and reduces the amount of automatic annual increases, requires the systems to be 100% funded by 2043, and increases required employee contributions. In Part B, requires persons to make an election either to accept reductions in the amount of, as well as delays in eligibility for, automatic annual increases or to forgo certain healthcare benefits and future increases in pensionable income. Effective upon becoming law, except that specified portions of Part B take effect upon the date following the date upon which certain contingencies occur.

Bill Text

What changed in the latest version

8551 added · 1583 removed

Plain-language change summary

The recent amendments to SB 1 introduce a new section that highlights Illinois' ongoing financial struggles, including high debt and budget deficits that could worsen without legislative action. This addition emphasizes the urgency for significant reform, particularly in the state's pension system, which currently has a staggering $100 billion in unfunded liabilities. These changes matter because they draw attention to the critical need for strategic financial planning in Illinois to prevent future economic challenges. Additionally, some sections that previously outlined management rights in labor relations are removed, which may impact negotiations between employers and employees in the state.

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SB0001 Engrossed LRB098 05457 JDS 35491 b AN ACT concerning public employee benefits.
SB0001 Enrolled LRB098 05457 JDS 35491 b AN ACT concerning public employee benefits.
Section 5.
Section 1.
The Illinois Public Labor Relations Act is amended by changing Sections 4 and 15 as follows:
Legislative statement.
At the time of passage of this amendatory Act of the 98th General Assembly, Illinois has both atypically large debts and structural budgetary imbalances that will, unless addressed by the General Assembly, lead to even greater and rapidly growing debts and deficits.
Already, Illinois has the lowest credit rating of any state, and it faces the prospect of future credit downgrades that will further increase the high cost of borrowing.
The State has taken significant action to address these fiscal troubles, including, but not limited to, increasing the income tax and reducing pension benefits for future employees.
Further, the State has enacted a series of budgets over the last several fiscal years that resulted in deep cuts to important discretionary programs that are essential to the people of Illinois.
At the time of passage of this amendatory Act of the 98th General Assembly, the State's retirement systems have unfunded actuarially accrued liabilities of approximately $100 billion.
Meanwhile, the State's annual pension contribution has substantially increased in recent years, and will continue to SB0001 Enrolled - 2 - LRB098 05457 JDS 35491 b increase in coming years.
The General Assembly recognizes that without significant pension reform, the unfunded liability and the State's pension contribution will continue to grow, and further burden the fiscal stability of both the State and its retirement systems.
This amendatory Act of the 98th General Assembly is intended to address the fiscal issues facing the State and its retirement systems in a manner that is feasible, consistent with the Illinois Constitution, and advantageous to both the taxpayers and employees impacted by these changes.
Having considered other alternatives that would not involve changes to the retirement systems, the General Assembly has determined that the fiscal problems facing the State and its retirement systems cannot be solved without making some changes to the structure of the retirement systems.
As a result, this amendatory Act requires more fiscal responsibility of the State, while minimizing the impact on current and retired State employees.
Going forward, the automatic annual increase in retirement annuity will be based on a participant's years of service to the State and inflation, which more accurately reflects changes in the cost of living.
For participants who have yet to receive an annuity, a pensionable salary cap will be imposed;
however, it will only impact future salary increases that exceed a cap.
Those workers 45 years of age and younger will be required to work an additional 4 months for each year under 46, which SB0001 Enrolled - 3 - LRB098 05457 JDS 35491 b results in a minimal increase in retirement age given that the life expectancy for a 45 year old is 87 years of age.
Current employees will receive a 1% reduction in required employee contributions.
With these changes, the State can adopt an actuarially sound funding formula that will result in the pension systems achieving 100% funding no later than 2044.
The State will also make additional contributions that will considerably aid in reducing the unfunded actuarially accrued liability.
The General Assembly finds that this amendatory Act of the 98th General Assembly will lead to fiscal stability for the State and its pension systems.
Section 3.
The Illinois Public Labor Relations Act is amended by changing Sections 4 and 15 and adding Section 7.5 as follows:
Employers, however, shall be required to bargain collectively with regard to policy matters directly affecting wages (but subject to any applicable restrictions in Section 16-122.9 of the Illinois Pension Code), hours and terms and conditions of employment as well as the impact thereon upon request by employee representatives, but excluding the changes, the impact of changes, and the implementation of the changes set forth in this amendatory Act of the 98th General Assembly.
Employers, however, shall be required to bargain collectively with regard to policy matters directly affecting wages, hours SB0001 Enrolled - 4 - LRB098 05457 JDS 35491 b and terms and conditions of employment as well as the impact thereon upon request by employee representatives, except as provided in Section 7.5.
To preserve the rights of employers and exclusive representatives which have established collective bargaining relationships or negotiated collective bargaining agreements SB0001 Engrossed - 2 - LRB098 05457 JDS 35491 b prior to the effective date of this Act, employers shall be required to bargain collectively with regard to any matter concerning wages (but subject to any applicable restrictions in Section 16-122.9 of the Illinois Pension Code), hours or conditions of employment about which they have bargained for and agreed to in a collective bargaining agreement prior to the effective date of this Act, but excluding the changes, the impact of changes, and the implementation of the changes set forth in this amendatory Act of the 98th General Assembly.
To preserve the rights of employers and exclusive representatives which have established collective bargaining relationships or negotiated collective bargaining agreements prior to the effective date of this Act, employers shall be required to bargain collectively with regard to any matter concerning wages, hours or conditions of employment about which they have bargained for and agreed to in a collective bargaining agreement prior to the effective date of this Act, except as provided in Section 7.5.
7-1-05.) (5 ILCS 315/15) (from Ch.
7-1-05.) (5 ILCS 315/7.5 new) Sec.
7.5.
Duty to bargain regarding pension amendments.
SB0001 Enrolled - 5 - LRB098 05457 JDS 35491 b (a) Notwithstanding any provision of this Act, employers shall not be required to bargain over matters affected by the changes, the impact of changes, and the implementation of changes made to Article 14, 15, or 16 of the Illinois Pension Code, or Article 1 of that Code as it applies to those Articles, made by this amendatory Act of the 98th General Assembly, or over any other provision of Article 14, 15, or 16 of the Illinois Pension Code, or of Article 1 of that Code as it applies to those Articles, which are prohibited subjects of bargaining;
nor shall the changes, the impact of changes, or the implementation of changes made to Article 14, 15, or 16 of the Illinois Pension Code, or to Article 1 of that Code as it applies to those Articles, by this amendatory Act of the 98th General Assembly or any other provision of Article 14, 15, or 16 of the Illinois Pension Code, or of Article 1 of that Code as it applies to those Articles, be subject to interest arbitration or any award issued pursuant to interest arbitration.
The provisions of this Section shall not apply to an employment contract or collective bargaining agreement that is in effect on the effective date of this amendatory Act of the 98th General Assembly.
However, any such contract or agreement that is subsequently modified, amended, or renewed shall be subject to the provisions of this Section.
The provisions of this Section shall also not apply to the ability of an employer and employee representative to bargain collectively with regard to the pick up of employee SB0001 Enrolled - 6 - LRB098 05457 JDS 35491 b contributions pursuant to Section 14-133.1, 15-157.1, or 16-152.1 of the Illinois Pension Code.
(b) Nothing in this Section, however, shall be construed as otherwise limiting any of the obligations and requirements applicable to each employer under any of the provisions of this Act, including, but not limited to, the requirement to bargain collectively with regard to policy matters directly affecting wages, hours and terms and conditions of employment as well as the impact thereon upon request by employee representatives, except for the matters deemed prohibited subjects of bargaining under subsection (a) of this Section.
Nothing in this Section shall further be construed as otherwise limiting any of the rights of employees or employee representatives under the provisions of this Act, except for matters deemed prohibited subjects of bargaining under subsection (a) of this Section.
(c) In case of any conflict between this Section and any other provisions of this Act or any other law, the provisions of this Section shall control.
(5 ILCS 315/15) (from Ch.
(a) In case of any conflict between the provisions of this Act and any other law (other than Section 5 of the State Employees Group Insurance Act of 1971 and other than the SB0001 Engrossed - 3 - LRB098 05457 JDS 35491 b changes made to the Illinois Pension Code by Public Act 96-889 and the changes, impact of changes, and the implementation of the changes made to the Illinois Pension Code and the State Employees Group Insurance Act of 1971 by this amendatory Act of the 98th 96th General Assembly), executive order or administrative regulation relating to wages, hours and conditions of employment and employment relations, the provisions of this Act or any collective bargaining agreement negotiated thereunder shall prevail and control.
(a) In case of any conflict between the provisions of this Act and any other law (other than Section 5 of the State Employees Group Insurance Act of 1971 and other than the changes made to the Illinois Pension Code by Public Act 96-889 and other than as provided in Section 7.5 this amendatory Act SB0001 Enrolled - 7 - LRB098 05457 JDS 35491 b of the 96th General Assembly), executive order or administrative regulation relating to wages, hours and conditions of employment and employment relations, the provisions of this Act or any collective bargaining agreement negotiated thereunder shall prevail and control.
The provisions of this Act are subject to the changes made by this amendatory Act of the 98th General Assembly, including Section 16-122.9 of the Illinois Pension Code, and Section 5 of the State Employees Group Insurance Act of 1971.
The provisions of this Act are subject to Section 7.5 of this Act and Section 5 of the State Employees Group Insurance Act of 1971.
(b) Except as provided in subsection (a) above, any collective bargaining contract between a public employer and a labor organization executed pursuant to this Act shall supersede any contrary statutes, charters, ordinances, rules or regulations relating to wages, hours and conditions of SB0001 Engrossed - 4 - LRB098 05457 JDS 35491 b employment and employment relations adopted by the public employer or its agents.
(b) Except as provided in subsection (a) above, any collective bargaining contract between a public employer and a labor organization executed pursuant to this Act shall supersede any contrary statutes, charters, ordinances, rules or regulations relating to wages, hours and conditions of employment and employment relations adopted by the public employer or its agents.
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(c) It is the public policy of this State, pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, that the provisions of this Act are the exclusive exercise by the State of powers and functions which might otherwise be exercised by home rule units.
(c) It is the public policy of this State, pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the SB0001 Enrolled - 8 - LRB098 05457 JDS 35491 b Illinois Constitution, that the provisions of this Act are the exclusive exercise by the State of powers and functions which might otherwise be exercised by home rule units.
1-1-11.) Section 12.
1-1-11.) Section 5.
The State Employees Group Insurance Act of 1971 is amended by adding Section 6.16 as follows:
The Governor's Office of Management and Budget Act is amended by changing Sections 7 and 8 as follows:
(5 ILCS 375/6.16 new) Sec.
(20 ILCS 3005/7) (from Ch.
6.16.
127, par.
Health benefit election for Tier I employees and Tier I retirees.
417) Sec.
(a) For purposes of this Section:
7.
"Eligible Tier I employee" means, except as provided in subsection (g) of this Section, an individual who makes or is deemed to have made an election under paragraph (1) of subsection (a) of Section 16-122.9 of the Illinois Pension SB0001 Engrossed - 5 - LRB098 05457 JDS 35491 b Code.
All statements and estimates of expenditures submitted to the Office in connection with the preparation of a State budget, and any other estimates of expenditures, supporting requests for appropriations, shall be formulated according to the various functions and activities for which the respective department, office or institution of the State government (including the elective officers in the executive department and including the University of Illinois and the judicial department) is responsible.
"Program of health benefits" means (i) a health plan, as defined in subsection (o) of Section 3 of this Act, that is designed and contracted for by the Director under this Act or any successor Act or (ii) if administration of that health plan is transferred to a trust established by the State or an independent Board in order to provide health benefits to a class of persons that includes eligible Tier I retirees, then the plan of health benefits provided through that trust.
All such statements and estimates of expenditures relating to a particular function or activity shall be further formulated or subject to analysis in accordance with the following classification of objects:
(b) As adequate and legal consideration for making the election under paragraph (1) of subsection (a) of Section 16-122.9 of the Illinois Pension Code each eligible Tier I employee shall receive a vested and enforceable contractual right to participate in a program of health benefits while he or she qualifies as an annuitant or retired employee.
(1) Personal services SB0001 Enrolled - 9 - LRB098 05457 JDS 35491 b (2) State contribution for employee group insurance (3) Contractual services (4) Travel (5) Commodities (6) Equipment (7) Permanent improvements (8) Land (9) Electronic Data Processing (10) Telecommunication services (11) Operation of Automotive Equipment (12) Contingencies (13) Reserve (14) Interest (15) Awards and Grants (16) Debt Retirement (17) Non-cost Charges.
That right also extends to such a person's dependents and survivors who are eligible under the applicable program of health benefits.
(18) State retirement contribution for annual normal cost (19) State retirement contribution for unfunded accrued liability.
(c) Notwithstanding subsection (b), eligible Tier I employees may be required to make contributions toward the cost of coverage under a program of health benefits.
(Source:
(d) The vested and enforceable contractual right to a program of health benefits is not offered as, and shall not be considered, a pension or retirement benefit under Article XIII, Section 5 of the Illinois Constitution, the Illinois Pension Code, or any subsequent or successor enactment providing SB0001 Engrossed - 6 - LRB098 05457 JDS 35491 b pension benefits.
P.A.
(e) Notwithstanding any other provision of this Act to the contrary, except subsection (g) of this Section, a Tier I employee who has made an election under paragraph (2) of subsection (a) of Section 16-122.9 of the Illinois Pension Code shall not be entitled to participate in any program of health benefits under this Act as an annuitant or retired employee receiving a retirement annuity, regardless of any contrary election under any other retirement system.
93-25, eff.
Notwithstanding any other provision of this Act to the contrary, except subsection (g) of this Section, a Tier I employee who is not entitled to participate in the program of health benefits as an annuitant or retired employee receiving a retirement annuity, due to an election under paragraph (2) of subsection (a) of Section 16-122.9 of the Illinois Pension Code shall not be required to make contributions toward the program of health benefits while he or she is an employee or active contributor.
6-20-03.) (20 ILCS 3005/8) (from Ch.
However, an active employee may be required to make contributions toward health benefits he or she receives during active service.
127, par.
(f) The Department shall coordinate with each retirement system administering an election in accordance with this amendatory Act of the 98th General Assembly to provide information concerning the impact of the election of health benefits.
418) Sec.
Each System shall include information prepared by the Department in the required election packet.
8.
The Department SB0001 Engrossed - 7 - LRB098 05457 JDS 35491 b shall make information available to Tier I employees through video materials, group presentations, consultation by telephone or other electronic means, or any combination of these methods.
When used in connection with a State budget or expenditure or estimate, items (1) through (16) in the classification of objects stated in Section 7 shall have the meanings ascribed to those items in Sections 14 through 24.7, SB0001 Enrolled - 10 - LRB098 05457 JDS 35491 b respectively, of the State Finance Act.
The information in the election packet shall include a notice that states:
"An Act in relation to State finance", approved June 10, 1919, as amended.
"YOU ARE HEREBY ADVISED THAT THE PROGRAM OF HEALTH BENEFITS OFFERED IS FOR ACCESS TO A GROUP HEALTHCARE PLAN ADMINISTERED BY THE DEPARTMENT, AND YOU MAY BE REQUIRED TO PAY FOR THE FULL COST OF COVERAGE PROVIDED BY THE PLAN, INCLUDING ALL PREMIUM, DEDUCTIBLE, AND COPAY AMOUNTS." (g) Nothing in this Section shall be construed as applying to a person who qualifies as a Tier I retiree under Section 16-107.2 of the Illinois Pension Code or to a retiree who, as a consequence of returning to active service, qualifies as a Tier I employee under Section 16-107.1.
When used in connection with a State budget or expenditure or estimate, items (18) and (19) in the classification of objects stated in Section 7 shall have the meanings ascribed to those items in Sections 24.12 and 24.13, respectively, of the State Finance Act.
Section 22.
(Source:
P.A.
82-325.) Section 7.
The State Finance Act is amended by changing Section 13 and by adding Sections 24.12 and 24.13 as follows:
(30 ILCS 105/13) (from Ch.
127, par.
149) Sec.
13.
The objects and purposes for which appropriations are made are classified and standardized by items as follows:
(1) Personal services;
(2) State contribution for employee group insurance;
(3) Contractual services;
(4) Travel;
(5) Commodities;
(6) Equipment;
(7) Permanent improvements;
(8) Land;
(9) Electronic Data Processing;
(10) Operation of automotive equipment;
(11) Telecommunications services;
SB0001 Enrolled - 11 - LRB098 05457 JDS 35491 b (12) Contingencies;
(13) Reserve;
(14) Interest;
(15) Awards and Grants;
(16) Debt Retirement;
(17) Non-Cost Charges;
(18) State retirement contribution for annual normal cost;
(19) State retirement contribution for unfunded accrued liability;
(20) (18) Purchase Contract for Real Estate.
When an appropriation is made to an officer, department, institution, board, commission or other agency, or to a private association or corporation, in one or more of the items above specified, such appropriation shall be construed in accordance with the definitions and limitations specified in this Act, unless the appropriation act otherwise provides.
An appropriation for a purpose other than one specified and defined in this Act may be made only as an additional, separate and distinct item, specifically stating the object and purpose thereof.
(Source:
P.A.
84-263;
84-264.) (30 ILCS 105/24.12 new) Sec.
24.12.
"State retirement contribution for annual normal cost" defined.
The term "State retirement contribution for annual normal cost" means the portion of the total required SB0001 Enrolled - 12 - LRB098 05457 JDS 35491 b State contribution to a retirement system for a fiscal year that represents the State's portion of the System's projected normal cost for that fiscal year, as determined and certified by the board of trustees of the retirement system in conformance with the applicable provisions of the Illinois Pension Code.
(30 ILCS 105/24.13 new) Sec.
24.13.
"State retirement contribution for unfunded accrued liability" defined.
The term "State retirement contribution for unfunded accrued liability" means the portion of the total required State contribution to a retirement system for a fiscal year that is not included in the State retirement contribution for annual normal cost.
Section 10.
(b) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law SB0001 Engrossed - 8 - LRB098 05457 JDS 35491 b from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.
(b) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or SB0001 Enrolled - 13 - LRB098 05457 JDS 35491 b diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.
(c) For each fiscal year through State fiscal year 2013, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.
(c) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.
(c-10) In State fiscal year 2020 and each fiscal year thereafter, the State Comptroller shall order transferred and the State Treasurer shall transfer $1,000,000,000 from the General Revenue Fund to the Pension Stabilization Fund.
(c-5) In addition to any other amounts required to be transferred under this Section, in State fiscal year 2016 and each fiscal year thereafter through State fiscal year 2045, or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first, the State Comptroller shall order transferred and the State Treasurer shall transfer from the General Revenue Fund to the Pension Stabilization Fund an amount equal to 10% of (1) the sum of the amounts certified by the designated retirement systems under subsection (a-5) of Section 2-134, subsection (a-10) of Section 14-135.08, subsection (a-10) of Section 15-165, and subsection (a-10) of Section 16-158 of this Code SB0001 Enrolled - 14 - LRB098 05457 JDS 35491 b for that fiscal year minus (2) the sum of (i) the transfer required under subsection (c-10) of this Section for that fiscal year and (ii) the sum of the required State contributions certified by the retirement systems under subsection (a) of Section 2-134, subsection (a-5) of Section 14-135.08, subsection (a-5) of Section 15-165, and subsection (a-5) of Section 16-158 of this Code for that fiscal year.
(c-15) The transfers made pursuant to subsection (c-10) of this Section shall continue through State fiscal year 2045 or until each of the designated retirement systems, as defined in Section 25, has achieved the funding ratio prescribed by law for that retirement system, whichever occurs first.
The transferred amount is intended to represent one-tenth of the annual savings to the State resulting from the enactment of this amendatory Act of the 98th General Assembly.
(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of SB0001 Engrossed - 9 - LRB098 05457 JDS 35491 b that fiscal year or as soon thereafter as possible;
(c-10) In State fiscal year 2019, the State Comptroller shall order transferred and the State Treasurer shall transfer $364,000,000 from the General Revenue Fund to the Pension Stabilization Fund.
In State fiscal year 2020 and each fiscal year thereafter until terminated under subsection (c-15), the State Comptroller shall order transferred and the State Treasurer shall transfer $1,000,000,000 from the General Revenue Fund to the Pension Stabilization Fund.
(c-15) The transfers made beginning in State fiscal year 2020 pursuant to subsection (c-10) of this Section shall terminate at the end of State fiscal year 2045 or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first.
(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of SB0001 Enrolled - 15 - LRB098 05457 JDS 35491 b that fiscal year or as soon thereafter as possible;
Until State fiscal year 2014, before Before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year.
Until State fiscal year 2015, before Before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year.
(2) the Teachers' Retirement System of the State of SB0001 Engrossed - 10 - LRB098 05457 JDS 35491 b Illinois;
(2) the Teachers' Retirement System of the State of SB0001 Enrolled - 16 - LRB098 05457 JDS 35491 b Illinois;
For this purpose, the Governor's Office of Management and Budget shall consider the latest available audit and actuarial reports of each of the retirement systems and the SB0001 Engrossed - 11 - LRB098 05457 JDS 35491 b relevant reports and statistics of the Public Pension Division of the Department of Financial and Professional Regulation.
For this purpose, the Governor's Office of Management and Budget shall consider the latest available audit and actuarial reports of each of the retirement systems and the SB0001 Enrolled - 17 - LRB098 05457 JDS 35491 b relevant reports and statistics of the Public Pension Division of the Department of Insurance Financial and Professional Regulation.
Payments to the designated retirement systems under this Section, transferred after the effective date of this amendatory Act of the 98th General Assembly, do not reduce and do not constitute payment of any portion of the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in that fiscal year.
Payments to the designated retirement systems under this Section received after the effective date of this amendatory Act of the 98th General Assembly, and any investment earnings attributable to such payments, do not reduce and do not constitute payment of any portion of the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in the current fiscal year.
Such amounts shall not reduce, and shall not be included in the calculation of, the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in any future year, until the designated retirement system has received payment of contributions pursuant to this Act.
Such amounts shall not reduce, and shall not be included in the calculation of, the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in any future fiscal year, until the designated retirement system has reached the targeted funding ratio as prescribed by law for that retirement system.
Such payments may be invested in the same manner as other assets of the designated retirement system and shall be used in the calculation of the system's funding ratio for the purposes of this Section and Section 20 of this Act.
Payments under this Section may be used for any associated administrative costs.
6-6-06.) Section 25.
6-6-06.) SB0001 Enrolled - 18 - LRB098 05457 JDS 35491 b Section 15.
The Illinois Pension Code is amended by changing Sections 16-106, 16-121, 16-127, 16-133.1, 16-133.6, 16-136.1, 16-152, and 16-203 and by adding Sections 1-162, 16-107.1, 16-107.2, 16-121.1, 16-122.9, 16-133.6, and 16-158.2 as follows:
The Illinois Pension Code is amended by changing Sections 1-103.3, 2-108, 2-108.1, 2-119, 2-119.1, 2-124, 2-125, 2-126, 2-134, 2-162, 7-109, 7-114, 7-116, 7-139, 9-219, 9-220, 14-103.10, 14-104.3, 14-106, 14-107, 14-108, 14-110, 14-114, 14-115, 14-131, 14-132, 14-133, 14-135.08, 14-152.1, 15-106, 15-107, 15-111, 15-112, 15-113.4, 15-125, 15-135, 15-136, 15-155, 15-156, 15-157, 15-165, 15-198, 16-106, 16-112, 16-121, 16-127, 16-132, 16-133, 16-133.1, 16-133.2, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-134, 20-106, 20-121, 20-123, 20-124, and 20-125 and by adding Sections 2-105.1, 2-105.2, 2-126.5, 2-165, 2-166, 14-103.40, 14-133.5, 14-155, 14-156, 15-157.5, 15-200, 15-201, 16-106.4, 16-152.5, 16-158.2, 16-205, and 16-206 as follows:
(40 ILCS 5/1-162 new) SB0001 Engrossed - 12 - LRB098 05457 JDS 35491 b Sec.
(40 ILCS 5/1-103.3) Sec.
1-162.
1-103.3.
Optional cash balance plan.
Application of 1994 amendment;
(a) Participation and Applicability.
funding standard.
Beginning 12 months after the effective date of this Section, any Tier I employee who has made the election under paragraph (1) of subsection (a) of Section 16-122.9 may elect to participate in the optional cash balance plan created under this Section.
(a) The provisions of Public Act 88-593 this amendatory Act of 1994 that change the method of calculating, certifying, and paying the required State contributions to the retirement systems established under Articles 2, 14, 15, 16, and 18 shall first apply to the State contributions required for State fiscal year 1996.
The Board of Trustees of the applicable retirement system shall promulgate rules to create an annual election wherein a person eligible to participate in the optional cash balance plan may elect to participate, and an active employee who is a participant in the plan may elect to cease active participation.
(b) (Blank) The General Assembly declares that a funding ratio (the ratio of a retirement system's total assets to its total actuarial liabilities) of 90% is an appropriate goal for SB0001 Enrolled - 19 - LRB098 05457 JDS 35491 b State-funded retirement systems in Illinois, and it finds that a funding ratio of 90% is now the generally-recognized norm throughout the nation for public employee retirement systems that are considered to be financially secure and funded in an appropriate and responsible manner.
The election to cease active participation shall not disqualify the employee from eligibility to receive an interest credit under subsection (f), a distribution upon termination under subsection (f-10), a refund under subsection (f-15), a retirement annuity under subsection (g), or a survivor's annuity under subsection (k), or from eligibility to resume active participation in the optional cash balance plan in a subsequent year.
(c) Every 5 years, beginning in 1999, the Commission on Government Forecasting and Accountability, in consultation with the affected retirement systems and the Governor's Office of Management and Budget (formerly Bureau of the Budget), shall consider and determine whether the funding goals 90% funding ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code continue subsection (b) continues to represent an appropriate funding goals goal for those State-funded retirement systems in Illinois, and it shall report its findings and recommendations on this subject to the Governor and the General Assembly.
(b) Title.
(Source:
The package of benefits provided under this Section may be referred to as the "optional cash balance plan".
P.A.
Persons subject to the provisions of this Section may be referred to as "participants in the optional cash balance plan".
93-1067, eff.
(b-5) Definitions.
1-15-05.) (40 ILCS 5/2-105.1 new) Sec.
As used in this Section:
2-105.1.
"Account" means the notional cash balance account SB0001 Engrossed - 13 - LRB098 05457 JDS 35491 b established under this Section for a participant in the optional cash balance plan.
Tier 1 participant;
"Salary" means "salary" as defined in Article 16, without regard to the limitation in subsection (b-5) of Section 1-160.
Tier 2 participant.
"Tier I employee" means a person who is a Tier I employee under the applicable Article of this Code.
"Tier 1 participant":
(c) Cash Balance Account.
A participant who first became a participant before January 1, 2011.
A notional cash balance account shall be established by the applicable retirement system for each participant in the optional cash balance plan.
"Tier 2 participant":
The account is notional and does not contain any actual money segregated from the commingled assets of the retirement system.
A participant who first became a participant on or after January 1, 2011.
The cash balance in the account is to be used in calculating benefits as provided in this Section, but is not to be used in the calculation of any refund, transfer, or other benefit under the applicable Article of this Code.
(40 ILCS 5/2-105.2 new) Sec.
The amounts to be credited to the cash balance account shall consist of (i) amounts contributed by or on behalf of the participant as employee contributions, (ii) notional employer contributions, and (iii) interest credit that is attributable to the account, all as provided in this Section.
2-105.2.
Whenever necessary for the prompt calculation or administration, or when the System lacks information necessary to the calculation or administration otherwise required of or for a benefit under this Section, the applicable retirement system may estimate an amount to be credited to or debited from a participant's cash balance account and then adjust the amount SB0001 Engrossed - 14 - LRB098 05457 JDS 35491 b so credited or debited when more accurate information becomes available.
Tier 1 retiree.
The applicable retirement system shall give to each participant in the optional cash balance plan who has not yet retired annual notice of (1) the balance in the participant's cash balance account and (2) an estimate of the retirement annuity that will be payable to the participant if he or she retires at age 59 1/2.
"Tier 1 retiree" means a SB0001 Enrolled - 20 - LRB098 05457 JDS 35491 b former Tier 1 participant who has made the election to retire and has terminated service.
(d) Employee Contributions.
(40 ILCS 5/2-108) (from Ch.
In addition to the other contributions required under the applicable Article, each participant shall make contributions to the applicable retirement system at the rate of 2% of each payment of salary.
108 1/2, par.
The amount of each contribution shall be credited to the participant's cash balance account upon receipt and after the retirement system's reconciliation of the contribution.
2-108) Sec.
(e) Optional Employer Contributions.
2-108.
Employers may make optional additional contributions to the applicable retirement system on behalf of their employees who are participants in the optional cash balance plan in accordance with procedures prescribed by the retirement system to the extent permitted by federal law and the rules prescribed by the retirement system.
Salary.
The optional additional contributions under this subsection are actual monetary contributions to the retirement system, and the amount of each optional additional contribution shall be credited to the participant's cash balance account upon receipt and after the retirement system's reconciliation of the SB0001 Engrossed - 15 - LRB098 05457 JDS 35491 b contribution.
"Salary":
(f) Interest Credit.
(1) For members of the General Assembly, the total compensation paid to the member by the State for one year of service, including the additional amounts, if any, paid to the member as an officer pursuant to Section 1 of "An Act in relation to the compensation and emoluments of the members of the General Assembly", approved December 6, 1907, as now or hereafter amended.
An amount representing earnings on investments shall be determined by the retirement system in accordance with this Section and credited to the participant's cash balance account for each fiscal year in which there is a positive balance in that account;
(2) For the State executive officers specified in Section 2-105, the total compensation paid to the member for one year of service.
except that no additional interest credit shall be credited while an annuity based on the account is being paid.
(3) For members of the System who are participants under Section 2-117.1, or who are serving as Clerk or Assistant Clerk of the House of Representatives or Secretary or Assistant Secretary of the Senate, the total compensation paid to the member for one year of service, but not to exceed the salary of the highest salaried officer of the General Assembly.
The interest credit amount shall be a percentage of the average quarterly balance in the cash balance account during that fiscal year and shall be calculated on June 30.
However, in the event that federal law results in any participant receiving imputed income based on the value of group term life insurance provided by the State, such imputed income shall not be included in salary for the purposes of this Article.
The percentage shall be the assumed treasury rate for the previous fiscal year, unless neither the retirement system's actual rate of investment earnings for the previous fiscal year nor the retirement system's actual rate of investment earnings for the five-year period ending at the end of the previous fiscal year is less than the assumed treasury rate.
Notwithstanding any other provision of this Code, the SB0001 Enrolled - 21 - LRB098 05457 JDS 35491 b annual salary of a Tier 1 participant for the purposes of this Code shall not exceed, for periods of service in a term of office beginning on or after the effective date of this amendatory Act of the 98th General Assembly, the greater of (i) the annual limitation determined from time to time under subsection (b-5) of Section 1-160 of this Code or (ii) the annualized salary of the participant on the last day of that participant's last term of office beginning before that effective date.
If both the retirement system's actual rate of investment earnings for the previous fiscal year and the actual rate of investment earnings for the five-year period ending at the end of the previous fiscal year are at least the assumed treasury rate, then the percentage shall be:
(Source:
(i) the assumed treasury rate, plus (ii) two-thirds of the amount of the actual rate of investment earnings for the previous fiscal year that exceeds the assumed treasury rate.
P.A.
SB0001 Engrossed - 16 - LRB098 05457 JDS 35491 b However, in no event shall the percentage applied under this subsection exceed 10%.
86-27;
For the purposes of this subsection only, "previous fiscal year" means the fiscal year ending one year before the interest rate is calculated.
86-273;
For the purposes of this subsection only, "assumed treasury rate" means the average annual yield of the 30-year U.S.
86-1028;
Treasury Bond over the previous fiscal year, but not less than 4%.
86-1488.) (40 ILCS 5/2-108.1) (from Ch.
When a person applies for a benefit under this Section, the retirement system shall apply an interest credit based on a proration of an estimate of what the interest credit will be for the relevant year.
108 1/2, par.
When the retirement system certifies the credit on June 30, it shall adjust the benefit accordingly.
2-108.1) Sec.
(f-10) Distribution upon Termination of Employment.
2-108.1.
Upon termination of active employment with at least 5 years of service credit under the applicable retirement system and prior to making application for an annuity under this Section, a participant in the optional cash balance plan may make an irrevocable election to distribute an amount not to exceed 40% of the balance in the participant's account in the form of a direct rollover to another qualified plan, to the extent allowed by federal law.
Highest salary for annuity purposes.
If the participant makes such an election, then the amount distributed shall be debited from the participant's cash balance account.
(a) "Highest salary for annuity purposes" means whichever of the following is applicable to the participant:
A participant in the optional cash balance plan shall be allowed only one SB0001 Engrossed - 17 - LRB098 05457 JDS 35491 b distribution under this subsection.
For a participant who first becomes a participant of this System before August 10, 2009 (the effective date of Public Act 96-207):
The remaining balance in the participant's account shall be used for the determination of other benefits provided under this Section.
(1) For a participant who is a member of the General Assembly on his or her last day of service:
(f-15) Refund.
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;
In lieu of receiving a distribution under subsection (f-10), at any time after terminating active employment under the applicable retirement system, but before receiving a retirement annuity under this Section, a participant in the optional cash balance plan may elect to receive a refund under this subsection.
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 SB0001 Enrolled - 22 - LRB098 05457 JDS 35491 b 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.
The refund shall consist of an amount equal to the amount of all employee contributions credited to the participant's account, but shall not include any interest credit or employer contributions.
(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:
If the participant so requests, the refund may be paid in the form of a direct rollover to another qualified plan, to the extent allowed by federal law and in accordance with the rules of the applicable retirement system.
the highest salary prescribed by law for service in that office on the participant's last day of service.
Upon payment of the refund, the participant's notional cash balance account shall be closed.
(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:
(g) Retirement Annuity.
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.
A participant in the optional cash balance plan may begin collecting a retirement annuity at age 59 1/2, but no earlier than the date of termination of active employment under the applicable retirement system.
(4) For a participant who is a continuing participant under Section 2-117.1 on his or her last day of service:
The amount of the retirement annuity shall be calculated by the retirement system, based on the balance in the cash balance account, the assumption of future investment returns as specified in this subsection, the participant's election to have a lifetime survivor's annuity as specified in this SB0001 Engrossed - 18 - LRB098 05457 JDS 35491 b subsection, the annual increase in retirement annuity as specified in subsection (h), the annual increase in survivor's annuity as specified in subsection (l), and any actuarial assumptions and tables adopted by the board of the retirement system for this purpose.
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.
The calculation shall determine the amount of retirement annuity, on an actuarially equivalent basis, that shall be designed to result in the balance in the participant's account arriving at zero on the date when the last payment of the retirement annuity (or survivor's annuity, if the participant elects to provide for a survivor's annuity pursuant to this subsection) is anticipated to be paid under the relevant actuarial assumptions.
For a participant who first becomes a participant of this SB0001 Enrolled - 23 - LRB098 05457 JDS 35491 b 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:
A retirement annuity or a survivor's annuity provided under this Section shall be a life annuity and shall not expire if the account balance equals zero.
(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.
The annuity payment shall begin on the date specified by the participant submitting a written application, which date shall not be prior to termination of employment or more than one year before the application is received by the board;
Except as otherwise provided below, for a Tier 2 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, for periods of service in a term of office beginning on or after January 1, 2011 and before the effective date of this amendatory Act of the 98th General Assembly, 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 SB0001 Enrolled - 24 - LRB098 05457 JDS 35491 b 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 until there is no longer any such participant who is in service in a term of office that began before the effective date of this amendatory Act of the 98th General Assembly.
Notwithstanding any other provision of this Section, in determining the highest salary for annuity purposes of a Tier 2 participant who is in service in a term of office beginning on or after the effective date of this amendatory Act of the 98th General Assembly, the Tier 2 participant's salary for periods of service in a term of office beginning on or after that effective date shall not exceed the limitation on salary determined from time to time under subsection (b-5) of Section 1-160 of this Code.
(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.
SB0001 Enrolled - 25 - LRB098 05457 JDS 35491 b 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;
97-967, eff.
8-16-12.) (40 ILCS 5/2-119) (from Ch.
108 1/2, par.
2-119) Sec.
2-119.
Retirement annuity - conditions for eligibility.
(a) A participant whose service as a member is terminated, regardless of age or cause, is entitled to a retirement annuity beginning on the date specified by the participant in a written application subject to the following conditions:
SB0001 Enrolled - 26 - LRB098 05457 JDS 35491 b 1.
The date the annuity begins does not precede the date of final termination of service, or is not more than 30 days before the receipt of the application by the board in the case of annuities based on disability or one year before the receipt of the application in the case of annuities based on attained age;
2.
The participant meets one of the following eligibility requirements:
For a participant who first becomes a participant of this System before January 1, 2011 (the effective date of Public Act 96-889):
(A) He or she has attained age 55 and has at least 8 years of service credit;
(B) He or she has attained age 62 and terminated service after July 1, 1971 with at least 4 years of service credit;
or (C) He or she has completed 8 years of service and has become permanently disabled and as a consequence, is unable to perform the duties of his or her office.
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), he or she has attained age 67 and has at least 8 years of service credit.
(a-1) Notwithstanding subsection (a) of this Section, for a Tier 1 participant who begins receiving a retirement annuity under this Section on or after July 1, 2014, the required SB0001 Enrolled - 27 - LRB098 05457 JDS 35491 b retirement age under subsection (a) is increased as follows, based on the Tier 1 participant's age on June 1, 2014:
(1) If he or she is at least age 46 on June 1, 2014, then the required retirement ages under subsection (a) remain unchanged.
(2) If he or she is at least age 45 but less than age 46 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 4 months.
(3) If he or she is at least age 44 but less than age 45 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 8 months.
(4) If he or she is at least age 43 but less than age 44 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 12 months.
(5) If he or she is at least age 42 but less than age 43 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 16 months.
(6) If he or she is at least age 41 but less than age 42 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 20 months.
(7) If he or she is at least age 40 but less than age 41 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 24 months.
(8) If he or she is at least age 39 but less than age 40 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 28 months.
SB0001 Enrolled - 28 - LRB098 05457 JDS 35491 b (9) If he or she is at least age 38 but less than age 39 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 32 months.
(10) If he or she is at least age 37 but less than age 38 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 36 months.
(11) If he or she is at least age 36 but less than age 37 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 40 months.
(12) If he or she is at least age 35 but less than age 36 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 44 months.
(13) If he or she is at least age 34 but less than age 35 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 48 months.
(14) If he or she is at least age 33 but less than age 34 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 52 months.
(15) If he or she is at least age 32 but less than age 33 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 56 months.
(16) If he or she is less than age 32 on June 1, 2014, then the required retirement ages under subsection (a) are increased by 60 months.
Notwithstanding Section 1-103.1, this subsection (a-1) applies without regard to whether or not the Tier 1 participant SB0001 Enrolled - 29 - LRB098 05457 JDS 35491 b is in active service under this Article on or after the effective date of this amendatory Act of the 98th General Assembly.
(a-5) A participant who first becomes a participant of this System on or after January 1, 2011 (the effective date of Public Act 96-889) who has attained age 62 and has at least 8 years of service credit may elect to receive the lower retirement annuity provided in paragraph (c) of Section 2-119.01 of this Code.
(b) A participant shall be considered permanently disabled only if:
(1) disability occurs while in service and is of such a nature as to prevent him or her from reasonably performing the duties of his or her office at the time;
and (2) the board has received a written certificate by at least 2 licensed physicians appointed by the board stating that the member is disabled and that the disability is likely to be permanent.
(Source:
P.A.
96-889, eff.
1-1-11;
96-1490, eff.
1-1-11.) (40 ILCS 5/2-119.1) (from Ch.
108 1/2, par.
2-119.1) Sec.
2-119.1.
Automatic increase in retirement annuity.
(a) Except as otherwise provided in this Section, a A participant who retires after June 30, 1967, and who has not received an initial increase under this Section before the effective date of this amendatory Act of 1991, shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of SB0001 Enrolled - 30 - LRB098 05457 JDS 35491 b each year thereafter, but in no event prior to age 60, have the amount of the originally granted retirement annuity increased as follows:
for each year through 1971, 1 1/2%;
for each year from 1972 through 1979, 2%;
and for 1980 and each year thereafter, 3%.
Annuitants who have received an initial increase under this subsection prior to the effective date of this amendatory Act of 1991 shall continue to receive their annual increases in the same month as the initial increase.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), for a Tier 1 retiree, all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity payable at the time of the increase, including previous increases granted, or (2) $1,000 multiplied by the number of years of creditable service upon which the annuity is based.
Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September;
these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-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 SB0001 Enrolled - 31 - LRB098 05457 JDS 35491 b and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.
The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year.
This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly.
(a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 participant who has not begun to receive a retirement annuity under this Article before July 1, 2014:
(1) the second automatic annual increase payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 50 on the effective date of this amendatory Act;
(2) the second, fourth, and sixth automatic annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 47 but less than age 50 on the effective date of this amendatory Act;
(3) the second, fourth, sixth, and eighth automatic annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 44 but less than SB0001 Enrolled - 32 - LRB098 05457 JDS 35491 b age 47 on the effective date of this amendatory Act;
and (4) the second, fourth, sixth, eighth, and tenth automatic annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is less than age 44 on the effective date of this amendatory Act.
For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly.
(b) Beginning January 1, 1990, for eligible participants who remain in service after attaining 20 years of creditable service, the 3% increases provided under subsection (a) shall begin to accrue on the January 1 next following the date upon which the participant (1) attains age 55, or (2) attains 20 years of creditable service, whichever occurs later, and shall continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1, whichever occurs first, next following the first anniversary of retirement.
For any person who has service credit in the System for the entire period from January 15, 1969 through December 31, 1992, regardless of the date of termination of service, the reference to age 55 in clause (1) of this subsection (b) shall be deemed to mean age 50.
The increases accruing under this subsection (b) after the effective date of this amendatory Act of the 98th General Assembly shall accrue at the rate provided SB0001 Enrolled - 33 - LRB098 05457 JDS 35491 b in subsection (a-1).
This subsection (b) does not apply to any person who first becomes a member of the System after the effective date of this amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Section Article, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by an amount calculated as a percentage of the originally granted retirement annuity, equal to 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the Consumer Price Index for All Urban Consumers for the 12 months ending with the preceding September, as determined by the Public Pension Division of the Department of Insurance and reported to the System by November 1 of each year under subsection (a) of Section 2-108.1, whichever is less.
The changes made to this subsection (b-5) by this amendatory Act of the 98th General Assembly shall apply to increases provided under this subsection on or after the effective date of this amendatory Act without regard to whether service terminated before that effective date.
(c) The foregoing provisions relating to automatic increases are not applicable to a participant who retires SB0001 Enrolled - 34 - LRB098 05457 JDS 35491 b before having made contributions (at the rate prescribed in Section 2-126) for automatic increases for less than the equivalent of one full year.
However, in order to be eligible for the automatic increases, such a participant may make arrangements to pay to the system the amount required to bring the total contributions for the automatic increase to the equivalent of one year's contributions based upon his or her last salary.
(d) A participant who terminated service prior to July 1, 1967, with at least 14 years of service is entitled to an increase in retirement annuity beginning January, 1976, and to additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally granted retirement annuity multiplied by the number of full years that the annuitant was in receipt of such annuity prior to January 1, 1972, plus 2% of the originally granted retirement annuity for each year after that date.
The subsequent annual increases shall be at the rate of 2% of the originally granted retirement annuity for each year through 1979 and at the rate of 3% for 1980 and thereafter.
The increases provided under this subsection (d) on or after the effective date of this amendatory Act of the 98th General Assembly shall be at the rate provided in subsection (a-1), notwithstanding that service terminated before that effective date.
(e) Except as may be provided in subsection (b-5), SB0001 Enrolled - 35 - LRB098 05457 JDS 35491 b beginning Beginning January 1, 1990, all automatic annual increases payable under this Section shall be calculated as a percentage of the total annuity payable at the time of the increase, including previous increases granted under this Article.
(Source:
P.A.
96-889, eff.
1-1-11;
96-1490, eff.
1-1-11.) (40 ILCS 5/2-124) (from Ch.
108 1/2, par.
2-124) Sec.
2-124.
Contributions by State.
(a) The State shall make contributions to the System by appropriations of amounts which, together with the contributions of participants, interest earned on investments, and other income will meet the cost of maintaining and administering the System on a 100% 90% funded basis in accordance with actuarial recommendations by the end of State fiscal year 2044.
(b) The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the prescribed rate of interest, using the formula in subsection (c).
(c) For State fiscal years 2015 through 2044, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be equal to the sum of (1) the State's portion of the projected normal cost for that fiscal year, plus (2) an amount sufficient SB0001 Enrolled - 36 - LRB098 05457 JDS 35491 b to bring the total assets of the System up to 100% of the total actuarial liabilities of the System by the end of State fiscal year 2044.
In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2044 and shall be determined under the projected unit cost method for fiscal year 2015 and under the entry age normal actuarial cost method for fiscal years 2016 through 2044.
For State fiscal years 2012 through 2014 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045.
In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments so that by State fiscal year 2011, the State is contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2006 is SB0001 Enrolled - 37 - LRB098 05457 JDS 35491 b $4,157,000.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2007 is $5,220,300.
For each of State fiscal years 2008 through 2009, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $10,454,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 pursuant to Section 2-134 and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of SB0001 Enrolled - 38 - LRB098 05457 JDS 35491 b bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2045, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 100% of the total actuarial liabilities of the System.
Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 100% 90%.
A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the SB0001 Enrolled - 39 - LRB098 05457 JDS 35491 b required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter through State fiscal year 2014, as calculated under this Section and certified under Section 2-134, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
(d) For purposes of determining the required State contribution to the System, the value of the System's assets SB0001 Enrolled - 40 - LRB098 05457 JDS 35491 b shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date.
In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year.
(e) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return.
(Source:
P.A.
96-43, eff.
7-15-09;
96-1497, eff.
1-14-11;
96-1511, eff.
1-27-11;
96-1554, eff.
3-18-11;
97-813, eff.
7-13-12.) (40 ILCS 5/2-125) (from Ch.
108 1/2, par.
2-125) Sec.
2-125.
Obligations of State;
funding guarantee.
(a) The payment of (1) the required State contributions, (2) all benefits granted under this system and (3) all expenses of administration and operation are obligations of the State to the extent specified in this Article.
(b) All income, interest and dividends derived from deposits and investments shall be credited to the account of the system in the State Treasury and used to pay benefits under SB0001 Enrolled - 41 - LRB098 05457 JDS 35491 b this Article.
(c) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law.
Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment.
If the System submits a voucher for contributions required under Section 2-124 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment.
A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly.
No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher.
This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of SB0001 Enrolled - 42 - LRB098 05457 JDS 35491 b Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 2-124.
(d) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be.
If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment.
A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly.
No earlier than the 16th day after the System SB0001 Enrolled - 43 - LRB098 05457 JDS 35491 b files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be.
This subsection (d) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act.
The obligations created by this subsection (d) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met.
(e) Any payments and transfers required to be made by the State pursuant to subsection (c) or (d) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity.
SB0001 Enrolled - 44 - LRB098 05457 JDS 35491 b Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.
(Source:
P.A.
83-1440.) (40 ILCS 5/2-126) (from Ch.
108 1/2, par.
2-126) Sec.
2-126.
Contributions by participants.
(a) Each participant shall contribute toward the cost of his or her retirement annuity a percentage of each payment of salary received by him or her for service as a member as follows:
for service between October 31, 1947 and January 1, 1959, 5%;
for service between January 1, 1959 and June 30, 1969, 6%;
for service between July 1, 1969 and January 10, 1973, 6 1/2%;
for service after January 10, 1973, 7%;
for service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and from July 1, 1971, each female participant shall contribute towards the cost of the survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity beneficiary may elect to cease making contributions for survivor's annuity under this subsection.
A survivor's annuity shall not be payable upon the death of a person who has made this election, unless prior to that death the election has been SB0001 Enrolled - 45 - LRB098 05457 JDS 35491 b revoked and the amount of the contributions that would have been paid under this subsection in the absence of the election is paid to the System, together with interest at the rate of 4% per year from the date the contributions would have been made to the date of payment.
(c) Beginning July 1, 1967 and, in the case of Tier 1 participants, ending on June 30, 2014, each participant shall contribute 1% of salary towards the cost of automatic increase in annuity provided in Section 2-119.1.
These contributions shall be made concurrently with contributions for retirement annuity purposes.
(d) In addition, each participant serving as an officer of the General Assembly shall contribute, for the same purposes and at the same rates as are required of a regular participant, on each additional payment received as an officer.
If the participant serves as an officer for at least 2 but less than 4 years, he or she shall contribute an amount equal to the amount that would have been contributed had the participant served as an officer for 4 years.
Persons who serve as officers in the 87th General Assembly but cannot receive the additional payment to officers because of the ban on increases in salary during their terms may nonetheless make contributions based on those additional payments for the purpose of having the additional payments included in their highest salary for annuity purposes;
however, persons electing to make these additional contributions must also pay an amount representing the SB0001 Enrolled - 46 - LRB098 05457 JDS 35491 b corresponding employer contributions, as calculated by the System.
(e) Notwithstanding any other provision of this Article, the required contribution of a participant who first becomes a participant on or after January 1, 2011 shall not exceed the contribution that would be due under this Article if that participant's highest salary for annuity purposes were $106,800, plus any increases in that amount under Section 2-108.1.
(Source:
P.A.
96-1490, eff.
1-1-11.) (40 ILCS 5/2-126.5 new) Sec.
2-126.5.
Use of contributions for health care subsidies.
The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(40 ILCS 5/2-134) (from Ch.
108 1/2, par.
2-134) Sec.
2-134.
To certify required State contributions and submit vouchers.
(a) The Board shall certify to the Governor on or before December 15 of each year until December 15, 2011 the amount of the required State contribution to the System for the next fiscal year and shall specifically identify the System's projected State normal cost for that fiscal year.
The certification shall include a copy of the actuarial SB0001 Enrolled - 47 - LRB098 05457 JDS 35491 b recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year.
On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based.
On or before January 1 of each year beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions.
On or before January 15, 2013 and every January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year.
The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.
On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking SB0001 Enrolled - 48 - LRB098 05457 JDS 35491 b into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly.
On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.
(a-5) For purposes of Section (c-5) of Section 20 of the Budget Stabilization Act, on or before November 1 of each year beginning November 1, 2014, the Board shall determine the amount of the State contribution to the System that would have been required for the next fiscal year if this amendatory Act of the 98th General Assembly had not taken effect, using the best and most recent available data but based on the law in effect on May 31, 2014.
The Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification, along with the relevant law, actuarial assumptions, calculations, and data upon which that certification is based.
On or before January 1, 2015 and every SB0001 Enrolled - 49 - LRB098 05457 JDS 35491 b January 1 thereafter, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification.
On or before January 15, 2015 and every January 1 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the State contribution to the System that would have been required for the next fiscal year if this amendatory Act of the 98th General Assembly had not taken effect, using the best and most recent available data but based on the law in effect on May 31, 2014.
The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the impact of not following the State Actuary's recommended changes.
(b) Beginning in State fiscal year 1996, on or as soon as possible after the 15th day of each month the Board shall submit vouchers for payment of State contributions to the System, in a total monthly amount of one-twelfth of the required annual State contribution certified under subsection (a).
From the effective date of this amendatory Act of the 93rd General Assembly through June 30, 2004, the Board shall not submit vouchers for the remainder of fiscal year 2004 in excess of the fiscal year 2004 certified contribution amount determined under this Section after taking into consideration the transfer to the System under subsection (d) of Section SB0001 Enrolled - 50 - LRB098 05457 JDS 35491 b 6z-61 of the State Finance Act.
These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this Section, the difference shall be paid from the General Revenue Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act.
(c) The full amount of any annual appropriation for the System for State fiscal year 1995 shall be transferred and made available to the System at the beginning of that fiscal year at the request of the Board.
Any excess funds remaining at the end of any fiscal year from appropriations shall be retained by the System as a general reserve to meet the System's accrued liabilities.
(Source:
P.A.
96-1497, eff.
1-14-11;
96-1511, eff.
1-27-11;
97-694, eff.
6-18-12.) (40 ILCS 5/2-162) Sec.
2-162.
Application and expiration of new benefit increases.
(a) As used in this Section, "new benefit increase" means SB0001 Enrolled - 51 - LRB098 05457 JDS 35491 b an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after the effective date of this amendatory Act of the 94th General Assembly.
"New benefit increase", however, does not include any benefit increase resulting from the changes made to this Article by this amendatory Act of the 98th General Assembly.
(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection.
The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance Financial and Professional Regulation.
A new benefit increase created by a Public Act that does not include the additional funding required under this subsection SB0001 Enrolled - 52 - LRB098 05457 JDS 35491 b is null and void.
If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c).
This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.
(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including without limitation a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source:
P.A.
94-4, eff.
6-1-05.) (40 ILCS 5/2-165 new) SB0001 Enrolled - 53 - LRB098 05457 JDS 35491 b Sec.
2-165.
Defined contribution plan.
(a) By July 1, 2015, the System shall prepare and implement a voluntary defined contribution plan for up to 5% of eligible active Tier 1 participants.
The System shall determine the 5% cap by the number of active Tier 1 participants on the effective date of this Section.
The defined contribution plan developed under this Section shall be a plan that aggregates employer and employee contributions in individual participant accounts which, after meeting any other requirements, are used for payouts after retirement in accordance with this Section and any other applicable laws.
As used in this Section, "defined benefit plan" means the retirement plan available under this Article to Tier 1 participants who have not made the election authorized under this Section.
(1) Under the defined contribution plan, an active Tier 1 participant of this System could elect to cease accruing benefits in the defined benefit plan under this Article and begin accruing benefits for future service in the defined contribution plan.
Service credit under the defined contribution plan may be used for determining retirement eligibility under the defined benefit plan.
(2) Participants in the defined contribution plan shall pay employee contributions at the same rate as Tier 1 participants in this System who do not participate in the defined contribution plan.
SB0001 Enrolled - 54 - LRB098 05457 JDS 35491 b (3) State contributions shall be paid into the accounts of all participants in the defined contribution plan at a uniform rate, expressed as a percentage of compensation and determined for each year.
This rate shall be no higher than the employer's normal cost for Tier 1 participants in the defined benefit plan for that year, as determined by the System and expressed as a percentage of compensation, and shall be no lower than 3% of compensation.
The State shall adjust this rate annually.
(4) The defined contribution plan shall require 5 years of participation in the defined contribution plan before vesting in State contributions.
If the participant fails to vest in them, the State contributions, and the earnings thereon, shall be forfeited.
(5) The defined contribution plan may provide for participants in the plan to be eligible for defined disability benefits.
If it does, the System shall reduce the employee contributions credited to the participant's defined contribution plan account by an amount determined by the System to cover the cost of offering such benefits.
(6) The defined contribution plan shall provide a variety of options for investments.
These options shall include investments handled by the Illinois State Board of Investment as well as private sector investment options.
(7) The defined contribution plan shall provide a variety of options for payouts to retirees and their SB0001 Enrolled - 55 - LRB098 05457 JDS 35491 b survivors.
(8) To the extent authorized under federal law and as authorized by the System, the plan shall allow former participants in the plan to transfer or roll over employee and vested State contributions, and the earnings thereon, into other qualified retirement plans.
(9) The System shall reduce the employee contributions credited to the participant's defined contribution plan account by an amount determined by the System to cover the cost of offering these benefits and any applicable administrative fees.
(b) Only persons who are active Tier 1 participants of the System on the effective date of this Section are eligible to participate in the defined contribution plan.
Participation in the defined contribution plan shall be limited to the first 5% of eligible persons who elect to participate.
The election to participate in the defined contribution plan is voluntary and irrevocable.
(c) An eligible active Tier 1 participant may irrevocably elect to participate in the defined contribution plan by filing with the System a written application to participate that is received by the System prior to its determination that 5% of eligible persons have elected to participate in the defined contribution plan.
When the System first determines that 5% of eligible persons have elected to participate in the defined contribution SB0001 Enrolled - 56 - LRB098 05457 JDS 35491 b plan, the System shall provide notice to previously eligible employees that the plan is no longer available and shall cease accepting applications to participate.
(d) The System shall make a good faith effort to contact each active Tier 1 participant who is eligible to participate in the defined contribution plan.
The System shall mail information describing the option to join the defined contribution plan to each of these employees to his or her last known address on file with the System.
If the employee is not responsive to other means of contact, it is sufficient for the System to publish the details of the option on its website.
Upon request for further information describing the option, the System shall provide employees with information from the System before exercising the option to join the plan, including information on the impact to their vested benefits or non-vested service.
The individual consultation shall include projections of the participant's defined benefits at retirement or earlier termination of service and the value of the participant's account at retirement or earlier termination of service.
The System shall not provide advice or counseling with respect to whether the employee should exercise the option.
The System shall inform Tier 1 participants who are eligible to participate in the defined contribution plan that they may also wish to obtain information and counsel relating to their option from any other available source, including but not limited to labor organizations, private counsel, and SB0001 Enrolled - 57 - LRB098 05457 JDS 35491 b financial advisors.
(e) In no event shall the System, its staff, its authorized representatives, or the Board be liable for any information given to an employee under this Section.
The System may coordinate with the Illinois Department of Central Management Services and other retirement systems administering a defined contribution plan in accordance with this amendatory Act of the 98th General Assembly to provide information concerning the impact of the option set forth in this Section.
(f) Notwithstanding any other provision of this Section, no person shall begin participating in the defined contribution plan until it has attained qualified plan status and received all necessary approvals from the U.S.
Internal Revenue Service.
(g) The System shall report on its progress under this Section, including the available details of the defined contribution plan and the System's plans for informing eligible Tier 1 participants about the plan, to the Governor and the General Assembly on or before January 15, 2015.
(h) The Illinois State Board of Investments shall be the plan sponsor for the defined contribution plan established under this Section.
(i) The intent of this amendatory Act of the 98th General Assembly is to ensure that the State's normal cost of participation in the defined contribution plan is similar, and if possible equal, to the State's normal cost of participation in the defined benefit plan, unless a lower State's normal cost SB0001 Enrolled - 58 - LRB098 05457 JDS 35491 b is necessary to ensure cost neutrality.
(40 ILCS 5/2-166 new) Sec.
2-166.
Defined contribution plan;
termination.
If the defined contribution plan is terminated or becomes inoperative pursuant to law, then each participant in the plan shall automatically be deemed to have been a contributing Tier 1 participant in the System's defined benefit plan during the time in which he or she participated in the defined contribution plan, and for that purpose the System shall be entitled to recover the amounts in the participant's defined contribution accounts.
(40 ILCS 5/7-109) (from Ch.
108 1/2, par.
7-109) Sec.
7-109.
Employee.
(1) "Employee" means any person who:
(a) 1.
Receives earnings as payment for the performance of personal services or official duties out of the general fund of a municipality, or out of any special fund or funds controlled by a municipality, or by an instrumentality thereof, or a participating instrumentality, including, in counties, the fees or earnings of any county fee office;
and 2.
Under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee with a municipality, or any SB0001 Enrolled - 59 - LRB098 05457 JDS 35491 b instrumentality thereof, or a participating instrumentality, including aldermen, county supervisors and other persons (excepting those employed as independent contractors) who are paid compensation, fees, allowances or other emolument for official duties, and, in counties, the several county fee offices.
(b) Serves as a township treasurer appointed under the School Code, as heretofore or hereafter amended, and who receives for such services regular compensation as distinguished from per diem compensation, and any regular employee in the office of any township treasurer whether or not his earnings are paid from the income of the permanent township fund or from funds subject to distribution to the several school districts and parts of school districts as provided in the School Code, or from both such sources;
or is the chief executive officer, chief educational officer, chief fiscal officer, or other employee of a Financial Oversight Panel established pursuant to Article 1H of the School Code, other than a superintendent or certified school business official, except that such person shall not be treated as an employee under this Section if that person has negotiated with the Financial Oversight Panel, in conjunction with the school district, a contractual agreement for exclusion from this Section.
(c) Holds an elective office in a municipality, SB0001 Enrolled - 60 - LRB098 05457 JDS 35491 b instrumentality thereof or participating instrumentality.
(2) "Employee" does not include persons who:
(a) Are eligible for inclusion under any of the following laws:
1.
"An Act in relation to an Illinois State Teachers' Pension and Retirement Fund", approved May 27, 1915, as amended;
2.
Articles 15 and 16 of this Code.
However, such persons shall be included as employees to the extent of earnings that are not eligible for inclusion under the foregoing laws for services not of an instructional nature of any kind.
However, any member of the armed forces who is employed as a teacher of subjects in the Reserve Officers Training Corps of any school and who is not certified under the law governing the certification of teachers shall be included as an employee.
(b) Are designated by the governing body of a municipality in which a pension fund is required by law to be established for policemen or firemen, respectively, as performing police or fire protection duties, except that when such persons are the heads of the police or fire department and are not eligible to be included within any such pension fund, they shall be included within this Article;
provided, that such persons shall not be excluded to the extent of concurrent service and earnings not SB0001 Enrolled - 61 - LRB098 05457 JDS 35491 b designated as being for police or fire protection duties.
However, (i) any head of a police department who was a participant under this Article immediately before October 1, 1977 and did not elect, under Section 3-109 of this Act, to participate in a police pension fund shall be an "employee", and (ii) any chief of police who elects to participate in this Fund under Section 3-109.1 of this Code, regardless of whether such person continues to be employed as chief of police or is employed in some other rank or capacity within the police department, shall be an employee under this Article for so long as such person is employed to perform police duties by a participating municipality and has not lawfully rescinded that election.
(c) After August 26, 2011 (the effective date of Public Act 97-609), are contributors to or eligible to contribute to a Taft-Hartley pension plan established on or before June 1, 2011 and are employees of a theatre, arena, or convention center that is located in a municipality located in a county with a population greater than 5,000,000, and to which the participating municipality is required to contribute as the person's employer based on earnings from the municipality.
Nothing in this paragraph shall affect service credit or creditable service for any period of service prior to August 26, 2011, and this paragraph shall not apply to individuals who are participating in the Fund prior to August 26, 2011.
SB0001 Enrolled - 62 - LRB098 05457 JDS 35491 b (d) Become an employee of any of the following participating instrumentalities on or after the effective date of this amendatory Act of the 98th General Assembly:
the Illinois Municipal League;
the Illinois Association of Park Districts;
the Illinois Supervisors, County Commissioners and Superintendents of Highways Association;
an association, or not-for-profit corporation, membership in which is authorized under Section 85-15 of the Township Code;
the United Counties Council;
or the Will County Governmental League.
(3) All persons, including, without limitation, public defenders and probation officers, who receive earnings from general or special funds of a county for performance of personal services or official duties within the territorial limits of the county, are employees of the county (unless excluded by subsection (2) of this Section) notwithstanding that they may be appointed by and are subject to the direction of a person or persons other than a county board or a county officer.
It is hereby established that an employer-employee relationship under the usual common law rules exists between such employees and the county paying their salaries by reason of the fact that the county boards fix their rates of compensation, appropriate funds for payment of their earnings and otherwise exercise control over them.
This finding and this amendatory Act shall apply to all such employees from the date of appointment whether such date is prior to or after the SB0001 Enrolled - 63 - LRB098 05457 JDS 35491 b effective date of this amendatory Act and is intended to clarify existing law pertaining to their status as participating employees in the Fund.
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Action History

  1. Public Act . . . . . . . . . 98-0599

  2. Effective Date June 1, 2014

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. Conference Committee No. 1 Report - Both Houses Adopted

  7. Conference Committee No. 1 Report Adopted by the House 062-053-001

  8. Conference Committee No. 1 Report Adopted by the Senate 030-024-003

  9. Conference Committee No. 1 Report Be Approved for Consideration Assignments

  10. Legislation Considered in Special Session No. 1

  11. Conference Committee No. 1 Report Referred to Assignments

  12. Conference Committee No. 1 Report Submitted in Senate by Sen. Kwame Raoul

  13. Legislation Considered in Special Session No. 1

  14. Conference Committee No. 1 Recommends Be Adopted Rules Committee; Rep. Michael J. Madigan; 005-000-000

  15. Conference Committee No. 1 Report Referred to Rules Committee

  16. Conference Committee No. 1 Report Submitted in House by Rep. Michael J. Madigan

  17. Added as Chief Co-Sponsor Sen. Daniel Biss

  18. Chief Sponsor Changed to Sen. Kwame Raoul

  19. 1st Conference Committee on Senate Bill 1 - Committee Posting - 98th General Assembly will hold a hearing on Tuesday, December 3, 2013 @ 8:30 a.m. in Room 212, Capitol Building, Springfield, Illinois - Subject Matter - Proposed Conference Committee Report # 1

  20. Alternate Chief Co-Sponsor Changed to Rep. Jim Durkin

  21. 1st Conference Committee on Senate Bill 1 - Committee Posting - 98th General Assembly will hold a hearing on Monday, July 8, 2013, @ 3:00 p.m. in Room 409 in the Capitol Building, Springfield, Illinois - Subject Matter - Pension Legislation

  22. 1st Conference Committee on Senate Bill 1 - Committee Posting - 98th General Assembly will hold a hearing on Wednesday, July 3, 2013, @ 9:00 a.m. in Room C600 in the Bilandic Building, Chicago, Illinois - Subject Matter - Pension Legislation

  23. 1st Conference Committee on Senate Bill 1 - Committee Posting - 98th General Assembly will hold a hearing on Thursday, June 27, 2013, @ 11:00 a.m. in Room C600 in the Bilandic Building, Chicago, Illinois - Subject Matter - Pension Legislation

  24. Conference Committee No. 1 Senate Appointed Sen. Kwame Raoul; Sen. Linda Holmes; Sen. Daniel Biss; Sen. William E. Brady; Sen. Matt Murphy

  25. Conference Committee No. 1 Senate Accede Request

  26. Conference Committee No. 1 House Appointed Rep. Elaine Nekritz; Rep. Michael J. Zalewski; Rep. Arthur Turner; Rep. Darlene J. Senger; Rep. Jil Tracy

  27. House Requests Conference Committee No. 1

  28. House Refuses to Recede

  29. House Floor Amendment No. 3 Motion Prevailed

  30. House Committee Amendment No. 1 Motion Prevailed

  31. House Floor Amendment No. 3 Motion Refuse to Recede Rep. Michael J. Madigan

  32. House Committee Amendment No. 1 Motion Refuse to Recede Rep. Michael J. Madigan

  33. Placed on Calendar Order of Non-Concurrence House Amendment(s) 1, 3

  34. House Floor Amendment No. 3 Senate Non-Concurs 045-011-000

  35. House Committee Amendment No. 1 Senate Non-Concurs 045-011-000

  36. House Floor Amendment No. 3 Motion to Non-Concur Filed with Secretary Sen. John J. Cullerton

  37. House Committee Amendment No. 1 Motion to Non-Concur Filed with Secretary Sen. John J. Cullerton

  38. House Floor Amendment No. 3 Motion to Concur Lost 016-042-000

  39. House Committee Amendment No. 1 Motion to Concur Lost 016-042-000

  40. House Floor Amendment No. 3 Motion to Concur Be Approved for Consideration Assignments

  41. House Committee Amendment No. 1 Motion to Concur Be Approved for Consideration Assignments

  42. House Floor Amendment No. 3 Motion to Concur Referred to Assignments

  43. House Committee Amendment No. 1 Motion to Concur Referred to Assignments

  44. House Floor Amendment No. 3 Motion to Concur Assignments Referred to Executive

  45. House Committee Amendment No. 1 Motion to Concur Assignments Referred to Executive

  46. House Floor Amendment No. 3 Motion to Concur Referred to Assignments

  47. House Floor Amendment No. 3 Motion to Concur Filed with Secretary Sen. John J. Cullerton

  48. House Committee Amendment No. 1 Motion to Concur Referred to Assignments

  49. House Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. John J. Cullerton

  50. Added as Chief Co-Sponsor Sen. Christine Radogno

  51. Placed on Calendar Order of Concurrence House Amendment(s) 1, 3 - May 7, 2013

  52. Secretary's Desk - Concurrence House Amendment(s) 1, 3

  53. Motion to Reconsider Vote - Tabled

  54. (M2) Moved to Reconsider the Vote, by which the bill passed Rep. Michael J. Madigan

  55. Third Reading - Short Debate - Passed 062-051-002

  56. House Floor Amendment No. 2 Balanced Budget Note Filed as Amended

  57. House Floor Amendment No. 3 Fiscal Note Filed as Amended

  58. House Floor Amendment No. 3 State Debt Impact Note Filed as Amended

  59. House Committee Amendment No. 1 State Debt Impact Note Filed as Amended

  60. House Floor Amendment No. 3 Home Rule Note Filed as Amended

  61. House Floor Amendment No. 3 State Mandates Fiscal Note Filed as Amended

  62. House Floor Amendment No. 3 Land Conveyance Appraisal Note Filed as Amended

  63. House Floor Amendment No. 2 Land Conveyance Appraisal Note Filed as Amended

  64. Placed on Calendar Order of 3rd Reading - Short Debate

  65. House Floor Amendment No. 3 Adopted

  66. (M1) Motion to Suspend Rule 15(d) - Prevailed

  67. (M1) Moved to Suspend Rule 15(d)

  68. House Floor Amendment No. 2 Withdrawn by Rep. Michael J. Madigan

  69. House Floor Amendment No. 3 Balanced Budget Note Filed as Amended

  70. House Floor Amendment No. 3 Judicial Note Filed as Amended

  71. House Floor Amendment No. 3 Correctional Note Filed as Amended

  72. House Floor Amendment No. 3 Housing Affordability Impact Note Filed as Amended

  73. House Floor Amendment No. 3 Recommends Be Adopted Rules Committee; 005-000-000

  74. House Floor Amendment No. 3 Referred to Rules Committee

  75. House Floor Amendment No. 3 Filed with Clerk by Rep. Michael J. Madigan

  76. House Committee Amendment No. 1 Land Conveyance Appraisal Note Filed as Amended

  77. House Floor Amendment No. 2 Judicial Note Filed as Amended

  78. House Floor Amendment No. 2 Pension Note Filed as Amended

  79. House Committee Amendment No. 1 Pension Note Filed as Amended

  80. House Floor Amendment No. 2 Housing Affordability Impact Note Filed as Amended

  81. House Floor Amendment No. 2 State Mandates Fiscal Note Filed as Amended

  82. House Floor Amendment No. 2 Home Rule Note Filed as Amended

  83. House Floor Amendment No. 2 State Debt Impact Note Filed as Amended

  84. House Committee Amendment No. 1 State Debt Impact Note Filed as Amended

  85. House Floor Amendment No. 2 Fiscal Note Filed as Amended

  86. House Floor Amendment No. 2 Correctional Note Filed as Amended

  87. House Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 004-000-000

  88. House Floor Amendment No. 2 Referred to Rules Committee

  89. House Floor Amendment No. 2 Filed with Clerk by Rep. Michael J. Madigan

  90. Held on Calendar Order of Second Reading - Short Debate

  91. Second Reading - Short Debate

  92. House Committee Amendment No. 1 Pension Note Filed as Amended

  93. Placed on Calendar 2nd Reading - Short Debate

  94. Do Pass as Amended / Short Debate Personnel and Pensions Committee; 009-001-000

  95. House Committee Amendment No. 1 Adopted in Personnel and Pensions Committee; by Voice Vote

  96. House Committee Amendment No. 1 Housing Affordability Impact Note Filed as Amended

  97. Added Alternate Chief Co-Sponsor Rep. Darlene J. Senger

  98. Added Alternate Chief Co-Sponsor Rep. Elaine Nekritz

  99. Added Alternate Chief Co-Sponsor Rep. Tom Cross

  100. House Committee Amendment No. 1 Fiscal Note Filed as Amended

  101. House Committee Amendment No. 1 Home Rule Note Filed as Amended

  102. House Committee Amendment No. 1 State Mandates Fiscal Note Filed as Amended

  103. House Committee Amendment No. 1 Balanced Budget Note Filed as Amended

  104. House Committee Amendment No. 1 State Debt Impact Note Filed as Amended

  105. House Committee Amendment No. 1 Judicial Note Filed as Amended

  106. House Committee Amendment No. 1 Correctional Note Filed as Amended

  107. House Committee Amendment No. 1 Rules Refers to Personnel and Pensions Committee

  108. House Committee Amendment No. 1 Referred to Rules Committee

  109. House Committee Amendment No. 1 Filed with Clerk by Rep. Michael J. Madigan

  110. Assigned to Personnel and Pensions Committee

  111. Referred to Rules Committee

  112. First Reading

  113. Chief House Sponsor Rep. Michael J. Madigan

  114. Arrived in House

  115. Third Reading - Passed; 030-022-002

  116. Placed on Calendar - Consideration Postponed

  117. Third Reading - Consideration Postponed

  118. Placed on Calendar Order of 3rd Reading

  119. Senate Floor Amendment No. 3 Adopted; J. Cullerton

  120. Recalled to Second Reading

  121. Senate Floor Amendment No. 3 Be Approved for Consideration Assignments

  122. Senate Floor Amendment No. 3 Referred to Assignments

  123. Senate Floor Amendment No. 3 Filed with Secretary by Sen. John J. Cullerton

  124. Placed on Calendar Order of 3rd Reading March 19, 2013

  125. Second Reading

  126. Placed on Calendar Order of 2nd Reading March 14, 2013

  127. Do Pass as Amended Executive; 011-003-000

  128. Senate Committee Amendment No. 2 Adopted

  129. Senate Committee Amendment No. 1 Adopted

  130. Senate Committee Amendment No. 2 Assignments Refers to Executive

  131. Senate Committee Amendment No. 1 Assignments Refers to Executive

  132. Senate Committee Amendment No. 2 Referred to Assignments

  133. Senate Committee Amendment No. 2 Filed with Secretary by Sen. John J. Cullerton

  134. Senate Committee Amendment No. 1 Referred to Assignments

  135. Senate Committee Amendment No. 1 Filed with Secretary by Sen. John J. Cullerton

  136. Postponed - Executive

  137. Postponed - Executive

  138. Postponed - Executive

  139. Postponed - Executive

  140. Assigned to Executive

  141. Referred to Assignments

  142. First Reading

  143. Filed with Secretary by Sen. John J. Cullerton

Sponsors

  • Kwame Raoul · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on · 38 voted No

Sponsors (0)

None.

Co-sponsors (1)

  • Kwame Raoul

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Conference Committee Report

Passed 62 Yea · 53 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 483501
Democrat 131102
Republican 1700
Total 625303
% of votes cast 53%45%0%3%
How each member voted (118)
Member Party Vote
Lang — Yea
Acevedo — Yea
Anthony — Yea
Arroyo — Yea
Beiser — Nay
Bellock — Yea
Berrios — Nay
Mautino — Nay
Bost — Nay
Brauer — Nay
Brown — Nay
McAsey — Yea
Franks — Nay
Golar — Yea
Hatcher — Yea
Jackson — Nay
Jakobsson — Nay
Jefferson — Nay
Leitch — Yea
McAuliffe — Yea
Nekritz — Yea
Senger — Yea
Sente — Yea
Soto — Yea
Tabares — Yea
Thapedi — Yea
Turner — Yea
Verschoore — Yea
Bradley — Yea
Burke, Daniel — Yea
Sullivan — Yea
Burke, Kelly — Yea
Mitchell, Christian — Yea
Harris, Greg — Yea
Hernandez — Yea
Conroy — Yea
Drury — Yea
Dunkin — Yea
Durkin — Yea
Farnham — Yea
Flowers — Yea
Wheeler — Yea
Kosel — Not Voting
Williams — Yea
Davis, Monique — Yea
Jones — Yea
Madigan — Yea
McSweeney — Nay
Moffitt — Nay
Brady — Nay
Mitchell, Bill — Nay
Smiddy — Nay
Sommer — Nay
Stewart — Nay
Tryon — Nay
Harris, David — Nay
Unes — Nay
Willis — Yea
Yingling — Yea
Zalewski — Yea
Cavaletto — Nay
Cloonen — Nay
Costello — Nay
Cross — Nay
Currie — Yea
D'Amico — Yea
Demmer — Yea
Fortner — Nay
Harms — Nay
Hays — Nay
Hurley — Yea
Ives — Nay
Kay — Nay
Osmond — Yea
Phelps — Nay
Pihos — Nay
Poe — Nay
Pritchard — Nay
Reboletti — Yea
Reis — Nay
Riley — Nay
Sandack — Yea
Schmitz — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Nay
Camille Y. Lilly Democrat Nay
Elgie R. Sims, Jr. Democrat Nay
Emanuel "Chris" Welch Democrat Yea
Fred Crespo Democrat Yea
Jaime M. Andrade, Jr. Democrat Yea
Jay Hoffman Democrat Not Voting
Jehan Gordon-Booth Democrat Not Voting
Julie A. Morrison Democrat Nay
Kelly M. Cassidy Democrat Yea
La Shawn K. Ford Democrat Nay
Laura Fine Democrat Yea
Lawrence "Larry" Walsh, Jr. Democrat Yea
Marcus C. Evans, Jr. Democrat Yea
Martin J. Moylan Democrat Yea
Michelle Mussman Democrat Yea
Natalie A. Manley Democrat Yea
Nicholas K. Smith Democrat Nay
Rita Mayfield Democrat Nay
Robert "Bob" Rita Democrat Nay
Robert F. Martwick Democrat Nay
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
Stephanie A. Kifowit Democrat Yea
Sue Scherer Democrat Nay
William "Will" Davis Democrat Nay
Brad Halbrook Republican Nay
Charles Meier Republican Nay
Christopher "C.D." Davidsmeyer Republican Nay
Jil Tracy Republican Yea
Joe C. Sosnowski Republican Nay
John M. Cabello Republican Nay
Norine K. Hammond Republican Nay
Wayne A. Rosenthal Republican Nay

Official roll call →

Motion

Passed 45 Yea · 11 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 32902
Democrat 11101
Republican 2100
Total 451103
% of votes cast 76%19%0%5%
How each member voted (59)
Member Party Vote
Manar — Yea
Althoff — Nay
Martinez — Yea
Barickman — Yea
Bertino-Tarrant — Yea
Biss — Yea
Bivins — Yea
Bush — Yea
Hutchinson — Yea
Noland — Yea
Link — Yea
Luechtefeld — Yea
Harris — Yea
Forby — Yea
Frerichs — Yea
Haine — Yea
Kotowski — Yea
LaHood — Nay
Landek — Yea
McGuire — Yea
Sullivan — Yea
Jacobs — Yea
Cullerton, T. — Yea
Cullerton — Yea
McCann — Yea
Brady — Nay
McCarter — Not Voting
McConnaughay — Nay
Mulroe — Yea
Muñoz — Yea
Silverstein — Yea
Steans — Yea
Trotter — Yea
Clayborne — Not Voting
Connelly — Nay
Dillard — Nay
Duffy — Nay
Oberweis — Nay
Radogno — Nay
Raoul — Yea
Righter — Yea
Sandoval — Yea
Van Pelt — Yea
Bill Cunningham Democrat Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Julie A. Morrison Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Nay
Linda Holmes Democrat Yea
Mattie Hunter Democrat Not Voting
Michael E. Hastings Democrat Yea
Steve Stadelman Democrat Yea
Chapin Rose Republican Yea
Dave Syverson Republican Yea
Sue Rezin Republican Nay

Official roll call →

Motion, Amendment 3

Passed 45 Yea · 11 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 32902
Democrat 11101
Republican 2100
Total 451103
% of votes cast 76%19%0%5%
How each member voted (59)
Member Party Vote
LaHood — Nay
Link — Yea
Manar — Yea
Althoff — Nay
Martinez — Yea
Barickman — Yea
Bertino-Tarrant — Yea
Biss — Yea
Bivins — Yea
Bush — Yea
Hutchinson — Yea
Kotowski — Yea
Landek — Yea
Luechtefeld — Yea
McCann — Yea
McCarter — Not Voting
McConnaughay — Nay
Mulroe — Yea
Muñoz — Yea
Oberweis — Nay
Silverstein — Yea
Harris — Yea
Steans — Yea
Trotter — Yea
McGuire — Yea
Sullivan — Yea
Jacobs — Yea
Cullerton, T. — Yea
Cullerton — Yea
Brady — Nay
Clayborne — Not Voting
Connelly — Nay
Dillard — Nay
Duffy — Nay
Forby — Yea
Frerichs — Yea
Haine — Yea
Noland — Yea
Radogno — Nay
Raoul — Yea
Righter — Yea
Sandoval — Yea
Van Pelt — Yea
Bill Cunningham Democrat Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Julie A. Morrison Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Nay
Linda Holmes Democrat Yea
Mattie Hunter Democrat Not Voting
Michael E. Hastings Democrat Yea
Steve Stadelman Democrat Yea
Chapin Rose Republican Yea
Dave Syverson Republican Yea
Sue Rezin Republican Nay

Official roll call →

Concurrence, Amendment 3

Failed 16 Yea · 42 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 113101
Democrat 31000
Republican 2100
Total 164201
% of votes cast 27%71%0%2%
How each member voted (59)
Member Party Vote
Althoff — Yea
Martinez — Nay
Barickman — Nay
Bertino-Tarrant — Nay
Biss — Yea
Bivins — Nay
Bush — Nay
McConnaughay — Nay
Hutchinson — Nay
Harris — Nay
Kotowski — Nay
McCann — Nay
McGuire — Nay
Sullivan — Nay
Jacobs — Nay
Cullerton, T. — Nay
McCarter — Nay
Mulroe — Nay
Muñoz — Nay
Noland — Nay
Silverstein — Nay
Trotter — Nay
Clayborne — Nay
Duffy — Not Voting
LaHood — Yea
Landek — Yea
Link — Nay
Luechtefeld — Nay
Manar — Nay
Oberweis — Yea
Radogno — Yea
Steans — Yea
Brady — Yea
Cullerton — Yea
Connelly — Yea
Dillard — Yea
Forby — Nay
Frerichs — Nay
Haine — Nay
Raoul — Nay
Righter — Nay
Sandoval — Nay
Van Pelt — Nay
Bill Cunningham Democrat Nay
David Koehler Democrat Nay
Don Harmon Democrat Yea
Emil Jones, III Democrat Nay
Eva-Dina Delgado Democrat Nay
Julie A. Morrison Democrat Nay
Kimberly A. Lightford Democrat Nay
Lakesia Collins Democrat Nay
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Nay
Mattie Hunter Democrat Nay
Michael E. Hastings Democrat Nay
Steve Stadelman Democrat Yea
Chapin Rose Republican Nay
Dave Syverson Republican Yea
Sue Rezin Republican Yea

Official roll call →

Concurrence

Failed 16 Yea · 42 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 113101
Democrat 31000
Republican 2100
Total 164201
% of votes cast 27%71%0%2%
How each member voted (59)
Member Party Vote
Kotowski — Nay
LaHood — Yea
Luechtefeld — Nay
Althoff — Yea
Barickman — Nay
Bertino-Tarrant — Nay
Biss — Yea
Bivins — Nay
Bush — Nay
McConnaughay — Nay
Landek — Yea
Link — Nay
Manar — Nay
Martinez — Nay
McCann — Nay
McCarter — Nay
Brady — Yea
Cullerton — Yea
Radogno — Yea
Silverstein — Nay
Harris — Nay
Steans — Yea
Clayborne — Nay
Connelly — Yea
Dillard — Yea
Forby — Nay
Frerichs — Nay
Haine — Nay
McGuire — Nay
Sullivan — Nay
Jacobs — Nay
Cullerton, T. — Nay
Mulroe — Nay
Muñoz — Nay
Trotter — Nay
Duffy — Not Voting
Hutchinson — Nay
Noland — Nay
Oberweis — Yea
Raoul — Nay
Righter — Nay
Sandoval — Nay
Van Pelt — Nay
Bill Cunningham Democrat Nay
David Koehler Democrat Nay
Don Harmon Democrat Yea
Emil Jones, III Democrat Nay
Eva-Dina Delgado Democrat Nay
Julie A. Morrison Democrat Nay
Kimberly A. Lightford Democrat Nay
Lakesia Collins Democrat Nay
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Nay
Mattie Hunter Democrat Nay
Michael E. Hastings Democrat Nay
Steve Stadelman Democrat Yea
Chapin Rose Republican Nay
Dave Syverson Republican Yea
Sue Rezin Republican Yea

Official roll call →

Third Reading

Passed 62 Yea · 51 Nay · 5 Other
Party YeaNayPresentNot Voting
Democrat 101401
Unaffiliated 493204
Republican 3500
Total 625105
% of votes cast 53%43%0%4%
How each member voted (118)
Member Party Vote
Madigan — Yea
Acevedo — Yea
Arroyo — Yea
Beiser — Nay
Bellock — Yea
Berrios — Yea
Mautino — Nay
Bost — Nay
Brauer — Nay
Brown — Nay
Farnham — Yea
Harms — Nay
Hatcher — Yea
Jackson — Nay
Jakobsson — Not Voting
Jefferson — Yea
Kosel — Yea
Lang — Nay
Leitch — Yea
McAsey — Yea
McSweeney — Yea
Mell — Yea
Nekritz — Yea
Bradley — Yea
Senger — Yea
Soto — Yea
Burke, Daniel — Yea
Tabares — Yea
Burke, Kelly — Yea
Sullivan — Yea
Mitchell, Christian — Yea
Harris, David — Yea
Harris, Greg — Yea
Turner — Yea
Hernandez — Yea
Willis — Yea
Yingling — Yea
Zalewski — Yea
Wheeler — Yea
Davis, Monique — Yea
Jones — Yea
Conroy — Yea
Cross — Yea
Currie — Yea
Demmer — Yea
Drury — Yea
Dunkin — Yea
Durkin — Yea
Franks — Yea
Hurley — Yea
Ives — Yea
Brady — Nay
McAuliffe — Nay
Mitchell, Bill — Nay
Moffitt — Nay
Pihos — Nay
Thapedi — Nay
Tryon — Nay
Williams — Nay
Unes — Nay
Verschoore — Nay
Cavaletto — Nay
Cloonen — Nay
Costello — Nay
D'Amico — Nay
Flowers — Not Voting
Fortner — Nay
Golar — Not Voting
Hays — Nay
Kay — Yea
Osmond — Yea
Phelps — Nay
Poe — Nay
Pritchard — Nay
Reboletti — Nay
Reis — Not Voting
Riley — Yea
Roth — Yea
Sacia — Nay
Sandack — Yea
Schmitz — Yea
Sente — Yea
Smiddy — Nay
Sommer — Nay
Chapa LaVia — Nay
Anthony DeLuca Democrat Nay
Camille Y. Lilly Democrat Not Voting
Elgie R. Sims, Jr. Democrat Nay
Emanuel "Chris" Welch Democrat Nay
Fred Crespo Democrat Yea
Jay Hoffman Democrat Nay
Jehan Gordon-Booth Democrat Yea
Julie A. Morrison Democrat Yea
Kelly M. Cassidy Democrat Nay
La Shawn K. Ford Democrat Nay
Laura Fine Democrat Nay
Lawrence "Larry" Walsh, Jr. Democrat Nay
Marcus C. Evans, Jr. Democrat Yea
Martin J. Moylan Democrat Yea
Michelle Mussman Democrat Yea
Natalie A. Manley Democrat Yea
Nicholas K. Smith Democrat Nay
Rita Mayfield Democrat Nay
Robert "Bob" Rita Democrat Nay
Robert F. Martwick Democrat Nay
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
Stephanie A. Kifowit Democrat Yea
Sue Scherer Democrat Nay
William "Will" Davis Democrat Nay
Brad Halbrook Republican Yea
Charles Meier Republican Nay
Christopher "C.D." Davidsmeyer Republican Nay
Jil Tracy Republican Yea
Joe C. Sosnowski Republican Yea
John M. Cabello Republican Nay
Norine K. Hammond Republican Nay
Wayne A. Rosenthal Republican Nay

Official roll call →

Third Reading

Passed 30 Yea · 22 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 211705
Democrat 9202
Republican 0300
Total 302207
% of votes cast 51%37%0%12%
How each member voted (59)
Member Party Vote
Kotowski — Yea
Althoff — Nay
Barickman — Nay
Bertino-Tarrant — Yea
Biss — Yea
Bivins — Not Voting
Bush — Yea
McCarter — Nay
Haine — Yea
Noland — Yea
Link — Yea
Martinez — Yea
Silverstein — Yea
Harris — Yea
McGuire — Yea
Jacobs — Yea
Hutchinson — Yea
Cullerton, T. — Yea
LaHood — Nay
Cullerton — Yea
Landek — Yea
Brady — Nay
Luechtefeld — Nay
Sullivan — Nay
Manar — Nay
McCann — Nay
McConnaughay — Nay
Mulroe — Yea
Muñoz — Yea
Oberweis — Nay
Radogno — Nay
Steans — Not Voting
Trotter — Yea
Clayborne — Not Voting
Connelly — Nay
Dillard — Nay
Duffy — Nay
Forby — Not Voting
Frerichs — Nay
Raoul — Yea
Righter — Nay
Sandoval — Not Voting
Van Pelt — Yea
Bill Cunningham Democrat Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Not Voting
Julie A. Morrison Democrat Yea
Kimberly A. Lightford Democrat Not Voting
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Nay
Linda Holmes Democrat Nay
Mattie Hunter Democrat Yea
Michael E. Hastings Democrat Yea
Steve Stadelman Democrat Yea
Chapin Rose Republican Nay
Dave Syverson Republican Nay
Sue Rezin Republican Nay

Official roll call →

Subjects

finance labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 1 do?
Amends the General Provisions, General Assembly, Illinois Municipal Retirement Fund (IMRF), State Employee, State Universities, Downstate Teacher, and Judges Articles of the Illinois Pension Code. Contains a Part A, which is intended by the General Assembly as a stand-alone reform of the General Assembly, State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code and takes effect upon becoming law. Contains a Part B, which is intended to provide alternative provisions that take effect only if and when a corresponding portion of Part A is determined to be unconstitutional or otherwise invalid or unenforceable. In Part A, caps pensionable salary, temporarily suspends and reduces the amount of automatic annual increases, requires the systems to be 100% funded by 2043, and increases required employee contributions. In Part B, requires persons to make an election either to accept reductions in the amount of, as well as delays in eligibility for, automatic annual increases or to forgo certain healthcare benefits and future increases in pensionable income. Effective upon becoming law, except that specified portions of Part B take effect upon the date following the date upon which certain contingencies occur.
Who sponsors SB 1?
SB 1 is sponsored by Kwame Raoul.
What is the current status of SB 1?
This bill has been enacted into law. Introduced January 09, 2013. Enacted.
Where can I track SB 1?
Track SB 1 free on One Click Politics — get push/email alerts when it moves.

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