HB 857 — PEN CD-SURS-SERVICE CRED

HB0857 EngrossedEnrolled LRB095 06238 AMC 26332 b AN ACT concerning public employee benefits.

Includes those periods not exceeding the lesser of 10 years or 2/3 of the service granted under other Sections of this Article dealing with service credit, during which a person who entered the system after September 1, 1974 was employed full time by a public common school, public college and public university, or by an agency or instrumentality of any of the foregoing, of any state, territory, dependency or possession of the United States of America, including the Philippine Islands, or a school operated by or under the auspices of any agency or department of any other state, if the person (1) cannot qualify for a retirement pension or other benefit based upon employer contributions from another retirement system, exclusive of federal social security, based in whole or in part upon this employment, and (2) pays the lesser of (A) an amount equal to HB0857 EngrossedEnrolled - 2 - LRB095 06238 AMC 26332 b 8% of his or her annual basic compensation on the date of becoming a participating employee subsequent to this service multiplied by the number of years of such service, together with compound interest from the date participation begins to the date payment is received by the board at the rate of 6% per annum through August 31, 1982, and at the effective rates after that date, and (B) 50% of the actuarial value of the increase in the retirement annuity provided by this service, and (3) contributes for at least 5 years subsequent to this employment to one or more of the following systems:

HB0857 EngrossedEnrolled - 3 - LRB095 06238 AMC 26332 b "Service for other public employment":

If a function of a governmental unit as defined by Section 20-107 is transferred by law, in whole or in part to an employer, and an employee transfers HB0857 EngrossedEnrolled - 4 - LRB095 06238 AMC 26332 b employment from this governmental unit to such employer within 6 months of the transfer of the function, the payment for service authorized under this Section shall not exceed the amount which would have been payable for this service to the retirement system covering the governmental unit from which the function was transferred.

(a) The beneficiary of a participant under the traditional benefit package is entitled to a death benefit equal to the sum of (1) the employee’s accumulated normal and additional contributions on the date of death, (2) the employee’s HB0857 EngrossedEnrolled - 5 - LRB095 06238 AMC 26332 b accumulated survivors insurance contributions on the date of death, if a survivors insurance benefit is not payable, (3) an amount equal to the employee’s final rate of earnings, but not more than $5,000, if (i) the beneficiary, under rules of the board, was dependent upon the participant, (ii) the participant was a participating employee immediately prior to his or her death, and (iii) a survivors insurance benefit is not payable, and (4) $2,500 if (i) the beneficiary was not dependent upon the participant, (ii) the participant was a participating employee immediately prior to his or her death, and (iii) a survivors insurance benefit is not payable.

If the recipient of a pre-retirement survivor annuity dies before an amount equal to all accumulated normal and additional HB0857 EngrossedEnrolled - 6 - LRB095 06238 AMC 26332 b contributions as of the date of death have been paid out, the remaining difference shall be paid to the member’s beneficiary.

The actuary’s report must also quantify the extent to which HB0857 EngrossedEnrolled - 7 - LRB095 06238 AMC 26332 b employee optional retirement plan participation has reduced the State’s required contributions to the System, expressed both in dollars and as a percentage of covered payroll, in relation to what the State’s contributions to the System would have been (1) if the self-managed plan had not been implemented, and (2) if 45% of employees of the System’s covered higher educational institutions who were hired on or after the implementation date of the self-managed plan had elected to participate in the self-managed plan and 10% of other System participants had transferred to the self-managed plan following its implementation.

(c) On or before November 15 of 2001 and on or before November 15th of each year thereafter, the Department of Central Management Services shall prepare a report showing, on a fiscal year by fiscal year basis, the amount by which the State’s cost for health insurance coverage under the State HB0857 EngrossedEnrolled - 8 - LRB095 06238 AMC 26332 b Employees Group Insurance Act of 1971 for retirees of the State’s universities and their survivors has declined as a result of requiring some of those retirees and survivors to contribute to the cost of their basic health insurance.

If that provision is extended beyond December 31, 2002, and if the most recent report under subsection (a) indicates that actual State contributions to the System for the period during which the self-managed plan has been in operation have exceeded the projected State contributions under the assumptions in clause (2) of subsection (a), then any extension of the provision beyond December 31, 2002 must require that the System’s higher HB0857 EngrossedEnrolled - 9 - LRB095 06238 AMC 26332 b educational institutions and agencies cover any funding deficiency through an annual payment to the System out of appropriate resources of their own.

The Illinois Pension Code is amended by HB0857 EngrossedEnrolled - 10 - LRB095 06238 AMC 26332 b repealing Section 15-167.3.