Rep. Elaine Nekritz
Filed: 5/30/2013
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| 1 | AMENDMENT TO SENATE BILL 1687
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| 2 | AMENDMENT NO. ______. Amend Senate Bill 1687, AS AMENDED, | ||||||
| 3 | by replacing everything after the enacting clause with the | ||||||
| 4 | following:
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| 5 | "Section 5. The Illinois Procurement Code is amended by | ||||||
| 6 | changing Section 1-13 as follows:
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| 7 | (30 ILCS 500/1-13) | ||||||
| 8 | (Section scheduled to be repealed on December 31, 2014) | ||||||
| 9 | Sec. 1-13. Applicability to public institutions of higher | ||||||
| 10 | education. | ||||||
| 11 | (a) This Code shall apply to public institutions of higher | ||||||
| 12 | education, regardless of the source of the funds with which | ||||||
| 13 | contracts are paid, except as provided in this Section. | ||||||
| 14 | (b) Except as provided in this Section, this Code shall not | ||||||
| 15 | apply to procurements made by or on behalf of public | ||||||
| 16 | institutions of higher education for any of the following: | ||||||
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| 1 | (1) Memberships in professional, academic, research, | ||||||
| 2 | or athletic organizations on behalf of a public institution | ||||||
| 3 | of higher education, an employee of a public institution of | ||||||
| 4 | higher education, or a student at a public institution of | ||||||
| 5 | higher education. | ||||||
| 6 | (2) Procurement expenditures for specific individual | ||||||
| 7 | events or activities paid for exclusively by revenues | ||||||
| 8 | generated by the event or activity, gifts or donations for | ||||||
| 9 | the event or activity, private grants, or any combination | ||||||
| 10 | thereof. | ||||||
| 11 | (3) Procurement expenditures for events or activities | ||||||
| 12 | for which the use of specific vendors is mandated or | ||||||
| 13 | identified by the sponsor of the event or activity, | ||||||
| 14 | provided that the sponsor is providing a majority of the | ||||||
| 15 | funding for the event or activity. | ||||||
| 16 | (4) Procurement expenditures necessary to provide for | ||||||
| 17 | specific athletic, artistic, or musical services, | ||||||
| 18 | performances, events, or productions held at a venue | ||||||
| 19 | operated by or for a public institution of higher | ||||||
| 20 | education. | ||||||
| 21 | (5) Procurement expenditures for periodicals, | ||||||
| 22 | subscriptions, database licenses, books and other | ||||||
| 23 | publications, and books procured for use by a university | ||||||
| 24 | library or academic department, except for expenditures | ||||||
| 25 | related to procuring textbooks for student use or materials | ||||||
| 26 | for resale or rental. | ||||||
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| 1 | (6) Procurement expenditures for placement of students | ||||||
| 2 | in externships, field experiences, and rotations. | ||||||
| 3 | (7) Contracts with a foreign entity necessary for | ||||||
| 4 | research or educational activities, provided that the | ||||||
| 5 | foreign entity either does not maintain an office in the | ||||||
| 6 | United States or is the sole source of the service or | ||||||
| 7 | product. | ||||||
| 8 | (8) Procurements of FDA-regulated goods, products, and | ||||||
| 9 | services necessary for the delivery of care and treatment | ||||||
| 10 | at medical, dental, or veterinary teaching facilities | ||||||
| 11 | utilized by the University of Illinois or Southern Illinois | ||||||
| 12 | University. | ||||||
| 13 | (9) Contracts for programming and broadcast license | ||||||
| 14 | rights for university-operated radio and television | ||||||
| 15 | stations. | ||||||
| 16 | (10) Procurement expenditures designated in a grant | ||||||
| 17 | budget approved by the grantor. | ||||||
| 18 | Notice of each contract entered into by a public institution of | ||||||
| 19 | higher education that is related to the procurement of goods | ||||||
| 20 | and services identified in items (1) through (10) (5) of this | ||||||
| 21 | subsection shall be published in the Procurement Bulletin | ||||||
| 22 | within 14 days after contract execution. The Chief Procurement | ||||||
| 23 | Officer shall prescribe the form and content of the notice. | ||||||
| 24 | Each public institution of higher education shall provide the | ||||||
| 25 | Chief Procurement Officer, on a monthly basis, in the form and | ||||||
| 26 | content prescribed by the Chief Procurement Officer, a report | ||||||
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| 1 | of contracts that are related to the procurement of goods and | ||||||
| 2 | services identified in this subsection. At a minimum, this | ||||||
| 3 | report shall include the name of the contractor, a description | ||||||
| 4 | of the supply or service provided, the total amount of the | ||||||
| 5 | contract, the term of the contract, and the exception to the | ||||||
| 6 | Code utilized. A copy of any or all of these contracts shall be | ||||||
| 7 | made available to the Chief Procurement Officer immediately | ||||||
| 8 | upon request. The Chief Procurement Officer shall submit a | ||||||
| 9 | report to the Governor and General Assembly no later than | ||||||
| 10 | November 1 of each year that shall include, at a minimum, an | ||||||
| 11 | annual summary of the monthly information reported to the Chief | ||||||
| 12 | Procurement Officer. | ||||||
| 13 | (c) Procurements made by or on behalf of public | ||||||
| 14 | institutions of higher education for any of the following shall | ||||||
| 15 | be made in accordance with the requirements of this Code to the | ||||||
| 16 | extent practical as provided in this subsection: | ||||||
| 17 | (1) Contracts with a foreign entity necessary for | ||||||
| 18 | research or educational activities, provided that the | ||||||
| 19 | foreign entity either does not maintain an office in the | ||||||
| 20 | United States or is the sole source of the service or | ||||||
| 21 | product. | ||||||
| 22 | (2) Procurements of FDA-regulated goods, products, and | ||||||
| 23 | services necessary for the delivery of care and treatment | ||||||
| 24 | at medical, dental, or veterinary teaching facilities | ||||||
| 25 | utilized by the University of Illinois or Southern Illinois | ||||||
| 26 | University. | ||||||
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| 1 | (3) Contracts for programming and broadcast license | ||||||
| 2 | rights for university-operated radio and television | ||||||
| 3 | stations. | ||||||
| 4 | (4) Procurements required for fulfillment of a grant. | ||||||
| 5 | Upon the written request of a public institution of higher | ||||||
| 6 | education, the Chief Procurement Officer may waive contract | ||||||
| 7 | requirements, including registration, certification, and | ||||||
| 8 | hearing requirements of this Code if, based on the item to be | ||||||
| 9 | procured or the terms of a grant, compliance is impractical. | ||||||
| 10 | The public institution of higher education shall provide the | ||||||
| 11 | Chief Procurement Officer with specific reasons for the waiver, | ||||||
| 12 | including the necessity of contracting with a particular | ||||||
| 13 | vendor, and shall certify that an effort was made in good faith | ||||||
| 14 | to comply with the provisions of this Code. The Chief | ||||||
| 15 | Procurement Officer shall provide written justification for | ||||||
| 16 | any waivers. By November 1 of each year, the Chief Procurement | ||||||
| 17 | Officer shall file a report with the General Assembly | ||||||
| 18 | identifying each contract approved with waivers and providing | ||||||
| 19 | the justification given for any waivers for each of those | ||||||
| 20 | contracts. Notice of each waiver made under this subsection | ||||||
| 21 | shall be published in the Procurement Bulletin within 14 days | ||||||
| 22 | after contract execution. The Chief Procurement Officer shall | ||||||
| 23 | prescribe the form and content of the notice. | ||||||
| 24 | (d) Notwithstanding this Section, a waiver of the | ||||||
| 25 | registration requirements of Section 20-160 does not permit a | ||||||
| 26 | business entity and any affiliated entities or affiliated | ||||||
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| 1 | persons to make campaign contributions if otherwise prohibited | ||||||
| 2 | by Section 50-37. The total amount of contracts awarded in | ||||||
| 3 | accordance with this Section shall be included in determining | ||||||
| 4 | the aggregate amount of contracts or pending bids of a business | ||||||
| 5 | entity and any affiliated entities or affiliated persons. | ||||||
| 6 | (e) Notwithstanding subsection (e) of Section 50-10.5 of | ||||||
| 7 | this Code, the Chief Procurement Officer, with the approval of | ||||||
| 8 | the Executive Ethics Commission, may permit a public | ||||||
| 9 | institution of higher education to accept a bid or enter into a | ||||||
| 10 | contract with a business that assisted the public institution | ||||||
| 11 | of higher education in determining whether there is a need for | ||||||
| 12 | a contract or assisted in reviewing, drafting, or preparing | ||||||
| 13 | documents related to a bid or contract, provided that the bid | ||||||
| 14 | or contract is essential to research administered by the public | ||||||
| 15 | institution of higher education and it is in the best interest | ||||||
| 16 | of the public institution of higher education to accept the bid | ||||||
| 17 | or contract. For purposes of this subsection, "business" | ||||||
| 18 | includes all individuals with whom a business is affiliated, | ||||||
| 19 | including, but not limited to, any officer, agent, employee, | ||||||
| 20 | consultant, independent contractor, director, partner, | ||||||
| 21 | manager, or shareholder of a business. The Executive Ethics | ||||||
| 22 | Commission may promulgate rules and regulations for the | ||||||
| 23 | implementation and administration of the provisions of this | ||||||
| 24 | subsection (e). | ||||||
| 25 | (f) As used in this Section: | ||||||
| 26 | "Grant" means non-appropriated funding provided by a | ||||||
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| 1 | federal or private entity to support a project or program | ||||||
| 2 | administered by a public institution of higher education and | ||||||
| 3 | any non-appropriated funding provided to a sub-recipient of the | ||||||
| 4 | grant. | ||||||
| 5 | "Public institution of higher education" means Chicago | ||||||
| 6 | State University, Eastern Illinois University, Governors State | ||||||
| 7 | University, Illinois State University, Northeastern Illinois | ||||||
| 8 | University, Northern Illinois University, Southern Illinois | ||||||
| 9 | University, University of Illinois, Western Illinois | ||||||
| 10 | University, and, for purposes of this Code only, the Illinois | ||||||
| 11 | Mathematics and Science Academy. | ||||||
| 12 | (g) For any individual procurement of supplies or services | ||||||
| 13 | (other than professional or artistic services) paid for | ||||||
| 14 | exclusively by non-appropriated funds, the small purchase | ||||||
| 15 | maximum in Section 20-20 of this Code shall be $100,000. For | ||||||
| 16 | any procurement of professional and artistic services paid for | ||||||
| 17 | exclusively by non-appropriated funds, the small purchase | ||||||
| 18 | maximum in subsection (f) of Section 35-30 of this Code and | ||||||
| 19 | subsection (a) of Section 35-35 of this Code shall be $100,000. | ||||||
| 20 | The chief procurement officer may establish policies and | ||||||
| 21 | procedures regarding the use of the small purchase method of | ||||||
| 22 | source selection to ensure compliance with policies, including | ||||||
| 23 | promotion of small business, diversity, and transparency. | ||||||
| 24 | (h) Exceptions to Section 35-30 of this Code are allowed | ||||||
| 25 | for sole source procurements, emergency procurements, and at | ||||||
| 26 | the discretion of the chief procurement officer or the State | ||||||
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| 1 | purchasing officer, but not their designees, for professional | ||||||
| 2 | and artistic contracts entered into under Article 35 that are | ||||||
| 3 | nonrenewable, one year or less in duration, and have a value of | ||||||
| 4 | less than $100,000. Each July 1, the value established in this | ||||||
| 5 | subsection shall be adjusted for inflation as determined by the | ||||||
| 6 | Consumer Price Index for All Urban Consumers for all items | ||||||
| 7 | published by the United States Department of Labor and rounded | ||||||
| 8 | to the nearest $100. All exceptions granted under this | ||||||
| 9 | subsection (h) for professional and artistic contracts must | ||||||
| 10 | still be submitted to the chief procurement officer for higher | ||||||
| 11 | education and published as provided for in subsection (f) of | ||||||
| 12 | Section 35-30 of this Code, shall name the authorizing chief | ||||||
| 13 | procurement officer or State purchasing officer, and shall | ||||||
| 14 | include a brief explanation of the reason for the exception. | ||||||
| 15 | (i) Nothing in this Section shall be construed to waive any | ||||||
| 16 | requirements for procurements related to construction or | ||||||
| 17 | construction-related services. | ||||||
| 18 | (j) (g) This Section is repealed on December 31, 2014.
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| 19 | (Source: P.A. 97-643, eff. 12-20-11; 97-895, eff. 8-3-12.)
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| 20 | Section 10. The State Property Control Act is amended by | ||||||
| 21 | changing Section 6.04 as follows:
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| 22 | (30 ILCS 605/6.04) (from Ch. 127, par. 133b9.4)
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| 23 | Sec. 6.04.
(a) Annually, and upon at least 30 days notice, | ||||||
| 24 | the administrator
may require each responsible officer to make, | ||||||
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| 1 | or cause to be made, an
actual physical inventory check of all | ||||||
| 2 | items of property under his
jurisdiction and control and said | ||||||
| 3 | inventory shall be certified to the
administrator with a full | ||||||
| 4 | accounting of all errors or exceptions reported
therein. | ||||||
| 5 | (b) Notwithstanding any other provision of law, with | ||||||
| 6 | respect to all responsible officers of public universities and | ||||||
| 7 | colleges, the administrator shall require a listing of only | ||||||
| 8 | those equipment items valued in excess of $2,500, except that | ||||||
| 9 | (A) the administrator shall require reporting of high theft | ||||||
| 10 | equipment regardless of the value of that equipment, and (B) | ||||||
| 11 | furniture with more than 10 years in service shall not be | ||||||
| 12 | subject to reporting. | ||||||
| 13 | For the purposes of this Section, "high theft equipment" | ||||||
| 14 | includes, but is not limited to, the following items: | ||||||
| 15 | (1) desktop and laptop computers, servers, and | ||||||
| 16 | portable data storage devices valued at more than $250; | ||||||
| 17 | (2) flat screen, LCD, high definition, and plasma | ||||||
| 18 | televisions and monitors valued at more than $250; | ||||||
| 19 | (3) wireless devices, including portable digital | ||||||
| 20 | assistants (PDAs), iPads, iPods, tablets, and cellular | ||||||
| 21 | telephones valued at more than $250; | ||||||
| 22 | (4) digital recording devices and video equipment | ||||||
| 23 | valued at more than $250; | ||||||
| 24 | (5) tools and machine shop equipment valued at more | ||||||
| 25 | than $250; | ||||||
| 26 | (6) all State-owned firearms and rifles regardless of | ||||||
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| 1 | value; | ||||||
| 2 | (7) all electric or gasoline-powered recreational | ||||||
| 3 | vehicles or maintenance vehicles regardless of value; | ||||||
| 4 | (8) other items deemed susceptible to theft or loss, as | ||||||
| 5 | determined by the administrator and the responsible | ||||||
| 6 | officer.
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| 7 | (Source: Laws 1955, p. 34.)
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| 8 | Section 15. The Illinois Pension Code is amended by | ||||||
| 9 | changing Sections 1-103.3, 15-106, 15-107, 15-113.2, 15-126.1, | ||||||
| 10 | 15-139, 15-139.5, 15-155, 15-159, 15-168.2, and 15-198, and by | ||||||
| 11 | adding Sections 1-103.4, 15-155.1, and 15-155.2 as follows:
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| 12 | (40 ILCS 5/1-103.3)
| ||||||
| 13 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
| 14 | standard.
| ||||||
| 15 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
| 16 | of 1994 that change the method of
calculating, certifying, and | ||||||
| 17 | paying the required State contributions to the
retirement | ||||||
| 18 | systems established under Articles 2, 14, 15, 16, and 18 shall
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| 19 | first apply to the State contributions required for State | ||||||
| 20 | fiscal year 1996.
| ||||||
| 21 | (b) (Blank) The General Assembly declares that a funding | ||||||
| 22 | ratio (the ratio of a
retirement system's total assets to its | ||||||
| 23 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
| 24 | State-funded retirement systems in Illinois, and it
finds that | ||||||
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| |||||||
| 1 | a funding ratio of 90% is now the generally-recognized norm
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| 2 | throughout the nation for public employee retirement systems | ||||||
| 3 | that are
considered to be financially secure and funded in an | ||||||
| 4 | appropriate and
responsible manner.
| ||||||
| 5 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
| 6 | Government Forecasting and Accountability, in consultation | ||||||
| 7 | with the affected retirement systems and the
Governor's Office | ||||||
| 8 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
| 9 | consider and determine whether the funding goals 90% funding | ||||||
| 10 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
| 11 | continue subsection (b) continues to represent an appropriate | ||||||
| 12 | funding goals goal for
those State-funded retirement systems in | ||||||
| 13 | Illinois, and it shall report its findings
and recommendations | ||||||
| 14 | on this subject to the Governor and the General Assembly.
| ||||||
| 15 | (Source: P.A. 93-1067, eff. 1-15-05.)
| ||||||
| 16 | (40 ILCS 5/1-103.4 new) | ||||||
| 17 | Sec. 1-103.4. Benefit increases; third reading | ||||||
| 18 | requirement. A bill containing a benefit increase under this | ||||||
| 19 | Code may be moved from second to third reading in either house | ||||||
| 20 | of the General Assembly only with the concurrence of 3/4 of the | ||||||
| 21 | members elected to that house by record vote.
| ||||||
| 22 | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
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| 23 | Sec. 15-106. Employer. "Employer": The University of | ||||||
| 24 | Illinois, Southern
Illinois University, Chicago State | ||||||
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| 1 | University, Eastern Illinois University,
Governors State | ||||||
| 2 | University, Illinois State University, Northeastern Illinois
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| 3 | University, Northern Illinois University, Western Illinois | ||||||
| 4 | University, the
State Board of Higher Education, the Illinois | ||||||
| 5 | Mathematics and Science Academy,
the University Civil Service | ||||||
| 6 | Merit Board, the Board of
Trustees of the State Universities | ||||||
| 7 | Retirement System, the Illinois Community
College Board, | ||||||
| 8 | community college
boards, any association of community college | ||||||
| 9 | boards organized under Section
3-55 of the Public Community | ||||||
| 10 | College Act, the Board of Examiners established
under the | ||||||
| 11 | Illinois Public Accounting Act, and, only during the period for | ||||||
| 12 | which
employer contributions required under Section 15-155 are | ||||||
| 13 | paid, the following
organizations: the alumni associations, | ||||||
| 14 | the foundations and the athletic
associations which are | ||||||
| 15 | affiliated with the universities and colleges included
in this | ||||||
| 16 | Section as employers. | ||||||
| 17 | A department as defined in Section 14-103.04 is
an employer | ||||||
| 18 | for any person appointed by the Governor under the Civil
| ||||||
| 19 | Administrative Code of Illinois who is a participating employee | ||||||
| 20 | as defined in
Section 15-109. The Department of Central | ||||||
| 21 | Management Services is an employer with respect to persons | ||||||
| 22 | employed by the State Board of Higher Education in positions | ||||||
| 23 | with the Illinois Century Network as of June 30, 2004 who | ||||||
| 24 | remain continuously employed after that date by the Department | ||||||
| 25 | of Central Management Services in positions with the Illinois | ||||||
| 26 | Century Network, the Bureau of Communication and Computer | ||||||
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| 1 | Services, or, if applicable, any successor bureau.
| ||||||
| 2 | Prior to July 1, 2014, the The cities of Champaign and | ||||||
| 3 | Urbana shall be considered
employers, but only during the | ||||||
| 4 | period for which contributions are required to
be made under | ||||||
| 5 | subsection (b-1) of Section 15-155 and only with respect to
| ||||||
| 6 | individuals described in subsection (h) of Section 15-107. | ||||||
| 7 | Beginning July 1, 2014, the cities of Champaign and Urbana | ||||||
| 8 | shall be considered
employers but only with respect to | ||||||
| 9 | individuals described in subsection (h) of Section 15-107.
| ||||||
| 10 | Beginning July 1, 2014, a teacher organization that serves | ||||||
| 11 | System
participants shall be considered an employer but only | ||||||
| 12 | with respect to (1) individuals described in subsection (i) of | ||||||
| 13 | Section 15-107 and (2) individuals in its service who are | ||||||
| 14 | entitled to accrue service credit under Section 15-113.2 during | ||||||
| 15 | a special leave of absence with that organization. | ||||||
| 16 | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | ||||||
| 17 | Sec. 999.)
| ||||||
| 18 | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| ||||||
| 19 | Sec. 15-107. Employee.
| ||||||
| 20 | (a) "Employee" means any member of the educational, | ||||||
| 21 | administrative,
secretarial, clerical, mechanical, labor or | ||||||
| 22 | other staff of an employer
whose employment is permanent and | ||||||
| 23 | continuous or who is employed in a
position in which services | ||||||
| 24 | are expected to be rendered on a continuous
basis for at least | ||||||
| 25 | 4 months or one academic term, whichever is less, who
(A) | ||||||
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| 1 | receives payment for personal services on a warrant issued | ||||||
| 2 | pursuant to
a payroll voucher certified by an employer and | ||||||
| 3 | drawn by the State
Comptroller upon the State Treasurer or by | ||||||
| 4 | an employer upon trust, federal
or other funds, or (B) is on a | ||||||
| 5 | leave of absence without pay. Employment
which is irregular, | ||||||
| 6 | intermittent or temporary shall not be considered
continuous | ||||||
| 7 | for purposes of this paragraph.
| ||||||
| 8 | However, a person is not an "employee" if he or she:
| ||||||
| 9 | (1) is a student enrolled in and regularly attending | ||||||
| 10 | classes in a
college or university which is an employer, | ||||||
| 11 | and is employed on a temporary
basis at less than full | ||||||
| 12 | time;
| ||||||
| 13 | (2) is currently receiving a retirement annuity or a | ||||||
| 14 | disability
retirement annuity under Section 15-153.2 from | ||||||
| 15 | this System;
| ||||||
| 16 | (3) is on a military leave of absence;
| ||||||
| 17 | (4) is eligible to participate in the Federal Civil | ||||||
| 18 | Service Retirement
System and is currently making | ||||||
| 19 | contributions to that system based upon
earnings paid by an | ||||||
| 20 | employer;
| ||||||
| 21 | (5) is on leave of absence without pay for more than 60 | ||||||
| 22 | days
immediately following termination of disability | ||||||
| 23 | benefits under this
Article;
| ||||||
| 24 | (6) is hired after June 30, 1979 as a public service | ||||||
| 25 | employment program
participant under the Federal | ||||||
| 26 | Comprehensive Employment and Training Act
and receives | ||||||
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| |||||||
| 1 | earnings in whole or in part from funds provided under that
| ||||||
| 2 | Act; or
| ||||||
| 3 | (7) is employed on or after July 1, 1991 to perform | ||||||
| 4 | services that
are excluded by subdivision (a)(7)(f) or | ||||||
| 5 | (a)(19) of Section 210 of the
federal Social Security Act | ||||||
| 6 | from the definition of employment given in that
Section (42 | ||||||
| 7 | U.S.C. 410).
| ||||||
| 8 | (b) Any employer may, by filing a written notice with the | ||||||
| 9 | board, exclude
from the definition of "employee" all persons | ||||||
| 10 | employed pursuant to a federally
funded contract entered into | ||||||
| 11 | after July 1, 1982 with a federal military
department in a | ||||||
| 12 | program providing training in military courses to federal
| ||||||
| 13 | military personnel on a military site owned by the United | ||||||
| 14 | States Government,
if this exclusion is not prohibited by the | ||||||
| 15 | federally funded contract or
federal laws or rules governing | ||||||
| 16 | the administration of the contract.
| ||||||
| 17 | (c) Any person appointed by the Governor under the Civil | ||||||
| 18 | Administrative
Code of the State is an employee, if he or she | ||||||
| 19 | is a participant in this
system on the effective date of the | ||||||
| 20 | appointment.
| ||||||
| 21 | (d) A participant on lay-off status under civil service | ||||||
| 22 | rules is
considered an employee for not more than 120 days from | ||||||
| 23 | the date of the lay-off.
| ||||||
| 24 | (e) A participant is considered an employee during (1) the | ||||||
| 25 | first 60 days
of disability leave, (2) the period, not to | ||||||
| 26 | exceed one year, in which his
or her eligibility for disability | ||||||
| |||||||
| |||||||
| 1 | benefits is being considered by the board
or reviewed by the | ||||||
| 2 | courts, and (3) the period he or she receives disability
| ||||||
| 3 | benefits under the provisions of Section 15-152, workers' | ||||||
| 4 | compensation or
occupational disease benefits, or disability | ||||||
| 5 | income under an insurance
contract financed wholly or partially | ||||||
| 6 | by the employer.
| ||||||
| 7 | (f) Absences without pay, other than formal leaves of | ||||||
| 8 | absence, of less
than 30 calendar days, are not considered as | ||||||
| 9 | an interruption of a person's
status as an employee. If such | ||||||
| 10 | absences during any period of 12 months
exceed 30 work days, | ||||||
| 11 | the employee status of the person is considered as
interrupted | ||||||
| 12 | as of the 31st work day.
| ||||||
| 13 | (g) A staff member whose employment contract requires | ||||||
| 14 | services during
an academic term is to be considered an | ||||||
| 15 | employee during the summer and
other vacation periods, unless | ||||||
| 16 | he or she declines an employment contract
for the succeeding | ||||||
| 17 | academic term or his or her employment status is
otherwise | ||||||
| 18 | terminated, and he or she receives no earnings during these | ||||||
| 19 | periods.
| ||||||
| 20 | (h) An individual who was a participating employee employed | ||||||
| 21 | in the fire
department of the University of Illinois's | ||||||
| 22 | Champaign-Urbana campus immediately
prior to the elimination | ||||||
| 23 | of that fire department and who immediately after the
| ||||||
| 24 | elimination of that fire department became employed by the fire | ||||||
| 25 | department of
the City of Urbana or the City of Champaign shall | ||||||
| 26 | continue to be considered as
an employee for purposes of this | ||||||
| |||||||
| |||||||
| 1 | Article for so long as the individual remains
employed as a | ||||||
| 2 | firefighter by the City of Urbana or the City of Champaign. The
| ||||||
| 3 | individual shall cease to be considered an employee under this | ||||||
| 4 | subsection (h)
upon the first termination of the individual's | ||||||
| 5 | employment as a firefighter by
the City of Urbana or the City | ||||||
| 6 | of Champaign.
| ||||||
| 7 | (i) An individual who is employed on a full-time basis as | ||||||
| 8 | an officer
or employee of a statewide teacher organization that | ||||||
| 9 | serves System
participants or an officer of a national teacher | ||||||
| 10 | organization that serves
System participants may participate | ||||||
| 11 | in the System and shall be deemed an
employee, provided that | ||||||
| 12 | (1) the individual has previously earned
creditable service | ||||||
| 13 | under this Article, (2) the individual files with the
System an | ||||||
| 14 | irrevocable election to become a participant before January 5, | ||||||
| 15 | 2012 (the effective date of Public Act 97-651) this amendatory | ||||||
| 16 | Act of the 97th General Assembly, (3) the
individual does not | ||||||
| 17 | receive credit for that employment under any other Article
of | ||||||
| 18 | this Code, and (4) the individual first became a full-time | ||||||
| 19 | employee of the teacher organization and becomes a participant | ||||||
| 20 | before January 5, 2012 the effective date of this amendatory | ||||||
| 21 | Act of the 97th General Assembly. An employee under this | ||||||
| 22 | subsection (i) is responsible for paying
to the System both (A) | ||||||
| 23 | employee contributions based on the actual compensation
| ||||||
| 24 | received for service with the teacher organization and (B) | ||||||
| 25 | until July 1, 2014, employer
contributions equal to the normal | ||||||
| 26 | costs (as defined in Section 15-155)
resulting from that | ||||||
| |||||||
| |||||||
| 1 | service; all or any part of these contributions may be
paid on | ||||||
| 2 | the employee's behalf or picked up for tax purposes (if | ||||||
| 3 | authorized
under federal law) by the teacher organization. | ||||||
| 4 | Beginning July 1, 2014, the employer of that employee is | ||||||
| 5 | responsible for paying the employer
contributions
resulting | ||||||
| 6 | from that service, as provided in Section 15-155.
| ||||||
| 7 | A person who is an employee as defined in this subsection | ||||||
| 8 | (i) may establish
service credit for similar employment prior | ||||||
| 9 | to becoming an employee under this
subsection by paying to the | ||||||
| 10 | System for that employment the contributions
specified in this | ||||||
| 11 | subsection, plus interest at the effective rate from the
date | ||||||
| 12 | of service to the date of payment. However, credit shall not be | ||||||
| 13 | granted
under this subsection for any such prior employment for | ||||||
| 14 | which the applicant
received credit under any other provision | ||||||
| 15 | of this Code, or during which
the applicant was on a leave of | ||||||
| 16 | absence under Section 15-113.2.
| ||||||
| 17 | (j) A person employed by the State Board of Higher | ||||||
| 18 | Education in a position with the Illinois Century Network as of | ||||||
| 19 | June 30, 2004 shall be considered to be an employee for so long | ||||||
| 20 | as he or she remains continuously employed after that date by | ||||||
| 21 | the Department of Central Management Services in a position | ||||||
| 22 | with the Illinois Century Network, the Bureau of Communication | ||||||
| 23 | and Computer Services, or, if applicable, any successor bureau
| ||||||
| 24 | and meets the requirements of subsection (a).
| ||||||
| 25 | (Source: P.A. 97-651, eff. 1-5-12.)
| ||||||
| |||||||
| |||||||
| 1 | (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
| ||||||
| 2 | Sec. 15-113.2. Service for leaves of absence. "Service for | ||||||
| 3 | leaves of
absence" includes those periods of leaves of absence | ||||||
| 4 | at less than 50%
pay, except military leave and periods of | ||||||
| 5 | disability leave in excess of 60
days, for which the employee | ||||||
| 6 | pays the contributions required under Section
15-157 in | ||||||
| 7 | accordance with rules prescribed by the board based upon the
| ||||||
| 8 | employee's basic compensation on the date the leave begins, or | ||||||
| 9 | in the case
of leave for service with a teacher organization, | ||||||
| 10 | based upon the actual
compensation received by the employee for | ||||||
| 11 | such service after January 26,
1988, if the employee so elects | ||||||
| 12 | within 30 days of that date or the date the
leave for service | ||||||
| 13 | with a teacher organization begins, whichever is later;
| ||||||
| 14 | provided that the employee (1) returns to employment covered by | ||||||
| 15 | this system
at the expiration of the leave, or within 30 days | ||||||
| 16 | after the termination of
a disability which occurs during the | ||||||
| 17 | leave and continues this employment
at a percentage of time | ||||||
| 18 | equal to or greater than the percentage of time
immediately | ||||||
| 19 | preceding the leave of absence for at least 8 consecutive
| ||||||
| 20 | months or a period equal to the period of the leave,
whichever | ||||||
| 21 | is less, or (2) is precluded from meeting the foregoing
| ||||||
| 22 | conditions because of disability or death. If service credit is | ||||||
| 23 | denied
because the employee fails to meet these conditions, the | ||||||
| 24 | contributions
covering the leave of absence shall be refunded | ||||||
| 25 | without interest. The
return to employment condition does not | ||||||
| 26 | apply if the leave of absence is
for service with a teacher | ||||||
| |||||||
| |||||||
| 1 | organization.
| ||||||
| 2 | Service credit provided under this Section shall not exceed | ||||||
| 3 | 3 years in
any period of 10 years, unless the employee is on | ||||||
| 4 | special leave granted
by the employer for service with a | ||||||
| 5 | teacher organization. Until July 1, 2014, commencing | ||||||
| 6 | Commencing with
the fourth year in any period of 10 years, a | ||||||
| 7 | participant on such special
leave is also required to pay | ||||||
| 8 | employer contributions equal to the normal
cost as defined in | ||||||
| 9 | Section 15-155, based upon the employee's basic compensation
on | ||||||
| 10 | the date the leave begins, or based upon the actual | ||||||
| 11 | compensation
received by the employee for service with a | ||||||
| 12 | teacher organization if the
employee has so elected. Beginning | ||||||
| 13 | July 1, 2014, the employer of a participant on such special | ||||||
| 14 | leave shall pay the employer
contributions
attributable to the | ||||||
| 15 | resulting service credit, as provided in Section 15-155.
| ||||||
| 16 | (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
| ||||||
| 17 | (40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
| ||||||
| 18 | Sec. 15-126.1. Academic year. "Academic year": The | ||||||
| 19 | 12-month period
beginning on the first day of the fall term as | ||||||
| 20 | determined
by each employer, or if the employer does not have | ||||||
| 21 | an academic program
divided into terms, then beginning | ||||||
| 22 | September 1. For the purposes of Section 15-139.5 and | ||||||
| 23 | subsection (b) of Section 15-139, however, "academic year" | ||||||
| 24 | means the 12-month period beginning September 1.
| ||||||
| 25 | (Source: P.A. 84-1472.)
| ||||||
| |||||||
| |||||||
| 1 | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| ||||||
| 2 | Sec. 15-139. Retirement annuities; cancellation; suspended | ||||||
| 3 | during
employment. | ||||||
| 4 | (a) If an annuitant returns to employment for an employer
| ||||||
| 5 | within 60 days after the beginning of the retirement annuity | ||||||
| 6 | payment
period, the retirement annuity shall be cancelled, and | ||||||
| 7 | the annuitant shall
refund to the System the total amount of | ||||||
| 8 | the retirement annuity payments
which he or she received. If | ||||||
| 9 | the retirement annuity is cancelled, the
participant shall | ||||||
| 10 | continue to participate in the System.
| ||||||
| 11 | (b) If an annuitant retires prior to age 60 and receives or | ||||||
| 12 | becomes
entitled to receive during any month compensation in | ||||||
| 13 | excess of the monthly
retirement annuity (including any | ||||||
| 14 | automatic annual increases) for services
performed after the | ||||||
| 15 | date of retirement for any employer under this System, that
| ||||||
| 16 | portion of the monthly
retirement annuity provided by employer | ||||||
| 17 | contributions shall not be payable.
| ||||||
| 18 | If an annuitant retires at age 60 or over and receives
or | ||||||
| 19 | becomes entitled to receive during any academic year | ||||||
| 20 | compensation in
excess of the difference between his or her | ||||||
| 21 | highest annual earnings prior
to retirement and his or her | ||||||
| 22 | annual retirement annuity computed under Rule
1, Rule 2, Rule | ||||||
| 23 | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| ||||||
| 24 | 15-136.4,
for services performed after
the date of retirement | ||||||
| 25 | for any employer under this System, that portion of
the monthly | ||||||
| |||||||
| |||||||
| 1 | retirement annuity provided by employer contributions shall be
| ||||||
| 2 | reduced by an amount equal to the compensation that exceeds | ||||||
| 3 | such difference.
| ||||||
| 4 | However, any remuneration received for serving as a member | ||||||
| 5 | of the
Illinois Educational Labor Relations Board shall be | ||||||
| 6 | excluded from
"compensation" for the purposes of this | ||||||
| 7 | subsection (b), and serving as a
member of the Illinois | ||||||
| 8 | Educational Labor Relations Board shall not be
deemed to be a | ||||||
| 9 | return to employment for the purposes of this Section.
This | ||||||
| 10 | provision applies without regard to whether service was | ||||||
| 11 | terminated
prior to the effective date of this amendatory Act | ||||||
| 12 | of 1991. | ||||||
| 13 | "Academic year", as used in this subsection (b), means the | ||||||
| 14 | 12-month period beginning September 1.
| ||||||
| 15 | (c) If an employer certifies that an annuitant has been | ||||||
| 16 | reemployed
on a permanent and continuous basis or in a position
| ||||||
| 17 | in which the annuitant is expected to serve for at least 9 | ||||||
| 18 | months, the
annuitant shall resume his or her status as a | ||||||
| 19 | participating employee
and shall be entitled to all rights | ||||||
| 20 | applicable to
participating employees upon filing with the | ||||||
| 21 | board an
election to forgo all annuity payments during the | ||||||
| 22 | period
of reemployment. Upon subsequent retirement, the | ||||||
| 23 | retirement
annuity shall consist of the annuity which was | ||||||
| 24 | terminated by the reemployment,
plus the additional retirement | ||||||
| 25 | annuity based upon service
granted during the period of | ||||||
| 26 | reemployment, but the combined retirement
annuity shall not | ||||||
| |||||||
| |||||||
| 1 | exceed the maximum
annuity applicable on the date of the last | ||||||
| 2 | retirement.
| ||||||
| 3 | The total service and earnings credited before and after | ||||||
| 4 | the initial
date of retirement shall be considered in | ||||||
| 5 | determining eligibility of the
employee or the employee's | ||||||
| 6 | beneficiary to benefits under this
Article, and in calculating | ||||||
| 7 | final rate of earnings.
| ||||||
| 8 | In determining the death benefit
payable to a beneficiary | ||||||
| 9 | of an annuitant who again becomes a participating
employee | ||||||
| 10 | under this Section, accumulated normal and additional
| ||||||
| 11 | contributions shall be considered as the sum of the accumulated | ||||||
| 12 | normal and
additional contributions at the date of initial | ||||||
| 13 | retirement and the
accumulated normal and additional | ||||||
| 14 | contributions credited after that date,
less the sum of the | ||||||
| 15 | annuity payments received by the annuitant.
| ||||||
| 16 | The survivors insurance benefits provided under Section | ||||||
| 17 | 15-145 shall not
be applicable to an annuitant who resumes his | ||||||
| 18 | or her status as a
participating employee, unless the | ||||||
| 19 | annuitant, at the time of initial
retirement, has a survivors | ||||||
| 20 | insurance beneficiary who could qualify
for such benefits.
| ||||||
| 21 | If the participant's employment is terminated because of | ||||||
| 22 | circumstances
other than death before 9 months from the date of | ||||||
| 23 | reemployment, the
provisions of this Section regarding | ||||||
| 24 | resumption of status as a
participating employee shall not | ||||||
| 25 | apply. The normal and survivors insurance
contributions which | ||||||
| 26 | are deducted during this period shall be refunded to
the | ||||||
| |||||||
| |||||||
| 1 | annuitant without interest, and subsequent benefits under this | ||||||
| 2 | Article
shall be the same as those which were applicable prior | ||||||
| 3 | to the date the
annuitant resumed employment.
| ||||||
| 4 | The amendments made to this Section by this amendatory Act | ||||||
| 5 | of the 91st
General Assembly apply without regard to whether | ||||||
| 6 | the annuitant was in service
on or after the effective date of | ||||||
| 7 | this amendatory Act.
| ||||||
| 8 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
| 9 | (40 ILCS 5/15-139.5) | ||||||
| 10 | Sec. 15-139.5. Return to work by affected annuitant; notice | ||||||
| 11 | and contribution by employer. | ||||||
| 12 | (a) An employer who employs or re-employs a person | ||||||
| 13 | receiving a retirement annuity from the System in an academic | ||||||
| 14 | year beginning on or after August 1, 2014 2013 must notify the | ||||||
| 15 | System of that employment within 60 days after employing the | ||||||
| 16 | annuitant. The notice must include a summary copy of the | ||||||
| 17 | contract of employment or ; if no written contract of employment | ||||||
| 18 | exists, then the notice must specify the rate of compensation | ||||||
| 19 | and the anticipated length of employment of that annuitant. The | ||||||
| 20 | notice must specify whether the annuitant will be compensated | ||||||
| 21 | from federal, corporate, foundation, or trust funds or grants | ||||||
| 22 | of State funds that identify the principal investigator by | ||||||
| 23 | name. The notice must include the employer's determination of | ||||||
| 24 | whether or not the annuitant is an "affected annuitant" as | ||||||
| 25 | defined in subsection (b). | ||||||
| |||||||
| |||||||
| 1 | The employer must also record, document, and certify to the | ||||||
| 2 | System (i) the number of paid days and paid weeks worked by the | ||||||
| 3 | annuitant in the academic year, (ii) the amount of compensation | ||||||
| 4 | paid to the annuitant for employment during the academic year, | ||||||
| 5 | and (ii) (iii) the amount of that compensation, if any, that | ||||||
| 6 | comes from either federal, corporate, foundation, or trust | ||||||
| 7 | funds or grants of State funds that identify the principal | ||||||
| 8 | investigator by name. | ||||||
| 9 | As used in this Section, "academic year" means the 12-month | ||||||
| 10 | period beginning September 1. has the meaning ascribed to that | ||||||
| 11 | term in Section 15-126.1; "paid day" means a day on which a | ||||||
| 12 | person performs personal services for an employer and for which | ||||||
| 13 | the person is compensated by the employer; and "paid week" | ||||||
| 14 | means a calendar week in which a person has at least one paid | ||||||
| 15 | day. | ||||||
| 16 | For the purposes of this Section, an annuitant whose | ||||||
| 17 | employment by an employer extends over more than one academic | ||||||
| 18 | year shall be deemed to be re-employed by that employer in each | ||||||
| 19 | of those academic years. | ||||||
| 20 | The System may specify the time, form, and manner of | ||||||
| 21 | providing the determinations, notifications, certifications, | ||||||
| 22 | and documentation required under this Section. | ||||||
| 23 | (b) A person receiving a retirement annuity from the System | ||||||
| 24 | becomes an "affected annuitant" on the first day of the | ||||||
| 25 | academic year following the academic year in which the | ||||||
| 26 | annuitant first meets both of the following condition | ||||||
| |||||||
| |||||||
| 1 | conditions: | ||||||
| 2 | (1) (Blank). While receiving a retirement annuity | ||||||
| 3 | under this Article, the annuitant has been employed on or | ||||||
| 4 | after August 1, 2013 by one or more employers under this | ||||||
| 5 | Article for a total of more than 18 paid weeks (which need | ||||||
| 6 | not have been with the same employer or in the same | ||||||
| 7 | academic year); except that any periods of employment for | ||||||
| 8 | which the annuitant was compensated solely from federal, | ||||||
| 9 | corporate, foundation, or trust funds or grants of State | ||||||
| 10 | funds that identify the principal investigator by name are | ||||||
| 11 | excluded. | ||||||
| 12 | (2) While receiving a retirement annuity under this | ||||||
| 13 | Article, the annuitant was employed on or after August 1, | ||||||
| 14 | 2014 2013 by one or more employers under this Article and | ||||||
| 15 | received
or became entitled to receive during an academic | ||||||
| 16 | year compensation for that employment in excess of 40% of | ||||||
| 17 | his or her highest annual earnings prior
to retirement; | ||||||
| 18 | except that compensation paid from federal, corporate, | ||||||
| 19 | foundation, or trust funds or grants of State funds that | ||||||
| 20 | identify the principal investigator by name is excluded. | ||||||
| 21 | A person who becomes an affected annuitant remains an | ||||||
| 22 | affected annuitant, except for any period during which the | ||||||
| 23 | person returns to active service and does not receive a | ||||||
| 24 | retirement annuity from the System. | ||||||
| 25 | (c) It is the obligation of the employer to determine | ||||||
| 26 | whether an annuitant is an affected annuitant before employing | ||||||
| |||||||
| |||||||
| 1 | the annuitant. For that purpose the employer may require the | ||||||
| 2 | annuitant to disclose and document his or her relevant prior | ||||||
| 3 | employment and earnings history. Failure of the employer to | ||||||
| 4 | make this determination correctly and in a timely manner or to | ||||||
| 5 | include this determination with the notification required | ||||||
| 6 | under subsection (a) does not excuse the employer from making | ||||||
| 7 | the contribution required under subsection (e). | ||||||
| 8 | The System may assist the employer in determining whether a | ||||||
| 9 | person is an affected annuitant. The System shall inform the | ||||||
| 10 | employer if it discovers that the employer's determination is | ||||||
| 11 | inconsistent with the employment and earnings information in | ||||||
| 12 | the System's records. | ||||||
| 13 | (d) Upon the request of an annuitant, the System shall | ||||||
| 14 | certify to the annuitant or the employer the following | ||||||
| 15 | information as reported by the employers, as that information | ||||||
| 16 | is indicated in the records of the System: (i) the annuitant's | ||||||
| 17 | highest annual earnings prior
to retirement, (ii) the number of | ||||||
| 18 | paid weeks worked by the annuitant for an employer on or after | ||||||
| 19 | August 1, 2013, (iii) the compensation paid for that employment | ||||||
| 20 | in each academic year, and (iii) (iv) whether any of that | ||||||
| 21 | employment or compensation has been certified to the System as | ||||||
| 22 | being paid from federal, corporate, foundation, or trust funds | ||||||
| 23 | or grants of State funds that identify the principal | ||||||
| 24 | investigator by name. The System shall only be required to | ||||||
| 25 | certify information that is received from the employers. | ||||||
| 26 | (e) In addition to the requirements of subsection (a), an | ||||||
| |||||||
| |||||||
| 1 | employer who employs an affected annuitant must pay to the | ||||||
| 2 | System an employer contribution in the amount and manner | ||||||
| 3 | provided in this Section, unless the annuitant is compensated | ||||||
| 4 | by that employer solely from federal, corporate, foundation, or | ||||||
| 5 | trust funds or grants of State funds that identify the | ||||||
| 6 | principal investigator by name. | ||||||
| 7 | The employer contribution required under this Section for | ||||||
| 8 | employment of an affected annuitant in an academic year shall | ||||||
| 9 | be equal to 12 times the amount of the gross monthly retirement | ||||||
| 10 | annuity payable to the annuitant for the month in which the | ||||||
| 11 | first paid day of that employment in that academic year occurs, | ||||||
| 12 | after any reduction in that annuity that may be imposed under | ||||||
| 13 | subsection (b) of Section 15-139. | ||||||
| 14 | If an affected annuitant is employed by more than one | ||||||
| 15 | employer in an academic year, the employer contribution | ||||||
| 16 | required under this Section shall be divided among those | ||||||
| 17 | employers in proportion to their respective portions of the | ||||||
| 18 | total compensation paid to the affected annuitant for that | ||||||
| 19 | employment during that academic year. | ||||||
| 20 | If the System determines that an employer, without | ||||||
| 21 | reasonable justification, has failed to make the determination | ||||||
| 22 | of affected annuitant status correctly and in a timely manner, | ||||||
| 23 | or has failed to notify the System or to correctly document or | ||||||
| 24 | certify to the System any of the information required by this | ||||||
| 25 | Section, and that failure results in a delayed determination by | ||||||
| 26 | the System that a contribution is payable under this Section, | ||||||
| |||||||
| |||||||
| 1 | then the amount of that employer's contribution otherwise | ||||||
| 2 | determined under this Section shall be doubled. | ||||||
| 3 | The System shall deem a failure to correctly determine the | ||||||
| 4 | annuitant's status to be justified if the employer establishes | ||||||
| 5 | to the System's satisfaction that the employer, after due | ||||||
| 6 | diligence, made an erroneous determination that the annuitant | ||||||
| 7 | was not an affected annuitant due to reasonable reliance on | ||||||
| 8 | false or misleading information provided by the annuitant or | ||||||
| 9 | another employer, or an error in the annuitant's official | ||||||
| 10 | employment or earnings records. | ||||||
| 11 | (f) Whenever the System determines that an employer is | ||||||
| 12 | liable for a contribution under this Section, it shall so | ||||||
| 13 | notify the employer and certify the amount of the contribution. | ||||||
| 14 | The employer may pay the required contribution without interest | ||||||
| 15 | at any time within one year after receipt of the certification. | ||||||
| 16 | If the employer fails to pay within that year, then interest | ||||||
| 17 | shall be charged at a rate equal to the System's prescribed | ||||||
| 18 | rate of interest, compounded annually from the 366th day after | ||||||
| 19 | receipt of the certification from the System. Payment must be | ||||||
| 20 | concluded within 2 years after receipt of the certification by | ||||||
| 21 | the employer. If the employer fails to make complete payment, | ||||||
| 22 | including applicable interest, within 2 years, then the System | ||||||
| 23 | may, after giving notice to the employer, certify the | ||||||
| 24 | delinquent amount to the State Comptroller, and the Comptroller | ||||||
| 25 | shall thereupon deduct the certified delinquent amount from | ||||||
| 26 | State funds payable to the employer and pay them instead to the | ||||||
| |||||||
| |||||||
| 1 | System. | ||||||
| 2 | (g) If an employer is required to make a contribution to | ||||||
| 3 | the System as a result of employing an affected annuitant and | ||||||
| 4 | the annuitant later elects to forgo his or her annuity in that | ||||||
| 5 | same academic year pursuant to subsection (c) of Section | ||||||
| 6 | 15-139, then the required contribution by the employer shall be | ||||||
| 7 | waived, and if the contribution has already been paid, it shall | ||||||
| 8 | be refunded to the employer without interest. | ||||||
| 9 | (h) Notwithstanding any other provision of this Article, | ||||||
| 10 | the employer contribution required under this Section shall not | ||||||
| 11 | be included in the determination of any benefit under this | ||||||
| 12 | Article or any other Article of this Code, regardless of | ||||||
| 13 | whether the annuitant returns to active service, and is in | ||||||
| 14 | addition to any other State or employer contribution required | ||||||
| 15 | under this Article. | ||||||
| 16 | (i) Notwithstanding any other provision of this Section to | ||||||
| 17 | the contrary, if an employer employs an affected annuitant in | ||||||
| 18 | order to continue critical operations in the event of either an | ||||||
| 19 | employee's unforeseen illness, accident, or death or a | ||||||
| 20 | catastrophic incident or disaster, then, for one and only one | ||||||
| 21 | academic year, the employer is not required to pay the | ||||||
| 22 | contribution set forth in this Section for that annuitant. The | ||||||
| 23 | employer shall, however, immediately notify the System upon | ||||||
| 24 | employing a person subject to this subsection (i). For the | ||||||
| 25 | purposes of this subsection (i), "critical operations" means | ||||||
| 26 | teaching services, medical services, student welfare services, | ||||||
| |||||||
| |||||||
| 1 | and any other services that are critical to the mission of the | ||||||
| 2 | employer.
| ||||||
| 3 | (j) This Section shall be applied and coordinated with the | ||||||
| 4 | regulatory obligations contained in the State Universities | ||||||
| 5 | Civil Service Act. This Section shall not apply to an annuitant | ||||||
| 6 | if the employer of that annuitant provides documentation to the | ||||||
| 7 | System that (1) the annuitant is employed in a status | ||||||
| 8 | appointment position, as that term is defined in 80 Ill. Adm. | ||||||
| 9 | Code 250.80, and (2) due to obligations contained under the | ||||||
| 10 | State Universities Civil Service Act, the employer does not | ||||||
| 11 | have the ability to limit the earnings or duration of | ||||||
| 12 | employment for the annuitant while employed in the status | ||||||
| 13 | appointment position. | ||||||
| 14 | (Source: P.A. 97-968, eff. 8-16-12.)
| ||||||
| 15 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
| 16 | Sec. 15-155. State and employer Employer contributions.
| ||||||
| 17 | (a) The State of Illinois shall make contributions by | ||||||
| 18 | appropriations of
amounts which, together with contributions | ||||||
| 19 | paid by employers, the other employer contributions from trust,
| ||||||
| 20 | federal, and other funds, employee contributions, income from | ||||||
| 21 | investments,
and other income of this System, will be | ||||||
| 22 | sufficient to meet the cost of
maintaining and administering | ||||||
| 23 | the System on a 90% funded basis in accordance
with actuarial | ||||||
| 24 | recommendations.
| ||||||
| 25 | The Board shall determine the amount of State and employer | ||||||
| |||||||
| |||||||
| 1 | contributions required for
each fiscal year on the basis of the | ||||||
| 2 | actuarial tables and other assumptions
adopted by the Board and | ||||||
| 3 | the recommendations of the System's actuary, using the formulas | ||||||
| 4 | provided in this Section formula
in subsection (a-1).
| ||||||
| 5 | The System shall make all necessary assumptions to | ||||||
| 6 | determine and allocate total demographic gains and losses for | ||||||
| 7 | the purpose of determining State and employer contributions | ||||||
| 8 | under this Section. Such assumptions shall include but not be | ||||||
| 9 | limited to the rates of retirement, termination, disability, | ||||||
| 10 | and mortality. | ||||||
| 11 | (a-1) For State fiscal years 2012 through 2014 through | ||||||
| 12 | 2045, the minimum contribution
to the System to be made by the | ||||||
| 13 | State for each fiscal year shall be an amount
determined by the | ||||||
| 14 | System to be sufficient to bring the total assets of the
System | ||||||
| 15 | up to 90% of the total actuarial liabilities of the System by | ||||||
| 16 | the end of
State fiscal year 2045. In making these | ||||||
| 17 | determinations, the required State
contribution shall be | ||||||
| 18 | calculated each year as a level percentage of payroll
over the | ||||||
| 19 | years remaining to and including fiscal year 2045 and shall be
| ||||||
| 20 | determined under the projected unit credit actuarial cost | ||||||
| 21 | method.
| ||||||
| 22 | For State fiscal years 2015 through 2044, the minimum | ||||||
| 23 | contribution
to the System to be made by the State for each | ||||||
| 24 | fiscal year shall be an amount
determined by the System to be | ||||||
| 25 | sufficient to bring the total actuarial assets of the
System | ||||||
| 26 | attributable to the State up to 100% of the total actuarial | ||||||
| |||||||
| |||||||
| 1 | liabilities of the System attributable to the State by the end | ||||||
| 2 | of
State fiscal year 2044. In making these determinations, the | ||||||
| 3 | required State
contribution shall be calculated each year as a | ||||||
| 4 | level percentage of payroll
over the years remaining to and | ||||||
| 5 | including fiscal year 2044 and shall be
determined under the | ||||||
| 6 | entry age normal actuarial cost method. | ||||||
| 7 | If at the end of State fiscal year 2044 the total actuarial | ||||||
| 8 | assets of the
System attributable to the State are less than | ||||||
| 9 | 100% of the total actuarial liabilities of the System | ||||||
| 10 | attributable to the State, the System shall determine the | ||||||
| 11 | amount necessary to bring that those assets up to 100% of those | ||||||
| 12 | liabilities and shall certify that amount as a required State | ||||||
| 13 | contribution for State fiscal year 2046, and the State shall | ||||||
| 14 | pay that amount to the System in State fiscal year 2046. | ||||||
| 15 | Beginning when the State has paid the contribution required | ||||||
| 16 | under this subsection (a-1) for fiscal year 2046, or in State | ||||||
| 17 | fiscal year 2045 if no such contribution for fiscal year 2046 | ||||||
| 18 | is required, the State has no further obligation to make | ||||||
| 19 | contributions to the System under this subsection (a-1). | ||||||
| 20 | For the purposes of this Article, "total actuarial | ||||||
| 21 | liabilities of the System attributable to the State" means the | ||||||
| 22 | total liabilities of the System less any notional liabilities | ||||||
| 23 | assigned to employer accounts under Section 15-155.2. | ||||||
| 24 | For the purposes of this Article, "total actuarial assets | ||||||
| 25 | of the System attributable to the State" means the total assets | ||||||
| 26 | of the System less any notional assets assigned to employer | ||||||
| |||||||
| |||||||
| 1 | accounts under Section 15-155.2. | ||||||
| 2 | For State fiscal years 1996 through 2005, the State | ||||||
| 3 | contribution to
the System, as a percentage of the applicable | ||||||
| 4 | employee payroll, shall be
increased in equal annual increments | ||||||
| 5 | so that by State fiscal year 2011, the
State is contributing at | ||||||
| 6 | the rate required under this Section.
| ||||||
| 7 | Notwithstanding any other provision of this Article, the | ||||||
| 8 | total required State
contribution for State fiscal year 2006 is | ||||||
| 9 | $166,641,900.
| ||||||
| 10 | Notwithstanding any other provision of this Article, the | ||||||
| 11 | total required State
contribution for State fiscal year 2007 is | ||||||
| 12 | $252,064,100.
| ||||||
| 13 | For each of State fiscal years 2008 through 2009, the State | ||||||
| 14 | contribution to
the System, as a percentage of the applicable | ||||||
| 15 | employee payroll, shall be
increased in equal annual increments | ||||||
| 16 | from the required State contribution for State fiscal year | ||||||
| 17 | 2007, so that by State fiscal year 2011, the
State is | ||||||
| 18 | contributing at the rate otherwise required under this Section.
| ||||||
| 19 | Notwithstanding any other provision of this Article, the | ||||||
| 20 | total required State contribution for State fiscal year 2010 is | ||||||
| 21 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
| 22 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
| 23 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
| 24 | share of bond sale expenses determined by the System's share of | ||||||
| 25 | total bond proceeds, (ii) any amounts received from the General | ||||||
| 26 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
| |||||||
| |||||||
| 1 | proceeds due to the issuance of discounted bonds, if | ||||||
| 2 | applicable. | ||||||
| 3 | Notwithstanding any other provision of this Article, the
| ||||||
| 4 | total required State contribution for State fiscal year 2011 is
| ||||||
| 5 | the amount recertified by the System on or before April 1, 2011 | ||||||
| 6 | pursuant to Section 15-165 and shall be made from the State | ||||||
| 7 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
| 8 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
| 9 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
| 10 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
| 11 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
| 12 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
| 13 | discounted bonds, if
applicable. | ||||||
| 14 | Beginning in State fiscal year 2046, the minimum State | ||||||
| 15 | contribution for
each fiscal year shall be the amount needed to | ||||||
| 16 | maintain the total assets of
the System at 90% of the total | ||||||
| 17 | actuarial liabilities of the System.
| ||||||
| 18 | Amounts received by the System pursuant to Section 25 of | ||||||
| 19 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
| 20 | Finance Act in any fiscal year do not reduce and do not | ||||||
| 21 | constitute payment of any portion of the minimum State | ||||||
| 22 | contribution required under this Article in that fiscal year. | ||||||
| 23 | Such amounts shall not reduce, and shall not be included in the | ||||||
| 24 | calculation of, the required State contributions under this | ||||||
| 25 | Article in any future year until the System has reached a | ||||||
| 26 | funding ratio of at least 90%. A reference in this Article to | ||||||
| |||||||
| |||||||
| 1 | the "required State contribution" or any substantially similar | ||||||
| 2 | term does not include or apply to any amounts payable to the | ||||||
| 3 | System under Section 25 of the Budget Stabilization Act. | ||||||
| 4 | Notwithstanding any other provision of this Section, the | ||||||
| 5 | required State
contribution for State fiscal year 2005 and for | ||||||
| 6 | fiscal year 2008 through and each fiscal year 2014 thereafter, | ||||||
| 7 | as
calculated under this Section and
certified under Section | ||||||
| 8 | 15-165, shall not exceed an amount equal to (i) the
amount of | ||||||
| 9 | the required State contribution that would have been calculated | ||||||
| 10 | under
this Section for that fiscal year if the System had not | ||||||
| 11 | received any payments
under subsection (d) of Section 7.2 of | ||||||
| 12 | the General Obligation Bond Act, minus
(ii) the portion of the | ||||||
| 13 | State's total debt service payments for that fiscal
year on the | ||||||
| 14 | bonds issued in fiscal year 2003 for the purposes of that | ||||||
| 15 | Section 7.2, as determined
and certified by the Comptroller, | ||||||
| 16 | that is the same as the System's portion of
the total moneys | ||||||
| 17 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
| 18 | Obligation Bond Act. In determining this maximum for State | ||||||
| 19 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
| 20 | in item (i) shall be increased, as a percentage of the | ||||||
| 21 | applicable employee payroll, in equal increments calculated | ||||||
| 22 | from the sum of the required State contribution for State | ||||||
| 23 | fiscal year 2007 plus the applicable portion of the State's | ||||||
| 24 | total debt service payments for fiscal year 2007 on the bonds | ||||||
| 25 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
| 26 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
| |||||||
| |||||||
| 1 | 2011, the
State is contributing at the rate otherwise required | ||||||
| 2 | under this Section.
| ||||||
| 3 | (a-5) In addition to the contributions that the State is | ||||||
| 4 | otherwise required to make under this Article, beginning in | ||||||
| 5 | fiscal year 2015 and in each fiscal year thereafter until the | ||||||
| 6 | State has no further obligation to make contributions to the | ||||||
| 7 | System under subsection (a-1), the State shall be required to | ||||||
| 8 | make an additional contribution to the System equal to the | ||||||
| 9 | projected dollar amount of contributions to be made by | ||||||
| 10 | employers pursuant to items (i) and (vi) of subsection (a-10) | ||||||
| 11 | for that fiscal year. Contributions required to be made | ||||||
| 12 | pursuant to this subsection do not reduce and do not constitute | ||||||
| 13 | payment of any portion of the required State contribution made | ||||||
| 14 | to the System pursuant to subsection (a-1) in that fiscal year. | ||||||
| 15 | A contribution required to be made pursuant to this subsection | ||||||
| 16 | shall not reduce, and shall not be included in the calculation | ||||||
| 17 | of, the required contribution to be made by the State pursuant | ||||||
| 18 | to subsection (a-1) in any future year, until the System has | ||||||
| 19 | received the contribution pursuant to this subsection. | ||||||
| 20 | (a-10) Subject to the limitations provided in subsection | ||||||
| 21 | (a-15) of this Section, beginning with State fiscal year 2015, | ||||||
| 22 | each employer under this Article shall pay to the System a | ||||||
| 23 | required contribution determined as a percentage of projected | ||||||
| 24 | payroll and sufficient to produce an annual amount equal to: | ||||||
| 25 | (i) the employer normal cost for that fiscal year for | ||||||
| 26 | participating employees of that employer (excluding costs | ||||||
| |||||||
| |||||||
| 1 | attributable to any new benefit increases approved by that | ||||||
| 2 | employer pursuant to Section 15-198), determined as a | ||||||
| 3 | percentage of applicable payroll; plus | ||||||
| 4 | (ii) the amount required for that fiscal year to | ||||||
| 5 | amortize any unfunded actuarial accrued liability | ||||||
| 6 | associated with the present value of liabilities | ||||||
| 7 | attributable to the employer's account under Section | ||||||
| 8 | 15-155.2 (excluding costs attributable to any new benefit | ||||||
| 9 | increases approved by that employer pursuant to Section | ||||||
| 10 | 15-198), determined
as a level percentage of payroll over a | ||||||
| 11 | 30-year rolling amortization period; plus | ||||||
| 12 | (iii) that employer's normal cost for that fiscal year | ||||||
| 13 | attributable to all new benefit increases approved by that | ||||||
| 14 | employer pursuant to Section 15-198; plus | ||||||
| 15 | (iv) the amounts required for that fiscal year to | ||||||
| 16 | amortize any unfunded actuarial accrued liability | ||||||
| 17 | associated with the present value of each new benefit | ||||||
| 18 | increase approved by that employer pursuant to Section | ||||||
| 19 | 15-198, determined as a level percentage of payroll over a | ||||||
| 20 | fixed 10-year amortization period; plus | ||||||
| 21 | (v) beginning when the State has no further obligation | ||||||
| 22 | to make contributions to the System under subsection (a-1), | ||||||
| 23 | the amount required for that fiscal year to amortize any | ||||||
| 24 | unfunded actuarial accrued liability of the System not | ||||||
| 25 | attributable to any employer's account under Section | ||||||
| 26 | 15-155.2, determined
as a level percentage of payroll over | ||||||
| |||||||
| |||||||
| 1 | a 30-year rolling amortization period; plus | ||||||
| 2 | (vi) the amount of employer contributions for that | ||||||
| 3 | fiscal year required for employees of that employer who | ||||||
| 4 | participate in the self-managed plan under Section | ||||||
| 5 | 15-158.2. | ||||||
| 6 | In determining contributions required under item (i) of | ||||||
| 7 | this subsection, the System shall determine an aggregate rate | ||||||
| 8 | for all employers, expressed as a percentage of projected | ||||||
| 9 | payroll, exclusive of costs attributable to any new benefit | ||||||
| 10 | increase approved pursuant to Section 15-198 and exclusive of | ||||||
| 11 | employer contributions required for participating employees of | ||||||
| 12 | the self-managed plan under Section 15-158.2. | ||||||
| 13 | In determining contributions required under item (ii) of | ||||||
| 14 | this subsection, the System shall determine an individual rate | ||||||
| 15 | determined as a percentage of projected payroll applicable to | ||||||
| 16 | each employer based on that employer's individual account under | ||||||
| 17 | Section 15-155.2, exclusive of (i) any liabilities | ||||||
| 18 | attributable to the System as a whole rather than to the | ||||||
| 19 | employer's account and (ii) costs attributable to any new | ||||||
| 20 | benefit increase approved pursuant to Section 15-198. | ||||||
| 21 | In determining contributions required under items (iii) | ||||||
| 22 | and (iv) of this subsection, the System shall determine an | ||||||
| 23 | individual rate determined as a percentage of projected payroll | ||||||
| 24 | applicable to each employer that approves a new benefit | ||||||
| 25 | increase pursuant to Section 15-198. | ||||||
| 26 | In determining contributions required under item (v) of | ||||||
| |||||||
| |||||||
| 1 | this subsection, the System shall determine an aggregate rate | ||||||
| 2 | determined as a percentage of projected payroll applicable to | ||||||
| 3 | all employers under the System. | ||||||
| 4 | The contributions required under this subsection (a-10) | ||||||
| 5 | shall be paid by an employer concurrently with that employer's | ||||||
| 6 | payroll payment period. | ||||||
| 7 | (a-15) For State fiscal year 2015, the required | ||||||
| 8 | contribution of employers under item (i) of subsection (a-10) | ||||||
| 9 | shall be reduced to an amount equal to 0.5% of applicable | ||||||
| 10 | payroll. For each fiscal year thereafter, the required | ||||||
| 11 | contribution of employers under item (i) of subsection (a-10) | ||||||
| 12 | shall be the percentage of projected payroll required under | ||||||
| 13 | this subsection (a-15) for the previous fiscal year, increased | ||||||
| 14 | by 0.5% of payroll, except that when the percentage of | ||||||
| 15 | projected payroll required under this subsection (a-15) first | ||||||
| 16 | reaches the percentage of payroll required under item (i) of | ||||||
| 17 | subsection (a-10), this subsection (a-15) shall cease to apply. | ||||||
| 18 | For State fiscal year 2015, the required contribution of | ||||||
| 19 | employers under item (vi) of subsection (a-10) shall be reduced | ||||||
| 20 | to an amount equal to 0.5% of applicable payroll. For each | ||||||
| 21 | fiscal year thereafter, the required contribution of employers | ||||||
| 22 | under item (vi) of subsection (a-10) shall be the percentage of | ||||||
| 23 | projected payroll required under this subsection (a-15) for the | ||||||
| 24 | previous fiscal year, increased by 0.5% of payroll, except that | ||||||
| 25 | when the percentage of payroll required under this subsection | ||||||
| 26 | (a-15) first reaches the percentage of payroll required under | ||||||
| |||||||
| |||||||
| 1 | item (vi) of subsection (a-10), this subsection (a-15) shall | ||||||
| 2 | cease to apply. | ||||||
| 3 | The limitations in this subsection (a-15) do not apply to | ||||||
| 4 | (i) employer contributions required to be made under subsection | ||||||
| 5 | (b) of this Section for employees who are compensated out of | ||||||
| 6 | trust or federal funds, (ii) contributions required to be made | ||||||
| 7 | by the City of Champaign or the City of Urbana for individuals | ||||||
| 8 | described under subsection (h) of Section 15-107, (iii) | ||||||
| 9 | contributions required to be made by a teacher organization for | ||||||
| 10 | individuals described under subsection (i) of Section 15-107, | ||||||
| 11 | or (iv) contributions required to be made by a teacher | ||||||
| 12 | organization for individuals on special leave of absence under | ||||||
| 13 | Section 15-113.2. | ||||||
| 14 | (b) If an employee is paid from trust or federal funds, the | ||||||
| 15 | employer
shall pay to the Board contributions from those funds | ||||||
| 16 | which are
sufficient to cover the accruing normal costs on | ||||||
| 17 | behalf of the employee.
However, universities having employees | ||||||
| 18 | who are compensated out of local
auxiliary funds, income funds, | ||||||
| 19 | or service enterprise funds are not required
to pay such | ||||||
| 20 | contributions on behalf of those employees prior to July 1, | ||||||
| 21 | 2014. Beginning July 1, 2014, universities having employees who | ||||||
| 22 | are compensated out of local auxiliary funds, income funds, or | ||||||
| 23 | service enterprise funds shall pay to the Board contributions | ||||||
| 24 | from those funds that are sufficient to cover the accruing | ||||||
| 25 | normal costs on behalf of those employees. The local auxiliary
| ||||||
| 26 | funds, income funds, and service enterprise funds of | ||||||
| |||||||
| |||||||
| 1 | universities shall not be
considered trust funds for the | ||||||
| 2 | purpose of this Article, but funds of alumni
associations, | ||||||
| 3 | foundations, and athletic associations which are affiliated | ||||||
| 4 | with
the universities included as employers under this Article | ||||||
| 5 | and other employers
which do not receive State appropriations | ||||||
| 6 | are considered to be trust funds for
the purpose of this | ||||||
| 7 | Article.
| ||||||
| 8 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
| 9 | each make
employer contributions to this System for their | ||||||
| 10 | respective firefighter
employees who participate in this | ||||||
| 11 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
| 12 | of contributions to be made by those municipalities shall
be | ||||||
| 13 | determined annually by the Board on the basis of the actuarial | ||||||
| 14 | assumptions
adopted by the Board and the recommendations of the | ||||||
| 15 | actuary, and shall be
expressed as a percentage of salary for | ||||||
| 16 | each such employee. The Board shall
certify the rate to the | ||||||
| 17 | affected municipalities as soon as may be practical.
The | ||||||
| 18 | employer contributions required under this subsection shall be | ||||||
| 19 | remitted by
the municipality to the System at the same time and | ||||||
| 20 | in the same manner as
employee contributions.
| ||||||
| 21 | (c) Through State fiscal year 1995: The total employer | ||||||
| 22 | contribution shall
be apportioned among the various funds of | ||||||
| 23 | the State and other employers,
whether trust, federal, or other | ||||||
| 24 | funds, in accordance with actuarial procedures
approved by the | ||||||
| 25 | Board. State of Illinois contributions for employers receiving
| ||||||
| 26 | State appropriations for personal services shall be payable | ||||||
| |||||||
| |||||||
| 1 | from appropriations
made to the employers or to the System. The | ||||||
| 2 | contributions for Class I
community colleges covering earnings | ||||||
| 3 | other than those paid from trust and
federal funds, shall be | ||||||
| 4 | payable solely from appropriations to the Illinois
Community | ||||||
| 5 | College Board or the System for employer contributions.
| ||||||
| 6 | (d) Beginning in State fiscal year 1996, the required State | ||||||
| 7 | contributions
to the System shall be appropriated directly to | ||||||
| 8 | the System and shall be payable
through vouchers issued in | ||||||
| 9 | accordance with subsection (c) of Section 15-165, except as | ||||||
| 10 | provided in subsection (g).
| ||||||
| 11 | (e) The State Comptroller shall draw warrants payable to | ||||||
| 12 | the System upon
proper certification by the System or by the | ||||||
| 13 | employer in accordance with the
appropriation laws and this | ||||||
| 14 | Code.
| ||||||
| 15 | (f) Normal costs under this Section means liability for
| ||||||
| 16 | pensions and other benefits which accrues to the System because | ||||||
| 17 | of the
credits earned for service rendered by the participants | ||||||
| 18 | during the
fiscal year and expenses of administering the | ||||||
| 19 | System, but shall not
include the principal of or any | ||||||
| 20 | redemption premium or interest on any bonds
issued by the Board | ||||||
| 21 | or any expenses incurred or deposits required in
connection | ||||||
| 22 | therewith.
| ||||||
| 23 | (g) If the amount of a participant's earnings for any | ||||||
| 24 | academic year used to determine the final rate of earnings, | ||||||
| 25 | determined on a full-time equivalent basis, exceeds the amount | ||||||
| 26 | of his or her earnings with the same employer for the previous | ||||||
| |||||||
| |||||||
| 1 | academic year, determined on a full-time equivalent basis, by | ||||||
| 2 | more than 6%, the participant's employer shall pay to the | ||||||
| 3 | System, in addition to all other payments required under this | ||||||
| 4 | Section and in accordance with guidelines established by the | ||||||
| 5 | System, the present value of the increase in benefits resulting | ||||||
| 6 | from the portion of the increase in earnings that is in excess | ||||||
| 7 | of 6%. This present value shall be computed by the System on | ||||||
| 8 | the basis of the actuarial assumptions and tables used in the | ||||||
| 9 | most recent actuarial valuation of the System that is available | ||||||
| 10 | at the time of the computation. The System may require the | ||||||
| 11 | employer to provide any pertinent information or | ||||||
| 12 | documentation. | ||||||
| 13 | Whenever it determines that a payment is or may be required | ||||||
| 14 | under this subsection (g), the System shall calculate the | ||||||
| 15 | amount of the payment and bill the employer for that amount. | ||||||
| 16 | The bill shall specify the calculations used to determine the | ||||||
| 17 | amount due. If the employer disputes the amount of the bill, it | ||||||
| 18 | may, within 30 days after receipt of the bill, apply to the | ||||||
| 19 | System in writing for a recalculation. The application must | ||||||
| 20 | specify in detail the grounds of the dispute and, if the | ||||||
| 21 | employer asserts that the calculation is subject to subsection | ||||||
| 22 | (h) or (i) of this Section, must include an affidavit setting | ||||||
| 23 | forth and attesting to all facts within the employer's | ||||||
| 24 | knowledge that are pertinent to the applicability of subsection | ||||||
| 25 | (h) or (i). Upon receiving a timely application for | ||||||
| 26 | recalculation, the System shall review the application and, if | ||||||
| |||||||
| |||||||
| 1 | appropriate, recalculate the amount due.
| ||||||
| 2 | The employer contributions required under this subsection | ||||||
| 3 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
| 4 | after receipt of the bill. If the employer contributions are | ||||||
| 5 | not paid within 90 days after receipt of the bill, then | ||||||
| 6 | interest will be charged at a rate equal to the System's annual | ||||||
| 7 | actuarially assumed rate of return on investment compounded | ||||||
| 8 | annually from the 91st day after receipt of the bill. Payments | ||||||
| 9 | must be concluded within 3 years after the employer's receipt | ||||||
| 10 | of the bill. | ||||||
| 11 | (h) This subsection (h) applies only to (1) payments made | ||||||
| 12 | or salary increases given on or after June 1, 2005 but before | ||||||
| 13 | July 1, 2011 and (2) payments made or salary increases given | ||||||
| 14 | after the limitation on employer contributions under | ||||||
| 15 | subsection (a-15) of Section 15-155 ceases to apply to | ||||||
| 16 | contributions under item (i) of subsection (a-10) of that | ||||||
| 17 | Section. The changes made by Public Act 94-1057 shall not | ||||||
| 18 | require the System to refund any payments received before July | ||||||
| 19 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
| 20 | When assessing payment for any amount due under subsection | ||||||
| 21 | (g), the System shall exclude earnings increases paid to | ||||||
| 22 | participants under contracts or collective bargaining | ||||||
| 23 | agreements entered into, amended, or renewed before June 1, | ||||||
| 24 | 2005.
| ||||||
| 25 | When assessing payment for any amount due under subsection | ||||||
| 26 | (g), the System shall exclude earnings increases paid to a | ||||||
| |||||||
| |||||||
| 1 | participant at a time when the participant is 10 or more years | ||||||
| 2 | from retirement eligibility under Section 15-135.
| ||||||
| 3 | When assessing payment for any amount due under subsection | ||||||
| 4 | (g), the System shall exclude earnings increases resulting from | ||||||
| 5 | overload work, including a contract for summer teaching, or | ||||||
| 6 | overtime when the employer has certified to the System, and the | ||||||
| 7 | System has approved the certification, that: (i) in the case of | ||||||
| 8 | overloads (A) the overload work is for the sole purpose of | ||||||
| 9 | academic instruction in excess of the standard number of | ||||||
| 10 | instruction hours for a full-time employee occurring during the | ||||||
| 11 | academic year that the overload is paid and (B) the earnings | ||||||
| 12 | increases are equal to or less than the rate of pay for | ||||||
| 13 | academic instruction computed using the participant's current | ||||||
| 14 | salary rate and work schedule; and (ii) in the case of | ||||||
| 15 | overtime, the overtime was necessary for the educational | ||||||
| 16 | mission. | ||||||
| 17 | When assessing payment for any amount due under subsection | ||||||
| 18 | (g), the System shall exclude any earnings increase resulting | ||||||
| 19 | from (i) a promotion for which the employee moves from one | ||||||
| 20 | classification to a higher classification under the State | ||||||
| 21 | Universities Civil Service System, (ii) a promotion in academic | ||||||
| 22 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
| 23 | promotion that the Illinois Community College Board has | ||||||
| 24 | recommended in accordance with subsection (k) of this Section. | ||||||
| 25 | These earnings increases shall be excluded only if the | ||||||
| 26 | promotion is to a position that has existed and been filled by | ||||||
| |||||||
| |||||||
| 1 | a member for no less than one complete academic year and the | ||||||
| 2 | earnings increase as a result of the promotion is an increase | ||||||
| 3 | that results in an amount no greater than the average salary | ||||||
| 4 | paid for other similar positions. | ||||||
| 5 | (i) When assessing payment for any amount due under | ||||||
| 6 | subsection (g), the System shall exclude any salary increase | ||||||
| 7 | described in subsection (h) of this Section given on or after | ||||||
| 8 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
| 9 | collective bargaining agreement entered into, amended, or | ||||||
| 10 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
| 11 | Notwithstanding any other provision of this Section, any | ||||||
| 12 | payments made or salary increases given after June 30, 2014 | ||||||
| 13 | shall be used in assessing payment for any amount due under | ||||||
| 14 | subsection (g) of this Section.
| ||||||
| 15 | (j) The System shall prepare a report and file copies of | ||||||
| 16 | the report with the Governor and the General Assembly by | ||||||
| 17 | January 1, 2007 that contains all of the following information: | ||||||
| 18 | (1) The number of recalculations required by the | ||||||
| 19 | changes made to this Section by Public Act 94-1057 for each | ||||||
| 20 | employer. | ||||||
| 21 | (2) The dollar amount by which each employer's | ||||||
| 22 | contribution to the System was changed due to | ||||||
| 23 | recalculations required by Public Act 94-1057. | ||||||
| 24 | (3) The total amount the System received from each | ||||||
| 25 | employer as a result of the changes made to this Section by | ||||||
| 26 | Public Act 94-4. | ||||||
| |||||||
| |||||||
| 1 | (4) The increase in the required State contribution | ||||||
| 2 | resulting from the changes made to this Section by Public | ||||||
| 3 | Act 94-1057. | ||||||
| 4 | (k) The Illinois Community College Board shall adopt rules | ||||||
| 5 | for recommending lists of promotional positions submitted to | ||||||
| 6 | the Board by community colleges and for reviewing the | ||||||
| 7 | promotional lists on an annual basis. When recommending | ||||||
| 8 | promotional lists, the Board shall consider the similarity of | ||||||
| 9 | the positions submitted to those positions recognized for State | ||||||
| 10 | universities by the State Universities Civil Service System. | ||||||
| 11 | The Illinois Community College Board shall file a copy of its | ||||||
| 12 | findings with the System. The System shall consider the | ||||||
| 13 | findings of the Illinois Community College Board when making | ||||||
| 14 | determinations under this Section. The System shall not exclude | ||||||
| 15 | any earnings increases resulting from a promotion when the | ||||||
| 16 | promotion was not submitted by a community college. Nothing in | ||||||
| 17 | this subsection (k) shall require any community college to | ||||||
| 18 | submit any information to the Community College Board.
| ||||||
| 19 | (l) For purposes of determining the required State | ||||||
| 20 | contribution to the System, the value of the System's assets | ||||||
| 21 | shall be equal to the actuarial value of the System's assets, | ||||||
| 22 | which shall be calculated as follows: | ||||||
| 23 | As of June 30, 2008, the actuarial value of the System's | ||||||
| 24 | assets shall be equal to the market value of the assets as of | ||||||
| 25 | that date. In determining the actuarial value of the System's | ||||||
| 26 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
| |||||||
| |||||||
| 1 | gains or losses from investment return incurred in a fiscal | ||||||
| 2 | year shall be recognized in equal annual amounts over the | ||||||
| 3 | 5-year period following that fiscal year. | ||||||
| 4 | (m) For purposes of determining the required State | ||||||
| 5 | contribution to the system for a particular year, the actuarial | ||||||
| 6 | value of assets shall be assumed to earn a rate of return equal | ||||||
| 7 | to the system's actuarially assumed rate of return. | ||||||
| 8 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
| 9 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
| 10 | 7-13-12; revised 10-17-12.)
| ||||||
| 11 | (40 ILCS 5/15-155.1 new) | ||||||
| 12 | Sec. 15-155.1. Actions to enforce payment by employers. | ||||||
| 13 | (a) If any employer fails to transmit to the System | ||||||
| 14 | contributions required of it
under this Article in the manner | ||||||
| 15 | prescribed under subsection (a-10) of Section 15-155 or | ||||||
| 16 | contributions collected by it from its participating
employees | ||||||
| 17 | for the purposes of this Article for more than
90 days after | ||||||
| 18 | the payment of such contributions is due, then the System, | ||||||
| 19 | after
giving notice to that employer, may certify to
the State | ||||||
| 20 | Comptroller the amounts of the delinquent payments, and the
| ||||||
| 21 | Comptroller shall deduct the amounts so certified or any part | ||||||
| 22 | thereof
from any payments or grants of State funds to the | ||||||
| 23 | employer and shall pay the amounts so deducted to the System. | ||||||
| 24 | If State
funds from which such deductions may be made are not | ||||||
| 25 | available, the System
may proceed against the employer to | ||||||
| |||||||
| |||||||
| 1 | recover the
amounts of the delinquent payments in the circuit | ||||||
| 2 | court of Champaign County. | ||||||
| 3 | (b) If any employer fails to transmit to the System
| ||||||
| 4 | contributions required of it under this Article or | ||||||
| 5 | contributions collected
by it from its participating employees | ||||||
| 6 | for the purposes of this Article for
more than 90 days after | ||||||
| 7 | the payment of the contributions is due, the System,
after | ||||||
| 8 | giving notice to the employer, may certify the amounts of the | ||||||
| 9 | delinquent payments to the county treasurer of any county in | ||||||
| 10 | which the employer is located, who shall deduct the amounts so | ||||||
| 11 | certified or any part thereof
from the amounts collected
from | ||||||
| 12 | any tax levied by the employer and shall pay the amount so | ||||||
| 13 | deducted to the System. | ||||||
| 14 | (c) If reports furnished to the System by the employer | ||||||
| 15 | involved are inadequate for the computation of the
amounts of | ||||||
| 16 | any payments, the System may provide for such audit
of the | ||||||
| 17 | records of the employer as may be required
to establish the | ||||||
| 18 | amounts of the delinquent payments. The employer shall make its | ||||||
| 19 | records available to the System for the
purpose of the audit. | ||||||
| 20 | The cost of the audit shall be added to the
amount of the | ||||||
| 21 | payments and shall be recovered by the System
from the employer | ||||||
| 22 | at the same time and in the
same manner as the payments are | ||||||
| 23 | recovered. | ||||||
| 24 | (d) This Section does not apply to the State as an employer | ||||||
| 25 | under this Article.
| ||||||
| |||||||
| |||||||
| 1 | (40 ILCS 5/15-155.2 new) | ||||||
| 2 | Sec. 15-155.2. Individual employer accounts. | ||||||
| 3 | (a) The System shall create and maintain an individual | ||||||
| 4 | account for each employer for the purposes of determining | ||||||
| 5 | employer contributions under subsection (a-10) of Section | ||||||
| 6 | 15-155. Each employer's account shall be notionally charged | ||||||
| 7 | with the liabilities attributable to that employer and credited | ||||||
| 8 | with the assets attributable to that employer. | ||||||
| 9 | (b) Beginning in fiscal year 2015, the System shall assign | ||||||
| 10 | notional liabilities to each employer's account, equal to: | ||||||
| 11 | (1) an amount equal to employer contributions required | ||||||
| 12 | to be made by the employer pursuant to: | ||||||
| 13 | (i) items (i) and (iii) of subsection (a-10) of | ||||||
| 14 | Section 15-155; | ||||||
| 15 | (ii) any unfunded actuarial accrued liability | ||||||
| 16 | associated with each new benefit increase approved by | ||||||
| 17 | that employer pursuant to Section 15-198; and | ||||||
| 18 | (iii) subsection (g) of Section 15-155; | ||||||
| 19 | (2) the amount of employee contributions paid by | ||||||
| 20 | participating employees of the employer, except that | ||||||
| 21 | during any fiscal year in which the employer contribution | ||||||
| 22 | under item (i) of subsection (a-10) of Section 15-155 is | ||||||
| 23 | reduced under subsection (a-15) of that Section, the amount | ||||||
| 24 | of employee contributions credited under this subsection | ||||||
| 25 | (b) shall be reduced by the same proportion; plus | ||||||
| 26 | (3) any amounts representing employer or employee | ||||||
| |||||||
| |||||||
| 1 | contributions transferred or paid to the System in order to | ||||||
| 2 | transfer or establish service credit for a participating | ||||||
| 3 | employee of the employer as determined by the System. | ||||||
| 4 | The amount of any employer contributions required to be | ||||||
| 5 | made under Section 15-139.5 is not chargeable to the employer's | ||||||
| 6 | account. | ||||||
| 7 | (c) Beginning in fiscal year 2015, the System shall assign | ||||||
| 8 | notional assets to each employer's account equal to: | ||||||
| 9 | (1) the amounts of employer contributions made | ||||||
| 10 | pursuant to items (i), (ii), (iii), and (iv) of subsection | ||||||
| 11 | (a-10) of Section 15-155 and the amount of employer | ||||||
| 12 | contributions made pursuant to subsection (g) of Section | ||||||
| 13 | 15-155; plus | ||||||
| 14 | (2) the amount of employee contributions paid by | ||||||
| 15 | participating employees of the employer, except that | ||||||
| 16 | during any fiscal year in which the employer contribution | ||||||
| 17 | under item (i) of subsection (a-10) of Section 15-155 is | ||||||
| 18 | reduced under subsection (a-15) of that Section, the amount | ||||||
| 19 | of employee contributions credited under this subsection | ||||||
| 20 | (c) shall be reduced by the same proportion; plus | ||||||
| 21 | (3) any amounts representing employer or employee | ||||||
| 22 | contributions transferred or paid to the System in order to | ||||||
| 23 | transfer or establish service credit for a participating | ||||||
| 24 | employee of the employer as determined by the System. | ||||||
| 25 | The amount of any employer contributions required to be | ||||||
| 26 | made under Section 15-139.5 is not creditable to the employer's | ||||||
| |||||||
| |||||||
| 1 | account. | ||||||
| 2 | (d) On an annual basis and calculated with assumptions and | ||||||
| 3 | tables developed by the System, the System shall deduct from | ||||||
| 4 | each employer's account an actuarially determined amount equal | ||||||
| 5 | to the employer's portion of the benefits paid to that | ||||||
| 6 | employer's annuitant population. The System shall make such | ||||||
| 7 | determinations based on the portion of benefit payments that | ||||||
| 8 | are attributed to the employer's liabilities assigned under | ||||||
| 9 | subsection (b) of this Section. The System shall make the | ||||||
| 10 | assumptions required to determine and allocate benefit | ||||||
| 11 | payments to the State's portion of total liabilities and to the | ||||||
| 12 | employer's portion of total liabilities. | ||||||
| 13 | (e) The System shall report to the General Assembly and the | ||||||
| 14 | Governor prior to January 1, 2014 any liability of an employer | ||||||
| 15 | anticipated to accrue after July 1, 2014 that is not assigned | ||||||
| 16 | to an employer account pursuant to this Section.
| ||||||
| 17 | (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| ||||||
| 18 | Sec. 15-159. Board created. | ||||||
| 19 | (a) A board of trustees constituted as provided in
this | ||||||
| 20 | Section shall administer this System. The board shall be known | ||||||
| 21 | as the
Board of Trustees of the State Universities Retirement | ||||||
| 22 | System.
| ||||||
| 23 | (b) When all of the changes to this Section made by this | ||||||
| 24 | amendatory Act of the 98th General Assembly have been | ||||||
| 25 | implemented, the Board will consist of 12 members as follows: 4 | ||||||
| |||||||
| |||||||
| 1 | elected members who are active participants, 2 elected members | ||||||
| 2 | who are annuitants, 3 members elected by the trustees of | ||||||
| 3 | Illinois public universities, and 3 members elected by the | ||||||
| 4 | trustees of Illinois community colleges. The elected members | ||||||
| 5 | will be evenly split between persons representing public | ||||||
| 6 | universities and persons representing community colleges. The | ||||||
| 7 | Chairperson of the Board of Higher Education will no longer be | ||||||
| 8 | a member, and the Governor will no longer appoint any members. | ||||||
| 9 | The members of the Board will choose one of the members to | ||||||
| 10 | serve as chairperson. Until July 1, 1995, the Board of Trustees | ||||||
| 11 | shall be constituted
as follows:
| ||||||
| 12 | Two trustees shall be members of the Board of Trustees of | ||||||
| 13 | the
University of Illinois, one shall be a member of
the Board | ||||||
| 14 | of Trustees of Southern Illinois University, one shall be a | ||||||
| 15 | member
of the Board of Trustees of Chicago State University, | ||||||
| 16 | one shall be a member of
the Board of Trustees of Eastern | ||||||
| 17 | Illinois University, one shall be a member of
the Board of | ||||||
| 18 | Trustees of Governors State University, one shall be a member | ||||||
| 19 | of
the Board of Trustees of Illinois State University, one | ||||||
| 20 | shall be a member of
the Board of Trustees of Northeastern | ||||||
| 21 | Illinois University, one shall be a
member of the Board of | ||||||
| 22 | Trustees of Northern Illinois University, one shall be a
member | ||||||
| 23 | of the Board of Trustees of Western Illinois University, and | ||||||
| 24 | one shall
be a member of the Illinois Community College Board, | ||||||
| 25 | selected in each case by
their respective boards, and 2 shall
| ||||||
| 26 | be participants of the system appointed by the Governor for a 6 | ||||||
| |||||||
| |||||||
| 1 | year term with
the first appointment made pursuant to this | ||||||
| 2 | amendatory Act of 1984 to be
effective September 1, 1985, and | ||||||
| 3 | one shall be a participant appointed by the
Illinois Community | ||||||
| 4 | College Board for a 6 year term, and one shall be a
participant | ||||||
| 5 | appointed by the Board of Trustees of the University of | ||||||
| 6 | Illinois
for a 6 year term, and one shall be a participant or | ||||||
| 7 | annuitant of the system
who is a senior citizen age 60 or older | ||||||
| 8 | appointed by the Governor for a 6 year
term with the first | ||||||
| 9 | appointment to be effective September 1, 1985.
| ||||||
| 10 | The terms of all trustees holding office under this | ||||||
| 11 | subsection (b) on
June 30, 1995 shall terminate at the end of | ||||||
| 12 | that day and the Board shall
thereafter be constituted as | ||||||
| 13 | provided in subsection (c).
| ||||||
| 14 | (c) (Blank). Beginning July 1, 1995, the Board of Trustees | ||||||
| 15 | shall be
constituted as follows:
| ||||||
| 16 | The Board shall consist of 9 trustees appointed by the | ||||||
| 17 | Governor. Two of the
trustees, designated at the time of | ||||||
| 18 | appointment, shall be participants of the
System. Two of the | ||||||
| 19 | trustees, designated at the time of appointment, shall be
| ||||||
| 20 | annuitants of the System who are receiving retirement annuities | ||||||
| 21 | under this
Article. The 5 remaining trustees may, but need not, | ||||||
| 22 | be participants or
annuitants of the System.
| ||||||
| 23 | The term of office of trustees appointed under this | ||||||
| 24 | subsection (c)
shall be 6 years, beginning on July 1. However, | ||||||
| 25 | of the initial trustees
appointed under this subsection (c), 3 | ||||||
| 26 | shall be appointed for terms of 2 years,
3 shall be appointed | ||||||
| |||||||
| |||||||
| 1 | for terms of 4 years, and 3 shall be appointed for terms
of 6 | ||||||
| 2 | years, to be designated by the Governor at the time of | ||||||
| 3 | appointment.
| ||||||
| 4 | The terms of all trustees holding office under this | ||||||
| 5 | subsection (c) on the effective date of this amendatory Act of | ||||||
| 6 | the 96th General Assembly shall terminate on that effective | ||||||
| 7 | date. The Governor shall make nominations for appointment under | ||||||
| 8 | this Section within 60 days after the effective date of this | ||||||
| 9 | amendatory Act of the 96th General Assembly. A trustee sitting | ||||||
| 10 | on the board on the effective date of this amendatory Act of | ||||||
| 11 | the 96th General Assembly may not hold over in office for more | ||||||
| 12 | than 90 days after the effective date of this amendatory Act of | ||||||
| 13 | the 96th General Assembly. Nothing in this Section shall | ||||||
| 14 | prevent the Governor from making a temporary appointment or | ||||||
| 15 | nominating a trustee holding office on the day before the | ||||||
| 16 | effective date of this amendatory Act of the 96th General | ||||||
| 17 | Assembly. | ||||||
| 18 | (d) Beginning on the 90th day after April 3, 2009 (the | ||||||
| 19 | effective date of Public Act 96-6) this amendatory Act of the | ||||||
| 20 | 96th General Assembly, the Board of Trustees shall be | ||||||
| 21 | constituted as follows: | ||||||
| 22 | (1) The Chairperson of the Board of Higher Education, | ||||||
| 23 | who shall act as chairperson of this Board; except that the | ||||||
| 24 | Chairperson of the Board of Higher Education shall be a | ||||||
| 25 | member of the Board only through June 30, 2014. | ||||||
| 26 | (2) Four trustees appointed by the Governor with the | ||||||
| |||||||
| |||||||
| 1 | advice and consent of the Senate who may not be members of | ||||||
| 2 | the system or hold an elective State office and who shall | ||||||
| 3 | serve for a term of 6 years, except that the terms of the | ||||||
| 4 | initial appointees under this subsection (d) shall be as | ||||||
| 5 | follows: 2 for a term of 3 years and 2 for a term of 6 | ||||||
| 6 | years. However, no additional appointment may be made by | ||||||
| 7 | the Governor under this item (2), and no vacancy may be | ||||||
| 8 | filled by the Governor, after the effective date of this | ||||||
| 9 | amendatory Act of the 98th General Assembly. | ||||||
| 10 | (3) Four active participants of the system to be | ||||||
| 11 | elected from the contributing membership of the system by | ||||||
| 12 | the
contributing members, no more than 2 of which may be | ||||||
| 13 | from any of the University of Illinois campuses, who shall | ||||||
| 14 | serve for a term of 6 years, except that the terms of the | ||||||
| 15 | initial electees shall be as follows: 2 for a term of 3 | ||||||
| 16 | years and 2 for a term of 6 years. However, beginning with | ||||||
| 17 | the election of active participants next occurring after | ||||||
| 18 | the effective date of this amendatory Act of the 98th | ||||||
| 19 | General Assembly, (i) 2 of these members shall be active | ||||||
| 20 | employees of a community college employer and (ii) 2 of | ||||||
| 21 | these members shall be active employees of a public | ||||||
| 22 | university employer, no more than one of whom may be from | ||||||
| 23 | any of the University of Illinois campuses. | ||||||
| 24 | (4) Two annuitants of
the system who have been | ||||||
| 25 | annuitants for at least one full year, to be
elected from | ||||||
| 26 | and by the annuitants of the system, no more than one of | ||||||
| |||||||
| |||||||
| 1 | which may be from any of the University of Illinois | ||||||
| 2 | campuses, who shall serve for a term of 6 years, except | ||||||
| 3 | that the terms of the initial electees shall be as follows: | ||||||
| 4 | one for a term of 3 years and one for a term of 6 years. | ||||||
| 5 | However, beginning with the election of annuitant members | ||||||
| 6 | next occurring after the effective date of this amendatory | ||||||
| 7 | Act of the 98th General Assembly, (i) one of the annuitant | ||||||
| 8 | members shall be a retired employee of a community college | ||||||
| 9 | employer and (ii) one of the annuitant members shall be a | ||||||
| 10 | retired employee of a public university employer. | ||||||
| 11 | For the purposes of this Section, the Governor may make a | ||||||
| 12 | nomination and the Senate may confirm the nominee in advance of | ||||||
| 13 | the commencement of the nominee's term of office. | ||||||
| 14 | (d-5) Beginning July 1, 2014, there shall be one additional | ||||||
| 15 | member of the Board of Trustees, to be elected by the trustees | ||||||
| 16 | of Illinois public universities from a list of nominees | ||||||
| 17 | provided by the 14 presidents and chancellors of Illinois | ||||||
| 18 | public universities, acting jointly. The number of nominees | ||||||
| 19 | shall be at least twice the number of positions to be filled. | ||||||
| 20 | The System shall administer the election. | ||||||
| 21 | The member of the Board of Trustees elected under this | ||||||
| 22 | subsection (d-5) shall serve for a term of 4 years and may, but | ||||||
| 23 | need not, be a participant or annuitant of the System. | ||||||
| 24 | (d-10) Beginning July 1, 2014, there shall be one | ||||||
| 25 | additional member of the Board of Trustees, to be elected by | ||||||
| 26 | the trustees of Illinois community college districts from a | ||||||
| |||||||
| |||||||
| 1 | list of nominees provided by an association of community | ||||||
| 2 | college boards organized under Section 3-55 of the Public | ||||||
| 3 | Community College Act, in consultation with trustees serving | ||||||
| 4 | pursuant to Section 7-2 of that Act. The number of nominees | ||||||
| 5 | shall be at least twice the number of positions to be filled. | ||||||
| 6 | The System shall administer the election. | ||||||
| 7 | The member of the Board of Trustees elected under this | ||||||
| 8 | subsection (d-10) shall serve for a term of 4 years and may, | ||||||
| 9 | but need not, be a participant or annuitant of the System. | ||||||
| 10 | (d-15) Upon the expiration of the terms of the members of | ||||||
| 11 | the Board appointed by the Governor under subdivision (d)(2) | ||||||
| 12 | who are serving on the effective date of this amendatory Act of | ||||||
| 13 | the 98th General Assembly, or immediately in the case of a | ||||||
| 14 | vacancy in any of those positions on that effective date, 2 of | ||||||
| 15 | those seats shall instead be filled in the manner set forth in | ||||||
| 16 | subsection (d-5) and 2 of those seats shall instead be filled | ||||||
| 17 | in the manner set forth in subsection (d-10), as follows: (1) | ||||||
| 18 | whenever possible, positions available under this subsection | ||||||
| 19 | shall be filled in a manner that produces equal numbers of | ||||||
| 20 | positions filled in the manner provided under subsection (d-5) | ||||||
| 21 | and subsection (d-10); and (2) when that is not possible, a | ||||||
| 22 | position that becomes available under this subsection shall | ||||||
| 23 | first be filled in the manner set forth in subsection (d-5). | ||||||
| 24 | A member of the Board of Trustees elected under this | ||||||
| 25 | subsection (d-15) shall serve for a term of 4 years and may, | ||||||
| 26 | but need not, be a participant or annuitant of the System. | ||||||
| |||||||
| |||||||
| 1 | (d-20) Before July 1 of each even-numbered year, the Board | ||||||
| 2 | shall elect one of its members to serve as Chairperson of the | ||||||
| 3 | Board for a term of 2 years beginning on that July 1. | ||||||
| 4 | (e) The 6 elected trustees under items (3) and (4) of | ||||||
| 5 | subsection (d) shall be elected within 90 days after April 3, | ||||||
| 6 | 2009 (the effective date of Public Act 96-6) this amendatory | ||||||
| 7 | Act of the 96th General Assembly for a term beginning on the | ||||||
| 8 | 90th day after that the effective date of this amendatory Act. | ||||||
| 9 | Trustees shall be elected thereafter as terms expire for a | ||||||
| 10 | 6-year term beginning July 15 next following their election, | ||||||
| 11 | and such election shall be held on May 1, or on May 2 when May 1 | ||||||
| 12 | falls on a Sunday. The board may establish rules for the | ||||||
| 13 | election of trustees to implement the provisions of Public Act | ||||||
| 14 | 96-6 this amendatory Act of the 96th General Assembly and for | ||||||
| 15 | future elections. Candidates for the participating trustee | ||||||
| 16 | shall be nominated by petitions in writing, signed by not less | ||||||
| 17 | than 400 participants with their addresses shown opposite their | ||||||
| 18 | names. Candidates for the annuitant trustee shall be nominated | ||||||
| 19 | by petitions in writing, signed by not less than 100 annuitants | ||||||
| 20 | with their addresses shown opposite their names. If there is | ||||||
| 21 | more than one qualified nominee for each elected trustee, then | ||||||
| 22 | the board shall conduct a secret ballot election by mail for | ||||||
| 23 | that trustee, in accordance with rules as established by the | ||||||
| 24 | board. If there is only one qualified person nominated by | ||||||
| 25 | petition for each elected trustee, then the election as | ||||||
| 26 | required by this Section shall not be conducted for that | ||||||
| |||||||
| |||||||
| 1 | trustee and the board shall declare such nominee duly elected. | ||||||
| 2 | A vacancy occurring in the elective membership of the board | ||||||
| 3 | shall be filled for the unexpired term by the elected trustees | ||||||
| 4 | serving on the board for the remainder of the term. | ||||||
| 5 | The board may establish rules and procedures for the | ||||||
| 6 | nomination and election of trustees under subsections (d-5), | ||||||
| 7 | (d-10), and (d-15) of this Section. | ||||||
| 8 | (f) A vacancy on the board of trustees caused by | ||||||
| 9 | resignation,
death, expiration of term of office, or other | ||||||
| 10 | reason shall be filled by a
qualified person appointed by the | ||||||
| 11 | appointing authority or elected by the electing authority | ||||||
| 12 | Governor for the remainder of the unexpired
term.
| ||||||
| 13 | (g) Trustees (other than the trustees incumbent on June 30, | ||||||
| 14 | 1995 or as provided in subsection (c) of this Section)
shall | ||||||
| 15 | continue in office until their respective successors are | ||||||
| 16 | appointed
and have qualified, except that a trustee appointed | ||||||
| 17 | to one of the
participant positions shall be disqualified | ||||||
| 18 | immediately upon the termination of
his or her status as a | ||||||
| 19 | participant and a trustee appointed to one of the
annuitant | ||||||
| 20 | positions shall be disqualified immediately upon the | ||||||
| 21 | termination of
his or her status as an annuitant receiving a | ||||||
| 22 | retirement annuity.
| ||||||
| 23 | (h) Each trustee must take an oath of office
before a | ||||||
| 24 | notary public of this State and shall qualify as a trustee upon | ||||||
| 25 | the
presentation to the board of a certified copy of the oath. | ||||||
| 26 | The oath must state
that the person will diligently and | ||||||
| |||||||
| |||||||
| 1 | honestly administer the affairs of the
retirement system, and | ||||||
| 2 | will not knowingly violate or wilfully permit to be
violated | ||||||
| 3 | any provisions of this Article.
| ||||||
| 4 | Each trustee shall serve without compensation but shall be | ||||||
| 5 | reimbursed for
expenses necessarily incurred in attending | ||||||
| 6 | board meetings and carrying out his
or her duties as a trustee | ||||||
| 7 | or officer of the system.
| ||||||
| 8 | (i) This amendatory Act of 1995 is intended to supersede | ||||||
| 9 | the changes made
to this Section by Public Act 89-4.
| ||||||
| 10 | (Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
| ||||||
| 11 | (40 ILCS 5/15-168.2) | ||||||
| 12 | Sec. 15-168.2. Audit of employers. Beginning August 1, 2014 | ||||||
| 13 | 2013, the System may audit the employment records and payroll | ||||||
| 14 | records of all employers. When the System audits an employer, | ||||||
| 15 | it shall specify the exact information it requires, which may | ||||||
| 16 | include but need not be limited to the names, titles, and | ||||||
| 17 | earnings history of every individual receiving compensation | ||||||
| 18 | from the employer. If an employer is audited by the System, | ||||||
| 19 | then the employer must provide to the System all necessary | ||||||
| 20 | documents and records within 60 calendar days after receiving | ||||||
| 21 | notification from the System. When the System audits an | ||||||
| 22 | employer, it shall send related correspondence by certified | ||||||
| 23 | mail.
| ||||||
| 24 | (Source: P.A. 97-968, eff. 8-16-12.)
| ||||||
| |||||||
| |||||||
| 1 | (40 ILCS 5/15-198)
| ||||||
| 2 | Sec. 15-198. Application and expiration of new benefit | ||||||
| 3 | increases. | ||||||
| 4 | (a) As used in this Section, "new benefit increase" means | ||||||
| 5 | an increase in the amount of either a retirement annuity | ||||||
| 6 | calculated under Rule 1 of Section 15-136 (or subsection (c) or | ||||||
| 7 | (d) of Section 1-160 with respect to a benefit payable under | ||||||
| 8 | this System) or an automatic annual increase provided under | ||||||
| 9 | subsection (d) of Section 15-136 (or subsection (e) of Section | ||||||
| 10 | 1-160 with respect to a benefit payable under this System) any | ||||||
| 11 | benefit provided under this Article, or an expansion of the | ||||||
| 12 | conditions of eligibility for any benefit under Section 15-135 | ||||||
| 13 | (or subsection (c), (d), or (e) of Section 1-160 with respect | ||||||
| 14 | to a benefit payable under this System) this Article, that | ||||||
| 15 | results from an amendment to this Code that takes effect after | ||||||
| 16 | the effective date of this amendatory Act of the 98th 94th | ||||||
| 17 | General Assembly. | ||||||
| 18 | (b) Notwithstanding any other provision of this Code or any | ||||||
| 19 | subsequent amendment to this Code, every new benefit increase | ||||||
| 20 | is subject to this Section and shall be deemed to be granted | ||||||
| 21 | only in conformance with and contingent upon compliance with | ||||||
| 22 | the provisions of this Section.
| ||||||
| 23 | (c) Beginning July 1, 2014, the State Actuary shall, within | ||||||
| 24 | 6 months after the effective date of an amendatory Act that | ||||||
| 25 | amends or affects benefits under this Article, certify to the | ||||||
| 26 | System whether or not the amendatory Act is a new benefit | ||||||
| |||||||
| |||||||
| 1 | increase under this Section. If the State Actuary certifies to | ||||||
| 2 | the System that an amendatory Act is a new benefit increase | ||||||
| 3 | under this Section, the System shall notify each employer and | ||||||
| 4 | the General Assembly of the certification. | ||||||
| 5 | (d) If the State Actuary certifies that an amendatory Act | ||||||
| 6 | is a new benefit increase under this Section, the Board shall | ||||||
| 7 | either approve or deny the new benefit increase by resolution. | ||||||
| 8 | (e) If the Board approves a new benefit increase by | ||||||
| 9 | resolution, the Board shall develop and submit administrative | ||||||
| 10 | rules necessary to implement the new benefit increase to the | ||||||
| 11 | Joint Committee on Administrative Rules in a manner consistent | ||||||
| 12 | with the Illinois Administrative Procedure Act. | ||||||
| 13 | (f) If the Joint Committee on Administrative Rules does not | ||||||
| 14 | object to a proposed rule necessary to implement a new benefit | ||||||
| 15 | increase or if the Committee objects to such a rule but the | ||||||
| 16 | System modifies the proposed rule to meet the Committee's | ||||||
| 17 | objections, an employer under this Article may make an | ||||||
| 18 | irrevocable election to approve the new benefit increase by | ||||||
| 19 | resolution of the governing body of the employer. If the | ||||||
| 20 | employer is the State, the new benefit increase shall be deemed | ||||||
| 21 | approved without resolution, unless the amendatory Act | ||||||
| 22 | provides otherwise. | ||||||
| 23 | (g) A new benefit increase shall not apply to service of an | ||||||
| 24 | employee with an employer unless that employer has approved the | ||||||
| 25 | new benefit increase with respect to the employee's service | ||||||
| 26 | accrued with that employer. The approval of an employer cannot | ||||||
| |||||||
| |||||||
| 1 | modify any of the terms of the new benefit increase, and the | ||||||
| 2 | employer's approval of or failure to approve the new benefit | ||||||
| 3 | increase applies to all participating employees of the | ||||||
| 4 | employer. | ||||||
| 5 | (h) No new benefit increase shall take effect for employees | ||||||
| 6 | of any employer unless the conditions of this Section are | ||||||
| 7 | satisfied. No new benefit increase shall take effect prior to | ||||||
| 8 | the July 1st at least 12 months following the conditions of | ||||||
| 9 | this Section being satisfied. | ||||||
| 10 | (c) The Public Act enacting a new benefit increase must | ||||||
| 11 | identify and provide for payment to the System of additional | ||||||
| 12 | funding at least sufficient to fund the resulting annual | ||||||
| 13 | increase in cost to the System as it accrues. | ||||||
| 14 | Every new benefit increase is contingent upon the General | ||||||
| 15 | Assembly providing the additional funding required under this | ||||||
| 16 | subsection. The Commission on Government Forecasting and | ||||||
| 17 | Accountability shall analyze whether adequate additional | ||||||
| 18 | funding has been provided for the new benefit increase and | ||||||
| 19 | shall report its analysis to the Public Pension Division of the | ||||||
| 20 | Department of Financial and Professional Regulation. A new | ||||||
| 21 | benefit increase created by a Public Act that does not include | ||||||
| 22 | the additional funding required under this subsection is null | ||||||
| 23 | and void. If the Public Pension Division determines that the | ||||||
| 24 | additional funding provided for a new benefit increase under | ||||||
| 25 | this subsection is or has become inadequate, it may so certify | ||||||
| 26 | to the Governor and the State Comptroller and, in the absence | ||||||
| |||||||
| |||||||
| 1 | of corrective action by the General Assembly, the new benefit | ||||||
| 2 | increase shall expire at the end of the fiscal year in which | ||||||
| 3 | the certification is made.
| ||||||
| 4 | (d) Every new benefit increase shall expire 5 years after | ||||||
| 5 | its effective date or on such earlier date as may be specified | ||||||
| 6 | in the language enacting the new benefit increase or provided | ||||||
| 7 | under subsection (c). This does not prevent the General | ||||||
| 8 | Assembly from extending or re-creating a new benefit increase | ||||||
| 9 | by law. | ||||||
| 10 | (e) Except as otherwise provided in the language creating | ||||||
| 11 | the new benefit increase, a new benefit increase that expires | ||||||
| 12 | under this Section continues to apply to persons who applied | ||||||
| 13 | and qualified for the affected benefit while the new benefit | ||||||
| 14 | increase was in effect and to the affected beneficiaries and | ||||||
| 15 | alternate payees of such persons, but does not apply to any | ||||||
| 16 | other person, including without limitation a person who | ||||||
| 17 | continues in service after the expiration date and did not | ||||||
| 18 | apply and qualify for the affected benefit while the new | ||||||
| 19 | benefit increase was in effect.
| ||||||
| 20 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
| 21 | Section 90. The State Mandates Act is amended by adding | ||||||
| 22 | Section 8.37 as follows:
| ||||||
| 23 | (30 ILCS 805/8.37 new) | ||||||
| 24 | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
| |||||||
| |||||||
| 1 | of this Act, no reimbursement by the State is required for the | ||||||
| 2 | implementation of any mandate created by this amendatory Act of | ||||||
| 3 | the 98th General Assembly.
| ||||||
| 4 | Section 99. Effective date. This Act takes effect upon | ||||||
| 5 | becoming law.".
| ||||||