Bill Text: IL HB1166 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning the short title of the Code.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1166 Detail]

Download: Illinois-2013-HB1166-Amended.html

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Rep. Michael J. Madigan

Filed: 2/26/2013

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AMENDMENT TO HOUSE BILL 1166
AMENDMENT NO. ______. Amend House Bill 1166 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 2-126, 14-133, 15-157, 1and 16-152 and by
adding Sections 2-105.1, 14-103.40, 15-107.1, and 16-106.4 as
follows:
(40 ILCS 5/2-105.1 new)
Sec. 2-105.1. Tier I participant. "Tier I participant": A
participant who first became a participant before January 1,
2011.
(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of
his or her retirement annuity a percentage of each payment of

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salary received by him or her for service as a member as
follows: for service between October 31, 1947 and January 1,
1959, 5%; for service between January 1, 1959 and June 30,
1969, 6%; for service between July 1, 1969 and January 10,
1973, 6 1/2%; for service after January 10, 1973, 7%; for
service after December 31, 1981, 8 1/2%.
(a-5) Beginning July 1, 2013, in addition to the
contributions otherwise required under this Article, each Tier
I participant shall contribute toward the cost of his or her
retirement annuity 5% of each payment of salary received by him
or her for service as a member.
(b) Beginning August 2, 1949, each male participant, and
from July 1, 1971, each female participant shall contribute
towards the cost of the survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity
beneficiary may elect to cease making contributions for
survivor's annuity under this subsection. A survivor's annuity
shall not be payable upon the death of a person who has made
this election, unless prior to that death the election has been
revoked and the amount of the contributions that would have
been paid under this subsection in the absence of the election
is paid to the System, together with interest at the rate of 4%
per year from the date the contributions would have been made
to the date of payment.
(c) Beginning July 1, 1967, each participant shall
contribute 1% of salary towards the cost of automatic increase

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in annuity provided in Section 2-119.1. These contributions
shall be made concurrently with contributions for retirement
annuity purposes.
(d) In addition, each participant serving as an officer of
the General Assembly shall contribute, for the same purposes
and at the same rates as are required of a regular participant,
on each additional payment received as an officer. If the
participant serves as an officer for at least 2 but less than 4
years, he or she shall contribute an amount equal to the amount
that would have been contributed had the participant served as
an officer for 4 years. Persons who serve as officers in the
87th General Assembly but cannot receive the additional payment
to officers because of the ban on increases in salary during
their terms may nonetheless make contributions based on those
additional payments for the purpose of having the additional
payments included in their highest salary for annuity purposes;
however, persons electing to make these additional
contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the
System.
(e) Notwithstanding any other provision of this Article,
the required contribution of a participant who first becomes a
participant on or after January 1, 2011 shall not exceed the
contribution that would be due under this Article if that
participant's highest salary for annuity purposes were
$106,800, plus any increases in that amount under Section

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2-108.1.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/14-103.40 new)
Sec. 14-103.40. Tier I member. "Tier I member": A member of
this System who first became a member or participant before
January 1, 2011 under any reciprocal retirement system or
pension fund established under this Code other than a
retirement system or pension fund established under Article 2,
3, 4, 5, 6, or 18 of this Code.
(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
Sec. 14-133. Contributions on behalf of members.
(a) Each participating employee shall make contributions
to the System, based on the employee's compensation, as
follows:
(1) Covered employees, except as indicated below, 3.5%
for retirement annuity, and 0.5% for a widow or survivors
annuity;
(2) Noncovered employees, except as indicated below,
7% for retirement annuity and 1% for a widow or survivors
annuity;
(3) Noncovered employees serving in a position in which
"eligible creditable service" as defined in Section 14-110
may be earned, 1% for a widow or survivors annuity plus the
following amount for retirement annuity: 8.5% through

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December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
in 2004 and thereafter;
(4) Covered employees serving in a position in which
"eligible creditable service" as defined in Section 14-110
may be earned, 0.5% for a widow or survivors annuity plus
the following amount for retirement annuity: 5% through
December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
and thereafter;
(5) Each security employee of the Department of
Corrections or of the Department of Human Services who is a
covered employee, 0.5% for a widow or survivors annuity
plus the following amount for retirement annuity: 5%
through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
in 2004 and thereafter;
(6) Each security employee of the Department of
Corrections or of the Department of Human Services who is
not a covered employee, 1% for a widow or survivors annuity
plus the following amount for retirement annuity: 8.5%
through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
11.5% in 2004 and thereafter.
(a-5) Beginning July 1, 2013, in addition to the
contributions otherwise required under this Article, each Tier
I member shall contribute toward the cost of his or her
retirement annuity 5% of each payment of compensation received
by him or her for service as a member.
(b) Contributions shall be in the form of a deduction from

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compensation and shall be made notwithstanding that the
compensation paid in cash to the employee shall be reduced
thereby below the minimum prescribed by law or regulation. Each
member is deemed to consent and agree to the deductions from
compensation provided for in this Article, and shall receipt in
full for salary or compensation.
(Source: P.A. 92-14, eff. 6-28-01.)
(40 ILCS 5/15-107.1 new)
Sec. 15-107.1. Tier I participant. "Tier I participant": A
participant under this Article, other than a participant in the
self-managed plan under Section 15-158.2, who first became a
member or participant before January 1, 2011 under any
reciprocal retirement system or pension fund established under
this Code other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, or 18 of this Code.
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement benefits payable under the retirement
program applicable to the employee from each payment of
earnings applicable to employment under this system on and
after the date of becoming a participant as follows: Prior to
September 1, 1949, 3 1/2% of earnings; from September 1, 1949
to August 31, 1955, 5%; from September 1, 1955 to August 31,

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1969, 6%; from September 1, 1969, 6 1/2%. These contributions
are to be considered as normal contributions for purposes of
this Article.
Each participant who is a police officer or firefighter
shall make normal contributions of 8% of each payment of
earnings applicable to employment as a police officer or
firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after the
effective date of this amendatory Act of 1991 or 60 days after
the board receives notice that he or she is employed as a
police officer or firefighter, whichever is later, a written
notice waiving the retirement formula provided by Rule 4 of
Section 15-136. This waiver shall be irrevocable. If a
participant had met the conditions set forth in Section
15-132.1 prior to the effective date of this amendatory Act of
1991 but failed to make the additional normal contributions
required by this paragraph, he or she may elect to pay the
additional contributions plus compound interest at the
effective rate. If such payment is received by the board, the
service shall be considered as police officer service in
calculating the retirement annuity under Rule 4 of Section
15-136. While performing service described in clause (i) or
(ii) of Rule 4 of Section 15-136, a participating employee
shall be deemed to be employed as a firefighter for the purpose
of determining the rate of employee contributions under this
Section.

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(b) Starting September 1, 1969, each participating
employee shall make additional contributions of 1/2 of 1% of
earnings to finance a portion of the cost of the annual
increases in retirement annuity provided under Section 15-136,
except that with respect to participants in the self-managed
plan this additional contribution shall be used to finance the
benefits obtained under that retirement program.
(c) In addition to the amounts described in subsections (a)
and (b) of this Section, each participating employee shall make
contributions of 1% of earnings applicable under this system on
and after August 1, 1959. The contributions made under this
subsection (c) shall be considered as survivor's insurance
contributions for purposes of this Article if the employee is
covered under the traditional benefit package, and such
contributions shall be considered as additional contributions
for purposes of this Article if the employee is participating
in the self-managed plan or has elected to participate in the
portable benefit package and has completed the applicable
one-year waiting period. Contributions in excess of $80 during
any fiscal year beginning before August 31, 1969 and in excess
of $120 during any fiscal year thereafter until September 1,
1971 shall be considered as additional contributions for
purposes of this Article.
(c-5) Beginning July 1, 2013, in addition to the
contributions otherwise required under this Article, each Tier
I participant shall contribute toward the cost of his or her

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retirement annuity 5% of each payment of earnings received by
him or her for service as a member.
Except as otherwise specified, these contributions shall
be considered as normal contributions for purposes of this
Article.
(d) If the board by board rule so permits and subject to
such conditions and limitations as may be specified in its
rules, a participant may make other additional contributions of
such percentage of earnings or amounts as the participant shall
elect in a written notice thereof received by the board.
(e) That fraction of a participant's total accumulated
normal contributions, the numerator of which is equal to the
number of years of service in excess of that which is required
to qualify for the maximum retirement annuity, and the
denominator of which is equal to the total service of the
participant, shall be considered as accumulated additional
contributions. The determination of the applicable maximum
annuity and the adjustment in contributions required by this
provision shall be made as of the date of the participant's
retirement.
(f) Notwithstanding the foregoing, a participating
employee shall not be required to make contributions under this
Section after the date upon which continuance of such
contributions would otherwise cause his or her retirement
annuity to exceed the maximum retirement annuity as specified
in clause (1) of subsection (c) of Section 15-136.

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(g) A participating employee may make contributions for the
purchase of service credit under this Article.
(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
90-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
(40 ILCS 5/16-106.4 new)
Sec. 16-106.4. Tier I member. "Tier I member": A member
under this Article who first became a member or participant
before January 1, 2011 under any reciprocal retirement system
or pension fund established under this Code other than a
retirement system or pension fund established under Article 2,
3, 4, 5, 6, or 18 of this Code.
(40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
Sec. 16-152. Contributions by members.
(a) Each member shall make contributions for membership
service to this System as follows:
(1) Effective July 1, 1998, contributions of 7.50% of
salary towards the cost of the retirement annuity. Such
contributions shall be deemed "normal contributions".
(2) Effective July 1, 1969, contributions of 1/2 of 1%
of salary toward the cost of the automatic annual increase
in retirement annuity provided under Section 16-133.1.
(3) Effective July 24, 1959, contributions of 1% of
salary towards the cost of survivor benefits. Such

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contributions shall not be credited to the individual
account of the member and shall not be subject to refund
except as provided under Section 16-143.2.
(4) Effective July 1, 2005, contributions of 0.40% of
salary toward the cost of the early retirement without
discount option provided under Section 16-133.2. This
contribution shall cease upon termination of the early
retirement without discount option as provided in Section
16-176.
(a-5) Beginning July 1, 2013, in addition to the
contributions otherwise required under this Article, each Tier
I member shall contribute toward the cost of his or her
retirement annuity 5% of each payment of salary received by him
or her for service as a member.
Except as otherwise specified, these contributions shall
be considered as normal contributions for purposes of this
Article.
(b) The minimum required contribution for any year of
full-time teaching service shall be $192.
(c) Contributions shall not be required of any annuitant
receiving a retirement annuity who is given employment as
permitted under Section 16-118 or 16-150.1.
(d) A person who (i) was a member before July 1, 1998, (ii)
retires with more than 34 years of creditable service, and
(iii) does not elect to qualify for the augmented rate under
Section 16-129.1 shall be entitled, at the time of retirement,

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to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998
or attainment of 34 years of creditable service, in an amount
equal to 1.00% of the salary upon which those contributions
were based.
(e) A member's contributions toward the cost of early
retirement without discount made under item (a)(4) of this
Section shall not be refunded if the member has elected early
retirement without discount under Section 16-133.2 and has
begun to receive a retirement annuity under this Article
calculated in accordance with that election. Otherwise, a
member's contributions toward the cost of early retirement
without discount made under item (a)(4) of this Section shall
be refunded according to whichever one of the following
circumstances occurs first:
(1) The contributions shall be refunded to the member,
without interest, within 120 days after the member's
retirement annuity commences, if the member does not elect
early retirement without discount under Section 16-133.2.
(2) The contributions shall be included, without
interest, in any refund claimed by the member under Section
16-151.
(3) The contributions shall be refunded to the member's
designated beneficiary (or if there is no beneficiary, to
the member's estate), without interest, if the member dies
without having begun to receive a retirement annuity under

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this Article.
(4) The contributions shall be refunded to the member,
without interest, within 120 days after the early
retirement without discount option provided under Section
16-133.2 is terminated under Section 16-176.
(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
Section 99. Effective date. This Act takes effect upon
becoming law.".