Bill Text: IL HB3906 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the State Universities Article of the Illinois Pension Code. Provides that a Tier 2 member who has at least 20 years of service in this system as a police officer or firefighter is entitled to a retirement annuity upon written application on or after the attainment of age 55 (instead of age 60) if a specified rule is applicable to the participant. Provides that the changes apply retroactively to January 1, 2011. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase".
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3906 Detail]
Download: Illinois-2023-HB3906-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by | |||||||||||||||||||||
5 | changing Sections 15-135 and 15-198 as follows:
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6 | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
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7 | Sec. 15-135. Retirement annuities; conditions.
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8 | (a) This subsection (a) applies only to a Tier 1 member. A | |||||||||||||||||||||
9 | participant who retires in one of the following specified | |||||||||||||||||||||
10 | years with
the specified amount of service is entitled to a | |||||||||||||||||||||
11 | retirement annuity at any age
under the retirement program | |||||||||||||||||||||
12 | applicable to the participant:
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13 | 35 years if retirement is in 1997 or before;
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14 | 34 years if retirement is in 1998;
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15 | 33 years if retirement is in 1999;
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16 | 32 years if retirement is in 2000;
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17 | 31 years if retirement is in 2001;
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18 | 30 years if retirement is in 2002 or later.
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19 | A participant with 8 or more years of service after | |||||||||||||||||||||
20 | September 1, 1941, is
entitled to a retirement annuity on or | |||||||||||||||||||||
21 | after attainment of age 55.
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22 | A participant with at least 5 but less than 8 years
of | |||||||||||||||||||||
23 | service after September 1, 1941, is entitled to a retirement |
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1 | annuity on
or after attainment of age 62.
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2 | A participant who has at least 25 years of service in this | ||||||
3 | system as a
police officer or firefighter is entitled to a | ||||||
4 | retirement
annuity on or after the attainment of age 50, if | ||||||
5 | Rule 4 of Section
15-136 is applicable to the participant.
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6 | (a-5) A Tier 2 member is entitled to a retirement annuity | ||||||
7 | upon written application if he or she has attained age 67 and | ||||||
8 | has at least 10 years of service credit and is otherwise | ||||||
9 | eligible under the requirements of this Article. A Tier 2 | ||||||
10 | member who has attained age 62 and has at least 10 years of | ||||||
11 | service credit and is otherwise eligible under the | ||||||
12 | requirements of this Article may elect to receive the lower | ||||||
13 | retirement annuity provided in subsection (b-5) of Section | ||||||
14 | 15-136 of this Article. | ||||||
15 | (a-10) A Tier 2 member who has at least 20 years of service | ||||||
16 | in this system as a police officer or firefighter is entitled | ||||||
17 | to a retirement annuity upon written application on or after | ||||||
18 | the attainment of age 55 60 if Rule 4 of Section 15-136 is | ||||||
19 | applicable to the participant. The changes made to this | ||||||
20 | subsection by this amendatory Act of the 103rd General | ||||||
21 | Assembly this amendatory Act of the 101st General Assembly | ||||||
22 | apply retroactively to January 1, 2011. | ||||||
23 | (b) The annuity payment period shall begin on the date | ||||||
24 | specified by the
participant or the recipient of a disability | ||||||
25 | retirement annuity submitting a written application. For a | ||||||
26 | participant, the date on which the annuity payment period |
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1 | begins shall not be prior
to termination of employment or more | ||||||
2 | than one year before the application is
received by the board; | ||||||
3 | however, if the participant is not an employee of an
employer | ||||||
4 | participating in this System or in a participating system as | ||||||
5 | defined
in Article 20 of this Code on April 1 of the calendar | ||||||
6 | year next following
the calendar year in which the participant | ||||||
7 | attains the age specified under Section 401(a)(9) of the | ||||||
8 | Internal Revenue Code of 1986, as amended, the annuity
payment | ||||||
9 | period shall begin on that date regardless of whether an | ||||||
10 | application
has been filed. For a recipient of a disability | ||||||
11 | retirement annuity, the date on which the annuity payment | ||||||
12 | period begins shall not be prior to the discontinuation of the | ||||||
13 | disability retirement annuity under Section 15-153.2.
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14 | (c) An annuity is not payable if the amount provided under | ||||||
15 | Section
15-136 is less than $10 per month.
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16 | (Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
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17 | (40 ILCS 5/15-198)
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18 | Sec. 15-198. Application and expiration of new benefit | ||||||
19 | increases. | ||||||
20 | (a) As used in this Section, "new benefit increase" means | ||||||
21 | an increase in the amount of any benefit provided under this | ||||||
22 | Article, or an expansion of the conditions of eligibility for | ||||||
23 | any benefit under this Article, that results from an amendment | ||||||
24 | to this Code that takes effect after June 1, 2005 (the | ||||||
25 | effective date of Public Act 94-4). "New benefit increase", |
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1 | however, does not include any benefit increase resulting from | ||||||
2 | the changes made to Article 1 or this Article by Public Act | ||||||
3 | 100-23, Public Act 100-587, Public Act 100-769, Public Act | ||||||
4 | 101-10, Public Act 101-610, Public Act 102-16, or this | ||||||
5 | amendatory Act of the 103rd General Assembly this amendatory | ||||||
6 | Act of the 102nd General Assembly . | ||||||
7 | (b) Notwithstanding any other provision of this Code or | ||||||
8 | any subsequent amendment to this Code, every new benefit | ||||||
9 | increase is subject to this Section and shall be deemed to be | ||||||
10 | granted only in conformance with and contingent upon | ||||||
11 | compliance with the provisions of this Section.
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12 | (c) The Public Act enacting a new benefit increase must | ||||||
13 | identify and provide for payment to the System of additional | ||||||
14 | funding at least sufficient to fund the resulting annual | ||||||
15 | increase in cost to the System as it accrues. | ||||||
16 | Every new benefit increase is contingent upon the General | ||||||
17 | Assembly providing the additional funding required under this | ||||||
18 | subsection. The Commission on Government Forecasting and | ||||||
19 | Accountability shall analyze whether adequate additional | ||||||
20 | funding has been provided for the new benefit increase and | ||||||
21 | shall report its analysis to the Public Pension Division of | ||||||
22 | the Department of Insurance. A new benefit increase created by | ||||||
23 | a Public Act that does not include the additional funding | ||||||
24 | required under this subsection is null and void. If the Public | ||||||
25 | Pension Division determines that the additional funding | ||||||
26 | provided for a new benefit increase under this subsection is |
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1 | or has become inadequate, it may so certify to the Governor and | ||||||
2 | the State Comptroller and, in the absence of corrective action | ||||||
3 | by the General Assembly, the new benefit increase shall expire | ||||||
4 | at the end of the fiscal year in which the certification is | ||||||
5 | made.
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6 | (d) Every new benefit increase shall expire 5 years after | ||||||
7 | its effective date or on such earlier date as may be specified | ||||||
8 | in the language enacting the new benefit increase or provided | ||||||
9 | under subsection (c). This does not prevent the General | ||||||
10 | Assembly from extending or re-creating a new benefit increase | ||||||
11 | by law. | ||||||
12 | (e) Except as otherwise provided in the language creating | ||||||
13 | the new benefit increase, a new benefit increase that expires | ||||||
14 | under this Section continues to apply to persons who applied | ||||||
15 | and qualified for the affected benefit while the new benefit | ||||||
16 | increase was in effect and to the affected beneficiaries and | ||||||
17 | alternate payees of such persons, but does not apply to any | ||||||
18 | other person, including, without limitation, a person who | ||||||
19 | continues in service after the expiration date and did not | ||||||
20 | apply and qualify for the affected benefit while the new | ||||||
21 | benefit increase was in effect.
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22 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
23 | 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
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