Bill Text: IL HB3969 | 2011-2012 | 97th General Assembly | Enrolled

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

---

Bill Title: Amends the General Provisions and General Assembly Articles of the Illinois Pension Code. In the General Provisions Article, provides that, if a participant's final average salary in a participating system under the Retirement Systems Reciprocal Act, other than the General Assembly Retirement System, is used to calculate a proportional retirement annuity for that participant under the General Assembly Retirement System and if that final average salary is higher than the highest salary for annuity purposes of that person under the General Assembly Retirement System, then the increased cost of the proportional annuity paid by the General Assembly Retirement System that is attributable to that higher level of compensation shall be paid by the employer of the participant under that system and not by the General Assembly Retirement System. In the General Assembly Article, provides that certain limitations on highest salary for annuity purposes apply to the earnings of a person who first became a member of the General Assembly Retirement System before August 22, 1994 if, on or after the effective date of the amendatory Act, that member irrevocably elects to have those limitations apply. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Passed) 2012-08-16 - Public Act . . . . . . . . . 97-0967 [HB3969 Detail]

Download: Illinois-2011-HB3969-Enrolled.html

---

HB3969 Enrolled LRB097 16460 EFG 61624 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 2-108.1 and by adding Sections 1-166 and 2-126.2 as
follows:
(40 ILCS 5/1-166 new)
Sec. 1-166. Proportional annuity liability.
(a) If a participant's final average salary in a
participating system under the Retirement Systems Reciprocal
Act, other than the General Assembly Retirement System, is used
to calculate a proportional retirement annuity for that
participant under the General Assembly Retirement System, if
that final average salary is higher than the highest salary for
annuity purposes of that person under the General Assembly
Retirement System, and if the participant retires after the
effective date of this Section with less than 2 years of
service that has accrued in that participating system since his
or her last day of active participation in the General Assembly
Retirement System, then the increased cost of the proportional
annuity paid by the General Assembly Retirement System that is
attributable to that higher level of compensation shall be paid
by the employer of the participant under that other

HB3969 Enrolled - 2 - LRB097 16460 EFG 61624 b
participating system to the General Assembly Retirement System
in the form of a lump sum payment determined by the General
Assembly Retirement System in accordance with its annuity
tables and other actuarial assumptions.
(b) For the purposes of this Section, "final average salary
in a participating system under the Retirement Systems
Reciprocal Act, other than the General Assembly Retirement
System," includes:
(1) In Section 1-160 and Articles 16 and 18, "final
average salary".
(2) In Articles 7 and 15, "final rate of earnings".
(3) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(4) In Article 13, "average final salary".
(5) In Article 14, "final average compensation".
(6) In Article 17, "average salary".
(7) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(c) If an employer fails to pay the amount required under
this Section to the General Assembly Retirement System for more
than 90 days after the payment is due, the System, after giving
notice to the employer, may certify to the State Comptroller
the amount of the delinquent payment and the Comptroller shall
deduct the amount so certified or any part thereof from any

HB3969 Enrolled - 3 - LRB097 16460 EFG 61624 b
payment of State funds to the employer and shall pay the amount
so deducted to the System. If State funds from which such
deductions may be made are not available, then the System may
proceed against the employer to recover the amount of the
delinquent payment in the appropriate circuit court.
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public Act
96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's last
day of service, for a member of the General Assembly who is
not an officer; plus, if the participant was elected or
appointed to serve as an officer of the General Assembly
for 2 or more years and has made contributions as required
under subsection (d) of Section 2-126, the highest
additional amount of compensation prescribed by law, at the
time of the participant's service as an officer, for
members of the General Assembly who serve in that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her

HB3969 Enrolled - 4 - LRB097 16460 EFG 61624 b
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day of
service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary obtained
by dividing the total salary of the participant during the
period of: (1) the 48 consecutive months of service within the

HB3969 Enrolled - 5 - LRB097 16460 EFG 61624 b
last 120 months of service in which the total compensation was
the highest, or (2) the total period of service, if less than
48 months, by the number of months of service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889), the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, beginning
January 1, 2011, the highest salary for annuity purposes may
not exceed $106,800, except that that amount shall annually
thereafter be increased by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the Board by November 1 of
each year.
(b) The earnings limitations of subsection (a) apply to

HB3969 Enrolled - 6 - LRB097 16460 EFG 61624 b
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating a proportional annuity under this Article, except
in the case of a person who first became a member of this
System before August 22, 1994 and has not, on or after the
effective date of this amendatory Act of the 97th General
Assembly, irrevocably elected to have those limitations apply.
The limitations of subsection (a) shall apply, however, to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating the proportional annuity of a person who first
became a member of this System before August 22, 1994 if, on or
after the effective date of this amendatory Act of the 97th
General Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11.)
Section 99. Effective date. This Act takes effect upon

HB3969 Enrolled - 7 - LRB097 16460 EFG 61624 b
becoming law.