Bill Text: IL SB0044 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the State Universities Article of the Illinois Pension Code. Provides that in computing service: if a participant's first day of service begins with less than 15 days remaining in the month, the participant shall be deemed to have qualified as an employee for that entire month; and if a participant's last day of service occurs before the 15th day of the month, the participant shall be deemed to have qualified as an employee for that entire month. Provides that teaching a course or courses totaling 3 or more credit hours or lecture hours equivalent in one semester or 2 quarters shall constitute 4 months of service. Provides that the changes made by the amendatory Act are retroactive to 2 years before the effective date of the amendatory Act. Provides that a participant may request a recalculation of his or her service based on the changes made by the amendatory Act. Requires an employer to annually provide to each of its participating employees a statement of the amount of service the employer reported to the System for that participating employee during the preceding academic year. Provides that if a person disputes the amount of any benefit payment, the amount of service credit the benefit was based on, the formula used to calculate the benefit, the calculation of the benefit, or the information provided to the System by the employer, he or she may, within 90 days after the commencement of the benefit, apply to the System in writing for a recalculation. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-01-29 - Referred to Assignments [SB0044 Detail]

Download: Illinois-2021-SB0044-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB0044 Introduced 1/29/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
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Amends the State Universities Article of the Illinois Pension Code. Provides that in computing service: if a participant's first day of service begins with less than 15 days remaining in the month, the participant shall be deemed to have qualified as an employee for that entire month; and if a participant's last day of service occurs before the 15th day of the month, the participant shall be deemed to have qualified as an employee for that entire month. Provides that teaching a course or courses totaling 3 or more credit hours or lecture hours equivalent in one semester or 2 quarters shall constitute 4 months of service. Provides that the changes made by the amendatory Act are retroactive to 2 years before the effective date of the amendatory Act. Provides that a participant may request a recalculation of his or her service based on the changes made by the amendatory Act. Requires an employer to annually provide to each of its participating employees a statement of the amount of service the employer reported to the System for that participating employee during the preceding academic year. Provides that if a person disputes the amount of any benefit payment, the amount of service credit the benefit was based on, the formula used to calculate the benefit, the calculation of the benefit, or the information provided to the System by the employer, he or she may, within 90 days after the commencement of the benefit, apply to the System in writing for a recalculation. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes other changes. Effective immediately.
LRB102 00988 RPS 10990 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB0044 LRB102 00988 RPS 10990 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 Sections 15-134.1, 15-175, 15-181, 15-186.1, and
15-198 as follows:
(40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)
Sec. 15-134.1. Service calculation and adjustment.
(a) In computing service, the following schedule shall
govern: one month of service means a calendar month during
which a participant (i) qualifies as an employee under Section
15-107 for at least 15 or more days, and (ii) receives any
earnings as an employee; 8 or more months of service during an
academic year shall constitute a year of service; 6 or more but
less than 8 months of service during an academic year shall
constitute 3/4 of a year of service; 3 or more but less than 6
months of service during an academic year shall constitute 1/2
of a year of service; and one or more but less than 3 months of
service during an academic year shall constitute 1/4 of a year
of service. In computing service: if a participant's first day
of service begins with less than 15 days remaining in the
month, the participant shall be deemed to have qualified as an
employee for that entire month; and if a participant's last

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day of service occurs before the 15th day of the month, the
participant shall be deemed to have qualified as an employee
for that entire month. No more than one year of service may be
granted per academic year, regardless of the number of hours
or percentage of time worked.
(a-5) Notwithstanding subsection (a), teaching a course or
courses totaling 3 or more credit hours or lecture hours
equivalent in one semester or 2 quarters shall constitute 4
months of service, regardless of the number of hours worked or
whether the dates on which the person taught the course
equaled 4 months. If the application of this subsection would
result in a lesser benefit to a participant, then this
subsection does not apply. No more than one year of service may
be granted per academic year, regardless of the number of
hours or percentage of time worked or the number of credit
hours or lecture hours equivalent taught.
(b) In calculating a retirement annuity, if a participant
has been employed at 1/2 time or less for 3 or more years after
September 1, 1959, service shall be granted for such
employment in excess of 3 years, in the proportion that the
percentage of time employed for each such year of employment
bears to the average annual percentage of time employed during
the period on which the final rate of earnings is based. This
adjustment shall not be made, however, in determining the
eligibility for a retirement annuity, disability benefits,
additional death benefits, or survivors' insurance. The

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percentage of time employed shall be as reported by the
employer.
(c) The changes made by this amendatory Act of the 102nd
General Assembly apply retroactively to 2 years before the
effective date of this amendatory Act of the 102nd General
Assembly. A participant may request that the System
recalculate his or her service based on the changes made by
this amendatory Act of the 102nd General Assembly.
(Source: P.A. 87-8.)
(40 ILCS 5/15-175) (from Ch. 108 1/2, par. 15-175)
Sec. 15-175. To provide statements.
To make available to the participants and annuitants a
financial statement including a summary of the report of the
certified public accountant; and to submit an individual
statement specifying the accumulations to the credit, as of
the latest date practicable, of any participant so requesting;
and to annually provide the formula for calculating pension
benefits to any employee who is not a full-time employee.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
Sec. 15-181. Duties of employers.
(a) Each employer, in preparing payroll vouchers for
participating employees, shall indicate, in addition to other
information: (1) the amount of employee contributions and

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survivors insurance contributions required under Section
15-157, (2) the gross earnings payable to each employee, and
(3) the total of all contributions required under Section
15-157.
(b) Each employer, in drawing warrants or checks against
trust or federal funds for items of salary on payroll vouchers
certified by employers, shall draw such warrants or checks to
participating employees for the amount of cash salary or wages
specified for the period, and shall draw a warrant or check to
this system for the total of the contributions required under
Section 15-157. The warrant or check drawn to this system,
together with the additional copy of the payroll supplied by
the employer, shall be transmitted immediately to the board.
(c) The City of Champaign and the City of Urbana, as
employers of persons who participate in this System pursuant
to subsection (h) of Section 15-107, shall each collect and
transmit to the System from each payroll the employee
contributions required under Section 15-157, together with
such payroll documentation as the Board may require, at the
time that the payroll is paid.
(d) Each employer shall annually provide to its
participating employees a statement of the amount of service
the employer reported to the System for that participating
employee during the preceding academic year.
(Source: P.A. 90-576, eff. 3-31-98; 91-887, eff. 7-6-00.)

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(40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
Sec. 15-186.1. Mistake in benefit. If the System
mistakenly sets any benefit at an incorrect amount, it shall
recalculate the benefit as soon as may be practicable after
the mistake is discovered.
If the benefit was mistakenly set too low, the System
shall make a lump sum payment to the recipient of an amount
equal to the difference between the benefits that should have
been paid and those actually paid, plus interest at the
effective rate from the date the unpaid amounts accrued to the
date of payment.
If the benefit was mistakenly set too high, the System may
recover the amount overpaid from the recipient thereof, plus
interest at the effective rate from the date of overpayment to
the date of recovery, either directly or by deducting such
amount from the remaining benefits payable to the recipient.
However, if (1) the amount of the benefit was mistakenly set
too high, and (2) the error was undiscovered for 3 years or
longer, and (3) the error was not the result of incorrect
information supplied by the affected member or beneficiary,
then upon discovery of the mistake the benefit shall be
adjusted to the correct level, but the recipient of the
benefit need not repay to the System the excess amounts
received in error.
If a person disputes the amount of any benefit payment,
the amount of service credit the benefit was based on, the

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formula used to calculate the benefit, the calculation of the
benefit, or the information provided to the System by the
employer, he or she may, within 90 days after the commencement
of the benefit, apply to the System in writing for a
recalculation.
(Source: P.A. 93-347, eff. 7-24-03.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
100-23, Public Act 100-587, Public Act 100-769, Public Act
101-10, Public Act 101-610, or this amendatory Act of the
102nd General Assembly this amendatory Act of the 101st
General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon

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compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase

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by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-769, eff. 8-10-18; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19; 101-610, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance