Bill Text: IL SB1235 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Further amends the State Universities Article of the Illinois Pension Code. Provides that beginning September 1, 2024, a provision excluding specified earnings in the determination of the final rate of earnings applies to an employee who has been employed at 1/2 time or less for 3 or more years. Adds an inseverability provision. Effective immediately.

Spectrum: Partisan Bill (Democrat 51-0)

Status: (Passed) 2023-08-11 - Public Act . . . . . . . . . 103-0548 [SB1235 Detail]

Download: Illinois-2023-SB1235-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1235 Introduced 2/2/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/15-134.1 from Ch. 108 1/2, par. 15-134.1
40 ILCS 5/15-198
Amends the State Universities Article of the Illinois Pension Code. Provides that for the purposes of computing service for academic years for any participant, one month of service means a calendar month during which the participant qualifies as an employee for any fraction of the month (instead of at least 15 or more days). Provides that the change applies to all service periods of a member who is a participant on or after January 1, 2024, except for certain service periods subject to purchases of service credit, repayment of a refund or distribution, or transfers of service if payment for such purchase, repayment, or transfer commenced prior to January 1, 2024. Provides that a provision concerning calculating a retirement annuity for a participant who has been employed at 1/2 time or less for 3 or more years shall not apply to a member who is a participant on or after January 1, 2024. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming changes. Effective immediately.
LRB103 25499 RPS 51848 b
A BILL FOR
SB1235 LRB103 25499 RPS 51848 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 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) For the purposes of computing service for academic
years for any participant, 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. No more than one year of
service may be granted per academic year, regardless of the
number of hours or percentage of time worked. This subsection
(a) does not apply to service periods to which subsection

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(a-5) applies.
(a-5) For the purposes of computing service for academic
years for any participant, 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 any fraction of the month, 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. No more than one year of service may be granted per
academic year, regardless of the number of hours or percentage
of time worked.
This subsection (a-5) applies to all service periods of a
member who is a participant on or after January 1, 2024; except
that such changes shall not apply to service periods that were
subject to: (1) a purchase under subsection (i) of Section
15-107, subsection (c) of Section 15-113.1, or Section
15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or
15-113.11; (2) a repayment of a refund under subsection (b) of
Section 15-154 or a distribution under subsection (j) of
Section 15-158.2; or (3) a transfer under Section 15-113.10,
15-134.2, or 15-134.4 if payment for such purchase, repayment,

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or transfer commenced prior to January 1, 2024.
(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
percentage of time employed shall be as reported by the
employer. This subsection (b) shall not apply to a member who
is a participant on or after January 1, 2024.
(Source: P.A. 87-8.)
(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

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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, Public Act 102-16, or this
amendatory Act of the 103rd General Assembly or this
amendatory Act of the 102nd 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
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

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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
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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.