Illinois-2023-SB1235-Introduced

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

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LRB103 25499 RPS 51848 b

1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Pension Code is amended by

5 changing Sections 15-134.1 and 15-198 as follows:

6 (40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)

7 Sec. 15-134.1. Service calculation and adjustment.

8 (a) For the purposes of computing service for academic

9 years for any participant, ~~In computing service,~~ the following

10 schedule shall govern: one month of service means a calendar

11 month during which a participant (i) qualifies as an employee

12 under Section 15-107 for at least 15 or more days, and (ii)

13 receives any earnings as an employee; 8 or more months of

14 service during an academic year shall constitute a year of

15 service; 6 or more but less than 8 months of service during an

16 academic year shall constitute 3/4 of a year of service; 3 or

17 more but less than 6 months of service during an academic year

18 shall constitute 1/2 of a year of service; and one or more but

19 less than 3 months of service during an academic year shall

20 constitute 1/4 of a year of service. No more than one year of

21 service may be granted per academic year, regardless of the

22 number of hours or percentage of time worked. This subsection

23 (a) does not apply to service periods to which subsection

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1 (a-5) applies.

2 (a-5) For the purposes of computing service for academic

3 years for any participant, the following schedule shall

4 govern: one month of service means a calendar month during

5 which a participant (i) qualifies as an employee under Section

6 15-107 for any fraction of the month, and (ii) receives any

7 earnings as an employee; 8 or more months of service during an

8 academic year shall constitute a year of service; 6 or more but

9 less than 8 months of service during an academic year shall

10 constitute 3/4 of a year of service; 3 or more but less than 6

11 months of service during an academic year shall constitute 1/2

12 of a year of service; and one or more but less than 3 months of

13 service during an academic year shall constitute 1/4 of a year

14 of service. No more than one year of service may be granted per

15 academic year, regardless of the number of hours or percentage

16 of time worked.

17 This subsection (a-5) applies to all service periods of a

18 member who is a participant on or after January 1, 2024; except

19 that such changes shall not apply to service periods that were

20 subject to: (1) a purchase under subsection (i) of Section

21 15-107, subsection (c) of Section 15-113.1, or Section

22 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or

23 15-113.11; (2) a repayment of a refund under subsection (b) of

24 Section 15-154 or a distribution under subsection (j) of

25 Section 15-158.2; or (3) a transfer under Section 15-113.10,

26 15-134.2, or 15-134.4 if payment for such purchase, repayment,

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1 or transfer commenced prior to January 1, 2024.

2 (b) In calculating a retirement annuity, if a participant

3 has been employed at 1/2 time or less for 3 or more years after

4 September 1, 1959, service shall be granted for such

5 employment in excess of 3 years, in the proportion that the

6 percentage of time employed for each such year of employment

7 bears to the average annual percentage of time employed during

8 the period on which the final rate of earnings is based. This

9 adjustment shall not be made, however, in determining the

10 eligibility for a retirement annuity, disability benefits,

11 additional death benefits, or survivors' insurance. The

12 percentage of time employed shall be as reported by the

13 employer. This subsection (b) shall not apply to a member who

14 is a participant on or after January 1, 2024.

15 (Source: P.A. 87-8.)

16 (40 ILCS 5/15-198)

17 Sec. 15-198. Application and expiration of new benefit

18 increases.

19 (a) As used in this Section, "new benefit increase" means

20 an increase in the amount of any benefit provided under this

21 Article, or an expansion of the conditions of eligibility for

22 any benefit under this Article, that results from an amendment

23 to this Code that takes effect after June 1, 2005 (the

24 effective date of Public Act 94-4). "New benefit increase",

25 however, does not include any benefit increase resulting from

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1 the changes made to Article 1 or this Article by Public Act

2 100-23, Public Act 100-587, Public Act 100-769, Public Act

3 101-10, Public Act 101-610, Public Act 102-16, or this

4 amendatory Act of the 103rd General Assembly ~~or this~~

5 ~~amendatory Act of the 102nd General Assembly~~.

6 (b) Notwithstanding any other provision of this Code or

7 any subsequent amendment to this Code, every new benefit

8 increase is subject to this Section and shall be deemed to be

9 granted only in conformance with and contingent upon

10 compliance with the provisions of this Section.

11 (c) The Public Act enacting a new benefit increase must

12 identify and provide for payment to the System of additional

13 funding at least sufficient to fund the resulting annual

14 increase in cost to the System as it accrues.

15 Every new benefit increase is contingent upon the General

16 Assembly providing the additional funding required under this

17 subsection. The Commission on Government Forecasting and

18 Accountability shall analyze whether adequate additional

19 funding has been provided for the new benefit increase and

20 shall report its analysis to the Public Pension Division of

21 the Department of Insurance. A new benefit increase created by

22 a Public Act that does not include the additional funding

23 required under this subsection is null and void. If the Public

24 Pension Division determines that the additional funding

25 provided for a new benefit increase under this subsection is

26 or has become inadequate, it may so certify to the Governor and

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1 the State Comptroller and, in the absence of corrective action

2 by the General Assembly, the new benefit increase shall expire

3 at the end of the fiscal year in which the certification is

4 made.

5 (d) Every new benefit increase shall expire 5 years after

6 its effective date or on such earlier date as may be specified

7 in the language enacting the new benefit increase or provided

8 under subsection (c). This does not prevent the General

9 Assembly from extending or re-creating a new benefit increase

10 by law.

11 (e) Except as otherwise provided in the language creating

12 the new benefit increase, a new benefit increase that expires

13 under this Section continues to apply to persons who applied

14 and qualified for the affected benefit while the new benefit

15 increase was in effect and to the affected beneficiaries and

16 alternate payees of such persons, but does not apply to any

17 other person, including, without limitation, a person who

18 continues in service after the expiration date and did not

19 apply and qualify for the affected benefit while the new

20 benefit increase was in effect.

21 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;

22 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)

23 Section 99. Effective date. This Act takes effect upon

24 becoming law.