Bill Text: IL SB1646 | 2023-2024 | 103rd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the bill, as amended by Senate Amendment No. 1, with the following changes. Further amends the Illinois Pension Code. In the Chicago Laborers Article, provides that the Board of Trustees of the Fund has the power to issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund. Makes changes concerning witness fees. In the General Provisions Article, excludes disclosures made to the Municipal Employees Society of Chicago from a provision that prohibits the disclosure of certain information regarding members or participants of a pension fund or retirement system. In the Firefighters' Pension Investment Fund Article, makes changes concerning the oath of office; reimbursement for travel expenses; and trustee vacancies. In the Chicago Municipal Article, provides that for school years beginning on or after July 1, 2023, an age and service or prior service annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a paraprofessional or related service provider on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. Amends the School Code. Provides that the school board and other employers shall make available to each active teacher who is an elected trustee under the Chicago Teachers Article of the Illinois Pension Code up to 22 days of paid leave of absence per year for the purpose of attending meetings and seminars of the Board of Trustees. In the Downstate Teacher Article of the Illinois Pension Code, makes changes concerning the employer's submission of reports and contributions. In the Cook County Article of the Code, provides that if an employee annuitant re-enters service as an election worker and provides services for a scheduled federal, State, or local election for a period of 60 days or less during a calendar year, that employee annuitant's annuity shall not be suspended. In a provision of the Chicago Teachers Article allowing a member to establish credit for service as a teacher or administrator employed by a private school, provides that the applicable interest rate is the actuarially assumed rate in effect at the time of application (rather than at a rate determined by the Board of Trustees). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2023-08-11 - Public Act . . . . . . . . . 103-0552 [SB1646 Detail]
Download: Illinois-2023-SB1646-Enrolled.html
Bill Title: Reinserts the provisions of the bill, as amended by Senate Amendment No. 1, with the following changes. Further amends the Illinois Pension Code. In the Chicago Laborers Article, provides that the Board of Trustees of the Fund has the power to issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund. Makes changes concerning witness fees. In the General Provisions Article, excludes disclosures made to the Municipal Employees Society of Chicago from a provision that prohibits the disclosure of certain information regarding members or participants of a pension fund or retirement system. In the Firefighters' Pension Investment Fund Article, makes changes concerning the oath of office; reimbursement for travel expenses; and trustee vacancies. In the Chicago Municipal Article, provides that for school years beginning on or after July 1, 2023, an age and service or prior service annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a paraprofessional or related service provider on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. Amends the School Code. Provides that the school board and other employers shall make available to each active teacher who is an elected trustee under the Chicago Teachers Article of the Illinois Pension Code up to 22 days of paid leave of absence per year for the purpose of attending meetings and seminars of the Board of Trustees. In the Downstate Teacher Article of the Illinois Pension Code, makes changes concerning the employer's submission of reports and contributions. In the Cook County Article of the Code, provides that if an employee annuitant re-enters service as an election worker and provides services for a scheduled federal, State, or local election for a period of 60 days or less during a calendar year, that employee annuitant's annuity shall not be suspended. In a provision of the Chicago Teachers Article allowing a member to establish credit for service as a teacher or administrator employed by a private school, provides that the applicable interest rate is the actuarially assumed rate in effect at the time of application (rather than at a rate determined by the Board of Trustees). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2023-08-11 - Public Act . . . . . . . . . 103-0552 [SB1646 Detail]
Download: Illinois-2023-SB1646-Enrolled.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 | Article 1. | ||||||
5 | Section 1-5. The Illinois Pension Code is amended by | ||||||
6 | changing Section 11-196 and by adding Section 12-162.5 as | ||||||
7 | follows:
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8 | (40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
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9 | Sec. 11-196. To subpoena witnesses and compel the | ||||||
10 | production of records . To issue subpoenas to compel the | ||||||
11 | attendance of witnesses to testify before it and to compel the | ||||||
12 | production of documents and records upon any matter concerning | ||||||
13 | the
Fund, including, but not limited to, in conjunction with: | ||||||
14 | fund and allow witness fees not in excess of $6 per day. | ||||||
15 | (1) a disability claim; | ||||||
16 | (2) an administrative review proceeding; | ||||||
17 | (3) an attempt to obtain information to assist in the | ||||||
18 | collection of sums due to the Fund; | ||||||
19 | (4) obtaining any and all personal identifying | ||||||
20 | information necessary for the administration of benefits; | ||||||
21 | (5) the determination of the death of a benefit | ||||||
22 | recipient or a potential benefit recipient; or |
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1 | (6) a felony forfeiture investigation. | ||||||
2 | The fees of witnesses for attendance and travel shall be | ||||||
3 | the same as the fees of witnesses before the circuit courts of | ||||||
4 | this State and shall be paid by the party seeking the subpoena. | ||||||
5 | The Board may apply to any circuit court in the State for an | ||||||
6 | order requiring compliance with a subpoena issued under this | ||||||
7 | Section. Subpoenas issued under this Section shall be subject | ||||||
8 | to applicable provisions of the Code of Civil Procedure. The | ||||||
9 | president or
other members of the board may administer oaths | ||||||
10 | to witnesses.
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11 | (Source: Laws 1963, p. 161.)
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12 | (40 ILCS 5/12-162.5 new) | ||||||
13 | Sec. 12-162.5. To subpoena witnesses and compel the | ||||||
14 | production of records. To issue subpoenas to compel the | ||||||
15 | attendance of witnesses to testify before it and to compel the | ||||||
16 | production of documents and records upon any matter concerning | ||||||
17 | the Fund, including, but not limited to, in conjunction with: | ||||||
18 | (1) a disability claim; | ||||||
19 | (2) an administrative review proceeding; | ||||||
20 | (3) an attempt to obtain information to assist in the | ||||||
21 | collection of sums due to the Fund; | ||||||
22 | (4) obtaining any and all personal identifying | ||||||
23 | information necessary for the administration of benefits; | ||||||
24 | (5) the determination of the death of a benefit | ||||||
25 | recipient or a potential benefit recipient; or |
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1 | (6) a felony forfeiture investigation. | ||||||
2 | The fees of witnesses for attendance and travel shall be | ||||||
3 | the same as the fees of witnesses before the circuit courts of | ||||||
4 | this State and shall be paid by the party seeking the subpoena. | ||||||
5 | The Board may apply to any circuit court in the State for an | ||||||
6 | order requiring compliance with a subpoena issued under this | ||||||
7 | Section. Subpoenas issued under this Section shall be subject | ||||||
8 | to applicable provisions of the Code of Civil Procedure. The | ||||||
9 | president or other members of the board may administer oaths | ||||||
10 | to witnesses.
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11 | Article 2. | ||||||
12 | Section 2-5. The Illinois Pension Code is amended by | ||||||
13 | changing Sections 15-202, 16-204, 24-104, and 24-107 as | ||||||
14 | follows:
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15 | (40 ILCS 5/15-202) | ||||||
16 | Sec. 15-202. Optional deferred compensation plan. | ||||||
17 | (a) As soon as practicable after August 10, 2018 (the | ||||||
18 | effective date of Public Act 100-769), the System shall offer | ||||||
19 | a deferred compensation plan that is eligible under Section | ||||||
20 | 457(b) of the Internal Revenue Code of 1986, as amended, to | ||||||
21 | participating employees of the System employed by employers | ||||||
22 | described in Section 15-106 of this Code that qualify as | ||||||
23 | eligible employers under Section 457(e)(1)(A) of the Internal |
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1 | Revenue Code of 1986, as amended. Such eligible employers | ||||||
2 | shall adopt the plan with an effective date no later than | ||||||
3 | September 1, 2021. Participating employees may voluntarily | ||||||
4 | elect to make elective deferrals to the eligible deferred | ||||||
5 | compensation plan. Eligible employers may make optional | ||||||
6 | employer contributions to the plan on behalf of participating | ||||||
7 | employees, which contributions may be maintained, increased, | ||||||
8 | reduced, or eliminated at the discretion of the employer from | ||||||
9 | plan year to plan year. The plan shall collect voluntary | ||||||
10 | employee and optional employer contributions into an account | ||||||
11 | for each participant and shall offer investment options to the | ||||||
12 | participant. The plan under this Section shall be operated in | ||||||
13 | full compliance with any applicable State and federal laws, | ||||||
14 | and the System shall utilize generally accepted practices in | ||||||
15 | creating and maintaining the plan for the best interest of the | ||||||
16 | participants. In administering the deferred compensation plan, | ||||||
17 | the System shall require that the deferred compensation plan | ||||||
18 | recordkeeper agree that, in performing services with respect | ||||||
19 | to the deferred compensation plan, the recordkeeper: (i) will | ||||||
20 | not use information received as a result of providing services | ||||||
21 | with respect to the deferred compensation plan or the | ||||||
22 | participants in the deferred compensation plan to solicit the | ||||||
23 | participants in the deferred compensation plan for the purpose | ||||||
24 | of cross-selling nonplan products and services, unless in | ||||||
25 | response to a request by a participant in the deferred | ||||||
26 | compensation plan; and (ii) will not promote, recommend, |
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1 | endorse, or solicit participants in the deferred compensation | ||||||
2 | plan to purchase any financial products or services outside of | ||||||
3 | the deferred compensation plan, except that links to parts of | ||||||
4 | the recordkeeper's website that are generally available to the | ||||||
5 | public, are about commercial products, and may be encountered | ||||||
6 | by a participant in the regular course of navigating the | ||||||
7 | recordkeeper's website will not constitute a violation of this | ||||||
8 | item (ii). The System may use funds from the employee and | ||||||
9 | employer contributions to defray any and all costs of creating | ||||||
10 | and maintaining the plan. The System shall produce an annual | ||||||
11 | report on the participation in the plan and shall make the | ||||||
12 | report public.
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13 | (b) The System shall automatically enroll in the eligible | ||||||
14 | deferred compensation plan any employee of an eligible | ||||||
15 | employer who first becomes a participating employee of the | ||||||
16 | System on or after July 1, 2023 under an eligible automatic | ||||||
17 | contribution arrangement that is subject to Section 414(w) of | ||||||
18 | the Internal Revenue Code of 1986, as amended, and the United | ||||||
19 | States Department of Treasury regulations promulgated | ||||||
20 | thereunder. An employee who is automatically enrolled under | ||||||
21 | this subsection (b) shall have 3% of his or her compensation, | ||||||
22 | as defined by the plan, for each pay period deferred on a | ||||||
23 | pre-tax basis into his or her account, subject to any | ||||||
24 | contribution limits applicable to the plan. The Board may | ||||||
25 | increase the default percentage of compensation deferred under | ||||||
26 | this subsection (b). |
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1 | An employee shall have 30 days from the date on which the | ||||||
2 | System provides the notice required under Section 414(w) of | ||||||
3 | the Internal Revenue Code of 1986, as amended, to elect to not | ||||||
4 | participate in the eligible deferred compensation plan or to | ||||||
5 | elect to increase or reduce the initial amount of elective | ||||||
6 | deferrals made to the plan. In the absence of such affirmative | ||||||
7 | election, the employee shall be automatically enrolled in the | ||||||
8 | plan on the first day of the calendar month, or as soon as | ||||||
9 | administratively practicable thereafter, following the 30th | ||||||
10 | day from the date on which the System provides the required | ||||||
11 | notice. An employee who has been automatically enrolled in the | ||||||
12 | plan under this subsection (b) may elect, within 90 days of | ||||||
13 | enrollment, to withdraw from the plan and receive a refund of | ||||||
14 | amounts deferred, adjusted by applicable earnings and fees. An | ||||||
15 | employee making such an election shall forfeit all employer | ||||||
16 | matching contributions, if any, made with respect to such | ||||||
17 | refunded elective deferrals and such forfeited amounts shall | ||||||
18 | be used to defray plan expenses. Any refunded elective | ||||||
19 | deferrals shall be included in the employee's gross income for | ||||||
20 | the taxable year in which the refund is issued. | ||||||
21 | (c) The System may provide for one or more automatic | ||||||
22 | contribution arrangements, which shall comply with all | ||||||
23 | applicable Internal Revenue Service rules and regulations, in | ||||||
24 | conjunction with or in lieu of the eligible automatic | ||||||
25 | contribution arrangement under subsection (b), for | ||||||
26 | participating employees of eligible employers whose annual |
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1 | earnings are limited by application of subsection (b) of | ||||||
2 | Section 15-111 of this Code. The amount of elective deferrals | ||||||
3 | made for the employee each pay period under an automatic | ||||||
4 | contribution arrangement shall equal the default percentage | ||||||
5 | specified by resolution of the Board multiplied by the | ||||||
6 | employee's compensation as defined by the plan, subject to any | ||||||
7 | contribution limits applicable to the plan, and shall be made | ||||||
8 | on a pre-tax basis. An employee subject to this subsection (c) | ||||||
9 | shall have 30 days from the date on which the System provides | ||||||
10 | written notice to the employee to elect to not participate in | ||||||
11 | the eligible deferred compensation plan or to elect to | ||||||
12 | increase or reduce the amount of initial elective deferrals | ||||||
13 | made to the plan. In the absence of such affirmative election, | ||||||
14 | the employee shall be automatically enrolled in the plan | ||||||
15 | beginning the first day of the calendar month, or as soon as | ||||||
16 | administratively practicable thereafter, following the 30th | ||||||
17 | day from the date on which the System provides the required | ||||||
18 | notice. | ||||||
19 | (d) The System may provide that the default percentage for | ||||||
20 | any employee automatically enrolled in the eligible deferred | ||||||
21 | compensation plan under subsection (b) or (c) be increased by | ||||||
22 | a specified percentage each plan year after the plan year in | ||||||
23 | which the employee is automatically enrolled in the plan. The | ||||||
24 | amount of automatic annual increases in any plan year shall | ||||||
25 | not exceed 1% of compensation as defined by the plan. | ||||||
26 | (e) The changes made to this Section by this amendatory |
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1 | Act of the 102nd General Assembly are corrections of existing | ||||||
2 | law and are intended to be retroactive to the effective date of | ||||||
3 | Public Act 100-769, notwithstanding Section 1-103.1 of this | ||||||
4 | Code. | ||||||
5 | (Source: P.A. 102-540, eff. 8-20-21.)
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6 | (40 ILCS 5/16-204) | ||||||
7 | Sec. 16-204. Optional defined contribution benefit. As | ||||||
8 | soon as practicable after the effective date of this | ||||||
9 | amendatory Act of the 100th General Assembly, the System shall | ||||||
10 | offer a defined contribution benefit to active members of the | ||||||
11 | System. The defined contribution benefit shall be an optional | ||||||
12 | benefit to any member who chooses to participate. The defined | ||||||
13 | contribution benefit shall collect optional employee and | ||||||
14 | optional employer contributions into an account and shall | ||||||
15 | offer investment options to the participant. The benefit under | ||||||
16 | this Section shall be operated in full compliance with any | ||||||
17 | applicable State and federal laws, and the System shall | ||||||
18 | utilize generally accepted practices in creating and | ||||||
19 | maintaining the benefit for the best interest of the | ||||||
20 | participants. In administering the defined contribution | ||||||
21 | benefit, the System shall require that the defined | ||||||
22 | contribution benefit recordkeeper agree that, in performing | ||||||
23 | services with respect to the defined contribution benefit, the | ||||||
24 | recordkeeper: (i) will not use information received as a | ||||||
25 | result of providing services with respect to the defined |
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1 | contribution benefit or the participants in the defined | ||||||
2 | contribution benefit to solicit the participants in the | ||||||
3 | defined contribution benefit for the purpose of cross-selling | ||||||
4 | nonplan products and services, unless in response to a request | ||||||
5 | by a participant in the defined contribution benefit; and (ii) | ||||||
6 | will not promote, recommend, endorse, or solicit participants | ||||||
7 | in the defined contribution benefit to purchase any financial | ||||||
8 | products or services outside of the defined contribution | ||||||
9 | benefit, except that links to parts of the recordkeeper's | ||||||
10 | website that are generally available to the public, are about | ||||||
11 | commercial products, and may be encountered by a participant | ||||||
12 | in the regular course of navigating the recordkeeper's website | ||||||
13 | will not constitute a violation of this item (ii). The System | ||||||
14 | may use funds from the employee and employer contributions to | ||||||
15 | defray any and all costs of creating and maintaining the | ||||||
16 | benefit. In addition, the System may use funds provided under | ||||||
17 | Section 16-158 of this Code to defray any and all costs of | ||||||
18 | creating and maintaining the benefit and then shall reimburse | ||||||
19 | those costs from funds received from the employee and employer | ||||||
20 | contributions under this Section. All employers must comply | ||||||
21 | with the reporting and administrative functions established by | ||||||
22 | the System and are required to implement the benefits | ||||||
23 | established under this Section. The System shall produce an | ||||||
24 | annual report on the participation in the benefit and shall | ||||||
25 | make the report public.
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26 | As soon as is practicable on or after January 1, 2022, the |
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1 | System shall automatically enroll any employee who first | ||||||
2 | becomes an active member or participant in the System. A | ||||||
3 | member automatically enrolled under this Section shall have 3% | ||||||
4 | of his or her pre-tax gross compensation for each compensation | ||||||
5 | period deferred into his or her deferred compensation account, | ||||||
6 | unless the member otherwise instructs the System on forms | ||||||
7 | approved by the System. A member may elect, in a manner | ||||||
8 | provided for by the System, to not participate in the defined | ||||||
9 | contribution benefit or to increase or reduce the amount of | ||||||
10 | pre-tax gross compensation contributed, consistent with State | ||||||
11 | or federal law. A member shall be automatically enrolled in | ||||||
12 | the benefit beginning the first day of the pay period | ||||||
13 | following the member's 30th day of employment. A member who | ||||||
14 | has been automatically enrolled in the benefit may elect, | ||||||
15 | within 90 days of enrollment, to withdraw from the benefit and | ||||||
16 | receive a refund of amounts deferred, plus or minus any | ||||||
17 | applicable earnings, investment fees, and administrative fees. | ||||||
18 | Any refunded amount shall be included in the member's gross | ||||||
19 | income for the taxable year in which the refund is issued. | ||||||
20 | On or after January 1, 2023, the System may elect to | ||||||
21 | increase the automatic annual contributions under this | ||||||
22 | Section. The increase in the rate of contribution, however, | ||||||
23 | shall not exceed 2% of a member's pre-tax gross compensation | ||||||
24 | per year, and at no time shall any total contribution exceed | ||||||
25 | any contribution limits established by State or federal law. | ||||||
26 | (Source: P.A. 102-540, eff. 8-20-21.)
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1 | (40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
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2 | Sec. 24-104. State Employees Deferred Compensation Plan. | ||||||
3 | In this Section, "Plan" means the State Employees Deferred | ||||||
4 | Compensation Plan. | ||||||
5 | The Illinois State Board of Investment created under
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6 | Article 22A of this Act shall develop and establish a deferred
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7 | compensation plan for employees of the State which shall be | ||||||
8 | known as the
State Employees Deferred Compensation Plan. The | ||||||
9 | Plan shall provide for
the Board to review proposed investment | ||||||
10 | offerings and shall require that
only investments determined | ||||||
11 | to be acceptable by the Board may be used
for investing | ||||||
12 | compensation deferred.
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13 | The Plan shall include appropriate provisions pertaining | ||||||
14 | to its day
to day operation providing for methods of electing | ||||||
15 | to defer income,
methods of changing the amount of income to be | ||||||
16 | deferred, methods of
selecting from among investment options | ||||||
17 | available under the plan and
such other provisions as may be | ||||||
18 | appropriate.
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19 | In administering the Plan, the Board shall require that | ||||||
20 | the Plan recordkeeper agree that, in performing services with | ||||||
21 | respect to the Plan, the recordkeeper: (i) will not use | ||||||
22 | information received as a result of providing services with | ||||||
23 | respect to the Plan or the Plan's participants to solicit the | ||||||
24 | Plan's participants for the purpose of cross-selling non-Plan | ||||||
25 | products and services, unless in response to a request by a |
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1 | Plan participant; and (ii) will not promote, recommend, | ||||||
2 | endorse, or solicit Plan participants to purchase any | ||||||
3 | financial products or services outside of the Plan, except | ||||||
4 | that links to parts of the recordkeeper's website that are | ||||||
5 | generally available to the public, are about commercial | ||||||
6 | products, and may be encountered by a Plan participant in the | ||||||
7 | regular course of navigating the recordkeeper's website will | ||||||
8 | not constitute a violation of this item (ii). | ||||||
9 | The Plan shall provide for the preparation, and | ||||||
10 | distribution from
time to time to all eligible State | ||||||
11 | employees, of pamphlets describing
the Plan and outlining the | ||||||
12 | options and opportunities available to State
employees under | ||||||
13 | the Plan.
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14 | The Plan established under this Section shall not be | ||||||
15 | implemented or amended
until the Board is satisfied that
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16 | compensation deferred under the Plan is not subject to income | ||||||
17 | tax for
the year in which it is earned and that the taxation of | ||||||
18 | such
compensation will be deferred until the time of its | ||||||
19 | distribution to the
employee.
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20 | The Board shall also review and oversee the administration | ||||||
21 | of the Plan.
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22 | (Source: P.A. 81-671.)
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23 | (40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
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24 | Sec. 24-107. Local government plans.
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25 | (a) Any unit of local government or school district may
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1 | establish for its employees a deferred compensation plan | ||||||
2 | program .
Participation shall be by written agreement between | ||||||
3 | each employee and
the legislative authority of the unit of | ||||||
4 | local government or school
district providing for the deferral | ||||||
5 | of such compensation and the
subsequent investment and | ||||||
6 | administration of such funds.
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7 | (b) Any unit of local government may establish an | ||||||
8 | employer-funded
money purchase retirement plan for those of | ||||||
9 | its full time employees who are
not eligible to participate in | ||||||
10 | any pension fund or retirement system
established under | ||||||
11 | Articles 2 through 18 of this Code. Contributions to the
plan | ||||||
12 | shall be made by the unit of local government only from general
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13 | purpose funds not derived from real property taxes imposed by | ||||||
14 | the unit, at
a rate to be determined from time to time by the | ||||||
15 | unit of local government.
However, the rate of employer | ||||||
16 | contribution shall be (i) the same for all
employees | ||||||
17 | participating in the plan, and (ii) not more than 10% of the
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18 | employee's salary.
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19 | Any benefits accruing to the participants in a retirement | ||||||
20 | plan
established under this subsection shall be protected from | ||||||
21 | impairment in
accordance with Article XIII, Section 5 of the | ||||||
22 | Illinois Constitution.
However, the unit of local government | ||||||
23 | establishing such a plan may
terminate it at any time, unless | ||||||
24 | it has otherwise contractually agreed
with its participating | ||||||
25 | employees.
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26 | (c) The agency or department designated by the unit of |
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1 | local government
or school district to establish and | ||||||
2 | administer a plan or program authorized
under subsection (a) | ||||||
3 | or (b) of this Section may invest the assets of the
plan in | ||||||
4 | investments deemed appropriate by the agency or
department, | ||||||
5 | including but not limited to life insurance or annuity
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6 | contracts, and share or share certificate accounts of State or | ||||||
7 | federal
credit unions, the accounts of which are insured as | ||||||
8 | required by the
Illinois Credit Union Act or the Federal | ||||||
9 | Credit Union Act, whichever is
applicable. The payment of | ||||||
10 | employer contributions to a retirement
plan established under | ||||||
11 | subsection (b), and investment and
payment to a participant of | ||||||
12 | deferred compensation and income or gain
thereon, if any, | ||||||
13 | shall not be construed to be prohibited uses of the
general | ||||||
14 | assets of the unit of local government or school district.
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15 | This Section does not limit the power or authority of any | ||||||
16 | unit of
local government, school district or any institution | ||||||
17 | supported in whole
or in part by public funds to establish and | ||||||
18 | administer any other
deferred compensation plans that may be | ||||||
19 | authorized by law and deemed
appropriate by the officials of | ||||||
20 | such subdivisions or institutions.
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21 | (d) In administering the deferred compensation plans | ||||||
22 | authorized under this Section, the governing board or | ||||||
23 | administrators of the sponsoring unit of local government or | ||||||
24 | school district shall require that the deferred compensation | ||||||
25 | plan recordkeeper agree that, in performing services with | ||||||
26 | respect to the deferred compensation plan, the recordkeeper: |
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1 | (i) will not use information received as a result of providing | ||||||
2 | services with respect to the deferred compensation plan or the | ||||||
3 | deferred compensation plan's participants to solicit the | ||||||
4 | participants in the deferred compensation plan for the purpose | ||||||
5 | of cross-selling nonplan products and services, unless in | ||||||
6 | response to a request by a participant in the deferred | ||||||
7 | compensation plan; and (ii) will not promote, recommend, | ||||||
8 | endorse, or solicit participants in the deferred compensation | ||||||
9 | plan to purchase any financial products or services outside of | ||||||
10 | the deferred compensation plan, except that links to parts of | ||||||
11 | the recordkeeper's website that are generally available to the | ||||||
12 | public, are about commercial products, and may be encountered | ||||||
13 | by a Plan participant in the regular course of navigating the | ||||||
14 | recordkeeper's website will not constitute a violation of this | ||||||
15 | item (ii). | ||||||
16 | (Source: P.A. 87-794.)
| ||||||
17 | Section 2-10. The University Employees Custodial Accounts | ||||||
18 | Act is amended by changing Section 2 as follows:
| ||||||
19 | (110 ILCS 95/2) (from Ch. 144, par. 1702)
| ||||||
20 | Sec. 2.
The governing board of any public institution of | ||||||
21 | higher education
has the power to establish a defined | ||||||
22 | contribution plan to make payments to custodial accounts for | ||||||
23 | investment in
regulated
investment company stock to provide | ||||||
24 | retirement benefits as described in
Section 403(b)(7) of the |
| |||||||
| |||||||
1 | Internal Revenue Code for eligible employees of
such | ||||||
2 | institutions. Such payments shall be made with funds made | ||||||
3 | available
by deductions from or reductions in salary or wages | ||||||
4 | of eligible employees
who authorize in writing deductions or | ||||||
5 | reductions for such purpose. Such
stock shall be purchased | ||||||
6 | only from persons authorized to sell such stock in
this State.
| ||||||
7 | In administering the defined contribution plan, the | ||||||
8 | governing board of any public institution of higher education | ||||||
9 | shall require that the defined contribution plan recordkeeper | ||||||
10 | agree that, in performing services with respect to the defined | ||||||
11 | contribution plan, the recordkeeper: (i) will not use | ||||||
12 | information received as a result of providing services with | ||||||
13 | respect to the defined contribution plan or the participants | ||||||
14 | in the defined contribution plan to solicit the participants | ||||||
15 | in the defined contribution plan for the purpose of | ||||||
16 | cross-selling nonplan products and services, unless in | ||||||
17 | response to a request by a participant in the defined | ||||||
18 | contribution plan; and (ii) will not promote, recommend, | ||||||
19 | endorse, or solicit participants in the defined contribution | ||||||
20 | plan to purchase any financial products or services outside of | ||||||
21 | the defined contribution plan, except that links to parts of | ||||||
22 | the recordkeeper's website that are generally available to the | ||||||
23 | public, are about commercial products, and may be encountered | ||||||
24 | by a participant in the regular course of navigating the | ||||||
25 | recordkeeper's website will not constitute a violation of this | ||||||
26 | item (ii). However, a public institution of higher education |
| |||||||
| |||||||
1 | may allow promotion of limited services if the public | ||||||
2 | institution of higher education receives no compensation from | ||||||
3 | the recordkeeper for promoting or providing such services. | ||||||
4 | Such limited services may include educational, counseling, | ||||||
5 | debt reduction, student loan repayment or forgiveness, or | ||||||
6 | other services intended to enhance retirement savings | ||||||
7 | opportunities. Such limited services may not include credit | ||||||
8 | cards, life insurance, or banking products. | ||||||
9 | (Source: P.A. 83-261.)
| ||||||
10 | Article 3. | ||||||
11 | Section 3-5. The Illinois Pension Code is amended by | ||||||
12 | changing Section 1-167 as follows:
| ||||||
13 | (40 ILCS 5/1-167) | ||||||
14 | Sec. 1-167. Prohibited disclosures. No pension fund or | ||||||
15 | retirement system subject to this Code shall disclose the | ||||||
16 | following information of any members or participants of any | ||||||
17 | pension fund or retirement system: (1) the individual's home | ||||||
18 | address (including ZIP code and county); (2) the individual's | ||||||
19 | date of birth; (3) the individual's home and personal phone | ||||||
20 | number; (4) the individual's personal email address; (5) | ||||||
21 | personally identifying member or participant deduction | ||||||
22 | information; or (6) any membership status in a labor | ||||||
23 | organization or other voluntary association affiliated with a |
| |||||||
| |||||||
1 | labor organization or labor federation (including whether | ||||||
2 | participants are members of such organization, the identity of | ||||||
3 | such organization, whether or not participants pay or | ||||||
4 | authorize the payment of any dues or moneys to such | ||||||
5 | organization, and the amounts of such dues or moneys). | ||||||
6 | This Section does not apply to disclosures (i) required | ||||||
7 | under the Freedom of Information Act, (ii) for purposes of | ||||||
8 | conducting public operations or business, or (iii) to a labor | ||||||
9 | organization or other voluntary association affiliated with a | ||||||
10 | labor organization or labor federation or to the Municipal | ||||||
11 | Employees Society of Chicago .
| ||||||
12 | (Source: P.A. 101-620, eff. 12-20-19.)
| ||||||
13 | Article 4. | ||||||
14 | Section 4-5. The Illinois Pension Code is amended by | ||||||
15 | changing Section 24-105.2 as follows:
| ||||||
16 | (40 ILCS 5/24-105.2) | ||||||
17 | Sec. 24-105.2. Automatic enrollment for certain employees. | ||||||
18 | The Department of Central Management Services shall | ||||||
19 | automatically enroll in the State Employees Deferred | ||||||
20 | Compensation Plan any employee who, on or after July 1, 2020, | ||||||
21 | becomes an active member or participant of a retirement system | ||||||
22 | created under Article 2, 14, or 18. Any agency with employees | ||||||
23 | subject to automatic enrollment must systematically provide |
| |||||||
| |||||||
1 | the employee data necessary for enrollment to the Department | ||||||
2 | of Central Management Services or its designee. An employee | ||||||
3 | automatically enrolled under this Section shall have 3% of his | ||||||
4 | or her pre-tax gross compensation for each compensation period | ||||||
5 | deferred into his or her deferred compensation account. The | ||||||
6 | Board may increase the default percentage amount of | ||||||
7 | compensation deferred into employee accounts. | ||||||
8 | An employee hired on or after January 1, 2024 shall be | ||||||
9 | automatically enrolled in the Plan beginning the first day of | ||||||
10 | the pay period following the close of the notice period, | ||||||
11 | unless the employee elects otherwise within the notice period. | ||||||
12 | During the notice period, an employee may elect to not | ||||||
13 | participate in the Plan or to increase or reduce the amount of | ||||||
14 | pre-tax gross compensation deferred. For the purposes of this | ||||||
15 | Section, "notice period" means a reasonable period of time | ||||||
16 | after the employee is provided with an automatic enrollment | ||||||
17 | notice as required under Section 414(w) of the Internal | ||||||
18 | Revenue Code of 1986, as amended. An employee who has been | ||||||
19 | automatically enrolled in the Plan may elect, within 90 days | ||||||
20 | after enrollment, to withdraw from the Plan and receive a | ||||||
21 | refund of amounts deferred, plus or minus any applicable | ||||||
22 | earnings, investment fees, and administrative fees. An | ||||||
23 | employee making such an election shall forfeit all employer | ||||||
24 | matching contributions, if any, made prior to the election. | ||||||
25 | Any refunded amount shall be included in the employee's gross | ||||||
26 | income for the taxable year in which the refund is issued. |
| |||||||
| |||||||
1 | An employee hired on or after July 1, 2020 and before | ||||||
2 | January 1, 2024 shall have 30 days from the start date of | ||||||
3 | employment to elect to not participate in the deferred | ||||||
4 | compensation plan or to elect to increase or reduce the amount | ||||||
5 | of pre-tax gross compensation deferred. An employee shall be | ||||||
6 | automatically enrolled in the Plan beginning the first day of | ||||||
7 | the pay period following the employee's thirtieth day of | ||||||
8 | employment. An employee who has been automatically enrolled in | ||||||
9 | the Plan may elect, within 90 days of enrollment, to withdraw | ||||||
10 | from the Plan and receive a refund of amounts deferred, plus or | ||||||
11 | minus any applicable earnings, investment fees, and | ||||||
12 | administrative fees. An employee making such an election shall | ||||||
13 | forfeit all employer matching contributions, if any, made | ||||||
14 | prior to the election. Any refunded amount shall be included | ||||||
15 | in the employee's gross income for the taxable year in which | ||||||
16 | the refund is issued.
| ||||||
17 | As soon as practicable, the Board shall establish annual, | ||||||
18 | automatic increases to employee contribution rates for | ||||||
19 | employees who are automatically enrolled in the Plan pursuant | ||||||
20 | to this Section. The amount of automatic annual increases in | ||||||
21 | any 12-month period shall not exceed 1% of compensation. | ||||||
22 | Employees may elect to not receive automatic annual increases | ||||||
23 | in a manner described by the Board. | ||||||
24 | (Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
| ||||||
25 | Article 5. |
| |||||||
| |||||||
1 | Section 5-5. The Illinois Pension Code is amended by | ||||||
2 | changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as | ||||||
3 | follows:
| ||||||
4 | (40 ILCS 5/22C-115) | ||||||
5 | Sec. 22C-115. Board of Trustees of the Fund. | ||||||
6 | (a) No later than February 1, 2020 (one month after the | ||||||
7 | effective date of Public Act 101-610) or as soon thereafter as | ||||||
8 | may be practicable, the Governor shall appoint, by and with | ||||||
9 | the advice and consent of the Senate, a transition board of | ||||||
10 | trustees consisting of 9 members as follows: | ||||||
11 | (1) three members representing municipalities and fire | ||||||
12 | protection districts who are mayors, presidents, chief | ||||||
13 | executive officers, chief financial officers, or other | ||||||
14 | officers, executives, or department heads of | ||||||
15 | municipalities or fire protection districts and appointed | ||||||
16 | from among candidates recommended by the Illinois | ||||||
17 | Municipal League; | ||||||
18 | (2) three members representing participants who are | ||||||
19 | participants and appointed from among candidates | ||||||
20 | recommended by the statewide labor organization | ||||||
21 | representing firefighters employed by at least 85 | ||||||
22 | municipalities that is affiliated with the Illinois State | ||||||
23 | Federation of Labor; | ||||||
24 | (3) one member representing beneficiaries who is a |
| |||||||
| |||||||
1 | beneficiary and appointed from among the candidate or | ||||||
2 | candidates recommended by the statewide labor organization | ||||||
3 | representing firefighters employed by at least 85 | ||||||
4 | municipalities that is affiliated with the Illinois State | ||||||
5 | Federation of Labor; | ||||||
6 | (4) one member recommended by the Illinois Municipal | ||||||
7 | League; and | ||||||
8 | (5) one member who is a participant recommended by the | ||||||
9 | statewide labor organization representing firefighters | ||||||
10 | employed by at least 85 municipalities and that is | ||||||
11 | affiliated with the Illinois State Federation of Labor. | ||||||
12 | The transition board members shall serve until the initial | ||||||
13 | permanent board members are elected and qualified. | ||||||
14 | The transition board of trustees shall select the | ||||||
15 | chairperson of the transition board of trustees from among the | ||||||
16 | trustees for the duration of the
transition board's tenure. | ||||||
17 | (b) The permanent board of trustees shall consist of 9 | ||||||
18 | members comprised as follows: | ||||||
19 | (1) Three members who are mayors, presidents, chief | ||||||
20 | executive officers, chief financial officers, or other | ||||||
21 | officers, executives, or department heads of | ||||||
22 | municipalities or fire protection districts that have | ||||||
23 | participating pension funds and are elected by the mayors | ||||||
24 | and presidents of municipalities or fire protection | ||||||
25 | districts that have participating pension funds. | ||||||
26 | (2) Three members who are participants of |
| |||||||
| |||||||
1 | participating pension funds and elected by the | ||||||
2 | participants of participating pension funds. | ||||||
3 | (3) One member who is a beneficiary of a participating | ||||||
4 | pension fund and is elected by the beneficiaries of | ||||||
5 | participating pension funds. | ||||||
6 | (4) One member recommended by the Illinois Municipal | ||||||
7 | League who shall be appointed by the Governor with the | ||||||
8 | advice and consent of the Senate. | ||||||
9 | (5) One member recommended by the statewide labor | ||||||
10 | organization representing firefighters employed by at | ||||||
11 | least 85 municipalities and that is affiliated with the | ||||||
12 | Illinois State Federation of Labor who shall be appointed | ||||||
13 | by the Governor with the advice and consent of the Senate. | ||||||
14 | The permanent board of trustees shall select the | ||||||
15 | chairperson of the permanent board of trustees from among the | ||||||
16 | trustees for a term of 2 years. The holder of the office of | ||||||
17 | chairperson shall alternate between a person elected or | ||||||
18 | appointed under item (1) or (4) of this subsection (b) and a | ||||||
19 | person elected or appointed under item (2), (3), or (5) of this | ||||||
20 | subsection (b). | ||||||
21 | (c) Each trustee shall qualify by taking an oath of office | ||||||
22 | before the Secretary of State or the Board's appointed legal | ||||||
23 | counsel stating that he or she will diligently and honestly | ||||||
24 | administer the affairs of the board and will not violate or | ||||||
25 | knowingly permit the violation of any provision of this | ||||||
26 | Article. |
| |||||||
| |||||||
1 | (d) Trustees shall receive no salary for service on the | ||||||
2 | board but shall be reimbursed for travel expenses incurred | ||||||
3 | while on business for the board according to the standards in | ||||||
4 | effect for members of the Commission on Government Forecasting | ||||||
5 | and Accountability . | ||||||
6 | A municipality or fire protection district employing a | ||||||
7 | firefighter who is an elected or appointed trustee of the | ||||||
8 | board must allow reasonable time off with compensation for the | ||||||
9 | firefighter to conduct official business related to his or her | ||||||
10 | position on the board, including time for travel. The board | ||||||
11 | shall notify the municipality or fire protection district in | ||||||
12 | advance of the dates, times, and locations of this official | ||||||
13 | business. The Fund shall timely reimburse the municipality or | ||||||
14 | fire protection district for the reasonable costs incurred | ||||||
15 | that are due to the firefighter's absence. | ||||||
16 | (e) No trustee shall have any interest in any brokerage | ||||||
17 | fee, commission, or other profit or gain arising out of any | ||||||
18 | investment directed by the board. This subsection does not | ||||||
19 | preclude ownership by any member of any minority interest in | ||||||
20 | any common stock or any corporate obligation in which an | ||||||
21 | investment is directed by the board. | ||||||
22 | (f) Notwithstanding any provision or interpretation of law | ||||||
23 | to the contrary, any member of the transition board may also be | ||||||
24 | elected or appointed as a member of the permanent board. | ||||||
25 | Notwithstanding any provision or interpretation of law to | ||||||
26 | the contrary, any trustee of a fund established under Article |
| |||||||
| |||||||
1 | 4 of this Code may also be appointed as a member of the | ||||||
2 | transition board or elected or appointed as a member of the | ||||||
3 | permanent board. | ||||||
4 | The restriction in Section 3.1 of the Lobbyist | ||||||
5 | Registration Act shall not apply to a member of the transition | ||||||
6 | board appointed pursuant to items (4) or (5) of subsection (a) | ||||||
7 | or to a member of the permanent board appointed pursuant to | ||||||
8 | items (4) or (5) of subsection (b).
| ||||||
9 | (Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
| ||||||
10 | (40 ILCS 5/22C-116) | ||||||
11 | Sec. 22C-116. Conduct and administration of elections; | ||||||
12 | terms of office. | ||||||
13 | (a) For the election of the permanent trustees, the | ||||||
14 | transition board shall administer the initial elections and | ||||||
15 | the permanent board shall administer all subsequent elections. | ||||||
16 | Each board shall develop and implement such procedures as it | ||||||
17 | determines to be appropriate for the conduct of such | ||||||
18 | elections. For the purposes of obtaining information necessary | ||||||
19 | to conduct elections under this Section, participating pension | ||||||
20 | funds shall cooperate with the Fund. | ||||||
21 | (b) All nominations for election shall be by petition. | ||||||
22 | Each petition for a trustee shall be executed as follows: | ||||||
23 | (1) for trustees to be elected by the mayors and | ||||||
24 | presidents of municipalities or fire protection districts | ||||||
25 | that have participating pension funds, by at least 20 such |
| |||||||
| |||||||
1 | mayors and presidents; except that this item (1) shall | ||||||
2 | apply only with respect to participating pension funds; | ||||||
3 | (2) for trustees to be elected by participants, by at | ||||||
4 | least 400 participants; and | ||||||
5 | (3) for trustees to be elected by beneficiaries, by at | ||||||
6 | least 100 beneficiaries. | ||||||
7 | (c) A separate ballot shall be used for each class of | ||||||
8 | trustee. The board shall prepare and send ballots and ballot | ||||||
9 | envelopes to the participants and beneficiaries eligible | ||||||
10 | voters to vote in accordance with rules adopted by the board. | ||||||
11 | The ballots shall contain the names of all candidates in | ||||||
12 | alphabetical order. The ballot envelope shall have on the | ||||||
13 | outside a form of certificate stating that the person voting | ||||||
14 | the ballot is a participant or beneficiary entitled to vote. | ||||||
15 | Eligible voters Participants and beneficiaries , upon | ||||||
16 | receipt of the ballot, shall vote the ballot and place it in | ||||||
17 | the ballot envelope, seal the envelope, execute the | ||||||
18 | certificate thereon, and return the ballot to the Fund. | ||||||
19 | The board shall set a final date for ballot return, and | ||||||
20 | ballots received prior to that date in a ballot envelope with a | ||||||
21 | properly executed certificate and properly voted shall be | ||||||
22 | valid ballots. | ||||||
23 | The board shall set a day for counting the ballots and name | ||||||
24 | judges and clerks of election to conduct the count of ballots | ||||||
25 | and shall make any rules necessary for the conduct of the | ||||||
26 | count. |
| |||||||
| |||||||
1 | The candidate or candidates receiving the highest number | ||||||
2 | of votes for each class of trustee shall be elected. In the | ||||||
3 | case of a tie vote, the winner shall be determined in | ||||||
4 | accordance with procedures developed by the Department of | ||||||
5 | Insurance. | ||||||
6 | In lieu of conducting elections via mail balloting as | ||||||
7 | described in this Section, the board may instead adopt rules | ||||||
8 | to provide for elections to be carried out solely via Internet | ||||||
9 | balloting or phone balloting. Nothing in this Section | ||||||
10 | prohibits the Fund from contracting with a third party to | ||||||
11 | administer the election in accordance with this Section. | ||||||
12 | (d) At any election, voting shall be as follows: | ||||||
13 | (1) Each person authorized to vote for an elected | ||||||
14 | trustee may cast one vote for each related position for | ||||||
15 | which such person is entitled to vote and may cast such | ||||||
16 | vote for any candidate or candidates on the ballot for | ||||||
17 | such trustee position. | ||||||
18 | (2) If only one candidate for each position is | ||||||
19 | properly nominated in petitions received, that candidate | ||||||
20 | shall be deemed the winner and no election under this | ||||||
21 | Section shall be required. | ||||||
22 | (3) The results shall be entered in the minutes of the | ||||||
23 | first meeting of the board following the tally of votes. | ||||||
24 | (e) The initial election for permanent trustees shall be | ||||||
25 | held and the permanent board shall be seated no later than 12 | ||||||
26 | months after the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 101st General Assembly. Each subsequent election shall be held | ||||||
2 | no later than 30 days prior to the end of the term of the | ||||||
3 | incumbent trustees. | ||||||
4 | (f) The elected trustees shall each serve for terms of 4 | ||||||
5 | years commencing on the first business day of the first month | ||||||
6 | after election; except that the terms of office of the | ||||||
7 | initially elected trustees shall be as follows: | ||||||
8 | (1) One trustee elected pursuant to item (1) of | ||||||
9 | subsection (b) of Section 22C-115 shall serve for a term | ||||||
10 | of 2 years and 2 trustees elected pursuant to item (1) of | ||||||
11 | subsection (b) of Section 22C-115 shall serve for a term | ||||||
12 | of 4 years; | ||||||
13 | (2) One trustee elected pursuant to item (2) of | ||||||
14 | subsection (b) of Section 22C-115 shall serve for a term | ||||||
15 | of 2 years and 2 trustees elected pursuant to item (2) of | ||||||
16 | subsection (b) of Section 22C-115 shall serve for a term | ||||||
17 | of 4 years; and | ||||||
18 | (3) The trustee elected pursuant to item (3) of | ||||||
19 | subsection (b) of Section 22C-115 shall serve for a term | ||||||
20 | of 2 years. | ||||||
21 | (g) The trustees appointed pursuant to items (4) and (5) | ||||||
22 | of subsection (b) of Section 22C-115 shall each serve for a | ||||||
23 | term of 4 years commencing on the first business day of the | ||||||
24 | first month after the election of the elected trustees. | ||||||
25 | (h) A member of the board who was elected pursuant to item | ||||||
26 | (1) of subsection (b) of Section 22C-115 who ceases to serve as |
| |||||||
| |||||||
1 | a mayor, president, chief executive officer, chief financial | ||||||
2 | officer, or other officer, executive, or department head of a | ||||||
3 | municipality or fire protection district that has a | ||||||
4 | participating pension fund shall not be eligible to serve as a | ||||||
5 | member of the board and his or her position shall be deemed | ||||||
6 | vacant. A member of the board who was elected by the | ||||||
7 | participants of participating pension funds who ceases to be a | ||||||
8 | participant may serve the remainder of his or her elected | ||||||
9 | term. | ||||||
10 | For a vacancy of an elected trustee occurring with an | ||||||
11 | unexpired term of 6 months or more, an election shall be | ||||||
12 | conducted for the vacancy in accordance with Section 22C-115 | ||||||
13 | and this Section. | ||||||
14 | For a vacancy of an elected trustee occurring with an | ||||||
15 | unexpired term of less than 6 months , the vacancy shall be | ||||||
16 | filled by appointment by the board for the unexpired term as | ||||||
17 | follows: a vacancy of a member elected pursuant to item (1) of | ||||||
18 | subsection (b) of Section 22C-115 shall be filled by a mayor, | ||||||
19 | president, chief executive officer, chief financial officer, | ||||||
20 | or other officer, executive, or department head of a | ||||||
21 | municipality or fire protection district that has a | ||||||
22 | participating pension fund; a vacancy of a member elected | ||||||
23 | pursuant to item (2) of subsection (b) of Section 22C-115 | ||||||
24 | shall be filled by a participant of a participating pension | ||||||
25 | fund; and a vacancy of a member elected under item (3) of | ||||||
26 | subsection (b) of Section 22C-115 shall be filled by a |
| |||||||
| |||||||
1 | beneficiary of a participating pension fund. A trustee | ||||||
2 | appointed to fill the vacancy of an elected trustee shall | ||||||
3 | serve until a successor is elected. Special elections to fill | ||||||
4 | the remainder of an unexpired term vacated by an elected | ||||||
5 | trustee shall be held concurrently with and in the same manner | ||||||
6 | as the next regular election for an elected trustee position. | ||||||
7 | Vacancies among the appointed trustees shall be filled for | ||||||
8 | unexpired terms by appointment in like manner as for the | ||||||
9 | original appointments.
| ||||||
10 | (Source: P.A. 101-610, eff. 1-1-20.)
| ||||||
11 | (40 ILCS 5/22C-119) | ||||||
12 | Sec. 22C-119. Adoption of rules. The board shall adopt | ||||||
13 | such rules (not inconsistent with this Code) as in its | ||||||
14 | judgment are desirable to implement and properly administer | ||||||
15 | this Article. Such rules shall specifically provide for the | ||||||
16 | following: (1) the implementation of the transition process | ||||||
17 | described in Section 22C-120; (2) the process by which the | ||||||
18 | participating pension funds may request transfer of funds; (3) | ||||||
19 | the process for the transfer in, receipt for, and investment | ||||||
20 | of pension assets received by the Fund after the transition | ||||||
21 | period from the participating pension funds; (4) the process | ||||||
22 | by which contributions from municipalities and fire protection | ||||||
23 | districts for the benefit of the participating pension funds | ||||||
24 | may, but are not required to, be directly transferred to the | ||||||
25 | Fund; and (5) compensation and benefits for its employees. A |
| |||||||
| |||||||
1 | copy of the rules adopted by the Fund shall be posted on the | ||||||
2 | Fund's website filed with the Secretary of State and the | ||||||
3 | Department of Insurance . The adoption and effectiveness of | ||||||
4 | such rules shall not be subject to Article 5 of the Illinois | ||||||
5 | Administrative Procedure Act.
| ||||||
6 | (Source: P.A. 101-610, eff. 1-1-20.)
| ||||||
7 | (40 ILCS 5/22C-123) | ||||||
8 | Sec. 22C-123. Custodian. The pension fund assets | ||||||
9 | transferred to or otherwise acquired by the Fund shall be | ||||||
10 | placed in the custody of a custodian who shall provide | ||||||
11 | adequate safe deposit facilities for those assets and hold all | ||||||
12 | such securities, funds, and other assets subject to the order | ||||||
13 | of the Fund. | ||||||
14 | Each custodian shall furnish a corporate surety bond of | ||||||
15 | such amount as the board designates, which bond shall | ||||||
16 | indemnify the Fund, the board, and the officers and employees | ||||||
17 | of the Fund against any loss that may result from any action or | ||||||
18 | failure to act by the custodian or any of the custodian's | ||||||
19 | agents , or provide insurance coverages of such type and limits | ||||||
20 | as the board designates . All charges incidental to the | ||||||
21 | procuring and giving of any bond shall be paid by the board and | ||||||
22 | each bond shall be in the custody of the board.
| ||||||
23 | (Source: P.A. 101-610, eff. 1-1-20.)
| ||||||
24 | Article 6. |
| |||||||
| |||||||
1 | Section 6-5. The Illinois Pension Code is amended by | ||||||
2 | changing Section 8-165 as follows:
| ||||||
3 | (40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
| ||||||
4 | Sec. 8-165. Re-entry into service. | ||||||
5 | (a) Except as provided in subsection (c) or (d) , when an | ||||||
6 | employee receiving age and service or prior service
annuity | ||||||
7 | who has withdrawn from service after the effective date
| ||||||
8 | re-enters service before age 65, any annuity previously | ||||||
9 | granted and any
annuity fixed for his wife shall be cancelled. | ||||||
10 | The employee shall be
credited for annuity purposes with sums | ||||||
11 | sufficient to provide annuities
equal to those cancelled, as | ||||||
12 | of their ages on the date of re-entry;
provided, the maximum | ||||||
13 | age of the wife for this purpose shall be as
provided in | ||||||
14 | Section 8-155 of this Article.
| ||||||
15 | The sums so credited shall provide for annuities to be | ||||||
16 | fixed and
granted in the future. Contributions by the | ||||||
17 | employees
and the city for
the purposes of this Article shall | ||||||
18 | be made, and when the proper time
arrives, as provided in this | ||||||
19 | Article, new annuities based upon the total
credit for annuity | ||||||
20 | purposes and the entire term of his service shall be
fixed for | ||||||
21 | the employee and his wife.
| ||||||
22 | If the employee's wife died before he re-entered service, | ||||||
23 | no part of
any credits for widow's or widow's prior service | ||||||
24 | annuity at the time
annuity for his wife was fixed shall be |
| |||||||
| |||||||
1 | credited upon re-entry into
service, and no such sums shall | ||||||
2 | thereafter be used to provide such
annuity.
| ||||||
3 | (b) Except as provided in subsection (c) or (d) , when an | ||||||
4 | employee re-enters service after age 65, payments on
account | ||||||
5 | of any annuity previously granted shall be suspended during | ||||||
6 | the
time thereafter that he is in service, and when he again | ||||||
7 | withdraws,
annuity payments shall be resumed. If the employee | ||||||
8 | dies in service, his
widow shall receive the amount of annuity | ||||||
9 | previously fixed for her.
| ||||||
10 | (c) For school years beginning on or after July 1, 2021, an | ||||||
11 | age and service or prior service
annuity shall not be | ||||||
12 | cancelled in the case of an employee who is re-employed by the | ||||||
13 | Board of Education of the city as a Special Education | ||||||
14 | Classroom Assistant or Classroom Assistant on a temporary and | ||||||
15 | non-annual basis or on an hourly basis so long as the person: | ||||||
16 | (1) does not work for compensation on more than 120 days in a | ||||||
17 | school year; or (2) does not accept gross compensation for the | ||||||
18 | re-employment in a school year in excess of $30,000. These | ||||||
19 | limitations apply only to school years that begin on or after | ||||||
20 | July 1, 2021. Re-employment under this subsection does not | ||||||
21 | require contributions, result in service credit being earned | ||||||
22 | or granted, or constitute active participation in the Fund. | ||||||
23 | (d) For school years beginning on or after July 1, 2023, an | ||||||
24 | age and service or prior service annuity shall not be | ||||||
25 | cancelled in the case of an employee who is re-employed by the | ||||||
26 | Board of Education of the city as a paraprofessional or |
| |||||||
| |||||||
1 | related service provider on a temporary and non-annual basis | ||||||
2 | or on an hourly basis so long as the person: (1) does not work | ||||||
3 | for compensation on more than 120 days in a school year; or (2) | ||||||
4 | does not accept gross compensation for the re-employment in a | ||||||
5 | school year in excess of $30,000. These limitations apply only | ||||||
6 | to school years that begin on or after July 1, 2023. | ||||||
7 | Re-employment under this subsection does not require | ||||||
8 | contributions, result in service credit being earned or | ||||||
9 | granted, or constitute active participation in the Fund. | ||||||
10 | (Source: P.A. 102-342, eff. 8-13-21.)
| ||||||
11 | Article 7. | ||||||
12 | Section 7-5. The School Code is amended by changing | ||||||
13 | Section 24-6.3 as follows:
| ||||||
14 | (105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
| ||||||
15 | Sec. 24-6.3. Retirement trustee leave. | ||||||
16 | (a) Each school board
employing a teacher who is an | ||||||
17 | elected trustee of the Teachers' Retirement
System of the | ||||||
18 | State of Illinois shall make available to the elected trustee
| ||||||
19 | at least 20 days of paid leave of absence per year for the | ||||||
20 | purpose of
attending meetings of the System's Board of | ||||||
21 | Trustees, committee meetings of
such Board, and seminars | ||||||
22 | regarding issues for which such Board is
responsible. The | ||||||
23 | Teachers' Retirement System of the State of Illinois shall
|
| |||||||
| |||||||
1 | reimburse affected school districts for the actual cost of | ||||||
2 | hiring a
substitute teacher during such leaves of absence.
| ||||||
3 | (b) Each school board employing an employee who is an | ||||||
4 | elected trustee of the Illinois Municipal Retirement Fund | ||||||
5 | shall make available to the elected trustee at least 20 days of | ||||||
6 | paid leave of absence per year for the purpose of attending | ||||||
7 | meetings of the Fund's Board of Trustees, committee meetings | ||||||
8 | of the Board of Trustees, and seminars regarding issues for | ||||||
9 | which the Board of Trustees is responsible. The Illinois | ||||||
10 | Municipal Retirement Fund may reimburse affected school | ||||||
11 | districts for the actual cost of hiring a substitute employee | ||||||
12 | during such leaves of absence. | ||||||
13 | (c) The school board established under Article 34 and | ||||||
14 | employers under Article 17 of the Illinois Pension Code shall | ||||||
15 | make available to each active teacher who is an elected | ||||||
16 | trustee of the Board of Trustees of the Public School | ||||||
17 | Teachers' Pension and Retirement Fund of Chicago established | ||||||
18 | under Article 17 of the Illinois Pension Code up to 22 days of | ||||||
19 | paid leave of absence per year for the purpose of attending | ||||||
20 | meetings of the Board of Trustees, committee meetings of the | ||||||
21 | Board of Trustees, and seminars regarding issues for which the | ||||||
22 | Board of Trustees is responsible. The allocation of the days | ||||||
23 | of paid leave shall be at the discretion of the Board of | ||||||
24 | Trustees of the Public School Teachers' Pension and Retirement | ||||||
25 | Fund of Chicago. | ||||||
26 | (Source: P.A. 96-357, eff. 8-13-09.)
|
| |||||||
| |||||||
1 | Article 8. | ||||||
2 | Section 8-5. The Illinois Pension Code is amended by | ||||||
3 | changing Section 16-155 as follows:
| ||||||
4 | (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
| ||||||
5 | Sec. 16-155. Report to system and payment of deductions.
| ||||||
6 | (a) The employer governing body of each school district | ||||||
7 | shall submit to the System all required reports and make two | ||||||
8 | deposits each
month. The deposit for member contributions for | ||||||
9 | salary paid during any between the first
and the fifteenth of | ||||||
10 | the month is due by the 10th 25th of the following month. | ||||||
11 | Additionally, all The deposit of
member contributions for | ||||||
12 | salary paid between the sixteenth and last day of the
month is | ||||||
13 | due by the 10th of the following month. All required | ||||||
14 | contributions
for salary earned during a school term are due | ||||||
15 | by July 10 next following the
close of such school term.
| ||||||
16 | The governing body of each State institution coming
under | ||||||
17 | this retirement system, the State Comptroller or other State | ||||||
18 | officer
certifying payroll vouchers including payments of | ||||||
19 | salary or wages to
teachers, and any other employer of | ||||||
20 | teachers, shall, monthly, forward to
the secretary of the | ||||||
21 | retirement system the member contributions required
under this | ||||||
22 | Article.
| ||||||
23 | Each employer specified above shall, prior to August 15 of |
| |||||||
| |||||||
1 | each year,
forward to the System a detailed statement, | ||||||
2 | verified in all cases of school
districts by the secretary or | ||||||
3 | clerk of the district, of the amounts so
contributed since the | ||||||
4 | period covered by the last previous annual statement,
together | ||||||
5 | with required contributions not yet forwarded, such payments | ||||||
6 | being
payable to the System.
| ||||||
7 | The board may prescribe rules governing the form, content, | ||||||
8 | investigation,
control, and supervision of such statements and | ||||||
9 | may establish additional interim employer reporting | ||||||
10 | requirements as the Board deems necessary. If no teacher in
a | ||||||
11 | school district comes under the provisions of this Article, | ||||||
12 | the
governing body of the district shall so state under the | ||||||
13 | oath of its
secretary to this system, and shall at the same | ||||||
14 | time forward a copy of
the statement to the regional | ||||||
15 | superintendent of schools.
| ||||||
16 | The board may also require reporting requirements that are | ||||||
17 | different than those prescribed in this Section and may | ||||||
18 | require different reporting requirements for different | ||||||
19 | benefits or purposes established under this Article, | ||||||
20 | including, but not limited to, any optional benefit plan an | ||||||
21 | employee chooses to participate in. | ||||||
22 | (b) If the governing body of an employer that is not a | ||||||
23 | State agency fails to forward such
required contributions | ||||||
24 | within the time permitted in subsection (a) above,
the System | ||||||
25 | shall notify the employer of an additional amount
due, equal | ||||||
26 | to
$50 per day for each day that elapses from the due date |
| |||||||
| |||||||
1 | until the day such report and employee contributions are | ||||||
2 | received by the System.
| ||||||
3 | (c) If the system, on August 15, is not in receipt of the | ||||||
4 | detailed
statements required under this Section of any school | ||||||
5 | district or other
employing unit, such school district or | ||||||
6 | other employing unit shall pay to
the system an amount equal to | ||||||
7 | $250 for each day that elapses from August
15, until the day | ||||||
8 | such statement is filed with the system.
| ||||||
9 | (Source: P.A. 101-502, eff. 8-23-19.)
| ||||||
10 | Article 9. | ||||||
11 | Section 9-5. The Illinois Pension Code is amended by | ||||||
12 | changing Sections 9-108.3 and 9-161 as follows:
| ||||||
13 | (40 ILCS 5/9-108.3) | ||||||
14 | Sec. 9-108.3. In service. "In service": Any period during | ||||||
15 | which contributions are being made to the Fund on behalf of an | ||||||
16 | employee except for temporary election work as described in | ||||||
17 | subsection (c) of Section 9-161 .
| ||||||
18 | (Source: P.A. 99-578, eff. 7-15-16.)
| ||||||
19 | (40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
| ||||||
20 | Sec. 9-161. Re-entry into service. (a) When an employee | ||||||
21 | who has withdrawn from service after the
effective date | ||||||
22 | re-enters service before age 65, any annuity previously
|
| |||||||
| |||||||
1 | granted and any annuity fixed for his wife shall be cancelled. | ||||||
2 | The
employee shall be credited for annuity purposes with the | ||||||
3 | actuarial value
of annuities equal to those cancelled as of | ||||||
4 | their ages on the date of
re-entry; provided, the maximum age | ||||||
5 | of the wife for this purpose shall
be as provided in Section | ||||||
6 | 9-151 of this Article. The sums so credited
shall provide for | ||||||
7 | annuities to be fixed and granted in the future.
Contributions | ||||||
8 | by the employee and the county for the
purposes of this
Article | ||||||
9 | shall be made and when the proper time arrives, as provided in
| ||||||
10 | this Article, new annuities based upon the total sums | ||||||
11 | accumulated to his
credit for annuity purposes and the entire | ||||||
12 | term of his service shall be
fixed for the employee and his | ||||||
13 | wife.
| ||||||
14 | If the employee's wife has died before he re-entered | ||||||
15 | service, no part
of any credits for widow's or widow's prior | ||||||
16 | service annuity at the time
annuity for his wife was fixed | ||||||
17 | shall be credited upon re-entry into
service, and no such sums | ||||||
18 | shall thereafter be used to provide such
annuity.
| ||||||
19 | (b) When an employee re-enters service after age 65, | ||||||
20 | payments on
account of any annuity previously granted shall be | ||||||
21 | suspended during the
time thereafter that he is in service, | ||||||
22 | and when he again withdraws
annuity payments shall be resumed. | ||||||
23 | If the employee dies in service, his
widow shall receive the | ||||||
24 | annuity previously fixed for her.
| ||||||
25 | (c) If an employee annuitant re-enters service as an | ||||||
26 | election worker and provides services for a scheduled federal, |
| |||||||
| |||||||
1 | State, or local election for a period of 60 days or less during | ||||||
2 | a calendar year, that employee annuitant's annuity shall not | ||||||
3 | be suspended and such employee annuitant shall not be | ||||||
4 | considered to be in service within the meaning of Section | ||||||
5 | 9-108.3 and is not entitled to benefits for employees in | ||||||
6 | service. If an employee annuitant re-enters service for a | ||||||
7 | period longer than 60 days during a calendar year, the annuity | ||||||
8 | shall be suspended or cancelled retroactive to the initial | ||||||
9 | date of re-entry. | ||||||
10 | (Source: P.A. 81-1536.)
| ||||||
11 | Article 10. | ||||||
12 | Section 10-5. The Illinois Pension Code is amended by | ||||||
13 | changing Section 17-133 as follows:
| ||||||
14 | (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
| ||||||
15 | Sec. 17-133. Contributions for periods of outside and | ||||||
16 | other service.
Regularly certified and appointed teachers who | ||||||
17 | desire to have the following
described services credited for | ||||||
18 | pension purposes shall submit to the Board
evidence thereof | ||||||
19 | and pay into the Fund the amounts prescribed herein:
| ||||||
20 | 1. For teaching service by a certified teacher in the | ||||||
21 | public
schools of the several states or in schools | ||||||
22 | operated by or under the
auspices of the United States, a | ||||||
23 | teacher shall pay the
contributions at the rates in force |
| |||||||
| |||||||
1 | (a) on the date of
appointment as a regularly certified | ||||||
2 | teacher after salary adjustments
are completed, or (b) at | ||||||
3 | the time of reappointment after salary
adjustments are | ||||||
4 | completed, whichever is later, but not less than $450
per | ||||||
5 | year of service. Upon the Board's approval of such service | ||||||
6 | and the
payment of the required contributions, service | ||||||
7 | credit of not more than
10 years shall be granted.
| ||||||
8 | 2. For service as a playground instructor in public | ||||||
9 | school playgrounds,
teachers shall pay the contributions | ||||||
10 | prescribed in this Article (a) at
the time of appointment, | ||||||
11 | as a regularly certified teacher after salary
adjustments | ||||||
12 | are completed, or (b) on return to service as a full time
| ||||||
13 | regularly certified teacher, as the case may be, provided | ||||||
14 | such rates or
amounts shall not be less than $450 per year.
| ||||||
15 | 3. For service prior to September 1, 1955, in the | ||||||
16 | public schools of the
City as a substitute, evening school | ||||||
17 | or temporary teacher, or for service
as an Americanization | ||||||
18 | teacher prior to December 31, 1955, teachers shall pay
the | ||||||
19 | contributions prescribed in this Article (a) at the time | ||||||
20 | of appointment,
as a regularly certified teacher after | ||||||
21 | salary adjustments are completed,
(b) on return to service | ||||||
22 | as a full time regularly certified teacher, as
the case | ||||||
23 | may be, provided such rates or amounts shall not be less | ||||||
24 | than $450
per year; and provided further that for teachers | ||||||
25 | employed on or after September
1, 1953, rates shall not | ||||||
26 | include contributions for widows' pensions if the
service |
| |||||||
| |||||||
1 | described in this sub-paragraph 3 was rendered before that | ||||||
2 | date. Any
teacher entitled to repay a refund of | ||||||
3 | contributions under Section 17-126 may validate service | ||||||
4 | described in this paragraph by
payment of the amounts | ||||||
5 | prescribed herein, together with the repayment of the
| ||||||
6 | refund, provided that if such creditable service was the | ||||||
7 | last service rendered
in the public schools of the City | ||||||
8 | and is not automatically reinstated by
repayment of the | ||||||
9 | refund, the rates or amounts shall not be less than $450 | ||||||
10 | per
year.
| ||||||
11 | 4. For service after June 30, 1982 as a member of the | ||||||
12 | Board of
Education, if required to resign from an | ||||||
13 | administrative or teaching position
in order to qualify as | ||||||
14 | a member of the Board of Education.
| ||||||
15 | 5. For service during the 1986-87 school year as a | ||||||
16 | teacher on a special
leave of absence with full loss of | ||||||
17 | salary, teaching for an agency under
contract to the Board | ||||||
18 | of Education, if the teacher returned to employment in
| ||||||
19 | September, 1987. For service under this item 5, the | ||||||
20 | teacher must pay the
contributions at the rates in force | ||||||
21 | at the completion of the leave period.
| ||||||
22 | 6. For up to 2 years of service as a teacher or | ||||||
23 | administrator employed
by a private school registered with | ||||||
24 | or recognized by the Illinois State Board
of Education, | ||||||
25 | provided that the teacher (i) was certified under the law
| ||||||
26 | governing the certification of teachers at the time the |
| |||||||
| |||||||
1 | service was rendered,
(ii) applies in writing no later | ||||||
2 | than 2 years after the effective date of this amendatory | ||||||
3 | Act of the 102nd General Assembly, (iii) supplies | ||||||
4 | satisfactory evidence of the employment, (iv) completes
at | ||||||
5 | least 10 years of contributing service as a teacher as | ||||||
6 | defined in
Section 17-106, (v) pays the contribution | ||||||
7 | required in this Section, and (vi)
does not receive credit | ||||||
8 | for that service under any other provision of this
Code. | ||||||
9 | The member may apply for credit under this subsection and | ||||||
10 | pay the
required contribution before completing the 10 | ||||||
11 | years of contributing service
required under item (iv), | ||||||
12 | but the credit may not be used until the item (iv)
| ||||||
13 | contributing service requirement has been met.
| ||||||
14 | For each year of service credit to be established | ||||||
15 | under this
subparagraph 6, a member is required to | ||||||
16 | contribute to the System (i) the employee and employer | ||||||
17 | contribution that would have been required had such | ||||||
18 | service been rendered as a member based on the annual | ||||||
19 | salary rate during the first year of full-time employment
| ||||||
20 | as a teacher under this Article following the private | ||||||
21 | school service, plus
(ii) interest thereon at the | ||||||
22 | actuarially assumed rate from the date of first full-time | ||||||
23 | employment as a teacher
under this Article following the | ||||||
24 | private school service to the date of payment,
compounded | ||||||
25 | annually , at a rate determined by the Board .
| ||||||
26 | For service described in sub-paragraphs 1, 2 and 3 of this |
| |||||||
| |||||||
1 | Section, interest
shall be charged beginning one year after | ||||||
2 | the effective date of appointment or
reappointment.
| ||||||
3 | Effective September 1, 1974, the interest rate to be | ||||||
4 | charged by the
Fund on contributions provided in | ||||||
5 | sub-paragraphs 1, 2, 3 and 4 shall
be 5% per annum compounded | ||||||
6 | annually.
| ||||||
7 | (Source: P.A. 102-822, eff. 5-13-22.)
| ||||||
8 | Article 99. | ||||||
9 | Section 99-90. The State Mandates Act is amended by adding | ||||||
10 | Section 8.47 as follows:
| ||||||
11 | (30 ILCS 805/8.47 new) | ||||||
12 | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | ||||||
13 | 8 of this Act, no reimbursement by the State is required for | ||||||
14 | the implementation of any mandate created by this amendatory | ||||||
15 | Act of the 103rd General Assembly.
| ||||||
16 | Section 99-99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|