Bill Text: IL SB2802 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Employee Article of the Illinois Pension Code. Provides that by paying specified required contributions, an employee who was laid off but returned to any State employment may establish creditable service for the period of the layoff, provided that (1) the applicant applies for the creditable service within 6 months after the effective date of the amendatory Act, (2) the applicant does not receive credit for that period under any other provision of the Code, (3) at the time of the layoff, the applicant is not in an initial probationary status consistent with the rules of the Department of Central Management Services, and (4) the total amount of creditable service established by the applicant does not exceed 3 years. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-17 - Referred to Assignments [SB2802 Detail]

Download: Illinois-2023-SB2802-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2802 Introduced 1/17/2024, by Sen. Win Stoller SYNOPSIS AS INTRODUCED:
40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
40 ILCS 5/14-152.1
Amends the State Employee Article of the Illinois Pension Code. Provides that by paying specified required contributions, an employee who was laid off but returned to any State employment may establish creditable service for the period of the layoff, provided that (1) the applicant applies for the creditable service within 6 months after the effective date of the amendatory Act, (2) the applicant does not receive credit for that period under any other provision of the Code, (3) at the time of the layoff, the applicant is not in an initial probationary status consistent with the rules of the Department of Central Management Services, and (4) the total amount of creditable service established by the applicant does not exceed 3 years. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
LRB103 34838 RPS 64695 b
A BILL FOR
SB2802 LRB103 34838 RPS 64695 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 14-104 and 14-152.1 as follows:
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in
this Section, the contributions shall be based upon the
employee's compensation and contribution rate in effect on the
date he last became a member of the System; provided that for
all employment prior to January 1, 1969 the contribution rate
shall be that in effect for a noncovered employee on the date
he last became a member of the System. Except as otherwise
provided in this Section, contributions permitted under this
Section shall include regular interest from the date an
employee last became a member of the System to the date of
payment.
These contributions must be paid in full before retirement
either in a lump sum or in installment payments in accordance
with such rules as may be adopted by the board.
(a) Any member may make contributions as required in this

SB2802 - 2 - LRB103 34838 RPS 64695 b
Section for any period of service, subsequent to the date of
establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who, after
January 1, 1944 but prior to becoming eligible for membership,
received salary from funds of insurance companies in the
process of rehabilitation, liquidation, conservation or
dissolution, may elect to make contributions as required in
this Section for such service.
(d) Any employee who rendered service in a State office to
which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by appointment
of the Governor under the Civil Administrative Code of
Illinois and did not participate in this System may make
contributions as required in this Section for such service.
(e) Any person employed by the United States government or
any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit

SB2802 - 3 - LRB103 34838 RPS 64695 b
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership service
credit for the period from January 1, 1944 through November
15, 1946 by making the contributions required in this Section.
A person so employed on January 1, 1944 but whose employment
began after January 1, 1942 may qualify for prior service and
membership service credit under the same conditions.
(f) An employee of the Department of Labor of the State of
Illinois who performed services for and under the supervision
of that Department prior to January 1, 1944 but who was
compensated for those services directly by federal funds and
not by a warrant of the Auditor of Public Accounts paid by the
State Treasurer may establish credit for such employment by
making the contributions required in this Section. An employee
of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that
Department prior to June 1, 1963, but was compensated for
those services directly by federal funds and not paid by a
warrant of the Auditor of Public Accounts paid by the State
Treasurer, and who did not contribute to any other public
employee retirement system for such service, may establish
credit for such employment by making the contributions
required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time while
in the service of a department, file with the board a

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rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the waiver
had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at least
5 continuous years may establish creditable service for such
employment by making the contributions required under this
Section, provided that any credits earned by the employee in
the commission's retirement plan have been terminated.
(i) Any person who rendered full time contractual services
to the General Assembly as a member of a legislative staff may
establish service credit for up to 8 years of such services by
making the contributions required under this Section, provided
that application therefor is made not later than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, but with all of the interest calculated from the
date the employee last became a member of the System or
November 19, 1991, whichever is later, to the date of payment,
an employee may establish service credit for a period of up to
4 years spent in active military service for which he does not
qualify for credit under Section 14-105, provided that (1) he
was not dishonorably discharged from such military service,
and (2) the amount of service credit established by a member

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under this subsection (j), when added to the amount of
military service credit granted to the member under subsection
(b) of Section 14-105, shall not exceed 5 years. The change in
the manner of calculating interest under this subsection (j)
made by this amendatory Act of the 92nd General Assembly
applies to credit purchased by an employee on or after its
effective date and does not entitle any person to a refund of
contributions or interest already paid. In compliance with
Section 14-152.1 of this Act concerning new benefit increases,
any new benefit increase as a result of the changes to this
subsection (j) made by Public Act 95-483 is funded through the
employee contributions provided for in this subsection (j).
Any new benefit increase as a result of the changes made to
this subsection (j) by Public Act 95-483 is exempt from the
provisions of subsection (d) of Section 14-152.1.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide Appellate
Assistance Service LEAA-ILEC grant project prior to the time
that project became the State's Attorneys Appellate Service
Commission, now the Office of the State's Attorneys Appellate
Prosecutor, an agency of State government, may establish
creditable service for not more than 60 months service for
such employment by making contributions required under this
Section.
(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be

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equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or
after January 1, 1982 and (2) any credit established by the
member for the period of leave in any other public employee
retirement system has been terminated. A member may establish
service credit under this subsection for more than one period
of authorized leave, and in that case the total period of
service credit established by the member under this subsection
may exceed one year. In determining the contributions required
for establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.
(l-5) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member
represented or was employed as an officer or employee of a
statewide labor organization that represents members of this
System. In determining the contributions required for
establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.

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(m) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the
contributions required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. To establish credit
under this subsection, the applicant must apply to the System
by March 1, 1998.
(n) Any person who rendered contractual services to a
member of the General Assembly as a worker providing
constituent services to persons in the member's district may
establish creditable service for up to 8 years of those
contractual services by making the contributions required
under this Section. The System shall determine a full-time
salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the
applicant must apply to the System by March 1, 1998.
(o) A member who participated in the Illinois Legislative
Staff Internship Program may establish creditable service for
up to one year of that participation by making the
contribution required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. Credit may not be
established under this subsection for any period for which
service credit is established under any other provision of

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this Code.
(p) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for a period
of up to 8 years during which he or she was employed by the
Visually Handicapped Managers of Illinois in a vending program
operated under a contractual agreement with the Department of
Rehabilitation Services or its successor agency.
This subsection (p) applies without regard to whether the
person was in service on or after the effective date of this
amendatory Act of the 94th General Assembly. In the case of a
person who is receiving a retirement annuity on that effective
date, the increase, if any, shall begin to accrue on the first
annuity payment date following receipt by the System of the
contributions required under this subsection (p).
(q) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest, an
employee who was laid off but returned to any State employment
may establish creditable service for the period of the layoff,
provided that (1) the applicant applies for the creditable
service under this subsection (q) within 6 months after the
effective date of this amendatory Act of the 103rd General
Assembly July 27, 2010 (the effective date of Public Act
96-1320), (2) the applicant does not receive credit for that

SB2802 - 9 - LRB103 34838 RPS 64695 b
period under any other provision of this Code, (3) at the time
of the layoff, the applicant is not in an initial probationary
status consistent with the rules of the Department of Central
Management Services, and (4) the total amount of creditable
service established by the applicant under this subsection (q)
does not exceed 3 years. For service established under this
subsection (q), the required employee contribution shall be
based on the rate of compensation earned by the employee on the
date of returning to employment after the layoff and the
contribution rate then in effect, and the required interest
shall be calculated at the actuarially assumed rate from the
date of returning to employment after the layoff to the date of
payment. Funding for any new benefit increase, as defined in
Section 14-152.1 of this Act, that is created under this
subsection (q) will be provided by the employee contributions
required under this subsection (q).
(r) A member who participated in the University of
Illinois Government Public Service Internship Program (GPSI)
may establish creditable service for up to 2 years of that
participation by making the contribution required under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest. The
System shall determine a full-time salary equivalent for the
purpose of calculating the required contribution. Credit may
not be established under this subsection for any period for
which service credit is established under any other provision

SB2802 - 10 - LRB103 34838 RPS 64695 b
of this Code.
(s) A member who worked as a nurse under a contractual
agreement for the Department of Public Aid, or its successor
agency, the Department of Human Services, in the Client
Assessment Unit and was subsequently determined to be a State
employee by the United States Internal Revenue Service and the
Illinois Labor Relations Board may establish creditable
service for those contractual services by making the
contributions required under this Section. To establish credit
under this subsection, the applicant must apply to the System
by July 1, 2008.
The Department of Human Services shall pay an employer
contribution based upon an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus
interest.
In compliance with Section 14-152.1 added by Public Act
94-4, the cost of the benefits provided by Public Act 95-583
are offset by the required employee and employer
contributions.
(t) Any person who rendered contractual services on a
full-time basis to the Illinois Institute of Natural Resources
and the Illinois Department of Energy and Natural Resources
may establish creditable service for up to 4 years of those
contractual services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit plus

SB2802 - 11 - LRB103 34838 RPS 64695 b
interest at the actuarially assumed rate from the first day of
the service for which credit is being established to the date
of payment. To establish credit under this subsection (t), the
applicant must apply to the System within 6 months after July
27, 2010 (the effective date of Public Act 96-1320).
(u) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit, plus interest, a
member may establish creditable service and earnings credit
for periods of furlough beginning on or after July 1, 2008. To
receive this credit, the participant must (i) apply in writing
to the System before December 31, 2011 and (ii) not receive
compensation for the furlough period. For service established
under this subsection, the required employee contribution
shall be based on the rate of compensation earned by the
employee immediately following the date of the first furlough
day in the time period specified in this subsection (u), and
the required interest shall be calculated at the actuarially
assumed rate from the date of the furlough to the date of
payment.
(v) Any member who rendered full-time contractual services
to an Illinois Veterans Home operated by the Department of
Veterans' Affairs may establish service credit for up to 8
years of such services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus

SB2802 - 12 - LRB103 34838 RPS 64695 b
interest at the actuarially assumed rate. To establish credit
under this subsection, the applicant must apply to the System
no later than 6 months after July 27, 2010 (the effective date
of Public Act 96-1320).
(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
8-12-11.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, 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

SB2802 - 13 - LRB103 34838 RPS 64695 b
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
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

SB2802 - 14 - LRB103 34838 RPS 64695 b
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; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)