SB1646 EngrossedLRB103 27811 RPS 54189 b SB1646 Engrossed LRB103 27811 RPS 54189 b
SB1646 Engrossed LRB103 27811 RPS 54189 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 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:
8 (40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
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
SB1646 Engrossed LRB103 27811 RPS 54189 b
SB1646 Engrossed- 2 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 2 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 2 - LRB103 27811 RPS 54189 b
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.
11 (Source: Laws 1963, p. 161.)
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
SB1646 Engrossed - 2 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 3 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 3 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 3 - LRB103 27811 RPS 54189 b
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.
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:
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
SB1646 Engrossed - 3 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 4 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 4 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 4 - LRB103 27811 RPS 54189 b
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,
SB1646 Engrossed - 4 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 5 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 5 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 5 - LRB103 27811 RPS 54189 b
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.
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).
SB1646 Engrossed - 5 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 6 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 6 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 6 - LRB103 27811 RPS 54189 b
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
SB1646 Engrossed - 6 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 7 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 7 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 7 - LRB103 27811 RPS 54189 b
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
SB1646 Engrossed - 7 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 8 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 8 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 8 - LRB103 27811 RPS 54189 b
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.)
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
SB1646 Engrossed - 8 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 9 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 9 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 9 - LRB103 27811 RPS 54189 b
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.
26 As soon as is practicable on or after January 1, 2022, the
SB1646 Engrossed - 9 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 10 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 10 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 10 - LRB103 27811 RPS 54189 b
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.)
SB1646 Engrossed - 10 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 11 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 11 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 11 - LRB103 27811 RPS 54189 b
1 (40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
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
6 Article 22A of this Act shall develop and establish a deferred
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.
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.
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
SB1646 Engrossed - 11 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 12 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 12 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 12 - LRB103 27811 RPS 54189 b
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.
14 The Plan established under this Section shall not be
15 implemented or amended until the Board is satisfied that
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.
20 The Board shall also review and oversee the administration
21 of the Plan.
22 (Source: P.A. 81-671.)
23 (40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
24 Sec. 24-107. Local government plans.
25 (a) Any unit of local government or school district may
SB1646 Engrossed - 12 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 13 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 13 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 13 - LRB103 27811 RPS 54189 b
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.
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
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
18 employee's salary.
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.
26 (c) The agency or department designated by the unit of
SB1646 Engrossed - 13 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 14 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 14 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 14 - LRB103 27811 RPS 54189 b
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
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.
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.
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:
SB1646 Engrossed - 14 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 15 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 15 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 15 - LRB103 27811 RPS 54189 b
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
SB1646 Engrossed - 15 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 16 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 16 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 16 - LRB103 27811 RPS 54189 b
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).
SB1646 Engrossed - 16 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 17 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 17 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 17 - LRB103 27811 RPS 54189 b
1 (Source: P.A. 83-261.)
2 Article 3.
3 Section 3-5. The Illinois Pension Code is amended by
4 changing Section 1-167 as follows:
5 (40 ILCS 5/1-167)
6 Sec. 1-167. Prohibited disclosures. No pension fund or
7 retirement system subject to this Code shall disclose the
8 following information of any members or participants of any
9 pension fund or retirement system: (1) the individual's home
10 address (including ZIP code and county); (2) the individual's
11 date of birth; (3) the individual's home and personal phone
12 number; (4) the individual's personal email address; (5)
13 personally identifying member or participant deduction
14 information; or (6) any membership status in a labor
15 organization or other voluntary association affiliated with a
16 labor organization or labor federation (including whether
17 participants are members of such organization, the identity of
18 such organization, whether or not participants pay or
19 authorize the payment of any dues or moneys to such
20 organization, and the amounts of such dues or moneys).
21 This Section does not apply to disclosures (i) required
22 under the Freedom of Information Act, (ii) for purposes of
23 conducting public operations or business, or (iii) to a labor
SB1646 Engrossed - 17 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 18 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 18 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 18 - LRB103 27811 RPS 54189 b
1 organization or other voluntary association affiliated with a
2 labor organization or labor federation or to the Municipal
3 Employees Society of Chicago.
4 (Source: P.A. 101-620, eff. 12-20-19.)
5 Article 4.
6 Section 4-5. The Illinois Pension Code is amended by
7 changing Section 24-105.2 as follows:
8 (40 ILCS 5/24-105.2)
9 Sec. 24-105.2. Automatic enrollment for certain employees.
10 The Department of Central Management Services shall
11 automatically enroll in the State Employees Deferred
12 Compensation Plan any employee who, on or after July 1, 2020,
13 becomes an active member or participant of a retirement system
14 created under Article 2, 14, or 18. Any agency with employees
15 subject to automatic enrollment must systematically provide
16 the employee data necessary for enrollment to the Department
17 of Central Management Services or its designee. An employee
18 automatically enrolled under this Section shall have 3% of his
19 or her pre-tax gross compensation for each compensation period
20 deferred into his or her deferred compensation account. The
21 Board may increase the default percentage amount of
22 compensation deferred into employee accounts.
23 An employee hired on or after January 1, 2024 shall be
SB1646 Engrossed - 18 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 19 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 19 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 19 - LRB103 27811 RPS 54189 b
1 automatically enrolled in the Plan beginning the first day of
2 the pay period following the close of the notice period,
3 unless the employee elects otherwise within the notice period.
4 During the notice period, an employee may elect to not
5 participate in the Plan or to increase or reduce the amount of
6 pre-tax gross compensation deferred. For the purposes of this
7 Section, "notice period" means a reasonable period of time
8 after the employee is provided with an automatic enrollment
9 notice as required under Section 414(w) of the Internal
10 Revenue Code of 1986, as amended. An employee who has been
11 automatically enrolled in the Plan may elect, within 90 days
12 after enrollment, to withdraw from the Plan and receive a
13 refund of amounts deferred, plus or minus any applicable
14 earnings, investment fees, and administrative fees. An
15 employee making such an election shall forfeit all employer
16 matching contributions, if any, made prior to the election.
17 Any refunded amount shall be included in the employee's gross
18 income for the taxable year in which the refund is issued.
19 An employee hired on or after July 1, 2020 and before
20 January 1, 2024 shall have 30 days from the start date of
21 employment to elect to not participate in the deferred
22 compensation plan or to elect to increase or reduce the amount
23 of pre-tax gross compensation deferred. An employee shall be
24 automatically enrolled in the Plan beginning the first day of
25 the pay period following the employee's thirtieth day of
26 employment. An employee who has been automatically enrolled in
SB1646 Engrossed - 19 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 20 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 20 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 20 - LRB103 27811 RPS 54189 b
1 the Plan may elect, within 90 days of enrollment, to withdraw
2 from the Plan and receive a refund of amounts deferred, plus or
3 minus any applicable earnings, investment fees, and
4 administrative fees. An employee making such an election shall
5 forfeit all employer matching contributions, if any, made
6 prior to the election. Any refunded amount shall be included
7 in the employee's gross income for the taxable year in which
8 the refund is issued.
9 As soon as practicable, the Board shall establish annual,
10 automatic increases to employee contribution rates for
11 employees who are automatically enrolled in the Plan pursuant
12 to this Section. The amount of automatic annual increases in
13 any 12-month period shall not exceed 1% of compensation.
14 Employees may elect to not receive automatic annual increases
15 in a manner described by the Board.
16 (Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
17 Article 5.
18 Section 5-5. The Illinois Pension Code is amended by
19 changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
20 follows:
21 (40 ILCS 5/22C-115)
22 Sec. 22C-115. Board of Trustees of the Fund.
23 (a) No later than February 1, 2020 (one month after the
SB1646 Engrossed - 20 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 21 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 21 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 21 - LRB103 27811 RPS 54189 b
1 effective date of Public Act 101-610) or as soon thereafter as
2 may be practicable, the Governor shall appoint, by and with
3 the advice and consent of the Senate, a transition board of
4 trustees consisting of 9 members as follows:
5 (1) three members representing municipalities and fire
6 protection districts who are mayors, presidents, chief
7 executive officers, chief financial officers, or other
8 officers, executives, or department heads of
9 municipalities or fire protection districts and appointed
10 from among candidates recommended by the Illinois
11 Municipal League;
12 (2) three members representing participants who are
13 participants and appointed from among candidates
14 recommended by the statewide labor organization
15 representing firefighters employed by at least 85
16 municipalities that is affiliated with the Illinois State
17 Federation of Labor;
18 (3) one member representing beneficiaries who is a
19 beneficiary and appointed from among the candidate or
20 candidates 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 (4) one member recommended by the Illinois Municipal
25 League; and
26 (5) one member who is a participant recommended by the
SB1646 Engrossed - 21 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 22 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 22 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 22 - LRB103 27811 RPS 54189 b
1 statewide labor organization representing firefighters
2 employed by at least 85 municipalities and that is
3 affiliated with the Illinois State Federation of Labor.
4 The transition board members shall serve until the initial
5 permanent board members are elected and qualified.
6 The transition board of trustees shall select the
7 chairperson of the transition board of trustees from among the
8 trustees for the duration of the transition board's tenure.
9 (b) The permanent board of trustees shall consist of 9
10 members comprised as follows:
11 (1) Three members who are mayors, presidents, chief
12 executive officers, chief financial officers, or other
13 officers, executives, or department heads of
14 municipalities or fire protection districts that have
15 participating pension funds and are elected by the mayors
16 and presidents of municipalities or fire protection
17 districts that have participating pension funds.
18 (2) Three members who are participants of
19 participating pension funds and elected by the
20 participants of participating pension funds.
21 (3) One member who is a beneficiary of a participating
22 pension fund and is elected by the beneficiaries of
23 participating pension funds.
24 (4) One member recommended by the Illinois Municipal
25 League who shall be appointed by the Governor with the
26 advice and consent of the Senate.
SB1646 Engrossed - 22 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 23 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 23 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 23 - LRB103 27811 RPS 54189 b
1 (5) One member recommended by the statewide labor
2 organization representing firefighters employed by at
3 least 85 municipalities and that is affiliated with the
4 Illinois State Federation of Labor who shall be appointed
5 by the Governor with the advice and consent of the Senate.
6 The permanent board of trustees shall select the
7 chairperson of the permanent board of trustees from among the
8 trustees for a term of 2 years. The holder of the office of
9 chairperson shall alternate between a person elected or
10 appointed under item (1) or (4) of this subsection (b) and a
11 person elected or appointed under item (2), (3), or (5) of this
12 subsection (b).
13 (c) Each trustee shall qualify by taking an oath of office
14 before the Secretary of State or the Board's appointed legal
15 counsel stating that he or she will diligently and honestly
16 administer the affairs of the board and will not violate or
17 knowingly permit the violation of any provision of this
18 Article.
19 (d) Trustees shall receive no salary for service on the
20 board but shall be reimbursed for travel expenses incurred
21 while on business for the board according to the standards in
22 effect for members of the Commission on Government Forecasting
23 and Accountability.
24 A municipality or fire protection district employing a
25 firefighter who is an elected or appointed trustee of the
26 board must allow reasonable time off with compensation for the
SB1646 Engrossed - 23 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 24 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 24 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 24 - LRB103 27811 RPS 54189 b
1 firefighter to conduct official business related to his or her
2 position on the board, including time for travel. The board
3 shall notify the municipality or fire protection district in
4 advance of the dates, times, and locations of this official
5 business. The Fund shall timely reimburse the municipality or
6 fire protection district for the reasonable costs incurred
7 that are due to the firefighter's absence.
8 (e) No trustee shall have any interest in any brokerage
9 fee, commission, or other profit or gain arising out of any
10 investment directed by the board. This subsection does not
11 preclude ownership by any member of any minority interest in
12 any common stock or any corporate obligation in which an
13 investment is directed by the board.
14 (f) Notwithstanding any provision or interpretation of law
15 to the contrary, any member of the transition board may also be
16 elected or appointed as a member of the permanent board.
17 Notwithstanding any provision or interpretation of law to
18 the contrary, any trustee of a fund established under Article
19 4 of this Code may also be appointed as a member of the
20 transition board or elected or appointed as a member of the
21 permanent board.
22 The restriction in Section 3.1 of the Lobbyist
23 Registration Act shall not apply to a member of the transition
24 board appointed pursuant to items (4) or (5) of subsection (a)
25 or to a member of the permanent board appointed pursuant to
26 items (4) or (5) of subsection (b).
SB1646 Engrossed - 24 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 25 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 25 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 25 - LRB103 27811 RPS 54189 b
1 (Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
2 (40 ILCS 5/22C-116)
3 Sec. 22C-116. Conduct and administration of elections;
4 terms of office.
5 (a) For the election of the permanent trustees, the
6 transition board shall administer the initial elections and
7 the permanent board shall administer all subsequent elections.
8 Each board shall develop and implement such procedures as it
9 determines to be appropriate for the conduct of such
10 elections. For the purposes of obtaining information necessary
11 to conduct elections under this Section, participating pension
12 funds shall cooperate with the Fund.
13 (b) All nominations for election shall be by petition.
14 Each petition for a trustee shall be executed as follows:
15 (1) for trustees to be elected by the mayors and
16 presidents of municipalities or fire protection districts
17 that have participating pension funds, by at least 20 such
18 mayors and presidents; except that this item (1) shall
19 apply only with respect to participating pension funds;
20 (2) for trustees to be elected by participants, by at
21 least 400 participants; and
22 (3) for trustees to be elected by beneficiaries, by at
23 least 100 beneficiaries.
24 (c) A separate ballot shall be used for each class of
25 trustee. The board shall prepare and send ballots and ballot
SB1646 Engrossed - 25 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 26 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 26 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 26 - LRB103 27811 RPS 54189 b
1 envelopes to the participants and beneficiaries eligible
2 voters to vote in accordance with rules adopted by the board.
3 The ballots shall contain the names of all candidates in
4 alphabetical order. The ballot envelope shall have on the
5 outside a form of certificate stating that the person voting
6 the ballot is a participant or beneficiary entitled to vote.
7 Eligible voters Participants and beneficiaries, upon
8 receipt of the ballot, shall vote the ballot and place it in
9 the ballot envelope, seal the envelope, execute the
10 certificate thereon, and return the ballot to the Fund.
11 The board shall set a final date for ballot return, and
12 ballots received prior to that date in a ballot envelope with a
13 properly executed certificate and properly voted shall be
14 valid ballots.
15 The board shall set a day for counting the ballots and name
16 judges and clerks of election to conduct the count of ballots
17 and shall make any rules necessary for the conduct of the
18 count.
19 The candidate or candidates receiving the highest number
20 of votes for each class of trustee shall be elected. In the
21 case of a tie vote, the winner shall be determined in
22 accordance with procedures developed by the Department of
23 Insurance.
24 In lieu of conducting elections via mail balloting as
25 described in this Section, the board may instead adopt rules
26 to provide for elections to be carried out solely via Internet
SB1646 Engrossed - 26 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 27 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 27 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 27 - LRB103 27811 RPS 54189 b
1 balloting or phone balloting. Nothing in this Section
2 prohibits the Fund from contracting with a third party to
3 administer the election in accordance with this Section.
4 (d) At any election, voting shall be as follows:
5 (1) Each person authorized to vote for an elected
6 trustee may cast one vote for each related position for
7 which such person is entitled to vote and may cast such
8 vote for any candidate or candidates on the ballot for
9 such trustee position.
10 (2) If only one candidate for each position is
11 properly nominated in petitions received, that candidate
12 shall be deemed the winner and no election under this
13 Section shall be required.
14 (3) The results shall be entered in the minutes of the
15 first meeting of the board following the tally of votes.
16 (e) The initial election for permanent trustees shall be
17 held and the permanent board shall be seated no later than 12
18 months after the effective date of this amendatory Act of the
19 101st General Assembly. Each subsequent election shall be held
20 no later than 30 days prior to the end of the term of the
21 incumbent trustees.
22 (f) The elected trustees shall each serve for terms of 4
23 years commencing on the first business day of the first month
24 after election; except that the terms of office of the
25 initially elected trustees shall be as follows:
26 (1) One trustee elected pursuant to item (1) of
SB1646 Engrossed - 27 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 28 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 28 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 28 - LRB103 27811 RPS 54189 b
1 subsection (b) of Section 22C-115 shall serve for a term
2 of 2 years and 2 trustees elected pursuant to item (1) of
3 subsection (b) of Section 22C-115 shall serve for a term
4 of 4 years;
5 (2) One trustee elected pursuant to item (2) of
6 subsection (b) of Section 22C-115 shall serve for a term
7 of 2 years and 2 trustees elected pursuant to item (2) of
8 subsection (b) of Section 22C-115 shall serve for a term
9 of 4 years; and
10 (3) The trustee elected pursuant to item (3) of
11 subsection (b) of Section 22C-115 shall serve for a term
12 of 2 years.
13 (g) The trustees appointed pursuant to items (4) and (5)
14 of subsection (b) of Section 22C-115 shall each serve for a
15 term of 4 years commencing on the first business day of the
16 first month after the election of the elected trustees.
17 (h) A member of the board who was elected pursuant to item
18 (1) of subsection (b) of Section 22C-115 who ceases to serve as
19 a mayor, president, chief executive officer, chief financial
20 officer, or other officer, executive, or department head of a
21 municipality or fire protection district that has a
22 participating pension fund shall not be eligible to serve as a
23 member of the board and his or her position shall be deemed
24 vacant. A member of the board who was elected by the
25 participants of participating pension funds who ceases to be a
26 participant may serve the remainder of his or her elected
SB1646 Engrossed - 28 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 29 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 29 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 29 - LRB103 27811 RPS 54189 b
1 term.
2 For a vacancy of an elected trustee occurring with an
3 unexpired term of 6 months or more, an election shall be
4 conducted for the vacancy in accordance with Section 22C-115
5 and this Section.
6 For a vacancy of an elected trustee occurring with an
7 unexpired term of less than 6 months, the vacancy shall be
8 filled by appointment by the board for the unexpired term as
9 follows: a vacancy of a member elected pursuant to item (1) of
10 subsection (b) of Section 22C-115 shall be filled by a mayor,
11 president, chief executive officer, chief financial officer,
12 or other officer, executive, or department head of a
13 municipality or fire protection district that has a
14 participating pension fund; a vacancy of a member elected
15 pursuant to item (2) of subsection (b) of Section 22C-115
16 shall be filled by a participant of a participating pension
17 fund; and a vacancy of a member elected under item (3) of
18 subsection (b) of Section 22C-115 shall be filled by a
19 beneficiary of a participating pension fund. A trustee
20 appointed to fill the vacancy of an elected trustee shall
21 serve until a successor is elected. Special elections to fill
22 the remainder of an unexpired term vacated by an elected
23 trustee shall be held concurrently with and in the same manner
24 as the next regular election for an elected trustee position.
25 Vacancies among the appointed trustees shall be filled for
26 unexpired terms by appointment in like manner as for the
SB1646 Engrossed - 29 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 30 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 30 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 30 - LRB103 27811 RPS 54189 b
1 original appointments.
2 (Source: P.A. 101-610, eff. 1-1-20.)
3 (40 ILCS 5/22C-119)
4 Sec. 22C-119. Adoption of rules. The board shall adopt
5 such rules (not inconsistent with this Code) as in its
6 judgment are desirable to implement and properly administer
7 this Article. Such rules shall specifically provide for the
8 following: (1) the implementation of the transition process
9 described in Section 22C-120; (2) the process by which the
10 participating pension funds may request transfer of funds; (3)
11 the process for the transfer in, receipt for, and investment
12 of pension assets received by the Fund after the transition
13 period from the participating pension funds; (4) the process
14 by which contributions from municipalities and fire protection
15 districts for the benefit of the participating pension funds
16 may, but are not required to, be directly transferred to the
17 Fund; and (5) compensation and benefits for its employees. A
18 copy of the rules adopted by the Fund shall be posted on the
19 Fund's website filed with the Secretary of State and the
20 Department of Insurance. The adoption and effectiveness of
21 such rules shall not be subject to Article 5 of the Illinois
22 Administrative Procedure Act.
23 (Source: P.A. 101-610, eff. 1-1-20.)
24 (40 ILCS 5/22C-123)
SB1646 Engrossed - 30 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 31 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 31 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 31 - LRB103 27811 RPS 54189 b
1 Sec. 22C-123. Custodian. The pension fund assets
2 transferred to or otherwise acquired by the Fund shall be
3 placed in the custody of a custodian who shall provide
4 adequate safe deposit facilities for those assets and hold all
5 such securities, funds, and other assets subject to the order
6 of the Fund.
7 Each custodian shall furnish a corporate surety bond of
8 such amount as the board designates, which bond shall
9 indemnify the Fund, the board, and the officers and employees
10 of the Fund against any loss that may result from any action or
11 failure to act by the custodian or any of the custodian's
12 agents, or provide insurance coverages of such type and limits
13 as the board designates. All charges incidental to the
14 procuring and giving of any bond shall be paid by the board and
15 each bond shall be in the custody of the board.
16 (Source: P.A. 101-610, eff. 1-1-20.)
17 Article 6.
18 Section 6-5. The Illinois Pension Code is amended by
19 changing Section 8-165 as follows:
20 (40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
21 Sec. 8-165. Re-entry into service.
22 (a) Except as provided in subsection (c) or (d), when an
23 employee receiving age and service or prior service annuity
SB1646 Engrossed - 31 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 32 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 32 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 32 - LRB103 27811 RPS 54189 b
1 who has withdrawn from service after the effective date
2 re-enters service before age 65, any annuity previously
3 granted and any annuity fixed for his wife shall be cancelled.
4 The employee shall be credited for annuity purposes with sums
5 sufficient to provide annuities equal to those cancelled, as
6 of their ages on the date of re-entry; provided, the maximum
7 age of the wife for this purpose shall be as provided in
8 Section 8-155 of this Article.
9 The sums so credited shall provide for annuities to be
10 fixed and granted in the future. Contributions by the
11 employees and the city for the purposes of this Article shall
12 be made, and when the proper time arrives, as provided in this
13 Article, new annuities based upon the total credit for annuity
14 purposes and the entire term of his service shall be fixed for
15 the employee and his wife.
16 If the employee's wife died before he re-entered service,
17 no part of any credits for widow's or widow's prior service
18 annuity at the time annuity for his wife was fixed shall be
19 credited upon re-entry into service, and no such sums shall
20 thereafter be used to provide such annuity.
21 (b) Except as provided in subsection (c) or (d), when an
22 employee re-enters service after age 65, payments on account
23 of any annuity previously granted shall be suspended during
24 the time thereafter that he is in service, and when he again
25 withdraws, annuity payments shall be resumed. If the employee
26 dies in service, his widow shall receive the amount of annuity
SB1646 Engrossed - 32 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 33 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 33 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 33 - LRB103 27811 RPS 54189 b
1 previously fixed for her.
2 (c) For school years beginning on or after July 1, 2021, an
3 age and service or prior service annuity shall not be
4 cancelled in the case of an employee who is re-employed by the
5 Board of Education of the city as a Special Education
6 Classroom Assistant or Classroom Assistant on a temporary and
7 non-annual basis or on an hourly basis so long as the person:
8 (1) does not work for compensation on more than 120 days in a
9 school year; or (2) does not accept gross compensation for the
10 re-employment in a school year in excess of $30,000. These
11 limitations apply only to school years that begin on or after
12 July 1, 2021. Re-employment under this subsection does not
13 require contributions, result in service credit being earned
14 or granted, or constitute active participation in the Fund.
15 (d) For school years beginning on or after July 1, 2023, an
16 age and service or prior service annuity shall not be
17 cancelled in the case of an employee who is re-employed by the
18 Board of Education of the city as a paraprofessional or
19 related service provider on a temporary and non-annual basis
20 or on an hourly basis so long as the person: (1) does not work
21 for compensation on more than 120 days in a school year; or (2)
22 does not accept gross compensation for the re-employment in a
23 school year in excess of $30,000. These limitations apply only
24 to school years that begin on or after July 1, 2023.
25 Re-employment under this subsection does not require
26 contributions, result in service credit being earned or
SB1646 Engrossed - 33 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 34 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 34 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 34 - LRB103 27811 RPS 54189 b
1 granted, or constitute active participation in the Fund.
2 (Source: P.A. 102-342, eff. 8-13-21.)
3 Article 7.
4 Section 7-5. The School Code is amended by changing
5 Section 24-6.3 as follows:
6 (105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
7 Sec. 24-6.3. Retirement trustee leave.
8 (a) Each school board employing a teacher who is an
9 elected trustee of the Teachers' Retirement System of the
10 State of Illinois shall make available to the elected trustee
11 at least 20 days of paid leave of absence per year for the
12 purpose of attending meetings of the System's Board of
13 Trustees, committee meetings of such Board, and seminars
14 regarding issues for which such Board is responsible. The
15 Teachers' Retirement System of the State of Illinois shall
16 reimburse affected school districts for the actual cost of
17 hiring a substitute teacher during such leaves of absence.
18 (b) Each school board employing an employee who is an
19 elected trustee of the Illinois Municipal Retirement Fund
20 shall make available to the elected trustee at least 20 days of
21 paid leave of absence per year for the purpose of attending
22 meetings of the Fund's Board of Trustees, committee meetings
23 of the Board of Trustees, and seminars regarding issues for
SB1646 Engrossed - 34 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 35 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 35 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 35 - LRB103 27811 RPS 54189 b
1 which the Board of Trustees is responsible. The Illinois
2 Municipal Retirement Fund may reimburse affected school
3 districts for the actual cost of hiring a substitute employee
4 during such leaves of absence.
5 (c) The school board established under Article 34 and
6 employers under Article 17 of the Illinois Pension Code shall
7 make available to each active teacher who is an elected
8 trustee of the Board of Trustees of the Public School
9 Teachers' Pension and Retirement Fund of Chicago established
10 under Article 17 of the Illinois Pension Code up to 22 days of
11 paid leave of absence per year for the purpose of attending
12 meetings of the Board of Trustees, committee meetings of the
13 Board of Trustees, and seminars regarding issues for which the
14 Board of Trustees is responsible. The allocation of the days
15 of paid leave shall be at the discretion of the Board of
16 Trustees of the Public School Teachers' Pension and Retirement
17 Fund of Chicago.
18 (Source: P.A. 96-357, eff. 8-13-09.)
19 Article 8.
20 Section 8-5. The Illinois Pension Code is amended by
21 changing Section 16-155 as follows:
22 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
23 Sec. 16-155. Report to system and payment of deductions.
SB1646 Engrossed - 35 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 36 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 36 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 36 - LRB103 27811 RPS 54189 b
1 (a) The employer governing body of each school district
2 shall submit to the System all required reports and make two
3 deposits each month. The deposit for member contributions for
4 salary paid during any between the first and the fifteenth of
5 the month is due by the 10th 25th of the following month.
6 Additionally, all The deposit of member contributions for
7 salary paid between the sixteenth and last day of the month is
8 due by the 10th of the following month. All required
9 contributions for salary earned during a school term are due
10 by July 10 next following the close of such school term.
11 The governing body of each State institution coming under
12 this retirement system, the State Comptroller or other State
13 officer certifying payroll vouchers including payments of
14 salary or wages to teachers, and any other employer of
15 teachers, shall, monthly, forward to the secretary of the
16 retirement system the member contributions required under this
17 Article.
18 Each employer specified above shall, prior to August 15 of
19 each year, forward to the System a detailed statement,
20 verified in all cases of school districts by the secretary or
21 clerk of the district, of the amounts so contributed since the
22 period covered by the last previous annual statement, together
23 with required contributions not yet forwarded, such payments
24 being payable to the System.
25 The board may prescribe rules governing the form, content,
26 investigation, control, and supervision of such statements and
SB1646 Engrossed - 36 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 37 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 37 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 37 - LRB103 27811 RPS 54189 b
1 may establish additional interim employer reporting
2 requirements as the Board deems necessary. If no teacher in a
3 school district comes under the provisions of this Article,
4 the governing body of the district shall so state under the
5 oath of its secretary to this system, and shall at the same
6 time forward a copy of the statement to the regional
7 superintendent of schools.
8 The board may also require reporting requirements that are
9 different than those prescribed in this Section and may
10 require different reporting requirements for different
11 benefits or purposes established under this Article,
12 including, but not limited to, any optional benefit plan an
13 employee chooses to participate in.
14 (b) If the governing body of an employer that is not a
15 State agency fails to forward such required contributions
16 within the time permitted in subsection (a) above, the System
17 shall notify the employer of an additional amount due, equal
18 to $50 per day for each day that elapses from the due date
19 until the day such report and employee contributions are
20 received by the System.
21 (c) If the system, on August 15, is not in receipt of the
22 detailed statements required under this Section of any school
23 district or other employing unit, such school district or
24 other employing unit shall pay to the system an amount equal to
25 $250 for each day that elapses from August 15, until the day
26 such statement is filed with the system.
SB1646 Engrossed - 37 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 38 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 38 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 38 - LRB103 27811 RPS 54189 b
1 (Source: P.A. 101-502, eff. 8-23-19.)
2 Article 9.
3 Section 9-5. The Illinois Pension Code is amended by
4 changing Sections 9-108.3 and 9-161 as follows:
5 (40 ILCS 5/9-108.3)
6 Sec. 9-108.3. In service. "In service": Any period during
7 which contributions are being made to the Fund on behalf of an
8 employee except for temporary election work as described in
9 subsection (c) of Section 9-161.
10 (Source: P.A. 99-578, eff. 7-15-16.)
11 (40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
12 Sec. 9-161. Re-entry into service. (a) When an employee
13 who has withdrawn from service after the effective date
14 re-enters service before age 65, any annuity previously
15 granted and any annuity fixed for his wife shall be cancelled.
16 The employee shall be credited for annuity purposes with the
17 actuarial value of annuities equal to those cancelled as of
18 their ages on the date of re-entry; provided, the maximum age
19 of the wife for this purpose shall be as provided in Section
20 9-151 of this Article. The sums so credited shall provide for
21 annuities to be fixed and granted in the future. Contributions
22 by the employee and the county for the purposes of this Article
SB1646 Engrossed - 38 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 39 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 39 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 39 - LRB103 27811 RPS 54189 b
1 shall be made and when the proper time arrives, as provided in
2 this Article, new annuities based upon the total sums
3 accumulated to his credit for annuity purposes and the entire
4 term of his service shall be fixed for the employee and his
5 wife.
6 If the employee's wife has died before he re-entered
7 service, no part of any credits for widow's or widow's prior
8 service annuity at the time annuity for his wife was fixed
9 shall be credited upon re-entry into service, and no such sums
10 shall thereafter be used to provide such annuity.
11 (b) When an employee re-enters service after age 65,
12 payments on account of any annuity previously granted shall be
13 suspended during the time thereafter that he is in service,
14 and when he again withdraws annuity payments shall be resumed.
15 If the employee dies in service, his widow shall receive the
16 annuity previously fixed for her.
17 (c) If an employee annuitant re-enters service as an
18 election worker and provides services for a scheduled federal,
19 State, or local election for a period of 60 days or less during
20 a calendar year, that employee annuitant's annuity shall not
21 be suspended and such employee annuitant shall not be
22 considered to be in service within the meaning of Section
23 9-108.3 and is not entitled to benefits for employees in
24 service. If an employee annuitant re-enters service for a
25 period longer than 60 days during a calendar year, the annuity
26 shall be suspended or cancelled retroactive to the initial
SB1646 Engrossed - 39 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 40 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 40 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 40 - LRB103 27811 RPS 54189 b
1 date of re-entry.
2 (Source: P.A. 81-1536.)
3 Article 10.
4 Section 10-5. The Illinois Pension Code is amended by
5 changing Section 17-133 as follows:
6 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
7 Sec. 17-133. Contributions for periods of outside and
8 other service. Regularly certified and appointed teachers who
9 desire to have the following described services credited for
10 pension purposes shall submit to the Board evidence thereof
11 and pay into the Fund the amounts prescribed herein:
12 1. For teaching service by a certified teacher in the
13 public schools of the several states or in schools
14 operated by or under the auspices of the United States, a
15 teacher shall pay the contributions at the rates in force
16 (a) on the date of appointment as a regularly certified
17 teacher after salary adjustments are completed, or (b) at
18 the time of reappointment after salary adjustments are
19 completed, whichever is later, but not less than $450 per
20 year of service. Upon the Board's approval of such service
21 and the payment of the required contributions, service
22 credit of not more than 10 years shall be granted.
23 2. For service as a playground instructor in public
SB1646 Engrossed - 40 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 41 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 41 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 41 - LRB103 27811 RPS 54189 b
1 school playgrounds, teachers shall pay the contributions
2 prescribed in this Article (a) at the time of appointment,
3 as a regularly certified teacher after salary adjustments
4 are completed, or (b) on return to service as a full time
5 regularly certified teacher, as the case may be, provided
6 such rates or amounts shall not be less than $450 per year.
7 3. For service prior to September 1, 1955, in the
8 public schools of the City as a substitute, evening school
9 or temporary teacher, or for service as an Americanization
10 teacher prior to December 31, 1955, teachers shall pay the
11 contributions prescribed in this Article (a) at the time
12 of appointment, as a regularly certified teacher after
13 salary adjustments are completed, (b) on return to service
14 as a full time regularly certified teacher, as the case
15 may be, provided such rates or amounts shall not be less
16 than $450 per year; and provided further that for teachers
17 employed on or after September 1, 1953, rates shall not
18 include contributions for widows' pensions if the service
19 described in this sub-paragraph 3 was rendered before that
20 date. Any teacher entitled to repay a refund of
21 contributions under Section 17-126 may validate service
22 described in this paragraph by payment of the amounts
23 prescribed herein, together with the repayment of the
24 refund, provided that if such creditable service was the
25 last service rendered in the public schools of the City
26 and is not automatically reinstated by repayment of the
SB1646 Engrossed - 41 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 42 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 42 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 42 - LRB103 27811 RPS 54189 b
1 refund, the rates or amounts shall not be less than $450
2 per year.
3 4. For service after June 30, 1982 as a member of the
4 Board of Education, if required to resign from an
5 administrative or teaching position in order to qualify as
6 a member of the Board of Education.
7 5. For service during the 1986-87 school year as a
8 teacher on a special leave of absence with full loss of
9 salary, teaching for an agency under contract to the Board
10 of Education, if the teacher returned to employment in
11 September, 1987. For service under this item 5, the
12 teacher must pay the contributions at the rates in force
13 at the completion of the leave period.
14 6. For up to 2 years of service as a teacher or
15 administrator employed by a private school registered with
16 or recognized by the Illinois State Board of Education,
17 provided that the teacher (i) was certified under the law
18 governing the certification of teachers at the time the
19 service was rendered, (ii) applies in writing no later
20 than 2 years after the effective date of this amendatory
21 Act of the 102nd General Assembly, (iii) supplies
22 satisfactory evidence of the employment, (iv) completes at
23 least 10 years of contributing service as a teacher as
24 defined in Section 17-106, (v) pays the contribution
25 required in this Section, and (vi) does not receive credit
26 for that service under any other provision of this Code.
SB1646 Engrossed - 42 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 43 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 43 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 43 - LRB103 27811 RPS 54189 b
1 The member may apply for credit under this subsection and
2 pay the required contribution before completing the 10
3 years of contributing service required under item (iv),
4 but the credit may not be used until the item (iv)
5 contributing service requirement has been met.
6 For each year of service credit to be established
7 under this subparagraph 6, a member is required to
8 contribute to the System (i) the employee and employer
9 contribution that would have been required had such
10 service been rendered as a member based on the annual
11 salary rate during the first year of full-time employment
12 as a teacher under this Article following the private
13 school service, plus (ii) interest thereon at the
14 actuarially assumed rate from the date of first full-time
15 employment as a teacher under this Article following the
16 private school service to the date of payment, compounded
17 annually, at a rate determined by the Board.
18 For service described in sub-paragraphs 1, 2 and 3 of this
19 Section, interest shall be charged beginning one year after
20 the effective date of appointment or reappointment.
21 Effective September 1, 1974, the interest rate to be
22 charged by the Fund on contributions provided in
23 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
24 annually.
25 (Source: P.A. 102-822, eff. 5-13-22.)
SB1646 Engrossed - 43 - LRB103 27811 RPS 54189 b
SB1646 Engrossed- 44 -LRB103 27811 RPS 54189 b SB1646 Engrossed - 44 - LRB103 27811 RPS 54189 b
SB1646 Engrossed - 44 - LRB103 27811 RPS 54189 b
1 Article 99.
2 Section 99-90. The State Mandates Act is amended by adding
3 Section 8.47 as follows:
4 (30 ILCS 805/8.47 new)
5 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
6 8 of this Act, no reimbursement by the State is required for
7 the implementation of any mandate created by this amendatory
8 Act of the 103rd General Assembly.
9 Section 99-99. Effective date. This Act takes effect upon
10 becoming law.
SB1646 Engrossed - 44 - LRB103 27811 RPS 54189 b