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Illinois Senate Bill SB1646

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1646 Compare Versions

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1-Public Act 103-0552
21 SB1646 EnrolledLRB103 27811 RPS 54189 b SB1646 Enrolled LRB103 27811 RPS 54189 b
32 SB1646 Enrolled LRB103 27811 RPS 54189 b
4-AN ACT concerning public employee benefits.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Article 1.
8-Section 1-5. The Illinois Pension Code is amended by
9-changing Section 11-196 and by adding Section 12-162.5 as
10-follows:
11-(40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
12-Sec. 11-196. To subpoena witnesses and compel the
13-production of records. To issue subpoenas to compel the
14-attendance of witnesses to testify before it and to compel the
15-production of documents and records upon any matter concerning
16-the Fund, including, but not limited to, in conjunction with:
17-fund and allow witness fees not in excess of $6 per day.
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
3+1 AN ACT concerning public employee benefits.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Article 1.
7+5 Section 1-5. The Illinois Pension Code is amended by
8+6 changing Section 11-196 and by adding Section 12-162.5 as
9+7 follows:
10+8 (40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
11+9 Sec. 11-196. To subpoena witnesses and compel the
12+10 production of records. To issue subpoenas to compel the
13+11 attendance of witnesses to testify before it and to compel the
14+12 production of documents and records upon any matter concerning
15+13 the Fund, including, but not limited to, in conjunction with:
16+14 fund and allow witness fees not in excess of $6 per day.
17+15 (1) a disability claim;
18+16 (2) an administrative review proceeding;
19+17 (3) an attempt to obtain information to assist in the
20+18 collection of sums due to the Fund;
21+19 (4) obtaining any and all personal identifying
22+20 information necessary for the administration of benefits;
23+21 (5) the determination of the death of a benefit
24+22 recipient or a potential benefit recipient; or
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32-(6) a felony forfeiture investigation.
33-The fees of witnesses for attendance and travel shall be
34-the same as the fees of witnesses before the circuit courts of
35-this State and shall be paid by the party seeking the subpoena.
36-The Board may apply to any circuit court in the State for an
37-order requiring compliance with a subpoena issued under this
38-Section. Subpoenas issued under this Section shall be subject
39-to applicable provisions of the Code of Civil Procedure. The
40-president or other members of the board may administer oaths
41-to witnesses.
42-(Source: Laws 1963, p. 161.)
43-(40 ILCS 5/12-162.5 new)
44-Sec. 12-162.5. To subpoena witnesses and compel the
45-production of records. To issue subpoenas to compel the
46-attendance of witnesses to testify before it and to compel the
47-production of documents and records upon any matter concerning
48-the Fund, including, but not limited to, in conjunction with:
49-(1) a disability claim;
50-(2) an administrative review proceeding;
51-(3) an attempt to obtain information to assist in the
52-collection of sums due to the Fund;
53-(4) obtaining any and all personal identifying
54-information necessary for the administration of benefits;
55-(5) the determination of the death of a benefit
56-recipient or a potential benefit recipient; or
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32+ SB1646 Enrolled - 2 - LRB103 27811 RPS 54189 b
33+1 (6) a felony forfeiture investigation.
34+2 The fees of witnesses for attendance and travel shall be
35+3 the same as the fees of witnesses before the circuit courts of
36+4 this State and shall be paid by the party seeking the subpoena.
37+5 The Board may apply to any circuit court in the State for an
38+6 order requiring compliance with a subpoena issued under this
39+7 Section. Subpoenas issued under this Section shall be subject
40+8 to applicable provisions of the Code of Civil Procedure. The
41+9 president or other members of the board may administer oaths
42+10 to witnesses.
43+11 (Source: Laws 1963, p. 161.)
44+12 (40 ILCS 5/12-162.5 new)
45+13 Sec. 12-162.5. To subpoena witnesses and compel the
46+14 production of records. To issue subpoenas to compel the
47+15 attendance of witnesses to testify before it and to compel the
48+16 production of documents and records upon any matter concerning
49+17 the Fund, including, but not limited to, in conjunction with:
50+18 (1) a disability claim;
51+19 (2) an administrative review proceeding;
52+20 (3) an attempt to obtain information to assist in the
53+21 collection of sums due to the Fund;
54+22 (4) obtaining any and all personal identifying
55+23 information necessary for the administration of benefits;
56+24 (5) the determination of the death of a benefit
57+25 recipient or a potential benefit recipient; or
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59-(6) a felony forfeiture investigation.
60-The fees of witnesses for attendance and travel shall be
61-the same as the fees of witnesses before the circuit courts of
62-this State and shall be paid by the party seeking the subpoena.
63-The Board may apply to any circuit court in the State for an
64-order requiring compliance with a subpoena issued under this
65-Section. Subpoenas issued under this Section shall be subject
66-to applicable provisions of the Code of Civil Procedure. The
67-president or other members of the board may administer oaths
68-to witnesses.
69-Article 2.
70-Section 2-5. The Illinois Pension Code is amended by
71-changing Sections 15-202, 16-204, 24-104, and 24-107 as
72-follows:
73-(40 ILCS 5/15-202)
74-Sec. 15-202. Optional deferred compensation plan.
75-(a) As soon as practicable after August 10, 2018 (the
76-effective date of Public Act 100-769), the System shall offer
77-a deferred compensation plan that is eligible under Section
78-457(b) of the Internal Revenue Code of 1986, as amended, to
79-participating employees of the System employed by employers
80-described in Section 15-106 of this Code that qualify as
81-eligible employers under Section 457(e)(1)(A) of the Internal
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84-Revenue Code of 1986, as amended. Such eligible employers
85-shall adopt the plan with an effective date no later than
86-September 1, 2021. Participating employees may voluntarily
87-elect to make elective deferrals to the eligible deferred
88-compensation plan. Eligible employers may make optional
89-employer contributions to the plan on behalf of participating
90-employees, which contributions may be maintained, increased,
91-reduced, or eliminated at the discretion of the employer from
92-plan year to plan year. The plan shall collect voluntary
93-employee and optional employer contributions into an account
94-for each participant and shall offer investment options to the
95-participant. The plan under this Section shall be operated in
96-full compliance with any applicable State and federal laws,
97-and the System shall utilize generally accepted practices in
98-creating and maintaining the plan for the best interest of the
99-participants. In administering the deferred compensation plan,
100-the System shall require that the deferred compensation plan
101-recordkeeper agree that, in performing services with respect
102-to the deferred compensation plan, the recordkeeper: (i) will
103-not use information received as a result of providing services
104-with respect to the deferred compensation plan or the
105-participants in the deferred compensation plan to solicit the
106-participants in the deferred compensation plan for the purpose
107-of cross-selling nonplan products and services, unless in
108-response to a request by a participant in the deferred
109-compensation plan; and (ii) will not promote, recommend,
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112-endorse, or solicit participants in the deferred compensation
113-plan to purchase any financial products or services outside of
114-the deferred compensation plan, except that links to parts of
115-the recordkeeper's website that are generally available to the
116-public, are about commercial products, and may be encountered
117-by a participant in the regular course of navigating the
118-recordkeeper's website will not constitute a violation of this
119-item (ii). The System may use funds from the employee and
120-employer contributions to defray any and all costs of creating
121-and maintaining the plan. The System shall produce an annual
122-report on the participation in the plan and shall make the
123-report public.
124-(b) The System shall automatically enroll in the eligible
125-deferred compensation plan any employee of an eligible
126-employer who first becomes a participating employee of the
127-System on or after July 1, 2023 under an eligible automatic
128-contribution arrangement that is subject to Section 414(w) of
129-the Internal Revenue Code of 1986, as amended, and the United
130-States Department of Treasury regulations promulgated
131-thereunder. An employee who is automatically enrolled under
132-this subsection (b) shall have 3% of his or her compensation,
133-as defined by the plan, for each pay period deferred on a
134-pre-tax basis into his or her account, subject to any
135-contribution limits applicable to the plan. The Board may
136-increase the default percentage of compensation deferred under
137-this subsection (b).
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68+1 (6) a felony forfeiture investigation.
69+2 The fees of witnesses for attendance and travel shall be
70+3 the same as the fees of witnesses before the circuit courts of
71+4 this State and shall be paid by the party seeking the subpoena.
72+5 The Board may apply to any circuit court in the State for an
73+6 order requiring compliance with a subpoena issued under this
74+7 Section. Subpoenas issued under this Section shall be subject
75+8 to applicable provisions of the Code of Civil Procedure. The
76+9 president or other members of the board may administer oaths
77+10 to witnesses.
78+11 Article 2.
79+12 Section 2-5. The Illinois Pension Code is amended by
80+13 changing Sections 15-202, 16-204, 24-104, and 24-107 as
81+14 follows:
82+15 (40 ILCS 5/15-202)
83+16 Sec. 15-202. Optional deferred compensation plan.
84+17 (a) As soon as practicable after August 10, 2018 (the
85+18 effective date of Public Act 100-769), the System shall offer
86+19 a deferred compensation plan that is eligible under Section
87+20 457(b) of the Internal Revenue Code of 1986, as amended, to
88+21 participating employees of the System employed by employers
89+22 described in Section 15-106 of this Code that qualify as
90+23 eligible employers under Section 457(e)(1)(A) of the Internal
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140-An employee shall have 30 days from the date on which the
141-System provides the notice required under Section 414(w) of
142-the Internal Revenue Code of 1986, as amended, to elect to not
143-participate in the eligible deferred compensation plan or to
144-elect to increase or reduce the initial amount of elective
145-deferrals made to the plan. In the absence of such affirmative
146-election, the employee shall be automatically enrolled in the
147-plan on the first day of the calendar month, or as soon as
148-administratively practicable thereafter, following the 30th
149-day from the date on which the System provides the required
150-notice. An employee who has been automatically enrolled in the
151-plan under this subsection (b) may elect, within 90 days of
152-enrollment, to withdraw from the plan and receive a refund of
153-amounts deferred, adjusted by applicable earnings and fees. An
154-employee making such an election shall forfeit all employer
155-matching contributions, if any, made with respect to such
156-refunded elective deferrals and such forfeited amounts shall
157-be used to defray plan expenses. Any refunded elective
158-deferrals shall be included in the employee's gross income for
159-the taxable year in which the refund is issued.
160-(c) The System may provide for one or more automatic
161-contribution arrangements, which shall comply with all
162-applicable Internal Revenue Service rules and regulations, in
163-conjunction with or in lieu of the eligible automatic
164-contribution arrangement under subsection (b), for
165-participating employees of eligible employers whose annual
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168-earnings are limited by application of subsection (b) of
169-Section 15-111 of this Code. The amount of elective deferrals
170-made for the employee each pay period under an automatic
171-contribution arrangement shall equal the default percentage
172-specified by resolution of the Board multiplied by the
173-employee's compensation as defined by the plan, subject to any
174-contribution limits applicable to the plan, and shall be made
175-on a pre-tax basis. An employee subject to this subsection (c)
176-shall have 30 days from the date on which the System provides
177-written notice to the employee to elect to not participate in
178-the eligible deferred compensation plan or to elect to
179-increase or reduce the amount of initial elective deferrals
180-made to the plan. In the absence of such affirmative election,
181-the employee shall be automatically enrolled in the plan
182-beginning the first day of the calendar month, or as soon as
183-administratively practicable thereafter, following the 30th
184-day from the date on which the System provides the required
185-notice.
186-(d) The System may provide that the default percentage for
187-any employee automatically enrolled in the eligible deferred
188-compensation plan under subsection (b) or (c) be increased by
189-a specified percentage each plan year after the plan year in
190-which the employee is automatically enrolled in the plan. The
191-amount of automatic annual increases in any plan year shall
192-not exceed 1% of compensation as defined by the plan.
193-(e) The changes made to this Section by this amendatory
95+
96+ SB1646 Enrolled - 3 - LRB103 27811 RPS 54189 b
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196-Act of the 102nd General Assembly are corrections of existing
197-law and are intended to be retroactive to the effective date of
198-Public Act 100-769, notwithstanding Section 1-103.1 of this
199-Code.
200-(Source: P.A. 102-540, eff. 8-20-21.)
201-(40 ILCS 5/16-204)
202-Sec. 16-204. Optional defined contribution benefit. As
203-soon as practicable after the effective date of this
204-amendatory Act of the 100th General Assembly, the System shall
205-offer a defined contribution benefit to active members of the
206-System. The defined contribution benefit shall be an optional
207-benefit to any member who chooses to participate. The defined
208-contribution benefit shall collect optional employee and
209-optional employer contributions into an account and shall
210-offer investment options to the participant. The benefit under
211-this Section shall be operated in full compliance with any
212-applicable State and federal laws, and the System shall
213-utilize generally accepted practices in creating and
214-maintaining the benefit for the best interest of the
215-participants. In administering the defined contribution
216-benefit, the System shall require that the defined
217-contribution benefit recordkeeper agree that, in performing
218-services with respect to the defined contribution benefit, the
219-recordkeeper: (i) will not use information received as a
220-result of providing services with respect to the defined
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101+1 Revenue Code of 1986, as amended. Such eligible employers
102+2 shall adopt the plan with an effective date no later than
103+3 September 1, 2021. Participating employees may voluntarily
104+4 elect to make elective deferrals to the eligible deferred
105+5 compensation plan. Eligible employers may make optional
106+6 employer contributions to the plan on behalf of participating
107+7 employees, which contributions may be maintained, increased,
108+8 reduced, or eliminated at the discretion of the employer from
109+9 plan year to plan year. The plan shall collect voluntary
110+10 employee and optional employer contributions into an account
111+11 for each participant and shall offer investment options to the
112+12 participant. The plan under this Section shall be operated in
113+13 full compliance with any applicable State and federal laws,
114+14 and the System shall utilize generally accepted practices in
115+15 creating and maintaining the plan for the best interest of the
116+16 participants. In administering the deferred compensation plan,
117+17 the System shall require that the deferred compensation plan
118+18 recordkeeper agree that, in performing services with respect
119+19 to the deferred compensation plan, the recordkeeper: (i) will
120+20 not use information received as a result of providing services
121+21 with respect to the deferred compensation plan or the
122+22 participants in the deferred compensation plan to solicit the
123+23 participants in the deferred compensation plan for the purpose
124+24 of cross-selling nonplan products and services, unless in
125+25 response to a request by a participant in the deferred
126+26 compensation plan; and (ii) will not promote, recommend,
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223-contribution benefit or the participants in the defined
224-contribution benefit to solicit the participants in the
225-defined contribution benefit for the purpose of cross-selling
226-nonplan products and services, unless in response to a request
227-by a participant in the defined contribution benefit; and (ii)
228-will not promote, recommend, endorse, or solicit participants
229-in the defined contribution benefit to purchase any financial
230-products or services outside of the defined contribution
231-benefit, except that links to parts of the recordkeeper's
232-website that are generally available to the public, are about
233-commercial products, and may be encountered by a participant
234-in the regular course of navigating the recordkeeper's website
235-will not constitute a violation of this item (ii). The System
236-may use funds from the employee and employer contributions to
237-defray any and all costs of creating and maintaining the
238-benefit. In addition, the System may use funds provided under
239-Section 16-158 of this Code to defray any and all costs of
240-creating and maintaining the benefit and then shall reimburse
241-those costs from funds received from the employee and employer
242-contributions under this Section. All employers must comply
243-with the reporting and administrative functions established by
244-the System and are required to implement the benefits
245-established under this Section. The System shall produce an
246-annual report on the participation in the benefit and shall
247-make the report public.
248-As soon as is practicable on or after January 1, 2022, the
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251-System shall automatically enroll any employee who first
252-becomes an active member or participant in the System. A
253-member automatically enrolled under this Section shall have 3%
254-of his or her pre-tax gross compensation for each compensation
255-period deferred into his or her deferred compensation account,
256-unless the member otherwise instructs the System on forms
257-approved by the System. A member may elect, in a manner
258-provided for by the System, to not participate in the defined
259-contribution benefit or to increase or reduce the amount of
260-pre-tax gross compensation contributed, consistent with State
261-or federal law. A member shall be automatically enrolled in
262-the benefit beginning the first day of the pay period
263-following the member's 30th day of employment. A member who
264-has been automatically enrolled in the benefit may elect,
265-within 90 days of enrollment, to withdraw from the benefit and
266-receive a refund of amounts deferred, plus or minus any
267-applicable earnings, investment fees, and administrative fees.
268-Any refunded amount shall be included in the member's gross
269-income for the taxable year in which the refund is issued.
270-On or after January 1, 2023, the System may elect to
271-increase the automatic annual contributions under this
272-Section. The increase in the rate of contribution, however,
273-shall not exceed 2% of a member's pre-tax gross compensation
274-per year, and at no time shall any total contribution exceed
275-any contribution limits established by State or federal law.
276-(Source: P.A. 102-540, eff. 8-20-21.)
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279-(40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
280-Sec. 24-104. State Employees Deferred Compensation Plan.
281-In this Section, "Plan" means the State Employees Deferred
282-Compensation Plan.
283-The Illinois State Board of Investment created under
284-Article 22A of this Act shall develop and establish a deferred
285-compensation plan for employees of the State which shall be
286-known as the State Employees Deferred Compensation Plan. The
287-Plan shall provide for the Board to review proposed investment
288-offerings and shall require that only investments determined
289-to be acceptable by the Board may be used for investing
290-compensation deferred.
291-The Plan shall include appropriate provisions pertaining
292-to its day to day operation providing for methods of electing
293-to defer income, methods of changing the amount of income to be
294-deferred, methods of selecting from among investment options
295-available under the plan and such other provisions as may be
296-appropriate.
297-In administering the Plan, the Board shall require that
298-the Plan recordkeeper agree that, in performing services with
299-respect to the Plan, the recordkeeper: (i) will not use
300-information received as a result of providing services with
301-respect to the Plan or the Plan's participants to solicit the
302-Plan's participants for the purpose of cross-selling non-Plan
303-products and services, unless in response to a request by a
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137+1 endorse, or solicit participants in the deferred compensation
138+2 plan to purchase any financial products or services outside of
139+3 the deferred compensation plan, except that links to parts of
140+4 the recordkeeper's website that are generally available to the
141+5 public, are about commercial products, and may be encountered
142+6 by a participant in the regular course of navigating the
143+7 recordkeeper's website will not constitute a violation of this
144+8 item (ii). The System may use funds from the employee and
145+9 employer contributions to defray any and all costs of creating
146+10 and maintaining the plan. The System shall produce an annual
147+11 report on the participation in the plan and shall make the
148+12 report public.
149+13 (b) The System shall automatically enroll in the eligible
150+14 deferred compensation plan any employee of an eligible
151+15 employer who first becomes a participating employee of the
152+16 System on or after July 1, 2023 under an eligible automatic
153+17 contribution arrangement that is subject to Section 414(w) of
154+18 the Internal Revenue Code of 1986, as amended, and the United
155+19 States Department of Treasury regulations promulgated
156+20 thereunder. An employee who is automatically enrolled under
157+21 this subsection (b) shall have 3% of his or her compensation,
158+22 as defined by the plan, for each pay period deferred on a
159+23 pre-tax basis into his or her account, subject to any
160+24 contribution limits applicable to the plan. The Board may
161+25 increase the default percentage of compensation deferred under
162+26 this subsection (b).
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306-Plan participant; and (ii) will not promote, recommend,
307-endorse, or solicit Plan participants to purchase any
308-financial products or services outside of the Plan, except
309-that links to parts of the recordkeeper's website that are
310-generally available to the public, are about commercial
311-products, and may be encountered by a Plan participant in the
312-regular course of navigating the recordkeeper's website will
313-not constitute a violation of this item (ii).
314-The Plan shall provide for the preparation, and
315-distribution from time to time to all eligible State
316-employees, of pamphlets describing the Plan and outlining the
317-options and opportunities available to State employees under
318-the Plan.
319-The Plan established under this Section shall not be
320-implemented or amended until the Board is satisfied that
321-compensation deferred under the Plan is not subject to income
322-tax for the year in which it is earned and that the taxation of
323-such compensation will be deferred until the time of its
324-distribution to the employee.
325-The Board shall also review and oversee the administration
326-of the Plan.
327-(Source: P.A. 81-671.)
328-(40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
329-Sec. 24-107. Local government plans.
330-(a) Any unit of local government or school district may
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333-establish for its employees a deferred compensation plan
334-program. Participation shall be by written agreement between
335-each employee and the legislative authority of the unit of
336-local government or school district providing for the deferral
337-of such compensation and the subsequent investment and
338-administration of such funds.
339-(b) Any unit of local government may establish an
340-employer-funded money purchase retirement plan for those of
341-its full time employees who are not eligible to participate in
342-any pension fund or retirement system established under
343-Articles 2 through 18 of this Code. Contributions to the plan
344-shall be made by the unit of local government only from general
345-purpose funds not derived from real property taxes imposed by
346-the unit, at a rate to be determined from time to time by the
347-unit of local government. However, the rate of employer
348-contribution shall be (i) the same for all employees
349-participating in the plan, and (ii) not more than 10% of the
350-employee's salary.
351-Any benefits accruing to the participants in a retirement
352-plan established under this subsection shall be protected from
353-impairment in accordance with Article XIII, Section 5 of the
354-Illinois Constitution. However, the unit of local government
355-establishing such a plan may terminate it at any time, unless
356-it has otherwise contractually agreed with its participating
357-employees.
358-(c) The agency or department designated by the unit of
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361-local government or school district to establish and
362-administer a plan or program authorized under subsection (a)
363-or (b) of this Section may invest the assets of the plan in
364-investments deemed appropriate by the agency or department,
365-including but not limited to life insurance or annuity
366-contracts, and share or share certificate accounts of State or
367-federal credit unions, the accounts of which are insured as
368-required by the Illinois Credit Union Act or the Federal
369-Credit Union Act, whichever is applicable. The payment of
370-employer contributions to a retirement plan established under
371-subsection (b), and investment and payment to a participant of
372-deferred compensation and income or gain thereon, if any,
373-shall not be construed to be prohibited uses of the general
374-assets of the unit of local government or school district.
375-This Section does not limit the power or authority of any
376-unit of local government, school district or any institution
377-supported in whole or in part by public funds to establish and
378-administer any other deferred compensation plans that may be
379-authorized by law and deemed appropriate by the officials of
380-such subdivisions or institutions.
381-(d) In administering the deferred compensation plans
382-authorized under this Section, the governing board or
383-administrators of the sponsoring unit of local government or
384-school district shall require that the deferred compensation
385-plan recordkeeper agree that, in performing services with
386-respect to the deferred compensation plan, the recordkeeper:
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173+1 An employee shall have 30 days from the date on which the
174+2 System provides the notice required under Section 414(w) of
175+3 the Internal Revenue Code of 1986, as amended, to elect to not
176+4 participate in the eligible deferred compensation plan or to
177+5 elect to increase or reduce the initial amount of elective
178+6 deferrals made to the plan. In the absence of such affirmative
179+7 election, the employee shall be automatically enrolled in the
180+8 plan on the first day of the calendar month, or as soon as
181+9 administratively practicable thereafter, following the 30th
182+10 day from the date on which the System provides the required
183+11 notice. An employee who has been automatically enrolled in the
184+12 plan under this subsection (b) may elect, within 90 days of
185+13 enrollment, to withdraw from the plan and receive a refund of
186+14 amounts deferred, adjusted by applicable earnings and fees. An
187+15 employee making such an election shall forfeit all employer
188+16 matching contributions, if any, made with respect to such
189+17 refunded elective deferrals and such forfeited amounts shall
190+18 be used to defray plan expenses. Any refunded elective
191+19 deferrals shall be included in the employee's gross income for
192+20 the taxable year in which the refund is issued.
193+21 (c) The System may provide for one or more automatic
194+22 contribution arrangements, which shall comply with all
195+23 applicable Internal Revenue Service rules and regulations, in
196+24 conjunction with or in lieu of the eligible automatic
197+25 contribution arrangement under subsection (b), for
198+26 participating employees of eligible employers whose annual
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389-(i) will not use information received as a result of providing
390-services with respect to the deferred compensation plan or the
391-deferred compensation plan's participants to solicit the
392-participants in the deferred compensation plan for the purpose
393-of cross-selling nonplan products and services, unless in
394-response to a request by a participant in the deferred
395-compensation plan; and (ii) will not promote, recommend,
396-endorse, or solicit participants in the deferred compensation
397-plan to purchase any financial products or services outside of
398-the deferred compensation plan, except that links to parts of
399-the recordkeeper's website that are generally available to the
400-public, are about commercial products, and may be encountered
401-by a Plan participant in the regular course of navigating the
402-recordkeeper's website will not constitute a violation of this
403-item (ii).
404-(Source: P.A. 87-794.)
405-Section 2-10. The University Employees Custodial Accounts
406-Act is amended by changing Section 2 as follows:
407-(110 ILCS 95/2) (from Ch. 144, par. 1702)
408-Sec. 2. The governing board of any public institution of
409-higher education has the power to establish a defined
410-contribution plan to make payments to custodial accounts for
411-investment in regulated investment company stock to provide
412-retirement benefits as described in Section 403(b)(7) of the
413201
414202
415-Internal Revenue Code for eligible employees of such
416-institutions. Such payments shall be made with funds made
417-available by deductions from or reductions in salary or wages
418-of eligible employees who authorize in writing deductions or
419-reductions for such purpose. Such stock shall be purchased
420-only from persons authorized to sell such stock in this State.
421-In administering the defined contribution plan, the
422-governing board of any public institution of higher education
423-shall require that the defined contribution plan recordkeeper
424-agree that, in performing services with respect to the defined
425-contribution plan, the recordkeeper: (i) will not use
426-information received as a result of providing services with
427-respect to the defined contribution plan or the participants
428-in the defined contribution plan to solicit the participants
429-in the defined contribution plan for the purpose of
430-cross-selling nonplan products and services, unless in
431-response to a request by a participant in the defined
432-contribution plan; and (ii) will not promote, recommend,
433-endorse, or solicit participants in the defined contribution
434-plan to purchase any financial products or services outside of
435-the defined contribution plan, except that links to parts of
436-the recordkeeper's website that are generally available to the
437-public, are about commercial products, and may be encountered
438-by a participant in the regular course of navigating the
439-recordkeeper's website will not constitute a violation of this
440-item (ii). However, a public institution of higher education
203+
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443-may allow promotion of limited services if the public
444-institution of higher education receives no compensation from
445-the recordkeeper for promoting or providing such services.
446-Such limited services may include educational, counseling,
447-debt reduction, student loan repayment or forgiveness, or
448-other services intended to enhance retirement savings
449-opportunities. Such limited services may not include credit
450-cards, life insurance, or banking products.
451-(Source: P.A. 83-261.)
452-Article 3.
453-Section 3-5. The Illinois Pension Code is amended by
454-changing Section 1-167 as follows:
455-(40 ILCS 5/1-167)
456-Sec. 1-167. Prohibited disclosures. No pension fund or
457-retirement system subject to this Code shall disclose the
458-following information of any members or participants of any
459-pension fund or retirement system: (1) the individual's home
460-address (including ZIP code and county); (2) the individual's
461-date of birth; (3) the individual's home and personal phone
462-number; (4) the individual's personal email address; (5)
463-personally identifying member or participant deduction
464-information; or (6) any membership status in a labor
465-organization or other voluntary association affiliated with a
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209+1 earnings are limited by application of subsection (b) of
210+2 Section 15-111 of this Code. The amount of elective deferrals
211+3 made for the employee each pay period under an automatic
212+4 contribution arrangement shall equal the default percentage
213+5 specified by resolution of the Board multiplied by the
214+6 employee's compensation as defined by the plan, subject to any
215+7 contribution limits applicable to the plan, and shall be made
216+8 on a pre-tax basis. An employee subject to this subsection (c)
217+9 shall have 30 days from the date on which the System provides
218+10 written notice to the employee to elect to not participate in
219+11 the eligible deferred compensation plan or to elect to
220+12 increase or reduce the amount of initial elective deferrals
221+13 made to the plan. In the absence of such affirmative election,
222+14 the employee shall be automatically enrolled in the plan
223+15 beginning the first day of the calendar month, or as soon as
224+16 administratively practicable thereafter, following the 30th
225+17 day from the date on which the System provides the required
226+18 notice.
227+19 (d) The System may provide that the default percentage for
228+20 any employee automatically enrolled in the eligible deferred
229+21 compensation plan under subsection (b) or (c) be increased by
230+22 a specified percentage each plan year after the plan year in
231+23 which the employee is automatically enrolled in the plan. The
232+24 amount of automatic annual increases in any plan year shall
233+25 not exceed 1% of compensation as defined by the plan.
234+26 (e) The changes made to this Section by this amendatory
466235
467236
468-labor organization or labor federation (including whether
469-participants are members of such organization, the identity of
470-such organization, whether or not participants pay or
471-authorize the payment of any dues or moneys to such
472-organization, and the amounts of such dues or moneys).
473-This Section does not apply to disclosures (i) required
474-under the Freedom of Information Act, (ii) for purposes of
475-conducting public operations or business, or (iii) to a labor
476-organization or other voluntary association affiliated with a
477-labor organization or labor federation or to the Municipal
478-Employees Society of Chicago.
479-(Source: P.A. 101-620, eff. 12-20-19.)
480-Article 4.
481-Section 4-5. The Illinois Pension Code is amended by
482-changing Section 24-105.2 as follows:
483-(40 ILCS 5/24-105.2)
484-Sec. 24-105.2. Automatic enrollment for certain employees.
485-The Department of Central Management Services shall
486-automatically enroll in the State Employees Deferred
487-Compensation Plan any employee who, on or after July 1, 2020,
488-becomes an active member or participant of a retirement system
489-created under Article 2, 14, or 18. Any agency with employees
490-subject to automatic enrollment must systematically provide
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493-the employee data necessary for enrollment to the Department
494-of Central Management Services or its designee. An employee
495-automatically enrolled under this Section shall have 3% of his
496-or her pre-tax gross compensation for each compensation period
497-deferred into his or her deferred compensation account. The
498-Board may increase the default percentage amount of
499-compensation deferred into employee accounts.
500-An employee hired on or after January 1, 2024 shall be
501-automatically enrolled in the Plan beginning the first day of
502-the pay period following the close of the notice period,
503-unless the employee elects otherwise within the notice period.
504-During the notice period, an employee may elect to not
505-participate in the Plan or to increase or reduce the amount of
506-pre-tax gross compensation deferred. For the purposes of this
507-Section, "notice period" means a reasonable period of time
508-after the employee is provided with an automatic enrollment
509-notice as required under Section 414(w) of the Internal
510-Revenue Code of 1986, as amended. An employee who has been
511-automatically enrolled in the Plan may elect, within 90 days
512-after enrollment, to withdraw from the Plan and receive a
513-refund of amounts deferred, plus or minus any applicable
514-earnings, investment fees, and administrative fees. An
515-employee making such an election shall forfeit all employer
516-matching contributions, if any, made prior to the election.
517-Any refunded amount shall be included in the employee's gross
518-income for the taxable year in which the refund is issued.
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519241
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521-An employee hired on or after July 1, 2020 and before
522-January 1, 2024 shall have 30 days from the start date of
523-employment to elect to not participate in the deferred
524-compensation plan or to elect to increase or reduce the amount
525-of pre-tax gross compensation deferred. An employee shall be
526-automatically enrolled in the Plan beginning the first day of
527-the pay period following the employee's thirtieth day of
528-employment. An employee who has been automatically enrolled in
529-the Plan may elect, within 90 days of enrollment, to withdraw
530-from the Plan and receive a refund of amounts deferred, plus or
531-minus any applicable earnings, investment fees, and
532-administrative fees. An employee making such an election shall
533-forfeit all employer matching contributions, if any, made
534-prior to the election. Any refunded amount shall be included
535-in the employee's gross income for the taxable year in which
536-the refund is issued.
537-As soon as practicable, the Board shall establish annual,
538-automatic increases to employee contribution rates for
539-employees who are automatically enrolled in the Plan pursuant
540-to this Section. The amount of automatic annual increases in
541-any 12-month period shall not exceed 1% of compensation.
542-Employees may elect to not receive automatic annual increases
543-in a manner described by the Board.
544-(Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
545-Article 5.
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244+ SB1646 Enrolled - 8 - LRB103 27811 RPS 54189 b
245+1 Act of the 102nd General Assembly are corrections of existing
246+2 law and are intended to be retroactive to the effective date of
247+3 Public Act 100-769, notwithstanding Section 1-103.1 of this
248+4 Code.
249+5 (Source: P.A. 102-540, eff. 8-20-21.)
250+6 (40 ILCS 5/16-204)
251+7 Sec. 16-204. Optional defined contribution benefit. As
252+8 soon as practicable after the effective date of this
253+9 amendatory Act of the 100th General Assembly, the System shall
254+10 offer a defined contribution benefit to active members of the
255+11 System. The defined contribution benefit shall be an optional
256+12 benefit to any member who chooses to participate. The defined
257+13 contribution benefit shall collect optional employee and
258+14 optional employer contributions into an account and shall
259+15 offer investment options to the participant. The benefit under
260+16 this Section shall be operated in full compliance with any
261+17 applicable State and federal laws, and the System shall
262+18 utilize generally accepted practices in creating and
263+19 maintaining the benefit for the best interest of the
264+20 participants. In administering the defined contribution
265+21 benefit, the System shall require that the defined
266+22 contribution benefit recordkeeper agree that, in performing
267+23 services with respect to the defined contribution benefit, the
268+24 recordkeeper: (i) will not use information received as a
269+25 result of providing services with respect to the defined
546270
547271
548-Section 5-5. The Illinois Pension Code is amended by
549-changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
550-follows:
551-(40 ILCS 5/22C-115)
552-Sec. 22C-115. Board of Trustees of the Fund.
553-(a) No later than February 1, 2020 (one month after the
554-effective date of Public Act 101-610) or as soon thereafter as
555-may be practicable, the Governor shall appoint, by and with
556-the advice and consent of the Senate, a transition board of
557-trustees consisting of 9 members as follows:
558-(1) three members representing municipalities and fire
559-protection districts who are mayors, presidents, chief
560-executive officers, chief financial officers, or other
561-officers, executives, or department heads of
562-municipalities or fire protection districts and appointed
563-from among candidates recommended by the Illinois
564-Municipal League;
565-(2) three members representing participants who are
566-participants and appointed from among candidates
567-recommended by the statewide labor organization
568-representing firefighters employed by at least 85
569-municipalities that is affiliated with the Illinois State
570-Federation of Labor;
571-(3) one member representing beneficiaries who is a
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574-beneficiary and appointed from among the candidate or
575-candidates recommended by the statewide labor organization
576-representing firefighters employed by at least 85
577-municipalities that is affiliated with the Illinois State
578-Federation of Labor;
579-(4) one member recommended by the Illinois Municipal
580-League; and
581-(5) one member who is a participant recommended by the
582-statewide labor organization representing firefighters
583-employed by at least 85 municipalities and that is
584-affiliated with the Illinois State Federation of Labor.
585-The transition board members shall serve until the initial
586-permanent board members are elected and qualified.
587-The transition board of trustees shall select the
588-chairperson of the transition board of trustees from among the
589-trustees for the duration of the transition board's tenure.
590-(b) The permanent board of trustees shall consist of 9
591-members comprised as follows:
592-(1) Three members who are mayors, presidents, chief
593-executive officers, chief financial officers, or other
594-officers, executives, or department heads of
595-municipalities or fire protection districts that have
596-participating pension funds and are elected by the mayors
597-and presidents of municipalities or fire protection
598-districts that have participating pension funds.
599-(2) Three members who are participants of
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602-participating pension funds and elected by the
603-participants of participating pension funds.
604-(3) One member who is a beneficiary of a participating
605-pension fund and is elected by the beneficiaries of
606-participating pension funds.
607-(4) One member recommended by the Illinois Municipal
608-League who shall be appointed by the Governor with the
609-advice and consent of the Senate.
610-(5) One member recommended by the statewide labor
611-organization representing firefighters employed by at
612-least 85 municipalities and that is affiliated with the
613-Illinois State Federation of Labor who shall be appointed
614-by the Governor with the advice and consent of the Senate.
615-The permanent board of trustees shall select the
616-chairperson of the permanent board of trustees from among the
617-trustees for a term of 2 years. The holder of the office of
618-chairperson shall alternate between a person elected or
619-appointed under item (1) or (4) of this subsection (b) and a
620-person elected or appointed under item (2), (3), or (5) of this
621-subsection (b).
622-(c) Each trustee shall qualify by taking an oath of office
623-before the Secretary of State or the Board's appointed legal
624-counsel stating that he or she will diligently and honestly
625-administer the affairs of the board and will not violate or
626-knowingly permit the violation of any provision of this
627-Article.
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279+ SB1646 Enrolled - 9 - LRB103 27811 RPS 54189 b
280+1 contribution benefit or the participants in the defined
281+2 contribution benefit to solicit the participants in the
282+3 defined contribution benefit for the purpose of cross-selling
283+4 nonplan products and services, unless in response to a request
284+5 by a participant in the defined contribution benefit; and (ii)
285+6 will not promote, recommend, endorse, or solicit participants
286+7 in the defined contribution benefit to purchase any financial
287+8 products or services outside of the defined contribution
288+9 benefit, except that links to parts of the recordkeeper's
289+10 website that are generally available to the public, are about
290+11 commercial products, and may be encountered by a participant
291+12 in the regular course of navigating the recordkeeper's website
292+13 will not constitute a violation of this item (ii). The System
293+14 may use funds from the employee and employer contributions to
294+15 defray any and all costs of creating and maintaining the
295+16 benefit. In addition, the System may use funds provided under
296+17 Section 16-158 of this Code to defray any and all costs of
297+18 creating and maintaining the benefit and then shall reimburse
298+19 those costs from funds received from the employee and employer
299+20 contributions under this Section. All employers must comply
300+21 with the reporting and administrative functions established by
301+22 the System and are required to implement the benefits
302+23 established under this Section. The System shall produce an
303+24 annual report on the participation in the benefit and shall
304+25 make the report public.
305+26 As soon as is practicable on or after January 1, 2022, the
628306
629307
630-(d) Trustees shall receive no salary for service on the
631-board but shall be reimbursed for travel expenses incurred
632-while on business for the board according to the standards in
633-effect for members of the Commission on Government Forecasting
634-and Accountability.
635-A municipality or fire protection district employing a
636-firefighter who is an elected or appointed trustee of the
637-board must allow reasonable time off with compensation for the
638-firefighter to conduct official business related to his or her
639-position on the board, including time for travel. The board
640-shall notify the municipality or fire protection district in
641-advance of the dates, times, and locations of this official
642-business. The Fund shall timely reimburse the municipality or
643-fire protection district for the reasonable costs incurred
644-that are due to the firefighter's absence.
645-(e) No trustee shall have any interest in any brokerage
646-fee, commission, or other profit or gain arising out of any
647-investment directed by the board. This subsection does not
648-preclude ownership by any member of any minority interest in
649-any common stock or any corporate obligation in which an
650-investment is directed by the board.
651-(f) Notwithstanding any provision or interpretation of law
652-to the contrary, any member of the transition board may also be
653-elected or appointed as a member of the permanent board.
654-Notwithstanding any provision or interpretation of law to
655-the contrary, any trustee of a fund established under Article
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658-4 of this Code may also be appointed as a member of the
659-transition board or elected or appointed as a member of the
660-permanent board.
661-The restriction in Section 3.1 of the Lobbyist
662-Registration Act shall not apply to a member of the transition
663-board appointed pursuant to items (4) or (5) of subsection (a)
664-or to a member of the permanent board appointed pursuant to
665-items (4) or (5) of subsection (b).
666-(Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
667-(40 ILCS 5/22C-116)
668-Sec. 22C-116. Conduct and administration of elections;
669-terms of office.
670-(a) For the election of the permanent trustees, the
671-transition board shall administer the initial elections and
672-the permanent board shall administer all subsequent elections.
673-Each board shall develop and implement such procedures as it
674-determines to be appropriate for the conduct of such
675-elections. For the purposes of obtaining information necessary
676-to conduct elections under this Section, participating pension
677-funds shall cooperate with the Fund.
678-(b) All nominations for election shall be by petition.
679-Each petition for a trustee shall be executed as follows:
680-(1) for trustees to be elected by the mayors and
681-presidents of municipalities or fire protection districts
682-that have participating pension funds, by at least 20 such
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685-mayors and presidents; except that this item (1) shall
686-apply only with respect to participating pension funds;
687-(2) for trustees to be elected by participants, by at
688-least 400 participants; and
689-(3) for trustees to be elected by beneficiaries, by at
690-least 100 beneficiaries.
691-(c) A separate ballot shall be used for each class of
692-trustee. The board shall prepare and send ballots and ballot
693-envelopes to the participants and beneficiaries eligible
694-voters to vote in accordance with rules adopted by the board.
695-The ballots shall contain the names of all candidates in
696-alphabetical order. The ballot envelope shall have on the
697-outside a form of certificate stating that the person voting
698-the ballot is a participant or beneficiary entitled to vote.
699-Eligible voters Participants and beneficiaries, upon
700-receipt of the ballot, shall vote the ballot and place it in
701-the ballot envelope, seal the envelope, execute the
702-certificate thereon, and return the ballot to the Fund.
703-The board shall set a final date for ballot return, and
704-ballots received prior to that date in a ballot envelope with a
705-properly executed certificate and properly voted shall be
706-valid ballots.
707-The board shall set a day for counting the ballots and name
708-judges and clerks of election to conduct the count of ballots
709-and shall make any rules necessary for the conduct of the
710-count.
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315+ SB1646 Enrolled - 10 - LRB103 27811 RPS 54189 b
316+1 System shall automatically enroll any employee who first
317+2 becomes an active member or participant in the System. A
318+3 member automatically enrolled under this Section shall have 3%
319+4 of his or her pre-tax gross compensation for each compensation
320+5 period deferred into his or her deferred compensation account,
321+6 unless the member otherwise instructs the System on forms
322+7 approved by the System. A member may elect, in a manner
323+8 provided for by the System, to not participate in the defined
324+9 contribution benefit or to increase or reduce the amount of
325+10 pre-tax gross compensation contributed, consistent with State
326+11 or federal law. A member shall be automatically enrolled in
327+12 the benefit beginning the first day of the pay period
328+13 following the member's 30th day of employment. A member who
329+14 has been automatically enrolled in the benefit may elect,
330+15 within 90 days of enrollment, to withdraw from the benefit and
331+16 receive a refund of amounts deferred, plus or minus any
332+17 applicable earnings, investment fees, and administrative fees.
333+18 Any refunded amount shall be included in the member's gross
334+19 income for the taxable year in which the refund is issued.
335+20 On or after January 1, 2023, the System may elect to
336+21 increase the automatic annual contributions under this
337+22 Section. The increase in the rate of contribution, however,
338+23 shall not exceed 2% of a member's pre-tax gross compensation
339+24 per year, and at no time shall any total contribution exceed
340+25 any contribution limits established by State or federal law.
341+26 (Source: P.A. 102-540, eff. 8-20-21.)
711342
712343
713-The candidate or candidates receiving the highest number
714-of votes for each class of trustee shall be elected. In the
715-case of a tie vote, the winner shall be determined in
716-accordance with procedures developed by the Department of
717-Insurance.
718-In lieu of conducting elections via mail balloting as
719-described in this Section, the board may instead adopt rules
720-to provide for elections to be carried out solely via Internet
721-balloting or phone balloting. Nothing in this Section
722-prohibits the Fund from contracting with a third party to
723-administer the election in accordance with this Section.
724-(d) At any election, voting shall be as follows:
725-(1) Each person authorized to vote for an elected
726-trustee may cast one vote for each related position for
727-which such person is entitled to vote and may cast such
728-vote for any candidate or candidates on the ballot for
729-such trustee position.
730-(2) If only one candidate for each position is
731-properly nominated in petitions received, that candidate
732-shall be deemed the winner and no election under this
733-Section shall be required.
734-(3) The results shall be entered in the minutes of the
735-first meeting of the board following the tally of votes.
736-(e) The initial election for permanent trustees shall be
737-held and the permanent board shall be seated no later than 12
738-months after the effective date of this amendatory Act of the
739344
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741-101st General Assembly. Each subsequent election shall be held
742-no later than 30 days prior to the end of the term of the
743-incumbent trustees.
744-(f) The elected trustees shall each serve for terms of 4
745-years commencing on the first business day of the first month
746-after election; except that the terms of office of the
747-initially elected trustees shall be as follows:
748-(1) One trustee elected pursuant to item (1) of
749-subsection (b) of Section 22C-115 shall serve for a term
750-of 2 years and 2 trustees elected pursuant to item (1) of
751-subsection (b) of Section 22C-115 shall serve for a term
752-of 4 years;
753-(2) One trustee elected pursuant to item (2) of
754-subsection (b) of Section 22C-115 shall serve for a term
755-of 2 years and 2 trustees elected pursuant to item (2) of
756-subsection (b) of Section 22C-115 shall serve for a term
757-of 4 years; and
758-(3) The trustee elected pursuant to item (3) of
759-subsection (b) of Section 22C-115 shall serve for a term
760-of 2 years.
761-(g) The trustees appointed pursuant to items (4) and (5)
762-of subsection (b) of Section 22C-115 shall each serve for a
763-term of 4 years commencing on the first business day of the
764-first month after the election of the elected trustees.
765-(h) A member of the board who was elected pursuant to item
766-(1) of subsection (b) of Section 22C-115 who ceases to serve as
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769-a mayor, president, chief executive officer, chief financial
770-officer, or other officer, executive, or department head of a
771-municipality or fire protection district that has a
772-participating pension fund shall not be eligible to serve as a
773-member of the board and his or her position shall be deemed
774-vacant. A member of the board who was elected by the
775-participants of participating pension funds who ceases to be a
776-participant may serve the remainder of his or her elected
777-term.
778-For a vacancy of an elected trustee occurring with an
779-unexpired term of 6 months or more, an election shall be
780-conducted for the vacancy in accordance with Section 22C-115
781-and this Section.
782-For a vacancy of an elected trustee occurring with an
783-unexpired term of less than 6 months, the vacancy shall be
784-filled by appointment by the board for the unexpired term as
785-follows: a vacancy of a member elected pursuant to item (1) of
786-subsection (b) of Section 22C-115 shall be filled by a mayor,
787-president, chief executive officer, chief financial officer,
788-or other officer, executive, or department head of a
789-municipality or fire protection district that has a
790-participating pension fund; a vacancy of a member elected
791-pursuant to item (2) of subsection (b) of Section 22C-115
792-shall be filled by a participant of a participating pension
793-fund; and a vacancy of a member elected under item (3) of
794-subsection (b) of Section 22C-115 shall be filled by a
350+SB1646 Enrolled- 11 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 11 - LRB103 27811 RPS 54189 b
351+ SB1646 Enrolled - 11 - LRB103 27811 RPS 54189 b
352+1 (40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
353+2 Sec. 24-104. State Employees Deferred Compensation Plan.
354+3 In this Section, "Plan" means the State Employees Deferred
355+4 Compensation Plan.
356+5 The Illinois State Board of Investment created under
357+6 Article 22A of this Act shall develop and establish a deferred
358+7 compensation plan for employees of the State which shall be
359+8 known as the State Employees Deferred Compensation Plan. The
360+9 Plan shall provide for the Board to review proposed investment
361+10 offerings and shall require that only investments determined
362+11 to be acceptable by the Board may be used for investing
363+12 compensation deferred.
364+13 The Plan shall include appropriate provisions pertaining
365+14 to its day to day operation providing for methods of electing
366+15 to defer income, methods of changing the amount of income to be
367+16 deferred, methods of selecting from among investment options
368+17 available under the plan and such other provisions as may be
369+18 appropriate.
370+19 In administering the Plan, the Board shall require that
371+20 the Plan recordkeeper agree that, in performing services with
372+21 respect to the Plan, the recordkeeper: (i) will not use
373+22 information received as a result of providing services with
374+23 respect to the Plan or the Plan's participants to solicit the
375+24 Plan's participants for the purpose of cross-selling non-Plan
376+25 products and services, unless in response to a request by a
795377
796378
797-beneficiary of a participating pension fund. A trustee
798-appointed to fill the vacancy of an elected trustee shall
799-serve until a successor is elected. Special elections to fill
800-the remainder of an unexpired term vacated by an elected
801-trustee shall be held concurrently with and in the same manner
802-as the next regular election for an elected trustee position.
803-Vacancies among the appointed trustees shall be filled for
804-unexpired terms by appointment in like manner as for the
805-original appointments.
806-(Source: P.A. 101-610, eff. 1-1-20.)
807-(40 ILCS 5/22C-119)
808-Sec. 22C-119. Adoption of rules. The board shall adopt
809-such rules (not inconsistent with this Code) as in its
810-judgment are desirable to implement and properly administer
811-this Article. Such rules shall specifically provide for the
812-following: (1) the implementation of the transition process
813-described in Section 22C-120; (2) the process by which the
814-participating pension funds may request transfer of funds; (3)
815-the process for the transfer in, receipt for, and investment
816-of pension assets received by the Fund after the transition
817-period from the participating pension funds; (4) the process
818-by which contributions from municipalities and fire protection
819-districts for the benefit of the participating pension funds
820-may, but are not required to, be directly transferred to the
821-Fund; and (5) compensation and benefits for its employees. A
822379
823380
824-copy of the rules adopted by the Fund shall be posted on the
825-Fund's website filed with the Secretary of State and the
826-Department of Insurance. The adoption and effectiveness of
827-such rules shall not be subject to Article 5 of the Illinois
828-Administrative Procedure Act.
829-(Source: P.A. 101-610, eff. 1-1-20.)
830-(40 ILCS 5/22C-123)
831-Sec. 22C-123. Custodian. The pension fund assets
832-transferred to or otherwise acquired by the Fund shall be
833-placed in the custody of a custodian who shall provide
834-adequate safe deposit facilities for those assets and hold all
835-such securities, funds, and other assets subject to the order
836-of the Fund.
837-Each custodian shall furnish a corporate surety bond of
838-such amount as the board designates, which bond shall
839-indemnify the Fund, the board, and the officers and employees
840-of the Fund against any loss that may result from any action or
841-failure to act by the custodian or any of the custodian's
842-agents, or provide insurance coverages of such type and limits
843-as the board designates. All charges incidental to the
844-procuring and giving of any bond shall be paid by the board and
845-each bond shall be in the custody of the board.
846-(Source: P.A. 101-610, eff. 1-1-20.)
847-Article 6.
381+
382+ SB1646 Enrolled - 11 - LRB103 27811 RPS 54189 b
848383
849384
850-Section 6-5. The Illinois Pension Code is amended by
851-changing Section 8-165 as follows:
852-(40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
853-Sec. 8-165. Re-entry into service.
854-(a) Except as provided in subsection (c) or (d), when an
855-employee receiving age and service or prior service annuity
856-who has withdrawn from service after the effective date
857-re-enters service before age 65, any annuity previously
858-granted and any annuity fixed for his wife shall be cancelled.
859-The employee shall be credited for annuity purposes with sums
860-sufficient to provide annuities equal to those cancelled, as
861-of their ages on the date of re-entry; provided, the maximum
862-age of the wife for this purpose shall be as provided in
863-Section 8-155 of this Article.
864-The sums so credited shall provide for annuities to be
865-fixed and granted in the future. Contributions by the
866-employees and the city for the purposes of this Article shall
867-be made, and when the proper time arrives, as provided in this
868-Article, new annuities based upon the total credit for annuity
869-purposes and the entire term of his service shall be fixed for
870-the employee and his wife.
871-If the employee's wife died before he re-entered service,
872-no part of any credits for widow's or widow's prior service
873-annuity at the time annuity for his wife was fixed shall be
385+SB1646 Enrolled- 12 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 12 - LRB103 27811 RPS 54189 b
386+ SB1646 Enrolled - 12 - LRB103 27811 RPS 54189 b
387+1 Plan participant; and (ii) will not promote, recommend,
388+2 endorse, or solicit Plan participants to purchase any
389+3 financial products or services outside of the Plan, except
390+4 that links to parts of the recordkeeper's website that are
391+5 generally available to the public, are about commercial
392+6 products, and may be encountered by a Plan participant in the
393+7 regular course of navigating the recordkeeper's website will
394+8 not constitute a violation of this item (ii).
395+9 The Plan shall provide for the preparation, and
396+10 distribution from time to time to all eligible State
397+11 employees, of pamphlets describing the Plan and outlining the
398+12 options and opportunities available to State employees under
399+13 the Plan.
400+14 The Plan established under this Section shall not be
401+15 implemented or amended until the Board is satisfied that
402+16 compensation deferred under the Plan is not subject to income
403+17 tax for the year in which it is earned and that the taxation of
404+18 such compensation will be deferred until the time of its
405+19 distribution to the employee.
406+20 The Board shall also review and oversee the administration
407+21 of the Plan.
408+22 (Source: P.A. 81-671.)
409+23 (40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
410+24 Sec. 24-107. Local government plans.
411+25 (a) Any unit of local government or school district may
874412
875413
876-credited upon re-entry into service, and no such sums shall
877-thereafter be used to provide such annuity.
878-(b) Except as provided in subsection (c) or (d), when an
879-employee re-enters service after age 65, payments on account
880-of any annuity previously granted shall be suspended during
881-the time thereafter that he is in service, and when he again
882-withdraws, annuity payments shall be resumed. If the employee
883-dies in service, his widow shall receive the amount of annuity
884-previously fixed for her.
885-(c) For school years beginning on or after July 1, 2021, an
886-age and service or prior service annuity shall not be
887-cancelled in the case of an employee who is re-employed by the
888-Board of Education of the city as a Special Education
889-Classroom Assistant or Classroom Assistant on a temporary and
890-non-annual basis or on an hourly basis so long as the person:
891-(1) does not work for compensation on more than 120 days in a
892-school year; or (2) does not accept gross compensation for the
893-re-employment in a school year in excess of $30,000. These
894-limitations apply only to school years that begin on or after
895-July 1, 2021. Re-employment under this subsection does not
896-require contributions, result in service credit being earned
897-or granted, or constitute active participation in the Fund.
898-(d) For school years beginning on or after July 1, 2023, an
899-age and service or prior service annuity shall not be
900-cancelled in the case of an employee who is re-employed by the
901-Board of Education of the city as a paraprofessional or
902414
903415
904-related service provider on a temporary and non-annual basis
905-or on an hourly basis so long as the person: (1) does not work
906-for compensation on more than 120 days in a school year; or (2)
907-does not accept gross compensation for the re-employment in a
908-school year in excess of $30,000. These limitations apply only
909-to school years that begin on or after July 1, 2023.
910-Re-employment under this subsection does not require
911-contributions, result in service credit being earned or
912-granted, or constitute active participation in the Fund.
913-(Source: P.A. 102-342, eff. 8-13-21.)
914-Article 7.
915-Section 7-5. The School Code is amended by changing
916-Section 24-6.3 as follows:
917-(105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
918-Sec. 24-6.3. Retirement trustee leave.
919-(a) Each school board employing a teacher who is an
920-elected trustee of the Teachers' Retirement System of the
921-State of Illinois shall make available to the elected trustee
922-at least 20 days of paid leave of absence per year for the
923-purpose of attending meetings of the System's Board of
924-Trustees, committee meetings of such Board, and seminars
925-regarding issues for which such Board is responsible. The
926-Teachers' Retirement System of the State of Illinois shall
416+
417+ SB1646 Enrolled - 12 - LRB103 27811 RPS 54189 b
927418
928419
929-reimburse affected school districts for the actual cost of
930-hiring a substitute teacher during such leaves of absence.
931-(b) Each school board employing an employee who is an
932-elected trustee of the Illinois Municipal Retirement Fund
933-shall make available to the elected trustee at least 20 days of
934-paid leave of absence per year for the purpose of attending
935-meetings of the Fund's Board of Trustees, committee meetings
936-of the Board of Trustees, and seminars regarding issues for
937-which the Board of Trustees is responsible. The Illinois
938-Municipal Retirement Fund may reimburse affected school
939-districts for the actual cost of hiring a substitute employee
940-during such leaves of absence.
941-(c) The school board established under Article 34 and
942-employers under Article 17 of the Illinois Pension Code shall
943-make available to each active teacher who is an elected
944-trustee of the Board of Trustees of the Public School
945-Teachers' Pension and Retirement Fund of Chicago established
946-under Article 17 of the Illinois Pension Code up to 22 days of
947-paid leave of absence per year for the purpose of attending
948-meetings of the Board of Trustees, committee meetings of the
949-Board of Trustees, and seminars regarding issues for which the
950-Board of Trustees is responsible. The allocation of the days
951-of paid leave shall be at the discretion of the Board of
952-Trustees of the Public School Teachers' Pension and Retirement
953-Fund of Chicago.
954-(Source: P.A. 96-357, eff. 8-13-09.)
420+SB1646 Enrolled- 13 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 13 - LRB103 27811 RPS 54189 b
421+ SB1646 Enrolled - 13 - LRB103 27811 RPS 54189 b
422+1 establish for its employees a deferred compensation plan
423+2 program. Participation shall be by written agreement between
424+3 each employee and the legislative authority of the unit of
425+4 local government or school district providing for the deferral
426+5 of such compensation and the subsequent investment and
427+6 administration of such funds.
428+7 (b) Any unit of local government may establish an
429+8 employer-funded money purchase retirement plan for those of
430+9 its full time employees who are not eligible to participate in
431+10 any pension fund or retirement system established under
432+11 Articles 2 through 18 of this Code. Contributions to the plan
433+12 shall be made by the unit of local government only from general
434+13 purpose funds not derived from real property taxes imposed by
435+14 the unit, at a rate to be determined from time to time by the
436+15 unit of local government. However, the rate of employer
437+16 contribution shall be (i) the same for all employees
438+17 participating in the plan, and (ii) not more than 10% of the
439+18 employee's salary.
440+19 Any benefits accruing to the participants in a retirement
441+20 plan established under this subsection shall be protected from
442+21 impairment in accordance with Article XIII, Section 5 of the
443+22 Illinois Constitution. However, the unit of local government
444+23 establishing such a plan may terminate it at any time, unless
445+24 it has otherwise contractually agreed with its participating
446+25 employees.
447+26 (c) The agency or department designated by the unit of
955448
956449
957-Article 8.
958-Section 8-5. The Illinois Pension Code is amended by
959-changing Section 16-155 as follows:
960-(40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
961-Sec. 16-155. Report to system and payment of deductions.
962-(a) The employer governing body of each school district
963-shall submit to the System all required reports and make two
964-deposits each month. The deposit for member contributions for
965-salary paid during any between the first and the fifteenth of
966-the month is due by the 10th 25th of the following month.
967-Additionally, all The deposit of member contributions for
968-salary paid between the sixteenth and last day of the month is
969-due by the 10th of the following month. All required
970-contributions for salary earned during a school term are due
971-by July 10 next following the close of such school term.
972-The governing body of each State institution coming under
973-this retirement system, the State Comptroller or other State
974-officer certifying payroll vouchers including payments of
975-salary or wages to teachers, and any other employer of
976-teachers, shall, monthly, forward to the secretary of the
977-retirement system the member contributions required under this
978-Article.
979-Each employer specified above shall, prior to August 15 of
980450
981451
982-each year, forward to the System a detailed statement,
983-verified in all cases of school districts by the secretary or
984-clerk of the district, of the amounts so contributed since the
985-period covered by the last previous annual statement, together
986-with required contributions not yet forwarded, such payments
987-being payable to the System.
988-The board may prescribe rules governing the form, content,
989-investigation, control, and supervision of such statements and
990-may establish additional interim employer reporting
991-requirements as the Board deems necessary. If no teacher in a
992-school district comes under the provisions of this Article,
993-the governing body of the district shall so state under the
994-oath of its secretary to this system, and shall at the same
995-time forward a copy of the statement to the regional
996-superintendent of schools.
997-The board may also require reporting requirements that are
998-different than those prescribed in this Section and may
999-require different reporting requirements for different
1000-benefits or purposes established under this Article,
1001-including, but not limited to, any optional benefit plan an
1002-employee chooses to participate in.
1003-(b) If the governing body of an employer that is not a
1004-State agency fails to forward such required contributions
1005-within the time permitted in subsection (a) above, the System
1006-shall notify the employer of an additional amount due, equal
1007-to $50 per day for each day that elapses from the due date
452+
453+ SB1646 Enrolled - 13 - LRB103 27811 RPS 54189 b
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1009455
1010-until the day such report and employee contributions are
1011-received by the System.
1012-(c) If the system, on August 15, is not in receipt of the
1013-detailed statements required under this Section of any school
1014-district or other employing unit, such school district or
1015-other employing unit shall pay to the system an amount equal to
1016-$250 for each day that elapses from August 15, until the day
1017-such statement is filed with the system.
1018-(Source: P.A. 101-502, eff. 8-23-19.)
1019-Article 9.
1020-Section 9-5. The Illinois Pension Code is amended by
1021-changing Sections 9-108.3 and 9-161 as follows:
1022-(40 ILCS 5/9-108.3)
1023-Sec. 9-108.3. In service. "In service": Any period during
1024-which contributions are being made to the Fund on behalf of an
1025-employee except for temporary election work as described in
1026-subsection (c) of Section 9-161.
1027-(Source: P.A. 99-578, eff. 7-15-16.)
1028-(40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
1029-Sec. 9-161. Re-entry into service. (a) When an employee
1030-who has withdrawn from service after the effective date
1031-re-enters service before age 65, any annuity previously
456+SB1646 Enrolled- 14 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 14 - LRB103 27811 RPS 54189 b
457+ SB1646 Enrolled - 14 - LRB103 27811 RPS 54189 b
458+1 local government or school district to establish and
459+2 administer a plan or program authorized under subsection (a)
460+3 or (b) of this Section may invest the assets of the plan in
461+4 investments deemed appropriate by the agency or department,
462+5 including but not limited to life insurance or annuity
463+6 contracts, and share or share certificate accounts of State or
464+7 federal credit unions, the accounts of which are insured as
465+8 required by the Illinois Credit Union Act or the Federal
466+9 Credit Union Act, whichever is applicable. The payment of
467+10 employer contributions to a retirement plan established under
468+11 subsection (b), and investment and payment to a participant of
469+12 deferred compensation and income or gain thereon, if any,
470+13 shall not be construed to be prohibited uses of the general
471+14 assets of the unit of local government or school district.
472+15 This Section does not limit the power or authority of any
473+16 unit of local government, school district or any institution
474+17 supported in whole or in part by public funds to establish and
475+18 administer any other deferred compensation plans that may be
476+19 authorized by law and deemed appropriate by the officials of
477+20 such subdivisions or institutions.
478+21 (d) In administering the deferred compensation plans
479+22 authorized under this Section, the governing board or
480+23 administrators of the sponsoring unit of local government or
481+24 school district shall require that the deferred compensation
482+25 plan recordkeeper agree that, in performing services with
483+26 respect to the deferred compensation plan, the recordkeeper:
1032484
1033485
1034-granted and any annuity fixed for his wife shall be cancelled.
1035-The employee shall be credited for annuity purposes with the
1036-actuarial value of annuities equal to those cancelled as of
1037-their ages on the date of re-entry; provided, the maximum age
1038-of the wife for this purpose shall be as provided in Section
1039-9-151 of this Article. The sums so credited shall provide for
1040-annuities to be fixed and granted in the future. Contributions
1041-by the employee and the county for the purposes of this Article
1042-shall be made and when the proper time arrives, as provided in
1043-this Article, new annuities based upon the total sums
1044-accumulated to his credit for annuity purposes and the entire
1045-term of his service shall be fixed for the employee and his
1046-wife.
1047-If the employee's wife has died before he re-entered
1048-service, no part of any credits for widow's or widow's prior
1049-service annuity at the time annuity for his wife was fixed
1050-shall be credited upon re-entry into service, and no such sums
1051-shall thereafter be used to provide such annuity.
1052-(b) When an employee re-enters service after age 65,
1053-payments on account of any annuity previously granted shall be
1054-suspended during the time thereafter that he is in service,
1055-and when he again withdraws annuity payments shall be resumed.
1056-If the employee dies in service, his widow shall receive the
1057-annuity previously fixed for her.
1058-(c) If an employee annuitant re-enters service as an
1059-election worker and provides services for a scheduled federal,
1060486
1061487
1062-State, or local election for a period of 60 days or less during
1063-a calendar year, that employee annuitant's annuity shall not
1064-be suspended and such employee annuitant shall not be
1065-considered to be in service within the meaning of Section
1066-9-108.3 and is not entitled to benefits for employees in
1067-service. If an employee annuitant re-enters service for a
1068-period longer than 60 days during a calendar year, the annuity
1069-shall be suspended or cancelled retroactive to the initial
1070-date of re-entry.
1071-(Source: P.A. 81-1536.)
1072-Article 10.
1073-Section 10-5. The Illinois Pension Code is amended by
1074-changing Section 17-133 as follows:
1075-(40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
1076-Sec. 17-133. Contributions for periods of outside and
1077-other service. Regularly certified and appointed teachers who
1078-desire to have the following described services credited for
1079-pension purposes shall submit to the Board evidence thereof
1080-and pay into the Fund the amounts prescribed herein:
1081-1. For teaching service by a certified teacher in the
1082-public schools of the several states or in schools
1083-operated by or under the auspices of the United States, a
1084-teacher shall pay the contributions at the rates in force
488+
489+ SB1646 Enrolled - 14 - LRB103 27811 RPS 54189 b
1085490
1086491
1087-(a) on the date of appointment as a regularly certified
1088-teacher after salary adjustments are completed, or (b) at
1089-the time of reappointment after salary adjustments are
1090-completed, whichever is later, but not less than $450 per
1091-year of service. Upon the Board's approval of such service
1092-and the payment of the required contributions, service
1093-credit of not more than 10 years shall be granted.
1094-2. For service as a playground instructor in public
1095-school playgrounds, teachers shall pay the contributions
1096-prescribed in this Article (a) at the time of appointment,
1097-as a regularly certified teacher after salary adjustments
1098-are completed, or (b) on return to service as a full time
1099-regularly certified teacher, as the case may be, provided
1100-such rates or amounts shall not be less than $450 per year.
1101-3. For service prior to September 1, 1955, in the
1102-public schools of the City as a substitute, evening school
1103-or temporary teacher, or for service as an Americanization
1104-teacher prior to December 31, 1955, teachers shall pay the
1105-contributions prescribed in this Article (a) at the time
1106-of appointment, as a regularly certified teacher after
1107-salary adjustments are completed, (b) on return to service
1108-as a full time regularly certified teacher, as the case
1109-may be, provided such rates or amounts shall not be less
1110-than $450 per year; and provided further that for teachers
1111-employed on or after September 1, 1953, rates shall not
1112-include contributions for widows' pensions if the service
492+SB1646 Enrolled- 15 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 15 - LRB103 27811 RPS 54189 b
493+ SB1646 Enrolled - 15 - LRB103 27811 RPS 54189 b
494+1 (i) will not use information received as a result of providing
495+2 services with respect to the deferred compensation plan or the
496+3 deferred compensation plan's participants to solicit the
497+4 participants in the deferred compensation plan for the purpose
498+5 of cross-selling nonplan products and services, unless in
499+6 response to a request by a participant in the deferred
500+7 compensation plan; and (ii) will not promote, recommend,
501+8 endorse, or solicit participants in the deferred compensation
502+9 plan to purchase any financial products or services outside of
503+10 the deferred compensation plan, except that links to parts of
504+11 the recordkeeper's website that are generally available to the
505+12 public, are about commercial products, and may be encountered
506+13 by a Plan participant in the regular course of navigating the
507+14 recordkeeper's website will not constitute a violation of this
508+15 item (ii).
509+16 (Source: P.A. 87-794.)
510+17 Section 2-10. The University Employees Custodial Accounts
511+18 Act is amended by changing Section 2 as follows:
512+19 (110 ILCS 95/2) (from Ch. 144, par. 1702)
513+20 Sec. 2. The governing board of any public institution of
514+21 higher education has the power to establish a defined
515+22 contribution plan to make payments to custodial accounts for
516+23 investment in regulated investment company stock to provide
517+24 retirement benefits as described in Section 403(b)(7) of the
1113518
1114519
1115-described in this sub-paragraph 3 was rendered before that
1116-date. Any teacher entitled to repay a refund of
1117-contributions under Section 17-126 may validate service
1118-described in this paragraph by payment of the amounts
1119-prescribed herein, together with the repayment of the
1120-refund, provided that if such creditable service was the
1121-last service rendered in the public schools of the City
1122-and is not automatically reinstated by repayment of the
1123-refund, the rates or amounts shall not be less than $450
1124-per year.
1125-4. For service after June 30, 1982 as a member of the
1126-Board of Education, if required to resign from an
1127-administrative or teaching position in order to qualify as
1128-a member of the Board of Education.
1129-5. For service during the 1986-87 school year as a
1130-teacher on a special leave of absence with full loss of
1131-salary, teaching for an agency under contract to the Board
1132-of Education, if the teacher returned to employment in
1133-September, 1987. For service under this item 5, the
1134-teacher must pay the contributions at the rates in force
1135-at the completion of the leave period.
1136-6. For up to 2 years of service as a teacher or
1137-administrator employed by a private school registered with
1138-or recognized by the Illinois State Board of Education,
1139-provided that the teacher (i) was certified under the law
1140-governing the certification of teachers at the time the
1141520
1142521
1143-service was rendered, (ii) applies in writing no later
1144-than 2 years after the effective date of this amendatory
1145-Act of the 102nd General Assembly, (iii) supplies
1146-satisfactory evidence of the employment, (iv) completes at
1147-least 10 years of contributing service as a teacher as
1148-defined in Section 17-106, (v) pays the contribution
1149-required in this Section, and (vi) does not receive credit
1150-for that service under any other provision of this Code.
1151-The member may apply for credit under this subsection and
1152-pay the required contribution before completing the 10
1153-years of contributing service required under item (iv),
1154-but the credit may not be used until the item (iv)
1155-contributing service requirement has been met.
1156-For each year of service credit to be established
1157-under this subparagraph 6, a member is required to
1158-contribute to the System (i) the employee and employer
1159-contribution that would have been required had such
1160-service been rendered as a member based on the annual
1161-salary rate during the first year of full-time employment
1162-as a teacher under this Article following the private
1163-school service, plus (ii) interest thereon at the
1164-actuarially assumed rate from the date of first full-time
1165-employment as a teacher under this Article following the
1166-private school service to the date of payment, compounded
1167-annually, at a rate determined by the Board.
1168-For service described in sub-paragraphs 1, 2 and 3 of this
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1169524
1170525
1171-Section, interest shall be charged beginning one year after
1172-the effective date of appointment or reappointment.
1173-Effective September 1, 1974, the interest rate to be
1174-charged by the Fund on contributions provided in
1175-sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
1176-annually.
1177-(Source: P.A. 102-822, eff. 5-13-22.)
1178-Article 99.
1179-Section 99-90. The State Mandates Act is amended by adding
1180-Section 8.47 as follows:
1181-(30 ILCS 805/8.47 new)
1182-Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
1183-8 of this Act, no reimbursement by the State is required for
1184-the implementation of any mandate created by this amendatory
1185-Act of the 103rd General Assembly.
1186-Section 99-99. Effective date. This Act takes effect upon
1187-becoming law.
526+SB1646 Enrolled- 16 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 16 - LRB103 27811 RPS 54189 b
527+ SB1646 Enrolled - 16 - LRB103 27811 RPS 54189 b
528+1 Internal Revenue Code for eligible employees of such
529+2 institutions. Such payments shall be made with funds made
530+3 available by deductions from or reductions in salary or wages
531+4 of eligible employees who authorize in writing deductions or
532+5 reductions for such purpose. Such stock shall be purchased
533+6 only from persons authorized to sell such stock in this State.
534+7 In administering the defined contribution plan, the
535+8 governing board of any public institution of higher education
536+9 shall require that the defined contribution plan recordkeeper
537+10 agree that, in performing services with respect to the defined
538+11 contribution plan, the recordkeeper: (i) will not use
539+12 information received as a result of providing services with
540+13 respect to the defined contribution plan or the participants
541+14 in the defined contribution plan to solicit the participants
542+15 in the defined contribution plan for the purpose of
543+16 cross-selling nonplan products and services, unless in
544+17 response to a request by a participant in the defined
545+18 contribution plan; and (ii) will not promote, recommend,
546+19 endorse, or solicit participants in the defined contribution
547+20 plan to purchase any financial products or services outside of
548+21 the defined contribution plan, except that links to parts of
549+22 the recordkeeper's website that are generally available to the
550+23 public, are about commercial products, and may be encountered
551+24 by a participant in the regular course of navigating the
552+25 recordkeeper's website will not constitute a violation of this
553+26 item (ii). However, a public institution of higher education
554+
555+
556+
557+
558+
559+ SB1646 Enrolled - 16 - LRB103 27811 RPS 54189 b
560+
561+
562+SB1646 Enrolled- 17 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 17 - LRB103 27811 RPS 54189 b
563+ SB1646 Enrolled - 17 - LRB103 27811 RPS 54189 b
564+1 may allow promotion of limited services if the public
565+2 institution of higher education receives no compensation from
566+3 the recordkeeper for promoting or providing such services.
567+4 Such limited services may include educational, counseling,
568+5 debt reduction, student loan repayment or forgiveness, or
569+6 other services intended to enhance retirement savings
570+7 opportunities. Such limited services may not include credit
571+8 cards, life insurance, or banking products.
572+9 (Source: P.A. 83-261.)
573+10 Article 3.
574+11 Section 3-5. The Illinois Pension Code is amended by
575+12 changing Section 1-167 as follows:
576+13 (40 ILCS 5/1-167)
577+14 Sec. 1-167. Prohibited disclosures. No pension fund or
578+15 retirement system subject to this Code shall disclose the
579+16 following information of any members or participants of any
580+17 pension fund or retirement system: (1) the individual's home
581+18 address (including ZIP code and county); (2) the individual's
582+19 date of birth; (3) the individual's home and personal phone
583+20 number; (4) the individual's personal email address; (5)
584+21 personally identifying member or participant deduction
585+22 information; or (6) any membership status in a labor
586+23 organization or other voluntary association affiliated with a
587+
588+
589+
590+
591+
592+ SB1646 Enrolled - 17 - LRB103 27811 RPS 54189 b
593+
594+
595+SB1646 Enrolled- 18 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 18 - LRB103 27811 RPS 54189 b
596+ SB1646 Enrolled - 18 - LRB103 27811 RPS 54189 b
597+1 labor organization or labor federation (including whether
598+2 participants are members of such organization, the identity of
599+3 such organization, whether or not participants pay or
600+4 authorize the payment of any dues or moneys to such
601+5 organization, and the amounts of such dues or moneys).
602+6 This Section does not apply to disclosures (i) required
603+7 under the Freedom of Information Act, (ii) for purposes of
604+8 conducting public operations or business, or (iii) to a labor
605+9 organization or other voluntary association affiliated with a
606+10 labor organization or labor federation or to the Municipal
607+11 Employees Society of Chicago.
608+12 (Source: P.A. 101-620, eff. 12-20-19.)
609+13 Article 4.
610+14 Section 4-5. The Illinois Pension Code is amended by
611+15 changing Section 24-105.2 as follows:
612+16 (40 ILCS 5/24-105.2)
613+17 Sec. 24-105.2. Automatic enrollment for certain employees.
614+18 The Department of Central Management Services shall
615+19 automatically enroll in the State Employees Deferred
616+20 Compensation Plan any employee who, on or after July 1, 2020,
617+21 becomes an active member or participant of a retirement system
618+22 created under Article 2, 14, or 18. Any agency with employees
619+23 subject to automatic enrollment must systematically provide
620+
621+
622+
623+
624+
625+ SB1646 Enrolled - 18 - LRB103 27811 RPS 54189 b
626+
627+
628+SB1646 Enrolled- 19 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 19 - LRB103 27811 RPS 54189 b
629+ SB1646 Enrolled - 19 - LRB103 27811 RPS 54189 b
630+1 the employee data necessary for enrollment to the Department
631+2 of Central Management Services or its designee. An employee
632+3 automatically enrolled under this Section shall have 3% of his
633+4 or her pre-tax gross compensation for each compensation period
634+5 deferred into his or her deferred compensation account. The
635+6 Board may increase the default percentage amount of
636+7 compensation deferred into employee accounts.
637+8 An employee hired on or after January 1, 2024 shall be
638+9 automatically enrolled in the Plan beginning the first day of
639+10 the pay period following the close of the notice period,
640+11 unless the employee elects otherwise within the notice period.
641+12 During the notice period, an employee may elect to not
642+13 participate in the Plan or to increase or reduce the amount of
643+14 pre-tax gross compensation deferred. For the purposes of this
644+15 Section, "notice period" means a reasonable period of time
645+16 after the employee is provided with an automatic enrollment
646+17 notice as required under Section 414(w) of the Internal
647+18 Revenue Code of 1986, as amended. An employee who has been
648+19 automatically enrolled in the Plan may elect, within 90 days
649+20 after enrollment, to withdraw from the Plan and receive a
650+21 refund of amounts deferred, plus or minus any applicable
651+22 earnings, investment fees, and administrative fees. An
652+23 employee making such an election shall forfeit all employer
653+24 matching contributions, if any, made prior to the election.
654+25 Any refunded amount shall be included in the employee's gross
655+26 income for the taxable year in which the refund is issued.
656+
657+
658+
659+
660+
661+ SB1646 Enrolled - 19 - LRB103 27811 RPS 54189 b
662+
663+
664+SB1646 Enrolled- 20 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 20 - LRB103 27811 RPS 54189 b
665+ SB1646 Enrolled - 20 - LRB103 27811 RPS 54189 b
666+1 An employee hired on or after July 1, 2020 and before
667+2 January 1, 2024 shall have 30 days from the start date of
668+3 employment to elect to not participate in the deferred
669+4 compensation plan or to elect to increase or reduce the amount
670+5 of pre-tax gross compensation deferred. An employee shall be
671+6 automatically enrolled in the Plan beginning the first day of
672+7 the pay period following the employee's thirtieth day of
673+8 employment. An employee who has been automatically enrolled in
674+9 the Plan may elect, within 90 days of enrollment, to withdraw
675+10 from the Plan and receive a refund of amounts deferred, plus or
676+11 minus any applicable earnings, investment fees, and
677+12 administrative fees. An employee making such an election shall
678+13 forfeit all employer matching contributions, if any, made
679+14 prior to the election. Any refunded amount shall be included
680+15 in the employee's gross income for the taxable year in which
681+16 the refund is issued.
682+17 As soon as practicable, the Board shall establish annual,
683+18 automatic increases to employee contribution rates for
684+19 employees who are automatically enrolled in the Plan pursuant
685+20 to this Section. The amount of automatic annual increases in
686+21 any 12-month period shall not exceed 1% of compensation.
687+22 Employees may elect to not receive automatic annual increases
688+23 in a manner described by the Board.
689+24 (Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
690+25 Article 5.
691+
692+
693+
694+
695+
696+ SB1646 Enrolled - 20 - LRB103 27811 RPS 54189 b
697+
698+
699+SB1646 Enrolled- 21 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 21 - LRB103 27811 RPS 54189 b
700+ SB1646 Enrolled - 21 - LRB103 27811 RPS 54189 b
701+1 Section 5-5. The Illinois Pension Code is amended by
702+2 changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
703+3 follows:
704+4 (40 ILCS 5/22C-115)
705+5 Sec. 22C-115. Board of Trustees of the Fund.
706+6 (a) No later than February 1, 2020 (one month after the
707+7 effective date of Public Act 101-610) or as soon thereafter as
708+8 may be practicable, the Governor shall appoint, by and with
709+9 the advice and consent of the Senate, a transition board of
710+10 trustees consisting of 9 members as follows:
711+11 (1) three members representing municipalities and fire
712+12 protection districts who are mayors, presidents, chief
713+13 executive officers, chief financial officers, or other
714+14 officers, executives, or department heads of
715+15 municipalities or fire protection districts and appointed
716+16 from among candidates recommended by the Illinois
717+17 Municipal League;
718+18 (2) three members representing participants who are
719+19 participants and appointed from among candidates
720+20 recommended by the statewide labor organization
721+21 representing firefighters employed by at least 85
722+22 municipalities that is affiliated with the Illinois State
723+23 Federation of Labor;
724+24 (3) one member representing beneficiaries who is a
725+
726+
727+
728+
729+
730+ SB1646 Enrolled - 21 - LRB103 27811 RPS 54189 b
731+
732+
733+SB1646 Enrolled- 22 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 22 - LRB103 27811 RPS 54189 b
734+ SB1646 Enrolled - 22 - LRB103 27811 RPS 54189 b
735+1 beneficiary and appointed from among the candidate or
736+2 candidates recommended by the statewide labor organization
737+3 representing firefighters employed by at least 85
738+4 municipalities that is affiliated with the Illinois State
739+5 Federation of Labor;
740+6 (4) one member recommended by the Illinois Municipal
741+7 League; and
742+8 (5) one member who is a participant recommended by the
743+9 statewide labor organization representing firefighters
744+10 employed by at least 85 municipalities and that is
745+11 affiliated with the Illinois State Federation of Labor.
746+12 The transition board members shall serve until the initial
747+13 permanent board members are elected and qualified.
748+14 The transition board of trustees shall select the
749+15 chairperson of the transition board of trustees from among the
750+16 trustees for the duration of the transition board's tenure.
751+17 (b) The permanent board of trustees shall consist of 9
752+18 members comprised as follows:
753+19 (1) Three members who are mayors, presidents, chief
754+20 executive officers, chief financial officers, or other
755+21 officers, executives, or department heads of
756+22 municipalities or fire protection districts that have
757+23 participating pension funds and are elected by the mayors
758+24 and presidents of municipalities or fire protection
759+25 districts that have participating pension funds.
760+26 (2) Three members who are participants of
761+
762+
763+
764+
765+
766+ SB1646 Enrolled - 22 - LRB103 27811 RPS 54189 b
767+
768+
769+SB1646 Enrolled- 23 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 23 - LRB103 27811 RPS 54189 b
770+ SB1646 Enrolled - 23 - LRB103 27811 RPS 54189 b
771+1 participating pension funds and elected by the
772+2 participants of participating pension funds.
773+3 (3) One member who is a beneficiary of a participating
774+4 pension fund and is elected by the beneficiaries of
775+5 participating pension funds.
776+6 (4) One member recommended by the Illinois Municipal
777+7 League who shall be appointed by the Governor with the
778+8 advice and consent of the Senate.
779+9 (5) One member recommended by the statewide labor
780+10 organization representing firefighters employed by at
781+11 least 85 municipalities and that is affiliated with the
782+12 Illinois State Federation of Labor who shall be appointed
783+13 by the Governor with the advice and consent of the Senate.
784+14 The permanent board of trustees shall select the
785+15 chairperson of the permanent board of trustees from among the
786+16 trustees for a term of 2 years. The holder of the office of
787+17 chairperson shall alternate between a person elected or
788+18 appointed under item (1) or (4) of this subsection (b) and a
789+19 person elected or appointed under item (2), (3), or (5) of this
790+20 subsection (b).
791+21 (c) Each trustee shall qualify by taking an oath of office
792+22 before the Secretary of State or the Board's appointed legal
793+23 counsel stating that he or she will diligently and honestly
794+24 administer the affairs of the board and will not violate or
795+25 knowingly permit the violation of any provision of this
796+26 Article.
797+
798+
799+
800+
801+
802+ SB1646 Enrolled - 23 - LRB103 27811 RPS 54189 b
803+
804+
805+SB1646 Enrolled- 24 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 24 - LRB103 27811 RPS 54189 b
806+ SB1646 Enrolled - 24 - LRB103 27811 RPS 54189 b
807+1 (d) Trustees shall receive no salary for service on the
808+2 board but shall be reimbursed for travel expenses incurred
809+3 while on business for the board according to the standards in
810+4 effect for members of the Commission on Government Forecasting
811+5 and Accountability.
812+6 A municipality or fire protection district employing a
813+7 firefighter who is an elected or appointed trustee of the
814+8 board must allow reasonable time off with compensation for the
815+9 firefighter to conduct official business related to his or her
816+10 position on the board, including time for travel. The board
817+11 shall notify the municipality or fire protection district in
818+12 advance of the dates, times, and locations of this official
819+13 business. The Fund shall timely reimburse the municipality or
820+14 fire protection district for the reasonable costs incurred
821+15 that are due to the firefighter's absence.
822+16 (e) No trustee shall have any interest in any brokerage
823+17 fee, commission, or other profit or gain arising out of any
824+18 investment directed by the board. This subsection does not
825+19 preclude ownership by any member of any minority interest in
826+20 any common stock or any corporate obligation in which an
827+21 investment is directed by the board.
828+22 (f) Notwithstanding any provision or interpretation of law
829+23 to the contrary, any member of the transition board may also be
830+24 elected or appointed as a member of the permanent board.
831+25 Notwithstanding any provision or interpretation of law to
832+26 the contrary, any trustee of a fund established under Article
833+
834+
835+
836+
837+
838+ SB1646 Enrolled - 24 - LRB103 27811 RPS 54189 b
839+
840+
841+SB1646 Enrolled- 25 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 25 - LRB103 27811 RPS 54189 b
842+ SB1646 Enrolled - 25 - LRB103 27811 RPS 54189 b
843+1 4 of this Code may also be appointed as a member of the
844+2 transition board or elected or appointed as a member of the
845+3 permanent board.
846+4 The restriction in Section 3.1 of the Lobbyist
847+5 Registration Act shall not apply to a member of the transition
848+6 board appointed pursuant to items (4) or (5) of subsection (a)
849+7 or to a member of the permanent board appointed pursuant to
850+8 items (4) or (5) of subsection (b).
851+9 (Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
852+10 (40 ILCS 5/22C-116)
853+11 Sec. 22C-116. Conduct and administration of elections;
854+12 terms of office.
855+13 (a) For the election of the permanent trustees, the
856+14 transition board shall administer the initial elections and
857+15 the permanent board shall administer all subsequent elections.
858+16 Each board shall develop and implement such procedures as it
859+17 determines to be appropriate for the conduct of such
860+18 elections. For the purposes of obtaining information necessary
861+19 to conduct elections under this Section, participating pension
862+20 funds shall cooperate with the Fund.
863+21 (b) All nominations for election shall be by petition.
864+22 Each petition for a trustee shall be executed as follows:
865+23 (1) for trustees to be elected by the mayors and
866+24 presidents of municipalities or fire protection districts
867+25 that have participating pension funds, by at least 20 such
868+
869+
870+
871+
872+
873+ SB1646 Enrolled - 25 - LRB103 27811 RPS 54189 b
874+
875+
876+SB1646 Enrolled- 26 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 26 - LRB103 27811 RPS 54189 b
877+ SB1646 Enrolled - 26 - LRB103 27811 RPS 54189 b
878+1 mayors and presidents; except that this item (1) shall
879+2 apply only with respect to participating pension funds;
880+3 (2) for trustees to be elected by participants, by at
881+4 least 400 participants; and
882+5 (3) for trustees to be elected by beneficiaries, by at
883+6 least 100 beneficiaries.
884+7 (c) A separate ballot shall be used for each class of
885+8 trustee. The board shall prepare and send ballots and ballot
886+9 envelopes to the participants and beneficiaries eligible
887+10 voters to vote in accordance with rules adopted by the board.
888+11 The ballots shall contain the names of all candidates in
889+12 alphabetical order. The ballot envelope shall have on the
890+13 outside a form of certificate stating that the person voting
891+14 the ballot is a participant or beneficiary entitled to vote.
892+15 Eligible voters Participants and beneficiaries, upon
893+16 receipt of the ballot, shall vote the ballot and place it in
894+17 the ballot envelope, seal the envelope, execute the
895+18 certificate thereon, and return the ballot to the Fund.
896+19 The board shall set a final date for ballot return, and
897+20 ballots received prior to that date in a ballot envelope with a
898+21 properly executed certificate and properly voted shall be
899+22 valid ballots.
900+23 The board shall set a day for counting the ballots and name
901+24 judges and clerks of election to conduct the count of ballots
902+25 and shall make any rules necessary for the conduct of the
903+26 count.
904+
905+
906+
907+
908+
909+ SB1646 Enrolled - 26 - LRB103 27811 RPS 54189 b
910+
911+
912+SB1646 Enrolled- 27 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 27 - LRB103 27811 RPS 54189 b
913+ SB1646 Enrolled - 27 - LRB103 27811 RPS 54189 b
914+1 The candidate or candidates receiving the highest number
915+2 of votes for each class of trustee shall be elected. In the
916+3 case of a tie vote, the winner shall be determined in
917+4 accordance with procedures developed by the Department of
918+5 Insurance.
919+6 In lieu of conducting elections via mail balloting as
920+7 described in this Section, the board may instead adopt rules
921+8 to provide for elections to be carried out solely via Internet
922+9 balloting or phone balloting. Nothing in this Section
923+10 prohibits the Fund from contracting with a third party to
924+11 administer the election in accordance with this Section.
925+12 (d) At any election, voting shall be as follows:
926+13 (1) Each person authorized to vote for an elected
927+14 trustee may cast one vote for each related position for
928+15 which such person is entitled to vote and may cast such
929+16 vote for any candidate or candidates on the ballot for
930+17 such trustee position.
931+18 (2) If only one candidate for each position is
932+19 properly nominated in petitions received, that candidate
933+20 shall be deemed the winner and no election under this
934+21 Section shall be required.
935+22 (3) The results shall be entered in the minutes of the
936+23 first meeting of the board following the tally of votes.
937+24 (e) The initial election for permanent trustees shall be
938+25 held and the permanent board shall be seated no later than 12
939+26 months after the effective date of this amendatory Act of the
940+
941+
942+
943+
944+
945+ SB1646 Enrolled - 27 - LRB103 27811 RPS 54189 b
946+
947+
948+SB1646 Enrolled- 28 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 28 - LRB103 27811 RPS 54189 b
949+ SB1646 Enrolled - 28 - LRB103 27811 RPS 54189 b
950+1 101st General Assembly. Each subsequent election shall be held
951+2 no later than 30 days prior to the end of the term of the
952+3 incumbent trustees.
953+4 (f) The elected trustees shall each serve for terms of 4
954+5 years commencing on the first business day of the first month
955+6 after election; except that the terms of office of the
956+7 initially elected trustees shall be as follows:
957+8 (1) One trustee elected pursuant to item (1) of
958+9 subsection (b) of Section 22C-115 shall serve for a term
959+10 of 2 years and 2 trustees elected pursuant to item (1) of
960+11 subsection (b) of Section 22C-115 shall serve for a term
961+12 of 4 years;
962+13 (2) One trustee elected pursuant to item (2) of
963+14 subsection (b) of Section 22C-115 shall serve for a term
964+15 of 2 years and 2 trustees elected pursuant to item (2) of
965+16 subsection (b) of Section 22C-115 shall serve for a term
966+17 of 4 years; and
967+18 (3) The trustee elected pursuant to item (3) of
968+19 subsection (b) of Section 22C-115 shall serve for a term
969+20 of 2 years.
970+21 (g) The trustees appointed pursuant to items (4) and (5)
971+22 of subsection (b) of Section 22C-115 shall each serve for a
972+23 term of 4 years commencing on the first business day of the
973+24 first month after the election of the elected trustees.
974+25 (h) A member of the board who was elected pursuant to item
975+26 (1) of subsection (b) of Section 22C-115 who ceases to serve as
976+
977+
978+
979+
980+
981+ SB1646 Enrolled - 28 - LRB103 27811 RPS 54189 b
982+
983+
984+SB1646 Enrolled- 29 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 29 - LRB103 27811 RPS 54189 b
985+ SB1646 Enrolled - 29 - LRB103 27811 RPS 54189 b
986+1 a mayor, president, chief executive officer, chief financial
987+2 officer, or other officer, executive, or department head of a
988+3 municipality or fire protection district that has a
989+4 participating pension fund shall not be eligible to serve as a
990+5 member of the board and his or her position shall be deemed
991+6 vacant. A member of the board who was elected by the
992+7 participants of participating pension funds who ceases to be a
993+8 participant may serve the remainder of his or her elected
994+9 term.
995+10 For a vacancy of an elected trustee occurring with an
996+11 unexpired term of 6 months or more, an election shall be
997+12 conducted for the vacancy in accordance with Section 22C-115
998+13 and this Section.
999+14 For a vacancy of an elected trustee occurring with an
1000+15 unexpired term of less than 6 months, the vacancy shall be
1001+16 filled by appointment by the board for the unexpired term as
1002+17 follows: a vacancy of a member elected pursuant to item (1) of
1003+18 subsection (b) of Section 22C-115 shall be filled by a mayor,
1004+19 president, chief executive officer, chief financial officer,
1005+20 or other officer, executive, or department head of a
1006+21 municipality or fire protection district that has a
1007+22 participating pension fund; a vacancy of a member elected
1008+23 pursuant to item (2) of subsection (b) of Section 22C-115
1009+24 shall be filled by a participant of a participating pension
1010+25 fund; and a vacancy of a member elected under item (3) of
1011+26 subsection (b) of Section 22C-115 shall be filled by a
1012+
1013+
1014+
1015+
1016+
1017+ SB1646 Enrolled - 29 - LRB103 27811 RPS 54189 b
1018+
1019+
1020+SB1646 Enrolled- 30 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 30 - LRB103 27811 RPS 54189 b
1021+ SB1646 Enrolled - 30 - LRB103 27811 RPS 54189 b
1022+1 beneficiary of a participating pension fund. A trustee
1023+2 appointed to fill the vacancy of an elected trustee shall
1024+3 serve until a successor is elected. Special elections to fill
1025+4 the remainder of an unexpired term vacated by an elected
1026+5 trustee shall be held concurrently with and in the same manner
1027+6 as the next regular election for an elected trustee position.
1028+7 Vacancies among the appointed trustees shall be filled for
1029+8 unexpired terms by appointment in like manner as for the
1030+9 original appointments.
1031+10 (Source: P.A. 101-610, eff. 1-1-20.)
1032+11 (40 ILCS 5/22C-119)
1033+12 Sec. 22C-119. Adoption of rules. The board shall adopt
1034+13 such rules (not inconsistent with this Code) as in its
1035+14 judgment are desirable to implement and properly administer
1036+15 this Article. Such rules shall specifically provide for the
1037+16 following: (1) the implementation of the transition process
1038+17 described in Section 22C-120; (2) the process by which the
1039+18 participating pension funds may request transfer of funds; (3)
1040+19 the process for the transfer in, receipt for, and investment
1041+20 of pension assets received by the Fund after the transition
1042+21 period from the participating pension funds; (4) the process
1043+22 by which contributions from municipalities and fire protection
1044+23 districts for the benefit of the participating pension funds
1045+24 may, but are not required to, be directly transferred to the
1046+25 Fund; and (5) compensation and benefits for its employees. A
1047+
1048+
1049+
1050+
1051+
1052+ SB1646 Enrolled - 30 - LRB103 27811 RPS 54189 b
1053+
1054+
1055+SB1646 Enrolled- 31 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 31 - LRB103 27811 RPS 54189 b
1056+ SB1646 Enrolled - 31 - LRB103 27811 RPS 54189 b
1057+1 copy of the rules adopted by the Fund shall be posted on the
1058+2 Fund's website filed with the Secretary of State and the
1059+3 Department of Insurance. The adoption and effectiveness of
1060+4 such rules shall not be subject to Article 5 of the Illinois
1061+5 Administrative Procedure Act.
1062+6 (Source: P.A. 101-610, eff. 1-1-20.)
1063+7 (40 ILCS 5/22C-123)
1064+8 Sec. 22C-123. Custodian. The pension fund assets
1065+9 transferred to or otherwise acquired by the Fund shall be
1066+10 placed in the custody of a custodian who shall provide
1067+11 adequate safe deposit facilities for those assets and hold all
1068+12 such securities, funds, and other assets subject to the order
1069+13 of the Fund.
1070+14 Each custodian shall furnish a corporate surety bond of
1071+15 such amount as the board designates, which bond shall
1072+16 indemnify the Fund, the board, and the officers and employees
1073+17 of the Fund against any loss that may result from any action or
1074+18 failure to act by the custodian or any of the custodian's
1075+19 agents, or provide insurance coverages of such type and limits
1076+20 as the board designates. All charges incidental to the
1077+21 procuring and giving of any bond shall be paid by the board and
1078+22 each bond shall be in the custody of the board.
1079+23 (Source: P.A. 101-610, eff. 1-1-20.)
1080+24 Article 6.
1081+
1082+
1083+
1084+
1085+
1086+ SB1646 Enrolled - 31 - LRB103 27811 RPS 54189 b
1087+
1088+
1089+SB1646 Enrolled- 32 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 32 - LRB103 27811 RPS 54189 b
1090+ SB1646 Enrolled - 32 - LRB103 27811 RPS 54189 b
1091+1 Section 6-5. The Illinois Pension Code is amended by
1092+2 changing Section 8-165 as follows:
1093+3 (40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
1094+4 Sec. 8-165. Re-entry into service.
1095+5 (a) Except as provided in subsection (c) or (d), when an
1096+6 employee receiving age and service or prior service annuity
1097+7 who has withdrawn from service after the effective date
1098+8 re-enters service before age 65, any annuity previously
1099+9 granted and any annuity fixed for his wife shall be cancelled.
1100+10 The employee shall be credited for annuity purposes with sums
1101+11 sufficient to provide annuities equal to those cancelled, as
1102+12 of their ages on the date of re-entry; provided, the maximum
1103+13 age of the wife for this purpose shall be as provided in
1104+14 Section 8-155 of this Article.
1105+15 The sums so credited shall provide for annuities to be
1106+16 fixed and granted in the future. Contributions by the
1107+17 employees and the city for the purposes of this Article shall
1108+18 be made, and when the proper time arrives, as provided in this
1109+19 Article, new annuities based upon the total credit for annuity
1110+20 purposes and the entire term of his service shall be fixed for
1111+21 the employee and his wife.
1112+22 If the employee's wife died before he re-entered service,
1113+23 no part of any credits for widow's or widow's prior service
1114+24 annuity at the time annuity for his wife was fixed shall be
1115+
1116+
1117+
1118+
1119+
1120+ SB1646 Enrolled - 32 - LRB103 27811 RPS 54189 b
1121+
1122+
1123+SB1646 Enrolled- 33 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 33 - LRB103 27811 RPS 54189 b
1124+ SB1646 Enrolled - 33 - LRB103 27811 RPS 54189 b
1125+1 credited upon re-entry into service, and no such sums shall
1126+2 thereafter be used to provide such annuity.
1127+3 (b) Except as provided in subsection (c) or (d), when an
1128+4 employee re-enters service after age 65, payments on account
1129+5 of any annuity previously granted shall be suspended during
1130+6 the time thereafter that he is in service, and when he again
1131+7 withdraws, annuity payments shall be resumed. If the employee
1132+8 dies in service, his widow shall receive the amount of annuity
1133+9 previously fixed for her.
1134+10 (c) For school years beginning on or after July 1, 2021, an
1135+11 age and service or prior service annuity shall not be
1136+12 cancelled in the case of an employee who is re-employed by the
1137+13 Board of Education of the city as a Special Education
1138+14 Classroom Assistant or Classroom Assistant on a temporary and
1139+15 non-annual basis or on an hourly basis so long as the person:
1140+16 (1) does not work for compensation on more than 120 days in a
1141+17 school year; or (2) does not accept gross compensation for the
1142+18 re-employment in a school year in excess of $30,000. These
1143+19 limitations apply only to school years that begin on or after
1144+20 July 1, 2021. Re-employment under this subsection does not
1145+21 require contributions, result in service credit being earned
1146+22 or granted, or constitute active participation in the Fund.
1147+23 (d) For school years beginning on or after July 1, 2023, an
1148+24 age and service or prior service annuity shall not be
1149+25 cancelled in the case of an employee who is re-employed by the
1150+26 Board of Education of the city as a paraprofessional or
1151+
1152+
1153+
1154+
1155+
1156+ SB1646 Enrolled - 33 - LRB103 27811 RPS 54189 b
1157+
1158+
1159+SB1646 Enrolled- 34 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 34 - LRB103 27811 RPS 54189 b
1160+ SB1646 Enrolled - 34 - LRB103 27811 RPS 54189 b
1161+1 related service provider on a temporary and non-annual basis
1162+2 or on an hourly basis so long as the person: (1) does not work
1163+3 for compensation on more than 120 days in a school year; or (2)
1164+4 does not accept gross compensation for the re-employment in a
1165+5 school year in excess of $30,000. These limitations apply only
1166+6 to school years that begin on or after July 1, 2023.
1167+7 Re-employment under this subsection does not require
1168+8 contributions, result in service credit being earned or
1169+9 granted, or constitute active participation in the Fund.
1170+10 (Source: P.A. 102-342, eff. 8-13-21.)
1171+11 Article 7.
1172+12 Section 7-5. The School Code is amended by changing
1173+13 Section 24-6.3 as follows:
1174+14 (105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
1175+15 Sec. 24-6.3. Retirement trustee leave.
1176+16 (a) Each school board employing a teacher who is an
1177+17 elected trustee of the Teachers' Retirement System of the
1178+18 State of Illinois shall make available to the elected trustee
1179+19 at least 20 days of paid leave of absence per year for the
1180+20 purpose of attending meetings of the System's Board of
1181+21 Trustees, committee meetings of such Board, and seminars
1182+22 regarding issues for which such Board is responsible. The
1183+23 Teachers' Retirement System of the State of Illinois shall
1184+
1185+
1186+
1187+
1188+
1189+ SB1646 Enrolled - 34 - LRB103 27811 RPS 54189 b
1190+
1191+
1192+SB1646 Enrolled- 35 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 35 - LRB103 27811 RPS 54189 b
1193+ SB1646 Enrolled - 35 - LRB103 27811 RPS 54189 b
1194+1 reimburse affected school districts for the actual cost of
1195+2 hiring a substitute teacher during such leaves of absence.
1196+3 (b) Each school board employing an employee who is an
1197+4 elected trustee of the Illinois Municipal Retirement Fund
1198+5 shall make available to the elected trustee at least 20 days of
1199+6 paid leave of absence per year for the purpose of attending
1200+7 meetings of the Fund's Board of Trustees, committee meetings
1201+8 of the Board of Trustees, and seminars regarding issues for
1202+9 which the Board of Trustees is responsible. The Illinois
1203+10 Municipal Retirement Fund may reimburse affected school
1204+11 districts for the actual cost of hiring a substitute employee
1205+12 during such leaves of absence.
1206+13 (c) The school board established under Article 34 and
1207+14 employers under Article 17 of the Illinois Pension Code shall
1208+15 make available to each active teacher who is an elected
1209+16 trustee of the Board of Trustees of the Public School
1210+17 Teachers' Pension and Retirement Fund of Chicago established
1211+18 under Article 17 of the Illinois Pension Code up to 22 days of
1212+19 paid leave of absence per year for the purpose of attending
1213+20 meetings of the Board of Trustees, committee meetings of the
1214+21 Board of Trustees, and seminars regarding issues for which the
1215+22 Board of Trustees is responsible. The allocation of the days
1216+23 of paid leave shall be at the discretion of the Board of
1217+24 Trustees of the Public School Teachers' Pension and Retirement
1218+25 Fund of Chicago.
1219+26 (Source: P.A. 96-357, eff. 8-13-09.)
1220+
1221+
1222+
1223+
1224+
1225+ SB1646 Enrolled - 35 - LRB103 27811 RPS 54189 b
1226+
1227+
1228+SB1646 Enrolled- 36 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 36 - LRB103 27811 RPS 54189 b
1229+ SB1646 Enrolled - 36 - LRB103 27811 RPS 54189 b
1230+1 Article 8.
1231+2 Section 8-5. The Illinois Pension Code is amended by
1232+3 changing Section 16-155 as follows:
1233+4 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
1234+5 Sec. 16-155. Report to system and payment of deductions.
1235+6 (a) The employer governing body of each school district
1236+7 shall submit to the System all required reports and make two
1237+8 deposits each month. The deposit for member contributions for
1238+9 salary paid during any between the first and the fifteenth of
1239+10 the month is due by the 10th 25th of the following month.
1240+11 Additionally, all The deposit of member contributions for
1241+12 salary paid between the sixteenth and last day of the month is
1242+13 due by the 10th of the following month. All required
1243+14 contributions for salary earned during a school term are due
1244+15 by July 10 next following the close of such school term.
1245+16 The governing body of each State institution coming under
1246+17 this retirement system, the State Comptroller or other State
1247+18 officer certifying payroll vouchers including payments of
1248+19 salary or wages to teachers, and any other employer of
1249+20 teachers, shall, monthly, forward to the secretary of the
1250+21 retirement system the member contributions required under this
1251+22 Article.
1252+23 Each employer specified above shall, prior to August 15 of
1253+
1254+
1255+
1256+
1257+
1258+ SB1646 Enrolled - 36 - LRB103 27811 RPS 54189 b
1259+
1260+
1261+SB1646 Enrolled- 37 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 37 - LRB103 27811 RPS 54189 b
1262+ SB1646 Enrolled - 37 - LRB103 27811 RPS 54189 b
1263+1 each year, forward to the System a detailed statement,
1264+2 verified in all cases of school districts by the secretary or
1265+3 clerk of the district, of the amounts so contributed since the
1266+4 period covered by the last previous annual statement, together
1267+5 with required contributions not yet forwarded, such payments
1268+6 being payable to the System.
1269+7 The board may prescribe rules governing the form, content,
1270+8 investigation, control, and supervision of such statements and
1271+9 may establish additional interim employer reporting
1272+10 requirements as the Board deems necessary. If no teacher in a
1273+11 school district comes under the provisions of this Article,
1274+12 the governing body of the district shall so state under the
1275+13 oath of its secretary to this system, and shall at the same
1276+14 time forward a copy of the statement to the regional
1277+15 superintendent of schools.
1278+16 The board may also require reporting requirements that are
1279+17 different than those prescribed in this Section and may
1280+18 require different reporting requirements for different
1281+19 benefits or purposes established under this Article,
1282+20 including, but not limited to, any optional benefit plan an
1283+21 employee chooses to participate in.
1284+22 (b) If the governing body of an employer that is not a
1285+23 State agency fails to forward such required contributions
1286+24 within the time permitted in subsection (a) above, the System
1287+25 shall notify the employer of an additional amount due, equal
1288+26 to $50 per day for each day that elapses from the due date
1289+
1290+
1291+
1292+
1293+
1294+ SB1646 Enrolled - 37 - LRB103 27811 RPS 54189 b
1295+
1296+
1297+SB1646 Enrolled- 38 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 38 - LRB103 27811 RPS 54189 b
1298+ SB1646 Enrolled - 38 - LRB103 27811 RPS 54189 b
1299+1 until the day such report and employee contributions are
1300+2 received by the System.
1301+3 (c) If the system, on August 15, is not in receipt of the
1302+4 detailed statements required under this Section of any school
1303+5 district or other employing unit, such school district or
1304+6 other employing unit shall pay to the system an amount equal to
1305+7 $250 for each day that elapses from August 15, until the day
1306+8 such statement is filed with the system.
1307+9 (Source: P.A. 101-502, eff. 8-23-19.)
1308+10 Article 9.
1309+11 Section 9-5. The Illinois Pension Code is amended by
1310+12 changing Sections 9-108.3 and 9-161 as follows:
1311+13 (40 ILCS 5/9-108.3)
1312+14 Sec. 9-108.3. In service. "In service": Any period during
1313+15 which contributions are being made to the Fund on behalf of an
1314+16 employee except for temporary election work as described in
1315+17 subsection (c) of Section 9-161.
1316+18 (Source: P.A. 99-578, eff. 7-15-16.)
1317+19 (40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
1318+20 Sec. 9-161. Re-entry into service. (a) When an employee
1319+21 who has withdrawn from service after the effective date
1320+22 re-enters service before age 65, any annuity previously
1321+
1322+
1323+
1324+
1325+
1326+ SB1646 Enrolled - 38 - LRB103 27811 RPS 54189 b
1327+
1328+
1329+SB1646 Enrolled- 39 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 39 - LRB103 27811 RPS 54189 b
1330+ SB1646 Enrolled - 39 - LRB103 27811 RPS 54189 b
1331+1 granted and any annuity fixed for his wife shall be cancelled.
1332+2 The employee shall be credited for annuity purposes with the
1333+3 actuarial value of annuities equal to those cancelled as of
1334+4 their ages on the date of re-entry; provided, the maximum age
1335+5 of the wife for this purpose shall be as provided in Section
1336+6 9-151 of this Article. The sums so credited shall provide for
1337+7 annuities to be fixed and granted in the future. Contributions
1338+8 by the employee and the county for the purposes of this Article
1339+9 shall be made and when the proper time arrives, as provided in
1340+10 this Article, new annuities based upon the total sums
1341+11 accumulated to his credit for annuity purposes and the entire
1342+12 term of his service shall be fixed for the employee and his
1343+13 wife.
1344+14 If the employee's wife has died before he re-entered
1345+15 service, no part of any credits for widow's or widow's prior
1346+16 service annuity at the time annuity for his wife was fixed
1347+17 shall be credited upon re-entry into service, and no such sums
1348+18 shall thereafter be used to provide such annuity.
1349+19 (b) When an employee re-enters service after age 65,
1350+20 payments on account of any annuity previously granted shall be
1351+21 suspended during the time thereafter that he is in service,
1352+22 and when he again withdraws annuity payments shall be resumed.
1353+23 If the employee dies in service, his widow shall receive the
1354+24 annuity previously fixed for her.
1355+25 (c) If an employee annuitant re-enters service as an
1356+26 election worker and provides services for a scheduled federal,
1357+
1358+
1359+
1360+
1361+
1362+ SB1646 Enrolled - 39 - LRB103 27811 RPS 54189 b
1363+
1364+
1365+SB1646 Enrolled- 40 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 40 - LRB103 27811 RPS 54189 b
1366+ SB1646 Enrolled - 40 - LRB103 27811 RPS 54189 b
1367+1 State, or local election for a period of 60 days or less during
1368+2 a calendar year, that employee annuitant's annuity shall not
1369+3 be suspended and such employee annuitant shall not be
1370+4 considered to be in service within the meaning of Section
1371+5 9-108.3 and is not entitled to benefits for employees in
1372+6 service. If an employee annuitant re-enters service for a
1373+7 period longer than 60 days during a calendar year, the annuity
1374+8 shall be suspended or cancelled retroactive to the initial
1375+9 date of re-entry.
1376+10 (Source: P.A. 81-1536.)
1377+11 Article 10.
1378+12 Section 10-5. The Illinois Pension Code is amended by
1379+13 changing Section 17-133 as follows:
1380+14 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
1381+15 Sec. 17-133. Contributions for periods of outside and
1382+16 other service. Regularly certified and appointed teachers who
1383+17 desire to have the following described services credited for
1384+18 pension purposes shall submit to the Board evidence thereof
1385+19 and pay into the Fund the amounts prescribed herein:
1386+20 1. For teaching service by a certified teacher in the
1387+21 public schools of the several states or in schools
1388+22 operated by or under the auspices of the United States, a
1389+23 teacher shall pay the contributions at the rates in force
1390+
1391+
1392+
1393+
1394+
1395+ SB1646 Enrolled - 40 - LRB103 27811 RPS 54189 b
1396+
1397+
1398+SB1646 Enrolled- 41 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 41 - LRB103 27811 RPS 54189 b
1399+ SB1646 Enrolled - 41 - LRB103 27811 RPS 54189 b
1400+1 (a) on the date of appointment as a regularly certified
1401+2 teacher after salary adjustments are completed, or (b) at
1402+3 the time of reappointment after salary adjustments are
1403+4 completed, whichever is later, but not less than $450 per
1404+5 year of service. Upon the Board's approval of such service
1405+6 and the payment of the required contributions, service
1406+7 credit of not more than 10 years shall be granted.
1407+8 2. For service as a playground instructor in public
1408+9 school playgrounds, teachers shall pay the contributions
1409+10 prescribed in this Article (a) at the time of appointment,
1410+11 as a regularly certified teacher after salary adjustments
1411+12 are completed, or (b) on return to service as a full time
1412+13 regularly certified teacher, as the case may be, provided
1413+14 such rates or amounts shall not be less than $450 per year.
1414+15 3. For service prior to September 1, 1955, in the
1415+16 public schools of the City as a substitute, evening school
1416+17 or temporary teacher, or for service as an Americanization
1417+18 teacher prior to December 31, 1955, teachers shall pay the
1418+19 contributions prescribed in this Article (a) at the time
1419+20 of appointment, as a regularly certified teacher after
1420+21 salary adjustments are completed, (b) on return to service
1421+22 as a full time regularly certified teacher, as the case
1422+23 may be, provided such rates or amounts shall not be less
1423+24 than $450 per year; and provided further that for teachers
1424+25 employed on or after September 1, 1953, rates shall not
1425+26 include contributions for widows' pensions if the service
1426+
1427+
1428+
1429+
1430+
1431+ SB1646 Enrolled - 41 - LRB103 27811 RPS 54189 b
1432+
1433+
1434+SB1646 Enrolled- 42 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 42 - LRB103 27811 RPS 54189 b
1435+ SB1646 Enrolled - 42 - LRB103 27811 RPS 54189 b
1436+1 described in this sub-paragraph 3 was rendered before that
1437+2 date. Any teacher entitled to repay a refund of
1438+3 contributions under Section 17-126 may validate service
1439+4 described in this paragraph by payment of the amounts
1440+5 prescribed herein, together with the repayment of the
1441+6 refund, provided that if such creditable service was the
1442+7 last service rendered in the public schools of the City
1443+8 and is not automatically reinstated by repayment of the
1444+9 refund, the rates or amounts shall not be less than $450
1445+10 per year.
1446+11 4. For service after June 30, 1982 as a member of the
1447+12 Board of Education, if required to resign from an
1448+13 administrative or teaching position in order to qualify as
1449+14 a member of the Board of Education.
1450+15 5. For service during the 1986-87 school year as a
1451+16 teacher on a special leave of absence with full loss of
1452+17 salary, teaching for an agency under contract to the Board
1453+18 of Education, if the teacher returned to employment in
1454+19 September, 1987. For service under this item 5, the
1455+20 teacher must pay the contributions at the rates in force
1456+21 at the completion of the leave period.
1457+22 6. For up to 2 years of service as a teacher or
1458+23 administrator employed by a private school registered with
1459+24 or recognized by the Illinois State Board of Education,
1460+25 provided that the teacher (i) was certified under the law
1461+26 governing the certification of teachers at the time the
1462+
1463+
1464+
1465+
1466+
1467+ SB1646 Enrolled - 42 - LRB103 27811 RPS 54189 b
1468+
1469+
1470+SB1646 Enrolled- 43 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 43 - LRB103 27811 RPS 54189 b
1471+ SB1646 Enrolled - 43 - LRB103 27811 RPS 54189 b
1472+1 service was rendered, (ii) applies in writing no later
1473+2 than 2 years after the effective date of this amendatory
1474+3 Act of the 102nd General Assembly, (iii) supplies
1475+4 satisfactory evidence of the employment, (iv) completes at
1476+5 least 10 years of contributing service as a teacher as
1477+6 defined in Section 17-106, (v) pays the contribution
1478+7 required in this Section, and (vi) does not receive credit
1479+8 for that service under any other provision of this Code.
1480+9 The member may apply for credit under this subsection and
1481+10 pay the required contribution before completing the 10
1482+11 years of contributing service required under item (iv),
1483+12 but the credit may not be used until the item (iv)
1484+13 contributing service requirement has been met.
1485+14 For each year of service credit to be established
1486+15 under this subparagraph 6, a member is required to
1487+16 contribute to the System (i) the employee and employer
1488+17 contribution that would have been required had such
1489+18 service been rendered as a member based on the annual
1490+19 salary rate during the first year of full-time employment
1491+20 as a teacher under this Article following the private
1492+21 school service, plus (ii) interest thereon at the
1493+22 actuarially assumed rate from the date of first full-time
1494+23 employment as a teacher under this Article following the
1495+24 private school service to the date of payment, compounded
1496+25 annually, at a rate determined by the Board.
1497+26 For service described in sub-paragraphs 1, 2 and 3 of this
1498+
1499+
1500+
1501+
1502+
1503+ SB1646 Enrolled - 43 - LRB103 27811 RPS 54189 b
1504+
1505+
1506+SB1646 Enrolled- 44 -LRB103 27811 RPS 54189 b SB1646 Enrolled - 44 - LRB103 27811 RPS 54189 b
1507+ SB1646 Enrolled - 44 - LRB103 27811 RPS 54189 b
1508+1 Section, interest shall be charged beginning one year after
1509+2 the effective date of appointment or reappointment.
1510+3 Effective September 1, 1974, the interest rate to be
1511+4 charged by the Fund on contributions provided in
1512+5 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
1513+6 annually.
1514+7 (Source: P.A. 102-822, eff. 5-13-22.)
1515+8 Article 99.
1516+9 Section 99-90. The State Mandates Act is amended by adding
1517+10 Section 8.47 as follows:
1518+11 (30 ILCS 805/8.47 new)
1519+12 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
1520+13 8 of this Act, no reimbursement by the State is required for
1521+14 the implementation of any mandate created by this amendatory
1522+15 Act of the 103rd General Assembly.
1523+16 Section 99-99. Effective date. This Act takes effect upon
1524+17 becoming law.
1525+
1526+
1527+
1528+
1529+
1530+ SB1646 Enrolled - 44 - LRB103 27811 RPS 54189 b