If enacted, SB2802 will notably alter how laid-off employees can transition back into public service by ensuring they do not lose pension credits accrued during the layoff period. This amendment is particularly relevant in the context of financial uncertainty impacting both employees and the state's budget. The provision to apply for creditable service within six months emphasizes a timely reintegration into state employment and pension systems.
Summary
SB2802 aims to amend the State Employee Article of the Illinois Pension Code to allow employees who have been laid off but returned to state employment to establish creditable service for the duration of their layoff. This can be achieved through paying required contributions, and the application for such service must be submitted within six months of the bill's effective date. However, the individual must not have already received credit under other sections of the Pension Code. The bill sets a cap of three years on the creditable service that can be established under this provision.
Contention
The bill raises several points of contention among stakeholders. Advocates argue that allowing laid-off employees to establish creditable service helps maintain public sector employment stability and acknowledges the interruptions faced by workers due to budgetary constraints or economic downturns. Critics may voice concerns regarding the financial implications of adding potential liabilities to the state pension fund, especially in light of existing pension deficits.