PEN CD-SURS-SEVERANCE PAYMENTS Senate SponsorsSen. Bill Cunningham-Michael Connelly-Thomas Cullerton-Julie A. Morrison-Laura M. Murphy and Andy Manar House Sponsors(Rep. Kelly M. Burke-Grant Wehrli-Norine K. Hammond) 8/26/2016SenatePublic Act . . . . . . . . . 99-0897 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111Amends the State Universities Article of the Illinois Pension Code. Provides that severance payments are not included in the definition of "earnings".Senate Committee Amendment No. 2 Adds reference to:40 ILCS 5/15-106from Ch. 108 1/2, par. 15-10640 ILCS 5/15-107from Ch. 108 1/2, par. 15-10740 ILCS 5/15-110from Ch. 108 1/2, par. 15-11040 ILCS 5/15-111.5 new40 ILCS 5/15-168from Ch. 108 1/2, par. 15-16840 ILCS 5/15-168.2Replaces everything after the enacting clause. Amends the State Universities Article of the Illinois Pension Code. For an employee who first becomes a participant on or after the effective date of the amendatory Act, excludes housing allowances, vehicle allowances, and club memberships or dues from the calculation of basic compensation and earnings. Provides that the definition of "basic compensation" includes the amount of any elective deferral to a deferred compensation plan under the Illinois Pension Code. Provides that in the case of doubt as to whether any person meets the definition of "employee", the decision of the Board shall be final. Provides that an individual that begins employment with certain entities or an entity not defined in the Article as an employer on or after the effective date of the amendatory Act shall not be eligible to participate in the System. Provides that when the System requests information from an employer, the employer shall respond to the request within 90 calendar days. Provides that when the System requests employment records and payroll records of an employer, the employer shall respond within 60 calendar days. Authorizes the System to assess a penalty of $500 per day, up to a maximum of $50,000, on an employer who fails to respond to certain requests for information after a certain number of days. Provides that if a participant, beneficiary, or annuitant fails to provide any information that is necessary for the calculation, payment, or finalization of any benefit under the Article within 90 calendar days, then the System may immediately cease processing the benefit and may not pay any additional benefit payment to the participant, beneficiary, or annuitant until the requested information is provided.Senate Floor Amendment No. 3 Amends the bill as amended by Senate Amendment 2. Adds bonuses to a list of items not included in the term "basic compensation" for persons who first become participants on or after the effective date.House Floor Amendment No. 2 In the list of items not included in the term "basic compensation" for persons who first become participants on or after the effective date, removes club memberships or dues and adds social club dues and athletic club dues. Makes a grammatical change.House Floor Amendment No. 3 Adds reference to:40 ILCS 5/15-113.1140 ILCS 5/15-113.12 new40 ILCS 5/15-15540 ILCS 5/15-158.2Replaces everything after the enacting clause with the engrossed bill plus House Amendment No. 2, and the following additional provisions: Further amends the State Universities Article of the Illinois Pension Code. Provides that a participant may establish creditable service and earnings credit for periods of furlough (or voluntary reduction in pay taken in lieu of furlough) beginning on or after July 1, 2015 and ending on or before June 30, 2017 by paying, on an after-tax basis, specified employee and employer contributions, plus interest. In the provision requiring employers to make an additional contribution to the System under certain circumstances when an employee receives an increase in annual earnings exceeding 6%, provides that when assessing payment, the System shall include earnings that would have been paid to a participant had the participant not taken periods of voluntary or involuntary furlough (or voluntary reduction in pay taken in lieu of furlough) on or after July 1, 2015 and on or before June 30, 2017. Requires the employer to report such earnings in a manner prescribed by the System. Also requires the System to provide advance notice to a participant in the self-managed plan of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. Provides that if a participant in the self-managed plan fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, the System shall invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction. Provides that the participant has the right to transfer account balances out of the default investment fund during time periods designated by the System. 7/14/2015SenateFiled with Secretary by Sen. Bill Cunningham 7/14/2015SenateFirst Reading 7/14/2015SenateReferred to Assignments 7/20/2015SenateAdded as Chief Co-Sponsor Sen. Dan Kotowski 7/21/2015SenateAdded as Chief Co-Sponsor Sen. Michael Connelly 8/17/2015SenateAdded as Chief Co-Sponsor Sen. Thomas Cullerton 9/9/2015SenateAssigned to Higher Education 9/9/2015SenateTo Subcommittee on Public Higher Education Executive Compensation 9/9/2015SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Bill Cunningham 9/9/2015SenateSenate Committee Amendment No. 1 Referred to Assignments 10/10/2015SenatePursuant to Senate Rule 3-9(b) / Referred to Assignments 10/20/2015SenateRe-assigned to Higher Education 10/20/2015SenateTo Subcommittee on Public Higher Education Executive Compensation 1/7/2016SenatePursuant to Senate Rule 3-9(b) / Referred to Assignments 2/16/2016SenateRe-assigned to Higher Education 2/16/2016SenateSenate Committee Amendment No. 1 Assignments Refers to Higher Education 2/17/2016SenateTo Subcommittee on Public Higher Education Executive Compensation 2/25/2016SenateSenate Committee Amendment No. 2 Filed with Secretary by Sen. Bill Cunningham 2/25/2016SenateSenate Committee Amendment No. 2 Referred to Assignments 3/2/2016SenateSenate Committee Amendment No. 2 Assignments Refers to Higher Education 3/2/2016SenateAdded as Chief Co-Sponsor Sen. Julie A. Morrison 3/2/2016SenateReported Back To Higher Education; 003-000-000 3/2/2016SenateSenate Committee Amendment No. 2 Adopted 3/3/2016SenateDo Pass as Amended Higher Education; 010-000-000 3/3/2016SenatePlaced on Calendar Order of 2nd Reading March 8, 2016 3/8/2016SenateChief Co-Sponsor Changed to Sen. Laura M. Murphy 3/9/2016SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Bill Cunningham 3/9/2016SenateSenate Floor Amendment No. 3 Referred to Assignments 3/16/2016SenateSenate Floor Amendment No. 3 Assignments Refers to Higher Education 4/6/2016SenateSenate Floor Amendment No. 3 Recommend Do Adopt Higher Education; 010-000-000 4/6/2016SenateAdded as Co-Sponsor Sen. Andy Manar 4/8/2016SenateSenate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments 4/12/2016SenateSecond Reading 4/12/2016SenateSenate Floor Amendment No. 3 Adopted; Cunningham 4/12/2016SenatePlaced on Calendar Order of 3rd Reading April 13, 2016 4/14/2016SenateThird Reading - Passed; 052-000-000 4/14/2016SenateSenate Committee Amendment No. 1 Tabled Pursuant to Rule 5-4(a) 4/14/2016HouseArrived in House 4/14/2016HouseChief House Sponsor Rep. Kelly M. Burke 4/14/2016HouseFirst Reading 4/14/2016HouseReferred to Rules Committee 4/18/2016HouseAssigned to Personnel and Pensions Committee 5/2/2016HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Kelly M. Burke 5/2/2016HouseHouse Committee Amendment No. 1 Referred to Rules Committee 5/4/2016HouseDo Pass / Short Debate Personnel and Pensions Committee; 007-000-000 5/4/2016HouseHouse Committee Amendment No. 1 Tabled Pursuant to Rule 40 5/5/2016HousePlaced on Calendar 2nd Reading - Short Debate 5/5/2016HouseAdded Alternate Chief Co-Sponsor Rep. Grant Wehrli 5/11/2016HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Kelly M. Burke 5/11/2016HouseHouse Floor Amendment No. 2 Referred to Rules Committee 5/12/2016HouseHouse Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 003-002-000 5/12/2016HouseSecond Reading - Short Debate 5/12/2016HouseHouse Floor Amendment No. 2 Adopted 5/12/2016HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/25/2016HouseHouse Floor Amendment No. 3 Filed with Clerk by Rep. Kelly M. Burke 5/25/2016HouseHouse Floor Amendment No. 3 Referred to Rules Committee 5/26/2016HouseHouse Floor Amendment No. 3 Rules Refers to Personnel and Pensions Committee 5/26/2016HouseHouse Floor Amendment No. 3 Recommends Be Adopted Personnel and Pensions Committee; 009-000-000 5/27/2016HouseAdded Alternate Chief Co-Sponsor Rep. Norine K. Hammond 5/27/2016HouseFinal Action Deadline Extended-9(b) May 31, 2016 5/29/2016HouseRecalled to Second Reading - Short Debate 5/29/2016HouseHouse Floor Amendment No. 3 Adopted 5/29/2016HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/29/2016HouseThird Reading - Short Debate - Passed 110-000-001 5/29/2016SenateSecretary's Desk - Concurrence House Amendment(s) 2, 3 5/29/2016SenatePlaced on Calendar Order of Concurrence House Amendment(s) 2, 3 - May 30, 2016 5/30/2016SenateHouse Floor Amendment No. 2 Motion to Concur Filed with Secretary Sen. Bill Cunningham 5/30/2016SenateHouse Floor Amendment No. 2 Motion to Concur Referred to Assignments 5/30/2016SenateHouse Floor Amendment No. 3 Motion to Concur Filed with Secretary Sen. Bill Cunningham 5/30/2016SenateHouse Floor Amendment No. 3 Motion to Concur Referred to Assignments 5/30/2016SenateHouse Floor Amendment No. 2 Motion to Concur Assignments Referred to Higher Education 5/30/2016SenateHouse Floor Amendment No. 3 Motion to Concur Assignments Referred to Higher Education 5/30/2016SenateHouse Floor Amendment No. 2 Motion To Concur Recommended Do Adopt Higher Education; 009-000-000 5/30/2016SenateHouse Floor Amendment No. 3 Motion To Concur Recommended Do Adopt Higher Education; 009-000-000 5/31/2016SenateHouse Floor Amendment No. 2 Senate Concurs 057-000-000 5/31/2016SenateHouse Floor Amendment No. 3 Senate Concurs 057-000-000 5/31/2016SenateSenate Concurs 5/31/2016SenatePassed Both Houses 6/29/2016SenateSent to the Governor 8/26/2016SenateGovernor Approved 8/26/2016SenateEffective Date January 1, 2017 8/26/2016SenatePublic Act . . . . . . . . . 99-0897