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| Public Act 096-1084 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Sections 7-170, 7-171, 7-172, 7-173, and 7-211 as follows:
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(40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
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Sec. 7-170. Federal Social Security coverage. (a) It is | ||||
declared to be the policy and purpose to extend to covered
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employees as defined in Section 7-138, the benefits of the | ||||
Federal Old
Age and Survivors Insurance System as authorized by | ||||
the Federal Social
Security Act and amendments thereto. To | ||||
effect this, the board shall
take such action as may be | ||||
required by applicable State and Federal laws
or regulations.
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(b) The board shall execute an agreement with the State | ||||
Agency to
secure coverage of covered employees as provided in | ||||
paragraph (a) of
this section.
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(c) Each participating municipality and each participating | ||||
instrumentality
shall remit payment of contributions for | ||||
Social Security purposes on behalf
of covered employees and | ||||
covered municipalities and participating
instrumentalities
as | ||||
required by applicable State and federal laws and regulations | ||||
the board and the State Agency established by the Social
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Security Enabling Act.
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(d) Contributions of covered employees to this fund for | ||
Federal
Social Security purposes shall be paid to the State | ||
Agency in such
amounts and at such time as required by | ||
applicable State and federal laws and regulations are | ||
designated by State laws or regulations.
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(e) (Blank) Contributions in behalf of covered | ||
municipalities and
participating instrumentalities for Federal | ||
Social Security purposes and
the required pro rata share of | ||
administrative expenses shall be paid to
the State Agency from | ||
this fund in accordance with applicable State laws
and | ||
regulations.
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(f) The board shall maintain such records and submit such | ||
reports as may
be required by applicable State and Federal laws | ||
or regulations.
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(Source: P.A. 81-793.)
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(40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
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Sec. 7-171. Finance; taxes.
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(a) Each municipality other than a school district shall
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appropriate an amount sufficient to provide for the current
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municipality contributions required by Section 7-172 of
this | ||
Article, for the fiscal year for which the appropriation is | ||
made
and all amounts due for municipal contributions for | ||
previous years.
Those municipalities which have been assessed | ||
an annual amount to
amortize its unfunded obligation, as | ||
provided in subparagraph 4 5 of
paragraph (a) of Section 7-172 | ||
of this Article, shall include in the
appropriation an amount | ||
sufficient to pay the amount assessed. The
appropriation shall | ||
be based upon an estimate of assets available for
municipality | ||
contributions and liabilities therefor for the fiscal year
for | ||
which appropriations are to be made, including funds available | ||
from
levies for this purpose in prior years.
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(b) For the purpose of providing monies for municipality
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contributions, beginning for the year in which a municipality | ||
is
included in this fund:
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(1) A municipality other than a school district may | ||
levy a tax
which shall not exceed the amount appropriated | ||
for municipality contributions.
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(2) A school district may levy a tax in an amount | ||
reasonably calculated
at the time of the levy to provide | ||
for the municipality contributions required
under Section | ||
7-172 of this Article for the fiscal years for which | ||
revenues
from the levy will be received and all amounts due | ||
for municipal contributions
for previous years. Any levy | ||
adopted before the effective date of this
amendatory Act of | ||
1995 by a school district shall be considered valid and
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authorized to the extent that the amount was reasonably | ||
calculated at the time
of the levy to provide for the | ||
municipality contributions required under
Section 7-172 | ||
for the fiscal years for which revenues from the levy will | ||
be
received and all amounts due for municipal contributions | ||
for previous years.
In no event shall a budget adopted by a | ||
school district limit a levy of that
school district | ||
adopted under this Section.
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(c) Any county which is served by a regional office of | ||
education that
serves 2 or more
counties may include in its
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appropriation an amount sufficient to provide its | ||
proportionate share of the
municipality contributions for that | ||
regional office of education. The tax levy authorized by this | ||
Section may include an amount
necessary to provide monies for | ||
this contribution.
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(d) Any county that is a part of a multiple-county health | ||
department
or consolidated health department which is formed | ||
under "An Act in
relation to the establishment and maintenance | ||
of county and
multiple-county public health departments", | ||
approved July 9, 1943, as
amended, and which is a participating | ||
instrumentality may include in the
county's appropriation an | ||
amount sufficient to provide its proportionate
share of | ||
municipality contributions of the department. The tax levy
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authorized by this Section may include the amount necessary to | ||
provide
monies for this contribution.
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(d-5) A school district participating in a special | ||
education joint
agreement created under Section 10-22.31 of the | ||
School Code that is a
participating instrumentality may include | ||
in the school district's
tax levy under this Section an amount | ||
sufficient to provide its
proportionate share of the | ||
municipality contributions for current and prior
service by | ||
employees of the participating instrumentality created under | ||
the
joint agreement.
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(e) Such tax shall be levied and collected in like manner, | ||
with the
general taxes of the municipality and shall be in | ||
addition to all other
taxes which the municipality is now or | ||
may hereafter be authorized to
levy upon all taxable property | ||
therein, and shall be exclusive of and in
addition to the | ||
amount of tax levied for general purposes under Section
8-3-1 | ||
of the "Illinois Municipal Code", approved May 29, 1961, as
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amended, or under any other law or laws which may limit the | ||
amount of
tax which the municipality may levy for general | ||
purposes. The tax may
be levied by the governing body of the | ||
municipality without being
authorized as being additional to | ||
all other taxes by a vote of the
people of the municipality.
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(f) The county clerk of the county in which any such | ||
municipality is
located, in reducing tax levies shall not | ||
consider any such tax as a
part of the general tax levy for | ||
municipality purposes, and shall not
include the same in the | ||
limitation of any other tax rate which may be
extended.
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(g) The amount of the tax to be levied in any year shall, | ||
within the
limits herein prescribed, be determined by the | ||
governing body of the
respective municipality.
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(h) The revenue derived from any such tax levy shall be | ||
used only
for the purposes specified in this Article and, as | ||
collected, shall be
paid to the treasurer of the municipality | ||
levying the tax. Monies
received by a county treasurer for use | ||
in making contributions to a regional
office of education for | ||
its
municipality contributions shall be held by him for that | ||
purpose and paid to
the regional office of education in the | ||
same manner as other
monies appropriated for the expense of the | ||
regional office.
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(Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | ||
90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
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(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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Sec. 7-172. Contributions by participating municipalities | ||
and
participating instrumentalities.
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(a) Each participating municipality and each participating
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instrumentality shall make payment to the fund as follows:
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1. municipality contributions in an amount determined | ||
by applying
the municipality contribution rate to each | ||
payment of earnings paid to
each of its participating | ||
employees;
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2. an amount equal to the employee contributions | ||
provided by paragraphs
(a) and (b) of Section 7-173, | ||
whether or not the employee contributions are
withheld as | ||
permitted by that Section;
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3. all accounts receivable, together with interest | ||
charged thereon,
as provided in Section 7-209;
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4. if it has no participating employees with current | ||
earnings, an
amount payable which, over a period of 20 | ||
years beginning with the year
following an award of | ||
benefit, will amortize, at the effective rate for
that | ||
year, any negative balance in its municipality reserve | ||
resulting
from the award. This amount when established will | ||
be payable as a
separate contribution whether or not it | ||
later has participating employees.
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(b) A separate municipality contribution rate shall be | ||
determined
for each calendar year for all participating | ||
municipalities together
with all instrumentalities thereof. | ||
The municipality contribution rate
shall be determined for | ||
participating instrumentalities as if they were
participating | ||
municipalities. The municipality contribution rate shall
be | ||
the sum of the following percentages:
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1. The percentage of earnings of all the participating | ||
employees of all
participating municipalities and | ||
participating instrumentalities which, if paid
over the | ||
entire period of their service, will be sufficient when | ||
combined with
all employee contributions available for the | ||
payment of benefits, to provide
all annuities for | ||
participating employees, and the $3,000 death benefit
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payable under Sections 7-158 and 7-164, such percentage to | ||
be known as the
normal cost rate.
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2. The percentage of earnings of the participating | ||
employees of each
participating municipality and | ||
participating instrumentalities necessary
to adjust for | ||
the difference between the present value of all benefits,
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excluding temporary and total and permanent disability and | ||
death benefits, to
be provided for its participating | ||
employees and the sum of its accumulated
municipality | ||
contributions and the accumulated employee contributions | ||
and the
present value of expected future employee and | ||
municipality contributions
pursuant to subparagraph 1 of | ||
this paragraph (b). This adjustment shall be
spread over | ||
the remainder of the period that is allowable under | ||
generally
accepted accounting principles.
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3. The percentage of earnings of the participating | ||
employees of all
municipalities and participating | ||
instrumentalities necessary to provide
the present value | ||
of all temporary and total and permanent disability
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benefits granted during the most recent year for which | ||
information is
available.
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4. The percentage of earnings of the participating | ||
employees of all
participating municipalities and | ||
participating instrumentalities
necessary to provide the | ||
present value of the net single sum death
benefits expected | ||
to become payable from the reserve established under
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Section 7-206 during the year for which this rate is fixed.
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5. The percentage of earnings necessary to meet any | ||
deficiency
arising in the Terminated Municipality Reserve.
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(c) A separate municipality contribution rate shall be | ||
computed for
each participating municipality or participating | ||
instrumentality
for its sheriff's law enforcement employees.
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A separate municipality contribution rate shall be | ||
computed for the
sheriff's law enforcement employees of each | ||
forest preserve district that
elects to have such employees. | ||
For the period from January 1, 1986 to
December 31, 1986, such | ||
rate shall be the forest preserve district's regular
rate plus | ||
2%.
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In the event that the Board determines that there is an | ||
actuarial
deficiency in the account of any municipality with | ||
respect to a person who
has elected to participate in the Fund | ||
under Section 3-109.1 of this Code,
the Board may adjust the | ||
municipality's contribution rate so as to make up
that | ||
deficiency over such reasonable period of time as the Board may | ||
determine.
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(d) The Board may establish a separate municipality | ||
contribution
rate for all employees who are program | ||
participants employed under the
federal Comprehensive | ||
Employment Training Act by all of the
participating | ||
municipalities and instrumentalities. The Board may also
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provide that, in lieu of a separate municipality rate for these
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employees, a portion of the municipality contributions for such | ||
program
participants shall be refunded or an extra charge | ||
assessed so that the
amount of municipality contributions | ||
retained or received by the fund
for all CETA program | ||
participants shall be an amount equal to that which
would be | ||
provided by the separate municipality contribution rate for all
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such program participants. Refunds shall be made to prime | ||
sponsors of
programs upon submission of a claim therefor and | ||
extra charges shall be
assessed to participating | ||
municipalities and instrumentalities. In
establishing the | ||
municipality contribution rate as provided in paragraph
(b) of | ||
this Section, the use of a separate municipality contribution
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rate for program participants or the refund of a portion of the
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municipality contributions, as the case may be, may be | ||
considered.
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(e) Computations of municipality contribution rates for | ||
the
following calendar year shall be made prior to the | ||
beginning of each
year, from the information available at the | ||
time the computations are
made, and on the assumption that the | ||
employees in each participating
municipality or participating | ||
instrumentality at such time will continue
in service until the | ||
end of such calendar year at their respective rates
of earnings | ||
at such time.
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(f) Any municipality which is the recipient of State | ||
allocations
representing that municipality's contributions for | ||
retirement annuity
purposes on behalf of its employees as | ||
provided in Section 12-21.16 of
the Illinois Public Aid Code | ||
shall pay the allocations so
received to the Board for such | ||
purpose. Estimates of State allocations to
be received during | ||
any taxable year shall be considered in the
determination of | ||
the municipality's tax rate for that year under Section
7-171. | ||
If a special tax is levied under Section 7-171, none of the
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proceeds may be used to reimburse the municipality for the | ||
amount of State
allocations received and paid to the Board. Any | ||
multiple-county or
consolidated health department which | ||
receives contributions from a county
under Section 11.2 of "An | ||
Act in relation to establishment and maintenance
of county and | ||
multiple-county health departments", approved July 9, 1943,
as | ||
amended, or distributions under Section 3 of the Department of | ||
Public
Health Act, shall use these only for municipality | ||
contributions by the
health department.
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(g) Municipality contributions for the several purposes | ||
specified
shall, for township treasurers and employees in the | ||
offices of the
township treasurers who meet the qualifying | ||
conditions for coverage
hereunder, be allocated among the | ||
several school districts and parts of
school districts serviced | ||
by such treasurers and employees in the
proportion which the | ||
amount of school funds of each district or part of
a district | ||
handled by the treasurer bears to the total amount of all
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school funds handled by the treasurer.
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From the funds subject to allocation among districts and | ||
parts of
districts pursuant to the School Code, the trustees | ||
shall withhold the
proportionate share of the liability for | ||
municipality contributions imposed
upon such districts by this | ||
Section, in respect to such township treasurers
and employees | ||
and remit the same to the Board.
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The municipality contribution rate for an educational | ||
service center shall
initially be the same rate for each year | ||
as the regional office of
education or school district
which | ||
serves as its administrative agent. When actuarial data become
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available, a separate rate shall be established as provided in | ||
subparagraph
(i) of this Section.
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The municipality contribution rate for a public agency, | ||
other than a
vocational education cooperative, formed under the | ||
Intergovernmental
Cooperation Act shall initially be the | ||
average rate for the municipalities
which are parties to the | ||
intergovernmental agreement. When actuarial data
become | ||
available, a separate rate shall be established as provided in
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subparagraph (i) of this Section.
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(h) Each participating municipality and participating
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instrumentality shall make the contributions in the amounts | ||
provided in
this Section in the manner prescribed from time to | ||
time by the Board and
all such contributions shall be | ||
obligations of the respective
participating municipalities and | ||
participating instrumentalities to this
fund. The failure to | ||
deduct any employee contributions shall not
relieve the | ||
participating municipality or participating instrumentality
of | ||
its obligation to this fund. Delinquent payments of | ||
contributions
due under this Section may, with interest, be | ||
recovered by civil action
against the participating | ||
municipalities or participating
instrumentalities. | ||
Municipality contributions, other than the amount
necessary | ||
for employee contributions and Social Security contributions, | ||
for
periods of service by employees from whose earnings no | ||
deductions were made
for employee contributions to the fund, | ||
may be charged to the municipality
reserve for the municipality | ||
or participating instrumentality.
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(i) Contributions by participating instrumentalities shall | ||
be
determined as provided herein except that the percentage | ||
derived under
subparagraph 2 of paragraph (b) of this Section, | ||
and the amount payable
under subparagraph 4 5 of paragraph (a) | ||
of this Section, shall be based on
an amortization period of 10 | ||
years.
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(j) Notwithstanding the other provisions of this Section, | ||
the additional unfunded liability accruing as a result of this | ||
amendatory Act of the 94th General Assembly
shall be amortized | ||
over a period of 30 years beginning on January 1 of the
second | ||
calendar year following the calendar year in which this | ||
amendatory Act takes effect, except that the employer may | ||
provide for a longer amortization period by adopting a | ||
resolution or ordinance specifying a 35-year or 40-year period | ||
and submitting a certified copy of the ordinance or resolution | ||
to the fund no later than June 1 of the calendar year following | ||
the calendar year in which this amendatory Act takes effect.
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(Source: P.A. 94-712, eff. 6-1-06.)
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(40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
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Sec. 7-173. Contributions by employees.
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(a) Each participating employee shall make contributions | ||
to the fund as
follows:
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1. For retirement annuity purposes, normal | ||
contributions of 3 3/4%
of earnings.
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2. Additional contributions of such percentages of | ||
each payment of
earnings, as shall be elected by the | ||
employee for retirement annuity
purposes, but not in excess | ||
of 10%. The selected rate shall be
applicable to all | ||
earnings beginning on the first day of the second
month | ||
following receipt by the Board of written notice of | ||
election to
make such contributions. Additional | ||
contributions at the selected rate
shall be made | ||
concurrently with normal contributions.
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3. Survivor contributions, by each participating | ||
employee, of 3/4%
of each payment of earnings.
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(b) Each employee shall make contributions to the fund for | ||
Federal
Social Security taxes, for periods during which he is a | ||
covered
employee, as required by the Social Security Enabling | ||
Act and State and federal law. For
participating employees, | ||
such contributions shall be in addition to
those required under | ||
paragraph (a) of this Section.
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(c) Contributions shall be deducted from each | ||
corresponding payment
of earnings paid to each employee and | ||
shall be remitted to the board by
the participating | ||
municipality or participating instrumentality making
such | ||
payment. The remittance, together with a report of the earnings
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and contributions shall be made as directed by the board. For | ||
township
treasurers and employees of township treasurers | ||
qualifying as employees
hereunder, the contributions herein | ||
required as deductions from salary
shall be withheld by the | ||
school township trustees from funds available
for the payment | ||
of the compensation of such treasurers and employees as
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provided in the School Code and remitted to the board.
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(d) An employee who has made additional contributions under
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paragraph (a)2 of this Section may upon retirement or at any | ||
time prior
thereto, elect to withdraw the total of such | ||
additional contributions
including interest credited thereon | ||
to the end of the preceding calendar
year.
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(e) Failure to make the deductions for employee | ||
contributions
provided in paragraph (c) of this Section shall | ||
not relieve the employee
from liability for such contributions. | ||
The amount of such liability may
be deducted, with interest | ||
charged under Section 7-209, from any
annuities or benefits | ||
payable hereunder to the employee or any other
person receiving | ||
an annuity or benefit by reason of such employee's
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participation.
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(f) A participating employee who has at least 40 years of | ||
creditable
service in the Fund may elect to cease making the | ||
contributions required
under this Section. The status of the | ||
employee under this Article shall be
unaffected by this | ||
election, except that the employee shall not receive any
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additional creditable service for the periods of employment | ||
following the
election. An election under this subsection | ||
relieves the employer from
making additional employer | ||
contributions in relation to that employee.
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(Source: P.A. 87-1265.)
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(40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
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Sec. 7-211. Authorizations.
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(a) Each participating municipality and instrumentality | ||
thereof and
each participating instrumentality shall:
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1. Deduct all normal and additional contributions and | ||
contributions
for federal Social Security taxes as | ||
required by the Social Security
Enabling Act from each | ||
payment of earnings payable to each participating
employee | ||
who is entitled to any earnings from such municipality or
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instrumentality thereof or participating instrumentality, | ||
and remit
all normal and additional such contributions | ||
immediately to the board; and
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2. Pay to the board contributions required by this | ||
Article.
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(b) Each participating employee shall, by virtue of the | ||
payment of
contributions to this fund, receive a vested | ||
interest in the annuities
and benefits provided in this Article | ||
and in consideration of such vested
interest shall be deemed to | ||
have agreed and authorized the deduction from
earnings of all | ||
contributions payable to this fund in accordance with this
| ||
Article.
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(c) Payment of earnings less the amounts of contributions | ||
provided in
this Article and in the Social Security Enabling | ||
Act shall be a full
and complete discharge of all claims for | ||
payment for services rendered
by any employee during the period | ||
covered by any such payment.
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(d) Any covered annuitant may authorize the withholding of | ||
all or a portion
of his or her annuity, for the payment of | ||
premiums on group accident and health
insurance provided | ||
pursuant to Section 7-199.1. The annuitant may revoke
this | ||
authorization at any time.
| ||
(Source: P.A. 91-887, eff. 7-6-00.)
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Section 90. The State Mandates Act is amended by adding | ||
Section 8.34 as follows: | ||
(30 ILCS 805/8.34 new) | ||
Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | ||
of this Act, no reimbursement by the State is required for the | ||
implementation of any mandate created by this amendatory Act of | ||
the 96th General Assembly.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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