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| Public Act 096-1258 | ||||
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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 | ||||
Section 7-173 as follows:
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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 paid beginning on the first day of the second
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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. 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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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.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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