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| Public Act 097-0973 | ||||
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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 12-116, 12-127, 12-133, 12-149, 12-167, 12-168, | ||||
12-169, and 12-183 as follows:
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(40 ILCS 5/12-116) (from Ch. 108 1/2, par. 12-116)
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Sec. 12-116. Fiscal year.
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"Fiscal year": For periods prior to July 1, 2012, the The | ||||
year commencing with July 1st and ending with June
30th next | ||||
following. Beginning January 1, 2013, the year commencing | ||||
January 1 and ending December 31. The fiscal year which begins | ||||
July 1, 2012 shall end December 31, 2012.
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(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-127) (from Ch. 108 1/2, par. 12-127)
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Sec. 12-127. Computation of service.
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(a) If an employee during any leave of absence for 30 days | ||||
or more
without pay who is not receiving ordinary disability or | ||||
duty disability
benefits contributes the percentage of salary | ||||
theretofore deducted from
his salary for annuity purposes, the | ||||
employer shall contribute
corresponding amounts for such | ||||
purposes. Payment for any approved leave
of absence shall not | ||||
be valid unless made during such absence or within
30 days from | ||
expiration thereof. The aggregate of leaves of absence for
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which contributions may be made during the entire employee's | ||
service
shall be 1 year.
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(b) In computing service, credit shall be given for all | ||
leaves of
absence subject to the limitations specified in the | ||
following paragraph
during the time an employee was engaged in | ||
the military or naval service
of the United States of America | ||
during the years 1914 to 1919,
inclusive, or between September | ||
16, 1940, and July 25, 1947, or between
June 25, 1950, and | ||
January 31, 1955, and any such service rendered after
January | ||
31, 1955, and who within 180 days subsequent to the completion | ||
of
military or naval service re-enters the service of the | ||
employer.
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The total credit any employee shall receive for military or | ||
naval
service during the entire term of service as an employee | ||
shall be
subject to the following conditions and limitations:
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(1) if entry into military or naval service occurs | ||
after July 1,
1961, the total credit shall not exceed 3 | ||
years;
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(2) if entry into military or naval service occurred on | ||
or
prior to July 1, 1961, the total credit shall not exceed | ||
5 years;
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(3) an employee who on July 1, 1961, had accrued more | ||
than 5 years
of such military or naval service shall be | ||
entitled to the total amount
of such accrued credit.
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The contributions an employee would have made during the | ||
period of
such military or naval service, together with the | ||
prescribed employer
contributions, shall be made by the | ||
employer and shall be based on the
salary for the position | ||
occupied by the employee on the date of
commencement of the | ||
leave of absence.
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(c) For all purposes of this Article except the provisions | ||
of
Section 12-133, the following shall constitute a year of | ||
service in any
fiscal year for salary payable according to the | ||
basis specified: Monthly
Basis: 4 months; Weekly Basis: 17 | ||
weeks; Daily Basis: 100 days; Hourly
Basis: 800 hours, except | ||
that in the case of an employee becoming a
participant of the | ||
fund on and after July 1, 1973, the following
schedule shall | ||
govern for all purposes of this Article: Service during 9
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months or more in any fiscal year shall constitute a year of | ||
service; 6
to 8 months, inclusive, 3/4 of a year; 3 to 5 | ||
months, inclusive, 1/2
year; less than 3 months, 1/4 of a year; | ||
15 days or more in any month, a
month of service. However, for | ||
the 6-month fiscal year July 1, 2012 through December 31, 2012, | ||
the amount of service earned shall not exceed 1/2 year.
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(d) The periods an employee received ordinary or duty | ||
disability
benefit shall be included in the computation of | ||
service.
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(e) Upon receipt of the specified payment, credits | ||
transferred to a
fund established under this Article pursuant | ||
to subsection (d) of Section
8-226.1, subsection (d) of Section | ||
9-121.1, or Section
14-105.1 of this Code shall be included in | ||
the computation
of service.
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(f) A contributing employee may establish additional
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service credit for a period of up to 2 years spent in active | ||
military
service for which he or she does not qualify for | ||
credit under subsection
(b), provided that (1) the person was | ||
not dishonorably discharged from the
military service, and (2) | ||
the amount of service credit established by the
person under | ||
this subsection (f), when added to the amount of any military
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service credit granted to the person under subsection (b), | ||
shall not exceed
5 years. In order to establish military | ||
service credit under this
subsection (f), the applicant must | ||
submit a written application to the
Fund, including a copy of | ||
the applicant's discharge from military service,
and pay to the | ||
Fund (1) employee contributions at the rates provided in
this | ||
Article based upon the person's salary on the last date as a
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participating employee prior to the military service, or on the | ||
first date
as a participating employee after the military | ||
service, whichever is
greater, plus (2) an amount determined by | ||
the board to be equal to the
employer's normal cost of the | ||
benefits accrued for such military service,
plus (3) regular | ||
interest on items (1) and (2) from the date of conclusion
of | ||
the military service to the date of payment. Contributions must | ||
be paid
in a single lump sum before the credit will be granted. | ||
Credit established
under this subsection may be used for | ||
pension purposes only.
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(g) A contributing employee may establish additional | ||
service credit for a
period of up to 5 years of employment by | ||
the United States federal government
for which he or she does | ||
not qualify for credit under any other provision of
this | ||
Article, provided that (1) the amount of service credit | ||
established by the
person under this subsection (g), when added | ||
to the amount of all military
service credit granted to the | ||
person under subsections (b) and (f), shall not
exceed 5 years, | ||
and (2) any credit received for the federal employment in any
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other public pension fund or retirement system has been | ||
terminated or
relinquished.
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In order to establish service credit under this subsection | ||
(g), the
applicant must submit a written application to the | ||
Fund, including such
documentation of the federal employment as | ||
the Board may require, and pay
to the Fund (1) employee | ||
contributions at the rates provided in
this Article based upon | ||
the person's salary on the last date as a
participating | ||
employee prior to the federal service, or on the first date
as | ||
a participating employee after the federal service, whichever | ||
is
greater, plus (2) an amount determined by the Board to be | ||
equal to the
employer's normal cost of the benefits accrued for | ||
such federal service,
plus (3) regular interest on items (1) | ||
and (2) from the date of conclusion
of the federal service to | ||
the date of payment. Contributions must be paid
in a single | ||
lump sum before the credit is granted. Credit established
under | ||
this subsection may be used for pension purposes only.
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(Source: P.A. 86-272; 86-1488; 87-1265.)
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(40 ILCS 5/12-133)
(from Ch. 108 1/2, par. 12-133)
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Sec. 12-133. Fixed benefit retirement annuity.
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(a) Subject to the provisions of paragraph (b) of this | ||
Section, the
retirement annuity for any employee who withdraws | ||
from service on or after
January 1, 1983 and before January 1, | ||
1990, at age 60 or over, having at
least 4 years of service, | ||
shall be 1.70% for each of the first 10 years of
service; 2.00% | ||
for each of the next 10 years of service; 2.40% for each
year | ||
of service in excess of 20 but not exceeding 30; and 2.80% for | ||
each
year of service in excess of 30, with a pro-rated amount | ||
for service of
less than a full year, based upon the highest | ||
average annual salary for any
4 consecutive years within the | ||
last 10 years of service immediately
preceding the date of | ||
withdrawal, provided that: (1) if retirement of the
employee | ||
occurs below age 60, such annuity shall be reduced 1/2 of 1% | ||
for
each month or fraction thereof that the employee's age is | ||
less than 60,
except that an employee retiring at age 55 or | ||
over but less than age 60,
having at least 35 years of service, | ||
shall not be subject to the reduction
in his retirement annuity | ||
because of retirement below age 60; (2) the
annuity shall not | ||
exceed 75% of such average annual salary; (3) the actual
salary | ||
shall be considered in the computation of this annuity.
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The retirement annuity for any employee who withdraws from | ||
service on or
after January 1, 1990 and prior to December 31, | ||
2003 at age 50 or over with
at least 10 years of service, or
at | ||
age 60 or over with at least 4 years of service, shall be 1.90%
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for each of the first 10 years of service, 2.20% for each of | ||
the next 10 years
of service, 2.40% for each of the next 10 | ||
years of service, and
2.80% for each year of service in excess | ||
of 30, with a pro-rated amount for
service of less than a full | ||
year, based upon the highest average annual
salary for any 4 | ||
consecutive years within the last 10 years of service
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immediately preceding the date of withdrawal, provided that:
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(1) if retirement of the employee occurs below age 60, | ||
such annuity
shall be reduced 1/4 of 1% (1/2 of 1% in the | ||
case of withdrawal from
service before January 1, 1991) for | ||
each month or fraction thereof that the
employee's age is | ||
less than 60, except that an employee retiring at age 50
or | ||
over having at least 30 years of service shall not be | ||
subject to the
reduction in retirement annuity because of | ||
retirement below age 60;
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(2) the annuity shall not exceed 80% of such average | ||
annual salary; and
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(3) the actual salary shall be considered in the
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computation of this annuity.
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An employee who withdraws from service on or after December | ||
31, 2003, at
age 50 or over with at least 10 years of service or | ||
at age 60 or over with at
least 4 years of service, shall | ||
receive, in lieu of any other retirement
annuity provided for | ||
in this Section, a retirement annuity calculated as
follows: | ||
for each year of service immediately preceding the date of | ||
withdrawal,
2.40% of the highest average annual salary for any | ||
4 consecutive years within
the last 10 years of service | ||
immediately preceding the date of withdrawal, with
a prorated | ||
amount for service of less than a full year, provided that:
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(1) if retirement of the employee occurs below age 60, | ||
such annuity
shall be reduced 1/4 of 1% for each month or | ||
fraction thereof that the
employee's age is less than 60, | ||
except that an employee retiring at age 50 or
over having | ||
at least 30 years of service shall not be subject to the | ||
reduction
in retirement annuity because of retirement | ||
below age 60;
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(2) the annuity shall not exceed 80% of such average | ||
annual salary; and
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(3) the actual salary shall be considered in the | ||
computation of this
annuity.
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Notwithstanding any other formula, the annuity for | ||
employees retiring on or
after January 31, 2004 and on or | ||
before February 29, 2004 with at least 30 years of
service | ||
shall be 80% of average annual salary for any 4 consecutive | ||
years
within the last 10 years of service immediately preceding | ||
the date of
withdrawal.
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(b) In lieu of the retirement annuity provided as an | ||
actuarial
equivalent of the total accumulations from | ||
contributions by the employee,
contributions by the employer, | ||
and prior service annuity plus regular
interest, an employee in | ||
service prior to July 1, 1971 shall be entitled to
the largest | ||
applicable retirement annuity provided in this Section if the
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same is larger than the annuity provided in other Sections of | ||
this Article.
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(c) The following schedule shall govern the computation of | ||
service
for the fixed benefit annuities provided by this | ||
Section: Service during
9 months or more during any fiscal year | ||
shall constitute a year of
service; 6 to 8 months, inclusive, | ||
3/4 of a year; 3 to 5 months,
inclusive, 1/2 year; less than 3 | ||
months, 1/4 of a year; 15 days or more
in any month, a month of | ||
service. However, for the 6-month fiscal year July 1, 2012 | ||
through December 31, 2012, the amount of service earned shall | ||
not exceed 1/2 year.
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(d) The other provisions of this Section shall not apply in | ||
the case of
any former employee who is receiving a retirement | ||
annuity from the fund
and who re-enters service as an employee, | ||
unless the employee renders
from and after the date of | ||
re-entry, at least 3 years of additional
service.
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(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/12-149)
(from Ch. 108 1/2, par. 12-149)
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Sec. 12-149. Financing. The board of park commissioners of | ||
any such
park district shall annually levy a tax (in addition | ||
to the taxes now
authorized by law) upon all taxable property | ||
embraced in the district,
at the rate which, when added to the | ||
employee contributions under this
Article and applied to the | ||
fund created
hereunder, shall be sufficient to provide for the | ||
purposes of this
Article in accordance with the provisions | ||
thereof. Such tax shall be
levied and collected with and in | ||
like manner as the general taxes of
such district, and shall | ||
not in any event be included within any
limitations of rate for | ||
general park purposes as now or hereafter
provided by law, but | ||
shall be excluded therefrom and be in addition
thereto. The | ||
amount of such annual tax to and including the year 1977
shall | ||
not exceed .0275% of the value, as equalized or assessed by the
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Department of Revenue, of all taxable property embraced
within | ||
the park district, provided that for the year 1978, and for | ||
each
year thereafter, the amount of such annual tax shall be at | ||
a rate on the
dollar of assessed valuation of all taxable | ||
property that will produce,
when extended, for the year 1978 | ||
the following sum: 0.825 times the
amount of employee | ||
contributions during the fiscal year 1976; for the
year 1979, | ||
0.85 times the amount of employee contributions during the
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fiscal year 1977; for the year 1980, 0.90 times the amount of | ||
employee
contributions during the fiscal year 1978; for the | ||
year 1981, 0.95 times
the amount of employee contributions | ||
during the fiscal year 1979; for the year
1982, 1.00 times the | ||
amount of employee contributions during the fiscal year
1980; | ||
for the year 1983, 1.05 times the amount of contributions made | ||
on behalf
of employees during the fiscal year 1981; and for the | ||
year 1984 and each year
thereafter, an amount equal to 1.10 | ||
times the employee contributions during the
fiscal year 2-years | ||
prior to the year for which the applicable tax is levied.
For | ||
the year 2014, this calculation shall be 1.10 times the amount | ||
of employee contributions during the 12-month fiscal year | ||
ending June 30, 2012; and for the year 2015, this calculation | ||
shall be 1.10 times the amount of employee contributions during | ||
the 12-month fiscal year ending December 31, 2013. As used in | ||
this Section, the term "employee contributions" means | ||
contributions
by employees for retirement annuity, spouse's | ||
annuity, automatic increase in
retirement annuity, and death | ||
benefit.
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In respect to park district employees, other than | ||
policemen, who are
transferred to the employment of a city by | ||
virtue of the "Exchange of
Functions Act of 1957", the | ||
corporate authorities of the city shall
annually levy a tax | ||
upon all taxable property embraced in the city, as
equalized or | ||
assessed by the Department of Revenue, at such rate per
cent of | ||
the value of such property as shall be sufficient, when added
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to the amounts deducted from the salary or wages of such | ||
employees, to
provide the benefits to which such employees, | ||
their dependents and
beneficiaries are entitled under the | ||
provisions of this Article. The
park district shall not levy a | ||
tax hereunder in respect to such
employees. The tax levied by | ||
the city under authority of this Article
shall be in addition | ||
to and exclusive of all other taxes authorized by
law to be | ||
levied by the city for corporate, annuity fund or other
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purposes.
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All moneys accruing from the levy and collection of taxes, | ||
pursuant
to this section, shall be remitted to the board by the | ||
employers as soon
as they are received. Where a city has levied | ||
a tax pursuant to this
Section in respect to park district | ||
employees transferred to the
employment of a city, the | ||
treasurer of such city or other authorized
officer shall remit | ||
the moneys accruing from the levy and collection of
such tax as | ||
soon as they are received. Such remittances shall be made
upon | ||
a pro rata share basis, whereby each employer shall pay to the
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board such employer's proportionate percentage of each payment | ||
of taxes
received by it, according to the ratio which its tax | ||
levy for this fund
bears to the total tax levy of such | ||
employer.
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Should any board of park commissioners included under the | ||
provisions
of this Article be without authority to levy the tax | ||
provided in this
Section the corporation authorities (meaning | ||
the supervisor, clerk and
assessor) of the town or towns for | ||
which such board shall be the board
of park commissioners shall | ||
levy such tax.
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Employer contributions to the Fund may be reduced by | ||
$5,000,000 for
calendar years 2004 and 2005.
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(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/12-167) (from Ch. 108 1/2, par. 12-167)
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Sec. 12-167. To keep records, books and prepare reports.
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To keep a record of all its proceedings which shall be open | ||
to
inspection by the public; to keep such books and records as | ||
are necessary
for the transaction of its business; and to | ||
prepare a report, as of the last day June 30
of each fiscal | ||
year, setting forth the income and disbursements of the fund | ||
for
the year, and the amount of its assets and liabilities at | ||
the close of the
year. Such statement shall include, among | ||
other things, the following
information:
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(a) the total of the reserves on all annuities being paid | ||
and to be paid
from the fund to employees and widows whose | ||
annuities are determined but
not entered upon, calculating such | ||
reserves as if the annuities were
actually entered upon;
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(b) the total of the liabilities of the employer for prior | ||
service
annuities and widow's prior service annuities, | ||
including the present values
of such annuities that are entered | ||
upon.
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(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-168) (from Ch. 108 1/2, par. 12-168)
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Sec. 12-168. To have an audit.
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To have an annual audit of the books, records and reserves | ||
of the fund
as of the last day of each fiscal June 30th, in each | ||
year, by a certified public accountant. A copy of
the report of | ||
such audit shall be filed with the board of park
commissioners, | ||
and a synopsis thereof shall be prepared for public
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distribution.
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(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-169) (from Ch. 108 1/2, par. 12-169)
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Sec. 12-169. To appoint employees.
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To appoint such actuarial, legal, medical, clerical and | ||
other employees
as may be necessary in the administration of | ||
the fund and fix their
compensation.
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One or more actuaries shall be employed with duty to | ||
determine the
amount of money necessary to be provided under | ||
this Article, and to assist
the board in preparing the annual | ||
statement as of the last day June 30 of each fiscal year, and
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to certify to the correctness thereof.
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(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-183) (from Ch. 108 1/2, par. 12-183)
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Sec. 12-183. Annual actuarial valuation.
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An actuarial valuation shall be made annually of the | ||
liabilities and
reserves for present and prospective annuities | ||
and benefits, and beginning January 1, 2013
July 1, 1973 a | ||
general investigation shall be made and shall be completed
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every 5 years thereafter of the operating experience of the | ||
fund as to
mortality, disability, retirement, marital status of | ||
employees, withdrawal
from service without right to annuity, | ||
investment earnings and other
factors of actuarial criteria.
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Upon the basis of the annual actuarial valuation and | ||
quinquennial
actuarial investigations, the actuary shall | ||
recommend the tables to be used
in the annual valuations and in | ||
current operations including the prescribed
rate of interest, | ||
and shall advise the board on any matters of actuarial
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character affecting the financial condition of the fund and its | ||
operations.
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(Source: P.A. 78-266.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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