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91_HB2366
LRB9105251EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 7-154, 7-172, and 7-174 and to amend the State
3 Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 7-154, 7-172, and 7-174 as follows:
8 (40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
9 Sec. 7-154. Surviving spouse annuities - Eligibility.
10 (a) A surviving spouse annuity shall be payable to the
11 eligible surviving spouse of a participating employee, an
12 employee annuitant, or a person who on the date of death
13 would have been entitled to a retirement annuity, had he
14 applied for such annuity, and who dies at any time when a
15 surviving spouse annuity equals at least $5 per month,
16 provided:
17 (1) The surviving spouse (i) was married to the
18 participating employee for at least one year on the date
19 of death, or (ii) was married to the annuitant or person
20 entitled to a retirement annuity for at least one year
21 prior to the date of termination of service, or (iii) was
22 married to the deceased annuitant for at least one year
23 on the date of the deceased annuitant's death, if at the
24 time of termination of service the deceased annuitant was
25 married for at least one year to a spouse who does not
26 survive the deceased annuitant.
27 (2) The male deceased employee annuitant or such
28 other person entitled to a retirement annuity had
29 contributed to this fund for surviving spouse annuity
30 purposes for at least 1 year or continuously since the
31 effective date of the participating municipality or
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1 participating instrumentality.
2 (3) The female deceased employee annuitant or such
3 other person entitled to a retirement annuity was in
4 service on or after July 27, 1972, provided that the
5 annuity shall not be computed on the basis of any
6 retirement annuity effective before that date.
7 (4) If the employee dies before termination of
8 service, the employee did not exclude the spouse from any
9 death benefit or surviving spouse annuity pursuant to
10 subsection (b) of Section 7-118. A designation of
11 beneficiary naming a spouse and children jointly or a
12 trust pursuant to subsection (b) of Section 7-118 shall
13 preclude payment of a surviving spouse annuity.
14 (b) If a person is the spouse of a retiring
15 participating employee on the date of the initial payment of
16 a retirement annuity and is qualified to receive a surviving
17 spouse annuity upon the death of the employee and the
18 surviving spouse contributions are not refunded to the
19 employee, then a surviving spouse annuity shall be payable to
20 that person even if the marriage to the employee is dissolved
21 after that date.
22 (c) Eligibility of a surviving spouse shall be
23 determined as of the date of death. Only one surviving
24 spouse annuity shall be paid on account of the death of any
25 employee.
26 (d) With respect to surviving spouse benefits, the term
27 "person entitled to a retirement annuity" means:
28 (1) in the case of a person who dies before the
29 effective date of this amendatory Act of the 91st General
30 Assembly, a person who, on the date of death, meets both
31 the age and service requirements for receiving a
32 retirement annuity from the Fund, but was not actually
33 receiving that annuity; and
34 (2) in the case of a person who dies on or after
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1 the effective date of this amendatory Act of the 91st
2 General Assembly, a person who, on the date of death,
3 meets the service requirements (but not necessarily the
4 age requirements) for receiving a retirement annuity from
5 the Fund, and was not actually receiving that annuity.
6 (Source: P.A. 87-740; 87-850.)
7 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
8 Sec. 7-172. Contributions by participating
9 municipalities and participating instrumentalities.
10 (a) Each participating municipality and each
11 participating instrumentality shall make payment to the fund
12 as follows:
13 1. municipality contributions in an amount
14 determined by applying the municipality contribution rate
15 to each payment of earnings paid to each of its
16 participating employees;
17 2. an amount equal to the employee contributions
18 provided by paragraphs (a) and (b) of Section 7-173,
19 whether or not the employee contributions are withheld as
20 permitted by that Section;
21 3. all accounts receivable, together with interest
22 charged thereon, as provided in Section 7-209;
23 4. if it has no participating employees with
24 current earnings, an amount payable which, over a period
25 of 20 years beginning with the year following an award of
26 benefit, will amortize, at the effective rate for that
27 year, any negative balance in its municipality reserve
28 resulting from the award. This amount when established
29 will be payable as a separate contribution whether or not
30 it later has participating employees.
31 (b) A separate municipality contribution rate shall be
32 determined for each calendar year for all participating
33 municipalities together with all instrumentalities thereof.
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1 The municipality contribution rate shall be determined for
2 participating instrumentalities as if they were participating
3 municipalities. The municipality contribution rate shall be
4 the sum of the following percentages:
5 1. The percentage of earnings of all the
6 participating employees of all participating
7 municipalities and participating instrumentalities which,
8 if paid over the entire period of their service, will be
9 sufficient when combined with all employee contributions
10 available for the payment of benefits, to provide all
11 annuities for participating employees, and the $3,000
12 death benefit payable under Sections 7-158 and 7-164,
13 such percentage to be known as the normal cost rate.
14 2. The percentage of earnings of the participating
15 employees of each participating municipality and
16 participating instrumentalities necessary to adjust for
17 the difference between the present value of all benefits,
18 excluding temporary and total and permanent disability
19 and death benefits, to be provided for its participating
20 employees and the sum of its accumulated municipality
21 contributions and the accumulated employee contributions
22 and the present value of expected future employee and
23 municipality contributions pursuant to subparagraph 1 of
24 this paragraph (b). This adjustment shall be spread over
25 the remainder of the period of 40 years (30 years by the
26 year 2006) from the first of the year following the date
27 of determination.
28 3. The percentage of earnings of the participating
29 employees of all municipalities and participating
30 instrumentalities necessary to provide the present value
31 of all temporary and total and permanent disability
32 benefits granted during the most recent year for which
33 information is available.
34 4. The percentage of earnings of the participating
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1 employees of all participating municipalities and
2 participating instrumentalities necessary to provide the
3 present value of the net single sum death benefits
4 expected to become payable from the reserve established
5 under Section 7-206 during the year for which this rate
6 is fixed.
7 5. The percentage of earnings necessary to meet any
8 deficiency arising in the Terminated Municipality
9 Reserve.
10 (c) A separate municipality contribution rate shall be
11 computed for each participating municipality or participating
12 instrumentality for its sheriff's law enforcement employees.
13 A separate municipality contribution rate shall be
14 computed for the sheriff's law enforcement employees of each
15 forest preserve district that elects to have such employees.
16 For the period from January 1, 1986 to December 31, 1986,
17 such rate shall be the forest preserve district's regular
18 rate plus 2%.
19 In the event that the Board determines that there is an
20 actuarial deficiency in the account of any municipality with
21 respect to a person who has elected to participate in the
22 Fund under Section 3-109.1 of this Code, the Board may adjust
23 the municipality's contribution rate so as to make up that
24 deficiency over such reasonable period of time as the Board
25 may determine.
26 (d) The Board may establish a separate municipality
27 contribution rate for all employees who are program
28 participants employed under the Federal Comprehensive
29 Employment Training Act by all of the participating
30 municipalities and instrumentalities. The Board may also
31 provide that, in lieu of a separate municipality rate for
32 these employees, a portion of the municipality contributions
33 for such program participants shall be refunded or an extra
34 charge assessed so that the amount of municipality
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1 contributions retained or received by the fund for all CETA
2 program participants shall be an amount equal to that which
3 would be provided by the separate municipality contribution
4 rate for all such program participants. Refunds shall be
5 made to prime sponsors of programs upon submission of a claim
6 therefor and extra charges shall be assessed to participating
7 municipalities and instrumentalities. In establishing the
8 municipality contribution rate as provided in paragraph (b)
9 of this Section, the use of a separate municipality
10 contribution rate for program participants or the refund of a
11 portion of the municipality contributions, as the case may
12 be, may be considered.
13 (e) Computations of municipality contribution rates for
14 the following calendar year shall be made prior to the
15 beginning of each year, from the information available at the
16 time the computations are made, and on the assumption that
17 the employees in each participating municipality or
18 participating instrumentality at such time will continue in
19 service until the end of such calendar year at their
20 respective rates of earnings at such time.
21 (f) Any municipality which is the recipient of State
22 allocations representing that municipality's contributions
23 for retirement annuity purposes on behalf of its employees as
24 provided in Section 12-21.16 of the Illinois Public Aid Code
25 shall pay the allocations so received to the Board for such
26 purpose. Estimates of State allocations to be received
27 during any taxable year shall be considered in the
28 determination of the municipality's tax rate for that year
29 under Section 7-171. If a special tax is levied under
30 Section 7-171, none of the proceeds may be used to reimburse
31 the municipality for the amount of State allocations received
32 and paid to the Board. Any multiple-county or consolidated
33 health department which receives contributions from a county
34 under Section 11.2 of "An Act in relation to establishment
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1 and maintenance of county and multiple-county health
2 departments", approved July 9, 1943, as amended, or
3 distributions under Section 3 of the Department of Public
4 Health Act, shall use these only for municipality
5 contributions by the health department.
6 (g) Municipality contributions for the several purposes
7 specified shall, for township treasurers and employees in the
8 offices of the township treasurers who meet the qualifying
9 conditions for coverage hereunder, be allocated among the
10 several school districts and parts of school districts
11 serviced by such treasurers and employees in the proportion
12 which the amount of school funds of each district or part of
13 a district handled by the treasurer bears to the total amount
14 of all school funds handled by the treasurer.
15 From the funds subject to allocation among districts and
16 parts of districts pursuant to the School Code, the trustees
17 shall withhold the proportionate share of the liability for
18 municipality contributions imposed upon such districts by
19 this Section, in respect to such township treasurers and
20 employees and remit the same to the Board.
21 The municipality contribution rate for an educational
22 service center shall initially be the same rate for each year
23 as the regional office of education or school district which
24 serves as its administrative agent. When actuarial data
25 become available, a separate rate shall be established as
26 provided in subparagraph (i) of this Section.
27 The municipality contribution rate for a public agency,
28 other than a vocational education cooperative, formed under
29 the Intergovernmental Cooperation Act shall initially be the
30 average rate for the municipalities which are parties to the
31 intergovernmental agreement. When actuarial data become
32 available, a separate rate shall be established as provided
33 in subparagraph (i) of this Section.
34 (h) Each participating municipality and participating
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1 instrumentality shall make the contributions in the amounts
2 provided in this Section in the manner prescribed from time
3 to time by the Board and all such contributions shall be
4 obligations of the respective participating municipalities
5 and participating instrumentalities to this fund. The
6 failure to deduct any employee contributions shall not
7 relieve the participating municipality or participating
8 instrumentality of its obligation to this fund. Delinquent
9 payments of contributions due under this Section may, with
10 interest, be recovered by civil action against the
11 participating municipalities or participating
12 instrumentalities. Municipality contributions, other than
13 the amount necessary for employee contributions and Social
14 Security contributions, for periods of service by employees
15 from whose earnings no deductions were made for employee
16 contributions to the fund, may be charged to the municipality
17 reserve for the municipality or participating
18 instrumentality.
19 (i) Contributions by participating instrumentalities
20 shall be determined as provided herein except that the
21 percentage derived under subparagraph 2 of paragraph (b) of
22 this Section, and the amount payable under subparagraph 5 of
23 paragraph (a) of this Section, shall be based on an
24 amortization period of 10 years.
25 (Source: P.A. 90-448, eff. 8-16-97.)
26 (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
27 Sec. 7-174. Board created.
28 (a) A board of 9 8 members shall constitute a board of
29 trustees authorized to carry out the provisions of this
30 Article. Each trustee shall be a participating employee of a
31 participating municipality or participating instrumentality
32 or an annuitant of the Fund and no person shall be eligible
33 to become a trustee after January 1, 1979 who does not have
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1 at least 8 years of creditable service.
2 (b) The board shall consist of representatives of
3 various groups as follows:
4 1. 4 trustees shall be a chief executive officer,
5 chief finance officer, or other officer, executive or
6 department head of a participating municipality or
7 participating instrumentality, and each such trustee
8 shall be designated as an executive trustee.
9 2. 3 trustees shall be employees of a participating
10 municipality or participating instrumentality and each
11 such trustee shall be designated as an employee trustee.
12 3. 2 trustees One trustee shall be annuitants an
13 annuitant of the Fund, each of whom who shall be
14 designated an the annuitant trustee.
15 (c) A person elected as a trustee shall qualify as a
16 trustee, after declaration by the board that he has been duly
17 elected, upon taking and subscribing to the constitutional
18 oath of office and filing same in the office of the Fund.
19 (d) The term of office of each trustee shall begin upon
20 January 1 of the year following the year in which he is
21 elected and shall continue for a period of 5 years and until
22 a successor has been elected and qualified, or until prior
23 resignation, death, incapacity or disqualification. However,
24 the additional annuitant trustee added by this amendatory Act
25 of the 91st General Assembly shall first be elected at an
26 election held within 9 months after the effective date of
27 this amendatory Act, for a term commencing on the later of
28 January 1, 2000 or the date of election and ending on
29 December 31, 2002.
30 (e) Any elected trustee (other than an the annuitant
31 trustee) shall be disqualified immediately upon termination
32 of employment with all participating municipalities and
33 instrumentalities thereof or upon any change in status which
34 removes any such trustee from all employments within the
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1 group he represents. An The annuitant trustee shall be
2 disqualified upon termination of his or her annuity.
3 (f) The trustees shall fill any vacancy in the board by
4 appointment, for the period until the next election of
5 trustees, or, if the remaining term is less than 2 years, for
6 the remainder of the term, and until his successor has been
7 elected and qualified.
8 (g) Trustees shall serve without compensation, but shall
9 be reimbursed for any reasonable expenses incurred in
10 attending meetings of the board and in performing duties on
11 behalf of the Fund and for the amount of any earnings
12 withheld by any employing municipality or participating
13 instrumentality because of attendance at any board meeting.
14 (h) Each trustee other than the annuitant trustee shall
15 be entitled to one vote on any and all actions before the
16 board; the annuitant trustee is not entitled to vote on any
17 matter. At least 5 least 4 concurring votes shall be
18 necessary for every decision or action by the board at any of
19 its meetings. No decision or action shall become effective
20 unless presented and so approved at a regular or duly called
21 special meeting of the board.
22 (Source: P.A. 89-136, eff. 7-14-95.)
23 Section 90. The State Mandates Act is amended by adding
24 Section 8.23 as follows:
25 (30 ILCS 805/8.23 new)
26 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
27 and 8 of this Act, no reimbursement by the State is required
28 for the implementation of any mandate created by this
29 amendatory Act of the 91st General Assembly.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.