|  |
Public Act 094-0712
Public Act 0712 94TH GENERAL ASSEMBLY
|
|
Public Act 094-0712
|
| SB1693 Enrolled |
LRB094 06133 EFG 36198 b |
|
| AN ACT in relation to public employee benefits.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Illinois Pension Code is amended by changing | Sections
7-142.1, 7-156, 7-169, 7-172, and 7-173.1 as follows:
| (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
| Sec. 7-142.1. Sheriff's law enforcement employees.
| (a) In lieu of the retirement annuity provided by | subparagraph 1 of
paragraph (a) of Section 7-142:
| Any sheriff's law enforcement employee who
has 20 or more | years of service in that capacity and who terminates
service | prior to January 1, 1988 shall be entitled at his
option to | receive a monthly retirement annuity for his service as a
| sheriff's law enforcement employee computed by multiplying 2% | for each year
of such service up to 10 years, 2 1/4% for each | year
of such service above 10 years and up to 20 years, and
2 | 1/2% for each year of such service above
20 years, by his | annual final rate of earnings and dividing by 12.
| Any sheriff's law enforcement employee who has 20 or more | years of
service in that capacity and who terminates service on | or after January 1,
1988 and before July 1, 2004 shall be | entitled at his option to receive
a monthly retirement
annuity | for his service as a sheriff's law enforcement employee | computed by
multiplying 2.5% for each year of such service up | to 20 years, 2% for each
year of such service above 20 years | and up to 30 years, and 1% for each
year of such service above | 30 years, by his annual final rate of earnings
and dividing by | 12.
| Any sheriff's law enforcement employee who has 20 or more | years of
service in that capacity and who terminates service on | or after July 1,
2004 shall be entitled at his or her option to | receive a monthly retirement
annuity for service as a sheriff's |
| law enforcement employee computed by
multiplying 2.5% for each | year of such service by his annual final rate of
earnings and | dividing by 12.
| If a sheriff's law enforcement employee has service in any | other
capacity, his retirement annuity for service as a | sheriff's law enforcement
employee may be computed under this | Section and the retirement annuity for
his other service under | Section 7-142.
| In no case shall the total monthly retirement annuity for | persons who retire before July 1, 2004 exceed 75% of the
| monthly final rate of earnings. In no case shall the total | monthly retirement annuity for persons who retire on or after | July 1, 2004 exceed 80% of the
monthly final rate of earnings.
| (b) Whenever continued group insurance coverage is elected | in accordance
with the provisions of Section 367h of the | Illinois Insurance Code, as now
or hereafter amended, the total | monthly premium for such continued group
insurance coverage or | such portion thereof as is not paid
by the municipality shall, | upon request of the person electing such
continued group | insurance coverage, be deducted from any monthly pension
| benefit otherwise payable to such person pursuant to this | Section, to be
remitted by the Fund to the insurance company
or | other entity providing the group insurance coverage.
| (c) A sheriff's law enforcement employee who has service in | any other
capacity may convert up to 10 years of that service | into service as a sheriff's
law enforcement employee by paying | to the Fund an amount equal to (1) the
additional employee | contribution required under Section 7-173.1, plus (2) the | additional employer contribution required under Section 7-172, | plus (3) interest on items (1) and (2) at the
prescribed rate | from the date of the service to the date of payment.
| (d) The changes to subsections (a) and (b) of this Section | made by this amendatory Act of the 94th General Assembly apply | only to persons in service on or after July 1, 2004. In the | case of such a person who begins to receive a retirement | annuity before the effective date of this amendatory Act of the |
| 94th General Assembly, the annuity shall be recalculated | prospectively to reflect those changes, with the resulting | increase beginning to accrue on the first annuity payment date | following the effective date of this amendatory Act.
| (Source: P.A. 85-941.)
| (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
| Sec. 7-156. Surviving spouse annuities - amount.
| (a) The amount of surviving spouse annuity shall be:
| 1. Upon the death of an employee annuitant or such person | entitled, upon
application, to a retirement annuity at date of | death, (i) an amount equal
to 1/2 of the retirement annuity | which was or would
have been payable exclusive of the amount so | payable which was provided from
additional credits, and | disregarding any election made under paragraph (b) of
Section | 7-142, plus (ii) an annuity which could be provided at the then
| attained age of the surviving spouse and under actuarial tables | then in effect,
from the excess of the additional credits, | (excluding any such credits used to
create a reversionary | annuity) used to provide the annuity granted pursuant to
| paragraph (a) (2) of Section 7-142 of this article over the | total annuity
payments made pursuant thereto.
| 2. Upon the death of a participating employee on or after | attainment of
age 55, an amount equal to 1/2 of the retirement | annuity
which he could have had as of the date of death had he | then retired and applied
for annuity, exclusive of the portion | thereof which could have been provided
from additional credits, | and disregarding paragraph (b) of Section 7-142,
plus an amount | equal to the annuity which could be provided from the total
of | his accumulated additional credits at date of death, on the | basis of the
attained age of the surviving spouse on such date.
| 3. Upon the death of a participating employee before age | 55, an amount equal
to 1/2 of the retirement annuity which he | could have had
as of his attained age on the date of death, had | he then retired and applied
for annuity, and the provisions of | this Article that no such annuity shall
begin until the |
| employee has attained at least age 55 were not applicable,
| exclusive of the portion thereof which could have been provided | from
additional credits and disregarding paragraph (b) of | Section 7-142, plus an
amount equal to the annuity which could | be provided from the total of his
accumulated additional | credits at date of death, on the basis of the
attained age of | the surviving spouse on such date.
| In the case of the surviving spouse of a person who dies | before the
effective date of this amendatory Act of the 94th | General Assembly, if
the
a surviving spouse is more than 5 | years younger than the deceased,
that portion of the annuity | which is not based on additional credits shall
be reduced in | the ratio of the value of a life annuity of $1 per year at an
| age of 5 years less than the attained age of the deceased, at | the earlier
of the date of the death or the date his retirement | annuity begins, to the
value of a life annuity of $1 per year | at the attained age of the surviving
spouse on such date, | according to actuarial tables approved by the Board.
This | reduction does not apply to the surviving spouse of a person | who dies
on or after the effective date of this amendatory Act | of the 94th General
Assembly.
| In computing the amount of a surviving spouse annuity, | incremental increases
of retirement annuities to the date of | death of the employee annuitant shall be
considered.
| (b) Each surviving spouse annuity payable on January 1, | 1988 shall be
increased on that date by 3% of the original | amount of the annuity. Each
surviving spouse annuity that | begins after January 1, 1988 shall be
increased on the January | 1 next occurring after the annuity begins, by an
amount equal | to (i) 3% of the original amount thereof if the deceased
| employee was receiving a retirement annuity at the time of his | death; otherwise
(ii) 0.167% of the original amount thereof for | each complete
month which has elapsed since the date the | annuity began.
| On each January 1 after the date of the initial increase | under this
subsection, each surviving spouse annuity shall be |
| increased by 3% of the
originally granted amount of the | annuity.
| (Source: P.A. 85-941.)
| (40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
| Sec. 7-169. Separation benefits; repayments.
| (a) If an employee who has
received a separation benefit | subsequently becomes a participating employee,
and renders at | least 2 years of contributing service from the date of such
| re-entry, he may pay to the fund the amount of the separation | benefit, plus
interest at the effective rate for each year from | the date of payment of the
separation benefit to the date of | repayment. Upon payment his creditable
service shall be | reinstated and the payment shall be credited to his account
as | normal contributions. |
(b) Beginning July 1, 2004, the requirement of
returning | to service for at least 2 years does not apply to persons who | return
to service as a sheriff's law enforcement employee. This | subsection applies only to persons in service on or after July | 1, 2004. In the case of such a person who begins to receive a | retirement annuity before the effective date of this amendatory | Act of the 94th General Assembly, the annuity shall be | recalculated prospectively to reflect any credits reinstated | as a result of this subsection, with the resulting increase in | annuity beginning to accrue on the first annuity payment date | following the effective date of this amendatory Act, but not | earlier than the date the repayment is received by the Fund.
| (Source: P.A. 84-1028.)
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| Sec. 7-172. Contributions by participating municipalities | and
participating instrumentalities.
| (a) Each participating municipality and each participating
| instrumentality shall make payment to the fund as follows:
| 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;
| 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;
| 3. all accounts receivable, together with interest | charged thereon,
as provided in Section 7-209;
| 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.
| (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:
| 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
| payable under Sections 7-158 and 7-164, such percentage to | be known as the
normal cost rate.
| 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,
|
| 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.
| 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
| benefits granted during the most recent year for which | information is
available.
| 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
| Section 7-206 during the year for which this rate is fixed.
| 5. The percentage of earnings necessary to meet any | deficiency
arising in the Terminated Municipality Reserve.
| (c) A separate municipality contribution rate shall be | computed for
each participating municipality or participating | instrumentality
for its sheriff's law enforcement employees.
| 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%.
| 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.
| (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
| provide that, in lieu of a separate municipality rate for these
| 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
| 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
| rate for program participants or the refund of a portion of the
| municipality contributions, as the case may be, may be | considered.
| (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.
| (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
| 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.
| (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
| school funds handled by the treasurer.
| 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.
| 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
| available, a separate rate shall be established as provided in | subparagraph
(i) of this Section.
| 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
| subparagraph (i) of this Section.
| (h) Each participating municipality and participating
| 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.
| (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 5 of paragraph (a) of | this Section, shall be based on
an amortization period of 10 | years.
| (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.
| (Source: P.A. 92-424, eff. 8-17-01.)
| (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
| Sec. 7-173.1. Additional contribution by sheriff's law | enforcement
employees.
| (a) Each sheriff's law enforcement employee shall make an | additional
contribution of 1% of earnings, which shall be | considered as normal
contributions. For earnings on or after | July 1, 1988, the additional
contribution shall be 2% of | earnings. For earnings on or after the effective date of this | amendatory Act of the 94th General Assembly, the additional | contribution shall be 3% of earnings; this increase
is intended | to defray the employee's portion of the cost of the benefit
| increases provided by this amendatory Act of the 94th General | Assembly.
| This additional contribution shall be payable for | retroactive service periods
which the employee elects to | establish and to periods of authorized leave of
absence.
| (b) If the employee is awarded a retirement annuity under | Section
7-142 and not under Section 7-142.1, then the | additional contribution required
under this Section shall be | refunded with interest or paid as provided in
subsection (c). | If the employee returns to a participating status as a
| sheriff's law enforcement employee, the employee may repay the | amount refunded
with interest and upon subsequent retirement be | entitled to a recomputation of
the retirement annuity under | Section 7-142.1 if the total service as a
sheriff's law | enforcement employee meets the requirements of that Section.
| (c) Instead of a refund under subsection (b), the retiring | employee may
elect to convert the amount of the refund into an | annuity, payable
separately from the retirement annuity. If the |
| annuitant dies before the
guaranteed amount has been | distributed, the remainder shall be paid in a lump
sum to the | designated beneficiary of the annuitant. The Board shall adopt | any
rules necessary for the implementation of this subsection.
| (Source: P.A. 90-766, eff. 8-14-98.)
| Section 90. The State Mandates Act is amended by adding | Section 8.29 as
follows:
| (30 ILCS 805/8.29 new)
| Sec. 8.29. 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 94th General Assembly.
|
Effective Date: 6/1/2006
|
|
|
|
Translate
