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Public Act 097-0973
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| SB3629 Enrolled | LRB097 15761 JDS 60905 b |
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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 |
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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 |
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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, |
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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: |
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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 |
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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 |
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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 |
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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 |
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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 |