Illinois General Assembly

Previous General Assemblies

Full Text of SB1922  98th General Assembly

SB1922ham004 98TH GENERAL ASSEMBLY

Rep. Michael J. Madigan

Filed: 4/2/2014

 

 


 

 


 
09800SB1922ham004LRB098 09566 EFG 58082 a

1
AMENDMENT TO SENATE BILL 1922

2    AMENDMENT NO. ______. Amend Senate Bill 1922, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Findings. It is the intention of the General
6Assembly to address an immediate funding crisis that threatens
7the solvency and sustainability of the public pension systems
8("Pension Funds") serving employees of the City of Chicago
9("City"). The Pension Funds include the Municipal Employees'
10Annuity and Benefit Fund of Chicago ("MEABF") and the Laborers'
11and Retirement Board Employees' Annuity Benefit Fund of Chicago
12("LABF"). After reviewing the condition of the Pension Funds,
13potential sources of funding, and assessing the need for reform
14thereof, the General Assembly finds and declares that:
15    1. The overall financial condition of these two city
16pension funds is so dire, even under the most optimistic
17assumptions, a balanced increase in funding, both from the City

 

 

09800SB1922ham004- 2 -LRB098 09566 EFG 58082 a

1and from its employees, combined with a modification of retiree
2benefits for both current and future retirees, is necessary to
3stabilize and fund the pension funds.
4    2. While considering the combined unfunded liabilities of
5these two City funds, as well as other pension funds that
6ultimately will rely on funds from the City's property tax
7base, a combination of benefit modification and increased
8revenues are necessary to keep the city funds solvent.
9    3. Furthermore, the City cannot feasibly reduce its other
10expenses to address this serious problem without an
11unprecedented reduction in basic City services. Personnel
12costs constitute approximately 75% of the non-discretionary
13appropriations for the City. As such, reductions in City
14expenditures to fund pensions would necessarily result in
15substantial cuts to City personnel, including in key services
16areas such as public safety, sanitation, and construction.
17    4. In sum, the crisis confronting the City and its Funds is
18so large and immediate that it cannot be addressed through
19increased funding alone, without modifying pension benefits.
20The consequences to the City of attempting to do so would be
21draconian. Accordingly, the General Assembly concludes that,
22unless reforms are enacted, the benefits currently promised by
23the Pension Funds are at risk.
 
24    Section 5. The Property Tax Code is amended by changing
25Section 20-15 as follows:
 

 

 

09800SB1922ham004- 3 -LRB098 09566 EFG 58082 a

1    (35 ILCS 200/20-15)
2    Sec. 20-15. Information on bill or separate statement.
3There shall be printed on each bill, or on a separate slip
4which shall be mailed with the bill:
5        (a) a statement itemizing the rate at which taxes have
6    been extended for each of the taxing districts in the
7    county in whose district the property is located, and in
8    those counties utilizing electronic data processing
9    equipment the dollar amount of tax due from the person
10    assessed allocable to each of those taxing districts,
11    including a separate statement of the dollar amount of tax
12    due which is allocable to a tax levied under the Illinois
13    Local Library Act or to any other tax levied by a
14    municipality or township for public library purposes,
15        (b) a separate statement for each of the taxing
16    districts of the dollar amount of tax due which is
17    allocable to a tax levied under the Illinois Pension Code
18    or to any other tax levied by a municipality or township
19    for public pension or retirement purposes; provided,
20    however, there shall be a separate statement of the dollar
21    amount of tax due which is allocable to the Pension
22    Stabilization Levy under Articles 8 and 11 of the Illinois
23    Pension Code,
24        (c) the total tax rate,
25        (d) the total amount of tax due, and

 

 

09800SB1922ham004- 4 -LRB098 09566 EFG 58082 a

1        (e) the amount by which the total tax and the tax
2    allocable to each taxing district differs from the
3    taxpayer's last prior tax bill.
4    The county treasurer shall ensure that only those taxing
5districts in which a parcel of property is located shall be
6listed on the bill for that property.
7    In all counties the statement shall also provide:
8        (1) the property index number or other suitable
9    description,
10        (2) the assessment of the property,
11        (3) the statutory amount of each homestead exemption
12    applied to the property,
13        (4) the assessed value of the property after
14    application of all homestead exemptions,
15        (5) the equalization factors imposed by the county and
16    by the Department, and
17        (6) the equalized assessment resulting from the
18    application of the equalization factors to the basic
19    assessment.
20    In all counties which do not classify property for purposes
21of taxation, for property on which a single family residence is
22situated the statement shall also include a statement to
23reflect the fair cash value determined for the property. In all
24counties which classify property for purposes of taxation in
25accordance with Section 4 of Article IX of the Illinois
26Constitution, for parcels of residential property in the lowest

 

 

09800SB1922ham004- 5 -LRB098 09566 EFG 58082 a

1assessment classification the statement shall also include a
2statement to reflect the fair cash value determined for the
3property.
4    In all counties, the statement must include information
5that certain taxpayers may be eligible for tax exemptions,
6abatements, and other assistance programs and that, for more
7information, taxpayers should consult with the office of their
8township or county assessor and with the Illinois Department of
9Revenue.
10    In all counties, the statement shall include information
11that certain taxpayers may be eligible for the Senior Citizens
12and Disabled Persons Property Tax Relief Act and that
13applications are available from the Illinois Department on
14Aging.
15    In counties which use the estimated or accelerated billing
16methods, these statements shall only be provided with the final
17installment of taxes due. The provisions of this Section create
18a mandatory statutory duty. They are not merely directory or
19discretionary. The failure or neglect of the collector to mail
20the bill, or the failure of the taxpayer to receive the bill,
21shall not affect the validity of any tax, or the liability for
22the payment of any tax.
23(Source: P.A. 97-689, eff. 6-14-12; 98-93, eff. 7-16-13.)
 
24    Section 10. The Illinois Pension Code is amended by
25changing Sections 1-160, 8-137, 8-137.1, 8-173, 8-174, 8-192,

 

 

09800SB1922ham004- 6 -LRB098 09566 EFG 58082 a

111-134.1, 11-134.3, 11-169, 11-170, and 11-181 and by adding
2Sections 8-173.1, 8-174.2, 11-169.1, and 11-179.1 as follows:
 
3    (40 ILCS 5/1-160)
4    (Text of Section before amendment by P.A. 98-622)
5    Sec. 1-160. Provisions applicable to new hires.
6    (a) The provisions of this Section apply to a person who,
7on or after January 1, 2011, first becomes a member or a
8participant under any reciprocal retirement system or pension
9fund established under this Code, other than a retirement
10system or pension fund established under Article 2, 3, 4, 5, 6,
1115 or 18 of this Code, notwithstanding any other provision of
12this Code to the contrary, but do not apply to any self-managed
13plan established under this Code, to any person with respect to
14service as a sheriff's law enforcement employee under Article
157, or to any participant of the retirement plan established
16under Section 22-101. Notwithstanding anything to the contrary
17in this Section, for purposes of this Section, a person who
18participated in a retirement system under Article 15 prior to
19January 1, 2011 shall be deemed a person who first became a
20member or participant prior to January 1, 2011 under any
21retirement system or pension fund subject to this Section. The
22changes made to this Section by Public Act 98-596 this
23amendatory Act of the 98th General Assembly are a clarification
24of existing law and are intended to be retroactive to the
25effective date of Public Act 96-889, notwithstanding the

 

 

09800SB1922ham004- 7 -LRB098 09566 EFG 58082 a

1provisions of Section 1-103.1 of this Code.
2    (b) "Final average salary" means the average monthly (or
3annual) salary obtained by dividing the total salary or
4earnings calculated under the Article applicable to the member
5or participant during the 96 consecutive months (or 8
6consecutive years) of service within the last 120 months (or 10
7years) of service in which the total salary or earnings
8calculated under the applicable Article was the highest by the
9number of months (or years) of service in that period. For the
10purposes of a person who first becomes a member or participant
11of any retirement system or pension fund to which this Section
12applies on or after January 1, 2011, in this Code, "final
13average salary" shall be substituted for the following:
14        (1) In Article 7 (except for service as sheriff's law
15    enforcement employees), "final rate of earnings".
16        (2) In Articles 8, 9, 10, 11, and 12, "highest average
17    annual salary for any 4 consecutive years within the last
18    10 years of service immediately preceding the date of
19    withdrawal".
20        (3) In Article 13, "average final salary".
21        (4) In Article 14, "final average compensation".
22        (5) In Article 17, "average salary".
23        (6) In Section 22-207, "wages or salary received by him
24    at the date of retirement or discharge".
25    (b-5) Beginning on January 1, 2011, for all purposes under
26this Code (including without limitation the calculation of

 

 

09800SB1922ham004- 8 -LRB098 09566 EFG 58082 a

1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10    For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the average
13change in prices of goods and services purchased by all urban
14consumers, United States city average, all items, 1982-84 =
15100. The new amount resulting from each annual adjustment shall
16be determined by the Public Pension Division of the Department
17of Insurance and made available to the boards of the retirement
18systems and pension funds by November 1 of each year.
19    (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 and has at least 10 years of service credit and is otherwise
22eligible under the requirements of the applicable Article.
23    A member or participant who has attained age 62 and has at
24least 10 years of service credit and is otherwise eligible
25under the requirements of the applicable Article may elect to
26receive the lower retirement annuity provided in subsection (d)

 

 

09800SB1922ham004- 9 -LRB098 09566 EFG 58082 a

1of this Section.
2    (d) The retirement annuity of a member or participant who
3is retiring after attaining age 62 with at least 10 years of
4service credit shall be reduced by one-half of 1% for each full
5month that the member's age is under age 67.
6    (e) Any retirement annuity or supplemental annuity shall be
7subject to annual increases on the January 1 occurring either
8on or after the attainment of age 67 or the first anniversary
9of the annuity start date, whichever is later. Each annual
10increase shall be calculated at 3% or one-half the annual
11unadjusted percentage increase (but not less than zero) in the
12consumer price index-u for the 12 months ending with the
13September preceding each November 1, whichever is less, of the
14originally granted retirement annuity. If the annual
15unadjusted percentage change in the consumer price index-u for
16the 12 months ending with the September preceding each November
171 is zero or there is a decrease, then the annuity shall not be
18increased.
19    (f) The initial survivor's or widow's annuity of an
20otherwise eligible survivor or widow of a retired member or
21participant who first became a member or participant on or
22after January 1, 2011 shall be in the amount of 66 2/3% of the
23retired member's or participant's retirement annuity at the
24date of death. In the case of the death of a member or
25participant who has not retired and who first became a member
26or participant on or after January 1, 2011, eligibility for a

 

 

09800SB1922ham004- 10 -LRB098 09566 EFG 58082 a

1survivor's or widow's annuity shall be determined by the
2applicable Article of this Code. The initial benefit shall be
366 2/3% of the earned annuity without a reduction due to age. A
4child's annuity of an otherwise eligible child shall be in the
5amount prescribed under each Article if applicable. Any
6survivor's or widow's annuity shall be increased (1) on each
7January 1 occurring on or after the commencement of the annuity
8if the deceased member died while receiving a retirement
9annuity or (2) in other cases, on each January 1 occurring
10after the first anniversary of the commencement of the annuity.
11Each annual increase shall be calculated at 3% or one-half the
12annual unadjusted percentage increase (but not less than zero)
13in the consumer price index-u for the 12 months ending with the
14September preceding each November 1, whichever is less, of the
15originally granted survivor's annuity. If the annual
16unadjusted percentage change in the consumer price index-u for
17the 12 months ending with the September preceding each November
181 is zero or there is a decrease, then the annuity shall not be
19increased.
20    (g) The benefits in Section 14-110 apply only if the person
21is a State policeman, a fire fighter in the fire protection
22service of a department, or a security employee of the
23Department of Corrections or the Department of Juvenile
24Justice, as those terms are defined in subsection (b) of
25Section 14-110. A person who meets the requirements of this
26Section is entitled to an annuity calculated under the

 

 

09800SB1922ham004- 11 -LRB098 09566 EFG 58082 a

1provisions of Section 14-110, in lieu of the regular or minimum
2retirement annuity, only if the person has withdrawn from
3service with not less than 20 years of eligible creditable
4service and has attained age 60, regardless of whether the
5attainment of age 60 occurs while the person is still in
6service.
7    (h) If a person who first becomes a member or a participant
8of a retirement system or pension fund subject to this Section
9on or after January 1, 2011 is receiving a retirement annuity
10or retirement pension under that system or fund and becomes a
11member or participant under any other system or fund created by
12this Code and is employed on a full-time basis, except for
13those members or participants exempted from the provisions of
14this Section under subsection (a) of this Section, then the
15person's retirement annuity or retirement pension under that
16system or fund shall be suspended during that employment. Upon
17termination of that employment, the person's retirement
18annuity or retirement pension payments shall resume and be
19recalculated if recalculation is provided for under the
20applicable Article of this Code.
21    If a person who first becomes a member of a retirement
22system or pension fund subject to this Section on or after
23January 1, 2012 and is receiving a retirement annuity or
24retirement pension under that system or fund and accepts on a
25contractual basis a position to provide services to a
26governmental entity from which he or she has retired, then that

 

 

09800SB1922ham004- 12 -LRB098 09566 EFG 58082 a

1person's annuity or retirement pension earned as an active
2employee of the employer shall be suspended during that
3contractual service. A person receiving an annuity or
4retirement pension under this Code shall notify the pension
5fund or retirement system from which he or she is receiving an
6annuity or retirement pension, as well as his or her
7contractual employer, of his or her retirement status before
8accepting contractual employment. A person who fails to submit
9such notification shall be guilty of a Class A misdemeanor and
10required to pay a fine of $1,000. Upon termination of that
11contractual employment, the person's retirement annuity or
12retirement pension payments shall resume and, if appropriate,
13be recalculated under the applicable provisions of this Code.
14    (i) (Blank).
15    (j) In the case of a conflict between the provisions of
16this Section and any other provision of this Code, the
17provisions of this Section shall control.
18(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
19eff. 11-19-13; revised 1-23-14.)
 
20    (Text of Section after amendment by P.A. 98-622)
21    Sec. 1-160. Provisions applicable to new hires.
22    (a) The provisions of this Section apply to a person who,
23on or after January 1, 2011, first becomes a member or a
24participant under any reciprocal retirement system or pension
25fund established under this Code, other than a retirement

 

 

09800SB1922ham004- 13 -LRB098 09566 EFG 58082 a

1system or pension fund established under Article 2, 3, 4, 5, 6,
215 or 18 of this Code, notwithstanding any other provision of
3this Code to the contrary, but do not apply to any self-managed
4plan established under this Code, to any person with respect to
5service as a sheriff's law enforcement employee under Article
67, or to any participant of the retirement plan established
7under Section 22-101. Notwithstanding anything to the contrary
8in this Section, for purposes of this Section, a person who
9participated in a retirement system under Article 15 prior to
10January 1, 2011 shall be deemed a person who first became a
11member or participant prior to January 1, 2011 under any
12retirement system or pension fund subject to this Section. The
13changes made to this Section by Public Act 98-596 this
14amendatory Act of the 98th General Assembly are a clarification
15of existing law and are intended to be retroactive to the
16effective date of Public Act 96-889, notwithstanding the
17provisions of Section 1-103.1 of this Code.
18    (b) "Final average salary" means the average monthly (or
19annual) salary obtained by dividing the total salary or
20earnings calculated under the Article applicable to the member
21or participant during the 96 consecutive months (or 8
22consecutive years) of service within the last 120 months (or 10
23years) of service in which the total salary or earnings
24calculated under the applicable Article was the highest by the
25number of months (or years) of service in that period. For the
26purposes of a person who first becomes a member or participant

 

 

09800SB1922ham004- 14 -LRB098 09566 EFG 58082 a

1of any retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4        (1) In Article 7 (except for service as sheriff's law
5    enforcement employees), "final rate of earnings".
6        (2) In Articles 8, 9, 10, 11, and 12, "highest average
7    annual salary for any 4 consecutive years within the last
8    10 years of service immediately preceding the date of
9    withdrawal".
10        (3) In Article 13, "average final salary".
11        (4) In Article 14, "final average compensation".
12        (5) In Article 17, "average salary".
13        (6) In Section 22-207, "wages or salary received by him
14    at the date of retirement or discharge".
15    (b-5) Beginning on January 1, 2011, for all purposes under
16this Code (including without limitation the calculation of
17benefits and employee contributions), the annual earnings,
18salary, or wages (based on the plan year) of a member or
19participant to whom this Section applies shall not exceed
20$106,800; however, that amount shall annually thereafter be
21increased by the lesser of (i) 3% of that amount, including all
22previous adjustments, or (ii) one-half the annual unadjusted
23percentage increase (but not less than zero) in the consumer
24price index-u for the 12 months ending with the September
25preceding each November 1, including all previous adjustments.
26    For the purposes of this Section, "consumer price index-u"

 

 

09800SB1922ham004- 15 -LRB098 09566 EFG 58082 a

1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the average
3change in prices of goods and services purchased by all urban
4consumers, United States city average, all items, 1982-84 =
5100. The new amount resulting from each annual adjustment shall
6be determined by the Public Pension Division of the Department
7of Insurance and made available to the boards of the retirement
8systems and pension funds by November 1 of each year.
9    (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (beginning January 1, 2015, age 65 with respect to service
12under Article 8, 11, or 12 of this Code that is subject to this
13Section) and has at least 10 years of service credit and is
14otherwise eligible under the requirements of the applicable
15Article.
16    A member or participant who has attained age 62 (beginning
17January 1, 2015, age 60 with respect to service under Article
188, 11, or 12 of this Code that is subject to this Section) and
19has at least 10 years of service credit and is otherwise
20eligible under the requirements of the applicable Article may
21elect to receive the lower retirement annuity provided in
22subsection (d) of this Section.
23    (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (beginning January 1, 2015,
25age 60 with respect to service under Article 8, 11, or 12 of
26this Code that is subject to this Section) with at least 10

 

 

09800SB1922ham004- 16 -LRB098 09566 EFG 58082 a

1years of service credit shall be reduced by one-half of 1% for
2each full month that the member's age is under age 67
3(beginning January 1, 2015, age 65 with respect to service
4under Article 8, 11, or 12 of this Code that is subject to this
5Section).
6    (e) Any retirement annuity or supplemental annuity shall be
7subject to annual increases on the January 1 occurring either
8on or after the attainment of age 67 (beginning January 1,
92015, age 65 with respect to service under Article 8, 11, or 12
10of this Code that is subject to this Section) or the first
11anniversary (the second anniversary with respect to service
12under Article 8 or 11) of the annuity start date, whichever is
13later. Each annual increase shall be calculated at 3% or
14one-half the annual unadjusted percentage increase (but not
15less than zero) in the consumer price index-u for the 12 months
16ending with the September preceding each November 1, whichever
17is less, of the originally granted retirement annuity. If the
18annual unadjusted percentage change in the consumer price
19index-u for the 12 months ending with the September preceding
20each November 1 is zero or there is a decrease, then the
21annuity shall not be increased.
22    Notwithstanding any provision of this Section to the
23contrary, with respect to service under Article 8 or 11 of this
24Code that is subject to this Section, no annual increase under
25this subsection shall be paid or accrue to any person in year
262025. In all other years, the Fund shall continue to pay annual

 

 

09800SB1922ham004- 17 -LRB098 09566 EFG 58082 a

1increases as provided in this Section.
2    Notwithstanding Section 1-103.1 of this Code, the changes
3in this amendatory Act of the 98th General Assembly are
4applicable without regard to whether the employee was in active
5service on or after the effective date of this amendatory Act
6of the 98th General Assembly.
7    (f) The initial survivor's or widow's annuity of an
8otherwise eligible survivor or widow of a retired member or
9participant who first became a member or participant on or
10after January 1, 2011 shall be in the amount of 66 2/3% of the
11retired member's or participant's retirement annuity at the
12date of death. In the case of the death of a member or
13participant who has not retired and who first became a member
14or participant on or after January 1, 2011, eligibility for a
15survivor's or widow's annuity shall be determined by the
16applicable Article of this Code. The initial benefit shall be
1766 2/3% of the earned annuity without a reduction due to age. A
18child's annuity of an otherwise eligible child shall be in the
19amount prescribed under each Article if applicable. Any
20survivor's or widow's annuity shall be increased (1) on each
21January 1 occurring on or after the commencement of the annuity
22if the deceased member died while receiving a retirement
23annuity or (2) in other cases, on each January 1 occurring
24after the first anniversary of the commencement of the annuity.
25Each annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

09800SB1922ham004- 18 -LRB098 09566 EFG 58082 a

1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted survivor's annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5the 12 months ending with the September preceding each November
61 is zero or there is a decrease, then the annuity shall not be
7increased.
8    (g) The benefits in Section 14-110 apply only if the person
9is a State policeman, a fire fighter in the fire protection
10service of a department, or a security employee of the
11Department of Corrections or the Department of Juvenile
12Justice, as those terms are defined in subsection (b) of
13Section 14-110. A person who meets the requirements of this
14Section is entitled to an annuity calculated under the
15provisions of Section 14-110, in lieu of the regular or minimum
16retirement annuity, only if the person has withdrawn from
17service with not less than 20 years of eligible creditable
18service and has attained age 60, regardless of whether the
19attainment of age 60 occurs while the person is still in
20service.
21    (h) If a person who first becomes a member or a participant
22of a retirement system or pension fund subject to this Section
23on or after January 1, 2011 is receiving a retirement annuity
24or retirement pension under that system or fund and becomes a
25member or participant under any other system or fund created by
26this Code and is employed on a full-time basis, except for

 

 

09800SB1922ham004- 19 -LRB098 09566 EFG 58082 a

1those members or participants exempted from the provisions of
2this Section under subsection (a) of this Section, then the
3person's retirement annuity or retirement pension under that
4system or fund shall be suspended during that employment. Upon
5termination of that employment, the person's retirement
6annuity or retirement pension payments shall resume and be
7recalculated if recalculation is provided for under the
8applicable Article of this Code.
9    If a person who first becomes a member of a retirement
10system or pension fund subject to this Section on or after
11January 1, 2012 and is receiving a retirement annuity or
12retirement pension under that system or fund and accepts on a
13contractual basis a position to provide services to a
14governmental entity from which he or she has retired, then that
15person's annuity or retirement pension earned as an active
16employee of the employer shall be suspended during that
17contractual service. A person receiving an annuity or
18retirement pension under this Code shall notify the pension
19fund or retirement system from which he or she is receiving an
20annuity or retirement pension, as well as his or her
21contractual employer, of his or her retirement status before
22accepting contractual employment. A person who fails to submit
23such notification shall be guilty of a Class A misdemeanor and
24required to pay a fine of $1,000. Upon termination of that
25contractual employment, the person's retirement annuity or
26retirement pension payments shall resume and, if appropriate,

 

 

09800SB1922ham004- 20 -LRB098 09566 EFG 58082 a

1be recalculated under the applicable provisions of this Code.
2    (i) (Blank).
3    (j) In the case of a conflict between the provisions of
4this Section and any other provision of this Code, the
5provisions of this Section shall control.
6(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
7eff. 11-19-13; 98-622, eff. 6-1-14; revised 1-23-14.)
 
8    (40 ILCS 5/8-137)   (from Ch. 108 1/2, par. 8-137)
9    Sec. 8-137. Automatic increase in annuity.
10    (a) An employee who retired or retires from service after
11December 31, 1959 and before January 1, 1987, having attained
12age 60 or more, shall, in January of the year after the year in
13which the first anniversary of retirement occurs, have the
14amount of his then fixed and payable monthly annuity increased
15by 1 1/2%, and such first fixed annuity as granted at
16retirement increased by a further 1 1/2% in January of each
17year thereafter. Beginning with January of the year 1972, such
18increases shall be at the rate of 2% in lieu of the aforesaid
19specified 1 1/2%, and beginning with January of the year 1984
20such increases shall be at the rate of 3%. Beginning in January
21of 1999, such increases shall be at the rate of 3% of the
22currently payable monthly annuity, including any increases
23previously granted under this Article. An employee who retires
24on annuity after December 31, 1959 and before January 1, 1987,
25but before age 60, shall receive such increases beginning in

 

 

09800SB1922ham004- 21 -LRB098 09566 EFG 58082 a

1January of the year after the year in which he attains age 60.
2    An employee who retires from service on or after January 1,
31987 shall, upon the first annuity payment date following the
4first anniversary of the date of retirement, or upon the first
5annuity payment date following attainment of age 60, whichever
6occurs later, have his then fixed and payable monthly annuity
7increased by 3%, and such annuity shall be increased by an
8additional 3% of the original fixed annuity on the same date
9each year thereafter. Beginning in January of 1999, such
10increases shall be at the rate of 3% of the currently payable
11monthly annuity, including any increases previously granted
12under this Article.
13    (a-5) Notwithstanding the provisions of subsection (a),
14upon the first annuity payment date following (1) the third
15anniversary of retirement, (2) the attainment of age 53, or (3)
16January 1, 2002, whichever occurs latest, the monthly annuity
17of an employee who retires on annuity prior to the attainment
18of age 60 and has not received an increase under subsection (a)
19shall be increased by 3%, and the annuity shall be increased by
20an additional 3% of the current payable monthly annuity,
21including any increases previously granted under this Article,
22on the same date each year thereafter. The increases provided
23under this subsection are in lieu of the increases provided in
24subsection (a).
25    (a-6) Notwithstanding the provisions of subsections (a)
26and (a-5), for all calendar years following the year in which

 

 

09800SB1922ham004- 22 -LRB098 09566 EFG 58082 a

1this amendatory Act of the 93rd General Assembly takes effect,
2an increase in annuity under this Section that would otherwise
3take effect at any time during the year shall instead take
4effect in January of that year.
5    (b) Subsections (a), (a-5), and (a-6) are not applicable to
6an employee retiring and receiving a term annuity, as herein
7defined, nor to any otherwise qualified employee who retires
8before he makes employee contributions (at the 1/2 of 1% rate
9as provided in this Act) for this additional annuity for not
10less than the equivalent of one full year. Such employee,
11however, shall make arrangement to pay to the fund a balance of
12such 1/2 of 1% contributions, based on his final salary, as
13will bring such 1/2 of 1% contributions, computed without
14interest, to the equivalent of or completion of one year's
15contributions.
16    Beginning with January, 1960, each employee shall
17contribute by means of salary deductions 1/2 of 1% of each
18salary payment, concurrently with and in addition to the
19employee contributions otherwise made for annuity purposes.
20    Each such additional contribution shall be credited to an
21account in the prior service annuity reserve, to be used,
22together with city contributions, to defray the cost of the
23specified annuity increments. Any balance in such account at
24the beginning of each calendar year shall be credited with
25interest at the rate of 3% per annum.
26    Such additional employee contributions are not refundable,

 

 

09800SB1922ham004- 23 -LRB098 09566 EFG 58082 a

1except to an employee who withdraws and applies for refund
2under this Article, and in cases where a term annuity becomes
3payable. In such cases his contributions shall be refunded,
4without interest, and charged to such account in the prior
5service annuity reserve.
6    (b-5) Notwithstanding any provision of this Section to the
7contrary, there shall be no annual increase under this Section
8in years 2017, 2019, and 2025. In all other years, beginning
9January 1, 2015, the Fund shall pay an annual increase to
10persons eligible to receive one under this Section, in lieu of
11any other annual increase provided under this Section, in an
12amount equal to the lesser of 3% or one-half the annual
13unadjusted percentage increase (but not less than zero) in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1, of the person's last
16annual annuity amount prior to January 1, 2015. If a person was
17not granted an annuity before the effective date of this
18amendatory Act of the 98th General Assembly, then this
19calculation shall be based on his or her originally granted
20annuity; provided, however, that a person retiring after the
21effective date of this amendatory Act of the 98th General
22Assembly shall not be eligible for an annual increase under
23this Section until one full year after the date on which such
24annual increase otherwise would take effect under this Section.
25    For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

09800SB1922ham004- 24 -LRB098 09566 EFG 58082 a

1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100.
5    Notwithstanding Section 1-103.1, this subsection (b-5) is
6applicable without regard to whether the employee was in active
7service on or after the effective date of this amendatory Act
8of the 98th General Assembly. This subsection (b-5) applies to
9any former employee who on or after the effective date of this
10amendatory Act of the 98th General Assembly is receiving a
11retirement annuity and is eligible for an automatic annual
12increase under this Section.
13(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
1493-654, eff. 1-16-04.)
 
15    (40 ILCS 5/8-137.1)  (from Ch. 108 1/2, par. 8-137.1)
16    Sec. 8-137.1. Automatic increases in annuity for certain
17heretofore retired participants. A retired municipal employee
18who (a) is receiving annuity based on a service credit of 20 or
19more years regardless of age at retirement or based on a
20service credit of 15 or more years with retirement at age 55 or
21over, and (b) does not qualify for the automatic increases in
22annuity provided for in Section 8-137 of this Article, and (c)
23elects to make a contribution to the Fund at a time and manner
24prescribed by the Retirement Board, of a sum equal to 1% of the
25amount of final monthly salary times the number of full years

 

 

09800SB1922ham004- 25 -LRB098 09566 EFG 58082 a

1of service on which the annuity was based in those cases where
2the annuity was computed on the money purchase formula and in
3those cases in which the annuity was computed under the minimum
4annuity formula provisions of this Article a sum equal to 1% of
5the average monthly salary on which the annuity was based times
6such number of full years of service, shall have his original
7fixed and payable monthly amount of annuity increased in
8January of the year following the year in which he attains the
9age of 65 years, if such age of 65 years is attained in the year
101969 or later, by an amount equal to 1-1/2%, and by an equal
11additional 1-1/2% in January of each year thereafter. Beginning
12with January of the year 1972, such increases shall be at the
13rate of 2% in lieu of the aforesaid specified 1 1/2%, and
14beginning January of the year 1984 such increases shall be at
15the rate of 3%. Beginning in January of 1999, such increases
16shall be at the rate of 3% of the currently payable monthly
17annuity, including any increases previously granted under this
18Article.
19    Whenever the retired municipal employee receiving annuity
20has attained the age of 66 or more in 1969, he shall have such
21annuity increased in January, 1970 by an amount equal to 1-1/2%
22multiplied by the number equal to the number of months of
23January elapsing from and including January of the year
24immediately following the year he attained the age of 65 if
25retired at or before age 65, or from and including January of
26the year immediately following the year of retirement if

 

 

09800SB1922ham004- 26 -LRB098 09566 EFG 58082 a

1retired at an age greater than 65, to and including January,
21970, and by an equal additional 1-1/2% in January of each year
3thereafter. Beginning with January of the year 1972, such
4increases shall be at the rate of 2% in lieu of the aforesaid
5specified 1 1/2%, and beginning January of the year 1984 such
6increases shall be at the rate of 3%. Beginning in January of
71999, such increases shall be at the rate of 3% of the
8currently payable monthly annuity, including any increases
9previously granted under this Article.
10    To defray the annual cost of such increases, the annual
11interest income of the Fund, accruing from investments held by
12the Fund, exclusive of gains or losses on sales or exchanges of
13assets during the year, over and above 4% a year, shall be used
14to the extent necessary and available to finance the cost of
15such increases for the following year, and such amount shall be
16transferred as of the end of each year, beginning with the year
171969, to a Fund account designated as the Supplementary Payment
18Reserve from the Investment and Interest Reserve set forth in
19Section 8-221. The sums contributed by annuitants as provided
20for in this Section shall also be placed in the aforesaid
21Supplementary Payment Reserve and shall be applied and used for
22the purposes of such Fund account, together with the aforesaid
23interest.
24    In the event the monies in the Supplementary Payment
25Reserve in any year arising from: (1) the available interest
26income as defined hereinbefore and accruing in the preceding

 

 

09800SB1922ham004- 27 -LRB098 09566 EFG 58082 a

1year above 4% a year and (2) the contributions by retired
2persons, as set forth hereinbefore, are insufficient to make
3the total payments to all persons estimated to be entitled to
4the annuity increases specified hereinbefore, then (3) any
5interest earnings over 4% a year beginning with the year 1969
6which were not previously used to finance such increases and
7which were transferred to the Prior Service Annuity Reserve may
8be used to the extent necessary and available to provide
9sufficient funds to finance such increases for the current
10year, and such sums shall be transferred from the Prior Service
11Annuity Reserve.
12    In the event the total monies available in the
13Supplementary Payment Reserve from the preceding indicated
14sources are insufficient to make the total payments to all
15persons entitled to such increases for the year, a
16proportionate amount computed as the ratio of the monies
17available to the total of the total payments for that year
18shall be paid to each person for that year.
19    The Fund shall be obligated for the payment of the
20increases in annuity as provided for in this Section only to
21the extent that the assets for such purpose, as specified
22herein, are available.
23    Notwithstanding any provision of this Section to the
24contrary, there shall be no annual increase under this Section
25in years 2017, 2019, and 2025. In all other years, beginning
26January 1, 2015, the Fund shall pay an annual increase to

 

 

09800SB1922ham004- 28 -LRB098 09566 EFG 58082 a

1persons eligible to receive one under this Section, in lieu of
2any other annual increase provided under this Section, in an
3amount equal to the lesser of 3% or one-half the annual
4unadjusted percentage increase (but not less than zero) in the
5consumer price index-u for the 12 months ending with the
6September preceding each November 1, of the person's last
7annual annuity amount prior to January 1, 2015.
8    For purposes of this Section, "consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the average
11change in prices of goods and services purchased by all urban
12consumers, United States city average, all items, 1982-84 =
13100.
14    Notwithstanding Section 1-103.1, the changes made to this
15Section by this amendatory Act of the 98th General Assembly are
16applicable without regard to whether the employee was in active
17service on or after the effective date of this amendatory Act.
18These changes apply to any former employee who, on or after the
19effective date of this amendatory Act, is receiving a
20retirement annuity and is eligible for an automatic annual
21increase under this Section.
22(Source: P.A. 90-766, eff. 8-14-98.)
 
23    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
24    Sec. 8-173. Financing; tax levies levy.
25    (a) Except as provided in subsection (f) of this Section,

 

 

09800SB1922ham004- 29 -LRB098 09566 EFG 58082 a

1the city council of the city shall levy a tax annually upon all
2taxable property in the city at a rate that will produce a sum
3which, when added to the amounts deducted from the salaries of
4the employees or otherwise contributed by them and the amounts
5deposited under subsection (f), will be sufficient for the
6requirements of this Article, but which when extended will
7produce an amount not to exceed the greater of the following:
8(a) the sum obtained by the levy of a tax of .1093% of the
9value, as equalized or assessed by the Department of Revenue,
10of all taxable property within such city, or (b) the sum of
11$12,000,000. However any city in which a Fund has been
12established and in operation under this Article for more than 3
13years prior to 1970 shall levy for the year 1970 a tax at a rate
14on the dollar of assessed valuation of all taxable property
15that will produce, when extended, an amount not to exceed 1.2
16times the total amount of contributions made by employees to
17the Fund for annuity purposes in the calendar year 1968, and,
18for the year 1971 and 1972 such levy that will produce, when
19extended, an amount not to exceed 1.3 times the total amount of
20contributions made by employees to the Fund for annuity
21purposes in the calendar years 1969 and 1970, respectively; and
22for the year 1973 an amount not to exceed 1.365 times such
23total amount of contributions made by employees for annuity
24purposes in the calendar year 1971; and for the year 1974 an
25amount not to exceed 1.430 times such total amount of
26contributions made by employees for annuity purposes in the

 

 

09800SB1922ham004- 30 -LRB098 09566 EFG 58082 a

1calendar year 1972; and for the year 1975 an amount not to
2exceed 1.495 times such total amount of contributions made by
3employees for annuity purposes in the calendar year 1973; and
4for the year 1976 an amount not to exceed 1.560 times such
5total amount of contributions made by employees for annuity
6purposes in the calendar year 1974; and for the year 1977 an
7amount not to exceed 1.625 times such total amount of
8contributions made by employees for annuity purposes in the
9calendar year 1975; and for the year 1978 and each year
10thereafter, such levy as will produce, when extended, an amount
11not to exceed the total amount of contributions made by or on
12behalf of employees to the Fund for annuity purposes in the
13calendar year 2 years prior to the year for which the annual
14applicable tax is levied, multiplied by 1.690 for the years
151978 through 1998 and by 1.250 for the year 1999 and for each
16year thereafter.
17    The tax shall be levied and collected in like manner with
18the general taxes of the city, and shall be exclusive of and in
19addition to the amount of tax the city is now or may hereafter
20be authorized to levy for general purposes under any laws which
21may limit the amount of tax which the city may levy for general
22purposes. The county clerk of the county in which the city is
23located, in reducing tax levies under the provisions of any Act
24concerning the levy and extension of taxes, shall not consider
25the tax herein provided for as a part of the general tax levy
26for city purposes, and shall not include the same within any

 

 

09800SB1922ham004- 31 -LRB098 09566 EFG 58082 a

1limitation of the percent of the assessed valuation upon which
2taxes are required to be extended for such city.
3    Revenues derived from such tax shall be paid to the city
4treasurer of the city as collected and held by him for the
5benefit of the fund.
6    If the payments on account of taxes are insufficient during
7any year to meet the requirements of this Article, the city may
8issue tax anticipation warrants against the current tax levy.
9    (a-1) Notwithstanding anything to the contrary in
10subsection (a) of this Section, beginning with the city's levy
11under subsection (a) in 2015 and each year thereafter, the levy
12shall not exceed the amount of the city's total contribution to
13the Fund under this Section for payment year 2014; provided,
14however, that the city may continue to use other lawfully
15available funds in lieu of all or part of the levy as provided
16under subsection (f) of this Section. The increases that would
17have occurred under subsection (a) of this Section if not for
18the aforementioned limitation shall be included in the
19calculations under subsection (a-2) of this Section for levy
20purposes.
21    (a-2) For purposes of this Section, the payment year is the
22year following the levy year. Starting in payment year 2016,
23the city shall pay to the Fund annually, in the manner
24described in this subsection, an amount that, when added to the
25amounts of the contribution provided in subsection (a) of this
26Section as modified by subsection (a-1) of this Section, shall

 

 

09800SB1922ham004- 32 -LRB098 09566 EFG 58082 a

1equal the lesser of:
2        (i) (I) for payment years 2016 through 2055, the annual
3    amount determined by the Fund to be equal to the greater of
4    $0, or the sum of (1) the City's portion of the projected
5    normal cost for that fiscal year, plus (2) an amount
6    determined on a level percentage of applicable employee
7    payroll basis (reflecting any limits on individual
8    participants' pay that apply for benefit and contribution
9    purposes under this plan) that is sufficient to bring the
10    total actuarial assets of the Fund up to 90% of the total
11    actuarial liabilities of the Fund by the end of 2055. (II)
12    For payment years after 2055, the annual amount determined
13    by the Fund to be equal to the amount needed, if any, to
14    bring the total actuarial assets of the Fund up to 90% of
15    the total actuarial liabilities of the Fund as of the end
16    of the year. In making the determinations under both (I)
17    and (II), the actuarial calculations shall be determined
18    under the entry age normal actuarial cost method, and any
19    actuarial gains or losses from investment return incurred
20    in a fiscal year shall be recognized in equal annual
21    amounts over the 5-year period following the fiscal year;
22    or
23        (ii) for payment year 2016, 1.85 times the total amount
24    of contributions made by or on behalf of employees to the
25    Fund for annuity purposes in the calendar year 2013; for
26    payment year 2017, 2.15 times the total amount of

 

 

09800SB1922ham004- 33 -LRB098 09566 EFG 58082 a

1    contributions made by or on behalf of employees to the Fund
2    for annuity purposes in the calendar year 2014; for payment
3    year 2018, 2.45 times the total amount of contributions
4    made by or on behalf of employees to the Fund for annuity
5    purposes in the calendar year 2015; for payment year 2019,
6    2.75 times the total amount of contributions made by or on
7    behalf of employees to the Fund for annuity purposes in the
8    calendar year 2016; for payment year 2020, 3.05 times the
9    total amount of contributions made by or on behalf of
10    employees to the Fund for annuity purposes in the calendar
11    year 2017; provided however, that beginning in the earlier
12    of the year that the annual contribution amount is at least
13    the amount calculated under subdivision (i), or payment
14    year 2021, and each year thereafter, the city's annual
15    contribution shall be determined pursuant to subdivision
16    (i) only.
17    (a-3) For levy years 2015 and thereafter, the city council
18of the city may levy a separate tax annually upon all taxable
19property in the city that shall be known as the Pension
20Stabilization Levy and shall be at a rate that, when extended,
21will produce an amount not to exceed the city's total required
22contribution amount under subsection (a-2) for each applicable
23payment year. The remainder of the city's total required
24contribution amount under subsection (a-2), if any, shall be
25paid by the city to the city treasurer of the city with any
26lawfully available funds, which shall be collected and held by

 

 

09800SB1922ham004- 34 -LRB098 09566 EFG 58082 a

1the city treasurer for the benefit of the Fund.
2    The Pension Stabilization Levy shall be levied and
3collected in like manner with the general taxes of the city,
4and shall be exclusive of and in addition to the amount of tax
5the city is now or may hereafter be authorized to levy for
6general purposes under any laws which may limit the amount of
7tax which the city may levy for general purposes. The county
8clerk of the county in which the city is located, in reducing
9tax levies under the provisions of any Act concerning the levy
10and extension of taxes, shall not consider the tax herein
11provided for as a part of the general tax levy for city
12purposes, and shall not include the same within any limitation
13of the percent of the assessed valuation upon which taxes are
14required to be extended for such city.
15    Revenues derived from such tax shall be used solely to
16satisfy the city's obligations to the Fund pursuant to
17subsection (a-2) and shall be paid to the city treasurer as
18collected and held by him for the benefit of the fund.
19    If the payments on account of taxes are insufficient during
20any year to meet the requirements of this Article, the city may
21issue tax anticipation warrants against the current tax levy.
22    (a-4) For levy years 2015 through 2020, if the city does
23not: (i) levy a tax under subsection (a-3) equal to at least
2450% of the city's required contribution under subsection (a-2);
25and (ii) transmit the proceeds of the levy to the Fund within
2690 days after the payment of that contribution is due, the Fund

 

 

09800SB1922ham004- 35 -LRB098 09566 EFG 58082 a

1may, after giving notice to the city, certify to the State
2Comptroller the amounts of the delinquent payment, and the
3Comptroller must, beginning in payment year 2016, deduct and
4deposit into the Fund the certified amount or a portion of that
5amount from the following proportions of grants of State funds
6to the city:
7        (1) in payment year 2016, one-third of the total amount
8    of any grants of State funds to the city;
9        (2) in payment year 2017, two-thirds of the total
10    amount of any grants of State funds to the city; and
11        (3) in payment years 2018 through 2021, the total
12    amount of any grants of State funds to the city.
13    The State Comptroller may not deduct from any grants of
14State funds to the city more than the amount of delinquent
15payment certified to the State Comptroller by the Fund.
16    (b) On or before January 10, annually, the board shall
17notify the city council of the requirements of this Article
18that the taxes tax herein provided shall be levied for that
19current year. The board shall compute the amounts necessary to
20be credited to the reserves established and maintained as
21herein provided, and shall make an annual determination of the
22amount of the required city contributions, and certify the
23results thereof to the city council.
24    (c) In respect to employees of the city who are transferred
25to the employment of a park district by virtue of the "Exchange
26of Functions Act of 1957", the corporate authorities of the

 

 

09800SB1922ham004- 36 -LRB098 09566 EFG 58082 a

1park district shall annually levy a tax upon all the taxable
2property in the park district at such rate per cent of the
3value of such property, as equalized or assessed by the
4Department of Revenue, as shall be sufficient, when added to
5the amounts deducted from their salaries and otherwise
6contributed by them to provide the benefits to which they and
7their dependents and beneficiaries are entitled under this
8Article. The city shall not levy a tax hereunder in respect to
9such employees.
10    The tax so levied by the park district shall be in addition
11to and exclusive of all other taxes authorized to be levied by
12the park district for corporate, annuity fund, or other
13purposes. The county clerk of the county in which the park
14district is located, in reducing any tax levied under the
15provisions of any act concerning the levy and extension of
16taxes shall not consider such tax as part of the general tax
17levy for park purposes, and shall not include the same in any
18limitation of the per cent of the assessed valuation upon which
19taxes are required to be extended for the park district. The
20proceeds of the tax levied by the park district, upon receipt
21by the district, shall be immediately paid over to the city
22treasurer of the city for the uses and purposes of the fund.
23    The various sums to be contributed by the city and park
24district and allocated for the purposes of this Article, and
25any interest to be contributed by the city, shall be derived
26from the revenue from the taxes authorized in this Section or

 

 

09800SB1922ham004- 37 -LRB098 09566 EFG 58082 a

1otherwise as expressly provided in this Section.
2    If it is not possible or practicable for the city to make
3contributions for age and service annuity and widow's annuity
4at the same time that employee contributions are made for such
5purposes, such city contributions shall be construed to be due
6and payable as of the end of the fiscal year for which the tax
7is levied and shall accrue thereafter with interest at the
8effective rate until paid.
9    (d) With respect to employees whose wages are funded as
10participants under the Comprehensive Employment and Training
11Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1293-567, 88 Stat. 1845), hereinafter referred to as CETA,
13subsequent to October 1, 1978, and in instances where the board
14has elected to establish a manpower program reserve, the board
15shall compute the amounts necessary to be credited to the
16manpower program reserves established and maintained as herein
17provided, and shall make a periodic determination of the amount
18of required contributions from the City to the reserve to be
19reimbursed by the federal government in accordance with rules
20and regulations established by the Secretary of the United
21States Department of Labor or his designee, and certify the
22results thereof to the City Council. Any such amounts shall
23become a credit to the City and will be used to reduce the
24amount which the City would otherwise contribute during
25succeeding years for all employees.
26    (e) In lieu of establishing a manpower program reserve with

 

 

09800SB1922ham004- 38 -LRB098 09566 EFG 58082 a

1respect to employees whose wages are funded as participants
2under the Comprehensive Employment and Training Act of 1973, as
3authorized by subsection (d), the board may elect to establish
4a special municipality contribution rate for all such
5employees. If this option is elected, the City shall contribute
6to the Fund from federal funds provided under the Comprehensive
7Employment and Training Act program at the special rate so
8established and such contributions shall become a credit to the
9City and be used to reduce the amount which the City would
10otherwise contribute during succeeding years for all
11employees.
12    (f) In lieu of levying all or a portion of the taxes tax
13required under this Section in any year, the city may deposit
14with the city treasurer no later than March 1 of that year for
15the benefit of the fund, to be held in accordance with this
16Article, an amount that, together with the taxes levied under
17this Section for that year, is not less than the amount of the
18city contributions for that year as certified by the board to
19the city council. The deposit may be derived from any source
20legally available for that purpose, including, but not limited
21to, the proceeds of city borrowings. The making of a deposit
22shall satisfy fully the requirements of this Section for that
23year to the extent of the amounts so deposited. Amounts
24deposited under this subsection may be used by the fund for any
25of the purposes for which the proceeds of the taxes tax levied
26by the city under this Section may be used, including the

 

 

09800SB1922ham004- 39 -LRB098 09566 EFG 58082 a

1payment of any amount that is otherwise required by this
2Article to be paid from the proceeds of those taxes that tax.
3(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
490-766, eff. 8-14-98.)
 
5    (40 ILCS 5/8-173.1 new)
6    Sec. 8-173.1. Funding Obligation.
7    (a) Beginning January 1, 2015, the city shall be obligated
8to contribute to the Fund in each fiscal year an amount not
9less than the amount determined annually under subsections (a)
10through (a-2) of Section 8-173 of this Code. Notwithstanding
11any other provision of law, if the city fails to pay the amount
12guaranteed under this Section on or before December 31 of the
13year in which such amount is due, the retirement board may
14bring a mandamus action in the Circuit Court of Cook County to
15compel the city to make the required payment, irrespective of
16other remedies that may be available to the Fund. The
17obligations and causes of action created under this Section
18shall be in addition to any other right or remedy otherwise
19accorded by common law or State or federal law, and nothing in
20this Section shall be construed to deny, abrogate, impair, or
21waive any such common law or statutory right or remedy.
22    (b) In ordering the city to make the required payment, the
23court may order a reasonable payment schedule to enable the
24city to make the required payment without significantly
25imperiling the public health, safety, or welfare. Any payments

 

 

09800SB1922ham004- 40 -LRB098 09566 EFG 58082 a

1required to be made by the city pursuant to this Section are
2expressly subordinated to the payment of the principal,
3interest, premium, if any, and other payments on or related to
4any bonded debt obligation of the city, either currently
5outstanding or to be issued, for which the source of repayment
6or security thereon is derived directly or indirectly from any
7funds collected or received by the city or collected or
8received on behalf of the city. Payments on such bonded
9obligations include any statutory fund transfers or other
10prefunding mechanisms or formulas set forth, now or hereafter,
11in State law, city ordinance, or bond indentures, into debt
12service funds or accounts of the city related to such bonded
13obligations, consistent with the payment schedules associated
14with such obligations.
 
15    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
16    Sec. 8-174. Contributions for age and service annuities for
17present employees and future entrants.
18    (a) Beginning on the effective date and prior to July 1,
191947, 3 1/4%; and beginning on July 1, 1947 and prior to July
201, 1953, 5%; and beginning July 1, 1953, and prior to January
211, 1972, 6%; and beginning January 1, 1972, 6.5%; and beginning
22January 1, 2015, and prior to January 1, 2016, 7.0%; and
23beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
24and, beginning January 1, 2017, and prior to January 1, 2018,
258.0%; and beginning January 1, 2018, and prior to January 1,

 

 

09800SB1922ham004- 41 -LRB098 09566 EFG 58082 a

12019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
26-1/2% of each payment of the salary of each present employee
3and future entrant shall be contributed to the fund as a
4deduction from salary for age and service annuity; provided,
5however, that beginning with the first pay period on or after
6the date when the funded ratio of the Fund is first determined
7to have reached the 90% funding goal set forth in subsection
8(a-2) of Section 8-173, and each pay period thereafter for as
9long as the Fund maintains a funding ratio of 90% or more,
10employee contributions shall be 7.75% of salary for the age and
11service annuity. If the funding ratio falls below 90%, then
12employee contributions for the age and service annuity shall
13revert to 9.0% of salary until such time as the Fund once again
14is determined to have reached a funding ratio of at least 90%,
15at which time employee contributions of 7.75% shall resume for
16the age and service annuity.
17    Notwithstanding Section 1-103.1, the changes to this
18Section made by this amendatory Act of the 98th General
19Assembly apply regardless of whether the employee was in active
20service on or after the effective date of this amendatory Act.
21    Such deductions beginning on the effective date and prior
22to July 1, 1947 shall be made for a future entrant while he is
23in the service until he attains age 65 and for a present
24employee while he is in the service until the amount so
25deducted from his salary with the amount deducted from his
26salary or paid by him according to law to any municipal pension

 

 

09800SB1922ham004- 42 -LRB098 09566 EFG 58082 a

1fund in force on the effective date with interest on both such
2amounts at 4% per annum equals the sum that would have been to
3his credit from sums deducted from his salary if deductions at
4the rate herein stated had been made during his entire service
5until he attained age 65 with interest at 4% per annum for the
6period subsequent to his attainment of age 65. Such deductions
7beginning July 1, 1947 shall be made and continued for
8employees while in the service.
9    (b) Concurrently with each employee contribution beginning
10on the effective date and prior to July 1, 1947 the city shall
11contribute 5 3/4%; and beginning on July 1, 1947 and prior to
12July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
13payment of such salary until the employee attains age 65.
14Notwithstanding any provision of this subsection (b) to the
15contrary, the city shall not make a contribution for any credit
16established by an employee under subsection (b) of Section
178-138.4.
18    (c) Each employee contribution made prior to the date the
19age and service annuity for an employee is fixed and each
20corresponding city contribution shall be credited to the
21employee and allocated to the account of the employee for whose
22benefit it is made.
23(Source: P.A. 93-654, eff. 1-16-04.)
 
24    (40 ILCS 5/8-174.2 new)
25    Sec. 8-174.2. Use of contributions for health care

 

 

09800SB1922ham004- 43 -LRB098 09566 EFG 58082 a

1subsidies. Except as may be required pursuant to Sections
28-164.1 and 8-164.2 of this Code, the Fund shall not use any
3contribution received by the Fund under this Article to provide
4a subsidy for the cost of participation in a retiree health
5care program.
 
6    (40 ILCS 5/8-192)  (from Ch. 108 1/2, par. 8-192)
7    Sec. 8-192. Board created. Notwithstanding any other
8provision of this Article:
9        (1) After discussion with the board and other
10    interested parties, the city shall present to the General
11    Assembly its recommendations for restructuring the board
12    of the Fund.
13        (2) On April 1, 2015, the terms of the members of the
14    board serving on that date are terminated, and the board
15    shall be restructured and reconstituted as provided by the
16    General Assembly by law.
17    Until the board is restructured in accordance with this
18amendatory Act of the 98th General Assembly, a A board of 5
19members shall constitute a Board of Trustees authorized to
20carry out the provisions of this Article. The board shall be
21known as the Retirement Board of the Municipal Employees',
22Officers', and Officials' Annuity and Benefit Fund of the city,
23or for the sake of brevity may also be known and referred to as
24the Retirement Board of the Municipal Employees' Annuity and
25Benefit Fund of such city. The board shall consist of the city

 

 

09800SB1922ham004- 44 -LRB098 09566 EFG 58082 a

1comptroller, the city treasurer, and 3 members who shall be
2employees, to be elected as follows:
3    Within 30 days after the effective date, the mayor of the
4city shall arrange for and hold an election.
5    One employee shall be elected for a term ending on the
6first day in the month of December of the first year next
7following the effective date; one for a term ending December
81st of the following year; and one for a term ending on
9December 1st of the second following year.
10    The city comptroller, with the approval of the board, may
11appoint a designee from among employees of the city who are
12versed in the affairs of the comptroller's office to act in the
13absence of the comptroller on all matters pertaining to
14administering the provisions of this Article.
15    The city treasurer, with the approval of the board, may
16appoint a designee from among employees of the city who are
17versed in the affairs of the treasurer's office to act in the
18absence of the treasurer on all matters pertaining to
19administering the provisions of this Article.
20    The members of a Retirement Board of a municipal
21employees', officers', and officials' annuity and benefit fund
22holding office in a city at the time this Article becomes
23effective, including elective and ex-officio members, shall
24continue in office until the expiration of their terms and
25until their respective successors are elected or appointed and
26have qualified.

 

 

09800SB1922ham004- 45 -LRB098 09566 EFG 58082 a

1    An employee member who takes advantage of the early
2retirement incentives provided under this amendatory Act of the
393rd General Assembly may continue as a member until the end of
4his or her term.
5(Source: P.A. 96-1427, eff. 1-1-11.)
 
6    (40 ILCS 5/11-134.1)   (from Ch. 108 1/2, par. 11-134.1)
7    Sec. 11-134.1. Automatic increase in annuity.
8    (a) An employee who retired or retires from service after
9December 31, 1963, and before January 1, 1987, having attained
10age 60 or more, shall, in the month of January of the year
11following the year in which the first anniversary of retirement
12occurs, have the amount of his then fixed and payable monthly
13annuity increased by 1 1/2%, and such first fixed annuity as
14granted at retirement increased by a further 1 1/2% in January
15of each year thereafter. Beginning with January of the year
161972, such increases shall be at the rate of 2% in lieu of the
17aforesaid specified 1 1/2%. Beginning January, 1984, such
18increases shall be at the rate of 3%. Beginning in January of
191999, such increases shall be at the rate of 3% of the
20currently payable monthly annuity, including any increases
21previously granted under this Article. An employee who retires
22on annuity after December 31, 1963 and before January 1, 1987,
23but prior to age 60, shall receive such increases beginning
24with January of the year immediately following the year in
25which he attains the age of 60 years.

 

 

09800SB1922ham004- 46 -LRB098 09566 EFG 58082 a

1    An employee who retires from service on or after January 1,
21987 shall, upon the first annuity payment date following the
3first anniversary of the date of retirement, or upon the first
4annuity payment date following attainment of age 60, whichever
5occurs later, have his then fixed and payable monthly annuity
6increased by 3%, and such annuity shall be increased by an
7additional 3% of the original fixed annuity on the same date
8each year thereafter. Beginning in January of 1999, such
9increases shall be at the rate of 3% of the currently payable
10monthly annuity, including any increases previously granted
11under this Article.
12    (a-5) Notwithstanding the provisions of subsection (a),
13upon the first annuity payment date following (1) the third
14anniversary of retirement, (2) the attainment of age 53, or (3)
15January 1, 2002, whichever occurs latest, the monthly annuity
16of an employee who retires on annuity prior to the attainment
17of age 60 and has not received an increase under subsection (a)
18shall be increased by 3%, and the annuity shall be increased by
19an additional 3% of the current payable monthly annuity,
20including any increases previously granted under this Article,
21on the same date each year thereafter. The increases provided
22under this subsection are in lieu of the increases provided in
23subsection (a).
24    (a-6) Notwithstanding the provisions of subsections (a)
25and (a-5), for all calendar years following the year in which
26this amendatory Act of the 93rd General Assembly takes effect,

 

 

09800SB1922ham004- 47 -LRB098 09566 EFG 58082 a

1an increase in annuity under this Section that would otherwise
2take effect at any time during the year shall instead take
3effect in January of that year.
4    (b) Subsections (a), (a-5), and (a-6) are not applicable to
5an employee retiring and receiving a term annuity, as defined
6in this Article, nor to any otherwise qualified employee who
7retires before he shall have made employee contributions (at
8the 1/2 of 1% rate as hereinafter provided) for the purposes of
9this additional annuity for not less than the equivalent of one
10full year. Such employee, however, shall make arrangement to
11pay to the fund a balance of such 1/2 of 1% contributions,
12based on his final salary, as will bring such 1/2 of 1%
13contributions, computed without interest, to the equivalent of
14or completion of one year's contributions.
15    Beginning with the month of January, 1964, each employee
16shall contribute by means of salary deductions 1/2 of 1% of
17each salary payment, concurrently with and in addition to the
18employee contributions otherwise made for annuity purposes.
19    Each such additional employee contribution shall be
20credited to an account in the prior service annuity reserve, to
21be used, together with city contributions, to defray the cost
22of the specified annuity increments. Any balance as of the
23beginning of each calendar year existing in such account shall
24be credited with interest at the rate of 3% per annum.
25    Such employee contributions shall not be subject to refund,
26except to an employee who resigns or is discharged and applies

 

 

09800SB1922ham004- 48 -LRB098 09566 EFG 58082 a

1for refund under this Article, and also in cases where a term
2annuity becomes payable.
3    In such cases the employee contributions shall be refunded
4him, without interest, and charged to the aforementioned
5account in the prior service annuity reserve.
6    (b-5) Notwithstanding any provision of this Section to the
7contrary, there shall be no annual increase under this Section
8in years 2017, 2019, and 2025. In all other years, beginning
9January 1, 2015, the Fund shall pay an annual increase to
10persons eligible to receive one under this Section, in lieu of
11any other annual increase provided under this Section, in an
12amount equal to the lesser of 3% or one-half the annual
13unadjusted percentage increase (but not less than zero) in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1, of the person's last
16annual annuity amount prior to January 1, 2015. If a person was
17not granted an annuity before the effective date of this
18amendatory Act of the 98th General Assembly, then this
19calculation shall be based on his or her originally granted
20annuity; provided, however, that a person retiring after the
21effective date of this amendatory Act of the 98th General
22Assembly shall not be eligible for an annual increase under
23this Section until one full year after the date on which such
24annual increase otherwise would take effect under this Section.
25    For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

09800SB1922ham004- 49 -LRB098 09566 EFG 58082 a

1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100.
5    Notwithstanding Section 1-103.1, this subsection (b-5) is
6applicable without regard to whether the employee was in active
7service on or after the effective date of this amendatory Act
8of the 98th General Assembly. This subsection (b-5) applies to
9any former employee who on or after the effective date of this
10amendatory Act of the 98th General Assembly is receiving a
11retirement annuity and is eligible for an automatic annual
12increase under this Section.
13(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
1493-654, eff. 1-16-04.)
 
15    (40 ILCS 5/11-134.3)  (from Ch. 108 1/2, par. 11-134.3)
16    Sec. 11-134.3. Automatic increases in annuity for certain
17heretofore retired participants. A retired employee who (a) is
18receiving annuity based on a service credit of 20 or more years
19regardless of age at retirement or based on a service credit of
2015 or more years with retirement at age 55 or over, and (b)
21does not qualify for the automatic increases in annuity
22provided for in Section 11-134.1 of this Article, and (c)
23elects to make a contribution to the Fund at a time and manner
24prescribed by the Retirement Board, of a sum equal to 1% of the
25amount of final monthly salary times the number of full years

 

 

09800SB1922ham004- 50 -LRB098 09566 EFG 58082 a

1of service on which the annuity was based in those cases where
2the annuity was computed on the money purchase formula, and in
3those cases in which the annuity was computed under the minimum
4annuity formula provisions of this Article a sum equal to 1% of
5the average monthly salary on which the annuity was based times
6such number of full years of service, shall have his original
7fixed and payable monthly amount of annuity increased in
8January of the year following the year in which he attains the
9age of 65 years, if such age of 65 years is attained in the year
101969 or later, by an amount equal to 1 1/2%, and by an equal
11additional 1 1/2% in January of each year thereafter. Beginning
12with January of the year 1972, such increases shall be at the
13rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
14January, 1984, such increases shall be at the rate of 3%.
15Beginning in January of 1999, such increases shall be at the
16rate of 3% of the currently payable monthly annuity, including
17any increases previously granted under this Article.
18    In those cases in which the retired employee receiving
19annuity has attained the age of 66 or more years in the year
201969, he shall have such annuity increased in January of the
21year 1970 by an amount equal to 1 1/2% multiplied by the number
22equal to the number of months of January elapsing from and
23including January of the year immediately following the year he
24attained the age of 65 years if retired at or prior to age 65,
25or from and including January of the year immediately following
26the year of retirement if retired at an age greater than 65

 

 

09800SB1922ham004- 51 -LRB098 09566 EFG 58082 a

1years, to and including January of the year 1970, and by an
2equal additional 1 1/2% in January of each year thereafter.
3Beginning with January of the year 1972, such increases shall
4be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
5Beginning January, 1984, such increases shall be at the rate of
63%. Beginning in January of 1999, such increases shall be at
7the rate of 3% of the currently payable monthly annuity,
8including any increases previously granted under this Article.
9    To defray the annual cost of such increases, the annual
10interest income of the Fund, accruing from investments held by
11the Fund, exclusive of gains or losses on sales or exchanges of
12assets during the year, over and above 4% a year, shall be used
13to the extent necessary and available to finance the cost of
14such increases for the following year, and such amount shall be
15transferred as of the end of each year, beginning with the year
161969, to a Fund account designated as the Supplementary Payment
17Reserve from the Investment and Interest Reserve set forth in
18Sec. 11-210. The sums contributed by annuitants as provided for
19in this Section shall also be placed in the aforesaid
20Supplementary Payment Reserve and shall be applied for and used
21for the purposes of such Fund account, together with the
22aforesaid interest.
23    In the event the monies in the Supplementary Payment
24Reserve in any year arising from: (1) the available interest
25income as defined hereinbefore and accruing in the preceding
26year above 4% a year and (2) the contributions by retired

 

 

09800SB1922ham004- 52 -LRB098 09566 EFG 58082 a

1persons, as set forth hereinbefore, are insufficient to make
2the total payments to all persons estimated to be entitled to
3the annuity increases specified hereinbefore, then (3) any
4interest earnings over 4% a year beginning with the year 1969
5which were not previously used to finance such increases and
6which were transferred to the Prior Service Annuity Reserve may
7be used to the extent necessary and available to provide
8sufficient funds to finance such increases for the current
9year, and such sums shall be transferred from the Prior Service
10Annuity Reserve.
11    In the event the total monies available in the
12Supplementary Payment Reserve from the preceding indicated
13sources are insufficient to make the total payments to all
14persons entitled to such increases for the year, a
15proportionate amount computed as the ratio of the monies
16available to the total of the total payments for that year
17shall be paid to each person for that year.
18    The Fund shall be obligated for the payment of the
19increases in annuity as provided for in this Section only to
20the extent that the assets for such purpose, as specified
21herein, are available.
22    Notwithstanding any provision of this Section to the
23contrary, there shall be no annual increase under this Section
24in years 2017, 2019, and 2025. In all other years, beginning
25January 1, 2015, the Fund shall pay an annual increase to
26persons eligible to receive one under this Section, in lieu of

 

 

09800SB1922ham004- 53 -LRB098 09566 EFG 58082 a

1any other annual increase provided under this Section, in an
2amount equal to the lesser of 3% or one-half the annual
3unadjusted percentage increase (but not less than zero) in the
4consumer price index-u for the 12 months ending with the
5September preceding each November 1 of the person's last annual
6annuity amount prior to January 1, 2015.
7    For purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982-84 =
12100.
13    Notwithstanding Section 1-103.1, the changes made to this
14Section by this amendatory Act of the 98th General Assembly are
15applicable without regard to whether the employee was in active
16service on or after the effective date of this amendatory Act.
17These changes apply to any former employee who, on or after the
18effective date of this amendatory Act, is receiving a
19retirement annuity and is eligible for an automatic annual
20increase under this Section.
21(Source: P.A. 90-766, eff. 8-14-98.)
 
22    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
23    Sec. 11-169. Financing; tax levies levy.
24    (a) Except as provided in subsection (f) of this Section,
25the city council of the city shall levy a tax annually upon all

 

 

09800SB1922ham004- 54 -LRB098 09566 EFG 58082 a

1taxable property in the city at the rate that will produce a
2sum which, when added to the amounts deducted from the salaries
3of the employees or otherwise contributed by them and the
4amounts deposited under subsection (f), will be sufficient for
5the requirements of this Article. For the years prior to the
6year 1950 the tax rate shall be as provided for under "The 1935
7Act". Beginning with the year 1950 to and including the year
81969 such tax shall be not more than .036% annually of the
9value, as equalized or assessed by the Department of Revenue,
10of all taxable property within such city. Beginning with the
11year 1970 and each year thereafter the city shall levy a tax
12annually at a rate on the dollar of the value, as equalized or
13assessed by the Department of Revenue of all taxable property
14within such city that will produce, when extended, not to
15exceed an amount equal to the total amount of contributions by
16the employees to the fund made in the calendar year 2 years
17prior to the year for which the annual applicable tax is
18levied, multiplied by 1.1 for the years 1970, 1971 and 1972;
191.145 for the year 1973; 1.19 for the year 1974; 1.235 for the
20year 1975; 1.280 for the year 1976; 1.325 for the year 1977;
211.370 for the years 1978 through 1998; and 1.000 for the year
221999 and for each year thereafter.
23    The tax shall be levied and collected in like manner with
24the general taxes of the city, and shall be exclusive of and in
25addition to the amount of tax the city is now or may hereafter
26be authorized to levy for general purposes under any laws which

 

 

09800SB1922ham004- 55 -LRB098 09566 EFG 58082 a

1may limit the amount of tax which the city may levy for general
2purposes. The county clerk of the county in which the city is
3located, in reducing tax levies under the provisions of any Act
4concerning the levy and extension of taxes, shall not consider
5the tax herein provided for as a part of the general tax levy
6for city purposes, and shall not include the same within any
7limitation of the per cent of the assessed valuation upon which
8taxes are required to be extended for such city.
9    Revenues derived from such tax shall be paid to the city
10treasurer of the city as collected and held by him for the
11benefit of the fund.
12    If the payments on account of taxes are insufficient during
13any year to meet the requirements of this Article, the city may
14issue tax anticipation warrants against the current tax levy.
15    (a-1) Notwithstanding anything to the contrary in
16subsection (a) of this Section, beginning with the city's levy
17under subsection (a) in 2015 and each year thereafter, the levy
18shall not exceed the amount of the city's total contribution to
19the Fund under this Section for payment year 2014; provided,
20however, that the city may continue to use other lawfully
21available funds in lieu of all or part of the levy as provided
22under subsection (f) of this Section. The increases that would
23have occurred under subsection (a) of this Section if not for
24the aforementioned limitation shall be included in
25calculations under subsection (a-2) of this Section for levy
26purposes.

 

 

09800SB1922ham004- 56 -LRB098 09566 EFG 58082 a

1    (a-2) For purposes of this Section, the payment year is the
2year following the levy year. Starting in payment year 2016,
3the city shall pay to the Fund annually, in the manner
4described in this subsection, an amount that, when added to the
5amounts of the contribution provided in subsection (a) of this
6Section as modified by subsection (a-1) of this Section, shall
7equal the lesser of:
8        (i) (I) for payment years 2016 through 2055, the annual
9    amount determined by the Fund to be equal to the greater of
10    $0, or the sum of (1) the City's portion of the projected
11    normal cost for that fiscal year, plus (2) an amount
12    determined on a level percentage of applicable employee
13    payroll basis (reflecting any limits on individual
14    participants' pay that apply for benefit and contribution
15    purposes under this plan) that is sufficient to bring the
16    total actuarial assets of the Fund up to 90% of the total
17    actuarial liabilities of the Fund by the end of 2055. (II)
18    For payment years after 2055, the annual amount determined
19    by the Fund to be equal to the amount needed, if any, to
20    bring the total actuarial assets of the Fund up to 90% of
21    the total actuarial liabilities of the Fund as of the end
22    of the year. In making the determinations under both (I)
23    and (II), the actuarial calculations shall be determined
24    under the entry age normal actuarial cost method, and any
25    actuarial gains or losses from investment return incurred
26    in a fiscal year shall be recognized in equal annual

 

 

09800SB1922ham004- 57 -LRB098 09566 EFG 58082 a

1    amounts over the 5-year period following the fiscal year;
2    or
3        (ii) for payment year 2016, 1.60 times the total amount
4    of contributions made by or on behalf of employees to the
5    Fund for annuity purposes in the calendar year 2013; for
6    payment year 2017, 1.90 times the total amount of
7    contributions made by or on behalf of employees to the Fund
8    for annuity purposes in the calendar year 2014; for payment
9    year 2018, 2.20 times the total amount of contributions
10    made by or on behalf of employees to the Fund for annuity
11    purposes in the calendar year 2015; for payment year 2019,
12    2.50 times the total amount of contributions made by or on
13    behalf of employees to the Fund for annuity purposes in the
14    calendar year 2016; for payment year 2020, 2.80 times the
15    total amount of contributions made by or on behalf of
16    employees to the Fund for annuity purposes in the calendar
17    year 2017; provided however, that beginning in the earlier
18    of the year that the annual contribution amount is the
19    amount calculated under subdivision (i), or payment year
20    2021, and each year thereafter, the city's annual
21    contribution shall be determined pursuant to subdivision
22    (i) only.
23    (a-3) For levy years 2015 and thereafter, the city council
24of the city may levy a separate tax annually upon all taxable
25property in the city that shall be known as the Pension
26Stabilization Levy and shall be at a rate that, when extended,

 

 

09800SB1922ham004- 58 -LRB098 09566 EFG 58082 a

1will produce an amount not to exceed the city's total required
2contribution amount under subsection (a-2) for each applicable
3payment year. The remainder of the city's total required
4contribution amount under subsection (a-2), if any, shall be
5paid by the city to the city treasurer of the city with any
6lawfully available funds, which shall be collected and held by
7the city treasurer for the benefit of the Fund.
8    The Pension Stabilization Levy shall be levied and
9collected in like manner with the general taxes of the city,
10and shall be exclusive of and in addition to the amount of tax
11the city is now or may hereafter be authorized to levy for
12general purposes under any laws which may limit the amount of
13tax which the city may levy for general purposes. The county
14clerk of the county in which the city is located, in reducing
15tax levies under the provisions of any Act concerning the levy
16and extension of taxes, shall not consider the tax herein
17provided for as a part of the general tax levy for city
18purposes, and shall not include the same within any limitation
19of the percent of the assessed valuation upon which taxes are
20required to be extended for such city.
21    Revenues derived from such tax shall be used solely to
22satisfy the city's obligations to the Fund pursuant to
23subsection (a-2) and shall be paid to the city treasurer as
24collected and held by him for the benefit of the fund.
25    If the payments on account of taxes are insufficient during
26any year to meet the requirements of this Article, the city may

 

 

09800SB1922ham004- 59 -LRB098 09566 EFG 58082 a

1issue tax anticipation warrants against the current tax levy.
2    (a-4) For levy years 2015 through 2020, if the city does
3not: (i) levy a tax under subsection (a-3) equal to at least
450% of the city's required contribution under subsection (a-2);
5and (ii) transmit the proceeds of the levy to the Fund within
690 days after the payment of that contribution is due, the Fund
7may, after giving notice to the city, certify to the State
8Comptroller the amounts of the delinquent payment, and the
9Comptroller must, beginning in payment year 2016, deduct and
10deposit into the Fund the certified amount or a portion of that
11amount from the following proportions of grants of State funds
12to the city:
13        (1) in payment year 2016, one-third of the total amount
14    of any grants of State funds to the city;
15        (2) in payment year 2017, two-thirds of the total
16    amount of any grants of State funds to the city; and
17        (3) in payment years 2018 through 2021, the total
18    amount of any grants of State funds to the city.
19    The State Comptroller may not deduct from any grants of
20State funds to the city more than the amount of delinquent
21payment certified to the State Comptroller by the Fund.
22    (b) On or before January 10, annually, the board shall
23notify the city council of the requirement of this Article that
24the taxes tax herein provided shall be levied for that current
25year. The board shall compute the amounts necessary for the
26purposes of this fund to be credited to the reserves

 

 

09800SB1922ham004- 60 -LRB098 09566 EFG 58082 a

1established and maintained as herein provided, and shall make
2an annual determination of the amount of the required city
3contributions; and certify the results thereof to the city
4council.
5    (c) In respect to employees of the city who are transferred
6to the employment of a park district by virtue of "Exchange of
7Functions Act of 1957" the corporate authorities of the park
8district shall annually levy a tax upon all the taxable
9property in the park district at such rate per cent of the
10value of such property, as equalized or assessed by the
11Department of Revenue, as shall be sufficient, when added to
12the amounts deducted from their salaries and otherwise
13contributed by them, to provide the benefits to which they and
14their dependents and beneficiaries are entitled under this
15Article. The city shall not levy a tax hereunder in respect to
16such employees.
17    The tax so levied by the park district shall be in addition
18to and exclusive of all other taxes authorized to be levied by
19the park district for corporate, annuity fund, or other
20purposes. The county clerk of the county in which the park
21district is located, in reducing any tax levied under the
22provisions of any Act concerning the levy and extension of
23taxes shall not consider such tax as part of the general tax
24levy for park purposes, and shall not include the same in any
25limitation of the per cent of the assessed valuation upon which
26taxes are required to be extended for the park district. The

 

 

09800SB1922ham004- 61 -LRB098 09566 EFG 58082 a

1proceeds of the tax levied by the park district, upon receipt
2by the district, shall be immediately paid over to the city
3treasurer of the city for the uses and purposes of the fund.
4    The various sums to be contributed by the city and
5allocated for the purposes of this Article, and any interest to
6be contributed by the city, shall be taken from the revenue
7derived from the taxes authorized in this Section, and no money
8of such city derived from any source other than the levy and
9collection of those taxes or the sale of tax anticipation
10warrants in accordance with the provisions of this Article
11shall be used to provide revenue for this Article, except as
12expressly provided in this Section.
13    If it is not possible for the city to make contributions
14for age and service annuity and widow's annuity concurrently
15with the employee's contributions made for such purposes, such
16city shall make such contributions as soon as possible and
17practicable thereafter with interest thereon at the effective
18rate to the time they shall be made.
19    (d) With respect to employees whose wages are funded as
20participants under the Comprehensive Employment and Training
21Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2293-567, 88 Stat. 1845), hereinafter referred to as CETA,
23subsequent to October 1, 1978, and in instances where the board
24has elected to establish a manpower program reserve, the board
25shall compute the amounts necessary to be credited to the
26manpower program reserves established and maintained as herein

 

 

09800SB1922ham004- 62 -LRB098 09566 EFG 58082 a

1provided, and shall make a periodic determination of the amount
2of required contributions from the City to the reserve to be
3reimbursed by the federal government in accordance with rules
4and regulations established by the Secretary of the United
5States Department of Labor or his designee, and certify the
6results thereof to the City Council. Any such amounts shall
7become a credit to the City and will be used to reduce the
8amount which the City would otherwise contribute during
9succeeding years for all employees.
10    (e) In lieu of establishing a manpower program reserve with
11respect to employees whose wages are funded as participants
12under the Comprehensive Employment and Training Act of 1973, as
13authorized by subsection (d), the board may elect to establish
14a special municipality contribution rate for all such
15employees. If this option is elected, the City shall contribute
16to the Fund from federal funds provided under the Comprehensive
17Employment and Training Act program at the special rate so
18established and such contributions shall become a credit to the
19City and be used to reduce the amount which the City would
20otherwise contribute during succeeding years for all
21employees.
22    (f) In lieu of levying all or a portion of the tax required
23under this Section in any year, the city may deposit with the
24city treasurer no later than March 1 of that year for the
25benefit of the fund, to be held in accordance with this
26Article, an amount that, together with the taxes levied under

 

 

09800SB1922ham004- 63 -LRB098 09566 EFG 58082 a

1this Section for that year, is not less than the amount of the
2city contributions for that year as certified by the board to
3the city council. The deposit may be derived from any source
4legally available for that purpose, including, but not limited
5to, the proceeds of city borrowings. The making of a deposit
6shall satisfy fully the requirements of this Section for that
7year to the extent of the amounts so deposited. Amounts
8deposited under this subsection may be used by the fund for any
9of the purposes for which the proceeds of the taxes tax levied
10by the city under this Section may be used, including the
11payment of any amount that is otherwise required by this
12Article to be paid from the proceeds of those taxes that tax.
13(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 
14    (40 ILCS 5/11-169.1 new)
15    Sec. 11-169.1. Funding Obligation.
16    (a) Beginning January 1, 2015, the city shall be obligated
17to contribute to the Fund in each fiscal year an amount not
18less than the amount determined annually under subsections (a)
19through (a-2) of Section 11-169 of this Code. Notwithstanding
20any other provision of law, if the city fails to pay the amount
21guaranteed under this Section on or before December 31 of the
22year in which such amount is due, the retirement board may
23bring a mandamus action in the Circuit Court of Cook County to
24compel the city to make the required payment, irrespective of
25other remedies that may be available to the Fund. The

 

 

09800SB1922ham004- 64 -LRB098 09566 EFG 58082 a

1obligations and causes of action created under this Section
2shall be in addition to any other right or remedy otherwise
3accorded by common law or State or federal law, and nothing in
4this Section shall be construed to deny, abrogate, impair, or
5waive any such common law or statutory right or remedy.
6    (b) In ordering the city to make the required payment, the
7court may order a reasonable payment schedule to enable the
8city to make the required payment without significantly
9imperiling the public health, safety, or welfare. Any payments
10required to be made by the city pursuant to this Section are
11expressly subordinated to the payment of the principal,
12interest, premium, if any, and other payments on or related to
13any bonded debt obligation of the city, either currently
14outstanding or to be issued, for which the source of repayment
15or security thereon is derived directly or indirectly from any
16funds collected or received by the city or collected or
17received on behalf of the city. Payments on such bonded
18obligations include any statutory fund transfers or other
19prefunding mechanisms or formulas set forth, now or hereafter,
20in State law, city ordinance, or bond indentures, into debt
21service funds or accounts of the city related to such bonded
22obligations, consistent with the payment schedules associated
23with such obligations.
 
24    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
25    Sec. 11-170. Contributions for age and service annuities

 

 

09800SB1922ham004- 65 -LRB098 09566 EFG 58082 a

1for present employees, future entrants and re-entrants.
2    (a) Beginning on the effective date and prior to July 1,
31947, 3 1/4%; and beginning on July 1, 1947 and prior to July
41, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
51972, 6%; and beginning January 1, 1972, 6.5%; and beginning
6January 1, 2015, and prior to January 1, 2016, 7.0%; and
7beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
8and, beginning January 1, 2017, and prior to January 1, 2018,
98.0%; and beginning January 1, 2018, and prior to January 1,
102019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
116 1/2% of each payment of the salary of each present employee,
12future entrant and re-entrant shall be contributed to the fund
13as a deduction from salary for age and service annuity;
14provided, however, that beginning with the first pay period on
15or after the date when the funded ratio of the Fund is first
16determined to have reached the 90% funding goal set forth in
17subsection (a-2) of Section 11-169 of this Code, and each pay
18period thereafter for as long as the Fund maintains a funding
19ratio of 90% or more, employee contributions shall be 7.75% of
20salary for the age and service annuity. If the funding ratio
21falls below 90%, then employee contributions for the age and
22service annuity shall revert to 9.0% of salary until such time
23as the Fund once again is determined to have reached a funding
24ratio of at least 90%, at which time employee contributions of
257.75% shall resume for the age and service annuity. Such
26deductions beginning on the effective date and prior to June

 

 

09800SB1922ham004- 66 -LRB098 09566 EFG 58082 a

130, 1947, inclusive shall be made for a future entrant while he
2is in service until he attains age 65, and for a present
3employee while he is in service until the amount so deducted
4from his salary with interest at the rate of 4% per annum shall
5be equal to the sum which would have accumulated to his credit
6from sums deducted from his salary if deductions at the rate
7herein stated had been made during his entire service until he
8attained age 65 with interest at 4% per annum for the period
9subsequent to his attainment of age 65. Such deductions
10beginning July 1, 1947 shall be made and continued for
11employees while in the service.
12    Notwithstanding Section 1-103.1, the changes to this
13Section made by this amendatory Act of the 98th General
14Assembly apply regardless of whether the employee was in active
15service on or after the effective date of this amendatory Act.
16    (b) Concurrently with each employee contribution, the city
17shall contribute beginning on the effective date and prior to
18July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
19July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
20payment of such salary until the employee attains age 65.
21    (c) Each employee contribution made prior to the date age
22and service annuity for an employee is fixed and each
23corresponding city contribution shall be allocated to the
24account of and credited to the employee for whose benefit it is
25made.
26(Source: P.A. 81-1536.)
 

 

 

09800SB1922ham004- 67 -LRB098 09566 EFG 58082 a

1    (40 ILCS 5/11-179.1 new)
2    Sec. 11-179.1. Use of contributions for health care
3subsidies. Except as may be required pursuant to Sections
411-160.1 and 11-160.2 of this Code, the Fund shall not use any
5contribution received by the Fund under this Article to provide
6a subsidy for the cost of participation in a retiree health
7care program.
 
8    (40 ILCS 5/11-181)   (from Ch. 108 1/2, par. 11-181)
9    Sec. 11-181. Board created. Notwithstanding any other
10provision of this Article:
11        (1) After discussion with the board and other
12    interested parties, the city shall present to the General
13    Assembly its recommendations for restructuring the board
14    of the Fund.
15        (2) On April 1, 2015, the terms of the members of the
16    board serving on that date are terminated, and the board
17    shall be restructured and reconstituted as provided by the
18    General Assembly by law.
19    Until the board is restructured in accordance with this
20amendatory Act of the 98th General Assembly, a A board of 8
21members shall constitute the board of trustees authorized to
22carry out the provisions of this Article. The board shall be
23known as the Retirement Board of the Laborers' and Retirement
24Board Employees' Annuity and Benefit Fund of the city. The

 

 

09800SB1922ham004- 68 -LRB098 09566 EFG 58082 a

1board shall consist of 5 persons appointed and 2 employees and
2one annuitant elected in the manner hereinafter prescribed.
3    The appointed members of the board shall be appointed as
4follows:
5    One member shall be appointed by the comptroller of the
6city, who may be himself or anyone chosen from among employees
7of the city who are versed in the affairs of the comptroller's
8office; one member shall be appointed by the City Treasurer of
9the city, who may be himself or a person chosen from among
10employees of the city who are versed in the affairs of the City
11Treasurer's office; one member shall be an employee of the city
12appointed by the president of the local labor organization
13representing a majority of the employees participating in the
14Fund; and 2 members shall be appointed by the civil service
15commission or the Department of Personnel of the city from
16among employees of the city who are versed in the affairs of
17the civil service commission's office or the Department of
18Personnel.
19    The member appointed by the comptroller shall hold office
20for a term ending on December 1st of the first year following
21the year of appointment. The member appointed by the City
22Treasurer shall hold office for a term ending on December 1st
23of the second year following the year of appointment. The
24member appointed by the civil service commission shall hold
25office for a term ending on the first day in the month of
26December of the third year following the year of appointment.

 

 

09800SB1922ham004- 69 -LRB098 09566 EFG 58082 a

1The additional member appointed by the civil service commission
2under this amendatory Act of 1998 shall hold office for an
3initial term ending on December 1, 2000, and the member
4appointed by the labor organization president shall hold office
5for an initial term ending on December 1, 2001. Thereafter each
6appointive member shall be appointed by the officer or body
7that appointed his predecessor, for a term of 3 years.
8    The 2 employee members of the board shall be elected as
9follows:
10    Within 30 days from and after the appointive members have
11been appointed and have qualified, the appointive members shall
12arrange for and hold an election.
13    One employee shall be elected for a term ending on December
141st of the first year next following the effective date; one
15for a term ending on December 1st of the following year.
16    An employee member who takes advantage of the early
17retirement incentives provided under this amendatory Act of the
1893rd General Assembly may continue as a member until the end of
19his or her term.
20    The initial annuitant member shall be appointed by the
21other members of the board for an initial term ending on
22December 1, 1999. The annuitant member elected in 1999 shall be
23deemed to have been elected for a 3-year term ending on
24December 1, 2002. Thereafter, the annuitant member shall be
25elected for a 3-year term ending on December 1st of the third
26year following the election.

 

 

09800SB1922ham004- 70 -LRB098 09566 EFG 58082 a

1(Source: P.A. 93-654, eff. 1-16-04.)
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.38 as follows:
 
4    (30 ILCS 805/8.38 new)
5    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 98th General Assembly.
 
9    Section 93. Inseverability and severability. The
10provisions of this amendatory Act of 2013 set forth in Secs.
111-160, 8-137, 8-137.1, 8-173, 8-173.1, 8-174, 11-134.1,
1211-134.3, 11-169, 11-169.1, and 11-170 of the Illinois Pension
13Code are mutually dependent and inseverable. If any of those
14provisions is held invalid other than as applied to a
15particular person or circumstance, then all of those provisions
16are invalid. The remaining provisions of this Act are severable
17under Section 1.31 of the Statute on Statutes, and are not
18mutually dependent upon the provisions set forth in any other
19Section of this Act.
 
20    Section 95. No acceleration or delay. Where this Act makes
21changes in a statute that is represented in this Act by text
22that is not yet or no longer in effect (for example, a Section

 

 

09800SB1922ham004- 71 -LRB098 09566 EFG 58082 a

1represented by multiple versions), the use of that text does
2not accelerate or delay the taking effect of (i) the changes
3made by this Act or (ii) provisions derived from any other
4Public Act.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".