Public Act 097-0272
 
HB3253 EnrolledLRB097 10456 JDS 50688 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 7-142.1 and 7-145.1 as follows:
 
    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
    Sec. 7-142.1. Sheriff's law enforcement employees.
    (a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after July 1, 2004 shall be entitled at his or her option to
receive a monthly retirement annuity for service as a sheriff's
law enforcement employee computed by multiplying 2.5% for each
year of such service by his annual final rate of earnings and
dividing by 12.
    If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
    In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
    (b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the total
monthly premium for such continued group insurance coverage or
such portion thereof as is not paid by the municipality shall,
upon request of the person electing such continued group
insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this
Section, to be remitted by the Fund to the insurance company or
other entity providing the group insurance coverage.
    (c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this amendatory
Act of the 97th General Assembly and who has service in any
other capacity may convert up to 10 years of that service into
service as a sheriff's law enforcement employee by paying to
the Fund an amount equal to (1) the additional employee
contribution required under Section 7-173.1, plus (2) the
additional employer contribution required under Section 7-172,
plus (3) interest on items (1) and (2) at the prescribed rate
from the date of the service to the date of payment.
    (d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of the
94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
    (e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
    (f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
    A sheriff's law enforcement employee age 55 or more who has
10 or more years of service in that capacity shall be entitled
at his option to receive a monthly retirement annuity for his
or her service as a sheriff's law enforcement employee computed
by multiplying 2.5% for each year of such service by his or her
final rate of earnings.
    The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
    The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
    For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within the
last 120 months of service in which the total earnings was the
highest by the number of months of service in that period.
    Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's law
enforcement employee to whom this Section applies shall not
include overtime and shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) one-half the annual unadjusted percentage increase (but
not less than zero) in the consumer price index-u for the 12
months ending with the September preceding each November 1,
including all previous adjustments.
    (g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after January
1, 2011 shall be increased on the January 1 occurring either on
or after the attainment of age 60 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when compared
with the preceding period, decreases, then the annuity shall
not be increased.
    (h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents are
entitled under this subsection (h) shall be in the amount of 66
2/3% of the sheriff's law enforcement employee's earned annuity
at the date of death.
    (i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's annuity
and each January 1 thereafter by 3% or one-half the annual
unadjusted percentage increase in the consumer price index-u
for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
    (j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11.)
 
    (40 ILCS 5/7-145.1)
    Sec. 7-145.1. Alternative annuity for county officers.
    (a) The benefits provided in this Section and Section
7-145.2 are available only if, prior to the effective date of
this amendatory Act of the 97th General Assembly, the county
board has filed with the Board of the Fund a resolution or
ordinance expressly consenting to the availability of these
benefits for its elected county officers. The county board's
consent is irrevocable with respect to persons participating in
the program, but may be revoked at any time with respect to
persons who have not paid an additional optional contribution
under this Section before the date of revocation.
    An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing before the effective date of this amendatory Act of the
97th General Assembly to make additional optional
contributions in accordance with this Section and procedures
established by the board. These alternative credits are
available only for periods of service as an elected county
officer. The elected county officer may discontinue making the
additional optional contributions by notifying the Fund in
writing in accordance with this Section and procedures
established by the board.
    Additional optional contributions for the alternative
annuity shall be as follows:
        (1) For service as an elected county officer after the
    option is elected, an additional contribution of 3% of
    salary shall be contributed to the Fund on the same basis
    and under the same conditions as contributions required
    under Section 7-173.
        (2) For service as an elected county officer before the
    option is elected, an additional contribution of 3% of the
    salary for the applicable period of service, plus interest
    at the effective rate from the date of service to the date
    of payment, plus any additional amount required by the
    county board under paragraph (3). All payments for past
    service must be paid in full before credit is given.
        (3) With respect to service as an elected county
    officer before the option is elected, if payment is made
    after the county board has filed with the Board of the Fund
    a resolution or ordinance requiring an additional
    contribution under this paragraph, then the contribution
    required under paragraph (2) shall include an amount to be
    determined by the Fund, equal to the actuarial present
    value of the additional employer cost that would otherwise
    result from the alternative credits being established for
    that service. A county board's resolution or ordinance
    requiring additional contributions under this paragraph
    (3) is irrevocable.
    No additional optional contributions may be made for any
period of service for which credit has been previously
forfeited by acceptance of a refund, unless the refund is
repaid in full with interest at the effective rate from the
date of refund to the date of repayment.
    (b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional optional
contributions in accordance with this Section, (2) has held and
made additional optional contributions with respect to the same
elected county office for at least 8 years, and (3) has
attained age 55 with at least 8 years of service credit (or has
attained age 50 with at least 20 years of service as a
sheriff's law enforcement employee) may elect to have his
retirement annuity computed as follows: 3% of the participant's
salary for each of the first 8 years of service credit, plus 4%
of that salary for each of the next 4 years of service credit,
plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that salary.
    This formula applies only to service in an elected county
office that the officer held for at least 8 years, and only to
service for which additional optional contributions have been
paid under this Section. If an elected county officer qualifies
to have this formula applied to service in more than one
elected county office, the qualifying service shall be
accumulated for purposes of determining the applicable accrual
percentages, but the salary used for each office shall be the
separate salary calculated for that office, as defined in
subsection (g).
    To the extent that the elected county officer has service
credit that does not qualify for this formula, his retirement
annuity will first be determined in accordance with this
formula with respect to the service to which this formula
applies, and then in accordance with the remaining Sections of
this Article with respect to the service to which this formula
does not apply.
    (c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform
the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in subsection
(b). For the purposes of this subsection, an elected county
officer shall be considered permanently disabled only if: (i)
disability occurs while in service as an elected county officer
and is of such a nature as to prevent him from reasonably
performing the duties of his office at the time; and (ii) the
board has received a written certification by at least 2
licensed physicians appointed by it stating that the officer is
disabled and that the disability is likely to be permanent.
    (d) Refunds of additional optional contributions shall be
made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest shall
be credited at the effective rate on the same basis and under
the same conditions as for other contributions.
    If an elected county officer fails to hold that same
elected county office for at least 8 years, he or she shall be
entitled after leaving office to receive a refund of the
additional optional contributions made with respect to that
office, plus interest at the effective rate.
    (e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or after
November 15, 1994 and elected to establish alternative credit
before the effective date of this amendatory Act of the 97th
General Assembly. A person who was an elected county officer
and an active contributor to the Fund on November 15, 1994 but
is no longer an active contributor may apply to make additional
optional contributions under this Section at any time within 90
days after the effective date of this amendatory Act of 1997;
if the person is an annuitant, the resulting increase in
annuity shall begin to accrue on the first day of the month
following the month in which the required payment is received
by the Fund.
    (f) For the purposes of this Section and Section 7-145.2,
the terms "elected county officer" and "elected county office"
include, but are not limited to: (1) the county clerk,
recorder, treasurer, coroner, assessor (if elected), auditor,
sheriff, and State's Attorney; members of the county board; and
the clerk of the circuit court; and (2) a person who has been
appointed to fill a vacancy in an office that is normally
filled by election on a countywide basis, for the duration of
his or her service in that office. The terms "elected county
officer" and "elected county office" do not include any officer
or office of a county that has not consented to the
availability of benefits under this Section and Section
7-145.2.
    (g) For the purposes of this Section and Section 7-145.2,
the term "salary" means the final rate of earnings for the
elected county office held, calculated in a manner consistent
with Section 7-116, but for that office only. If an elected
county officer qualifies to have the formula in subsection (b)
applied to service in more than one elected county office, a
separate salary shall be calculated and applied with respect to
each such office.
    (h) The changes to this Section made by this amendatory Act
of the 91st General Assembly apply to persons who first make an
additional optional contribution under this Section on or after
the effective date of this amendatory Act.
    (i) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 96-961, eff. 7-2-10.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
 
    (30 ILCS 805/8.35 new)
    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/8/2011