Public Act 096-1258
 
SB2554 EnrolledLRB096 15969 AMC 31214 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 
Section 7-173 as follows:
 



    (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)



    Sec. 7-173. Contributions by employees. 

    (a) Each participating employee shall make contributions 
to the fund as
follows:


        1. For retirement annuity purposes, normal 
    contributions of 3 3/4%
of earnings.


        2. Additional contributions of such percentages of 
    each payment of
earnings, as shall be elected by the 
    employee for retirement annuity
purposes, but not in excess 
    of 10%.  The selected rate shall be
applicable to all 
    earnings paid beginning on the first day of the second

    month following receipt by the Board of written notice of 
    election to
make such contributions.  Additional 
    contributions at the selected rate
shall be made 
    concurrently with normal contributions.


        3. Survivor contributions, by each participating 
    employee, of 3/4%
of each payment of earnings.

    (b) Each employee shall make contributions to the fund for 
Federal
Social Security taxes, for periods during which he is a 
covered
employee, as required by the Social Security Enabling 
Act. For
participating employees, such contributions shall be 
in addition to
those required under paragraph (a) of this 
Section.

    (c) Contributions shall be deducted from each 
corresponding payment
of earnings paid to each employee and 
shall be remitted to the board by
the participating 
municipality or participating instrumentality making
such 
payment.  The remittance, together with a report of the earnings

and contributions shall be made as directed by the board.  For 
township
treasurers and employees of township treasurers 
qualifying as employees
hereunder, the contributions herein 
required as deductions from salary
shall be withheld by the 
school township trustees from funds available
for the payment 
of the compensation of such treasurers and employees as

provided in the School Code and remitted to the board.

    (d) An employee who has made additional contributions under

paragraph (a)2 of this Section may upon retirement or at any 
time prior
thereto, elect to withdraw the total of such 
additional contributions
including interest credited thereon 
to the end of the preceding calendar
year.

    (e) Failure to make the deductions for employee 
contributions
provided in paragraph (c) of this Section shall 
not relieve the employee
from liability for such contributions.  
The amount of such liability may
be deducted, with interest 
charged under Section 7-209, from any
annuities or benefits 
payable hereunder to the employee or any other
person receiving 
an annuity or benefit by reason of such employee's

participation.

    (f) A participating employee who has at least 40 years of 
creditable
service in the Fund may elect to cease making the 
contributions required
under this Section.  The status of the 
employee under this Article shall be
unaffected by this 
election, except that the employee shall not receive any

additional creditable service for the periods of employment 
following the
election.  An election under this subsection 
relieves the employer from
making additional employer 
contributions in relation to that employee.

(Source: P.A. 87-1265.)

 
    Section 90. The State Mandates Act is amended by adding 
Section 8.34 as follows:
 
    (30 ILCS 805/8.34 new)
    Sec. 8.34. 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 96th General Assembly.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.