Public Act 097-0319
 
HB1471 EnrolledLRB097 05390 JDS 45447 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 7-205 as follows:
 



    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)



    Sec. 7-205. Reserves for annuities. Appropriate reserves 
shall be created
for payment of all annuities
granted under 
this Article at the time such annuities are granted and in

amounts determined to be necessary under actuarial tables 
adopted by the
Board upon recommendation of the actuary of the 
fund.  All annuities payable
shall be charged to the annuity 
reserve.

    1.  Amounts credited to annuity reserves shall be derived by 
transfer of
all the employee credits from the appropriate 
employee reserves and by
charges to the municipality reserve of 
those municipalities in which the
retiring employee has 
accumulated service. If a retiring employee has
accumulated 
service in more than one participating municipality or

participating instrumentality, the aggregate municipality 
charges for non-concurrent service shall be calculated as 
follows:
        (A) for purposes of calculating the annuity reserve, an 
    annuity will be calculated based on service and adjusted 
    earnings with each employer (without regard to the vesting 
    requirement contained in subsection (a) of Section 7-142); 
    and 
        (B) the difference between the municipality charges 
    for the actual annuity granted and the aggregation of the 
    municipality charges based upon the ratio of each from 
    those calculations to the aggregated total from paragraph 
    (A) of this item 1. 
    Aggregate municipality charges for concurrent service 
shall be prorated based on the employee's earnings. The 
municipality charges for retirement annuities calculated under 
subparagraph a. of subparagraph 1. of subsection (a) of Section 
7-142 shall be prorated based on actual contributions
prorated 
on a basis of the employee's earnings in case of concurrent

service and creditable service in other cases.

    2. Supplemental annuities shall be handled as a separate 
annuity and
amounts to be credited to the annuity reserve 
therefor shall be derived in
the same manner as a regular 
annuity.

    3. When a retirement annuity is granted to an employee with 
a spouse
eligible for a surviving spouse annuity, there shall 
be credited to the
annuity reserve an amount to fund the cost 
of both the retirement and
surviving spouse annuity as a joint 
and survivors annuity.

    4. Beginning January 1, 1989, when a retirement annuity is 
awarded, an
amount equal to the present
value of the $3,000 
death benefit payable upon the death of the annuitant
shall be 
transferred to the annuity reserve from the appropriate

municipality reserves in the same manner as the transfer for 
annuities.

    5. All annuity reserves shall be revalued annually as of 
December 31.
Beginning as of December 31, 1973, adjustment 
required therein by such
revaluation shall be charged or 
credited to the earnings and experience
variation reserve.

    6. There shall be credited to the annuity reserve all of 
the
payments
made by annuitants under Section 7-144.2, plus an

additional amount from the
earnings and experience variation 
reserve to fund the cost of the
incremental annuities granted 
to annuitants making these payments.

    7. As of December 31, 1972, the excess in the annuity 
reserve shall be
transferred to the municipality reserves.  An 
amount equal to the deficiency
in the reserve of participating 
municipalities and participating
instrumentalities which have 
no participating employees shall be allocated
to their 
reserves.  The remainder shall be allocated in amounts

proportionate to the present value, as of January 1, 1972, of 
annuities of
annuitants of the remaining participating 
municipalities and participating
instrumentalities.

(Source: P.A. 89-136, eff. 7-14-95.)

 
    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 January 
1, 2012.