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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | Sections 7-114, 7-118, 7-139, 7-170, 7-171, 7-172, 7-173, | ||||||||||||||||||||||||||||||||||||||||||||||||
6 | 7-173.2, 7-204, 7-205, and 7-211 and by adding Section 7-153.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
7 | as follows:
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8 | (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
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9 | Sec. 7-114. Earnings. "Earnings":
| ||||||||||||||||||||||||||||||||||||||||||||||||
10 | (a) An amount to be determined by the board, equal to the | ||||||||||||||||||||||||||||||||||||||||||||||||
11 | sum of:
| ||||||||||||||||||||||||||||||||||||||||||||||||
12 | 1. The total amount of money paid to an employee for | ||||||||||||||||||||||||||||||||||||||||||||||||
13 | personal
services or official duties as an employee (except | ||||||||||||||||||||||||||||||||||||||||||||||||
14 | those employed as
independent contractors) paid out of the | ||||||||||||||||||||||||||||||||||||||||||||||||
15 | general fund, or out of any
special funds controlled by the | ||||||||||||||||||||||||||||||||||||||||||||||||
16 | municipality, or by any instrumentality
thereof, or | ||||||||||||||||||||||||||||||||||||||||||||||||
17 | participating instrumentality, including compensation, | ||||||||||||||||||||||||||||||||||||||||||||||||
18 | fees,
allowances, or other emolument paid for official | ||||||||||||||||||||||||||||||||||||||||||||||||
19 | duties (but not
including automobile maintenance, travel | ||||||||||||||||||||||||||||||||||||||||||||||||
20 | expense, or reimbursements for
expenditures incurred in | ||||||||||||||||||||||||||||||||||||||||||||||||
21 | the performance of duties) and, for fee
offices, the fees | ||||||||||||||||||||||||||||||||||||||||||||||||
22 | or earnings of the offices to the extent such fees are
paid | ||||||||||||||||||||||||||||||||||||||||||||||||
23 | out of funds controlled by the municipality, or | ||||||||||||||||||||||||||||||||||||||||||||||||
24 | instrumentality or
participating instrumentality; and
| ||||||||||||||||||||||||||||||||||||||||||||||||
25 | 2. The money value, as determined by rules prescribed | ||||||||||||||||||||||||||||||||||||||||||||||||
26 | by the
governing body of the municipality, or | ||||||||||||||||||||||||||||||||||||||||||||||||
27 | instrumentality thereof, of any
board, lodging, fuel, | ||||||||||||||||||||||||||||||||||||||||||||||||
28 | laundry, and other allowances provided an employee
in lieu | ||||||||||||||||||||||||||||||||||||||||||||||||
29 | of money.
| ||||||||||||||||||||||||||||||||||||||||||||||||
30 | (b) For purposes of determining benefits payable under this | ||||||||||||||||||||||||||||||||||||||||||||||||
31 | fund
payments to a person who is engaged in an independently | ||||||||||||||||||||||||||||||||||||||||||||||||
32 | established
trade, occupation, profession or business and who |
| |||||||
| |||||||
1 | is paid for his
service on a basis other than a monthly or | ||||||
2 | other regular salary, are not
earnings.
| ||||||
3 | (c) If a disabled participating employee is eligible to | ||||||
4 | receive Workers'
Compensation for an accidental injury and the | ||||||
5 | participating municipality or
instrumentality which employed | ||||||
6 | the participating employee when injured
continues to pay the | ||||||
7 | participating employee regular salary or other
compensation or | ||||||
8 | pays the employee an amount in excess of the Workers'
| ||||||
9 | Compensation amount, then earnings shall be deemed to be the | ||||||
10 | total payments,
including an amount equal to the Workers' | ||||||
11 | Compensation payments. These
payments shall be subject to | ||||||
12 | employee contributions and allocated as if paid to
the | ||||||
13 | participating employee when the regular payroll amounts would | ||||||
14 | have been
paid if the participating employee had continued | ||||||
15 | working, and creditable
service shall be awarded for this | ||||||
16 | period.
| ||||||
17 | (d) If an elected official who is a participating employee | ||||||
18 | becomes disabled
but does not resign and is not removed from | ||||||
19 | office, then earnings shall include
all salary payments made | ||||||
20 | for the remainder of that term of office and the
official shall | ||||||
21 | be awarded creditable service for the term of office.
| ||||||
22 | (e) If a participating employee is paid pursuant to "An Act | ||||||
23 | to provide for
the continuation of compensation for law | ||||||
24 | enforcement officers, correctional
officers and firemen who | ||||||
25 | suffer disabling injury in the line of duty", approved
| ||||||
26 | September 6, 1973, as amended, the payments shall be deemed | ||||||
27 | earnings, and the
participating employee shall be awarded | ||||||
28 | creditable service for this period.
| ||||||
29 | (f) Additional compensation received by a person while | ||||||
30 | serving as a
supervisor of assessments, assessor, deputy | ||||||
31 | assessor or member of a board of
review from the State of | ||||||
32 | Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax | ||||||
33 | Code shall not be
earnings for purposes of this Article and | ||||||
34 | shall not be included in the
contribution formula or | ||||||
35 | calculation of benefits for such person pursuant to
this | ||||||
36 | Article.
|
| |||||||
| |||||||
1 | (g) Any moneys received by an elected official from the | ||||||
2 | State of Illinois for service in that capacity shall be deemed | ||||||
3 | earnings unless specifically excluded in this Code.
| ||||||
4 | (Source: P.A. 87-740; 88-670, eff. 12-2-94.)
| ||||||
5 | (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
| ||||||
6 | Sec. 7-118. "Beneficiary" . :
| ||||||
7 | (a) "Beneficiary" means: | ||||||
8 | (1) Any person or persons, trust, or charity designated | ||||||
9 | as a beneficiary
by an employee, former employee who has | ||||||
10 | not yet received a retirement annuity
or separation | ||||||
11 | benefit, or employee annuitant. If no designation is on | ||||||
12 | file or
no beneficiary so designated survives, the estate | ||||||
13 | of the employee, former
employee who has not yet received a | ||||||
14 | retirement annuity or separation benefit,
or employee | ||||||
15 | annuitant. | ||||||
16 | (2) Any person or persons, trust, or charity designated | ||||||
17 | as a beneficiary
by a beneficiary annuitant or, if no | ||||||
18 | designation is on file or no beneficiary
so designated | ||||||
19 | survives, the estate of the beneficiary annuitant.
The | ||||||
20 | surviving spouse of an employee or of an employee
| ||||||
21 | annuitant, or if no surviving spouse survives, the person | ||||||
22 | or persons
designated by a participating employee or | ||||||
23 | employee annuitant, or if no
person so designated survives, | ||||||
24 | or if no designation is on file, the
estate of the employee | ||||||
25 | or employee annuitant. The person or persons
designated by | ||||||
26 | a beneficiary annuitant, or if no person designated
| ||||||
27 | survives, or if no designation is on file, the estate of | ||||||
28 | the beneficiary
annuitant. | ||||||
29 | (3) The estate of a surviving spouse annuitant where | ||||||
30 | the employee
or employee annuitant filed no designation, or | ||||||
31 | no person designated
survives at the death of a surviving | ||||||
32 | spouse annuitant. | ||||||
33 | (b) Designations of
beneficiaries shall be in writing on | ||||||
34 | forms prescribed by the board and
effective upon filing in the | ||||||
35 | fund offices. The designation forms shall
provide for |
| |||||||
| |||||||
1 | contingent beneficiaries. Divorce, dissolution or annulment
of | ||||||
2 | marriage revokes the designation of an employee's former spouse | ||||||
3 | as a
beneficiary on a designation executed before entry of | ||||||
4 | judgment for divorce,
dissolution or annulment of marriage.
| ||||||
5 | (b) Notwithstanding the foregoing, an employee, former | ||||||
6 | employee who has
not yet received a retirement annuity or | ||||||
7 | separation benefit, or employee
annuitant may elect to name any | ||||||
8 | person, trust or charity to be the
primary beneficiary of any | ||||||
9 | death benefit payable by reason of his death. Such
election | ||||||
10 | shall state specifically whether it is his intention to exclude | ||||||
11 | the
spouse, shall be in writing, and may be revoked at any | ||||||
12 | time. Such election or
revocation shall take effect upon being | ||||||
13 | filed in the fund offices.
| ||||||
14 | (c) If a surviving spouse annuity is payable to a former | ||||||
15 | spouse upon
the death of an employee annuitant, the former | ||||||
16 | spouse, unless designated by
the employee annuitant after | ||||||
17 | dissolution of the marriage, shall not be the
beneficiary for | ||||||
18 | the purposes of the $3,000 death benefit
payable under | ||||||
19 | subparagraph 6 of Section 7-164. This benefit shall be paid
to | ||||||
20 | the designated beneficiary of the employee annuitant or, if | ||||||
21 | there is no
designation, then to the estate of the employee | ||||||
22 | annuitant.
| ||||||
23 | (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
| ||||||
24 | (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
| ||||||
25 | Sec. 7-139. Credits and creditable service to employees.
| ||||||
26 | (a) Each participating employee shall be granted credits | ||||||
27 | and creditable
service, for purposes of determining the amount | ||||||
28 | of any annuity or benefit
to which he or a beneficiary is | ||||||
29 | entitled, as follows:
| ||||||
30 | 1. For prior service: Each participating employee who | ||||||
31 | is an employee
of a participating municipality or | ||||||
32 | participating instrumentality on the
effective date shall | ||||||
33 | be granted creditable service, but no credits under
| ||||||
34 | paragraph 2 of this subsection (a), for periods of prior | ||||||
35 | service for which
credit has not been received under any |
| |||||||
| |||||||
1 | other pension fund or retirement system
established under | ||||||
2 | this Code, as follows:
| ||||||
3 | If the effective date of participation for the | ||||||
4 | participating municipality
or participating | ||||||
5 | instrumentality is on or before January 1, 1998, creditable
| ||||||
6 | service shall be granted for the entire period of prior | ||||||
7 | service with that
employer without any employee | ||||||
8 | contribution.
| ||||||
9 | If the effective date of participation for the | ||||||
10 | participating municipality
or participating | ||||||
11 | instrumentality is after January 1, 1998, creditable
| ||||||
12 | service shall be granted for the last 20% of the period of | ||||||
13 | prior service with
that employer, but no more than 5 years, | ||||||
14 | without any employee contribution. A
participating | ||||||
15 | employee may establish creditable service for the | ||||||
16 | remainder of
the period of prior service with that employer | ||||||
17 | by making an application in
writing, accompanied by payment | ||||||
18 | of an employee contribution in an
amount determined by the | ||||||
19 | Fund, based on the employee contribution rates in
effect at | ||||||
20 | the time of application for the creditable service and the | ||||||
21 | employee's
salary rate on the effective date of | ||||||
22 | participation for that employer, plus
interest at the | ||||||
23 | effective rate from the date of the prior service to the | ||||||
24 | date
of payment. Application for this creditable service | ||||||
25 | may be made at any time
while the employee is still in | ||||||
26 | service.
| ||||||
27 | A municipality that (i) has at least 35 employees; (ii) | ||||||
28 | is located in a county with at least 2,000,000 inhabitants; | ||||||
29 | and (iii) maintains an independent defined benefit pension | ||||||
30 | plan for the benefit of its eligible employees may restrict | ||||||
31 | creditable service in whole or in part for periods of prior | ||||||
32 | service with the employer if the governing body of the | ||||||
33 | municipality adopts an irrevocable resolution to restrict | ||||||
34 | that creditable service and files the resolution with the | ||||||
35 | board before the municipality's effective date of | ||||||
36 | participation.
|
| |||||||
| |||||||
1 | Any person who has withdrawn from the service of a | ||||||
2 | participating
municipality
or participating | ||||||
3 | instrumentality prior to the effective date, who reenters
| ||||||
4 | the service of the same municipality or participating | ||||||
5 | instrumentality after
the effective date and becomes a | ||||||
6 | participating employee is entitled to
creditable service | ||||||
7 | for prior service as otherwise provided in this
subdivision | ||||||
8 | (a)(1) only if he or she renders 2 years of service as a
| ||||||
9 | participating employee after the effective date. | ||||||
10 | Application
for such service must be made while in a | ||||||
11 | participating status.
The salary rate to be used in the | ||||||
12 | calculation of the required employee
contribution, if any, | ||||||
13 | shall be the employee's salary rate at the time of first
| ||||||
14 | reentering service with the employer after the employer's | ||||||
15 | effective date of
participation.
| ||||||
16 | 2. For current service, each participating employee | ||||||
17 | shall be
credited with:
| ||||||
18 | a. Additional credits of amounts equal to each | ||||||
19 | payment of additional
contributions received from him | ||||||
20 | under Section 7-173, as of the
date the corresponding | ||||||
21 | payment of earnings is payable to him.
| ||||||
22 | b. Normal credits of amounts equal to each payment | ||||||
23 | of normal
contributions received from him, as of the | ||||||
24 | date the corresponding payment of
earnings is payable | ||||||
25 | to him, and normal contributions made for the purpose | ||||||
26 | of
establishing out-of-state service credits as | ||||||
27 | permitted under the conditions set
forth in paragraph 6 | ||||||
28 | of this subsection (a).
| ||||||
29 | c. Municipality credits in an amount equal to 1.4 | ||||||
30 | times the normal
credits, except those established by | ||||||
31 | out-of-state service credits, as of
the date of | ||||||
32 | computation of any benefit if these credits would | ||||||
33 | increase
the benefit.
| ||||||
34 | d. Survivor credits equal to each payment of | ||||||
35 | survivor contributions
received from the participating | ||||||
36 | employee as of the date the
corresponding payment of |
| |||||||
| |||||||
1 | earnings is payable, and survivor contributions made
| ||||||
2 | for the purpose of establishing out-of-state service | ||||||
3 | credits.
| ||||||
4 | 3. For periods of temporary and total and permanent | ||||||
5 | disability
benefits, each employee receiving disability | ||||||
6 | benefits shall be granted
creditable service for the period | ||||||
7 | during which disability benefits are
payable. Normal and | ||||||
8 | survivor credits, based upon the rate of earnings
applied | ||||||
9 | for disability benefits, shall also be granted if such | ||||||
10 | credits
would result in a higher benefit to any such | ||||||
11 | employee or his
beneficiary.
| ||||||
12 | 4. For authorized leave of absence without pay: A | ||||||
13 | participating
employee shall be granted credits and | ||||||
14 | creditable service for periods of
authorized leave of | ||||||
15 | absence without pay under the following
conditions:
| ||||||
16 | a. An application for credits and creditable | ||||||
17 | service is submitted to the
board while the employee is | ||||||
18 | in a status of
active employment , and within 2 years | ||||||
19 | after termination of the
leave of absence period for | ||||||
20 | which credits and creditable service are
sought .
| ||||||
21 | b. Not more than 12 complete months of creditable | ||||||
22 | service
for authorized leave of absence without pay | ||||||
23 | shall be counted for purposes of
determining any | ||||||
24 | benefits payable under this Article.
| ||||||
25 | c. Credits and creditable service shall be granted | ||||||
26 | for leave of
absence only if such leave is approved by | ||||||
27 | the governing body of the
municipality, including | ||||||
28 | approval of the estimated cost thereof to the
| ||||||
29 | municipality as determined by the fund, and employee | ||||||
30 | contributions, plus
interest at the effective rate | ||||||
31 | applicable for each year from the end of
the period of | ||||||
32 | leave to date of payment, have been paid to the fund in
| ||||||
33 | accordance with Section 7-173. The contributions shall | ||||||
34 | be computed upon the
assumption earnings continued | ||||||
35 | during the period of leave at the rate in
effect when | ||||||
36 | the leave began.
|
| |||||||
| |||||||
1 | d. Benefits under the provisions of Sections | ||||||
2 | 7-141, 7-146, 7-150
and 7-163 shall become payable to | ||||||
3 | employees on authorized leave of
absence, or their | ||||||
4 | designated beneficiary, only if such leave of absence
| ||||||
5 | is creditable hereunder, and if the employee has at | ||||||
6 | least one year of
creditable service other than the | ||||||
7 | service granted for leave of absence.
Any employee | ||||||
8 | contributions due may be deducted from any benefits
| ||||||
9 | payable.
| ||||||
10 | e. No credits or creditable service shall be | ||||||
11 | allowed for leave of
absence without pay during any | ||||||
12 | period of prior service.
| ||||||
13 | 5. For military service: The governing body of a | ||||||
14 | municipality or
participating instrumentality may elect to | ||||||
15 | allow creditable service to
participating employees who | ||||||
16 | leave their employment to serve in the armed
forces of the | ||||||
17 | United States for all periods of such service, provided
| ||||||
18 | that the person returns to active employment within 90 days | ||||||
19 | after
completion
of full time active duty, but no | ||||||
20 | creditable service shall be allowed such
person for any | ||||||
21 | period that can be used in the computation of a pension
or | ||||||
22 | any other pay or benefit, other than pay for active duty, | ||||||
23 | for service
in any branch of the armed forces of the United | ||||||
24 | States. If necessary to
the computation of any benefit, the | ||||||
25 | board shall establish municipality
credits for | ||||||
26 | participating employees under this paragraph on the
| ||||||
27 | assumption that the employee received earnings at the rate | ||||||
28 | received at
the time he left the employment to enter the | ||||||
29 | armed forces. A
participating employee in the armed forces | ||||||
30 | shall not be considered an
employee during such period of | ||||||
31 | service and no additional death and no
disability benefits | ||||||
32 | are payable for death or disability during such period.
| ||||||
33 | Any participating employee who left his employment | ||||||
34 | with a
municipality or participating instrumentality to | ||||||
35 | serve in the armed
forces of the United States and who | ||||||
36 | again became a participating
employee within 90 days after |
| |||||||
| |||||||
1 | completion of full time active duty by
entering the service | ||||||
2 | of a different municipality or participating
| ||||||
3 | instrumentality, which has elected to allow creditable | ||||||
4 | service for
periods of military service under the preceding | ||||||
5 | paragraph, shall also be
allowed creditable service for his | ||||||
6 | period of military service on the
same terms that would | ||||||
7 | apply if he had been employed, before entering
military | ||||||
8 | service, by the municipality or instrumentality which | ||||||
9 | employed
him after he left the military service and the | ||||||
10 | employer costs arising in
relation to such grant of | ||||||
11 | creditable service shall be charged to and
paid by that | ||||||
12 | municipality or instrumentality.
| ||||||
13 | Notwithstanding the foregoing, any participating | ||||||
14 | employee
shall be entitled to creditable service as | ||||||
15 | required by any federal law
relating to re-employment | ||||||
16 | rights of persons who served in the United States
Armed | ||||||
17 | Services. Such creditable service shall be granted upon | ||||||
18 | payment by
the member of an amount equal to the employee | ||||||
19 | contributions which would
have been required had the | ||||||
20 | employee continued in service at the same
rate of earnings | ||||||
21 | during the military leave period, plus interest at
the | ||||||
22 | effective rate.
| ||||||
23 | 5.1. In addition to any creditable service established | ||||||
24 | under
paragraph 5 of this subsection (a), creditable | ||||||
25 | service may be granted for
up to 24 months of service in | ||||||
26 | the armed forces of the United States.
| ||||||
27 | In order to receive creditable service for military | ||||||
28 | service under this
paragraph 5.1, a participating employee | ||||||
29 | must (1) apply to the Fund
in writing and provide evidence | ||||||
30 | of the military service that is satisfactory
to the Board; | ||||||
31 | (2) obtain the written approval of the current employer; | ||||||
32 | and (3)
make contributions to the Fund equal to (i)
the | ||||||
33 | employee contributions that would have been required had | ||||||
34 | the service been
rendered as a member, plus (ii) an amount | ||||||
35 | determined by the board to be equal
to the employer's | ||||||
36 | normal cost of the benefits accrued for that military
|
| |||||||
| |||||||
1 | service, plus (iii) interest on items (i) and (ii) from the | ||||||
2 | date of first
membership in the Fund to the date of | ||||||
3 | payment. If payment is made during
the 6-month period that | ||||||
4 | begins 3 months after the effective date of this
amendatory | ||||||
5 | Act of 1997, the required interest shall be at the rate of | ||||||
6 | 2.5%
per year, compounded annually; otherwise, the | ||||||
7 | required interest shall be
calculated at the regular | ||||||
8 | interest rate.
| ||||||
9 | 6. For out-of-state service: Creditable service shall | ||||||
10 | be granted for
service rendered to an out-of-state local | ||||||
11 | governmental body under the
following conditions: The | ||||||
12 | employee had participated and has irrevocably
forfeited | ||||||
13 | all rights to benefits in the out-of-state public employees
| ||||||
14 | pension system; the governing body of his participating | ||||||
15 | municipality or
instrumentality authorizes the employee to | ||||||
16 | establish such service; the
employee has 2 years current | ||||||
17 | service with this municipality or
participating | ||||||
18 | instrumentality; the employee makes a payment of
| ||||||
19 | contributions, which shall be computed at 8% (normal) plus | ||||||
20 | 2% (survivor)
times length of service purchased times the | ||||||
21 | average rate of earnings for the
first 2
years of service | ||||||
22 | with the municipality or participating
instrumentality | ||||||
23 | whose governing body authorizes the service established
| ||||||
24 | plus interest at the effective rate on the date such | ||||||
25 | credits are
established, payable from the date the employee | ||||||
26 | completes the required 2
years of current service to date | ||||||
27 | of payment. In no case shall more than
120 months of | ||||||
28 | creditable service be granted under this provision.
| ||||||
29 | 7. For retroactive service: Any employee who could have | ||||||
30 | but did not
elect to become a participating employee, or | ||||||
31 | who should have been a
participant in the Municipal Public | ||||||
32 | Utilities Annuity and Benefit Fund
before that fund was | ||||||
33 | superseded, may receive creditable service for the
period | ||||||
34 | of service not to exceed 50 months; however, a current or | ||||||
35 | former
elected or appointed official of a participating | ||||||
36 | municipality may establish credit under this paragraph 7 |
| |||||||
| |||||||
1 | for more than 50
months of service as an official of that | ||||||
2 | municipality, if the excess over 50 months is approved by | ||||||
3 | resolution of the
governing body of the affected | ||||||
4 | municipality filed with
the Fund before January 1, 2002.
| ||||||
5 | Any employee who is a
participating employee on or | ||||||
6 | after September 24, 1981 and who was
excluded from | ||||||
7 | participation by the age restrictions removed by Public Act
| ||||||
8 | 82-596 may receive creditable service for the period, on or | ||||||
9 | after January
1, 1979, excluded by the age restriction and, | ||||||
10 | in addition, if the governing
body of the participating | ||||||
11 | municipality or participating instrumentality elects
to | ||||||
12 | allow creditable service for all employees excluded by the | ||||||
13 | age restriction
prior to January 1, 1979, for service | ||||||
14 | during the period prior to that date
excluded by the age | ||||||
15 | restriction. Any employee who was excluded from
| ||||||
16 | participation by the age restriction removed by Public Act | ||||||
17 | 82-596 and who is
not a participating employee on or after | ||||||
18 | September 24, 1981 may receive
creditable service for | ||||||
19 | service after January 1,
1979. Creditable service under | ||||||
20 | this paragraph
shall be granted upon payment of the | ||||||
21 | employee contributions
which would have been required had | ||||||
22 | he participated, with interest at the
effective rate for | ||||||
23 | each year from the end of the period of service
established | ||||||
24 | to date of payment.
| ||||||
25 | 8. For accumulated unused sick leave: A participating | ||||||
26 | employee who is
applying for a retirement annuity shall be | ||||||
27 | entitled to creditable service
for that portion of the | ||||||
28 | employee's accumulated unused sick leave
for which payment | ||||||
29 | is not received, as follows:
| ||||||
30 | a. Sick leave days shall be limited to those | ||||||
31 | accumulated under a sick
leave plan established by a | ||||||
32 | participating municipality or participating
| ||||||
33 | instrumentality which is available to all employees or | ||||||
34 | a class of employees.
| ||||||
35 | b. Only sick leave days accumulated with a | ||||||
36 | participating municipality or
participating |
| |||||||
| |||||||
1 | instrumentality with which the employee was in service | ||||||
2 | within
60 days of the effective date of his retirement | ||||||
3 | annuity shall be credited;
If the employee was in | ||||||
4 | service with more than one employer during this
period | ||||||
5 | only the sick leave days with the employer with which | ||||||
6 | the employee
has the greatest number of unpaid sick | ||||||
7 | leave days shall be considered.
| ||||||
8 | c. The creditable service granted shall be | ||||||
9 | considered solely for the
purpose of computing the | ||||||
10 | amount of the retirement annuity and shall not be
used | ||||||
11 | to establish any minimum service period required by any | ||||||
12 | provision of the
Illinois Pension Code, the effective | ||||||
13 | date of the retirement annuity, or the
final rate of | ||||||
14 | earnings.
| ||||||
15 | d. The creditable service shall be at the rate of | ||||||
16 | 1/20 of a month for
each full sick day, provided that | ||||||
17 | no more than 12 months may be credited
under this | ||||||
18 | subdivision 8.
| ||||||
19 | e. Employee contributions shall not be required | ||||||
20 | for creditable service
under this subdivision 8.
| ||||||
21 | f. Each participating municipality and | ||||||
22 | participating instrumentality
with which an employee | ||||||
23 | has service within 60 days of the effective date of
his | ||||||
24 | retirement annuity shall certify to the board the | ||||||
25 | number of accumulated
unpaid sick leave days credited | ||||||
26 | to the employee at the time of termination
of service.
| ||||||
27 | 9. For service transferred from another system: | ||||||
28 | Credits and
creditable service shall be granted for service | ||||||
29 | under Article 3, 4, 5, 14
or 16 of this Act, to any active | ||||||
30 | member of this Fund, and to any
inactive member who has | ||||||
31 | been a county sheriff, upon
transfer of such credits | ||||||
32 | pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | ||||||
33 | 16-131.4, and payment by the member of the amount by
which | ||||||
34 | (1) the employer and employee contributions that would have | ||||||
35 | been required
if he had participated in this Fund as a | ||||||
36 | sheriff's law enforcement employee
during the period for |
| |||||||
| |||||||
1 | which credit is
being transferred, plus interest thereon at | ||||||
2 | the effective rate for each
year, compounded annually, from | ||||||
3 | the date of termination of the service for
which credit is | ||||||
4 | being transferred to the date of payment, exceeds (2) the
| ||||||
5 | amount actually transferred to the Fund.
Such transferred | ||||||
6 | service shall be deemed to be service as a sheriff's law
| ||||||
7 | enforcement employee for the purposes of Section 7-142.1.
| ||||||
8 | (b) Creditable service - amount:
| ||||||
9 | 1. One month of creditable service
shall be allowed for | ||||||
10 | each month for which a participating employee made
| ||||||
11 | contributions as required under Section 7-173, or for which | ||||||
12 | creditable
service is otherwise granted hereunder. Not | ||||||
13 | more than 1 month of
service shall be credited and counted | ||||||
14 | for 1 calendar month, and not more
than 1 year of service | ||||||
15 | shall be credited and counted for any calendar
year. A | ||||||
16 | calendar month means a nominal month beginning on the first | ||||||
17 | day
thereof, and a calendar year means a year beginning | ||||||
18 | January 1 and ending
December 31.
| ||||||
19 | 2. A seasonal employee shall be given 12 months of | ||||||
20 | creditable
service if he renders the number of months of | ||||||
21 | service normally required
by the position in a 12-month | ||||||
22 | period and he remains in service for the
entire 12-month | ||||||
23 | period. Otherwise a fractional year of service in the
| ||||||
24 | number of months of service rendered shall be credited.
| ||||||
25 | 3. An intermittent employee shall be given creditable | ||||||
26 | service for
only those months in which a contribution is | ||||||
27 | made under Section 7-173.
| ||||||
28 | (c) No application for correction of credits or creditable | ||||||
29 | service shall
be considered unless the board receives an | ||||||
30 | application for correction while
(1) the applicant is a | ||||||
31 | participating employee and in active employment
with a | ||||||
32 | participating municipality or instrumentality, or (2) while | ||||||
33 | the
applicant is actively participating in a pension fund or | ||||||
34 | retirement
system which is a participating system under the | ||||||
35 | Retirement Systems
Reciprocal Act. A participating employee or | ||||||
36 | other applicant shall not be
entitled to credits or creditable |
| |||||||
| |||||||
1 | service unless the required employee
contributions are made in | ||||||
2 | a lump sum or in installments made in accordance
with board | ||||||
3 | rule.
| ||||||
4 | (d) Upon the granting of a retirement, surviving spouse or | ||||||
5 | child
annuity, a death benefit or a separation benefit, on | ||||||
6 | account of any
employee, all individual accumulated credits | ||||||
7 | shall thereupon terminate.
Upon the withdrawal of additional | ||||||
8 | contributions, the credits applicable
thereto shall thereupon | ||||||
9 | terminate. Terminated credits shall not be applied
to increase | ||||||
10 | the benefits any remaining employee would otherwise receive | ||||||
11 | under
this Article.
| ||||||
12 | (Source: P.A. 92-424, eff. 8-17-01; 93-933, eff. 8-13-04.)
| ||||||
13 | (40 ILCS 5/7-153.1 new) | ||||||
14 | Sec. 7-153.1. Disability hearings; request for closed | ||||||
15 | meeting. Those portions of meetings of the Board or of Board | ||||||
16 | committees in which matters relating to the determination of | ||||||
17 | disability or the results of medical examinations are to be | ||||||
18 | considered may be closed, but only if the request for a closed | ||||||
19 | meeting is initiated by the participating employee whose | ||||||
20 | disability determination or whose medical examination results | ||||||
21 | are at issue.
| ||||||
22 | (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| ||||||
23 | Sec. 7-170. Federal Social Security coverage. | ||||||
24 | (a) It is declared to be the policy and purpose of this | ||||||
25 | Section to extend to covered
employees as defined in Section | ||||||
26 | 7-138, the benefits of the Federal Old
Age and Survivors | ||||||
27 | Insurance System as authorized by the Federal Social
Security | ||||||
28 | Act and amendments thereto. To effect this, the board shall
| ||||||
29 | take such action as may be required by applicable State and | ||||||
30 | Federal laws
or regulations.
| ||||||
31 | (b) The board shall execute an agreement with the State | ||||||
32 | Agency to
secure coverage of covered employees as provided in | ||||||
33 | paragraph (a) of
this section.
| ||||||
34 | (c) Each participating municipality and each participating |
| |||||||
| |||||||
1 | instrumentality
shall remit payment of contributions for | ||||||
2 | Social Security purposes on behalf
of covered employees and | ||||||
3 | covered municipalities and participating
instrumentalities
in | ||||||
4 | the manner provided by law
as required by the board and the | ||||||
5 | State Agency established by the Social
Security Enabling Act .
| ||||||
6 | (d) (Blank).
Contributions of covered employees to this | ||||||
7 | fund for Federal
Social Security purposes shall be paid to the | ||||||
8 | State Agency in such
amounts and at such time as are designated | ||||||
9 | by State laws or regulations.
| ||||||
10 | (e) (Blank).
Contributions in behalf of covered | ||||||
11 | municipalities and
participating instrumentalities for Federal | ||||||
12 | Social Security purposes and
the required pro rata share of | ||||||
13 | administrative expenses shall be paid to
the State Agency from | ||||||
14 | this fund in accordance with applicable State laws
and | ||||||
15 | regulations.
| ||||||
16 | (f) The board shall maintain such records and submit such | ||||||
17 | reports as may
be required by applicable State and Federal laws | ||||||
18 | or regulations.
| ||||||
19 | (Source: P.A. 81-793.)
| ||||||
20 | (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| ||||||
21 | Sec. 7-171. Finance; taxes.
| ||||||
22 | (a) Each municipality other than a school district shall
| ||||||
23 | appropriate an amount sufficient to provide for the current
| ||||||
24 | municipality contributions required by Section 7-172 of
this | ||||||
25 | Article, for the fiscal year for which the appropriation is | ||||||
26 | made
and all amounts due for municipal contributions for | ||||||
27 | previous years.
Those municipalities which have been assessed | ||||||
28 | an annual amount to
amortize its unfunded obligation, as | ||||||
29 | provided in subparagraph 4
5 of
paragraph (a) of Section 7-172 | ||||||
30 | of this Article, shall include in the
appropriation an amount | ||||||
31 | sufficient to pay the amount assessed. The
appropriation shall | ||||||
32 | be based upon an estimate of assets available for
municipality | ||||||
33 | contributions and liabilities therefor for the fiscal year
for | ||||||
34 | which appropriations are to be made, including funds available | ||||||
35 | from
levies for this purpose in prior years.
|
| |||||||
| |||||||
1 | (b) For the purpose of providing monies for municipality
| ||||||
2 | contributions, beginning for the year in which a municipality | ||||||
3 | is
included in this fund:
| ||||||
4 | (1) A municipality other than a school district may | ||||||
5 | levy a tax
which shall not exceed the amount appropriated | ||||||
6 | for municipality contributions.
| ||||||
7 | (2) A school district may levy a tax in an amount | ||||||
8 | reasonably calculated
at the time of the levy to provide | ||||||
9 | for the municipality contributions required
under Section | ||||||
10 | 7-172 of this Article for the fiscal years for which | ||||||
11 | revenues
from the levy will be received and all amounts due | ||||||
12 | for municipal contributions
for previous years. Any levy | ||||||
13 | adopted before the effective date of this
amendatory Act of | ||||||
14 | 1995 by a school district shall be considered valid and
| ||||||
15 | authorized to the extent that the amount was reasonably | ||||||
16 | calculated at the time
of the levy to provide for the | ||||||
17 | municipality contributions required under
Section 7-172 | ||||||
18 | for the fiscal years for which revenues from the levy will | ||||||
19 | be
received and all amounts due for municipal contributions | ||||||
20 | for previous years.
In no event shall a budget adopted by a | ||||||
21 | school district limit a levy of that
school district | ||||||
22 | adopted under this Section.
| ||||||
23 | (c) Any county which is served by a regional office of | ||||||
24 | education that
serves 2 or more
counties may include in its
| ||||||
25 | appropriation an amount sufficient to provide its | ||||||
26 | proportionate share of the
municipality contributions for that | ||||||
27 | regional office of education. The tax levy authorized by this | ||||||
28 | Section may include an amount
necessary to provide monies for | ||||||
29 | this contribution.
| ||||||
30 | (d) Any county that is a part of a multiple-county health | ||||||
31 | department
or consolidated health department which is formed | ||||||
32 | under "An Act in
relation to the establishment and maintenance | ||||||
33 | of county and
multiple-county public health departments", | ||||||
34 | approved July 9, 1943, as
amended, and which is a participating | ||||||
35 | instrumentality may include in the
county's appropriation an | ||||||
36 | amount sufficient to provide its proportionate
share of |
| |||||||
| |||||||
1 | municipality contributions of the department. The tax levy
| ||||||
2 | authorized by this Section may include the amount necessary to | ||||||
3 | provide
monies for this contribution.
| ||||||
4 | (d-5) A school district participating in a special | ||||||
5 | education joint
agreement created under Section 10-22.31 of the | ||||||
6 | School Code that is a
participating instrumentality may include | ||||||
7 | in the school district's
tax levy under this Section an amount | ||||||
8 | sufficient to provide its
proportionate share of the | ||||||
9 | municipality contributions for current and prior
service by | ||||||
10 | employees of the participating instrumentality created under | ||||||
11 | the
joint agreement.
| ||||||
12 | (e) Such tax shall be levied and collected in like manner, | ||||||
13 | with the
general taxes of the municipality and shall be in | ||||||
14 | addition to all other
taxes which the municipality is now or | ||||||
15 | may hereafter be authorized to
levy upon all taxable property | ||||||
16 | therein, and shall be exclusive of and in
addition to the | ||||||
17 | amount of tax levied for general purposes under Section
8-3-1 | ||||||
18 | of the "Illinois Municipal Code", approved May 29, 1961, as
| ||||||
19 | amended, or under any other law or laws which may limit the | ||||||
20 | amount of
tax which the municipality may levy for general | ||||||
21 | purposes. The tax may
be levied by the governing body of the | ||||||
22 | municipality without being
authorized as being additional to | ||||||
23 | all other taxes by a vote of the
people of the municipality.
| ||||||
24 | (f) The county clerk of the county in which any such | ||||||
25 | municipality is
located, in reducing tax levies shall not | ||||||
26 | consider any such tax as a
part of the general tax levy for | ||||||
27 | municipality purposes, and shall not
include the same in the | ||||||
28 | limitation of any other tax rate which may be
extended.
| ||||||
29 | (g) The amount of the tax to be levied in any year shall, | ||||||
30 | within the
limits herein prescribed, be determined by the | ||||||
31 | governing body of the
respective municipality.
| ||||||
32 | (h) The revenue derived from any such tax levy shall be | ||||||
33 | used only
for the purposes specified in this Article and, as | ||||||
34 | collected, shall be
paid to the treasurer of the municipality | ||||||
35 | levying the tax. Monies
received by a county treasurer for use | ||||||
36 | in making contributions to a regional
office of education for |
| |||||||
| |||||||
1 | its
municipality contributions shall be held by him for that | ||||||
2 | purpose and paid to
the regional office of education in the | ||||||
3 | same manner as other
monies appropriated for the expense of the | ||||||
4 | regional office.
| ||||||
5 | (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | ||||||
6 | 90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
| ||||||
7 | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| ||||||
8 | Sec. 7-172. Contributions by participating municipalities | ||||||
9 | and
participating instrumentalities.
| ||||||
10 | (a) Each participating municipality and each participating
| ||||||
11 | instrumentality shall make payment to the fund as follows:
| ||||||
12 | 1. municipality contributions in an amount determined | ||||||
13 | by applying
the municipality contribution rate to each | ||||||
14 | payment of earnings paid to
each of its participating | ||||||
15 | employees;
| ||||||
16 | 2. an amount equal to the employee contributions | ||||||
17 | provided by paragraphs
(a) and (b) of Section 7-173, | ||||||
18 | whether or not the employee contributions are
withheld as | ||||||
19 | permitted by that Section;
| ||||||
20 | 3. all accounts receivable, together with interest | ||||||
21 | charged thereon,
as provided in Section 7-209;
| ||||||
22 | 4. if it has no participating employees with current | ||||||
23 | earnings, an
amount payable which, over a period of 20 | ||||||
24 | years beginning with the year
following an award of | ||||||
25 | benefit, will amortize, at the effective rate for
that | ||||||
26 | year, any negative balance in its municipality reserve | ||||||
27 | resulting
from the award. This amount when established will | ||||||
28 | be payable as a
separate contribution whether or not it | ||||||
29 | later has participating employees.
| ||||||
30 | (b) A separate municipality contribution rate shall be | ||||||
31 | determined
for each calendar year for all participating | ||||||
32 | municipalities together
with all instrumentalities thereof. | ||||||
33 | The municipality contribution rate
shall be determined for | ||||||
34 | participating instrumentalities as if they were
participating | ||||||
35 | municipalities. The municipality contribution rate shall
be |
| |||||||
| |||||||
1 | the sum of the following percentages:
| ||||||
2 | 1. The percentage of earnings of all the participating | ||||||
3 | employees of all
participating municipalities and | ||||||
4 | participating instrumentalities which, if paid
over the | ||||||
5 | entire period of their service, will be sufficient when | ||||||
6 | combined with
all employee contributions available for the | ||||||
7 | payment of benefits, to provide
all annuities for | ||||||
8 | participating employees, and the $3,000 death benefit
| ||||||
9 | payable under Sections 7-158 and 7-164, such percentage to | ||||||
10 | be known as the
normal cost rate.
| ||||||
11 | 2. The percentage of earnings of the participating | ||||||
12 | employees of each
participating municipality and | ||||||
13 | participating instrumentalities necessary
to adjust for | ||||||
14 | the difference between the present value of all benefits,
| ||||||
15 | excluding temporary and total and permanent disability and | ||||||
16 | death benefits, to
be provided for its participating | ||||||
17 | employees and the sum of its accumulated
municipality | ||||||
18 | contributions and the accumulated employee contributions | ||||||
19 | and the
present value of expected future employee and | ||||||
20 | municipality contributions
pursuant to subparagraph 1 of | ||||||
21 | this paragraph (b). This adjustment shall be
spread over | ||||||
22 | the remainder of the period that is allowable under | ||||||
23 | generally
accepted accounting principles.
| ||||||
24 | 3. The percentage of earnings of the participating | ||||||
25 | employees of all
municipalities and participating | ||||||
26 | instrumentalities necessary to provide
the present value | ||||||
27 | of all temporary and total and permanent disability
| ||||||
28 | benefits granted during the most recent year for which | ||||||
29 | information is
available.
| ||||||
30 | 4. The percentage of earnings of the participating | ||||||
31 | employees of all
participating municipalities and | ||||||
32 | participating instrumentalities
necessary to provide the | ||||||
33 | present value of the net single sum death
benefits expected | ||||||
34 | to become payable from the reserve established under
| ||||||
35 | Section 7-206 during the year for which this rate is fixed.
| ||||||
36 | 5. The percentage of earnings necessary to meet any |
| |||||||
| |||||||
1 | deficiency
arising in the Terminated Municipality Reserve.
| ||||||
2 | (c) A separate municipality contribution rate shall be | ||||||
3 | computed for
each participating municipality or participating | ||||||
4 | instrumentality
for its sheriff's law enforcement employees.
| ||||||
5 | A separate municipality contribution rate shall be | ||||||
6 | computed for the
sheriff's law enforcement employees of each | ||||||
7 | forest preserve district that
elects to have such employees. | ||||||
8 | For the period from January 1, 1986 to
December 31, 1986, such | ||||||
9 | rate shall be the forest preserve district's regular
rate plus | ||||||
10 | 2%.
| ||||||
11 | In the event that the Board determines that there is an | ||||||
12 | actuarial
deficiency in the account of any municipality with | ||||||
13 | respect to a person who
has elected to participate in the Fund | ||||||
14 | under Section 3-109.1 of this Code,
the Board may adjust the | ||||||
15 | municipality's contribution rate so as to make up
that | ||||||
16 | deficiency over such reasonable period of time as the Board may | ||||||
17 | determine.
| ||||||
18 | (d) The Board may establish a separate municipality | ||||||
19 | contribution
rate for all employees who are program | ||||||
20 | participants employed under the
federal Comprehensive | ||||||
21 | Employment Training Act by all of the
participating | ||||||
22 | municipalities and instrumentalities. The Board may also
| ||||||
23 | provide that, in lieu of a separate municipality rate for these
| ||||||
24 | employees, a portion of the municipality contributions for such | ||||||
25 | program
participants shall be refunded or an extra charge | ||||||
26 | assessed so that the
amount of municipality contributions | ||||||
27 | retained or received by the fund
for all CETA program | ||||||
28 | participants shall be an amount equal to that which
would be | ||||||
29 | provided by the separate municipality contribution rate for all
| ||||||
30 | such program participants. Refunds shall be made to prime | ||||||
31 | sponsors of
programs upon submission of a claim therefor and | ||||||
32 | extra charges shall be
assessed to participating | ||||||
33 | municipalities and instrumentalities. In
establishing the | ||||||
34 | municipality contribution rate as provided in paragraph
(b) of | ||||||
35 | this Section, the use of a separate municipality contribution
| ||||||
36 | rate for program participants or the refund of a portion of the
|
| |||||||
| |||||||
1 | municipality contributions, as the case may be, may be | ||||||
2 | considered.
| ||||||
3 | (e) Computations of municipality contribution rates for | ||||||
4 | the
following calendar year shall be made prior to the | ||||||
5 | beginning of each
year, from the information available at the | ||||||
6 | time the computations are
made, and on the assumption that the | ||||||
7 | employees in each participating
municipality or participating | ||||||
8 | instrumentality at such time will continue
in service until the | ||||||
9 | end of such calendar year at their respective rates
of earnings | ||||||
10 | at such time.
| ||||||
11 | (f) Any municipality which is the recipient of State | ||||||
12 | allocations
representing that municipality's contributions for | ||||||
13 | retirement annuity
purposes on behalf of its employees as | ||||||
14 | provided in Section 12-21.16 of
the Illinois Public Aid Code | ||||||
15 | shall pay the allocations so
received to the Board for such | ||||||
16 | purpose. Estimates of State allocations to
be received during | ||||||
17 | any taxable year shall be considered in the
determination of | ||||||
18 | the municipality's tax rate for that year under Section
7-171. | ||||||
19 | If a special tax is levied under Section 7-171, none of the
| ||||||
20 | proceeds may be used to reimburse the municipality for the | ||||||
21 | amount of State
allocations received and paid to the Board. Any | ||||||
22 | multiple-county or
consolidated health department which | ||||||
23 | receives contributions from a county
under Section 11.2 of "An | ||||||
24 | Act in relation to establishment and maintenance
of county and | ||||||
25 | multiple-county health departments", approved July 9, 1943,
as | ||||||
26 | amended, or distributions under Section 3 of the Department of | ||||||
27 | Public
Health Act, shall use these only for municipality | ||||||
28 | contributions by the
health department.
| ||||||
29 | (g) Municipality contributions for the several purposes | ||||||
30 | specified
shall, for township treasurers and employees in the | ||||||
31 | offices of the
township treasurers who meet the qualifying | ||||||
32 | conditions for coverage
hereunder, be allocated among the | ||||||
33 | several school districts and parts of
school districts serviced | ||||||
34 | by such treasurers and employees in the
proportion which the | ||||||
35 | amount of school funds of each district or part of
a district | ||||||
36 | handled by the treasurer bears to the total amount of all
|
| |||||||
| |||||||
1 | school funds handled by the treasurer.
| ||||||
2 | From the funds subject to allocation among districts and | ||||||
3 | parts of
districts pursuant to the School Code, the trustees | ||||||
4 | shall withhold the
proportionate share of the liability for | ||||||
5 | municipality contributions imposed
upon such districts by this | ||||||
6 | Section, in respect to such township treasurers
and employees | ||||||
7 | and remit the same to the Board.
| ||||||
8 | The municipality contribution rate for an educational | ||||||
9 | service center shall
initially be the same rate for each year | ||||||
10 | as the regional office of
education or school district
which | ||||||
11 | serves as its administrative agent. When actuarial data become
| ||||||
12 | available, a separate rate shall be established as provided in | ||||||
13 | subparagraph
(i) of this Section.
| ||||||
14 | The municipality contribution rate for a public agency, | ||||||
15 | other than a
vocational education cooperative, formed under the | ||||||
16 | Intergovernmental
Cooperation Act shall initially be the | ||||||
17 | average rate for the municipalities
which are parties to the | ||||||
18 | intergovernmental agreement. When actuarial data
become | ||||||
19 | available, a separate rate shall be established as provided in
| ||||||
20 | subparagraph (i) of this Section.
| ||||||
21 | (h) Each participating municipality and participating
| ||||||
22 | instrumentality shall make the contributions in the amounts | ||||||
23 | provided in
this Section in the manner prescribed from time to | ||||||
24 | time by the Board and
all such contributions shall be | ||||||
25 | obligations of the respective
participating municipalities and | ||||||
26 | participating instrumentalities to this
fund. The failure to | ||||||
27 | deduct any employee contributions shall not
relieve the | ||||||
28 | participating municipality or participating instrumentality
of | ||||||
29 | its obligation to this fund. Delinquent payments of | ||||||
30 | contributions
due under this Section may, with interest, be | ||||||
31 | recovered by civil action
against the participating | ||||||
32 | municipalities or participating
instrumentalities. | ||||||
33 | Municipality contributions, other than the amount
necessary | ||||||
34 | for employee contributions and Social Security contributions, | ||||||
35 | for
periods of service by employees from whose earnings no | ||||||
36 | deductions were made
for employee contributions to the fund, |
| |||||||
| |||||||
1 | may be charged to the municipality
reserve for the municipality | ||||||
2 | or participating instrumentality.
| ||||||
3 | (i) Contributions by participating instrumentalities shall | ||||||
4 | be
determined as provided herein except that the percentage | ||||||
5 | derived under
subparagraph 2 of paragraph (b) of this Section, | ||||||
6 | and the amount payable
under subparagraph 5 of paragraph (a) of | ||||||
7 | this Section, shall be based on
an amortization period of 10 | ||||||
8 | years.
| ||||||
9 | (j) Each county with current or former elected county | ||||||
10 | officers, as defined in Section 7-145.1, participating in the | ||||||
11 | alternative annuity program established under that Section | ||||||
12 | shall have a separate municipality contribution rate computed | ||||||
13 | for those elected county officers.
| ||||||
14 | (Source: P.A. 92-424, eff. 8-17-01.)
| ||||||
15 | (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| ||||||
16 | Sec. 7-173. Contributions by employees.
| ||||||
17 | (a) Each participating employee shall make contributions | ||||||
18 | to the fund as
follows:
| ||||||
19 | 1. For retirement annuity purposes, normal | ||||||
20 | contributions of 3 3/4%
of earnings.
| ||||||
21 | 2. Additional contributions of such percentages of | ||||||
22 | each payment of
earnings, as shall be elected by the | ||||||
23 | employee for retirement annuity
purposes, but not in excess | ||||||
24 | of 10%. The selected rate shall be
applicable to all | ||||||
25 | earnings beginning on the first day of the second
month | ||||||
26 | following receipt by the Board of written notice of | ||||||
27 | election to
make such contributions. Additional | ||||||
28 | contributions at the selected rate
shall be made | ||||||
29 | concurrently with normal contributions.
| ||||||
30 | 3. Survivor contributions, by each participating | ||||||
31 | employee, of 3/4%
of each payment of earnings.
| ||||||
32 | (b) Each employee shall make contributions to the fund for | ||||||
33 | Federal
Social Security taxes, for periods during which he is a | ||||||
34 | covered
employee, as required by the Social Security Enabling | ||||||
35 | Act and federal law . For
participating employees, such |
| |||||||
| |||||||
1 | contributions shall be in addition to
those required under | ||||||
2 | paragraph (a) of this Section.
| ||||||
3 | (c) Contributions shall be deducted from each | ||||||
4 | corresponding payment
of earnings paid to each employee and | ||||||
5 | shall be remitted to the board by
the participating | ||||||
6 | municipality or participating instrumentality making
such | ||||||
7 | payment. The remittance, together with a report of the earnings
| ||||||
8 | and contributions shall be made as directed by the board. For | ||||||
9 | township
treasurers and employees of township treasurers | ||||||
10 | qualifying as employees
hereunder, the contributions herein | ||||||
11 | required as deductions from salary
shall be withheld by the | ||||||
12 | school township trustees from funds available
for the payment | ||||||
13 | of the compensation of such treasurers and employees as
| ||||||
14 | provided in the School Code and remitted to the board.
| ||||||
15 | (d) An employee who has made additional contributions under
| ||||||
16 | paragraph (a)2 of this Section may upon retirement or at any | ||||||
17 | time prior
thereto, elect to withdraw the total of such | ||||||
18 | additional contributions
including interest credited thereon | ||||||
19 | to the end of the preceding calendar
year.
| ||||||
20 | (e) Failure to make the deductions for employee | ||||||
21 | contributions
provided in paragraph (c) of this Section shall | ||||||
22 | not relieve the employee
from liability for such contributions. | ||||||
23 | The amount of such liability may
be deducted, with interest | ||||||
24 | charged under Section 7-209, from any
annuities or benefits | ||||||
25 | payable hereunder to the employee or any other
person receiving | ||||||
26 | an annuity or benefit by reason of such employee's
| ||||||
27 | participation.
| ||||||
28 | (f) A participating employee who has at least 40 years of | ||||||
29 | creditable
service in the Fund may elect to cease making the | ||||||
30 | contributions required
under this Section. The status of the | ||||||
31 | employee under this Article shall be
unaffected by this | ||||||
32 | election, except that the employee shall not receive any
| ||||||
33 | additional creditable service for the periods of employment | ||||||
34 | following the
election. An election under this subsection | ||||||
35 | relieves the employer from
making additional employer | ||||||
36 | contributions in relation to that employee.
|
| |||||||
| |||||||
1 | (Source: P.A. 87-1265.)
| ||||||
2 | (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
| ||||||
3 | Sec. 7-173.2. Pickup of employee contributions.
| ||||||
4 | (a) Until July 1, 1984, each participating municipality and | ||||||
5 | each
participating instrumentality may elect, for all of its | ||||||
6 | employees, to pick up
the employee contributions required by | ||||||
7 | subparagraphs 1 and 3 of subsection (a)
of Section 7-173 and, | ||||||
8 | in the case of sheriff's law enforcement employees,
required by | ||||||
9 | Section 7-173.1. The pick up may be for employee contributions | ||||||
10 | on
earnings received by employees after December 31, 1981 and | ||||||
11 | shall be applicable
to the contributions on total earnings paid | ||||||
12 | in any month. The decision to pick
up contributions shall be | ||||||
13 | made by the governing body.
| ||||||
14 | Beginning July 1, 1984, the pick up of employee | ||||||
15 | contributions shall cease to
be optional. Each participating | ||||||
16 | municipality and participating instrumentality
shall pick up | ||||||
17 | the employee contributions required by subparagraphs 1 and 3 of
| ||||||
18 | subsection (a) of Section 7-173 and, in the case of sheriff's | ||||||
19 | law enforcement
employees, contributions required by Section | ||||||
20 | 7-173.1, for all compensation
earned after such date. Each | ||||||
21 | participating municipality shall also pick up any employee | ||||||
22 | contributions made by its employees under the alternative | ||||||
23 | program for elected county officers under Section 7-145.1.
| ||||||
24 | (b) Contributions that are picked up shall be treated as | ||||||
25 | employer
contributions in determining tax treatment under the | ||||||
26 | United States Internal
Revenue Code. The employee contribution | ||||||
27 | shall be paid from the same source
of funds as is used in | ||||||
28 | payment of earnings to the employee and may not be
paid from | ||||||
29 | funds raised by the tax levy authorized by Section 7-171. The
| ||||||
30 | contributions shall be picked up by a reduction in earnings | ||||||
31 | payment to
employees. Employee contributions that are picked up | ||||||
32 | shall be considered as
earnings under Section 7-114. If a | ||||||
33 | participating municipality or
participating instrumentality | ||||||
34 | fails to report participating employee earnings
which should | ||||||
35 | have been reported to the fund and pays the employee the full
|
| |||||||
| |||||||
1 | amount of earnings including employee contributions which | ||||||
2 | should have been
picked up and forwarded to the fund, then the | ||||||
3 | employee shall make payment of
the employee contributions to | ||||||
4 | the fund on behalf of employer and such
contributions shall be | ||||||
5 | considered as picked up contributions
if paid in the year the | ||||||
6 | earnings were received, or by January 31st of the
following | ||||||
7 | year, and are reflected as picked up on reports to the Internal
| ||||||
8 | Revenue Service. If they cannot be so reflected, or if received | ||||||
9 | after that
date, they shall not be treated as picked up | ||||||
10 | contributions. Picked up employee
contributions shall be | ||||||
11 | considered as employee contributions in computing
benefits | ||||||
12 | paid under this Article 7.
| ||||||
13 | (c) Subject to the requirements of federal law, an employee | ||||||
14 | may elect to
have the employer pick up optional contributions | ||||||
15 | that the employee has elected
to pay to the Fund, and the | ||||||
16 | contributions so picked up shall be treated as
employer | ||||||
17 | contributions for the purposes of determining federal tax | ||||||
18 | treatment.
The employer shall pick up the contributions by a | ||||||
19 | reduction in the cash salary
of the employee and shall pay the | ||||||
20 | contributions from the same source of funds
that is used to pay | ||||||
21 | earnings to the employee. The employee's election to have
the | ||||||
22 | optional contributions picked up is irrevocable and the | ||||||
23 | optional
contributions may not thereafter be prepaid, by direct | ||||||
24 | payment or otherwise.
| ||||||
25 | (Source: P.A. 90-766, eff. 8-14-98.)
| ||||||
26 | (40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
| ||||||
27 | Sec. 7-204. Municipality reserves.
| ||||||
28 | (a) Except as provided in paragraph (b) of this Section, | ||||||
29 | each participating
municipality and its instrumentalities, and | ||||||
30 | each participating instrumentality,
shall be treated as an | ||||||
31 | independent unit within the fund, except that if it has
any | ||||||
32 | sheriff's law enforcement employees or any elected county | ||||||
33 | officers (as
defined in Section 7-154.1) participating in the | ||||||
34 | alternative annuity program ,
it shall be treated as multiple
2
| ||||||
35 | independent units, one for its
sheriff's law enforcement |
| |||||||
| |||||||
1 | employees , one for its elected county officers
participating in | ||||||
2 | the alternative retirement program, and one
the
second for its | ||||||
3 | other employees. Separate municipality reserves shall be
| ||||||
4 | maintained in such form and detail as is necessary to show the | ||||||
5 | net accumulated
balances of each municipality, created or | ||||||
6 | arising under this Article.
| ||||||
7 | (b) In the event of termination and dissolution of any | ||||||
8 | participating
municipality or participating instrumentality , | ||||||
9 | if
and its obligations
are not assumed or transferred by law to | ||||||
10 | another municipality, any net debit
or credit balance remaining | ||||||
11 | in the reserve account of such municipality, or
participating | ||||||
12 | instrumentality, shall be transferred to a Terminated
| ||||||
13 | Municipality Reserve Account which shall be used to fund any | ||||||
14 | future
benefits of its employees arising out of service with | ||||||
15 | the terminated
municipality or participating instrumentality.
| ||||||
16 | Any deficiency arising in the Terminated Municipality | ||||||
17 | Reserve Account
shall be eliminated by a contribution by all | ||||||
18 | remaining municipalities and
participating instrumentalities | ||||||
19 | at a uniform percent of payroll, to be
determined, collected | ||||||
20 | with other contributions required under Section 7-172.
| ||||||
21 | (c) The municipality reserve for each municipality or | ||||||
22 | participating
instrumentality that has any sheriff's law | ||||||
23 | enforcement employees shall be
divided into 2 reserves. A | ||||||
24 | reserve for the sheriff's law enforcement
employees shall be | ||||||
25 | allocated an amount in the same proportion to the total
amount | ||||||
26 | in reserve as the total number of sheriff's law enforcement | ||||||
27 | employees
is to the total participating employees of the | ||||||
28 | municipality or participating
instrumentality at that date. | ||||||
29 | The remainder shall be allocated to the reserve
for other | ||||||
30 | employees.
| ||||||
31 | (d) The Fund shall determine what amounts shall be | ||||||
32 | transferred or credited
to the reserve for elected county | ||||||
33 | officers participating in the alternative
retirement program.
| ||||||
34 | (Source: P.A. 87-740.)
| ||||||
35 | (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
|
| |||||||
| |||||||
1 | Sec. 7-205. Reserves for annuities. Appropriate reserves | ||||||
2 | shall be created
for payment of all annuities
granted under | ||||||
3 | this Article at the time such annuities are granted and in
| ||||||
4 | amounts determined to be necessary under actuarial tables | ||||||
5 | adopted by the
Board upon recommendation of the actuary of the | ||||||
6 | fund. All annuities payable
shall be charged to the annuity | ||||||
7 | reserve.
| ||||||
8 | 1. Amounts credited to annuity reserves shall be derived by | ||||||
9 | transfer of
all the employee credits from the appropriate | ||||||
10 | employee reserves and by
charges to the municipality reserve of | ||||||
11 | those municipalities in which the
retiring employee has | ||||||
12 | accumulated service. If a retiring employee has
accumulated | ||||||
13 | service in more than one participating municipality or
| ||||||
14 | participating instrumentality, (i) in the case of concurrent | ||||||
15 | service, aggregate municipality charges shall be
prorated on a | ||||||
16 | basis of the employee's earnings in case of concurrent
service
| ||||||
17 | and (ii) in the case of nonconcurrent service, aggregate | ||||||
18 | municipality charges shall be prorated among all nonfinal | ||||||
19 | employers on a basis of service credit and projected earnings | ||||||
20 | with those employers and, for the final employer, municipality | ||||||
21 | charges shall be paid on a basis of the remaining cost of the | ||||||
22 | employee's pension, as determined by the Board.
creditable | ||||||
23 | service in other cases.
| ||||||
24 | 2. Supplemental annuities shall be handled as a separate | ||||||
25 | annuity and
amounts to be credited to the annuity reserve | ||||||
26 | therefor shall be derived in
the same manner as a regular | ||||||
27 | annuity.
| ||||||
28 | 3. When a retirement annuity is granted to an employee with | ||||||
29 | a spouse
eligible for a surviving spouse annuity, there shall | ||||||
30 | be credited to the
annuity reserve an amount to fund the cost | ||||||
31 | of both the retirement and
surviving spouse annuity as a joint | ||||||
32 | and survivors annuity.
| ||||||
33 | 4. Beginning January 1, 1989, when a retirement annuity is | ||||||
34 | awarded, an
amount equal to the present
value of the $3,000 | ||||||
35 | death benefit payable upon the death of the annuitant
shall be | ||||||
36 | transferred to the annuity reserve from the appropriate
|
| |||||||
| |||||||
1 | municipality reserves in the same manner as the transfer for | ||||||
2 | annuities.
| ||||||
3 | 5. All annuity reserves shall be revalued annually as of | ||||||
4 | December 31.
Beginning as of December 31, 1973, adjustment | ||||||
5 | required therein by such
revaluation shall be charged or | ||||||
6 | credited to the earnings and experience
variation reserve.
| ||||||
7 | 6. There shall be credited to the annuity reserve all of | ||||||
8 | the
payments
made by annuitants under Section 7-144.2, plus an
| ||||||
9 | additional amount from the
earnings and experience variation | ||||||
10 | reserve to fund the cost of the
incremental annuities granted | ||||||
11 | to annuitants making these payments.
| ||||||
12 | 7. As of December 31, 1972, the excess in the annuity | ||||||
13 | reserve shall be
transferred to the municipality reserves. An | ||||||
14 | amount equal to the deficiency
in the reserve of participating | ||||||
15 | municipalities and participating
instrumentalities which have | ||||||
16 | no participating employees shall be allocated
to their | ||||||
17 | reserves. The remainder shall be allocated in amounts
| ||||||
18 | proportionate to the present value, as of January 1, 1972, of | ||||||
19 | annuities of
annuitants of the remaining participating | ||||||
20 | municipalities and participating
instrumentalities.
| ||||||
21 | (Source: P.A. 89-136, eff. 7-14-95.)
| ||||||
22 | (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
| ||||||
23 | Sec. 7-211. Authorizations.
| ||||||
24 | (a) Each participating municipality and instrumentality | ||||||
25 | thereof and
each participating instrumentality shall:
| ||||||
26 | 1. Deduct all normal and additional contributions and | ||||||
27 | contributions
for federal Social Security taxes as | ||||||
28 | required by the Social Security
Enabling Act from each | ||||||
29 | payment of earnings payable to each participating
employee | ||||||
30 | who is entitled to any earnings from such municipality or
| ||||||
31 | instrumentality thereof or participating instrumentality, | ||||||
32 | and remit
all such normal and additional contributions | ||||||
33 | immediately to the board and all such contributions for | ||||||
34 | federal Social Security taxes in the manner provided by | ||||||
35 | law ; and
|
| |||||||
| |||||||
1 | 2. Pay to the board contributions required by this | ||||||
2 | Article.
| ||||||
3 | (b) Each participating employee shall, by virtue of the | ||||||
4 | payment of
contributions to this fund, receive a vested | ||||||
5 | interest in the annuities
and benefits provided in this Article | ||||||
6 | and in consideration of such vested
interest shall be deemed to | ||||||
7 | have agreed and authorized the deduction from
earnings of all | ||||||
8 | contributions payable to this fund in accordance with this
| ||||||
9 | Article.
| ||||||
10 | (c) Payment of earnings less the amounts of contributions | ||||||
11 | provided in
this Article and in the Social Security Enabling | ||||||
12 | Act shall be a full
and complete discharge of all claims for | ||||||
13 | payment for services rendered
by any employee during the period | ||||||
14 | covered by any such payment.
| ||||||
15 | (d) Any covered annuitant may authorize the withholding of | ||||||
16 | all or a portion
of his or her annuity, for the payment of | ||||||
17 | premiums on group accident and health
insurance provided | ||||||
18 | pursuant to Section 7-199.1. The annuitant may revoke
this | ||||||
19 | authorization at any time.
| ||||||
20 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
21 | Section 90. The State Mandates Act is amended by adding | ||||||
22 | Section 8.29 as
follows:
| ||||||
23 | (30 ILCS 805/8.29 new)
| ||||||
24 | Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
25 | of this
Act, no reimbursement by the State is required for the | ||||||
26 | implementation of
any mandate created by this amendatory Act of | ||||||
27 | the 94th General Assembly.
| ||||||
28 | Section 99. Effective date. This Act takes effect upon | ||||||
29 | becoming law.
|