HB3332 97TH GENERAL ASSEMBLY

LRB097 10852 JDS 51356 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3332

Introduced 2/24/2011, by Rep. Raymond Poe

SYNOPSIS AS INTRODUCED:

40 ILCS 5/7-209	from Ch. 108 1/2, par. 7-209
30 ILCS 805/8.35 new

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Authorizes the board of trustees of the Illinois Municipal Retirement Fund to adopt rules specifying a separate interest rate that will apply to voluntary additional contributions made by employees. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 7-209 as follows:

(40 ILCS 5/7-209) (from Ch. 108 1/2, par. 7-209)

Sec. 7-209. Earnings and Interest.

(a) Balances at the beginning of each year which remain in employee reserves at the end of the year shall be credited with interest annually at the prescribed rate, except for those amounts due to the additional contributions made under subparagraph 2 of paragraph (a) of Section 7-173.

(b) Balances at the beginning of each year which remain at the end of the year in employee accounts due to additional contributions made under subparagraph 2 of paragraph (a) of Section 7-173 shall be credited annually at a rate of interest fixed by the Board, not to exceed the prescribed rate.

(c) (b) Municipality reserves shall be charged or credited, as the case may be, with interest at the prescribed rate applied to the balance therein at the beginning of the year.

(d) (c) Municipality accounts receivable shall be charged with interest at a rate of 1/2% per month before July 1, 1984, and 1% per month thereafter on the balance therein unpaid one month or more. The unpaid balance shall include charges established retroactively because of failure of the municipality to report amounts which should be receivable. Credit balances shall be disregarded in this calculation.

(e) (d) The annuity total and permanent disability reserves shall be credited with interest at the prescribed rate at the end of each year. For purposes of this computation, the prescribed rate shall be applied to the balances therein at the beginning of the year.

(f) (e) Amounts credited or charged under subsection (a), (b), (c), or (d), or (e) of this Section shall be charged or credited to the earnings and experience variation reserve. Any remaining balance, in excess of the contingency balance established, shall be transferred to the municipality reserves in proportion to present values of the annuities of the annuitants of each participating municipality and participating instrumentality plus the balance in their municipality reserve.

(g) (f) The Board shall fix the rate of interest, to be charged on back, retroactive, or reinstatement contributions.

(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 upon becoming law.