94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5581

 

Introduced 2/15/2006, by Rep. Mary E. Flowers

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-121.16
40 ILCS 5/9-121.17 new
40 ILCS 5/9-121.18 new
40 ILCS 5/9-134.2   from Ch. 108 1/2, par. 9-134.2
40 ILCS 5/9-134.3
40 ILCS 5/9-134.4
30 ILCS 805/8.30 new

    Amends the Cook County Article of the Illinois Pension Code. Creates an alternative retirement annuity and survivor's benefit for sworn sheriff's personnel. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 9-121.16, 9-134.2, 9-134.3, and 9-134.4 and adding
6 Sections 9-121.17 and 9-121.18 as follows:
 
7     (40 ILCS 5/9-121.16)
8     Sec. 9-121.16. Contractual service to the Retirement
9 Board. A person who has rendered continuous contractual
10 services (other than legal or actuarial services) to the
11 Retirement Board for a period of at least 5 years may establish
12 creditable service in the Fund for up to 10 years of those
13 services by making written application to the Board before July
14 1, 2003 and paying to the Fund an amount to be determined by
15 the Board, equal to the employee contributions that would have
16 been required if those services had been performed as an
17 employee.
18     For the purposes of calculating the required payment, the
19 Board may determine the applicable salary equivalent based on
20 the compensation received by the person for performing those
21 contractual services. The salary equivalent calculated under
22 this Section shall not be used for determining final average
23 salary under Section 9-134 or any other provisions of this
24 Code.
25     A person may not make optional contributions under Section
26 9-121.6, 9-121.17, or 9-179.3 for periods of credit established
27 under this Section.
28 (Source: P.A. 92-599, eff. 6-28-02.)
 
29     (40 ILCS 5/9-121.17 new)
30     Sec. 9-121.17. Alternative annuity for sworn sheriff's
31 personnel.

 

 

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1     (a) Any person employed as sworn sheriff's personnel may
2 elect to establish alternative credits for an alternative
3 annuity by electing in writing to make additional optional
4 contributions in accordance with this Section and procedures
5 established by the board. Such sworn sheriff's personnel may
6 discontinue making the additional optional contributions by
7 notifying the Fund in writing in accordance with this Section
8 and procedures established by the board.
9     Additional optional contributions for the alternative
10 annuity shall be as follows:
11         (1) For service after the option is elected, an
12     additional contribution of 3% of salary shall be
13     contributed to the Fund on the same basis and under the
14     same conditions as contributions required under Sections
15     9-170 and 9-176.
16         (2) For service before the option is elected, an
17     additional contribution of 3% of the salary for the
18     applicable period of service, plus interest at the
19     effective rate from the date of service to the date of
20     payment. All payments for past service must be paid in full
21     before credit is given. No additional optional
22     contributions may be made for any period of service for
23     which credit has been previously forfeited by acceptance of
24     a refund, unless the refund is repaid in full with interest
25     at the effective rate from the date of refund to the date
26     of repayment.
27     (b) In lieu of the retirement annuity otherwise payable
28 under this Article, any sworn sheriff's personnel who (1) has
29 elected to make additional optional contributions in
30 accordance with this Section, and (2) has attained age 50 with
31 at least 10 years of service credit, or has attained age 55
32 with at least 8 years of service credit, may elect to have his
33 retirement annuity computed as follows: 3% of the participant's
34 salary at the time of termination of service for each of the
35 first 8 years of service credit, plus 4% of such salary for
36 each of the next 4 years of service credit, plus 5% of such

 

 

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1 salary for each year of service credit in excess of 12 years,
2 subject to a maximum of 80% of such salary. To the extent such
3 sworn sheriff's personnel has made additional optional
4 contributions with respect to only a portion of his or her
5 years of service credit, his or her retirement annuity will
6 first be determined in accordance with this Section to the
7 extent such additional optional contributions were made, and
8 then in accordance with the remaining Sections of this Article
9 to the extent of years of service credit with respect to which
10 additional optional contributions were not made.
11     (c) In lieu of the disability benefits otherwise payable
12 under this Article, any sworn sheriff's personnel who (1) has
13 become permanently disabled and as a consequence is unable to
14 perform the duties of his or her employment and (2) was making
15 optional contributions in accordance with this Section at the
16 time the disability was incurred, may elect to receive a
17 disability annuity calculated in accordance with the formula in
18 subsection (b). For the purposes of this subsection, such sworn
19 sheriff's personnel shall be considered permanently disabled
20 only if: (i) disability occurs while in service as sworn
21 sheriff's personnel and is of such a nature as to prevent him
22 or her from reasonably performing the duties of his or her
23 employment at the time; and (ii) the board has received a
24 written certification by at least 2 licensed physicians
25 appointed by it stating that the sworn sheriff's personnel is
26 disabled and that the disability is likely to be permanent.
27     (d) Refunds of additional optional contributions shall be
28 made on the same basis and under the same conditions as
29 provided under Section 9-164, 9-166, and 9-167. Interest shall
30 be credited at the effective rate on the same basis and under
31 the same conditions as for other contributions. Optional
32 contributions made by sworn sheriff's personnel shall be
33 accounted for in a separate Cook County Sworn Sheriff's
34 Personnel Optional Contribution Reserve. Optional
35 contributions under this Section shall be included in the
36 amount of employee contributions used to compute the tax levy

 

 

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1 under Section 9-169.
2     (e) The effective date of this plan of optional alternative
3 benefits and contributions shall be January 1, 2007, or the
4 date upon which approval is received from the U.S. Internal
5 Revenue Service, whichever is later. The plan of optional
6 alternative benefits and contributions shall not be available
7 to any former sworn sheriff's personnel receiving an annuity
8 from the Fund on the effective date of the plan, unless he or
9 she re-enters service as sworn sheriff's personnel and renders
10 at least 3 years of additional service after the date of
11 re-entry.
 
12     (40 ILCS 5/9-121.18 new)
13     Sec. 9-121.18. Alternative survivor's benefits for
14 survivors of sworn sheriff's personnel. In lieu of the
15 survivor's benefits otherwise payable under this Article, the
16 spouse or eligible child of any deceased sworn sheriff's
17 personnel who was either making additional optional
18 contributions in accordance with Section 9-121.17 on the date
19 of death, or was receiving an annuity calculated under that
20 Section at the time of death, may elect to receive an annuity
21 beginning on the date of death of the sworn sheriff's
22 personnel, provided that the spouse and sworn sheriff's
23 personnel must have been married on the date of the last
24 termination of his or her service as sworn sheriff's personnel
25 and for a continuous period of at least one year immediately
26 preceding his or her death.
27     The annuity shall be payable beginning on the date of death
28 of the sworn sheriff's personnel if the spouse is then age 50
29 or over, or beginning at age 50 if the age of the spouse is less
30 than age 50. If an unmarried child or children of the sworn
31 sheriff's personnel under age 18 also survive, and the child or
32 children are under the care of the eligible spouse, the annuity
33 shall begin as of the date of death of the sworn sheriff's
34 personnel without regard to the spouse's age.
35     The annuity to a spouse shall be 66 2/3% of the amount of

 

 

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1 retirement annuity earned by the sworn sheriff's personnel on
2 the date of death, subject to a minimum payment of 10% of
3 salary, provided that, if an eligible spouse, regardless of
4 age, has in his or her care at the date of death of the sworn
5 sheriff's personnel any unmarried child or children of the
6 sworn sheriff's personnel under age 18, the minimum annuity
7 shall be 30% of the salary of the sworn sheriff's personnel,
8 plus 10% of salary on account of each minor child of the sworn
9 sheriff's personnel, subject to a combined total payment on
10 account of a spouse and minor children not to exceed 50% of the
11 salary of the deceased sworn sheriff's personnel. In the event
12 there is no spouse of the sworn sheriff's personnel, or should
13 a spouse remarry or die while eligible minor children still
14 survive the sworn sheriff's personnel, each such child shall be
15 entitled to an annuity equal to 20% of salary of the sworn
16 sheriff's personnel subject to a combined total payment on
17 account of all such children not to exceed 50% of salary of the
18 sworn sheriff's personnel. The salary to be used in the
19 calculation of these benefits shall be the same as that
20 prescribed for determining a retirement annuity as provided in
21 Section 9-121.17.
22     Upon the death of sworn sheriff's personnel occurring after
23 termination of service or while in receipt of a retirement
24 annuity, the combined total payment to a spouse and minor
25 children, or to minor children alone if no eligible spouse
26 survives, shall be limited to 75% of the amount of retirement
27 annuity earned by the sworn sheriff's personnel.
28     Adopted children shall have status as children of the sworn
29 sheriff's personnel only if the proceedings for adoption were
30 commenced at least one year prior to the date of the death of
31 the sworn sheriff's personnel.
32     Marriage of a child or attainment of age 18, whichever
33 first occurs, shall render the child ineligible for further
34 consideration in the payment of an annuity to a spouse or in
35 the increase in the amount thereof. Upon attainment of
36 ineligibility of the youngest minor child of the sworn

 

 

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1 sheriff's personnel, the annuity shall immediately revert to
2 the amount payable upon death of sworn sheriff's personnel
3 leaving no minor children surviving him or her. If the spouse
4 is under age 50 at such time, the annuity as revised shall be
5 deferred until such age is attained. Remarriage of a widow or
6 widower prior to attainment of age 55 shall disqualify the
7 spouse from the receipt of an annuity.
 
8     (40 ILCS 5/9-134.2)  (from Ch. 108 1/2, par. 9-134.2)
9     Sec. 9-134.2. Early retirement incentives.
10     (a) To be eligible for the benefits provided in this
11 Section, a person must:
12         (1) be a current contributing member of this Fund who,
13     on May 1, 1992 and within 30 days prior to the date of
14     retirement, is (i) in active payroll status in a position
15     of employment under this Article, or (ii) receiving
16     disability benefits under Section 9-156 or 9-157;
17         (2) have not previously retired under this Article;
18         (3) file with the Board before May 1, 1993, a written
19     application requesting the benefits provided in this
20     Section;
21         (4) elect to retire under this Section on or after
22     December 1, 1992 and on or before May 29, 1993 (or the date
23     established under subsection (c), if applicable);
24         (5) have attained age 55 on or before the date of
25     retirement; and
26         (6) have at least 10 years of creditable service under
27     this Fund or any of the participating systems under the
28     Retirement Systems Reciprocal Act by the effective date of
29     the retirement annuity.
30     (b) An employee who qualifies for the benefits provided
31 under this Section shall be entitled to the following:
32         (1) The employee's retirement annuity, as calculated
33     under the other provisions of this Article, shall be
34     increased at the time of retirement by an amount equal to
35     1% of the employee's average annual salary for the highest

 

 

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1     4 consecutive years within the last 10 years of service,
2     multiplied by the employee's number of years of service
3     credit in this Fund up to a maximum of 10 years; except
4     that the total retirement annuity, including any
5     additional benefits elected under Section 9-121.6,
6     9-121.17, or 9-179.3, shall not exceed 80% of that highest
7     average annual salary.
8         (2) If the employee's retirement annuity is calculated
9     under Section 9-134, the employee shall not be subject to
10     the reduction in retirement annuity because of retirement
11     below age 60 that is otherwise required under that Section.
12     (c) In the case of an employee whose immediate retirement
13 could jeopardize public safety or create hardship for the
14 employer, the deadline for retirement provided in subdivision
15 (a)(4) of this Section may be extended to a specified date, no
16 later than November 30, 1993, by the employee's department
17 head, with the approval of the President of the County Board.
18 In the case of an employee who is not employed by a department
19 of the County, the employee's "department head", for the
20 purposes of this Section, shall be a person designated by the
21 President of the County Board.
22     (d) Notwithstanding Section 9-161, an annuitant who
23 reenters service under this Article after receiving a
24 retirement annuity based on benefits provided under this
25 Section thereby forfeits the right to continue to receive those
26 benefits, and shall have his or her retirement annuity
27 recalculated without the benefits provided in this Section.
28 (Source: P.A. 87-1130.)
 
29     (40 ILCS 5/9-134.3)
30     Sec. 9-134.3. Early retirement incentives.
31     (a) To be eligible for the benefits provided in this
32 Section, a person must:
33         (1) be a current contributing member of the Fund
34     established under this Article who, on May 1, 1997 and
35     within 30 days prior to the date of retirement, is (i) in

 

 

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1     active payroll status in a position of employment under
2     this Article or (ii) receiving disability benefits under
3     Section 9-156 or 9-157; or else be eligible under
4     subsection (g);
5         (2) have not previously retired from the Fund, except
6     as provided under subsection (g);
7         (3) file with the Board before October 1, 1997 (or the
8     date specified in subsection (g), if applicable) a written
9     application requesting the benefits provided in this
10     Section;
11         (4) elect to retire under this Section on or after
12     September 1, 1997 and on or before February 28, 1998 (or
13     the date established under subsection (d) or (g), if
14     applicable);
15         (5) have attained age 55 on or before the date of
16     retirement and before February 28, 1998; and
17         (6) have at least 10 years of creditable service in the
18     Fund, excluding service in any of the other participating
19     systems under the Retirement Systems Reciprocal Act, by the
20     effective date of the retirement annuity or February 28,
21     1998, whichever occurs first.
22     (b) An employee who qualifies for the benefits provided
23 under this Section shall be entitled to the following:
24         (1) The employee's retirement annuity, as calculated
25     under the other provisions of this Article, shall be
26     increased at the time of retirement by an amount equal to
27     1% of the employee's average annual salary for the highest
28     4 consecutive years within the last 10 years of service,
29     multiplied by the employee's number of years of service
30     credit in this Fund up to a maximum of 10 years; except
31     that the total retirement annuity, including any
32     additional benefits elected under Section 9-121.6,
33     9-121.17, or 9-179.3, shall not exceed 80% of that highest
34     average annual salary.
35         (2) If the employee's retirement annuity is calculated
36     under Section 9-134, the employee shall not be subject to

 

 

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1     the reduction in retirement annuity because of retirement
2     below age 60 that is otherwise required under that Section.
3     (c) A person who elects to retire under the provisions of
4 this Section thereby relinquishes his or her right, if any, to
5 have the retirement annuity calculated under the alternative
6 formula formerly set forth in Section 20-122 of the Retirement
7 Systems Reciprocal Act.
8     (d) In the case of an employee whose immediate retirement
9 could jeopardize public safety or create hardship for the
10 employer, the deadline for retirement provided in subdivision
11 (a)(4) of this Section may be extended to a specified date, no
12 later than August 31, 1998, by the employee's department head,
13 with the approval of the President of the County Board. In the
14 case of an employee who is not employed by a department of the
15 County, the employee's "department head", for the purposes of
16 this Section, shall be a person designated by the President of
17 the County Board.
18     (e) Notwithstanding Section 9-161, an annuitant who
19 reenters service under this Article after receiving a
20 retirement annuity based on benefits provided under this
21 Section thereby forfeits the right to continue to receive those
22 benefits and shall have his or her retirement annuity
23 recalculated without the benefits provided in this Section.
24     (f) This Section also applies to the Fund established under
25 Article 10 of this Code.
26     (g) A person who (1) was a participating employee on
27 November 30, 1996, (2) was laid off on or after December 1,
28 1996 and before May 1, 1997 due to the elimination of the
29 employee's job or position, (3) meets the requirements of items
30 (3) through (6) of subsection (a), and (4) has not been
31 reinstated as a Cook County employee since being laid off is
32 eligible for the benefits provided under this Section. For such
33 a person, the application required under subdivision (a)(3) of
34 this Section must be filed within 60 days after the effective
35 date of this amendatory Act of the 92nd General Assembly, and
36 the date of retirement must be within 60 days after the

 

 

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1 effective date of this amendatory Act.
2     In the case of a person eligible under this subsection (g)
3 who began to receive a retirement annuity before the effective
4 date of this amendatory Act, the annuity shall be recalculated
5 to include the increase under this Section, and that increase
6 shall take effect on the first annuity payment date following
7 the date of application.
8 (Source: P.A. 92-599, eff. 6-28-02.)
 
9     (40 ILCS 5/9-134.4)
10     Sec. 9-134.4. Early retirement incentives.
11     (a) To be eligible for the benefits provided in this
12 Section, a person must:
13         (1) be a current contributing member of the Fund
14     established under this Article who, on January 1, 2001 and
15     within 30 days prior to the date of retirement, is (i) in
16     active payroll status in a position of employment under
17     this Article or (ii) receiving disability benefits under
18     Section 9-156 or 9-157;
19         (2) have not previously retired from the Fund;
20         (3) file with the Board before March 1, 2003 a written
21     application requesting the benefits provided in this
22     Section;
23         (4) elect to retire under this Section on or after
24     November 30, 2002 and on or before March 31, 2003 (or the
25     date established under subsection (d), if applicable);
26         (5) have attained age 50 on or before the date of
27     retirement and on or before March 31, 2003; and
28         (6) have at least 20 years of creditable service in the
29     Fund, excluding service in any of the other participating
30     systems under the Retirement Systems Reciprocal Act, by the
31     effective date of the retirement annuity or March 31, 2003,
32     whichever occurs first.
33     (b) An employee who qualifies for the benefits provided
34 under this Section shall be entitled to the following:
35         (1) The employee's retirement annuity, as calculated

 

 

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1     under the other provisions of this Article, shall be
2     increased at the time of retirement by an amount equal to
3     1% of the employee's average annual salary for the highest
4     4 consecutive years within the last 10 years of service,
5     multiplied by the employee's number of years of service
6     credit in this Fund up to a maximum of 10 years; except
7     that the total retirement annuity, including any
8     additional benefits elected under Section 9-121.6,
9     9-121.17, or 9-179.3, shall not exceed 80% of that highest
10     average annual salary.
11         (2) If the employee's retirement annuity is calculated
12     under Section 9-134, the employee shall not be subject to
13     the reduction in retirement annuity because of retirement
14     below age 60 that is otherwise required under that Section.
15     (c) A person who elects to retire under the provisions of
16 this Section thereby relinquishes his or her right, if any, to
17 have the retirement annuity calculated under the alternative
18 formula formerly set forth in Section 20-122 of the Retirement
19 Systems Reciprocal Act.
20     (d) In the case of an employee whose immediate retirement
21 could jeopardize public safety or create hardship for the
22 employer, the deadline for retirement provided in subdivision
23 (a)(4) of this Section may be extended to a specified date, no
24 later than September 30, 2003, by the employee's department
25 head, with the approval of the President of the County Board.
26 In the case of an employee who is not employed by a department
27 of the County, the employee's "department head", for the
28 purposes of this Section, shall be a person designated by the
29 President of the County Board.
30     (e) Notwithstanding Section 9-161, an annuitant who
31 reenters service under this Article after receiving a
32 retirement annuity based on benefits provided under this
33 Section thereby forfeits the right to continue to receive those
34 benefits and shall have his or her retirement annuity
35 recalculated without the benefits provided in this Section.
36     (f) This Section also applies to the Fund established under

 

 

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1 Article 10 of this Code.
2 (Source: P.A. 92-599, eff. 6-28-02.)
 
3     Section 90. The State Mandates Act is amended by adding
4 Section 8.30 as follows:
 
5     (30 ILCS 805/8.30 new)
6     Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
7 of this Act, no reimbursement by the State is required for the
8 implementation of any mandate created by this amendatory Act of
9 the 94th General Assembly.
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.