SB3629 EnrolledLRB097 15761 JDS 60905 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 12-116, 12-127, 12-133, 12-149, 12-167, 12-168,
612-169, and 12-183 as follows:
 
7    (40 ILCS 5/12-116)  (from Ch. 108 1/2, par. 12-116)
8    Sec. 12-116. Fiscal year.
9    "Fiscal year": For periods prior to July 1, 2012, the The
10year commencing with July 1st and ending with June 30th next
11following. Beginning January 1, 2013, the year commencing
12January 1 and ending December 31. The fiscal year which begins
13July 1, 2012 shall end December 31, 2012.
14(Source: Laws 1963, p. 161.)
 
15    (40 ILCS 5/12-127)  (from Ch. 108 1/2, par. 12-127)
16    Sec. 12-127. Computation of service.
17    (a) If an employee during any leave of absence for 30 days
18or more without pay who is not receiving ordinary disability or
19duty disability benefits contributes the percentage of salary
20theretofore deducted from his salary for annuity purposes, the
21employer shall contribute corresponding amounts for such
22purposes. Payment for any approved leave of absence shall not

 

 

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1be valid unless made during such absence or within 30 days from
2expiration thereof. The aggregate of leaves of absence for
3which contributions may be made during the entire employee's
4service shall be 1 year.
5    (b) In computing service, credit shall be given for all
6leaves of absence subject to the limitations specified in the
7following paragraph during the time an employee was engaged in
8the military or naval service of the United States of America
9during the years 1914 to 1919, inclusive, or between September
1016, 1940, and July 25, 1947, or between June 25, 1950, and
11January 31, 1955, and any such service rendered after January
1231, 1955, and who within 180 days subsequent to the completion
13of military or naval service re-enters the service of the
14employer.
15    The total credit any employee shall receive for military or
16naval service during the entire term of service as an employee
17shall be subject to the following conditions and limitations:
18        (1) if entry into military or naval service occurs
19    after July 1, 1961, the total credit shall not exceed 3
20    years;
21        (2) if entry into military or naval service occurred on
22    or prior to July 1, 1961, the total credit shall not exceed
23    5 years;
24        (3) an employee who on July 1, 1961, had accrued more
25    than 5 years of such military or naval service shall be
26    entitled to the total amount of such accrued credit.

 

 

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1    The contributions an employee would have made during the
2period of such military or naval service, together with the
3prescribed employer contributions, shall be made by the
4employer and shall be based on the salary for the position
5occupied by the employee on the date of commencement of the
6leave of absence.
7    (c) For all purposes of this Article except the provisions
8of Section 12-133, the following shall constitute a year of
9service in any fiscal year for salary payable according to the
10basis specified: Monthly Basis: 4 months; Weekly Basis: 17
11weeks; Daily Basis: 100 days; Hourly Basis: 800 hours, except
12that in the case of an employee becoming a participant of the
13fund on and after July 1, 1973, the following schedule shall
14govern for all purposes of this Article: Service during 9
15months or more in any fiscal year shall constitute a year of
16service; 6 to 8 months, inclusive, 3/4 of a year; 3 to 5
17months, inclusive, 1/2 year; less than 3 months, 1/4 of a year;
1815 days or more in any month, a month of service. However, for
19the 6-month fiscal year July 1, 2012 through December 31, 2012,
20the amount of service earned shall not exceed 1/2 year.
21    (d) The periods an employee received ordinary or duty
22disability benefit shall be included in the computation of
23service.
24    (e) Upon receipt of the specified payment, credits
25transferred to a fund established under this Article pursuant
26to subsection (d) of Section 8-226.1, subsection (d) of Section

 

 

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19-121.1, or Section 14-105.1 of this Code shall be included in
2the computation of service.
3    (f) A contributing employee may establish additional
4service credit for a period of up to 2 years spent in active
5military service for which he or she does not qualify for
6credit under subsection (b), provided that (1) the person was
7not dishonorably discharged from the military service, and (2)
8the amount of service credit established by the person under
9this subsection (f), when added to the amount of any military
10service credit granted to the person under subsection (b),
11shall not exceed 5 years. In order to establish military
12service credit under this subsection (f), the applicant must
13submit a written application to the Fund, including a copy of
14the applicant's discharge from military service, and pay to the
15Fund (1) employee contributions at the rates provided in this
16Article based upon the person's salary on the last date as a
17participating employee prior to the military service, or on the
18first date as a participating employee after the military
19service, whichever is greater, plus (2) an amount determined by
20the board to be equal to the employer's normal cost of the
21benefits accrued for such military service, plus (3) regular
22interest on items (1) and (2) from the date of conclusion of
23the military service to the date of payment. Contributions must
24be paid in a single lump sum before the credit will be granted.
25Credit established under this subsection may be used for
26pension purposes only.

 

 

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1    (g) A contributing employee may establish additional
2service credit for a period of up to 5 years of employment by
3the United States federal government for which he or she does
4not qualify for credit under any other provision of this
5Article, provided that (1) the amount of service credit
6established by the person under this subsection (g), when added
7to the amount of all military service credit granted to the
8person under subsections (b) and (f), shall not exceed 5 years,
9and (2) any credit received for the federal employment in any
10other public pension fund or retirement system has been
11terminated or relinquished.
12    In order to establish service credit under this subsection
13(g), the applicant must submit a written application to the
14Fund, including such documentation of the federal employment as
15the Board may require, and pay to the Fund (1) employee
16contributions at the rates provided in this Article based upon
17the person's salary on the last date as a participating
18employee prior to the federal service, or on the first date as
19a participating employee after the federal service, whichever
20is greater, plus (2) an amount determined by the Board to be
21equal to the employer's normal cost of the benefits accrued for
22such federal service, plus (3) regular interest on items (1)
23and (2) from the date of conclusion of the federal service to
24the date of payment. Contributions must be paid in a single
25lump sum before the credit is granted. Credit established under
26this subsection may be used for pension purposes only.

 

 

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1(Source: P.A. 86-272; 86-1488; 87-1265.)
 
2    (40 ILCS 5/12-133)   (from Ch. 108 1/2, par. 12-133)
3    Sec. 12-133. Fixed benefit retirement annuity.
4    (a) Subject to the provisions of paragraph (b) of this
5Section, the retirement annuity for any employee who withdraws
6from service on or after January 1, 1983 and before January 1,
71990, at age 60 or over, having at least 4 years of service,
8shall be 1.70% for each of the first 10 years of service; 2.00%
9for each of the next 10 years of service; 2.40% for each year
10of service in excess of 20 but not exceeding 30; and 2.80% for
11each year of service in excess of 30, with a pro-rated amount
12for service of less than a full year, based upon the highest
13average annual salary for any 4 consecutive years within the
14last 10 years of service immediately preceding the date of
15withdrawal, provided that: (1) if retirement of the employee
16occurs below age 60, such annuity shall be reduced 1/2 of 1%
17for each month or fraction thereof that the employee's age is
18less than 60, except that an employee retiring at age 55 or
19over but less than age 60, having at least 35 years of service,
20shall not be subject to the reduction in his retirement annuity
21because of retirement below age 60; (2) the annuity shall not
22exceed 75% of such average annual salary; (3) the actual salary
23shall be considered in the computation of this annuity.
24    The retirement annuity for any employee who withdraws from
25service on or after January 1, 1990 and prior to December 31,

 

 

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12003 at age 50 or over with at least 10 years of service, or at
2age 60 or over with at least 4 years of service, shall be 1.90%
3for each of the first 10 years of service, 2.20% for each of
4the next 10 years of service, 2.40% for each of the next 10
5years of service, and 2.80% for each year of service in excess
6of 30, with a pro-rated amount for service of less than a full
7year, based upon the highest average annual salary for any 4
8consecutive years within the last 10 years of service
9immediately preceding the date of withdrawal, provided that:
10        (1) if retirement of the employee occurs below age 60,
11    such annuity shall be reduced 1/4 of 1% (1/2 of 1% in the
12    case of withdrawal from service before January 1, 1991) for
13    each month or fraction thereof that the employee's age is
14    less than 60, except that an employee retiring at age 50 or
15    over having at least 30 years of service shall not be
16    subject to the reduction in retirement annuity because of
17    retirement below age 60;
18        (2) the annuity shall not exceed 80% of such average
19    annual salary; and
20        (3) the actual salary shall be considered in the
21    computation of this annuity.
22    An employee who withdraws from service on or after December
2331, 2003, at age 50 or over with at least 10 years of service or
24at age 60 or over with at least 4 years of service, shall
25receive, in lieu of any other retirement annuity provided for
26in this Section, a retirement annuity calculated as follows:

 

 

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1for each year of service immediately preceding the date of
2withdrawal, 2.40% of the highest average annual salary for any
34 consecutive years within the last 10 years of service
4immediately preceding the date of withdrawal, with a prorated
5amount for service of less than a full year, provided that:
6        (1) if retirement of the employee occurs below age 60,
7    such annuity shall be reduced 1/4 of 1% for each month or
8    fraction thereof that the employee's age is less than 60,
9    except that an employee retiring at age 50 or over having
10    at least 30 years of service shall not be subject to the
11    reduction in retirement annuity because of retirement
12    below age 60;
13        (2) the annuity shall not exceed 80% of such average
14    annual salary; and
15        (3) the actual salary shall be considered in the
16    computation of this annuity.
17    Notwithstanding any other formula, the annuity for
18employees retiring on or after January 31, 2004 and on or
19before February 29, 2004 with at least 30 years of service
20shall be 80% of average annual salary for any 4 consecutive
21years within the last 10 years of service immediately preceding
22the date of withdrawal.
23    (b) In lieu of the retirement annuity provided as an
24actuarial equivalent of the total accumulations from
25contributions by the employee, contributions by the employer,
26and prior service annuity plus regular interest, an employee in

 

 

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1service prior to July 1, 1971 shall be entitled to the largest
2applicable retirement annuity provided in this Section if the
3same is larger than the annuity provided in other Sections of
4this Article.
5    (c) The following schedule shall govern the computation of
6service for the fixed benefit annuities provided by this
7Section: Service during 9 months or more during any fiscal year
8shall constitute a year of service; 6 to 8 months, inclusive,
93/4 of a year; 3 to 5 months, inclusive, 1/2 year; less than 3
10months, 1/4 of a year; 15 days or more in any month, a month of
11service. However, for the 6-month fiscal year July 1, 2012
12through December 31, 2012, the amount of service earned shall
13not exceed 1/2 year.
14    (d) The other provisions of this Section shall not apply in
15the case of any former employee who is receiving a retirement
16annuity from the fund and who re-enters service as an employee,
17unless the employee renders from and after the date of
18re-entry, at least 3 years of additional service.
19(Source: P.A. 93-654, eff. 1-16-04.)
 
20    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
21    Sec. 12-149. Financing. The board of park commissioners of
22any such park district shall annually levy a tax (in addition
23to the taxes now authorized by law) upon all taxable property
24embraced in the district, at the rate which, when added to the
25employee contributions under this Article and applied to the

 

 

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1fund created hereunder, shall be sufficient to provide for the
2purposes of this Article in accordance with the provisions
3thereof. Such tax shall be levied and collected with and in
4like manner as the general taxes of such district, and shall
5not in any event be included within any limitations of rate for
6general park purposes as now or hereafter provided by law, but
7shall be excluded therefrom and be in addition thereto. The
8amount of such annual tax to and including the year 1977 shall
9not exceed .0275% of the value, as equalized or assessed by the
10Department of Revenue, of all taxable property embraced within
11the park district, provided that for the year 1978, and for
12each year thereafter, the amount of such annual tax shall be at
13a rate on the dollar of assessed valuation of all taxable
14property that will produce, when extended, for the year 1978
15the following sum: 0.825 times the amount of employee
16contributions during the fiscal year 1976; for the year 1979,
170.85 times the amount of employee contributions during the
18fiscal year 1977; for the year 1980, 0.90 times the amount of
19employee contributions during the fiscal year 1978; for the
20year 1981, 0.95 times the amount of employee contributions
21during the fiscal year 1979; for the year 1982, 1.00 times the
22amount of employee contributions during the fiscal year 1980;
23for the year 1983, 1.05 times the amount of contributions made
24on behalf of employees during the fiscal year 1981; and for the
25year 1984 and each year thereafter, an amount equal to 1.10
26times the employee contributions during the fiscal year 2-years

 

 

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1prior to the year for which the applicable tax is levied. For
2the year 2014, this calculation shall be 1.10 times the amount
3of employee contributions during the 12-month fiscal year
4ending June 30, 2012; and for the year 2015, this calculation
5shall be 1.10 times the amount of employee contributions during
6the 12-month fiscal year ending December 31, 2013. As used in
7this Section, the term "employee contributions" means
8contributions by employees for retirement annuity, spouse's
9annuity, automatic increase in retirement annuity, and death
10benefit.
11    In respect to park district employees, other than
12policemen, who are transferred to the employment of a city by
13virtue of the "Exchange of Functions Act of 1957", the
14corporate authorities of the city shall annually levy a tax
15upon all taxable property embraced in the city, as equalized or
16assessed by the Department of Revenue, at such rate per cent of
17the value of such property as shall be sufficient, when added
18to the amounts deducted from the salary or wages of such
19employees, to provide the benefits to which such employees,
20their dependents and beneficiaries are entitled under the
21provisions of this Article. The park district shall not levy a
22tax hereunder in respect to such employees. The tax levied by
23the city under authority of this Article shall be in addition
24to and exclusive of all other taxes authorized by law to be
25levied by the city for corporate, annuity fund or other
26purposes.

 

 

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1    All moneys accruing from the levy and collection of taxes,
2pursuant to this section, shall be remitted to the board by the
3employers as soon as they are received. Where a city has levied
4a tax pursuant to this Section in respect to park district
5employees transferred to the employment of a city, the
6treasurer of such city or other authorized officer shall remit
7the moneys accruing from the levy and collection of such tax as
8soon as they are received. Such remittances shall be made upon
9a pro rata share basis, whereby each employer shall pay to the
10board such employer's proportionate percentage of each payment
11of taxes received by it, according to the ratio which its tax
12levy for this fund bears to the total tax levy of such
13employer.
14    Should any board of park commissioners included under the
15provisions of this Article be without authority to levy the tax
16provided in this Section the corporation authorities (meaning
17the supervisor, clerk and assessor) of the town or towns for
18which such board shall be the board of park commissioners shall
19levy such tax.
20    Employer contributions to the Fund may be reduced by
21$5,000,000 for calendar years 2004 and 2005.
22(Source: P.A. 93-654, eff. 1-16-04.)
 
23    (40 ILCS 5/12-167)  (from Ch. 108 1/2, par. 12-167)
24    Sec. 12-167. To keep records, books and prepare reports.
25    To keep a record of all its proceedings which shall be open

 

 

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1to inspection by the public; to keep such books and records as
2are necessary for the transaction of its business; and to
3prepare a report, as of the last day June 30 of each fiscal
4year, setting forth the income and disbursements of the fund
5for the year, and the amount of its assets and liabilities at
6the close of the year. Such statement shall include, among
7other things, the following information:
8    (a) the total of the reserves on all annuities being paid
9and to be paid from the fund to employees and widows whose
10annuities are determined but not entered upon, calculating such
11reserves as if the annuities were actually entered upon;
12    (b) the total of the liabilities of the employer for prior
13service annuities and widow's prior service annuities,
14including the present values of such annuities that are entered
15upon.
16(Source: Laws 1963, p. 161.)
 
17    (40 ILCS 5/12-168)  (from Ch. 108 1/2, par. 12-168)
18    Sec. 12-168. To have an audit.
19    To have an annual audit of the books, records and reserves
20of the fund as of the last day of each fiscal June 30th, in each
21year, by a certified public accountant. A copy of the report of
22such audit shall be filed with the board of park commissioners,
23and a synopsis thereof shall be prepared for public
24distribution.
25(Source: Laws 1963, p. 161.)
 

 

 

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1    (40 ILCS 5/12-169)  (from Ch. 108 1/2, par. 12-169)
2    Sec. 12-169. To appoint employees.
3    To appoint such actuarial, legal, medical, clerical and
4other employees as may be necessary in the administration of
5the fund and fix their compensation.
6    One or more actuaries shall be employed with duty to
7determine the amount of money necessary to be provided under
8this Article, and to assist the board in preparing the annual
9statement as of the last day June 30 of each fiscal year, and
10to certify to the correctness thereof.
11(Source: Laws 1963, p. 161.)
 
12    (40 ILCS 5/12-183)  (from Ch. 108 1/2, par. 12-183)
13    Sec. 12-183. Annual actuarial valuation.
14    An actuarial valuation shall be made annually of the
15liabilities and reserves for present and prospective annuities
16and benefits, and beginning January 1, 2013 July 1, 1973 a
17general investigation shall be made and shall be completed
18every 5 years thereafter of the operating experience of the
19fund as to mortality, disability, retirement, marital status of
20employees, withdrawal from service without right to annuity,
21investment earnings and other factors of actuarial criteria.
22    Upon the basis of the annual actuarial valuation and
23quinquennial actuarial investigations, the actuary shall
24recommend the tables to be used in the annual valuations and in

 

 

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1current operations including the prescribed rate of interest,
2and shall advise the board on any matters of actuarial
3character affecting the financial condition of the fund and its
4operations.
5(Source: P.A. 78-266.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.