Rep. Elaine Nekritz
Filed: 5/17/2016
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1 | AMENDMENT TO HOUSE BILL 705
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2 | AMENDMENT NO. ______. Amend House Bill 705 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 8-173, 8-189, 8-190, 8-191, and 8-243.2 and | ||||||
6 | by adding Section 8-173.2 as follows:
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7 | (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
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8 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
9 | which has been held unconstitutional) | ||||||
10 | Sec. 8-173. Financing; required annual contributions; tax | ||||||
11 | levy.
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12 | (a) Except as provided in subsection (f) of this Section, | ||||||
13 | the city council
of the city shall levy a tax annually upon all | ||||||
14 | taxable property in the city at
a rate that will produce a sum | ||||||
15 | which, when added to the amounts deducted from
the salaries of | ||||||
16 | the employees or otherwise contributed by them and the
amounts |
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1 | deposited under subsection (f), will be sufficient for the
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2 | requirements of this Article, but which when extended will | ||||||
3 | produce an amount
not to exceed the greater of the following: | ||||||
4 | (a) the sum obtained by the levy
of a tax of .1093% of the | ||||||
5 | value, as equalized or assessed by the Department
of Revenue, | ||||||
6 | of all taxable property within such city, or (b) the sum of
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7 | $12,000,000.
However any city in which a Fund has been | ||||||
8 | established and in operation
under this Article for more than 3 | ||||||
9 | years prior to 1970 shall
levy for the year 1970 a tax at a rate | ||||||
10 | on the dollar of assessed
valuation of all taxable property | ||||||
11 | that will produce, when extended, an
amount not to exceed 1.2 | ||||||
12 | times the total amount of contributions made by
employees to | ||||||
13 | the Fund for annuity purposes in the calendar year 1968,
and, | ||||||
14 | for the year 1971 and 1972 such levy that will produce, when
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15 | extended, an amount not to exceed 1.3 times the total amount of
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16 | contributions made by employees to the Fund for annuity
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17 | purposes in the calendar years 1969 and 1970, respectively; and | ||||||
18 | for the
year 1973 an amount not to exceed 1.365 times such | ||||||
19 | total amount of
contributions made by employees for annuity | ||||||
20 | purposes in the calendar
year 1971; and for the year 1974 an | ||||||
21 | amount not to exceed 1.430 times
such total amount of | ||||||
22 | contributions made by employees for annuity
purposes in the | ||||||
23 | calendar year 1972; and for the year 1975 an amount not
to | ||||||
24 | exceed 1.495 times such total amount of contributions made by
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25 | employees for annuity purposes in the calendar year 1973; and | ||||||
26 | for the year 1976
an amount not to exceed 1.560 times such |
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1 | total amount of contributions made by
employees for annuity | ||||||
2 | purposes in the calendar year 1974; and for the year 1977
an | ||||||
3 | amount not to exceed 1.625 times such total amount of | ||||||
4 | contributions made by
employees for annuity purposes in the | ||||||
5 | calendar year 1975; and for the year 1978
and each year | ||||||
6 | thereafter, such levy as will produce, when
extended, an amount | ||||||
7 | not to exceed the total amount of
contributions made by or on | ||||||
8 | behalf of employees to the Fund for annuity
purposes in the | ||||||
9 | calendar year 2 years prior to the year for which the annual
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10 | applicable tax is levied, multiplied by 1.690 for the years | ||||||
11 | 1978 through 1998
and by 1.250 for the years year 1999 through | ||||||
12 | 2014, and by 1.85 for the year 2015. Beginning in levy year | ||||||
13 | 2016, and in each year thereafter, the levy shall not exceed | ||||||
14 | the amount of the city's total required contribution to the | ||||||
15 | Fund for the next payment year, as determined under subsection | ||||||
16 | (a-5). For the purposes of this Section, the payment year is | ||||||
17 | the year immediately following the levy year and for each year | ||||||
18 | thereafter .
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19 | The tax shall be levied and collected in like manner with | ||||||
20 | the general
taxes of the city, and shall be exclusive of and in | ||||||
21 | addition to the
amount of tax the city is now or may hereafter | ||||||
22 | be authorized to levy for
general purposes under any laws which | ||||||
23 | may limit the amount of tax which
the city may levy for general | ||||||
24 | purposes. The county clerk of the county
in which the city is | ||||||
25 | located, in reducing tax levies under the
provisions of any Act | ||||||
26 | concerning the levy and extension of taxes, shall
not consider |
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1 | the tax herein provided for as a part of the general tax
levy | ||||||
2 | for city purposes, and shall not include the same within any
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3 | limitation of the percent of the assessed valuation upon which | ||||||
4 | taxes are
required to be extended for such city.
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5 | Revenues derived from such tax shall be paid to the city | ||||||
6 | treasurer of
the city as collected and held by him for the | ||||||
7 | benefit of the fund.
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8 | If the payments on account of taxes are insufficient during | ||||||
9 | any year
to meet the requirements of this Article, the city may | ||||||
10 | issue tax
anticipation warrants against the current tax levy. | ||||||
11 | The city may continue to use other lawfully available funds in | ||||||
12 | addition to or in lieu of all or part of the levy, as provided | ||||||
13 | under subsection (f) of this Section.
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14 | Beginning in payment year 2017 the city shall pay to the | ||||||
15 | fund the required annual contribution as stated in subsection | ||||||
16 | (a-5). For payment years 2017 through 2020, the required annual | ||||||
17 | contribution as determined under paragraph (1) of subsection | ||||||
18 | (a-5) shall be adjusted as specified in items (A) through (D) | ||||||
19 | of that subsection. In any payment year, the city may pay more | ||||||
20 | than the required annual contribution calculated under | ||||||
21 | subsection (a-5) for that payment year. | ||||||
22 | (a-5) Beginning in payment year 2017, the city's required | ||||||
23 | annual contribution to the fund shall be an amount determined | ||||||
24 | by an enrolled actuary retained by the fund, in accordance with | ||||||
25 | this subsection (a-5). The contributions shall be determined | ||||||
26 | under the entry age normal actuarial cost method. |
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1 | (1) For payment years 2017 through 2055, the city's | ||||||
2 | required annual contribution shall be equal to the sum of | ||||||
3 | (i) the city's portion of the projected normal cost for the | ||||||
4 | fiscal year, plus (ii) an annual amount determined on a | ||||||
5 | level percentage of applicable employee payroll basis | ||||||
6 | (reflecting any limits on individual participants' pay | ||||||
7 | that apply for benefit and contribution purposes under this | ||||||
8 | fund) that is sufficient to bring the total actuarial | ||||||
9 | assets of the fund up to 90% of the total actuarial | ||||||
10 | liabilities of the fund by the end of fiscal year 2055; | ||||||
11 | except that the required annual contributions in years 2017 | ||||||
12 | through 2020 shall be reduced as follows: | ||||||
13 | (A) The required contribution for payment year | ||||||
14 | 2017 shall be 60% of the amount otherwise calculated | ||||||
15 | for that year under this paragraph (1). | ||||||
16 | (B) The required contribution for payment year | ||||||
17 | 2018 shall be 70% of the amount otherwise calculated | ||||||
18 | for that year under this paragraph (1). | ||||||
19 | (C) The required contribution for payment year | ||||||
20 | 2019 shall be 80% of the amount otherwise calculated | ||||||
21 | for that year under this paragraph (1). | ||||||
22 | (D) The required contribution for payment year | ||||||
23 | 2020 shall be 90% of the amount otherwise calculated | ||||||
24 | for that year under this paragraph (1). | ||||||
25 | (2) Beginning in payment year 2056, the city's required | ||||||
26 | contribution in that year and each year thereafter shall be |
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1 | an annual amount that is equal to (i) the city's portion of | ||||||
2 | the projected normal cost for the fiscal year, plus (ii) | ||||||
3 | the annual amount needed to bring the total actuarial | ||||||
4 | assets of the fund up to 90% of the total actuarial | ||||||
5 | liabilities of the fund as of the end of that year. | ||||||
6 | (a-7) The city's required annual contribution to the fund | ||||||
7 | may be paid with any available funds and shall be paid by the | ||||||
8 | city to the fund for the benefit of the fund in the same manner | ||||||
9 | as applicable tax receipts. | ||||||
10 | (a-10) If the city fails to transmit to the fund | ||||||
11 | contributions required of it under this Article by December | ||||||
12 | 31st of the year in which such contributions are due, the fund | ||||||
13 | may, after giving notice to the city, certify to the State | ||||||
14 | Comptroller the amounts of the delinquent payments in | ||||||
15 | accordance with any applicable rules of the Comptroller, and | ||||||
16 | the Comptroller must, beginning in 2017, deduct and remit to | ||||||
17 | the fund the certified amounts from payments of State funds to | ||||||
18 | the city. The State Comptroller may not deduct from any | ||||||
19 | payments of State funds to the city more than the amount of | ||||||
20 | delinquent payments certified to the State Comptroller by the | ||||||
21 | fund. | ||||||
22 | (b) On or before July 1, annually, the board shall provide | ||||||
23 | to the city council the projected annual amount required under | ||||||
24 | this Article, for which a tax, if chosen to be levied by the | ||||||
25 | city, would be levied in the following year. The board shall | ||||||
26 | compute the amounts necessary to be credited to the reserves |
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1 | established and maintained as herein provided, and shall make | ||||||
2 | an annual determination of the amount of the required city | ||||||
3 | contributions, once certified by an enrolled actuary retained | ||||||
4 | by the fund, which the results thereof will be provided to the | ||||||
5 | city council. On or before January 10, annually, the board | ||||||
6 | shall notify the
city council of the requirements of this | ||||||
7 | Article that the tax herein
provided shall be levied for that | ||||||
8 | current year. The board shall compute
the amounts necessary to | ||||||
9 | be credited to the reserves established and
maintained as | ||||||
10 | herein provided, and shall make an annual determination of
the | ||||||
11 | amount of the required city contributions, and certify the | ||||||
12 | results
thereof to the city council.
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13 | (c) In respect to employees of the city who are transferred | ||||||
14 | to the
employment of a park district by virtue of the "Exchange | ||||||
15 | of Functions
Act of 1957", the corporate authorities of the | ||||||
16 | park district shall
annually levy a tax upon all the taxable | ||||||
17 | property in the park district
at such rate per cent of the | ||||||
18 | value of such property, as equalized or
assessed by the | ||||||
19 | Department of Revenue, as shall be
sufficient, when added to | ||||||
20 | the amounts deducted from their salaries and
otherwise | ||||||
21 | contributed by them to provide the benefits to which they and
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22 | their dependents and beneficiaries are entitled under this | ||||||
23 | Article. The city
shall not levy a tax hereunder in respect to | ||||||
24 | such employees.
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25 | The tax so levied by the park district shall be in addition | ||||||
26 | to and
exclusive of all other taxes authorized to be levied by |
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1 | the park
district for corporate, annuity fund, or other | ||||||
2 | purposes. The county
clerk of the county in which the park | ||||||
3 | district is located, in reducing
any tax levied under the | ||||||
4 | provisions of any act concerning the levy and
extension of | ||||||
5 | taxes shall not consider such tax as part of the general
tax | ||||||
6 | levy for park purposes, and shall not include the same in any
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7 | limitation of the per cent of the assessed valuation upon which | ||||||
8 | taxes
are required to be extended for the park district. The | ||||||
9 | proceeds of the
tax levied by the park district, upon receipt | ||||||
10 | by the district, shall be
immediately paid over to the city | ||||||
11 | treasurer of the city for the uses and
purposes of the fund.
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12 | The various sums to be contributed by the city and park | ||||||
13 | district and
allocated for the purposes of this Article, and | ||||||
14 | any interest to be
contributed by the city, shall be derived | ||||||
15 | from the revenue from the taxes
authorized in this Section or | ||||||
16 | otherwise as expressly provided
in this Section.
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17 | If it is not possible or practicable for the city to make
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18 | contributions for age and service annuity and widow's annuity | ||||||
19 | at the
same time that employee contributions are made for such
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20 | purposes, such city contributions shall be construed to be due | ||||||
21 | and
payable as of the end of the fiscal year for which the tax | ||||||
22 | is levied and
shall accrue thereafter with interest at the | ||||||
23 | effective rate until paid.
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24 | (d) With respect to employees whose wages are funded as | ||||||
25 | participants
under the Comprehensive Employment and Training | ||||||
26 | Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. |
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1 | 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | ||||||
2 | subsequent to October 1, 1978, and in instances
where the board | ||||||
3 | has elected to establish a manpower program reserve, the
board | ||||||
4 | shall compute the amounts necessary to be credited to the | ||||||
5 | manpower
program reserves established and maintained as herein | ||||||
6 | provided, and
shall make a periodic determination of the amount | ||||||
7 | of required
contributions from the City to the reserve to be | ||||||
8 | reimbursed by the
federal government in accordance with rules | ||||||
9 | and regulations established
by the Secretary of the United | ||||||
10 | States Department of Labor or his
designee, and certify the | ||||||
11 | results thereof to the City Council. Any such
amounts shall | ||||||
12 | become a credit to the City and will be used to reduce the
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13 | amount which the City would otherwise contribute during | ||||||
14 | succeeding years
for all employees.
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15 | (e) In lieu of establishing a manpower program reserve with | ||||||
16 | respect
to employees whose wages are funded as participants | ||||||
17 | under the
Comprehensive Employment and Training Act of 1973, as | ||||||
18 | authorized by
subsection (d), the board may elect to establish | ||||||
19 | a special municipality
contribution rate for all such | ||||||
20 | employees. If this option is elected, the
City shall contribute | ||||||
21 | to the Fund from federal funds provided under the
Comprehensive | ||||||
22 | Employment and Training Act program at the special rate so
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23 | established and such contributions shall become a credit to the | ||||||
24 | City and
be used to reduce the amount which the City would | ||||||
25 | otherwise contribute
during succeeding years for all | ||||||
26 | employees.
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1 | (f) In lieu of levying all or a portion of the tax required | ||||||
2 | under this
Section in any year, the city may deposit with the | ||||||
3 | city treasurer no later than
March 1 of that year for the | ||||||
4 | benefit of the fund, to be held in accordance with
this | ||||||
5 | Article, an amount that, together with the taxes levied under | ||||||
6 | this Section
for that year, is not less than the amount of the | ||||||
7 | city contributions for that
year as certified by the board to | ||||||
8 | the city council. The deposit may be derived
from any source | ||||||
9 | legally available for that purpose, including, but not limited
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10 | to, the proceeds of city borrowings. The making of a deposit | ||||||
11 | shall satisfy
fully the requirements of this Section for that | ||||||
12 | year to the extent of the
amounts so deposited. Amounts | ||||||
13 | deposited under this subsection may be used by
the fund for any | ||||||
14 | of the purposes for which the proceeds of the tax levied by
the | ||||||
15 | city under this Section may be used, including the payment of | ||||||
16 | any amount
that is otherwise required by this Article to be | ||||||
17 | paid from the proceeds of that
tax.
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18 | (Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98; | ||||||
19 | 90-766, eff.
8-14-98.) | ||||||
20 | (40 ILCS 5/8-173.2 new) | ||||||
21 | Sec. 8-173.2. Funding obligation. | ||||||
22 | (a) Beginning January 1, 2017, the city shall be obligated | ||||||
23 | to contribute to the fund in each fiscal year an amount not | ||||||
24 | less than the amount determined annually under subsection (a-5) | ||||||
25 | of Section 8-173 of this Code. Notwithstanding any other |
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1 | provision of law, if the city fails to pay the amount | ||||||
2 | guaranteed under this Section on or before December 31 of the | ||||||
3 | year in which such amount is due, the retirement board may | ||||||
4 | bring a mandamus action in the Circuit Court of Cook County to | ||||||
5 | compel the city to make the required payment, irrespective of | ||||||
6 | other remedies that may be available to the fund. The | ||||||
7 | obligations and causes of action created under this Section | ||||||
8 | shall be in addition to any other right or remedy otherwise | ||||||
9 | accorded by common law or State or federal law, and nothing in | ||||||
10 | this Section shall be construed to deny, abrogate, impair, or | ||||||
11 | waive any such common law or statutory right or remedy. | ||||||
12 | (b) In ordering the city to make the required payment, the | ||||||
13 | court may order a reasonable payment schedule to enable the | ||||||
14 | city to make the required payment without significantly | ||||||
15 | imperiling the public health, safety, or welfare.
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16 | (40 ILCS 5/8-189) (from Ch. 108 1/2, par. 8-189)
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17 | Sec. 8-189. Contributions by city for prior service | ||||||
18 | annuities and pensions under former
acts, and for other | ||||||
19 | purposes. | ||||||
20 | The city shall contribute annually, from the sum produced | ||||||
21 | by the required annual contributions tax
levy herein | ||||||
22 | authorized , all sums required for the purposes of this Article
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23 | other than those stated in this Section.
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24 | The balance of the sum produced by the required annual | ||||||
25 | contributions tax levy shall be applied for the
following |
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1 | purposes:
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2 | (a) The city shall make contributions to provide prior | ||||||
3 | service and
widow's prior service annuities, and other | ||||||
4 | annuities, pensions and benefits
which have been or shall be | ||||||
5 | allowed or granted under any of the following
Acts or in accord | ||||||
6 | with the following described provisions:
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7 | 1. The Municipal pension fund Act as defined in Section | ||||||
8 | 8-123 of this
Article with further reference to Section | ||||||
9 | 8-238; Public School Employees'
Pension Act of 1903, | ||||||
10 | Sections 8-107 and 8-239; Court and Law Department
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11 | Employees' Annuity Act, Sections 8-105 and 8-240; Board of | ||||||
12 | Election
Commissioners Employees' Annuity Act, Sections | ||||||
13 | 8-106 and 8-240; Public
Library Employees' Pension Act, | ||||||
14 | Sections 8-107.1 and 8-240.1; House of
Correction | ||||||
15 | Employees' Pension Act, Sections 8-107.2 and 8-240.2.
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16 | 2. To meet such part of any minimum annuity as shall be | ||||||
17 | in excess of the
age and service annuity and prior service | ||||||
18 | annuity; and such part of any
minimum annuity for widows as | ||||||
19 | shall be in excess of the widow's annuities
and widow's | ||||||
20 | prior service annuity; also for the purpose of providing | ||||||
21 | the
city cost of automatic increases in annuity after | ||||||
22 | retirement in accord with
Section 8-137, and for any other | ||||||
23 | purpose for which moneys are not otherwise
provided in this | ||||||
24 | Article.
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25 | 3. To provide a sufficient balance in the investment | ||||||
26 | and interest
reserve to permit a transfer from that reserve |
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1 | to other reserves of the
fund;
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2 | 4. To credit to the city contribution reserve such | ||||||
3 | amounts required from
the city but not contributed by it | ||||||
4 | for age and service and prior service
annuities, and | ||||||
5 | widows' annuities and widows' prior service annuities.
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6 | (b) All such contributions shall be credited to the prior | ||||||
7 | service
annuity reserve. When the balance of this reserve | ||||||
8 | equals its liabilities
(including in addition to all other | ||||||
9 | liabilities, the present values of all
annuities, present or | ||||||
10 | prospective, according to the applicable mortality
tables and | ||||||
11 | rates of interest), the city shall cease to contribute the sum
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12 | stated in this section.
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13 | Whenever the balance of the investment and interest reserve | ||||||
14 | is not
sufficient to permit a transfer from that reserve to any | ||||||
15 | other reserve, the
city shall contribute sums sufficient to | ||||||
16 | make possible such transfer;
provided, that if annexation of | ||||||
17 | territory and the employment by the city of
any employee of any | ||||||
18 | such territory at the time of annexation, after the
city has | ||||||
19 | ceased to contribute as herein provided, results in additional
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20 | liabilities for prior service annuity and widow's prior service | ||||||
21 | annuity for
any such employee, contributions by the city for | ||||||
22 | such purposes shall be
resumed.
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23 | (Source: P.A. 76-1301.)
| ||||||
24 | (40 ILCS 5/8-190) (from Ch. 108 1/2, par. 8-190)
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25 | Sec. 8-190. Contribution by city for administration costs. |
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1 | The city shall contribute from revenue derived from required | ||||||
2 | annual contributions taxes herein
authorized, the amount | ||||||
3 | necessary to defray costs of administration of the
fund. | ||||||
4 | Beginning July 1, 1987, the board shall estimate and approve
a | ||||||
5 | budget for the entire cost of administration of the fund | ||||||
6 | required each
year to be contributed by the city by
its regular | ||||||
7 | January meeting for the current fiscal year.
| ||||||
8 | (Source: P.A. 85-964.)
| ||||||
9 | (40 ILCS 5/8-191) (from Ch. 108 1/2, par. 8-191)
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10 | Sec. 8-191. Estimates of sums required for certain | ||||||
11 | annuities and benefits.
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12 | The board shall estimate the amounts required each year to | ||||||
13 | pay for all
annuities and benefits and administrative expenses. | ||||||
14 | The amounts shall be
paid into the fund annually by the city | ||||||
15 | from the required annual contributions prescribed tax levy .
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16 | (Source: Laws 1963, p. 161.)
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17 | (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
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18 | Sec. 8-243.2. Alternative annuity for city officers.
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19 | (a) For the purposes of this Section and Sections 8-243.1 | ||||||
20 | and 8-243.3,
"city officer" means the city clerk, the city | ||||||
21 | treasurer, or an alderman of
the city elected by vote of the | ||||||
22 | people, while serving in that capacity or as
provided in | ||||||
23 | subsection (f), who has elected to participate in the Fund.
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24 | (b) Any elected city officer, while serving in that |
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1 | capacity or as
provided in subsection (f), may elect to | ||||||
2 | establish alternative credits for
an alternative annuity by | ||||||
3 | electing in writing to make additional optional
contributions | ||||||
4 | in accordance with this Section and the procedures
established | ||||||
5 | by the board. Such elected city officer may discontinue making
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6 | the additional optional contributions by notifying the Fund in | ||||||
7 | writing in
accordance with this Section and procedures | ||||||
8 | established by the board.
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9 | Additional optional contributions for the alternative | ||||||
10 | annuity shall
be as follows:
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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 | 8-174
and 8-182.
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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.
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1 | (c) In lieu of the retirement annuity otherwise payable | ||||||
2 | under this
Article, any city officer elected by vote of the | ||||||
3 | people who (1) has
elected to participate in the Fund and make | ||||||
4 | additional optional
contributions in accordance with this | ||||||
5 | Section, and (2) has attained
age 55 with at least 10 years of | ||||||
6 | service credit, or has
attained age 60 with at least 8 years of | ||||||
7 | service credit, may
elect to have his retirement annuity | ||||||
8 | computed as follows: 3% of the
participant's salary at the time | ||||||
9 | of termination of service for each of the
first 8 years of | ||||||
10 | service credit, plus 4% of such salary for each of the
next 4 | ||||||
11 | years of service credit, plus 5% of such salary for each year | ||||||
12 | of
service credit in excess of 12 years, subject to a maximum | ||||||
13 | of 80% of such
salary. To the extent such elected city officer | ||||||
14 | has made additional
optional contributions with respect to only | ||||||
15 | a portion of his years of
service credit, his retirement | ||||||
16 | annuity will first be determined in
accordance with this | ||||||
17 | Section to the extent such additional optional
contributions | ||||||
18 | were made, and then in accordance with the remaining Sections
| ||||||
19 | of this Article to the extent of years of service credit with | ||||||
20 | respect to
which additional optional contributions were not | ||||||
21 | made.
| ||||||
22 | (d) In lieu of the disability benefits otherwise payable | ||||||
23 | under this
Article, any city officer elected by vote of the | ||||||
24 | people who (1) has
elected to participate in the Fund, and (2) | ||||||
25 | has become
permanently disabled and as a consequence is unable | ||||||
26 | to perform the duties
of his office, and (3) was making |
| |||||||
| |||||||
1 | optional contributions in accordance with
this Section at the | ||||||
2 | time the disability was incurred, may elect to receive
a | ||||||
3 | disability annuity calculated in accordance with the formula in
| ||||||
4 | subsection (c). For the purposes of this subsection, such | ||||||
5 | elected city
officer shall be considered permanently disabled | ||||||
6 | only if: (i) disability
occurs while in service as an elected | ||||||
7 | city officer and is of such a nature
as to prevent him from | ||||||
8 | reasonably performing the duties of his office at
the time; and | ||||||
9 | (ii) the board has received a written certification by at
least | ||||||
10 | 2 licensed physicians appointed by it stating that such officer | ||||||
11 | is
disabled and that the disability is likely to be permanent.
| ||||||
12 | (e) Refunds of additional optional contributions shall be | ||||||
13 | made on the
same basis and under the same conditions as | ||||||
14 | provided under Sections 8-168,
8-170 and 8-171. Interest shall | ||||||
15 | be credited at the effective rate on the
same basis and under | ||||||
16 | the same conditions as for other contributions.
Optional | ||||||
17 | contributions shall be accounted for in a separate Elected City
| ||||||
18 | Officer Optional Contribution Reserve. Optional contributions | ||||||
19 | under this
Section shall be included in the amount of employee | ||||||
20 | contributions used to
compute the required annual | ||||||
21 | contributions tax levy under Section 8-173 , if applicable .
| ||||||
22 | (f) The effective date of this plan of optional alternative | ||||||
23 | benefits
and contributions shall be July 1, 1990, or the date | ||||||
24 | upon which approval is
received from the U.S. Internal Revenue | ||||||
25 | Service, whichever is later.
| ||||||
26 | The plan of optional alternative benefits and |
| |||||||
| |||||||
1 | contributions shall
not be available to any former city officer | ||||||
2 | or employee receiving an
annuity from the Fund on the effective | ||||||
3 | date of the plan, unless he
re-enters service as an elected | ||||||
4 | city officer and renders at least 3 years
of additional service | ||||||
5 | after the date of re-entry. However, a person who
holds office | ||||||
6 | as a city officer on June 1, 1995 may
elect to participate in | ||||||
7 | the plan, to transfer credits into the Fund from
other Articles | ||||||
8 | of this Code, and to make the contributions required for prior
| ||||||
9 | service, until 30 days after the effective date of this | ||||||
10 | amendatory Act
of the 92nd General Assembly, notwithstanding | ||||||
11 | the
ending of his term of
office prior to that effective date; | ||||||
12 | in the event that the person is already
receiving an annuity | ||||||
13 | from this Fund or any other Article of this Code at the
time of | ||||||
14 | making this election, the annuity shall be recalculated to | ||||||
15 | include any
increase resulting from participation in the plan, | ||||||
16 | with such increase taking
effect on the effective date of the | ||||||
17 | election.
| ||||||
18 | (Source: P.A. 92-599, eff. 6-28-02.)
| ||||||
19 | Section 10. The Illinois Pension Code is amended by | ||||||
20 | re-enacting Sections 8-137, 8-137.1, and 8-174 in the form in | ||||||
21 | which they existed before their amendment by Public Act 98-641 | ||||||
22 | (which has been held to be unconstitutional), as follows:
| ||||||
23 | (40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
| ||||||
24 | (Text of Section WITHOUT the changes made by P.A. 98-641, |
| |||||||
| |||||||
1 | which has been held unconstitutional) | ||||||
2 | Sec. 8-137. Automatic increase in annuity.
| ||||||
3 | (a) An employee who retired or retires from service after | ||||||
4 | December 31,
1959 and before January 1, 1987, having attained | ||||||
5 | age 60 or more, shall,
in January of the year
after the year in | ||||||
6 | which the first anniversary of retirement occurs, have
the | ||||||
7 | amount of his then fixed and payable monthly annuity increased | ||||||
8 | by 1
1/2%, and such first fixed annuity as granted at | ||||||
9 | retirement increased by
a further 1 1/2% in January of each | ||||||
10 | year thereafter. Beginning with
January of the year 1972, such | ||||||
11 | increases shall be at the rate of 2% in
lieu of the aforesaid | ||||||
12 | specified 1 1/2%, and beginning with January of the
year 1984 | ||||||
13 | such increases shall be at the rate of 3%.
Beginning in January | ||||||
14 | of 1999, such increases
shall be at the rate of 3% of the | ||||||
15 | currently payable monthly annuity,
including any increases | ||||||
16 | previously granted under this Article. An
employee who retires | ||||||
17 | on annuity after December 31, 1959 and before
January 1, 1987, | ||||||
18 | but before age 60, shall receive such
increases beginning in | ||||||
19 | January of the year after the year
in which he attains age 60.
| ||||||
20 | An employee who retires from service on or after January 1, | ||||||
21 | 1987 shall, upon
the first annuity payment date following the | ||||||
22 | first anniversary of the date of
retirement, or upon the first | ||||||
23 | annuity payment date following attainment of age
60, whichever | ||||||
24 | occurs later, have his then fixed and payable monthly annuity
| ||||||
25 | increased by 3%, and such annuity shall be increased by an | ||||||
26 | additional 3% of the
original fixed annuity on the same date |
| |||||||
| |||||||
1 | each year thereafter. Beginning in
January of 1999, such | ||||||
2 | increases shall be at the rate of 3% of the currently
payable | ||||||
3 | monthly annuity, including any increases previously granted | ||||||
4 | under this
Article.
| ||||||
5 | (a-5) Notwithstanding the provisions of subsection (a), | ||||||
6 | upon the first
annuity payment date following (1) the third | ||||||
7 | anniversary of retirement, (2)
the attainment of age 53, or (3) | ||||||
8 | January 1, 2002, whichever
occurs latest,
the
monthly annuity | ||||||
9 | of an employee who retires on annuity prior to the attainment
| ||||||
10 | of age 60 and has not received an increase under subsection (a) | ||||||
11 | shall
be
increased by 3%, and the annuity shall be increased by | ||||||
12 | an additional
3% of the
current payable monthly annuity, | ||||||
13 | including any
increases previously
granted
under this Article, | ||||||
14 | on the same date each year thereafter. The increases
provided | ||||||
15 | under this subsection are in lieu of the increases provided in
| ||||||
16 | subsection (a).
| ||||||
17 | (a-6) Notwithstanding the provisions of subsections (a) | ||||||
18 | and (a-5), for all
calendar years following the year in which | ||||||
19 | this amendatory Act of the 93rd
General Assembly takes effect, | ||||||
20 | an increase in annuity under this Section that
would otherwise | ||||||
21 | take effect at any time during the year shall instead take
| ||||||
22 | effect in January of that year.
| ||||||
23 | (b) Subsections (a), (a-5), and (a-6) are not
applicable to | ||||||
24 | an employee retiring
and receiving a term annuity, as herein | ||||||
25 | defined, nor to any otherwise
qualified employee who retires | ||||||
26 | before he makes employee contributions (at
the 1/2 of 1% rate |
| |||||||
| |||||||
1 | as provided in this Act) for this additional
annuity for not | ||||||
2 | less than the equivalent of one full year. Such
employee, | ||||||
3 | however, shall make arrangement to pay to the fund a balance
of | ||||||
4 | such 1/2 of 1% contributions, based on his final salary, as | ||||||
5 | will
bring such 1/2 of 1% contributions, computed without | ||||||
6 | interest, to the
equivalent of or completion of one year's | ||||||
7 | contributions.
| ||||||
8 | Beginning with January, 1960, each employee shall | ||||||
9 | contribute by means of
salary deductions 1/2 of 1% of each | ||||||
10 | salary payment, concurrently with
and in addition to the | ||||||
11 | employee contributions otherwise made for annuity
purposes.
| ||||||
12 | Each such additional contribution shall be credited to an | ||||||
13 | account in
the prior service annuity reserve, to be used, | ||||||
14 | together with city
contributions, to defray the cost of the | ||||||
15 | specified annuity increments.
Any balance in such account at | ||||||
16 | the beginning of each calendar year shall
be credited with | ||||||
17 | interest at the rate of 3% per annum.
| ||||||
18 | Such additional employee contributions are not refundable, | ||||||
19 | except to
an employee who withdraws and applies for refund | ||||||
20 | under this Article, and
in cases where a term annuity becomes | ||||||
21 | payable. In such cases his
contributions shall be refunded, | ||||||
22 | without interest, and charged to such
account in the prior | ||||||
23 | service annuity reserve.
| ||||||
24 | (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; | ||||||
25 | 93-654, eff. 1-16-04.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
| ||||||
2 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
3 | which has been held unconstitutional) | ||||||
4 | Sec. 8-137.1. Automatic increases in annuity for certain | ||||||
5 | heretofore retired
participants.
A retired municipal employee | ||||||
6 | who (a) is receiving annuity based on a
service credit of 20 or | ||||||
7 | more years regardless of age at retirement or based
on a | ||||||
8 | service credit of 15 or more years with retirement at age 55 or | ||||||
9 | over,
and (b) does not qualify for the automatic increases in | ||||||
10 | annuity provided
for in Section 8-137 of this Article, and (c) | ||||||
11 | elects to make a contribution
to the Fund at a time and manner | ||||||
12 | prescribed by the Retirement Board, of a
sum equal to 1% of the | ||||||
13 | amount of final monthly salary times the number of
full years | ||||||
14 | of service on which the annuity was based in those cases where
| ||||||
15 | the annuity was computed on the money purchase formula and in | ||||||
16 | those cases
in which the annuity was computed under the minimum | ||||||
17 | annuity formula
provisions of this Article a sum equal to 1% of | ||||||
18 | the average monthly salary
on which the annuity was based times | ||||||
19 | such number of full years of service,
shall have his original | ||||||
20 | fixed and payable monthly amount of annuity
increased in | ||||||
21 | January of the year following the year in which he attains the
| ||||||
22 | age of 65 years, if such age of 65 years is attained in the year | ||||||
23 | 1969 or
later, by an amount equal to 1-1/2%, and by an equal | ||||||
24 | additional 1-1/2% in
January of each year thereafter. Beginning | ||||||
25 | with January of the year 1972,
such increases shall be at the | ||||||
26 | rate of 2% in lieu of the aforesaid
specified 1 1/2%, and |
| |||||||
| |||||||
1 | beginning January of the year 1984 such increases
shall be at | ||||||
2 | the rate of 3%.
Beginning in January of 1999, such increases | ||||||
3 | shall be at the rate of
3% of the currently payable monthly | ||||||
4 | annuity, including any increases previously
granted under this | ||||||
5 | Article.
| ||||||
6 | Whenever the retired municipal employee receiving annuity | ||||||
7 | has attained
the age of 66 or more in 1969, he shall have such | ||||||
8 | annuity increased in
January, 1970 by an amount equal to 1-1/2% | ||||||
9 | multiplied by the number equal
to the number of months of | ||||||
10 | January elapsing from and including January of
the year | ||||||
11 | immediately following the year he attained the age of 65 if
| ||||||
12 | retired at or before age 65, or from and including January of | ||||||
13 | the year
immediately following the year of retirement if | ||||||
14 | retired at an age greater
than 65, to and including January, | ||||||
15 | 1970, and by an equal additional 1-1/2%
in January of each year | ||||||
16 | thereafter. Beginning with January of the year
1972, such | ||||||
17 | increases shall be at the rate of 2% in lieu of the aforesaid
| ||||||
18 | specified 1 1/2%, and beginning January of the year 1984 such | ||||||
19 | increases
shall be at the rate of 3%.
Beginning in January of | ||||||
20 | 1999, such increases shall be at the rate of
3% of the | ||||||
21 | currently payable monthly annuity, including any increases | ||||||
22 | previously
granted under this Article.
| ||||||
23 | To defray the annual cost of such increases, the annual | ||||||
24 | interest income
of the Fund, accruing from investments held by | ||||||
25 | the Fund, exclusive of gains
or losses on sales or exchanges of | ||||||
26 | assets during the year, over and above
4% a year, shall be used |
| |||||||
| |||||||
1 | to the extent necessary and available to finance
the cost of | ||||||
2 | such increases for the following year, and such amount shall be
| ||||||
3 | transferred as of the end of each year, beginning with the year | ||||||
4 | 1969, to a
Fund account designated as the Supplementary Payment | ||||||
5 | Reserve from the
Investment and Interest Reserve set forth in | ||||||
6 | Section 8-221. The sums
contributed by annuitants as provided | ||||||
7 | for in this Section shall also be
placed in the aforesaid | ||||||
8 | Supplementary Payment Reserve and shall be applied
and used for | ||||||
9 | the purposes of such Fund account, together with the aforesaid
| ||||||
10 | interest.
| ||||||
11 | In the event the monies in the Supplementary Payment | ||||||
12 | Reserve in any year
arising from: (1) the available interest | ||||||
13 | income as defined hereinbefore and
accruing in the preceding | ||||||
14 | year above 4% a year and (2) the contributions by
retired | ||||||
15 | persons, as set forth hereinbefore, are insufficient to make | ||||||
16 | the
total payments to all persons estimated to be entitled to | ||||||
17 | the annuity
increases specified hereinbefore, then (3) any | ||||||
18 | interest earnings over 4% a
year beginning with the year 1969 | ||||||
19 | which were not previously used to finance
such increases and | ||||||
20 | which were transferred to the Prior Service Annuity
Reserve may | ||||||
21 | be used to the extent necessary and available to provide
| ||||||
22 | sufficient funds to finance such increases for the current | ||||||
23 | year, and such
sums shall be transferred from the Prior Service | ||||||
24 | Annuity Reserve.
| ||||||
25 | In the event the total monies available in the | ||||||
26 | Supplementary Payment
Reserve from the preceding indicated |
| |||||||
| |||||||
1 | sources are insufficient to make the
total payments to all | ||||||
2 | persons entitled to such increases for the year, a
| ||||||
3 | proportionate amount computed as the ratio of the monies | ||||||
4 | available to the
total of the total payments for that year | ||||||
5 | shall be paid to each person for
that year.
| ||||||
6 | The Fund shall be obligated for the payment of the | ||||||
7 | increases in annuity
as provided for in this Section only to | ||||||
8 | the extent that the assets for such
purpose, as specified | ||||||
9 | herein, are available.
| ||||||
10 | (Source: P.A. 90-766, eff. 8-14-98.)
| ||||||
11 | (40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
| ||||||
12 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
13 | which has been held unconstitutional) | ||||||
14 | Sec. 8-174. Contributions for age and service annuities for | ||||||
15 | present
employees and future entrants.
(a) Beginning on the | ||||||
16 | effective date and prior to July 1, 1947, 3
1/4%; and beginning | ||||||
17 | on July 1, 1947 and prior to July 1, 1953, 5%; and
beginning | ||||||
18 | July 1, 1953, and prior to January 1, 1972, 6%; and beginning
| ||||||
19 | January 1, 1972, 6-1/2% of each payment of the salary of each | ||||||
20 | present
employee and future entrant shall be contributed to the | ||||||
21 | fund as a
deduction from salary for age and service annuity.
| ||||||
22 | Such deductions beginning on the effective date and prior | ||||||
23 | to July 1,
1947 shall be made for a future entrant while he is | ||||||
24 | in the service until
he attains age 65 and for a present | ||||||
25 | employee while he is in the service
until the amount so |
| |||||||
| |||||||
1 | deducted from his salary with the amount deducted
from his | ||||||
2 | salary or paid by him according to law to any municipal pension
| ||||||
3 | fund in force on the effective date with interest on both such | ||||||
4 | amounts
at 4% per annum equals the sum that would have been to | ||||||
5 | his credit from
sums deducted from his salary if deductions at | ||||||
6 | the rate herein stated
had been made during his entire service | ||||||
7 | until he attained age 65 with
interest at 4% per annum for the | ||||||
8 | period subsequent to his attainment of
age 65. Such deductions | ||||||
9 | beginning July 1, 1947 shall be made and
continued for | ||||||
10 | employees while in the service.
| ||||||
11 | (b) Concurrently with each employee contribution beginning | ||||||
12 | on the
effective date and prior to July 1, 1947 the city shall | ||||||
13 | contribute 5
3/4%; and beginning on July 1, 1947 and prior to | ||||||
14 | July 1, 1953, 7%; and
beginning July 1, 1953, 6% of each | ||||||
15 | payment of such salary until the
employee attains age 65.
| ||||||
16 | (c) Each employee contribution made prior to the date the | ||||||
17 | age and
service annuity for an employee is fixed and each | ||||||
18 | corresponding city
contribution shall be credited to the | ||||||
19 | employee and allocated to the
account of the employee for whose | ||||||
20 | benefit it is made.
| ||||||
21 | (Source: P.A. 93-654, eff. 1-16-04.) | ||||||
22 | (40 ILCS 5/8-173.1 rep.) | ||||||
23 | (40 ILCS 5/8-174.2 rep.) | ||||||
24 | Section 15. The Illinois Pension Code is amended by | ||||||
25 | repealing Sections 8-173.1 and 8-174.2, as added by Public Act |
| |||||||
| |||||||
1 | 98-641 (which has been held to be unconstitutional). | ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
|