Full Text of HB5189 93rd General Assembly
HB5189eng 93RD GENERAL ASSEMBLY
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HB5189 Engrossed |
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LRB093 20837 LRD 46764 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections
7-142.1, 7-156, 7-169, and 7-173.1 as follows:
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| (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
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| Sec. 7-142.1. Sheriff's law enforcement employees.
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| (a) In lieu of the retirement annuity provided by | 9 |
| subparagraph 1 of
paragraph (a) of Section 7-142:
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| Any sheriff's law enforcement employee who
has 20 or more | 11 |
| years of service in that capacity and who terminates
service | 12 |
| prior to January 1, 1988 shall be entitled at his
option to | 13 |
| receive a monthly retirement annuity for his service as a
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| sheriff's law enforcement employee computed by multiplying 2% | 15 |
| for each year
of such service up to 10 years, 2 1/4% for each | 16 |
| year
of such service above 10 years and up to 20 years, and
2 | 17 |
| 1/2% for each year of such service above
20 years, by his | 18 |
| annual final rate of earnings and dividing by 12.
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| Any sheriff's law enforcement employee who has 20 or more | 20 |
| years of
service in that capacity and who terminates service on | 21 |
| or after January 1,
1988 and before July 1, 2004 shall be | 22 |
| entitled at his option to receive
a monthly retirement
annuity | 23 |
| for his service as a sheriff's law enforcement employee | 24 |
| computed by
multiplying 2.5% for each year of such service up | 25 |
| to 20 years, 2% for each
year of such service above 20 years | 26 |
| and up to 30 years, and 1% for each
year of such service above | 27 |
| 30 years, by his annual final rate of earnings
and dividing by | 28 |
| 12.
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| Any sheriff's law enforcement employee who has 20 or more | 30 |
| years of
service in that capacity and who terminates service on | 31 |
| or after July 1,
2004 shall be entitled at his or her option to | 32 |
| receive a monthly retirement
annuity for service as a sheriff's |
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| law enforcement employee computed by
multiplying 2.5% for each | 2 |
| year of such service by his annual final rate of
earnings and | 3 |
| dividing by 12.
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| If a sheriff's law enforcement employee has service in any | 5 |
| other
capacity, his retirement annuity for service as a | 6 |
| sheriff's law enforcement
employee may be computed under this | 7 |
| Section and the retirement annuity for
his other service under | 8 |
| Section 7-142.
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| In no case shall the total monthly retirement annuity for | 10 |
| persons who retire before July 1, 2004 exceed 75% of the
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| monthly final rate of earnings. In no case shall the total | 12 |
| monthly retirement annuity for persons who retire on or after | 13 |
| July 1, 2004 exceed 80% of the
monthly final rate of earnings.
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| (b) Whenever continued group insurance coverage is elected | 15 |
| in accordance
with the provisions of Section 367h of the | 16 |
| Illinois Insurance Code, as now
or hereafter amended, the total | 17 |
| monthly premium for such continued group
insurance coverage or | 18 |
| such portion thereof as is not paid
by the municipality shall, | 19 |
| upon request of the person electing such
continued group | 20 |
| insurance coverage, be deducted from any monthly pension
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| benefit otherwise payable to such person pursuant to this | 22 |
| Section, to be
remitted by the Fund to the insurance company
or | 23 |
| other entity providing the group insurance coverage.
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| (c) A sheriff's law enforcement employee who has service in | 25 |
| any other
capacity may convert up to 10 years of that service | 26 |
| into service as a sheriff's
law enforcement employee by paying | 27 |
| to the Fund an amount equal to (1) the
additional employee | 28 |
| contribution required under Section 7-173.1, (2) the | 29 |
| additional employer contribution required under Section 7-172, | 30 |
| plus (3) interest on those contributions at the
prescribed rate | 31 |
| from the date of the service to the date of payment.
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| (Source: P.A. 85-941.)
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| (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
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| Sec. 7-156. Surviving spouse annuities - amount.
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| (a) The amount of surviving spouse annuity shall be:
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| 1. Upon the death of an employee annuitant or such person | 2 |
| entitled, upon
application, to a retirement annuity at date of | 3 |
| death, (i) an amount equal
to 1/2 of the retirement annuity | 4 |
| which was or would
have been payable exclusive of the amount so | 5 |
| payable which was provided from
additional credits, and | 6 |
| disregarding any election made under paragraph (b) of
Section | 7 |
| 7-142, plus (ii) an annuity which could be provided at the then
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| attained age of the surviving spouse and under actuarial tables | 9 |
| then in effect,
from the excess of the additional credits, | 10 |
| (excluding any such credits used to
create a reversionary | 11 |
| annuity) used to provide the annuity granted pursuant to
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| paragraph (a) (2) of Section 7-142 of this article over the | 13 |
| total annuity
payments made pursuant thereto.
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| 2. Upon the death of a participating employee on or after | 15 |
| attainment of
age 55, an amount equal to 1/2 of the retirement | 16 |
| annuity
which he could have had as of the date of death had he | 17 |
| then retired and applied
for annuity, exclusive of the portion | 18 |
| thereof which could have been provided
from additional credits, | 19 |
| and disregarding paragraph (b) of Section 7-142,
plus an amount | 20 |
| equal to the annuity which could be provided from the total
of | 21 |
| his accumulated additional credits at date of death, on the | 22 |
| basis of the
attained age of the surviving spouse on such date.
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| 3. Upon the death of a participating employee before age | 24 |
| 55, an amount equal
to 1/2 of the retirement annuity which he | 25 |
| could have had
as of his attained age on the date of death, had | 26 |
| he then retired and applied
for annuity, and the provisions of | 27 |
| this Article that no such annuity shall
begin until the | 28 |
| employee has attained at least age 55 were not applicable,
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| exclusive of the portion thereof which could have been provided | 30 |
| from
additional credits and disregarding paragraph (b) of | 31 |
| Section 7-142, plus an
amount equal to the annuity which could | 32 |
| be provided from the total of his
accumulated additional | 33 |
| credits at date of death, on the basis of the
attained age of | 34 |
| the surviving spouse on such date.
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| In the case of the surviving spouse of a person who dies | 36 |
| before the
effective date of this amendatory Act of the 93rd |
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| General Assembly, if
the
a surviving spouse is more than 5 | 2 |
| years younger than the deceased,
that portion of the annuity | 3 |
| which is not based on additional credits shall
be reduced in | 4 |
| the ratio of the value of a life annuity of $1 per year at an
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| age of 5 years less than the attained age of the deceased, at | 6 |
| the earlier
of the date of the death or the date his retirement | 7 |
| annuity begins, to the
value of a life annuity of $1 per year | 8 |
| at the attained age of the surviving
spouse on such date, | 9 |
| according to actuarial tables approved by the Board.
This | 10 |
| reduction does not apply to the surviving spouse of a person | 11 |
| who dies
on or after the effective date of this amendatory Act | 12 |
| of the 93rd General
Assembly.
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| In computing the amount of a surviving spouse annuity, | 14 |
| incremental increases
of retirement annuities to the date of | 15 |
| death of the employee annuitant shall be
considered.
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| (b) Each surviving spouse annuity payable on January 1, | 17 |
| 1988 shall be
increased on that date by 3% of the original | 18 |
| amount of the annuity. Each
surviving spouse annuity that | 19 |
| begins after January 1, 1988 shall be
increased on the January | 20 |
| 1 next occurring after the annuity begins, by an
amount equal | 21 |
| to (i) 3% of the original amount thereof if the deceased
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| employee was receiving a retirement annuity at the time of his | 23 |
| death; otherwise
(ii) 0.167% of the original amount thereof for | 24 |
| each complete
month which has elapsed since the date the | 25 |
| annuity began.
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| On each January 1 after the date of the initial increase | 27 |
| under this
subsection, each surviving spouse annuity shall be | 28 |
| increased by 3% of the
originally granted amount of the | 29 |
| annuity.
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| (Source: P.A. 85-941.)
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| (40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
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| Sec. 7-169. Separation benefits ; repayments. If an | 33 |
| employee who has
received a separation benefit subsequently | 34 |
| becomes a participating employee,
and renders at least 2 years | 35 |
| of contributing service from the date of such
re-entry, he may |
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| pay to the fund the amount of the separation benefit, plus
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| interest at the effective rate for each year from the date of | 3 |
| payment of the
separation benefit to the date of repayment. | 4 |
| Upon payment his creditable
service shall be reinstated and the | 5 |
| payment shall be credited to his account
as normal | 6 |
| contributions. Beginning July 1, 2004, the requirement of
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| returning to service for at least 2 years does not apply to | 8 |
| persons who return
to service as a sheriff's law enforcement | 9 |
| employee.
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| (Source: P.A. 84-1028.)
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| (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
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| Sec. 7-173.1. Additional contribution by sheriff's law | 13 |
| enforcement
employees.
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| (a) Each sheriff's law enforcement employee shall make an | 15 |
| additional
contribution of 1% of earnings, which shall be | 16 |
| considered as normal
contributions. For earnings on or after | 17 |
| July 1, 1988, the additional
contribution shall be 2% of | 18 |
| earnings. For earnings on or after July 1,
2004, the additional | 19 |
| contribution shall be 2.5% of earnings; this increase
is | 20 |
| intended to defray the employee's portion of the cost of the | 21 |
| benefit
increases provided by this amendatory Act of the 93rd | 22 |
| General Assembly.
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| This additional contribution shall be payable for | 24 |
| retroactive service periods
which the employee elects to | 25 |
| establish and to periods of authorized leave of
absence.
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| (b) If the employee is awarded a retirement annuity under | 27 |
| Section
7-142 and not under Section 7-142.1, then the | 28 |
| additional contribution required
under this Section shall be | 29 |
| refunded with interest or paid as provided in
subsection (c). | 30 |
| If the employee returns to a participating status as a
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| sheriff's law enforcement employee, the employee may repay the | 32 |
| amount refunded
with interest and upon subsequent retirement be | 33 |
| entitled to a recomputation of
the retirement annuity under | 34 |
| Section 7-142.1 if the total service as a
sheriff's law | 35 |
| enforcement employee meets the requirements of that Section.
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LRB093 20837 LRD 46764 b |
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| (c) Instead of a refund under subsection (b), the retiring | 2 |
| employee may
elect to convert the amount of the refund into an | 3 |
| annuity, payable
separately from the retirement annuity. If the | 4 |
| annuitant dies before the
guaranteed amount has been | 5 |
| distributed, the remainder shall be paid in a lump
sum to the | 6 |
| designated beneficiary of the annuitant. The Board shall adopt | 7 |
| any
rules necessary for the implementation of this subsection.
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| (Source: P.A. 90-766, eff. 8-14-98.)
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| Section 90. The State Mandates Act is amended by adding | 10 |
| Section 8.28 as
follows:
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| (30 ILCS 805/8.28 new)
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| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 |
| of this
Act, no reimbursement by the State is required for the | 14 |
| implementation of
any mandate created by this amendatory Act of | 15 |
| the 93rd General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law. |
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