Full Text of SB2699 93rd General Assembly
SB2699 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2699
Introduced 2/4/2004, by Antonio Munoz SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-172 |
from Ch. 108 1/2, par. 7-172 |
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Amends the Illinois Pension Code. Makes a technical change concerning the Illinois Municipal Retirement Fund.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2699 |
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LRB093 17755 LRD 43435 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 7-172 as follows:
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| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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| Sec. 7-172. Contributions by participating municipalities | 8 |
| and
participating instrumentalities.
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| (a) Each participating municipality and each participating
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| instrumentality shall make payment to the fund as follows:
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| 1. municipality contributions in an amount determined | 12 |
| by applying
the municipality contribution rate to each | 13 |
| payment of earnings paid to
each of its participating | 14 |
| employees;
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| 2. an amount equal to the employee contributions | 16 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 17 |
| regardless of whether or not the employee contributions are
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| withheld as permitted by that Section;
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| 3. all accounts receivable, together with interest | 20 |
| charged thereon,
as provided in Section 7-209;
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| 4. if it has no participating employees with current | 22 |
| earnings, an
amount payable which, over a period of 20 | 23 |
| years beginning with the year
following an award of | 24 |
| benefit, will amortize, at the effective rate for
that | 25 |
| year, any negative balance in its municipality reserve | 26 |
| resulting
from the award. This amount when established will | 27 |
| be payable as a
separate contribution whether or not it | 28 |
| later has participating employees.
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| (b) A separate municipality contribution rate shall be | 30 |
| determined
for each calendar year for all participating | 31 |
| municipalities together
with all instrumentalities thereof. | 32 |
| The municipality contribution rate
shall be determined for |
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LRB093 17755 LRD 43435 b |
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| participating instrumentalities as if they were
participating | 2 |
| municipalities. The municipality contribution rate shall
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| the sum of the following percentages:
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| 1. The percentage of earnings of all the participating | 5 |
| employees of all
participating municipalities and | 6 |
| participating instrumentalities which, if paid
over the | 7 |
| entire period of their service, will be sufficient when | 8 |
| combined with
all employee contributions available for the | 9 |
| payment of benefits, to provide
all annuities for | 10 |
| participating employees, and the $3,000 death benefit
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| payable under Sections 7-158 and 7-164, such percentage to | 12 |
| be known as the
normal cost rate.
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| 2. The percentage of earnings of the participating | 14 |
| employees of each
participating municipality and | 15 |
| participating instrumentalities necessary
to adjust for | 16 |
| the difference between the present value of all benefits,
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| excluding temporary and total and permanent disability and | 18 |
| death benefits, to
be provided for its participating | 19 |
| employees and the sum of its accumulated
municipality | 20 |
| contributions and the accumulated employee contributions | 21 |
| and the
present value of expected future employee and | 22 |
| municipality contributions
pursuant to subparagraph 1 of | 23 |
| this paragraph (b). This adjustment shall be
spread over | 24 |
| the remainder of the period that is allowable under | 25 |
| generally
accepted accounting principles.
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| 3. The percentage of earnings of the participating | 27 |
| employees of all
municipalities and participating | 28 |
| instrumentalities necessary to provide
the present value | 29 |
| of all temporary and total and permanent disability
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| benefits granted during the most recent year for which | 31 |
| information is
available.
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| 4. The percentage of earnings of the participating | 33 |
| employees of all
participating municipalities and | 34 |
| participating instrumentalities
necessary to provide the | 35 |
| present value of the net single sum death
benefits expected | 36 |
| to become payable from the reserve established under
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LRB093 17755 LRD 43435 b |
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| Section 7-206 during the year for which this rate is fixed.
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| 5. The percentage of earnings necessary to meet any | 3 |
| deficiency
arising in the Terminated Municipality Reserve.
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| (c) A separate municipality contribution rate shall be | 5 |
| computed for
each participating municipality or participating | 6 |
| instrumentality
for its sheriff's law enforcement employees.
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| A separate municipality contribution rate shall be | 8 |
| computed for the
sheriff's law enforcement employees of each | 9 |
| forest preserve district that
elects to have such employees. | 10 |
| For the period from January 1, 1986 to
December 31, 1986, such | 11 |
| rate shall be the forest preserve district's regular
rate plus | 12 |
| 2%.
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| In the event that the Board determines that there is an | 14 |
| actuarial
deficiency in the account of any municipality with | 15 |
| respect to a person who
has elected to participate in the Fund | 16 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 17 |
| municipality's contribution rate so as to make up
that | 18 |
| deficiency over such reasonable period of time as the Board may | 19 |
| determine.
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| (d) The Board may establish a separate municipality | 21 |
| contribution
rate for all employees who are program | 22 |
| participants employed under the
federal Comprehensive | 23 |
| Employment Training Act by all of the
participating | 24 |
| municipalities and instrumentalities. The Board may also
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| provide that, in lieu of a separate municipality rate for these
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| employees, a portion of the municipality contributions for such | 27 |
| program
participants shall be refunded or an extra charge | 28 |
| assessed so that the
amount of municipality contributions | 29 |
| retained or received by the fund
for all CETA program | 30 |
| participants shall be an amount equal to that which
would be | 31 |
| provided by the separate municipality contribution rate for all
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| such program participants. Refunds shall be made to prime | 33 |
| sponsors of
programs upon submission of a claim therefor and | 34 |
| extra charges shall be
assessed to participating | 35 |
| municipalities and instrumentalities. In
establishing the | 36 |
| municipality contribution rate as provided in paragraph
(b) of |
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LRB093 17755 LRD 43435 b |
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| this Section, the use of a separate municipality contribution
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| rate for program participants or the refund of a portion of the
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| municipality contributions, as the case may be, may be | 4 |
| considered.
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| (e) Computations of municipality contribution rates for | 6 |
| the
following calendar year shall be made prior to the | 7 |
| beginning of each
year, from the information available at the | 8 |
| time the computations are
made, and on the assumption that the | 9 |
| employees in each participating
municipality or participating | 10 |
| instrumentality at such time will continue
in service until the | 11 |
| end of such calendar year at their respective rates
of earnings | 12 |
| at such time.
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| (f) Any municipality which is the recipient of State | 14 |
| allocations
representing that municipality's contributions for | 15 |
| retirement annuity
purposes on behalf of its employees as | 16 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 17 |
| shall pay the allocations so
received to the Board for such | 18 |
| purpose. Estimates of State allocations to
be received during | 19 |
| any taxable year shall be considered in the
determination of | 20 |
| the municipality's tax rate for that year under Section
7-171. | 21 |
| If a special tax is levied under Section 7-171, none of the
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| proceeds may be used to reimburse the municipality for the | 23 |
| amount of State
allocations received and paid to the Board. Any | 24 |
| multiple-county or
consolidated health department which | 25 |
| receives contributions from a county
under Section 11.2 of "An | 26 |
| Act in relation to establishment and maintenance
of county and | 27 |
| multiple-county health departments", approved July 9, 1943,
as | 28 |
| amended, or distributions under Section 3 of the Department of | 29 |
| Public
Health Act, shall use these only for municipality | 30 |
| contributions by the
health department.
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| (g) Municipality contributions for the several purposes | 32 |
| specified
shall, for township treasurers and employees in the | 33 |
| offices of the
township treasurers who meet the qualifying | 34 |
| conditions for coverage
hereunder, be allocated among the | 35 |
| several school districts and parts of
school districts serviced | 36 |
| by such treasurers and employees in the
proportion which the |
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| amount of school funds of each district or part of
a district | 2 |
| handled by the treasurer bears to the total amount of all
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| school funds handled by the treasurer.
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| From the funds subject to allocation among districts and | 5 |
| parts of
districts pursuant to the School Code, the trustees | 6 |
| shall withhold the
proportionate share of the liability for | 7 |
| municipality contributions imposed
upon such districts by this | 8 |
| Section, in respect to such township treasurers
and employees | 9 |
| and remit the same to the Board.
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| The municipality contribution rate for an educational | 11 |
| service center shall
initially be the same rate for each year | 12 |
| as the regional office of
education or school district
which | 13 |
| serves as its administrative agent. When actuarial data become
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| available, a separate rate shall be established as provided in | 15 |
| subparagraph
(i) of this Section.
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| The municipality contribution rate for a public agency, | 17 |
| other than a
vocational education cooperative, formed under the | 18 |
| Intergovernmental
Cooperation Act shall initially be the | 19 |
| average rate for the municipalities
which are parties to the | 20 |
| intergovernmental agreement. When actuarial data
become | 21 |
| available, a separate rate shall be established as provided in
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| subparagraph (i) of this Section.
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| (h) Each participating municipality and participating
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| instrumentality shall make the contributions in the amounts | 25 |
| provided in
this Section in the manner prescribed from time to | 26 |
| time by the Board and
all such contributions shall be | 27 |
| obligations of the respective
participating municipalities and | 28 |
| participating instrumentalities to this
fund. The failure to | 29 |
| deduct any employee contributions shall not
relieve the | 30 |
| participating municipality or participating instrumentality
of | 31 |
| its obligation to this fund. Delinquent payments of | 32 |
| contributions
due under this Section may, with interest, be | 33 |
| recovered by civil action
against the participating | 34 |
| municipalities or participating
instrumentalities. | 35 |
| Municipality contributions, other than the amount
necessary | 36 |
| for employee contributions and Social Security contributions, |
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LRB093 17755 LRD 43435 b |
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| for
periods of service by employees from whose earnings no | 2 |
| deductions were made
for employee contributions to the fund, | 3 |
| may be charged to the municipality
reserve for the municipality | 4 |
| or participating instrumentality.
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| (i) Contributions by participating instrumentalities shall | 6 |
| be
determined as provided herein except that the percentage | 7 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 8 |
| and the amount payable
under subparagraph 5 of paragraph (a) of | 9 |
| this Section, shall be based on
an amortization period of 10 | 10 |
| years.
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| (Source: P.A. 92-424, eff. 8-17-01.)
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