Full Text of HB0311 94th General Assembly
HB0311 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0311
Introduced 1/19/2005, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-114 |
from Ch. 108 1/2, par. 7-114 |
40 ILCS 5/7-118 |
from Ch. 108 1/2, par. 7-118 |
40 ILCS 5/7-139 |
from Ch. 108 1/2, par. 7-139 |
40 ILCS 5/7-153.1 new |
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40 ILCS 5/7-170 |
from Ch. 108 1/2, par. 7-170 |
40 ILCS 5/7-171 |
from Ch. 108 1/2, par. 7-171 |
40 ILCS 5/7-172 |
from Ch. 108 1/2, par. 7-172 |
40 ILCS 5/7-173 |
from Ch. 108 1/2, par. 7-173 |
40 ILCS 5/7-173.2 |
from Ch. 108 1/2, par. 7-173.2 |
40 ILCS 5/7-204 |
from Ch. 108 1/2, par. 7-204 |
40 ILCS 5/7-205 |
from Ch. 108 1/2, par. 7-205 |
40 ILCS 5/7-211 |
from Ch. 108 1/2, par. 7-211 |
30 ILCS 805/8.29 new |
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Amends the IMRF Article of the Illinois Pension
Code. Provides that any moneys received by an elected official from the State
of Illinois for service in that capacity shall be deemed earnings unless
specifically excluded. Changes the provisions defining and specifying the manner
of designating a beneficiary. With respect to persons establishing service credit for periods spent on a leave of absence, removes a provision requiring application within 2 years. Removes obsolete
language relating to the payment of federal social security contributions to
the Fund. Provides that an employee whose disability determination or medical examination results are at issue before the Board may request that the portion of the Board meeting or committee hearing concerning the disability determination or medical examination be closed to the public. Provides that if a retiring employee has accumulated nonconcurrent service with more than one participating municipality or participating instrumentality, aggregate municipality charges shall be prorated among all nonfinal employers based on service credit and projected earnings with those employers and, for the final employer, municipality charges shall be based on the remaining cost of the employee's pension. Makes a technical correction. Provides that each county with current or former elected county
officers participating in the alternative annuity program shall have a separate
employer contribution rate computed for those elected officers, and provides
that those officers shall be treated as a separate unit within the Fund.
In the provisions
relating to employer pick-up of employee contributions, requires pick-up of
employee contributions under the alternative program for elected county
officers. Amends the State Mandates Act to require implementation without
reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0311 |
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LRB094 04133 AMC 34154 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 |
| Sections 7-114, 7-118, 7-139, 7-170, 7-171, 7-172, 7-173, | 6 |
| 7-173.2, 7-204, 7-205, and 7-211 and by adding Section 7-153.1 | 7 |
| as follows:
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| (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
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| Sec. 7-114. Earnings. "Earnings":
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| (a) An amount to be determined by the board, equal to the | 11 |
| sum of:
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| 1. The total amount of money paid to an employee for | 13 |
| personal
services or official duties as an employee (except | 14 |
| those employed as
independent contractors) paid out of the | 15 |
| general fund, or out of any
special funds controlled by the | 16 |
| municipality, or by any instrumentality
thereof, or | 17 |
| participating instrumentality, including compensation, | 18 |
| fees,
allowances, or other emolument paid for official | 19 |
| duties (but not
including automobile maintenance, travel | 20 |
| expense, or reimbursements for
expenditures incurred in | 21 |
| the performance of duties) and, for fee
offices, the fees | 22 |
| or earnings of the offices to the extent such fees are
paid | 23 |
| out of funds controlled by the municipality, or | 24 |
| instrumentality or
participating instrumentality; and
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| 2. The money value, as determined by rules prescribed | 26 |
| by the
governing body of the municipality, or | 27 |
| instrumentality thereof, of any
board, lodging, fuel, | 28 |
| laundry, and other allowances provided an employee
in lieu | 29 |
| of money.
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| (b) For purposes of determining benefits payable under this | 31 |
| fund
payments to a person who is engaged in an independently | 32 |
| established
trade, occupation, profession or business and who |
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LRB094 04133 AMC 34154 b |
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| is paid for his
service on a basis other than a monthly or | 2 |
| other regular salary, are not
earnings.
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| (c) If a disabled participating employee is eligible to | 4 |
| receive Workers'
Compensation for an accidental injury and the | 5 |
| participating municipality or
instrumentality which employed | 6 |
| the participating employee when injured
continues to pay the | 7 |
| participating employee regular salary or other
compensation or | 8 |
| pays the employee an amount in excess of the Workers'
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| Compensation amount, then earnings shall be deemed to be the | 10 |
| total payments,
including an amount equal to the Workers' | 11 |
| Compensation payments. These
payments shall be subject to | 12 |
| employee contributions and allocated as if paid to
the | 13 |
| participating employee when the regular payroll amounts would | 14 |
| have been
paid if the participating employee had continued | 15 |
| working, and creditable
service shall be awarded for this | 16 |
| period.
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| (d) If an elected official who is a participating employee | 18 |
| becomes disabled
but does not resign and is not removed from | 19 |
| office, then earnings shall include
all salary payments made | 20 |
| for the remainder of that term of office and the
official shall | 21 |
| be awarded creditable service for the term of office.
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| (e) If a participating employee is paid pursuant to "An Act | 23 |
| to provide for
the continuation of compensation for law | 24 |
| enforcement officers, correctional
officers and firemen who | 25 |
| suffer disabling injury in the line of duty", approved
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| September 6, 1973, as amended, the payments shall be deemed | 27 |
| earnings, and the
participating employee shall be awarded | 28 |
| creditable service for this period.
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| (f) Additional compensation received by a person while | 30 |
| serving as a
supervisor of assessments, assessor, deputy | 31 |
| assessor or member of a board of
review from the State of | 32 |
| Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax | 33 |
| Code shall not be
earnings for purposes of this Article and | 34 |
| shall not be included in the
contribution formula or | 35 |
| calculation of benefits for such person pursuant to
this | 36 |
| Article.
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| (g) Any moneys received by an elected official from the | 2 |
| State of Illinois for service in that capacity shall be deemed | 3 |
| earnings unless specifically excluded in this Code.
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| (Source: P.A. 87-740; 88-670, eff. 12-2-94.)
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| (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
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| Sec. 7-118. "Beneficiary" . :
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| (a) "Beneficiary" means: | 8 |
| (1) Any person or persons, trust, or charity designated | 9 |
| as a beneficiary
by an employee, former employee who has | 10 |
| not yet received a retirement annuity
or separation | 11 |
| benefit, or employee annuitant. If no designation is on | 12 |
| file or
no beneficiary so designated survives, the estate | 13 |
| of the employee, former
employee who has not yet received a | 14 |
| retirement annuity or separation benefit,
or employee | 15 |
| annuitant. | 16 |
| (2) Any person or persons, trust, or charity designated | 17 |
| as a beneficiary
by a beneficiary annuitant or, if no | 18 |
| designation is on file or no beneficiary
so designated | 19 |
| survives, the estate of the beneficiary annuitant.
The | 20 |
| surviving spouse of an employee or of an employee
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| annuitant, or if no surviving spouse survives, the person | 22 |
| or persons
designated by a participating employee or | 23 |
| employee annuitant, or if no
person so designated survives, | 24 |
| or if no designation is on file, the
estate of the employee | 25 |
| or employee annuitant. The person or persons
designated by | 26 |
| a beneficiary annuitant, or if no person designated
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| survives, or if no designation is on file, the estate of | 28 |
| the beneficiary
annuitant. | 29 |
| (3) The estate of a surviving spouse annuitant where | 30 |
| the employee
or employee annuitant filed no designation, or | 31 |
| no person designated
survives at the death of a surviving | 32 |
| spouse annuitant. | 33 |
| (b) Designations of
beneficiaries shall be in writing on | 34 |
| forms prescribed by the board and
effective upon filing in the | 35 |
| fund offices. The designation forms shall
provide for |
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| contingent beneficiaries. Divorce, dissolution or annulment
of | 2 |
| marriage revokes the designation of an employee's former spouse | 3 |
| as a
beneficiary on a designation executed before entry of | 4 |
| judgment for divorce,
dissolution or annulment of marriage.
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| (b) Notwithstanding the foregoing, an employee, former | 6 |
| employee who has
not yet received a retirement annuity or | 7 |
| separation benefit, or employee
annuitant may elect to name any | 8 |
| person, trust or charity to be the
primary beneficiary of any | 9 |
| death benefit payable by reason of his death. Such
election | 10 |
| shall state specifically whether it is his intention to exclude | 11 |
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spouse, shall be in writing, and may be revoked at any | 12 |
| time. Such election or
revocation shall take effect upon being | 13 |
| filed in the fund offices.
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| (c) If a surviving spouse annuity is payable to a former | 15 |
| spouse upon
the death of an employee annuitant, the former | 16 |
| spouse, unless designated by
the employee annuitant after | 17 |
| dissolution of the marriage, shall not be the
beneficiary for | 18 |
| the purposes of the $3,000 death benefit
payable under | 19 |
| subparagraph 6 of Section 7-164. This benefit shall be paid
to | 20 |
| the designated beneficiary of the employee annuitant or, if | 21 |
| there is no
designation, then to the estate of the employee | 22 |
| annuitant.
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| (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
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| (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
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| Sec. 7-139. Credits and creditable service to employees.
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| (a) Each participating employee shall be granted credits | 27 |
| and creditable
service, for purposes of determining the amount | 28 |
| of any annuity or benefit
to which he or a beneficiary is | 29 |
| entitled, as follows:
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| 1. For prior service: Each participating employee who | 31 |
| is an employee
of a participating municipality or | 32 |
| participating instrumentality on the
effective date shall | 33 |
| be granted creditable service, but no credits under
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| paragraph 2 of this subsection (a), for periods of prior | 35 |
| service for which
credit has not been received under any |
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LRB094 04133 AMC 34154 b |
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| other pension fund or retirement system
established under | 2 |
| this Code, as follows:
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| If the effective date of participation for the | 4 |
| participating municipality
or participating | 5 |
| instrumentality is on or before January 1, 1998, creditable
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| service shall be granted for the entire period of prior | 7 |
| service with that
employer without any employee | 8 |
| contribution.
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| If the effective date of participation for the | 10 |
| participating municipality
or participating | 11 |
| instrumentality is after January 1, 1998, creditable
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| service shall be granted for the last 20% of the period of | 13 |
| prior service with
that employer, but no more than 5 years, | 14 |
| without any employee contribution. A
participating | 15 |
| employee may establish creditable service for the | 16 |
| remainder of
the period of prior service with that employer | 17 |
| by making an application in
writing, accompanied by payment | 18 |
| of an employee contribution in an
amount determined by the | 19 |
| Fund, based on the employee contribution rates in
effect at | 20 |
| the time of application for the creditable service and the | 21 |
| employee's
salary rate on the effective date of | 22 |
| participation for that employer, plus
interest at the | 23 |
| effective rate from the date of the prior service to the | 24 |
| date
of payment. Application for this creditable service | 25 |
| may be made at any time
while the employee is still in | 26 |
| service.
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| A municipality that (i) has at least 35 employees; (ii) | 28 |
| is located in a county with at least 2,000,000 inhabitants; | 29 |
| and (iii) maintains an independent defined benefit pension | 30 |
| plan for the benefit of its eligible employees may restrict | 31 |
| creditable service in whole or in part for periods of prior | 32 |
| service with the employer if the governing body of the | 33 |
| municipality adopts an irrevocable resolution to restrict | 34 |
| that creditable service and files the resolution with the | 35 |
| board before the municipality's effective date of | 36 |
| participation.
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| Any person who has withdrawn from the service of a | 2 |
| participating
municipality
or participating | 3 |
| instrumentality prior to the effective date, who reenters
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| the service of the same municipality or participating | 5 |
| instrumentality after
the effective date and becomes a | 6 |
| participating employee is entitled to
creditable service | 7 |
| for prior service as otherwise provided in this
subdivision | 8 |
| (a)(1) only if he or she renders 2 years of service as a
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| participating employee after the effective date. | 10 |
| Application
for such service must be made while in a | 11 |
| participating status.
The salary rate to be used in the | 12 |
| calculation of the required employee
contribution, if any, | 13 |
| shall be the employee's salary rate at the time of first
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| reentering service with the employer after the employer's | 15 |
| effective date of
participation.
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| 2. For current service, each participating employee | 17 |
| shall be
credited with:
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| a. Additional credits of amounts equal to each | 19 |
| payment of additional
contributions received from him | 20 |
| under Section 7-173, as of the
date the corresponding | 21 |
| payment of earnings is payable to him.
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| b. Normal credits of amounts equal to each payment | 23 |
| of normal
contributions received from him, as of the | 24 |
| date the corresponding payment of
earnings is payable | 25 |
| to him, and normal contributions made for the purpose | 26 |
| of
establishing out-of-state service credits as | 27 |
| permitted under the conditions set
forth in paragraph 6 | 28 |
| of this subsection (a).
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| c. Municipality credits in an amount equal to 1.4 | 30 |
| times the normal
credits, except those established by | 31 |
| out-of-state service credits, as of
the date of | 32 |
| computation of any benefit if these credits would | 33 |
| increase
the benefit.
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| d. Survivor credits equal to each payment of | 35 |
| survivor contributions
received from the participating | 36 |
| employee as of the date the
corresponding payment of |
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LRB094 04133 AMC 34154 b |
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| earnings is payable, and survivor contributions made
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| for the purpose of establishing out-of-state service | 3 |
| credits.
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| 3. For periods of temporary and total and permanent | 5 |
| disability
benefits, each employee receiving disability | 6 |
| benefits shall be granted
creditable service for the period | 7 |
| during which disability benefits are
payable. Normal and | 8 |
| survivor credits, based upon the rate of earnings
applied | 9 |
| for disability benefits, shall also be granted if such | 10 |
| credits
would result in a higher benefit to any such | 11 |
| employee or his
beneficiary.
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| 4. For authorized leave of absence without pay: A | 13 |
| participating
employee shall be granted credits and | 14 |
| creditable service for periods of
authorized leave of | 15 |
| absence without pay under the following
conditions:
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| a. An application for credits and creditable | 17 |
| service is submitted to the
board while the employee is | 18 |
| in a status of
active employment , and within 2 years | 19 |
| after termination of the
leave of absence period for | 20 |
| which credits and creditable service are
sought .
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| b. Not more than 12 complete months of creditable | 22 |
| service
for authorized leave of absence without pay | 23 |
| shall be counted for purposes of
determining any | 24 |
| benefits payable under this Article.
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| c. Credits and creditable service shall be granted | 26 |
| for leave of
absence only if such leave is approved by | 27 |
| the governing body of the
municipality, including | 28 |
| approval of the estimated cost thereof to the
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| municipality as determined by the fund, and employee | 30 |
| contributions, plus
interest at the effective rate | 31 |
| applicable for each year from the end of
the period of | 32 |
| leave to date of payment, have been paid to the fund in
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| accordance with Section 7-173. The contributions shall | 34 |
| be computed upon the
assumption earnings continued | 35 |
| during the period of leave at the rate in
effect when | 36 |
| the leave began.
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| d. Benefits under the provisions of Sections | 2 |
| 7-141, 7-146, 7-150
and 7-163 shall become payable to | 3 |
| employees on authorized leave of
absence, or their | 4 |
| designated beneficiary, only if such leave of absence
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| is creditable hereunder, and if the employee has at | 6 |
| least one year of
creditable service other than the | 7 |
| service granted for leave of absence.
Any employee | 8 |
| contributions due may be deducted from any benefits
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| payable.
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| e. No credits or creditable service shall be | 11 |
| allowed for leave of
absence without pay during any | 12 |
| period of prior service.
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| 5. For military service: The governing body of a | 14 |
| municipality or
participating instrumentality may elect to | 15 |
| allow creditable service to
participating employees who | 16 |
| leave their employment to serve in the armed
forces of the | 17 |
| United States for all periods of such service, provided
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| that the person returns to active employment within 90 days | 19 |
| after
completion
of full time active duty, but no | 20 |
| creditable service shall be allowed such
person for any | 21 |
| period that can be used in the computation of a pension
or | 22 |
| any other pay or benefit, other than pay for active duty, | 23 |
| for service
in any branch of the armed forces of the United | 24 |
| States. If necessary to
the computation of any benefit, the | 25 |
| board shall establish municipality
credits for | 26 |
| participating employees under this paragraph on the
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| assumption that the employee received earnings at the rate | 28 |
| received at
the time he left the employment to enter the | 29 |
| armed forces. A
participating employee in the armed forces | 30 |
| shall not be considered an
employee during such period of | 31 |
| service and no additional death and no
disability benefits | 32 |
| are payable for death or disability during such period.
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| Any participating employee who left his employment | 34 |
| with a
municipality or participating instrumentality to | 35 |
| serve in the armed
forces of the United States and who | 36 |
| again became a participating
employee within 90 days after |
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LRB094 04133 AMC 34154 b |
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| completion of full time active duty by
entering the service | 2 |
| of a different municipality or participating
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| instrumentality, which has elected to allow creditable | 4 |
| service for
periods of military service under the preceding | 5 |
| paragraph, shall also be
allowed creditable service for his | 6 |
| period of military service on the
same terms that would | 7 |
| apply if he had been employed, before entering
military | 8 |
| service, by the municipality or instrumentality which | 9 |
| employed
him after he left the military service and the | 10 |
| employer costs arising in
relation to such grant of | 11 |
| creditable service shall be charged to and
paid by that | 12 |
| municipality or instrumentality.
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| Notwithstanding the foregoing, any participating | 14 |
| employee
shall be entitled to creditable service as | 15 |
| required by any federal law
relating to re-employment | 16 |
| rights of persons who served in the United States
Armed | 17 |
| Services. Such creditable service shall be granted upon | 18 |
| payment by
the member of an amount equal to the employee | 19 |
| contributions which would
have been required had the | 20 |
| employee continued in service at the same
rate of earnings | 21 |
| during the military leave period, plus interest at
the | 22 |
| effective rate.
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| 5.1. In addition to any creditable service established | 24 |
| under
paragraph 5 of this subsection (a), creditable | 25 |
| service may be granted for
up to 24 months of service in | 26 |
| the armed forces of the United States.
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| In order to receive creditable service for military | 28 |
| service under this
paragraph 5.1, a participating employee | 29 |
| must (1) apply to the Fund
in writing and provide evidence | 30 |
| of the military service that is satisfactory
to the Board; | 31 |
| (2) obtain the written approval of the current employer; | 32 |
| and (3)
make contributions to the Fund equal to (i)
the | 33 |
| employee contributions that would have been required had | 34 |
| the service been
rendered as a member, plus (ii) an amount | 35 |
| determined by the board to be equal
to the employer's | 36 |
| normal cost of the benefits accrued for that military
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| service, plus (iii) interest on items (i) and (ii) from the | 2 |
| date of first
membership in the Fund to the date of | 3 |
| payment. If payment is made during
the 6-month period that | 4 |
| begins 3 months after the effective date of this
amendatory | 5 |
| Act of 1997, the required interest shall be at the rate of | 6 |
| 2.5%
per year, compounded annually; otherwise, the | 7 |
| required interest shall be
calculated at the regular | 8 |
| interest rate.
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| 6. For out-of-state service: Creditable service shall | 10 |
| be granted for
service rendered to an out-of-state local | 11 |
| governmental body under the
following conditions: The | 12 |
| employee had participated and has irrevocably
forfeited | 13 |
| all rights to benefits in the out-of-state public employees
| 14 |
| pension system; the governing body of his participating | 15 |
| municipality or
instrumentality authorizes the employee to | 16 |
| establish such service; the
employee has 2 years current | 17 |
| service with this municipality or
participating | 18 |
| instrumentality; the employee makes a payment of
| 19 |
| contributions, which shall be computed at 8% (normal) plus | 20 |
| 2% (survivor)
times length of service purchased times the | 21 |
| average rate of earnings for the
first 2
years of service | 22 |
| with the municipality or participating
instrumentality | 23 |
| whose governing body authorizes the service established
| 24 |
| plus interest at the effective rate on the date such | 25 |
| credits are
established, payable from the date the employee | 26 |
| completes the required 2
years of current service to date | 27 |
| of payment. In no case shall more than
120 months of | 28 |
| creditable service be granted under this provision.
| 29 |
| 7. For retroactive service: Any employee who could have | 30 |
| but did not
elect to become a participating employee, or | 31 |
| who should have been a
participant in the Municipal Public | 32 |
| Utilities Annuity and Benefit Fund
before that fund was | 33 |
| superseded, may receive creditable service for the
period | 34 |
| of service not to exceed 50 months; however, a current or | 35 |
| former
elected or appointed official of a participating | 36 |
| municipality may establish credit under this paragraph 7 |
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LRB094 04133 AMC 34154 b |
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| for more than 50
months of service as an official of that | 2 |
| municipality, if the excess over 50 months is approved by | 3 |
| resolution of the
governing body of the affected | 4 |
| municipality filed with
the Fund before January 1, 2002.
| 5 |
| Any employee who is a
participating employee on or | 6 |
| after September 24, 1981 and who was
excluded from | 7 |
| participation by the age restrictions removed by Public Act
| 8 |
| 82-596 may receive creditable service for the period, on or | 9 |
| after January
1, 1979, excluded by the age restriction and, | 10 |
| in addition, if the governing
body of the participating | 11 |
| municipality or participating instrumentality elects
to | 12 |
| allow creditable service for all employees excluded by the | 13 |
| age restriction
prior to January 1, 1979, for service | 14 |
| during the period prior to that date
excluded by the age | 15 |
| restriction. Any employee who was excluded from
| 16 |
| participation by the age restriction removed by Public Act | 17 |
| 82-596 and who is
not a participating employee on or after | 18 |
| September 24, 1981 may receive
creditable service for | 19 |
| service after January 1,
1979. Creditable service under | 20 |
| this paragraph
shall be granted upon payment of the | 21 |
| employee contributions
which would have been required had | 22 |
| he participated, with interest at the
effective rate for | 23 |
| each year from the end of the period of service
established | 24 |
| to date of payment.
| 25 |
| 8. For accumulated unused sick leave: A participating | 26 |
| employee who is
applying for a retirement annuity shall be | 27 |
| entitled to creditable service
for that portion of the | 28 |
| employee's accumulated unused sick leave
for which payment | 29 |
| is not received, as follows:
| 30 |
| a. Sick leave days shall be limited to those | 31 |
| accumulated under a sick
leave plan established by a | 32 |
| participating municipality or participating
| 33 |
| instrumentality which is available to all employees or | 34 |
| a class of employees.
| 35 |
| b. Only sick leave days accumulated with a | 36 |
| participating municipality or
participating |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| instrumentality with which the employee was in service | 2 |
| within
60 days of the effective date of his retirement | 3 |
| annuity shall be credited;
If the employee was in | 4 |
| service with more than one employer during this
period | 5 |
| only the sick leave days with the employer with which | 6 |
| the employee
has the greatest number of unpaid sick | 7 |
| leave days shall be considered.
| 8 |
| c. The creditable service granted shall be | 9 |
| considered solely for the
purpose of computing the | 10 |
| amount of the retirement annuity and shall not be
used | 11 |
| to establish any minimum service period required by any | 12 |
| provision of the
Illinois Pension Code, the effective | 13 |
| date of the retirement annuity, or the
final rate of | 14 |
| earnings.
| 15 |
| d. The creditable service shall be at the rate of | 16 |
| 1/20 of a month for
each full sick day, provided that | 17 |
| no more than 12 months may be credited
under this | 18 |
| subdivision 8.
| 19 |
| e. Employee contributions shall not be required | 20 |
| for creditable service
under this subdivision 8.
| 21 |
| f. Each participating municipality and | 22 |
| participating instrumentality
with which an employee | 23 |
| has service within 60 days of the effective date of
his | 24 |
| retirement annuity shall certify to the board the | 25 |
| number of accumulated
unpaid sick leave days credited | 26 |
| to the employee at the time of termination
of service.
| 27 |
| 9. For service transferred from another system: | 28 |
| Credits and
creditable service shall be granted for service | 29 |
| under Article 3, 4, 5, 14
or 16 of this Act, to any active | 30 |
| member of this Fund, and to any
inactive member who has | 31 |
| been a county sheriff, upon
transfer of such credits | 32 |
| pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | 33 |
| 16-131.4, and payment by the member of the amount by
which | 34 |
| (1) the employer and employee contributions that would have | 35 |
| been required
if he had participated in this Fund as a | 36 |
| sheriff's law enforcement employee
during the period for |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| which credit is
being transferred, plus interest thereon at | 2 |
| the effective rate for each
year, compounded annually, from | 3 |
| the date of termination of the service for
which credit is | 4 |
| being transferred to the date of payment, exceeds (2) the
| 5 |
| amount actually transferred to the Fund.
Such transferred | 6 |
| service shall be deemed to be service as a sheriff's law
| 7 |
| enforcement employee for the purposes of Section 7-142.1.
| 8 |
| (b) Creditable service - amount:
| 9 |
| 1. One month of creditable service
shall be allowed for | 10 |
| each month for which a participating employee made
| 11 |
| contributions as required under Section 7-173, or for which | 12 |
| creditable
service is otherwise granted hereunder. Not | 13 |
| more than 1 month of
service shall be credited and counted | 14 |
| for 1 calendar month, and not more
than 1 year of service | 15 |
| shall be credited and counted for any calendar
year. A | 16 |
| calendar month means a nominal month beginning on the first | 17 |
| day
thereof, and a calendar year means a year beginning | 18 |
| January 1 and ending
December 31.
| 19 |
| 2. A seasonal employee shall be given 12 months of | 20 |
| creditable
service if he renders the number of months of | 21 |
| service normally required
by the position in a 12-month | 22 |
| period and he remains in service for the
entire 12-month | 23 |
| period. Otherwise a fractional year of service in the
| 24 |
| number of months of service rendered shall be credited.
| 25 |
| 3. An intermittent employee shall be given creditable | 26 |
| service for
only those months in which a contribution is | 27 |
| made under Section 7-173.
| 28 |
| (c) No application for correction of credits or creditable | 29 |
| service shall
be considered unless the board receives an | 30 |
| application for correction while
(1) the applicant is a | 31 |
| participating employee and in active employment
with a | 32 |
| participating municipality or instrumentality, or (2) while | 33 |
| the
applicant is actively participating in a pension fund or | 34 |
| retirement
system which is a participating system under the | 35 |
| Retirement Systems
Reciprocal Act. A participating employee or | 36 |
| other applicant shall not be
entitled to credits or creditable |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| service unless the required employee
contributions are made in | 2 |
| a lump sum or in installments made in accordance
with board | 3 |
| rule.
| 4 |
| (d) Upon the granting of a retirement, surviving spouse or | 5 |
| child
annuity, a death benefit or a separation benefit, on | 6 |
| account of any
employee, all individual accumulated credits | 7 |
| shall thereupon terminate.
Upon the withdrawal of additional | 8 |
| contributions, the credits applicable
thereto shall thereupon | 9 |
| terminate. Terminated credits shall not be applied
to increase | 10 |
| the benefits any remaining employee would otherwise receive | 11 |
| under
this Article.
| 12 |
| (Source: P.A. 92-424, eff. 8-17-01; 93-933, eff. 8-13-04.)
| 13 |
| (40 ILCS 5/7-153.1 new) | 14 |
| Sec. 7-153.1. Disability hearings; request for closed | 15 |
| meeting. Those portions of meetings of the Board or of Board | 16 |
| committees in which matters relating to the determination of | 17 |
| disability or the results of medical examinations are to be | 18 |
| considered may be closed, but only if the request for a closed | 19 |
| meeting is initiated by the participating employee whose | 20 |
| disability determination or whose medical examination results | 21 |
| are at issue.
| 22 |
| (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| 23 |
| Sec. 7-170. Federal Social Security coverage. | 24 |
| (a) It is declared to be the policy and purpose of this | 25 |
| Section to extend to covered
employees as defined in Section | 26 |
| 7-138, the benefits of the Federal Old
Age and Survivors | 27 |
| Insurance System as authorized by the Federal Social
Security | 28 |
| Act and amendments thereto. To effect this, the board shall
| 29 |
| take such action as may be required by applicable State and | 30 |
| Federal laws
or regulations.
| 31 |
| (b) The board shall execute an agreement with the State | 32 |
| Agency to
secure coverage of covered employees as provided in | 33 |
| paragraph (a) of
this section.
| 34 |
| (c) Each participating municipality and each participating |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| instrumentality
shall remit payment of contributions for | 2 |
| Social Security purposes on behalf
of covered employees and | 3 |
| covered municipalities and participating
instrumentalities
in | 4 |
| the manner provided by law
as required by the board and the | 5 |
| State Agency established by the Social
Security Enabling Act .
| 6 |
| (d) (Blank).
Contributions of covered employees to this | 7 |
| fund for Federal
Social Security purposes shall be paid to the | 8 |
| State Agency in such
amounts and at such time as are designated | 9 |
| by State laws or regulations.
| 10 |
| (e) (Blank).
Contributions in behalf of covered | 11 |
| municipalities and
participating instrumentalities for Federal | 12 |
| Social Security purposes and
the required pro rata share of | 13 |
| administrative expenses shall be paid to
the State Agency from | 14 |
| this fund in accordance with applicable State laws
and | 15 |
| regulations.
| 16 |
| (f) The board shall maintain such records and submit such | 17 |
| reports as may
be required by applicable State and Federal laws | 18 |
| or regulations.
| 19 |
| (Source: P.A. 81-793.)
| 20 |
| (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| 21 |
| Sec. 7-171. Finance; taxes.
| 22 |
| (a) Each municipality other than a school district shall
| 23 |
| appropriate an amount sufficient to provide for the current
| 24 |
| municipality contributions required by Section 7-172 of
this | 25 |
| Article, for the fiscal year for which the appropriation is | 26 |
| made
and all amounts due for municipal contributions for | 27 |
| previous years.
Those municipalities which have been assessed | 28 |
| an annual amount to
amortize its unfunded obligation, as | 29 |
| provided in subparagraph 4
5 of
paragraph (a) of Section 7-172 | 30 |
| of this Article, shall include in the
appropriation an amount | 31 |
| sufficient to pay the amount assessed. The
appropriation shall | 32 |
| be based upon an estimate of assets available for
municipality | 33 |
| contributions and liabilities therefor for the fiscal year
for | 34 |
| which appropriations are to be made, including funds available | 35 |
| from
levies for this purpose in prior years.
|
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| (b) For the purpose of providing monies for municipality
| 2 |
| contributions, beginning for the year in which a municipality | 3 |
| is
included in this fund:
| 4 |
| (1) A municipality other than a school district may | 5 |
| levy a tax
which shall not exceed the amount appropriated | 6 |
| for municipality contributions.
| 7 |
| (2) A school district may levy a tax in an amount | 8 |
| reasonably calculated
at the time of the levy to provide | 9 |
| for the municipality contributions required
under Section | 10 |
| 7-172 of this Article for the fiscal years for which | 11 |
| revenues
from the levy will be received and all amounts due | 12 |
| for municipal contributions
for previous years. Any levy | 13 |
| adopted before the effective date of this
amendatory Act of | 14 |
| 1995 by a school district shall be considered valid and
| 15 |
| authorized to the extent that the amount was reasonably | 16 |
| calculated at the time
of the levy to provide for the | 17 |
| municipality contributions required under
Section 7-172 | 18 |
| for the fiscal years for which revenues from the levy will | 19 |
| be
received and all amounts due for municipal contributions | 20 |
| for previous years.
In no event shall a budget adopted by a | 21 |
| school district limit a levy of that
school district | 22 |
| adopted under this Section.
| 23 |
| (c) Any county which is served by a regional office of | 24 |
| education that
serves 2 or more
counties may include in its
| 25 |
| appropriation an amount sufficient to provide its | 26 |
| proportionate share of the
municipality contributions for that | 27 |
| regional office of education. The tax levy authorized by this | 28 |
| Section may include an amount
necessary to provide monies for | 29 |
| this contribution.
| 30 |
| (d) Any county that is a part of a multiple-county health | 31 |
| department
or consolidated health department which is formed | 32 |
| under "An Act in
relation to the establishment and maintenance | 33 |
| of county and
multiple-county public health departments", | 34 |
| approved July 9, 1943, as
amended, and which is a participating | 35 |
| instrumentality may include in the
county's appropriation an | 36 |
| amount sufficient to provide its proportionate
share of |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| municipality contributions of the department. The tax levy
| 2 |
| authorized by this Section may include the amount necessary to | 3 |
| provide
monies for this contribution.
| 4 |
| (d-5) A school district participating in a special | 5 |
| education joint
agreement created under Section 10-22.31 of the | 6 |
| School Code that is a
participating instrumentality may include | 7 |
| in the school district's
tax levy under this Section an amount | 8 |
| sufficient to provide its
proportionate share of the | 9 |
| municipality contributions for current and prior
service by | 10 |
| employees of the participating instrumentality created under | 11 |
| the
joint agreement.
| 12 |
| (e) Such tax shall be levied and collected in like manner, | 13 |
| with the
general taxes of the municipality and shall be in | 14 |
| addition to all other
taxes which the municipality is now or | 15 |
| may hereafter be authorized to
levy upon all taxable property | 16 |
| therein, and shall be exclusive of and in
addition to the | 17 |
| amount of tax levied for general purposes under Section
8-3-1 | 18 |
| of the "Illinois Municipal Code", approved May 29, 1961, as
| 19 |
| amended, or under any other law or laws which may limit the | 20 |
| amount of
tax which the municipality may levy for general | 21 |
| purposes. The tax may
be levied by the governing body of the | 22 |
| municipality without being
authorized as being additional to | 23 |
| all other taxes by a vote of the
people of the municipality.
| 24 |
| (f) The county clerk of the county in which any such | 25 |
| municipality is
located, in reducing tax levies shall not | 26 |
| consider any such tax as a
part of the general tax levy for | 27 |
| municipality purposes, and shall not
include the same in the | 28 |
| limitation of any other tax rate which may be
extended.
| 29 |
| (g) The amount of the tax to be levied in any year shall, | 30 |
| within the
limits herein prescribed, be determined by the | 31 |
| governing body of the
respective municipality.
| 32 |
| (h) The revenue derived from any such tax levy shall be | 33 |
| used only
for the purposes specified in this Article and, as | 34 |
| collected, shall be
paid to the treasurer of the municipality | 35 |
| levying the tax. Monies
received by a county treasurer for use | 36 |
| in making contributions to a regional
office of education for |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| its
municipality contributions shall be held by him for that | 2 |
| purpose and paid to
the regional office of education in the | 3 |
| same manner as other
monies appropriated for the expense of the | 4 |
| regional office.
| 5 |
| (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | 6 |
| 90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
| 7 |
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 8 |
| Sec. 7-172. Contributions by participating municipalities | 9 |
| and
participating instrumentalities.
| 10 |
| (a) Each participating municipality and each participating
| 11 |
| instrumentality shall make payment to the fund as follows:
| 12 |
| 1. municipality contributions in an amount determined | 13 |
| by applying
the municipality contribution rate to each | 14 |
| payment of earnings paid to
each of its participating | 15 |
| employees;
| 16 |
| 2. an amount equal to the employee contributions | 17 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 18 |
| whether or not the employee contributions are
withheld as | 19 |
| permitted by that Section;
| 20 |
| 3. all accounts receivable, together with interest | 21 |
| charged thereon,
as provided in Section 7-209;
| 22 |
| 4. if it has no participating employees with current | 23 |
| earnings, an
amount payable which, over a period of 20 | 24 |
| years beginning with the year
following an award of | 25 |
| benefit, will amortize, at the effective rate for
that | 26 |
| year, any negative balance in its municipality reserve | 27 |
| resulting
from the award. This amount when established will | 28 |
| be payable as a
separate contribution whether or not it | 29 |
| later has participating employees.
| 30 |
| (b) A separate municipality contribution rate shall be | 31 |
| determined
for each calendar year for all participating | 32 |
| municipalities together
with all instrumentalities thereof. | 33 |
| The municipality contribution rate
shall be determined for | 34 |
| participating instrumentalities as if they were
participating | 35 |
| municipalities. The municipality contribution rate shall
be |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| the sum of the following percentages:
| 2 |
| 1. The percentage of earnings of all the participating | 3 |
| employees of all
participating municipalities and | 4 |
| participating instrumentalities which, if paid
over the | 5 |
| entire period of their service, will be sufficient when | 6 |
| combined with
all employee contributions available for the | 7 |
| payment of benefits, to provide
all annuities for | 8 |
| participating employees, and the $3,000 death benefit
| 9 |
| payable under Sections 7-158 and 7-164, such percentage to | 10 |
| be known as the
normal cost rate.
| 11 |
| 2. The percentage of earnings of the participating | 12 |
| employees of each
participating municipality and | 13 |
| participating instrumentalities necessary
to adjust for | 14 |
| the difference between the present value of all benefits,
| 15 |
| excluding temporary and total and permanent disability and | 16 |
| death benefits, to
be provided for its participating | 17 |
| employees and the sum of its accumulated
municipality | 18 |
| contributions and the accumulated employee contributions | 19 |
| and the
present value of expected future employee and | 20 |
| municipality contributions
pursuant to subparagraph 1 of | 21 |
| this paragraph (b). This adjustment shall be
spread over | 22 |
| the remainder of the period that is allowable under | 23 |
| generally
accepted accounting principles.
| 24 |
| 3. The percentage of earnings of the participating | 25 |
| employees of all
municipalities and participating | 26 |
| instrumentalities necessary to provide
the present value | 27 |
| of all temporary and total and permanent disability
| 28 |
| benefits granted during the most recent year for which | 29 |
| information is
available.
| 30 |
| 4. The percentage of earnings of the participating | 31 |
| employees of all
participating municipalities and | 32 |
| participating instrumentalities
necessary to provide the | 33 |
| present value of the net single sum death
benefits expected | 34 |
| to become payable from the reserve established under
| 35 |
| Section 7-206 during the year for which this rate is fixed.
| 36 |
| 5. The percentage of earnings necessary to meet any |
|
|
|
HB0311 |
- 20 - |
LRB094 04133 AMC 34154 b |
|
| 1 |
| deficiency
arising in the Terminated Municipality Reserve.
| 2 |
| (c) A separate municipality contribution rate shall be | 3 |
| computed for
each participating municipality or participating | 4 |
| instrumentality
for its sheriff's law enforcement employees.
| 5 |
| A separate municipality contribution rate shall be | 6 |
| computed for the
sheriff's law enforcement employees of each | 7 |
| forest preserve district that
elects to have such employees. | 8 |
| For the period from January 1, 1986 to
December 31, 1986, such | 9 |
| rate shall be the forest preserve district's regular
rate plus | 10 |
| 2%.
| 11 |
| In the event that the Board determines that there is an | 12 |
| actuarial
deficiency in the account of any municipality with | 13 |
| respect to a person who
has elected to participate in the Fund | 14 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 15 |
| municipality's contribution rate so as to make up
that | 16 |
| deficiency over such reasonable period of time as the Board may | 17 |
| determine.
| 18 |
| (d) The Board may establish a separate municipality | 19 |
| contribution
rate for all employees who are program | 20 |
| participants employed under the
federal Comprehensive | 21 |
| Employment Training Act by all of the
participating | 22 |
| municipalities and instrumentalities. The Board may also
| 23 |
| provide that, in lieu of a separate municipality rate for these
| 24 |
| employees, a portion of the municipality contributions for such | 25 |
| program
participants shall be refunded or an extra charge | 26 |
| assessed so that the
amount of municipality contributions | 27 |
| retained or received by the fund
for all CETA program | 28 |
| participants shall be an amount equal to that which
would be | 29 |
| provided by the separate municipality contribution rate for all
| 30 |
| such program participants. Refunds shall be made to prime | 31 |
| sponsors of
programs upon submission of a claim therefor and | 32 |
| extra charges shall be
assessed to participating | 33 |
| municipalities and instrumentalities. In
establishing the | 34 |
| municipality contribution rate as provided in paragraph
(b) of | 35 |
| this Section, the use of a separate municipality contribution
| 36 |
| rate for program participants or the refund of a portion of the
|
|
|
|
HB0311 |
- 21 - |
LRB094 04133 AMC 34154 b |
|
| 1 |
| municipality contributions, as the case may be, may be | 2 |
| considered.
| 3 |
| (e) Computations of municipality contribution rates for | 4 |
| the
following calendar year shall be made prior to the | 5 |
| beginning of each
year, from the information available at the | 6 |
| time the computations are
made, and on the assumption that the | 7 |
| employees in each participating
municipality or participating | 8 |
| instrumentality at such time will continue
in service until the | 9 |
| end of such calendar year at their respective rates
of earnings | 10 |
| at such time.
| 11 |
| (f) Any municipality which is the recipient of State | 12 |
| allocations
representing that municipality's contributions for | 13 |
| retirement annuity
purposes on behalf of its employees as | 14 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 15 |
| shall pay the allocations so
received to the Board for such | 16 |
| purpose. Estimates of State allocations to
be received during | 17 |
| any taxable year shall be considered in the
determination of | 18 |
| the municipality's tax rate for that year under Section
7-171. | 19 |
| If a special tax is levied under Section 7-171, none of the
| 20 |
| proceeds may be used to reimburse the municipality for the | 21 |
| amount of State
allocations received and paid to the Board. Any | 22 |
| multiple-county or
consolidated health department which | 23 |
| receives contributions from a county
under Section 11.2 of "An | 24 |
| Act in relation to establishment and maintenance
of county and | 25 |
| multiple-county health departments", approved July 9, 1943,
as | 26 |
| amended, or distributions under Section 3 of the Department of | 27 |
| Public
Health Act, shall use these only for municipality | 28 |
| contributions by the
health department.
| 29 |
| (g) Municipality contributions for the several purposes | 30 |
| specified
shall, for township treasurers and employees in the | 31 |
| offices of the
township treasurers who meet the qualifying | 32 |
| conditions for coverage
hereunder, be allocated among the | 33 |
| several school districts and parts of
school districts serviced | 34 |
| by such treasurers and employees in the
proportion which the | 35 |
| amount of school funds of each district or part of
a district | 36 |
| handled by the treasurer bears to the total amount of all
|
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| school funds handled by the treasurer.
| 2 |
| From the funds subject to allocation among districts and | 3 |
| parts of
districts pursuant to the School Code, the trustees | 4 |
| shall withhold the
proportionate share of the liability for | 5 |
| municipality contributions imposed
upon such districts by this | 6 |
| Section, in respect to such township treasurers
and employees | 7 |
| and remit the same to the Board.
| 8 |
| The municipality contribution rate for an educational | 9 |
| service center shall
initially be the same rate for each year | 10 |
| as the regional office of
education or school district
which | 11 |
| serves as its administrative agent. When actuarial data become
| 12 |
| available, a separate rate shall be established as provided in | 13 |
| subparagraph
(i) of this Section.
| 14 |
| The municipality contribution rate for a public agency, | 15 |
| other than a
vocational education cooperative, formed under the | 16 |
| Intergovernmental
Cooperation Act shall initially be the | 17 |
| average rate for the municipalities
which are parties to the | 18 |
| intergovernmental agreement. When actuarial data
become | 19 |
| available, a separate rate shall be established as provided in
| 20 |
| subparagraph (i) of this Section.
| 21 |
| (h) Each participating municipality and participating
| 22 |
| instrumentality shall make the contributions in the amounts | 23 |
| provided in
this Section in the manner prescribed from time to | 24 |
| time by the Board and
all such contributions shall be | 25 |
| obligations of the respective
participating municipalities and | 26 |
| participating instrumentalities to this
fund. The failure to | 27 |
| deduct any employee contributions shall not
relieve the | 28 |
| participating municipality or participating instrumentality
of | 29 |
| its obligation to this fund. Delinquent payments of | 30 |
| contributions
due under this Section may, with interest, be | 31 |
| recovered by civil action
against the participating | 32 |
| municipalities or participating
instrumentalities. | 33 |
| Municipality contributions, other than the amount
necessary | 34 |
| for employee contributions and Social Security contributions, | 35 |
| for
periods of service by employees from whose earnings no | 36 |
| deductions were made
for employee contributions to the fund, |
|
|
|
HB0311 |
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LRB094 04133 AMC 34154 b |
|
| 1 |
| may be charged to the municipality
reserve for the municipality | 2 |
| or participating instrumentality.
| 3 |
| (i) Contributions by participating instrumentalities shall | 4 |
| be
determined as provided herein except that the percentage | 5 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 6 |
| and the amount payable
under subparagraph 5 of paragraph (a) of | 7 |
| this Section, shall be based on
an amortization period of 10 | 8 |
| years.
| 9 |
| (j) Each county with current or former elected county | 10 |
| officers, as defined in Section 7-145.1, participating in the | 11 |
| alternative annuity program established under that Section | 12 |
| shall have a separate municipality contribution rate computed | 13 |
| for those elected county officers.
| 14 |
| (Source: P.A. 92-424, eff. 8-17-01.)
| 15 |
| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 16 |
| Sec. 7-173. Contributions by employees.
| 17 |
| (a) Each participating employee shall make contributions | 18 |
| to the fund as
follows:
| 19 |
| 1. For retirement annuity purposes, normal | 20 |
| contributions of 3 3/4%
of earnings.
| 21 |
| 2. Additional contributions of such percentages of | 22 |
| each payment of
earnings, as shall be elected by the | 23 |
| employee for retirement annuity
purposes, but not in excess | 24 |
| of 10%. The selected rate shall be
applicable to all | 25 |
| earnings beginning on the first day of the second
month | 26 |
| following receipt by the Board of written notice of | 27 |
| election to
make such contributions. Additional | 28 |
| contributions at the selected rate
shall be made | 29 |
| concurrently with normal contributions.
| 30 |
| 3. Survivor contributions, by each participating | 31 |
| employee, of 3/4%
of each payment of earnings.
| 32 |
| (b) Each employee shall make contributions to the fund for | 33 |
| Federal
Social Security taxes, for periods during which he is a | 34 |
| covered
employee, as required by the Social Security Enabling | 35 |
| Act and federal law . For
participating employees, such |
|
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HB0311 |
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LRB094 04133 AMC 34154 b |
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| 1 |
| contributions shall be in addition to
those required under | 2 |
| paragraph (a) of this Section.
| 3 |
| (c) Contributions shall be deducted from each | 4 |
| corresponding payment
of earnings paid to each employee and | 5 |
| shall be remitted to the board by
the participating | 6 |
| municipality or participating instrumentality making
such | 7 |
| payment. The remittance, together with a report of the earnings
| 8 |
| and contributions shall be made as directed by the board. For | 9 |
| township
treasurers and employees of township treasurers | 10 |
| qualifying as employees
hereunder, the contributions herein | 11 |
| required as deductions from salary
shall be withheld by the | 12 |
| school township trustees from funds available
for the payment | 13 |
| of the compensation of such treasurers and employees as
| 14 |
| provided in the School Code and remitted to the board.
| 15 |
| (d) An employee who has made additional contributions under
| 16 |
| paragraph (a)2 of this Section may upon retirement or at any | 17 |
| time prior
thereto, elect to withdraw the total of such | 18 |
| additional contributions
including interest credited thereon | 19 |
| to the end of the preceding calendar
year.
| 20 |
| (e) Failure to make the deductions for employee | 21 |
| contributions
provided in paragraph (c) of this Section shall | 22 |
| not relieve the employee
from liability for such contributions. | 23 |
| The amount of such liability may
be deducted, with interest | 24 |
| charged under Section 7-209, from any
annuities or benefits | 25 |
| payable hereunder to the employee or any other
person receiving | 26 |
| an annuity or benefit by reason of such employee's
| 27 |
| participation.
| 28 |
| (f) A participating employee who has at least 40 years of | 29 |
| creditable
service in the Fund may elect to cease making the | 30 |
| contributions required
under this Section. The status of the | 31 |
| employee under this Article shall be
unaffected by this | 32 |
| election, except that the employee shall not receive any
| 33 |
| additional creditable service for the periods of employment | 34 |
| following the
election. An election under this subsection | 35 |
| relieves the employer from
making additional employer | 36 |
| contributions in relation to that employee.
|
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HB0311 |
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LRB094 04133 AMC 34154 b |
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| 1 |
| (Source: P.A. 87-1265.)
| 2 |
| (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
| 3 |
| Sec. 7-173.2. Pickup of employee contributions.
| 4 |
| (a) Until July 1, 1984, each participating municipality and | 5 |
| each
participating instrumentality may elect, for all of its | 6 |
| employees, to pick up
the employee contributions required by | 7 |
| subparagraphs 1 and 3 of subsection (a)
of Section 7-173 and, | 8 |
| in the case of sheriff's law enforcement employees,
required by | 9 |
| Section 7-173.1. The pick up may be for employee contributions | 10 |
| on
earnings received by employees after December 31, 1981 and | 11 |
| shall be applicable
to the contributions on total earnings paid | 12 |
| in any month. The decision to pick
up contributions shall be | 13 |
| made by the governing body.
| 14 |
| Beginning July 1, 1984, the pick up of employee | 15 |
| contributions shall cease to
be optional. Each participating | 16 |
| municipality and participating instrumentality
shall pick up | 17 |
| the employee contributions required by subparagraphs 1 and 3 of
| 18 |
| subsection (a) of Section 7-173 and, in the case of sheriff's | 19 |
| law enforcement
employees, contributions required by Section | 20 |
| 7-173.1, for all compensation
earned after such date. Each | 21 |
| participating municipality shall also pick up any employee | 22 |
| contributions made by its employees under the alternative | 23 |
| program for elected county officers under Section 7-145.1.
| 24 |
| (b) Contributions that are picked up shall be treated as | 25 |
| employer
contributions in determining tax treatment under the | 26 |
| United States Internal
Revenue Code. The employee contribution | 27 |
| shall be paid from the same source
of funds as is used in | 28 |
| payment of earnings to the employee and may not be
paid from | 29 |
| funds raised by the tax levy authorized by Section 7-171. The
| 30 |
| contributions shall be picked up by a reduction in earnings | 31 |
| payment to
employees. Employee contributions that are picked up | 32 |
| shall be considered as
earnings under Section 7-114. If a | 33 |
| participating municipality or
participating instrumentality | 34 |
| fails to report participating employee earnings
which should | 35 |
| have been reported to the fund and pays the employee the full
|
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HB0311 |
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LRB094 04133 AMC 34154 b |
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| 1 |
| amount of earnings including employee contributions which | 2 |
| should have been
picked up and forwarded to the fund, then the | 3 |
| employee shall make payment of
the employee contributions to | 4 |
| the fund on behalf of employer and such
contributions shall be | 5 |
| considered as picked up contributions
if paid in the year the | 6 |
| earnings were received, or by January 31st of the
following | 7 |
| year, and are reflected as picked up on reports to the Internal
| 8 |
| Revenue Service. If they cannot be so reflected, or if received | 9 |
| after that
date, they shall not be treated as picked up | 10 |
| contributions. Picked up employee
contributions shall be | 11 |
| considered as employee contributions in computing
benefits | 12 |
| paid under this Article 7.
| 13 |
| (c) Subject to the requirements of federal law, an employee | 14 |
| may elect to
have the employer pick up optional contributions | 15 |
| that the employee has elected
to pay to the Fund, and the | 16 |
| contributions so picked up shall be treated as
employer | 17 |
| contributions for the purposes of determining federal tax | 18 |
| treatment.
The employer shall pick up the contributions by a | 19 |
| reduction in the cash salary
of the employee and shall pay the | 20 |
| contributions from the same source of funds
that is used to pay | 21 |
| earnings to the employee. The employee's election to have
the | 22 |
| optional contributions picked up is irrevocable and the | 23 |
| optional
contributions may not thereafter be prepaid, by direct | 24 |
| payment or otherwise.
| 25 |
| (Source: P.A. 90-766, eff. 8-14-98.)
| 26 |
| (40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
| 27 |
| Sec. 7-204. Municipality reserves.
| 28 |
| (a) Except as provided in paragraph (b) of this Section, | 29 |
| each participating
municipality and its instrumentalities, and | 30 |
| each participating instrumentality,
shall be treated as an | 31 |
| independent unit within the fund, except that if it has
any | 32 |
| sheriff's law enforcement employees or any elected county | 33 |
| officers (as
defined in Section 7-154.1) participating in the | 34 |
| alternative annuity program ,
it shall be treated as multiple
2
| 35 |
| independent units, one for its
sheriff's law enforcement |
|
|
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LRB094 04133 AMC 34154 b |
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| 1 |
| employees , one for its elected county officers
participating in | 2 |
| the alternative retirement program, and one
the
second for its | 3 |
| other employees. Separate municipality reserves shall be
| 4 |
| maintained in such form and detail as is necessary to show the | 5 |
| net accumulated
balances of each municipality, created or | 6 |
| arising under this Article.
| 7 |
| (b) In the event of termination and dissolution of any | 8 |
| participating
municipality or participating instrumentality , | 9 |
| if
and its obligations
are not assumed or transferred by law to | 10 |
| another municipality, any net debit
or credit balance remaining | 11 |
| in the reserve account of such municipality, or
participating | 12 |
| instrumentality, shall be transferred to a Terminated
| 13 |
| Municipality Reserve Account which shall be used to fund any | 14 |
| future
benefits of its employees arising out of service with | 15 |
| the terminated
municipality or participating instrumentality.
| 16 |
| Any deficiency arising in the Terminated Municipality | 17 |
| Reserve Account
shall be eliminated by a contribution by all | 18 |
| remaining municipalities and
participating instrumentalities | 19 |
| at a uniform percent of payroll, to be
determined, collected | 20 |
| with other contributions required under Section 7-172.
| 21 |
| (c) The municipality reserve for each municipality or | 22 |
| participating
instrumentality that has any sheriff's law | 23 |
| enforcement employees shall be
divided into 2 reserves. A | 24 |
| reserve for the sheriff's law enforcement
employees shall be | 25 |
| allocated an amount in the same proportion to the total
amount | 26 |
| in reserve as the total number of sheriff's law enforcement | 27 |
| employees
is to the total participating employees of the | 28 |
| municipality or participating
instrumentality at that date. | 29 |
| The remainder shall be allocated to the reserve
for other | 30 |
| employees.
| 31 |
| (d) The Fund shall determine what amounts shall be | 32 |
| transferred or credited
to the reserve for elected county | 33 |
| officers participating in the alternative
retirement program.
| 34 |
| (Source: P.A. 87-740.)
| 35 |
| (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
|
|
|
|
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LRB094 04133 AMC 34154 b |
|
| 1 |
| Sec. 7-205. Reserves for annuities. Appropriate reserves | 2 |
| shall be created
for payment of all annuities
granted under | 3 |
| this Article at the time such annuities are granted and in
| 4 |
| amounts determined to be necessary under actuarial tables | 5 |
| adopted by the
Board upon recommendation of the actuary of the | 6 |
| fund. All annuities payable
shall be charged to the annuity | 7 |
| reserve.
| 8 |
| 1. Amounts credited to annuity reserves shall be derived by | 9 |
| transfer of
all the employee credits from the appropriate | 10 |
| employee reserves and by
charges to the municipality reserve of | 11 |
| those municipalities in which the
retiring employee has | 12 |
| accumulated service. If a retiring employee has
accumulated | 13 |
| service in more than one participating municipality or
| 14 |
| participating instrumentality, (i) in the case of concurrent | 15 |
| service, aggregate municipality charges shall be
prorated on a | 16 |
| basis of the employee's earnings in case of concurrent
service
| 17 |
| and (ii) in the case of nonconcurrent service, aggregate | 18 |
| municipality charges shall be prorated among all nonfinal | 19 |
| employers on a basis of service credit and projected earnings | 20 |
| with those employers and, for the final employer, municipality | 21 |
| charges shall be paid on a basis of the remaining cost of the | 22 |
| employee's pension, as determined by the Board.
creditable | 23 |
| service in other cases.
| 24 |
| 2. Supplemental annuities shall be handled as a separate | 25 |
| annuity and
amounts to be credited to the annuity reserve | 26 |
| therefor shall be derived in
the same manner as a regular | 27 |
| annuity.
| 28 |
| 3. When a retirement annuity is granted to an employee with | 29 |
| a spouse
eligible for a surviving spouse annuity, there shall | 30 |
| be credited to the
annuity reserve an amount to fund the cost | 31 |
| of both the retirement and
surviving spouse annuity as a joint | 32 |
| and survivors annuity.
| 33 |
| 4. Beginning January 1, 1989, when a retirement annuity is | 34 |
| awarded, an
amount equal to the present
value of the $3,000 | 35 |
| death benefit payable upon the death of the annuitant
shall be | 36 |
| transferred to the annuity reserve from the appropriate
|
|
|
|
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LRB094 04133 AMC 34154 b |
|
| 1 |
| municipality reserves in the same manner as the transfer for | 2 |
| annuities.
| 3 |
| 5. All annuity reserves shall be revalued annually as of | 4 |
| December 31.
Beginning as of December 31, 1973, adjustment | 5 |
| required therein by such
revaluation shall be charged or | 6 |
| credited to the earnings and experience
variation reserve.
| 7 |
| 6. There shall be credited to the annuity reserve all of | 8 |
| the
payments
made by annuitants under Section 7-144.2, plus an
| 9 |
| additional amount from the
earnings and experience variation | 10 |
| reserve to fund the cost of the
incremental annuities granted | 11 |
| to annuitants making these payments.
| 12 |
| 7. As of December 31, 1972, the excess in the annuity | 13 |
| reserve shall be
transferred to the municipality reserves. An | 14 |
| amount equal to the deficiency
in the reserve of participating | 15 |
| municipalities and participating
instrumentalities which have | 16 |
| no participating employees shall be allocated
to their | 17 |
| reserves. The remainder shall be allocated in amounts
| 18 |
| proportionate to the present value, as of January 1, 1972, of | 19 |
| annuities of
annuitants of the remaining participating | 20 |
| municipalities and participating
instrumentalities.
| 21 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 22 |
| (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
| 23 |
| Sec. 7-211. Authorizations.
| 24 |
| (a) Each participating municipality and instrumentality | 25 |
| thereof and
each participating instrumentality shall:
| 26 |
| 1. Deduct all normal and additional contributions and | 27 |
| contributions
for federal Social Security taxes as | 28 |
| required by the Social Security
Enabling Act from each | 29 |
| payment of earnings payable to each participating
employee | 30 |
| who is entitled to any earnings from such municipality or
| 31 |
| instrumentality thereof or participating instrumentality, | 32 |
| and remit
all such normal and additional contributions | 33 |
| immediately to the board and all such contributions for | 34 |
| federal Social Security taxes in the manner provided by | 35 |
| law ; and
|
|
|
|
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LRB094 04133 AMC 34154 b |
|
| 1 |
| 2. Pay to the board contributions required by this | 2 |
| Article.
| 3 |
| (b) Each participating employee shall, by virtue of the | 4 |
| payment of
contributions to this fund, receive a vested | 5 |
| interest in the annuities
and benefits provided in this Article | 6 |
| and in consideration of such vested
interest shall be deemed to | 7 |
| have agreed and authorized the deduction from
earnings of all | 8 |
| contributions payable to this fund in accordance with this
| 9 |
| Article.
| 10 |
| (c) Payment of earnings less the amounts of contributions | 11 |
| provided in
this Article and in the Social Security Enabling | 12 |
| Act shall be a full
and complete discharge of all claims for | 13 |
| payment for services rendered
by any employee during the period | 14 |
| covered by any such payment.
| 15 |
| (d) Any covered annuitant may authorize the withholding of | 16 |
| all or a portion
of his or her annuity, for the payment of | 17 |
| premiums on group accident and health
insurance provided | 18 |
| pursuant to Section 7-199.1. The annuitant may revoke
this | 19 |
| authorization at any time.
| 20 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 21 |
| Section 90. The State Mandates Act is amended by adding | 22 |
| Section 8.29 as
follows:
| 23 |
| (30 ILCS 805/8.29 new)
| 24 |
| Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | 25 |
| of this
Act, no reimbursement by the State is required for the | 26 |
| implementation of
any mandate created by this amendatory Act of | 27 |
| the 94th General Assembly.
| 28 |
| Section 99. Effective date. This Act takes effect upon | 29 |
| becoming law.
|
|