Full Text of HB0922 94th General Assembly
HB0922 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0922
Introduced 2/2/2005, by Rep. Michael K. Smith SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-118 |
from Ch. 108 1/2, par. 7-118 |
40 ILCS 5/7-158 |
from Ch. 108 1/2, par. 7-158 |
40 ILCS 5/7-164 |
from Ch. 108 1/2, par. 7-164 |
40 ILCS 5/7-172 |
from Ch. 108 1/2, par. 7-172 |
40 ILCS 5/7-205 |
from Ch. 108 1/2, par. 7-205 |
40 ILCS 5/7-206 |
from Ch. 108 1/2, par. 7-206 |
30 ILCS 805/8.29 new |
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Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois
Pension
Code. Increases the death benefit from $3,000 to $5,000. 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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HB0922 |
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LRB094 07664 AMC 37838 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 7-118,
7-158, 7-164, 7-172, 7-205, and 7-206 as | 6 |
| follows:
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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) The surviving spouse of an employee or of an employee
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| annuitant, or if no surviving spouse survives, the person or | 11 |
| persons
designated by a participating employee or employee | 12 |
| annuitant, or if no
person so designated survives, or if no | 13 |
| designation is on file, the
estate of the employee or employee | 14 |
| annuitant. The person or persons
designated by a beneficiary | 15 |
| annuitant, or if no person designated
survives, or if no | 16 |
| designation is on file, the estate of the beneficiary
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| annuitant. The estate of a surviving spouse annuitant where the | 18 |
| employee
or employee annuitant filed no designation, or no | 19 |
| person designated
survives at the death of a surviving spouse | 20 |
| annuitant. Designations of
beneficiaries shall be in writing on | 21 |
| forms prescribed by the board and
effective upon filing in the | 22 |
| fund offices. The designation forms shall
provide for | 23 |
| contingent beneficiaries. Divorce, dissolution or annulment
of | 24 |
| marriage revokes the designation of an employee's former spouse | 25 |
| as a
beneficiary on a designation executed before entry of | 26 |
| judgment for divorce,
dissolution or annulment of marriage.
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| (b) Notwithstanding the foregoing, an employee, former | 28 |
| employee who has
not yet received a retirement annuity or | 29 |
| separation benefit, or employee
annuitant may elect to name any | 30 |
| person, trust or charity to be the
primary beneficiary of any | 31 |
| death benefit payable by reason of his death. Such
election | 32 |
| shall state specifically whether it is his intention to exclude |
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LRB094 07664 AMC 37838 b |
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| the
spouse, shall be in writing, and may be revoked at any | 2 |
| time. Such election or
revocation shall take effect upon being | 3 |
| filed in the fund offices.
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| (c) If a surviving spouse annuity is payable to a former | 5 |
| spouse upon
the death of an employee annuitant, the former | 6 |
| spouse, unless designated by
the employee annuitant after | 7 |
| dissolution of the marriage, shall not be the
beneficiary for | 8 |
| the purposes of the $5,000
$3,000 death benefit
payable under | 9 |
| subparagraph 6 of Section 7-164. This benefit shall be paid
to | 10 |
| the designated beneficiary of the employee annuitant or, if | 11 |
| there is no
designation, then to the estate of the employee | 12 |
| 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 5/7-158) (from Ch. 108 1/2, par. 7-158)
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| Sec. 7-158. Surviving spouse annuities - Options. In lieu | 16 |
| of the surviving
spouse annuity an eligible surviving spouse | 17 |
| shall have the option of receiving
other benefits as follows:
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| 1. The surviving spouse of a participating employee may | 19 |
| elect to receive
either a single sum death benefit or a | 20 |
| surviving spouse annuity and the
$5,000
$3,000 death benefit | 21 |
| provided in Sections 7-163 and 7-164.
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| 2. The surviving spouse of an employee , who has separated | 23 |
| from service
and would have been entitled to a retirement | 24 |
| annuity on date of death , may
elect to receive either a single | 25 |
| sum death benefit or a surviving spouse
annuity and the $5,000
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| $3,000 death benefit provided in Sections 7-163
and 7-164.
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| 3. If any surviving spouse annuity is payable prior to the | 28 |
| earliest age at
which the recipient will become eligible for a | 29 |
| widows' or widowers' insurance
benefit under the Federal Social | 30 |
| Security Act, the recipient may elect
that the annuity payments | 31 |
| from this fund shall exceed those payable after
attaining such | 32 |
| age by an amount not in excess of the estimated Social
Security | 33 |
| Benefit, determined as of the effective date of the surviving
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| spouse annuity, provided that in no case shall the total | 35 |
| annuity
payments made by this fund exceed in actuarial value |
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LRB094 07664 AMC 37838 b |
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| the annuity which
would have been paid had no such election | 2 |
| been made.
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| 4. The surviving spouse of a participating employee, whose | 4 |
| annuity
was suspended upon return to employment and who had one | 5 |
| year or more of
service after his return, may apply the | 6 |
| additional service credits to a
supplemental surviving spouse | 7 |
| annuity and receive the $5,000
$3,000
death benefit or apply | 8 |
| the additional service credits to a single sum death
benefit | 9 |
| and forego the $5,000
$3,000 death benefit payable upon the
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| death of an annuitant.
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| 5. The surviving spouse of a participating employee, whose | 12 |
| annuity
was suspended upon return to employment and who had | 13 |
| less than one year
of service after his return, shall have the | 14 |
| additional service credits
applied towards a supplemental | 15 |
| surviving spouse annuity and shall receive
the $5,000
$3,000
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| death benefit.
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| (Source: P.A. 85-941.)
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| (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
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| Sec. 7-164. Death benefits - Amount. The amount of the | 20 |
| death benefit
shall be:
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| 1. Upon the death of an employee with at least one year of | 22 |
| service
occurring while in an employment relationship | 23 |
| (including employees
drawing disability benefits) with a | 24 |
| participating municipality or
participating instrumentality, | 25 |
| an amount equal to the sum of:
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| (a) The employee's normal, additional and survivor | 27 |
| credits,
including interest credited thereto through the | 28 |
| end of the preceding
calendar year, but excluding credits | 29 |
| and interest thereon allowed for
periods of disability.
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| (b) An amount equal to the employee's annual final rate | 31 |
| of earnings.
An employee who dies as a result of injuries | 32 |
| connected with his duties
shall be considered to have a | 33 |
| year of service for purposes of this
benefit.
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| 2. Upon the death of an employee with less than 1
one year | 35 |
| of
service
occurring while in the service of any participating |
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LRB094 07664 AMC 37838 b |
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| municipality or
instrumentality, an amount equal to the sum of | 2 |
| his accumulated normal,
additional and survivor credits on the | 3 |
| date of death, excluding those
credits and interest thereon | 4 |
| allowed during periods of disability.
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| 3. Upon the death of an employee who has separated from | 6 |
| service and
was not entitled to a retirement annuity on the | 7 |
| date of death, an amount
equal to the sum of his accumulated | 8 |
| normal, survivor and additional
credits on the date of death | 9 |
| excluding those credits and interest
thereon allowed during | 10 |
| periods of disability.
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| 4. Upon the death of an employee in an employment | 12 |
| relationship, or
an employee who has service and was entitled | 13 |
| to a retirement annuity on
the date of death, when a surviving | 14 |
| spouse or child annuity is awarded,
$5,000
$3,000 .
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| 5. Upon the death of an employee, who has separated from | 16 |
| service and
was entitled to a retirement annuity on the date of | 17 |
| death, and no
surviving spouse or child annuity is awarded, | 18 |
| $5,000
$3,000 plus an
amount
equal to his accumulated normal, | 19 |
| survivor and additional credits on the
date of death, excluding | 20 |
| those credits and interest earned thereon
allowed during | 21 |
| periods of disability.
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| 6. Upon the death of an employee annuitant, $5,000
$3,000
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| and,
unless a
surviving spouse, child or reversionary annuity | 24 |
| is payable, the sum of
(i) the excess of the normal and | 25 |
| survivor credits, excluding those
allowed during periods of | 26 |
| disability, which the annuitant had as of the
effective date of | 27 |
| his annuity over the total annuities paid pursuant to
paragraph | 28 |
| (a) 1 of Section 7-142 to the date of death, plus (ii) the
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| excess of the additional credits, excluding any such credits | 30 |
| used to
create a reversionary annuity, used to provide the | 31 |
| annuity granted
pursuant to paragraph (a) 2 of Section 7-142 | 32 |
| over the total annuity
payments made pursuant thereto to the | 33 |
| time of death.
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| 7. Upon the death of an annuitant receiving a reversionary | 35 |
| annuity
or of a person designated to receive a reversionary | 36 |
| annuity prior to the
receipt of such annuity the sum of the |
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HB0922 |
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LRB094 07664 AMC 37838 b |
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| additional credits of the person
creating the reversionary | 2 |
| annuity as of the effective date of his own
retirement annuity | 3 |
| over the reversionary annuity payments, if any, made
prior to | 4 |
| the date of death of such annuitant or person designated to
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| receive the reversionary annuity.
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| 8. Upon the death of an annuitant receiving a beneficiary | 7 |
| annuity
which was effective before January 1, 1986,
the excess | 8 |
| of the death benefit which was used to provide the annuity,
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| over the sum of all annuity payments made to the beneficiary.
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| Upon the death of an annuitant receiving a beneficiary annuity | 11 |
| effective
January 1, 1986 or thereafter, the sum of (i) the | 12 |
| excess of the normal and
survivor credits, excluding those | 13 |
| allowed during periods of disability,
which the annuitant had | 14 |
| as of the effective date of his annuity over the
total | 15 |
| annuities paid pursuant to paragraph (c) of Section 7-165, to | 16 |
| date of
death, plus (ii) the excess of the additional credits, | 17 |
| excluding any such
credits used to create a reversionary | 18 |
| annuity, used to provide the annuity
granted pursuant to | 19 |
| paragraph (d) of Section 7-165 over the total annuity
payments | 20 |
| made pursuant thereto to the time of death.
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| 9. Upon the marriage prior to reaching age 55 (except for a | 22 |
| surviving
spouse who remarries after December 31, 2000) or | 23 |
| death of a person receiving
a surviving spouse annuity, unless | 24 |
| a child annuity is payable, the sum of (i)
the excess of the | 25 |
| normal and survivor credits, excluding those credits and
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| interest thereon allowed during periods of disability, | 27 |
| attributable to
the employee at the effective date of the | 28 |
| annuity or date of death,
whichever first occurred, over the | 29 |
| total of all annuity payments
attributable to paragraph (a) 1 | 30 |
| of Section 7-142 made to the employee or
surviving spouse plus | 31 |
| (ii) the excess of the additional credits,
excluding any such | 32 |
| credits used to create a reversionary annuity or used
to | 33 |
| provide the annuity attributable to paragraph (a) 2 of Section | 34 |
| 7-142
over the total of such payments.
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| 10. Upon the marriage, death or attainment of age 18 of a | 36 |
| child
receiving a child annuity, if no other child annuities |
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LRB094 07664 AMC 37838 b |
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| are payable, the
sum of (i) the excess of the normal and | 2 |
| survivor credits excluding those
credits and interest thereon | 3 |
| allowed during periods of disability, of
the employee at the | 4 |
| effective date of the annuity or date of death,
whichever first | 5 |
| occurred, over the total annuity payments attributable
to | 6 |
| paragraph (a) 1 of Section 7-142 made to the employee, | 7 |
| surviving
spouse and children plus (ii) the excess of the | 8 |
| additional credits,
excluding any such credits used to create a | 9 |
| reversionary annuity, used
to provide the annuity attributable | 10 |
| to paragraph (a) 2 of Section 7-142
over the total annuity | 11 |
| payments made to the employee, surviving spouse
and children, | 12 |
| pursuant thereto.
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| 11. Upon the death of the participating employee whose | 14 |
| annuity was
suspended upon his return to employment:
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| a. If a surviving spouse or child annuity is awarded, | 16 |
| $5,000
$3,000 ;
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| b. If no surviving spouse or child annuity is awarded | 18 |
| and he had
less than one year's service upon return, $5,000
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| $3,000 plus the excess
of the
normal, survivor and | 20 |
| additional credits, including interest thereon, but
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| excluding those allowed during a period of disability, at | 22 |
| the effective
date of the suspended annuity, plus those | 23 |
| allowed after his return, over
all annuity payments made to | 24 |
| the employee;
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| c. If no surviving spouse or child annuity is awarded | 26 |
| and he has one
year or more of service upon return, the | 27 |
| higher of (a) the payment under
subparagraph b of this | 28 |
| paragraph or (b) the payment under paragraph 1 of
this | 29 |
| Section, taking into consideration only the service and | 30 |
| credits
allowed after his return, plus the excess of the | 31 |
| normal, survivor and
additional credits, including | 32 |
| interest thereon, excluding those allowed
during periods | 33 |
| of disability, at the effective date of his suspended
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| annuity over all annuity payments made to the employee.
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| 12. The $3,000 or $5,000 death benefit provided in | 36 |
| paragraphs 4 and 6
shall
not be payable to beneficiaries of |
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| persons who terminated service prior
to September 8, 1971, | 2 |
| unless the payment or agreement for payment
provided by Section | 3 |
| 7-144.2 of this Article is made prior to the date of
death.
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| 13. The increase in certain death benefits from $1,000 to | 5 |
| $3,000
provided by this amendatory Act of 1987 shall apply only | 6 |
| to deaths
occurring on or after January 1, 1988.
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| The increase in certain death benefits from $3,000 to | 8 |
| $5,000 provided by
this amendatory Act of the 94th General | 9 |
| Assembly applies to deaths that occur
on or after the effective | 10 |
| date of this amendatory Act, without regard to
whether the | 11 |
| deceased person was in service on or after that date.
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| (Source: P.A. 91-887, eff. 7-6-00.)
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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 | 15 |
| 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 | 19 |
| by applying
the municipality contribution rate to each | 20 |
| payment of earnings paid to
each of its participating | 21 |
| employees;
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| 2. an amount equal to the employee contributions | 23 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 24 |
| whether or not the employee contributions are
withheld as | 25 |
| permitted by that Section;
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| 3. all accounts receivable, together with interest | 27 |
| charged thereon,
as provided in Section 7-209;
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| 4. if it has no participating employees with current | 29 |
| earnings, an
amount payable which, over a period of 20 | 30 |
| years beginning with the year
following an award of | 31 |
| benefit, will amortize, at the effective rate for
that | 32 |
| year, any negative balance in its municipality reserve | 33 |
| resulting
from the award. This amount when established will | 34 |
| be payable as a
separate contribution whether or not it | 35 |
| later has participating employees.
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| (b) A separate municipality contribution rate shall be | 2 |
| determined
for each calendar year for all participating | 3 |
| municipalities together
with all instrumentalities thereof. | 4 |
| The municipality contribution rate
shall be determined for | 5 |
| participating instrumentalities as if they were
participating | 6 |
| municipalities. The municipality contribution rate shall
be | 7 |
| the sum of the following percentages:
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| 1. The percentage of earnings of all the participating | 9 |
| employees of all
participating municipalities and | 10 |
| participating instrumentalities which, if paid
over the | 11 |
| entire period of their service, will be sufficient when | 12 |
| combined with
all employee contributions available for the | 13 |
| payment of benefits, to provide
all annuities for | 14 |
| participating employees, and the $5,000
$3,000 death
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| benefit
payable under Sections 7-158 and 7-164, such | 16 |
| percentage to be known as the
normal cost rate.
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| 2. The percentage of earnings of the participating | 18 |
| employees of each
participating municipality and | 19 |
| participating instrumentalities necessary
to adjust for | 20 |
| the difference between the present value of all benefits,
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| excluding temporary and total and permanent disability and | 22 |
| death benefits, to
be provided for its participating | 23 |
| employees and the sum of its accumulated
municipality | 24 |
| contributions and the accumulated employee contributions | 25 |
| and the
present value of expected future employee and | 26 |
| municipality contributions
pursuant to subparagraph 1 of | 27 |
| this paragraph (b). This adjustment shall be
spread over | 28 |
| the remainder of the period that is allowable under | 29 |
| generally
accepted accounting principles.
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| 3. The percentage of earnings of the participating | 31 |
| employees of all
municipalities and participating | 32 |
| instrumentalities necessary to provide
the present value | 33 |
| of all temporary and total and permanent disability
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| benefits granted during the most recent year for which | 35 |
| information is
available.
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| 4. The percentage of earnings of the participating |
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LRB094 07664 AMC 37838 b |
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| employees of all
participating municipalities and | 2 |
| participating instrumentalities
necessary to provide the | 3 |
| present value of the net single sum death
benefits expected | 4 |
| to become payable from the reserve established under
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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 | 7 |
| deficiency
arising in the Terminated Municipality Reserve.
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| (c) A separate municipality contribution rate shall be | 9 |
| computed for
each participating municipality or participating | 10 |
| instrumentality
for its sheriff's law enforcement employees.
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| A separate municipality contribution rate shall be | 12 |
| computed for the
sheriff's law enforcement employees of each | 13 |
| forest preserve district that
elects to have such employees. | 14 |
| For the period from January 1, 1986 to
December 31, 1986, such | 15 |
| rate shall be the forest preserve district's regular
rate plus | 16 |
| 2%.
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| In the event that the Board determines that there is an | 18 |
| actuarial
deficiency in the account of any municipality with | 19 |
| respect to a person who
has elected to participate in the Fund | 20 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 21 |
| municipality's contribution rate so as to make up
that | 22 |
| deficiency over such reasonable period of time as the Board may | 23 |
| determine.
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| (d) The Board may establish a separate municipality | 25 |
| contribution
rate for all employees who are program | 26 |
| participants employed under the
federal Comprehensive | 27 |
| Employment Training Act by all of the
participating | 28 |
| municipalities and instrumentalities. The Board may also
| 29 |
| provide that, in lieu of a separate municipality rate for these
| 30 |
| employees, a portion of the municipality contributions for such | 31 |
| program
participants shall be refunded or an extra charge | 32 |
| assessed so that the
amount of municipality contributions | 33 |
| retained or received by the fund
for all CETA program | 34 |
| participants shall be an amount equal to that which
would be | 35 |
| provided by the separate municipality contribution rate for all
| 36 |
| such program participants. Refunds shall be made to prime |
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| sponsors of
programs upon submission of a claim therefor and | 2 |
| extra charges shall be
assessed to participating | 3 |
| municipalities and instrumentalities. In
establishing the | 4 |
| municipality contribution rate as provided in paragraph
(b) of | 5 |
| this Section, the use of a separate municipality contribution
| 6 |
| rate for program participants or the refund of a portion of the
| 7 |
| municipality contributions, as the case may be, may be | 8 |
| considered.
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| (e) Computations of municipality contribution rates for | 10 |
| the
following calendar year shall be made prior to the | 11 |
| beginning of each
year, from the information available at the | 12 |
| time the computations are
made, and on the assumption that the | 13 |
| employees in each participating
municipality or participating | 14 |
| instrumentality at such time will continue
in service until the | 15 |
| end of such calendar year at their respective rates
of earnings | 16 |
| at such time.
| 17 |
| (f) Any municipality which is the recipient of State | 18 |
| allocations
representing that municipality's contributions for | 19 |
| retirement annuity
purposes on behalf of its employees as | 20 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 21 |
| shall pay the allocations so
received to the Board for such | 22 |
| purpose. Estimates of State allocations to
be received during | 23 |
| any taxable year shall be considered in the
determination of | 24 |
| the municipality's tax rate for that year under Section
7-171. | 25 |
| If a special tax is levied under Section 7-171, none of the
| 26 |
| proceeds may be used to reimburse the municipality for the | 27 |
| amount of State
allocations received and paid to the Board. Any | 28 |
| multiple-county or
consolidated health department which | 29 |
| receives contributions from a county
under Section 11.2 of "An | 30 |
| Act in relation to establishment and maintenance
of county and | 31 |
| multiple-county health departments", approved July 9, 1943,
as | 32 |
| amended, or distributions under Section 3 of the Department of | 33 |
| Public
Health Act, shall use these only for municipality | 34 |
| contributions by the
health department.
| 35 |
| (g) Municipality contributions for the several purposes | 36 |
| specified
shall, for township treasurers and employees in the |
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| offices of the
township treasurers who meet the qualifying | 2 |
| conditions for coverage
hereunder, be allocated among the | 3 |
| several school districts and parts of
school districts serviced | 4 |
| by such treasurers and employees in the
proportion which the | 5 |
| amount of school funds of each district or part of
a district | 6 |
| handled by the treasurer bears to the total amount of all
| 7 |
| school funds handled by the treasurer.
| 8 |
| From the funds subject to allocation among districts and | 9 |
| parts of
districts pursuant to the School Code, the trustees | 10 |
| shall withhold the
proportionate share of the liability for | 11 |
| municipality contributions imposed
upon such districts by this | 12 |
| Section, in respect to such township treasurers
and employees | 13 |
| and remit the same to the Board.
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| The municipality contribution rate for an educational | 15 |
| service center shall
initially be the same rate for each year | 16 |
| as the regional office of
education or school district
which | 17 |
| serves as its administrative agent. When actuarial data become
| 18 |
| available, a separate rate shall be established as provided in | 19 |
| subparagraph
(i) of this Section.
| 20 |
| The municipality contribution rate for a public agency, | 21 |
| other than a
vocational education cooperative, formed under the | 22 |
| Intergovernmental
Cooperation Act shall initially be the | 23 |
| average rate for the municipalities
which are parties to the | 24 |
| intergovernmental agreement. When actuarial data
become | 25 |
| available, a separate rate shall be established as provided in
| 26 |
| subparagraph (i) of this Section.
| 27 |
| (h) Each participating municipality and participating
| 28 |
| instrumentality shall make the contributions in the amounts | 29 |
| provided in
this Section in the manner prescribed from time to | 30 |
| time by the Board and
all such contributions shall be | 31 |
| obligations of the respective
participating municipalities and | 32 |
| participating instrumentalities to this
fund. The failure to | 33 |
| deduct any employee contributions shall not
relieve the | 34 |
| participating municipality or participating instrumentality
of | 35 |
| its obligation to this fund. Delinquent payments of | 36 |
| contributions
due under this Section may, with interest, be |
|
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| recovered by civil action
against the participating | 2 |
| municipalities or participating
instrumentalities. | 3 |
| Municipality contributions, other than the amount
necessary | 4 |
| for employee contributions and Social Security contributions, | 5 |
| for
periods of service by employees from whose earnings no | 6 |
| deductions were made
for employee contributions to the fund, | 7 |
| may be charged to the municipality
reserve for the municipality | 8 |
| or participating instrumentality.
| 9 |
| (i) Contributions by participating instrumentalities shall | 10 |
| be
determined as provided herein except that the percentage | 11 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 12 |
| and the amount payable
under subparagraph 5 of paragraph (a) of | 13 |
| this Section, shall be based on
an amortization period of 10 | 14 |
| years.
| 15 |
| (Source: P.A. 92-424, eff. 8-17-01.)
| 16 |
| (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
| 17 |
| Sec. 7-205. Reserves for annuities. Appropriate reserves | 18 |
| shall be created
for payment of all annuities granted under | 19 |
| this Article at the time such
annuities are granted and in | 20 |
| amounts determined to be necessary under actuarial
tables | 21 |
| adopted by the Board upon recommendation of the actuary of the | 22 |
| fund.
All annuities payable shall be charged to the annuity | 23 |
| reserve.
| 24 |
| 1. Amounts credited to annuity reserves shall be derived by | 25 |
| transfer of
all the employee credits from the appropriate | 26 |
| employee reserves and by
charges to the municipality reserve of | 27 |
| those municipalities in which the
retiring employee has | 28 |
| accumulated service. If a retiring employee has
accumulated | 29 |
| service in more than one participating municipality or
| 30 |
| participating instrumentality, aggregate municipality charges | 31 |
| shall be
prorated on a basis of the employee's earnings in case | 32 |
| of concurrent
service and creditable service in other cases.
| 33 |
| 2. Supplemental annuities shall be handled as a separate | 34 |
| annuity and
amounts to be credited to the annuity reserve | 35 |
| therefor shall be derived in
the same manner as a regular |
|
|
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LRB094 07664 AMC 37838 b |
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| 1 |
| annuity.
| 2 |
| 3. When a retirement annuity is granted to an employee with | 3 |
| a spouse
eligible for a surviving spouse annuity, there shall | 4 |
| be credited to the
annuity reserve an amount to fund the cost | 5 |
| of both the retirement and
surviving spouse annuity as a joint | 6 |
| and survivors annuity.
| 7 |
| 4. Beginning January 1, 1989, when a retirement annuity is | 8 |
| awarded, an
amount equal to the present value of the $3,000 or | 9 |
| $5,000 death benefit
payable upon the death of the annuitant | 10 |
| shall be transferred to the annuity
reserve from the | 11 |
| appropriate municipality reserves in the same manner as the
| 12 |
| transfer for annuities.
| 13 |
| 5. All annuity reserves shall be revalued annually as of | 14 |
| December 31.
Beginning as of December 31, 1973, adjustment | 15 |
| required therein by such
revaluation shall be charged or | 16 |
| credited to the earnings and experience
variation reserve.
| 17 |
| 6. There shall be credited to the annuity reserve all of | 18 |
| the
payments made by annuitants under Section 7-144.2, plus an | 19 |
| additional amount
from the earnings and experience variation | 20 |
| reserve to fund the cost of the
incremental annuities granted | 21 |
| to annuitants making these payments.
| 22 |
| 7. As of December 31, 1972, the excess in the annuity | 23 |
| reserve shall be
transferred to the municipality reserves. An | 24 |
| amount equal to the deficiency
in the reserve of participating | 25 |
| municipalities and participating
instrumentalities which have | 26 |
| no participating employees shall be allocated
to their | 27 |
| reserves. The remainder shall be allocated in amounts
| 28 |
| proportionate to the present value, as of January 1, 1972, of | 29 |
| annuities of
annuitants of the remaining participating | 30 |
| municipalities and participating
instrumentalities.
| 31 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 32 |
| (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
| 33 |
| Sec. 7-206. Death Reserve. All death benefit payments | 34 |
| shall be charged
to the Death Reserve, other than the $3,000 or | 35 |
| $5,000 death benefits
paid after December 31, 1988 upon the |
|
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| death of an annuitant. All
contributions for death purposes | 2 |
| under Section 7-172(b)4 shall be
credited to the same reserve. | 3 |
| Whenever the balance in such reserve at the
close of a year | 4 |
| exceeds 100% of the average annual charges to this account
| 5 |
| during the 3 preceding calendar years, the basic actuarial | 6 |
| assumptions upon
which municipality contribution rates for | 7 |
| these purposes are based, shall
be reviewed and revised in such | 8 |
| manner as is deemed necessary to reduce
such balance.
| 9 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 10 |
| Section 90. The State Mandates Act is amended by adding | 11 |
| Section 8.29 as
follows:
| 12 |
| (30 ILCS 805/8.29 new)
| 13 |
| Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | 14 |
| of this
Act, no reimbursement by the State is required for the | 15 |
| implementation of
any mandate created by this amendatory Act of | 16 |
| the 94th General Assembly.
| 17 |
| Section 99. Effective date. This Act takes effect upon | 18 |
| becoming law. |
|