Full Text of HB1185 94th General Assembly
HB1185 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB1185
Introduced 2/8/2005, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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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 5/7-141 |
from Ch. 108 1/2, par. 7-141 |
40 ILCS 5/7-142 |
from Ch. 108 1/2, par. 7-142 |
40 ILCS 5/7-152 |
from Ch. 108 1/2, par. 7-152 |
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 5/7-168 |
from Ch. 108 1/2, par. 7-168 |
40 ILCS 5/7-172 |
from Ch. 108 1/2, par. 7-172 |
40 ILCS 5/7-174 |
from Ch. 108 1/2, par. 7-174 |
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. Authorizes the Fund to pay
interest on separation benefits. Changes the vesting
requirement for a retirement annuity from 8 years to 5. Makes a corresponding
change in one part of the retirement formula. Changes the service requirement
for being a member of the Board of Trustees, from 8 years to 5. Authorizes
employers to increase disability benefits from 50% to 60% of earnings, with the
the resulting costs to be paid by the employer and employees. Deletes
provisions limiting the retroactive payment of retirement benefits.
Removes a provision limiting unused sick leave credit to
credit from an employer with which the employee is in service within the 60 days
before retirement. Allows an employee to receive a full pension after 30 years of service (rather than 35 years of service). Provides that no more than 24 months (rather than 12 months) of creditable service may be credited for unused sick leave. 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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HB1185 |
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LRB094 04142 AMC 34163 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,
7-139, 7-141, 7-142, 7-152, 7-158, 7-164, | 6 |
| 7-168, 7-172, 7-174, 7-205, and 7-206 as 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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| 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 5/7-139) (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 | 17 |
| and creditable
service, for purposes of determining the amount | 18 |
| of any annuity or benefit
to which he or a beneficiary is | 19 |
| entitled, as follows:
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| 1. For prior service: Each participating employee who | 21 |
| is an employee
of a participating municipality or | 22 |
| participating instrumentality on the
effective date shall | 23 |
| be granted creditable service, but no credits under
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| paragraph 2 of this subsection (a), for periods of prior | 25 |
| service for which
credit has not been received under any | 26 |
| other pension fund or retirement system
established under | 27 |
| this Code, as follows:
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| If the effective date of participation for the | 29 |
| participating municipality
or participating | 30 |
| instrumentality is on or before January 1, 1998, creditable
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| service shall be granted for the entire period of prior | 32 |
| service with that
employer without any employee | 33 |
| contribution.
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| If the effective date of participation for the | 35 |
| participating municipality
or participating |
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LRB094 04142 AMC 34163 b |
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| instrumentality is after January 1, 1998, creditable
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| service shall be granted for the last 20% of the period of | 3 |
| prior service with
that employer, but no more than 5 years, | 4 |
| without any employee contribution. A
participating | 5 |
| employee may establish creditable service for the | 6 |
| remainder of
the period of prior service with that employer | 7 |
| by making an application in
writing, accompanied by payment | 8 |
| of an employee contribution in an
amount determined by the | 9 |
| Fund, based on the employee contribution rates in
effect at | 10 |
| the time of application for the creditable service and the | 11 |
| employee's
salary rate on the effective date of | 12 |
| participation for that employer, plus
interest at the | 13 |
| effective rate from the date of the prior service to the | 14 |
| date
of payment. Application for this creditable service | 15 |
| may be made at any time
while the employee is still in | 16 |
| service.
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| A municipality that (i) has at least 35 employees; (ii) | 18 |
| is located in a county with at least 2,000,000 inhabitants; | 19 |
| and (iii) maintains an independent defined benefit pension | 20 |
| plan for the benefit of its eligible employees may restrict | 21 |
| creditable service in whole or in part for periods of prior | 22 |
| service with the employer if the governing body of the | 23 |
| municipality adopts an irrevocable resolution to restrict | 24 |
| that creditable service and files the resolution with the | 25 |
| board before the municipality's effective date of | 26 |
| participation.
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| Any person who has withdrawn from the service of a | 28 |
| participating
municipality
or participating | 29 |
| instrumentality prior to the effective date, who reenters
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| the service of the same municipality or participating | 31 |
| instrumentality after
the effective date and becomes a | 32 |
| participating employee is entitled to
creditable service | 33 |
| for prior service as otherwise provided in this
subdivision | 34 |
| (a)(1) only if he or she renders 2 years of service as a
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| participating employee after the effective date. | 36 |
| Application
for such service must be made while in a |
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| participating status.
The salary rate to be used in the | 2 |
| calculation of the required employee
contribution, if any, | 3 |
| 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 | 5 |
| effective date of
participation.
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| 2. For current service, each participating employee | 7 |
| shall be
credited with:
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| a. Additional credits of amounts equal to each | 9 |
| payment of additional
contributions received from him | 10 |
| under Section 7-173, as of the
date the corresponding | 11 |
| payment of earnings is payable to him.
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| b. Normal credits of amounts equal to each payment | 13 |
| of normal
contributions received from him, as of the | 14 |
| date the corresponding payment of
earnings is payable | 15 |
| to him, and normal contributions made for the purpose | 16 |
| of
establishing out-of-state service credits as | 17 |
| permitted under the conditions set
forth in paragraph 6 | 18 |
| of this subsection (a).
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| c. Municipality credits in an amount equal to 1.4 | 20 |
| times the normal
credits, except those established by | 21 |
| out-of-state service credits, as of
the date of | 22 |
| computation of any benefit if these credits would | 23 |
| increase
the benefit.
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| d. Survivor credits equal to each payment of | 25 |
| survivor contributions
received from the participating | 26 |
| employee as of the date the
corresponding payment of | 27 |
| earnings is payable, and survivor contributions made
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| for the purpose of establishing out-of-state service | 29 |
| credits.
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| 3. For periods of temporary and total and permanent | 31 |
| disability
benefits, each employee receiving disability | 32 |
| benefits shall be granted
creditable service for the period | 33 |
| during which disability benefits are
payable. Normal and | 34 |
| survivor credits, based upon the rate of earnings
applied | 35 |
| for disability benefits, shall also be granted if such | 36 |
| credits
would result in a higher benefit to any such |
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LRB094 04142 AMC 34163 b |
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| employee or his
beneficiary.
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| 4. For authorized leave of absence without pay: A | 3 |
| participating
employee shall be granted credits and | 4 |
| creditable service for periods of
authorized leave of | 5 |
| absence without pay under the following
conditions:
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| a. An application for credits and creditable | 7 |
| service is submitted to the
board while the employee is | 8 |
| in a status of
active employment, and within 2 years | 9 |
| after termination of the
leave of absence period for | 10 |
| which credits and creditable service are
sought.
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| b. Not more than 12 complete months of creditable | 12 |
| service
for authorized leave of absence without pay | 13 |
| shall be counted for purposes of
determining any | 14 |
| benefits payable under this Article.
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| c. Credits and creditable service shall be granted | 16 |
| for leave of
absence only if such leave is approved by | 17 |
| the governing body of the
municipality, including | 18 |
| approval of the estimated cost thereof to the
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| municipality as determined by the fund, and employee | 20 |
| contributions, plus
interest at the effective rate | 21 |
| applicable for each year from the end of
the period of | 22 |
| leave to date of payment, have been paid to the fund in
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| accordance with Section 7-173. The contributions shall | 24 |
| be computed upon the
assumption earnings continued | 25 |
| during the period of leave at the rate in
effect when | 26 |
| the leave began.
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| d. Benefits under the provisions of Sections | 28 |
| 7-141, 7-146, 7-150
and 7-163 shall become payable to | 29 |
| employees on authorized leave of
absence, or their | 30 |
| designated beneficiary, only if such leave of absence
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| is creditable hereunder, and if the employee has at | 32 |
| least one year of
creditable service other than the | 33 |
| service granted for leave of absence.
Any employee | 34 |
| 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 |
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LRB094 04142 AMC 34163 b |
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| allowed for leave of
absence without pay during any | 2 |
| period of prior service.
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| 5. For military service: The governing body of a | 4 |
| municipality or
participating instrumentality may elect to | 5 |
| allow creditable service to
participating employees who | 6 |
| leave their employment to serve in the armed
forces of the | 7 |
| United States for all periods of such service, provided
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| that the person returns to active employment within 90 days | 9 |
| after
completion
of full time active duty, but no | 10 |
| creditable service shall be allowed such
person for any | 11 |
| period that can be used in the computation of a pension
or | 12 |
| any other pay or benefit, other than pay for active duty, | 13 |
| for service
in any branch of the armed forces of the United | 14 |
| States. If necessary to
the computation of any benefit, the | 15 |
| board shall establish municipality
credits for | 16 |
| participating employees under this paragraph on the
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| assumption that the employee received earnings at the rate | 18 |
| received at
the time he left the employment to enter the | 19 |
| armed forces. A
participating employee in the armed forces | 20 |
| shall not be considered an
employee during such period of | 21 |
| service and no additional death and no
disability benefits | 22 |
| are payable for death or disability during such period.
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| Any participating employee who left his employment | 24 |
| with a
municipality or participating instrumentality to | 25 |
| serve in the armed
forces of the United States and who | 26 |
| again became a participating
employee within 90 days after | 27 |
| completion of full time active duty by
entering the service | 28 |
| of a different municipality or participating
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| instrumentality, which has elected to allow creditable | 30 |
| service for
periods of military service under the preceding | 31 |
| paragraph, shall also be
allowed creditable service for his | 32 |
| period of military service on the
same terms that would | 33 |
| apply if he had been employed, before entering
military | 34 |
| service, by the municipality or instrumentality which | 35 |
| employed
him after he left the military service and the | 36 |
| employer costs arising in
relation to such grant of |
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| creditable service shall be charged to and
paid by that | 2 |
| municipality or instrumentality.
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| Notwithstanding the foregoing, any participating | 4 |
| employee
shall be entitled to creditable service as | 5 |
| required by any federal law
relating to re-employment | 6 |
| rights of persons who served in the United States
Armed | 7 |
| Services. Such creditable service shall be granted upon | 8 |
| payment by
the member of an amount equal to the employee | 9 |
| contributions which would
have been required had the | 10 |
| employee continued in service at the same
rate of earnings | 11 |
| during the military leave period, plus interest at
the | 12 |
| effective rate.
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| 5.1. In addition to any creditable service established | 14 |
| under
paragraph 5 of this subsection (a), creditable | 15 |
| service may be granted for
up to 24 months of service in | 16 |
| the armed forces of the United States.
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| In order to receive creditable service for military | 18 |
| service under this
paragraph 5.1, a participating employee | 19 |
| must (1) apply to the Fund
in writing and provide evidence | 20 |
| of the military service that is satisfactory
to the Board; | 21 |
| (2) obtain the written approval of the current employer; | 22 |
| and (3)
make contributions to the Fund equal to (i)
the | 23 |
| employee contributions that would have been required had | 24 |
| the service been
rendered as a member, plus (ii) an amount | 25 |
| determined by the board to be equal
to the employer's | 26 |
| normal cost of the benefits accrued for that military
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| service, plus (iii) interest on items (i) and (ii) from the | 28 |
| date of first
membership in the Fund to the date of | 29 |
| payment. If payment is made during
the 6-month period that | 30 |
| begins 3 months after the effective date of this
amendatory | 31 |
| Act of 1997, the required interest shall be at the rate of | 32 |
| 2.5%
per year, compounded annually; otherwise, the | 33 |
| required interest shall be
calculated at the regular | 34 |
| interest rate.
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| 6. For out-of-state service: Creditable service shall | 36 |
| be granted for
service rendered to an out-of-state local |
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| governmental body under the
following conditions: The | 2 |
| employee had participated and has irrevocably
forfeited | 3 |
| all rights to benefits in the out-of-state public employees
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| pension system; the governing body of his participating | 5 |
| municipality or
instrumentality authorizes the employee to | 6 |
| establish such service; the
employee has 2 years current | 7 |
| service with this municipality or
participating | 8 |
| instrumentality; the employee makes a payment of
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| contributions, which shall be computed at 8% (normal) plus | 10 |
| 2% (survivor)
times length of service purchased times the | 11 |
| average rate of earnings for the
first 2
years of service | 12 |
| with the municipality or participating
instrumentality | 13 |
| whose governing body authorizes the service established
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| plus interest at the effective rate on the date such | 15 |
| credits are
established, payable from the date the employee | 16 |
| completes the required 2
years of current service to date | 17 |
| of payment. In no case shall more than
120 months of | 18 |
| creditable service be granted under this provision.
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| 7. For retroactive service: Any employee who could have | 20 |
| but did not
elect to become a participating employee, or | 21 |
| who should have been a
participant in the Municipal Public | 22 |
| Utilities Annuity and Benefit Fund
before that fund was | 23 |
| superseded, may receive creditable service for the
period | 24 |
| of service not to exceed 50 months; however, a current or | 25 |
| former
elected or appointed official of a participating | 26 |
| municipality may establish credit under this paragraph 7 | 27 |
| for more than 50
months of service as an official of that | 28 |
| municipality, if the excess over 50 months is approved by | 29 |
| resolution of the
governing body of the affected | 30 |
| municipality filed with
the Fund before January 1, 2002.
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| Any employee who is a
participating employee on or | 32 |
| after September 24, 1981 and who was
excluded from | 33 |
| participation by the age restrictions removed by Public Act
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| 82-596 may receive creditable service for the period, on or | 35 |
| after January
1, 1979, excluded by the age restriction and, | 36 |
| in addition, if the governing
body of the participating |
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LRB094 04142 AMC 34163 b |
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| municipality or participating instrumentality elects
to | 2 |
| allow creditable service for all employees excluded by the | 3 |
| age restriction
prior to January 1, 1979, for service | 4 |
| during the period prior to that date
excluded by the age | 5 |
| restriction. Any employee who was excluded from
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| participation by the age restriction removed by Public Act | 7 |
| 82-596 and who is
not a participating employee on or after | 8 |
| September 24, 1981 may receive
creditable service for | 9 |
| service after January 1,
1979. Creditable service under | 10 |
| this paragraph
shall be granted upon payment of the | 11 |
| employee contributions
which would have been required had | 12 |
| he participated, with interest at the
effective rate for | 13 |
| each year from the end of the period of service
established | 14 |
| to date of payment.
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| 8. For accumulated unused sick leave: A participating | 16 |
| employee who is
applying for a retirement annuity shall be | 17 |
| entitled to creditable service
for that portion of the | 18 |
| employee's accumulated unused sick leave
for which payment | 19 |
| is not received, as follows:
| 20 |
| a. Sick leave days shall be limited to those | 21 |
| accumulated under a sick
leave plan established by a | 22 |
| participating municipality or participating
| 23 |
| instrumentality which is available to all employees or | 24 |
| a class of employees.
| 25 |
| b. Only sick leave days accumulated with a | 26 |
| participating municipality or
participating | 27 |
| instrumentality with which the employee was in service | 28 |
| within
60 days of the effective date of his retirement | 29 |
| annuity shall be credited;
If the employee was in | 30 |
| service with more than one employer ,
during this
period
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| only the sick leave days with the employer with which | 32 |
| the employee
has the greatest number of unpaid sick | 33 |
| leave days shall be considered.
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| c. The creditable service granted shall be | 35 |
| considered solely for the
purpose of computing the | 36 |
| amount of the retirement annuity and shall not be
used |
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HB1185 |
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LRB094 04142 AMC 34163 b |
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| to establish any minimum service period required by any | 2 |
| provision of the
Illinois Pension Code, the effective | 3 |
| date of the retirement annuity, or the
final rate of | 4 |
| earnings.
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| d. The creditable service shall be at the rate of | 6 |
| 1/20 of a month for
each full sick day, provided that | 7 |
| no more than 24
12 months may be credited
under this | 8 |
| subdivision 8.
| 9 |
| e. Employee contributions shall not be required | 10 |
| for creditable service
under this subdivision 8.
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| f. Each participating municipality and | 12 |
| participating instrumentality
with which an employee | 13 |
| has service within 60 days of the effective date of
his | 14 |
| retirement annuity shall certify to the board the | 15 |
| number of accumulated
unpaid sick leave days credited | 16 |
| to the employee at the time of termination
of service.
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| 9. For service transferred from another system: | 18 |
| Credits and
creditable service shall be granted for service | 19 |
| under Article 3, 4, 5, 14
or 16 of this Act, to any active | 20 |
| member of this Fund, and to any
inactive member who has | 21 |
| been a county sheriff, upon
transfer of such credits | 22 |
| pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | 23 |
| 16-131.4, and payment by the member of the amount by
which | 24 |
| (1) the employer and employee contributions that would have | 25 |
| been required
if he had participated in this Fund as a | 26 |
| sheriff's law enforcement employee
during the period for | 27 |
| which credit is
being transferred, plus interest thereon at | 28 |
| the effective rate for each
year, compounded annually, from | 29 |
| the date of termination of the service for
which credit is | 30 |
| being transferred to the date of payment, exceeds (2) the
| 31 |
| amount actually transferred to the Fund.
Such transferred | 32 |
| service shall be deemed to be service as a sheriff's law
| 33 |
| enforcement employee for the purposes of Section 7-142.1.
| 34 |
| (b) Creditable service - amount:
| 35 |
| 1. One month of creditable service
shall be allowed for | 36 |
| each month for which a participating employee made
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LRB094 04142 AMC 34163 b |
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| contributions as required under Section 7-173, or for which | 2 |
| creditable
service is otherwise granted hereunder. Not | 3 |
| more than 1 month of
service shall be credited and counted | 4 |
| for 1 calendar month, and not more
than 1 year of service | 5 |
| shall be credited and counted for any calendar
year. A | 6 |
| calendar month means a nominal month beginning on the first | 7 |
| day
thereof, and a calendar year means a year beginning | 8 |
| January 1 and ending
December 31.
| 9 |
| 2. A seasonal employee shall be given 12 months of | 10 |
| creditable
service if he renders the number of months of | 11 |
| service normally required
by the position in a 12-month | 12 |
| period and he remains in service for the
entire 12-month | 13 |
| period. Otherwise a fractional year of service in the
| 14 |
| number of months of service rendered shall be credited.
| 15 |
| 3. An intermittent employee shall be given creditable | 16 |
| service for
only those months in which a contribution is | 17 |
| made under Section 7-173.
| 18 |
| (c) No application for correction of credits or creditable | 19 |
| service shall
be considered unless the board receives an | 20 |
| application for correction while
(1) the applicant is a | 21 |
| participating employee and in active employment
with a | 22 |
| participating municipality or instrumentality, or (2) while | 23 |
| the
applicant is actively participating in a pension fund or | 24 |
| retirement
system which is a participating system under the | 25 |
| Retirement Systems
Reciprocal Act. A participating employee or | 26 |
| other applicant shall not be
entitled to credits or creditable | 27 |
| service unless the required employee
contributions are made in | 28 |
| a lump sum or in installments made in accordance
with board | 29 |
| rule.
| 30 |
| (d) Upon the granting of a retirement, surviving spouse or | 31 |
| child
annuity, a death benefit or a separation benefit, on | 32 |
| account of any
employee, all individual accumulated credits | 33 |
| shall thereupon terminate.
Upon the withdrawal of additional | 34 |
| contributions, the credits applicable
thereto shall thereupon | 35 |
| terminate. Terminated credits shall not be applied
to increase | 36 |
| the benefits any remaining employee would otherwise receive |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| under
this Article.
| 2 |
| (Source: P.A. 92-424, eff. 8-17-01; 93-933, eff. 8-13-04.)
| 3 |
| (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 4 |
| Sec. 7-141. Retirement annuities - Conditions.
Retirement | 5 |
| annuities shall be payable as hereinafter set forth:
| 6 |
| (a) A participating employee who, regardless of cause, is | 7 |
| separated
from the service of all participating municipalities | 8 |
| and
instrumentalities thereof and participating | 9 |
| instrumentalities shall be
entitled to a retirement annuity | 10 |
| provided:
| 11 |
| 1. He is at least age 55, or in the case of a person who | 12 |
| is eligible
to have his annuity calculated under Section | 13 |
| 7-142.1, he is at least age 50 . ;
| 14 |
| 2. He is (i) an employee who was employed by any | 15 |
| participating
municipality
or participating | 16 |
| instrumentality which had not elected to exclude persons
| 17 |
| employed in positions normally requiring performance of | 18 |
| duty for less than 1000
hours per year or was employed in a | 19 |
| position normally requiring performance of
duty for 600 | 20 |
| hours or more per year prior to such election by any
| 21 |
| participating municipality or participating | 22 |
| instrumentality included in
and subject to this Article on | 23 |
| or before the effective date of this
amendatory Act of 1981 | 24 |
| which made such election and is not entitled to
receive | 25 |
| earnings for employment in a position normally requiring
| 26 |
| performance of duty for 600 hours or more per year for any | 27 |
| participating
municipality and instrumentalities thereof | 28 |
| and participating instrumentality;
or (ii) an employee who | 29 |
| was employed only by a participating municipality
or | 30 |
| participating instrumentality, or participating | 31 |
| municipalities or
participating instrumentalities, which | 32 |
| have elected to exclude persons in
positions normally | 33 |
| requiring performance of duty for less than 1000 hours
per | 34 |
| year after the effective date of such exclusion or which | 35 |
| are included
under and subject to the Article after the |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| effective date of this
amendatory Act of 1981 and elects to | 2 |
| exclude persons in such positions, and
is not entitled to | 3 |
| receive earnings for employment in a position normally
| 4 |
| requiring performance of duty for 1000 hours or more per | 5 |
| year by such a
participating municipality or participating | 6 |
| instrumentality . ;
| 7 |
| 3. The amount of his annuity, before the application of | 8 |
| paragraph (b) of
Section 7-142 , is at least $10 per month . ;
| 9 |
| 4. If he first became a participating employee after | 10 |
| December 31, 1961,
he has at least 5 years
8 years of | 11 |
| service. This service requirement
shall not apply to any | 12 |
| participating employee, regardless of participation
date, | 13 |
| if the General Assembly terminates the Fund.
| 14 |
| (b) Retirement annuities shall be payable:
| 15 |
| 1. As provided in Section 7-119 . ;
| 16 |
| 2. Except as provided in item 3, upon receipt by the | 17 |
| fund of a written
application. The effective date may be no | 18 |
| earlier than the
first day of the first full calendar month | 19 |
| after termination of participating
employment.
not more | 20 |
| than one year prior to the
date of the receipt by the fund | 21 |
| of the application;
| 22 |
| 3. Upon attainment of age 70 1/2 if the member (i) is | 23 |
| no longer in
service, and (ii) is otherwise entitled to an | 24 |
| annuity under this Article . ;
| 25 |
| 4. To the beneficiary of the deceased annuitant for the | 26 |
| unpaid amount
accrued to date of death, if any.
| 27 |
| (c) The amendment to subdivision (b)(2) of this Section | 28 |
| made by this
amendatory Act of the 94th General Assembly, | 29 |
| removing the one year limitation
on retroactive annuity, | 30 |
| applies to every person who has not yet begun receiving
a | 31 |
| retirement annuity, without regard to whether the person | 32 |
| terminated
employment prior to the effective date of this | 33 |
| amendatory Act.
| 34 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 35 |
| (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
|
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| Sec. 7-142. Retirement annuities - Amount.
| 2 |
| (a) The amount of a retirement annuity shall be the sum of | 3 |
| the
following, determined in accordance with the actuarial | 4 |
| tables in effect at
the time of the grant of the annuity:
| 5 |
| 1. For employees with 5 or
8 or more years of service, | 6 |
| an
annuity computed pursuant to subparagraphs a or b of | 7 |
| this subparagraph 1,
whichever is the higher, and for | 8 |
| employees with less than 5 years
8 years of service , the | 9 |
| annuity computed pursuant to subparagraph a:
| 10 |
| a. The monthly annuity which can be provided from | 11 |
| the total
accumulated normal, municipality and prior | 12 |
| service credits, as of the
attained age of the employee | 13 |
| on the date the annuity begins provided
that such | 14 |
| annuity shall not exceed 75% of the final rate of | 15 |
| earnings of
the employee.
| 16 |
| b. (i) The monthly annuity amount determined as | 17 |
| follows by
multiplying (a) 1 2/3% for annuitants with | 18 |
| not more than 15 years or (b)
1 2/3% for the first 15 | 19 |
| years and 2% for each year in excess of 15 years
for | 20 |
| annuitants with more than 15 years by the number of | 21 |
| years plus
fractional years, prorated on a basis of | 22 |
| months, of creditable service
and multiply the product | 23 |
| thereof by the employee's final rate of earnings.
| 24 |
| (ii) For the sole purpose of computing the formula | 25 |
| (and not for the
purposes of the limitations | 26 |
| hereinafter stated) $125 shall be considered
the final | 27 |
| rate of earnings in all cases where the final rate of | 28 |
| earnings
is less than such amount.
| 29 |
| (iii) The monthly annuity computed in accordance | 30 |
| with this
subparagraph b, shall not exceed an amount | 31 |
| equal to 75% of the final
rate of earnings.
| 32 |
| (iv) For employees who have less than 30
35 years | 33 |
| of service, the
annuity computed in accordance with | 34 |
| this subparagraph b (as reduced by
application of | 35 |
| subparagraph (iii)
above) shall be reduced by 0.25% | 36 |
| thereof (0.5% if service was terminated
before January |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| 1, 1988) for each month or fraction thereof (1) that | 2 |
| the
employee's age is less than 60 years, or (2) if the | 3 |
| employee has at least
25
30 years of service credit, | 4 |
| that the employee's service credit is less than
30
35
| 5 |
| years, whichever is less, on the date the annuity | 6 |
| begins.
| 7 |
| 2. The annuity which can be provided from the total | 8 |
| accumulated
additional credits as of the attained age of | 9 |
| the employee on the date
the annuity begins.
| 10 |
| (b) If payment of an annuity begins prior to the earliest | 11 |
| age at
which the employee will become eligible for an old age | 12 |
| insurance benefit
under the Federal Social Security Act, he may | 13 |
| elect that the annuity
payments from this fund shall exceed | 14 |
| those payable after his attaining
such age by an amount, | 15 |
| computed as determined by rules of the Board, but
not in excess | 16 |
| of his estimated Social Security Benefit, determined as
of the | 17 |
| effective date of the annuity, provided that in no case shall | 18 |
| the
total annuity payments made by this fund exceed in | 19 |
| actuarial value the
annuity which would have been payable had | 20 |
| no such election been made.
| 21 |
| (c) The retirement annuity shall be increased each year by | 22 |
| 2%, not
compounded, of the monthly amount of annuity, taking | 23 |
| into consideration
any adjustment under paragraph (b) of this | 24 |
| Section. This increase shall
be effective each January 1 and | 25 |
| computed from the effective date of the
retirement annuity, the | 26 |
| first increase being .167% of the monthly amount
times the | 27 |
| number of months from the effective date to January 1. | 28 |
| Beginning
January 1, 1984 and thereafter, the retirement | 29 |
| annuity shall be increased
by 3% each year, not compounded. | 30 |
| This increase shall not be applicable to
annuitants who are not | 31 |
| in service on or after September 8, 1971.
| 32 |
| (Source: P.A. 91-357, eff. 7-29-99.)
| 33 |
| (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
| 34 |
| Sec. 7-152. Disability benefits - Amount. The amount of the | 35 |
| monthly
temporary and total and permanent disability benefits |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| shall be 50% of the
participating employee's final rate of | 2 |
| earnings on the date disability was
incurred, subject to the | 3 |
| following adjustments:
| 4 |
| (a) The amount of the monthly temporary and total and | 5 |
| permanent disability
benefits shall be 60% (rather than 50%) of | 6 |
| the participating employee's final
rate of earnings on the date | 7 |
| disability was incurred, if the date of disability
occurs after | 8 |
| the employer files with the board an undertaking to be | 9 |
| responsible
for the additional costs resulting from this | 10 |
| increase. The undertaking may
provide for all or a portion of | 11 |
| those additional costs to be collected by the
employer from its | 12 |
| employees, through deductions from earnings or in any other
| 13 |
| manner. The undertaking may be terminated by the employer (or | 14 |
| rejected by
the board) at any time, in which case benefits | 15 |
| granted thereafter shall be
based on the 50% rate, but benefits | 16 |
| already based on the 60% rate shall be
unaffected by the | 17 |
| termination of the undertaking.
| 18 |
| (a-5) If the participating employee has a reduced rate of | 19 |
| earnings at the
time his employment ceases because of | 20 |
| disability, the rate of earnings shall
be computed on the basis | 21 |
| of his last 12 month period of full-time employment.
| 22 |
| (b) If the participating employee is eligible for a | 23 |
| disability benefit
under the federal Social Security Act, the | 24 |
| amount of monthly disability
benefits shall be reduced, but not | 25 |
| to less than $10 a month, by the amount
he would be eligible to | 26 |
| receive as a disability benefit under the federal
Social | 27 |
| Security Act, whether or not because of service as a covered | 28 |
| employee
under this Article. The reduction shall be effective | 29 |
| as of the month the
employee is eligible for Social Security | 30 |
| disability benefits. The Board
may make such reduction if it | 31 |
| appears that the employee may be so eligible
pending | 32 |
| determination of eligibility and make an appropriate | 33 |
| adjustment
if necessary after such determination. If the | 34 |
| employee, because of his
refusal to accept rehabilitation | 35 |
| services under the federal Rehabilitation
Act of 1973 or the | 36 |
| federal Social Security Act, or because he is receiving
|
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| workers' compensation benefits, has his Social Security | 2 |
| benefits reduced or
terminated, the disability benefit shall be | 3 |
| reduced as if the employee were
receiving his full Social | 4 |
| Security disability benefit.
| 5 |
| (c) If the employee (i) is over the age for a full Social | 6 |
| Security
old-age insurance benefit, (ii) was not eligible for a | 7 |
| Social
Security disability benefit immediately before reaching | 8 |
| that age, and (iii) is eligible for a full Social Security | 9 |
| old-age insurance
benefit, then the amount of the monthly | 10 |
| disability benefit shall be
reduced, but not to less than $10 a | 11 |
| month, by the amount of the old-age
insurance benefit to which | 12 |
| the employee is entitled, whether or not the
employee applies | 13 |
| for the Social Security old-age insurance benefit. This
| 14 |
| reduction shall be made in the month after the month in which | 15 |
| the employee
attains the age for a full Social Security old-age | 16 |
| insurance benefit. However, if the employee was receiving a | 17 |
| Social Security disability
benefit before reaching the age for | 18 |
| a full Social Security old-age insurance
benefit, the | 19 |
| disability benefits after that age
shall be determined under | 20 |
| subsection (b) of this Section.
| 21 |
| (d) The amount of disability benefits shall not be reduced | 22 |
| by reason of
any increase, other than one resulting from a | 23 |
| correction in the employee's
wage records, in the amount of | 24 |
| disability or old-age insurance benefits
under the federal | 25 |
| Social Security Act which takes effect after the month
of the | 26 |
| initial reduction under paragraph (b) or (c) of this Section.
| 27 |
| (e) If the employee in any month receives compensation from | 28 |
| gainful
employment which is more than 25% of the final rate of | 29 |
| earnings on which
his disability benefits are based, the | 30 |
| temporary disability benefit payable
for that month shall be | 31 |
| reduced by an amount equal to such excess.
| 32 |
| (f) An employee who has been disabled for at least 30 days | 33 |
| may return to
work for the employer on a part-time basis for a | 34 |
| trial work period of up to
one year, during which the | 35 |
| disability shall be deemed to continue. Service
credit shall | 36 |
| continue to accrue and the disability benefit shall continue
to |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| be paid during the trial work period, but the benefit shall be | 2 |
| reduced
by the amount of earnings received by the disabled | 3 |
| employee. Return to
service on a full-time basis shall | 4 |
| terminate the trial work period. The
reduction under this | 5 |
| subsection (f) shall be in lieu of the reduction, if
any, | 6 |
| required under subsection (e).
| 7 |
| (g) Beginning January 1, 1988, every total and permanent | 8 |
| disability benefit
shall be increased by 3% of the original | 9 |
| amount of the benefit, not
compounded, on each January 1 | 10 |
| following the later of (1) the date the total
and permanent | 11 |
| disability benefit begins, or (2) the date the total and
| 12 |
| permanent disability benefit would have begun if the employee | 13 |
| had been paid
a temporary disability benefit for 30 months.
| 14 |
| (Source: P.A. 92-424, eff. 8-17-01.)
| 15 |
| (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
| 16 |
| Sec. 7-158. Surviving spouse annuities - Options. In lieu | 17 |
| of the surviving
spouse annuity an eligible surviving spouse | 18 |
| shall have the option of receiving
other benefits as follows:
| 19 |
| 1. The surviving spouse of a participating employee may | 20 |
| elect to receive
either a single sum death benefit or a | 21 |
| surviving spouse annuity and the
$5,000
$3,000 death benefit | 22 |
| provided in Sections 7-163 and 7-164.
| 23 |
| 2. The surviving spouse of an employee , who has separated | 24 |
| from service
and would have been entitled to a retirement | 25 |
| annuity on date of death , may
elect to receive either a single | 26 |
| sum death benefit or a surviving spouse
annuity and the $5,000
| 27 |
| $3,000 death benefit provided in Sections 7-163
and 7-164.
| 28 |
| 3. If any surviving spouse annuity is payable prior to the | 29 |
| earliest age at
which the recipient will become eligible for a | 30 |
| widows' or widowers' insurance
benefit under the Federal Social | 31 |
| Security Act, the recipient may elect
that the annuity payments | 32 |
| from this fund shall exceed those payable after
attaining such | 33 |
| age by an amount not in excess of the estimated Social
Security | 34 |
| Benefit, determined as of the effective date of the surviving
| 35 |
| spouse annuity, provided that in no case shall the total |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| annuity
payments made by this fund exceed in actuarial value | 2 |
| the annuity which
would have been paid had no such election | 3 |
| been made.
| 4 |
| 4. The surviving spouse of a participating employee, whose | 5 |
| annuity
was suspended upon return to employment and who had one | 6 |
| year or more of
service after his return, may apply the | 7 |
| additional service credits to a
supplemental surviving spouse | 8 |
| annuity and receive the $5,000
$3,000
death benefit or apply | 9 |
| the additional service credits to a single sum death
benefit | 10 |
| and forego the $5,000
$3,000 death benefit payable upon the
| 11 |
| death of an annuitant.
| 12 |
| 5. The surviving spouse of a participating employee, whose | 13 |
| annuity
was suspended upon return to employment and who had | 14 |
| less than one year
of service after his return, shall have the | 15 |
| additional service credits
applied towards a supplemental | 16 |
| surviving spouse annuity and shall receive
the $5,000
$3,000
| 17 |
| death benefit.
| 18 |
| (Source: P.A. 85-941.)
| 19 |
| (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
| 20 |
| Sec. 7-164. Death benefits - Amount. The amount of the | 21 |
| death benefit
shall be:
| 22 |
| 1. Upon the death of an employee with at least one year of | 23 |
| service
occurring while in an employment relationship | 24 |
| (including employees
drawing disability benefits) with a | 25 |
| participating municipality or
participating instrumentality, | 26 |
| an amount equal to the sum of:
| 27 |
| (a) The employee's normal, additional and survivor | 28 |
| credits,
including interest credited thereto through the | 29 |
| end of the preceding
calendar year, but excluding credits | 30 |
| and interest thereon allowed for
periods of disability.
| 31 |
| (b) An amount equal to the employee's annual final rate | 32 |
| of earnings.
An employee who dies as a result of injuries | 33 |
| connected with his duties
shall be considered to have a | 34 |
| year of service for purposes of this
benefit.
| 35 |
| 2. Upon the death of an employee with less than 1
one year |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| of
service
occurring while in the service of any participating | 2 |
| municipality or
instrumentality, an amount equal to the sum of | 3 |
| his accumulated normal,
additional and survivor credits on the | 4 |
| date of death, excluding those
credits and interest thereon | 5 |
| allowed during periods of disability.
| 6 |
| 3. Upon the death of an employee who has separated from | 7 |
| service and
was not entitled to a retirement annuity on the | 8 |
| date of death, an amount
equal to the sum of his accumulated | 9 |
| normal, survivor and additional
credits on the date of death | 10 |
| excluding those credits and interest
thereon allowed during | 11 |
| periods of disability.
| 12 |
| 4. Upon the death of an employee in an employment | 13 |
| relationship, or
an employee who has service and was entitled | 14 |
| to a retirement annuity on
the date of death, when a surviving | 15 |
| spouse or child annuity is awarded,
$5,000
$3,000 .
| 16 |
| 5. Upon the death of an employee, who has separated from | 17 |
| service and
was entitled to a retirement annuity on the date of | 18 |
| death, and no
surviving spouse or child annuity is awarded, | 19 |
| $5,000
$3,000 plus an
amount
equal to his accumulated normal, | 20 |
| survivor and additional credits on the
date of death, excluding | 21 |
| those credits and interest earned thereon
allowed during | 22 |
| periods of disability.
| 23 |
| 6. Upon the death of an employee annuitant, $5,000
$3,000
| 24 |
| and,
unless a
surviving spouse, child or reversionary annuity | 25 |
| is payable, the sum of
(i) the excess of the normal and | 26 |
| survivor credits, excluding those
allowed during periods of | 27 |
| disability, which the annuitant had as of the
effective date of | 28 |
| his annuity over the total annuities paid pursuant to
paragraph | 29 |
| (a) 1 of Section 7-142 to the date of death, plus (ii) the
| 30 |
| excess of the additional credits, excluding any such credits | 31 |
| used to
create a reversionary annuity, used to provide the | 32 |
| annuity granted
pursuant to paragraph (a) 2 of Section 7-142 | 33 |
| over the total annuity
payments made pursuant thereto to the | 34 |
| time of death.
| 35 |
| 7. Upon the death of an annuitant receiving a reversionary | 36 |
| annuity
or of a person designated to receive a reversionary |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| annuity prior to the
receipt of such annuity the sum of the | 2 |
| additional credits of the person
creating the reversionary | 3 |
| annuity as of the effective date of his own
retirement annuity | 4 |
| over the reversionary annuity payments, if any, made
prior to | 5 |
| the date of death of such annuitant or person designated to
| 6 |
| receive the reversionary annuity.
| 7 |
| 8. Upon the death of an annuitant receiving a beneficiary | 8 |
| annuity
which was effective before January 1, 1986,
the excess | 9 |
| of the death benefit which was used to provide the annuity,
| 10 |
| over the sum of all annuity payments made to the beneficiary.
| 11 |
| Upon the death of an annuitant receiving a beneficiary annuity | 12 |
| effective
January 1, 1986 or thereafter, the sum of (i) the | 13 |
| excess of the normal and
survivor credits, excluding those | 14 |
| allowed during periods of disability,
which the annuitant had | 15 |
| as of the effective date of his annuity over the
total | 16 |
| annuities paid pursuant to paragraph (c) of Section 7-165, to | 17 |
| date of
death, plus (ii) the excess of the additional credits, | 18 |
| excluding any such
credits used to create a reversionary | 19 |
| annuity, used to provide the annuity
granted pursuant to | 20 |
| paragraph (d) of Section 7-165 over the total annuity
payments | 21 |
| made pursuant thereto to the time of death.
| 22 |
| 9. Upon the marriage prior to reaching age 55 (except for a | 23 |
| surviving
spouse who remarries after December 31, 2000) or | 24 |
| death of a person receiving
a surviving spouse annuity, unless | 25 |
| a child annuity is payable, the sum of (i)
the excess of the | 26 |
| normal and survivor credits, excluding those credits and
| 27 |
| interest thereon allowed during periods of disability, | 28 |
| attributable to
the employee at the effective date of the | 29 |
| annuity or date of death,
whichever first occurred, over the | 30 |
| total of all annuity payments
attributable to paragraph (a) 1 | 31 |
| of Section 7-142 made to the employee or
surviving spouse plus | 32 |
| (ii) the excess of the additional credits,
excluding any such | 33 |
| credits used to create a reversionary annuity or used
to | 34 |
| provide the annuity attributable to paragraph (a) 2 of Section | 35 |
| 7-142
over the total of such payments.
| 36 |
| 10. Upon the marriage, death or attainment of age 18 of a |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| child
receiving a child annuity, if no other child annuities | 2 |
| are payable, the
sum of (i) the excess of the normal and | 3 |
| survivor credits excluding those
credits and interest thereon | 4 |
| allowed during periods of disability, of
the employee at the | 5 |
| effective date of the annuity or date of death,
whichever first | 6 |
| occurred, over the total annuity payments attributable
to | 7 |
| paragraph (a) 1 of Section 7-142 made to the employee, | 8 |
| surviving
spouse and children plus (ii) the excess of the | 9 |
| additional credits,
excluding any such credits used to create a | 10 |
| reversionary annuity, used
to provide the annuity attributable | 11 |
| to paragraph (a) 2 of Section 7-142
over the total annuity | 12 |
| payments made to the employee, surviving spouse
and children, | 13 |
| pursuant thereto.
| 14 |
| 11. Upon the death of the participating employee whose | 15 |
| annuity was
suspended upon his return to employment:
| 16 |
| a. If a surviving spouse or child annuity is awarded, | 17 |
| $5,000
$3,000 ;
| 18 |
| b. If no surviving spouse or child annuity is awarded | 19 |
| and he had
less than one year's service upon return, $5,000
| 20 |
| $3,000 plus the excess
of the
normal, survivor and | 21 |
| additional credits, including interest thereon, but
| 22 |
| excluding those allowed during a period of disability, at | 23 |
| the effective
date of the suspended annuity, plus those | 24 |
| allowed after his return, over
all annuity payments made to | 25 |
| the employee;
| 26 |
| c. If no surviving spouse or child annuity is awarded | 27 |
| and he has one
year or more of service upon return, the | 28 |
| higher of (a) the payment under
subparagraph b of this | 29 |
| paragraph or (b) the payment under paragraph 1 of
this | 30 |
| Section, taking into consideration only the service and | 31 |
| credits
allowed after his return, plus the excess of the | 32 |
| normal, survivor and
additional credits, including | 33 |
| interest thereon, excluding those allowed
during periods | 34 |
| of disability, at the effective date of his suspended
| 35 |
| annuity over all annuity payments made to the employee.
| 36 |
| 12. The $3,000 or $5,000 death benefit provided in |
|
|
|
HB1185 |
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LRB094 04142 AMC 34163 b |
|
| 1 |
| paragraphs 4 and 6
shall
not be payable to beneficiaries of | 2 |
| persons who terminated service prior
to September 8, 1971, | 3 |
| unless the payment or agreement for payment
provided by Section | 4 |
| 7-144.2 of this Article is made prior to the date of
death.
| 5 |
| 13. The increase in certain death benefits from $1,000 to | 6 |
| $3,000
provided by this amendatory Act of 1987 shall apply only | 7 |
| to deaths
occurring on or after January 1, 1988.
| 8 |
| The increase in certain death benefits from $3,000 to | 9 |
| $5,000 provided by
this amendatory Act of the 94th General | 10 |
| Assembly applies to deaths that occur
on or after the effective | 11 |
| date of this amendatory Act, without regard to
whether the | 12 |
| deceased person was in service on or after that date.
| 13 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 14 |
| (40 ILCS 5/7-168) (from Ch. 108 1/2, par. 7-168)
| 15 |
| Sec. 7-168. Separation benefits - Amount. The amount of | 16 |
| the separation
benefit
benefits shall be the sum of the | 17 |
| employee's accumulated normal,
survivor , and additional | 18 |
| contributions. Separation benefits paid on or
after the | 19 |
| effective date of this amendatory Act of the 94th General | 20 |
| Assembly
may also include interest on the refunded | 21 |
| contributions, calculated at a rate
and in a manner determined | 22 |
| by the Board.
| 23 |
| (Source: P.A. 87-740.)
| 24 |
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 25 |
| Sec. 7-172. Contributions by participating municipalities | 26 |
| and
participating instrumentalities.
| 27 |
| (a) Each participating municipality and each participating
| 28 |
| instrumentality shall make payment to the fund as follows:
| 29 |
| 1. municipality contributions in an amount determined | 30 |
| by applying
the municipality contribution rate to each | 31 |
| payment of earnings paid to
each of its participating | 32 |
| employees;
| 33 |
| 2. an amount equal to the employee contributions | 34 |
| provided by paragraphs
(a) and (b) of Section 7-173, |
|
|
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| whether or not the employee contributions are
withheld as | 2 |
| permitted by that Section;
| 3 |
| 3. all accounts receivable, together with interest | 4 |
| charged thereon,
as provided in Section 7-209;
| 5 |
| 4. if it has no participating employees with current | 6 |
| earnings, an
amount payable which, over a period of 20 | 7 |
| years beginning with the year
following an award of | 8 |
| benefit, will amortize, at the effective rate for
that | 9 |
| year, any negative balance in its municipality reserve | 10 |
| resulting
from the award. This amount when established will | 11 |
| be payable as a
separate contribution whether or not it | 12 |
| later has participating employees.
| 13 |
| (b) A separate municipality contribution rate shall be | 14 |
| determined
for each calendar year for all participating | 15 |
| municipalities together
with all instrumentalities thereof. | 16 |
| The municipality contribution rate
shall be determined for | 17 |
| participating instrumentalities as if they were
participating | 18 |
| municipalities. The municipality contribution rate shall
be | 19 |
| the sum of the following percentages:
| 20 |
| 1. The percentage of earnings of all the participating | 21 |
| employees of all
participating municipalities and | 22 |
| participating instrumentalities which, if paid
over the | 23 |
| entire period of their service, will be sufficient when | 24 |
| combined with
all employee contributions available for the | 25 |
| payment of benefits, to provide
all annuities for | 26 |
| participating employees, and the $5,000
$3,000 death
| 27 |
| benefit
payable under Sections 7-158 and 7-164, such | 28 |
| percentage to be known as the
normal cost rate.
| 29 |
| 2. The percentage of earnings of the participating | 30 |
| employees of each
participating municipality and | 31 |
| participating instrumentalities necessary
to adjust for | 32 |
| the difference between the present value of all benefits,
| 33 |
| excluding temporary and total and permanent disability and | 34 |
| death benefits, to
be provided for its participating | 35 |
| employees and the sum of its accumulated
municipality | 36 |
| contributions and the accumulated employee contributions |
|
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| and the
present value of expected future employee and | 2 |
| municipality contributions
pursuant to subparagraph 1 of | 3 |
| this paragraph (b). This adjustment shall be
spread over | 4 |
| the remainder of the period that is allowable under | 5 |
| generally
accepted accounting principles.
| 6 |
| 3. The percentage of earnings of the participating | 7 |
| employees of all
municipalities and participating | 8 |
| instrumentalities necessary to provide
the present value | 9 |
| of all temporary and total and permanent disability
| 10 |
| benefits granted during the most recent year for which | 11 |
| information is
available.
| 12 |
| 4. The percentage of earnings of the participating | 13 |
| employees of all
participating municipalities and | 14 |
| participating instrumentalities
necessary to provide the | 15 |
| present value of the net single sum death
benefits expected | 16 |
| to become payable from the reserve established under
| 17 |
| Section 7-206 during the year for which this rate is fixed.
| 18 |
| 5. The percentage of earnings necessary to meet any | 19 |
| deficiency
arising in the Terminated Municipality Reserve.
| 20 |
| (c) A separate municipality contribution rate shall be | 21 |
| computed for
each participating municipality or participating | 22 |
| instrumentality
for its sheriff's law enforcement employees.
| 23 |
| A separate municipality contribution rate shall be | 24 |
| computed for the
sheriff's law enforcement employees of each | 25 |
| forest preserve district that
elects to have such employees. | 26 |
| For the period from January 1, 1986 to
December 31, 1986, such | 27 |
| rate shall be the forest preserve district's regular
rate plus | 28 |
| 2%.
| 29 |
| In the event that the Board determines that there is an | 30 |
| actuarial
deficiency in the account of any municipality with | 31 |
| respect to a person who
has elected to participate in the Fund | 32 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 33 |
| municipality's contribution rate so as to make up
that | 34 |
| deficiency over such reasonable period of time as the Board may | 35 |
| determine.
| 36 |
| (d) The Board may establish a separate municipality |
|
|
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| contribution
rate for all employees who are program | 2 |
| participants employed under the
federal Comprehensive | 3 |
| Employment Training Act by all of the
participating | 4 |
| municipalities and instrumentalities. The Board may also
| 5 |
| provide that, in lieu of a separate municipality rate for these
| 6 |
| employees, a portion of the municipality contributions for such | 7 |
| program
participants shall be refunded or an extra charge | 8 |
| assessed so that the
amount of municipality contributions | 9 |
| retained or received by the fund
for all CETA program | 10 |
| participants shall be an amount equal to that which
would be | 11 |
| provided by the separate municipality contribution rate for all
| 12 |
| such program participants. Refunds shall be made to prime | 13 |
| sponsors of
programs upon submission of a claim therefor and | 14 |
| extra charges shall be
assessed to participating | 15 |
| municipalities and instrumentalities. In
establishing the | 16 |
| municipality contribution rate as provided in paragraph
(b) of | 17 |
| this Section, the use of a separate municipality contribution
| 18 |
| rate for program participants or the refund of a portion of the
| 19 |
| municipality contributions, as the case may be, may be | 20 |
| considered.
| 21 |
| (e) Computations of municipality contribution rates for | 22 |
| the
following calendar year shall be made prior to the | 23 |
| beginning of each
year, from the information available at the | 24 |
| time the computations are
made, and on the assumption that the | 25 |
| employees in each participating
municipality or participating | 26 |
| instrumentality at such time will continue
in service until the | 27 |
| end of such calendar year at their respective rates
of earnings | 28 |
| at such time.
| 29 |
| (f) Any municipality which is the recipient of State | 30 |
| allocations
representing that municipality's contributions for | 31 |
| retirement annuity
purposes on behalf of its employees as | 32 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 33 |
| shall pay the allocations so
received to the Board for such | 34 |
| purpose. Estimates of State allocations to
be received during | 35 |
| any taxable year shall be considered in the
determination of | 36 |
| the municipality's tax rate for that year under Section
7-171. |
|
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| If a special tax is levied under Section 7-171, none of the
| 2 |
| proceeds may be used to reimburse the municipality for the | 3 |
| amount of State
allocations received and paid to the Board. Any | 4 |
| multiple-county or
consolidated health department which | 5 |
| receives contributions from a county
under Section 11.2 of "An | 6 |
| Act in relation to establishment and maintenance
of county and | 7 |
| multiple-county health departments", approved July 9, 1943,
as | 8 |
| amended, or distributions under Section 3 of the Department of | 9 |
| Public
Health Act, shall use these only for municipality | 10 |
| contributions by the
health department.
| 11 |
| (g) Municipality contributions for the several purposes | 12 |
| specified
shall, for township treasurers and employees in the | 13 |
| offices of the
township treasurers who meet the qualifying | 14 |
| conditions for coverage
hereunder, be allocated among the | 15 |
| several school districts and parts of
school districts serviced | 16 |
| by such treasurers and employees in the
proportion which the | 17 |
| amount of school funds of each district or part of
a district | 18 |
| handled by the treasurer bears to the total amount of all
| 19 |
| school funds handled by the treasurer.
| 20 |
| From the funds subject to allocation among districts and | 21 |
| parts of
districts pursuant to the School Code, the trustees | 22 |
| shall withhold the
proportionate share of the liability for | 23 |
| municipality contributions imposed
upon such districts by this | 24 |
| Section, in respect to such township treasurers
and employees | 25 |
| and remit the same to the Board.
| 26 |
| The municipality contribution rate for an educational | 27 |
| service center shall
initially be the same rate for each year | 28 |
| as the regional office of
education or school district
which | 29 |
| serves as its administrative agent. When actuarial data become
| 30 |
| available, a separate rate shall be established as provided in | 31 |
| subparagraph
(i) of this Section.
| 32 |
| The municipality contribution rate for a public agency, | 33 |
| other than a
vocational education cooperative, formed under the | 34 |
| Intergovernmental
Cooperation Act shall initially be the | 35 |
| average rate for the municipalities
which are parties to the | 36 |
| intergovernmental agreement. When actuarial data
become |
|
|
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LRB094 04142 AMC 34163 b |
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| available, a separate rate shall be established as provided in
| 2 |
| subparagraph (i) of this Section.
| 3 |
| (h) Each participating municipality and participating
| 4 |
| instrumentality shall make the contributions in the amounts | 5 |
| provided in
this Section in the manner prescribed from time to | 6 |
| time by the Board and
all such contributions shall be | 7 |
| obligations of the respective
participating municipalities and | 8 |
| participating instrumentalities to this
fund. The failure to | 9 |
| deduct any employee contributions shall not
relieve the | 10 |
| participating municipality or participating instrumentality
of | 11 |
| its obligation to this fund. Delinquent payments of | 12 |
| contributions
due under this Section may, with interest, be | 13 |
| recovered by civil action
against the participating | 14 |
| municipalities or participating
instrumentalities. | 15 |
| Municipality contributions, other than the amount
necessary | 16 |
| for employee contributions and Social Security contributions, | 17 |
| for
periods of service by employees from whose earnings no | 18 |
| deductions were made
for employee contributions to the fund, | 19 |
| may be charged to the municipality
reserve for the municipality | 20 |
| or participating instrumentality.
| 21 |
| (i) Contributions by participating instrumentalities shall | 22 |
| be
determined as provided herein except that the percentage | 23 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 24 |
| and the amount payable
under subparagraph 5 of paragraph (a) of | 25 |
| this Section, shall be based on
an amortization period of 10 | 26 |
| years.
| 27 |
| (Source: P.A. 92-424, eff. 8-17-01.)
| 28 |
| (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
| 29 |
| Sec. 7-174. Board created.
| 30 |
| (a) A board of 8 members shall
constitute a board of | 31 |
| trustees authorized to carry out the provisions of
this | 32 |
| Article. Each trustee shall be a participating employee of a
| 33 |
| participating municipality or participating instrumentality or | 34 |
| an annuitant
of the Fund and no person shall be eligible to | 35 |
| become a trustee after January
1, 1979 who does not have at |
|
|
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| 1 |
| least 5 years
8 years of creditable
service.
| 2 |
| (b) The board shall consist of representatives of various | 3 |
| groups as
follows:
| 4 |
| 1. 4 trustees shall be a chief executive officer, chief | 5 |
| finance
officer, or other officer, executive or department | 6 |
| head of a
participating municipality or participating | 7 |
| instrumentality, and each
such trustee shall be designated | 8 |
| as an executive trustee.
| 9 |
| 2. 3 trustees shall be employees of a participating | 10 |
| municipality or
participating instrumentality and each | 11 |
| such trustee shall be designated
as an employee trustee.
| 12 |
| 3. One trustee shall be an annuitant of the Fund, who | 13 |
| shall be
designated the annuitant trustee.
| 14 |
| (c) A person elected as a trustee shall qualify as a | 15 |
| trustee, after
declaration by the board that he has been duly | 16 |
| elected, upon taking and
subscribing to the constitutional oath | 17 |
| of office and filing same in the
office of the Fund.
| 18 |
| (d) The term of office of each trustee shall begin upon | 19 |
| January 1 of
the year following the year in which he is elected | 20 |
| and shall continue
for a period of 5 years and until a | 21 |
| successor has been elected and
qualified, or until prior | 22 |
| resignation, death, incapacity or
disqualification.
| 23 |
| (e) Any elected trustee (other than the annuitant trustee) | 24 |
| shall be
disqualified immediately upon termination of | 25 |
| employment with all participating
municipalities and | 26 |
| instrumentalities thereof or upon any change in status which
| 27 |
| removes any such trustee from all employments within the group | 28 |
| he represents.
The annuitant trustee shall be disqualified upon | 29 |
| termination of his or her
annuity.
| 30 |
| (f) The trustees shall fill any vacancy in the board by | 31 |
| appointment,
for the period until the next election of | 32 |
| trustees, or, if the remaining
term is less than 2 years, for | 33 |
| the remainder of the term, and until his
successor has been | 34 |
| elected and qualified.
| 35 |
| (g) Trustees shall serve without compensation, but shall be
| 36 |
| reimbursed for any reasonable expenses incurred in attending |
|
|
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LRB094 04142 AMC 34163 b |
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| 1 |
| meetings of
the board and in performing duties on behalf of the | 2 |
| Fund and for the
amount of any earnings withheld by any | 3 |
| employing municipality or
participating instrumentality | 4 |
| because of attendance at any board
meeting.
| 5 |
| (h) Each trustee other than the annuitant trustee shall be | 6 |
| entitled to
one vote on any and all actions before the board; | 7 |
| the annuitant trustee is
not entitled to vote on any matter. At | 8 |
| least 4 concurring votes
shall be necessary for every decision | 9 |
| or action by the board at any of its
meetings. No decision or | 10 |
| action shall become effective unless presented and so
approved | 11 |
| at a regular or duly called special meeting of the board.
| 12 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 13 |
| (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
| 14 |
| Sec. 7-205. Reserves for annuities. Appropriate reserves | 15 |
| shall be created
for payment of all annuities granted under | 16 |
| this Article at the time such
annuities are granted and in | 17 |
| amounts determined to be necessary under actuarial
tables | 18 |
| adopted by the Board upon recommendation of the actuary of the | 19 |
| fund.
All annuities payable shall be charged to the annuity | 20 |
| reserve.
| 21 |
| 1. Amounts credited to annuity reserves shall be derived by | 22 |
| transfer of
all the employee credits from the appropriate | 23 |
| employee reserves and by
charges to the municipality reserve of | 24 |
| those municipalities in which the
retiring employee has | 25 |
| accumulated service. If a retiring employee has
accumulated | 26 |
| service in more than one participating municipality or
| 27 |
| participating instrumentality, aggregate municipality charges | 28 |
| shall be
prorated on a basis of the employee's earnings in case | 29 |
| of concurrent
service and creditable service in other cases.
| 30 |
| 2. Supplemental annuities shall be handled as a separate | 31 |
| annuity and
amounts to be credited to the annuity reserve | 32 |
| therefor shall be derived in
the same manner as a regular | 33 |
| annuity.
| 34 |
| 3. When a retirement annuity is granted to an employee with | 35 |
| a spouse
eligible for a surviving spouse annuity, there shall |
|
|
|
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|
| 1 |
| be credited to the
annuity reserve an amount to fund the cost | 2 |
| of both the retirement and
surviving spouse annuity as a joint | 3 |
| and survivors annuity.
| 4 |
| 4. Beginning January 1, 1989, when a retirement annuity is | 5 |
| awarded, an
amount equal to the present value of the $3,000 or | 6 |
| $5,000 death benefit
payable upon the death of the annuitant | 7 |
| shall be transferred to the annuity
reserve from the | 8 |
| appropriate municipality reserves in the same manner as the
| 9 |
| transfer for annuities.
| 10 |
| 5. All annuity reserves shall be revalued annually as of | 11 |
| December 31.
Beginning as of December 31, 1973, adjustment | 12 |
| required therein by such
revaluation shall be charged or | 13 |
| credited to the earnings and experience
variation reserve.
| 14 |
| 6. There shall be credited to the annuity reserve all of | 15 |
| the
payments made by annuitants under Section 7-144.2, plus an | 16 |
| additional amount
from the earnings and experience variation | 17 |
| reserve to fund the cost of the
incremental annuities granted | 18 |
| to annuitants making these payments.
| 19 |
| 7. As of December 31, 1972, the excess in the annuity | 20 |
| reserve shall be
transferred to the municipality reserves. An | 21 |
| amount equal to the deficiency
in the reserve of participating | 22 |
| municipalities and participating
instrumentalities which have | 23 |
| no participating employees shall be allocated
to their | 24 |
| reserves. The remainder shall be allocated in amounts
| 25 |
| proportionate to the present value, as of January 1, 1972, of | 26 |
| annuities of
annuitants of the remaining participating | 27 |
| municipalities and participating
instrumentalities.
| 28 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 29 |
| (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
| 30 |
| Sec. 7-206. Death Reserve. All death benefit payments | 31 |
| shall be charged
to the Death Reserve, other than the $3,000 or | 32 |
| $5,000 death benefits
paid after December 31, 1988 upon the | 33 |
| death of an annuitant. All
contributions for death purposes | 34 |
| under Section 7-172(b)4 shall be
credited to the same reserve. | 35 |
| Whenever the balance in such reserve at the
close of a year |
|
|
|
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| 1 |
| exceeds 100% of the average annual charges to this account
| 2 |
| during the 3 preceding calendar years, the basic actuarial | 3 |
| assumptions upon
which municipality contribution rates for | 4 |
| these purposes are based, shall
be reviewed and revised in such | 5 |
| manner as is deemed necessary to reduce
such balance.
| 6 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 7 |
| Section 90. The State Mandates Act is amended by adding | 8 |
| Section 8.29 as
follows:
| 9 |
| (30 ILCS 805/8.29 new)
| 10 |
| Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | 11 |
| of this
Act, no reimbursement by the State is required for the | 12 |
| implementation of
any mandate created by this amendatory Act of | 13 |
| the 94th General Assembly.
| 14 |
| Section 99. Effective date. This Act takes effect upon | 15 |
| becoming law. |
|