Full Text of HB1698 95th General Assembly
HB1698 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1698
Introduced 2/22/2007, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Pension Code. In the General Provisions Article, allows certain pension funds to embrace the investment in international equities and fixed income in corporations created or existing under the laws of a foreign country or in such corporations through investments in certain pooled or commingled funds and provides that, for the Metropolitan Water Reclamation District Retirement Fund, the total market value of all stocks and convertible debt shall not exceed 75% of the aggregate market value of all fund investments. In the Metropolitan Water Reclamation District Article, (i) makes changes concerning the timing of the first annuity payment date for retirement and survivor's annuities; (ii) provides that an employee in service before June 13, 1997 shall also receive a child's disability
benefit during the period of disability of $10 per month for each
unmarried natural or adopted child of the employee under
18 years of age (language granting this benefit was removed from the statutes by Public Act 90-12, effective June 13, 1997); (iii) provides that there shall be deducted from each payment of salary an amount equal to 7% of salary as the employee's contribution for the retirement annuity, including child's annuity, and 0.5% of salary as the employee's contribution for annual increases to the retirement annuity (was, 7 1/2% of salary as employees contribution for the retirement annuity, including annual increases therefore and child's annuity); (iv) makes changes concerning refunds after the death of a survivor of the employee and spouse; and (v) makes changes concerning the investment authority of the Retirement Board of the Metropolitan Water Reclamation District. 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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HB1698 |
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LRB095 10855 AMC 31125 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 1-113, 13-215, 13-216, 13-309, 13-502, 13-601, and | 6 |
| 13-706 as follows:
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| (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
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| Sec. 1-113. Investment authority of certain pension funds, | 9 |
| not including
those established under Article 3 or 4. The | 10 |
| investment authority of a board
of trustees of a retirement | 11 |
| system or pension fund established under this
Code shall, if so | 12 |
| provided in the Article establishing such retirement system
or | 13 |
| pension fund, embrace the following investments:
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| (1) Bonds, notes and other direct obligations of the United | 15 |
| States
Government; bonds, notes and other obligations of any | 16 |
| United States
Government agency or instrumentality, whether or | 17 |
| not guaranteed; and
obligations the principal and interest of | 18 |
| which are guaranteed
unconditionally by the United States | 19 |
| Government or by an agency or
instrumentality thereof.
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| (2) Obligations of the Inter-American Development Bank, | 21 |
| the
International Bank for Reconstruction and Development, the | 22 |
| African
Development Bank, the International Finance | 23 |
| Corporation, and the Asian
Development Bank.
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| (3) Obligations of any state, or of any political | 2 |
| subdivision in
Illinois, or of any county or city in any other | 3 |
| state having a
population as shown by the last federal census | 4 |
| of not less than 30,000
inhabitants provided that such | 5 |
| political subdivision is not permitted by
law to become | 6 |
| indebted in excess of 10% of the assessed valuation of
property | 7 |
| therein and has not defaulted for a period longer than 30 days
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| in the payment of interest and principal on any of its general
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| obligations or indebtedness during a period of 10 calendar | 10 |
| years
immediately preceding such investment.
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| (4) Nonconvertible bonds, debentures, notes and other | 12 |
| corporate
obligations of any corporation created or existing | 13 |
| under the laws of the
United States or any state, district or | 14 |
| territory thereof, provided
there has been no default on the | 15 |
| obligations of the corporation or its
predecessor(s) during the | 16 |
| 5 calendar years immediately preceding the
purchase. Up to 5% | 17 |
| of the assets of
a pension fund established under Article 9 of | 18 |
| this Code may be
invested in nonconvertible bonds, debentures, | 19 |
| notes, and other corporate
obligations of corporations created | 20 |
| or existing under the laws of a foreign
country, provided there | 21 |
| has been no default on the obligations of the
corporation or | 22 |
| its predecessors during the 5 calendar years immediately
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| preceding the date of purchase.
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| (5) Obligations guaranteed by the Government of Canada, or | 25 |
| by any
Province of Canada, or by any Canadian city with a | 26 |
| population of not
less than 150,000 inhabitants, provided (a) |
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| they are payable in United
States currency and are exempt from | 2 |
| any Canadian withholding tax; (b)
the investment in any one | 3 |
| issue of bonds shall not exceed 10% of the
amount outstanding; | 4 |
| and (c) the total investments at book value in
Canadian | 5 |
| securities shall be limited to 5% of the total investment
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| account of the board at book value.
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| (5.1) Direct obligations of the State of Israel for the | 8 |
| payment of
money, or obligations for the payment of money which | 9 |
| are guaranteed as
to the payment of principal and interest by | 10 |
| the State of Israel, or common
or preferred stock or notes | 11 |
| issued by a bank owned or controlled in whole
or in part by the | 12 |
| State of Israel, on the following conditions:
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| (a) The total investments in such obligations shall not | 14 |
| exceed 5% of
the book value of the aggregate investments | 15 |
| owned by the board;
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| (b) The State of Israel shall not be in default in the | 17 |
| payment of
principal or interest on any of its direct | 18 |
| general obligations on the
date of such investment;
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| (c) The bonds, stock or notes, and interest thereon | 20 |
| shall be payable
in currency of the United States;
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| (d) The bonds shall (1) contain an option for the | 22 |
| redemption thereof
after 90 days from date of purchase or | 23 |
| (2) either become due 5 years from
the date of their | 24 |
| purchase or be subject to redemption 120 days after the
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| date of notice for redemption;
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| (e) The investment in these obligations has been |
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| approved in writing
by investment counsel employed by the | 2 |
| board, which counsel shall be a
national or state bank or | 3 |
| trust company authorized to do a trust
business in the | 4 |
| State of Illinois, or an investment advisor qualified
under | 5 |
| the Federal Investment Advisors Act of 1940 and registered | 6 |
| under
the Illinois Securities Act of 1953;
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| (f) The fund or system making the investment shall have | 8 |
| at least
$5,000,000 of net present assets.
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| (6) Notes secured by mortgages under Sections 203, 207, 220 | 10 |
| and 221 of
the National Housing Act which are insured by the | 11 |
| Federal Housing Commissioner,
or his successor assigns, or | 12 |
| debentures issued by such Commissioner, which
are guaranteed as | 13 |
| to principal and interest by the Federal Housing
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| Administration, or agency of the United States Government, | 15 |
| provided the
aggregate investment shall not exceed 20% of the | 16 |
| total investment account
of the board at book value, and | 17 |
| provided further that the investment in
such notes under | 18 |
| Sections 220 and 221 shall in no event exceed one-half of
the | 19 |
| maximum investment in notes under this paragraph.
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| (7) Loans to veterans guaranteed in whole or part by the | 21 |
| United
States Government pursuant to Title III of the Act of | 22 |
| Congress known as
the "Servicemen's Readjustment Act of 1944," | 23 |
| 58 Stat. 284, 38 U.S.C.
693, as amended or supplemented from | 24 |
| time to time, provided such
guaranteed loans are liens upon | 25 |
| real estate.
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| (8) Common and preferred stocks and convertible debt |
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| securities
authorized for investment of trust funds under the | 2 |
| laws of the State of
Illinois, provided:
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| (a) the common stocks, except as provided in | 4 |
| subparagraph (g), are
listed on a national securities | 5 |
| exchange or board of trade, as defined in the
federal | 6 |
| Securities Exchange Act of 1934, or quoted in the National | 7 |
| Association
of Securities Dealers Automated Quotation | 8 |
| System (NASDAQ);
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| (b) the securities are of a corporation created or | 10 |
| existing under
the laws of the United States or any state, | 11 |
| district or territory thereof,
except that up to 5% of the | 12 |
| assets of a pension fund established under Article
9 of | 13 |
| this Code may be invested in securities issued by | 14 |
| corporations created or
existing under the laws of a | 15 |
| foreign country, if those securities are otherwise
in | 16 |
| conformance with this paragraph (8);
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| (c) the corporation is not in arrears on payment of | 18 |
| dividends on its
preferred stock;
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| (d) the total book value of all stocks and convertible | 20 |
| debt owned by any
pension fund or retirement system shall | 21 |
| not exceed 40% of the aggregate
book value of all | 22 |
| investments of such pension fund or retirement system,
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| except for a pension fund or retirement system governed by | 24 |
| Article
9 or 17, where the total of all stocks and | 25 |
| convertible debt shall
not exceed 50% of the aggregate book | 26 |
| value of all fund investments, and
except for a pension |
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| fund or retirement system governed by Article 13,
where the | 2 |
| total market value of all stocks and convertible debt shall | 3 |
| not
exceed 75%
65% of the aggregate market value of all | 4 |
| fund investments;
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| (e) the book value of stock and convertible debt | 6 |
| investments in any
one corporation shall not exceed 5% of | 7 |
| the total investment account at book
value in which such | 8 |
| securities are held, determined as of the date of the
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| investment, and the investments in the stock of any one | 10 |
| corporation shall
not exceed 5% of the total outstanding | 11 |
| stock of such corporation, and the
investments in the | 12 |
| convertible debt of any one corporation shall not exceed
5% | 13 |
| of the total amount of such debt that may be outstanding;
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| (f) the straight preferred stocks or convertible | 15 |
| preferred
stocks and convertible debt securities are | 16 |
| issued or guaranteed by a
corporation whose common stock | 17 |
| qualifies for investment by the board;
and
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| (g) that any common stocks not listed or quoted as
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| provided in subdivision 8(a) above be limited to the | 20 |
| following
types of institutions: (a) any bank which is a | 21 |
| member of the Federal
Deposit Insurance Corporation having | 22 |
| capital funds represented by
capital stock, surplus and | 23 |
| undivided profits of at least $20,000,000;
(b) any life | 24 |
| insurance company having capital funds represented by
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| capital stock, special surplus funds and unassigned | 26 |
| surplus totalling at
least $50,000,000; and (c) any fire or |
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| casualty insurance company, or a
combination thereof, | 2 |
| having capital funds represented by capital stock,
net | 3 |
| surplus and voluntary reserves of at least $50,000,000.
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| (9) Withdrawable accounts of State chartered and federal | 5 |
| chartered
savings and loan associations insured by the Federal | 6 |
| Savings and Loan
Insurance Corporation; deposits or | 7 |
| certificates of deposit in State
and national banks insured by | 8 |
| the Federal Deposit Insurance Corporation;
and share accounts | 9 |
| or share certificate accounts in a State or federal credit
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| union, the accounts of which are insured as required by the | 11 |
| Illinois Credit
Union Act or the Federal Credit Union Act, as | 12 |
| applicable.
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| No bank or savings and loan association shall receive | 14 |
| investment funds
as permitted by this subsection (9), unless it | 15 |
| has complied with the
requirements established pursuant to | 16 |
| Section 6 of the Public Funds
Investment Act.
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| (10) Trading, purchase or sale of listed options on | 18 |
| underlying
securities owned by the board.
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| (11) Contracts and agreements supplemental thereto | 20 |
| providing for
investments in the general account of a life | 21 |
| insurance company authorized
to do business in Illinois.
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| (12) Conventional mortgage pass-through securities which | 23 |
| are evidenced
by interests in Illinois owner-occupied | 24 |
| residential mortgages, having not
less than an "A" rating from | 25 |
| at least one national securities
rating service. Such mortgages | 26 |
| may have loan-to-value ratios up to 95%,
provided that any |
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| amount over 80% is insured by private mortgage insurance.
The | 2 |
| pool of such mortgages shall be insured by mortgage guaranty or | 3 |
| equivalent
insurance, in accordance with industry standards.
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| (13) Pooled or commingled funds managed by a national or | 5 |
| State bank
which is authorized to do a trust business in the | 6 |
| State of Illinois, shares
of registered investment companies as | 7 |
| defined in the federal Investment
Company Act of 1940 which are | 8 |
| registered under that Act, and
separate accounts of a life | 9 |
| insurance company authorized to do business
in Illinois, where | 10 |
| such pooled or commingled funds, shares, or separate
accounts | 11 |
| are comprised of common or preferred stocks, bonds, or money | 12 |
| market
instruments.
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| (14) Pooled or commingled funds managed by a national or | 14 |
| state
bank which is authorized to do a trust business in the | 15 |
| State of Illinois,
separate accounts managed by a life | 16 |
| insurance company authorized to
do business in Illinois, and | 17 |
| commingled group trusts managed by an investment
adviser | 18 |
| registered under the federal Investment Advisors Act of 1940 | 19 |
| (15
U.S.C. 80b-1 et seq.) and under the Illinois Securities Law | 20 |
| of 1953, where
such pooled or commingled funds, separate | 21 |
| accounts or commingled group
trusts are comprised of real | 22 |
| estate or loans upon real estate secured by
first or second | 23 |
| mortgages. The total investment in such pooled or
commingled | 24 |
| funds, commingled group trusts and separate accounts shall not
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| exceed 10% of the aggregate book value of all investments owned | 26 |
| by the fund.
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| (14.5) Investment in international equities and fixed | 2 |
| income may be made in corporations created or existing under | 3 |
| the laws of a foreign country or in such corporations through | 4 |
| investments in pooled or commingled funds permitted under | 5 |
| paragraph (13) of this Section.
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| (15) Investment companies which (a) are registered as such | 7 |
| under the
Investment Company Act of 1940, (b) are diversified, | 8 |
| open-end management
investment companies and (c) invest only in | 9 |
| money market instruments.
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| (16) Up to 10% of the assets of the fund may be invested in | 11 |
| investments
not included in paragraphs (1) through (15) of this | 12 |
| Section, provided that
such investments comply with the | 13 |
| requirements and restrictions set forth in
Sections 1-109, | 14 |
| 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
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| The board shall have the authority to enter into such | 16 |
| agreements and to
execute such documents as it determines to be | 17 |
| necessary to complete any
investment transaction.
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| Any limitations herein set forth shall be applicable only | 19 |
| at the time
of purchase and shall not require the liquidation | 20 |
| of any investment at
any time.
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| All investments shall be clearly held and accounted for to | 22 |
| indicate
ownership by such board. Such board may direct the | 23 |
| registration of
securities in its own name or in the name of a | 24 |
| nominee created for the
express purpose of registration of | 25 |
| securities by a national or state
bank or trust company | 26 |
| authorized to conduct a trust business
in the State of |
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| Illinois.
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| Investments shall be carried at cost or at a value | 3 |
| determined in accordance
with
generally accepted accounting | 4 |
| principles and accounting procedures
approved by such board.
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| (Source: P.A. 92-53, eff. 7-12-01.)
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| (40 ILCS 5/13-215) (from Ch. 108 1/2, par. 13-215)
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| Sec. 13-215. "Retirement annuity": A benefit payable as an | 8 |
| annuity for
service as an employee. The annuity shall be | 9 |
| payable in equal monthly
installments for life, except as | 10 |
| otherwise provided in this Article,
beginning in the
one month | 11 |
| after the effective date of the annuity as fixed by the
Board , | 12 |
| which shall not be prior to the date of withdrawal nor more | 13 |
| than one
year prior to the date of the employee's application | 14 |
| for the annuity. A
pro rata amount of the annuity shall be paid | 15 |
| for part of a month when the
annuity begins after the first day | 16 |
| of the month or ends before
the last day of the month.
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| Notwithstanding the above, all retirement annuity payments | 18 |
| first payable on or after January 1, 2008, shall begin the | 19 |
| first of the month following the effective date of retirement.
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| Effective January 1, 2008, benefits are payable for the | 21 |
| full month if the annuitant was alive on the first day of the | 22 |
| month.
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| (Source: P.A. 87-794.)
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| (40 ILCS 5/13-216) (from Ch. 108 1/2, par. 13-216)
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| Sec. 13-216. "Surviving spouse's annuity": The amount | 2 |
| payable as a
surviving spouse annuity commencing on the date of | 3 |
| the employee's or
retiree's death. The annuity shall be payable | 4 |
| in equal monthly
installments for life, except as otherwise | 5 |
| provided in this Article,
in the month after the effective date | 6 |
| of the annuity
beginning one month after the effective date of | 7 |
| the annuity . A pro rata
amount of the annuity shall be paid for | 8 |
| part of a month when the annuity
begins after the first day of | 9 |
| the month or ends before the last day of
the month.
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| Notwithstanding the above, all surviving spouse annuity | 11 |
| payments first payable on or after January 1, 2008, shall begin | 12 |
| the first of the month following the employee's or annuitant's | 13 |
| date of death.
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| Effective January 1, 2008, benefits are payable for the | 15 |
| full month if the annuitant was alive on the first day of the | 16 |
| month.
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| (Source: P.A. 87-794.)
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| (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
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| Sec. 13-309. Duty disability benefit.
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| (a) Any employee who becomes disabled, which disability is | 21 |
| the result of an
injury or illness compensable under the | 22 |
| Illinois Workers' Compensation Act or
the Illinois Workers' | 23 |
| Occupational Diseases Act, is entitled to a duty
disability | 24 |
| benefit during the period of disability for which the employee | 25 |
| does
not receive any part of salary, or any part of a |
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| retirement annuity under this
Article; except that in the case | 2 |
| of an employee who first enters service on or
after June 13, | 3 |
| 1997 and becomes disabled before the effective date of this | 4 |
| amendatory Act of the 94th General Assembly, a duty disability
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| benefit is not payable for the first 3 days of disability that | 6 |
| would otherwise
be payable under this Section if the disability | 7 |
| does not continue for at least
11 additional days. The changes | 8 |
| made to this Section by this amendatory Act of the 94th General | 9 |
| Assembly are prospective only and do not entitle an employee to | 10 |
| a duty disability benefit for the first 3 days of any | 11 |
| disability that occurred before that effective date and did not | 12 |
| continue for at least 11 additional days. This benefit shall be | 13 |
| 75% of salary at the date disability
begins. However, if the | 14 |
| disability in any measure resulted from any physical
defect or | 15 |
| disease which existed at the time such injury was sustained or | 16 |
| such
illness commenced, the duty disability benefit shall be | 17 |
| 50% of salary.
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| Unless the employer acknowledges that the disability is a | 19 |
| result of
injury or illness compensable under the Workers' | 20 |
| Compensation Act or the
Workers' Occupational Diseases Act, the | 21 |
| duty disability benefit shall
not be payable until the issue of | 22 |
| compensability under those Acts is finally
adjudicated. The | 23 |
| period of disability shall be as determined by the Illinois
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| Workers' Compensation Commission or acknowledged by the | 25 |
| employer.
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| An employee in service before June 13, 1997 shall also |
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| receive a child's disability
benefit during the period of | 2 |
| disability of $10 per month for each
unmarried natural or | 3 |
| adopted child of the employee under
18 years of age.
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| The first payment shall be made not later than one month | 5 |
| after the
benefit is granted, and subsequent payments shall be | 6 |
| made at least monthly.
The Board shall by rule prescribe for | 7 |
| the payment of such benefits on the
basis of the amount of | 8 |
| salary lost during the period of disability.
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| (b) The benefit shall be allowed only if the following | 10 |
| requirements are
met by the employee:
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| (1) Application is made to the Board within 90 days | 12 |
| from the date
disability begins;
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| (2) A medical report is submitted by at least one | 14 |
| licensed and
practicing physician as part of the employee's | 15 |
| application; and
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| (3) The employee is examined by at least one licensed | 17 |
| and practicing
physician appointed by the Board and found | 18 |
| to be in a disabled physical
condition, and shall be | 19 |
| re-examined at least annually thereafter during the
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| continuance of disability. The employee need not be | 21 |
| re-examined by a
licensed and practicing physician if the | 22 |
| attorney for the district
certifies in writing that the | 23 |
| employee is entitled to receive compensation
under the | 24 |
| Workers' Compensation Act or the Workers' Occupational | 25 |
| Diseases Act.
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| (c) The benefit shall terminate when:
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| (1) The employee returns to work or receives a | 2 |
| retirement annuity paid
wholly or in part under this | 3 |
| Article;
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| (2) The disability ceases;
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| (3) The employee attains age 65, but if the employee | 6 |
| becomes disabled at
age 60 or later, benefits may be | 7 |
| extended for a period of no
more than 5 years after
| 8 |
| disablement;
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| (4) The employee (i) refuses to submit to reasonable | 10 |
| examinations by
physicians or other health professionals | 11 |
| appointed by the Board, (ii) fails
or refuses to consent to | 12 |
| and sign an authorization allowing the Board to
receive | 13 |
| copies of or to examine the employee's medical and hospital | 14 |
| records,
or (iii) fails or refuses to provide complete | 15 |
| information regarding any other
employment for | 16 |
| compensation he or she has received since becoming | 17 |
| disabled;
or
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| (5) The employee willfully and continuously refuses to | 19 |
| follow medical advice and treatment to enable the employee | 20 |
| to return to
work. However this provision does not apply to | 21 |
| an employee who relies in good
faith on treatment by prayer | 22 |
| through spiritual means alone in accordance with
the tenets | 23 |
| and practice of a recognized church or religious | 24 |
| denomination, by a
duly accredited practitioner thereof.
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| In the case of a duty disability recipient who returns to | 26 |
| work, the employee
must make application to the Retirement |
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| Board within 2 years from the date the
employee last received | 2 |
| duty disability benefits in order to become again
entitled to | 3 |
| duty disability benefits based on the injury for which a duty
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| disability benefit was theretofore paid.
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| (Source: P.A. 93-721, eff. 1-1-05; 94-621, eff. 8-18-05.)
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| (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
| 7 |
| Sec. 13-502. Employee contributions; deductions from | 8 |
| salary.
| 9 |
| (a) Retirement annuity and child's annuity. There shall be | 10 |
| deducted
from each payment of salary an amount equal to 7%
7 | 11 |
| 1/2% of salary as the
employee's contribution for the | 12 |
| retirement annuity, including annual
increases therefore and
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| child's annuity , and 0.5% of salary as the employee's | 14 |
| contribution for annual increases to the retirement annuity .
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| (b) Surviving spouse's annuity. There shall be deducted | 16 |
| from each
payment of salary an amount equal to 1 1/2% of salary | 17 |
| as the employee's
contribution for the surviving spouse's | 18 |
| annuity and annual increases therefor.
| 19 |
| (c) Pickup of employee contributions. The Employer may pick | 20 |
| up employee
contributions required under subsections (a) and | 21 |
| (b) of this Section. If
contributions are picked up they shall | 22 |
| be treated as Employer contributions
in determining tax | 23 |
| treatment under the United States Internal Revenue Code,
and | 24 |
| shall not be included as gross income of the employee until | 25 |
| such time
as they are distributed. The Employer shall pay these |
|
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| 1 |
| employee
contributions from the same source of funds used in | 2 |
| paying salary to the
employee. The Employer may pick up these | 3 |
| contributions by a reduction in
the cash salary of the employee | 4 |
| or by an offset against a future salary
increase or by a | 5 |
| combination of a reduction in salary and offset against a
| 6 |
| future salary increase. If employee contributions are picked up | 7 |
| they shall be
treated for all purposes of this Article 13, | 8 |
| including Sections 13-503 and
13-601, in the same manner and to | 9 |
| the same extent as employee contributions
made prior to the | 10 |
| date picked up.
| 11 |
| (d) Subject to the requirements of federal law, the | 12 |
| Employer shall
pick up optional contributions that the employee | 13 |
| has elected to pay to the
Fund under Section 13-304.1, and the | 14 |
| contributions so picked up
shall be treated as employer | 15 |
| contributions for the purposes of determining
federal tax | 16 |
| treatment. The Employer shall pick up the contributions by a
| 17 |
| reduction in the cash salary of the employee and shall pay the | 18 |
| contributions
from the same fund that is used to pay earnings | 19 |
| to the employee. The Employer
shall, however, continue to | 20 |
| withhold federal and State income taxes based upon
| 21 |
| contributions made under Section 13-304.1 until the Internal | 22 |
| Revenue Service or
the federal courts rule that pursuant to | 23 |
| Section 414(h) of the U.S. Internal
Revenue Code of 1986, as | 24 |
| amended, these contributions shall not be included as
gross | 25 |
| income of the employee until such time as they are distributed | 26 |
| or made
available.
|
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| (e) Each employee is deemed to consent and agree to the | 2 |
| deductions from
compensation provided for in this Article.
| 3 |
| (f) Subject to the requirements of federal law, the | 4 |
| Employer shall pick up
contributions that a commissioner has | 5 |
| elected to pay to the Fund under Section
13-314, and the | 6 |
| contributions so picked up shall be treated as Employer
| 7 |
| contributions for the purposes of determining federal tax | 8 |
| treatment. The
Employer shall pick up the contributions by a | 9 |
| reduction in the cash salary of
the commissioner and shall pay | 10 |
| the contributions from the same fund as is
used to pay earnings | 11 |
| to the commissioner. The Employer shall, however,
continue to | 12 |
| withhold federal and State income taxes based upon | 13 |
| contributions
made under Section 13-314 until the U.S. Internal | 14 |
| Revenue Service or the
federal courts rule that pursuant to | 15 |
| Section 414(h) of the Internal Revenue
Code of 1986, as | 16 |
| amended, these contributions shall not be included as gross
| 17 |
| income of the employee until such time as they are distributed | 18 |
| or made
available.
| 19 |
| (Source: P.A. 94-621, eff. 8-18-05.)
| 20 |
| (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
| 21 |
| Sec. 13-601. Refunds.
| 22 |
| (a) Withdrawal from service. Upon withdrawal from service, | 23 |
| an employee
under age 55 (age 50 if the employee first entered | 24 |
| service before June
13, 1997), or an employee age 55 (age 50 if | 25 |
| the employee first entered
service before June 13, 1997) or |
|
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| over but less than 60 having less
than 20 years of service, or | 2 |
| an employee age 60 or over having less than 5
years of service | 3 |
| shall be entitled, upon application, to a refund of total
| 4 |
| contributions from salary deductions or amounts otherwise paid | 5 |
| under this
Article by the employee. The refund shall not | 6 |
| include interest credited to
the contributions. The Board may, | 7 |
| in its discretion, withhold payment of a
refund for a period | 8 |
| not to exceed one year from the date of filing an
application | 9 |
| for refund.
| 10 |
| (b) Surviving spouse's annuity contributions. A refund of | 11 |
| all amounts
deducted from salary or otherwise contributed by an | 12 |
| employee for the
surviving spouse's annuity shall be paid upon | 13 |
| retirement to any employee
who on the date of retirement is | 14 |
| either not married or is married but whose
spouse is not | 15 |
| eligible for a surviving spouse's annuity paid wholly or in
| 16 |
| part under this Article. The refund shall include interest on
| 17 |
| each contribution at the rate of 3% per annum compounded | 18 |
| annually from the
date of the contribution to the date of the | 19 |
| refund.
| 20 |
| (c) Payment of Refunds After Death. Whenever any refund is | 21 |
| payable after the death of the annuitant as provided for in | 22 |
| this Article, the refund shall be paid as follows: to the | 23 |
| employee's surviving spouse, but if there is no surviving | 24 |
| spouse then in accordance with the employee's written | 25 |
| designation of beneficiary filed with the Board on the | 26 |
| prescribed form before the employee's death. If there is no |
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| such designation of beneficiary, then to the employee's | 2 |
| surviving children in equal parts to each. If there are no such | 3 |
| children, the refund shall be paid to the heirs of the employee | 4 |
| according to the law of descent and distribution of the State | 5 |
| of Illinois.
When paid to children, estate or beneficiary. | 6 |
| Whenever the total
accumulations, to the account of an employee | 7 |
| from employee contributions,
including interest to the | 8 |
| employee's date of withdrawal, have not been paid to the | 9 |
| employee and surviving spouse
as a retirement or spouse's | 10 |
| annuity before the death of the survivor of the
employee and | 11 |
| spouse, a refund shall be paid as follows: an amount equal to
| 12 |
| the excess of such amounts over the amounts paid on such | 13 |
| annuities without
interest on either such amount, shall be paid | 14 |
| to the children of the
employee, in equal parts to each, unless | 15 |
| the employee has directed in
writing, signed by him before an | 16 |
| officer authorized to administer oaths,
and filed with the | 17 |
| Board before the employee's death, that any such amount
shall | 18 |
| be refunded and paid to any one or more of such children; and | 19 |
| if
there are not children, such other beneficiary or | 20 |
| beneficiaries as might be
designated by the employee. If there | 21 |
| are no such children or designation
of beneficiary, the refund | 22 |
| shall be paid to the personal representative of
the employee's | 23 |
| estate.
| 24 |
| If a personal representative of the estate has not been | 25 |
| appointed within
90 days from the date on which a refund became | 26 |
| payable, the refund may be
applied, in the discretion of the |
|
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| Board, toward the payment of the
employee's or the surviving | 2 |
| spouse's burial expenses. Any remaining
balance shall be paid | 3 |
| to the heirs of the employee according to the law of
descent | 4 |
| and distribution of the State of Illinois.
| 5 |
| Whenever the total accumulations to the account of an | 6 |
| employee from employee contributions other than the | 7 |
| contribution for the cost of living increase, including | 8 |
| interest to the employee's date of withdrawal, have not been | 9 |
| paid to the employee and surviving spouse as a retirement or | 10 |
| spouse's annuity before the death of the employee and spouse, a | 11 |
| refund shall be paid as follows: an amount equal to the excess | 12 |
| of such amounts over the amounts paid on such annuities without | 13 |
| interest on either such amount.
| 14 |
| If a reversionary annuity becomes payable under Section | 15 |
| 13-303, the
refund provided in this section shall not be paid | 16 |
| until the death of the
reversionary annuitant and the refund | 17 |
| otherwise payable under this section
shall be then further | 18 |
| reduced by the amount of the reversionary annuity paid.
| 19 |
| (d) In lieu of annuity. Notwithstanding the provisions set | 20 |
| forth in
subsection (a) of this section, whenever an employee's | 21 |
| or surviving
spouse's annuity will be less than $200 per month, | 22 |
| the employee or
surviving spouse, as the case may be, may elect | 23 |
| to receive a refund of
accumulated employee contributions; | 24 |
| provided, however, that if the election
is made by a surviving | 25 |
| spouse the refund shall be reduced by any amounts
theretofore | 26 |
| paid to the employee in the form of an annuity.
|
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| (e) Forfeiture of rights. An employee or surviving spouse | 2 |
| who receives
a refund forfeits the right to receive an annuity | 3 |
| or any other benefit
payable under this Article except that if | 4 |
| the refund is to a surviving
spouse, any child or children of | 5 |
| the employee shall not be deprived of the
right to receive a | 6 |
| child's annuity as provided in Section 13-308 of this
Article, | 7 |
| and the payment of a child's annuity shall not reduce the | 8 |
| amount
refundable to the surviving spouse.
| 9 |
| (Source: P.A. 94-621, eff. 8-18-05.)
| 10 |
| (40 ILCS 5/13-706) (from Ch. 108 1/2, par. 13-706)
| 11 |
| Sec. 13-706. Board powers and duties. The Board shall have | 12 |
| the powers and
duties set forth in this Section, in addition to | 13 |
| such other powers and
duties as may be provided in this Article | 14 |
| and in this Code:
| 15 |
| (a) To supervise collections. To see that all amounts | 16 |
| specified in this
Article to be applied to the Fund, from | 17 |
| any source, are collected and applied.
| 18 |
| (b) To notify of deductions. To notify the Clerk of the | 19 |
| Water
Reclamation District of the deductions to be made | 20 |
| from the salaries of
employees.
| 21 |
| (c) To accept gifts. To accept by gift, grant, bequest | 22 |
| or otherwise any
money or property of any kind and use the | 23 |
| same for the purposes of the Fund.
| 24 |
| (d) To invest the reserves. To invest the reserves of | 25 |
| the Fund in
accordance with the provisions set forth in |
|
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LRB095 10855 AMC 31125 b |
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| 1 |
| Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and | 2 |
| 1-115 of this Code. Investment made in Section 1-113 of | 3 |
| Article 1 of
this Code shall be deemed prudent . The Board | 4 |
| is also authorized to transfer securities to the
Illinois | 5 |
| State Board of Investment for the purpose of participation | 6 |
| in any
commingled investment fund as provided in Article | 7 |
| 22A of this Code.
| 8 |
| (e) To authorize payments. To consider and pass upon | 9 |
| all applications
for annuities and benefits; to authorize | 10 |
| or suspend the payment of any
annuity or benefit; to | 11 |
| inquire into the validity and legality of any grant
of | 12 |
| annuity or benefit paid from or payable out of the Fund; to | 13 |
| increase,
reduce, or suspend any such annuity or benefit | 14 |
| whenever the annuity or
benefit, or any part thereof, was | 15 |
| secured or granted, or the amount thereof
fixed, as the | 16 |
| result of misrepresentation, fraud, or error. No such
| 17 |
| annuity or benefit shall be permanently reduced or | 18 |
| suspended until the
affected annuitant or beneficiary is | 19 |
| first notified of the proposed action
and given an | 20 |
| opportunity to be heard. No trustee of the Board shall vote
| 21 |
| upon that trustee's own personal claim for annuity, benefit | 22 |
| or refund, or
participate in the deliberations of the Board | 23 |
| as to the validity of any
such claim. The Board shall have | 24 |
| exclusive original jurisdiction in all
matters of claims | 25 |
| for annuities, benefits and refunds.
| 26 |
| (f) To submit an annual report. To submit a report in |
|
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| July of each year
to the Board of Commissioners of the | 2 |
| Water Reclamation District as of the
close of business on | 3 |
| December 31st of the preceding year. The report shall
| 4 |
| include the following:
| 5 |
| (1) A balance sheet, showing the financial and | 6 |
| actuarial condition of
the Fund as of the end of the | 7 |
| calendar year;
| 8 |
| (2) A statement of receipts and disbursements | 9 |
| during such year;
| 10 |
| (3) A statement showing changes in the asset, | 11 |
| liability, reserve and
surplus accounts during such | 12 |
| year;
| 13 |
| (4) A detailed statement of investments as of the | 14 |
| end of the year; and
| 15 |
| (5) Any additional information as is deemed | 16 |
| necessary for proper
interpretation of the condition | 17 |
| of the Fund.
| 18 |
| (g) To subpoena witnesses. To compel witnesses to | 19 |
| attend and testify
before it upon any matter concerning the | 20 |
| Fund and allow witness fees not in
excess of $6 for | 21 |
| attendance upon any one day. The President and other
| 22 |
| members of the Board may administer oaths to witnesses.
| 23 |
| (h) To appoint employees and consultants. To appoint | 24 |
| such actuarial,
medical, legal, investigational, clerical | 25 |
| or financial employees and
consultants as are necessary, | 26 |
| and fix their compensation.
|
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| 1 |
| (i) To make rules. To make rules and regulations | 2 |
| necessary for the
administration of the affairs of the | 3 |
| Fund.
| 4 |
| (j) To waive guardianship. To waive the requirement of | 5 |
| legal
guardianship of any minor unmarried beneficiary of | 6 |
| the Fund living with a
parent or grandparent, and legal | 7 |
| guardianship of any beneficiary under
legal disability | 8 |
| whose husband, wife, or parent is managing such
| 9 |
| beneficiary's affairs, whenever the Board deems such | 10 |
| waiver to be in the
best interest of the beneficiary.
| 11 |
| (k) To collect amounts due. To collect any amounts due | 12 |
| to the Fund from
any participant or beneficiary prior to | 13 |
| payment of any annuity, benefit or
refund.
| 14 |
| (l) To invoke rule of offset. To offset against any | 15 |
| amount payable to
an employee or to any other person such | 16 |
| sums as may be due to the Fund
or may have been paid by the | 17 |
| Fund due to misrepresentation, fraud or error.
| 18 |
| (m) To assess and collect interest on amounts due to | 19 |
| the Fund using the annual rate as shall from time to time | 20 |
| be determined by the Board, compounded annually from the | 21 |
| date of notification to the date of payment.
| 22 |
| (Source: P.A. 94-621, eff. 8-18-05.)
| 23 |
| Section 90. The State Mandates Act is amended by adding | 24 |
| Section 8.31 as follows: |
|
|
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LRB095 10855 AMC 31125 b |
|
| 1 |
| (30 ILCS 805/8.31 new) | 2 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 3 |
| of this Act, no reimbursement by the State is required for the | 4 |
| implementation of any mandate created by this amendatory Act of | 5 |
| the 95th General Assembly.
| 6 |
| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
|
|
|
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| 1 |
|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 40 ILCS 5/1-113 |
from Ch. 108 1/2, par. 1-113 |
| 4 |
| 40 ILCS 5/13-215 |
from Ch. 108 1/2, par. 13-215 |
| 5 |
| 40 ILCS 5/13-216 |
from Ch. 108 1/2, par. 13-216 |
| 6 |
| 40 ILCS 5/13-309 |
from Ch. 108 1/2, par. 13-309 |
| 7 |
| 40 ILCS 5/13-502 |
from Ch. 108 1/2, par. 13-502 |
| 8 |
| 40 ILCS 5/13-601 |
from Ch. 108 1/2, par. 13-601 |
| 9 |
| 40 ILCS 5/13-706 |
from Ch. 108 1/2, par. 13-706 |
| 10 |
| 30 ILCS 805/8.31 new |
|
| |
|