Full Text of HB1699 95th General Assembly
HB1699 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1699
Introduced 2/22/2007, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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Amends the Cook County Article of the Illinois Pension Code. Provides that the annual annuity increase for a person first employed under the Article on or after the effective date shall be at a rate of 3% of the
original fixed annuity (instead of 3% of the current amount of the
annuity). Provides that the widow's annuity for widow of a person first employed under the Article on or after the effective date shall be subject to an annual increase at a rate of 3% of the
original fixed annuity (instead of 3% of the amount
of the widow's annuity payable at the time of the increase). Provides that the county board shall levy a tax annually upon all taxable property in the city at
a rate that will produce a sum that will be sufficient to bring the total assets of the County Employees' and Officers' Annuity and Benefit Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2016 (instead of a sum that will be sufficient for the requirements of the Article, with a maximum provided). Amends the State Mandates Act to require implementation without reimbursement.
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FISCAL NOTE ACT MAY APPLY |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
| STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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A BILL FOR
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HB1699 |
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LRB095 10136 AMC 30350 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 9-133, 9-146.2, and 9-169 as follows:
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| (40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
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| Sec. 9-133. Automatic increase in annuity.
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| (a) An employee who retired or retires from service after | 9 |
| December 31, 1959,
having attained age 60 or more or, beginning | 10 |
| January 1, 1991, having attained
30 or more years of creditable | 11 |
| service, shall, in the month of January of the
year following | 12 |
| the year in which the first anniversary of retirement occurs,
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| have his then fixed and payable monthly annuity increased by 1 | 14 |
| 1/2%, and such
first fixed annuity as granted at retirement | 15 |
| increased by a further 1 1/2% in
January of each year | 16 |
| thereafter. Beginning with January of the year 1972, such
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| increases shall be at the rate of 2% in lieu of the aforesaid | 18 |
| specified 1 1/2%.
Beginning with January of the year 1982, such | 19 |
| increases shall be at the rate
of 3% in lieu of the aforesaid | 20 |
| specified 2%. Beginning January 1, 1998,
these increases shall | 21 |
| be at the rate of 3% of the current amount of the
annuity, | 22 |
| including any previous increases received under this Article,
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| without regard to whether the annuitant is in service on or |
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LRB095 10136 AMC 30350 b |
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| after the
effective date of this amendatory Act of 1997.
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| An employee who retires on
annuity before age 60 and, | 3 |
| beginning January 1, 1991, with less than 30 years
of | 4 |
| creditable service shall receive such increases beginning with | 5 |
| January of
the year immediately following the year in which he | 6 |
| attains the age of 60
years. An employee who retires on annuity | 7 |
| before age 60 and before January 1,
1991, with at least 30 | 8 |
| years of creditable service, shall be entitled to
receive the | 9 |
| first increase under this subsection no later than January 1, | 10 |
| 1993.
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| For an employee who, in accordance with the provisions of | 12 |
| Section
9-108.1 of this Act, shall have become a member of the | 13 |
| State System
established under Article 14 on February 1, 1974, | 14 |
| the first such
automatic increase shall begin in January of | 15 |
| 1975.
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| (a-5) Notwithstanding the provisions of subsection (a), | 17 |
| the annual annuity increase under this Section for a person | 18 |
| first employed under this Article on or after the effective | 19 |
| date of this amendatory Act of the 95th General Assembly shall | 20 |
| be at a rate of 3% of the
original fixed annuity.
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| (b) Subsection (a) is not applicable to an employee | 22 |
| retiring and receiving a
term annuity, as defined in this Act, | 23 |
| nor to any otherwise qualified employee
who retires before he | 24 |
| makes employee contributions (at the 1/2 of 1% rate as
provided | 25 |
| in this Section) for this additional annuity for not less than | 26 |
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equivalent of one full year. Such employee, however, shall |
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LRB095 10136 AMC 30350 b |
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| make arrangement to
pay to the fund a balance of such | 2 |
| contributions, based on his final salary, as
will bring such | 3 |
| 1/2 of 1% contributions, computed without interest, to the
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| equivalent of one year's contributions.
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| Beginning with the month of January, 1960, each employee | 6 |
| shall
contribute by means of salary deductions 1/2 of 1% of | 7 |
| each salary
payment, concurrently with and in addition to the | 8 |
| employee contributions
otherwise provided for annuity | 9 |
| purposes.
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| Each such additional contribution shall be credited to an | 11 |
| account in
the prior service annuity reserve, to be used, | 12 |
| together with county
contributions, to defray the cost of the | 13 |
| specified annuity increments.
Any balance in such account as of | 14 |
| the beginning of each calendar year
shall be credited with | 15 |
| interest at the rate of 3% per annum.
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| Such additional employee contributions are not refundable, | 17 |
| except to
an employee who withdraws and applies for refund | 18 |
| under this Article, or
applies for annuity, and also in cases | 19 |
| where a term annuity becomes
payable. In such cases his | 20 |
| contributions shall be refunded, without
interest, and charged | 21 |
| to the prior service annuity reserve.
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| (Source: P.A. 90-32, eff. 6-27-97.)
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| (40 ILCS 5/9-146.2)
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| Sec. 9-146.2. Automatic annual increase in widow's | 25 |
| annuity.
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| (a) Every widow's annuity, other than a term annuity, shall | 2 |
| be increased
on January 1, 1998 or the January 1 occurring on | 3 |
| or immediately after the first
anniversary of the deceased | 4 |
| employee's death, whichever occurs later, by an
amount equal to | 5 |
| 3% of the amount of the annuity.
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| On each January 1 after the date of the initial increase | 7 |
| under this Section,
the widow's annuity shall be increased by | 8 |
| an amount equal to 3% of the amount
of the widow's annuity | 9 |
| payable at the time of the increase, including any
increases | 10 |
| previously granted under this Article.
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| (a-5) Notwithstanding the provisions of subsection (a), | 12 |
| the widow's annuity for widow of a person first employed under | 13 |
| this Article on or after the effective date of this amendatory | 14 |
| Act of the 95th General Assembly shall be subject to an annual | 15 |
| increase at a rate of 3% of the
original fixed annuity.
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| (b) Limitations on the maximum amount of widow's annuity | 17 |
| imposed under
Section 9-150 do not apply to the annual | 18 |
| increases provided under this Section.
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| (c) The increases provided under this Section also apply to | 20 |
| compensation
annuities and supplemental annuities payable | 21 |
| under Section 9-147. The
increases provided under this Section | 22 |
| do not apply to term annuities.
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| (Source: P.A. 90-32, eff. 6-27-97.)
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| (40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
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| Sec. 9-169. Financing - Tax levy. (a) The county board |
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| shall levy a
tax annually upon all taxable property in the | 2 |
| county at the rate that
will produce a sum which, when added to | 3 |
| the amounts deducted from the salaries
of the employees or | 4 |
| otherwise contributed by them is sufficient
to bring the total | 5 |
| assets of the Fund up to 90% of the total actuarial liabilities | 6 |
| of the Fund by the end of fiscal year 2016.
for the | 7 |
| requirements of this Article.
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| For the years before 1962 the tax rate shall be as provided | 9 |
| in "The
1925 Act". For the years 1962 and 1963 the tax rate | 10 |
| shall be not more
than .0200 per cent; for the years 1964 and | 11 |
| 1965 the tax rate shall be
not more than .0202 per cent; for | 12 |
| the years 1966 and 1967 the tax rate
shall be not more than | 13 |
| .0207 per cent; for the year 1968 the tax rate
shall be not | 14 |
| more than .0220 per cent; for the year 1969 the tax rate
shall | 15 |
| be not more than .0233 per cent; for the year 1970 the tax rate
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| shall be not more than .0255 per cent; for the year 1971 the | 17 |
| tax rate
shall be not more than .0268 per cent of the value, as | 18 |
| equalized or
assessed by the Department of Revenue upon all | 19 |
| taxable
property in the county. Beginning with the year 1972 | 20 |
| and for each year
thereafter the county shall levy a tax | 21 |
| annually at a rate on the dollar
of the value, as equalized or | 22 |
| assessed by the Department of Revenue
of all taxable property | 23 |
| within the county that will
produce, when extended, not to | 24 |
| exceed an amount equal to the total
amount of contributions | 25 |
| made by the employees to the
fund in the calendar year 2 years | 26 |
| prior to the year for which the annual
applicable tax is levied |
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LRB095 10136 AMC 30350 b |
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| multiplied by .8 for the years 1972 through
1976; by .8 for the | 2 |
| year 1977; by .87 for the year 1978; by .94 for the
year 1979; | 3 |
| by 1.02 for the year 1980 and by 1.10 for the year 1981 and
by | 4 |
| 1.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54 | 5 |
| for
the year 1984 and for each year thereafter.
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| This tax shall be levied and collected in like manner with | 7 |
| the
general taxes of the county, and shall be in addition to | 8 |
| all other taxes
which the county is authorized to levy upon the | 9 |
| aggregate valuation of
all taxable property within the county | 10 |
| and shall be exclusive of and in
addition to the amount of tax | 11 |
| the county is authorized to levy for
general purposes under any | 12 |
| laws which may limit the amount of tax which
the county may | 13 |
| levy for general purposes. The county clerk, in reducing
tax | 14 |
| levies under any Act concerning the levy and extension of | 15 |
| taxes,
shall not consider this tax as a part of the general tax | 16 |
| levy for county
purposes, and shall not include it within any | 17 |
| limitation of the per cent
of the assessed valuation upon which | 18 |
| taxes are required to be extended
for the county. It is lawful | 19 |
| to extend this tax in addition to the
general county rate fixed | 20 |
| by statute, without being authorized as
additional by a vote of | 21 |
| the people of the county.
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| Revenues derived from this tax shall be paid to the | 23 |
| treasurer of the
county and held by him for the benefit of the | 24 |
| fund.
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| If the payments on account of taxes are insufficient during | 26 |
| any year
to meet the requirements of this Article, the county |
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| may issue tax
anticipation warrants against the current tax | 2 |
| levy.
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| (b) By January 10, annually, the board shall notify the | 4 |
| county board
of the requirement of this Article that this tax | 5 |
| shall be levied. The
board shall compute the amounts necessary | 6 |
| for the purposes of the fund
for that current year to be | 7 |
| credited to the reserves established and
maintained as provided | 8 |
| in this Act, shall make an annual determination
of the required | 9 |
| county contributions, and shall certify the results
thereof to | 10 |
| the county board.
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| (c) The various sums to be contributed by the county board | 12 |
| and
allocated for the purposes of this Article and any interest | 13 |
| to be
contributed by the county shall be taken from the revenue | 14 |
| derived from
this tax and no money of the county derived from | 15 |
| any source other than
the levy and collection of this tax or | 16 |
| the sale of tax anticipation
warrants, except state or federal | 17 |
| funds contributed for annuity and
benefit purposes for | 18 |
| employees of a county department of public aid
under "The | 19 |
| Illinois Public Aid Code", approved April 11, 1967, as now or
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| hereafter amended, may be used to provide revenue for the fund.
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| If it is not possible or practicable for the county to make
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| contributions for age and service annuity and widow's annuity
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| concurrently with the employee contributions made for such | 24 |
| purposes,
such county shall make such contributions as soon as | 25 |
| possible and
practicable thereafter with interest thereon at | 26 |
| the effective rate until
the time it shall be made.
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LRB095 10136 AMC 30350 b |
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| (d) With respect to employees whose wages are funded as | 2 |
| participants
under the Comprehensive Employment and Training | 3 |
| Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 4 |
| 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 5 |
| subsequent to October 1, 1978, and in instances
where the board | 6 |
| has elected to establish a manpower program reserve, the
board | 7 |
| shall compute the amounts necessary to be credited to the | 8 |
| manpower
program reserves established and maintained as herein | 9 |
| provided, and
shall make a periodic determination of the amount | 10 |
| of required
contributions from the County to the reserve to be | 11 |
| reimbursed by the
federal government in accordance with rules | 12 |
| and regulations established
by the Secretary of the United | 13 |
| States Department of Labor or his
designee, and certify the | 14 |
| results thereof to the County Board. Any such
amounts shall | 15 |
| become a credit to the County and will be used to reduce
the | 16 |
| amount which the County would otherwise contribute during | 17 |
| succeeding
years for all employees.
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| (e) In lieu of establishing a manpower program reserve with | 19 |
| respect
to employees whose wages are funded as participants | 20 |
| under the
Comprehensive Employment and Training Act of 1973, as | 21 |
| authorized by
subsection (d), the board may elect to establish | 22 |
| a special County
contribution rate for all such employees. If | 23 |
| this option is elected, the
County shall contribute to the Fund | 24 |
| from federal funds provided under
the Comprehensive Employment | 25 |
| and Training Act program at the special
rate so established and | 26 |
| such contributions shall become a credit to the
County and be |
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| used to reduce the amount which the County would otherwise
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| contribute during succeeding years for all employees.
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| (Source: P.A. 83-1362.)
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| Section 90. The State Mandates Act is amended by adding | 5 |
| Section 8.31 as follows: | 6 |
| (30 ILCS 805/8.31 new) | 7 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 8 |
| of this Act, no reimbursement by the State is required for the | 9 |
| implementation of any mandate created by this amendatory Act of | 10 |
| the 95th General Assembly.
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INDEX
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Statutes amended in order of appearance
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| 40 ILCS 5/9-133 |
from Ch. 108 1/2, par. 9-133 |
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| 40 ILCS 5/9-146.2 |
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| 40 ILCS 5/9-169 |
from Ch. 108 1/2, par. 9-169 |
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| 30 ILCS 805/8.31 new |
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