Full Text of SB0039 96th General Assembly
SB0039ham004 96TH GENERAL ASSEMBLY
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Rep. Michael K. Smith
Filed: 5/26/2009
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| AMENDMENT TO SENATE BILL 39
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| AMENDMENT NO. ______. Amend Senate Bill 39, AS AMENDED, | 3 |
| with reference to page and line numbers of House Amendment No. | 4 |
| 3, on page 1, line 6, by replacing "2-121" with "2-121, 3-109, | 5 |
| 7-141.1,"; and | 6 |
| on page 4, immediately below line 10, by inserting the | 7 |
| following:
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| "(40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
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| Sec. 3-109. Persons excluded.
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| (a) The following persons shall not be eligible to | 11 |
| participate in a fund
created under this Article:
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| (1) part-time police officers, special police | 13 |
| officers, night watchmen,
temporary employees, traffic | 14 |
| guards or so-called auxiliary police officers
specially | 15 |
| appointed to aid or direct traffic at or near schools or | 16 |
| public
functions, or to aid in civil defense, municipal |
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| parking lot attendants,
clerks or other civilian employees | 2 |
| of a police department who perform
clerical duties | 3 |
| exclusively;
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| (2) any police officer who fails to pay the | 5 |
| contributions required
under Section 3-125.1, computed (i) | 6 |
| for funds established prior to August
5, 1963, from the | 7 |
| date the municipality established the fund or the date of
a | 8 |
| police officer's first appointment (including an | 9 |
| appointment on probation),
whichever is later, or (ii) for | 10 |
| funds established after August 5, 1963,
from the date, as | 11 |
| determined from the statistics or census provided in
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| Section 3-103, the municipality became subject to this | 13 |
| Article by attaining
the minimum population or by | 14 |
| referendum, or the date of a police officer's
first | 15 |
| appointment (including an appointment on probation), | 16 |
| whichever is
later, and continuing during his or her entire | 17 |
| service as a police officer; and
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| (3) any person who has elected under Section 3-109.1 to | 19 |
| participate in
the Illinois Municipal Retirement Fund | 20 |
| rather than in a fund established
under this Article, | 21 |
| without regard to whether the person continues to be
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| employed as chief of police or is employed in some other | 23 |
| rank or capacity
within the police department, unless the | 24 |
| person has lawfully rescinded that
election.
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| (b) A police officer who is reappointed shall, before being | 26 |
| declared
eligible to participate in the pension fund, repay to |
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| the fund as required
by Section 3-124 any refund received | 2 |
| thereunder.
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| (c) Any person otherwise qualified to participate who was
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| excluded from participation by reason of the age restriction | 5 |
| removed by
Public Act 79-1165 may elect to participate by | 6 |
| making a written application
to the Board before January 1, | 7 |
| 1990. Persons so electing shall begin
participation on the | 8 |
| first day of the month following the date of
application. Such | 9 |
| persons may also elect to establish creditable service
for | 10 |
| periods of employment as a police officer during which they did | 11 |
| not
participate by paying into the police pension fund, before | 12 |
| January 1, 1990,
the amount that the person would have | 13 |
| contributed had deductions from
salary been made for such | 14 |
| purpose at the time such service was rendered,
together with | 15 |
| interest thereon at 6% per annum from the time such service
was | 16 |
| rendered until the date the payment is made.
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| (d) A person otherwise qualified to participate who was | 18 |
| excluded from
participation by reason of the fitness | 19 |
| requirement removed by this amendatory
Act of 1995 may elect to | 20 |
| participate by making a written application to the
Board before | 21 |
| July 1, 1996. Persons so electing shall begin participation on
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| the first day of the month following the month in which the | 23 |
| application is
received by the Board. These persons may also | 24 |
| elect to establish creditable
service for periods of employment | 25 |
| as a police officer during which they did not
participate by | 26 |
| paying into the police pension fund, before January 1, 1997, |
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| the
amount that the person would have contributed had | 2 |
| deductions from salary been
made for this purpose at the time | 3 |
| the service was rendered, together with
interest thereon at 6% | 4 |
| per annum, compounded annually, from the time the
service was | 5 |
| rendered until the date of payment.
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| (e) A person employed by the Village of Shiloh who is | 7 |
| otherwise qualified to participate and was excluded from
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| participation by reason of his or her failure to make written | 9 |
| application to the Board within 3 months after receiving his or | 10 |
| her first appointment or reappointment as required under | 11 |
| Section 3-106 may elect to participate by making a written | 12 |
| application to the
Board before July 1, 2008. Persons so | 13 |
| electing shall begin participation on
the first day of the | 14 |
| month following the month in which the application is
received | 15 |
| by the Board. These persons may also elect to establish | 16 |
| creditable
service for periods of employment as a police | 17 |
| officer during which they did not
participate by paying into | 18 |
| the police pension fund, before January 1, 2009, the
amount | 19 |
| that the person would have contributed had deductions from | 20 |
| salary been
made for this purpose at the time the service was | 21 |
| rendered, together with
interest thereon at 6% per annum, | 22 |
| compounded annually, from the time the
service was rendered | 23 |
| until the date of payment. The Village of Shiloh must pay to | 24 |
| the System the corresponding employer contributions, plus | 25 |
| interest.
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| (f) A person who has entered into a personal services |
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| contract to perform police duties for the Village of | 2 |
| Bartonville on or before the effective date of this amendatory | 3 |
| Act of the 96th General Assembly may be appointed as an officer | 4 |
| in the Village of Bartonville within 6 months after the | 5 |
| effective date of this amendatory Act, but shall be excluded | 6 |
| from participating under this Article. | 7 |
| (Source: P.A. 95-483, eff. 8-28-07.)
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| (40 ILCS 5/7-141.1)
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| Sec. 7-141.1. Early retirement incentive.
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| (a) The General Assembly finds and declares that:
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| (1) Units of local government across the State have | 12 |
| been functioning
under a financial crisis.
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| (2) This financial crisis is expected to continue.
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| (3) Units of local government must depend on additional | 15 |
| sources of
revenue and, when those sources are not | 16 |
| forthcoming, must establish
cost-saving programs.
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| (4) An early retirement incentive designed | 18 |
| specifically to target
highly-paid senior employees could | 19 |
| result in significant annual cost
savings.
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| (5) The early retirement incentive should be made | 21 |
| available only to
those units of local government that | 22 |
| determine that an early retirement
incentive is in their | 23 |
| best interest.
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| (6) A unit of local government adopting a program of | 25 |
| early retirement
incentives under this Section is |
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| encouraged to implement personnel procedures
to prohibit, | 2 |
| for at least 5 years, the rehiring (whether on payroll or | 3 |
| by
independent contract) of employees who receive early | 4 |
| retirement incentives.
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| (7) A unit of local government adopting a program of | 6 |
| early retirement
incentives under this Section is also | 7 |
| encouraged to replace as few of the
participating employees | 8 |
| as possible and to hire replacement employees for
salaries | 9 |
| totaling no more than 80% of the total salaries formerly | 10 |
| paid to the
employees who participate in the early | 11 |
| retirement program.
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| It is the primary purpose of this Section to encourage | 13 |
| units of local
government that can realize true cost savings, | 14 |
| or have determined that an early
retirement program is in their | 15 |
| best interest, to implement an early retirement
program.
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| (b) Until the effective date of this amendatory Act of | 17 |
| 1997, this
Section does not apply to any employer that is a | 18 |
| city, village, or incorporated
town, nor to the employees of | 19 |
| any such employer. Beginning on the effective
date of this | 20 |
| amendatory Act of 1997, any employer under this Article, | 21 |
| including
an employer that is a city, village, or incorporated | 22 |
| town, may establish an
early retirement incentive program for | 23 |
| its employees under this Section. The
decision of a city, | 24 |
| village, or incorporated town to consider or establish an
early | 25 |
| retirement program is at the sole discretion of that city, | 26 |
| village, or
incorporated town, and nothing in this amendatory |
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| Act of 1997 limits or
otherwise diminishes this discretion. | 2 |
| Nothing contained in this Section shall
be construed to require | 3 |
| a city, village, or incorporated town to establish an
early | 4 |
| retirement program and no city, village, or incorporated town | 5 |
| may be
compelled to implement such a program.
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| The benefits provided in this Section are available only to | 7 |
| members
employed by a participating employer that has filed | 8 |
| with the Board of the
Fund a resolution or ordinance expressly | 9 |
| providing for the creation of an
early retirement incentive | 10 |
| program under this Section for its employees and
specifying the | 11 |
| effective date of the early retirement incentive program.
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| Subject to the limitation in subsection (h), an employer may | 13 |
| adopt a resolution
or ordinance providing a program of early | 14 |
| retirement incentives under this
Section at any time.
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| The resolution or ordinance shall be in substantially the | 16 |
| following form:
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| RESOLUTION (ORDINANCE) NO. ....
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| A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
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| RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
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| IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
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| WHEREAS, Section 7-141.1 of the Illinois Pension Code | 22 |
| provides that a
participating employer may elect to adopt an | 23 |
| early retirement
incentive program offered by the Illinois | 24 |
| Municipal Retirement Fund by
adopting a resolution or | 25 |
| ordinance; and
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| WHEREAS, The goal of adopting an early retirement program | 2 |
| is
to realize a substantial savings in personnel costs by | 3 |
| offering early
retirement incentives to employees who have | 4 |
| accumulated many years of
service credit; and
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| WHEREAS, Implementation of the early retirement program | 6 |
| will provide a
budgeting tool to aid in controlling payroll | 7 |
| costs; and
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| WHEREAS, The (name of governing body) has determined that | 9 |
| the adoption of an
early retirement incentive program is in the | 10 |
| best interests of the (name of
participating employer); | 11 |
| therefore be it
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| RESOLVED (ORDAINED) by the (name of governing body) of | 13 |
| (name of
participating employer) that:
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| (1) The (name of participating employer) does hereby adopt | 15 |
| the Illinois
Municipal Retirement Fund early retirement | 16 |
| incentive program as provided in
Section 7-141.1 of the | 17 |
| Illinois Pension Code. The early retirement incentive
program | 18 |
| shall take effect on (date).
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| (2) In order to help achieve a true cost savings, a person | 20 |
| who retires under
the early retirement incentive program shall | 21 |
| lose those incentives if he or she
later accepts employment | 22 |
| with any IMRF employer in a position for which
participation in | 23 |
| IMRF is required or is elected by the employee.
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| (3) In order to utilize an early retirement incentive as a | 25 |
| budgeting
tool, the (name of participating employer) will use | 26 |
| its best efforts either
to limit the number of employees who |
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| replace the employees who retire under
the early retirement | 2 |
| program or to limit the salaries paid to the employees who
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| replace the employees who retire under the early retirement | 4 |
| program.
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| (4) The effective date of each employee's retirement under | 6 |
| this early
retirement program shall be set by (name of | 7 |
| employer) and shall be no
earlier than the effective date of | 8 |
| the program and no later than one year after
that effective | 9 |
| date; except that the employee may require that the retirement
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| date set by the employer be no later than the June 30 next | 11 |
| occurring after the
effective date of the program and no | 12 |
| earlier than the date upon which the
employee qualifies for | 13 |
| retirement.
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| (5) To be eligible for the early retirement incentive under | 15 |
| this Section,
the employee must have attained age 50 and have | 16 |
| at least 20 years of creditable
service by his or her | 17 |
| retirement date.
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| (6) The (clerk or secretary) shall promptly file a | 19 |
| certified copy of
this resolution (ordinance) with the Board of | 20 |
| Trustees of the Illinois
Municipal Retirement Fund.
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| CERTIFICATION
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| I, (name), the (clerk or secretary) of the (name of | 23 |
| participating
employer) of the County of (name), State of | 24 |
| Illinois, do hereby certify
that I am the keeper of the books | 25 |
| and records of the (name of employer)
and that the foregoing is | 26 |
| a true and correct copy of a resolution
(ordinance) duly |
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| adopted by the (governing body) at a meeting duly convened
and | 2 |
| held on (date).
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| SEAL
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| (Signature of clerk or secretary)
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| (c) To be eligible for the benefits provided under an early | 6 |
| retirement
incentive program adopted under this Section, a | 7 |
| member must:
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| (1) be a participating employee of this Fund who, on | 9 |
| the effective date of
the program, (i) is in active payroll | 10 |
| status as an employee of a participating
employer that has | 11 |
| filed the required ordinance or resolution with the Board,
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| (ii) is on layoff status from such a position with a right | 13 |
| of re-employment or
recall to service, (iii) is on a leave | 14 |
| of absence from such a position, or (iv)
is on disability | 15 |
| but has not been receiving benefits under Section 7-146 or
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| 7-150 for a period of more than 2 years from the date of | 17 |
| application;
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| (2) have never previously received a retirement | 19 |
| annuity under
this Article or under the Retirement Systems | 20 |
| Reciprocal Act using service
credit established under this | 21 |
| Article;
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| (3) (blank);
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| (4) have at least 20 years of creditable service in the | 24 |
| Fund by the date
of retirement, without the use of any | 25 |
| creditable service established under this
Section;
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| (5) have attained age 50 by the date of retirement, | 2 |
| without the use of any
age enhancement received under this | 3 |
| Section; and
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| (6) be eligible to receive a retirement annuity under | 5 |
| this Article by the
date of retirement, for which purpose | 6 |
| the age enhancement and creditable
service established | 7 |
| under this Section may be considered.
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| (d) The employer shall determine the retirement date for | 9 |
| each employee
participating in the early retirement program | 10 |
| adopted under this Section. The
retirement date shall be no | 11 |
| earlier than the effective date of the program and
no later | 12 |
| than one year after that effective date, except that the | 13 |
| employee may
require that the retirement date set by the | 14 |
| employer be no later than the June
30 next occurring after the | 15 |
| effective date of the program and no earlier than
the date upon | 16 |
| which the employee qualifies for retirement. The employer shall
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| give each employee participating in the early retirement | 18 |
| program at least 30
days written notice of the employee's | 19 |
| designated retirement date, unless the
employee waives this | 20 |
| notice requirement.
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| (e) An eligible person may establish up to 5 years of | 22 |
| creditable service
under this Section. In addition, for each | 23 |
| period of creditable service
established under this Section, a | 24 |
| person shall have his or her age at
retirement deemed enhanced | 25 |
| by an equivalent period.
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| The creditable service established under this Section may |
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| be used for all
purposes under this Article and the Retirement | 2 |
| Systems Reciprocal Act,
except for the computation of final | 3 |
| rate of earnings and the determination
of earnings, salary, or | 4 |
| compensation under this or any other Article of the
Code.
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| The age enhancement established under this Section may be | 6 |
| used for all
purposes under this Article (including calculation | 7 |
| of the reduction imposed
under subdivision (a)1b(iv) of Section | 8 |
| 7-142), except for purposes of a
reversionary annuity under | 9 |
| Section 7-145 and any distributions required because
of age. | 10 |
| The age enhancement established under this Section may be used | 11 |
| in
calculating a proportionate annuity payable by this Fund | 12 |
| under the Retirement
Systems Reciprocal Act, but shall not be | 13 |
| used in determining benefits payable
under other Articles of | 14 |
| this Code under the Retirement Systems Reciprocal Act.
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| (f) For all creditable service established under this | 16 |
| Section, the
member must pay to the Fund an employee | 17 |
| contribution consisting of 4.5%
of the member's highest annual | 18 |
| salary rate used in the determination of the
final rate of | 19 |
| earnings for retirement annuity purposes for each year of
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| creditable service granted under this Section. For creditable | 21 |
| service
established under this Section by a person who is a | 22 |
| sheriff's law
enforcement employee to be deemed service as a | 23 |
| sheriff's law enforcement
employee, the employee contribution | 24 |
| shall be at the rate of 6.5%
of highest annual salary per year | 25 |
| of creditable service granted.
Contributions for fractions of a | 26 |
| year of service shall be prorated.
Any amounts that are |
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| disregarded in determining the final rate of earnings
under | 2 |
| subdivision (d)(5) of Section 7-116 (the 125% rule) shall also | 3 |
| be
disregarded in determining the required contribution under | 4 |
| this subsection (f).
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| The employee contribution shall be paid to the Fund as | 6 |
| follows: If the
member is entitled to a lump sum payment for | 7 |
| accumulated vacation, sick leave,
or personal leave upon | 8 |
| withdrawal from service, the employer shall deduct the
employee | 9 |
| contribution from that lump sum and pay the deducted amount | 10 |
| directly
to the Fund. If there is no such lump sum payment or | 11 |
| the required employee
contribution exceeds the net amount of | 12 |
| the lump sum payment, then the remaining
amount due, at the | 13 |
| option of the employee, may either be paid to the Fund
before | 14 |
| the annuity commences or deducted from the retirement annuity | 15 |
| in 24
equal monthly installments.
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| (g) An annuitant who has received any age enhancement or | 17 |
| creditable service
under this Section and thereafter accepts | 18 |
| employment with or enters into a
personal services contract | 19 |
| with an employer under this Article thereby forfeits
that age | 20 |
| enhancement and creditable service; except that this | 21 |
| restriction
does not apply to (1) service in an elective | 22 |
| office, so long as the annuitant
does not participate in this | 23 |
| Fund with respect to that office and (2) a person appointed as | 24 |
| an officer under subsection (f) of Section 3-109 of this Code . | 25 |
| A person
forfeiting early retirement incentives under this | 26 |
| subsection (i) must repay to
the Fund that portion of the |
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| retirement annuity already received which is
attributable to | 2 |
| the early retirement incentives that are being forfeited, (ii)
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| shall not be eligible to participate in any future early | 4 |
| retirement program
adopted under this Section, and (iii) is | 5 |
| entitled to a refund of the employee
contribution paid under | 6 |
| subsection (f). The Board shall deduct the required
repayment | 7 |
| from the refund and may impose a reasonable payment schedule | 8 |
| for
repaying the amount, if any, by which the required | 9 |
| repayment exceeds the refund
amount.
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| (h) The additional unfunded liability accruing as a result | 11 |
| of the adoption
of a program of early retirement incentives | 12 |
| under this Section by an employer
shall be amortized over a | 13 |
| period of 10 years beginning on January 1 of the
second | 14 |
| calendar year following the calendar year in which the latest | 15 |
| date for
beginning to receive a retirement annuity under the | 16 |
| program (as determined by
the employer under subsection (d) of | 17 |
| this Section) occurs; except that the
employer may provide for | 18 |
| a shorter amortization period (of no less than 5
years) by | 19 |
| adopting an ordinance or resolution specifying the length of | 20 |
| the
amortization period and submitting a certified copy of the | 21 |
| ordinance or
resolution to the Fund no later than 6 months | 22 |
| after the effective date of the
program. An employer, at its | 23 |
| discretion, may accelerate payments to the Fund.
| 24 |
| An employer may provide more than one early retirement | 25 |
| incentive program
for its employees under this Section. | 26 |
| However, an employer that has provided
an early retirement |
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| incentive program for its employees under this Section may
not | 2 |
| provide another early retirement incentive program under this | 3 |
| Section until the liability arising from the earlier program | 4 |
| has been fully paid to
the Fund.
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| (Source: P.A. 94-456, eff. 8-4-05.)"; and
| 6 |
| on page 14, immediately below line 7, by inserting the | 7 |
| following: | 8 |
| "Section 90. The State Mandates Act is amended by adding | 9 |
| Section 8.33 as follows: | 10 |
| (30 ILCS 805/8.33 new) | 11 |
| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | 12 |
| of this Act, no reimbursement by the State is required for the | 13 |
| implementation of any mandate created by this amendatory Act of | 14 |
| the 96th General Assembly. ".
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