Full Text of SB3405 96th General Assembly
SB3405 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB3405
Introduced 2/10/2010, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-170 |
from Ch. 108 1/2, par. 7-170 |
40 ILCS 5/7-171 |
from Ch. 108 1/2, par. 7-171 |
40 ILCS 5/7-172 |
from Ch. 108 1/2, par. 7-172 |
40 ILCS 5/7-173 |
from Ch. 108 1/2, par. 7-173 |
40 ILCS 5/7-211 |
from Ch. 108 1/2, par. 7-211 |
30 ILCS 805/8.34 new |
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Amends the IMRF Article of the Illinois Pension Code. Makes changes in provisions concerning Social Security taxes. Makes changes concerning cross-references to provisions concerning amortization of unfunded obligations. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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SB3405 |
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LRB096 15967 AMC 31212 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 7-170, 7-171, 7-172, 7-173, and 7-211 as follows:
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| (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
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| Sec. 7-170. Federal Social Security coverage. (a) It is | 8 |
| declared to be the policy and purpose to extend to covered
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| employees as defined in Section 7-138, the benefits of the | 10 |
| Federal Old
Age and Survivors Insurance System as authorized by | 11 |
| the Federal Social
Security Act and amendments thereto. To | 12 |
| effect this, the board shall
take such action as may be | 13 |
| required by applicable State and Federal laws
or regulations.
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| (b) The board shall execute an agreement with the State | 15 |
| Agency to
secure coverage of covered employees as provided in | 16 |
| paragraph (a) of
this section.
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| (c) Each participating municipality and each participating | 18 |
| instrumentality
shall remit payment of contributions for | 19 |
| Social Security purposes on behalf
of covered employees and | 20 |
| covered municipalities and participating
instrumentalities
as | 21 |
| required by applicable State and federal laws and regulations | 22 |
| the board and the State Agency established by the Social
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| Security Enabling Act .
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| (d) Contributions of covered employees to this fund for | 2 |
| Federal
Social Security purposes shall be paid to the State | 3 |
| Agency in such
amounts and at such time as required by | 4 |
| applicable State and federal laws and regulations are | 5 |
| designated by State laws or regulations .
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| (e) (Blank) Contributions in behalf of covered | 7 |
| municipalities and
participating instrumentalities for Federal | 8 |
| Social Security purposes and
the required pro rata share of | 9 |
| administrative expenses shall be paid to
the State Agency from | 10 |
| this fund in accordance with applicable State laws
and | 11 |
| regulations .
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| (f) The board shall maintain such records and submit such | 13 |
| reports as may
be required by applicable State and Federal laws | 14 |
| or regulations.
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| (Source: P.A. 81-793.)
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| (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
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| Sec. 7-171. Finance; taxes.
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| (a) Each municipality other than a school district shall
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| appropriate an amount sufficient to provide for the current
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| municipality contributions required by Section 7-172 of
this | 21 |
| Article, for the fiscal year for which the appropriation is | 22 |
| made
and all amounts due for municipal contributions for | 23 |
| previous years.
Those municipalities which have been assessed | 24 |
| an annual amount to
amortize its unfunded obligation, as | 25 |
| provided in subparagraph 4 5 of
paragraph (a) of Section 7-172 |
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| of this Article, shall include in the
appropriation an amount | 2 |
| sufficient to pay the amount assessed. The
appropriation shall | 3 |
| be based upon an estimate of assets available for
municipality | 4 |
| contributions and liabilities therefor for the fiscal year
for | 5 |
| which appropriations are to be made, including funds available | 6 |
| from
levies for this purpose in prior years.
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| (b) For the purpose of providing monies for municipality
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| contributions, beginning for the year in which a municipality | 9 |
| is
included in this fund:
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| (1) A municipality other than a school district may | 11 |
| levy a tax
which shall not exceed the amount appropriated | 12 |
| for municipality contributions.
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| (2) A school district may levy a tax in an amount | 14 |
| reasonably calculated
at the time of the levy to provide | 15 |
| for the municipality contributions required
under Section | 16 |
| 7-172 of this Article for the fiscal years for which | 17 |
| revenues
from the levy will be received and all amounts due | 18 |
| for municipal contributions
for previous years. Any levy | 19 |
| adopted before the effective date of this
amendatory Act of | 20 |
| 1995 by a school district shall be considered valid and
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| authorized to the extent that the amount was reasonably | 22 |
| calculated at the time
of the levy to provide for the | 23 |
| municipality contributions required under
Section 7-172 | 24 |
| for the fiscal years for which revenues from the levy will | 25 |
| be
received and all amounts due for municipal contributions | 26 |
| for previous years.
In no event shall a budget adopted by a |
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| school district limit a levy of that
school district | 2 |
| adopted under this Section.
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| (c) Any county which is served by a regional office of | 4 |
| education that
serves 2 or more
counties may include in its
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| appropriation an amount sufficient to provide its | 6 |
| proportionate share of the
municipality contributions for that | 7 |
| regional office of education. The tax levy authorized by this | 8 |
| Section may include an amount
necessary to provide monies for | 9 |
| this contribution.
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| (d) Any county that is a part of a multiple-county health | 11 |
| department
or consolidated health department which is formed | 12 |
| under "An Act in
relation to the establishment and maintenance | 13 |
| of county and
multiple-county public health departments", | 14 |
| approved July 9, 1943, as
amended, and which is a participating | 15 |
| instrumentality may include in the
county's appropriation an | 16 |
| amount sufficient to provide its proportionate
share of | 17 |
| municipality contributions of the department. The tax levy
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| authorized by this Section may include the amount necessary to | 19 |
| provide
monies for this contribution.
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| (d-5) A school district participating in a special | 21 |
| education joint
agreement created under Section 10-22.31 of the | 22 |
| School Code that is a
participating instrumentality may include | 23 |
| in the school district's
tax levy under this Section an amount | 24 |
| sufficient to provide its
proportionate share of the | 25 |
| municipality contributions for current and prior
service by | 26 |
| employees of the participating instrumentality created under |
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| the
joint agreement.
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| (e) Such tax shall be levied and collected in like manner, | 3 |
| with the
general taxes of the municipality and shall be in | 4 |
| addition to all other
taxes which the municipality is now or | 5 |
| may hereafter be authorized to
levy upon all taxable property | 6 |
| therein, and shall be exclusive of and in
addition to the | 7 |
| amount of tax levied for general purposes under Section
8-3-1 | 8 |
| of the "Illinois Municipal Code", approved May 29, 1961, as
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| amended, or under any other law or laws which may limit the | 10 |
| amount of
tax which the municipality may levy for general | 11 |
| purposes. The tax may
be levied by the governing body of the | 12 |
| municipality without being
authorized as being additional to | 13 |
| all other taxes by a vote of the
people of the municipality.
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| (f) The county clerk of the county in which any such | 15 |
| municipality is
located, in reducing tax levies shall not | 16 |
| consider any such tax as a
part of the general tax levy for | 17 |
| municipality purposes, and shall not
include the same in the | 18 |
| limitation of any other tax rate which may be
extended.
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| (g) The amount of the tax to be levied in any year shall, | 20 |
| within the
limits herein prescribed, be determined by the | 21 |
| governing body of the
respective municipality.
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| (h) The revenue derived from any such tax levy shall be | 23 |
| used only
for the purposes specified in this Article and, as | 24 |
| collected, shall be
paid to the treasurer of the municipality | 25 |
| levying the tax. Monies
received by a county treasurer for use | 26 |
| in making contributions to a regional
office of education for |
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| its
municipality contributions shall be held by him for that | 2 |
| purpose and paid to
the regional office of education in the | 3 |
| same manner as other
monies appropriated for the expense of the | 4 |
| regional office.
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| (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | 6 |
| 90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
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| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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| Sec. 7-172. Contributions by participating municipalities | 9 |
| and
participating instrumentalities.
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| (a) Each participating municipality and each participating
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| instrumentality shall make payment to the fund as follows:
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| 1. municipality contributions in an amount determined | 13 |
| by applying
the municipality contribution rate to each | 14 |
| payment of earnings paid to
each of its participating | 15 |
| employees;
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| 2. an amount equal to the employee contributions | 17 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 18 |
| whether or not the employee contributions are
withheld as | 19 |
| permitted by that Section;
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| 3. all accounts receivable, together with interest | 21 |
| charged thereon,
as provided in Section 7-209;
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| 4. if it has no participating employees with current | 23 |
| earnings, an
amount payable which, over a period of 20 | 24 |
| years beginning with the year
following an award of | 25 |
| benefit, will amortize, at the effective rate for
that |
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| year, any negative balance in its municipality reserve | 2 |
| resulting
from the award. This amount when established will | 3 |
| be payable as a
separate contribution whether or not it | 4 |
| later has participating employees.
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| (b) A separate municipality contribution rate shall be | 6 |
| determined
for each calendar year for all participating | 7 |
| municipalities together
with all instrumentalities thereof. | 8 |
| The municipality contribution rate
shall be determined for | 9 |
| participating instrumentalities as if they were
participating | 10 |
| municipalities. The municipality contribution rate shall
be | 11 |
| the sum of the following percentages:
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| 1. The percentage of earnings of all the participating | 13 |
| employees of all
participating municipalities and | 14 |
| participating instrumentalities which, if paid
over the | 15 |
| entire period of their service, will be sufficient when | 16 |
| combined with
all employee contributions available for the | 17 |
| payment of benefits, to provide
all annuities for | 18 |
| participating employees, and the $3,000 death benefit
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| payable under Sections 7-158 and 7-164, such percentage to | 20 |
| be known as the
normal cost rate.
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| 2. The percentage of earnings of the participating | 22 |
| employees of each
participating municipality and | 23 |
| participating instrumentalities necessary
to adjust for | 24 |
| the difference between the present value of all benefits,
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| excluding temporary and total and permanent disability and | 26 |
| death benefits, to
be provided for its participating |
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| employees and the sum of its accumulated
municipality | 2 |
| contributions and the accumulated employee contributions | 3 |
| and the
present value of expected future employee and | 4 |
| municipality contributions
pursuant to subparagraph 1 of | 5 |
| this paragraph (b). This adjustment shall be
spread over | 6 |
| the remainder of the period that is allowable under | 7 |
| generally
accepted accounting principles.
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| 3. The percentage of earnings of the participating | 9 |
| employees of all
municipalities and participating | 10 |
| instrumentalities necessary to provide
the present value | 11 |
| of all temporary and total and permanent disability
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| benefits granted during the most recent year for which | 13 |
| information is
available.
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| 4. The percentage of earnings of the participating | 15 |
| employees of all
participating municipalities and | 16 |
| participating instrumentalities
necessary to provide the | 17 |
| present value of the net single sum death
benefits expected | 18 |
| to become payable from the reserve established under
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| Section 7-206 during the year for which this rate is fixed.
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| 5. The percentage of earnings necessary to meet any | 21 |
| deficiency
arising in the Terminated Municipality Reserve.
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| (c) A separate municipality contribution rate shall be | 23 |
| computed for
each participating municipality or participating | 24 |
| instrumentality
for its sheriff's law enforcement employees.
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| A separate municipality contribution rate shall be | 26 |
| computed for the
sheriff's law enforcement employees of each |
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| forest preserve district that
elects to have such employees. | 2 |
| For the period from January 1, 1986 to
December 31, 1986, such | 3 |
| rate shall be the forest preserve district's regular
rate plus | 4 |
| 2%.
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| In the event that the Board determines that there is an | 6 |
| actuarial
deficiency in the account of any municipality with | 7 |
| respect to a person who
has elected to participate in the Fund | 8 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 9 |
| municipality's contribution rate so as to make up
that | 10 |
| deficiency over such reasonable period of time as the Board may | 11 |
| determine.
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| (d) The Board may establish a separate municipality | 13 |
| contribution
rate for all employees who are program | 14 |
| participants employed under the
federal Comprehensive | 15 |
| Employment Training Act by all of the
participating | 16 |
| municipalities and instrumentalities. The Board may also
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| provide that, in lieu of a separate municipality rate for these
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| employees, a portion of the municipality contributions for such | 19 |
| program
participants shall be refunded or an extra charge | 20 |
| assessed so that the
amount of municipality contributions | 21 |
| retained or received by the fund
for all CETA program | 22 |
| participants shall be an amount equal to that which
would be | 23 |
| provided by the separate municipality contribution rate for all
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| such program participants. Refunds shall be made to prime | 25 |
| sponsors of
programs upon submission of a claim therefor and | 26 |
| extra charges shall be
assessed to participating |
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| municipalities and instrumentalities. In
establishing the | 2 |
| municipality contribution rate as provided in paragraph
(b) of | 3 |
| this Section, the use of a separate municipality contribution
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| rate for program participants or the refund of a portion of the
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| municipality contributions, as the case may be, may be | 6 |
| considered.
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| (e) Computations of municipality contribution rates for | 8 |
| the
following calendar year shall be made prior to the | 9 |
| beginning of each
year, from the information available at the | 10 |
| time the computations are
made, and on the assumption that the | 11 |
| employees in each participating
municipality or participating | 12 |
| instrumentality at such time will continue
in service until the | 13 |
| end of such calendar year at their respective rates
of earnings | 14 |
| at such time.
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| (f) Any municipality which is the recipient of State | 16 |
| allocations
representing that municipality's contributions for | 17 |
| retirement annuity
purposes on behalf of its employees as | 18 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 19 |
| shall pay the allocations so
received to the Board for such | 20 |
| purpose. Estimates of State allocations to
be received during | 21 |
| any taxable year shall be considered in the
determination of | 22 |
| the municipality's tax rate for that year under Section
7-171. | 23 |
| If a special tax is levied under Section 7-171, none of the
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| proceeds may be used to reimburse the municipality for the | 25 |
| amount of State
allocations received and paid to the Board. Any | 26 |
| multiple-county or
consolidated health department which |
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| receives contributions from a county
under Section 11.2 of "An | 2 |
| Act in relation to establishment and maintenance
of county and | 3 |
| multiple-county health departments", approved July 9, 1943,
as | 4 |
| amended, or distributions under Section 3 of the Department of | 5 |
| Public
Health Act, shall use these only for municipality | 6 |
| contributions by the
health department.
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| (g) Municipality contributions for the several purposes | 8 |
| specified
shall, for township treasurers and employees in the | 9 |
| offices of the
township treasurers who meet the qualifying | 10 |
| conditions for coverage
hereunder, be allocated among the | 11 |
| several school districts and parts of
school districts serviced | 12 |
| by such treasurers and employees in the
proportion which the | 13 |
| amount of school funds of each district or part of
a district | 14 |
| handled by the treasurer bears to the total amount of all
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| school funds handled by the treasurer.
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| From the funds subject to allocation among districts and | 17 |
| parts of
districts pursuant to the School Code, the trustees | 18 |
| shall withhold the
proportionate share of the liability for | 19 |
| municipality contributions imposed
upon such districts by this | 20 |
| Section, in respect to such township treasurers
and employees | 21 |
| and remit the same to the Board.
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| The municipality contribution rate for an educational | 23 |
| service center shall
initially be the same rate for each year | 24 |
| as the regional office of
education or school district
which | 25 |
| serves as its administrative agent. When actuarial data become
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| available, a separate rate shall be established as provided in |
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| subparagraph
(i) of this Section.
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| The municipality contribution rate for a public agency, | 3 |
| other than a
vocational education cooperative, formed under the | 4 |
| Intergovernmental
Cooperation Act shall initially be the | 5 |
| average rate for the municipalities
which are parties to the | 6 |
| intergovernmental agreement. When actuarial data
become | 7 |
| available, a separate rate shall be established as provided in
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| subparagraph (i) of this Section.
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| (h) Each participating municipality and participating
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| instrumentality shall make the contributions in the amounts | 11 |
| provided in
this Section in the manner prescribed from time to | 12 |
| time by the Board and
all such contributions shall be | 13 |
| obligations of the respective
participating municipalities and | 14 |
| participating instrumentalities to this
fund. The failure to | 15 |
| deduct any employee contributions shall not
relieve the | 16 |
| participating municipality or participating instrumentality
of | 17 |
| its obligation to this fund. Delinquent payments of | 18 |
| contributions
due under this Section may, with interest, be | 19 |
| recovered by civil action
against the participating | 20 |
| municipalities or participating
instrumentalities. | 21 |
| Municipality contributions, other than the amount
necessary | 22 |
| for employee contributions and Social Security contributions, | 23 |
| for
periods of service by employees from whose earnings no | 24 |
| deductions were made
for employee contributions to the fund, | 25 |
| may be charged to the municipality
reserve for the municipality | 26 |
| or participating instrumentality.
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| (i) Contributions by participating instrumentalities shall | 2 |
| be
determined as provided herein except that the percentage | 3 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 4 |
| and the amount payable
under subparagraph 4 5 of paragraph (a) | 5 |
| of this Section, shall be based on
an amortization period of 10 | 6 |
| years.
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| (j) Notwithstanding the other provisions of this Section, | 8 |
| the additional unfunded liability accruing as a result of this | 9 |
| amendatory Act of the 94th General Assembly
shall be amortized | 10 |
| over a period of 30 years beginning on January 1 of the
second | 11 |
| calendar year following the calendar year in which this | 12 |
| amendatory Act takes effect, except that the employer may | 13 |
| provide for a longer amortization period by adopting a | 14 |
| resolution or ordinance specifying a 35-year or 40-year period | 15 |
| and submitting a certified copy of the ordinance or resolution | 16 |
| to the fund no later than June 1 of the calendar year following | 17 |
| the calendar year in which this amendatory Act takes effect.
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| (Source: P.A. 94-712, eff. 6-1-06 .)
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| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 20 |
| Sec. 7-173. Contributions by employees.
| 21 |
| (a) Each participating employee shall make contributions | 22 |
| to the fund as
follows:
| 23 |
| 1. For retirement annuity purposes, normal | 24 |
| contributions of 3 3/4%
of earnings.
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| 2. Additional contributions of such percentages of |
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| each payment of
earnings, as shall be elected by the | 2 |
| employee for retirement annuity
purposes, but not in excess | 3 |
| of 10%. The selected rate shall be
applicable to all | 4 |
| earnings beginning on the first day of the second
month | 5 |
| following receipt by the Board of written notice of | 6 |
| election to
make such contributions. Additional | 7 |
| contributions at the selected rate
shall be made | 8 |
| concurrently with normal contributions.
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| 3. Survivor contributions, by each participating | 10 |
| employee, of 3/4%
of each payment of earnings.
| 11 |
| (b) Each employee shall make contributions to the fund for | 12 |
| Federal
Social Security taxes, for periods during which he is a | 13 |
| covered
employee, as required by the Social Security Enabling | 14 |
| Act and State and federal law . For
participating employees, | 15 |
| such contributions shall be in addition to
those required under | 16 |
| paragraph (a) of this Section.
| 17 |
| (c) Contributions shall be deducted from each | 18 |
| corresponding payment
of earnings paid to each employee and | 19 |
| shall be remitted to the board by
the participating | 20 |
| municipality or participating instrumentality making
such | 21 |
| payment. The remittance, together with a report of the earnings
| 22 |
| and contributions shall be made as directed by the board. For | 23 |
| township
treasurers and employees of township treasurers | 24 |
| qualifying as employees
hereunder, the contributions herein | 25 |
| required as deductions from salary
shall be withheld by the | 26 |
| school township trustees from funds available
for the payment |
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| of the compensation of such treasurers and employees as
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| provided in the School Code and remitted to the board.
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| (d) An employee who has made additional contributions under
| 4 |
| paragraph (a)2 of this Section may upon retirement or at any | 5 |
| time prior
thereto, elect to withdraw the total of such | 6 |
| additional contributions
including interest credited thereon | 7 |
| to the end of the preceding calendar
year.
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| (e) Failure to make the deductions for employee | 9 |
| contributions
provided in paragraph (c) of this Section shall | 10 |
| not relieve the employee
from liability for such contributions. | 11 |
| The amount of such liability may
be deducted, with interest | 12 |
| charged under Section 7-209, from any
annuities or benefits | 13 |
| payable hereunder to the employee or any other
person receiving | 14 |
| an annuity or benefit by reason of such employee's
| 15 |
| participation.
| 16 |
| (f) A participating employee who has at least 40 years of | 17 |
| creditable
service in the Fund may elect to cease making the | 18 |
| contributions required
under this Section. The status of the | 19 |
| employee under this Article shall be
unaffected by this | 20 |
| election, except that the employee shall not receive any
| 21 |
| additional creditable service for the periods of employment | 22 |
| following the
election. An election under this subsection | 23 |
| relieves the employer from
making additional employer | 24 |
| contributions in relation to that employee.
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| (Source: P.A. 87-1265.)
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| (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
| 2 |
| Sec. 7-211. Authorizations.
| 3 |
| (a) Each participating municipality and instrumentality | 4 |
| thereof and
each participating instrumentality shall:
| 5 |
| 1. Deduct all normal and additional contributions and | 6 |
| contributions
for federal Social Security taxes as | 7 |
| required by the Social Security
Enabling Act from each | 8 |
| payment of earnings payable to each participating
employee | 9 |
| who is entitled to any earnings from such municipality or
| 10 |
| instrumentality thereof or participating instrumentality, | 11 |
| and remit
all normal and additional such contributions | 12 |
| immediately to the board; and
| 13 |
| 2. Pay to the board contributions required by this | 14 |
| Article.
| 15 |
| (b) Each participating employee shall, by virtue of the | 16 |
| payment of
contributions to this fund, receive a vested | 17 |
| interest in the annuities
and benefits provided in this Article | 18 |
| and in consideration of such vested
interest shall be deemed to | 19 |
| have agreed and authorized the deduction from
earnings of all | 20 |
| contributions payable to this fund in accordance with this
| 21 |
| Article.
| 22 |
| (c) Payment of earnings less the amounts of contributions | 23 |
| provided in
this Article and in the Social Security Enabling | 24 |
| Act shall be a full
and complete discharge of all claims for | 25 |
| payment for services rendered
by any employee during the period | 26 |
| covered by any such payment.
|
|
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SB3405 |
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LRB096 15967 AMC 31212 b |
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| 1 |
| (d) Any covered annuitant may authorize the withholding of | 2 |
| all or a portion
of his or her annuity, for the payment of | 3 |
| premiums on group accident and health
insurance provided | 4 |
| pursuant to Section 7-199.1. The annuitant may revoke
this | 5 |
| authorization at any time.
| 6 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 7 |
| Section 90. The State Mandates Act is amended by adding | 8 |
| Section 8.34 as follows: | 9 |
| (30 ILCS 805/8.34 new) | 10 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | 11 |
| of this Act, no reimbursement by the State is required for the | 12 |
| implementation of any mandate created by this amendatory Act of | 13 |
| the 96th General Assembly.
| 14 |
| Section 99. Effective date. This Act takes effect upon | 15 |
| becoming law.
|
|