Full Text of HB3475 97th General Assembly
HB3475ham001 97TH GENERAL ASSEMBLY | Rep. Karen May Filed: 3/11/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3475
| 2 | | AMENDMENT NO. ______. Amend House Bill 3475 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 7-116, 7-172, 14-103.05, 22-101, and 22-103 | 6 | | and by adding Sections 1-161 and 1-162 as follows: | 7 | | (40 ILCS 5/1-161 new) | 8 | | Sec. 1-161. Final average salary provisions for all | 9 | | members. | 10 | | (a) The provisions of this Section apply to a person who is | 11 | | a member or participant under any Article of this Code | 12 | | regardless of the date of participation. | 13 | | (b) "Final average salary" shall be limited to the base | 14 | | salary or other base compensation paid to the member or | 15 | | participant for employment by the employer, and shall not | 16 | | include, without limitation: overtime; commissions; bonuses; |
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| 1 | | payment of any type in anticipation of retirement; termination | 2 | | or severance pay; lump sum payments for sick, compensatory, | 3 | | vacation time, or other benefits; indirect or in-kind payments | 4 | | for items such as housing, vehicles, lodging, travel, or | 5 | | clothing allowances; or any other type of payment that is a | 6 | | divergence from the normal progression patterns on which an | 7 | | individual's benefits should be based. For the purposes of a | 8 | | person who is a member or participant of any retirement system | 9 | | or pension fund to which this Section applies on or after the | 10 | | effective date of this amendatory Act of the 97th General | 11 | | Assembly, in this Code, "final average salary" shall be | 12 | | substituted for the following: | 13 | | (1) In Article 2, "highest salary for annuity | 14 | | purposes". | 15 | | (2) In Articles 7 (except for service as sheriff's law | 16 | | enforcement employees) and 15, "final rate of earnings". | 17 | | (3) In Articles 8, 9, 10, 11, and 12, "highest
average | 18 | | annual salary for any 4 consecutive years within the last | 19 | | 10 years of service immediately preceding the date of | 20 | | withdrawal". | 21 | | (4) In Article 13, "average final salary". | 22 | | (5) In Article 14, "final average compensation". | 23 | | (6) In Article 17, "average salary". | 24 | | (7) In Article 18, "final average salary". | 25 | | (8) In Section 22-207, "wages or salary received by
him | 26 | | at the date of retirement or discharge". |
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| 1 | | (40 ILCS 5/1-162 new) | 2 | | Sec. 1-162. Contractual employment following retirement. | 3 | | If a member or participant of a retirement system or pension | 4 | | fund under this Code is receiving a retirement annuity or | 5 | | retirement pension under that system or fund and accepts on a | 6 | | contractual basis a position to provide services to a | 7 | | governmental entity from which he or she has retired, then that | 8 | | person's annuity or retirement pension earned as an active | 9 | | employee of the employer shall be suspended during that | 10 | | contractual service. Persons receiving an annuity or | 11 | | retirement pension under this Code shall notify their | 12 | | contractual employer of their retirement status before | 13 | | accepting contractual employment. A person who fails to submit | 14 | | such notification shall be a guilty of a Class A misdemeanor | 15 | | and required to pay a fine of $1,000. Upon termination of that | 16 | | contractual employment, the person's retirement annuity or | 17 | | retirement pension payments shall resume and, if appropriate, | 18 | | be recalculated under the applicable provisions of this Code.
| 19 | | (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
| 20 | | Sec. 7-116. "Final rate of earnings":
| 21 | | (a) For retirement and survivor annuities, the monthly | 22 | | earnings obtained
by dividing the total earnings received by | 23 | | the employee during the period of
either (1) the 48 consecutive | 24 | | months of service within the last 120 months of
service in |
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| 1 | | which his total earnings were the highest or (2) the
employee's | 2 | | total period of service, by the number of months
of service in | 3 | | such period.
| 4 | | (b) For death benefits, the higher of the rate determined | 5 | | under
paragraph (a) of this Section or total earnings received | 6 | | in the last 12 months
of service divided by twelve. If the | 7 | | deceased employee has less than 12 months
of service, the | 8 | | monthly final rate shall be the monthly rate of pay the
| 9 | | employee was receiving when he began service.
| 10 | | (c) For disability benefits, the total earnings of a | 11 | | participating
employee in the last 12 calendar months of | 12 | | service prior to the date he
becomes disabled divided by 12.
| 13 | | (d) In computing the final rate of earnings: (1) the | 14 | | earnings rate for
all periods of prior service shall be | 15 | | considered equal to the average
earnings rate for the last 3 | 16 | | calendar years of prior service for
which creditable service is | 17 | | received under Section 7-139 or, if there is less than 3 years | 18 | | of
creditable prior service, the average for the total prior | 19 | | service period
for which creditable service is received under | 20 | | Section 7-139; (2) for out
of state service and authorized
| 21 | | leave, the earnings rate shall be the rate upon which service | 22 | | credits are
granted; (3) periods of military leave shall not be | 23 | | considered; (4) the
earnings rate for all periods of disability | 24 | | shall be considered equal to
the rate of earnings upon which | 25 | | the employee's disability benefits are
computed for such | 26 | | periods; (5) the earnings to be considered for each of
the |
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| 1 | | final 24 three months of the final earnings period shall not | 2 | | exceed 125%
of the highest earnings of any other month in the | 3 | | final earnings period;
and (6) the annual amount of final rate | 4 | | of earnings shall be the monthly
amount multiplied by the | 5 | | number of months of service normally required by
the position | 6 | | in a year.
| 7 | | (Source: P.A. 90-448, eff. 8-16-97.)
| 8 | | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 9 | | Sec. 7-172. Contributions by participating municipalities | 10 | | and
participating instrumentalities.
| 11 | | (a) Each participating municipality and each participating
| 12 | | instrumentality shall make payment to the fund as follows:
| 13 | | 1. municipality contributions in an amount determined | 14 | | by applying
the municipality contribution rate to each | 15 | | payment of earnings paid to
each of its participating | 16 | | employees;
| 17 | | 2. an amount equal to the employee contributions | 18 | | provided by paragraphs
(a) and (b) of Section 7-173, | 19 | | whether or not the employee contributions are
withheld as | 20 | | permitted by that Section;
| 21 | | 3. all accounts receivable, together with interest | 22 | | charged thereon,
as provided in Section 7-209;
| 23 | | 4. if it has no participating employees with current | 24 | | earnings, an
amount payable which, over a closed period of | 25 | | 20 years for participating municipalities and 10 years for |
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| 1 | | participating instrumentalities, will amortize, at the | 2 | | effective rate for
that year, any unfunded obligation. The | 3 | | unfunded obligation shall be computed as provided in | 4 | | paragraph 2 of subsection (b); | 5 | | 5. if it has fewer than 7 participating employees or a | 6 | | negative balance in its municipality reserve, the greater | 7 | | of (A) an amount payable that, over a period of 20 years, | 8 | | will amortize at the effective rate for that year any | 9 | | unfunded obligation, computed as provided in paragraph 2 of | 10 | | subsection (b) or (B) the amount required by paragraph 1 of | 11 | | this subsection (a).
| 12 | | (b) A separate municipality contribution rate shall be | 13 | | determined
for each calendar year for all participating | 14 | | municipalities together
with all instrumentalities thereof. | 15 | | The municipality contribution rate
shall be determined for | 16 | | participating instrumentalities as if they were
participating | 17 | | municipalities. The municipality contribution rate shall
be | 18 | | the sum of the following percentages:
| 19 | | 1. The percentage of earnings of all the participating | 20 | | employees of all
participating municipalities and | 21 | | participating instrumentalities which, if paid
over the | 22 | | entire period of their service, will be sufficient when | 23 | | combined with
all employee contributions available for the | 24 | | payment of benefits, to provide
all annuities for | 25 | | participating employees, and the $3,000 death benefit
| 26 | | payable under Sections 7-158 and 7-164, such percentage to |
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| 1 | | be known as the
normal cost rate.
| 2 | | 2. The percentage of earnings of the participating | 3 | | employees of each
participating municipality and | 4 | | participating instrumentalities necessary
to adjust for | 5 | | the difference between the present value of all benefits,
| 6 | | excluding temporary and total and permanent disability and | 7 | | death benefits, to
be provided for its participating | 8 | | employees and the sum of its accumulated
municipality | 9 | | contributions and the accumulated employee contributions | 10 | | and the
present value of expected future employee and | 11 | | municipality contributions
pursuant to subparagraph 1 of | 12 | | this paragraph (b). This adjustment shall be
spread over | 13 | | the remainder of the period that is allowable under | 14 | | generally
accepted accounting principles.
| 15 | | 3. The percentage of earnings of the participating | 16 | | employees of all
municipalities and participating | 17 | | instrumentalities necessary to provide
the present value | 18 | | of all temporary and total and permanent disability
| 19 | | benefits granted during the most recent year for which | 20 | | information is
available.
| 21 | | 4. The percentage of earnings of the participating | 22 | | employees of all
participating municipalities and | 23 | | participating instrumentalities
necessary to provide the | 24 | | present value of the net single sum death
benefits expected | 25 | | to become payable from the reserve established under
| 26 | | Section 7-206 during the year for which this rate is fixed.
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| 1 | | 5. The percentage of earnings necessary to meet any | 2 | | deficiency
arising in the Terminated Municipality Reserve.
| 3 | | (c) A separate municipality contribution rate shall be | 4 | | computed for
each participating municipality or participating | 5 | | instrumentality
for its sheriff's law enforcement employees.
| 6 | | A separate municipality contribution rate shall be | 7 | | computed for the
sheriff's law enforcement employees of each | 8 | | forest preserve district that
elects to have such employees. | 9 | | For the period from January 1, 1986 to
December 31, 1986, such | 10 | | rate shall be the forest preserve district's regular
rate plus | 11 | | 2%.
| 12 | | In the event that the Board determines that there is an | 13 | | actuarial
deficiency in the account of any municipality with | 14 | | respect to a person who
has elected to participate in the Fund | 15 | | under Section 3-109.1 of this Code,
the Board may adjust the | 16 | | municipality's contribution rate so as to make up
that | 17 | | deficiency over such reasonable period of time as the Board may | 18 | | determine.
| 19 | | (d) The Board may establish a separate municipality | 20 | | contribution
rate for all employees who are program | 21 | | participants employed under the
federal Comprehensive | 22 | | Employment Training Act by all of the
participating | 23 | | municipalities and instrumentalities. The Board may also
| 24 | | provide that, in lieu of a separate municipality rate for these
| 25 | | employees, a portion of the municipality contributions for such | 26 | | program
participants shall be refunded or an extra charge |
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| 1 | | assessed so that the
amount of municipality contributions | 2 | | retained or received by the fund
for all CETA program | 3 | | participants shall be an amount equal to that which
would be | 4 | | provided by the separate municipality contribution rate for all
| 5 | | such program participants. Refunds shall be made to prime | 6 | | sponsors of
programs upon submission of a claim therefor and | 7 | | extra charges shall be
assessed to participating | 8 | | municipalities and instrumentalities. In
establishing the | 9 | | municipality contribution rate as provided in paragraph
(b) of | 10 | | this Section, the use of a separate municipality contribution
| 11 | | rate for program participants or the refund of a portion of the
| 12 | | municipality contributions, as the case may be, may be | 13 | | considered.
| 14 | | (e) Computations of municipality contribution rates for | 15 | | the
following calendar year shall be made prior to the | 16 | | beginning of each
year, from the information available at the | 17 | | time the computations are
made, and on the assumption that the | 18 | | employees in each participating
municipality or participating | 19 | | instrumentality at such time will continue
in service until the | 20 | | end of such calendar year at their respective rates
of earnings | 21 | | at such time.
| 22 | | (f) Any municipality which is the recipient of State | 23 | | allocations
representing that municipality's contributions for | 24 | | retirement annuity
purposes on behalf of its employees as | 25 | | provided in Section 12-21.16 of
the Illinois Public Aid Code | 26 | | shall pay the allocations so
received to the Board for such |
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| 1 | | purpose. Estimates of State allocations to
be received during | 2 | | any taxable year shall be considered in the
determination of | 3 | | the municipality's tax rate for that year under Section
7-171. | 4 | | If a special tax is levied under Section 7-171, none of the
| 5 | | proceeds may be used to reimburse the municipality for the | 6 | | amount of State
allocations received and paid to the Board. Any | 7 | | multiple-county or
consolidated health department which | 8 | | receives contributions from a county
under Section 11.2 of "An | 9 | | Act in relation to establishment and maintenance
of county and | 10 | | multiple-county health departments", approved July 9, 1943,
as | 11 | | amended, or distributions under Section 3 of the Department of | 12 | | Public
Health Act, shall use these only for municipality | 13 | | contributions by the
health department.
| 14 | | (g) Municipality contributions for the several purposes | 15 | | specified
shall, for township treasurers and employees in the | 16 | | offices of the
township treasurers who meet the qualifying | 17 | | conditions for coverage
hereunder, be allocated among the | 18 | | several school districts and parts of
school districts serviced | 19 | | by such treasurers and employees in the
proportion which the | 20 | | amount of school funds of each district or part of
a district | 21 | | handled by the treasurer bears to the total amount of all
| 22 | | school funds handled by the treasurer.
| 23 | | From the funds subject to allocation among districts and | 24 | | parts of
districts pursuant to the School Code, the trustees | 25 | | shall withhold the
proportionate share of the liability for | 26 | | municipality contributions imposed
upon such districts by this |
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| 1 | | Section, in respect to such township treasurers
and employees | 2 | | and remit the same to the Board.
| 3 | | The municipality contribution rate for an educational | 4 | | service center shall
initially be the same rate for each year | 5 | | as the regional office of
education or school district
which | 6 | | serves as its administrative agent. When actuarial data become
| 7 | | available, a separate rate shall be established as provided in | 8 | | subparagraph
(i) of this Section.
| 9 | | The municipality contribution rate for a public agency, | 10 | | other than a
vocational education cooperative, formed under the | 11 | | Intergovernmental
Cooperation Act shall initially be the | 12 | | average rate for the municipalities
which are parties to the | 13 | | intergovernmental agreement. When actuarial data
become | 14 | | available, a separate rate shall be established as provided in
| 15 | | subparagraph (i) of this Section.
| 16 | | (h) Each participating municipality and participating
| 17 | | instrumentality shall make the contributions in the amounts | 18 | | provided in
this Section in the manner prescribed from time to | 19 | | time by the Board and
all such contributions shall be | 20 | | obligations of the respective
participating municipalities and | 21 | | participating instrumentalities to this
fund. The failure to | 22 | | deduct any employee contributions shall not
relieve the | 23 | | participating municipality or participating instrumentality
of | 24 | | its obligation to this fund. Delinquent payments of | 25 | | contributions
due under this Section may, with interest, be | 26 | | recovered by civil action
against the participating |
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| 1 | | municipalities or participating
instrumentalities. | 2 | | Municipality contributions, other than the amount
necessary | 3 | | for employee contributions and Social Security contributions, | 4 | | for
periods of service by employees from whose earnings no | 5 | | deductions were made
for employee contributions to the fund, | 6 | | may be charged to the municipality
reserve for the municipality | 7 | | or participating instrumentality.
| 8 | | (i) Contributions by participating instrumentalities shall | 9 | | be
determined as provided herein except that the percentage | 10 | | derived under
subparagraph 2 of paragraph (b) of this Section, | 11 | | and the amount payable
under subparagraph 4 of paragraph (a) of | 12 | | this Section, shall be based on
an amortization period of 10 | 13 | | years.
| 14 | | (j) Notwithstanding the other provisions of this Section, | 15 | | the additional unfunded liability accruing as a result of this | 16 | | amendatory Act of the 94th General Assembly
shall be amortized | 17 | | over a period of 30 years beginning on January 1 of the
second | 18 | | calendar year following the calendar year in which this | 19 | | amendatory Act takes effect, except that the employer may | 20 | | provide for a longer amortization period by adopting a | 21 | | resolution or ordinance specifying a 35-year or 40-year period | 22 | | and submitting a certified copy of the ordinance or resolution | 23 | | to the fund no later than June 1 of the calendar year following | 24 | | the calendar year in which this amendatory Act takes effect.
| 25 | | (k) If the amount of a participating employee's earnings | 26 | | for any calendar year used to determine the participating |
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| 1 | | employee's retirement annuity, determined on a full-time | 2 | | equivalent basis, exceeds the amount of his or her earnings | 3 | | with the same participating municipality or participating | 4 | | instrumentality for the previous calendar year, determined on a | 5 | | full-time equivalent basis, by more than 6%, then the | 6 | | participating municipality or participating instrumentality | 7 | | shall pay to the fund, in addition to all other payments | 8 | | required under this Article and in accordance with guidelines | 9 | | established by the fund, the present value of the increase in | 10 | | benefits resulting from the portion of the increase in earnings | 11 | | that is in excess of 6%. This present value shall be computed | 12 | | by the fund on the basis of the actuarial assumptions and | 13 | | tables used in the most recent actuarial valuation of the fund | 14 | | that is available at the time of the computation. The fund may | 15 | | require the participating municipality or participating | 16 | | instrumentality to provide any pertinent information or | 17 | | documentation. | 18 | | Whenever it determines that a payment is or may be required | 19 | | under this subsection (k), the fund shall calculate the amount | 20 | | of the payment and bill the participating municipality or | 21 | | participating instrumentality for that amount. The bill shall | 22 | | specify the calculations used to determine the amount due. If | 23 | | the participating municipality or participating | 24 | | instrumentality disputes the amount of the bill, it may, within | 25 | | 30 days after receipt of the bill, apply to the fund in writing | 26 | | for a recalculation. The application must specify in detail the |
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| 1 | | grounds of the dispute. Upon receiving a timely application for | 2 | | recalculation, the fund shall review the application and, if | 3 | | appropriate, recalculate the amount due.
The participating | 4 | | municipality and participating instrumentality contributions | 5 | | required under this subsection (k) may be paid in the form of a | 6 | | lump sum within 90 days after receipt of the bill. If the | 7 | | participating municipality and participating instrumentality | 8 | | contributions are not paid within 90 days after receipt of the | 9 | | bill, then interest will be charged at a rate equal to the | 10 | | fund's annual actuarially assumed rate of return on investment | 11 | | compounded annually from the 91st day after receipt of the | 12 | | bill. Payments must be concluded within 3 years after receipt | 13 | | of the bill by the participating municipality or participating | 14 | | instrumentality. | 15 | | When assessing payment for any amount due under this | 16 | | subsection (k), the fund shall exclude earnings increases | 17 | | resulting from overload or overtime earnings. | 18 | | When assessing payment for any amount due under this | 19 | | subsection (k), the fund shall also exclude earnings increases | 20 | | attributable to standard employment promotions resulting in | 21 | | increased responsibility and workload. | 22 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10; | 23 | | revised 9-16-10.)
| 24 | | (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
| 25 | | Sec. 14-103.05. Employee.
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| 1 | | (a) Any person employed by a Department who receives salary
| 2 | | for personal services rendered to the Department on a warrant
| 3 | | issued pursuant to a payroll voucher certified by a Department | 4 | | and drawn
by the State Comptroller upon the State Treasurer, | 5 | | including an elected
official described in subparagraph (d) of | 6 | | Section 14-104, shall become
an employee for purpose of | 7 | | membership in the Retirement System on the
first day of such | 8 | | employment.
| 9 | | A person entering service on or after January 1, 1972 and | 10 | | prior to January
1, 1984 shall become a member as a condition | 11 | | of employment and shall begin
making contributions as of the | 12 | | first day of employment.
| 13 | | A person entering service on or after January 1, 1984 | 14 | | shall, upon completion
of 6 months of continuous service which | 15 | | is not interrupted by a break of more
than 2 months, become a | 16 | | member as a condition of employment. Contributions
shall begin | 17 | | the first of the month after completion of the qualifying | 18 | | period.
| 19 | | A person employed by the Chicago Metropolitan Agency for | 20 | | Planning on the effective date of this amendatory Act of the | 21 | | 95th General Assembly who was a member of this System as an | 22 | | employee of the Chicago Area Transportation Study and makes an | 23 | | election under Section 14-104.13 to participate in this System | 24 | | for his or her employment with the Chicago Metropolitan Agency | 25 | | for Planning.
| 26 | | The qualifying period of 6 months of service is not |
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| 1 | | applicable to: (1)
a person who has been granted credit for | 2 | | service in a position covered by
the State Universities | 3 | | Retirement System, the Teachers' Retirement System
of the State | 4 | | of Illinois, the General Assembly Retirement System, or the
| 5 | | Judges Retirement System of Illinois unless that service has | 6 | | been forfeited
under the laws of those systems; (2) a person | 7 | | entering service on or
after July 1, 1991 in a noncovered | 8 | | position; (3) a person to whom Section
14-108.2a or 14-108.2b | 9 | | applies; or (4) a person to whom subsection (a-5) of this | 10 | | Section applies.
| 11 | | (a-5) A person entering service on or after December 1, | 12 | | 2010 shall become a member as a condition of employment and | 13 | | shall begin making contributions as of the first day of | 14 | | employment. A person serving in the qualifying period on | 15 | | December 1, 2010 will become a member on December 1, 2010 and | 16 | | shall begin making contributions as of December 1, 2010. | 17 | | (b) The term "employee" does not include the following:
| 18 | | (1) members of the State Legislature, and persons | 19 | | electing to become
members of the General Assembly | 20 | | Retirement System pursuant to Section 2-105;
| 21 | | (2) incumbents of offices normally filled by vote of | 22 | | the people;
| 23 | | (3) except as otherwise provided in this Section, any | 24 | | person
appointed by the Governor with the advice and | 25 | | consent
of the Senate unless that person elects to | 26 | | participate in this system;
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| 1 | | (3.1) any person serving as a commissioner of an ethics | 2 | | commission created under the State Officials and Employees | 3 | | Ethics Act unless that person elects to participate in this | 4 | | system with respect to that service as a commissioner;
| 5 | | (3.2) any person serving as a part-time employee in any | 6 | | of the following positions: Legislative Inspector General, | 7 | | Special Legislative Inspector General, employee of the | 8 | | Office of the Legislative Inspector General, Executive | 9 | | Director of the Legislative Ethics Commission, or staff of | 10 | | the Legislative Ethics Commission, regardless of whether | 11 | | he or she is in active service on or after July 8, 2004 | 12 | | (the effective date of Public Act 93-685), unless that | 13 | | person elects to participate in this System with respect to | 14 | | that service; in this item (3.2), a "part-time employee" is | 15 | | a person who is not required to work at least 35 hours per | 16 | | week; | 17 | | (3.3) any person who has made an election under Section | 18 | | 1-123 and who is serving either as legal counsel in the | 19 | | Office of the Governor or as Chief Deputy Attorney General;
| 20 | | (4) except as provided in Section 14-108.2 or | 21 | | 14-108.2c, any person
who is covered or eligible to be | 22 | | covered by the Teachers' Retirement System of
the State of | 23 | | Illinois, the State Universities Retirement System, or the | 24 | | Judges
Retirement System of Illinois;
| 25 | | (5) an employee of a municipality or any other | 26 | | political subdivision
of the State;
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| 1 | | (6) any person who becomes an employee after June 30, | 2 | | 1979 as a
public service employment program participant | 3 | | under the Federal
Comprehensive Employment and Training | 4 | | Act and whose wages or fringe
benefits are paid in whole or | 5 | | in part by funds provided under such Act;
| 6 | | (7) enrollees of the Illinois Young Adult Conservation | 7 | | Corps program,
administered by the Department of Natural | 8 | | Resources, authorized grantee
pursuant to Title VIII of the | 9 | | "Comprehensive Employment and Training Act of
1973", 29 USC | 10 | | 993, as now or hereafter amended;
| 11 | | (8) enrollees and temporary staff of programs | 12 | | administered by the
Department of Natural Resources under | 13 | | the Youth
Conservation Corps Act of 1970;
| 14 | | (9) any person who is a member of any professional | 15 | | licensing or
disciplinary board created under an Act | 16 | | administered by the Department of
Professional Regulation | 17 | | or a successor agency or created or re-created
after the | 18 | | effective date of this amendatory Act of 1997, and who | 19 | | receives
per diem compensation rather than a salary, | 20 | | notwithstanding that such per diem
compensation is paid by | 21 | | warrant issued pursuant to a payroll voucher; such
persons | 22 | | have never been included in the membership of this System, | 23 | | and this
amendatory Act of 1987 (P.A. 84-1472) is not | 24 | | intended to effect any change in
the status of such | 25 | | persons;
| 26 | | (10) any person who is a member of the Illinois Health |
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| 1 | | Care Cost
Containment Council, and receives per diem | 2 | | compensation rather than a
salary, notwithstanding that | 3 | | such per diem compensation is paid by warrant
issued | 4 | | pursuant to a payroll voucher; such persons have never been | 5 | | included
in the membership of this System, and this | 6 | | amendatory Act of 1987 is not
intended to effect any change | 7 | | in the status of such persons;
| 8 | | (11) any person who is a member of the Oil and Gas | 9 | | Board created by
Section 1.2 of the Illinois Oil and Gas | 10 | | Act, and receives per diem
compensation rather than a | 11 | | salary, notwithstanding that such per diem
compensation is | 12 | | paid by warrant issued pursuant to a payroll voucher; or
| 13 | | (12) a person employed by the State Board of Higher | 14 | | Education in a position with the Illinois Century Network | 15 | | as of June 30, 2004, who remains continuously employed | 16 | | after that date by the Department of Central Management | 17 | | Services in a position with the Illinois Century Network | 18 | | and participates in the Article 15 system with respect to | 19 | | that employment ; .
| 20 | | (13) any person who first becomes a member of the Civil | 21 | | Service Commission on or after the effective date of this | 22 | | amendatory Act of the 97th General Assembly; | 23 | | (14) any person, other than the Director of Employment | 24 | | Security, who first becomes a member of the Board of Review | 25 | | of the Department of Employment Security on or after the | 26 | | effective date of this amendatory Act of the 97th General |
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| 1 | | Assembly; | 2 | | (15) any person who first becomes a member of the Civil | 3 | | Service Commission on or after the effective date of this | 4 | | amendatory Act of the 97th General Assembly; | 5 | | (16) any person who first becomes a member of the | 6 | | Illinois Liquor Control Commission on or after the | 7 | | effective date of this amendatory Act of the 97th General | 8 | | Assembly; | 9 | | (17) any person who first becomes a member of the | 10 | | Secretary of State Merit Commission on or after the | 11 | | effective date of this amendatory Act of the 97th General | 12 | | Assembly; | 13 | | (18) any person who first becomes a member of the Human | 14 | | Rights Commission on or after the effective date of this | 15 | | amendatory Act of the 97th General Assembly; | 16 | | (19) any person who first becomes a member of the State | 17 | | Mining Board on or after the effective date of this | 18 | | amendatory Act of the 97th General Assembly; | 19 | | (20) any person who first becomes a member of the | 20 | | Property Tax Appeal Board on or after the effective date of | 21 | | this amendatory Act of the 97th General Assembly; | 22 | | (21) any person who first becomes a member of the | 23 | | Illinois Racing Board on or after the effective date of | 24 | | this amendatory Act of the 97th General Assembly; | 25 | | (22) any person who first becomes a member of the | 26 | | Department of State Police Merit Board on or after the |
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| 1 | | effective date of this amendatory Act of the 97th General | 2 | | Assembly; | 3 | | (23) any person who first becomes a member of the | 4 | | Illinois State Toll Highway Authority on or after the | 5 | | effective date of this amendatory Act of the 97th General | 6 | | Assembly; or | 7 | | (24) any person who first becomes a member of the | 8 | | Illinois State Board of Elections on or after the effective | 9 | | date of this amendatory Act of the 97th General Assembly. | 10 | | (c) An individual who represents or is employed as an | 11 | | officer or employee of a statewide labor organization that | 12 | | represents members of this System may participate in the System | 13 | | and shall be deemed an employee, provided that (1) the | 14 | | individual has previously earned creditable service under this | 15 | | Article, (2) the individual files with the System an | 16 | | irrevocable election to become a participant within 6 months | 17 | | after the effective date of this amendatory Act of the 94th | 18 | | General Assembly, and (3) the individual does not receive | 19 | | credit for that employment under any other provisions of this | 20 | | Code. An employee under this subsection (c) is responsible for | 21 | | paying to the System both (i) employee contributions based on | 22 | | the actual compensation received for service with the labor | 23 | | organization and (ii) employer contributions based on the | 24 | | percentage of payroll certified by the board; all or any part | 25 | | of these contributions may be paid on the employee's behalf or | 26 | | picked up for tax purposes (if authorized under federal law) by |
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| 1 | | the labor organization. | 2 | | A person who is an employee as defined in this subsection | 3 | | (c) may establish service credit for similar employment prior | 4 | | to becoming an employee under this subsection by paying to the | 5 | | System for that employment the contributions specified in this | 6 | | subsection, plus interest at the effective rate from the date | 7 | | of service to the date of payment. However, credit shall not be | 8 | | granted under this subsection (c) for any such prior employment | 9 | | for which the applicant received credit under any other | 10 | | provision of this Code or during which the applicant was on a | 11 | | leave of absence.
| 12 | | (Source: P.A. 95-677, eff. 10-11-07; 96-1490, eff. 1-1-11.)
| 13 | | (40 ILCS 5/22-101) (from Ch. 108 1/2, par. 22-101)
| 14 | | Sec. 22-101. Retirement Plan for Chicago Transit Authority | 15 | | Employees.
| 16 | | (a) There shall be established and maintained by the | 17 | | Authority created by
the "Metropolitan Transit Authority Act", | 18 | | approved April 12, 1945, as
amended, (referred to in this | 19 | | Section as the "Authority") a financially sound pension and | 20 | | retirement system adequate to
provide for all payments when due | 21 | | under such established system or as
modified from time to time | 22 | | by ordinance of the Chicago Transit Board or collective | 23 | | bargaining agreement. For
this purpose, the Board must make | 24 | | contributions to the established system as required under this | 25 | | Section and may make any additional contributions provided for |
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| 1 | | by Board ordinance or collective bargaining agreement. The | 2 | | participating employees shall make
such periodic payments to | 3 | | the established system as required under this Section and may | 4 | | make any additional contributions provided for
by
Board | 5 | | ordinance or collective bargaining agreement. | 6 | | Provisions
shall be made by the Board for all officers , | 7 | | except trustees who first become members on after the effective | 8 | | date of this amendatory Act of the 97th General Assembly, and | 9 | | employees of
the Authority appointed pursuant to the | 10 | | "Metropolitan Transit Authority
Act" to become, subject to | 11 | | reasonable rules and regulations, participants
of the pension | 12 | | or retirement system with uniform rights,
privileges, | 13 | | obligations and status as to the class in which such officers
| 14 | | and employees belong. The terms, conditions and provisions of | 15 | | any pension
or retirement system or of any amendment or | 16 | | modification thereof affecting
employees who are members of any | 17 | | labor organization may be established,
amended or modified by | 18 | | agreement with such labor organization, provided the terms, | 19 | | conditions and provisions must be consistent with this Act, the | 20 | | annual funding levels for the retirement system established by | 21 | | law must be met and the benefits paid to future participants in | 22 | | the system may not exceed the benefit ceilings set for future | 23 | | participants under this Act and the contribution levels | 24 | | required by the Authority and its employees may not be less | 25 | | than the contribution levels established under this Act.
| 26 | | (b) The Board of Trustees shall consist of 11 members |
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| 1 | | appointed as follows: (i) 5 trustees shall be appointed by the | 2 | | Chicago Transit Board; (ii) 3 trustees shall be appointed by an | 3 | | organization representing the highest number of Chicago | 4 | | Transit Authority participants; (iii) one trustee shall be | 5 | | appointed by an organization representing the second-highest | 6 | | number of Chicago Transit Authority participants; (iv) one | 7 | | trustee shall be appointed by the recognized coalition | 8 | | representatives of participants who are not represented by an | 9 | | organization with the highest or second-highest number of | 10 | | Chicago Transit Authority participants; and (v) one trustee | 11 | | shall be selected by the Regional Transportation Authority | 12 | | Board of Directors, and the trustee shall be a professional | 13 | | fiduciary who has experience in the area of collectively | 14 | | bargained pension plans. Trustees shall serve until a successor | 15 | | has been appointed and qualified, or until resignation, death, | 16 | | incapacity, or disqualification. | 17 | | Any person appointed as a trustee of the board shall | 18 | | qualify by taking an oath of office that he or she will | 19 | | diligently and honestly administer the affairs of the system | 20 | | and will not knowingly violate or willfully permit the | 21 | | violation of any of the provisions of law applicable to the | 22 | | Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110, | 23 | | 1-111, 1-114, and 1-115 of the Illinois Pension Code. | 24 | | Each trustee shall cast individual votes, and a majority | 25 | | vote shall be final and binding upon all interested parties, | 26 | | provided that the Board of Trustees may require a supermajority |
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| 1 | | vote with respect to the investment of the assets of the | 2 | | Retirement Plan, and may set forth that requirement in the | 3 | | Retirement Plan documents, by-laws, or rules of the Board of | 4 | | Trustees. Each trustee shall have the rights, privileges, | 5 | | authority, and obligations as are usual and customary for such | 6 | | fiduciaries. | 7 | | The Board of Trustees may cause amounts on deposit in the | 8 | | Retirement Plan to be invested in those investments that are | 9 | | permitted investments for the investment of moneys held under | 10 | | any one or more of the pension or retirement systems of the | 11 | | State, any unit of local government or school district, or any | 12 | | agency or instrumentality thereof. The Board, by a vote of at | 13 | | least two-thirds of the trustees, may transfer investment | 14 | | management to the Illinois State Board of Investment, which is | 15 | | hereby authorized to manage these investments when so requested | 16 | | by the Board of Trustees.
| 17 | | Notwithstanding any other provision of this Article or any | 18 | | law to the contrary, any person who first becomes a trustee on | 19 | | or after the effective date of this Act shall not be eligible | 20 | | to participate in this Retirement Plan. | 21 | | (c) All individuals who were previously participants in the | 22 | | Retirement Plan for Chicago Transit Authority Employees shall | 23 | | remain participants, and shall receive the same benefits | 24 | | established by the Retirement Plan for Chicago Transit | 25 | | Authority Employees, except as provided in this amendatory Act | 26 | | or by subsequent legislative enactment or amendment to the |
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| 1 | | Retirement Plan. For Authority employees hired on or after the | 2 | | effective date of this amendatory Act of the 95th General | 3 | | Assembly, the Retirement Plan for Chicago Transit Authority | 4 | | Employees shall be the exclusive retirement plan and such | 5 | | employees shall not be eligible for any supplemental plan, | 6 | | except for a deferred compensation plan funded only by employee | 7 | | contributions. | 8 | | For all Authority employees who are first hired on or after | 9 | | the effective date of this amendatory Act of the 95th General | 10 | | Assembly and are participants in the Retirement Plan for | 11 | | Chicago Transit Authority Employees, the following terms, | 12 | | conditions and provisions with respect to retirement shall be | 13 | | applicable: | 14 | | (1) Such participant shall be eligible for an unreduced | 15 | | retirement allowance for life upon the attainment of age 64 | 16 | | with 25 years of continuous service. | 17 | | (2) Such participant shall be eligible for a reduced | 18 | | retirement allowance for life upon the attainment of age 55 | 19 | | with 10 years of continuous service. | 20 | | (3) For the purpose of determining the retirement | 21 | | allowance to be paid to a retiring employee, the term | 22 | | "Continuous Service" as used in the Retirement Plan for | 23 | | Chicago Transit Authority Employees shall also be deemed to | 24 | | include all pension credit for service with any retirement | 25 | | system established under Article 8 or Article 11 of this | 26 | | Code, provided that the employee forfeits and relinquishes |
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| 1 | | all pension credit under Article 8 or Article 11 of this | 2 | | Code, and the contribution required under this subsection | 3 | | is made by the employee. The Retirement Plan's actuary | 4 | | shall determine the contribution paid by the employee as an | 5 | | amount equal to the normal cost of the benefit accrued, had | 6 | | the service been rendered as an employee, plus interest per | 7 | | annum from the time such service was rendered until the | 8 | | date the payment is made. | 9 | | (d) From the effective date of this amendatory Act through | 10 | | December 31, 2008, all participating employees shall | 11 | | contribute to the Retirement Plan in an amount not less than 6% | 12 | | of compensation, and the Authority shall contribute to the | 13 | | Retirement Plan in an amount not less than 12% of compensation.
| 14 | | (e)(1) Beginning January 1, 2009 the Authority shall make | 15 | | contributions to the Retirement Plan in an amount equal to | 16 | | twelve percent (12%) of compensation and participating | 17 | | employees shall make contributions to the Retirement Plan in an | 18 | | amount equal to six percent (6%) of compensation. These | 19 | | contributions may be paid by the Authority and participating | 20 | | employees on a payroll or other periodic basis, but shall in | 21 | | any case be paid to the Retirement Plan at least monthly.
| 22 | | (2) For the period ending December 31, 2040, the amount | 23 | | paid by the Authority in any year with respect to debt service | 24 | | on bonds issued for the purposes of funding a contribution to | 25 | | the Retirement Plan under Section 12c of the Metropolitan | 26 | | Transit Authority Act, other than debt service paid with the |
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| 1 | | proceeds of bonds or notes issued by the Authority for any year | 2 | | after calendar year 2008, shall be treated as a credit against | 3 | | the amount of required contribution to the Retirement Plan by | 4 | | the Authority under subsection (e)(1) for the following year up | 5 | | to an amount not to exceed 6% of compensation paid by the | 6 | | Authority in that following year.
| 7 | | (3) By September 15 of each year beginning in 2009 and | 8 | | ending on December 31, 2039, on the basis of a report prepared | 9 | | by an enrolled actuary retained by the Plan, the Board of | 10 | | Trustees of the Retirement Plan shall determine the estimated | 11 | | funded ratio of the total assets of the Retirement Plan to its | 12 | | total actuarially determined liabilities. A report containing | 13 | | that determination and the actuarial assumptions on which it is | 14 | | based shall be filed with the Authority, the representatives of | 15 | | its participating employees, the Auditor General of the State | 16 | | of Illinois, and the Regional Transportation Authority. If the | 17 | | funded ratio is projected to decline below 60% in any year | 18 | | before 2040, the Board of Trustees shall also determine the | 19 | | increased contribution required each year as a level percentage | 20 | | of payroll over the years remaining until 2040 using the | 21 | | projected unit credit actuarial cost method so the funded ratio | 22 | | does not decline below 60% and include that determination in | 23 | | its report. If the actual funded ratio declines below 60% in | 24 | | any year prior to 2040, the Board of Trustees shall also | 25 | | determine the increased contribution required each year as a | 26 | | level percentage of payroll during the years after the then |
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| 1 | | current year using the projected unit credit actuarial cost | 2 | | method so the funded ratio is projected to reach at least 60% | 3 | | no later than 10 years after the then current year and include | 4 | | that determination in its report. Within 60 days after | 5 | | receiving the report, the Auditor General shall review the | 6 | | determination and the assumptions on which it is based, and if | 7 | | he finds that the determination and the assumptions on which it | 8 | | is based are unreasonable in the aggregate, he shall issue a | 9 | | new determination of the funded ratio, the assumptions on which | 10 | | it is based and the increased contribution required each year | 11 | | as a level percentage of payroll over the years remaining until | 12 | | 2040 using the projected unit credit actuarial cost method so | 13 | | the funded ratio does not decline below 60%, or, in the event | 14 | | of an actual decline below 60%, so the funded ratio is | 15 | | projected to reach 60% by no later than 10 years after the then | 16 | | current year. If the Board of Trustees or the Auditor General | 17 | | determine that an increased contribution is required to meet | 18 | | the funded ratio required by the subsection, effective January | 19 | | 1 following the determination or 30 days after such | 20 | | determination, whichever is later, one-third of the increased | 21 | | contribution shall be paid by participating employees and | 22 | | two-thirds by the Authority, in addition to the contributions | 23 | | required by this subsection (1).
| 24 | | (4) For the period beginning 2040, the minimum contribution | 25 | | to the Retirement Plan for each fiscal year shall be an amount | 26 | | determined by the Board of Trustees of the Retirement Plan to |
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| 1 | | be sufficient to bring the total assets of the Retirement Plan | 2 | | up to 90% of its total actuarial liabilities by the end of | 3 | | 2059. Participating employees shall be responsible for | 4 | | one-third of the required contribution and the Authority shall | 5 | | be responsible for two-thirds of the required contribution. In | 6 | | making these determinations, the Board of Trustees shall | 7 | | calculate the required contribution each year as a level | 8 | | percentage of payroll over the years remaining to and including | 9 | | fiscal year 2059 using the projected unit credit actuarial cost | 10 | | method. A report containing that determination and the | 11 | | actuarial assumptions on which it is based shall be filed by | 12 | | September 15 of each year with the Authority, the | 13 | | representatives of its participating employees, the Auditor | 14 | | General of the State of Illinois and the Regional | 15 | | Transportation Authority. If the funded ratio is projected to | 16 | | fail to reach 90% by December 31, 2059, the Board of Trustees | 17 | | shall also determine the increased contribution required each | 18 | | year as a level percentage of payroll over the years remaining | 19 | | until December 31, 2059 using the projected unit credit | 20 | | actuarial cost method so the funded ratio will meet 90% by | 21 | | December 31, 2059 and include that determination in its report. | 22 | | Within 60 days after receiving the report, the Auditor General | 23 | | shall review the determination and the assumptions on which it | 24 | | is based and if he finds that the determination and the | 25 | | assumptions on which it is based are unreasonable in the | 26 | | aggregate, he shall issue a new determination of the funded |
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| 1 | | ratio, the assumptions on which it is based and the increased | 2 | | contribution required each year as a level percentage of | 3 | | payroll over the years remaining until December 31, 2059 using | 4 | | the projected unit credit actuarial cost method so the funded | 5 | | ratio reaches no less than 90% by December 31, 2059. If the | 6 | | Board of Trustees or the Auditor General determine that an | 7 | | increased contribution is required to meet the funded ratio | 8 | | required by this subsection, effective January 1 following the | 9 | | determination or 30 days after such determination, whichever is | 10 | | later, one-third of the increased contribution shall be paid by | 11 | | participating employees and two-thirds by the Authority, in | 12 | | addition to the contributions required by subsection (e)(1).
| 13 | | (5) Beginning in 2060, the minimum contribution for each | 14 | | year shall be the amount needed to maintain the total assets of | 15 | | the Retirement Plan at 90% of the total actuarial liabilities | 16 | | of the Plan, and the contribution shall be funded two-thirds by | 17 | | the Authority and one-third by the participating employees in | 18 | | accordance with this subsection.
| 19 | | (f) The Authority shall take the steps necessary to comply | 20 | | with Section 414(h)(2) of the Internal Revenue Code of 1986, as | 21 | | amended, to permit the pick-up of employee contributions under | 22 | | subsections (d) and (e) on a tax-deferred basis.
| 23 | | (g) The Board of Trustees shall certify to the Governor, | 24 | | the General Assembly, the Auditor General, the Board of the | 25 | | Regional Transportation Authority, and the Authority at least | 26 | | 90 days prior to the end of each fiscal year the amount of the |
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| 1 | | required contributions to the retirement system for the next | 2 | | retirement system fiscal year under this Section. The | 3 | | certification shall include a copy of the actuarial | 4 | | recommendations upon which it is based. In addition, copies of | 5 | | the certification shall be sent to the Commission on Government | 6 | | Forecasting and Accountability and the Mayor of Chicago.
| 7 | | (h)(1) As to an employee who first becomes entitled to a | 8 | | retirement
allowance commencing on or after November 30, 1989, | 9 | | the
retirement allowance shall be the amount determined in
| 10 | | accordance with the following formula: | 11 | | (A) One percent (1%) of his "Average Annual | 12 | | Compensation
in the highest four (4) completed Plan Years" | 13 | | for each
full year of continuous service from the date of | 14 | | original
employment to the effective date of the Plan; plus | 15 | | (B) One and seventy-five hundredths percent (1.75%) of | 16 | | his
"Average Annual Compensation in the highest four (4)
| 17 | | completed Plan Years" for each year (including fractions
| 18 | | thereof to completed calendar months) of continuous
| 19 | | service as provided for in the Retirement Plan for Chicago | 20 | | Transit Authority Employees. | 21 | | Provided, however that: | 22 | | (2) As to an employee who first becomes entitled to a | 23 | | retirement
allowance commencing on or after January 1, 1993, | 24 | | the retirement
allowance shall be the amount determined in | 25 | | accordance with the
following formula: | 26 | | (A) One percent (1%) of his "Average Annual |
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| 1 | | Compensation
in the highest four (4) completed Plan Years" | 2 | | for each
full year of continuous service from the date of | 3 | | original
employment to the effective date of the Plan; plus | 4 | | (B) One and eighty hundredths percent (1.80%) of his
| 5 | | "Average Annual Compensation in the highest four (4)
| 6 | | completed Plan Years" for each year (including fractions
| 7 | | thereof to completed calendar months) of continuous
| 8 | | service as provided for in the Retirement Plan for Chicago | 9 | | Transit Authority Employees. | 10 | | Provided, however that: | 11 | | (3) As to an employee who first becomes entitled to a | 12 | | retirement
allowance commencing on or after January 1, 1994, | 13 | | the retirement
allowance shall be the amount determined in | 14 | | accordance with the
following formula: | 15 | | (A) One percent (1%) of his "Average Annual | 16 | | Compensation
in the highest four (4) completed Plan Years" | 17 | | for each
full year of continuous service from the date of | 18 | | original
employment to the effective date of the Plan; plus | 19 | | (B) One and eighty-five hundredths percent (1.85%) of | 20 | | his
"Average Annual Compensation in the highest four (4)
| 21 | | completed Plan Years" for each year (including fractions
| 22 | | thereof to completed calendar months) of continuous
| 23 | | service as provided for in the Retirement Plan for Chicago | 24 | | Transit Authority Employees. | 25 | | Provided, however that: | 26 | | (4) As to an employee who first becomes entitled to a |
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| 1 | | retirement
allowance commencing on or after January 1, 2000, | 2 | | the retirement
allowance shall be the amount determined in | 3 | | accordance with the
following formula: | 4 | | (A) One percent (1%) of his "Average Annual | 5 | | Compensation
in the highest four (4) completed Plan Years" | 6 | | for each
full year of continuous service from the date of | 7 | | original
employment to the effective date of the Plan; plus | 8 | | (B) Two percent (2%) of his "Average Annual
| 9 | | Compensation in the highest four (4) completed Plan
Years" | 10 | | for each year (including fractions thereof to
completed | 11 | | calendar months) of continuous service as provided for in | 12 | | the Retirement Plan for Chicago Transit Authority | 13 | | Employees. | 14 | | Provided, however that: | 15 | | (5) As to an employee who first becomes entitled to a | 16 | | retirement
allowance commencing on or after January 1, 2001, | 17 | | the
retirement allowance shall be the amount determined in
| 18 | | accordance with the following formula: | 19 | | (A) One percent (1%) of his "Average Annual | 20 | | Compensation
in the highest four (4) completed Plan Years" | 21 | | for each
full year of continuous service from the date of | 22 | | original
employment to the effective date of the Plan; plus | 23 | | (B) Two and fifteen hundredths percent (2.15%) of his
| 24 | | "Average Annual Compensation in the highest four (4)
| 25 | | completed Plan Years" for each year (including fractions
| 26 | | thereof to completed calendar months) of continuous
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| 1 | | service as provided for in the Retirement Plan for Chicago | 2 | | Transit Authority Employees. | 3 | | The changes made by this amendatory Act of the 95th General | 4 | | Assembly, to the extent that they affect the rights or | 5 | | privileges of Authority employees that are currently the | 6 | | subject of collective bargaining, have been agreed to between | 7 | | the authorized representatives of these employees and of the | 8 | | Authority prior to enactment of this amendatory Act, as | 9 | | evidenced by a Memorandum of Understanding between these | 10 | | representatives that will be filed with the Secretary of State | 11 | | Index Department and designated as "95-GA-C05". The General | 12 | | Assembly finds and declares that those changes are consistent | 13 | | with 49 U.S.C. 5333(b) (also known as Section 13(c) of the | 14 | | Federal Transit Act) because of this agreement between | 15 | | authorized representatives of these employees and of the | 16 | | Authority, and that any future amendments to the provisions of | 17 | | this amendatory Act of the 95th General Assembly, to the extent | 18 | | those amendments would affect the rights and privileges of | 19 | | Authority employees that are currently the subject of | 20 | | collective bargaining, would be consistent with 49 U.S.C. | 21 | | 5333(b) if and only if those amendments were agreed to between | 22 | | these authorized representatives prior to enactment. | 23 | | (i) Early retirement incentive plan; funded ratio.
| 24 | | (1) Beginning on the effective date of this Section, no | 25 | | early retirement incentive shall be offered to | 26 | | participants of the Plan unless the Funded Ratio of the |
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| 1 | | Plan is at least 80% or more.
| 2 | | (2) For the purposes of this Section, the
Funded Ratio | 3 | | shall be the Adjusted Assets divided by the Actuarial
| 4 | | Accrued Liability developed in accordance with Statement | 5 | | #25
promulgated by the Government Accounting Standards | 6 | | Board and the
actuarial assumptions described in the Plan. | 7 | | The Adjusted Assets shall be
calculated based on the | 8 | | methodology described in the Plan. | 9 | | (j) Nothing in this amendatory Act of the 95th General | 10 | | Assembly shall impair the rights or privileges of Authority | 11 | | employees under any other law.
| 12 | | (Source: P.A. 94-839, eff. 6-6-06; 95-708, eff. 1-18-08.)
| 13 | | (40 ILCS 5/22-103)
| 14 | | Sec. 22-103. Regional Transportation Authority and related | 15 | | pension plans. | 16 | | (a) As used in this Section: | 17 | | "Affected pension plan" means a defined-benefit pension | 18 | | plan supported in whole or in part by employer contributions | 19 | | and maintained by the Regional Transportation Authority, the | 20 | | Suburban Bus Division, or the Commuter Rail Division, or any | 21 | | combination thereof, under the general authority of the | 22 | | Regional Transportation Authority Act, including but not | 23 | | limited to any such plan that has been established under or is | 24 | | subject to a collective bargaining agreement or is limited to | 25 | | employees covered by a collective bargaining agreement. |
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| 1 | | "Affected pension plan" does not include any pension fund or | 2 | | retirement system subject to Section 22-101 of this Section. | 3 | | "Authority" means the Regional Transportation Authority | 4 | | created under
the Regional Transportation Authority Act.
| 5 | | "Contributing employer" means an employer that is required | 6 | | to make contributions to an affected pension plan under the | 7 | | terms of that plan. | 8 | | "Funding ratio" means the ratio of an affected pension | 9 | | plan's assets to the present value of its actuarial | 10 | | liabilities, as determined at its latest actuarial valuation in | 11 | | accordance with applicable actuarial assumptions and | 12 | | recommendations.
| 13 | | "Under-funded pension plan" or "under-funded" means an | 14 | | affected pension plan that, at the time of its last actuarial | 15 | | valuation, has a funding ratio of less than 90%.
| 16 | | (b) The contributing employers of each affected pension | 17 | | plan have a general duty to make the required employer | 18 | | contributions to the affected pension plan in a timely manner | 19 | | in accordance with the terms of the plan. A contributing | 20 | | employer must make contributions to the affected pension plan | 21 | | as required under this subsection and, if applicable, | 22 | | subsection (c); a contributing employer may make any additional | 23 | | contributions provided for by the board of the employer or | 24 | | collective bargaining agreement. | 25 | | (c) In the case of an affected pension plan that is | 26 | | under-funded on January 1, 2009 or becomes under-funded at any |
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| 1 | | time after that date, the contributing employers shall | 2 | | contribute to the affected pension plan, in addition to all | 3 | | amounts otherwise required, amounts sufficient to bring the | 4 | | funding ratio of the affected pension plan up to 90% in | 5 | | accordance with an amortization schedule adopted jointly by the | 6 | | contributing employers and the trustee of the affected pension | 7 | | plan. The amortization schedule may extend for any period up to | 8 | | a maximum of 50 years and shall provide for additional employer | 9 | | contributions in substantially equal annual amounts over the | 10 | | selected period. If the contributing employers and the trustee | 11 | | of the affected pension plan do not agree on an appropriate | 12 | | period for the amortization schedule within 6 months of the | 13 | | date of determination that the plan is under-funded, then the | 14 | | amortization schedule shall be based on a period of 50 years. | 15 | | In the case of an affected pension plan that has more than | 16 | | one contributing employer, each contributing employer's share | 17 | | of the total additional employer contributions required under | 18 | | this subsection shall be determined: (i) in proportion to the | 19 | | amounts, if any, by which the respective contributing employers | 20 | | have failed to meet their contribution obligations under the | 21 | | terms of the affected pension plan; or (ii) if all of the | 22 | | contributing employers have met their contribution obligations | 23 | | under the terms of the affected pension plan, then in the same | 24 | | proportion as they are required to contribute under the terms | 25 | | of that plan. In the case of an affected pension plan that has | 26 | | only one contributing employer, that contributing employer is |
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| 1 | | responsible for all of the additional employer contributions | 2 | | required under this subsection. | 3 | | If an under-funded pension plan is determined to have | 4 | | achieved a funding ratio of at least 90% during the period when | 5 | | an amortization schedule is in force under this Section, the | 6 | | contributing employers and the trustee of the affected pension | 7 | | plan, acting jointly, may cancel the amortization schedule and | 8 | | the contributing employers may cease making additional | 9 | | contributions under this subsection for as long as the affected | 10 | | pension plan retains a funding ratio of at least 90%.
| 11 | | (d) Beginning January 1, 2009, if the Authority fails to | 12 | | pay to an affected pension fund within 30 days after it is due | 13 | | (i) any employer contribution that it is required to make as a | 14 | | contributing employer, (ii) any additional employer | 15 | | contribution that it is required to pay under subsection (c), | 16 | | or (iii) any payment that it is required to make under Section | 17 | | 4.02a or 4.02b of the Regional Transportation Authority Act, | 18 | | the trustee of the affected pension fund shall promptly so | 19 | | notify the Commission on Government Forecasting and | 20 | | Accountability, the Mayor of Chicago, the Governor, and the | 21 | | General Assembly. | 22 | | (e) For purposes of determining employer contributions, | 23 | | assets, and actuarial liabilities under this subsection, | 24 | | contributions, assets, and liabilities relating to health care | 25 | | benefits shall not be included.
| 26 | | (f) This amendatory Act of the 94th General Assembly does |
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| 1 | | not affect or impair the right of any contributing employer or | 2 | | its employees to collectively bargain the amount or level of | 3 | | employee contributions to an affected pension plan, to the | 4 | | extent that the plan includes employees subject to collective | 5 | | bargaining.
| 6 | | (g) Notwithstanding any other provision of this Article or | 7 | | any law to the contrary, a person who, on or after the | 8 | | effective date of this amendatory Act of the 97th General | 9 | | Assembly, first becomes a director on the Suburban Bus Board, | 10 | | the Commuter Rail Board, or the Board of Directors of the | 11 | | Regional Transportation Authority shall not be eligible to | 12 | | participate in an affected pension plan. | 13 | | (Source: P.A. 94-839, eff. 6-6-06.)
| 14 | | Section 10. The Illinois Municipal Code is amended by | 15 | | adding Section 3.1-50-30 as follows: | 16 | | (65 ILCS 5/3.1-50-30 new) | 17 | | Sec. 3.1-50-30. Increases in salary; pension impact | 18 | | statement. Before increasing the salary of a municipal officer, | 19 | | executive, or manager: | 20 | | (1) the authorities of the respective municipality who | 21 | | are authorizing the increase must contact the Illinois | 22 | | Municipal Retirement Fund as to the effect of that increase | 23 | | in salary on the pension benefits of that participant; | 24 | | (2) the Illinois Municipal Retirement Fund must |
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| 1 | | respond with a written "Pension Impact Statement" stating | 2 | | the effect of that increase in salary on the pension | 3 | | benefits of that participant, and any other relevant effect | 4 | | of the increase, including payment of the present value of | 5 | | the increase in benefits resulting from the portion of any | 6 | | increase in salary that is in excess of 6% as provided | 7 | | under subsection (k) of Section 7-172, if applicable; and | 8 | | (3) the authorities authorizing this increase must | 9 | | sign the Pension Impact Statement, acknowledging receipt | 10 | | and understanding of the effects of the increase. | 11 | | Section 15. The State Mandates Act is amended by adding | 12 | | Section 8.35 as follows: | 13 | | (30 ILCS 805/8.35 new) | 14 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 15 | | of this Act, no reimbursement by the State is required for the | 16 | | implementation of any mandate created by this amendatory Act of | 17 | | the 97th General Assembly. ".
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