Illinois General Assembly - Full Text of HB4513
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Full Text of HB4513  97th General Assembly

HB4513ham001 97TH GENERAL ASSEMBLY

Rep. Elaine Nekritz

Filed: 3/29/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4513

2    AMENDMENT NO. ______. Amend House Bill 4513 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 13-502 and 13-503 as follows:
 
6    (40 ILCS 5/13-502)  (from Ch. 108 1/2, par. 13-502)
7    Sec. 13-502. Employee contributions; deductions from
8salary.
9    (a) Retirement annuity and child's annuity. Except as
10otherwise provided in this Section, there There shall be
11deducted from each payment of salary an amount equal to 7% of
12salary as the employee's contribution for the retirement
13annuity, including child's annuity, and 0.5% of salary as the
14employee's contribution for annual increases to the retirement
15annuity.
16    (a-1) For employees who first became a member or

 

 

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1participant before January 1, 2011 under any reciprocal
2retirement system or pension fund established under this Code
3other than a retirement system or pension fund established
4under Article 2, 3, 4, 5, 6, or 18 of this Code:
5        (1) beginning with the first pay period paid on or
6    after January 1, 2013 and ending with the last pay period
7    paid on or before December 31, 2013, employee contributions
8    shall be 7.5% for the retirement annuity and 1.0% for
9    annual increases for a total of 8.5%;
10        (2) beginning with the first pay period paid on or
11    after January 1, 2014 and ending with the last pay period
12    paid on or before December 31, 2014, employee contributions
13    shall be 8.0% for the retirement annuity and 1.5% for
14    annual increases for a total of 9.5%;
15        (3) beginning with the first pay period paid on or
16    after January 1, 2015 and ending with the last pay period
17    paid on or before the date when the funded ratio of the
18    Fund is first determined to have reached the 90% funding
19    goal, employee contributions shall be 8.5% for the
20    retirement annuity and 1.5% for annual increases for a
21    total of 10.0%; and
22        (4) beginning with the first pay period paid on or
23    after the date when the funded ratio of the Fund is first
24    determined to have reached the 90% funding goal, and each
25    pay period paid thereafter, employee contributions shall
26    be 7.0% for the retirement annuity and 0.5% for annual

 

 

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1    increases for a total of 7.5%.
2    (b) Surviving spouse's annuity. There shall be deducted
3from each payment of salary an amount equal to 1 1/2% of salary
4as the employee's contribution for the surviving spouse's
5annuity and annual increases therefor. For employees that first
6became a member or a participant before January 1, 2011 under
7any reciprocal retirement system or pension fund established
8under this Code other than a retirement system or pension fund
9established under Article 2, 3, 4, 5, 6, or 18 of this Code,
10beginning with the first pay period paid on or after January 1,
112015 and ending with the last pay period paid on or before the
12date when the funded ratio of the Fund is first determined to
13have reached the 90% funding goal, there shall be deducted an
14additional 0.5% of salary for a total of 2.0% for the surviving
15spouse's annuity and annual increases.
16    (c) Pickup of employee contributions. The Employer may pick
17up employee contributions required under subsections (a) and
18(b) of this Section. If contributions are picked up they shall
19be treated as Employer contributions in determining tax
20treatment under the United States Internal Revenue Code, and
21shall not be included as gross income of the employee until
22such time as they are distributed. The Employer shall pay these
23employee contributions from the same source of funds used in
24paying salary to the employee. The Employer may pick up these
25contributions by a reduction in the cash salary of the employee
26or by an offset against a future salary increase or by a

 

 

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1combination of a reduction in salary and offset against a
2future salary increase. If employee contributions are picked up
3they shall be treated for all purposes of this Article 13,
4including Sections 13-503 and 13-601, in the same manner and to
5the same extent as employee contributions made prior to the
6date picked up.
7    (d) Subject to the requirements of federal law, the
8Employer shall pick up optional contributions that the employee
9has elected to pay to the Fund under Section 13-304.1, and the
10contributions so picked up shall be treated as employer
11contributions for the purposes of determining federal tax
12treatment. The Employer shall pick up the contributions by a
13reduction in the cash salary of the employee and shall pay the
14contributions from the same fund that is used to pay earnings
15to the employee. The Employer shall, however, continue to
16withhold federal and State income taxes based upon
17contributions made under Section 13-304.1 until the Internal
18Revenue Service or the federal courts rule that pursuant to
19Section 414(h) of the U.S. Internal Revenue Code of 1986, as
20amended, these contributions shall not be included as gross
21income of the employee until such time as they are distributed
22or made available.
23    (e) Each employee is deemed to consent and agree to the
24deductions from compensation provided for in this Article.
25    (f) Subject to the requirements of federal law, the
26Employer shall pick up contributions that a commissioner has

 

 

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1elected to pay to the Fund under Section 13-314, and the
2contributions so picked up shall be treated as Employer
3contributions for the purposes of determining federal tax
4treatment. The Employer shall pick up the contributions by a
5reduction in the cash salary of the commissioner and shall pay
6the contributions from the same fund as is used to pay earnings
7to the commissioner. The Employer shall, however, continue to
8withhold federal and State income taxes based upon
9contributions made under Section 13-314 until the U.S. Internal
10Revenue Service or the federal courts rule that pursuant to
11Section 414(h) of the Internal Revenue Code of 1986, as
12amended, these contributions shall not be included as gross
13income of the employee until such time as they are distributed
14or made available.
15(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
 
16    (40 ILCS 5/13-503)  (from Ch. 108 1/2, par. 13-503)
17    Sec. 13-503. Tax levy. Until fiscal year 2013, the The
18Water Reclamation District shall annually levy a tax upon all
19the taxable real property within the District at a rate which,
20when extended, will produce a sum that (i) when added to the
21amounts deducted from the salaries of employees, interest
22income on investments, and other income, will be sufficient to
23meet the requirements of the Fund on an actuarially funded
24basis, but (ii) shall not exceed an amount equal to the total
25amount of contributions by the employees to the Fund made in

 

 

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1the calendar year 2 years prior to the year for which the tax
2is levied, multiplied by 2.19, except that the amount of
3employee contributions made on or after January 1, 2003 towards
4the purchase of additional optional benefits under Section
513-304.1 shall only be multiplied by 1.00.
6    Beginning in fiscal year 2013, the District shall annually
7levy a tax upon all the taxable real property within the
8District at a rate which, when extended, will produce a sum
9that (i) will be sufficient to meet the Fund's actuarially
10determined contribution requirement, but (ii) shall not exceed
11an amount equal to the total employee contributions 2 years
12prior multiplied by 4.19. The actuarially determined
13contribution requirement is equal to the employer's normal cost
14plus the annual amount needed to amortize the unfunded
15liability by the year 2050 as a level percent of payroll. The
16funding goal is to attain a funded ratio of at least 90% by the
17year 2050, with the funded ratio being the ratio of the
18actuarial value of assets to the total actuarial liability.
19    The tax shall be levied and collected in the same manner as
20the general taxes of the District.
21    The tax shall be exclusive of and in addition to the amount
22of tax the District is now or may hereafter be authorized to
23levy for general purposes under the Metropolitan Water
24Reclamation District Act or under any other laws which may
25limit the amount of tax for general purposes. The county clerk
26of any county, in reducing tax levies as may be authorized by

 

 

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1law, shall not consider any such tax as a part of the general
2tax levy for District purposes, and shall not include the same
3in any limitation of the percent of the assessed valuation upon
4which taxes are required to be extended.
5    Revenues derived from the tax shall be paid to the Fund for
6the benefit of the Fund.
7    If the funds available for the purposes of this Article are
8insufficient during any year to meet the requirements of this
9Article, the District may issue tax anticipation warrants or
10notes, as provided by law, against the current tax levy.
11    The Board shall submit annually to the Board of
12Commissioners of the District an estimate of the amount
13required to be raised by taxation for the purposes of the Fund.
14The Board of Commissioners shall review the estimate and
15determine the tax to be levied for such purposes.
16(Source: P.A. 92-599, eff. 6-28-02.)
 
17    Section 90. The State Mandates Act is amended by adding
18Section 8.36 as follows:
 
19    (30 ILCS 805/8.36 new)
20    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
21of this Act, no reimbursement by the State is required for the
22implementation of any mandate created by this amendatory Act of
23the 97th General Assembly.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".