Illinois General Assembly - Full Text of SB3629
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Full Text of SB3629  97th General Assembly

SB3629ham001 97TH GENERAL ASSEMBLY

Rep. Daniel J. Burke

Filed: 5/21/2012

 

 


 

 


 
09700SB3629ham001LRB097 15761 EFG 68938 a

1
AMENDMENT TO SENATE BILL 3629

2    AMENDMENT NO. ______. Amend Senate Bill 3629 on page 1, in
3line 5, after "12-116,", by inserting "12-127, 12-133,
412-149,"; and
 
5on page 1, below line 13, by inserting the following:
 
6    "(40 ILCS 5/12-127)  (from Ch. 108 1/2, par. 12-127)
7    Sec. 12-127. Computation of service.
8    (a) If an employee during any leave of absence for 30 days
9or more without pay who is not receiving ordinary disability or
10duty disability benefits contributes the percentage of salary
11theretofore deducted from his salary for annuity purposes, the
12employer shall contribute corresponding amounts for such
13purposes. Payment for any approved leave of absence shall not
14be valid unless made during such absence or within 30 days from
15expiration thereof. The aggregate of leaves of absence for
16which contributions may be made during the entire employee's

 

 

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1service shall be 1 year.
2    (b) In computing service, credit shall be given for all
3leaves of absence subject to the limitations specified in the
4following paragraph during the time an employee was engaged in
5the military or naval service of the United States of America
6during the years 1914 to 1919, inclusive, or between September
716, 1940, and July 25, 1947, or between June 25, 1950, and
8January 31, 1955, and any such service rendered after January
931, 1955, and who within 180 days subsequent to the completion
10of military or naval service re-enters the service of the
11employer.
12    The total credit any employee shall receive for military or
13naval service during the entire term of service as an employee
14shall be subject to the following conditions and limitations:
15        (1) if entry into military or naval service occurs
16    after July 1, 1961, the total credit shall not exceed 3
17    years;
18        (2) if entry into military or naval service occurred on
19    or prior to July 1, 1961, the total credit shall not exceed
20    5 years;
21        (3) an employee who on July 1, 1961, had accrued more
22    than 5 years of such military or naval service shall be
23    entitled to the total amount of such accrued credit.
24    The contributions an employee would have made during the
25period of such military or naval service, together with the
26prescribed employer contributions, shall be made by the

 

 

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1employer and shall be based on the salary for the position
2occupied by the employee on the date of commencement of the
3leave of absence.
4    (c) For all purposes of this Article except the provisions
5of Section 12-133, the following shall constitute a year of
6service in any fiscal year for salary payable according to the
7basis specified: Monthly Basis: 4 months; Weekly Basis: 17
8weeks; Daily Basis: 100 days; Hourly Basis: 800 hours, except
9that in the case of an employee becoming a participant of the
10fund on and after July 1, 1973, the following schedule shall
11govern for all purposes of this Article: Service during 9
12months or more in any fiscal year shall constitute a year of
13service; 6 to 8 months, inclusive, 3/4 of a year; 3 to 5
14months, inclusive, 1/2 year; less than 3 months, 1/4 of a year;
1515 days or more in any month, a month of service. However, for
16the 6-month fiscal year July 1, 2012 through December 31, 2012,
17the amount of service earned shall not exceed 1/2 year.
18    (d) The periods an employee received ordinary or duty
19disability benefit shall be included in the computation of
20service.
21    (e) Upon receipt of the specified payment, credits
22transferred to a fund established under this Article pursuant
23to subsection (d) of Section 8-226.1, subsection (d) of Section
249-121.1, or Section 14-105.1 of this Code shall be included in
25the computation of service.
26    (f) A contributing employee may establish additional

 

 

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1service credit for a period of up to 2 years spent in active
2military service for which he or she does not qualify for
3credit under subsection (b), provided that (1) the person was
4not dishonorably discharged from the military service, and (2)
5the amount of service credit established by the person under
6this subsection (f), when added to the amount of any military
7service credit granted to the person under subsection (b),
8shall not exceed 5 years. In order to establish military
9service credit under this subsection (f), the applicant must
10submit a written application to the Fund, including a copy of
11the applicant's discharge from military service, and pay to the
12Fund (1) employee contributions at the rates provided in this
13Article based upon the person's salary on the last date as a
14participating employee prior to the military service, or on the
15first date as a participating employee after the military
16service, whichever is greater, plus (2) an amount determined by
17the board to be equal to the employer's normal cost of the
18benefits accrued for such military service, plus (3) regular
19interest on items (1) and (2) from the date of conclusion of
20the military service to the date of payment. Contributions must
21be paid in a single lump sum before the credit will be granted.
22Credit established under this subsection may be used for
23pension purposes only.
24    (g) A contributing employee may establish additional
25service credit for a period of up to 5 years of employment by
26the United States federal government for which he or she does

 

 

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1not qualify for credit under any other provision of this
2Article, provided that (1) the amount of service credit
3established by the person under this subsection (g), when added
4to the amount of all military service credit granted to the
5person under subsections (b) and (f), shall not exceed 5 years,
6and (2) any credit received for the federal employment in any
7other public pension fund or retirement system has been
8terminated or relinquished.
9    In order to establish service credit under this subsection
10(g), the applicant must submit a written application to the
11Fund, including such documentation of the federal employment as
12the Board may require, and pay to the Fund (1) employee
13contributions at the rates provided in this Article based upon
14the person's salary on the last date as a participating
15employee prior to the federal service, or on the first date as
16a participating employee after the federal service, whichever
17is greater, plus (2) an amount determined by the Board to be
18equal to the employer's normal cost of the benefits accrued for
19such federal service, plus (3) regular interest on items (1)
20and (2) from the date of conclusion of the federal service to
21the date of payment. Contributions must be paid in a single
22lump sum before the credit is granted. Credit established under
23this subsection may be used for pension purposes only.
24(Source: P.A. 86-272; 86-1488; 87-1265.)
 
25    (40 ILCS 5/12-133)   (from Ch. 108 1/2, par. 12-133)

 

 

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1    Sec. 12-133. Fixed benefit retirement annuity.
2    (a) Subject to the provisions of paragraph (b) of this
3Section, the retirement annuity for any employee who withdraws
4from service on or after January 1, 1983 and before January 1,
51990, at age 60 or over, having at least 4 years of service,
6shall be 1.70% for each of the first 10 years of service; 2.00%
7for each of the next 10 years of service; 2.40% for each year
8of service in excess of 20 but not exceeding 30; and 2.80% for
9each year of service in excess of 30, with a pro-rated amount
10for service of less than a full year, based upon the highest
11average annual salary for any 4 consecutive years within the
12last 10 years of service immediately preceding the date of
13withdrawal, provided that: (1) if retirement of the employee
14occurs below age 60, such annuity shall be reduced 1/2 of 1%
15for each month or fraction thereof that the employee's age is
16less than 60, except that an employee retiring at age 55 or
17over but less than age 60, having at least 35 years of service,
18shall not be subject to the reduction in his retirement annuity
19because of retirement below age 60; (2) the annuity shall not
20exceed 75% of such average annual salary; (3) the actual salary
21shall be considered in the computation of this annuity.
22    The retirement annuity for any employee who withdraws from
23service on or after January 1, 1990 and prior to December 31,
242003 at age 50 or over with at least 10 years of service, or at
25age 60 or over with at least 4 years of service, shall be 1.90%
26for each of the first 10 years of service, 2.20% for each of

 

 

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1the next 10 years of service, 2.40% for each of the next 10
2years of service, and 2.80% for each year of service in excess
3of 30, with a pro-rated amount for service of less than a full
4year, based upon the highest average annual salary for any 4
5consecutive years within the last 10 years of service
6immediately preceding the date of withdrawal, provided that:
7        (1) if retirement of the employee occurs below age 60,
8    such annuity shall be reduced 1/4 of 1% (1/2 of 1% in the
9    case of withdrawal from service before January 1, 1991) for
10    each month or fraction thereof that the employee's age is
11    less than 60, except that an employee retiring at age 50 or
12    over having at least 30 years of service shall not be
13    subject to the reduction in retirement annuity because of
14    retirement below age 60;
15        (2) the annuity shall not exceed 80% of such average
16    annual salary; and
17        (3) the actual salary shall be considered in the
18    computation of this annuity.
19    An employee who withdraws from service on or after December
2031, 2003, at age 50 or over with at least 10 years of service or
21at age 60 or over with at least 4 years of service, shall
22receive, in lieu of any other retirement annuity provided for
23in this Section, a retirement annuity calculated as follows:
24for each year of service immediately preceding the date of
25withdrawal, 2.40% of the highest average annual salary for any
264 consecutive years within the last 10 years of service

 

 

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1immediately preceding the date of withdrawal, with a prorated
2amount for service of less than a full year, provided that:
3        (1) if retirement of the employee occurs below age 60,
4    such annuity shall be reduced 1/4 of 1% for each month or
5    fraction thereof that the employee's age is less than 60,
6    except that an employee retiring at age 50 or over having
7    at least 30 years of service shall not be subject to the
8    reduction in retirement annuity because of retirement
9    below age 60;
10        (2) the annuity shall not exceed 80% of such average
11    annual salary; and
12        (3) the actual salary shall be considered in the
13    computation of this annuity.
14    Notwithstanding any other formula, the annuity for
15employees retiring on or after January 31, 2004 and on or
16before February 29, 2004 with at least 30 years of service
17shall be 80% of average annual salary for any 4 consecutive
18years within the last 10 years of service immediately preceding
19the date of withdrawal.
20    (b) In lieu of the retirement annuity provided as an
21actuarial equivalent of the total accumulations from
22contributions by the employee, contributions by the employer,
23and prior service annuity plus regular interest, an employee in
24service prior to July 1, 1971 shall be entitled to the largest
25applicable retirement annuity provided in this Section if the
26same is larger than the annuity provided in other Sections of

 

 

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1this Article.
2    (c) The following schedule shall govern the computation of
3service for the fixed benefit annuities provided by this
4Section: Service during 9 months or more during any fiscal year
5shall constitute a year of service; 6 to 8 months, inclusive,
63/4 of a year; 3 to 5 months, inclusive, 1/2 year; less than 3
7months, 1/4 of a year; 15 days or more in any month, a month of
8service. However, for the 6-month fiscal year July 1, 2012
9through December 31, 2012, the amount of service earned shall
10not exceed 1/2 year.
11    (d) The other provisions of this Section shall not apply in
12the case of any former employee who is receiving a retirement
13annuity from the fund and who re-enters service as an employee,
14unless the employee renders from and after the date of
15re-entry, at least 3 years of additional service.
16(Source: P.A. 93-654, eff. 1-16-04.)
 
17    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
18    Sec. 12-149. Financing. The board of park commissioners of
19any such park district shall annually levy a tax (in addition
20to the taxes now authorized by law) upon all taxable property
21embraced in the district, at the rate which, when added to the
22employee contributions under this Article and applied to the
23fund created hereunder, shall be sufficient to provide for the
24purposes of this Article in accordance with the provisions
25thereof. Such tax shall be levied and collected with and in

 

 

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1like manner as the general taxes of such district, and shall
2not in any event be included within any limitations of rate for
3general park purposes as now or hereafter provided by law, but
4shall be excluded therefrom and be in addition thereto. The
5amount of such annual tax to and including the year 1977 shall
6not exceed .0275% of the value, as equalized or assessed by the
7Department of Revenue, of all taxable property embraced within
8the park district, provided that for the year 1978, and for
9each year thereafter, the amount of such annual tax shall be at
10a rate on the dollar of assessed valuation of all taxable
11property that will produce, when extended, for the year 1978
12the following sum: 0.825 times the amount of employee
13contributions during the fiscal year 1976; for the year 1979,
140.85 times the amount of employee contributions during the
15fiscal year 1977; for the year 1980, 0.90 times the amount of
16employee contributions during the fiscal year 1978; for the
17year 1981, 0.95 times the amount of employee contributions
18during the fiscal year 1979; for the year 1982, 1.00 times the
19amount of employee contributions during the fiscal year 1980;
20for the year 1983, 1.05 times the amount of contributions made
21on behalf of employees during the fiscal year 1981; and for the
22year 1984 and each year thereafter, an amount equal to 1.10
23times the employee contributions during the fiscal year 2-years
24prior to the year for which the applicable tax is levied. For
25the year 2014, this calculation shall be 1.10 times the amount
26of employee contributions during the 12-month fiscal year

 

 

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1ending June 30, 2012; and for the year 2015, this calculation
2shall be 1.10 times the amount of employee contributions during
3the 12-month fiscal year ending December 31, 2013. As used in
4this Section, the term "employee contributions" means
5contributions by employees for retirement annuity, spouse's
6annuity, automatic increase in retirement annuity, and death
7benefit.
8    In respect to park district employees, other than
9policemen, who are transferred to the employment of a city by
10virtue of the "Exchange of Functions Act of 1957", the
11corporate authorities of the city shall annually levy a tax
12upon all taxable property embraced in the city, as equalized or
13assessed by the Department of Revenue, at such rate per cent of
14the value of such property as shall be sufficient, when added
15to the amounts deducted from the salary or wages of such
16employees, to provide the benefits to which such employees,
17their dependents and beneficiaries are entitled under the
18provisions of this Article. The park district shall not levy a
19tax hereunder in respect to such employees. The tax levied by
20the city under authority of this Article shall be in addition
21to and exclusive of all other taxes authorized by law to be
22levied by the city for corporate, annuity fund or other
23purposes.
24    All moneys accruing from the levy and collection of taxes,
25pursuant to this section, shall be remitted to the board by the
26employers as soon as they are received. Where a city has levied

 

 

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1a tax pursuant to this Section in respect to park district
2employees transferred to the employment of a city, the
3treasurer of such city or other authorized officer shall remit
4the moneys accruing from the levy and collection of such tax as
5soon as they are received. Such remittances shall be made upon
6a pro rata share basis, whereby each employer shall pay to the
7board such employer's proportionate percentage of each payment
8of taxes received by it, according to the ratio which its tax
9levy for this fund bears to the total tax levy of such
10employer.
11    Should any board of park commissioners included under the
12provisions of this Article be without authority to levy the tax
13provided in this Section the corporation authorities (meaning
14the supervisor, clerk and assessor) of the town or towns for
15which such board shall be the board of park commissioners shall
16levy such tax.
17    Employer contributions to the Fund may be reduced by
18$5,000,000 for calendar years 2004 and 2005.
19(Source: P.A. 93-654, eff. 1-16-04.)".