Full Text of SB1922 98th General Assembly
SB1922ham006 98TH GENERAL ASSEMBLY | Rep. Michael J. Madigan Filed: 4/8/2014
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| 1 | | AMENDMENT TO SENATE BILL 1922
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1922, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. Findings. It is the intention of the General | 6 | | Assembly to address an immediate funding crisis that threatens | 7 | | the solvency and sustainability of the public pension systems | 8 | | ("Pension Funds") serving employees of the City of Chicago | 9 | | ("City"). The Pension Funds include the Municipal Employees' | 10 | | Annuity and Benefit Fund of Chicago ("MEABF") and the Laborers' | 11 | | and Retirement Board Employees' Annuity Benefit Fund of Chicago | 12 | | ("LABF"). The General Assembly observes that both the pension | 13 | | benefits provided by these Pension Funds and the City's | 14 | | obligation to contribute to these Pension Funds are established | 15 | | by State law. The General Assembly further observes that the | 16 | | City has continuously made the required contributions to these | 17 | | Pension Funds. After reviewing the condition of the Pension |
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| 1 | | Funds, potential sources of funding, and assessing the need for | 2 | | reform thereof, the General Assembly finds and declares that: | 3 | | 1. The overall financial condition of these two city | 4 | | pension funds is so dire, even under the most optimistic | 5 | | assumptions, a balanced increase in funding, both from the City | 6 | | and from its employees, combined with a modification of annual | 7 | | adjustments for both current and future retirees, is necessary | 8 | | to stabilize and fund the pension funds. | 9 | | 2. While considering the combined unfunded liabilities of | 10 | | the MEABF and LABF, as well as other pension funding that | 11 | | ultimately relies on funds from the City's property tax base, a | 12 | | combination of modifications to employee contribution rates | 13 | | and annual adjustments and increased revenues are necessary to | 14 | | keep the city funds solvent. The City, even as a home rule | 15 | | unit, lacks the ability and flexibility to raise sufficient | 16 | | revenues to fund the current level of pension benefits of these | 17 | | Pension Funds while at the same time providing important public | 18 | | services essential to the public welfare. | 19 | | 3. The General Assembly has been advised by the City that | 20 | | the City cannot feasibly reduce its other expenses to address | 21 | | this serious problem without an unprecedented reduction in | 22 | | basic City services. Personnel costs constitute approximately | 23 | | 75% of the non-discretionary appropriations for the City. As | 24 | | such, reductions in City expenditures to fund pensions would | 25 | | necessarily result in substantial cuts to City personnel, | 26 | | including in key services areas such as public safety, |
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| 1 | | sanitation, and construction. | 2 | | 4. In sum, the crisis confronting the City and its Funds is | 3 | | so large and immediate that it cannot be addressed through | 4 | | increased funding alone, without modifying employee | 5 | | contribution rates and annual adjustments for current and | 6 | | future retirees. The consequences to the City of attempting to | 7 | | do so would be draconian. Accordingly, the General Assembly | 8 | | concludes that, unless reforms are enacted, the benefits | 9 | | currently promised by the Pension Funds are at risk. | 10 | | Section 10. The Illinois Pension Code is amended by | 11 | | changing Sections 1-160, 8-137, 8-137.1, 8-173, 8-174, | 12 | | 11-134.1, 11-134.3, 11-169, and 11-170 and by adding Sections | 13 | | 8-173.1, 8-174.2, 11-169.1, and 11-179.1 as follows:
| 14 | | (40 ILCS 5/1-160)
| 15 | | (Text of Section before amendment by P.A. 98-622 ) | 16 | | Sec. 1-160. Provisions applicable to new hires. | 17 | | (a) The provisions of this Section apply to a person who, | 18 | | on or after January 1, 2011, first becomes a member or a | 19 | | participant under any reciprocal retirement system or pension | 20 | | fund established under this Code, other than a retirement | 21 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 22 | | 15 or 18 of this Code, notwithstanding any other provision of | 23 | | this Code to the contrary, but do not apply to any self-managed | 24 | | plan established under this Code, to any person with respect to |
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| 1 | | service as a sheriff's law enforcement employee under Article | 2 | | 7, or to any participant of the retirement plan established | 3 | | under Section 22-101. Notwithstanding anything to the contrary | 4 | | in this Section, for purposes of this Section, a person who | 5 | | participated in a retirement system under Article 15 prior to | 6 | | January 1, 2011 shall be deemed a person who first became a | 7 | | member or participant prior to January 1, 2011 under any | 8 | | retirement system or pension fund subject to this Section. The | 9 | | changes made to this Section by Public Act 98-596 this | 10 | | amendatory Act of the 98th General Assembly are a clarification | 11 | | of existing law and are intended to be retroactive to the | 12 | | effective date of Public Act 96-889, notwithstanding the | 13 | | provisions of Section 1-103.1 of this Code. | 14 | | (b) "Final average salary" means the average monthly (or | 15 | | annual) salary obtained by dividing the total salary or | 16 | | earnings calculated under the Article applicable to the member | 17 | | or participant during the 96 consecutive months (or 8 | 18 | | consecutive years) of service within the last 120 months (or 10 | 19 | | years) of service in which the total salary or earnings | 20 | | calculated under the applicable Article was the highest by the | 21 | | number of months (or years) of service in that period. For the | 22 | | purposes of a person who first becomes a member or participant | 23 | | of any retirement system or pension fund to which this Section | 24 | | applies on or after January 1, 2011, in this Code, "final | 25 | | average salary" shall be substituted for the following: | 26 | | (1) In Article 7 (except for service as sheriff's law |
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| 1 | | enforcement employees), "final rate of earnings". | 2 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 3 | | annual salary for any 4 consecutive years within the last | 4 | | 10 years of service immediately preceding the date of | 5 | | withdrawal". | 6 | | (3) In Article 13, "average final salary". | 7 | | (4) In Article 14, "final average compensation". | 8 | | (5) In Article 17, "average salary". | 9 | | (6) In Section 22-207, "wages or salary received by him | 10 | | at the date of retirement or discharge". | 11 | | (b-5) Beginning on January 1, 2011, for all purposes under | 12 | | this Code (including without limitation the calculation of | 13 | | benefits and employee contributions), the annual earnings, | 14 | | salary, or wages (based on the plan year) of a member or | 15 | | participant to whom this Section applies shall not exceed | 16 | | $106,800; however, that amount shall annually thereafter be | 17 | | increased by the lesser of (i) 3% of that amount, including all | 18 | | previous adjustments, or (ii) one-half the annual unadjusted | 19 | | percentage increase (but not less than zero) in the consumer | 20 | | price index-u
for the 12 months ending with the September | 21 | | preceding each November 1, including all previous adjustments. | 22 | | For the purposes of this Section, "consumer price index-u" | 23 | | means
the index published by the Bureau of Labor Statistics of | 24 | | the United States
Department of Labor that measures the average | 25 | | change in prices of goods and
services purchased by all urban | 26 | | consumers, United States city average, all
items, 1982-84 = |
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| 1 | | 100. The new amount resulting from each annual adjustment
shall | 2 | | be determined by the Public Pension Division of the Department | 3 | | of Insurance and made available to the boards of the retirement | 4 | | systems and pension funds by November 1 of each year. | 5 | | (c) A member or participant is entitled to a retirement
| 6 | | annuity upon written application if he or she has attained age | 7 | | 67 and has at least 10 years of service credit and is otherwise | 8 | | eligible under the requirements of the applicable Article. | 9 | | A member or participant who has attained age 62 and has at | 10 | | least 10 years of service credit and is otherwise eligible | 11 | | under the requirements of the applicable Article may elect to | 12 | | receive the lower retirement annuity provided
in subsection (d) | 13 | | of this Section. | 14 | | (d) The retirement annuity of a member or participant who | 15 | | is retiring after attaining age 62 with at least 10 years of | 16 | | service credit shall be reduced by one-half
of 1% for each full | 17 | | month that the member's age is under age 67. | 18 | | (e) Any retirement annuity or supplemental annuity shall be | 19 | | subject to annual increases on the January 1 occurring either | 20 | | on or after the attainment of age 67 or the first anniversary | 21 | | of the annuity start date, whichever is later. Each annual | 22 | | increase shall be calculated at 3% or one-half the annual | 23 | | unadjusted percentage increase (but not less than zero) in the | 24 | | consumer price index-u for the 12 months ending with the | 25 | | September preceding each November 1, whichever is less, of the | 26 | | originally granted retirement annuity. If the annual |
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| 1 | | unadjusted percentage change in the consumer price index-u for | 2 | | the 12 months ending with the September preceding each November | 3 | | 1 is zero or there is a decrease, then the annuity shall not be | 4 | | increased. | 5 | | (f) The initial survivor's or widow's annuity of an | 6 | | otherwise eligible survivor or widow of a retired member or | 7 | | participant who first became a member or participant on or | 8 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 9 | | retired member's or participant's retirement annuity at the | 10 | | date of death. In the case of the death of a member or | 11 | | participant who has not retired and who first became a member | 12 | | or participant on or after January 1, 2011, eligibility for a | 13 | | survivor's or widow's annuity shall be determined by the | 14 | | applicable Article of this Code. The initial benefit shall be | 15 | | 66 2/3% of the earned annuity without a reduction due to age. A | 16 | | child's annuity of an otherwise eligible child shall be in the | 17 | | amount prescribed under each Article if applicable. Any | 18 | | survivor's or widow's annuity shall be increased (1) on each | 19 | | January 1 occurring on or after the commencement of the annuity | 20 | | if
the deceased member died while receiving a retirement | 21 | | annuity or (2) in
other cases, on each January 1 occurring | 22 | | after the first anniversary
of the commencement of the annuity. | 23 | | Each annual increase shall be calculated at 3% or one-half the | 24 | | annual unadjusted percentage increase (but not less than zero) | 25 | | in the consumer price index-u for the 12 months ending with the | 26 | | September preceding each November 1, whichever is less, of the |
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| 1 | | originally granted survivor's annuity. If the annual | 2 | | unadjusted percentage change in the consumer price index-u for | 3 | | the 12 months ending with the September preceding each November | 4 | | 1 is zero or there is a decrease, then the annuity shall not be | 5 | | increased. | 6 | | (g) The benefits in Section 14-110 apply only if the person | 7 | | is a State policeman, a fire fighter in the fire protection | 8 | | service of a department, or a security employee of the | 9 | | Department of Corrections or the Department of Juvenile | 10 | | Justice, as those terms are defined in subsection (b) of | 11 | | Section 14-110. A person who meets the requirements of this | 12 | | Section is entitled to an annuity calculated under the | 13 | | provisions of Section 14-110, in lieu of the regular or minimum | 14 | | retirement annuity, only if the person has withdrawn from | 15 | | service with not less than 20
years of eligible creditable | 16 | | service and has attained age 60, regardless of whether
the | 17 | | attainment of age 60 occurs while the person is
still in | 18 | | service. | 19 | | (h) If a person who first becomes a member or a participant | 20 | | of a retirement system or pension fund subject to this Section | 21 | | on or after January 1, 2011 is receiving a retirement annuity | 22 | | or retirement pension under that system or fund and becomes a | 23 | | member or participant under any other system or fund created by | 24 | | this Code and is employed on a full-time basis, except for | 25 | | those members or participants exempted from the provisions of | 26 | | this Section under subsection (a) of this Section, then the |
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| 1 | | person's retirement annuity or retirement pension under that | 2 | | system or fund shall be suspended during that employment. Upon | 3 | | termination of that employment, the person's retirement | 4 | | annuity or retirement pension payments shall resume and be | 5 | | recalculated if recalculation is provided for under the | 6 | | applicable Article of this Code. | 7 | | If a person who first becomes a member of a retirement | 8 | | system or pension fund subject to this Section on or after | 9 | | January 1, 2012 and is receiving a retirement annuity or | 10 | | retirement pension under that system or fund and accepts on a | 11 | | contractual basis a position to provide services to a | 12 | | governmental entity from which he or she has retired, then that | 13 | | person's annuity or retirement pension earned as an active | 14 | | employee of the employer shall be suspended during that | 15 | | contractual service. A person receiving an annuity or | 16 | | retirement pension under this Code shall notify the pension | 17 | | fund or retirement system from which he or she is receiving an | 18 | | annuity or retirement pension, as well as his or her | 19 | | contractual employer, of his or her retirement status before | 20 | | accepting contractual employment. A person who fails to submit | 21 | | such notification shall be guilty of a Class A misdemeanor and | 22 | | required to pay a fine of $1,000. Upon termination of that | 23 | | contractual employment, the person's retirement annuity or | 24 | | retirement pension payments shall resume and, if appropriate, | 25 | | be recalculated under the applicable provisions of this Code. | 26 | | (i) (Blank). |
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| 1 | | (j) In the case of a conflict between the provisions of | 2 | | this Section and any other provision of this Code, the | 3 | | provisions of this Section shall control.
| 4 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | 5 | | eff. 11-19-13; revised 1-23-14.) | 6 | | (Text of Section after amendment by P.A. 98-622 )
| 7 | | Sec. 1-160. Provisions applicable to new hires. | 8 | | (a) The provisions of this Section apply to a person who, | 9 | | on or after January 1, 2011, first becomes a member or a | 10 | | participant under any reciprocal retirement system or pension | 11 | | fund established under this Code, other than a retirement | 12 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 13 | | 15 or 18 of this Code, notwithstanding any other provision of | 14 | | this Code to the contrary, but do not apply to any self-managed | 15 | | plan established under this Code, to any person with respect to | 16 | | service as a sheriff's law enforcement employee under Article | 17 | | 7, or to any participant of the retirement plan established | 18 | | under Section 22-101. Notwithstanding anything to the contrary | 19 | | in this Section, for purposes of this Section, a person who | 20 | | participated in a retirement system under Article 15 prior to | 21 | | January 1, 2011 shall be deemed a person who first became a | 22 | | member or participant prior to January 1, 2011 under any | 23 | | retirement system or pension fund subject to this Section. The | 24 | | changes made to this Section by Public Act 98-596 this | 25 | | amendatory Act of the 98th General Assembly are a clarification |
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| 1 | | of existing law and are intended to be retroactive to the | 2 | | effective date of Public Act 96-889, notwithstanding the | 3 | | provisions of Section 1-103.1 of this Code. | 4 | | (b) "Final average salary" means the average monthly (or | 5 | | annual) salary obtained by dividing the total salary or | 6 | | earnings calculated under the Article applicable to the member | 7 | | or participant during the 96 consecutive months (or 8 | 8 | | consecutive years) of service within the last 120 months (or 10 | 9 | | years) of service in which the total salary or earnings | 10 | | calculated under the applicable Article was the highest by the | 11 | | number of months (or years) of service in that period. For the | 12 | | purposes of a person who first becomes a member or participant | 13 | | of any retirement system or pension fund to which this Section | 14 | | applies on or after January 1, 2011, in this Code, "final | 15 | | average salary" shall be substituted for the following: | 16 | | (1) In Article 7 (except for service as sheriff's law | 17 | | enforcement employees), "final rate of earnings". | 18 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 19 | | annual salary for any 4 consecutive years within the last | 20 | | 10 years of service immediately preceding the date of | 21 | | withdrawal". | 22 | | (3) In Article 13, "average final salary". | 23 | | (4) In Article 14, "final average compensation". | 24 | | (5) In Article 17, "average salary". | 25 | | (6) In Section 22-207, "wages or salary received by him | 26 | | at the date of retirement or discharge". |
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| 1 | | (b-5) Beginning on January 1, 2011, for all purposes under | 2 | | this Code (including without limitation the calculation of | 3 | | benefits and employee contributions), the annual earnings, | 4 | | salary, or wages (based on the plan year) of a member or | 5 | | participant to whom this Section applies shall not exceed | 6 | | $106,800; however, that amount shall annually thereafter be | 7 | | increased by the lesser of (i) 3% of that amount, including all | 8 | | previous adjustments, or (ii) one-half the annual unadjusted | 9 | | percentage increase (but not less than zero) in the consumer | 10 | | price index-u
for the 12 months ending with the September | 11 | | preceding each November 1, including all previous adjustments. | 12 | | For the purposes of this Section, "consumer price index-u" | 13 | | means
the index published by the Bureau of Labor Statistics of | 14 | | the United States
Department of Labor that measures the average | 15 | | change in prices of goods and
services purchased by all urban | 16 | | consumers, United States city average, all
items, 1982-84 = | 17 | | 100. The new amount resulting from each annual adjustment
shall | 18 | | be determined by the Public Pension Division of the Department | 19 | | of Insurance and made available to the boards of the retirement | 20 | | systems and pension funds by November 1 of each year. | 21 | | (c) A member or participant is entitled to a retirement
| 22 | | annuity upon written application if he or she has attained age | 23 | | 67 (beginning January 1, 2015, age 65 with respect to service | 24 | | under Article 8, 11, or 12 of this Code that is subject to this | 25 | | Section) and has at least 10 years of service credit and is | 26 | | otherwise eligible under the requirements of the applicable |
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| 1 | | Article. | 2 | | A member or participant who has attained age 62 (beginning | 3 | | January 1, 2015, age 60 with respect to service under Article | 4 | | 8, 11, or 12 of this Code that is subject to this Section) and | 5 | | has at least 10 years of service credit and is otherwise | 6 | | eligible under the requirements of the applicable Article may | 7 | | elect to receive the lower retirement annuity provided
in | 8 | | subsection (d) of this Section. | 9 | | (d) The retirement annuity of a member or participant who | 10 | | is retiring after attaining age 62 (beginning January 1, 2015, | 11 | | age 60 with respect to service under Article 8, 11, or 12 of | 12 | | this Code that is subject to this Section) with at least 10 | 13 | | years of service credit shall be reduced by one-half
of 1% for | 14 | | each full month that the member's age is under age 67 | 15 | | (beginning January 1, 2015, age 65 with respect to service | 16 | | under Article 8, 11, or 12 of this Code that is subject to this | 17 | | Section). | 18 | | (e) Any retirement annuity or supplemental annuity shall be | 19 | | subject to annual increases on the January 1 occurring either | 20 | | on or after the attainment of age 67 (beginning January 1, | 21 | | 2015, age 65 with respect to service under Article 8, 11, or 12 | 22 | | of this Code that is subject to this Section) or the first | 23 | | anniversary (the second anniversary with respect to service | 24 | | under Article 8 or 11) of the annuity start date, whichever is | 25 | | later. Each annual increase shall be calculated at 3% or | 26 | | one-half the annual unadjusted percentage increase (but not |
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| 1 | | less than zero) in the consumer price index-u for the 12 months | 2 | | ending with the September preceding each November 1, whichever | 3 | | is less, of the originally granted retirement annuity. If the | 4 | | annual unadjusted percentage change in the consumer price | 5 | | index-u for the 12 months ending with the September preceding | 6 | | each November 1 is zero or there is a decrease, then the | 7 | | annuity shall not be increased. | 8 | | Notwithstanding any provision of this Section to the | 9 | | contrary, with respect to service under Article 8 or 11 of this | 10 | | Code that is subject to this Section, no annual increase under | 11 | | this subsection shall be paid or accrue to any person in year | 12 | | 2025. In all other years, the Fund shall continue to pay annual | 13 | | increases as provided in this Section. | 14 | | Notwithstanding Section 1-103.1 of this Code, the changes | 15 | | in this amendatory Act of the 98th General Assembly are | 16 | | applicable without regard to whether the employee was in active | 17 | | service on or after the effective date of this amendatory Act | 18 | | of the 98th General Assembly. | 19 | | (f) The initial survivor's or widow's annuity of an | 20 | | otherwise eligible survivor or widow of a retired member or | 21 | | participant who first became a member or participant on or | 22 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 23 | | retired member's or participant's retirement annuity at the | 24 | | date of death. In the case of the death of a member or | 25 | | participant who has not retired and who first became a member | 26 | | or participant on or after January 1, 2011, eligibility for a |
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| 1 | | survivor's or widow's annuity shall be determined by the | 2 | | applicable Article of this Code. The initial benefit shall be | 3 | | 66 2/3% of the earned annuity without a reduction due to age. A | 4 | | child's annuity of an otherwise eligible child shall be in the | 5 | | amount prescribed under each Article if applicable. Any | 6 | | survivor's or widow's annuity shall be increased (1) on each | 7 | | January 1 occurring on or after the commencement of the annuity | 8 | | if
the deceased member died while receiving a retirement | 9 | | annuity or (2) in
other cases, on each January 1 occurring | 10 | | after the first anniversary
of the commencement of the annuity. | 11 | | Each annual increase shall be calculated at 3% or one-half the | 12 | | annual unadjusted percentage increase (but not less than zero) | 13 | | in the consumer price index-u for the 12 months ending with the | 14 | | September preceding each November 1, whichever is less, of the | 15 | | originally granted survivor's annuity. If the annual | 16 | | unadjusted percentage change in the consumer price index-u for | 17 | | the 12 months ending with the September preceding each November | 18 | | 1 is zero or there is a decrease, then the annuity shall not be | 19 | | increased. | 20 | | (g) The benefits in Section 14-110 apply only if the person | 21 | | is a State policeman, a fire fighter in the fire protection | 22 | | service of a department, or a security employee of the | 23 | | Department of Corrections or the Department of Juvenile | 24 | | Justice, as those terms are defined in subsection (b) of | 25 | | Section 14-110. A person who meets the requirements of this | 26 | | Section is entitled to an annuity calculated under the |
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| 1 | | provisions of Section 14-110, in lieu of the regular or minimum | 2 | | retirement annuity, only if the person has withdrawn from | 3 | | service with not less than 20
years of eligible creditable | 4 | | service and has attained age 60, regardless of whether
the | 5 | | attainment of age 60 occurs while the person is
still in | 6 | | service. | 7 | | (h) If a person who first becomes a member or a participant | 8 | | of a retirement system or pension fund subject to this Section | 9 | | on or after January 1, 2011 is receiving a retirement annuity | 10 | | or retirement pension under that system or fund and becomes a | 11 | | member or participant under any other system or fund created by | 12 | | this Code and is employed on a full-time basis, except for | 13 | | those members or participants exempted from the provisions of | 14 | | this Section under subsection (a) of this Section, then the | 15 | | person's retirement annuity or retirement pension under that | 16 | | system or fund shall be suspended during that employment. Upon | 17 | | termination of that employment, the person's retirement | 18 | | annuity or retirement pension payments shall resume and be | 19 | | recalculated if recalculation is provided for under the | 20 | | applicable Article of this Code. | 21 | | If a person who first becomes a member of a retirement | 22 | | system or pension fund subject to this Section on or after | 23 | | January 1, 2012 and is receiving a retirement annuity or | 24 | | retirement pension under that system or fund and accepts on a | 25 | | contractual basis a position to provide services to a | 26 | | governmental entity from which he or she has retired, then that |
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| 1 | | person's annuity or retirement pension earned as an active | 2 | | employee of the employer shall be suspended during that | 3 | | contractual service. A person receiving an annuity or | 4 | | retirement pension under this Code shall notify the pension | 5 | | fund or retirement system from which he or she is receiving an | 6 | | annuity or retirement pension, as well as his or her | 7 | | contractual employer, of his or her retirement status before | 8 | | accepting contractual employment. A person who fails to submit | 9 | | such notification shall be guilty of a Class A misdemeanor and | 10 | | required to pay a fine of $1,000. Upon termination of that | 11 | | contractual employment, the person's retirement annuity or | 12 | | retirement pension payments shall resume and, if appropriate, | 13 | | be recalculated under the applicable provisions of this Code. | 14 | | (i) (Blank). | 15 | | (j) In the case of a conflict between the provisions of | 16 | | this Section and any other provision of this Code, the | 17 | | provisions of this Section shall control.
| 18 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | 19 | | eff. 11-19-13; 98-622, eff. 6-1-14; revised 1-23-14.)
| 20 | | (40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
| 21 | | Sec. 8-137. Automatic increase in annuity.
| 22 | | (a) An employee who retired or retires from service after | 23 | | December 31,
1959 and before January 1, 1987, having attained | 24 | | age 60 or more, shall,
in January of the year
after the year in | 25 | | which the first anniversary of retirement occurs, have
the |
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| 1 | | amount of his then fixed and payable monthly annuity increased | 2 | | by 1
1/2%, and such first fixed annuity as granted at | 3 | | retirement increased by
a further 1 1/2% in January of each | 4 | | year thereafter. Beginning with
January of the year 1972, such | 5 | | increases shall be at the rate of 2% in
lieu of the aforesaid | 6 | | specified 1 1/2%, and beginning with January of the
year 1984 | 7 | | such increases shall be at the rate of 3%.
Beginning in January | 8 | | of 1999, such increases
shall be at the rate of 3% of the | 9 | | currently payable monthly annuity,
including any increases | 10 | | previously granted under this Article. An
employee who retires | 11 | | on annuity after December 31, 1959 and before
January 1, 1987, | 12 | | but before age 60, shall receive such
increases beginning in | 13 | | January of the year after the year
in which he attains age 60.
| 14 | | An employee who retires from service on or after January 1, | 15 | | 1987 shall, upon
the first annuity payment date following the | 16 | | first anniversary of the date of
retirement, or upon the first | 17 | | annuity payment date following attainment of age
60, whichever | 18 | | occurs later, have his then fixed and payable monthly annuity
| 19 | | increased by 3%, and such annuity shall be increased by an | 20 | | additional 3% of the
original fixed annuity on the same date | 21 | | each year thereafter. Beginning in
January of 1999, such | 22 | | increases shall be at the rate of 3% of the currently
payable | 23 | | monthly annuity, including any increases previously granted | 24 | | under this
Article.
| 25 | | (a-5) Notwithstanding the provisions of subsection (a), | 26 | | upon the first
annuity payment date following (1) the third |
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| 1 | | anniversary of retirement, (2)
the attainment of age 53, or (3) | 2 | | January 1, 2002, whichever
occurs latest,
the
monthly annuity | 3 | | of an employee who retires on annuity prior to the attainment
| 4 | | of age 60 and has not received an increase under subsection (a) | 5 | | shall
be
increased by 3%, and the annuity shall be increased by | 6 | | an additional
3% of the
current payable monthly annuity, | 7 | | including any
increases previously
granted
under this Article, | 8 | | on the same date each year thereafter. The increases
provided | 9 | | under this subsection are in lieu of the increases provided in
| 10 | | subsection (a).
| 11 | | (a-6) Notwithstanding the provisions of subsections (a) | 12 | | and (a-5), for all
calendar years following the year in which | 13 | | this amendatory Act of the 93rd
General Assembly takes effect, | 14 | | an increase in annuity under this Section that
would otherwise | 15 | | take effect at any time during the year shall instead take
| 16 | | effect in January of that year.
| 17 | | (b) Subsections (a), (a-5), and (a-6) are not
applicable to | 18 | | an employee retiring
and receiving a term annuity, as herein | 19 | | defined, nor to any otherwise
qualified employee who retires | 20 | | before he makes employee contributions (at
the 1/2 of 1% rate | 21 | | as provided in this Act) for this additional
annuity for not | 22 | | less than the equivalent of one full year. Such
employee, | 23 | | however, shall make arrangement to pay to the fund a balance
of | 24 | | such 1/2 of 1% contributions, based on his final salary, as | 25 | | will
bring such 1/2 of 1% contributions, computed without | 26 | | interest, to the
equivalent of or completion of one year's |
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| 1 | | contributions.
| 2 | | Beginning with January, 1960, each employee shall | 3 | | contribute by means of
salary deductions 1/2 of 1% of each | 4 | | salary payment, concurrently with
and in addition to the | 5 | | employee contributions otherwise made for annuity
purposes.
| 6 | | Each such additional contribution shall be credited to an | 7 | | account in
the prior service annuity reserve, to be used, | 8 | | together with city
contributions, to defray the cost of the | 9 | | specified annuity increments.
Any balance in such account at | 10 | | the beginning of each calendar year shall
be credited with | 11 | | interest at the rate of 3% per annum.
| 12 | | Such additional employee contributions are not refundable, | 13 | | except to
an employee who withdraws and applies for refund | 14 | | under this Article, and
in cases where a term annuity becomes | 15 | | payable. In such cases his
contributions shall be refunded, | 16 | | without interest, and charged to such
account in the prior | 17 | | service annuity reserve.
| 18 | | (b-5) Notwithstanding any provision of this Section to the | 19 | | contrary: | 20 | | (1) A person retiring after the effective date of this | 21 | | amendatory Act of the 98th General Assembly shall not be | 22 | | eligible for an annual increase under this Section until | 23 | | one full year after the date on which such annual increase | 24 | | otherwise would take effect under this Section. | 25 | | (2) Except for persons eligible under subdivision (4) | 26 | | of this subsection for a minimum annual increase, there |
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| 1 | | shall be no annual increase under this Section in years | 2 | | 2017, 2019, and 2025. | 3 | | (3) In all other years, beginning January 1, 2015, the | 4 | | Fund shall pay an annual increase to persons eligible to | 5 | | receive one under this Section, in lieu of any other annual | 6 | | increase provided under this Section (but subject to the | 7 | | minimum increase under subdivision (4) of this subsection, | 8 | | if applicable) in an amount equal to the lesser of 3% or | 9 | | one-half the annual unadjusted percentage increase (but | 10 | | not less than zero) in the consumer price index-u for the | 11 | | 12 months ending with the September preceding each November | 12 | | 1, of the person's last annual annuity amount prior to | 13 | | January 1, 2015, or if the person was not yet receiving an | 14 | | annuity on that date, then this calculation shall be based | 15 | | on his or her originally granted annual annuity amount. | 16 | | For the purposes of this Section, "consumer price | 17 | | index-u" means the index published by the Bureau of Labor | 18 | | Statistics of the United States Department of Labor that | 19 | | measures the average change in prices of goods and services | 20 | | purchased by all urban consumers, United States city | 21 | | average, all items, 1982-84 = 100. | 22 | | (4) A person is eligible under this subdivision (4) to | 23 | | receive a minimum annual increase in a particular year if: | 24 | | (i) the person is otherwise eligible to receive an annual | 25 | | increase under subdivision (3) of this subsection, and (ii) | 26 | | the annual amount of the annuity payable at the time of the |
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| 1 | | increase, including all increases previously received, is | 2 | | less than $22,000. | 3 | | Beginning January 1, 2015, for a person who is eligible | 4 | | under this subdivision (4) to receive a minimum annual | 5 | | increase in the year 2017, 2019, or 2025, the annual | 6 | | increase shall be 1% of the person's last annual annuity | 7 | | amount prior to January 1, 2015, or if the person was not | 8 | | yet receiving an annuity on that date, then 1% of his or | 9 | | her originally granted annual annuity amount. | 10 | | Beginning January 1, 2015, for any other year in which | 11 | | a person is eligible under this subdivision (4) to receive | 12 | | a minimum annual increase, the annual increase shall be as | 13 | | specified under subdivision (3), but not less than 1% of | 14 | | the person's last annual annuity amount prior to January 1, | 15 | | 2015 or, if the person was not yet receiving an annuity on | 16 | | that date, then not less than 1% of his or her originally | 17 | | granted annual annuity amount. | 18 | | For the purposes of Section 1-103.1, this subsection (b-5) | 19 | | is applicable without regard to whether the employee was in | 20 | | active service on or after the effective date of this | 21 | | amendatory Act of the 98th General Assembly. This subsection | 22 | | (b-5) applies to any former employee who on or after the | 23 | | effective date of this amendatory Act of the 98th General | 24 | | Assembly is receiving a retirement annuity and is eligible for | 25 | | an automatic annual increase under this Section. | 26 | | (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02; |
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| 1 | | 93-654, eff. 1-16-04.)
| 2 | | (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
| 3 | | Sec. 8-137.1. Automatic increases in annuity for certain | 4 | | heretofore retired
participants.
| 5 | | (a) A retired municipal employee who (i) (a) is receiving | 6 | | annuity based on a
service credit of 20 or more years | 7 | | regardless of age at retirement or based
on a service credit of | 8 | | 15 or more years with retirement at age 55 or over,
and (ii) | 9 | | (b) does not qualify for the automatic increases in annuity | 10 | | provided
for in Section 8-137 of this Article, and (iii) (c) | 11 | | elects to make a contribution
to the Fund at a time and manner | 12 | | prescribed by the Retirement Board, of a
sum equal to 1% of the | 13 | | amount of final monthly salary times the number of
full years | 14 | | of service on which the annuity was based in those cases where
| 15 | | the annuity was computed on the money purchase formula and in | 16 | | those cases
in which the annuity was computed under the minimum | 17 | | annuity formula
provisions of this Article a sum equal to 1% of | 18 | | the average monthly salary
on which the annuity was based times | 19 | | such number of full years of service,
shall have his original | 20 | | fixed and payable monthly amount of annuity
increased in | 21 | | January of the year following the year in which he attains the
| 22 | | age of 65 years, if such age of 65 years is attained in the year | 23 | | 1969 or
later, by an amount equal to 1-1/2%, and by an equal | 24 | | additional 1-1/2% in
January of each year thereafter. Beginning | 25 | | with January of the year 1972,
such increases shall be at the |
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| 1 | | rate of 2% in lieu of the aforesaid
specified 1 1/2%, and | 2 | | beginning January of the year 1984 such increases
shall be at | 3 | | the rate of 3%.
Beginning in January of 1999, such increases | 4 | | shall be at the rate of
3% of the currently payable monthly | 5 | | annuity, including any increases previously
granted under this | 6 | | Article.
| 7 | | Whenever the retired municipal employee receiving annuity | 8 | | has attained
the age of 66 or more in 1969, he shall have such | 9 | | annuity increased in
January, 1970 by an amount equal to 1-1/2% | 10 | | multiplied by the number equal
to the number of months of | 11 | | January elapsing from and including January of
the year | 12 | | immediately following the year he attained the age of 65 if
| 13 | | retired at or before age 65, or from and including January of | 14 | | the year
immediately following the year of retirement if | 15 | | retired at an age greater
than 65, to and including January, | 16 | | 1970, and by an equal additional 1-1/2%
in January of each year | 17 | | thereafter. Beginning with January of the year
1972, such | 18 | | increases shall be at the rate of 2% in lieu of the aforesaid
| 19 | | specified 1 1/2%, and beginning January of the year 1984 such | 20 | | increases
shall be at the rate of 3%.
Beginning in January of | 21 | | 1999, such increases shall be at the rate of
3% of the | 22 | | currently payable monthly annuity, including any increases | 23 | | previously
granted under this Article.
| 24 | | (b) To defray the annual cost of such increases, the annual | 25 | | interest income
of the Fund, accruing from investments held by | 26 | | the Fund, exclusive of gains
or losses on sales or exchanges of |
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| 1 | | assets during the year, over and above
4% a year, shall be used | 2 | | to the extent necessary and available to finance
the cost of | 3 | | such increases for the following year, and such amount shall be
| 4 | | transferred as of the end of each year, beginning with the year | 5 | | 1969, to a
Fund account designated as the Supplementary Payment | 6 | | Reserve from the
Investment and Interest Reserve set forth in | 7 | | Section 8-221. The sums
contributed by annuitants as provided | 8 | | for in this Section shall also be
placed in the aforesaid | 9 | | Supplementary Payment Reserve and shall be applied
and used for | 10 | | the purposes of such Fund account, together with the aforesaid
| 11 | | interest.
| 12 | | In the event the monies in the Supplementary Payment | 13 | | Reserve in any year
arising from: (1) the available interest | 14 | | income as defined hereinbefore and
accruing in the preceding | 15 | | year above 4% a year and (2) the contributions by
retired | 16 | | persons, as set forth hereinbefore, are insufficient to make | 17 | | the
total payments to all persons estimated to be entitled to | 18 | | the annuity
increases specified hereinbefore, then (3) any | 19 | | interest earnings over 4% a
year beginning with the year 1969 | 20 | | which were not previously used to finance
such increases and | 21 | | which were transferred to the Prior Service Annuity
Reserve may | 22 | | be used to the extent necessary and available to provide
| 23 | | sufficient funds to finance such increases for the current | 24 | | year, and such
sums shall be transferred from the Prior Service | 25 | | Annuity Reserve.
| 26 | | In the event the total monies available in the |
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| 1 | | Supplementary Payment
Reserve from the preceding indicated | 2 | | sources are insufficient to make the
total payments to all | 3 | | persons entitled to such increases for the year, a
| 4 | | proportionate amount computed as the ratio of the monies | 5 | | available to the
total of the total payments for that year | 6 | | shall be paid to each person for
that year.
| 7 | | The Fund shall be obligated for the payment of the | 8 | | increases in annuity
as provided for in this Section only to | 9 | | the extent that the assets for such
purpose, as specified | 10 | | herein, are available.
| 11 | | (b-5) Notwithstanding any provision of this Section to the | 12 | | contrary: | 13 | | (1) Except for persons eligible under subdivision (3) | 14 | | of this subsection for a minimum annual increase, there | 15 | | shall be no annual increase under this Section in years | 16 | | 2017, 2019, and 2025. | 17 | | (2) In all other years, beginning January 1, 2015, the | 18 | | Fund shall pay an annual increase to persons eligible to | 19 | | receive one under this Section, in lieu of any other annual | 20 | | increase provided under this Section (but subject to the | 21 | | minimum increase under subdivision (3) of this subsection, | 22 | | if applicable) in an amount equal to the lesser of 3% or | 23 | | one-half the annual unadjusted percentage increase (but | 24 | | not less than zero) in the consumer price index-u for the | 25 | | 12 months ending with the September preceding each November | 26 | | 1, of the person's last annual annuity amount prior to |
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| 1 | | January 1, 2015. | 2 | | For the purposes of this Section, "consumer price | 3 | | index-u" means the index published by the Bureau of Labor | 4 | | Statistics of the United States Department of Labor that | 5 | | measures the average change in prices of goods and services | 6 | | purchased by all urban consumers, United States city | 7 | | average, all items, 1982-84 = 100. | 8 | | (3) A person is eligible under this subdivision (3) to | 9 | | receive a minimum annual increase in a particular year if: | 10 | | (i) the person is otherwise eligible to receive an annual | 11 | | increase under subdivision (2) of this subsection, and (ii) | 12 | | the annual amount of the annuity payable at the time of the | 13 | | increase, including all increases previously received, is | 14 | | less than $22,000. | 15 | | Beginning January 1, 2015, for a person who is eligible | 16 | | under this subdivision (3) to receive a minimum annual | 17 | | increase in the year 2017, 2019, or 2025, the annual | 18 | | increase shall be 1% of the person's last annual annuity | 19 | | amount prior to January 1, 2015. | 20 | | Beginning January 1, 2015, for any other year in which | 21 | | a person is eligible under this subdivision (3) to receive | 22 | | a minimum annual increase, the annual increase shall be as | 23 | | specified under subdivision (2), but not less than 1% of | 24 | | the person's last annual annuity amount prior to January 1, | 25 | | 2015. | 26 | | For the purposes of Section 1-103.1, this subsection (b-5) |
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| 1 | | is applicable without regard to whether the employee was in | 2 | | active service on or after the effective date of this | 3 | | amendatory Act of the 98th General Assembly. This subsection | 4 | | (b-5) applies to any former employee who on or after the | 5 | | effective date of this amendatory Act of the 98th General | 6 | | Assembly is receiving a retirement annuity and is eligible for | 7 | | an automatic annual increase under this Section. | 8 | | (Source: P.A. 90-766, eff. 8-14-98.)
| 9 | | (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
| 10 | | Sec. 8-173. Financing; tax levy.
| 11 | | (a) Except as provided in subsection (f) of this Section, | 12 | | the city council
of the city shall levy a tax annually upon all | 13 | | taxable property in the city at
a rate that will produce a sum | 14 | | which, when added to the amounts deducted from
the salaries of | 15 | | the employees or otherwise contributed by them and the
amounts | 16 | | deposited under subsection (f), will be sufficient for the
| 17 | | requirements of this Article, but which when extended will | 18 | | produce an amount
not to exceed the greater of the following: | 19 | | (a) the sum obtained by the levy
of a tax of .1093% of the | 20 | | value, as equalized or assessed by the Department
of Revenue, | 21 | | of all taxable property within such city, or (b) the sum of
| 22 | | $12,000,000.
However any city in which a Fund has been | 23 | | established and in operation
under this Article for more than 3 | 24 | | years prior to 1970 shall
levy for the year 1970 a tax at a rate | 25 | | on the dollar of assessed
valuation of all taxable property |
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| 1 | | that will produce, when extended, an
amount not to exceed 1.2 | 2 | | times the total amount of contributions made by
employees to | 3 | | the Fund for annuity purposes in the calendar year 1968,
and, | 4 | | for the year 1971 and 1972 such levy that will produce, when
| 5 | | extended, an amount not to exceed 1.3 times the total amount of
| 6 | | contributions made by employees to the Fund for annuity
| 7 | | purposes in the calendar years 1969 and 1970, respectively; and | 8 | | for the
year 1973 an amount not to exceed 1.365 times such | 9 | | total amount of
contributions made by employees for annuity | 10 | | purposes in the calendar
year 1971; and for the year 1974 an | 11 | | amount not to exceed 1.430 times
such total amount of | 12 | | contributions made by employees for annuity
purposes in the | 13 | | calendar year 1972; and for the year 1975 an amount not
to | 14 | | exceed 1.495 times such total amount of contributions made by
| 15 | | employees for annuity purposes in the calendar year 1973; and | 16 | | for the year 1976
an amount not to exceed 1.560 times such | 17 | | total amount of contributions made by
employees for annuity | 18 | | purposes in the calendar year 1974; and for the year 1977
an | 19 | | amount not to exceed 1.625 times such total amount of | 20 | | contributions made by
employees for annuity purposes in the | 21 | | calendar year 1975; and for the year 1978
and each year | 22 | | thereafter through levy year 2014 , such levy as will produce, | 23 | | when
extended, an amount not to exceed the total amount of
| 24 | | contributions made by or on behalf of employees to the Fund for | 25 | | annuity
purposes in the calendar year 2 years prior to the year | 26 | | for which the annual
applicable tax is levied, multiplied by |
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| 1 | | 1.690 for the years 1978 through 1998
and by 1.250 for the year | 2 | | 1999 and for each year thereafter through levy year 2014. | 3 | | Beginning in levy year 2015, and in each year thereafter, the | 4 | | levy shall not exceed the amount of the city's total required | 5 | | contribution to the Fund for the next payment year, as | 6 | | determined under subsection (a-5). For the purposes of this | 7 | | Section, the payment year is the year immediately following the | 8 | | levy year .
| 9 | | The tax shall be levied and collected in like manner with | 10 | | the general
taxes of the city, and shall be exclusive of and in | 11 | | addition to the
amount of tax the city is now or may hereafter | 12 | | be authorized to levy for
general purposes under any laws which | 13 | | may limit the amount of tax which
the city may levy for general | 14 | | purposes. The county clerk of the county
in which the city is | 15 | | located, in reducing tax levies under the
provisions of any Act | 16 | | concerning the levy and extension of taxes, shall
not consider | 17 | | the tax herein provided for as a part of the general tax
levy | 18 | | for city purposes, and shall not include the same within any
| 19 | | limitation of the percent of the assessed valuation upon which | 20 | | taxes are
required to be extended for such city.
| 21 | | Revenues derived from such tax shall be paid to the city | 22 | | treasurer of
the city as collected and held by the city | 23 | | treasurer him for the benefit of the fund.
| 24 | | If the payments on account of taxes are insufficient during | 25 | | any year
to meet the requirements of this Article, the city may | 26 | | issue tax
anticipation warrants against the current tax levy.
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| 1 | | The city may continue to use other lawfully available funds | 2 | | in lieu of all or part of the levy, as provided under | 3 | | subsection (f) of this Section. | 4 | | (a-5) Beginning in payment year 2016, the city's required | 5 | | annual contribution to the Fund shall be the lesser of: | 6 | | (i) (I) for payment years 2016 through 2055, the annual | 7 | | amount determined by the Fund to be equal to the greater of | 8 | | $0, or the sum of (1) the City's portion of the projected | 9 | | normal cost for that fiscal year, plus (2) an amount | 10 | | determined on a level percentage of applicable employee | 11 | | payroll basis (reflecting any limits on individual | 12 | | participants' pay that apply for benefit and contribution | 13 | | purposes under this plan) that is sufficient to bring the | 14 | | total actuarial assets of the Fund up to 90% of the total | 15 | | actuarial liabilities of the Fund by the end of 2055. (II) | 16 | | For payment years after 2055, the annual amount determined | 17 | | by the Fund to be equal to the amount, if any, needed to | 18 | | bring the total actuarial assets of the Fund up to 90% of | 19 | | the total actuarial liabilities of the Fund as of the end | 20 | | of the year. In making the determinations under both (I) | 21 | | and (II), the actuarial calculations shall be determined | 22 | | under the entry age normal actuarial cost method, and any | 23 | | actuarial gains or losses from investment return incurred | 24 | | in a fiscal year shall be recognized in equal annual | 25 | | amounts over the 5-year period following the fiscal year; | 26 | | or |
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| 1 | | (ii) for payment year 2016, 1.85 times the total amount | 2 | | of contributions made by or on behalf of employees to the | 3 | | Fund for annuity purposes in the calendar year 2013; for | 4 | | payment year 2017, 2.15 times the total amount of | 5 | | contributions made by or on behalf of employees to the Fund | 6 | | for annuity purposes in the calendar year 2014; for payment | 7 | | year 2018, 2.45 times the total amount of contributions | 8 | | made by or on behalf of employees to the Fund for annuity | 9 | | purposes in the calendar year 2015; for payment year 2019, | 10 | | 2.75 times the total amount of contributions made by or on | 11 | | behalf of employees to the Fund for annuity purposes in the | 12 | | calendar year 2016; for payment year 2020, 3.05 times the | 13 | | total amount of contributions made by or on behalf of | 14 | | employees to the Fund for annuity purposes in the calendar | 15 | | year 2017. | 16 | | However, beginning in the earlier of payment year 2021 or the | 17 | | first payment year in which the annual contribution amount | 18 | | calculated under subdivision (i) is less than the contribution | 19 | | amount calculated under subdivision (ii), and in each year | 20 | | thereafter, the city's required annual contribution to the Fund | 21 | | shall be determined under subdivision (i). | 22 | | The city's required annual contribution to the Fund may be | 23 | | paid with any available funds and shall be paid by the city to | 24 | | the city treasurer. The city treasurer shall collect and hold | 25 | | those funds for the benefit of the Fund. | 26 | | (a-10) If the city fails to transmit to the Fund |
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| 1 | | contributions required of it under this Article by December | 2 | | 31st of the year in which such contributions are due, the Fund | 3 | | may, after giving notice to the city, certify to the State | 4 | | Comptroller the amounts of the delinquent payments, and the | 5 | | Comptroller must, beginning in payment year 2016, deduct and | 6 | | deposit into the Fund the certified amounts or a portion of | 7 | | those amounts from the following proportions of grants of State | 8 | | funds to the city: | 9 | | (1) in payment year 2016, one-third of the total
amount | 10 | | of any grants of State funds to the city; | 11 | | (2) in payment year 2017, two-thirds of the total
| 12 | | amount of any grants of State funds to the city; and | 13 | | (3) in payment year 2018 and each payment year | 14 | | thereafter, the total
amount of any grants of State funds | 15 | | to the city. | 16 | | The State Comptroller may not deduct from any grants of | 17 | | State funds to the city more than the amount of delinquent | 18 | | payments certified to the State Comptroller by the Fund. | 19 | | (b) On or before July 1 January 10 , annually, the board | 20 | | shall certify to notify the
city council the annual amounts | 21 | | required under of the requirements of this Article , for which | 22 | | that the tax herein
provided may shall be levied for the | 23 | | following that current year. The board shall compute
the | 24 | | amounts necessary to be credited to the reserves established | 25 | | and
maintained as herein provided, and shall make an annual | 26 | | determination of
the amount of the required city contributions, |
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| 1 | | and certify the results
thereof to the city council.
| 2 | | (c) In respect to employees of the city who are transferred | 3 | | to the
employment of a park district by virtue of the "Exchange | 4 | | of Functions
Act of 1957", the corporate authorities of the | 5 | | park district shall
annually levy a tax upon all the taxable | 6 | | property in the park district
at such rate per cent of the | 7 | | value of such property, as equalized or
assessed by the | 8 | | Department of Revenue, as shall be
sufficient, when added to | 9 | | the amounts deducted from their salaries and
otherwise | 10 | | contributed by them to provide the benefits to which they and
| 11 | | their dependents and beneficiaries are entitled under this | 12 | | Article. The city
shall not levy a tax hereunder in respect to | 13 | | such employees.
| 14 | | The tax so levied by the park district shall be in addition | 15 | | to and
exclusive of all other taxes authorized to be levied by | 16 | | the park
district for corporate, annuity fund, or other | 17 | | purposes. The county
clerk of the county in which the park | 18 | | district is located, in reducing
any tax levied under the | 19 | | provisions of any act concerning the levy and
extension of | 20 | | taxes shall not consider such tax as part of the general
tax | 21 | | levy for park purposes, and shall not include the same in any
| 22 | | limitation of the per cent of the assessed valuation upon which | 23 | | taxes
are required to be extended for the park district. The | 24 | | proceeds of the
tax levied by the park district, upon receipt | 25 | | by the district, shall be
immediately paid over to the city | 26 | | treasurer of the city for the uses and
purposes of the fund.
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| 1 | | The various sums to be contributed by the city and park | 2 | | district and
allocated for the purposes of this Article, and | 3 | | any interest to be
contributed by the city, shall be derived | 4 | | from the revenue from the taxes
authorized in this Section or | 5 | | otherwise as expressly provided
in this Section.
| 6 | | If it is not possible or practicable for the city to make
| 7 | | contributions for age and service annuity and widow's annuity | 8 | | at the
same time that employee contributions are made for such
| 9 | | purposes, such city contributions shall be construed to be due | 10 | | and
payable as of the end of the fiscal year for which the tax | 11 | | is levied and
shall accrue thereafter with interest at the | 12 | | effective rate until paid.
| 13 | | (d) With respect to employees whose wages are funded as | 14 | | participants
under the Comprehensive Employment and Training | 15 | | Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 16 | | 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 17 | | subsequent to October 1, 1978, and in instances
where the board | 18 | | has elected to establish a manpower program reserve, the
board | 19 | | shall compute the amounts necessary to be credited to the | 20 | | manpower
program reserves established and maintained as herein | 21 | | provided, and
shall make a periodic determination of the amount | 22 | | of required
contributions from the City to the reserve to be | 23 | | reimbursed by the
federal government in accordance with rules | 24 | | and regulations established
by the Secretary of the United | 25 | | States Department of Labor or his
designee, and certify the | 26 | | results thereof to the City Council. Any such
amounts shall |
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| 1 | | become a credit to the City and will be used to reduce the
| 2 | | amount which the City would otherwise contribute during | 3 | | succeeding years
for all employees.
| 4 | | (e) In lieu of establishing a manpower program reserve with | 5 | | respect
to employees whose wages are funded as participants | 6 | | under the
Comprehensive Employment and Training Act of 1973, as | 7 | | authorized by
subsection (d), the board may elect to establish | 8 | | a special municipality
contribution rate for all such | 9 | | employees. If this option is elected, the
City shall contribute | 10 | | to the Fund from federal funds provided under the
Comprehensive | 11 | | Employment and Training Act program at the special rate so
| 12 | | established and such contributions shall become a credit to the | 13 | | City and
be used to reduce the amount which the City would | 14 | | otherwise contribute
during succeeding years for all | 15 | | employees.
| 16 | | (f) In lieu of levying all or a portion of the tax required | 17 | | under this
Section in any year, the city may deposit with the | 18 | | city treasurer no later than
March 1 of that year for the | 19 | | benefit of the fund, to be held in accordance with
this | 20 | | Article, an amount that, together with the taxes levied under | 21 | | this Section
for that year, is not less than the amount of the | 22 | | city contributions for that
year as certified by the board to | 23 | | the city council. The deposit may be derived
from any source | 24 | | legally available for that purpose, including, but not limited
| 25 | | to, the proceeds of city borrowings. The making of a deposit | 26 | | shall satisfy
fully the requirements of this Section for that |
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| 1 | | year to the extent of the
amounts so deposited. Amounts | 2 | | deposited under this subsection may be used by
the fund for any | 3 | | of the purposes for which the proceeds of the tax levied by
the | 4 | | city under this Section may be used, including the payment of | 5 | | any amount
that is otherwise required by this Article to be | 6 | | paid from the proceeds of that
tax.
| 7 | | (Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98; | 8 | | 90-766, eff.
8-14-98.)
| 9 | | (40 ILCS 5/8-173.1 new) | 10 | | Sec. 8-173.1. Funding Obligation. | 11 | | (a) Beginning January 1, 2015, the city shall be obligated | 12 | | to contribute to the Fund in each fiscal year an amount not | 13 | | less than the amount determined annually under subsection (a-5) | 14 | | of Section 8-173 of this Code. Notwithstanding any other | 15 | | provision of law, if the city fails to pay the amount | 16 | | guaranteed under this Section on or before December 31 of the | 17 | | year in which such amount is due, the retirement board may | 18 | | bring a mandamus action in the Circuit Court of Cook County to | 19 | | compel the city to make the required payment, irrespective of | 20 | | other remedies that may be available to the Fund. The | 21 | | obligations and causes of action created under this Section | 22 | | shall be in addition to any other right or remedy otherwise | 23 | | accorded by common law or State or federal law, and nothing in | 24 | | this Section shall be construed to deny, abrogate, impair, or | 25 | | waive any such common law or statutory right or remedy. |
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| 1 | | (b) In ordering the city to make the required payment, the | 2 | | court may order a reasonable payment schedule to enable the | 3 | | city to make the required payment without significantly | 4 | | imperiling the public health, safety, or welfare. Any payments | 5 | | required to be made by the city pursuant to this Section are | 6 | | expressly subordinated to the payment of the principal, | 7 | | interest, premium, if any, and other payments on or related to | 8 | | any bonded debt obligation of the city, either currently | 9 | | outstanding or to be issued, for which the source of repayment | 10 | | or security thereon is derived directly or indirectly from any | 11 | | funds collected or received by the city or collected or | 12 | | received on behalf of the city. Payments on such bonded | 13 | | obligations include any statutory fund transfers or other | 14 | | prefunding mechanisms or formulas set forth, now or hereafter, | 15 | | in State law, city ordinance, or bond indentures, into debt | 16 | | service funds or accounts of the city related to such bonded | 17 | | obligations, consistent with the payment schedules associated | 18 | | with such obligations.
| 19 | | (40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
| 20 | | Sec. 8-174. Contributions for age and service annuities for | 21 | | present
employees and future entrants.
| 22 | | (a) Beginning on the effective date and prior to July 1, | 23 | | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | 24 | | 1, 1953, 5%; and
beginning July 1, 1953, and prior to January | 25 | | 1, 1972, 6%; and beginning
January 1, 1972, 6.5%; and beginning |
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| 1 | | January 1, 2015, and prior to January 1, 2016, 7.0%; and | 2 | | beginning January 1, 2016, and prior to January 1, 2017, 7.5%; | 3 | | and, beginning January 1, 2017, and prior to January 1, 2018, | 4 | | 8.0%; and beginning January 1, 2018, and prior to January 1, | 5 | | 2019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0% | 6 | | 6-1/2% of each payment of the salary of each present
employee | 7 | | and future entrant shall be contributed to the fund as a
| 8 | | deduction from salary for age and service annuity ; provided, | 9 | | however, that beginning with the first pay period on or after | 10 | | the date when the funded ratio of the Fund is first determined | 11 | | to have reached the 90% funding goal set forth in subsection | 12 | | (a-5) of Section 8-173, and each pay period thereafter for as | 13 | | long as the Fund maintains a funding ratio of 90% or more, | 14 | | employee contributions shall be 7.75% of salary for the age and | 15 | | service annuity. If the funding ratio falls below 90%, then | 16 | | employee contributions for the age and service annuity shall | 17 | | revert to 9.0% of salary until such time as the Fund once again | 18 | | is determined to have reached a funding ratio of at least 90%, | 19 | | at which time employee contributions of 7.75% shall resume for | 20 | | the age and service annuity .
| 21 | | Notwithstanding Section 1-103.1, the changes to this | 22 | | Section made by this amendatory Act of the 98th General | 23 | | Assembly apply regardless of whether the employee was in active | 24 | | service on or after the effective date of this amendatory Act. | 25 | | Such deductions beginning on the effective date and prior | 26 | | to July 1,
1947 shall be made for a future entrant while he is |
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| 1 | | in the service until
he attains age 65 and for a present | 2 | | employee while he is in the service
until the amount so | 3 | | deducted from his salary with the amount deducted
from his | 4 | | salary or paid by him according to law to any municipal pension
| 5 | | fund in force on the effective date with interest on both such | 6 | | amounts
at 4% per annum equals the sum that would have been to | 7 | | his credit from
sums deducted from his salary if deductions at | 8 | | the rate herein stated
had been made during his entire service | 9 | | until he attained age 65 with
interest at 4% per annum for the | 10 | | period subsequent to his attainment of
age 65. Such deductions | 11 | | beginning July 1, 1947 shall be made and
continued for | 12 | | employees while in the service.
| 13 | | (b) Concurrently with each employee contribution beginning | 14 | | on the
effective date and prior to July 1, 1947 the city shall | 15 | | contribute 5
3/4%; and beginning on July 1, 1947 and prior to | 16 | | July 1, 1953, 7%; and
beginning July 1, 1953, 6% of each | 17 | | payment of such salary until the
employee attains age 65. | 18 | | Notwithstanding any provision of this subsection
(b) to the | 19 | | contrary, the city shall not make a contribution for any credit
| 20 | | established by an employee under subsection (b) of Section | 21 | | 8-138.4.
| 22 | | (c) Each employee contribution made prior to the date the | 23 | | age and
service annuity for an employee is fixed and each | 24 | | corresponding city
contribution shall be credited to the | 25 | | employee and allocated to the
account of the employee for whose | 26 | | benefit it is made.
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| 1 | | (Source: P.A. 93-654, eff. 1-16-04.)
| 2 | | (40 ILCS 5/8-174.2 new) | 3 | | Sec. 8-174.2. Use of contributions for health care | 4 | | subsidies. Except as may be required pursuant to Sections | 5 | | 8-164.1 and 8-164.2 of this Code, the Fund shall not use any | 6 | | contribution received by the Fund under this Article to provide | 7 | | a subsidy for the cost of participation in a retiree health | 8 | | care program.
| 9 | | (40 ILCS 5/11-134.1)
(from Ch. 108 1/2, par. 11-134.1)
| 10 | | Sec. 11-134.1. Automatic increase in annuity.
| 11 | | (a) An employee who retired or retires from service after | 12 | | December 31,
1963, and before January 1, 1987, having attained | 13 | | age 60 or more,
shall, in the month of January of
the year | 14 | | following the year in which the first anniversary of retirement
| 15 | | occurs, have the amount of his then fixed and payable monthly | 16 | | annuity
increased by 1 1/2%, and such first fixed annuity as | 17 | | granted at
retirement increased by a further 1 1/2% in January | 18 | | of each year
thereafter. Beginning with January of the year | 19 | | 1972, such increases
shall be at the rate of 2% in lieu of the | 20 | | aforesaid specified 1 1/2%.
Beginning January, 1984, such | 21 | | increases shall be at the rate of 3%.
Beginning in January of | 22 | | 1999, such increases shall be at the rate of
3% of the | 23 | | currently payable monthly annuity, including any increases
| 24 | | previously granted under this Article. An employee who retires |
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| 1 | | on annuity
after December 31, 1963 and before January 1, 1987, | 2 | | but prior to age
60, shall receive such increases beginning | 3 | | with January of the year
immediately following the year in | 4 | | which he attains the age of 60 years.
| 5 | | An employee who retires from service on or after January 1, | 6 | | 1987 shall,
upon the first annuity payment date following the | 7 | | first anniversary of the
date of retirement, or upon the first | 8 | | annuity payment date following
attainment of age 60, whichever | 9 | | occurs later, have his then fixed and
payable monthly annuity | 10 | | increased by 3%, and such annuity shall be
increased by an | 11 | | additional 3% of the original fixed annuity on the same
date | 12 | | each year thereafter.
Beginning in January of 1999, such | 13 | | increases shall be at the rate of 3% of the
currently payable | 14 | | monthly annuity, including any increases previously granted
| 15 | | under this Article.
| 16 | | (a-5) Notwithstanding the provisions of subsection (a), | 17 | | upon the first
annuity payment date following (1) the third | 18 | | anniversary of retirement, (2)
the attainment of age 53, or (3) | 19 | | January 1, 2002,
whichever occurs latest, the monthly annuity | 20 | | of an employee who retires on
annuity prior to the attainment | 21 | | of age 60 and has not received an
increase under subsection (a) | 22 | | shall be increased by 3%, and the
annuity shall be increased by | 23 | | an additional 3% of the current payable monthly
annuity, | 24 | | including any
increases previously granted under this
Article, | 25 | | on the same date each year thereafter. The increases provided | 26 | | under
this subsection are in lieu of the increases provided in |
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| 1 | | subsection (a).
| 2 | | (a-6) Notwithstanding the provisions of subsections (a) | 3 | | and (a-5), for
all calendar years following the year in which | 4 | | this amendatory Act of the 93rd
General Assembly takes effect, | 5 | | an increase in annuity under this Section that
would otherwise | 6 | | take effect at any time during the year shall instead take
| 7 | | effect in January of that year.
| 8 | | (b) Subsections (a), (a-5), and (a-6) are not applicable to
| 9 | | an employee retiring and receiving a term annuity, as defined | 10 | | in this Article,
nor to any otherwise
qualified employee who | 11 | | retires before he shall have made employee contributions
(at | 12 | | the 1/2 of 1% rate as hereinafter provided) for the purposes of | 13 | | this
additional annuity for not less than the equivalent of one | 14 | | full year. Such
employee, however, shall make arrangement to | 15 | | pay to the fund a balance of such
1/2 of 1% contributions, | 16 | | based on his final salary, as will bring such 1/2 of
1% | 17 | | contributions, computed without interest, to the equivalent of | 18 | | or completion
of one year's contributions.
| 19 | | Beginning with the month of January, 1964, each employee | 20 | | shall contribute
by means of salary deductions 1/2 of 1% of | 21 | | each salary payment, concurrently
with and in addition to the | 22 | | employee contributions otherwise made for annuity
purposes.
| 23 | | Each such additional employee contribution shall be | 24 | | credited to an
account in the prior service annuity reserve, to | 25 | | be used, together with
city contributions, to defray the cost | 26 | | of the specified annuity
increments. Any balance as of the |
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| 1 | | beginning of each calendar year
existing in such account shall | 2 | | be credited with interest at the rate of
3% per annum.
| 3 | | Such employee contributions shall not be subject to refund, | 4 | | except to
an employee who resigns or is discharged and applies | 5 | | for refund under
this Article, and also in cases where a term | 6 | | annuity becomes payable.
| 7 | | In such cases the employee contributions shall be refunded | 8 | | him,
without interest, and charged to the aforementioned | 9 | | account in the prior
service annuity reserve.
| 10 | | (b-5) Notwithstanding any provision of this Section to the | 11 | | contrary: | 12 | | (1) A person retiring after the effective date of this | 13 | | amendatory Act of the 98th General Assembly shall not be | 14 | | eligible for an annual increase under this Section until | 15 | | one full year after the date on which such annual increase | 16 | | otherwise would take effect under this Section. | 17 | | (2) Except for persons eligible under subdivision (4) | 18 | | of this subsection for a minimum annual increase, there | 19 | | shall be no annual increase under this Section in years | 20 | | 2017, 2019, and 2025. | 21 | | (3) In all other years, beginning January 1, 2015, the | 22 | | Fund shall pay an annual increase to persons eligible to | 23 | | receive one under this Section, in lieu of any other annual | 24 | | increase provided under this Section (but subject to the | 25 | | minimum increase under subdivision (4) of this subsection, | 26 | | if applicable) in an amount equal to the lesser of 3% or |
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| 1 | | one-half the annual unadjusted percentage increase (but | 2 | | not less than zero) in the consumer price index-u for the | 3 | | 12 months ending with the September preceding each November | 4 | | 1, of the person's last annual annuity amount prior to | 5 | | January 1, 2015, or if the person was not yet receiving an | 6 | | annuity on that date, then this calculation shall be based | 7 | | on his or her originally granted annual annuity amount. | 8 | | For the purposes of this Section, "consumer price | 9 | | index-u" means the index published by the Bureau of Labor | 10 | | Statistics of the United States Department of Labor that | 11 | | measures the average change in prices of goods and services | 12 | | purchased by all urban consumers, United States city | 13 | | average, all items, 1982-84 = 100. | 14 | | (4) A person is eligible under this subdivision (4) to | 15 | | receive a minimum annual increase in a particular year if: | 16 | | (i) the person is otherwise eligible to receive an annual | 17 | | increase under subdivision (3) of this subsection, and (ii) | 18 | | the annual amount of the annuity payable at the time of the | 19 | | increase, including all increases previously received, is | 20 | | less than $22,000. | 21 | | Beginning January 1, 2015, for a person who is eligible | 22 | | under this subdivision (4) to receive a minimum annual | 23 | | increase in the year 2017, 2019, or 2025, the annual | 24 | | increase shall be 1% of the person's last annual annuity | 25 | | amount prior to January 1, 2015, or if the person was not | 26 | | yet receiving an annuity on that date, then 1% of his or |
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| 1 | | her originally granted annual annuity amount. | 2 | | Beginning January 1, 2015, for any other year in which | 3 | | a person is eligible under this subdivision (4) to receive | 4 | | a minimum annual increase, the annual increase shall be as | 5 | | specified under subdivision (3), but not less than 1% of | 6 | | the person's last annual annuity amount prior to January 1, | 7 | | 2015 or, if the person was not yet receiving an annuity on | 8 | | that date, then not less than 1% of his or her originally | 9 | | granted annual annuity amount. | 10 | | For the purposes of Section 1-103.1, this subsection (b-5) | 11 | | is applicable without regard to whether the employee was in | 12 | | active service on or after the effective date of this | 13 | | amendatory Act of the 98th General Assembly. This subsection | 14 | | (b-5) applies to any former employee who on or after the | 15 | | effective date of this amendatory Act of the 98th General | 16 | | Assembly is receiving a retirement annuity and is eligible for | 17 | | an automatic annual increase under this Section. | 18 | | (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02; | 19 | | 93-654, eff. 1-16-04.)
| 20 | | (40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
| 21 | | Sec. 11-134.3. Automatic increases in annuity for certain | 22 | | heretofore retired
participants. | 23 | | (a) A retired employee who (i) (a) is receiving annuity | 24 | | based on a
service credit of 20 or more years regardless of age | 25 | | at retirement or based on
a service credit of 15 or more years |
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| 1 | | with retirement at age 55 or over, and
(ii) (b) does not | 2 | | qualify for the automatic increases in annuity provided for in
| 3 | | Section 11-134.1 of this Article, and (iii) (c) elects to make | 4 | | a contribution to the
Fund at a time and manner prescribed by | 5 | | the Retirement Board, of a sum
equal to 1% of the amount of | 6 | | final monthly salary times the number of full
years of service | 7 | | on which the annuity was based in those cases where the
annuity | 8 | | was computed on the money purchase formula, and in those cases | 9 | | in
which the annuity was computed under the minimum annuity | 10 | | formula provisions
of this Article a sum equal to 1% of the | 11 | | average monthly salary on which
the annuity was based times | 12 | | such number of full years of service, shall
have his original | 13 | | fixed and payable monthly amount of annuity increased in
| 14 | | January of the year following the year in which he attains the | 15 | | age of 65
years, if such age of 65 years is attained in the year | 16 | | 1969 or later, by an
amount equal to 1 1/2%, and by an equal | 17 | | additional 1 1/2% in January of
each year thereafter. Beginning | 18 | | with January of the year 1972, such
increases shall be at the | 19 | | rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning | 20 | | January, 1984, such increases shall be at the rate of 3%.
| 21 | | Beginning in January of 1999, such increases shall be at the | 22 | | rate of
3% of the currently payable monthly annuity, including | 23 | | any increases previously
granted under this Article.
| 24 | | In those cases in which the retired employee receiving | 25 | | annuity has
attained the age of 66 or more years in the year | 26 | | 1969, he shall have such
annuity increased in January of the |
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| 1 | | year 1970 by an amount equal to 1 1/2%
multiplied by the number | 2 | | equal to the number of months of January elapsing
from and | 3 | | including January of the year immediately following the year he
| 4 | | attained the age of 65 years if retired at or prior to age 65, | 5 | | or from and
including January of the year immediately following | 6 | | the year of retirement
if retired at an age greater than 65 | 7 | | years, to and including January of the
year 1970, and by an | 8 | | equal additional 1 1/2% in January of each year
thereafter. | 9 | | Beginning with January of the year 1972, such increases shall
| 10 | | be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. | 11 | | Beginning
January, 1984, such increases shall be at the rate of | 12 | | 3%.
Beginning in January of 1999, such increases shall be at | 13 | | the rate of
3% of the currently payable monthly annuity, | 14 | | including any increases previously
granted under this Article.
| 15 | | (b) To defray the annual cost of such increases, the annual | 16 | | interest income
of the Fund, accruing from investments held by | 17 | | the Fund, exclusive of gains
or losses on sales or exchanges of | 18 | | assets during the year, over and above
4% a year, shall be used | 19 | | to the extent necessary and available to finance
the cost of | 20 | | such increases for the following year, and such amount shall be
| 21 | | transferred as of the end of each year, beginning with the year | 22 | | 1969, to a
Fund account designated as the Supplementary Payment | 23 | | Reserve from the
Investment and Interest Reserve set forth in | 24 | | Sec. 11-210. The sums
contributed by annuitants as provided for | 25 | | in this Section shall also be
placed in the aforesaid | 26 | | Supplementary Payment Reserve and shall be applied
for and used |
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| 1 | | for the purposes of such Fund account, together with the
| 2 | | aforesaid interest.
| 3 | | In the event the monies in the Supplementary Payment | 4 | | Reserve in any year
arising from: (1) the available interest | 5 | | income as defined hereinbefore and
accruing in the preceding | 6 | | year above 4% a year and (2) the contributions by
retired | 7 | | persons, as set forth hereinbefore, are insufficient to make | 8 | | the
total payments to all persons estimated to be entitled to | 9 | | the annuity
increases specified hereinbefore, then (3) any | 10 | | interest earnings over 4% a
year beginning with the year 1969 | 11 | | which were not previously used to finance
such increases and | 12 | | which were transferred to the Prior Service Annuity
Reserve may | 13 | | be used to the extent necessary and available to provide
| 14 | | sufficient funds to finance such increases for the current | 15 | | year, and such
sums shall be transferred from the Prior Service | 16 | | Annuity Reserve.
| 17 | | In the event the total monies available in the | 18 | | Supplementary Payment
Reserve from the preceding indicated | 19 | | sources are insufficient to make the
total payments to all | 20 | | persons entitled to such increases for the year, a
| 21 | | proportionate amount computed as the ratio of the monies | 22 | | available to the
total of the total payments for that year | 23 | | shall be paid to each person for
that year.
| 24 | | The Fund shall be obligated for the payment of the | 25 | | increases in annuity
as provided for in this Section only to | 26 | | the extent that the assets for such
purpose, as specified |
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| 1 | | herein, are available.
| 2 | | (b-5) Notwithstanding any provision of this Section to the | 3 | | contrary: | 4 | | (1) Except for persons eligible under subdivision (3) | 5 | | of this subsection for a minimum annual increase, there | 6 | | shall be no annual increase under this Section in years | 7 | | 2017, 2019, and 2025. | 8 | | (2) In all other years, beginning January 1, 2015, the | 9 | | Fund shall pay an annual increase to persons eligible to | 10 | | receive one under this Section, in lieu of any other annual | 11 | | increase provided under this Section (but subject to the | 12 | | minimum increase under subdivision (3) of this subsection, | 13 | | if applicable) in an amount equal to the lesser of 3% or | 14 | | one-half the annual unadjusted percentage increase (but | 15 | | not less than zero) in the consumer price index-u for the | 16 | | 12 months ending with the September preceding each November | 17 | | 1, of the person's last annual annuity amount prior to | 18 | | January 1, 2015. | 19 | | For the purposes of this Section, "consumer price | 20 | | index-u" means the index published by the Bureau of Labor | 21 | | Statistics of the United States Department of Labor that | 22 | | measures the average change in prices of goods and services | 23 | | purchased by all urban consumers, United States city | 24 | | average, all items, 1982-84 = 100. | 25 | | (3) A person is eligible under this subdivision (3) to | 26 | | receive a minimum annual increase in a particular year if: |
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| 1 | | (i) the person is otherwise eligible to receive an annual | 2 | | increase under subdivision (2) of this subsection, and (ii) | 3 | | the annual amount of the annuity payable at the time of the | 4 | | increase, including all increases previously received, is | 5 | | less than $22,000. | 6 | | Beginning January 1, 2015, for a person who is eligible | 7 | | under this subdivision (3) to receive a minimum annual | 8 | | increase in the year 2017, 2019, or 2025, the annual | 9 | | increase shall be 1% of the person's last annual annuity | 10 | | amount prior to January 1, 2015. | 11 | | Beginning January 1, 2015, for any other year in which | 12 | | a person is eligible under this subdivision (3) to receive | 13 | | a minimum annual increase, the annual increase shall be as | 14 | | specified under subdivision (2), but not less than 1% of | 15 | | the person's last annual annuity amount prior to January 1, | 16 | | 2015. | 17 | | For the purposes of Section 1-103.1, this subsection (b-5) | 18 | | is applicable without regard to whether the employee was in | 19 | | active service on or after the effective date of this | 20 | | amendatory Act of the 98th General Assembly. This subsection | 21 | | (b-5) applies to any former employee who on or after the | 22 | | effective date of this amendatory Act of the 98th General | 23 | | Assembly is receiving a retirement annuity and is eligible for | 24 | | an automatic annual increase under this Section. | 25 | | (Source: P.A. 90-766, eff. 8-14-98.)
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| 1 | | (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
| 2 | | Sec. 11-169. Financing; tax levy.
| 3 | | (a) Except as provided in subsection (f) of this Section, | 4 | | the city
council of the city shall levy a tax annually upon all | 5 | | taxable property in the
city at the rate that will produce a | 6 | | sum which, when added to the amounts
deducted from the salaries | 7 | | of the employees or otherwise contributed by them
and the | 8 | | amounts deposited under subsection (f), will be sufficient for | 9 | | the
requirements of this Article. For the years prior to the | 10 | | year 1950 the tax
rate shall be as provided for under "The 1935 | 11 | | Act". Beginning with the year
1950 to and including the year | 12 | | 1969 such tax shall be not more than .036%
annually of the | 13 | | value, as equalized or assessed by the Department of Revenue,
| 14 | | of all taxable property within such city. Beginning with the | 15 | | year 1970 and
each year thereafter through levy year 2014, the | 16 | | city shall levy a tax annually at a rate on the dollar
of the | 17 | | value, as equalized or assessed by the Department of Revenue
of | 18 | | all taxable property within such city that will
produce, when | 19 | | extended, not to exceed an amount equal to the total
amount of | 20 | | contributions by the employees to the fund
made in the calendar | 21 | | year 2 years prior to the year for which the annual
applicable | 22 | | tax is levied, multiplied by 1.1 for the years 1970, 1971 and
| 23 | | 1972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235 | 24 | | for the
year 1975; 1.280 for the year 1976; 1.325 for the year | 25 | | 1977; 1.370
for the years 1978 through 1998; and 1.000 for the | 26 | | year 1999
and for each year thereafter through levy year 2014. |
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| 1 | | Beginning in levy year 2015, and in each year thereafter, the | 2 | | levy shall not exceed the amount of the city's total required | 3 | | contribution to the Fund for the next payment year, as | 4 | | determined under subsection (a-5). For the purposes of this | 5 | | Section, the payment year is the year immediately following the | 6 | | levy year .
| 7 | | The tax shall be levied and collected in like manner with | 8 | | the general
taxes of the city, and shall be exclusive of and in | 9 | | addition to the
amount of tax the city is now or may hereafter | 10 | | be authorized to levy for
general purposes under any laws which | 11 | | may limit the amount of tax which
the city may levy for general | 12 | | purposes. The county clerk of the county
in which the city is | 13 | | located, in reducing tax levies under the
provisions of any Act | 14 | | concerning the levy and extension of taxes, shall
not consider | 15 | | the tax herein provided for as a part of the general tax
levy | 16 | | for city purposes, and shall not include the same within any
| 17 | | limitation of the per cent of the assessed valuation upon which | 18 | | taxes
are required to be extended for such city.
| 19 | | Revenues derived from such tax shall be paid to the city | 20 | | treasurer of
the city as collected and held by the city | 21 | | treasurer him for the benefit of the fund.
| 22 | | If the payments on account of taxes are insufficient during | 23 | | any year
to meet the requirements of this Article, the city may | 24 | | issue tax
anticipation warrants against the current tax levy.
| 25 | | The city may continue to use other lawfully available funds | 26 | | in lieu of all or part of the levy, as provided under |
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| 1 | | subsection (f) of this Section. | 2 | | (a-5) Beginning in payment year 2016, the city's required | 3 | | annual contribution to the Fund shall be the lesser of: | 4 | | (i) (I) for payment years 2016 through 2055, the annual | 5 | | amount determined by the Fund to be equal to the greater of | 6 | | $0, or the sum of (1) the City's portion of the projected | 7 | | normal cost for that fiscal year, plus (2) an amount | 8 | | determined on a level percentage of applicable employee | 9 | | payroll basis (reflecting any limits on individual | 10 | | participants' pay that apply for benefit and contribution | 11 | | purposes under this plan) that is sufficient to bring the | 12 | | total actuarial assets of the Fund up to 90% of the total | 13 | | actuarial liabilities of the Fund by the end of 2055. (II) | 14 | | For payment years after 2055, the annual amount determined | 15 | | by the Fund to be equal to the amount, if any, needed to | 16 | | bring the total actuarial assets of the Fund up to 90% of | 17 | | the total actuarial liabilities of the Fund as of the end | 18 | | of the year. In making the determinations under both (I) | 19 | | and (II), the actuarial calculations shall be determined | 20 | | under the entry age normal actuarial cost method, and any | 21 | | actuarial gains or losses from investment return incurred | 22 | | in a fiscal year shall be recognized in equal annual | 23 | | amounts over the 5-year period following the fiscal year; | 24 | | or | 25 | | (ii) for payment year 2016, 1.60 times the total amount | 26 | | of contributions made by or on behalf of employees to the |
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| 1 | | Fund for annuity purposes in the calendar year 2013; for | 2 | | payment year 2017, 1.90 times the total amount of | 3 | | contributions made by or on behalf of employees to the Fund | 4 | | for annuity purposes in the calendar year 2014; for payment | 5 | | year 2018, 2.20 times the total amount of contributions | 6 | | made by or on behalf of employees to the Fund for annuity | 7 | | purposes in the calendar year 2015; for payment year 2019, | 8 | | 2.50 times the total amount of contributions made by or on | 9 | | behalf of employees to the Fund for annuity purposes in the | 10 | | calendar year 2016; for payment year 2020, 2.80 times the | 11 | | total amount of contributions made by or on behalf of | 12 | | employees to the Fund for annuity purposes in the calendar | 13 | | year 2017. | 14 | | However, beginning in the earlier of payment year 2021 or the | 15 | | first payment year in which the annual contribution amount | 16 | | calculated under subdivision (i) is less than the contribution | 17 | | amount calculated under subdivision (ii), and in each year | 18 | | thereafter, the city's required annual contribution to the Fund | 19 | | shall be determined under subdivision (i). | 20 | | The city's required annual contribution to the Fund may be | 21 | | paid with any available funds and shall be paid by the city to | 22 | | the city treasurer. The city treasurer shall collect and hold | 23 | | those funds for the benefit of the Fund. | 24 | | (a-10) If the city fails to transmit to the Fund | 25 | | contributions required of it under this Article by December | 26 | | 31st of the year in which such contributions are due, the Fund |
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| 1 | | may, after giving notice to the city, certify to the State | 2 | | Comptroller the amounts of the delinquent payments, and the | 3 | | Comptroller must, beginning in payment year 2016, deduct and | 4 | | deposit into the Fund the certified amounts or a portion of | 5 | | those amounts from the following proportions of grants of State | 6 | | funds to the city: | 7 | | (1) in payment year 2016, one-third of the total
amount | 8 | | of any grants of State funds to the city; | 9 | | (2) in payment year 2017, two-thirds of the total
| 10 | | amount of any grants of State funds to the city; and | 11 | | (3) in payment year 2018 and each payment year | 12 | | thereafter, the total
amount of any grants of State funds | 13 | | to the city. | 14 | | The State Comptroller may not deduct from any grants of | 15 | | State funds to the city more than the amount of delinquent | 16 | | payments certified to the State Comptroller by the Fund. | 17 | | (b) On or before July 1 January 10 , annually, the board | 18 | | shall certify to notify the
city council the annual amounts | 19 | | required under of the requirement of this Article , for which | 20 | | that the tax herein
provided may shall be levied for the | 21 | | following that current year. The board shall compute
the | 22 | | amounts necessary for the purposes of this fund to be credited | 23 | | to
the reserves established and maintained as herein provided, | 24 | | and shall
make an annual determination of the amount of the | 25 | | required city
contributions; and certify the results thereof to | 26 | | the city council.
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| 1 | | (c) In respect to employees of the city who are transferred | 2 | | to the
employment of a park district by virtue of "Exchange of | 3 | | Functions Act of
1957" the corporate authorities of the park | 4 | | district shall annually levy
a tax upon all the taxable | 5 | | property in the park district at such rate
per cent of the | 6 | | value of such property, as equalized or assessed by the
| 7 | | Department of Revenue, as shall be sufficient, when
added to | 8 | | the amounts deducted from their salaries and
otherwise | 9 | | contributed by them, to provide the benefits to which they and
| 10 | | their dependents and beneficiaries are entitled under this | 11 | | Article. The
city shall not levy a tax hereunder in respect to | 12 | | such employees.
| 13 | | The tax so levied by the park district shall be in addition | 14 | | to and
exclusive of all other taxes authorized to be levied by | 15 | | the park
district for corporate, annuity fund, or other | 16 | | purposes. The county
clerk of the county in which the park | 17 | | district is located, in reducing
any tax levied under the | 18 | | provisions of any Act concerning the levy and
extension of | 19 | | taxes shall not consider such tax as part of the general
tax | 20 | | levy for park purposes, and shall not include the same in any
| 21 | | limitation of the per cent of the assessed valuation upon which | 22 | | taxes
are required to be extended for the park district. The | 23 | | proceeds of the
tax levied by the park district, upon receipt | 24 | | by the district, shall be
immediately paid over to the city | 25 | | treasurer of the city for the uses and
purposes of the fund.
| 26 | | The various sums to be contributed by the city and |
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| 1 | | allocated for the
purposes of this Article, and any interest to | 2 | | be contributed by the city,
shall be taken from the revenue | 3 | | derived from the taxes authorized in this
Section, and no money | 4 | | of such city derived from any source other than
the levy and | 5 | | collection of those taxes or the sale of tax
anticipation | 6 | | warrants in accordance with the provisions of this Article | 7 | | shall
be used to provide revenue for this Article, except as | 8 | | expressly provided in
this Section.
| 9 | | If it is not possible for the city to make contributions | 10 | | for age and
service annuity and widow's annuity concurrently | 11 | | with the employee's
contributions made for such purposes, such | 12 | | city shall
make such contributions as soon as possible and | 13 | | practicable thereafter
with interest thereon at the effective | 14 | | rate to the time they shall be
made.
| 15 | | (d) With respect to employees whose wages are funded as | 16 | | participants
under the Comprehensive Employment and Training | 17 | | Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 18 | | 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 19 | | subsequent to October 1, 1978, and in instances
where the board | 20 | | has elected to establish a manpower program reserve, the
board | 21 | | shall compute the amounts necessary to be credited to the | 22 | | manpower
program reserves established and maintained as herein | 23 | | provided, and
shall make a periodic determination of the amount | 24 | | of required
contributions from the City to the reserve to be | 25 | | reimbursed by the
federal government in accordance with rules | 26 | | and regulations established
by the Secretary of the United |
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| 1 | | States Department of Labor or his
designee, and certify the | 2 | | results thereof to the City Council. Any such
amounts shall | 3 | | become a credit to the City and will be used to reduce the
| 4 | | amount which the City would otherwise contribute during | 5 | | succeeding years
for all employees.
| 6 | | (e) In lieu of establishing a manpower program reserve with | 7 | | respect
to employees whose wages are funded as participants | 8 | | under the
Comprehensive Employment and Training Act of 1973, as | 9 | | authorized by
subsection (d), the board may elect to establish | 10 | | a special municipality
contribution rate for all such | 11 | | employees. If this option is elected,
the City shall contribute | 12 | | to the Fund from federal funds provided under
the Comprehensive | 13 | | Employment and Training Act program at the special
rate so | 14 | | established and such contributions shall become a credit to the
| 15 | | City and be used to reduce the amount which the City would | 16 | | otherwise
contribute during succeeding years for all | 17 | | employees.
| 18 | | (f) In lieu of levying all or a portion of the tax required | 19 | | under this
Section in any year, the city may deposit with the | 20 | | city treasurer no later than
March 1 of that year for the | 21 | | benefit of the fund, to be held in accordance with
this | 22 | | Article, an amount that, together with the taxes levied under | 23 | | this Section
for that year, is not less than the amount of the | 24 | | city contributions for that
year as certified by the board to | 25 | | the city council. The deposit may be derived
from any source | 26 | | legally available for that purpose, including, but not limited
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| 1 | | to, the proceeds of city borrowings. The making of a deposit | 2 | | shall satisfy
fully the requirements of this Section for that | 3 | | year to the extent of the
amounts so deposited. Amounts | 4 | | deposited under this subsection may be used by
the fund for any | 5 | | of the purposes for which the proceeds of the tax levied by
the | 6 | | city under this Section may be used, including the payment of | 7 | | any amount
that is otherwise required by this Article to be | 8 | | paid from the proceeds of that
tax.
| 9 | | (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
| 10 | | (40 ILCS 5/11-169.1 new) | 11 | | Sec. 11-169.1. Funding Obligation. | 12 | | (a) Beginning January 1, 2015, the city shall be obligated | 13 | | to contribute to the Fund in each fiscal year an amount not | 14 | | less than the amount determined annually under subsection (a-5) | 15 | | of Section 11-169 of this Code. Notwithstanding any other | 16 | | provision of law, if the city fails to pay the amount | 17 | | guaranteed under this Section on or before December 31 of the | 18 | | year in which such amount is due, the retirement board may | 19 | | bring a mandamus action in the Circuit Court of Cook County to | 20 | | compel the city to make the required payment, irrespective of | 21 | | other remedies that may be available to the Fund. The | 22 | | obligations and causes of action created under this Section | 23 | | shall be in addition to any other right or remedy otherwise | 24 | | accorded by common law or State or federal law, and nothing in | 25 | | this Section shall be construed to deny, abrogate, impair, or |
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| 1 | | waive any such common law or statutory right or remedy. | 2 | | (b) In ordering the city to make the required payment, the | 3 | | court may order a reasonable payment schedule to enable the | 4 | | city to make the required payment without significantly | 5 | | imperiling the public health, safety, or welfare. Any payments | 6 | | required to be made by the city pursuant to this Section are | 7 | | expressly subordinated to the payment of the principal, | 8 | | interest, premium, if any, and other payments on or related to | 9 | | any bonded debt obligation of the city, either currently | 10 | | outstanding or to be issued, for which the source of repayment | 11 | | or security thereon is derived directly or indirectly from any | 12 | | funds collected or received by the city or collected or | 13 | | received on behalf of the city. Payments on such bonded | 14 | | obligations include any statutory fund transfers or other | 15 | | prefunding mechanisms or formulas set forth, now or hereafter, | 16 | | in State law, city ordinance, or bond indentures, into debt | 17 | | service funds or accounts of the city related to such bonded | 18 | | obligations, consistent with the payment schedules associated | 19 | | with such obligations.
| 20 | | (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
| 21 | | Sec. 11-170. Contributions for age and service annuities | 22 | | for present
employees, future entrants and re-entrants.
| 23 | | (a) Beginning on the effective date and prior to July 1, | 24 | | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | 25 | | 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, |
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| 1 | | 1972, 6%; and beginning
January 1, 1972, 6.5%; and beginning | 2 | | January 1, 2015, and prior to January 1, 2016, 7.0%; and | 3 | | beginning January 1, 2016, and prior to January 1, 2017, 7.5%; | 4 | | and, beginning January 1, 2017, and prior to January 1, 2018, | 5 | | 8.0%; and beginning January 1, 2018, and prior to January 1, | 6 | | 2019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0% | 7 | | 6 1/2% of each payment of the salary of each present
employee, | 8 | | future entrant and re-entrant shall be contributed to the fund
| 9 | | as a deduction from salary for age and service annuity ; | 10 | | provided, however, that beginning with the first pay period on | 11 | | or after the date when the funded ratio of the Fund is first | 12 | | determined to have reached the 90% funding goal set forth in | 13 | | subsection (a-5) of Section 11-169 of this Code, and each pay | 14 | | period thereafter for as long as the Fund maintains a funding | 15 | | ratio of 90% or more, employee contributions shall be 7.75% of | 16 | | salary for the age and service annuity. If the funding ratio | 17 | | falls below 90%, then employee contributions for the age and | 18 | | service annuity shall revert to 9.0% of salary until such time | 19 | | as the Fund once again is determined to have reached a funding | 20 | | ratio of at least 90%, at which time employee contributions of | 21 | | 7.75% shall resume for the age and service annuity . Such | 22 | | deductions
beginning on the effective date and prior to June | 23 | | 30, 1947, inclusive
shall be made for a future entrant while he | 24 | | is in service until he
attains age 65, and for a present | 25 | | employee while he is in service until
the amount so deducted | 26 | | from his salary with interest at the rate of 4%
per annum shall |
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| 1 | | be equal to the sum which would have accumulated to his
credit | 2 | | from sums deducted from his salary if deductions at the rate
| 3 | | herein stated had been made during his entire service until he | 4 | | attained
age 65 with interest at 4% per annum for the period | 5 | | subsequent to his
attainment of age 65. Such deductions | 6 | | beginning July 1, 1947 shall be
made and continued for | 7 | | employees while in the service.
| 8 | | Notwithstanding Section 1-103.1, the changes to this | 9 | | Section made by this amendatory Act of the 98th General | 10 | | Assembly apply regardless of whether the employee was in active | 11 | | service on or after the effective date of this amendatory Act. | 12 | | (b) Concurrently with each employee contribution, the city | 13 | | shall
contribute beginning on the effective date and prior to | 14 | | July 1, 1947, 5
3/4%; and beginning July 1, 1947 and prior to | 15 | | July 1, 1953, 7%; and
beginning July 1, 1953, 6% of each | 16 | | payment of such salary until the
employee attains age 65.
| 17 | | (c) Each employee contribution made prior to the date age | 18 | | and
service annuity for an employee is fixed and each | 19 | | corresponding city
contribution shall be allocated to the | 20 | | account of and credited to the
employee for whose benefit it is | 21 | | made.
| 22 | | (Source: P.A. 81-1536.)
| 23 | | (40 ILCS 5/11-179.1 new) | 24 | | Sec. 11-179.1. Use of contributions for health care | 25 | | subsidies. Except as may be required pursuant to Sections |
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| 1 | | 11-160.1 and 11-160.2 of this Code, the Fund shall not use any | 2 | | contribution received by the Fund under this Article to provide | 3 | | a subsidy for the cost of participation in a retiree health | 4 | | care program.
| 5 | | Section 90. The State Mandates Act is amended by adding | 6 | | Section 8.38 as follows: | 7 | | (30 ILCS 805/8.38 new) | 8 | | Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8 | 9 | | of this Act, no reimbursement by the State is required for the | 10 | | implementation of any mandate created by this amendatory Act of | 11 | | the 98th General Assembly. | 12 | | Section 93. Inseverability and severability. The | 13 | | provisions of this amendatory Act of 2013 set forth in Secs. | 14 | | 1-160, 8-137, 8-137.1, 8-173, 8-173.1, 8-174, 11-134.1, | 15 | | 11-134.3, 11-169, 11-169.1, and 11-170 of the Illinois Pension | 16 | | Code are mutually dependent and inseverable. If any of those | 17 | | provisions is held invalid other than as applied to a | 18 | | particular person or circumstance, then all of those provisions | 19 | | are invalid. The remaining provisions of this Act are severable | 20 | | under Section 1.31 of the Statute on Statutes, and are not | 21 | | mutually dependent upon the provisions set forth in any other | 22 | | Section of this Act. |
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| 1 | | Section 95. No acceleration or delay. Where this Act makes | 2 | | changes in a statute that is represented in this Act by text | 3 | | that is not yet or no longer in effect (for example, a Section | 4 | | represented by multiple versions), the use of that text does | 5 | | not accelerate or delay the taking effect of (i) the changes | 6 | | made by this Act or (ii) provisions derived from any other | 7 | | Public Act.
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.".
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