Full Text of SB2437 99th General Assembly
SB2437enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 1-160, 8-113, 8-173, 8-174, 8-243.2, 8-244, 8-244.1, | 6 | | 8-251, 11-169, 11-170, 11-223.1, and 11-230 and by adding | 7 | | Sections 8-228.5, 11-125.9, and 11-197.7 as follows:
| 8 | | (40 ILCS 5/1-160)
| 9 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 10 | | which has been held unconstitutional) | 11 | | Sec. 1-160. Provisions applicable to new hires. | 12 | | (a) The provisions of this Section apply to a person who, | 13 | | on or after January 1, 2011, first becomes a member or a | 14 | | participant under any reciprocal retirement system or pension | 15 | | fund established under this Code, other than a retirement | 16 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 17 | | 15 or 18 of this Code, notwithstanding any other provision of | 18 | | this Code to the contrary, but do not apply to any self-managed | 19 | | plan established under this Code, to any person with respect to | 20 | | service as a sheriff's law enforcement employee under Article | 21 | | 7, or to any participant of the retirement plan established | 22 | | under Section 22-101. Notwithstanding anything to the contrary | 23 | | in this Section, for purposes of this Section, a person who |
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| 1 | | participated in a retirement system under Article 15 prior to | 2 | | January 1, 2011 shall be deemed a person who first became a | 3 | | member or participant prior to January 1, 2011 under any | 4 | | retirement system or pension fund subject to this Section. The | 5 | | changes made to this Section by Public Act 98-596 this | 6 | | amendatory Act of the 98th General Assembly are a clarification | 7 | | of existing law and are intended to be retroactive to January | 8 | | 1, 2011 ( the effective date of Public Act 96-889 ) , | 9 | | notwithstanding the provisions of Section 1-103.1 of this Code. | 10 | | (b) "Final average salary" means the average monthly (or | 11 | | annual) salary obtained by dividing the total salary or | 12 | | earnings calculated under the Article applicable to the member | 13 | | or participant during the 96 consecutive months (or 8 | 14 | | consecutive years) of service within the last 120 months (or 10 | 15 | | years) of service in which the total salary or earnings | 16 | | calculated under the applicable Article was the highest by the | 17 | | number of months (or years) of service in that period. For the | 18 | | purposes of a person who first becomes a member or participant | 19 | | of any retirement system or pension fund to which this Section | 20 | | applies on or after January 1, 2011, in this Code, "final | 21 | | average salary" shall be substituted for the following: | 22 | | (1) In Article 7 (except for service as sheriff's law | 23 | | enforcement employees), "final rate of earnings". | 24 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 25 | | annual salary for any 4 consecutive years within the last | 26 | | 10 years of service immediately preceding the date of |
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| 1 | | withdrawal". | 2 | | (3) In Article 13, "average final salary". | 3 | | (4) In Article 14, "final average compensation". | 4 | | (5) In Article 17, "average salary". | 5 | | (6) In Section 22-207, "wages or salary received by him | 6 | | at the date of retirement or discharge". | 7 | | (b-5) Beginning on January 1, 2011, for all purposes under | 8 | | this Code (including without limitation the calculation of | 9 | | benefits and employee contributions), the annual earnings, | 10 | | salary, or wages (based on the plan year) of a member or | 11 | | participant to whom this Section applies shall not exceed | 12 | | $106,800; however, that amount shall annually thereafter be | 13 | | increased by the lesser of (i) 3% of that amount, including all | 14 | | previous adjustments, or (ii) one-half the annual unadjusted | 15 | | percentage increase (but not less than zero) in the consumer | 16 | | price index-u
for the 12 months ending with the September | 17 | | preceding each November 1, including all previous adjustments. | 18 | | For the purposes of this Section, "consumer price index-u" | 19 | | means
the index published by the Bureau of Labor Statistics of | 20 | | the United States
Department of Labor that measures the average | 21 | | change in prices of goods and
services purchased by all urban | 22 | | consumers, United States city average, all
items, 1982-84 = | 23 | | 100. The new amount resulting from each annual adjustment
shall | 24 | | be determined by the Public Pension Division of the Department | 25 | | of Insurance and made available to the boards of the retirement | 26 | | systems and pension funds by November 1 of each year. |
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| 1 | | (c) A member or participant is entitled to a retirement
| 2 | | annuity upon written application if he or she has attained age | 3 | | 67 (beginning January 1, 2015, age 65 with respect to service | 4 | | under Article 12 of this Code that is subject to this Section) | 5 | | and has at least 10 years of service credit and is otherwise | 6 | | eligible under the requirements of the applicable Article. | 7 | | A member or participant who has attained age 62 (beginning | 8 | | January 1, 2015, age 60 with respect to service under Article | 9 | | 12 of this Code that is subject to this Section) 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 | | (c-5) A person who first becomes a member or a participant | 15 | | under Article 8 or Article 11 of this Code on or after the | 16 | | effective date of this amendatory Act of the 99th General | 17 | | Assembly, notwithstanding any other provision of this Code to | 18 | | the contrary, is entitled to a retirement annuity upon written | 19 | | application if he or she has attained age 65 and has at least | 20 | | 10 years of service credit under Article 8 or Article 11 of | 21 | | this Code and is otherwise eligible under the requirements of | 22 | | Article 8 or Article 11 of this Code, whichever is applicable. | 23 | | (d) The retirement annuity of a member or participant who | 24 | | is retiring after attaining age 62 (beginning January 1, 2015, | 25 | | age 60 with respect to service under Article 12 of this Code | 26 | | that is subject to this Section) with at least 10 years of |
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| 1 | | service credit shall be reduced by one-half
of 1% for each full | 2 | | month that the member's age is under age 67 (beginning January | 3 | | 1, 2015, age 65 with respect to service under Article 12 of | 4 | | this Code that is subject to this Section). | 5 | | (d-5) The retirement annuity of a person who first becomes | 6 | | a member or a participant under Article 8 or Article 11 of this | 7 | | Code on or after the effective date of this amendatory Act of | 8 | | the 99th General Assembly who is retiring at age 60 with at | 9 | | least 10 years of service credit under Article 8 or Article 11 | 10 | | shall be reduced by one-half of 1% for each full month that the | 11 | | member's age is under age 65. | 12 | | (d-10) Each person who first became a member or participant | 13 | | under Article 8 or Article 11 of this Code on or after January | 14 | | 1, 2011 and prior to the effective date of this amendatory Act | 15 | | of the 99th General Assembly shall make an irrevocable election | 16 | | either: | 17 | | (i) to be eligible for the reduced retirement age | 18 | | provided in subsections (c-5)
and (d-5) of this Section, | 19 | | the eligibility for which is conditioned upon the member or | 20 | | participant agreeing to the increases in employee | 21 | | contributions for age and service annuities provided in | 22 | | subsection (a-5) of Section 8-174 of this Code (for service | 23 | | under Article 8) or subsection (a-5) of Section 11-170 of | 24 | | this Code (for service under Article 11); or | 25 | | (ii) to not agree to item (i) of this subsection | 26 | | (d-10), in which case the member or participant shall |
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| 1 | | continue to be subject to the retirement age provisions in | 2 | | subsections (c) and (d) of this Section and the employee | 3 | | contributions for age and service annuity as provided in | 4 | | subsection (a) of Section 8-174 of this Code (for service | 5 | | under Article 8) or subsection (a) of Section 11-170 of | 6 | | this Code (for service under Article 11). | 7 | | The election provided for in this subsection shall be made | 8 | | between June 1, 2017 and July 15, 2017. A person subject to | 9 | | this subsection who makes the required election shall remain | 10 | | bound by that election. A person subject to this subsection who | 11 | | fails for any reason to make the required election within the | 12 | | time specified in this subsection shall be deemed to have made | 13 | | the election under item (ii). | 14 | | (e) Any retirement annuity or supplemental annuity shall be | 15 | | subject to annual increases on the January 1 occurring either | 16 | | on or after the attainment of age 67 (beginning January 1, | 17 | | 2015, age 65 with respect to service under Article 12 of this | 18 | | Code that is subject to this Section and beginning on the | 19 | | effective date of this amendatory Act of the 99th General | 20 | | Assembly, age 65 with respect to persons who: (i) first became | 21 | | members or participants under Article 8 or Article 11 of this | 22 | | Code on or after the effective date of this amendatory Act of | 23 | | the 99th General Assembly; or (ii) first became members or | 24 | | participants under Article 8 or Article 11 of this Code on or | 25 | | after January 1, 2011 and before the effective date of this | 26 | | amendatory Act of the 99th General Assembly and made the |
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| 1 | | election under item (i) of subsection (d-10) of this Section ) | 2 | | or the first anniversary of the annuity start date, whichever | 3 | | is later. Each annual increase shall be calculated at 3% or | 4 | | one-half the annual unadjusted percentage increase (but not | 5 | | less than zero) in the consumer price index-u for the 12 months | 6 | | ending with the September preceding each November 1, whichever | 7 | | is less, of the originally granted retirement annuity. If the | 8 | | annual unadjusted percentage change in the consumer price | 9 | | index-u for the 12 months ending with the September preceding | 10 | | each November 1 is zero or there is a decrease, then the | 11 | | annuity shall not be increased. | 12 | | Notwithstanding Section 1-103.1 of this Code, the changes | 13 | | made to this Section by this amendatory Act of the 99th General | 14 | | Assembly are applicable without regard to whether the employee | 15 | | was in active service on or after the effective date of this | 16 | | amendatory Act of the 99th General Assembly. | 17 | | (f) The initial survivor's or widow's annuity of an | 18 | | otherwise eligible survivor or widow of a retired member or | 19 | | participant who first became a member or participant on or | 20 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 21 | | retired member's or participant's retirement annuity at the | 22 | | date of death. In the case of the death of a member or | 23 | | participant who has not retired and who first became a member | 24 | | or participant on or after January 1, 2011, eligibility for a | 25 | | survivor's or widow's annuity shall be determined by the | 26 | | applicable Article of this Code. The initial benefit shall be |
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| 1 | | 66 2/3% of the earned annuity without a reduction due to age. A | 2 | | child's annuity of an otherwise eligible child shall be in the | 3 | | amount prescribed under each Article if applicable. Any | 4 | | survivor's or widow's annuity shall be increased (1) on each | 5 | | January 1 occurring on or after the commencement of the annuity | 6 | | if
the deceased member died while receiving a retirement | 7 | | annuity or (2) in
other cases, on each January 1 occurring | 8 | | after the first anniversary
of the commencement of the annuity. | 9 | | Each annual increase shall be calculated at 3% or one-half the | 10 | | annual unadjusted percentage increase (but not less than zero) | 11 | | in the consumer price index-u for the 12 months ending with the | 12 | | September preceding each November 1, whichever is less, of the | 13 | | originally granted survivor's annuity. If the annual | 14 | | unadjusted percentage change in the consumer price index-u for | 15 | | the 12 months ending with the September preceding each November | 16 | | 1 is zero or there is a decrease, then the annuity shall not be | 17 | | increased. | 18 | | (g) The benefits in Section 14-110 apply only if the person | 19 | | is a State policeman, a fire fighter in the fire protection | 20 | | service of a department, or a security employee of the | 21 | | Department of Corrections or the Department of Juvenile | 22 | | Justice, as those terms are defined in subsection (b) of | 23 | | Section 14-110. A person who meets the requirements of this | 24 | | Section is entitled to an annuity calculated under the | 25 | | provisions of Section 14-110, in lieu of the regular or minimum | 26 | | retirement annuity, only if the person has withdrawn from |
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| 1 | | service with not less than 20
years of eligible creditable | 2 | | service and has attained age 60, regardless of whether
the | 3 | | attainment of age 60 occurs while the person is
still in | 4 | | service. | 5 | | (h) If a person who first becomes a member or a participant | 6 | | of a retirement system or pension fund subject to this Section | 7 | | on or after January 1, 2011 is receiving a retirement annuity | 8 | | or retirement pension under that system or fund and becomes a | 9 | | member or participant under any other system or fund created by | 10 | | this Code and is employed on a full-time basis, except for | 11 | | those members or participants exempted from the provisions of | 12 | | this Section under subsection (a) of this Section, then the | 13 | | person's retirement annuity or retirement pension under that | 14 | | system or fund shall be suspended during that employment. Upon | 15 | | termination of that employment, the person's retirement | 16 | | annuity or retirement pension payments shall resume and be | 17 | | recalculated if recalculation is provided for under the | 18 | | applicable Article of this Code. | 19 | | If a person who first becomes a member of a retirement | 20 | | system or pension fund subject to this Section on or after | 21 | | January 1, 2012 and is receiving a retirement annuity or | 22 | | retirement pension under that system or fund and accepts on a | 23 | | contractual basis a position to provide services to a | 24 | | governmental entity from which he or she has retired, then that | 25 | | person's annuity or retirement pension earned as an active | 26 | | employee of the employer shall be suspended during that |
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| 1 | | contractual service. A person receiving an annuity or | 2 | | retirement pension under this Code shall notify the pension | 3 | | fund or retirement system from which he or she is receiving an | 4 | | annuity or retirement pension, as well as his or her | 5 | | contractual employer, of his or her retirement status before | 6 | | accepting contractual employment. A person who fails to submit | 7 | | such notification shall be guilty of a Class A misdemeanor and | 8 | | required to pay a fine of $1,000. Upon termination of that | 9 | | contractual employment, the person's retirement annuity or | 10 | | retirement pension payments shall resume and, if appropriate, | 11 | | be recalculated under the applicable provisions of this Code. | 12 | | (i) (Blank). | 13 | | (j) In the case of a conflict between the provisions of | 14 | | this Section and any other provision of this Code, the | 15 | | provisions of this Section shall control.
| 16 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | 17 | | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.)
| 18 | | (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
| 19 | | Sec. 8-113. Municipal employee, employee, contributor, or | 20 | | participant. "Municipal employee", "employee", "contributor", | 21 | | or "participant":
| 22 | | (a) Any employee of an employer employed in the classified | 23 | | civil service
thereof other than by temporary appointment or in | 24 | | a position excluded or exempt
from the classified service by | 25 | | the Civil Service Act, or in the case of a city
operating under |
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| 1 | | a personnel ordinance, any employee of an employer employed in
| 2 | | the classified or career service under the provisions of a | 3 | | personnel ordinance,
other than in a provisional or exempt | 4 | | position as specified in such ordinance
or in rules and | 5 | | regulations formulated thereunder.
| 6 | | (b) Any employee in the service of an employer before the | 7 | | Civil
Service Act came in effect for the employer.
| 8 | | (c) Any person employed by the board.
| 9 | | (d) Any person employed after December 31, 1949, but prior | 10 | | to January
1, 1984, in the service of the employer by temporary | 11 | | appointment or in
a position exempt from the classified service | 12 | | as set forth in the Civil
Service Act, or in a provisional or | 13 | | exempt position as specified in the
personnel ordinance, who | 14 | | meets the following qualifications:
| 15 | | (1) has rendered service during not less than 12 | 16 | | calendar months to
an employer as an employee, officer, or | 17 | | official, 4 months of which must
have been consecutive full | 18 | | normal working months of service rendered
immediately | 19 | | prior to filing application to be included; and
| 20 | | (2) files written application with the board, while in | 21 | | the service,
to be included hereunder.
| 22 | | (e) After December 31, 1949, any alderman or other officer | 23 | | or
official of the employer, who files, while in office, | 24 | | written
application with the board to be included hereunder.
| 25 | | (f) Beginning January 1, 1984, any person employed by an | 26 | | employer other
than the Chicago Housing Authority
or the Public |
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| 1 | | Building Commission of the city, whether or not such person
is | 2 | | serving by temporary appointment or in a position exempt from | 3 | | the classified
service as set forth in the Civil Service Act, | 4 | | or in a provisional or exempt
position as specified in the | 5 | | personnel ordinance, provided that such person is
neither (1) | 6 | | an alderman or other officer or official of the employer, nor | 7 | | (2)
participating, on the basis of such employment, in any | 8 | | other pension fund or
retirement system established under this | 9 | | Act.
| 10 | | (g) After December 31, 1959, any person employed in the law
| 11 | | department of the city, or municipal court or Board of Election
| 12 | | Commissioners of the city, who was a contributor and | 13 | | participant, on
December 31, 1959, in the annuity and benefit | 14 | | fund in operation in the
city on said date, by virtue of the | 15 | | Court and Law Department Employees'
Annuity Act or the Board of | 16 | | Election Commissioners Employees' Annuity
Act.
| 17 | | After December 31, 1959, the foregoing definition includes | 18 | | any other
person employed or to be employed in the law | 19 | | department, or municipal
court (other than as a judge), or | 20 | | Board of Election Commissioners (if
his salary is provided by | 21 | | appropriation of the city council of the city
and his salary | 22 | | paid by the city) -- subject, however, in the case of such
| 23 | | persons not participants on December 31, 1959, to compliance | 24 | | with the
same qualifications and restrictions otherwise set | 25 | | forth in this Section
and made generally applicable to | 26 | | employees or officers of the city
concerning eligibility for |
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| 1 | | participation or membership.
| 2 | | Notwithstanding any other provision in this Section, any | 3 | | person who first becomes employed in the law department of the | 4 | | city on or after the effective date of this amendatory Act of | 5 | | the 99th General Assembly shall be included within the | 6 | | foregoing definition, effective upon the date the person first | 7 | | becomes so employed, regardless of the nature of the | 8 | | appointment the person holds under the provisions of a | 9 | | personnel ordinance. | 10 | | (h) After December 31, 1965, any person employed in the | 11 | | public
library of the city -- and any other person -- who was a | 12 | | contributor and
participant, on December 31, 1965, in the | 13 | | pension fund in operation in
the city on said date, by virtue | 14 | | of the Public Library Employees'
Pension Act.
| 15 | | (i) After December 31, 1968, any person employed in the | 16 | | house of
correction of the city, who was a contributor and | 17 | | participant, on
December 31, 1968, in the pension fund in | 18 | | operation in the city on said
date, by virtue of the House of | 19 | | Correction Employees' Pension Act.
| 20 | | (j) Any person employed full-time on or after the effective | 21 | | date of this
amendatory Act of the 92nd General Assembly by the | 22 | | Chicago Housing Authority
who has elected to participate in | 23 | | this Fund as provided in subsection (a) of
Section 8-230.9.
| 24 | | (k) Any person employed full-time by the Public Building | 25 | | Commission of
the city who has elected to participate in this | 26 | | Fund as provided in subsection
(d) of Section 8-230.7.
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| 1 | | (Source: P.A. 92-599, eff. 6-28-02.)
| 2 | | (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
| 3 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 4 | | which has been held unconstitutional) | 5 | | Sec. 8-173. Financing; tax levy.
| 6 | | (a) Except as provided in subsection (f) of this Section, | 7 | | the city council
of the city shall levy a tax annually upon all | 8 | | taxable property in the city at
a rate that will produce a sum | 9 | | which, when added to the amounts deducted from
the salaries of | 10 | | the employees or otherwise contributed by them and the
amounts | 11 | | deposited under subsection (f), will be sufficient for the
| 12 | | requirements of this Article, but which when extended will | 13 | | produce an amount
not to exceed the greater of the following: | 14 | | (a) the sum obtained by the levy
of a tax of .1093% of the | 15 | | value, as equalized or assessed by the Department
of Revenue, | 16 | | of all taxable property within such city, or (b) the sum of
| 17 | | $12,000,000.
However any city in which a Fund has been | 18 | | established and in operation
under this Article for more than 3 | 19 | | years prior to 1970 shall
levy for the year 1970 a tax at a rate | 20 | | on the dollar of assessed
valuation of all taxable property | 21 | | that will produce, when extended, an
amount not to exceed 1.2 | 22 | | times the total amount of contributions made by
employees to | 23 | | the Fund for annuity purposes in the calendar year 1968,
and, | 24 | | for the year 1971 and 1972 such levy that will produce, when
| 25 | | extended, an amount not to exceed 1.3 times the total amount of
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| 1 | | contributions made by employees to the Fund for annuity
| 2 | | purposes in the calendar years 1969 and 1970, respectively; and | 3 | | for the
year 1973 an amount not to exceed 1.365 times such | 4 | | total amount of
contributions made by employees for annuity | 5 | | purposes in the calendar
year 1971; and for the year 1974 an | 6 | | amount not to exceed 1.430 times
such total amount of | 7 | | contributions made by employees for annuity
purposes in the | 8 | | calendar year 1972; and for the year 1975 an amount not
to | 9 | | exceed 1.495 times such total amount of contributions made by
| 10 | | employees for annuity purposes in the calendar year 1973; and | 11 | | for the year 1976
an amount not to exceed 1.560 times such | 12 | | total amount of contributions made by
employees for annuity | 13 | | purposes in the calendar year 1974; and for the year 1977
an | 14 | | amount not to exceed 1.625 times such total amount of | 15 | | contributions made by
employees for annuity purposes in the | 16 | | calendar year 1975; and for the year 1978
and each year | 17 | | thereafter through levy year 2016 , such levy as will produce, | 18 | | when
extended, an amount not to exceed the total amount of
| 19 | | contributions made by or on behalf of employees to the Fund for | 20 | | annuity
purposes in the calendar year 2 years prior to the year | 21 | | for which the annual
applicable tax is levied, multiplied by | 22 | | 1.690 for the years 1978 through 1998
and by 1.250 for the year | 23 | | 1999 and for each year thereafter through levy year 2016. | 24 | | Beginning in levy year 2017, and in each year thereafter, the | 25 | | levy shall not exceed the amount of the city's total required | 26 | | contribution to the Fund for the next payment year, as |
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| 1 | | determined under subsection (a-5). For the purposes of this | 2 | | Section, the payment year is the year immediately following the | 3 | | levy year .
| 4 | | The tax shall be levied and collected in like manner with | 5 | | the general
taxes of the city, and shall be exclusive of and in | 6 | | addition to the
amount of tax the city is now or may hereafter | 7 | | be authorized to levy for
general purposes under any laws which | 8 | | may limit the amount of tax which
the city may levy for general | 9 | | purposes. The county clerk of the county
in which the city is | 10 | | located, in reducing tax levies under the
provisions of any Act | 11 | | concerning the levy and extension of taxes, shall
not consider | 12 | | the tax herein provided for as a part of the general tax
levy | 13 | | for city purposes, and shall not include the same within any
| 14 | | limitation of the percent of the assessed valuation upon which | 15 | | taxes are
required to be extended for such city.
| 16 | | Revenues derived from such tax shall be paid to the city | 17 | | treasurer of
the city as collected and held by the city | 18 | | treasurer him for the benefit of the fund.
| 19 | | If the payments on account of taxes are insufficient during | 20 | | any year
to meet the requirements of this Article, the city may | 21 | | issue tax
anticipation warrants against the current tax levy.
| 22 | | The city may continue to use other lawfully available funds | 23 | | in lieu of all or part of the levy, as provided under | 24 | | subsection (f) of this Section. | 25 | | (a-5) (1) Beginning in payment year 2018, the city's | 26 | | required annual contribution to the Fund for payment years 2018 |
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| 1 | | through 2022 shall be: for 2018, $266,000,000; for 2019, | 2 | | $344,000,000; for 2020, $421,000,000; for 2021, $499,000,000; | 3 | | and for 2022, $576,000,000. | 4 | | (2) For payment years 2023 through 2058, the city's | 5 | | required annual contribution to the Fund shall be the amount | 6 | | determined by the Fund to be equal to the sum of (i) the city's | 7 | | portion of the projected normal cost for that fiscal year, plus | 8 | | (ii) an amount determined on a level percentage of applicable | 9 | | employee 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 total | 12 | | actuarial assets of the Fund up to 90% of the total actuarial | 13 | | liabilities of the Fund by the end of 2058. | 14 | | (3) For payment years after 2058, the city's required | 15 | | annual contribution to
the Fund shall be equal to the amount, | 16 | | if any, needed to bring the total actuarial assets of the Fund | 17 | | up to 90% of the total actuarial liabilities of the Fund as of | 18 | | the end of the year. In making the determinations under | 19 | | paragraphs (2) and (3) of this subsection, the actuarial | 20 | | calculations shall be determined under the entry age normal | 21 | | actuarial cost method, and any actuarial gains or losses from | 22 | | investment return incurred in a fiscal year shall be recognized | 23 | | in equal annual amounts over the 5-year period following the | 24 | | fiscal year. | 25 | | To the extent that the city's contribution for any of the | 26 | | payment years referenced in this subsection is made with |
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| 1 | | property taxes, those property taxes shall be levied, | 2 | | collected, and paid to the Fund in a like manner with the | 3 | | general taxes of the city. | 4 | | (a-10) If the city fails to transmit to the Fund | 5 | | contributions required of it under this Article by December 31 | 6 | | of the year in which such contributions are due, the Fund may, | 7 | | after giving notice to the city, certify to the State | 8 | | Comptroller the amounts of the delinquent payments, and the | 9 | | Comptroller must, beginning in payment year 2018, deduct and | 10 | | deposit into the Fund the certified amounts or a portion of | 11 | | those amounts from the following proportions of grants of State | 12 | | funds to the city: | 13 | | (1) in payment year 2018, one-third of the total amount | 14 | | of any grants of State funds to the city; | 15 | | (2) in payment year 2019, two-thirds of the total | 16 | | amount of any grants of State funds to the city; and | 17 | | (3) in payment year 2020 and each payment year | 18 | | thereafter, the total amount of any grants of State funds | 19 | | to the city. | 20 | | The State Comptroller may not deduct from any grants of | 21 | | State funds to the city more than the amount of delinquent | 22 | | payments certified to the State Comptroller by the Fund. | 23 | | (b) On or before July 1, 2017, and each July 1 thereafter | 24 | | January 10, annually , the board shall certify to notify the
| 25 | | city council the annual amounts required under of the | 26 | | requirements of this Article , for which that the tax herein
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| 1 | | provided shall be levied for the following that current year. | 2 | | The board shall compute
the amounts necessary to be credited to | 3 | | the reserves established and
maintained as herein provided, and | 4 | | shall make an annual determination of
the amount of the | 5 | | required city contributions, and certify the results
thereof to | 6 | | the city council.
| 7 | | (c) In respect to employees of the city who are transferred | 8 | | to the
employment of a park district by virtue of the "Exchange | 9 | | of Functions
Act of 1957", the corporate authorities of the | 10 | | park district shall
annually levy a tax upon all the taxable | 11 | | property in the park district
at such rate per cent of the | 12 | | value of such property, as equalized or
assessed by the | 13 | | Department of Revenue, as shall be
sufficient, when added to | 14 | | the amounts deducted from their salaries and
otherwise | 15 | | contributed by them to provide the benefits to which they and
| 16 | | their dependents and beneficiaries are entitled under this | 17 | | Article. The city
shall not levy a tax hereunder in respect to | 18 | | such employees.
| 19 | | The tax so levied by the park district shall be in addition | 20 | | to and
exclusive of all other taxes authorized to be levied by | 21 | | the park
district for corporate, annuity fund, or other | 22 | | purposes. The county
clerk of the county in which the park | 23 | | district is located, in reducing
any tax levied under the | 24 | | provisions of any act concerning the levy and
extension of | 25 | | taxes shall not consider such tax as part of the general
tax | 26 | | levy for park purposes, and shall not include the same in any
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| 1 | | limitation of the per cent of the assessed valuation upon which | 2 | | taxes
are required to be extended for the park district. The | 3 | | proceeds of the
tax levied by the park district, upon receipt | 4 | | by the district, shall be
immediately paid over to the city | 5 | | treasurer of the city for the uses and
purposes of the fund.
| 6 | | The various sums to be contributed by the city and park | 7 | | district and
allocated for the purposes of this Article, and | 8 | | any interest to be
contributed by the city, shall be derived | 9 | | from the revenue from the taxes
authorized in this Section or | 10 | | otherwise as expressly provided
in this Section.
| 11 | | If it is not possible or practicable for the city to make
| 12 | | contributions for age and service annuity and widow's annuity | 13 | | at the
same time that employee contributions are made for such
| 14 | | purposes, such city contributions shall be construed to be due | 15 | | and
payable as of the end of the fiscal year for which the tax | 16 | | is levied and
shall accrue thereafter with interest at the | 17 | | effective rate until paid.
| 18 | | (d) With respect to employees whose wages are funded as | 19 | | participants
under the Comprehensive Employment and Training | 20 | | Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 21 | | 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 22 | | subsequent to October 1, 1978, and in instances
where the board | 23 | | has elected to establish a manpower program reserve, the
board | 24 | | shall compute the amounts necessary to be credited to the | 25 | | manpower
program reserves established and maintained as herein | 26 | | provided, and
shall make a periodic determination of the amount |
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| 1 | | of required
contributions from the City to the reserve to be | 2 | | reimbursed by the
federal government in accordance with rules | 3 | | and regulations established
by the Secretary of the United | 4 | | States Department of Labor or his
designee, and certify the | 5 | | results thereof to the City Council. Any such
amounts shall | 6 | | become a credit to the City and will be used to reduce the
| 7 | | amount which the City would otherwise contribute during | 8 | | succeeding years
for all employees.
| 9 | | (e) In lieu of establishing a manpower program reserve with | 10 | | respect
to employees whose wages are funded as participants | 11 | | under the
Comprehensive Employment and Training Act of 1973, as | 12 | | authorized by
subsection (d), the board may elect to establish | 13 | | a special municipality
contribution rate for all such | 14 | | employees. If this option is elected, the
City shall contribute | 15 | | to the Fund from federal funds provided under the
Comprehensive | 16 | | Employment and Training Act program at the special rate so
| 17 | | established and such contributions shall become a credit to the | 18 | | City and
be used to reduce the amount which the City would | 19 | | otherwise contribute
during succeeding years for all | 20 | | employees.
| 21 | | (f) In lieu of levying all or a portion of the tax required | 22 | | under this
Section in any year, the city may deposit with the | 23 | | city treasurer no later than
March 1 of that year for the | 24 | | benefit of the fund, to be held in accordance with
this | 25 | | Article, an amount that, together with the taxes levied under | 26 | | this Section
for that year, is not less than the amount of the |
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| 1 | | city contributions for that
year as certified by the board to | 2 | | the city council. The deposit may be derived
from any source | 3 | | legally available for that purpose, including, but not limited
| 4 | | to, the proceeds of city borrowings. The making of a deposit | 5 | | shall satisfy
fully the requirements of this Section for that | 6 | | year to the extent of the
amounts so deposited. Amounts | 7 | | deposited under this subsection may be used by
the fund for any | 8 | | of the purposes for which the proceeds of the tax levied by
the | 9 | | city under this Section may be used, including the payment of | 10 | | any amount
that is otherwise required by this Article to be | 11 | | paid from the proceeds of that
tax.
| 12 | | (Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98; | 13 | | 90-766, eff.
8-14-98.)
| 14 | | (40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
| 15 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 16 | | which has been held unconstitutional) | 17 | | Sec. 8-174. Contributions for age and service annuities for | 18 | | present
employees and future entrants.
(a) Beginning on the | 19 | | effective date and prior to July 1, 1947, 3
1/4%; and beginning | 20 | | on July 1, 1947 and prior to July 1, 1953, 5%; and
beginning | 21 | | July 1, 1953, and prior to January 1, 1972, 6%; and beginning
| 22 | | January 1, 1972, 6-1/2% of each payment of the salary of each | 23 | | present
employee and future entrant , except as provided in | 24 | | subsection (a-5) and (a-10), shall be contributed to the fund | 25 | | as a
deduction from salary for age and service annuity.
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| 1 | | (a-5) Except as provided in subsection (a-10), for an | 2 | | employee who on or after January 1, 2011 and prior to the | 3 | | effective date of this amendatory Act of the 99th General | 4 | | Assembly first became a member or participant under this | 5 | | Article and made the election under item (i) of subsection | 6 | | (d-10) of Section 1-160: prior to the effective date of this | 7 | | amendatory Act of the 99th General Assembly, 6.5%; and | 8 | | beginning on the effective date of this amendatory Act of the | 9 | | 99th General Assembly and prior to January 1, 2018, 7.5%; and | 10 | | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | 11 | | and beginning January 1, 2019 and thereafter, employee | 12 | | contributions for those employees who made the election under | 13 | | item (i) of subsection (d-10) of Section 1-160 shall be the | 14 | | lesser of: (i) the total normal cost, calculated using the | 15 | | entry age normal actuarial method, projected for that fiscal | 16 | | year for the benefits and expenses of the plan of benefits | 17 | | applicable to those members and participants who first became | 18 | | members or participants on or after the effective date of this | 19 | | amendatory Act of the 99th General Assembly and to those | 20 | | employees who made the election under item (i) of subsection | 21 | | (d-10) of Section 1-160, but not less than 6.5% of each payment | 22 | | of salary combined with the employee contributions provided for | 23 | | in subsection (b) of Section 8-137 and Section 8-182 of this | 24 | | Article; or (ii) the aggregate employee contribution | 25 | | consisting of 9.5% of each payment of salary combined with the | 26 | | employee contributions provided for in subsection (b) of |
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| 1 | | Section 8-137 and 8-182 of this Article. | 2 | | Beginning with the first pay period on or after the date | 3 | | when the funded ratio of the fund is first determined to have | 4 | | reached the 90% funding goal, and each pay period thereafter | 5 | | for as long as the fund maintains a funding ratio of 75% or | 6 | | more, employee contributions for age and service annuity for | 7 | | those employees who made the election under item (i) of | 8 | | subsection (d-10) of Section 1-160 shall be 5.5% of each | 9 | | payment of salary. If the funding ratio falls below 75%, then | 10 | | employee contributions for age and service annuity for those | 11 | | employees who made the election under item (i) of subsection | 12 | | (d-10) shall revert to the lesser of: (A) the total normal | 13 | | cost, calculated using the entry age normal actuarial method, | 14 | | projected for that fiscal year for the benefits and expenses of | 15 | | the plan of benefits applicable to those members and | 16 | | participants who first became members or participants on or | 17 | | after the effective date of this amendatory Act of the 99th | 18 | | General Assembly and to those employees who made the election | 19 | | under item (i) of subsection (d-10) of Section 1-160, but not | 20 | | less than 6.5% of each payment of salary combined with the | 21 | | employee contributions provided for in subsection (b) of | 22 | | Section 8-137 and Section 8-182 of this Article; or (B) the | 23 | | aggregate employee contribution consisting of 9.5% of each | 24 | | payment of salary combined with the employee contributions | 25 | | provided for in subsection (b) of Section 8-137 and 8-182 of | 26 | | this Article. If the fund once again is determined to have |
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| 1 | | reached a funding ratio of 75%, the 5.5% of salary contribution | 2 | | for age and service annuity shall resume. An employee who made | 3 | | the election under item (ii) of subsection (d-10) of Section | 4 | | 1-160 shall continue to have the contributions for age and | 5 | | service annuity determined under subsection (a) of this | 6 | | Section. | 7 | | If contributions are reduced to less than the aggregate | 8 | | employee contribution described in item (ii) or item (B) of | 9 | | this subsection due to application of the normal cost | 10 | | criterion, the employee contribution amount shall be | 11 | | consistent from July 1 of the fiscal year through June 30 of | 12 | | that fiscal year. | 13 | | The normal cost, for the purposes of this subsection (a-5) | 14 | | and subsection (a-10), shall be calculated by an independent | 15 | | enrolled actuary mutually agreed upon by the fund and the City. | 16 | | The fees and expenses of the independent actuary shall be the | 17 | | responsibility of the City. For purposes of this subsection | 18 | | (a-5), the fund and the City shall both be considered to be the | 19 | | clients of the actuary, and the actuary shall utilize | 20 | | participant data and actuarial standards to calculate the | 21 | | normal cost. The fund shall provide information that the | 22 | | actuary requests in order to calculate the applicable normal | 23 | | cost. | 24 | | (a-10) For each employee who on or after the effective date | 25 | | of this amendatory Act of the 99th General Assembly first | 26 | | becomes a member or participant under this Article, 9.5% of |
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| 1 | | each payment of salary shall be contributed to the fund as a | 2 | | deduction from salary for age and service annuity. Beginning | 3 | | January 1, 2018 and each year thereafter, employee | 4 | | contributions for each employee subject to this subsection | 5 | | (a-10) shall be the lesser of: (i) the total normal cost, | 6 | | calculated using the entry age normal actuarial method, | 7 | | projected for that fiscal year for the benefits and expenses of | 8 | | the plan of benefits applicable to those members and | 9 | | participants who first become members or participants on or | 10 | | after the effective date of this amendatory Act of the 99th | 11 | | General Assembly and to those employees who made the election | 12 | | under item (i) of subsection (d-10) of Section 1-160, but not | 13 | | less than 6.5% of each payment of salary combined with the | 14 | | employee contributions provided for in subsection (b) of | 15 | | Section 8-137 and Section 8-182 of this Article; or (ii) the | 16 | | aggregate employee contribution consisting of 9.5% of each | 17 | | payment of salary combined with the employee contributions | 18 | | provided for in subsection (b) of Section 8-137 and Section | 19 | | 8-182 of this Article. | 20 | | Beginning with the first pay period on or after the date | 21 | | when the funded ratio of the fund is first determined to have | 22 | | reached the 90% funding goal, and each pay period thereafter | 23 | | for as long as the fund maintains a funding ratio of 75% or | 24 | | more, employee contributions for age and service annuity for | 25 | | each employee subject to this subsection (a-10) shall be 5.5% | 26 | | of each payment of salary. If the funding ratio falls below |
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| 1 | | 75%, then employee contributions for age and service annuity | 2 | | for each employee subject to this subsection (a-10) shall | 3 | | revert to the lesser of: (A) the total normal cost, calculated | 4 | | using the entry age normal actuarial method, projected for that | 5 | | fiscal year for the benefits and expenses of the plan of | 6 | | benefits applicable to those members and participants who first | 7 | | become members or participants on or after the effective date | 8 | | of this amendatory Act of the 99th General Assembly and to | 9 | | those employees who made the election under item (i) of | 10 | | subsection (d-10) of Section 1-160, but not less than 6.5% of | 11 | | each payment of salary combined with the employee contributions | 12 | | provided for in subsection (b) of Section 8-137 and Section | 13 | | 8-182 of this Article; or (B) the aggregate employee | 14 | | contribution consisting of 9.5% of each payment of salary | 15 | | combined with the employee contributions provided for in | 16 | | subsection (b) of Section 8-137 and Section 8-182 of this | 17 | | Article. If the fund once again is determined to have reached a | 18 | | funding ratio of 75%, the 5.5% of salary contribution for age | 19 | | and service annuity shall resume. | 20 | | If contributions are reduced to less than the aggregate | 21 | | employee contribution described in item (ii) or item (B) of | 22 | | this subsection (a-10) due to application of the normal cost | 23 | | criterion, the employee contribution amount shall be | 24 | | consistent from July 1 of the fiscal year through June 30 of | 25 | | that fiscal year. | 26 | | Such deductions beginning on the effective date and prior |
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| 1 | | to July 1,
1947 shall be made for a future entrant while he is | 2 | | in the service until
he attains age 65 and for a present | 3 | | employee while he is in the service
until the amount so | 4 | | deducted from his salary with the amount deducted
from his | 5 | | salary or paid by him according to law to any municipal pension
| 6 | | fund in force on the effective date with interest on both such | 7 | | amounts
at 4% per annum equals the sum that would have been to | 8 | | his credit from
sums deducted from his salary if deductions at | 9 | | the rate herein stated
had been made during his entire service | 10 | | until he attained age 65 with
interest at 4% per annum for the | 11 | | period subsequent to his attainment of
age 65. Such deductions | 12 | | beginning July 1, 1947 shall be made and
continued for | 13 | | employees while in the service.
| 14 | | (b) (Blank). Concurrently with each employee contribution | 15 | | beginning on the
effective date and prior to July 1, 1947 the | 16 | | city shall contribute 5
3/4%; and beginning on July 1, 1947 and | 17 | | prior to July 1, 1953, 7%; and
beginning July 1, 1953, 6% of | 18 | | each payment of such salary until the
employee attains age 65.
| 19 | | (c) Each employee contribution made prior to the date the | 20 | | age and
service annuity for an employee is fixed and each | 21 | | corresponding city
contribution shall be credited to the | 22 | | employee and allocated to the
account of the employee for whose | 23 | | benefit it is made.
| 24 | | (d) Notwithstanding Section 1-103.1, the changes to this | 25 | | Section made by this amendatory Act of the 99th General | 26 | | Assembly apply regardless of whether the employee was in active |
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| 1 | | service on or after the effective date of this amendatory Act | 2 | | of the 99th General Assembly. | 3 | | (Source: P.A. 93-654, eff. 1-16-04.) | 4 | | (40 ILCS 5/8-228.5 new) | 5 | | Sec. 8-228.5. Action by Fund against third party; | 6 | | subrogation. In those cases where the injury or death for which | 7 | | a disability or death benefit is payable under this Article was | 8 | | caused under circumstances creating a legal liability on the | 9 | | part of some person or entity (hereinafter "third party") to | 10 | | pay damages to the employee, legal proceedings may be taken | 11 | | against such third party to recover damages notwithstanding the | 12 | | Fund's payment of or liability to pay disability or death | 13 | | benefits under this Article. In such case, however, if the | 14 | | action against such third party is brought by the injured | 15 | | employee or his or her personal representative and judgment is | 16 | | obtained and paid, or settlement is made with such third party, | 17 | | either with or without suit, from the amount received by such | 18 | | employee or personal representative, then there shall be paid | 19 | | to the Fund the amount of money representing the death or | 20 | | disability benefits paid or to be paid to the disabled employee | 21 | | pursuant to the provisions of this Article. In all | 22 | | circumstances where the action against a third party is brought | 23 | | by the disabled employee or his or her personal representative, | 24 | | the Fund shall have a claim or lien upon any recovery, by | 25 | | judgment or settlement, out of which the disabled employee or |
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| 1 | | his or her personal representative might be compensated from | 2 | | such third party. The Fund may satisfy or enforce any such | 3 | | claim or lien only from that portion of a recovery that has | 4 | | been, or can be, allocated or attributed to past and future | 5 | | lost salary, which recovery is by judgment or settlement. The | 6 | | Fund's claim or lien shall not be satisfied or enforced from | 7 | | that portion of a recovery that has been, or can be, allocated | 8 | | or attributed to medical care and treatment, pain and | 9 | | suffering, loss of consortium, and attorney's fees and costs. | 10 | | Where action is brought by the disabled employee or his or | 11 | | her personal representative he or she shall forthwith notify | 12 | | the Fund, by personal service or registered mail, of such fact | 13 | | and of the name of the court where such suit is brought, filing | 14 | | proof of such notice in such action. The Fund may, at any time | 15 | | thereafter, intervene in such action upon its own motion. | 16 | | Therefore, no release or settlement of claim for damages by | 17 | | reason of injury to the disabled employee, and no satisfaction | 18 | | of judgment in such proceedings, shall be valid without the | 19 | | written consent of the Board of Trustees authorized by this | 20 | | Code to administer the Fund created under this Article, except | 21 | | that such consent shall be provided expeditiously following a | 22 | | settlement or judgment. | 23 | | In the event the disabled employee or his or her personal | 24 | | representative has not instituted an action against a third | 25 | | party at a time when only 3 months remain before such action | 26 | | would thereafter be barred by law, the Fund may, in its own |
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| 1 | | name or in the name of the personal representative, commence a | 2 | | proceeding against such third party seeking the recovery of all | 3 | | damages on account of injuries caused to the employee. From any | 4 | | amount so recovered, the Fund shall pay to the personal | 5 | | representative of such disabled employee all sums collected | 6 | | from such third party by judgment or otherwise in excess of the | 7 | | amount of disability or death benefits paid or to be paid under | 8 | | this Article to the disabled employee or his or her personal | 9 | | representative, and such costs, attorney's fees, and | 10 | | reasonable expenses as may be incurred by the Fund in making | 11 | | the collection or in enforcing such liability. The Fund's | 12 | | recovery shall be satisfied only from that portion of a | 13 | | recovery that has been, or can be, allocated or attributed to | 14 | | past and future lost salary, which recovery is by judgment or | 15 | | settlement. The Fund's recovery shall not be satisfied from | 16 | | that portion of the recovery that has been or can be allocated | 17 | | or attributed to medical care and treatment, pain and | 18 | | suffering, loss of consortium, and attorney's fees and costs. | 19 | | Additionally, with respect to any right of subrogation | 20 | | asserted by the Fund under this Section, the Fund, in the | 21 | | exercise of discretion, may determine what amount from past or | 22 | | future salary shall be appropriate under the circumstances to | 23 | | collect from the recovery obtained on behalf of the disabled | 24 | | employee. | 25 | | This Section applies only to persons who first become | 26 | | members or participants under this Article on or after the |
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| 1 | | effective date of this amendatory Act of 99th General Assembly.
| 2 | | (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
| 3 | | Sec. 8-243.2. Alternative annuity for city officers.
| 4 | | (a) For the purposes of this Section and Sections 8-243.1 | 5 | | and 8-243.3,
"city officer" means the city clerk, the city | 6 | | treasurer, or an alderman of
the city elected by vote of the | 7 | | people, while serving in that capacity or as
provided in | 8 | | subsection (f), who has elected to participate in the Fund.
| 9 | | (b) Any elected city officer, while serving in that | 10 | | capacity or as
provided in subsection (f), may elect to | 11 | | establish alternative credits for
an alternative annuity by | 12 | | electing in writing to make additional optional
contributions | 13 | | in accordance with this Section and the procedures
established | 14 | | by the board. Such elected city officer may discontinue making
| 15 | | the additional optional contributions by notifying the Fund in | 16 | | writing in
accordance with this Section and procedures | 17 | | established by the board.
| 18 | | Additional optional contributions for the alternative | 19 | | annuity shall
be as follows:
| 20 | | (1) For service after the option is elected, an | 21 | | additional contribution
of 3% of salary shall be | 22 | | contributed to the Fund on the same basis and
under the | 23 | | same conditions as contributions required under Sections | 24 | | 8-174
and 8-182.
| 25 | | (2) For service before the option is elected, an |
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| 1 | | additional
contribution of 3% of the salary for the | 2 | | applicable period of service, plus
interest at the | 3 | | effective rate from the date of service to the date of
| 4 | | payment. All payments for past service must be paid in full | 5 | | before credit
is given. No additional optional | 6 | | contributions may be made for any period
of service for | 7 | | which credit has been previously forfeited by acceptance of
| 8 | | a refund, unless the refund is repaid in full with interest | 9 | | at the
effective rate from the date of refund to the date | 10 | | of repayment.
| 11 | | (c) In lieu of the retirement annuity otherwise payable | 12 | | under this
Article, any city officer elected by vote of the | 13 | | people who (1) has
elected to participate in the Fund and make | 14 | | additional optional
contributions in accordance with this | 15 | | Section, and (2) has attained
age 55 with at least 10 years of | 16 | | service credit, or has
attained age 60 with at least 8 years of | 17 | | service credit, may
elect to have his retirement annuity | 18 | | computed as follows: 3% of the
participant's salary at the time | 19 | | of termination of service for each of the
first 8 years of | 20 | | service credit, plus 4% of such salary for each of the
next 4 | 21 | | years of service credit, plus 5% of such salary for each year | 22 | | of
service credit in excess of 12 years, subject to a maximum | 23 | | of 80% of such
salary. To the extent such elected city officer | 24 | | has made additional
optional contributions with respect to only | 25 | | a portion of his years of
service credit, his retirement | 26 | | annuity will first be determined in
accordance with this |
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| 1 | | Section to the extent such additional optional
contributions | 2 | | were made, and then in accordance with the remaining Sections
| 3 | | of this Article to the extent of years of service credit with | 4 | | respect to
which additional optional contributions were not | 5 | | made.
| 6 | | (d) In lieu of the disability benefits otherwise payable | 7 | | under this
Article, any city officer elected by vote of the | 8 | | people who (1) has
elected to participate in the Fund, and (2) | 9 | | has become
permanently disabled and as a consequence is unable | 10 | | to perform the duties
of his office, and (3) was making | 11 | | optional contributions in accordance with
this Section at the | 12 | | time the disability was incurred, may elect to receive
a | 13 | | disability annuity calculated in accordance with the formula in
| 14 | | subsection (c). For the purposes of this subsection, such | 15 | | elected city
officer shall be considered permanently disabled | 16 | | only if: (i) disability
occurs while in service as an elected | 17 | | city officer and is of such a nature
as to prevent him from | 18 | | reasonably performing the duties of his office at
the time; and | 19 | | (ii) the board has received a written certification by at
least | 20 | | 2 licensed physicians appointed by it stating that such officer | 21 | | is
disabled and that the disability is likely to be permanent.
| 22 | | (e) Refunds of additional optional contributions shall be | 23 | | made on the
same basis and under the same conditions as | 24 | | provided under Sections 8-168,
8-170 and 8-171. Interest shall | 25 | | be credited at the effective rate on the
same basis and under | 26 | | the same conditions as for other contributions.
Optional |
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| 1 | | contributions shall be accounted for in a separate Elected City
| 2 | | Officer Optional Contribution Reserve. Optional contributions | 3 | | under this
Section shall be included in the amount of employee | 4 | | contributions used to
compute the tax levy under Section 8-173.
| 5 | | (f) The effective date of this plan of optional alternative | 6 | | benefits
and contributions shall be July 1, 1990, or the date | 7 | | upon which approval is
received from the U.S. Internal Revenue | 8 | | Service, whichever is later.
| 9 | | The plan of optional alternative benefits and | 10 | | contributions shall
not be available to any former city officer | 11 | | or employee receiving an
annuity from the Fund on the effective | 12 | | date of the plan, unless he
re-enters service as an elected | 13 | | city officer and renders at least 3 years
of additional service | 14 | | after the date of re-entry. However, a person who
holds office | 15 | | as a city officer on June 1, 1995 may
elect to participate in | 16 | | the plan, to transfer credits into the Fund from
other Articles | 17 | | of this Code, and to make the contributions required for prior
| 18 | | service, until 30 days after the effective date of this | 19 | | amendatory Act
of the 92nd General Assembly, notwithstanding | 20 | | the
ending of his term of
office prior to that effective date; | 21 | | in the event that the person is already
receiving an annuity | 22 | | from this Fund or any other Article of this Code at the
time of | 23 | | making this election, the annuity shall be recalculated to | 24 | | include any
increase resulting from participation in the plan, | 25 | | with such increase taking
effect on the effective date of the | 26 | | election.
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| 1 | | (g) Notwithstanding any other provision in this Section or | 2 | | in this Code to the contrary, any person who first becomes a | 3 | | city officer, as defined in this Section, on or after the | 4 | | effective date of this amendatory Act of the 99th General | 5 | | Assembly, shall not be eligible for the alternative annuity or | 6 | | alternative disability benefits as provided in subsections | 7 | | (a), (b), (c), and (d) of this Section or for the alternative | 8 | | survivor's benefits as provided in Section 8-243.3. Such person | 9 | | shall not be eligible, or be required, to make any additional | 10 | | contributions beyond those required of other participants | 11 | | under Sections 8-137, 8-174, and 8-182. The retirement annuity, | 12 | | disability benefits, and survivor's benefits for a person who | 13 | | first becomes a city officer on or after the effective date of | 14 | | this amendatory Act of the 99th General Assembly shall be | 15 | | determined pursuant to the provisions otherwise provided in | 16 | | this Article. | 17 | | (Source: P.A. 92-599, eff. 6-28-02.)
| 18 | | (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
| 19 | | Sec. 8-244. Annuities, etc., exempt.
| 20 | | (a) All annuities, refunds,
pensions, and disability | 21 | | benefits granted under this Article, shall be
exempt from | 22 | | attachment or garnishment process and shall not be seized,
| 23 | | taken, subjected to, detained, or levied upon by virtue of any | 24 | | judgment, or
any process or proceeding whatsoever issued out of | 25 | | or by any court in this
State, for the payment and satisfaction |
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| 1 | | in whole or in part of any debt,
damage, claim, demand, or | 2 | | judgment against any annuitant, pensioner,
participant, refund | 3 | | applicant, or other beneficiary hereunder.
| 4 | | (b) No annuitant, pensioner, refund applicant, or other | 5 | | beneficiary
shall have any right to transfer or assign his | 6 | | annuity, refund, or disability
benefit or any part thereof by | 7 | | way of mortgage or otherwise, except that:
| 8 | | (1) an annuitant or pensioner who
elects or has elected | 9 | | to participate in a non-profit group hospital care
plan or | 10 | | group medical surgical plan may with the approval of the | 11 | | board and
in conformity with its regulations authorize the | 12 | | board to withhold from the
pension or annuity the current | 13 | | premium for such coverage and pay such
premium to the | 14 | | organization underwriting such plan;
| 15 | | (2) in the case of refunds, a participant may pledge by | 16 | | assignment, power
of attorney, or otherwise, as security | 17 | | for a loan from a legally operating
credit union making | 18 | | loans only to participants in certain public employee
| 19 | | pension funds described in the Illinois Pension Code, all | 20 | | or part of any
refund which may become payable to him in | 21 | | the event of his separation from
service; and
| 22 | | (3) the board, in its discretion, may pay to the wife | 23 | | of any annuitant,
pensioner, refund applicant, or | 24 | | disability beneficiary, such an amount out of
her husband's | 25 | | annuity pension, refund, or disability benefit as any court | 26 | | of
competent jurisdiction may order, or such an amount as |
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| 1 | | the board may consider
necessary for the support of his | 2 | | wife or children, or both in the event of his
disappearance | 3 | | or unexplained absence or of his failure to support such | 4 | | wife
or children.
| 5 | | (c) The board may retain out of any future annuity, | 6 | | pension, refund or
disability benefit payments, such amount, or | 7 | | amounts, as it may require for
the repayment of any moneys paid | 8 | | to any annuitant, pensioner, refund
applicant, or disability | 9 | | beneficiary through misrepresentation, fraud or
error. Any | 10 | | such action of the board shall relieve and release the board | 11 | | and
the fund from any liability for any moneys so withheld.
| 12 | | (d) Whenever an annuity or disability benefit is payable to | 13 | | a minor or
to a person certified by a medical doctor to be | 14 | | under legal
disability, the board, in its discretion and when | 15 | | it is in the best
interest of the person concerned, may waive | 16 | | guardianship proceedings and pay
the annuity or benefit to the | 17 | | person providing or caring for the minor or
person under legal | 18 | | disability.
| 19 | | In the event that a person certified by a medical doctor to | 20 | | be under legal
disability (i) has no spouse, blood relative, or | 21 | | other person providing or
caring for him or her, (ii) has no | 22 | | guardian of his or her estate, and (iii) is
confined to a | 23 | | Medicare approved, State certified nursing home or to a | 24 | | publicly
owned and operated nursing home, hospital, or mental | 25 | | institution, the Board
may pay any benefit due that person to | 26 | | the nursing home, hospital, or mental
institution, to be used |
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| 1 | | for the sole benefit of the person under legal
disability.
| 2 | | Payment in accordance with this subsection to a person, | 3 | | nursing
home, hospital, or mental institution for the benefit | 4 | | of a minor or person
under legal disability shall be an | 5 | | absolute discharge of the Fund's liability
with respect to the | 6 | | amount so paid. Any person, nursing home, hospital, or
mental | 7 | | institution accepting payment under this subsection shall | 8 | | notify the
Fund of the death or any other relevant change in | 9 | | the status of the minor or
person under legal disability.
| 10 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 11 | | (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
| 12 | | Sec. 8-244.1. Payment of annuity other than direct.
| 13 | | (a) The board, at the written direction and request of any | 14 | | annuitant,
may, solely as an accommodation to such annuitant, | 15 | | pay the annuity due him
to a bank, savings and loan association | 16 | | or any other financial institution
insured by an agency of the | 17 | | federal government, for deposit to his account,
or to a bank or | 18 | | trust company for deposit in a trust established by him for
his | 19 | | benefit with such bank, savings and loan association or trust | 20 | | company,
and such annuitant may withdraw such direction at any
| 21 | | time. The board may also, in the case of any disability | 22 | | beneficiary or
annuitant for whom no estate guardian has been | 23 | | appointed and who is
confined in a publicly owned and operated | 24 | | mental institution, pay such
disability benefit or annuity due | 25 | | such person to the superintendent or
other head of such |
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| 1 | | institution or hospital for deposit to such person's
trust fund | 2 | | account maintained for him by such institution or hospital,
if | 3 | | by law such trust fund accounts are authorized or recognized.
| 4 | | (b) An annuitant formerly employed by the City of Chicago | 5 | | may authorize
the withholding of a portion of his or her | 6 | | annuity for payment of dues to the
labor organization which | 7 | | formerly represented the annuitant when the annuitant
was an | 8 | | active employee; however, no withholding shall be required | 9 | | under this
subsection for payment to one labor organization | 10 | | unless a minimum of 25
annuitants authorize such withholding. | 11 | | The Board shall prescribe a form for
the authorization of | 12 | | withholding of dues, release of name, social security
number | 13 | | and address and shall provide such forms to employees, | 14 | | annuitants and
labor organizations upon request. Amounts | 15 | | withheld by the Board under this
subsection shall be promptly | 16 | | paid over to the designated organizations,
indicating the | 17 | | names, social security numbers and addresses of annuitants on
| 18 | | whose behalf dues were withheld.
| 19 | | At the request and at the expense of the labor organization | 20 | | that formerly
represented the annuitant, the City of Chicago | 21 | | shall coordinate mailings no
more than twice in any | 22 | | twelve-month period to such annuitants and the Board
shall | 23 | | supply current annuitant addresses to the City of Chicago upon | 24 | | request.
These mailings shall be limited to informing the | 25 | | annuitants of their rights
under this subsection (b), the form | 26 | | authorizing the withholding of dues from
their annuity and |
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| 1 | | information supplied by the labor organization pertinent to
the | 2 | | decision of whether to exercise the rights of this subsection. | 3 | | To meet
this obligation, the City of Chicago shall, upon | 4 | | request, create and update
records of all retirees for each | 5 | | labor organization as far back in time as
records permit, | 6 | | including their names, addresses, phone numbers and social
| 7 | | security numbers.
| 8 | | (Source: P.A. 90-766, eff. 8-14-98.)
| 9 | | (40 ILCS 5/8-251) (from Ch. 108 1/2, par. 8-251)
| 10 | | Sec. 8-251. Felony conviction.
| 11 | | None of the benefits provided for in this Article shall be | 12 | | paid to any
person who is convicted of any felony relating to | 13 | | or arising out of or in
connection with his service as a | 14 | | municipal employee.
| 15 | | This section shall not operate to impair any contract or | 16 | | vested right
heretofore acquired under any law or laws | 17 | | continued in this Article, nor to
preclude the right to a | 18 | | refund.
| 19 | | Any refund required under this Article shall be calculated | 20 | | based on that person's contributions to the Fund, less the | 21 | | amount of any annuity benefit previously received by the person | 22 | | or his or her beneficiaries. The changes made to this Section | 23 | | by this amendatory Act of the 99th General Assembly apply only | 24 | | to persons who first become participants under this Article on | 25 | | or after the effective date of this amendatory Act of the 99th |
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| 1 | | General Assembly. | 2 | | All future entrants entering service subsequent to July 11, | 3 | | 1955 shall
be deemed to have consented to the provisions of | 4 | | this section as a
condition of coverage.
| 5 | | (Source: Laws 1963, p. 161.)
| 6 | | (40 ILCS 5/11-125.9 new) | 7 | | Sec. 11-125.9 Action by Fund against third party; | 8 | | subrogation. In those cases where the injury or death for which | 9 | | a disability or death benefit is payable under this Article was | 10 | | caused under circumstances creating a legal liability on the | 11 | | part of some person or entity (hereinafter "third party") to | 12 | | pay damages to the employee, legal proceedings may be taken | 13 | | against such third party to recover damages notwithstanding the | 14 | | Fund's payment of or liability to pay disability or death | 15 | | benefits under this Article. In such case, however, if the | 16 | | action against such third party is brought by the injured | 17 | | employee or his or her personal representative and judgment is | 18 | | obtained and paid, or settlement is made with such third party, | 19 | | either with or without suit, from the amount received by such | 20 | | employee or personal representative, then there shall be paid | 21 | | to the Fund the amount of money representing the death or | 22 | | disability benefits paid or to be paid to the disabled employee | 23 | | pursuant to the provisions of this Article. In all | 24 | | circumstances where the action against a third party is brought | 25 | | by the disabled employee or his or her personal representative, |
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| 1 | | the Fund shall have a claim or lien upon any recovery, by | 2 | | judgment or settlement, out of which the disabled employee or | 3 | | his or her personal representative might be compensated from | 4 | | such third party. The Fund may satisfy or enforce any such | 5 | | claim or lien only from that portion of a recovery that has | 6 | | been, or can be, allocated or attributed to past and future | 7 | | lost salary, which recovery is by judgment or settlement. The | 8 | | Fund's claim or lien shall not be satisfied or enforced from | 9 | | that portion of a recovery that has been, or can be, allocated | 10 | | or attributed to medical care and treatment, pain and | 11 | | suffering, loss of consortium, and attorney's fees and costs.
| 12 | | Where action is brought by the disabled employee or his or her | 13 | | personal representative he or she shall forthwith notify the | 14 | | Fund, by personal service or registered mail, of such fact and | 15 | | of the name of the court where such suit is brought, filing | 16 | | proof of such notice in such action. The Fund may, at any time | 17 | | thereafter, intervene in such action upon its own motion. | 18 | | Therefore, no release or settlement of claim for damages by | 19 | | reason of injury to the disabled employee, and no satisfaction | 20 | | of judgment in such proceedings, shall be valid without the | 21 | | written consent of the Board of Trustees authorized by this | 22 | | Code to administer the Fund created under this Article, except | 23 | | that such consent shall be provided expeditiously following a | 24 | | settlement or judgment. | 25 | | In the event the disabled employee or his or her personal | 26 | | representative has not instituted an action against a third |
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| 1 | | party at a time when only 3 months remain before such action | 2 | | would thereafter be barred by law, the Fund may, in its own | 3 | | name or in the name of the personal representative, commence a | 4 | | proceeding against such third party seeking the recovery of all | 5 | | damages on account of injuries caused to the employee. From any | 6 | | amount so recovered, the Fund shall pay to the personal | 7 | | representative of such disabled employee all sums collected | 8 | | from such third party by judgment or otherwise in excess of the | 9 | | amount of disability or death benefits paid or to be paid under | 10 | | this Article to the disabled employee or his or her personal | 11 | | representative, and such costs, attorney's fees, and | 12 | | reasonable expenses as may be incurred by the Fund in making | 13 | | the collection or in enforcing such liability. The Fund's | 14 | | recovery shall be satisfied only from that portion of a | 15 | | recovery that has been, or can be, allocated or attributed to | 16 | | past and future lost salary, which recovery is by judgment or | 17 | | settlement. The Fund's recovery shall not be satisfied from | 18 | | that portion of the recovery that has been or can be allocated | 19 | | or attributed to medical care and treatment, pain and | 20 | | suffering, loss of consortium, and attorney's fees and costs.
| 21 | | Additionally, with respect to any right of subrogation asserted | 22 | | by the Fund under this Section, the Fund, in the exercise of | 23 | | discretion, may determine what amount from past or future | 24 | | salary shall be appropriate under the circumstances to collect | 25 | | from the recovery obtained on behalf of the disabled employee. | 26 | | This Section applies only to persons who first become |
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| 1 | | members or participants under this Article on or after the | 2 | | effective date of this amendatory Act of 99th General Assembly.
| 3 | | (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
| 4 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 5 | | which has been held unconstitutional) | 6 | | Sec. 11-169. Financing; tax levy.
| 7 | | (a) Except as provided in subsection (f) of this Section, | 8 | | the city
council of the city shall levy a tax annually upon all | 9 | | taxable property in the
city at the rate that will produce a | 10 | | sum which, when added to the amounts
deducted from the salaries | 11 | | of the employees or otherwise contributed by them
and the | 12 | | amounts deposited under subsection (f), will be sufficient for | 13 | | the
requirements of this Article. For the years prior to the | 14 | | year 1950 the tax
rate shall be as provided for under "The 1935 | 15 | | Act". Beginning with the year
1950 to and including the year | 16 | | 1969 such tax shall be not more than .036%
annually of the | 17 | | value, as equalized or assessed by the Department of Revenue,
| 18 | | of all taxable property within such city. Beginning with the | 19 | | year 1970 and
each year thereafter through levy year 2016, the | 20 | | city shall levy a tax annually at a rate on the dollar
of the | 21 | | value, as equalized or assessed by the Department of Revenue
of | 22 | | all taxable property within such city that will
produce, when | 23 | | extended, not to exceed an amount equal to the total
amount of | 24 | | contributions by the employees to the fund
made in the calendar | 25 | | year 2 years prior to the year for which the annual
applicable |
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| 1 | | tax is levied, multiplied by 1.1 for the years 1970, 1971 and
| 2 | | 1972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235 | 3 | | for the
year 1975; 1.280 for the year 1976; 1.325 for the year | 4 | | 1977; 1.370
for the years 1978 through 1998; and 1.000 for the | 5 | | year 1999
and for each year thereafter through levy year 2016. | 6 | | Beginning in levy year 2017, and in each year thereafter, the | 7 | | levy shall not exceed the amount of the city's total required | 8 | | contribution to the Fund for the next payment year, as | 9 | | determined under subsection (a-5). For the purposes of this | 10 | | Section, the payment year is the year immediately following the | 11 | | levy year .
| 12 | | The tax shall be levied and collected in like manner with | 13 | | the general
taxes of the city, and shall be exclusive of and in | 14 | | addition to the
amount of tax the city is now or may hereafter | 15 | | be authorized to levy for
general purposes under any laws which | 16 | | may limit the amount of tax which
the city may levy for general | 17 | | purposes. The county clerk of the county
in which the city is | 18 | | located, in reducing tax levies under the
provisions of any Act | 19 | | concerning the levy and extension of taxes, shall
not consider | 20 | | the tax herein provided for as a part of the general tax
levy | 21 | | for city purposes, and shall not include the same within any
| 22 | | limitation of the per cent of the assessed valuation upon which | 23 | | taxes
are required to be extended for such city.
| 24 | | Revenues derived from such tax shall be paid to the city | 25 | | treasurer of
the city as collected and held by the city | 26 | | treasurer him for the benefit of the fund.
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| 1 | | If the payments on account of taxes are insufficient during | 2 | | any year
to meet the requirements of this Article, the city may | 3 | | issue tax
anticipation warrants against the current tax levy.
| 4 | | The city may continue to use other lawfully available funds | 5 | | in lieu of all or part of the levy, as provided under | 6 | | subsection (f) of this Section. | 7 | | (a-5) (1) Beginning in payment year 2018, the city's | 8 | | required annual contribution to the Fund for payment years 2018 | 9 | | through 2022 shall be: for 2018, $36,000,000; for 2019, | 10 | | $48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and | 11 | | for 2022, $84,000,000. | 12 | | (2) For payment years 2023 through 2058, the city's | 13 | | required annual contribution to the Fund shall be the amount | 14 | | determined by the Fund to be equal to the sum of (i) the city's | 15 | | portion of projected normal cost for that fiscal year, plus | 16 | | (ii) an amount determined on a level percentage of applicable | 17 | | employee payroll basis that is sufficient to bring the total | 18 | | actuarial assets of the Fund up to 90% of the total actuarial | 19 | | liabilities of the Fund by the end of 2058. | 20 | | (3) For payment years after 2058, the city's required | 21 | | annual contribution to the Fund shall be equal to the amount, | 22 | | if any, needed to bring the total actuarial assets of the Fund | 23 | | up to 90% of the total actuarial liabilities of the Fund as of | 24 | | the end of the year. In making the determinations under | 25 | | paragraphs (2) and (3) of this subsection, the actuarial | 26 | | calculations shall be determined under the entry age normal |
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| 1 | | actuarial cost method, and any actuarial gains or losses from | 2 | | investment return incurred in a fiscal year shall be recognized | 3 | | in equal annual amounts over the 5-year period following the | 4 | | fiscal year. | 5 | | To the extent that the city's contribution for any of the | 6 | | payment years referenced in this subsection is made with | 7 | | property taxes, those property taxes shall be levied, | 8 | | collected, and paid to the Fund in a like manner with the | 9 | | general taxes of the city. | 10 | | (a-10) If the city fails to transmit to the Fund | 11 | | contributions required of it under this Article by December 31 | 12 | | of the year in which such contributions are due, the Fund may, | 13 | | after giving notice to the city, certify to the State | 14 | | Comptroller the amounts of the delinquent payments, and the | 15 | | Comptroller must, beginning in payment year 2018, deduct and | 16 | | deposit into the Fund the certified amounts or a portion of | 17 | | those amounts from the following proportions of grants of State | 18 | | funds to the city: | 19 | | (1) in payment year 2018, one-third of the total amount | 20 | | of any grants of State funds to the city; | 21 | | (2) in payment year 2019, two-thirds of the total | 22 | | amount of any grants of State funds to the city; and | 23 | | (3) in payment year 2020 and each payment year | 24 | | thereafter, the total amount of any grants of State funds | 25 | | to the city. | 26 | | The State Comptroller may not deduct from any grants of |
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| 1 | | State funds to the city more than the amount of delinquent | 2 | | payments certified to the State Comptroller by the Fund. | 3 | | (b) On or before July 1, 2017, and each July 1 thereafter | 4 | | January 10, annually , the board shall certify to notify the
| 5 | | city council the annual amounts required under of the | 6 | | requirement of this Article , for which that the tax herein
| 7 | | provided shall be levied for the following that current year. | 8 | | The board shall compute
the amounts necessary for the purposes | 9 | | of this fund to be credited to
the reserves established and | 10 | | maintained as herein provided, and shall
make an annual | 11 | | determination of the amount of the required city
contributions; | 12 | | and certify the results thereof to the city council.
| 13 | | (c) In respect to employees of the city who are transferred | 14 | | to the
employment of a park district by virtue of "Exchange of | 15 | | Functions Act of
1957" the corporate authorities of the park | 16 | | district shall annually levy
a tax upon all the taxable | 17 | | property in the park district at such rate
per cent of the | 18 | | value of such property, as equalized or assessed by the
| 19 | | Department of Revenue, as shall be sufficient, when
added to | 20 | | the amounts deducted from their salaries and
otherwise | 21 | | contributed by them, to provide the benefits to which they and
| 22 | | their dependents and beneficiaries are entitled under this | 23 | | Article. The
city shall not levy a tax hereunder in respect to | 24 | | such employees.
| 25 | | The tax so levied by the park district shall be in addition | 26 | | to and
exclusive of all other taxes authorized to be levied by |
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| 1 | | the park
district for corporate, annuity fund, or other | 2 | | purposes. The county
clerk of the county in which the park | 3 | | district is located, in reducing
any tax levied under the | 4 | | provisions of any Act concerning the levy and
extension of | 5 | | taxes shall not consider such tax as part of the general
tax | 6 | | levy for park purposes, and shall not include the same in any
| 7 | | limitation of the per cent of the assessed valuation upon which | 8 | | taxes
are required to be extended for the park district. The | 9 | | proceeds of the
tax levied by the park district, upon receipt | 10 | | by the district, shall be
immediately paid over to the city | 11 | | treasurer of the city for the uses and
purposes of the fund.
| 12 | | The various sums to be contributed by the city and | 13 | | allocated for the
purposes of this Article, and any interest to | 14 | | be contributed by the city,
shall be taken from the revenue | 15 | | derived from the taxes authorized in this
Section, and no money | 16 | | of such city derived from any source other than
the levy and | 17 | | collection of those taxes or the sale of tax
anticipation | 18 | | warrants in accordance with the provisions of this Article | 19 | | shall
be used to provide revenue for this Article, except as | 20 | | expressly provided in
this Section.
| 21 | | If it is not possible for the city to make contributions | 22 | | for age and
service annuity and widow's annuity concurrently | 23 | | with the employee's
contributions made for such purposes, such | 24 | | city shall
make such contributions as soon as possible and | 25 | | practicable thereafter
with interest thereon at the effective | 26 | | rate to the time they shall be
made.
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| 1 | | (d) With respect to employees whose wages are funded as | 2 | | participants
under the Comprehensive Employment and Training | 3 | | Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 4 | | 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 5 | | subsequent to October 1, 1978, and in instances
where the board | 6 | | has elected to establish a manpower program reserve, the
board | 7 | | shall compute the amounts necessary to be credited to the | 8 | | manpower
program reserves established and maintained as herein | 9 | | provided, and
shall make a periodic determination of the amount | 10 | | of required
contributions from the City to the reserve to be | 11 | | reimbursed by the
federal government in accordance with rules | 12 | | and regulations established
by the Secretary of the United | 13 | | States Department of Labor or his
designee, and certify the | 14 | | results thereof to the City Council. Any such
amounts shall | 15 | | become a credit to the City and will be used to reduce the
| 16 | | amount which the City would otherwise contribute during | 17 | | succeeding years
for all employees.
| 18 | | (e) In lieu of establishing a manpower program reserve with | 19 | | respect
to employees whose wages are funded as participants | 20 | | under the
Comprehensive Employment and Training Act of 1973, as | 21 | | authorized by
subsection (d), the board may elect to establish | 22 | | a special municipality
contribution rate for all such | 23 | | employees. If this option is elected,
the City shall contribute | 24 | | to the Fund from federal funds provided under
the Comprehensive | 25 | | Employment and Training Act program at the special
rate so | 26 | | established and such contributions shall become a credit to the
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| 1 | | City and be used to reduce the amount which the City would | 2 | | otherwise
contribute during succeeding years for all | 3 | | employees.
| 4 | | (f) In lieu of levying all or a portion of the tax required | 5 | | under this
Section in any year, the city may deposit with the | 6 | | city treasurer no later than
March 1 of that year for the | 7 | | benefit of the fund, to be held in accordance with
this | 8 | | Article, an amount that, together with the taxes levied under | 9 | | this Section
for that year, is not less than the amount of the | 10 | | city contributions for that
year as certified by the board to | 11 | | the city council. The deposit may be derived
from any source | 12 | | legally available for that purpose, including, but not limited
| 13 | | to, the proceeds of city borrowings. The making of a deposit | 14 | | shall satisfy
fully the requirements of this Section for that | 15 | | year to the extent of the
amounts so deposited. Amounts | 16 | | deposited under this subsection may be used by
the fund for any | 17 | | of the purposes for which the proceeds of the tax levied by
the | 18 | | city under this Section may be used, including the payment of | 19 | | any amount
that is otherwise required by this Article to be | 20 | | paid from the proceeds of that
tax.
| 21 | | (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
| 22 | | (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
| 23 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 24 | | which has been held unconstitutional) | 25 | | Sec. 11-170. Contributions for age and service annuities |
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| 1 | | for present
employees, future entrants and re-entrants.
| 2 | | (a) Beginning on the effective date and prior to July 1, | 3 | | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | 4 | | 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, | 5 | | 1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment | 6 | | of the salary of each present
employee, future entrant and | 7 | | re-entrant , except as provided in subsections (a-5) and (a-10), | 8 | | shall be contributed to the fund
as a deduction from salary for | 9 | | age and service annuity. | 10 | | (a-5) Except as provided in subsection (a-10), for an | 11 | | employee who on or after January 1, 2011 and prior to the | 12 | | effective date of this amendatory Act of the 99th General | 13 | | Assembly first became a member or participant under this | 14 | | Article and made the election under item (i) of subsection | 15 | | (d-10) of Section 1-160: prior to the effective date of this | 16 | | amendatory Act of the 99th General Assembly, 6.5%; and | 17 | | beginning on the effective date of this amendatory Act of the | 18 | | 99th General Assembly and prior to January 1, 2018, 7.5%; and | 19 | | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | 20 | | and beginning January 1, 2019 and thereafter, employee
| 21 | | contributions for those employees who made the
election under | 22 | | item (i) of subsection (d-10) of Section 1-160
shall be the | 23 | | lesser of: (i) the total normal cost, calculated
using the | 24 | | entry age normal actuarial method, projected for that
fiscal | 25 | | year for the benefits and expenses of the plan of
benefits | 26 | | applicable to those members and participants who first became |
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| 1 | | members or participants on or after the effective date
of this | 2 | | amendatory Act of the 99th General Assembly and to
those | 3 | | employees who made the election under item (i) of
subsection | 4 | | (d-10) of Section 1-160, but not less than 6.5% of
each payment | 5 | | of salary combined with the employee contributions
provided for | 6 | | in subsection (b) of Section 11-134.1 and Section
11-174 of | 7 | | this Article; or
(ii) the aggregate employee contribution | 8 | | consisting of 9.5% of
each payment of salary combined with the | 9 | | employee contributions
provided for in subsection (b) of | 10 | | Section 11-134.1 and 11-174 of
this Article. | 11 | | Beginning with
the first pay period on or after the date | 12 | | when the funded ratio
of the fund is first determined to have | 13 | | reached the 90% funding
goal, and each pay period thereafter | 14 | | for as long as the fund
maintains a funding ratio of 75% or | 15 | | more, employee
contributions for age and service annuity for | 16 | | those employees
who made the election under item (i) of | 17 | | subsection (d-10) of
Section 1-160 shall be 5.5% of each | 18 | | payment of salary. If the
funding ratio falls below 75%, then | 19 | | employee contributions for age and service annuity for those | 20 | | employees who made the
election under item (i) of subsection | 21 | | (d-10) shall revert to the lesser of: (A) the total normal | 22 | | cost, calculated
using the entry age normal actuarial method, | 23 | | projected for that
fiscal year for the benefits and expenses of | 24 | | the plan of
benefits applicable to those members and | 25 | | participants who first became members or participants on or | 26 | | after the effective date
of this amendatory Act of the 99th |
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| 1 | | General Assembly and to
those employees who made the election | 2 | | under item (i) of
subsection (d-10) of Section 1-160, but not | 3 | | less than 6.5% of
each payment of salary combined with the | 4 | | employee contributions
provided for in subsection (b) of | 5 | | Section 11-134.1 and Section
11-174 of this Article; or
(B) the | 6 | | aggregate employee contribution consisting of 9.5% of
each | 7 | | payment of salary combined with the employee contributions
| 8 | | provided for in subsection (b) of Section 11-134.1 and 11-174 | 9 | | of
this Article. If the fund once again is determined to
have | 10 | | reached a funding ratio of 75%, the 5.5% of
salary contribution | 11 | | for age and service annuity shall resume.
An employee who made | 12 | | the election under item (ii) of subsection
(d-10) of Section | 13 | | 1-160 shall continue to have the
contributions for age and | 14 | | service annuity determined under
subsection (a) of this | 15 | | Section. | 16 | | If contributions are reduced to less than the
aggregate | 17 | | employee contribution described in item (ii) or item (B) of | 18 | | this
subsection due to application of the normal cost | 19 | | criterion,
the employee contribution amount shall be
| 20 | | consistent from July 1 of the fiscal year
through June 30 of | 21 | | that fiscal year. | 22 | | The normal cost, for the purposes of this subsection (a-5) | 23 | | and subsection (a-10), shall be calculated by an independent | 24 | | enrolled actuary mutually agreed upon by the fund and the City. | 25 | | The fees and expenses of the independent actuary shall be the | 26 | | responsibility of the City. For purposes of this subsection |
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| 1 | | (a-5), the fund and the City shall both be considered to be the | 2 | | clients of the actuary, and the actuary shall utilize | 3 | | participant data and actuarial standards to calculate the | 4 | | normal cost. The fund shall provide information that the | 5 | | actuary requests in order to calculate the applicable normal | 6 | | cost. | 7 | | (a-10) For each employee who on or after the effective date | 8 | | of this amendatory Act of the 99th General Assembly first | 9 | | becomes a member or participant under this Article, 9.5% of | 10 | | each payment of salary shall be contributed to the fund as a | 11 | | deduction from salary for age and service annuity. Beginning | 12 | | January 1, 2018
and each year thereafter, employee | 13 | | contributions
for each employee subject to this subsection | 14 | | (a-10) shall be
the lesser of: (i) the total normal cost, | 15 | | calculated using the entry age normal actuarial method, | 16 | | projected for that
fiscal year for the benefits and expenses of | 17 | | the plan of
benefits applicable to those members and | 18 | | participants who first
become members or participants on or | 19 | | after the effective date of this amendatory Act of the 99th | 20 | | General Assembly and to
those employees who made the election | 21 | | under item (i) of
subsection (d-10) of Section 1-160, but not | 22 | | less than 6.5% of
each payment of salary combined with the | 23 | | employee contributions
provided for in subsection (b) of | 24 | | Section 11-134.1 and Section
11-174 of this Article; or (ii) | 25 | | the aggregate
employee contribution consisting of 9.5% of each | 26 | | payment of
salary combined with the employee contributions |
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| 1 | | provided for in
subsection (b) of Section 11-134.1 and Section | 2 | | 11-174 of this
Article. | 3 | | Beginning with the first pay period on or after the date | 4 | | when the funded ratio of the fund is first determined to have | 5 | | reached the 90% funding goal, and each pay period thereafter | 6 | | for as long as the fund maintains a funding ratio of 75% or | 7 | | more, employee contributions for age and service annuity for | 8 | | each employee subject to this subsection (a-10) shall be 5.5% | 9 | | of each payment of salary. If the funding ratio falls below | 10 | | 75%, then employee contributions for age and service annuity | 11 | | for each employee subject to this subsection (a-10) shall | 12 | | revert to the lesser of: (A) the total normal cost, calculated | 13 | | using the entry age normal actuarial method, projected for that
| 14 | | fiscal year for the benefits and expenses of the plan of
| 15 | | benefits applicable to those members and participants who first
| 16 | | become members or participants on or after the effective date | 17 | | of this amendatory Act of the 99th General Assembly and to
| 18 | | those employees who made the election under item (i) of
| 19 | | subsection (d-10) of Section 1-160, but not less than 6.5% of
| 20 | | each payment of salary combined with the employee contributions
| 21 | | provided for in subsection (b) of Section 11-134.1 and Section
| 22 | | 11-174 of this Article; or (B) the aggregate
employee | 23 | | contribution consisting of 9.5% of each payment of
salary | 24 | | combined with the employee contributions provided for in
| 25 | | subsection (b) of Section 11-134.1 and Section 11-174 of this
| 26 | | Article. If the fund once again is determined to have reached a |
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| 1 | | funding ratio of 75%, the 5.5% of salary contribution for age | 2 | | and service annuity shall resume. | 3 | | If contributions are reduced to less than the
aggregate | 4 | | employee contribution described in item (ii) or item (B) of | 5 | | this
subsection (a-10) due to application of the normal cost
| 6 | | criterion, the employee contribution amount shall be | 7 | | consistent from July 1 of the fiscal year through June 30
of | 8 | | that fiscal year. | 9 | | Such deductions
beginning on the effective date and prior | 10 | | to June 30, 1947, inclusive
shall be made for a future entrant | 11 | | while he is in service until he
attains age 65, and for a | 12 | | present employee while he is in service until
the amount so | 13 | | deducted from his salary with interest at the rate of 4%
per | 14 | | annum shall be equal to the sum which would have accumulated to | 15 | | his
credit from sums deducted from his salary if deductions at | 16 | | the rate
herein stated had been made during his entire service | 17 | | until he attained
age 65 with interest at 4% per annum for the | 18 | | period subsequent to his
attainment of age 65. Such deductions | 19 | | beginning July 1, 1947 shall be
made and continued for | 20 | | employees while in the service.
| 21 | | (b) (Blank). Concurrently with each employee contribution, | 22 | | the city shall
contribute beginning on the effective date and | 23 | | prior to July 1, 1947, 5
3/4%; and beginning July 1, 1947 and | 24 | | prior to July 1, 1953, 7%; and
beginning July 1, 1953, 6% of | 25 | | each payment of such salary until the
employee attains age 65.
| 26 | | (c) Each employee contribution made prior to the date age |
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| 1 | | and
service annuity for an employee is fixed and each | 2 | | corresponding city
contribution shall be allocated to the | 3 | | account of and credited to the
employee for whose benefit it is | 4 | | made.
| 5 | | (d) Notwithstanding Section 1-103.1, the changes to this | 6 | | Section made by this amendatory Act of the 99th General | 7 | | Assembly apply regardless of whether the employee was in active | 8 | | service on or after the effective date of this amendatory Act. | 9 | | (Source: P.A. 81-1536.) | 10 | | (40 ILCS 5/11-197.7 new) | 11 | | Sec. 11-197.7. Payment of annuity other than direct. The | 12 | | board, at the written direction and request of any annuitant, | 13 | | may, solely as an accommodation to such annuitant, pay the | 14 | | annuity due him or her to a bank, savings and loan association, | 15 | | or any other financial institution insured by an agency of the | 16 | | federal government, for deposit to his or her account, or to a | 17 | | bank or trust company for deposit in a trust established by him | 18 | | or her for his benefit with such bank, savings and loan | 19 | | association, or trust company, and such annuitant may withdraw | 20 | | such direction at any time. The board may also, in the case of | 21 | | any disability beneficiary or annuitant for whom no estate | 22 | | guardian has been appointed and who is confined in a publicly | 23 | | owned and operated mental institution, pay such disability | 24 | | benefit or annuity due such person to the superintendent or | 25 | | other head of such institution or hospital for deposit to such |
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| 1 | | person's trust fund account maintained for him or her by such | 2 | | institution or hospital, if by law such trust fund accounts are | 3 | | authorized or recognized.
| 4 | | (40 ILCS 5/11-223.1) (from Ch. 108 1/2, par. 11-223.1)
| 5 | | Sec. 11-223.1. Assignment for health, hospital and medical | 6 | | insurance.
| 7 | | The board may provide, by regulation, that any annuitant or | 8 | | pensioner,
may assign his annuity or disability benefit, or any | 9 | | part thereof, for the
purpose of premium payment for a | 10 | | membership for the annuitant, and his or
her spouse and | 11 | | children, in a non-profit group hospital care plan or group
| 12 | | medical surgical plan, provided, however, that the board may, | 13 | | in its
discretion, terminate the right of assignment. Any such | 14 | | hospital or medical
insurance plan may include provision for | 15 | | the beneficiaries thereof who rely
on treatment by spiritual | 16 | | means alone through prayer for healing in
accordance with the | 17 | | tenets and practice of a well recognized religious
| 18 | | denomination.
| 19 | | Upon the adoption of a regulation permitting such | 20 | | assignment, the board
shall establish and administer a plan for | 21 | | the maintenance of the insurance
plan membership by the | 22 | | annuitant or pensioner.
| 23 | | (Source: Laws 1965, p. 2290.)
| 24 | | (40 ILCS 5/11-230) (from Ch. 108 1/2, par. 11-230)
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| 1 | | Sec. 11-230. Felony conviction.
| 2 | | None of the benefits provided in this Article shall be paid | 3 | | to any
person who is convicted of any felony relating to or | 4 | | arising out of or in
connection with his service as employee.
| 5 | | This section shall not operate to impair any contract or | 6 | | vested right
heretofore acquired under any law or laws | 7 | | continued in this Article, nor to
preclude the right to a | 8 | | refund.
| 9 | | Any refund required under this Article shall be calculated | 10 | | based on that person's contributions to the Fund, less the | 11 | | amount of any annuity benefit previously received by the person | 12 | | or his or her beneficiaries. The changes made to this Section | 13 | | by this amendatory Act of the 99th General Assembly apply only | 14 | | to persons who first become members or participants under this | 15 | | Article on or after the effective date of this amendatory Act | 16 | | of the 99th General Assembly. | 17 | | All future entrants entering service after July 11, 1955, | 18 | | shall be
deemed to have consented to the provisions of this | 19 | | section as a condition
of coverage.
| 20 | | (Source: Laws 1963, p. 161.)
| 21 | | (40 ILCS 5/8-173.1 rep.) | 22 | | (40 ILCS 5/11-169.1 rep.) | 23 | | Section 10. The Illinois Pension Code is amended by | 24 | | repealing Sections 8-173.1 and 11-169.1. |
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| 1 | | Section 90. The State Mandates Act is amended by adding | 2 | | Section 8.40 as follows: | 3 | | (30 ILCS 805/8.40 new) | 4 | | Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8 | 5 | | of this Act, no reimbursement by the State is required for the | 6 | | implementation of any mandate created by this amendatory Act of | 7 | | the 99th General Assembly. | 8 | | Section 97. Inseverability and severability. The changes
| 9 | | made by this Act are inseverable, except that the changes made | 10 | | to
Sections 8-228.5 and 11-125.9 of the Illinois Pension Code | 11 | | are severable under
Section 1.31 of the Statute on Statutes.
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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