Full Text of HB1686 95th General Assembly
HB1686 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1686
Introduced 2/22/2007, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/8-137 |
from Ch. 108 1/2, par. 8-137 |
40 ILCS 5/8-173 |
from Ch. 108 1/2, par. 8-173 |
30 ILCS 805/8.31 new |
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Amends the Chicago Municipal Article of the Illinois Pension Code. Provides that the annual annuity increase for a person first employed under the Article on or after the effective date shall be at a rate of 3% of the
original fixed annuity (instead of 3% of the current payable monthly annuity). Provides that the city council
of the city shall levy a tax annually upon all taxable property in the city at
a rate that will produce a sum that will be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Municipal Employees', Officers', and Officials' Annuity and Benefit Fund by the end of fiscal year 2016 (instead of a sum that will be sufficient for the requirements of the Article, with a maximum provided). Amends the State Mandates Act to require implementation without reimbursement.
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FISCAL NOTE ACT MAY APPLY |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
| STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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A BILL FOR
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HB1686 |
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LRB095 10134 AMC 30348 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 8-137 and 8-173 as follows:
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| (40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
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| Sec. 8-137. Automatic increase in annuity.
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| (a) An employee who retired or retires from service after | 9 |
| December 31,
1959 and before January 1, 1987, having attained | 10 |
| age 60 or more, shall,
in January of the year
after the year in | 11 |
| which the first anniversary of retirement occurs, have
the | 12 |
| amount of his then fixed and payable monthly annuity increased | 13 |
| by 1
1/2%, and such first fixed annuity as granted at | 14 |
| retirement increased by
a further 1 1/2% in January of each | 15 |
| year thereafter. Beginning with
January of the year 1972, such | 16 |
| increases shall be at the rate of 2% in
lieu of the aforesaid | 17 |
| specified 1 1/2%, and beginning with January of the
year 1984 | 18 |
| such increases shall be at the rate of 3%.
Beginning in January | 19 |
| of 1999, such increases
shall be at the rate of 3% of the | 20 |
| currently payable monthly annuity,
including any increases | 21 |
| previously granted under this Article. An
employee who retires | 22 |
| on annuity after December 31, 1959 and before
January 1, 1987, | 23 |
| but before age 60, shall receive such
increases beginning in |
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LRB095 10134 AMC 30348 b |
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| January of the year after the year
in which he attains age 60.
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| An employee who retires from service on or after January 1, | 3 |
| 1987 shall, upon
the first annuity payment date following the | 4 |
| first anniversary of the date of
retirement, or upon the first | 5 |
| annuity payment date following attainment of age
60, whichever | 6 |
| occurs later, have his then fixed and payable monthly annuity
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| increased by 3%, and such annuity shall be increased by an | 8 |
| additional 3% of the
original fixed annuity on the same date | 9 |
| each year thereafter. Beginning in
January of 1999, such | 10 |
| increases shall be at the rate of 3% of the currently
payable | 11 |
| monthly annuity, including any increases previously granted | 12 |
| under this
Article.
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| (a-5) Notwithstanding the provisions of subsection (a), | 14 |
| upon the first
annuity payment date following (1) the third | 15 |
| anniversary of retirement, (2)
the attainment of age 53, or (3) | 16 |
| January 1, 2002, whichever
occurs latest,
the
monthly annuity | 17 |
| of an employee who retires on annuity prior to the attainment
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| of age 60 and has not received an increase under subsection (a) | 19 |
| shall
be
increased by 3%, and the annuity shall be increased by | 20 |
| an additional
3% of the
current payable monthly annuity, | 21 |
| including any
increases previously
granted
under this Article, | 22 |
| on the same date each year thereafter. The increases
provided | 23 |
| under this subsection are in lieu of the increases provided in
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| subsection (a).
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| (a-6) Notwithstanding the provisions of subsections (a) | 26 |
| and (a-5), for all
calendar years following the year in which |
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LRB095 10134 AMC 30348 b |
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| this amendatory Act of the 93rd
General Assembly takes effect, | 2 |
| an increase in annuity under this Section that
would otherwise | 3 |
| take effect at any time during the year shall instead take
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| effect in January of that year.
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| (a-10) Notwithstanding the provisions of subsections (a) | 6 |
| and (a-5), the annual annuity increase under this Section for a | 7 |
| person first employed under this Article on or after the | 8 |
| effective date of this amendatory Act of the 95th General | 9 |
| Assembly shall be at a rate of 3% of the
original fixed | 10 |
| annuity.
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| (b) Subsections (a), (a-5), and (a-6) are not
applicable to | 12 |
| an employee retiring
and receiving a term annuity, as herein | 13 |
| defined, nor to any otherwise
qualified employee who retires | 14 |
| before he makes employee contributions (at
the 1/2 of 1% rate | 15 |
| as provided in this Act) for this additional
annuity for not | 16 |
| less than the equivalent of one full year. Such
employee, | 17 |
| however, shall make arrangement to pay to the fund a balance
of | 18 |
| such 1/2 of 1% contributions, based on his final salary, as | 19 |
| will
bring such 1/2 of 1% contributions, computed without | 20 |
| interest, to the
equivalent of or completion of one year's | 21 |
| contributions.
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| Beginning with January, 1960, each employee shall | 23 |
| contribute by means of
salary deductions 1/2 of 1% of each | 24 |
| salary payment, concurrently with
and in addition to the | 25 |
| employee contributions otherwise made for annuity
purposes.
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| Each such additional contribution shall be credited to an |
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LRB095 10134 AMC 30348 b |
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| account in
the prior service annuity reserve, to be used, | 2 |
| together with city
contributions, to defray the cost of the | 3 |
| specified annuity increments.
Any balance in such account at | 4 |
| the beginning of each calendar year shall
be credited with | 5 |
| interest at the rate of 3% per annum.
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| Such additional employee contributions are not refundable, | 7 |
| except to
an employee who withdraws and applies for refund | 8 |
| under this Article, and
in cases where a term annuity becomes | 9 |
| payable. In such cases his
contributions shall be refunded, | 10 |
| without interest, and charged to such
account in the prior | 11 |
| service annuity reserve.
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| (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02; | 13 |
| 93-654, eff. 1-16-04.)
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| (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
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| Sec. 8-173. Financing; tax levy.
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| (a) Except as provided in subsection (f) of this Section, | 17 |
| the city council
of the city shall levy a tax annually upon all | 18 |
| taxable property in the city at
a rate that will produce a sum | 19 |
| which, when added to the amounts deducted from
the salaries of | 20 |
| the employees or otherwise contributed by them and the
amounts | 21 |
| deposited under subsection (f), will be sufficient to bring the | 22 |
| total assets of the Fund up to 90% of the total actuarial | 23 |
| liabilities of the Fund by the end of fiscal year 2016.
for the
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| requirements of this Article, but which when extended will | 25 |
| produce an amount
not to exceed the greater of the following: |
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LRB095 10134 AMC 30348 b |
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| (a) the sum obtained by the levy
of a tax of .1093% of the | 2 |
| value, as equalized or assessed by the Department
of Revenue, | 3 |
| of all taxable property within such city, or (b) the sum of
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| $12,000,000.
However any city in which a Fund has been | 5 |
| established and in operation
under this Article for more than 3 | 6 |
| years prior to 1970 shall
levy for the year 1970 a tax at a rate | 7 |
| on the dollar of assessed
valuation of all taxable property | 8 |
| that will produce, when extended, an
amount not to exceed 1.2 | 9 |
| times the total amount of contributions made by
employees to | 10 |
| the Fund for annuity purposes in the calendar year 1968,
and, | 11 |
| for the year 1971 and 1972 such levy that will produce, when
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| extended, an amount not to exceed 1.3 times the total amount of
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| contributions made by employees to the Fund for annuity
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| purposes in the calendar years 1969 and 1970, respectively; and | 15 |
| for the
year 1973 an amount not to exceed 1.365 times such | 16 |
| total amount of
contributions made by employees for annuity | 17 |
| purposes in the calendar
year 1971; and for the year 1974 an | 18 |
| amount not to exceed 1.430 times
such total amount of | 19 |
| contributions made by employees for annuity
purposes in the | 20 |
| calendar year 1972; and for the year 1975 an amount not
to | 21 |
| exceed 1.495 times such total amount of contributions made by
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| employees for annuity purposes in the calendar year 1973; and | 23 |
| for the year 1976
an amount not to exceed 1.560 times such | 24 |
| total amount of contributions made by
employees for annuity | 25 |
| purposes in the calendar year 1974; and for the year 1977
an | 26 |
| amount not to exceed 1.625 times such total amount of |
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LRB095 10134 AMC 30348 b |
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| contributions made by
employees for annuity purposes in the | 2 |
| calendar year 1975; and for the year 1978
and each year | 3 |
| thereafter, such levy as will produce, when
extended, an amount | 4 |
| not to exceed the total amount of
contributions made by or on | 5 |
| behalf of employees to the Fund for annuity
purposes in the | 6 |
| calendar year 2 years prior to the year for which the annual
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| applicable tax is levied, multiplied by 1.690 for the years | 8 |
| 1978 through 1998
and by 1.250 for the year 1999 and for each | 9 |
| year thereafter.
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| The tax shall be levied and collected in like manner with | 11 |
| the general
taxes of the city, and shall be exclusive of and in | 12 |
| addition to the
amount of tax the city is now or may hereafter | 13 |
| be authorized to levy for
general purposes under any laws which | 14 |
| may limit the amount of tax which
the city may levy for general | 15 |
| purposes. The county clerk of the county
in which the city is | 16 |
| located, in reducing tax levies under the
provisions of any Act | 17 |
| concerning the levy and extension of taxes, shall
not consider | 18 |
| the tax herein provided for as a part of the general tax
levy | 19 |
| for city purposes, and shall not include the same within any
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| limitation of the percent of the assessed valuation upon which | 21 |
| taxes are
required to be extended for such city.
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| Revenues derived from such tax shall be paid to the city | 23 |
| treasurer of
the city as collected and held by him for the | 24 |
| benefit of the fund.
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| If the payments on account of taxes are insufficient during | 26 |
| any year
to meet the requirements of this Article, the city may |
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LRB095 10134 AMC 30348 b |
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| issue tax
anticipation warrants against the current tax levy.
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| (b) On or before January 10, annually, the board shall | 3 |
| notify the
city council of the requirements of this Article | 4 |
| that the tax herein
provided shall be levied for that current | 5 |
| year. The board shall compute
the amounts necessary to be | 6 |
| credited to the reserves established and
maintained as herein | 7 |
| provided, and shall make an annual determination of
the amount | 8 |
| of the required city contributions, and certify the results
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| thereof to the city council.
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| (c) In respect to employees of the city who are transferred | 11 |
| to the
employment of a park district by virtue of the "Exchange | 12 |
| of Functions
Act of 1957", the corporate authorities of the | 13 |
| park district shall
annually levy a tax upon all the taxable | 14 |
| property in the park district
at such rate per cent of the | 15 |
| value of such property, as equalized or
assessed by the | 16 |
| Department of Revenue, as shall be
sufficient, when added to | 17 |
| the amounts deducted from their salaries and
otherwise | 18 |
| contributed by them to provide the benefits to which they and
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| their dependents and beneficiaries are entitled under this | 20 |
| Article. The city
shall not levy a tax hereunder in respect to | 21 |
| such employees.
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| The tax so levied by the park district shall be in addition | 23 |
| to and
exclusive of all other taxes authorized to be levied by | 24 |
| the park
district for corporate, annuity fund, or other | 25 |
| purposes. The county
clerk of the county in which the park | 26 |
| district is located, in reducing
any tax levied under the |
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LRB095 10134 AMC 30348 b |
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| provisions of any act concerning the levy and
extension of | 2 |
| taxes shall not consider such tax as part of the general
tax | 3 |
| levy for park purposes, and shall not include the same in any
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| limitation of the per cent of the assessed valuation upon which | 5 |
| taxes
are required to be extended for the park district. The | 6 |
| proceeds of the
tax levied by the park district, upon receipt | 7 |
| by the district, shall be
immediately paid over to the city | 8 |
| treasurer of the city for the uses and
purposes of the fund.
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| The various sums to be contributed by the city and park | 10 |
| district and
allocated for the purposes of this Article, and | 11 |
| any interest to be
contributed by the city, shall be derived | 12 |
| from the revenue from the taxes
authorized in this Section or | 13 |
| otherwise as expressly provided
in this Section.
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| If it is not possible or practicable for the city to make
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| contributions for age and service annuity and widow's annuity | 16 |
| at the
same time that employee contributions are made for such
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| purposes, such city contributions shall be construed to be due | 18 |
| and
payable as of the end of the fiscal year for which the tax | 19 |
| is levied and
shall accrue thereafter with interest at the | 20 |
| effective rate until paid.
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| (d) With respect to employees whose wages are funded as | 22 |
| participants
under the Comprehensive Employment and Training | 23 |
| Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 24 |
| 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 25 |
| subsequent to October 1, 1978, and in instances
where the board | 26 |
| has elected to establish a manpower program reserve, the
board |
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LRB095 10134 AMC 30348 b |
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| shall compute the amounts necessary to be credited to the | 2 |
| manpower
program reserves established and maintained as herein | 3 |
| provided, and
shall make a periodic determination of the amount | 4 |
| of required
contributions from the City to the reserve to be | 5 |
| reimbursed by the
federal government in accordance with rules | 6 |
| and regulations established
by the Secretary of the United | 7 |
| States Department of Labor or his
designee, and certify the | 8 |
| results thereof to the City Council. Any such
amounts shall | 9 |
| become a credit to the City and will be used to reduce the
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| amount which the City would otherwise contribute during | 11 |
| succeeding years
for all employees.
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| (e) In lieu of establishing a manpower program reserve with | 13 |
| respect
to employees whose wages are funded as participants | 14 |
| under the
Comprehensive Employment and Training Act of 1973, as | 15 |
| authorized by
subsection (d), the board may elect to establish | 16 |
| a special municipality
contribution rate for all such | 17 |
| employees. If this option is elected, the
City shall contribute | 18 |
| to the Fund from federal funds provided under the
Comprehensive | 19 |
| Employment and Training Act program at the special rate so
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| established and such contributions shall become a credit to the | 21 |
| City and
be used to reduce the amount which the City would | 22 |
| otherwise contribute
during succeeding years for all | 23 |
| employees.
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| (f) In lieu of levying all or a portion of the tax required | 25 |
| under this
Section in any year, the city may deposit with the | 26 |
| city treasurer no later than
March 1 of that year for the |
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LRB095 10134 AMC 30348 b |
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| benefit of the fund, to be held in accordance with
this | 2 |
| Article, an amount that, together with the taxes levied under | 3 |
| this Section
for that year, is not less than the amount of the | 4 |
| city contributions for that
year as certified by the board to | 5 |
| the city council. The deposit may be derived
from any source | 6 |
| legally available for that purpose, including, but not limited
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| to, the proceeds of city borrowings. The making of a deposit | 8 |
| shall satisfy
fully the requirements of this Section for that | 9 |
| year to the extent of the
amounts so deposited. Amounts | 10 |
| deposited under this subsection may be used by
the fund for any | 11 |
| of the purposes for which the proceeds of the tax levied by
the | 12 |
| city under this Section may be used, including the payment of | 13 |
| any amount
that is otherwise required by this Article to be | 14 |
| paid from the proceeds of that
tax.
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| (Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98; | 16 |
| 90-766, eff.
8-14-98.)
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| Section 90. The State Mandates Act is amended by adding | 18 |
| Section 8.31 as follows: | 19 |
| (30 ILCS 805/8.31 new) | 20 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 21 |
| of this Act, no reimbursement by the State is required for the | 22 |
| implementation of any mandate created by this amendatory Act of | 23 |
| the 95th General Assembly.
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