Full Text of HB1700 95th General Assembly
HB1700 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1700
Introduced 2/22/2007, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/11-134.1 |
from Ch. 108 1/2, par. 11-134.1 |
40 ILCS 5/11-169 |
from Ch. 108 1/2, par. 11-169 |
30 ILCS 805/8.31 new |
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Amends the Chicago Laborers 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 Laborers' and Retirement Board Employees' Annuity and Benefit Fund up to 90% of the total actuarial liabilities of the 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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HB1700 |
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LRB095 10137 AMC 30351 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 11-134.1 and 11-169 as follows:
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| (40 ILCS 5/11-134.1)
(from Ch. 108 1/2, par. 11-134.1)
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| Sec. 11-134.1. Automatic increase in annuity.
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| (a) An employee who retired or retires from service after | 9 |
| December 31,
1963, and before January 1, 1987, having attained | 10 |
| age 60 or more,
shall, in the month of January of
the year | 11 |
| following the year in which the first anniversary of retirement
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| occurs, have the amount of his then fixed and payable monthly | 13 |
| annuity
increased by 1 1/2%, and such first fixed annuity as | 14 |
| granted at
retirement increased by a further 1 1/2% in January | 15 |
| of each year
thereafter. Beginning with January of the year | 16 |
| 1972, such increases
shall be at the rate of 2% in lieu of the | 17 |
| aforesaid specified 1 1/2%.
Beginning January, 1984, such | 18 |
| increases shall be at the rate of 3%.
Beginning in January of | 19 |
| 1999, such increases shall be at the rate of
3% of the | 20 |
| currently payable monthly annuity, including any increases
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| previously granted under this Article. An employee who retires | 22 |
| on annuity
after December 31, 1963 and before January 1, 1987, | 23 |
| but prior to age
60, shall receive such increases beginning |
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LRB095 10137 AMC 30351 b |
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| with January of the year
immediately following the year in | 2 |
| which he attains the age of 60 years.
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| An employee who retires from service on or after January 1, | 4 |
| 1987 shall,
upon the first annuity payment date following the | 5 |
| first anniversary of the
date of retirement, or upon the first | 6 |
| annuity payment date following
attainment of age 60, whichever | 7 |
| occurs later, have his then fixed and
payable monthly annuity | 8 |
| increased by 3%, and such annuity shall be
increased by an | 9 |
| additional 3% of the original fixed annuity on the same
date | 10 |
| each year thereafter.
Beginning in January of 1999, such | 11 |
| increases shall be at the rate of 3% of the
currently payable | 12 |
| monthly annuity, including any increases previously granted
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| under this Article.
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| (a-5) Notwithstanding the provisions of subsection (a), | 15 |
| upon the first
annuity payment date following (1) the third | 16 |
| anniversary of retirement, (2)
the attainment of age 53, or (3) | 17 |
| January 1, 2002,
whichever occurs latest, the monthly annuity | 18 |
| of an employee who retires on
annuity prior to the attainment | 19 |
| of age 60 and has not received an
increase under subsection (a) | 20 |
| shall be increased by 3%, and the
annuity shall be increased by | 21 |
| an additional 3% of the current payable monthly
annuity, | 22 |
| including any
increases previously granted under this
Article, | 23 |
| on the same date each year thereafter. The increases provided | 24 |
| under
this subsection are in lieu of the increases provided in | 25 |
| subsection (a).
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| (a-6) Notwithstanding the provisions of subsections (a) |
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| and (a-5), for
all calendar years following the year in which | 2 |
| this amendatory Act of the 93rd
General Assembly takes effect, | 3 |
| an increase in annuity under this Section that
would otherwise | 4 |
| 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) | 7 |
| and (a-5), the annual annuity increase under this Section for a | 8 |
| person first employed under this Article on or after the | 9 |
| effective date of this amendatory Act of the 95th General | 10 |
| Assembly shall be at a rate of 3% of the
original fixed | 11 |
| annuity.
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| (b) Subsections (a), (a-5), and (a-6) are not applicable to
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| an employee retiring and receiving a term annuity, as defined | 14 |
| in this Article,
nor to any otherwise
qualified employee who | 15 |
| retires before he shall have made employee contributions
(at | 16 |
| the 1/2 of 1% rate as hereinafter provided) for the purposes of | 17 |
| this
additional annuity for not less than the equivalent of one | 18 |
| full year. Such
employee, however, shall make arrangement to | 19 |
| pay to the fund a balance of such
1/2 of 1% contributions, | 20 |
| based on his final salary, as will bring such 1/2 of
1% | 21 |
| contributions, computed without interest, to the equivalent of | 22 |
| or completion
of one year's contributions.
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| Beginning with the month of January, 1964, each employee | 24 |
| shall contribute
by means of salary deductions 1/2 of 1% of | 25 |
| each salary payment, concurrently
with and in addition to the | 26 |
| employee contributions otherwise made for annuity
purposes.
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| Each such additional employee contribution shall be | 2 |
| credited to an
account in the prior service annuity reserve, to | 3 |
| be used, together with
city contributions, to defray the cost | 4 |
| of the specified annuity
increments. Any balance as of the | 5 |
| beginning of each calendar year
existing in such account shall | 6 |
| be credited with interest at the rate of
3% per annum.
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| Such employee contributions shall not be subject to refund, | 8 |
| except to
an employee who resigns or is discharged and applies | 9 |
| for refund under
this Article, and also in cases where a term | 10 |
| annuity becomes payable.
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| In such cases the employee contributions shall be refunded | 12 |
| him,
without interest, and charged to the aforementioned | 13 |
| account in the prior
service annuity reserve.
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| (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02; | 15 |
| 93-654, eff. 1-16-04.)
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| (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
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| Sec. 11-169. Financing; tax levy.
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| (a) Except as provided in subsection (f) of this Section, | 19 |
| the city
council of the city shall levy a tax annually upon all | 20 |
| taxable property in the
city at the rate that will produce a | 21 |
| sum which, when added to the amounts
deducted from the salaries | 22 |
| of the employees or otherwise contributed by them
and the | 23 |
| amounts deposited under subsection (f), will be sufficient to | 24 |
| bring the total assets of the Fund up to 90% of the total | 25 |
| actuarial liabilities of the Fund by the end of fiscal year |
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| 2016.
for the
requirements of this Article. For the years prior | 2 |
| to the year 1950 the tax
rate shall be as provided for under | 3 |
| "The 1935 Act". Beginning with the year
1950 to and including | 4 |
| the year 1969 such tax shall be not more than .036%
annually of | 5 |
| the value, as equalized or assessed by the Department of | 6 |
| Revenue,
of all taxable property within such city. Beginning | 7 |
| with the year 1970 and
each year thereafter the city shall levy | 8 |
| a tax annually at a rate on the dollar
of the value, as | 9 |
| equalized or assessed by the Department of Revenue
of all | 10 |
| taxable property within such city that will
produce, when | 11 |
| extended, not to exceed an amount equal to the total
amount of | 12 |
| contributions by the employees to the fund
made in the calendar | 13 |
| year 2 years prior to the year for which the annual
applicable | 14 |
| tax is levied, multiplied by 1.1 for the years 1970, 1971 and
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| 1972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235 | 16 |
| for the
year 1975; 1.280 for the year 1976; 1.325 for the year | 17 |
| 1977; 1.370
for the years 1978 through 1998; and 1.000 for the | 18 |
| year 1999
and for each year thereafter.
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| The tax shall be levied and collected in like manner with | 20 |
| the general
taxes of the city, and shall be exclusive of and in | 21 |
| addition to the
amount of tax the city is now or may hereafter | 22 |
| be authorized to levy for
general purposes under any laws which | 23 |
| may limit the amount of tax which
the city may levy for general | 24 |
| purposes. The county clerk of the county
in which the city is | 25 |
| located, in reducing tax levies under the
provisions of any Act | 26 |
| concerning the levy and extension of taxes, shall
not consider |
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LRB095 10137 AMC 30351 b |
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| the tax herein provided for as a part of the general tax
levy | 2 |
| for city purposes, and shall not include the same within any
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| limitation of the per cent of the assessed valuation upon which | 4 |
| taxes
are required to be extended for such city.
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| Revenues derived from such tax shall be paid to the city | 6 |
| treasurer of
the city as collected and held by him for the | 7 |
| benefit of the fund.
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| If the payments on account of taxes are insufficient during | 9 |
| any year
to meet the requirements of this Article, the city may | 10 |
| issue tax
anticipation warrants against the current tax levy.
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| (b) On or before January 10, annually, the board shall | 12 |
| notify the
city council of the requirement of this Article that | 13 |
| the tax herein
provided shall be levied for that current year. | 14 |
| The board shall compute
the amounts necessary for the purposes | 15 |
| of this fund to be credited to
the reserves established and | 16 |
| maintained as herein provided, and shall
make an annual | 17 |
| determination of the amount of the required city
contributions; | 18 |
| and certify the results thereof to the city council.
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| (c) In respect to employees of the city who are transferred | 20 |
| to the
employment of a park district by virtue of "Exchange of | 21 |
| Functions Act of
1957" the corporate authorities of the park | 22 |
| district shall annually levy
a tax upon all the taxable | 23 |
| property in the park district at such rate
per cent of the | 24 |
| value of such property, as equalized or assessed by the
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| Department of Revenue, as shall be sufficient, when
added to | 26 |
| the amounts deducted from their salaries and
otherwise |
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| contributed by them, to provide the benefits to which they and
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| their dependents and beneficiaries are entitled under this | 3 |
| Article. The
city shall not levy a tax hereunder in respect to | 4 |
| such employees.
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| The tax so levied by the park district shall be in addition | 6 |
| to and
exclusive of all other taxes authorized to be levied by | 7 |
| the park
district for corporate, annuity fund, or other | 8 |
| purposes. The county
clerk of the county in which the park | 9 |
| district is located, in reducing
any tax levied under the | 10 |
| provisions of any Act concerning the levy and
extension of | 11 |
| taxes shall not consider such tax as part of the general
tax | 12 |
| 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 | 14 |
| taxes
are required to be extended for the park district. The | 15 |
| proceeds of the
tax levied by the park district, upon receipt | 16 |
| by the district, shall be
immediately paid over to the city | 17 |
| 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 | 19 |
| allocated for the
purposes of this Article, and any interest to | 20 |
| be contributed by the city,
shall be taken from the revenue | 21 |
| derived from the taxes authorized in this
Section, and no money | 22 |
| of such city derived from any source other than
the levy and | 23 |
| collection of those taxes or the sale of tax
anticipation | 24 |
| warrants in accordance with the provisions of this Article | 25 |
| shall
be used to provide revenue for this Article, except as | 26 |
| expressly provided in
this Section.
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LRB095 10137 AMC 30351 b |
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| If it is not possible for the city to make contributions | 2 |
| for age and
service annuity and widow's annuity concurrently | 3 |
| with the employee's
contributions made for such purposes, such | 4 |
| city shall
make such contributions as soon as possible and | 5 |
| practicable thereafter
with interest thereon at the effective | 6 |
| rate to the time they shall be
made.
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| (d) With respect to employees whose wages are funded as | 8 |
| participants
under the Comprehensive Employment and Training | 9 |
| Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. | 10 |
| 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, | 11 |
| subsequent to October 1, 1978, and in instances
where the board | 12 |
| has elected to establish a manpower program reserve, the
board | 13 |
| shall compute the amounts necessary to be credited to the | 14 |
| manpower
program reserves established and maintained as herein | 15 |
| provided, and
shall make a periodic determination of the amount | 16 |
| of required
contributions from the City to the reserve to be | 17 |
| reimbursed by the
federal government in accordance with rules | 18 |
| and regulations established
by the Secretary of the United | 19 |
| States Department of Labor or his
designee, and certify the | 20 |
| results thereof to the City Council. Any such
amounts shall | 21 |
| 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 | 23 |
| succeeding years
for all employees.
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| (e) In lieu of establishing a manpower program reserve with | 25 |
| respect
to employees whose wages are funded as participants | 26 |
| under the
Comprehensive Employment and Training Act of 1973, as |
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LRB095 10137 AMC 30351 b |
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| authorized by
subsection (d), the board may elect to establish | 2 |
| a special municipality
contribution rate for all such | 3 |
| employees. If this option is elected,
the City shall contribute | 4 |
| to the Fund from federal funds provided under
the Comprehensive | 5 |
| Employment and Training Act program at the special
rate so | 6 |
| established and such contributions shall become a credit to the
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| City and be used to reduce the amount which the City would | 8 |
| otherwise
contribute during succeeding years for all | 9 |
| employees.
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| (f) In lieu of levying all or a portion of the tax required | 11 |
| under this
Section in any year, the city may deposit with the | 12 |
| city treasurer no later than
March 1 of that year for the | 13 |
| benefit of the fund, to be held in accordance with
this | 14 |
| Article, an amount that, together with the taxes levied under | 15 |
| this Section
for that year, is not less than the amount of the | 16 |
| city contributions for that
year as certified by the board to | 17 |
| the city council. The deposit may be derived
from any source | 18 |
| legally available for that purpose, including, but not limited
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| to, the proceeds of city borrowings. The making of a deposit | 20 |
| shall satisfy
fully the requirements of this Section for that | 21 |
| year to the extent of the
amounts so deposited. Amounts | 22 |
| deposited under this subsection may be used by
the fund for any | 23 |
| of the purposes for which the proceeds of the tax levied by
the | 24 |
| city under this Section may be used, including the payment of | 25 |
| any amount
that is otherwise required by this Article to be | 26 |
| paid from the proceeds of that
tax.
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LRB095 10137 AMC 30351 b |
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| (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
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| Section 90. The State Mandates Act is amended by adding | 3 |
| Section 8.31 as follows: | 4 |
| (30 ILCS 805/8.31 new) | 5 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 6 |
| of this Act, no reimbursement by the State is required for the | 7 |
| implementation of any mandate created by this amendatory Act of | 8 |
| the 95th General Assembly.
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