Full Text of SB1960 95th General Assembly
SB1960eng 95TH GENERAL ASSEMBLY
|
|
|
SB1960 Engrossed |
|
LRB095 16318 AMC 42342 b |
|
| 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 7-141, 7-142, and 7-174 as follows:
| 6 |
| (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 7 |
| Sec. 7-141. Retirement annuities - Conditions. Retirement | 8 |
| annuities shall be payable as hereinafter set forth:
| 9 |
| (a) A participating employee who, regardless of cause, is | 10 |
| separated
from the service of all participating municipalities | 11 |
| and
instrumentalities thereof and participating | 12 |
| instrumentalities shall be
entitled to a retirement annuity | 13 |
| provided:
| 14 |
| 1. He is at least age 55, or in the case of a person who | 15 |
| is eligible
to have his annuity calculated under Section | 16 |
| 7-142.1, he is at least age 50;
| 17 |
| 2. He is (i) an employee who was employed by any | 18 |
| participating
municipality
or participating | 19 |
| instrumentality which had not elected to exclude persons
| 20 |
| employed in positions normally requiring performance of | 21 |
| duty for less than 1000
hours per year or was employed in a | 22 |
| position normally requiring performance of
duty for 600 | 23 |
| hours or more per year prior to such election by any
|
|
|
|
SB1960 Engrossed |
- 2 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| participating municipality or participating | 2 |
| instrumentality included in
and subject to this Article on | 3 |
| or before the effective date of this
amendatory Act of 1981 | 4 |
| which made such election and is not entitled to
receive | 5 |
| earnings for employment in a position normally requiring
| 6 |
| performance of duty for 600 hours or more per year for any | 7 |
| participating
municipality and instrumentalities thereof | 8 |
| and participating instrumentality;
or (ii) an employee who | 9 |
| was employed only by a participating municipality
or | 10 |
| participating instrumentality, or participating | 11 |
| municipalities or
participating instrumentalities, which | 12 |
| have elected to exclude persons in
positions normally | 13 |
| requiring performance of duty for less than 1000 hours
per | 14 |
| year after the effective date of such exclusion or which | 15 |
| are included
under and subject to the Article after the | 16 |
| effective date of this
amendatory Act of 1981 and elects to | 17 |
| exclude persons in such positions, and
is not entitled to | 18 |
| receive earnings for employment in a position normally
| 19 |
| requiring performance of duty for 1000 hours or more per | 20 |
| year by such a
participating municipality or participating | 21 |
| instrumentality;
| 22 |
| 3. The amount of his annuity, before the application of | 23 |
| paragraph (b) of
Section 7-142 is at least $10 per month;
| 24 |
| 4. If he first became a participating employee after | 25 |
| December 31,
1961, he has at least 5 8 years of service. | 26 |
| This service requirement shall not
apply to any |
|
|
|
SB1960 Engrossed |
- 3 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| participating employee, regardless of participation date, | 2 |
| if the
General Assembly terminates the Fund.
| 3 |
| (b) Retirement annuities shall be payable:
| 4 |
| 1. As provided in Section 7-119;
| 5 |
| 2. Except as provided in item 3, upon receipt by the | 6 |
| fund of a written
application. The effective date may be | 7 |
| not more than one
year prior to the date of the receipt by | 8 |
| the fund of the application;
| 9 |
| 3. Upon attainment of age 70 1/2 if the member (i) is | 10 |
| no longer in
service,
and (ii) is otherwise entitled to an | 11 |
| annuity under this Article;
| 12 |
| 4. To the beneficiary of the deceased annuitant for the | 13 |
| unpaid amount
accrued to date of death, if any.
| 14 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 15 |
| (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
| 16 |
| Sec. 7-142. Retirement annuities - Amount.
| 17 |
| (a) The amount of a retirement annuity shall be the sum of | 18 |
| the
following, determined in accordance with the actuarial | 19 |
| tables in effect at
the time of the grant of the annuity:
| 20 |
| 1. For employees with 5 8 or more years of service, an | 21 |
| annuity
computed pursuant to subparagraphs a or b of this | 22 |
| subparagraph 1,
whichever is the higher, and for employees | 23 |
| with less than 5 8 years of
service the annuity computed | 24 |
| pursuant to subparagraph a:
| 25 |
| a. The monthly annuity which can be provided from |
|
|
|
SB1960 Engrossed |
- 4 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| the total
accumulated normal, municipality and prior | 2 |
| service credits, as of the
attained age of the employee | 3 |
| on the date the annuity begins provided
that such | 4 |
| annuity shall not exceed 75% of the final rate of | 5 |
| earnings of
the employee.
| 6 |
| b. (i) The monthly annuity amount determined as | 7 |
| follows by
multiplying (a) 1 2/3% for annuitants with | 8 |
| not more than 15 years or (b)
1 2/3% for the first 15 | 9 |
| years and 2% for each year in excess of 15 years
for | 10 |
| annuitants with more than 15 years by the number of | 11 |
| years plus
fractional years, prorated on a basis of | 12 |
| months, of creditable service
and multiply the product | 13 |
| thereof by the employee's final rate of earnings.
| 14 |
| (ii) For the sole purpose of computing the formula | 15 |
| (and not for the
purposes of the limitations | 16 |
| hereinafter stated) $125 shall be considered
the final | 17 |
| rate of earnings in all cases where the final rate of | 18 |
| earnings
is less than such amount.
| 19 |
| (iii) The monthly annuity computed in accordance | 20 |
| with this
subparagraph b, shall not exceed an amount | 21 |
| equal to 75% of the final
rate of earnings.
| 22 |
| (iv) For employees who have less than 35 years of | 23 |
| service, the
annuity computed in accordance with this | 24 |
| subparagraph b (as reduced by
application of | 25 |
| subparagraph (iii)
above) shall be reduced by 0.25% | 26 |
| thereof (0.5% if service was terminated
before January |
|
|
|
SB1960 Engrossed |
- 5 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| 1, 1988) for each month or fraction thereof (1) that | 2 |
| the
employee's age is less than 60 years, or (2) if the | 3 |
| employee has at least
30 years of service credit, that | 4 |
| the employee's service credit is less than
35 years, | 5 |
| whichever is less, on the date the annuity begins.
| 6 |
| 2. The annuity which can be provided from the total | 7 |
| accumulated
additional credits as of the attained age of | 8 |
| the employee on the date
the annuity begins.
| 9 |
| (b) If payment of an annuity begins prior to the earliest | 10 |
| age at
which the employee will become eligible for an old age | 11 |
| insurance benefit
under the Federal Social Security Act, he may | 12 |
| elect that the annuity
payments from this fund shall exceed | 13 |
| those payable after his attaining
such age by an amount, | 14 |
| computed as determined by rules of the Board, but
not in excess | 15 |
| of his estimated Social Security Benefit, determined as
of the | 16 |
| effective date of the annuity, provided that in no case shall | 17 |
| the
total annuity payments made by this fund exceed in | 18 |
| actuarial value the
annuity which would have been payable had | 19 |
| no such election been made.
| 20 |
| (c) The retirement annuity shall be increased each year by | 21 |
| 2%, not
compounded, of the monthly amount of annuity, taking | 22 |
| into consideration
any adjustment under paragraph (b) of this | 23 |
| Section. This increase shall
be effective each January 1 and | 24 |
| computed from the effective date of the
retirement annuity, the | 25 |
| first increase being .167% of the monthly amount
times the | 26 |
| number of months from the effective date to January 1. |
|
|
|
SB1960 Engrossed |
- 6 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| Beginning
January 1, 1984 and thereafter, the retirement | 2 |
| annuity shall be increased
by 3% each year, not compounded. | 3 |
| This increase shall not be applicable to
annuitants who are not | 4 |
| in service on or after September 8, 1971.
| 5 |
| (Source: P.A. 91-357, eff. 7-29-99.)
| 6 |
| (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
| 7 |
| Sec. 7-174. Board created.
| 8 |
| (a) A board of 8 members shall
constitute a board of | 9 |
| trustees authorized to carry out the provisions of
this | 10 |
| Article. Each trustee shall be a participating employee of a
| 11 |
| participating municipality or participating instrumentality or | 12 |
| an annuitant
of the Fund and no person shall be eligible to | 13 |
| become a trustee after January
1, 1979 who does not have at | 14 |
| least 5 8 years of creditable service.
| 15 |
| (b) The board shall consist of representatives of various | 16 |
| groups as
follows:
| 17 |
| 1. 4 trustees shall be a chief executive officer, chief | 18 |
| finance
officer, or other officer, executive or department | 19 |
| head of a
participating municipality or participating | 20 |
| instrumentality, and each
such trustee shall be designated | 21 |
| as an executive trustee.
| 22 |
| 2. 3 trustees shall be employees of a participating | 23 |
| municipality or
participating instrumentality and each | 24 |
| such trustee shall be designated
as an employee trustee.
| 25 |
| 3. One trustee shall be an annuitant of the Fund, who |
|
|
|
SB1960 Engrossed |
- 7 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| shall be
designated the annuitant trustee.
| 2 |
| (c) A person elected as a trustee shall qualify as a | 3 |
| trustee, after
declaration by the board that he has been duly | 4 |
| elected, upon taking and
subscribing to the constitutional oath | 5 |
| of office and filing same in the
office of the Fund.
| 6 |
| (d) The term of office of each trustee shall begin upon | 7 |
| January 1 of
the year following the year in which he is elected | 8 |
| and shall continue
for a period of 5 years and until a | 9 |
| successor has been elected and
qualified, or until prior | 10 |
| resignation, death, incapacity or
disqualification.
| 11 |
| (e) Any elected trustee (other than the annuitant trustee) | 12 |
| shall be
disqualified immediately upon termination of | 13 |
| employment with all participating
municipalities and | 14 |
| instrumentalities thereof or upon any change in status which
| 15 |
| removes any such trustee from all employments within the group | 16 |
| he represents.
The annuitant trustee shall be disqualified upon | 17 |
| termination of his or her
annuity.
| 18 |
| (f) The trustees shall fill any vacancy in the board by | 19 |
| appointment,
for the period until the next election of | 20 |
| trustees, or, if the remaining
term is less than 2 years, for | 21 |
| the remainder of the term, and until his
successor has been | 22 |
| elected and qualified.
| 23 |
| (g) Trustees shall serve without compensation, but shall be
| 24 |
| reimbursed for any reasonable expenses incurred in attending | 25 |
| meetings of
the board and in performing duties on behalf of the | 26 |
| Fund and for the
amount of any earnings withheld by any |
|
|
|
SB1960 Engrossed |
- 8 - |
LRB095 16318 AMC 42342 b |
|
| 1 |
| employing municipality or
participating instrumentality | 2 |
| because of attendance at any board
meeting.
| 3 |
| (h) Each trustee other than the annuitant trustee shall be | 4 |
| entitled to
one vote on any and all actions before the board; | 5 |
| the annuitant trustee is
not entitled to vote on any matter. At | 6 |
| least 4 concurring votes
shall be necessary for every decision | 7 |
| or action by the board at any of its
meetings. No decision or | 8 |
| action shall become effective unless presented and so
approved | 9 |
| at a regular or duly called special meeting of the board.
| 10 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 11 |
| Section 90. The State Mandates Act is amended by adding | 12 |
| Section 8.32 as follows: | 13 |
| (30 ILCS 805/8.32 new) | 14 |
| Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8 | 15 |
| of this Act, no reimbursement by the State is required for the | 16 |
| implementation of any mandate created by this amendatory Act of | 17 |
| the 95th General Assembly.
| 18 |
| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
|
|