Full Text of SB2886 093rd General Assembly
SB2886 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2886
Introduced 2/6/2004, by Denny Jacobs SYNOPSIS AS INTRODUCED: |
|
40 ILCS 5/7-142.1 |
from Ch. 108 1/2, par. 7-142.1 |
40 ILCS 5/7-156 |
from Ch. 108 1/2, par. 7-156 |
40 ILCS 5/7-169 |
from Ch. 108 1/2, par. 7-169 |
40 ILCS 5/7-173.1 |
from Ch. 108 1/2, par. 7-173.1 |
30 ILCS 805/8.28 new |
|
|
Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois
Pension Code.
Allows a sheriff's law enforcement employee (SLEP) to convert up to 10 years
of non-SLEP service credit into SLEP credit by paying the difference in
employee and employer contributions, plus interest.
Increases the SLEP retirement formula to 2.5% of the final rate of earnings
for each year of SLEP service.
Increases the maximum pension payable to a SLEP from 75% to 80% of the final rate of earnings.
Removes the 2-year service requirement for earning new benefits after
a return to service as a SLEP.
Increases the additional employee contribution paid by SLEPs to 2.5% of
salary.
Also eliminates the reduction in benefit imposed on a surviving spouse who is
more than 5 years younger than the deceased member, for the surviving spouse of
any member who dies on or after the effective date.
Amends the State Mandates Act to require implementation without
reimbursement. Effective immediately.
|
| |
|
|
FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
|
|
A BILL FOR
|
|
|
|
|
SB2886 |
|
LRB093 20825 LRD 46750 b |
|
| 1 |
| AN ACT in relation to 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
7-142.1, 7-156, 7-169, and 7-173.1 as follows:
| 6 |
| (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
| 7 |
| Sec. 7-142.1. Sheriff's law enforcement employees.
| 8 |
| (a) In lieu of the retirement annuity provided by | 9 |
| subparagraph 1 of
paragraph (a) of Section 7-142:
| 10 |
| Any sheriff's law enforcement employee who
has 20 or more | 11 |
| years of service in that capacity and who terminates
service | 12 |
| prior to January 1, 1988 shall be entitled at his
option to | 13 |
| receive a monthly retirement annuity for his service as a
| 14 |
| sheriff's law enforcement employee computed by multiplying 2% | 15 |
| for each year
of such service up to 10 years, 2 1/4% for each | 16 |
| year
of such service above 10 years and up to 20 years, and
2 | 17 |
| 1/2% for each year of such service above
20 years, by his | 18 |
| annual final rate of earnings and dividing by 12.
| 19 |
| Any sheriff's law enforcement employee who has 20 or more | 20 |
| years of
service in that capacity and who terminates service on | 21 |
| or after January 1,
1988 and before July 1, 2004 shall be | 22 |
| entitled at his option to receive
a monthly retirement
annuity | 23 |
| for his service as a sheriff's law enforcement employee | 24 |
| computed by
multiplying 2.5% for each year of such service up | 25 |
| to 20 years, 2% for each
year of such service above 20 years | 26 |
| and up to 30 years, and 1% for each
year of such service above | 27 |
| 30 years, by his annual final rate of earnings
and dividing by | 28 |
| 12.
| 29 |
| Any sheriff's law enforcement employee who has 20 or more | 30 |
| years of
service in that capacity and who terminates service on | 31 |
| or after July 1,
2004 shall be entitled at his or her option to | 32 |
| receive a monthly retirement
annuity for service as a sheriff's |
|
|
|
SB2886 |
- 2 - |
LRB093 20825 LRD 46750 b |
|
| 1 |
| law enforcement employee computed by
multiplying 2.5% for each | 2 |
| year of such service by his annual final rate of
earnings and | 3 |
| dividing by 12.
| 4 |
| If a sheriff's law enforcement employee has service in any | 5 |
| other
capacity, his retirement annuity for service as a | 6 |
| sheriff's law enforcement
employee may be computed under this | 7 |
| Section and the retirement annuity for
his other service under | 8 |
| Section 7-142.
| 9 |
| In no case shall the total monthly retirement annuity for | 10 |
| persons who retire before July, 1, 2004 exceed 75% of the
| 11 |
| monthly final rate of earnings. In no case shall the total | 12 |
| monthly retirement annuity for persons who retire on or after | 13 |
| July 1, 2004 exceed 80% of the
monthly final rate of earnings.
| 14 |
| (b) Whenever continued group insurance coverage is elected | 15 |
| in accordance
with the provisions of Section 367h of the | 16 |
| Illinois Insurance Code, as now
or hereafter amended, the total | 17 |
| monthly premium for such continued group
insurance coverage or | 18 |
| such portion thereof as is not paid
by the municipality shall, | 19 |
| upon request of the person electing such
continued group | 20 |
| insurance coverage, be deducted from any monthly pension
| 21 |
| benefit otherwise payable to such person pursuant to this | 22 |
| Section, to be
remitted by the Fund to the insurance company
or | 23 |
| other entity providing the group insurance coverage.
| 24 |
| (c) A sheriff's law enforcement employee who has service in | 25 |
| any other
capacity may convert up to 10 years of that service | 26 |
| into service as a sheriff's
law enforcement employee by paying | 27 |
| to the Fund an amount equal to (1) the
additional employee | 28 |
| contribution required under Section 7-173.1, (2) the | 29 |
| additional employer contribution required under Section 7-172, | 30 |
| plus (3) interest on those contributions at the
prescribed rate | 31 |
| from the date of the service to the date of payment.
| 32 |
| (Source: P.A. 85-941.)
| 33 |
| (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
| 34 |
| Sec. 7-156. Surviving spouse annuities - amount.
| 35 |
| (a) The amount of surviving spouse annuity shall be:
|
|
|
|
SB2886 |
- 3 - |
LRB093 20825 LRD 46750 b |
|
| 1 |
| 1. Upon the death of an employee annuitant or such person | 2 |
| entitled, upon
application, to a retirement annuity at date of | 3 |
| death, (i) an amount equal
to 1/2 of the retirement annuity | 4 |
| which was or would
have been payable exclusive of the amount so | 5 |
| payable which was provided from
additional credits, and | 6 |
| disregarding any election made under paragraph (b) of
Section | 7 |
| 7-142, plus (ii) an annuity which could be provided at the then
| 8 |
| attained age of the surviving spouse and under actuarial tables | 9 |
| then in effect,
from the excess of the additional credits, | 10 |
| (excluding any such credits used to
create a reversionary | 11 |
| annuity) used to provide the annuity granted pursuant to
| 12 |
| paragraph (a) (2) of Section 7-142 of this article over the | 13 |
| total annuity
payments made pursuant thereto.
| 14 |
| 2. Upon the death of a participating employee on or after | 15 |
| attainment of
age 55, an amount equal to 1/2 of the retirement | 16 |
| annuity
which he could have had as of the date of death had he | 17 |
| then retired and applied
for annuity, exclusive of the portion | 18 |
| thereof which could have been provided
from additional credits, | 19 |
| and disregarding paragraph (b) of Section 7-142,
plus an amount | 20 |
| equal to the annuity which could be provided from the total
of | 21 |
| his accumulated additional credits at date of death, on the | 22 |
| basis of the
attained age of the surviving spouse on such date.
| 23 |
| 3. Upon the death of a participating employee before age | 24 |
| 55, an amount equal
to 1/2 of the retirement annuity which he | 25 |
| could have had
as of his attained age on the date of death, had | 26 |
| he then retired and applied
for annuity, and the provisions of | 27 |
| this Article that no such annuity shall
begin until the | 28 |
| employee has attained at least age 55 were not applicable,
| 29 |
| exclusive of the portion thereof which could have been provided | 30 |
| from
additional credits and disregarding paragraph (b) of | 31 |
| Section 7-142, plus an
amount equal to the annuity which could | 32 |
| be provided from the total of his
accumulated additional | 33 |
| credits at date of death, on the basis of the
attained age of | 34 |
| the surviving spouse on such date.
| 35 |
| In the case of the surviving spouse of a person who dies | 36 |
| before the
effective date of this amendatory Act of the 93rd |
|
|
|
SB2886 |
- 4 - |
LRB093 20825 LRD 46750 b |
|
| 1 |
| General Assembly, if
the
a surviving spouse is more than 5 | 2 |
| years younger than the deceased,
that portion of the annuity | 3 |
| which is not based on additional credits shall
be reduced in | 4 |
| the ratio of the value of a life annuity of $1 per year at an
| 5 |
| age of 5 years less than the attained age of the deceased, at | 6 |
| the earlier
of the date of the death or the date his retirement | 7 |
| annuity begins, to the
value of a life annuity of $1 per year | 8 |
| at the attained age of the surviving
spouse on such date, | 9 |
| according to actuarial tables approved by the Board.
This | 10 |
| reduction does not apply to the surviving spouse of a person | 11 |
| who dies
on or after the effective date of this amendatory Act | 12 |
| of the 93rd General
Assembly.
| 13 |
| In computing the amount of a surviving spouse annuity, | 14 |
| incremental increases
of retirement annuities to the date of | 15 |
| death of the employee annuitant shall be
considered.
| 16 |
| (b) Each surviving spouse annuity payable on January 1, | 17 |
| 1988 shall be
increased on that date by 3% of the original | 18 |
| amount of the annuity. Each
surviving spouse annuity that | 19 |
| begins after January 1, 1988 shall be
increased on the January | 20 |
| 1 next occurring after the annuity begins, by an
amount equal | 21 |
| to (i) 3% of the original amount thereof if the deceased
| 22 |
| employee was receiving a retirement annuity at the time of his | 23 |
| death; otherwise
(ii) 0.167% of the original amount thereof for | 24 |
| each complete
month which has elapsed since the date the | 25 |
| annuity began.
| 26 |
| On each January 1 after the date of the initial increase | 27 |
| under this
subsection, each surviving spouse annuity shall be | 28 |
| increased by 3% of the
originally granted amount of the | 29 |
| annuity.
| 30 |
| (Source: P.A. 85-941.)
| 31 |
| (40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
| 32 |
| Sec. 7-169. Separation benefits ; repayments. If an | 33 |
| employee who has
received a separation benefit subsequently | 34 |
| becomes a participating employee,
and renders at least 2 years | 35 |
| of contributing service from the date of such
re-entry, he may |
|
|
|
SB2886 |
- 5 - |
LRB093 20825 LRD 46750 b |
|
| 1 |
| pay to the fund the amount of the separation benefit, plus
| 2 |
| interest at the effective rate for each year from the date of | 3 |
| payment of the
separation benefit to the date of repayment. | 4 |
| Upon payment his creditable
service shall be reinstated and the | 5 |
| payment shall be credited to his account
as normal | 6 |
| contributions. Beginning July 1, 2004, the requirement of
| 7 |
| returning to service for at least 2 years does not apply to | 8 |
| persons who return
to service as a sheriff's law enforcement | 9 |
| employee.
| 10 |
| (Source: P.A. 84-1028.)
| 11 |
| (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
| 12 |
| Sec. 7-173.1. Additional contribution by sheriff's law | 13 |
| enforcement
employees.
| 14 |
| (a) Each sheriff's law enforcement employee shall make an | 15 |
| additional
contribution of 1% of earnings, which shall be | 16 |
| considered as normal
contributions. For earnings on or after | 17 |
| July 1, 1988, the additional
contribution shall be 2% of | 18 |
| earnings. For earnings on or after July 1,
2004, the additional | 19 |
| contribution shall be 2.5% of earnings; this increase
is | 20 |
| intended to defray the employee's portion of the cost of the | 21 |
| benefit
increases provided by this amendatory Act of the 93rd | 22 |
| General Assembly.
| 23 |
| This additional contribution shall be payable for | 24 |
| retroactive service periods
which the employee elects to | 25 |
| establish and to periods of authorized leave of
absence.
| 26 |
| (b) If the employee is awarded a retirement annuity under | 27 |
| Section
7-142 and not under Section 7-142.1, then the | 28 |
| additional contribution required
under this Section shall be | 29 |
| refunded with interest or paid as provided in
subsection (c). | 30 |
| If the employee returns to a participating status as a
| 31 |
| sheriff's law enforcement employee, the employee may repay the | 32 |
| amount refunded
with interest and upon subsequent retirement be | 33 |
| entitled to a recomputation of
the retirement annuity under | 34 |
| Section 7-142.1 if the total service as a
sheriff's law | 35 |
| enforcement employee meets the requirements of that Section.
|
|
|
|
SB2886 |
- 6 - |
LRB093 20825 LRD 46750 b |
|
| 1 |
| (c) Instead of a refund under subsection (b), the retiring | 2 |
| employee may
elect to convert the amount of the refund into an | 3 |
| annuity, payable
separately from the retirement annuity. If the | 4 |
| annuitant dies before the
guaranteed amount has been | 5 |
| distributed, the remainder shall be paid in a lump
sum to the | 6 |
| designated beneficiary of the annuitant. The Board shall adopt | 7 |
| any
rules necessary for the implementation of this subsection.
| 8 |
| (Source: P.A. 90-766, eff. 8-14-98.)
| 9 |
| Section 90. The State Mandates Act is amended by adding | 10 |
| Section 8.28 as
follows:
| 11 |
| (30 ILCS 805/8.28 new)
| 12 |
| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 |
| of this
Act, no reimbursement by the State is required for the | 14 |
| implementation of
any mandate created by this amendatory Act of | 15 |
| the 93rd General Assembly.
| 16 |
| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law. |
|